Y SU CAPITAL HUMANO
3.2.9. La CHE, en la época de Franco
9.2% of revenue was generated by entities whose functional
●
For the Group’s businesses present in local markets, income and currency is the Chinese yuan; expenses are mainly expressed in local currencies. For the Group’s
4.2% of revenue was generated by entities whose functional
●
businesses relating to international markets, part of the revenue is
currency is the Canadian dollar; denominated in US dollars.
3.6% of revenue was generated by entities whose functional
●
The proportion of 2015 consolidated US dollar revenue generated
currency is the Australian dollar; in countries with functional currencies other than the US dollar or
currencies linked to the US dollar, totaled 10%. ● 3.6% of revenue was generated by entities whose functional currency is the Brazilian real.
The impact of a 1% rise or fall in the US dollar against all other
currencies would have had an impact of 0.01% on consolidated Other currencies taken individually did not account for more than
Group revenue. 4% of Group revenue.
5
Financial statements
Consolidated financial statements at December 31, 2015
When financing arrangements are set up in a currency other than The table below shows the results of the sensitivity analysis for the country’s functional currency, the Group takes out foreign financial instruments exposed to currency risk on the Group’s exchange or currency hedges for the main currencies or uses main foreign currencies (euro, US dollar and pound sterling) at perpetuity financing to protect itself against the impact of December 31, 2015:
currency risk on its income statement.
Non-functional currency
(€ millions) USD EUR GBP
Financial liabilities (1,063.1) (69.5) (163.1)
Financial assets 840.6 59.0 122.5
Net position (assets - liabilities) before hedging (222.5) (10.5) (40.6)
Currency hedging instruments 340.4 39.1
Net position (assets - liabilities) after hedging 117.9 (10.5) (1.6)
Impact of a 1% rise in exchange rates
On equity - - (1.2)
On net profit before income tax 1.2 (0.1) -
Impact of a 1% fall in exchange rates
On equity - - (0.8)
On net profit before income tax (1.2) 0.1 -
The Group is exposed to currency risk inherent to financial
Interest rate risk
instruments denominated in foreign currencies (i.e., currenciesThe Group’s interest rate risk arises primarily from assets and other than the functional currency of each Group entity). The
liabilities bearing interest at floating rates. The Group seeks to sensitivity analysis presented above shows the impact that a
limit its exposure to a rise in interest rates and may use interest significant change in the value of the euro, US dollar and pound
rate instruments where appropriate. sterling would have on earnings and equity in a non-functional
currency. The analysis for the US dollar does not include entities Interest rate exposure is monitored on a monthly basis. The Group whose functional currency is strongly correlated to the US dollar, continually analyses the level of hedges put in place and ensures for example Group entities based in Hong Kong. Liabilities that they are appropriate for the underlying exposure. The Group’s denominated in a currency other than the functional currency of policy is to prevent more than 60% of its consolidated net debt the entity, for which a hedge has been taken out converting the being exposed to the risk of a rise in interest rates over a long liability to the functional currency, have not been included in the period (more than six months). The Group may therefore enter analysis. The impact of a 1% change in exchange rates on hedges into swaps, collars or similar instruments for this purpose. No is shown in the table above. Financial instruments denominated in financial instruments are contracted for speculative purposes. At foreign currencies which are included in the sensitivity analysis December 31, 2015, the Group had no interest rate hedges. relate to key monetary statement of financial position items and
in particular, current and non-current financial assets, trade and operating receivables, cash and cash equivalents, current and non-current borrowings and debt, current liabilities, and trade and other payables.
5
Financial statements
Consolidated financial statements at December 31, 2015
The table below shows the maturity of fixed- and floating-rate financial assets and liabilities at December 31, 2015:
Less than More than
1 to 5 years Total 12/31/2015
(€ millions) 1 year 5 years
Fixed-rate bank borrowings and debt (11.9) (1,142.1) (683.7) (1,837.7)
Floating-rate bank borrowings and debt (55.0) (314.4) (170.8) (540.2)
Bank overdrafts (12.1) (12.1)
TOTAL - Financial liabilities (78.9) (1,456.5) (854.5) (2,390.0)
TOTAL - Financial assets 522.8 522.8
Floating-rate net position (assets - liabilities) before hedging 455.8 (314.4) (170.8) (29.5)
Interest rate hedges - - - -
FLOATING-RATE NET POSITION (ASSETS - LIABILITIES) AFTER HEDGING 455.8 (314.4) (170.8) (29.5)
Impact of a 1% rise in interest rates
On equity -
On net profit before income tax (0.3)
Impact of a 1% fall in interest rates
On equity -
On net profit before income tax 0.3
At December 31, 2015, given the net floating-rate position after hedging, the Group considers that a 1% rise in short-term interest rates across all currencies would lead to an increase of around €0.3 million in interest payable.
Debt maturing after five years, representing a total amount of €854.5 million, is essentially at fixed rates. At December 31, 2015, 77% of the Group’s gross debt was at fixed rates.
Note 35
Related-party transactions
Parties related to the Company are its majority shareholder Amounts recognized with respect to compensation paid in France Wendel, as well as the Chairman of the Board of Directors and the (fixed and variable portions) and long-term compensation plans Chief Executive Officer (Corporate Officers of the Company). (stock purchase options and performance share awards) are as
follows:
5
2015 2014
(€ millions)
Wages and salaries 1.5 1.4
Stock options 0.4 0.5
Performance shares awarded 1.8 2.3
TOTAL EXPENSE RECOGNIZED FOR THE YEAR 3.7 4.2
The amounts in the above table reflect the fair value for minimum period of service and are also subject to a number of accounting purposes of options and shares in accordance with performance conditions.
IFRS. Consequently, they do not represent the actual amounts
The Chief Executive Officer (Corporate Officer) held a total of that may be paid if any stock subscription options are exercised or
635,760 stock options at December 31, 2015 (720,000 at any performance shares vest. Stock options and performance
December 31, 2014), with a fair value per share of €2.50 shares require a minimum period of service and are also subject to
(end-2014: €2.50). a number of performance conditions.
The number of performance shares awarded to the Chief Shares are measured at fair value as calculated under the
Executive Officer (Corporate Officer) amounted to 989,920 at Black-Scholes model rather than based on the compensation
December 31, 2015 (1,108,000 at December 31, 2014). effectively received. The performance share awards require a
5
Financial statements
Consolidated financial statements at December 31, 2015