KONE’s cash and short-term investments were EUR 873.2 (920.3) million at the balance sheet date.
KONE had no significant interest-bearing debt on the balance sheet date or at the end of the year of comparison. As KONE’s excess liquidity is invested in maturity periods of less than one year, the changes in the interest rates do not have any significant impact on their market values. The changes in the interest rates may however impact future interest income.
Long-term cross-currency swaps have been used for hedging the TELC investment (see note 15 for further information on the TELC investment). The fair value of the interest rate component of this instrument is impacted by the changes in the interest rate differential between Euros and Japanese yen.
When calculating the interest rate sensitivity analysis the interest-bearing net debt is assumed to remain on the level of the closing balance of 2012 during the following financial period. The sensitivity analysis represents the impact of a 1 percentage change in the interest rate level on the net interest income for the financial period by taking into account the net debt tied to interest periods less than one year, -860.4 (-904.2) million euros. For 2013 a 1 percentage point change in the interest rate level would mean a change of EUR 8.6 (9.0) million in net interest income. The interest rate sensitivity is calculated before taxes.