(12.) Disclosures on financial instruments

(12.1) Derivative financial instruments

The following table shows the fair values of derivative financial instruments as at 31 December 2016 and the changes as against the previous year:


Derivative financial instruments

  Fair value Nominal amount
  Maturity from 31 Dec. 2016        
EUR thousand

Less than
1 year

Between
1 and 5 years
 
Previous
year

Total
change

31 Dec. 2016


31 Dec. 2015


Forward exchange
contracts
576 7 580 3 21,436 17,398
Cross-currency
interest rate swaps
0 0 3,017 -3,017 0 33,750
Commodity derivatives 1,386 0 -1,281 -2,667 9,786 9,463

 

Net finance costs include gains of EUR 3,407 thousand (previous year: EUR 5,585 thousand) and losses of EUR 754 thousand (previous year: EUR 1,302 thousand) (see note (8.8)).

(12.2) Disclosures on the carrying amounts and fair values of financial instruments

The following tables show the financial assets and liabilities with their carrying amounts as at 31 December 2016 and 2015 per measurement category under IAS 39 or statement of financial position category. Finance lease liabilities have also been included, even though they are not assigned to an IAS 39 measurement category.


Financial assets and liabilities as at 31 December 2016




Carrying amount under
IAS 39
   
  Measurement
category
under IAS 39
Amortised
cost

Fair
value


Carrying
amount under
IAS 17
Carrying
amount as at
31 Dec. 2016
Current and non-current financial assets

         
Trade receivables Loans and receivables 266,770     266,770
Other financial assets          
   Receivables from subsidiaries,
   jointly controlled entities and associates
Loans and receivables 167     167
   Receivables from derivative
   financial instruments
Financial assets held
for trading
  2,110   2,110
   Loans
Loans and receivables 15     15
   Available-for-sale financial assets
Available for sale 211 7   218
   Miscellaneous financial receivables
Loans and receivables 6,454     6,454
Cash Loans and receivables 178,274     178,274

Current and non-current financial liabilities
         
Financial liabilities Financial liabilities at
amortised cost
137,338     137,338
Trade payables Financial liabilities at
amortised cost
142,408     142,408
Other financial liabilities          
   Bills payable
Financial liabilities at
amortised cost
12,518     12,518
   Liabilities to subsidiaries,
   jointly controlled entities and associates
Financial liabilities at
amortised cost
2,696
 
  2,696
   Finance lease liabilities
n/a     4,981 4,981
   Liabilities from derivative financial instruments
Financial liabilities held
for trading
  141   141
   Miscellaneous financial liabilities
Financial liabilities at
amortised cost
21,926     21,926

of which aggregated by measurement category
under IAS 39
         
Loans and receivables   451,680     451,680
Available for sale   211 7   218
Financial assets held for trading     2,110   2,110
Financial liabilities measured at amortised cost   316,886     316,886
Financial liabilities held for trading     141   141
 
 


Financial assets and liabilities as at 31 December 2015





Carrying amount under
IAS 39
   
  Measurement
category
under IAS 39
Amortised
cost

Fair
value


Carrying
amount under
IAS 17
Carrying
amount as at
31 Dec. 2015

Current and non-current financial assets

         
Trade receivables Loans and receivables 264,190     264,190
Other financial assets          
   Receivables from subsidiaries,
   jointly controlled entities and associates
Loans and receivables 187     187
   Receivables from derivative
   financial instruments
Financial assets held
for trading
  3,630   3,630
   Loans
Loans and receivables 487     487
   Available-for-sale financial assets
Available for sale 259 7   266
   Miscellaneous financial receivables
Loans and receivables 8,575     8,575
Cash Loans and receivables 165,797     165,797

Current and non-current financial liabilities
         
Financial liabilities Financial liabilities at
amortised cost
167,267     167,267
Trade payables Financial liabilities at
amortised cost
141,034     141,034
Other financial liabilities          
   Bills payable
Financial liabilities at
amortised cost
11,987     11,987
   Liabilities to subsidiaries,
   jointly controlled entities and associates
Financial liabilities at
amortised cost
2,691
 
  2,691
   Finance lease liabilities
n/a     4,946 4,946
   Liabilities from derivative financial instruments
Financial liabilities held
for trading
  1,314   1,314
   Miscellaneous financial liabilities
Financial liabilities at
amortised cost
21,940     21,940

of which aggregated by measurement category
under IAS 39
         
Loans and receivables   439,236     439,236
Available for sale   259 7   266
Financial assets held for trading     3,630   3,630
Financial liabilities measured at amortised cost   344,919     344,919
Financial liabilities held for trading     1,314   1,314

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The carrying amounts of the financial assets and liabilities in the scope of IFRS 7 are the same as their fair value per class. This is not the case only for financial liabilities, which have a carrying amount of EUR 137,338 thousand (previous year: EUR 167,297 thousand) and a fair value of EUR 157,283 thousand (previous year: EUR 186,125 thousand). The fair values of financial liabilities were calculated using net present value methods. 

