Case Study: a leading industrial machinery manufacturer reduces FX risk with Kantox Dynamic Hedging

Leading Industrial Machinery Manufacturer cuts FX risk by €0.4M with Kantox

A leading industrial machinery manufacturer headquartered in Germany faced significant FX challenges. Its manual process for identifying and calculating currency exposures was time-consuming and error-prone, and infrequent hedging left the company exposed to risk. The company sought an automated solution from Kantox to reduce its FX exposure and implement hedge accounting.

Kantox implemented its Dynamic Hedging solution, which automated the hedging program based on sales orders for three currencies. The solution reduced exposure to FX risk by EUR 0.4 million annually and saved EUR 20k annually on forward points. It also centralized reporting and saved 30% of the treasurer's work time, allowing the CFO to focus on other strategic aspects.