NWG Annual Report 2019 - EN NWG Annual Report 2019 - EN | Page 96

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
52.8 (47.5) million, calculated on the sales for 2019 where USD
and EUR impacts the most with SEK 17.7 (15.8) million, and SEK
18.4 (16.6) million, each. Such an effect on the exchange rates
would impact closing equity by SEK 30.6 (28.8) million. The below
table displays a sensitivity analysis regarding sales based on the
preceding year's currency exchange rates, where a translation of
net sales to the exchange rates of the preceding year would have
lowered net sales by SEK 275.8 (185.4) million.
SEK million
Currency impact per
geographic area
USA
Nordic countries
Central Europe
Southern Europe
Other countries
Total
2019 2018
141.2
17.0
34.3
31.9
51.4
275.8 37.2
38.4
58.9
37.1
13.9
185.4
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 continually 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 September, the Group signed a supplement to the existing
financing agreement and increased its total credit limit by an
additional SEK 500 million. As of 31 December, the Group's total
credit limit thus amounted to SEK 3,212 million, of which SEK
2,150 million runs until March 2022, USD 24 million through
January 2024 and SEK 339 million has maturity extending until
August 2027. The other SEK 500 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
financial ratios. The covenants are met as of 31 December 2019.
Based on the current forecast, management deems that the Group
096 // ANNUAL REPORT
will be able to achieve these key performance indicators by a satis-
factory margin going forward.
The tables below display the maturity analysis of the amor-
tization 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
2019
2020
2021
2022
2023
2024
2025 or later
SEK million
Maturity analysis of
New Wave Group's lease liabilities
2020
2021
2022
2023
2024
2025 or later
2019 2018
0.0 350.8
362.6 98.1
110.1 95.3
107.7 1 682.3
1 729.8 60.6
23.9 16.5
361.3 0.0
2019 2018
132.5 0.0
124.7 0.0
116.6 0.0
103.3
90.2 0.0
334.6 0.0
Maturity analysis of
New Wave Group's other
financial liabilities
2019
2020
0.0
2019 2018
0.0 1 231.8
1 042.0 0.0
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.
31 Dec 2019
Currency
EUR
USD
CAD Hedged volume
result, SEK million Unrealized,
SEK million Number of
hedged months
1.3
77.8
0.0 -0.1
-2.1
0
-2.2 < 6
< 6
< 6
31 Dec 2018
Currency
EUR
USD
CAD Hedged volume
result, SEK million Unrealized,
SEK million Number of
hedged months
0.8
47.8
1.3 0.0
0.4
0.1
0.5 < 6
< 6
< 6