Note 11: Financial Risk Management continued c. Credit Risk The Group only invests its cash and cash equivalent financial assets with financial institutions having a credit rating of at least ‘BBB+’ or better, as assessed by independent rating agencies. Floating Rate3 Non-Interest Bearing Total Average Closing Interest Rate US$m US$m US$m % 2025 2024 2025 2024 2025 2024 2025 2024 Financial assets and contract assets Cash and cash equivalents 2,157 1,657 — — 2,157 1,657 2.7 % 3.8 % Receivables and contract assets (excluding prepayments) — — 2,977 2,799 2,977 2,799 — — Other financial assets — — 203 163 203 163 — — 2,157 1,657 3,180 2,962 5,337 4,619 As at 30 June 2025, cash and cash equivalents includes $963m (2024: $772m) in cash deposits. Credit quality of financial assets 30 June 2025 (US$m) 30 June 2024 (US$m) Financial Institutions $2,157m Governments $160m Hospitals $428m Buying Groups $1,358m Publicly traded securities $35m Venture fund assets $140m Other $1,059m Financial Institutions $1,657m Governments $350m Hospitals $272m Buying Groups $1,173m Publicly traded securities $12m Venture fund assets $126m Other $1,029m Government or government-backed entities (such as hospitals) often account for a significant proportion of trade receivables. As a result, the Group carries receivables from a number of Southern European governments. The credit risk associated with trading in these countries is considered on a country-by-country basis and the Group’s trading strategy is adjusted accordingly. The factors taken into account in determining the credit risk of a particular country include recent trading experience, current economic and political conditions and the likelihood of continuing support from agencies such as the European Central Bank. The following table analyses trade receivables and contract assets that are past due and, where required, the associated provision for expected credit losses (Note 14). All other financial assets are less than 30 days overdue. Gross Provision Net 2025 2024 2025 2024 2025 2024 Trade receivables and contract assets US$m US$m US$m US$m US$m US$m Current 2,214 2,013 (8) (5) 2,206 2,008 Less than 30 days overdue 96 107 — (1) 96 106 Between 30 and 90 days overdue 120 87 — — 120 87 More than 90 days overdue 142 81 (13) (10) 129 71 2,572 2,288 (21) (16) 2,551 2,272 112 Notes to the Financial Statements 3 Floating interest rates represent the most recently determined rate applicable to the instrument at balance sheet date. All interest rates on floating rate financial assets are subject to reset within the next six months. 112 Financial Report
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