Loreal 2011 Annual Report Download - page 135

133REGISTRATION DOCUMENT − L’ORÉAL 2011
2011 Consolidated Financial Statements
4
Notes to the consolidated  nancial statements
As the Group’s companies must borrow and invest their cash
in their own currency, the exchange rate risks generated by
managing their own cash and debt are almost non-existent.
Owing to the Group’s policy of hedging a large part of annual
requirements for the following year at the end of the current year,
the sensitivity of profit or loss to changes in foreign exchange
rates at December31st is marginal. The impact of changes in
foreign exchange rates on the foreign exchange cash flow
hedges reserve is described in note20.4.
The following derivatives, all of which have a maturity of less than 18months at inception, are held for currency risk hedging purposes:
€ millions
Nominal Market value
12.31.2011 12.31.2010 12.31.2009 12.31.2011 12.31.2010 12.31.2009
Currency futures
Purchase of EUR against foreign currencies 1,662.1 1,595.9 1,500.1 -52.7 -51.9 -17.1
EUR/RUB 300.7 301.8 2.8 1.5 -5.8 -0.1
EUR/USD 265.3 170.2 298.1 -20.9 -2.3 4.7
EUR/CNY 165.3 85.4 107.9 -8.7 -2.7 1.6
EUR/CHF 161.6 255.8 228.8 -1.6 -14.9 -3.7
EUR/MXN 87.1 78.3 74.2 1.8 -1.1 0.8
EUR/GBP 85.0 -0.7 32.7 -6.8 -0.4 1.2
EUR/BRL 81.0 84.0 89.3 0.3 -5.6 -7.2
EUR/CAD 69.8 79.3 97.8 -2.5 -2.0 -2.4
EUR/AUD 64.9 60.8 64.0 -4.9 -5.6 -4.2
EUR/HKD 49.5 72.3 71.4 -7.2 0.0 0.5
EUR/Western European currencies 24.9 17.7 82.7 -1.2 -2.2 -1.7
EUR/Eastern European currencies 85.9 100.6 100.0 1.2 -0.1 -1.0
EUR/Asia Pacific currencies 117.5 180.6 171.7 -2.7 -5.6 -1.8
EUR/Other currencies 103.6 109.8 78.7 -1.2 -3.8 -3.8
Purchase of USD against foreign currencies 305.3 247.4 191.4 11.7 -9.7 -6.0
USD/Latin American currencies 133.0 119.5 80.4 5.6 -3.8 -2.9
USD/Asia Pacific currencies 112.6 72.3 50.0 4.3 -4.0 -0.7
USD/Other currencies 59.7 55.6 61.0 1.8 -1.9 -2.4
Sale of USD against foreign currencies 192.1 - 140.4 -9.7 - 7.5
Sale of USD against CHF 192.1 - 140.4 -9.7 - 7.5
Other currency pairs 245.2 232.9 173.0 -3.2 -1.7 0.8
Currency futures total 2,404.7 2,076.2 2,004.9 -53.9 -63.3 -14.8
Currency options
EUR/USD 121.0 122.8 - 2.7 8.0 -
EUR/GBP 73.5 82.3 65.0 1.2 4.5 2.1
EUR/Other currencies 231.3 222.7 17.4 9.5 11.0 0.3
CHF/USD 96.3 - 10.4 2.9 - 0.2
Other currency pairs 14.8 30.3 5.8 0.4 1.0 0.2
Currency options total 536.8 458.1 98.6 16.7 24.5 2.8
of which total options purchased 536.8 458.2 98.6 16.7 24.5 2.8
of which total options sold - -0.1 - - 0.0 -
Total 2,941.5 2,534.3 2,103.5 -37.2 -38.8 -12.0
The total amount of options sold corresponds exclusively to the sale of previously purchased options when it was considered
appropriate to replace them with other hedging instruments.