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This excerpt taken from the SYT 20-F filed Mar 1, 2006. (ii) Committed foreign currency exposures Committed foreign currency exposures generally are fully covered and are managed by the use of forward contracts. Net committed transactional currency exposures are determined by identification and monthly reporting by business units. The value-at-risk calculations for committed exposures relate to the revaluation of exposures relative to spot rates over a monthly period. The impact of interest differentials and other factors is not included in these calculations. Value-at-risk is calculated based on a variance-covariance approach, using historical volatility and correlation as applied by the RiskMetrics Group. Syngenta only uses forward contracts to hedge committed foreign currency exposures so it is not necessary to address optionality in the model. Syngenta uses a 1-month time horizon for this risk based on average maturity of exposures and hedges, and exposure management. 94 The value-at-risk calculation was performed for net committed transactional currency flows existing at December 31, 2005 taking into account related currency hedges. As of December 31, 2005 the total 1-month value-at-risk, after hedges, at the 95% confidence level, was US$7 million. Maximum and minimum levels of risk through the year were US$8 million and US$2 million and at no point in the year did losses exceed the maximum level. The comparative figure for December 31, 2004 was US$5 million. This excerpt taken from the SYT 20-F filed Mar 16, 2005. (ii) Committed foreign currency exposures Committed foreign currency exposures generally are fully covered and are managed by the use of forward contracts. Net committed transactional currency exposures are determined by identification and monthly reporting by business units. The Value-at-Risk calculations for committed exposures relate to the revaluation of exposures relative to spot rates over a monthly period. The impact of interest differentials and other factors is not included in these calculations. Value-at-risk is calculated based on a variance-covariance approach, using historical volatility and correlation as applied by the RiskMetrics Group. Syngenta only uses forward contracts to hedge committed foreign currency exposures so it is not necessary to address optionality in the model. Syngenta uses a 1-month time horizon for this risk based on average maturity of exposures and hedges, and exposure management. The value-at-risk calculation was performed for net committed transactional currency flows existing at December 31, 2004 taking into account related currency hedges. As of December 31, 2004 the total 1-month value-at-risk, after hedges, at the 95% confidence level, was US$5 million. Maximum and minimum levels of risk through the year were US$8 million and US$2 million: at no point in the year did losses exceed the maximum level. The comparative figure for December 31, 2003 was US$8 million. | EXCERPTS ON THIS PAGE:
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