Notes to the consolidated financial statements (IFRS)

28. DERIVATIVES
 
Notional amounts of derivatives
     
Includes the gross amount of all notional values for contracts that have not yet been settled or closed. The amount of notional value outstanding is not necessarily a measure or indication of market risk, as the exposure of certain contracts may be offset by other contracts.
     
EUR million 31 Dec 2014 31 Dec 2013
Foreign exchange forward contracts 160.1 180.6
Forward contracts outside hedge accounting 115.7 129.5
Forward contracts within hedge accounting 44.4 51.1
Electricity price futures contracts outside hedge accounting 0.8 1.7
 
     
Fair values of derivatives
 
The net fair values of derivative financial instruments at the balance sheet date 31 Dec 2014 31 Dec 2013
Foreign exchange forward contracts -0.4 -3.3
Electricity price futures contracts -0.1 -0.3
 
Derivatives are used for economic purposes only.
     
 
Gross positive fair values of derivatives
31 Dec 2014

31 Dec 2013
Foreign exchange forward contracts 1.4 0.6
Forward contracts outside hedge accounting 1.4 0.4
Forward contracts within hedge accounting 1) - 0.2
Electricity price futures contracts outside hedge accounting - -
     
Gross negative fair values of derivatives
31 Dec 2014

31 Dec 2013
Foreign exchange forward contracts -1.8 -3.9
Forward contracts outside hedge accounting -1.4 -1.6
Forward contracts within hedge accounting 1) -0.4 -2.3
Electricity price futures contracts outside hedge accounting -0.1 -0.3
     
1) Forward contracts within hedge accounting (net) -0.4 -2.1
The amount recognized in equity -0.4 -2.1
Net periodic interest rate difference recognized in interest income/expenses - -
     
The hedged highly probable forecast transactions denominated in foreign currency are expected to occur at various dates during the next 12 months. Gains and losses, recognized in the hedging reserve in equity (see Cash flow hedges below) on foreign exchange forward contracts as at 31 December 2014 amounted to net EUR -0.4 million (EUR -2.1 million in 2013). These are recognized in the income statement in the current period or periods during which the hedged forecast transactions affect the income statement. This is usually within 12 months from the end of the reporting period. The hedged cash flows are expected to expire monthly in 2015.
 
The efficient portion of cash flow hedges recognized in net sales at 31 December 2014 amounted to a gain of EUR 0.5 million (EUR 0.7 million in 2013) and a loss of EUR 2.5 million (EUR 1.6 million in 2013), including the interest rate difference.
 
The inefficient portion recognized in other operating income that arises from cash flow hedges amounts to a gain of EUR 0.0 million at 31 December 2014 (EUR 0.3 million in 2013) (Note 3). The inefficient portion recognized in other operating expenses that arises from cash flow hedges amounts to a loss of EUR 0.3 million at 31 December 2014 (EUR 0.2 million in 2013) (Note 4).
 
Cash flow hedges
 
EUR million   Hedging reserve
Balance at 1 Jan 2013   0.2
Fair value gains in year   1.6
Fair value losses in year   -4.0
Tax on fair value gains   0.5
Tax on fair value losses   -
Balance at 31 Dec 2013   -1.7
     
Balance at 1 Jan 2014   -1.7
Fair value gains in year   2.0
Fair value losses in year   -0.3
Tax on fair value gains   -
Tax on fair value losses   -0.3
Balance at 31 Dec 2014   -0.3