Investor Presentation - FX Exposure Management
Financial Policy
Financial Discipline: Risk management policies focusing on areas such as leverage, liquidity, counterparty
risk, commodity, interest rate and currency exposure.
Leverage &
Liquidity
Proactive in liquidity risk management & targets/limits for financial ratios:
• Net financial debt/EBITDA
Net financial debt/Equity
• Current ratio
• Share of long term debt
Counterparty Risk
Policy
Deposit is kept within bank-based limits:
Interest Rate & Fx
•
Dec-20
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Credit rating assessment and strong capital base.
.
•
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Cap on the maximum deposit allocated to a single bank.
Threshold for deposits subject to banks shareholders' equity.
The fixed/floating profile of financial debt.
Proactive management of FX risk with derivative instruments
• Zero FX exposure target.
Inventory Hedging Policy:
•
Operational hedge: Optimum stock policy & forward pricing mechanism.
Financial hedge: Expected inventory exposure for the year end is hedged by using derivatives.
Hedging ratio increasing throughout the year.
Crack Margin Hedging Policy:
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• Financial hedge: Crack margin (gasoline, diesel, jet fuel, fuel oil) risk mitigation by using derivatives.
Hedge ratio between %0-%50 with up to 1 year hedge tenor
.
Commodity
Hedging
Policy
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Financials
Investor Presentation
www.tupras.com.tr
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