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Foreign currency risk

The Group is exposed to foreign exchange risk arising from buying and selling transactions carried in other currencies than the valuation currency.

Export is that area of the Group’s operations which is exposed to foreign exchange risk.

  • In 2017 the revenue earned in foreign currencies had a 15.9% share in the total sales revenues, of which 15.0% was earned in EUR (mainly from the sales to Finland) and 0.9% in US dollars (most of which were the sales to Saudi Arabia and Russia).
  • In 2016 the revenue earned in foreign currencies had a 19.2% share in the total sales revenues, of which 16.9% was earned in EUR (mainly from sales to Finland), 2.2% in US dollars (most of which were the sales to Russia) and 0.1% in UAH (sales to Ukraine).

In the case of the Company’s exports in EUR, there is natural hedging, as most of imports are also carried out in EUR.

  • As at 31 December 2017, the amounts of receivables in foreign currencies constituted 14.2% of total receivables, payables in foreign currencies constituted 14.1% of total trade payables, while foreign currencies constituted 37.3% of total cash (of which balance in EUR was 19.3% and in USD it was 18.0%).
  • As at 31 December 2016, the amounts of receivables in foreign currencies constituted 12.8% of total receivables, payables in foreign currencies constituted 6.1% of total trade payables, while foreign currencies constituted 39.8% of total cash (of which balance in EUR was 35.9% and in USD it was 3.9%).

The following table demonstrates the sensitivity of the company’s profit before tax to a reasonably possible change in US dollar and euro exchange rates, due to changes in the fair value of monetary assets and liabilities, with all other variables held constant. 

Sensitivity of the company’s profit before tax to a reasonably possible change in US dollar and euro exchange rates, due to changes in the fair value of monetary assets and liabilities, with all other variables held constant.
 as at 31 December 2017as at 31 December 2016
currencycurrency
USDEURUSDEUR
exchange rates 3,4813 4,1709 4,1793 4,4240
amount in the currency (receivables and cash less payables) 7 641 9 141 1 842 17 023
receivables, payables and cash 26 601 38 126 7 699 75 310
exchange rate accounting for 10% increase 3,8294 4,5880 4,5972 4,8664
receivables, payables and cash with exchange rates change considered 29 261 41 939 8 469 82 841
change in profit before tax 2 660 3 813 770 7 531
change in net profit 2 155 3 088 624 6 100
exchange rate accounting for 10% decrease 3,1332 3,7538 3,7614 3,9816
receivables, payables and cash with exchange rates change considered 23 941 34 313 6 929 67 779
change in profit before tax (2 660) (3 813) (770) (7 531)
change in net profit (2 155) (3 088) (624) (6 100)

File in XLSX format
Sensitivity of the company’s profit before tax to a reasonably possible change in US dollar and euro exchange rates, due to changes in the fair value of monetary assets and liabilities, with all other variables held constant. file .xlsx12,1 kB


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