Porsche 2009 Annual Report Download - page 233

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All non-functional currencies in which the Volkswagen group entered into financial instru-
ments were included as relevant risk variables in the sensitivity analysis according to IFRS 7. If the
functional currencies concerned had increased or decreased by 10% against the other currencies
as of 31 July 2009, the following effects on equity and on profit or loss before tax as of that date
would have resulted with regard to the currency relations shown below.
4.4.1.2 Interest rate risk
In the prior year and in the reporting period until the date of deconsolidation, the interest
rate risk for the automotive division resulted from changes in market interest rates. These changes
particularly affected the interest result from short-term deposits and medium- and long-term vari-
able-rate receivables and liabilities, but also had an impact on the market value recognized for
fixed-interest receivables and liabilities. Interest rate swaps, cross-currency interest swaps and
other interest contracts are entered into to hedge against this risk under fair value or cash flow
hedges, depending on market conditions. Intra-group financing arrangements are normally struc-
tured to match the maturities of their refinancing.
31/7/2009
€ million +10% – 10%
Currency relation
EUR/foreign currency
Equity 2,054 – 1,645
Profit/loss before tax – 461 246
GBP/USD
Equity 66 – 66
Profit/loss before tax 1 0
USD/MXN
Equity 31 – 31
Profit/loss before tax – 6 6
CZK/USD
Equity 50 – 50
Profit/loss before tax – 3 3
Other non-EUR / foreign currency
Equity 82 – 82
Profit/loss before tax – 26 26