APC 2004 Annual Report Download - page 97

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95
20.5 - Book value and market value of on-balance sheet financial instruments
(in millions of euros)
December 31, 2004 December 31, 2003
Book Market Book Market
value value value value
Non-consolidated investments 154.3 197.7 369.6 416.9
Other financial assets 288.1 288.1 585.4 585.4
Cash and cash equivalents 1,062.8 1,062.8 3,087.5 3,087.5
Forward purchases and sales of foreign
currencies (1) 31.1 31.1 45.3 45.3
Bonds (1,200.0) (1,257.2) (2,151.0) (2,194.0)
Perpetual bonds (73.3) (73.3) (113.6) (113.6)
Other borrowings (267.4) (267.4) (407.0) (407.0)
Syndicated loan (Lexel) (7.8) (9.9) (16.7) (18.8)
Other financial instruments (12.2) (28.1) 1,399.5 1,401.7
(1) The nominal value of on-balance sheet forward contracts is
1,570.5 million.
20.6 - Currency hedges
Forward hedging positions by currency
(in millions of euros)
December 31, 2004
Sales Purchases Net
USD 1 072.6 (21.2) 1 051.4
JPY 345.9 - 345.9
AUD 198.8 (10.4) 188.4
DKK 122.0 (11.4) 110.6
CHF 17.7 (0.6) 17.1
CZK 14.2 - 14.2
ZAR 18.2 (0.4) 17.8
PLN 12.7 - 12.7
HKD 10.5 - 10.5
GBP 17.0 (31.4) (14.4)
SEK 26.2 (67.0) (40.8)
CAD 18.1 (75.1) (57.0)
Other 25.0 (9.1) 15.9
Total 1 898.9 (226.6) 1 672.3
Forward currency hedging positions include 1,372.3
million in hedges of intercompany loans and borrow-
ings and 300.0 million in hedges of operating cash
flows.
Sensitivity to changes in exchange rates
A 1% change in the exchange rate against the US dol-
lar, the Hong Kong dollar and the British pound–cor-
responding to the three main sources of the Group's
exposure to currency risks –would have the effect of
increasing or reducing the value of the hedges on
these currencies by approximately 2.3 million.
20.7 - Interest rate risk
The main interest rate swaps put in place by the
Group are as follows:
a) SEISAS: swap on perpetual bonds (475.3 million
at December 31, 2004).
b) SE (UK) Ltd: swaps on lines of credit (two swaps,
both on a notional amount of 58.7 million).
Sensitivity to changes in interest rates
The Group's gross debt amounts to 1,548.5 million,
of which 89.5 % is at a fixed rate or at variable rate
debt swapped for fixed rate. The Group also has cash
and cash equivalents of 1,062.8 million. A one point
increase or decrease in interest rates would have the
effect of increasing or reducing the Group's net finan-
cial expense by 5.0 million.
Consolidated financial statements