NWG // FINANCIAL INFORMATION //
THE GROUP
price . In cases where there is a pre-order , the currency-exposed purchases are hedged .
The Group ’ s principal commercial flows of foreign currencies mainly pertain to imports from Asia to Europe and intra-Group flows within Europe . Currency rates and payment conditions to be applied to the internal trade between the Group companies are set centrally . Currency exposure and risk is primarily , and to a large extent , reduced by netting internal transactions . Therefore , through netting , the Group ' s main transaction exposure can be reduced and , together with the use of currency hedges and financing in each company ' s functional currency the exposure is further reduced .
The actual currency exposure amounted to SEK 33.2 ( 38.3 ) million on the balance sheet date . The corresponding average currency exposure for the year amounted to SEK 38.4 ( 37.3 ) million and the below table displays the sensitivity of a reasonable change in the currencies in which the Group has the largest exposure . Impact on the Group ’ s result before tax refers to the impact from changes in the fair value of financial assets and liabilities but excluding foreign currency derivatives where hedge accounting is applied . Impact on equity before tax for the Group refers only to the impact from changes in the fair value of the derivatives where hedge accounting is applied .
2021 |
|
Impact on result |
Impact on equity |
Currency |
Change |
before tax ( SEK million ) |
before tax ( SEK million ) |
USD |
+ 5 % |
0,4 |
3,4 |
|
-5% |
-0,4 |
-3,4 |
EUR + 5 % 1.0 1,4 -5 % -1.0 -1,4
DKK |
+ 5 % |
0,5 |
0,0 |
|
-5% |
-0,5 |
0,0 |
HKD |
+ 5 % |
-0,2 |
0,0 |
|
-5% |
0,2 |
0,0 |
2020 |
|
Impact on result |
Impact on equity |
Currency |
Change |
before tax ( SEK million ) |
before tax ( SEK million ) |
USD |
+ 5 % |
0,8 |
1,6 |
|
-5% |
-0,8 |
-1,6 |
EUR |
+ 5 % |
1.0 |
0,1 |
|
-5% |
-1.0 |
-0,1 |
DKK |
+ 5 % |
0,4 |
0,0 |
|
-5% |
-0,4 |
0,0 |
CHF |
+ 5 % |
-0,5 |
0,0 |
|
-5% |
0,5 |
0,0 |
A sensitivty analysis regarding the other currencies does not have an material effect on result before tax for each currency separately . The aggregated effect for other currencies , provided a 5 percent exchange rate increase , would impact result before tax positively by SEK 0.2 ( 0.2 ) million .
ANNUAL REPORT // 101