Sensitivity analysis

Sensitivity analysis

Ahlstrom is affected by the general economic climate, fluctuations in currencies, raw material and energy prices as well as other company-specific factors.

Foreign exchange risk sensity analysis

The following table shows how much the income statement and equity would be affected by a 10% strengthening of the foreign currency against the reporting currency euro. In case of a 10% weakening of the foreign currency against the euro the effect would be the opposite.

Transaction exposure

   
31.12.2016

31.12.2016
EUR million Open
position
Effect on
income
statement
Effect on
equity
SEK -0.2 0.0 -
USD 13.1 1.5  -
GBP 0.1 0.1 -
Net effect   1.4 -

 

Translation exposure

The following table shows how much the equity would be affected by a 10% strengthening of the foreign currency against the reporting currency euro. In case of a 10% weaking of the foreign currency against the euro the effect would be the opposite.

  31.12.2016
EUR million Open
position
Effect on
equity
USD 90.0 10.0
CNY 63.1 7.0
KRW 24.1 2.7
SEK 29.3 3.3
INR 27.7 3.1
GBP 16.8 1.9
BRL 28.3 3.1
RUB 18.7 2.1
Net effect   33.1

 

Interest rate risk

Interest rate risk is measured with modified duration, which defines the Group's loan portfolio's interest rate sensitivity in response to a change in interest rates. According to the Group Treasury Policy the Group's benchmark duration is 12 months and the duration may deviate between 3 and 48 months.

As of December 31, 2016, a one percentage point parallel shift in the yield curve would have a net effect of EUR -0.8 million (EUR -1.2 million) on the income statement. 

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