Sensitivity analysis

The following table shows how a 10% change in the Group companies' functional currencies would affect the Group's equity.

Sensitivity analysis, impact on equity as at 31 Dec. 2020

€ million

NOK

SEK

PLN

Change +10%

-27.3

-22.0

-4.0

Change -10%

33.9

26.9

4.9

A sensitivity analysis of the transaction exposure shows the impact on profit or loss of a +/-10% exchange rate change in intra-Group receivables and liabilities denominated in foreign currencies and foreign currency derivatives and borrowings used for hedging.

Sensitivity analysis, impact on pre-tax profit as at 31 Dec. 2020

€ million

USD

SEK

NOK

PLN

Change +10%

-2.4

-1.5

-1.7

-0.7

Change -10%

2.9

1.8

2.0

0.8

Sensitivity analysis for the Group's variable rate borrowings, effect of change in interest rate level on pre-tax profit at 31 Dec. 2020:

At the balance sheet date of 31 December 2020, the effect of variable rate borrowings on the pre-tax profit would have been
€-/+0.3 million (€-/+1.1 million), if the interest rate level had risen or fallen by 1 percentage point.

Sensitivity analysis for the Group's electricity derivatives at 31 Dec. 2020, effect of a change in market price of electricity derivatives on pre-tax profit and equity: 

The sensitivity analysis of electricity derivatives assumes that derivatives maturing in less than 12 months have an impact on profit. If the market price of electricity derivatives changed by -/+20% from the balance sheet date 31 December 2020, it would contribute €-/+0.7 million (€-/+1.1 million) to the 2021 income statement and €-/+3.5 million (€-/+2.2 million) to equity. The impact has been calculated before taxes.

 

Additional information on sensitivity analyses in 2020 Financial Review starting on page 101.

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