Page 85 - Loomis Annual Report 2017

Loomis Annual Report 2017
Notes – Group 81
Capital risk
The goal of the Group’s capital structure is to continue to gen- erate a high return on investments for shareholders, bene ts for other stakeholders and to maintain an optimal capital struc- ture in order to keep the cost of capital at a minimum. The cap- ital structure can be adjusted according to the needs aris-
ing, through changes in dividends to shareholders, the repur- chase of shares, new share issues, or by selling off assets to decrease liabilities. Evaluations regarding capital are based on relevant key gures, such as the proportion of net debt and shareholders’ equity.
The table below shows how the Group’s capital employed is distributed per currency (nominated in SEK m) and its nancing, as of December 31, 2017:
SEK m
Capital employed Net debt
Net exposure
EUR GBP USD
Other CHF currencies
Total foreign currencies
SEK Total
2,522
899
4,790
1,577
646
10,434
426
10,860
-1,353
-398
-672
-749
-173
-3,344
-480
-3,824
1,169
501
4,118
828
473
7,090
-54
7,037
The table below shows how the Group’s capital employed is distributed per currency (nominated in SEK m) and its nancing, as of December 31, 2016:
SEK m
Capital employed Net debt
Net exposure
Price risk
EUR GBP
1,991 925 –991 –457
1,000 468
USD
5,265 –2,199
3,066
Other CHF currencies
1,674 451 –732 –224
942 227
Total foreign
currencies SEK
10,307 269 –4,602 673
5,703 942
Total
10,576 –3,929
6,647
The Group is exposed to price risks related to the purchase
of certain raw materials (mainly diesel). The Group limits these risks through customer contracts containing fuel surcharges or annual general price adjustments to the largest extent possible.
Fair value of assets and liabilities
The carrying amount of the assets and liabilities in Loomis’ bal- ance sheet are deemed to be a good approximation of the fair values. The fair value of liabilities and currency swaps that are included as hedging instruments in the hedging of net invest- ments amounts to SEK –963 million (–1,634) and SEK 30 million (14) respectively.
Financial instruments
Financial derivative instruments, such as forward exchange agreements and interest rate swaps, are aimed at minimiz-
ing the nancial risks to which Loomis is exposed and are also used to facilitate the management of the liability portfolio. These types of instruments are never used for speculation purposes. For accounting purposes, nancial instruments are classi ed based on the categories of valuation stipulated in IAS 39. The table below shows Loomis’ nancial assets and liabilities, cat- egories of valuation and the fair value for each item. In 2018, Loomis will continue to utilize derivative instruments to limit exposure to the nancial risks mentioned in this Note.
SEK m
Financial assets
Interest-bearing nancial xed assets
Accounts receivable
Interest-bearing nancial current assets
Liquid funds
Financial liabilities
Current loans payable Current loans payable Long-term loans payable Accounts payable
SEK m
Financial assets
Interest-bearing nancial xed assets
Accounts receivable
Interest-bearing nancial current assets
Liquid funds
Financial liabilities
Current loans payable Current loans payable Long-term loans payable Accounts payable
Categories
IAS 39 Category
1 1
2,4 1
2,4 3 3 3
IAS 39 Category
1 1
2,4 1
2,4 3 3 3
December 31, 2017 Carrying Fair amount value
Financial Instruments; reported values by category of valuation:
96
96
2,173
2,173
62
62
839
839
32
32
43
43
4,745
4,745
585
585
December 31, 2016 Carrying Fair amount value
80 80 2,001 2,001
54 54 663 663
58 58 696 696 3,972 3,972 580 580
1: Loans receivable and other receivables, including accounts receivable
2: Financial assets valued at fair value via statement of income
3: Other nancial liabilities
4: Financial assets and liabilities at fair value through other comprehensive income