The table below shows the Groupe’s net assets at December 31, 2021 broken down by principal currencies:
|
(in millions of euros) |
Total at December 31, 2021 | Euros(1) | US dollar | Pound sterling | Brazilian real | Yuan | Others |
|---|---|---|---|---|---|---|---|
| Assets | Assets Total at December 31, 202132,846 |
Assets Euros(1)3,744 |
Assets US dollar 18,505 |
Assets Pound sterling 1,962 |
Assets Brazilian real 258 |
Assets Yuan 2,000 |
Assets Others 6,377 |
| Liabilities | Liabilities Total at December 31, 202124,291 |
Liabilities Euros(1)3,690 |
Liabilities US dollar 14,074 |
Liabilities Pound sterling 1,269 |
Liabilities Brazilian real 177 |
Liabilities Yuan 1,468 |
Liabilities Others 3,613 |
| Net assets | Net assetsTotal at December 31, 20218,555 | Net assetsEuros(1)54 | Net assets US dollar 4,431 |
Net assets Pound sterling 693 |
Net assets Brazilian real 81 |
Net assets Yuan 532 |
Net assets Others 2,764 |
| Effect of foreign exchange hedges(2) | Effect of foreign exchange hedges (2)Total at December 31, 2021- |
Effect of foreign exchange hedges (2)Euros(1)1,581 |
Effect of foreign exchange hedges (2)US dollar (1,399) |
Effect of foreign exchange hedges (2)Pound sterling 68 |
Effect of foreign exchange hedges (2)Brazilian real - |
Effect of foreign exchange hedges (2)Yuan 1 |
Effect of foreign exchange hedges (2)Others (251) |
| Net assets after hedging | Net assets after hedgingTotal at December 31, 20218,555 | Net assets after hedgingEuros(1)1,635 | Net assets after hedging US dollar 3,032 |
Net assets after hedging Pound sterling 761 |
Net assets after hedging Brazilian real 81 |
Net assets after hedging Yuan 533 |
Net assets after hedging Others 2,513 |
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:
| 2021 | 2020 | |
|---|---|---|
| Euro | Euro2021 13% |
Euro 2020 13% |
| US dollar | US dollar 2021 57% |
US dollar 2020 58% |
| Pound sterling | Pound sterling 20218% |
Pound sterling 2020 8% |
| Others | Others 202122% |
Others 2020 21% |
| Total revenue | Total revenue2021100% | Total revenue 2020 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 derivatives 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.
