financial report and registration document 2011 - Groupe SEB

5 Notes
Consolidated fi nancial statements
to the consolidated fi nancial statements
CURRENCY RISKS ON FINANCING
SEB S.A. is the main provider of fi nancing for its subsidiaries. Current
account advances are made in the subsidiaries’ functional currency. As
SEB S.A. raises long-term fi nancing in euros, it is exposed to currency risks
on these advances. To hedge these risks, the Company borrows or lends
funds in the subsidiary’s currency, according to whether the current account
balance is a debit or a credit, or uses currency swaps to refi nance its debt
in the subsidiary’s local currency. Currency risks on fi nancing are therefore
systematically hedged.
The Group does not however apply hedge accounting to these transactions.
At 31 December 2011 (in € millions) USD Other
Total assets 372 89
Total liabilities 103 16
NET POSITION BEFORE HEDGING 269 73
Hedging positions (218) (31)
NET POSITION AFTER HEDGING 51 42
At 31 December 2010 (in € millions) USD Other
Total assets 265 84
Total liabilities 30 14
NET POSITION BEFORE HEDGING 235 70
Hedging positions (225) (37)
NET POSITION AFTER HEDGING 10 33
At 31 December 2009 (in € millions) USD GBP Other
Total assets 290 8 25
Total liabilities 62 8
NET POSITION BEFORE HEDGING 228 8 17
Hedging positions (267) (9) (17)
NET POSITION AFTER HEDGING (39) (1) 0
The appreciation or depreciation of these currencies, assuming all other variables remained constant, would have an impact on profi t.
At 31 December 2011, the sensitivity analysis of the net position after hedging was as follows:
(in € millions) USD Other
Hypothetical currency appreciation 1% 1%
IMPACT ON PROFIT 0.5 0.4
CURRENCY RISKS ON NET INVESTMENTS IN FOREIGN
OPERATIONS
Groupe SEB is also exposed to currency risks on its net investment in foreign
operations, corresponding to the impact of changes in exchange rates for
the subsidiaries’ functional currencies on SEB S.A.’s share in their net assets.
These risks are not hedged.
26.2.2. Interest rate risks
Group policy consists of hedging interest rate risks based on trends in market
interest rates and changes in the Group’s overall debt structure. These risks
are not systematically hedged.
126 GROUPE SEB Financial Report and Registration Document 2011