DHL 2014 Annual Report Download - page 199

e Group repaid the Deutsche Post Finance . . bond amounting
to  million falling due in January  at the agreed date. Cur-
rent nancial liabilities were reduced accordingly.
e maturity structure of the derivative nancial instruments
based on cash ows is as follows:
Maturity structure of derivative financial instruments
 m
Less
than 1 year
More
than 1 year
to 2 years
More
than 2 years
to 3 years
More
than 3 years
to 4 years
More
than 4 years
to 5 years
More
than 5 years
At  December 
Derivative receivables – gross settlement
Cash outflows –1,900 –149 –15 –17 –14 –37
Cash inflows 1,982 169 28 28 20 50
Net settlement
Cash inflows 5 1 0 0 0 0
Derivative liabilities – gross settlement
Cash outflows –2,429 –259 0 0 0 0
Cash inflows 2,321 248 0 0 0 0
Net settlement
Cash outflows –30 –6 0 0 0 0
At  December 
Derivative receivables – gross settlement
Cash outflows –5,345 –389 0 0 0 0
Cash inflows 5,591 403 0 0 0 0
Net settlement
Cash inflows 23 5 0 0 0 0
Derivative liabilities – gross settlement
Cash outflows –1,821 – 411 – 46 –33 – 41 –37
Cash inflows 1,776 409 48 26 26 23
Net settlement
Cash outflows –4 –1 0 0 0 0
Derivative nancial instruments entail both rights and obligations.
e contractual arrangement denes whether these rights and ob-
ligations can be oset against each other and therefore result in a
net settlement, or whether both parties to the contract will have to
perform their obligations in full (gross settlement).
    
e international business activities of Deutsche Post  Group
expose it to currency risks from recognised or planned future
transactions:
Balance sheet currency risks arise from the measurement and
settlement of items in foreign currencies that are recognised if the
exchange rate on the measurement or settlement date diers from
the rate on recognition. e resulting foreign exchange dierences
directly impact prot or loss. In order to mitigate this impact as far
as possible, all signicant balance sheet currency risks within the
Group are centralised at Deutsche Post  through the in-house
bank function. e centralised risks are aggregated by Corporate
Treasury to calculate a net position per currency and hedged ex-
ternally based on value-at-risk limits. e currency- related value
at risk (  / one-month holding period) for the portfolio totalled
 million (previous year:  million) at the reporting date; the
current limit was a maximum of  million.
e notional amount of the currency forwards and currency
swaps used to manage balance sheet currency risks amounted to
, million at the reporting date (previous year: , mil-
lion); the fair value was – million (previous year:  million).
For simplication purposes, fair value hedge accounting was not
applied to the derivatives used, which are reported as trading
derivatives instead.
Currency risks arise from planned foreign currency trans-
actions if the future foreign currency transactions are settled at
exchange rates that dier from the rates originally planned or
calculated. ese currency risks are also captured centrally in
Corporate Treasury and managed on a rolling -month basis as
part of a hedging programme. e goal is to hedge an average of
up to   of all signicant currency risks over a -month period.
is makes it possible to plan reliably and reduce uctuations in
earnings caused by currency movements. At the reporting date,
an average of approximately   of the foreign currency risk of
Deutsche Post  Group —  Annual Report
193
Consolidated Financial Statements — NOTES — Cash flow disclosures — Other disclosures