GANADO CORPORATION- Managing the Translational Exposure

Ganado Corporation

• U.S.-based multinational parent company
• Required to report consolidated financial results according to U.S. GAAP in U.S. dollars

Ganado China

• A wholly owned foreign subsidiary of Ganado Corporation
• Maintains its financial statements in Chinese yuan

Ganado U.S.

• Wholly owned domestic subsidiary of Ganado Corporation
• Maintains its financial statements in U.S. dollars

Ganado Europe

• Wholly owned foreign subsidiary of Ganado Corporation based in Germany
• Maintains its financial statements in euros

		Sales (millions, local currency)			Average Exchange Rate ($/Euro &Yun/$			Sales (millions, US $)
	2020	2021	% Change	2020	2021	% Change	2020	2021	% Change
U.S.A	$560	588.56	5.1%	1	1	0
Europe	E116.84	E120	2.7%	1.60	1.3			$156.00
China	Y1200.00	Y1200	0%	6.7		2.94
Total
		Earnings (millions, local currency)			Average Exchange Rate ($/Euro &Yun/$			Earnings (millions, US $)
	2020	2021	% Change	2020	2021	% Change	2020	2021	% Change
U.S.A		$30	1.5%
Europe	E15.4	E16.4	1.6%	1.6	1.3
China	Y54		0%	6.7		2.94
Total