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Capital and Financial Risk Management (Tables)
 12 Months Ended
Dec. 31, 2021
Text block [abstract]  
Summary of Capital and Net Debt
The capital structure of the Group, which comprises net debt and capital and reserves attributable to the Company’s equity holders, may be summarised as follows:
 
   
2021
$m
     2020
$m		  
Capital and reserves attributable to the Company’s equity holders
  
 
20,233
 
     19,656  
Net debt
  
 
6,253
 
     5,941  
Capital and net debt
  
 
26,486
 
     25,597  
Summary of Interest Rate Risk
The following table demonstrates the impact on profit before tax of a range of possible changes in the interest rates applicable to net floating rate borrowings, with all other variables held constant. These impacts are calculated based on the closing balance sheet floating rate net debt for a full year and assume that all floating interest rates change by the same amount.
 
Percentage change in cost of
borrowings (i)
         
+/- 1%
  
     
Impact on profit before tax  
 
2021
 
   
 
+/- $38m
 
      2020       
+/- $59m
  
      2019       
+/- $23m
  
 
(i)
Sensitivity analysis for cost of borrowing has been presented for continuing operations only.
Summary of Foreign Currency Risk The following table demonstrates the sensitivity of profit before tax and equity to selected movements in the relevant US Dollar/euro exchange rate (with all other variables held constant); the euro has been selected as the appropriate currency for this analysis given the materiality of the Group’s activities in euro. The impact on profit before tax is based on changing the US Dollar/euro exchange rate used in calculating profit before tax for the period. The impact on total equity and financial instruments is calculated by changing the US Dollar/euro exchange rate used in measuring the closing balance sheet.
Percentage change in relevant
$/
€
 exchange rate (i)
        
+/- 5%
  
Impact on profit before tax
  
 
2021
 
  
 
-/+ $22m
 
      2020       -/+ $19m  
      2019       +/- $4m  
     
Impact on total equity*
  
 
2021
 
  
 
+/-$123m
 
      2020       +/-$157m  
      2019       +/-$177m  
     
* Includes the impact on financial instruments which is as follows:
  
 
2021
 
  
 
-/+ $44m
 
      2020       -/+ $27m  
      2019       -/+ $11m  
 
(i)
Sensitivity analysis for exchange rates has been presented for continuing operations only.
Summary of Credit Rating of Counterparty
Credit rating of counterparty (Moody’s/Standard & Poor’s/
Fitch)
 
 
 
As at 31 December 2021
 
 
 
 
 
As at 31 December 2020
 
 
 
$m
 
 
%
 
 
 
 
 
$m
 
 
%
 
Aaa/AAA/AAA
  
 
2,021
 
  
 
35%
 
             916       12%  
Aa/AA/AA
  
 
2,394
 
  
 
41%
               3,074       40%  
A/A/A
  
 
1,216
 
  
 
21%
               3,536       46%  
Baa/BBB/BBB or lower
  
 
152
 
  
 
3%
 
             195       2%  
   
 
5,783
 
  
 
100%
 
             7,721       100%  
Summary of Notional and Fair Values in Respect of Derivative Contracts
The notional and fair values in respect of derivative contracts as at 31 December 2021 and 31 December 2020 were as follows:
Profile of commodity
products
 
 
 
As at 31 December 2021
 
 
 
 
 
As at 31 December 2020
 
 
 
Notional value
$m
 
 
Fair value
$m
 
 
 
 
 
Notional value
$m
 
 
Fair value
$m
 
Commodity swaps
  
 
86
 
  
 
-
 
             85       -  
Derivative asset/(liability)
  
 
-
 
  
 
32
 
             -       (2)  
Disclosure of projected contractual undiscounted cash outflows (principal and interest) arising from Group's trade and other payables, gross debt and derivative financial instruments.
The tables below show the projected contractual undiscounted total cash outflows (principal and interest) arising from the Group’s trade and other payables, gross debt and derivative financial instruments. The tables also include the gross cash inflows projected to arise from derivative financial instruments. These projections are based on the interest and foreign exchange rates applying at the end of the relevant financial year.
 
