Annual Report 2010 311 - Verbundnetz Gas AG

Hedges against interest rate risks
Interest rate swaps have been concluded to hedge the risk of interest rate changes in connection with
variable-interest financial liabilities in the amount of € 132 million. The term of the loans concerned
expires in 2012 or 2014. In accordance with the amount of the loans, the swaps also have a face value
of € 132 million. The interest rate swaps form a micro-hedge with the loans. The effectiveness of the
hedge is reviewed prospectively and retrospectively. As cash inflows and outflows offset each other, the
interest rate swaps are not recognised in the balance sheet. As of the balance sheet date, the interest
rate swaps had a positive fair value of € 2,405 k.
To hedge the risk of interest rate changes in connection with loans which VNG firmly plans to take up in
the future, interest rate swaps with a face value of € 96 million were concluded. As at the balance sheet
date, these interest rate swaps had a positive fair value of € 1,874 k.
Hedges against oil price risks
Commodity futures in the form of oil price swaps with a face value of € 276,370 k were concluded
as micro-hedges to minimize price risks in connection with gas purchase and sale contracts. Such
micro-hedges were used for example to fix purchase prices, which are indexed to oil price levels. In
addition, fixed prices agreed in gas sale contracts were hedged against rising oil prices by oil price
swaps. The terms of most of the oil price swaps expire in 2012; all the swaps expire by 2014 at the
latest. As at the balance sheet date, oil price swaps had positive fair values of € 23,602 k and negative
fair values of € 8,851 k.
Other disclosures
Information in accordance with Article 10 (2), Energy Industry Act
VNG performed commercial, technical and energy industry services for affiliated companies on the
basis of individual service contracts. A cash pooling system using normal market interest rates is operated
within the VNG Group. The regulated gas network was leased to ONTRAS – VNG Gastransport
GmbH, Leipzig.
Staff
The average number of staff employed at VNG – Verbundnetz Gas Aktiengesellschaft, Leipzig in 2010
was 742, consisting of 683 white-collar workers, 50 blue-collar workers, and nine assistants/student
trainees. In addition, the company employed an average of 39 persons in the pre-retirement passive
phase and 39 vocational trainees.
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