2014 Financial Statement

EDC 2014 Performance Report
2014
Foreign Currency
Appreciates
(Depreciates) By
Effect on Income
Before Income Tax Effect on Equity
CH₱ 10% or ₱0.00738 1,115,818 −
(10% or ₱0.00738) (1,115,818) −
PEN 10% or ₱1.4959 51,096 −
(10% or ₱1.4959) (51,096) −
SGD 10% or ₱3.36961 (317,080) −
(10% or ₱3.36961) 317,080 −
NZD 10% or ₱3.46136 (898,624) −
(10% or ₱3.46136) 898,624 −
2013
Foreign Currency
Appreciates
(Depreciates) By
Effect on Income
Before Income Tax Effect on Equity
USD 10% or ₱4.440 (₱2,101,957,381) ₱57,158,762
(10% or ₱4.440) 2,101,957,381 (56,878,221)
GBP 10% or ₱7.28967 (1,005,974) −
(10% or ₱7.28967) 1,005,974 −
SEK 10% or ₱0.67867 851,284 −
(10% or ₱0.67867) (851,284) −
EUR 10% or ₱6.08161 (845,344) −
(10% or ₱6.08161) 845,344 −
NZD 10% or ₱3.62120 (2,249,963) −
(10% or ₱3.62120) 2,249,963 −
The effect of changes in foreign exchange rates in equity pertains to the fair valuation of AFS
investments and derivatives designated as cash flow hedges, and is exclusive of the impact of
changes affecting the Company’s consolidated statements of income.
Equity Price Risk
Equity price risk is the risk that the fair value of traded equity instruments decreases as the result
of the changes in the levels of equity indices and the value of the individual stocks.
As of December 31, 2014 and 2013, the Company’s exposure to equity price risk is minimal.
Interest Rate Risk
The Company’s exposure to the risk of changes in market interest rates relates primarily to the
Company’s long-term debt obligations with floating interest rates, derivative assets, derivative
liabilities and AFS investments.
The interest rates of some of the Company’s long-term borrowings and AFS debt investments are
fixed at the inception of the loan agreement.
The Company regularly evaluates its interest rate risk by taking into account the cost of qualified
borrowings being charged by its creditors. Prepayment, refinancing or hedging the risks are
undertaken when deemed feasible and advantageous to the Company.
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