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Interest rate risk
The interest rate risk of the Group relates to
interest-bearing assets and liabilities. Floating
interest rate positions are subject to cash flow
interest risk. Fixed-interest positions are subject
to fair value interest risk if measured at fair
value. In general, Autoneum aims to maintain,
in consideration of seasonal fluctuations, a
balanced relation between fixed and floating in-
terest-bearing financial liabilities as disclosed
in note 24 on page 100. The two bonds issued at
fixed interest rates are not subject to any inter-
est rate risk, whereas the long-term credit agree-
ment with floating interest rates is subject to a
cash flow interest risk.
The Group analyzes the interest rate risk on
a net basis. No hedging of the interest rate risk
was performed in the reporting period or in the
prior period. Based on the interest-bearing
assets and liabilities existent at December 31,
2016, a 100 base point higher level of the
money market interest rates would lead to a
CHF 0.1 million (2015: CHF 0.2 million)
lower net result as well as equity of the Group
on an annual basis. A 100 base point lower
level of the money market interest rates would
impact neither net result nor equity of the
Group on an annual basis in both the reporting
year and the prior year.
Price risk
Holding marketable securities exposes Autoneum
to a risk of price fluctuation. Since Autoneum
held neither significant amounts of shares (ex-
cept for treasury shares) nor options at the
end of the reporting period, no sensitivity analy-
sis of fair value risk is prepared.
2.2 Capital risk
The Group’s objectives when managing capital
are to safeguard the Group’s ability to continue
as a going concern in order to provide returns for
the shareholders and benefits for other stake-
holders, and to maintain an optimally leveraged
capital structure in order to reduce the cost of
capital. Autoneum aims to maintain a stable in-
vestment grade rating as perceived by bank
partners and debt investors.
Autoneum Group therefore targets a healthy
balance sheet with an adequate portion of
equity. Autoneum aims for an equity ratio that
does not fall below 30% over a longer period.
As of December 31, 2016, the equity ratio
equaled 38.4% (2015: 35.7%). For the next few
years, the dividend policy will depend on a
number of factors, such as net profit and the
financial situation of the Group, the demand
for capital and liquidity, the general business en-
vironment as well as legal and contractual re-
strictions. Subject to the foregoing, the Group
intends to distribute at least 30% of its net
profit attributable to shareholders of Autoneum
Holding Ltd. Dividends, if any, are expected to
be declared and paid in Swiss francs.
83
Autoneum
Financial Report 2016
Consolidated Financial Statements