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## TIME TO MATURITY FOR NON-CURRENT BORROWINGS 

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The floating-rate mortgage was repriced in December 2013 at a rate of 0.34% (excl. mar- gin) commencing in January 2014 and will be repriced again in July 2014. The time to ma- turity is more than five years. The floating- rate mortgage is repriced semi-annually with reference to 6-month CIBOR. 

The main part of the bank borrowings pre- sented as having a fixed rate was originally at floating rate but has been swapped to a fixed rate of 4.94% incl. margin. The maturity of these interest rate swaps is 1.5 years. 

## SENSITIVITY ANALYSIS 

At the reporting date, 60% of the net bor- rowings consisted of fixed-rate loans with rates fixed for more than one year (2012: 86%). It is estimated that an interest rate increase of 1 percentage point would lead 

to an increase in annual interest expenses of DKK 146m (2012: DKK 49m). The analy- sis assumes a parallel shift in the relevant yield curves and 100% effective hedging of changes in the yield curve. 

At 31 December 2013, the duration of the borrowings can be specified as in the table below. 

The decrease in duration was primarily due to the passing of time. The Group did not 

## DURATION 

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raise any significant new fixed-rate debt or enter into new swaps during 2013. 

If the market interest rate had been 1 percent- age point higher (lower) at the reporting date, it would have led to a financial gain (loss) of DKK 1,072m (2012: DKK 1,332m). However, since only interest rate swaps and not fixed-rate borrowings are recognised at fair value, marked-to-market, only the duration contained in financial instruments will impact on comprehensive income or the income statement. 

It is estimated that DKK 32m (2012: DKK 72m) of the duration is contained in interest rate derivatives designated as cash flow hedges, meaning that the impact from changes in interest rates will be recognised in other com- prehensive income, provided that the hedges 

are efficient and that there is/are no ineffec- tive portion(s). If the market interest rates had been 1 percentage point higher (lower) at 31 December 2013, equity would have been DKK 32m (2012: DKK 72m) higher (lower). The remaining duration is included in borrowings with fixed interest – primarily the issued bonds which are carried at amortised cost. 

The sensitivity analysis is based on the financial instruments recognised at the reporting date. The sensitivity analysis as- sumes a parallel shift in interest rates and that all other variables, in particular foreign exchange rates and interest rate differentials between the different currencies, remain constant. The analysis was performed on the same basis as for 2012. 

