The table below shows the Groupe’s net assets at December 31, 2020 broken down by principal currencies:
(in millions of euros) | Total at December 31, 2020 | Euro(1) | US dollar | Pound sterling | Brazilian real | Yuan | Other |
|---|---|---|---|---|---|---|---|
Assets | Assets Total at December 31, 2020 30,161 | Assets Euro(1) 2,992 | Assets US dollar 17,692 | Assets Pound sterling 1,746 | Assets Brazilian real 279 | Assets Yuan 1,370 | Assets Other 6,082 |
Liabilities | Liabilities Total at December 31, 2020 23,001 | Liabilities Euro(1) 2,436 | Liabilities US dollar 15,358 | Liabilities Pound sterling 1,153 | Liabilities Brazilian real 138 | Liabilities Yuan 966 | Liabilities Other 2,950 |
Net assets | Net assets Total at December 31, 2020 7,160 | Net assets Euro(1) 556 | Net assets US dollar 2,334 | Net assets Pound sterling 593 | Net assets Brazilian real 141 | Net assets Yuan 404 | Net assets Other 3,132 |
Effect of foreign exchange hedges(2) | Effect of foreign exchange hedges(2) Total at December 31, 2020 - | Effect of foreign exchange hedges(2) Euro(1) 605 | Effect of foreign exchange hedges(2) US dollar (572) | Effect of foreign exchange hedges(2) Pound sterling 70 | Effect of foreign exchange hedges(2) Brazilian real - | Effect of foreign exchange hedges(2) Yuan 2 | Effect of foreign exchange hedges(2) Other (105) |
Net assets after hedging | Net assets after hedging Total at December 31, 2020 7,160 | Net assets after hedging Euro(1) 1,161 | Net assets after hedging US dollar 1,762 | Net assets after hedging Pound sterling 663 | Net assets after hedging Brazilian real 141 | Net assets after hedging Yuan 406 | Net assets after hedging Other 3,027 |
(1) Reporting currency of consolidated financial statements.
(2) The financial instruments used to hedge foreign exchange risk are mainly currency swaps.
In addition, changes in exchange rates against the euro, the reporting currency used in the Groupe’s financial statements, can have an impact on the Groupe’s consolidated balance sheet and consolidated income statement.
The breakdown of Groupe revenue by the currency in which it is earned is as follows:
2020 | 2019 | |
|---|---|---|
| Euro | Euro 2020 13% | Euro 2019 15% |
US dollar | US dollar 2020 58% | US dollar 2019 52% |
Pound sterling | Pound sterling 2020 8% | Pound sterling 2019 9% |
Other | Other 2020 21% | Other 2019 23% |
Total revenue | Total revenue 2020 100% | Total revenue 2019 100% |
The impact of a decrease of 1% of the euro rate against the US dollar and the Pound sterling would be (favorable impact):
Commercial transactions are mainly carried out in the local currencies of the countries in which they occur. Consequently, the resulting exchange rate risks are not significant and are occasionally hedged.
In the case of intercompany lending/borrowing operations, they are subject to appropriate hedging if they present a significant net exposure to foreign exchange risk.
The derivative financial instruments used are generally forward foreign exchange contracts or currency swaps.
The Groupe analyzes its trade receivables, focusing in particular on improving its collection times, as part of the management of its working capital. The Groupe Treasury Department monitors overdue receivables for the entire Groupe. In addition, the Groupe periodically reviews the list of main clients in order to determine the exposure to client counterparty risk at Groupe level and, if necessary, sets up specific monitoring in the form of a weekly statement summarizing the exposure to certain clients.
Any impairment losses are assessed on an individual basis and take into account various criteria such as the client’s situation and late payments. No impairment was recorded on an overall basis.
