Transurban FY26 Corporate Report Financial statements
Section B: Notes to the Group financial statements for the year ended 30 June 2026
B14 Financial risk management and derivative financial instruments (continued) Market risk (continued) Foreign exchange risk (continued) Sensitivity
Sensitivity analysis showing the impact of a shift in exchange rates on foreign currency risk exposures at the reporting date after hedging is presented in the table below. A sensitivity range of plus and minus 10 per cent has been selected as a reasonably possible shift in exchange rates based on the current and historical level of volatility. This is not a forecast or prediction of future market conditions.
2026
2025
$M
$M
Increase/ (decrease) in post-tax profit
Increase/ (decrease) in post-tax profit 1
Increase/ (decrease) in equity
Increase/ (decrease) in equity 1
AUD/USD + 10%
— —
(147)
(1)
(159)
180
– 10%
1
195
AUD/EUR + 10%
— —
(33)
— —
(39)
40
– 10%
48
AUD/CAD + 10%
(6)
(4)
— —
4
8
5
– 10%
(5)
AUD/CHF + 10%
— —
(2)
— —
(3)
3
– 10%
4
AUD/NOK + 10%
— —
— —
— —
— —
– 10%
AUD/GBP + 10%
— —
(9)
— —
(11)
11
– 10%
14
1. Comparative amounts have been reclassified to align with current period presentation.
There is no significant impact on the profit and loss from foreign currency movements associated with borrowings which are swapped to Australian dollars as an offsetting amount will be recognised on the associated hedging instrument. There is exposure to equity impacts from foreign exchange movements associated with the unhedged component of investments in foreign operations and derivative financial instruments in cash flow hedges. Interest rate risk Interest rate risk arises from changes in market interest rates. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. The Group uses cross-currency interest rate swaps to convert a portion of fixed interest rate borrowings to floating interest rate borrowings. Floating interest rate borrowings give rise to cash flow interest rate risk, which is partially offset by cash and cash equivalents balances held at floating interest rates. The Group manages this interest rate risk by entering into fixed interest rate borrowings or by using interest rate swaps to convert floating interest rate borrowings to fixed interest rate borrowings.
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