english - About Heraeus

Cash flow hedges
As part of the bond issue during 2010, forward starting swaps were concluded in line
with the issue volume in order to reduce the interest rate risk. The 6-month Euribor here
was fixed within a bandwidth of 2.956% to 2.9775%. The settlement of the forward
starting swaps took place at the time of the bond issue. The fair value determined as of
the fulfillment date totaled € 6.5 million and was assigned to other reserves. It will be
proportionally dissolved until the expiry of the bond by means of the effective interest
method. In 2012, an amount of € 0.9 million was dissolved.
The effectiveness of the hedging relationships is measured as of December 31, 2012 in
accordance with the cumulative dollar offset method. As of the closing date, € 3.1 million
from the market valuation of hedging transactions was taken to equity with no effect on
income.
Economic foreign currency hedges
In connection with intercompany loans, forward exchange transactions with maturities
in the repayment month are generally concluded. No hedge accounting is used for these
forward exchange transactions. The individual forward exchange contracts are reported
on the balance sheet as assets or liabilities and the changes in their market values are
recognized in the income statement. The income resulting from the currency translation
of intercompany loans in foreign currencies of €1.7 million (previous year: €17.8 million),
as well as the expense of € 9.6 million (previous year: € 7.3 million), were recorded in
the financial result. The positive valuation effects of forward exchange transactions totaled
€11.3 million (previous year: € 4.1 million) and the negative valuation effects € 5.6 million
(previous year: €12.7 million), which were also recognized in the financial result.
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