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METRO GROUP : ANNUAL REPORT 2010 : BUSINESS
→ NOTES : OThER NOTES
As of the closing date, the remaining currency risk of
METRO GROuP was as follows:
Impact of devaluation/appreciation
of euro by 10%
€ million
Currency pair
Net profit for the period
Volume 31/12/2010 31/12/2009
CNy / EuR –54 +/–5 +/–3
CZK / EuR –3 +/–0 +/–1
EGP / EuR –18 +/–2 +/–0
hRK / EuR –31 +/–3 +/–1
huf / EuR –10 +/–1 +/–1
JPy / EuR 58 +/–6 +/–0
MAd / EuR 115 +/–11 +/–0
Mdl / EuR –41 +/–4 +/–5
PlN / EuR –100 +/–10 +/–10
RON / EuR –217 +/–22 +/–17
RSd / EuR –13 +/–1 +/–0
RuB / EuR –138 +/–14 +/–10
TRy / EuR 19 –/+2 –/+1
uAh / EuR –22 +/–2 +/–1
uSd / EuR 26 +/–2 +/–3
VNd / EuR –15 +/–2 +/–1
Equity
+/–83 +/–52
JPy / EuR 0 +/–0 +/–3
PlN / EuR 77 +/–8 +/–7
RuB / EuR –526 +/–53 +/–50
SEK / EuR –51 +/–5 +/–5
TRy / EuR –32 +/–3 +/–3
uAh / EuR –248 +/–25 +/–25
uSd / EuR 403 +/–40 +/–26
+/–134 +/–119
+/–217 +/–171
In addition, currency risks for the currency pairs uSd/CNy,
uSd / hKd, uSd / RuB, uSd / TRy, uSd / VNd with an effect
of €+/–7 million (previous year: €+/–6 million) exist in the case
of an appreciation or devaluation of the uSd by 10 percent.
Share price risks result from share-based compensation of
METRO GROuP executives. The remuneration (monetary
bonus) is essentially based on the price development of the
Metro ordinary share.
→ p. 204
Share options on METRO AG ordinary shares are used to cap
this risk from the share bonus programme valid until 2008.
The share price risk from this programme is fully hedged
on a fluctuation-adjusted basis. In 2009, the share bonus
programme was replaced by the performance share plan.
The share price risk from this programme has not been
limited to date.
Electricity prices affect the fair value of electricity derivatives.
fluctuations in value impact the other financial result.
As of the closing date, the nominal value of the portfolio with
a delivery in 2011 amounts to €23.5 million and the nominal
value of the portfolio with a delivery in 2012 amounts to €5.6
million. The nominal portfolio value refers to the cost of
procurement.
Based on the determination of the value at risk, with a confidence
level of 99 percent and a holding period of 20 days,
a maximum gain of €3.1 million and a maximum loss of €2.3
million was calculated for the portfolio with a delivery in
2011. The respective figures for the portfolio with a delivery
in 2012 are €0.8 million and €0.3 million. The value at risk
model is based on a historic simulation of market prices for
the last five years.
Interest rate and currency risks are substantially reduced
and limited by the principles laid down in the internal
treasury guidelines of METRO GROuP. These include, for
example, a regulation that is applicable throughout the
Group whereby all hedging operations must adhere to predefined
limits and may by no means lead to increased risk
exposure. METRO GROuP is aware that this severely limits
the opportunities to exploit current or expected interest rate
and exchange rate movements to optimise results.
In addition, hedging may be carried out only with standard
financial derivatives whose correct actuarial and accounting
mapping and valuation in the treasury system are guaranteed.
As of the closing date, the following financial instruments
were being used for risk reduction: