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• Euro/British Pound: in relation to trade and financial
transactions by Eurozone companies on the British market
and vice versa;
• Euro/US Dollar: in relation to trade and financial
transactions in US dollars by Eurozone companies on the
North American and Middle Eastern markets, and similar
transactions in Euro by North American companies on the
European market;
• United Arab Emirates Dirham/Euro: in relation to trade
and financial transactions by Eurozone companies on the
United Arab Emirates market;
• Euro/Norwegian Krone: in relation to trade and financial
transactions by Eurozone companies on the Norwegian
market and vice versa;
• Euro/Danish Krone: in relation to trade and financial
transactions by Eurozone companies on the Danish market
and vice versa;
• Euro/Swedish Krona: in relation to trade and financial
transactions by Eurozone companies on the Swedish
market and vice versa;
• Euro/Canadian Dollar: in relation to trade and financial
transactions by Eurozone companies on the Canadian
market and vice versa;
• Euro/Qatari Riyal: in relation to trade and financial
transactions by Eurozone companies on the Qatari market;
• Turkish Lira/US Dollar: in relation to trade and financial
transactions in US dollars by Turkish companies on foreign
markets and vice versa;
• Euro/Australian Dollar: in relation to trade and financial
transactions by Eurozone companies on the Australian
market and vice versa;
• Euro/Hungarian Forint: in relation to trade and financial
transactions by Hungarian companies on the Eurozone
market and vice versa;
• Brazilian Real/US Dollar: in relation to trade and financial
transactions in US dollars by Brazilian companies on
foreign markets and vice versa.
In 2013, trade and financial flows exposed to these exchange
rates accounted for around 90.9% of the total exposure
to exchange rate risk arising from trade and financial
transactions (90.2% in 2012).
The Group is also exposed to significant exchange rate risks
on the following exchange rates: Euro/Hong Kong Dollar,
Euro/Czech Koruna, Renminbi/US Dollar and Euro/Singapore
Dollar; none of these exposures, taken individually,
accounted for more than 1.6% of the overall exposure to
transactional exchange rate risk in 2013 (1.2% in 2012).
It is the Group’s policy to hedge, where possible, exposures
in currencies other than the accounting currencies of its
individual companies. In particular, the Group hedges:
• Definite cash flows: invoiced trade flows and exposures
arising from loans and borrowings;
• Projected cash flows: trade and financial flows arising
from firm or highly probable contractual commitments.
The above hedges are arranged using derivative contracts.
The following sensitivity analysis shows the effects on net
profit of a 5% and 10% increase/decrease in exchange rates
versus closing exchange rates at 31 December 2013 and 31
December 2012.
(in millions of Euro)
2013
2012
-5%
+5%
-5%
+5%
Euro
(1.59)
1.44
(1.13)
1.02
US Dollar
(2.05)
1.85
(1.57)
1.42
Other currencies
(0.71)
0.64
(1.66)
1.51
Total
(4.35)
3.93
(4.36)
3.95
(in millions of Euro)
2013
2012
-10%
+10%
-10%
+10%
Euro
(1.59)
1.44
(1.13)
1.02
US Dollar
(2.05)
1.85
(1.57)
1.42
Other currencies
(0.71)
0.64
(1.66)
1.51
Total
(4.35)
3.93
(4.36)
3.95
