NEOPOST_REGISTRATION_DOCUMENT_2017
5
Financial statements
Parent company statements of financial position
Loan/borrowing/short-term advance
Notional amount of financial instruments
Subsidiary
Currency
Amount
Neopost Sverige AB
Loan
SEK
53.6
Neopost Sverige AB
Short term advance
SEK
(17.5)
Neopost Finance (Ireland) Ltd
Loan
SEK
45.0
Neopost Finance (Ireland) Ltd
Short term loan
SEK
7.0
Neopost Finans AB
Short term advance
SEK
(5.3)
82.8
Neopost Finance (Ireland) Ltd
Loan
DKK
40.0
Neopost Finance (Ireland) Ltd
Short term loan
DKK
7.7
Neopost Danmark AS
Short term advance
DKK
(13.8)
Neopost Danmark Finans AS
Short term advance
DKK
(2.0)
31.9
Quadient Canada Inc
Short term loan
CAD
4.5
4.5
Quadient Poland sp z.o.o
Short term loan
PLN
3.9
3.9
Neopost Asia-Pacific Pte Ltd
Short term loan
SGD
0.2
Quadient Singapore Ltd
Short term loan
SGD
4.4
4.6
Temando Holding Pty
Short term advance
AUD
(0.3)
Neopost Finance (Ireland) Ltd
Loan
AUD
30.0
Temando Pty Ltd
Short term advance
AUD
(0.1)
Neopost Finance (Ireland) Ltd
Short term loan
AUD
3.2
Neopost Shipping Holding Pty
Short term loan
AUD
41.0
Quadient Australia Pty Ltd
Short term loan
AUD
3.0
Neopost Holdings Pty Ltd (Australie) 73.1 Neopost S.A. naturally hedges these loans by debts in united States dollar (private placements, Schuldschein, revolving credit facilities). (a) Short term advance AUD (3.7)
13-3 Risk management policy
Hedging of interest rate risk
Year-end position A hedging strategy is adopted on the basis of the position to be managed and the reference interest rate adopted. The strategy is aimed at protecting the reference interest rate and at taking advantage, at least to some extent, of favorable movements. Hedging strategies involve definite and optional derivative instruments, and open positions are maintained if possible. The valuation of the open position based on market forward interest rates, along with the interest rates obtained through hedging operations, should always protect the reference interest rate. Hedging strategies cover the period three years ahead at all times. However, the level of coverage and the weightings of the various derivative instruments may vary from one year to the next, since the aim is to maintain greater scope for optimizing positions in later years. Neopost works with the same consultancy for hedging both interest rate risk and exchange rate risk.
To limit the impact of a rise in interest rates on its interest expenses, the Neopost group has a risk-hedging policy aimed at protecting a maximum annual interest rate for the three years ahead at all times. management horizon used is rolling in order to always have three years of management. Neopost has a policy of centralizing its interest rate risk, enabling it to monitor the Group’s overall interest rate risk exposure and to gain full control over the market instruments used in hedging operations. The Group hedges its interest rate risk depending on its current debt levels, but also according to likely future movements in debts, arising from drawings on its revolving credit facilities. Financial instruments are carried by the legal entities that have the corresponding debt on their balance sheet.
The table below sets out Neopost S.A.’s year-end position:
EUR
USD
Financial assets
-
-
Financial liabilities
908.6
238.9
Net exposure before hedging
(908.6)
(238.9)
Fixed-rate debt
733.3
145.0
Hedging
155.0
95.0
190
REGISTRATION DOCUMENT 2017 / NEOPOST
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