The financial assets in the available-for-sale category of EUR 211 thousand as at 31 December 2016 (previous year: EUR 259 thousand) are measured at amortised cost and essentially relate to companies in which WILO SE directly or indirectly holds 100 percent of the shares and which have not been consolidated for reasons of materiality. 

The fair values of these other financial assets, which are carried at amortised cost, cannot be reliably determined as they are shares in companies for which there are no quoted or other market prices. It would only be possible to reliably determine their fair value as part of concrete negotiations on their disposal. There are currently no plans to dispose of these companies.

The fair values of assets in the available-for-sale category of EUR 7 thousand (previous year: EUR 7 thousand) are derived directly or indirectly from market and quoted prices as at the end of the reporting period. The calculation of the fair values of the receivables and liabilities from derivative financial instruments, which are assigned to the financial assets held for trading and the financial liabilities held for trading categories, of EUR 2,110 thousand (previous year: EUR 3,630 thousand) and EUR 141 thousand (previous year: EUR 1,314 thousand) respectively, is shown under note (7).

(12.3) Net gains and losses by measurement category

The table below shows the net earnings reported under profit and loss for the 2016 and 2015 financial years in line with IFRS 7, consisting of interest, dividends, changes in fair value, impairment, impairment reversals and the effects of currency translation on each measurement category of financial assets and liabilities. This does not include the earnings effects of finance leases as finance leases do not belong to any IAS 39 measurement category.


Net gains and losses

Measurement category

EUR thousand
Carrying
amount as at
31 Dec.
Interest and
dividends

Change in
fair value

Impairments


Impairment
reversals

Effects of
currency
translation

Net gains/
losses



2016 financial year

Loans and receivables



451,680



1,463







-6,256



1,279



1,825



-1,689
Available for sale 218 0         0
Financial assets/
liabilities held for trading

1,969

114

2,653
     
2,767
Financial liabilities at
amortised cost

-316,886

-5,663
     
868

-4,795-
Total   -4,086 2,653 -6,256 1,279 2,693 -3,717

2015 financial year


Loans and receivables


439,236


1,028
 

-6,469


1,389


-2,076


-6,128
Available for sale 266 0         0
Financial assets/
liabilities held for trading
2,316 229 4,283       4,512
Financial liabilities at
amortised cost
-344,919 -7,721       -5,833 -13,554
Total   -6,464 4,283 -6,469 1,389 -7,909 -15,170

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(12.4) Fair value hierarchy of financial assets and liabilities

Financial assets and liabilities accounted for at fair value are divided into the following three levels in accordance with IFRS 13 on the basis of the measurement of their fair value:

Level 1: The fair value for an asset or liability is calculated using quoted market prices on active markets for identical assets and liabilities. 

Level 2: The fair value for an asset or liability is based on value factors for this asset or liability that are observed directly or indirectly on a market.

Level 3: The fair value for an asset or liability is based on value factors for this asset or liability that do not refer to observable market data.

The following table shows the allocation of financial assets and liabilities that existed within the Wilo Group as at 31 December 2016 and 2015 that were recognised at fair value or for which the fair value was disclosed.


Fair value hierarchy


EUR thousand
31 Dec. 2016
Level 2
31 Dec. 2015
Level 2
Available-for-sale financial assets 7 7
Receivables from derivative
financial instruments
(financial assets held for trading)


2,110


3,630
Liabilities from derivative
financial instruments
(financial liabilities held for trading)


141


1,314
Financial liabilities
(loans and receivables)

157,283

186,125

 

The Wilo Group did not report any financial assets or liabilities classified as level 1 or 3 based on the method by which their fair value was determined as at 31 December 2016 and 2015. 

If reclassifications to another level in the valuation hierarchy are required, these are made to the end of the financial year in which the event occurs which results in reclassification being required.

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WILO SE
Corporate Communications
Nortkirchenstraße 100
44263 Dortmund
T +49 231 4102-0
F +49 231 4102-7363

Contact

WILO SE
Corporate Communications
Nortkirchenstraße 100
44263 Dortmund
T +49 231 4102-0
F +49 231 4102-7363