15. Financial instruments

Derivative financial instruments

Where required, the Group hedges foreign currency exchange rate and interest rate risks using derivative financial instruments in accordance with the treasury policy. This policy and the corresponding accounting policies for the Group’s derivative financial instruments are disclosed in Note 3 and Note 4. As at 31 December 2022 and 2021, the following derivative financial instruments were outstanding:

Forward foreign exchange contracts

The change in fair value of the instruments is booked in financial result, net.

Hedge accounting

No hedge accounting was applied in 2022 or 2021.

Measurement of financial instruments by categories in accordance with IFRS 9

Based on the relevant balance sheet item of financial instruments, the following table shows an allocation of the balance sheet items to the classification by categories in accordance with IFRS 9. In addition, a fair value measurement hierarchy was introduced for assets and liabilities that are measured at fair value in accordance with IFRS 13. Level 1 contains all financial instruments with quoted prices in active markets. Level 2 contains all financial instruments with inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 3 contains all financial instruments with inputs for determining the assets and liabilities that are not based on observable market data.

Fair value measurement hierarchy:

Level 1: quoted prices in active markets for identical assets
Level 2: observable prices, either directly or indirectly
Level 3: input factors that are not based on observable market data

Maturity analysis of financial instruments

The following table shows the carrying amount of all contractually defined future (not discounted) interest and amortisation payments of derivative and non-derivative financial instruments as at the balance sheet date:

Additional information to the cashflow statement

The following table shows the reconciliation of the items for which cashflows were or in the future will be generated and that are reported as net cash from financing activities in the consolidated statement of cashflows:

In 2022, the position “Others” of lease liabilities contained the non-cash addition of new lease contracts. The position “Others” of short- and long-term debt (excl. leases) mainly contained the reclassification of the short-term portion of the CHF bond (maturity date 17 April 2023).

In 2021, the position “Others” of lease liabilities contained the non-cash addition of new lease contracts. The position “Others” of short- and long-term debt (excl. leases) mainly contained the reclassification of the short-term portion of the CHF bond (maturity date 20 October 2022).