the non-current loans in Canadian Dollar, US Dollar, Swiss\u00a0Franc\u00a0and Polish Zloty from Kinepolis Financial Services NV to Kinepolis Canada LTD, Kinepolis Schweiz AG and Kinepolis Poznan Sp. Z.o.o, as well as from Kinepolis Group NV to Kinepolis US INC are recognized in other comprehensive income, as these loans are considered to be part of the Group\u2019s net investment in these foreign entities.
The following exchange rate results were recorded directly in equity, before taxes:
IN \u2019000 \u20ac | 2023 | 2024 |
Canadian Dollar | -1 329 | -760 |
US Dollar | -3 268 | 4 633 |
Polish Zloty | 262 | 99 |
Swiss Franc | 558 | -268 |
TOTAL | -3 777 | 3 704 |
The Group is also exposed to a foreign currency risk due to the inclusion in the consolidation of foreign companies that do not have the Euro as their functional currency (Canada, United States, Switzerland and Poland). This translation risk is not hedged. Only the US and Canadian Dollar have a material effect.
The tables below state the possible exchange rate changes for the Canadian Dollar, US Dollar, Polish Zloty and Swiss Franc against the Euro, estimated based on theoretical and actual volatility. The actual volatility has been determined based on the evolution of the rate over the past 5 years.
Sensitivity analysis for foreign currency risk
1 Euro corresponds to: | Closing rate 31/12/2024 | Average rate 2024 | Theoretical volatility | Possible closing rate 31/12/2024 | Possible average rate 2024 |
Canadian Dollar | 1.4948 | 1.4821 | 10% | 1.35 - 1.64 | 1.33 - 1.63 |
US Dollar | 1.0389 | 1.0824 | 10% | 0.94 - 1.14 | 0.97 - 1.19 |
Polish Zloty | 4.2750 | 4.3058 | 10% | 3.85 - 4.70 | 3.88 - 4.74 |
Swiss Franc | 0.9412 | 0.9526 | 10% | 0.85 - 1.04 | 0.86 - 1.05 |
If, at the balance sheet date, the Canadian Dollar, the US Dollar, the Polish Zloty and the Swiss Franc had strengthened / weakened as indicated above, and all other variables being constant, the result of 2024 would have been \u20ac\u00a00.3\u00a0million lower or \u20ac\u00a00.3 million higher, and equity would be \u20ac\u00a015.0 million higher or \u20ac\u00a012.3 million lower at the end of 2024. Only the Canadian Dollar and the US Dollar have a material impact in the above sensitivity analysis.
1 Euro corresponds to: | Closing rate 31/12/2024 | Average rate 2024 | Actual volatility | Possible closing rate 31/12/2024 | Possible average rate 2024 |
Canadian Dollar | 1.4948 | 1.4821 | 5.71% | 1.41 - 1.58 | 1.40 - 1.57 |
US Dollar | 1.0389 | 1.0824 | 8.57% | 0.95 - 1.13 | 0.99 - 1.18 |
Polish Zloty | 4.2750 | 4.3058 | 6.28% | 4.01 - 4.54 | 4.04 - 4.58 |
Swiss Franc | 0.9412 | 0.9526 | 8.94% | 0.86 - 1.03 | 0.87 - 1.04 |
If, at the balance sheet date, the Canadian Dollar, the US Dollar, the Polish Zloty and the Swiss Franc had strengthened / weakened as indicated above, and all other variables being constant, the result of 2024 would have been \u20ac\u00a00.3\u00a0million lower or \u20ac\u00a00.2 million higher, and equity would be \u20ac\u00a010.8 million higher or \u20ac\u00a09.3 million lower at the end of 2024. Only the Canadian Dollar and the US Dollar have a material impact in the above sensitivity analysis.