Notes to the Consolidated Financial Statements Liquidity risk Cash flow forecasting is performed in the operating companies of the Group and aggregated by Corporate Treasury. Corporate Treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn established borrowing facilities at all times so that the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets and, if applicable, external regulatory or legal requirements – for example currency restrictions. balance required for working Surplus cash held by the operating companies over and above the capital management is transferred to Corporate Treasury. Corporate Treasury deposits surplus cash in current accounts and time deposits, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the above-mentioned forecasts. At the reporting date, the Group held liquid funds of CHF 1,030.9 million (2017: CHF 1,140.2 million). derivative financial liabilities into relevant maturity The table below analyzes the Group’s non- groupings based on the periods from the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows including future interest payments: in CHF million Less than 1 Between 1 Between 2 Over 5 years year and 2 years and 5 years At December 31, 2018 Bonds and borrowings 190.6 19.2 118.4 204.3 Finance lease liabilities 0.1 0.9 0.7 – Trade and other payables 478.9 4.0 23.3 8.0 in CHF million Less than 1 Between 1 Between 2 Over 5 years year and 2 years and 5 years At December 31, 2017 Bonds and borrowings 234.0 59.0 17.6 304.3 Finance lease liabilities 0.1 0.8 0.5 – Trade and other payables 479.0 8.1 26.5 4.7 Most of the non-trading Group’s gross or net settled derivative financial instruments are in hedge relationships and are due to be settled gross or net within 12 months of the balance sheet date. These contracts require undiscounted contractual cash inflows of CHF 719.9 million (2017: CHF 714.8 million) and undiscounted contractual cash outflows of CHF 728.0 million (2017: CHF 728.1 million). All of the non-trading Group’s derivative financial instruments are in hedge relationships and are disclosed in note (16). 2018 Financial Report | 35