DHL 2009 Annual Report Download - page 193

 e maturity structure of the derivative  nancial instruments
based on cash  ows is as follows:
Maturity structure: remaining maturities
 m Less
than 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years
More
than 5 years
As at  December 
Derivative receivables – gross settlement
Cash outfl ows –2,421 – 44 – 54 –20 –149 0
Cash infl ows 2,474 63 66 20 180 0
Net settlement
Cash infl ows 600000
Derivative liabilities – gross settlement
Cash outfl ows –1,733 –129 –72 –12 – 8 –172
Cash infl ows 1,670 104 58 9 6 158
Net settlement
Cash outfl ows –10 0 0 0 0 0
As at  December 
Derivative receivables – gross settlement
Cash outfl ows – 4,332 –111 – 43 – 50 –21 –153
Cash infl ows 4,763 128 54 56 21 180
Net settlement
Cash infl ows 4000000
Derivative liabilities – gross settlement
Cash outfl ows – 5,461 –72 – 69 – 47 –12 –193
Cash infl ows 4,914 52 51 35 9 123
Net settlement
Cash outfl ows –13 0 0 0 0 0
Derivative  nancial instruments entail both rights and obli-
gations.  e contractual arrangement de nes whether these rights
and obligations can be o set against each other, thus resulting in a
net settlement or whether both parties to the contract will have to
fully perform under their obligations (gross settlement).
 e options on shares of Deutsche Postbank  signed with
Deutsche Bank  are not included in the overview, since they do
not result in cash  ows.
Currency risk and currency management
 e Group’s global activities expose it to currency risks from
planned and completed transactions in foreign currencies. All
currency risks are recognised and managed centrally in Corpo-
rate Treasury. For this purpose, all Group companies report their
foreign-currency risks to Corporate Treasury, which calculates a
net position per currency on the basis of these reports, hedging
it externally, where applicable. Currency forwards, swaps and cur-
rency options are used to manage the risk.  e notional amount of
outstanding currency forwards and swaps was  , million as
at the balance sheet date (previous year:  , million).  e cor-
responding fair value was  – million (previous year:  – mil-
lion).  ese transactions were used to hedge planned and recorded
operational risks and to hedge internal and external  nancing and
investments.
In addition, currency options with a notional amount of
  million (previous year:   million) and a fair value of
  million (previous year:   million) were used to hedge opera-
tional currency risks.  e Group also held cross-currency swaps
with a notional amount of   million (previous year:   mil-
lion) and a fair value of  – million (previous year  – million)
to hedge long-term foreign currency  nancing.
Currency risks resulting from translating assets and liabilities
of foreign operations into the Group’s currency (translation risk)
were not hedged as at  December .
 e fair value of currency forwards was measured on the basis
of discounted future cash  ows, taking forward rates on the foreign
exchange market into account.  e currency options were measured
using the Black & Scholes option pricing model. Of the unrealised
gains or losses from currency derivatives that were recognised in
equity as at  December  in accordance with  ,  – mil-
lion (previous year:   million) is expected to be recognised in
income in the course of .
Deutsche Post DHL Annual Report 
176