ANNUAL REPORT 2008/09 - Sonova

The mortgages are secured by liens on the related real estate. The principal amount bears interest at 3.4%
per annum (previous year 3.4%). The fair value of the mortgages approximates to book value.
Other non-current fi nancial liabilities mainly consist of amounts due in relation to the Share Appreciation
Rights (SARs) and Warrant Appreciation Rights (WARs) (refer Note 30).
Analysis by currency 1,000 CHF 31.3.2009 31.3.2008
90 CONSOLIDATED FINANCIAL STATEMENTS
Mortgages Other
non-current
fi nancial
liabilities
Total Mortgages Other
non-current
fi nancial
liabilities
CHF 255 255 282 282
EUR 149 149 183 183
DKK 319 319 331 331
USD 39 39 50 50
CAD 1,472 1,472 168 168
Other 365 365 20 20
Total 319 2,280 2,599 331 703 1,034
24. Risk management and fi nancial instruments
Group risk management
Risk management at Group level is an integral part of business practice and supports the strategic decision-making
process. The assessment of risk is derived from both “top-down” and “bottom-up” and
covers all consolidated Group Companies and their relevant business segments. This approach allows for
the Group to examine all types of risk exposure, from fi nancial, operational, legal and compliance,
through to market and external environment. The impact of risk is minimized by consistent evaluation,
communication, risk consolidation and prioritization.
The responsibility for risk assessment, management and controlling is allocated to departments with
specialised Corporate Functions such as Group Finance, Internal Audit, Quality and Regulatory, Operations
and Group HR. The Management Board, in addition to Group Companies and Functional Managers conducts
an annual risk analysis. The Board of Directors discusses and analyzes the Groups risks at a min imum
of once a year in the context of a strategy meeting. If a group level intervention is required, respon sibility
for mitigating actions will be determined by the Management Board.
Financial risk management
Due to Sonova Group’s worldwide activities, the Group is exposed to a variety of fi nancial risks such as
market risks, credit risks and liquidity risks. Financial risk management aims to limit these risks and seeks
to minimize potential adverse eff ects on the Group’s fi nancial performance. The Group uses selected
fi nancial instruments for this purpose. They are exclusively used as hedging instruments for cash in- and
outfl ows and not for speculative positions.
The fundamentals of Sonova Group’s fi nancial risk policy are priodically reviewed by the Audit Committee
and carried out by the Group Finance department. Group Finance is responsible for implementing the
policy and for ongoing fi nancial risk management.
Total