21. (f) Derivative financial instruments
The derivative financial instruments are as follows:
Derivative financial instruments | T121 | |||
|---|---|---|---|---|
in EUR thousands | Dec 31, 2023 | Dec 31, 2022 | ||
Assets | Liabilities | Assets | Liabilities | |
Interest rate swaps – cash flow hedges | 4,466 | 6,162 | ||
Foreign exchange derivatives – held for trading | 125 | 148 | ||
Foreign exchange derivatives – fair value hedges | 507 | 544 | 588 | 1,430 |
Total | 4,973 | 544 | 6,875 | 1,578 |
Less non-current portion | ||||
Foreign exchange derivatives - fair value hedges | 172 | |||
Interest rate swaps – cash flow hedges | 4,466 | 6,162 | ||
Non-current portion | 4,638 | 6,162 | ||
Current portion | 335 | 544 | 713 | 1,578 |
Further details on the use of hedging instruments can be found in NOTE 5. FINANCIAL RISK MANAGEMENT.
i. Effects of accounting for cash flow hedges on the net assets, financial position and results of operations
The effects of foreign currency and interest rate-related hedging instruments on the net assets, financial position and results of operations are as follows:
The effects of cash flow hedge accounting on financial position and performance | T122 | |||||||
|---|---|---|---|---|---|---|---|---|
in EUR thousands | Net book value as of Dec 31, 2023 (Derivative financial assets [+] / Derivative financial liabilities [-]) | Nominal amount | Average hedging rate in % | Hedging ratio1 | Maturity | Change in fair value of the hedging item since Jan 1 | Change in fair value of the hedged item used as the basis for recognizing hedge ineffectiveness for the period | Book value of hedged item as of Dec 31, 2023 |
Hedging interest rate risk - interest rate swap | 63,348 | -1,696 | 1,696 | 63,348 | ||||
Interest rate swap USD | 4,466 | 63,348 | 1.41 | 1:1 | 2026 | -1,696 | 1,696 | |
1_ The forward foreign exchange contracts are denominated in the same currency as the highly probable future transactions, therefore the hedge ratio is 1:1. | ||||||||
in EUR thousands | Net book value as of Dec 31, 2022 (Derivative financial assets [+] / Derivative financial liabilities [-]) | Nominal amount | Average hedging rate in % | Hedging ratio1 | Maturity | Change in fair value of the hedging item since Jan 1 | Change in fair value of the hedged item used as the basis for recognizing hedge ineffectiveness for the period | Book value of hedged item as of Dec 31, 2022 |
Hedging interest rate risk - interest rate swap | 65,629 | 6,666 | -6,666 | 65,629 | ||||
|---|---|---|---|---|---|---|---|---|
Interest rate swap USD | 6,162 | 65,629 | 1.41 | 1:1 | 2026 | 6,666 | -6,666 | |
1_The forward foreign exchange contracts are denominated in the same currency as the highly probable future transactions, therefore the hedge ratio is 1:1. | ||||||||
The effective part as well as the accrued and recognized costs of hedging recognized in other comprehensive income excluding taxes developed as follows:
Change in hedging reserve before tax | T123 | |
|---|---|---|
in EUR thousands | Interest rate swaps | Total |
Balance as of Jan 1, 2022 | -247 | -247 |
Reclassification to profit or loss | -257 | -257 |
Net fair value changes | 6,666 | 6,666 |
Balance as of Dec 31, 2022 | 6,162 | 6,162 |
Reclassification to profit or loss | -2,527 | -2,527 |
Net fair value changes | 831 | 831 |
Balance as of Dec 31, 2023 | 4,466 | 4,466 |
Amounts due to interest rate swaps recognized in the hedging reserve in equity will be released in profit or loss before the repayment of the loans. In fiscal years 2023 and 2022, no ineffective portion of cash flow hedges relating to foreign exchange derivatives and interest rate swaps was recognized in profit or loss.
