financial report and registration document 2011 - Groupe SEB

The following table analyses fi nancial assets and liabilities at 31 December 2011, based on interest rate re-set dates:
At 31 December 2011 (in € millions)
Financial Report and Registration Document 2011
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Consolidated fi nancial statements
Notes to the consolidated fi nancial statements
Overnight to 1 year 1 to 5 years More than 5 years
Floating rate Fixed rate Fixed rate Fixed rate
Total assets 196.0
Total liabilities (472.6) (10.0) (383.5)
NET POSITION AFTER HEDGING (276.6) (10.0) (383.5)
Interest payable between January 2007 and March 2012 is hedged by a fl oating/fi xed rate swap. This swap qualifi es for hedge accounting under IAS 39.
AT 31 DECEMBER 2011
(in € millions) Expiring within one year 2011 Expiring in 1 to 5 years Expiring beyond 5 years
Floating/fi xed rate swap 10 0 0
Based on gross debt at 31 December 2011, assuming debt remains constant throughout the year and is denominated in the same currencies as at that
date, a 1-point increase in interest rates would lead to an estimated €6.6 million increase in interest expense but would have no material impact on net debt.
The impact of the interest rate swap on equity at 31 December 2011 was as follows:
(in € millions) 2011
FAIR VALUE AT 1 JANUARY (0.3)
Change in fair value (0.1)
Amount reclassifi ed into profi t 0.3
FAIR VALUE AT 31 DECEMBER (0.1)
26.2.3. Commodity risks
Commodity risks arising from changes in the prices of certain raw materials
used by the Group – mainly aluminium, copper and nickel used to produce
stainless steel – are hedged by derivative instruments. The Group anticipates
its needs for the coming year (except for in China) and hedges them on
a conservative basis, covering 70% of its estimated purchases for the
next twelve months. At 31 December 2011, 22,024 tonnes of aluminium
purchases and 266 tonnes of nickel purchases were hedged.
Prices are set in advance using zero-premium collars, swaps and average
monthly price options.
These hedges of raw material purchases are qualifi ed as cash fl ow hedges
under IAS 39 when the criteria listed in Note 1.4.4 are met.
At 31 December 2011, remeasurement of commodity hedges at fair value
led to the recognition in equity of an unrealised loss of €5.6 million. This
fair value remeasurement resulted in an unrealised gain of €1.2 million at
31 December 2010 and an €8.1 million unrealised loss at year-end 2009.
Derivatives that expired in 2011 led to a loss of €4.5 million versus a
€3.8 million loss in 2010.
SENSITIVITY ANALYSIS
A 10% increase or decrease in metal prices at 31 December 2011 would
have had a €3.7 million positive or negative impact on equity, assuming all
other variables remained constant.
A 10% increase or decrease in metal prices versus their average prices in
2011 would have had a €9.3 million positive or negative impact on operating
result from activity (formerly “operating margin”).
26.2.4. Equity risk and treasury stock
It is not Group policy to hold signifi cant portfolios of equities or equity funds.
The Group does, however, hold a portfolio of SEB shares, purchased in
connection with:
� a liquidity contract set up in order to ensure that there is a suffi ciently liquid
market for SEB shares and to stabilise the share price; and
� the share buyback programme, mainly for allocation on exercise of
employee stock options.
Treasury stock is deducted directly from equity. Gains and losses on sales
of treasury stock are also recognised in equity.
GROUPE SEB
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