Etex-AR2017-WEBSITE

6.1
Financial report
Consolidated financial statements
Etex Annual Report 2017
Financial report
Consolidated financial statements
Note 15 – Inventories
The different types of inventories are detailed below:
IN THOUSANDS OF EUR 2016 2017
Raw materials 120,269 127,835
Work in progress 31,537 35,062
Finished goods 214,600 231,604
Spare parts and consumables 79,599 84,211
Goods purchased for resale 33,448 36,942
Write-downs to net realisable value -47,577 -47,375
Total 431,876 468,279
In 2017, the Group recognised inventory write-downs to net realisable value of €1 thousand (€9,118 thousand in
2016) as an expense, including reversal of prior year write-downs amounting to €7,257 thousand (€5,614 thousand
in 2016). Reversals of write-downs without impact on the income statement amount to €1,308 thousand
(€4,688 thousand in 2016).
As a comparison, the reasonably possible change of exchange rate of these currencies against the Euro was
estimated as follows for 2016:
CLOSING RATE
31 DECEMBER 2016
AVERAGE RATE
2016
POSSIBLE VOLATILITY
OF RATES IN %
RANGE OF POSSIBLE CLOSING
RATES 31 DECEMBER 2016
RATES USED FOR SENSITIVITY ANALYSIS
RANGE OF POSSIBLE
AVERAGE RATES 2016
Argentinean peso 16.6978 16.3206 22 12.9416 - 20.454 12.6492 - 19.9919
Chilean peso (000) 0.7057 0.7491 13 0.615 - 0.7964 0.6528 - 0.8453
Colombian peso (000) 3.1631 3.3817 18 2.6021 - 3.724 2.782 - 3.9815
Nigerian naira 332.3050 283.4324 47 177.0455 - 487.5645 151.0071 - 415.8577
Peruvian nuevo sol 3.5376 3.7365 14 3.0287 - 4.0464 3.199 - 4.2739
Pound sterling 0.8562 0.8178 11 0.7639 - 0.9484 0.7297 - 0.9059
If the Euro had weakened or strengthened during 2017
by the above estimated possible changes against the
listed currencies with all other variables held constant,
the 2017 profit would have been €16,522 thousand
(11%) higher or €10,873 thousand (-7%) lower while
equity would have been €60,492 thousand (6%) higher
or €32,553 thousand (-3%) lower. In 2016, if the
Euro had weakened or strengthened the profit
would have been €18,543 thousand (14%) higher
or €13,651 thousand (-11%) lower while equity
would have been €66,008 thousand (7%) higher or
€34,275 thousand (-4%) lower.
2017
Note 16 – Risk management and financial derivatives
IN THOUSANDS OF EUR
IF EURO WEAKENS
IF EURO STRENGTHENS
16.1 Risk management
A. Market risk
Exposure to currency risk
Around 54% of the Group’s revenue is generated by
subsidiaries with a functional currency other than the
Euro (54% in 2016). The Group has its main foreign
exchange exposure in the following foreign currencies:
Argentinean peso, Chilean peso, Colombian peso,
Nigerian naira, Peruvian nuevo sol and Pound sterling.
Translation currency sensitivity analysis
On the basis of the volatility of these currencies against
the Euro in 2017, the reasonably possible change of the
exchange rate of these currencies against the Euro is
estimated as follows:
PROFIT EQUITY PROFIT EQUITY
Argentinean peso 4,462 9,837 -2,937 -6,475
Chilean peso -663 12,715 533 -3,545
Colombian peso 446 7,142 -335 -5,364
Nigerian naira 5,432 26,247 -2,631 -12,711
Peruvian nuevo sol 1,033 10,167 -821 -8,081
Pound sterling 5,812 -5,616 -4,682 3,623
Total 16,522 60,492 -10,873 -32,553
2016
RATES USED FOR SENSITIVITY ANALYSIS
IN THOUSANDS OF EUR
IF EURO WEAKENS
IF EURO STRENGTHENS
CLOSING RATE
31 DECEMBER 2017
AVERAGE RATE
2017
POSSIBLE VOLATILITY
OF RATES IN %
RANGE OF POSSIBLE CLOSING
RATES 31 DECEMBER 2017
RANGE OF POSSIBLE
AVERAGE RATES 2017
Argentinean peso 22.3663 18.7749 21 17.7575 - 26.9751 14.9062 - 22.6437
Chilean peso (000) 0.7373 0.7330 11 0.6572 - 0.8173 0.6534 - 0.8126
Colombian peso (000) 3.5787 3.3384 14 3.07 - 4.0874 2.8638 - 3.8129
Nigerian naira 367.0460 351.2407 35 239.5159 - 494.5761 229.2021 - 473.2793
Peruvian nuevo sol 3.9180 3.6854 11 3.4702 - 4.3658 3.2642 - 4.1066
Pound sterling 0.8872 0.8769 8 0.8174 - 0.9571 0.8079 - 0.9459
PROFIT EQUITY PROFIT EQUITY
Argentinean peso -2,706 9,137 1,712 -5,781
Chilean peso 3,544 11,767 -2,736 -9,089
Colombian peso 1,770 9,899 -1,237 -6,917
Nigerian naira 2,348 35,820 -853 -13,007
Peruvian nuevo sol 7,149 13,257 -5,351 -9,923
Pound sterling 6,438 -13,872 -5,186 10,442
Total 18,543 66,008 -13,651 -34,275
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