Consolidated financial statements
1
3
LISI 2014FINANCIALREPORT
I
47
rate. Thehedginghorizonmay extendover up to8 years. This strategy
enabled the Group, in 2014, to sell a total amount of USD 8.6M at an
averageratecloseto1.20.
Portfolioof foreignexchangederivatives
Themainhedging instrumentsusedby theGroupaspart of its foreign
exchange riskmanagement are forward sales, purchases and sales of
optionsandstructuredproductssuchasaccumulators.
Theportfolioof foreignexchangederivatives isbrokendownas follows:
12/31/2014
12/31/2013
Fair
value
(1)
Notional
amount
(2)
< 1 year between
1 and
5 years
more
than
5 years
Fair
value
(1)
Notional
amount
(2)
< 1 year between
1 and
5 years
more
than
5 years
Longpositionof
GBPagainstEUR
0.1
5.0
5.0
0.0
0.0
Longpositionof
GBPagainstUSD
(1.2)
37.0
37.0
0.0
0.0
0.9
20.5
20.5
0.0
0.0
Longpositionof
CADagainstUSD
(1.9)
23.1
23.1
0.0
0.0
(0.4)
32.8
19.5
13.3
0.0
Longpositionof
TRYagainstEUR
1.1
10.4
10.4
0.0
0.0
(2.1)
8.6
8.6
0.0
0.0
Longpositionof
PLNagainstUSD
(0.3)
4.2
4.2
0.0
0.0
0.3
3.2
3.2
0.0
0.0
Longpositionof
CZKagainstEUR
0.0
6.9
6.9
0.0
0.0
(0.1)
7.0
7.0
0.0
0.0
Shortpositionof
USDagainstEUR
(1.0)
69.7
16.8
52.9
0.0
2.1
19.9
7.3
9.1
3.6
TOTAL
(3.3)
0.8
(1)Fairvalueamountsareexpressed inmillionsofeuros
(2)Themaximumnotionalamountsaredenominated inmillionsofeuros (amounts in localcurrencyconverted intoeurosasatDecember31,2014).
Derivatives and hedging activities meet the cash flow hedge criteria
andareaccounted for inaccordancewith theprovisionsof IAS 39. Thus
the hedging instruments aremeasured at fair value. Changes in value
are recognized as transferable equity (Other Comprehensive Income)
for the certain portion of the hedge and as financial income for the
uncertainportion. Inparticular, thehedging activities accounted for as
such are subject to formal documentation justifying in particular the
hedging relationship, its effectiveness and the objective of theGroup's
riskmanagementandhedgingstrategy. Effectiveness testswerecarried
outasatDecember31, 2014andhavedemonstrated theeffectivenessof
thehedgingrelationship.
The sensitivity of financial instruments to a +/- 10% change in the
EUR /USDexchangerate isas follows:
Impact in€'000
12/31/2014
USD
Closingprice
1.2141
Euro /dollarexchange ratedevelopment
assumptions
-10% +10%
Euro /dollarexchange rateused for the
sensitivityanalysis
1.0927
1.3355
Impacton theuncertainportion (before tax)
(8,532)
1,250
Impacton thecertainportion (before tax)
(564)
667
2.4.4Riskrelatedtotheimpairmentofintangibleassets
Thenetamountofgoodwill atDecember31, 2014amounted to€256M.
The results of the impairment tests confirm the robustness of the
CGUsof the LISI AEROSPACEdivision's Fastenersbusiness and show the
strengtheningof the LISI AUTOMOTIVEand the LISIMEDICALdivision's
businesses. The Extrusion Forming and Sheet Metal CGU (goodwill of
€ 39M as at December 31, 2014) has a certain sensitivity related to a
context of strong industrial development over the coming yearswhich
generatessometensionontheoperatingcash flows.
