New Wave Group Annual Report 2021 - EN | Page 102

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 48.0 ( 45.3 ) million , calculated on the sales for 2021 where USD and EUR impact the most with SEK 14.0 ( 11.4 ) million and SEK 18.5 ( 17.8 ) million each . Such an effect on the exchange rates would impact closing equity by SEK 32.2 ( 29.1 ) 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 166.6 ( 123.3 ) 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 .

In December , the Group signed a new three-year financing agreement . The new agreement means that the Group ' s total credit facility as of December 31 amounted to SEK 2,766.0 million , of which SEK 2,150.0 million runs through December 2024 , MUSD 12.7 up to and including January 2024 and SEK 251.6 million has maturities that extend up to and including August 2027 . The other SEK 250.0 million has a term of between three months and six years . The credit facility is limited in amount to and dependent on the value of certain underlying assets . The financing agreement means that key figures ( covenants ) must be met in order to maintain the credit line . The covenants are met as of 31 December 2021 . 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 .

2021 2020

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

2021 2020

2023 129.9 115.9

3.3

-4.7

102 // ANNUAL REPORT