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consolidated financial statements notes pfleiderer ag 103
Financial derivatives valued in accordance with SFAS No. 133 at balance sheet date:
Nominal Valuation Nominal Valuation
value value
Dec. 31, 2002 Dec. 31, 2002 Dec. 31, 2001 Dec. 31, 2001
‘000 euros ‘000 euros ‘000 euros ‘000 euros
Not recorded directly in
profits/losses 219,178 – 12,912 341,204 – 3,783
Recorded in profits/losses 59,730 – 2,029 29,943 – 857
Total 278,908 – 14,941 371,147 – 4,640
The value of derivatives affecting profit or loss derives from termination charges for financial
instruments as part of the disposal of discontinued operations.
The remaining term of interest rate derivatives essentially corresponds to the currency
period of the underlying financial transaction, and lies between 1 and 7 years. The average
currency period is 5 years. The remaining term of forward currency exchange hedges lies
between 1 to 12 months.
Market value, Market value, Total
due due Dec. 31, 002
within 1 year in over 1 year
‘000 euros ‘000 euros ‘000 euros
Interest rate derivatives 5,177 260,892 266,069
Forward currency hedges 12,839 – 12,839
Total 18,016 260,892 278,908
Exposure from derivative instruments is limited to the risk that the contracting banks are
unable to fulfill their obligations. The maximum potential loss for the Group cannot exceed the
positive market value of the derivatives. The maximum risk borne by the Company during forward
currency hedging is the change in the amount secured due to exchange rate fluctuations.