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B Consolidated Annual Financial Statements/Notes V. Notes to the Consolidated Financial Statements of Salzgitter AG 276 277
In the case of foreign currency receivables, rate hedging cover is provided by entering into forward
exchange contracts with various banks. The relevant claims are reported at the rate agreed in each
case. Hedging relationships were established for both firm obligations and expected future transactions.
The nominal volume of the derivative financial instruments comprises the unnetted total of all purchase
and sale amounts, valued at the respective settlement rates. Market values were, on principle,
determined on the basis of conditions that prevailed on the reporting date, using the values at which
the relevant derivative financial instruments were traded or listed, without considering contrary movements
in the value of the underlying transactions. The current value of the derivatives to be reported
derives from the valuation of the hedged foreign currency amount with the difference between the
rate applying when the forward contract was entered into and the forward rate on the reporting date;
this amount is discounted to the reporting date at the euro interest rate in accordance with the
residual term.
The following key interest rates were used to determine the fair values of the currency derivatives as of
the end of the reporting year and the previous year:
Term EUR interest rate (%) GBP interest rate (%) USD interest rate (%)
31/12/2007 31/12/2006 31/12/2007 31/12/2006 31/12/2007 31/12/2006
1 month 4.2940 3.6100 5.9538 6.3747 4.6000 5.2700
3 months 4.6900 3.7000 5.9938 5.9893 4.7025 5.3100
6 months 4.7090 3.8300 5.9400 6.2831 4.5963 5.3350
1 year 4.7540 4.0150 5.7438 6.1745 4.2238 5.3050
2 years 4.5330 4.1160 5.2097 5.4445 3.8180 5.1735
4 years 4.5440 4.1140 4.7075 5.4045 4.0450 5.0750
10 years 4.7240 4.1810 4.6025 5.0875 4.6590 5.1650
Consolidated Annual
Financial Statements