DHL 2013 Annual Report Download - page 197

Currency risks arise from planned foreign currency trans-
actions if the future foreign currency transactions are settled at
exchange rates that dier from the rates originally planned or
calculated. ese currency risks are also captured centrally in
Corporate Treasury and managed on a rolling -month basis as
part of a hedging programme. e goal is to hedge an average of
up to   of all signicant currency risks over a -month period.
is makes it possible to plan reliably and reduce uctuations in
earnings caused by currency movements. At the reporting date,
an average of approximately   of the foreign currency risk of
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). At the end of
the year there were no currency options, as in the previous year.
e Group also held cross-currency swaps with a notional amount
of  million (previous year:  million) and a fair value of
 million (previous year  million) to hedge 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 .
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
hypothetical 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 inter nal 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
unrecog nised 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 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.
e Group placed further xed-coupon bonds on the cap-
ital market in nancial year . At the same time, the remaining
maturity of the bond falling due in January  dropped to less
than one year and some of the original xed-coupon bonds were
swapped for variable short-term interest rates. As a result, the share
of instruments with short-term interest lock-ins increased sharply
year-on-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. However, the eect of poten-
tial 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 sensitivity
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.
193Deutsche Post DHL 2013 Annual Report
Notes
Other disclosures
Consolidated Financial Statements