SCH2017_DRF_EN_Livre.indb

5

Consolidated financial statements at December 31, 2017 Notes to the consolidated financial statements

Nominal amount

Dec. 31, 2017

Carrying amount

Sale

Purchase

Cash flow hedges

(20)

149

872

Net investment hedges

12 41 33

1,105 5,213 6,467

-

Trading TOTAL

3,704 4,576

Nominal amount Sale

Dec. 31, 2016

Carrying amount

Purchase

Cash flow hedges

(74)

411

867

Net investment hedges

12

1,257 4,780 6,348

-

Trading TOTAL

(86) 148

3,209 4,076

We manage our exposure to currency risk to reduce the sensitivity of earnings to changes in exchange rates through hedging programs relating to receivables, payables and cash flows, which are primarily hedged by means of forward purchases and sales. Depending on market conditions, risks in the main currencies may be hedged based

on cash flow forecasting using contracts that expire in 12 months or less. Schneider Electric’s currency hedging policy is to protect its subsidiaries against risks on all transactions denominated in a currency other than their functional currency.

Positions of futures hedges of balance sheet items and net investment by currency:

Dec. 31, 2017

Sales

Purchases

Net

USD GBP SGD BRL CNY HKD AED HUF IDR SEK CAD NOK DKK AUD RUB CHF SAR ZAR

4,279

(1,281)

2,998 (251)

381 364

(632) (161) (206) (656)

203

5

(201) (456)

200 187

(41)

146

62 38 32 78

(2)

60

(98) (61)

(60) (29)

(190) (143)

(112)

140

(3) 74

78 15

(4)

(170) (620)

(155) (455)

165

82 23 28 53

-

82

(130)

(107)

(1) (3)

27 50 80

Others TOTAL

257

(177)

6,467

(4,576)

1,891

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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