Annual report - HSE

Type of financial instrument as at 31/12/2011 EUR HUF Other currencies TOTAL
Short-term operating receivables 150,207,417 0 78,498 150,285,915
Short-term financial receivables and loans 109,317,324 0 0 109,317,324
Long-term operating receivables 676,417 0 193,896 870,313
Short-term operating liabilities -143,891,732 -2,135,327 -55,473 -146,082,532
Short-term financial liabilities -80,108,197 0 0 -80,108,197
Long-term financial liabilities -100,009,595 0 0 -100,009,595
Net exposure of the statement -63,808,366 -2,135,327 216,921 -65,726,772
of financial position
Type of financial instrument as at 31/12/2012 EUR HUF* Other currencies TOTAL
Short-term operating receivables 215,552,162 0 0 215,552,162
Short-term financial receivables and loans 303,599,771 0 0 303,599,771
Long-term operating receivables 477,553 0 198,799 676,352
Short-term operating liabilities -210,965,492 -441 -31,419 -210,997,352
Short-term financial liabilities -233,694,331 0 0 -233,694,331
Long-term financial liabilities -89,558,481 0 0 -89,558,481
Net exposure of the statement -14,588,818 -441 167,380 -14,421,879
of financial position
in €
in €
* No HUF-denominated items were open at the end of the year
in €
Contracts concluded for currency swaps by maturity 2012 2011
Up to 12 months 4,900,045 3,961,257
4.5.8.8.4 Interest rate risk
The company is exposed to interest rate risk in financial liabilities since it has contracts
concluded at variable interest rate tied to Euribor, which changes on daily basis. In 2012,
Euribor interest rates decreased further and reached the lowest values in history. The
interest rate risk is adequately managed within the HSE Group, as we have adopted a risk
management strategy already in 2011, with the approval of the HSE’s Risk Management
Committee, which defined the share or level up to which the company must protect
against risks and the instruments used for hedging. For this purpose, the company has
a transaction of interest rate hedging with derivative interest swap (IRS). The concluded
transaction of interest rate swap is highly efficient since the interest rate hedging in all its
characteristics fully complies with the hedged item. The interest risk management is aimed
at protecting cash flow against negative impacts of Euribor growth on account of financing
loans received and the sole risk dispersion. The hedged ratio was formally determined and
documented at the beginning of hedging. The interest rate hedging strategy was set, as
well as the hedged item, hedging instrument, risk type and the manner of testing hedging
efficiency. Since the hedging was successful, the changes in fair value are recognised
directly in equity. Interest rate hedging transaction was concluded on the basis of standard
contract ISDA with the first-class commercial bank and the possibility of transaction nonrealisation
is estimated as minimum.
Contracts concluded for interest rate swaps by maturity 2012 2011
From 1 to 5 years 48,484,848 50,000,000
in €
Annual Report HSE 2012
4 Financial Report of the company HSE
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