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AAK Annual Report 2016

59 'LVFORVXUHRIILQDQFLDOOLDELOLWLHVE\PDWXULW\GDWH'HFHPEHU Total amount Less than 1 year Between 1 and 2 years Between DQG years More than \HDUV Non-current liabilities Financial liabilities Liabilities to banks and credit institutions 2,132 375 - 1,432 325 Other non-current liabilities 226 - - - 226 Total non-current liabilities - 1,432 Interest on liabilities to banks and credit institutions 495 11 - 299 185 Total non-current liabilities and interest - 1,731 736 Current liabilities Financial liabilities Liabilities to banks and credit institutions 287 287 - - - Accounts payables 2,383 2,383 - - - Derivative financial instruments 304 304 - - - Accrued expenses 672 672 - - - Other current liabilities 135 135 - - - Total current liabilities - - - Interest on liabilities to banks and credit institutions 1 1 - - - Total current liabilities and interest - - - 8QXVHGFUHGLWIDFLOLWLHVDYDLODEOHWRWKH*URXSDWWKH\HDUHQG Total amount Less than 1 year Between 1 and 2 years Between DQG\HDUV More than \HDUV Unused credit facilities 3,766 375 - 3,391 - The Group’s cash and cash equivalents of SEK 586 million, available credit facilities of SEK 3,665 million and future cash generated by the business are together deemed sufficient for the Group to meet its financial commitments. Credit risk The Company is exposed to credit risk primarily in relation to accounts receivables and customer contracts. Risk in the latter case is represented by customers’ failure to meet their commitments due to changes in market prices. Generally, AAK’s credit risks are significantly limited due to the stable, long-term business relationships we have with our customers and suppliers. The customer structure for the Group is such that its single-largest customer is responsible for less than 5 percent of its total sales, and the average customer corresponds to less than 1 percent. Nearly a quarter of the Group’s sales occur in countries where the political and commercial risks are deemed to be higher than in Western economies. However, we experience only a limited need for impairments even in these countries. This is largely due to the fact that a significant portion of our business in these countries is with large multinational companies that also do business worldwide. The partners with whom we do business are also primarily companies with which we have stable, long-term relationships. Each business segment is responsible for managing its customer credit risks, while our large production facilities are responsible for managing their counterparty risk in relation to raw material procurement. Provisions for doubtful accounts receivables 2016 Provisions at January 1 25 23 Provisions for potential losses 9 2 Unused amount reversed -2 0 Exchange differences 0 0 Provisions at December 31 32 Provisions for impairments are entirely related to accounts receivables. Total accounts receivables excluding provisions were SEK 3,059 million (2,401). Past due assets not considered impaired SEK million 2016 1–30 days 398 334 31–120 days 68 52 121–360 days 17 1 Over 360 days 0 0 Derivatives classified as financial instruments The Group had two classes of financial instruments (hedging instruments): raw material hedge contracts and currency hedge contracts. In December 2016 the Group only had derivative financial instruments that were measured at fair value. The fair value of the derivative financial instruments is measured using valuation methods and observable market data (methodology: level 2). The valuation methods applied are described in the accounting policy.


AAK Annual Report 2016
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