DHL 2010 Annual Report Download - page 202

Balance sheet currency risks arise from the measurement and
settlement of items in foreign currencies that have already been
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 miti-
gate this impact as far as possible, all signi cant balance sheet cur-
rency 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 externally based on value at risk limits.  e
currency- related value at risk (  / one-month holding period) for
the portfolio concerned totalled   million at the end of the year;
the 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: – mil-
lion). For simpli cation purposes, fair value hedge accounting was
not applied to the derivatives used, which are reported as trading
derivatives instead.
 e maturity structure of the derivative  nancial instruments
based on cash  ows is as follows:
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 and therefore result
in a net settlement, or whether both parties to the contract will
have to perform their obligations in full (gross settlement). No cash
 ows were reported in the maturity bands for “ to  years” and
“more than  years” as at  December , largely because a long-
term derivative that was recognised at its negative fair value as at
 December  and that would have led to corresponding cash
 ows was closed out in ; see Note . (Cash  ow hedges).
 e derivatives on shares of Deutsche Postbank  entered
into with Deutsche Bank  are not included in the overview as
they do not result in cash  ows.
    
 e Group’s global operating activities expose it to currency
risks that are split into balance sheet risks and risks from planned
transactions for risk management purposes.
Maturity structure: remaining maturities
 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
As at  December 
Derivative receivables – gross settlement
Cash outfl ows –1,303 –119 –11 –6 0 0
Cash infl ows 1,361 151 16 14 0 0
Net settlement
Cash infl ows 900000
Derivative liabilities – gross settlement
Cash outfl ows –2,930 –46 –12 –154 0 0
Cash infl ows 2,822 34 8 165 0 0
Net settlement
Cash outfl ows –6 0 0 0 0 0
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 00000
Deutsche Post DHL Annual Report 
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