Financial Report and Registration Document 2010 - Groupe Seb

3 NOTES
CONSOLIDATED FINANCIAL STATEMENTS
TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANALYSIS OF CURRENCY RISKS ON INTER-COMPANY TRANSACTIONS
The Group’s net exposure to transactional currency risks primarily concerns the following currencies (excluding the functional currencies of Group companies):
At 31 December 2010 (in € millions) USD HUF JPY RUB Other
Total assets 24 8 22 38
Total liabilities (63)
Future transactions
NET POSITION BEFORE HEDGING (63) 24 8 22 38
Forward purchases of foreign currencies 111
Forward sales of foreign currencies (20) (27) (9) (28)
NET POSITION AFTER HEDGING 48 4 (19) 13 10
At 31 December 2009 (in € millions) USD GBP HUF JPY Other
Total assets 4 20 6 38
Total liabilities (48)
Future transactions 64
NET POSITION BEFORE HEDGING (48) 4 20 70 38
Forward purchases of foreign currencies 20
Forward sales of foreign currencies (4) (15) (69) (32)
NET POSITION AFTER HEDGING (28) 0 5 1 6
At 31 December 2008 (in € millions) USD GBP HUF JPY Other
Total assets 5 14 15 51
Total liabilities (34) (1)
Future transactions (29) 4 2 0 6
NET POSITION BEFORE HEDGING (63) 9 16 15 56
Forward purchases of foreign currencies 53
Forward sales of foreign currencies (8) (15) 0 (12)
NET POSITION AFTER HEDGING (10) 1 1 15 44
At 31 December 2010, the euro was trading at USD 1.336, GBP 0.861, HUF
277.95 and JPY 108.65.
The appreciation of these currencies, assuming all other variables remained
the same, would have a positive impact on profit, except for the Japanese
yen, whose appreciation would result in an expense.
At 31 December 2010, the sensitivity analysis of the net position after hedging was as follows:
(in € millions) USD HUF JPY RUB Other
Hypothetical currency appreciation 1% 1% 1% 1% 1%
IMPACT ON PROFIT 0.5 0.0 (0.2) 0.1 0.1
CURRENCY RISKS ON FINANCING
SEB S.A. is the main provider of fi nancing for its subsidiaries. Current
account advances are made in the subsidiaries’ functional currency. As
SEB S.A. raises long-term financing in euros, it is exposed to currency risks
on these advances. To hedge these risks, the Company borrows or lends
funds in the subsidiary’s currency, according to whether the current account
balance is a debit or a credit, or uses currency swaps to refinance its debt
in the subsidiary’s local currency. Currency risks on financing are therefore
systematically hedged.
106 FINANCIAL REPORT AND REGISTRATION DOCUMENT 2010 GROUPE SEB