ANNUAL REPORT 2021
LUNDBECK
ANNUAL REPORT 2021
= CONTENTS
CONSOLIDATED FINANCIAL STATEMENTS
NOTE 19
19 FINANCIAL INSTRUMENTS - CONTINUED
80/111
Contract
amount
according to
hedge
accounting
Forward exchange contracts
Fair value
at year-end
recognized in
the statement
of comprehen-
sive income/
other
receivables
Fair value
at year-end
recognized in
the statement
of comprehen-
sive income/
other payables
Realized
exchange
gains/losses
for the year
recognized in
the statement
of profit or
loss/
statement
of financial
position
Average
hedge prices
of existing
forward
exchange
contracts
Contract
amount
according to
hedge
Maturity
accounting
Fair value
at year-end
recognized in
the statement
of comprehen-
sive income/
other
receivables
Fair value
at year-end
recognized in
the statement
of comprehen-
sive income/
other
payables
Realized
exchange
gains/losses
for the year
recognized in
the statement
of profit or
loss/
statement
of financial
position
Average
hedge price
range
of existing
option
contracts¹
Maturity
(against DKK)
DKKm
DKKm
DKKm
DKKm
DKK
Currency option contracts
(against DKK)
DKKm
DKKm
DKKm
DKKm
DKK
2021
2021
CAD (sell position)
393
(12)
(23)
CNY (sell position)
505
(33)
(28)
JPY (sell position)
252
(1)
14
USD (sell position)
3,030
1
(109)
116
499.04
95.53
5.69
631.25
Oct. 2022
AUD (sell position)
82
1
Oct. 2022
CAD (sell position)
137
22
462.18-498.24
(2)
Nov. 2022
JPY (sell position)
43
498.99 536.51
5.49 -6.01
Nov. 2022
Dec. 2022
Oct. 2022
Nov. 2022
USD (sell position)
571
1
Other currencies
1,136
15
(27)
(26)
Dec. 2022
2
(15)
(19)
634.07 670.85
Nov. 2022
Total
16
(182)
53
1) Lundbeck's option structures all consist of a purchased put option and a sold call option, which protects against downside movements in
currency and limits the upside. The hedge price range is shown net of premium.
2020
CAD (sell position)
383
2
(1)
7
CNY (sell position)
458
3
(5)
JPY (sell position)
294
8
5
USD (sell position)
3,337
225
(55)
475.46
91.71
6.04
648.01
Other currencies
1,172
14
(41)
48
Dec. 2021
Oct. 2021
Oct. 2021
Oct. 2021
Dec. 2021
Net foreign exchange contracts, trading
Total
252
(47)
5
There were no outstanding forward exchange contracts relating to trading at 31 December 2021 and no
material impact from trading contracts was recognized in financial income or financial expenses in 2021.
Hedges of net investment
Lundbeck has hedged part of the translation risk emanating from its net investments in foreign subsidiaries
in the U.S. by taking out bank debt in USD. Thereby, Lundbeck decreases the negative impact that a weaker
USD would have on the value of its U.S. assets, as a decrease in the value of the debt portfolio will offset
part of this impact. Lundbeck designates the USD bank debt as hedge of net investment, and the exchange
rate adjustments are recognized in other comprehensive income. The hedges of net investment are
considered to be effective as long as the carrying amount of the net assets in the foreign operation is (at
least) equal to the notional amount on the hedging instrument. For more information about the net investment
hedges, see note 17 Bank debt, bond debt and borrowings.View entire presentation