    
Within
1 year
$m
     
Between
1 and 2
years
$m
     
Between
2 and 3
years
$m
     
Between
3 and 4
years
$m
     
Between
4 and 5
years
$m
     
After
5 years
$m
     
Total
$m
  
At 31 December 2021
                                                               
               
Financial liabilities - cash outflows
                                                               
               
Trade and other payables
   
 
5,697
 
   
 
196
 
   
 
44
 
   
 
202
 
   
 
170
 
   
 
288
 
   
 
6,597
 
               
Lease liabilities
   
 
302
 
   
 
254
 
   
 
208
 
   
 
175
 
   
 
150
 
   
 
1,099
 
   
 
2,188
 
               
Other interest-bearing loans and borrowings
   
 
559
 
   
 
1,420
 
   
 
683
 
   
 
1,254
 
   
 
853
 
   
 
5,666
 
   
 
10,435
 
               
Interest payments on other interest-bearing loans and borrowings (i)
   
 
315
 
   
 
286
 
   
 
264
 
   
 
238
 
   
 
214
 
   
 
1,715
 
   
 
3,032
 
               
Currency forwards and currency swaps - gross cash outflows
   
 
1,567
 
   
 
-
 
   
 
-
 
   
 
-
 
   
 
-
 
   
 
-
 
   
 
1,567
 
               
Other derivative financial instruments
   
 
1
 
   
 
-
 
   
 
-
 
   
 
-
 
   
 
-
 
   
 
-
 
   
 
1
 
Gross projected cash outflows
   
 
8,441
 
   
 
2,156
 
   
 
1,199
 
   
 
1,869
 
   
 
1,387
 
   
 
8,768
 
   
 
23,820
 
               
Derivative financial instruments - cash inflows
                                                               
               
Interest rate swaps - net cash inflows (ii)
   
 
(41)
 
   
 
(34)
 
   
 
(32)
 
   
 
(22)
 
   
 
(13)
 
   
 
(20)
 
   
 
(162)
 
               
Currency forwards and currency swaps - gross cash inflows
   
 
(1,559)
 
   
 
-
 
   
 
-
 
   
 
-
 
   
 
-
 
   
 
-
 
   
 
(1,559)
 
               
Other derivative financial instruments
   
 
(32)
 
   
 
(1)
 
   
 
-
 
   
 
-
 
   
 
-
 
   
 
-
 
   
 
(33)
 
Gross projected cash inflows
   
 
(1,632)
 
   
 
(35)
 
   
 
(32)
 
   
 
(22)
 
   
 
(13)
 
   
 
(20)
 
   
 
(1,754)
 
               
The equivalent disclosure for the prior year is as follows:
                                                               
               
At 31 December 2020
                                                               
               
Financial liabilities - cash outflows
                                                               
               
Trade and other payables
      4,797        171        49        209        181        371        5,778  
               
Lease liabilities
      301        255        208        177        150        1,085        2,176  
               
Other interest-bearing loans and borrowings
      1,270        479        1,538        741        1,255        6,805        12,088  
               
Interest payments on other interest-bearing loans and borrowings (i)
      345        328        296        272        246        1,952        3,439  
               
Currency forwards and currency swaps - gross cash outflows
      2,345        -        -        -        -        -        2,345  
               
Other derivative financial instruments
      5        1        -        -        -        -        6  
Gross projected cash outflows
      9,063        1,234        2,091        1,399        1,832        10,213        25,832  
               
Derivative financial instruments - cash inflows
                                                               
               
Interest rate swaps - net cash inflows (ii)
      (40)        (40)        (33)        (30)        (22)        (32)        (197)  
               
Currency forwards and currency swaps - gross cash inflows
      (2,350)        -        -        -        -        -        (2,350)  
               
Other derivative financial instruments
      (4)        (1)        -        -        -        -        (5)  
Gross projected cash inflows
      (2,394)        (41)        (33)        (30)        (22)        (32)        (2,552)  
 
(i)
At 31 December 2021 and 31 December 2020, a portion of the Group’s long-term debt carried variable interest rates. The Group uses the interest rates in effect on 31 December to calculate the interest payments on the long-term debt for the periods indicated.
 
(ii)
The Group uses interest rate swaps to help manage its interest cost. Under these contracts the Group has agreed to exchange at predetermined intervals, the net difference between fixed and variable interest amounts calculated by reference to a
pre-agreed
notional principal. The Group uses the interest rates in effect on 31 December to calculate the net interest receipts or payments on these contracts.