ii. Effects of accounting for fair value hedges on the net assets, financial position and results of operations
The effects of foreign currency-related hedging instruments on the net assets, financial position and results of operations were as follows:
The effects of fair value hedge accounting on financial position and performance | T124 | ||||||
|---|---|---|---|---|---|---|---|
in EUR thousands | Net book value as of Dec 31, 2023 (Derivative financial assets [+] / Derivative financial liabilities [-]) | Nominal amount (+ Buy / - Sell) | Average hedging rate | Hedging ratio | Maturity | Change in fair value of the hedging item since Jan 1 | Change in fair value of the hedged item used as the basis for recognizing hedge ineffectiveness for the period |
Currency risk hedging FVH | |||||||
Currency forwards JPY – SGD | -16 | 160 | 96.6 | 1:11 | ≤ 1 year | -10 | 10 |
Currency forwards CZK – EUR | 35 | -2,022 | 24.47 | 1:12 | ≤ 1 year | 81 | -81 |
Currency forwards SGD – EUR | 77 | 6,854 | 1.47 | 1:12 | ≤ 1 year | 31 | -31 |
Currency forwards SGD – EUR | 52 | 3,084 | 1.48 | 1:12 | ≤ 1 year | 44 | -44 |
Currency forwards SGD – EUR | 35 | 6,716 | 1.46 | 1:12 | ≤ 1 year | 26 | -26 |
Currency forwards SGD – EUR | -38 | 7,196 | 1.45 | 1:12 | ≤ 1 year | -52 | 52 |
Currency forwards SEK – EUR | 71 | 3,154 | 11.36 | 1:12 | ≤ 1 year | 67 | -67 |
Currency forwards SEK – EUR | 22 | 2,163 | 11.22 | 1:12 | ≤ 1 year | 18 | -18 |
Currency forwards PLN – EUR | -460 | -7,489 | 4.67 | 1:12 | ≤ 1 year | -606 | 606 |
Currency forwards PLN – EUR | 43 | 1,728 | 4.49 | 1:12 | ≤ 1 year | 36 | -36 |
Currency forwards CHF – EUR | -29 | -1,080 | 0.94 | 1:12 | ≤ 1 year | -39 | 39 |
Currency forwards CZK – EUR | 172 | -25,809 | 25.23 | 1:12 | 2026 | 124 | -124 |
1_The foreign exchange forward contracts for USD-EUR hedging are denominated in the same currency and have the same volume as the hedged net foreign exchange risk from external USD loans and intra-group monetary items in USD, therefore the hedge ratio is 1:1. 2_The forward exchange contracts are denominated in the same currency and volume as the hedged risk from intra-group monetary items, therefore the hedge ratio is 1:1. | |||||||
(continued) The effects of fair value hedge accounting on financial position and performance | |||||||
|---|---|---|---|---|---|---|---|
in EUR thousands | Net book value as of Dec 31, 2022 (Derivative financial assets [+] / Derivative financial liabilities [-]) | Nominal amount (+ Buy / - Sell) | Average hedging rate | Hedging ratio | Maturity | Change in fair value of the hedging item since Jan 1 | Change in fair value of the hedged item used as the basis for recognizing hedge ineffectiveness for the period |
Currency risk hedging FVH | |||||||
Currency forwards USD – EUR | -793 | -6,094 | 1.24 | 1:11 | ≤ 1 year | -714 | 714 |
Currency forwards SEK – EUR | -58 | 1,169 | 10.61 | 1:12 | ≤ 1 year | -64 | 64 |
Currency forwards SGD – EUR | 297 | 6,993 | 1.49 | 1:12 | ≤ 1 year | 168 | -168 |
Currency forwards GBP – EUR | -110 | 2,255 | 0.85 | 1:12 | ≤ 1 year | -103 | 103 |
Currency forwards PLN – EUR | 30 | 534 | 5.11 | 1:12 | ≤ 1 year | 7 | -7 |
Currency forwards SGD – EUR | 110 | 6,853 | 1.45 | 1:12 | ≤ 1 year | 170 | -170 |
Currency forwards SEK – EUR | -48 | 2,158 | 10.89 | 1:12 | ≤ 1 year | -48 | 48 |
Currency forwards JPY – SGD | -30 | 178 | 0.01 | 1:12 | ≤ 1 year | -28 | 28 |
Currency forwards CZK – EUR | -104 | -2,073 | 25.74 | 1:12 | ≤ 1 year | -24 | 24 |
Currency forwards GBP – EUR | 151 | -4,510 | 0.86 | 1:12 | ≤ 1 year | 203 | -203 |
Currency forwards PLN – EUR | -238 | -7,905 | 4.92 | 1:12 | ≤ 1 year | -58 | 58 |
Currency forwards PLN – EUR | -49 | -961 | 5.11 | 1:12 | ≤ 1 year | -5 | 5 |
1_The foreign exchange forward contracts for USD-EUR hedging are denominated in the same currency and have the same volume as the hedged net foreign exchange risk from external USD loans and intra-group monetary items in USD, therefore the hedge ratio is 1:1. 2_The forward exchange contracts are denominated in the same currency and volume as the hedged risk from intra-group monetary items, therefore the hedge ratio is 1:1. | |||||||
An overview of the gains and losses arising from the hedging of fair value changes that were recognized in the financial result is shown below:
Gains and losses fair value hedges | T126 | |
|---|---|---|
in EUR thousands | 2023 | 2022 |
Losses (-) / Gains (+) on hedged items | 503 | 3,212 |
Losses (-) / Gains (+) on hedging instruments | -1,786 | -3,274 |
-1,283 | -62 |
Legend
These contents are part of the Non-financial Group Report and were subject to a separate limited assurance examination.