New Wave Group Annual Report 2020 English | Page 98

NWG // FINANCIAL INFORMATION // THE GROUP

Translation exposure

The Group accounts are also affected by translating the results and net assets of foreign Group companies into SEK . A change of 1 % of the currency exchange rates would impact sales by SEK 45.3 ( 52.8 ) million , calculated on the sales for 2020 where USD and EUR impact the most with SEK 11.4 ( 17.7 ) million and SEK 17.8 ( 18.4 ) million each . Such an effect on the exchange rates would impact closing equity by SEK 29.1 ( 30.6 ) million . The below table displays a sensitivity analysis regarding sales based on the preceding year ' s currency exchange rates , where a translation of this year ' s net sales to the exchange rates of the preceding year would have affected net sales by SEK 123.3 ( -275.8 ) million .

Liquidity risk

Due to the relatively capital-intensive nature of its activities and its expansive growth strategy , New Wave Group has a need to secure its funding . For a growth group like New Wave Group it is essential to ensure that sufficient liquidity is available to fund future expansion and that there is a high degree of flexibility when acquisition opportunities occur . It is also important that a sound balance between equity and financing through debt is kept , which is why New Wave Group ’ s goal is to achieve an equity ratio in excess of 30 %. New Wave Group has a centralized finance function , which means that external borrowing is managed and administered centrally as far as possible . The liquidity generated in the Group is continuously transferred to New Wave Group ’ s treasury center through various pooling systems and reduces the total credit volume . New Wave Group has not made any financial investments .

As of 31 December , the Group ' s total credit limit amounted to SEK 2,845.0 million , of which SEK 2,150.0 million runs until March 2022 , USD 18.3 million through January 2024 and SEK 295.3 million has maturity extending until August 2027 . The other SEK 250.0 million has a term between three months and six years . The credit limit is limited in amount to and dependent on the value of certain underlying assets . The financing is based on commitments ( covenants ) regarding key ratios . The covenants are met as of 31 December 2020 . Based on the current forecast , management deems that the Group will be able to meet these key ratios by a satisfactory margin going forward .

The tables below display the maturity analysis of the amortization of interest-bearing liabilities including contractual and undiscounted interest payments . Any planned future liabilities have not been included . Interest payments related to financial instruments with floating rate have been calculated based on the interest rate at year-end .

SEK million Maturity analysis of New Wave Group ' s loans

The table below displays the maturity for the Group ' s outstanding currency futures och unrealized amounts per year-end , distributed per currency . All contracts mature within twelve months from year-end .

2020 2019

SEK million Maturity analysis of New Wave Group ' s lease liabilities

2020 2019

2022 126.9 116 . 6

-4.7

-2.2

098 // ANNUAL REPORT