CONSOLIDATED FINANCIAL STATEMENTS >
EXPLANATORY NOTES
150
| 2013 ANNUAL REPORT | PRYSMIAN GROUP
(in millions of Euro)
2012
Application
Business
2012 Restated
IAS19 Revised
combinations
Sales of goods and services
7,848
7,848
Change in inventories of work in progress, semi-finished
and finished goods
(31)
(31)
Other income
71
71
of which non-recurring other income
15
15
of which remeasurement of minority put option liability
7
7
Raw materials, consumables used and goods for resale
(5,083)
(5,083)
Fair value change in metal derivatives
14
14
Personnel costs
(1,041)
(1,041)
of which non-recurring personnel costs
(65)
(65)
of which personnel costs for stock option fair value
(17)
(17)
Amortisation, depreciation and impairment
(188)
(188)
of which non-recurring impairment
(24)
(24)
Other expenses
(1,228)
(1,228)
of which non-recurring other expenses
(51)
(51)
Operating income
362
-
-
362
Finance costs
(393)
(2)
(395)
of which non-recurring finance costs
(8)
(8)
Finance income
258
258
of which non-recurring finance income
3
3
Share of net profit/(loss) of associates and dividends from other companies
17
17
Profit/(loss) before taxes
244
(2)
-
242
Taxes
(73)
(73)
Net profit/(loss) for the year
171
(2)
-
169
Attributable to:
Owners of the parent
168
(2)
166
Non-controlling interests
3
3
CONSOLIDATED INCOME STATEMENT
D.
FINANCIAL RISK MANAGEMENT
The Group’s activities are exposed to various forms of risk:
market risk (including exchange rate, interest rate and
price risks), credit risk and liquidity risk. The Group’s risk
management strategy focuses on the unpredictability of
markets and aims to minimise the potentially negative
impact on the Group’s results. Some types of risk are
mitigated using derivatives.
Monitoring of key financial risks is centrally coordinated
by the Group Finance Department, and by the Purchasing
Department where price risk is concerned, in close cooperation
with the Group’s operating companies. Risk management
policies are approved by the Group Finance, Administration
and Control Department, which provides written guidelines on
managing the above risks and on using (derivative and non-
derivative) financial instruments.
The impact on net profit and equity described in the
following sensitivity analyses has been determined net
of tax, calculated using the Group’s weighted average
theoretical tax rate.
(a) Exchange rate risk
The Group operates worldwide and is therefore exposed to
exchange rate risk caused by changes in the value of trade
and financial flows expressed in a currency other than the
accounting currency of individual Group companies.
The principal exchange rates affecting the Group are:
