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 113.4( 51.4) million on the balance sheet date. The corresponding average currency exposure for the year amounted to SEK 68.9( 48.3) 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.
2024 |
|
Impact on result |
Impact on equity |
Currency |
Change |
before tax( SEK million) |
before tax( SEK million) |
USD |
+ 5 % |
0.6 |
3.2 |
|
-5% |
-0.6 |
-3.2 |
EUR + 5 % 1.0 0.7-5 %-1.0-0.7
DKK |
+ 5 % |
0.8 |
0.0 |
|
-5% |
-0.8 |
0.0 |
CHF |
+ 5 % |
0.4 |
0.0 |
|
-5% |
-0.4 |
0.0 |
2023 |
|
Impact on result |
Impact on equity |
Currency |
Change |
before tax( SEK million) |
before tax( SEK million) |
USD |
+ 5 % |
0.7 |
3.5 |
|
-5% |
-0.7 |
-3.5 |
EUR + 5 % 1.2 0.9-5 %-1.2-0.9
DKK |
+ 5 % |
0.5 |
0.0 |
|
-5% |
-0.5 |
0.0 |
CHF |
+ 5 % |
0.4 |
0.0 |
|
-5% |
-0.4 |
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 SEK 0.6( 0.4) million.
ANNUAL REPORT // 119