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39. Derivative financial instruments

39.1 Foreign currency derivatives

39.1 Foreign currency derivatives

The Group policy with respect to the use of financial derivative contracts is described in Note 5 “Financial Risk Management”.

The Group entered into several forward foreign exchange contracts in order to hedge a portion of highly probable future sales and royalty income, expected to occur in 2020 and 2021.

The fair values of the foreign currency derivative contracts were as follows:

€ million

2020

2019

2020

2019

USD

112

14

78

35

GBP

1

3

2

0

JPY

7

2

0

3

CHF

0

4

2

0

RUB

0

0

0

0

Other currencies

3

1

3

3

Total foreign currency derivatives

123

24

85

41

The net foreign currency derivatives maturity analysis is noted below:

 

2020

2019

€ million

  

1 year or less

38

-17

1-5 years

0

0

Beyond 5 years

0

0

Total foreign currency derivatives – net asset/net liability (-)

38

-17

The following table shows the split of foreign currency derivatives by currency of denomination (currencies sold view) as at December 31, 2020:

Notional amounts in € million

USD

GBP

EUR

JPY

CHF

Other currencies

Total

Forward contracts

224

0

564

22

3

178

991

Currency swaps

1 703

159

1 219

361

8

107

3 557

Option/collar

0

0

0

0

0

0

0

Total

1 927

159

1 783

383

11

285

4 548