DHL 2011 Annual Report Download - page 211

 e quantitative risk data relating to interest rate risk re-
quired by   is presented in the form of a sensitivity analysis.
 is method determines the e ects of hypothetical changes in mar-
ket 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  nan cial 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
increased by   million (previous year: increased by   mil-
lion). 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 inter-
est rate derivatives recognised in equity. A rise in interest rates in
this  nancial year would not have increased equity (previous year:
  million), nor would a reduction have reduced equity (previous
year:   million).
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
concerned was   million at the reporting date (previous year:
  million). In addition, hypothetical changes in exchange rates
a ect equity and the fair values of those derivatives used to hedge
unrecognised  rm commitments and highly probable forecast cur-
rency transactions, which are designated as cash  ow hedges.  e
foreign currency value at risk of this risk position was   million
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 inter-
est rate swaps with a notional volume of  , million (previous
year:  , million).  e fair value of this interest rate swap pos-
ition was   million (previous year:   million). As in the previ-
ous year, there were no interest rate options at the reporting date.
 e share of instruments with short-term interest lock-ins
did not change signi cantly during the course of . Financial
liabilities with short-term interest lock-ins currently represent  
of total  nancial liabilities.  e e ect of interest rate changes on
the Group’s  nancial position remains insigni cant. Fixed-income
 nan cial liabilities in connection with the planned Postbank sale
are not included in this analysis as these liabilities are paid in
Postbank shares and therefore no interest rate risk arises.
Deutsche Post DHL Annual Report 
Consolidated Financial Statements
Notes
Other disclosures
205