Annual Report 2011 (5.07 MB, PDF-File) - Oerlikon

Key Figures Group Notes OC Oerlikon Corporation AG, Pfäffikon
Exposure to currency risk
Notes to the consolidated financial statements
The Group’s exposure to foreign currency risk was as follows based on nominal amounts as of December 31, 2011:
2011 2010
in million EUR USD CHF EUR USD CHF
Trade receivables 11 26 – 16 22 2
Trade payables 14 13 4 5 11 4
Net financial position 33 48 – –5 –7 –2
Gross exposure consolidated balance sheet 58 87 4 16 26 4
Foreign currency risk in business operations 159 121 –31 62 101 68
Open foreign exchange forward contracts –147 –128 21 –67 –80 –53
Net exposure 70 80 –6 11 47 19
Interest rate risk
Oerlikon is exposed to interest rate risk mainly from its financial debt, which is placed at variable interest rates, but also on a much smaller
scale from its liquid funds, which are also placed at variable rates or held as short-term investments. Amounts drawn down from the
syndicated loan are subject to interest rate fluctuations.
Group Treasury prepares and provides the relevant decision support for senior management (Board of Directors, senior financial
management) and arranges for hedging against interest rate fluctuations once approval is given. Such hedging is carried out using
derivative financial instruments, such as Interest Rate Swaps and Interest Rate Caps.
At December 31, 2011, the interest rate profile of the Group’s interest-bearing financial instruments was:
in CHF milllion
Net carrying
amount
2011 2010
net carrying
amount
Fixed rate interest
Financial assets 3 4
Financial liabilities – –
Total 3 4
Variable rate interest
Financial assets 745 754
Financial liabilities –832 –1 033
Total –87 –278
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have decreased (increased) profit or loss by the amounts shown
below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant.
Income Statement
Effect in CHF million
100 bp
increase
100 bp
decrease
2011
Cash flow sensitivity –2 3
2010
Cash flow sensitivity –5 9
It has been assumed that a change of +100 bp has a full impact on interest income and expenses. In case of a decrease of 100 bp
it is assumed no positive impact of interest on assets due to the overall low interest rates. Tax impact has been included in all figures
regarding interest sensitivity.
A change of 100 basis points in interest rates would have no impact on Group equity.
Note 20 (cont.)
123