The Groupe is exposed to interest rate risk, foreign exchange risk, liquidity risk and client and bank counterparty risk.
Groupe management determines the allocation of debt between fixed- and variable-rate debt, which is periodically reviewed in terms of interest rate trend forecasts.
At the end of 2024, the Groupe’s gross borrowings, excluding earn-out commitments and commitments to buy out non-controlling interests, are fixed-rate bonds.
The table below shows the Groupe’s net assets as of December 31, 2024 broken down by principal currencies:
| (in millions of euros) | Total at December 31, 2024 | Euro (1) | US dollar | Pound sterling | Brazilian | Yuan | Other |
|---|---|---|---|---|---|---|---|
| Assets | Assets Total at December 31, 202439,854 |
Assets Euro (1)4,544 |
Assets US dollar 23,136 |
Assets Pound sterling 2,523 |
Assets Brazilian 263 |
Assets Yuan 1,879 |
Assets Other 7,509 |
| Liabilities | Liabilities Total at December 31, 202428,818 |
Liabilities Euro (1)6,004 |
Liabilities US dollar 15,854 |
Liabilities Pound sterling 1,471 |
Liabilities Brazilian 138 |
Liabilities Yuan 1,362 |
Liabilities Other 3,989 |
| Net assets | Net assetsTotal at December 31, 202411,036 | Net assetsEuro (1)(1,460) | Net assets US dollar 7,282 |
Net assets Pound sterling 1,052 |
Net assets Brazilian 125 |
Net assets Yuan 517 |
Net assets Other 3,520 |
| Effect of foreign exchange hedges(2) | Effect of foreign exchange hedges (2)Total at December 31, 2024- |
Effect of foreign exchange hedges (2)Euro (1)2,243 |
Effect of foreign exchange hedges (2)US dollar (2,243) |
Effect of foreign exchange hedges (2)Pound sterling - |
Effect of foreign exchange hedges (2)Brazilian - |
Effect of foreign exchange hedges (2)Yuan - |
Effect of foreign exchange hedges (2)Other - |
| Net assets after hedging | Net assets after hedging Total at December 31, 202411,036 |
Net assets after hedging Euro (1)783 |
Net assets after hedging US dollar 5,039 |
Net assets after hedging Pound sterling 1,052 |
Net assets after hedging Brazilian 125 |
Net assets after hedging Yuan 517 |
Net assets after hedging Other 3,520 |
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:
| 2024 | 2023 | |
|---|---|---|
| Euro | Euro 2024 13% |
Euro 2023 11% |
| US dollar | US dollar 2024 57% |
US dollar 2023 60% |
| Pound sterling | Pound sterling 2024 9% |
Pound sterling 2023 9% |
| Other | Other 2024 21% |
Other 2023 20% |
| Total revenue | Total revenue 2024 100% |
Total revenue 2023 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.
