Lendlease Annual Report 2022

152 Lendlease Annual Report 2022 Notes to Consolidated Financial Statements continued 24.a. Foreign Currency Risk Exposure The net asset exposure by currency is detailed below. A$m US$m £m S$m €m CNYm MYRm Other m 1 June 2022 Net asset exposure (local currency) 2,456 876 699 740 378 628 1,499 45 June 2021 Net asset exposure (local currency) 3,248 743 572 607 307 653 1,204 42 1. Other currency is translated and disclosed in AUD. Sensitivity Analysis The sensitivity analysis of the Group’s Australian dollar denominated Income Statement and Statement of Financial Position to foreign currency movements is based on a 10 per cent fluctuation (June 2021: 10 per cent fluctuation) on the average rates during the financial year and the spot rate at balance date, respectively. This analysis assumes that all other variables, in particular interest rates, remain constant, and excludes the effects of the foreign exchange contracts. A 10 per cent movement in the average foreign exchange rates would have impacted the Group’s Profit after tax as follows: 10% WEAKENING LEADS TO INCREASE/ (DECREASE) IN PROFIT AFTER TAX 10% STRENGTHENING LEADS TO INCREASE/ (DECREASE) IN PROFIT AFTER TAX June 2022 June 2021 June 2022 June 2021 $m $m $m $m USD 9 7 (8) (6) GBP (7) (1) 8 1 SGD 4 3 (4) (2) EUR (1) 4 - (3) CNY (1) - 1 - MYR - - 1 1 4 13 (2) (9) A 10 per cent movement in the foreign exchange spot rates at balance date would have impacted the Group’s net assets as follows: 10% WEAKENING LEADS TO INCREASE/ (DECREASE) IN NET ASSETS 10% STRENGTHENING LEADS TO INCREASE/ (DECREASE) IN NET ASSETS June 2022 June 2021 June 2022 June 2021 $m $m $m $m USD 143 102 (117) (96) GBP 145 107 (116) (91) SGD 89 66 (73) (54) EUR 68 52 (55) (42) CNY 15 15 (12) (12) MYR 54 43 (44) (35) 514 385 (417) (330) Section D. Risk Management continued 24. Financial Risk Management continued