DHL 2009 Annual Report Download - page 194

  requires a company to disclose a sensitivity analysis,
showing how pro t or loss and equity are a ected by hypotheti-
cal changes in exchange rates at the reporting date. In this process,
the hypothetical changes in exchange rates are analysed in relation
to the portfolio of  nancial instruments not denominated in their
functional currency and being of a monetary nature. It is assumed
that the portfolio as at the reporting date is representative for the
whole year.
E ects of hypothetical changes in exchange rates on the trans-
lation risk do not fall within the scope of  .  e following as-
sumptions are taken as a basis for the sensitivity analysis:
Primary monetary  nancial instruments used by Group com-
panies were either denominated directly in the functional currency
or the currency risk was transferred to Deutsche Post  via its in-
house bank at the exchange rates Deutsche Post  has guaranteed.
Exchange-rate-induced changes have therefore no e ect on pro t or
loss and equity of the Group companies. Some isolated Group com-
panies are not legally entitled to participate in in-house banking.
 ese companies hedge their currency risks from primary mon-
etary  nancial instruments linked with Deutsche Post  by using
derivatives.  e internal derivatives are consolidated in the Group.
 e risk remaining at Group level is taken into account when com-
puting the net position.
Hypothetical changes in exchange rates a ect the fair values of
the external derivatives used by Deutsche Post  with changes in
fair value reported in pro t or loss; they also a ect the foreign cur-
rency results from the measurement at closing date of the in-house
bank balances denominated in foreign currency, balances from ex-
ternal bank accounts as well as internal and external loans extended
by Deutsche Post . In addition, hypothetical changes in exchange
rates a ect equity and the fair values of those derivatives used to
hedge o -balance sheet obligations and highly probable future cur-
rency transactions – designated as cash  ow hedges.
A   revaluation of the euro against all currencies as at
 December  would have reduced pro t by  – million
(previous year:  – million).  ese hypothetical e ects on pro t
or loss are mainly the result of the euro’s sensitivity to the Singa-
pore dollar ( – million; previous year:  – million), the Paki-
stan Rupee ( – million; previous year:  – million), the Bahrein
Dinar (  million; previous year:   million) and the Chinese Yuan
(  million; previous year:   million). A devaluation of the euro
would have approximately the opposite sensitivities.
A revaluation of the euro by   would have increased the
hedging reserve recognised in equity by   million (previous year:
  million).  e hypothetical change in equity is mainly the re-
sult of the euro’s sensitivity to the  Dollar ( – million; previ-
ous year:  – million), the British Pound (  million; previous
year:   million) and the Japanese Yen (  million; previous year:
  million). A currency devaluation would adversely a ect equity
in the amount of  – million (previous year:  – million).
Commodity risk
As in the previous year, most of the risks arising from com-
modity price  uctuations, in particular  uctuating prices for kero-
sene, diesel and marine diesel fuels, were passed on to customers
via operating measures. In addition, a small number of commodity
swaps for diesel and marine diesel fuels was used to control residual
risks.  e notional amount of commodity swaps was   million
(previous year: no swaps outstanding) with a fair value of   million
(previous year:   million).
  requires a company to disclose a sensitivity analysis,
presenting the e ects of hypothetical commodity price changes on
pro t or loss and equity. Changes in commodity prices would a ect
the fair value of the derivatives used to hedge commodity purchases
which are highly probable in the future (cash  ow hedges) and the
hedging reserve in equity. Since all commodity-price derivatives are
accounted for as cash  ow hedges, changes to the commodity prices
would not a ect pro t or loss.
A   increase by the balance sheet date in the commodity
prices underlying the derivatives would have increased fair values
and equity by   million.  e corresponding decline in commodity
prices would have had the opposite e ect.
Interest rate risk and interest rate management
Note  contains an overview of the outstanding  nancial
liabilities.  e use of interest rate derivatives allows the Group to
establish an adequate proportion between variable-interest and
 xed-income  nancial instruments.
 e fair value of interest rate hedging instruments was cal-
culated on the basis of the discounted expected future cash  ows,
using the Group’s treasury risk management system.
As at  December  the Group had entered into interest
rate swaps at 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 options at the reporting date.
 e Group did not materially change the share of instruments
with short-term interest lock-ins in the course of .  e propor-
tion between notional volumes of instruments with short-term and
with long-term interest rate lock-ins remained largely well balanced.
 e e ect of interest rate changes on the Group’s  nancial position
continues to be immaterial. Not included in this consideration are
 xed-income  nancial liabilities in connection with the Postbank
sale, since these liabilities are paid with Postbank shares which does
not create any interest rate risk.
Deutsche Post DHL Annual Report 
Consolidated Financial Statements
Notes
Other disclosures
177