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Swisscom carries out sensitivity analyses in the areas of currency risks and interest rate risks. We anticipate reliable expectation values in the other risk areas.

  

Currency risksThe following sensitivity analysis shows the effects on the income statement if the EUR/CHF and USD/CHF exchange rates change in accordance with their implicit volatility over the next 12 months. This analysis requires all other variables, in particular interest levels, to remain constant.
 

 

In CHF millions

31.12.2011

   31.12.2010

 

Effects on balance sheet items affecting net income

   
EUR volatility 9.86% (previous year 11.99%)

123

100

USD volatility 12.85% (previous year 17.95%)

8

6

 

Hedging transactions for balance sheet items

   
EUR volatility 9.86% (previous year 11.99%)

(75)

(94)

USD volatility 15.56% (previous year 12.68%)

(6)

(5)

 

Projected cash flows

   
EUR volatility 9.86% (previous year 11.99%)

 64

 82

USD volatility 15.56% (previous year 12.68%)

 54

 43

 

Hedging transactions for projected cash flows

   
EUR volatility 9.86% (previous year 11.99%)

 (32)

 (41)

USD volatility 15.56% (previous year 12.68%)

 (25)

 (20)

 

The volatility of the balance sheet items and the projected cash flows is offset in part by the volatility of the corresponding hedging transactions.

 

 

Interest rate risks

The following sensitivity analysis shows the effects on the income statement and equity of a change of 100 basis points in CHF interest rates.

 

 

 Income statement

 Equity

 

Increase of

100 basis points

 Decrease of

 100 basis points

 Increase of

 100 basis points

Decrease of

100 basis points

In CHF millions

 

 

 

 

 

31st December 2011

 

 

 

 

Variable financing

 (22)

22

 -

 -

Interest rate swaps

 3

 (3)

 16

 (8)

Cash flow sensitivity, net

 (19)

 19

 16

 (8)

 

31st December 2010

       
Variable financing

 (26)

 26

 -

 -

Interest rate swaps

 1

 (1)

 7

 (8)

Cash flow sensitivity, net

 (25)

 25

 7

 (8)