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20.2 Notes to the consolidated financial statements for the year ended December 31, 2016
FINANCIAL INFORMATION CONCERNING ASSETS,
FINANCIAL POSITION AND FINANCIAL PERFORMANCE
20
At December 31, 2016, derivatives set up by NewCo to hedge foreign exchange risk were as follows:
(Notional amounts by maturity date at December 31, 2016)
2017 2018 2019 2020 2021 > 5 years
Total
Market
value
Forward exchange transactions and currency swaps
2,237 1,194
595
202
4,228 (185)
Currency options
52
52
(2)
Cross-currency swaps
63
65
317
445
6
TOTAL
2,352 1,259
912
202
0
0
4,725
(180)
Derivative financial instruments used to hedge NewCo’s foreign exchange risk were as follows at December 31, 2016 and December 31, 2015:
(in millions of euros)
2016
Nominal amounts
in absolute value
Market value
Derivatives related to fair value hedging strategies (FVH)
337
(8)
Forward exchange transactions and currency swaps
337
(8)
Derivatives related to net investment hedging strategies (NIH)
0
0
Derivatives related to cash flow hedging strategies (CFH)
3,139
(157)
Forward exchange transactions and currency swaps
3,139
(157)
Derivatives not eligible for hedge accounting
1,250
(15)
Forward exchange transactions and currency swaps
752
(19)
Currency options
52
(2)
Cross-currency swaps
445
6
TOTAL
4,725
(180)
COMMODITY RISK
The group has little commodity risk and no hedge had been set up at December 31,
2016.
INTEREST RATE RISK
Rate risk management is entirely centralized in the department of Financial
Operations and Treasury Management, which consolidates the subsidiaries’
current or stable cash surpluses or requirements and arranges external financing as
appropriate, except as otherwise required by regulations or specific circumstances.
The group uses several types of derivatives, as required by market conditions, to
allocate its borrowings between fixed rates and floating rates and to manage its
investment portfolio, with the goal being mainly to reduce its borrowing costs while
optimizing the management of its cash surpluses.
The amount of the commitments and the sensitivity of the positions taken by the
trading desk in the framework of AREVA’s rate management policy are subject to
limits based on the type of transaction involved.
250
2016 AREVA
REFERENCE DOCUMENT