Page 99 - Annual Report KELAG Group 2018
P. 99

The structure of financial liabilities means that the interest rate risk is currently low. The share of
                                      variable-rate debt amounts to 6.63% of total borrowed capital (prior year: 6.54%). Most of the
                                      financing portfolio  has  a  fixed  interest rate  and  as  a  result is  not  subject to  any  fluctuations
                                      affecting cash. The variable interest rate share is continuously monitored and for risk reasons is
                                      limited to 40% at group level. An interest rate increase of 1% for variable-rate financial liabilities
                                      as of the reporting date would reduce financial income by EUR 0.3m (prior year: EUR 0.3m) per
                                      year. An interest rate decrease of 1% for variable-rate financial liabilities as of the reporting date
                                      would increase financial income by EUR 0.3m (prior year: EUR 0.3m) per year. The KELAG Group is
                                      financed  with  an  average  effective  interest  rate  of  2.78%  (prior  year:  2.76%). The  equivalent
                                      nominal interest rate is 2.70% (prior year: 2.72%). A change of +1% affects the market value of the
                                      interest hedging instrument by EUR 0.2m (prior year: EUR 0.3m) and a change of -1% would affect
                                      the market value by EUR -0.2m (prior year: EUR -0.3m).





                                      The Group Finance Framework Directive stipulates that only transactions in euros are approved
                                      for the fully consolidated group entities with their registered offices in Austria. KELAG’s scope of
                                      consolidation at year-end includes no financial liabilities in foreign currency and for this reason
                                      the foreign currency risk is of little importance. Because of the limited assets in foreign currencies
                                      (3.79% of total assets in 2018 and 3.87% of total assets in 2017), the currency translation risk for
                                      goodwill and assets is also negligible.






                                      The market price level is a factor influencing the electricity price. Risks are minimised based on a
                                      long-term sales strategy.
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