references
FINANCIAL REPORT
13 CONTRIBUTIONS IN-KIND
(Expressed in EUR)
Staff Scientific 149,242 545,030 633,802 1,313,787 14,596 128,936
Staff nonScientific 68,828 63,949 0 56,420 13,019 671
R&D Services 264,963 -183,431 2,853 32,835
Office, furniture & admin. 58,335 338,901
TOTAL 276,405 1,212,843 633,802
Lead Optimization Consortia (Australia) Screening Resources & Reference Screening Centres Macrofilaricide Filaria Azole E1224 (Chagas) Regional Offices New VL treatments: Asia, America ASMQ Fixed-dose Artesunate Mefloquine (Malaria) Cutaneous Leishmaniasis projects Paediatric HIV (4-in-1, LPV/r-based fixed-dose combination) TOTAL
0 5,848 -
1,186,776 36,316 162,442 -
3,715 157,109 2,946,217
202,887
117,220
0 72,390 475,473
3,715 229,499 3,741,798
Main in-kind contributors: AbbVie, USA; Eisai Ltd, Japan; ARC-Australian Research Council, Australia; University of Dundee, UK; University of Brasilia, Brazil; Monash University, Australia; KEMRI, Kenya; Astellas Pharma Inc, Japan; Cipla, India; Fiocruz, Brazil; Shionogi, Japan; Sanofi ID, France; GeneDesign, Inc., Japan; Swiss TPH, Switzerland; Takeda Pharmaceutical Company Ltd, Japan; Institut Pasteur Korea, Korea; Daniela Sassela, Italy; Epichem Pty Ltd, Australia
14 STRUCTURED PRODUCT AND OPEN DERIVATIVE
In January 2015, after the Swiss National Bank dropped its 1.2 EUR/CHF floor, the Foundation decided to put in place a hedging strategy for balancing probability of loss from fluctuation of CHF. In June 2015, after Audit Committee endorsement and Board approval, the Foundation started a hedging strategy of at least 50% of needs in CHF at six months, renewable (extended by one month at the end of each monthly period). As the Foundation is long in GBP and USD these two currencies are used to cover the needs in CHF. Two tools are used: Forward (FWD) and options (the Risk Reversal – RR and Kick Into Forward - KIF). The RR and KIF offer the potential of a better rate than the current market forward rate with a predefined Strike. Derivative financial instruments DNDi uses forward contracts and options to hedge its exposure to foreign currency risks arising from its future cash flows. The financial instruments are recognised at fair value, initially on the date on which the contract is entered into and subsequently at each reporting date. Any gains or losses arising from changes in fair value of the financial instruments during the year are reported directly in the statement of operations. See below the total commitment toward the year 2016 at year-end 2015. Buy Sell Solution Expiry Strike Net Instrike present value
FORWARDS
CHF 221,306 CHF 221,625 CHF 221,310 CHF 220,980 GBP 150,000 GBP 150,000 GBP 150,000 GBP 150,000 FWD FWD FWD FWD 16-Mar-16 18-Apr-16 18-May-16 16-Jun-16 1.4798 1.4775 1.4754 1.4732 220,985 220,899 220,903 220,849
OPTIONS
CHF 300,000 CHF 300,000 CHF 300,000 CHF 300,000 CHF CHF CHF CHF CHF GBP USD GBP USD USD 300,000 GBP 150,000 USD 300,000 USD 300,000 USD 300,000 RR KIF RR KIF RR KIF RR RR RR 18-Jan-16 18-Jan-16 18-Feb-16 18-Feb-16 16-Mar-16 16-Mar-16 18-Apr-16 18-May-16 16-Jun-16 1.3900 0.9350 1.4250 0.9350 0.9300 1.4700 0.9300 0.9300 0.9300 1.5180 1.0105 1.4900 1.0151 1.0010 1.5270 1.0015 1.0010 1.0000
RR Strategy: If spot at expiry trades at or below the Lower Strike, the client sells USD or GBP buys CHF at the Lower Strike. If spot at expiry trades at or above the Upper Strike, the client sells USD buys CHF at the Upper Strike. KIF Strategy: If spot trades at or above the Instrike at any time during the life of the structure, the long option position turns into a forward with the conversion rate at the Strike.
86 › DNDi Annual Report 2015