QUADIENT - 2019 Universal Registration Document

6

FINANCIAL STATEMENTS Consolidated financial statements

Quadient uses symmetric options tunnels in particular. These option instruments are unlikely to be exercised in a reciprocal manner in terms of the spot exchange rate or expiry date. As a result, for each tunnel only one of the two options is reported in the table above. The value of the commitment in these symmetric options is 11.5 million United States dollars sold, 0.8 million Canadian dollars sold, 215.0 million Japanese yen sold, 2.0 million Swedish krona sold and 100.0 million Czech krona purchased. Quadient also makes use of asymmetric option tunnels. No asymmetric option tunnels is active as at 31 January 2020.

by the treasury department in its hedging strategies are as follows: firm derivatives such as forward currency purchases ● and sales; plain vanilla options such as puts and calls; ● second generation options (knock-in or knock-out ● barrier options). Instrument details The instruments in the portfolio have a maturity of less than twelve months as at 31 January 2020. These instruments are listed below by type and by currency for the period to which they relate.

Hedging instruments

The Quadient group hedges its exchange rate risk using over-the-counter derivative instruments contracted with external counterparties. The derivative instruments used

2019 FINANCIAL YEAR: ASSETS AND LIABILITIES HEDGING ❚

Forward purchases

Forward sales

Put options bought

Put options sold

Call options bought

Call options sold

Notional value – Cash flow hedging

USD

15.2

41.4

-

-

-

-

GBP

-

0.2

-

-

-

-

CAD

0.4

0.3

0.3

-

-

0.3

NOK

-

0.8

-

-

-

-

JPY

-

195.9

-

-

-

-

SEK

2.8

2.8

-

-

-

-

DKK

3.3

1.1

-

-

-

-

CZK

30.0

30.0

-

-

-

-

SGD

-

0.9

-

-

-

-

AUD

-

2.1

-

-

-

-

PLN

1.2

-

-

-

-

-

2020 BUDGET: HEDGING OF ANTICIPATED POSITIONS ❚

Forward purchases

Forward sales

Put options bought

Put options sold

Call options bought

Call options sold

Notional value – Total

USD

-

-

11.5

-

-

19.5

CAD

-

0.8

0.8

-

-

1.4

NOK

-

6.5

-

-

-

-

JPY

-

215.0

215.0

-

-

315.0

SEK

-

12.0

2.0

-

-

4.0

CHF

-

5.8

-

-

-

-

DKK

-

11.0

-

-

-

-

CZK

178.8

-

-

200.0

100.0

-

AUD

-

6.0

-

-

-

-

178

UNIVERSAL REGISTRATION DOCUMENT 2019