Detail of exchange rate derivatives related to net financial debt
Transactions in exchange rate derivatives carried out by the Group, intended in particular to hedge its financial transactions, break down as follows:
| non-inclus | 31/12/2023 | |||||
|---|---|---|---|---|---|---|
| (in € millions) | Balance sheet fair value | Notional | Within 1 year | Between 1 and 2 years | Between 2 and 5 years | After 5 years |
| Forward foreign exchange transactions | 5 | 23 | 23 | - | - | - |
| Cash flow hedges(*) | 5 | 23 | 23 | - | - | - |
| Currency swaps (incl. cross currency swaps) | (15) | 1,272 | 142 | 124 | 773 | 233 |
| Hedges of net foreign investments (*) | (14) | 1,368 | 238 | 124 | 773 | 233 |
| Currency swaps (incl. cross currency swaps) | (12) | 481 | 76 | 93 | 309 | 3 |
| Forward foreign exchange transactions | (1) | 374 | 374 | - | - | - |
| Exchange rate derivatives not designated as hedges for accounting purposes | (13) | 855 | 450 | 93 | 309 | 3 |
| Total exchange rate derivatives | (21) | 2,246 | 711 | 217 | 1,082 | 236 |
(*) Changes in the fair value of the hedging instrument are recognised under “Other comprehensive income” (OCI) for the effective portion and in the income statement for the period for the ineffective portion.
| non-inclus | 31/12/2022 | |||||
|---|---|---|---|---|---|---|
| (in € millions) | Balance sheet fair value | Notional | Within 1 year | Between 1 and 2 years | Between 2 and 5 years | After 5 years |
| Forward foreign exchange transactions | 4 | 122 | 104 | 17 | - | - |
| Cash flow hedges(*) | 4 | 122 | 104 | 17 | - | - |
| Currency swaps (incl. cross currency swaps) | (4) | 2,731 | 247 | 467 | 996 | 1,020 |
| Hedges of net foreign investments(*) | (4) | 2,743 | 259 | 467 | 996 | 1,020 |
| Currency swaps (incl. cross currency swaps) | (32) | 670 | 171 | 48 | 450 | - |
| Forward foreign exchange transactions | 1 | 405 | 405 | - | - | - |
| Exchange rate derivatives not designated as hedges for accounting purposes | (31) | 1,075 | 576 | 48 | 450 | - |
| Total exchange rate derivatives | (31) | 3,939 | 939 | 533 | 1,446 | 1,020 |
(*) Changes in the fair value of the hedging instrument are recognised under “Other comprehensive income” (OCI) for the effective portion and in the income statement for the period for the ineffective portion.
Detail of hedges qualifying for hedge accounting as part of a net foreign investment hedging relationship
The Group’s principal hedges of net foreign investments were as follows at 31 December 2023:
| (in € millions) | 31/12/2023 | ||||
|---|---|---|---|---|---|
| Currency | GBP (pound sterling) | USD (US dollar) | MXN (Mexican peso) | SGD Singapore dollar) | CAD (Canadian dollar) |
| Notional amount of derivatives designated as NIH | 552 | 482 | - | 106 | 82 |
| Nominal amount of debt designated as NIH | 921 | 651 | 467 | - | - |
NIH: Net investment hedge.
The Group hedges the net assets of its main subsidiaries in foreign currencies, particularly subsidiaries whose functional currency is the US dollar (USD), pound sterling (GBP), Mexican peso (MXN), Singapore dollar (SGD), Canadian dollar (CAD), yen (JPY) or a Scandinavian currency.
At 31 December 2023, the main net investment hedging positions concerned the following assets:
Analysis of operational exchange rate risk
The principal foreign exchange exposures were as follows at 31 December 2023:
| (in € millions) | 31/12/2023 | |||
|---|---|---|---|---|
| Currency | CAD (Canadian dollar) | GBP (pound sterling) | USD (US dollar) | COP (Colombian peso) |
| Closing rate (€/foreign currency) | 1.464 | 0.869 | 1.105 | 4,270 |
| Exposure | 371 | 158 | 163 | (44) |
| Hedging | (125) | (22) | (60) | 20 |
| Net position | 246 | 136 | 103 | (24) |
