The table below presents the impact on equity of a variation in exchange rates on the Group’s gross debt at 31 December 2019:
| 31 December 2019 (in millions euros) | Debt after hedging instruments converted into Euros | Impact of a 10% unfavourable variation in exchange rates | Debt after a 10% unfavourable variation in exchange rates |
|---|---|---|---|
| Borrowings in EUR | Borrowings in EUR Debt after hedging instruments converted into Euros51,851 | Borrowings in EUR Impact of a 10% unfavourable variation in exchange rates- | Borrowings in EUR Debt after a 10% unfavourable variation in exchange rates51,851 |
| Borrowings in USD | Borrowings in USD Debt after hedging instruments converted into Euros6,053 | Borrowings in USD Impact of a 10% unfavourable variation in exchange rates605 | Borrowings in USD Debt after a 10% unfavourable variation in exchange rates6,658 |
| Borrowings in GBP | Borrowings in GBP Debt after hedging instruments converted into Euros8,564 | Borrowings in GBP Impact of a 10% unfavourable variation in exchange rates856 | Borrowings in GBP Debt after a 10% unfavourable variation in exchange rates9,420 |
| Borrowings in other currencies | Borrowings in other currencies Debt after hedging instruments converted into Euros912 | Borrowings in other currencies Impact of a 10% unfavourable variation in exchange rates91 | Borrowings in other currencies Debt after a 10% unfavourable variation in exchange rates1,003 |
| TOTAL DEBT | TOTAL DEBTDebt after hedging instruments converted into Euros67,380 | TOTAL DEBTImpact of a 10% unfavourable variation in exchange rates1,552 | TOTAL DEBTDebt after a 10% unfavourable variation in exchange rates68,932 |
Due to the Group’s hedging policy for foreign exchange risk on the Group’s gross debt, the income statement for companies controlled by the Group is marginally exposed to foreign exchange rate risk.
The table below sets forth the foreign exchange position relating to net assets in foreign currencies of the Group’s subsidiaries.
| 31 December 2019 | Net assets | Bonds | Derivatives | Net assets after management |
|---|---|---|---|---|
| USD | USD Net assets5,613 | USD Bonds2,850 | USD Derivatives1,974 | USD Net assets after management789 |
| CHF (Switzerland) | CHF (Switzerland) Net assets29 | CHF (Switzerland) Bonds- | CHF (Switzerland) Derivatives28 | CHF (Switzerland) Net assets after management1 |
| GBP (United Kingdom) | GBP (United Kingdom) Net assets17,717 | GBP (United Kingdom) Bonds5,435 | GBP (United Kingdom) Derivatives504 | GBP (United Kingdom) Net assets after management11,778 |
| PLN (Poland) | PLN (Poland) Net assets294 | PLN (Poland) Bonds- | PLN (Poland) Derivatives153 | PLN (Poland) Net assets after management141 |
| BRL (Brazil) | BRL (Brazil) Net assets1,202 | BRL (Brazil) Bonds- | BRL (Brazil) Derivatives- | BRL (Brazil) Net assets after management1,202 |
| CNY (China) | CNY (China) Net assets11,148 | CNY (China) Bonds- | CNY (China) Derivatives- | CNY (China) Net assets after management11,148 |
* Net assets as stated at 31 December 2019; bonds and derivatives as stated at 31 December 2019. The net positions shown exclude certain non-significant exposures.
The above table shows the assets of the Group’s foreign subsidiaries in foreign currencies, adjusted for changes in the fair value of cash flow hedges and of debt and equity instruments recorded in equity, and changes in the fair value of financial instruments recorded in income.
The following table sets forth the risk for equity of foreign exchange losses on net assets in foreign currencies of the Group’s principal subsidiaries at 31 December 2019, assuming unfavourable, uniform exchange rate variations of 10% against the euro. Net assets are converted at the closing rate and impacts are reported in absolute value.
| At 31 December 2019 | At 31 December 2018 | |||||
|---|---|---|---|---|---|---|
| (in millions of currency units) | Net assets after management into currency | Net assets after management converted into euros | Impact on equity of a 10% variation in exchange rates | Net assets after management into currency | Net assets after management converted into euros | Impact on equity of a 10% variation in exchange rates |
| USD | USD At 31 December 2019789 | USD At 31 December 2018702 | 70 | 2,107 | 1,840 | 184 |
| CHF (Switzerland) | CHF (Switzerland) At 31 December 20191 | CHF (Switzerland) At 31 December 20181 | - | 202 | 179 | 18 |
| GBP (United Kingdom) | GBP (United Kingdom) At 31 December 201911,778 | GBP (United Kingdom) At 31 December 201813,843 | 1,384 | 11,085 | 12,392 | 1,239 |
| CLP (Chile) | CLP (Chile) At 31 December 2019- | CLP (Chile) At 31 December 2018- | - | (6,663) | (8) | (1) |
| PLN (Poland) | PLN (Poland) At 31 December 2019141 | PLN (Poland) At 31 December 201833 | 3 | 154 | 36 | 4 |
| BRL (Brazil) | BRL (Brazil) At 31 December 20191,202 | BRL (Brazil) At 31 December 2018266 | 27 | 1,164 | 262 | 26 |
| CNY (China) | CNY (China) At 31 December 201911,148 | CNY (China) At 31 December 20181,425 | 143 | 9,932 | 1,261 | 126 |
The foreign exchange risk on available-for-sale securities is mostly concentrated in EDF’s dedicated asset portfolio, which is discussed in section 5.1.6.1.6 “Management of financial risk on EDF SA’s dedicated asset portfolio”.
The foreign exchange risk associated with short-term investments and operating liabilities in foreign currencies remains restricted for the Group at 31 December 2019.
