21. (f) Derivative financial instruments

The derivative financial instruments are as follows:

         

Derivative financial instruments

      

T115

in EUR thousands

Dec 31, 2022

Dec 31, 2021

Assets

Liabilities

Assets

Liabilities

Interest rate swaps – cash flow hedges

6,162

 

 

247

Foreign exchange derivatives – held for trading

125

148

148

 

Foreign exchange derivatives – fair value hedges

588

1,430

305

1,498

Total

6,875

1,578

453

1,745

Less non-current portion

 

 

 

 

Interest rate swaps – cash flow hedges

6,162

 

 

247

Non-current portion

6,162

0

0

247

Current portion

713

1,578

453

1,498
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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

T116

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.
                 

in EUR thousands
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Net book value as of
Dec 31, 2021
(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, 2021

Hedging interest
rate risk - interest
rate swap

 

61,805

 

 

 

-247

247

61,805

Interest rate swap
USD

-247

61,805

1.41

1:1

2026

-247

247

 

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

T117

in EUR thousands

Reserve for costs
of hedging

Spot component
of foreign
exchange
derivatives

Interest rate
swaps

Cross-currency
swaps

Total

Balance as of Jan 1, 2021

0

0

-1,353

0

-1,353

Reclassification to profit or loss

 

 

1,615

 

1,615

Net fair value changes

 

 

-509

 

-509

Accrued and recognized costs of hedging

 

 

 

 

0

Balance as of Dec 31, 2021

0

0

-247

0

-247

Reclassification to profit or loss

 

 

-257

 

-257

Net fair value changes

 

 

6,666

 

6,666

Balance as of Dec 31, 2022

0

0

6,162

0

6,162
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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 2022 and 2021, 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

T118

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 intragroup 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.
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(continued) The effects of fair value hedge accounting on financial position and performance

in EUR thousands

Net book value as of
Dec 31, 2021
(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

-1,457

-27,812

1.2

1:11

≤ 1 year

-1,099

1,099

Currency forwards AUD
– EUR

29

1,057

1.61

1:12

≤ 1 year

27

-27

Currency forwards JPY –
SGD

-13

192

0.01

1:12

≤ 1 year

-12

12

Currency forwards PLN
– EUR

-9

544

4.62

1:12

≤ 1 year

-2

2

Currency forwards PLN
– EUR

275

-8,049

0.22

1:12

≤ 1 year

234

-234

Currency forwards SEK –
EUR

-18

2,927

10.22

1:12

≤ 1 year

-22

22

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 intragroup 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.
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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

  

T119

in EUR thousands

2022

2021

Losses (-) / Gains (+) on hedged items

3,212

1,565

Losses (-) / Gains (+) on hedging instruments

-3,274

-1,817
 

-62

-252
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Legend

These contents are part of the Non-financial Group Report and were subject to a separate limited assurance examination.