2007 - April

2.0
Notes to the consolidated financial statements at December 31 st 2007
Liquidity risk
Most of the financial investments held by APRIL GROUP are
admitted for trading on an official listing market or equivalent
and involve a low liquidity risk.
The following table presents a breakdown of the financial
assets held by APRIL GROUP by their level of liquidity:
Book value at Dec 31 st , 2007
(in thousand euros)
Shares Bonds UCITS
Other
assets
Total
%
of total
Reminder
Dec 31 st , 06
Listed securities or UCITS
with daily valuation
176,307 110,601 286,909 92.6% 99.0%
UCITS with non-daily valuation 11,257 11,257 3.6% 0.3%
Unlisted securities 2,056 9,575 11,631 3.8% 0.8%
TOTAL 178,363 121,859 9,575 309,797 100.0% 100.0%
9.3.4. Analysis of sensitivity to financial risks
Analysis of equity and foreign exchange market risk
sensitivity
The following table presents the results of a simulation of
the impacts of changes in the foreign exchange and equity
markets across all APRIL GROUP portfolios.
For UCITS lines, the impact has been calculated on a
transparent basis, i.e. the indirect impact of the makeup
of UCITS assets held (in terms of target equity market and
currencies) has been reflected in the overall portfolio.
As an assumption, for all financial assets exposed to equity
and foreign exchange markets, a sensitivity rate of 1 has
been applied.
Analysis of interest rate risk sensitivity
The following table presents the results of a simulation of
the impacts of a change in the fixed-income markets on the
APRIL GROUP’s entire bond portfolio.
The figures for financial instruments exposed to a fair value
risk correspond to the impact that a change in rates would
have on the valuation of fixed-rate bond lines held in the
portfolio. It has been calculated directly based on the
sensitivity of the bond portfolio.
MARKET RISK SENSIVITY OF FINANCIAL ASSETS
(in thousand euros)
INTEREST RATE RISK SENSITIVITY OF FINANCIAL
ASSETS (in thousand euros)
BEFORE IMPACT OF HEDGING FINANCIAL INSTRUMENTS
Impact
on fair
value
Impact on
consolidated
income
Impact on
shareholders’
equity
Impact
on fair
value
Impact on
consolidated
income
Dec 31 st , 2007 Dec 31 st , 2006
Impact
on fair
value
+/- 1% change in risk-free return rate 4,982 -227 4,982 4,165 -222 4,165
Of which, financial instruments exposed to fair value risk 4,982 4,982 4,165 4,165
Of which, financial instruments exposed to cash-flow risk -227 -222
AFTER IMPACT OF HEDGING FINANCIAL INSTRUMENTS
Impact on shareholders’ equity
Dec 31 st , 2007 Dec 31 st , 2006
BEFORE IMPACT OF HEDGING FINANCIAL INSTRUMENTS 5,635 7,702
+/- 10% change in CAC index (1) 5,251 5,488
+/- 10% change in DJ index (1)
+/- 10% change in exchange rate for euro / other currencies 384 2,214
AFTER IMPACT OF HEDGING FINANCIAL INSTRUMENTS 5,635 7,702
+/- 10% change in CAC index (1) 5,251 5,488
+/- 10% change in DJ index (1)
+/- 10% change in exchange rate for euro/other currencies 384 2,214
(1) Impact of the change in the various markets
+/- 1% change in risk-free return rate 4,982 -227 4,982 4,165 -222 4,165
Of which, financial instruments exposed to fair value risk 4,982 4,982 4,165 4,165
Of which, financial instruments exposed to cash-flow risk -227 -222
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