2007 Reference document (PDF) - Valeo

Consolidated fi nancial statements at December 31, 2007
Notes to consolidated financial statements
Based on notional amounts, most of the Group’s net exposure to foreign currency risk arises on the following currencies (excluding entities’
functional currencies):
At December 31
(In millions of euros)
2007 2006 2005
USD JPY Euro Total Total Total
Accounts and notes receivable 72 18 350 440 526 130
Other financial assets 162 50 102 314 198 59
Accounts and notes payable (33) (14) (321) (368) (485) (53)
Long-term debt (8) - (520) (528) (109) -
Gross exposure recognized on the
balance sheet at December 31 193 54 (389) (142) 130 136
Forward sales 34 20 39 93 (276) (161)
Forward purchases (215) (56) (22) (293) 83 29
Net exposure at December 31 12 18 (372) (342) (63) 4
At December 31, 2006, the breakdown by currency of the net exposure recognized in the balance sheet for (63) million euros is as follows:
■
■
■
26 million euros relating to the US dollar;
11 million euros relating to the Japanese yen;
(100) million euros relating to the euro.
Analysis of the sensitivity of net income to foreign currency risk
The sensitivity analysis was based on an exchange rate of 1.47 US dollar and 164.93 Japanese yen to 1 euro at December 31, 2007 (1.32 and
156.93, respectively, at December 31, 2006).
At December 31, 2007, an appreciation of 10% in the euro against these currencies would reduce income by the amounts shown in the
table below. A sensitivity analysis is also provided for 2006. For the purpose of the analysis, it is assumed that all other variables, including
interest rates, remain unchanged.
At December 31
(In millions of euros) (losses)
USD (3)
JPY (2)
TOTAL FOR 2007 (5)
USD (3)
JPY (1)
TOTAL FOR 2006 (4)
Assuming that all other variables remain unchanged, 10% depreciation of the euro against the US dollar and Japanese yen at December 31, 2007
would increase income by the amounts shown in the table above.
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2007 Reference document - VALEO
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