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

   
31.12.2015

31.12.2015
EUR million Open
position
Effect on
income
statement
Effect on
equity
SEK 18.3 0.0 2.0
USD 13.6 1.5  -
GBP 0.8 0.1 -
Net effect   1.6 2.0

 

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.

  31.12.2015
EUR million Open
position
Effect on
equity
USD 76.3 8.5
CNY 50.1 5.6
KRW 35.3 3.9
SEK 28.4 3.2
INR 28.0 3.1
GBP 25.1 2.8
BRL 21.2 2.4
RUB 11.3 1.3
Net effect   30.6

 

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, 2015, a one percentage point parallel shift in the yield curve would have a net effect of EUR -1.2 million (EUR -1.0 million) on the income statement. 

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