ERDEMIR2014 ENG

171

ERDEMİR GRUBU

2014 ANNUAL REPORT

EREĞLİ DEMİR VE ÇELİK FABRİKALARI T.A.Ş AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2014

(Amounts are expressed as Turkish Lira (“TRY Thousand”) unless otherwise indicated.)

(Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish - See Note 34)

NOTE 30 - NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (cont’d)

Additional information about financial instruments (cont’d)

(f) Foreign currency risk management (cont’d)

The following table shows the Group’s sensitivity to a 10% (+/-) change in the TRY, EURO and Japanese Yen. 10% is the sensitivity rate

used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the

possible change in foreign exchange rates.

As of 31 December 2014 asset and liability balances are translated by using the following exchange rates: TRY 2,3189 = US $ 1,TRY

2,8207 = EUR 1 and TRY 0,0193= JPY 1 (31 December 2013: TRY 2,1343 = US $ 1,TRY 2,9365 = EUR 1 and TRY 0,0202= JPY 1)

Profit/(loss) after capitalization on tangible

assets and before tax and non-controlling interest

Appreciation of

Depreciation of

31 December 2014

foreign currency

1- TRY net asset/liability

(153.988)

153.988

2- Hedged portion from TRY risk (-)

20.889

(20.889)

3- Effect of capitalization (-)

4- TRY net effect (1+2+3)

(133.099)

133.099

5- US Dollars net asset/liability

(64)

6- Hedged portion from US Dollars risk (-)

7- Effect of capitalization (-)

8- US Dollars net effect (5+6+7)

(64)

9- Euro net asset/liability

(20.297)

20.297

10- Hedged portion from Euro risk (-)

11.773

(11.773)

11- Effect of capitalization (-)

12- Euro net effect (9+10+11)

(8.524)

8.524

13- Jap. Yen net asset/liability

(8.108)

8.108

14- Hedged portion from Jap. Yen risk (-)

15- Effect of capitalization (-)

16- Jap. Yen net effect (13+14+15)

(8.108)

8.108

TOTAL (4+8+12+16)

(149.667)

149.667

In addition to the Group’s foreign currency sensitivity to a 10% (+/-) change in TRY, TRY 166.866 thousand of income / (TRY (56.859)

thousand expense) will occur due to the decrease/ (increase) in deferred tax base.