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Sustainability Report 2015
d) Liquidity risk
As stated earlier, the recent evolution of the financial markets gave
greater relevance to the liquidity risk. The systematic financial plan-
ning based on the cash-flows forecasting inmore than one scenario,
and for periods longer than one year, became crucial for the Group.
The short term liquidity is based on the annual planning, which is
reviewed quarterly and adjusted daily. Taking into consideration the
dynamics of the underlying businesses, the intra-Group cash pool has
been performing a flexible management of the commercial paper
and negotiating credit lines available at all times. The policy of open
dialoguewith all financial partners has contributed to a relationship
with a good level of trust. The Group favoured the financing lines
that have already been contracted, even though they are seldom
used, to the detriment of cost.
e) Capital risk
The company makes efforts to maintain an equity capital level ade-
quate to the characteristics of the main business (cash sales and
supplier credit) to assure continuity and expansion. The balance of
the capital structure is tracked based on the financial leverage ratio
(defined as: net remunerated debt / net remunerated debt + own
capital) with the purpose of situating it between 35%-70%.
