Management of currency risks
In general, the effects of currency fluctuations are warded off as far as possible with an efficient natural hedging strategy. This entails making sure that costs in the various currency areas are incurred in the same proportion in which sales are generated. This hedging is almost entirely successful, particularly as regards the euro and US dollar. There are, however, minor deviations arising from the Swiss franc, British pound and the Nordic and Eastern European currencies. As a consequence of the natural hedging strategy, currency fluctuations only have a minor impact on the margins. Gains and losses result mainly from the translation of local results into Swiss francs (translation effects).
In terms of a sensitivity analysis, the following changes can be assumed if the Swiss franc should be 10% weaker or stronger than all other currencies:
|-||Net sales:||+/-8% to +/-10%|
|-||EBITDA:||+/-9% to +/-11%|
|-||EBITDA margin:||approximately +/-0.5 percentage points|
For more information on the management of currency risks, see also the Financial Statements of the
Geberit Group, Notes to the Consolidated Financial Statements, 4.
Risk Assessment and Management, Management of Currency Risks
Financial Statements of the Geberit Group, Notes to the Consolidated Financial Statements, 15. Derivative Financial Instruments.