DHL 2014 Annual Report Download - page 200

the currencies concerned was hedged for the next  months. e
relevant hedging transactions are recognised using cash ow hedge
accounting; Note ., cash ow hedges.
In total, currency forwards and currency swaps with a
notional amount of , million (previous year: , million)
were outstanding at the balance sheet date. e corresponding
fair value was – million (previous year:  million). As at the
reporting date, there were no currency options or cross-currency
swaps. e cross-currency swaps still existing in the previous year
(notional amount of  million and fair value of  million)
expired as scheduled in nancial year .
Currency risks resulting from translating assets and liabilities
of foreign operations into the Group’s currency (translation risk)
were not hedged as at  December .
Of the unrealised gains or losses from currency derivatives
recognised in equity as at  December  in accordance with
 ,  million (previous year:  million) is expected to be
recognised in income in the course of .
  requires the disclosure of quantitative risk data show-
ing how prot or loss and equity are aected by changes in exchange
rates at the reporting date. e impact of these changes in exchange
rates on the portfolio of foreign currency nancial instruments is
assessed by means of a value-at-risk calculation (  condence /
one-month holding period). It is assumed that the portfolio as at
the reporting date is representative for the full year. Eects of hypo-
thetical changes in exchange rates on translation risk do not fall
within the scope of  . e following assumptions are used as a
basis for the sensitivity analysis:
Primary nancial instruments in foreign currencies used by
Group companies were hedged by Deutsche Post ’s in-house
bank, with Deutsche Post  setting and guaranteeing monthly
exchange rates. Exchange rate-related changes therefore have no
eect on the prot or loss and equity of the Group companies.
Where, in individual cases, Group companies are not permitted to
participate in in-house banking for legal reasons, their currency
risks from primary nancial instruments are fully hedged locally
through the use of derivatives. ey therefore have no impact on
the Group’s risk position.
Hypothetical changes in exchange rates have an eect on
the fair values of Deutsche Post ’s external derivatives that is
reported in prot or loss; they also aect the foreign currency gains
and losses from remeasurement at the closing date of the in-house
bank balances, balances from external bank accounts as well as
internal and external loans extended by Deutsche Post . e
foreign currency value at risk of the foreign currency items con-
cerned was  million at the reporting date (previous year:  mil-
lion). In addition, hypothetical changes in exchange rates aect
equity and the fair values of those derivatives used to hedge unrec-
ognised rm commitments and highly probable forecast currency
transactions, which are designated as cash ow hedges. e foreign
currency value at risk of this risk position was  million as at
 December  (previous year:  million). e total foreign
currency value at risk was  million at the reporting date (previ-
ous year:  million). e total amount is lower than the sum of
the individual amounts given above, owing to interdependencies.
      
e fair value of interest rate hedging instruments was calcu-
lated on the basis of discounted expected future cash ows using
Corporate Treasury’s risk management system.
As at  December , the Group had entered into interest
rate swaps with a notional volume of , million (previous year:
, million). e fair value of this interest rate swap position
was  million (previous year:  million). As in the previous
year, there were no interest rate options at the reporting date.
In January, the Group repaid the bond amounting to
 million, which fell due for payment. Some of the original
xed-coupon bonds were swapped for variable short-term interest
rates. As a result, there was an insignicant change in the share of
instruments with short-term interest lock-ins compared with the
previous year. Taking into account existing interest rate hedging
instruments, the proportion of nancial liabilities with short-term
interest lock-ins, Note , amounts to around   (previous year:
 ) as at the reporting date. e eect of potential interest rate
changes on the Group’s nancial position remains insignicant.
e quantitative risk data relating to interest rate risk required
by   is presented in the form of a sensitivity analysis. is
method determines the eects of hypothetical changes in market
interest rates on interest income, interest expense and equity as at
the reporting date. e following assumptions are used as a basis
for the sensitivity analysis:
Primary variable-rate nancial instruments are subject to
interest rate risk and must therefore be included in the sensitiv-
ity analysis. Primary variable-rate nancial instruments that were
transformed into xed-income nancial instruments using cash
ow hedges are not included. Changes in market interest rates for
derivative nancial instruments used as a cash ow hedge aect
equity by changing fair values and must therefore be included in
the sensitivity analysis. Fixed-income nancial instruments meas-
ured at amortised cost are not subject to interest rate risk.
Designated fair value hedges of interest rate risk are not in-
cluded in the analysis because the interest-related changes in fair
value of the hedged item and the hedging transaction almost fully
oset each other in prot or loss for the period. Only the variable
portion of the hedging instrument aects net nancial income / net
nance costs and must be included in the sensitivity analysis.
If the market interest rate level as at  December  had
been  basis points higher, net nance costs would have in-
creased by  million (previous year: increased by  million). A
market interest rate level  basis points lower would have had
the opposite eect. A change in the market interest rate level by
 basis points would aect the fair values of the interest rate
derivatives recognised in equity. As in the previous year, a rise in
interest rates in this nancial year would not have increased equity,
nor would a reduction have reduced equity.
Deutsche Post  Group —  Annual Report
194