5 _431 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 5 FINANCIAL PERFORMANCE 2023 consolidated financial statements The main reference rates to which the Group is exposed are Euribor and SOFR. Financial instruments that are backed by a benchmark rate subject to the Libor reform have no significant impact on the Group's consolidated financial statements. A 1-point parallel shift in the yield curves applied to the net debt components would have the following impact at December 31, 2023: (in € millions) Annualized cash impact recognized in the income statement Fair value impact Recognized in the income statement(1) Recognized in other comprehensive income(2) Not recognized(3) Total 1-point decrease (39) (26) - (315) (341) 1-point increase 39 25 - 315 340 (1) The Group interest rate policy aims at hedging perfectly identified future cash flows. However, some derivative instruments do not qualify for hedge accounting under IFRS and are measured at fair value through profit or loss. (2) For derivatives qualifying for hedge accounting (cash flow hedges). (3) Some fair value impacts are not accounted for since the underlying net debt component is not booked at fair value but at amortized cost. 33.2.4 Equity risk Equity risk is the risk of a 10% unfavorable change in the price of equities held by the Group. (in € millions) December 31, 2023 December 31, 2022 Carrying amount (note 15.1) 412 387 IMPACT ON EQUITY OF A 10% UNFAVORABLE CHANGE IN THE PRICE OF EQUITIES HELD BY THE GROUP (33) (31) 33.2.5 Counterparty risk At December 31, 2023, 32% of cash and cash equivalents (including cash management financial assets and borrowing collateral) was invested in money market or short term bond funds to allow for a maximum diversification of the counterparty risk. The balance is invested directly with international banks that meet the counterparty risk management criteria defined by the Group. Furthermore, most derivatives are contracted with the same banks. 33.2.6 Credit risk At December 31, 2023, net receivable balances from the ten largest customers amounted to €541 million (2022: €548 million). Out of these, five were located in North America and five in Europe. At the same date, 78 customers (2022: 84) had been granted credit limits in excess of €10 million. Out of these, 29 were located in Europe, 28 in North America, ten in Asia, four in South America, four in the Africa, India, Middle East region and three in Central America. No material collateral has been received to limit the related credit risk. In 2023, credit losses represented 0.05% of sales (2022: 0.10%). 33.2.7 Commodities derivatives In 2023, the Group did not have any material hedges of commodities purchases (note 16.3).
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