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Part 3 - Financial statements
103
in EUR ‘000’ 31/12/12 31/12/11 31/12/10
Sensitivity to market rates
% variation EUR 10 % 10 % 10 %
Impact on current year P&L 7 265 1 858 5 453
Impact on future cash flows 9 448 7 986 7 730
Compared to its closing rate, an appreciation / depreciation
of the Euro of 10% against all currencies used by the
Group would result in a positive / negative impact of
EUR 7.265 thousand (before income taxes) on the income
statement of the current year and EUR 9.448 thousand
on future financial flows after hedging. This calculation
obviously refers to balance sheet items only.
The impact of the EUR/USD exchange rate fluctuations
on the 2012 results of the Group amounted to EUR
10.292 thousand on the revenue and to EUR 1.109
thousand on EBIT.
d) Management of interest rate risk
Interest rate risk comes from the exposure of the Group
to the fluctuations of interest rates and their possible
impact on the financing cost. Most of the cost of the
Group debt is based on EURIBOR-3 months. It is the
policy of the Group to limit its exposure to the interest
rates volatility by using financial instruments which swap
a variable interest rate into a fixed rate, in particular
interest rate Swaps (IRS).
During the first half of 2012, Hamon Group concluded
several hedging contracts with a maturity of 5 years,
interest rate swaps (IRS) in Euro and Cross Currency
IRS (CCIRS) “ fixed USD against floating EUR ” (see
note 36).
The following table shows the debts of the Group
(excluding refinancing costs) with a fixed interest rate
and those with a variable interest rate :
31/12/12 31/12/11 31/12/10
in EUR ‘000’ Average rate Principal Average rate Principal Average rate Principal
Fixed Rate
Financial liabilities 6,50% 887 10,94% 5 620 7,02% 1 712
Variable Rate
Financial liabilities 3,29% 131 595 3,98% 118 030 4,63% 80 893
3,31% 132 482 4,30% 123 650 4,68% 82 605
in EUR ‘000’ 2012 2011 2010
Sensitivity to market rate
bp change 115 60 30
Impact on P&L 1 513 708 243
IRS hedging effect (361) - -
Net Profit or (loss) 1 152 708 243
Calculation of the market interest rate sensitivity is
based on a hypothetical variation of 115 basis points on
the reference market interest rate (comparable with the
variation of the EURIBOR- 3 month over the year 2012).
In the event of an increase or decrease of the market
interest rates by 115 basis points, the gross impact on
income would be EUR 1.513 thousand.