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Foreign exchange risk
Due to the global nature of its activities, the Group is exposed to foreign exchange risk. Foreign
exchange risk arises from investments in foreign subsidiaries (translation risk) as well as from
transactions and financial assets or financial liabilities that are denominated in a currency other than
the functional currency of a legal unit (transaction risk). In order to hedge transaction risk that
cannot be eliminated through offsetting transactions in the same foreign currency (natural hedging),
subsidiaries may use forward contracts, which are usually traded with banks via Group Treasury.
The transaction risk from foreign currencies is monitored periodically.
The subsidiaries’ cash holdings with banks are denominated mostly in the functional currency of
the subsidiary. The majority of the business transacted in Autoneum’s subsidiaries is also in their
functional currency. At the reporting date, the Group held financial instruments which were denomi-
nated in currencies other than the functional currency of the respective Group company as follows:
CHF million
Assets
31.12.2016
Liabilities
31.12.2016
Assets
31.12.2015
Liabilities
31.12.2015
EUR
40.5
24.6
37.9
23.0
USD
23.2
19.5
18.6
18.6
Other
0.7
2.3
1.4
1.2
Total
64.4
46.4
57.8
42.8
The Group is exposed to foreign exchange risk mostly against the euro and the US dollar. The currency-
related sensitivity of the Group against these two currencies is shown in the following table:
CHF million
Reasonable
shift
Impact on
net result
Impact on
equity
December 31, 2016
EUR/CHF
+/–2%
+/–0.6
+/–1.3
USD/CHF
+/–2%
+/–0.8
+/–5.8
December 31, 2015
EUR/CHF
+/–15%
–/+1.0
+/–9.3
USD/CHF
+/–5%
+/–2.1
+/–8.3
The impact on net result is mainly due to foreign exchange gains and losses on trade receiv-
ables and trade payables as well as the translation of the profit or loss of foreign subsidiaries into
Swiss francs for consolidation purposes. The impact on equity additionally includes currency
translation adjustments arising from the translation of the net investment in foreign subsidiaries.
82
Autoneum
Financial Report 2016
Consolidated Financial Statements