Note Financial risk management and hedge accounting
3
76
Disclosure of financial liabilities by maturity date, December 31, 2017
Total amount Less than 1 year
Between
1 and 2 years
Between
2 and 5 years More than 5 years
Non-current liabilities
Financial liabilities
Liabilities to banks and credit institutions 2,354 559 253 1,040 502
Other non-current liabilities 300 - - - 300
Total non-current liabilities 2,654 559 253 1,040 802
Interest on liabilities to banks and credit institutions 399 18 17 312 52
Total non-current liabilities and interest 3,053 577 270 1,352 854
Current liabilities
Financial liabilities
Liabilities to banks and credit institutions 628 628 - - -
Accounts payables 3,137 3,137 - - -
Derivative financial instruments 426 426 - - -
Accrued expenses 993 993 - - -
Other current liabilities 176 176 - - -
Total current liabilities 5,360 5,360 - - -
Interest on liabilities to banks and credit institutions 12 12 - - -
Total current liabilities and interest 5,372 5,372 - - -
Unused credit facilities available to the Group at the 2017 year-end
Total amount
Less than
1 year
Between
1 and 2 years
Between
2 and 5 years More than 5 years
Unused credit facilities 4,209 492 1,247 2,469 1
The Group’s cash and cash equivalents of SEK 737 million,
available credit facilities of SEK 7,518 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 receivable 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 singlelargest
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
AAK’s business in these countries is with large multinational
companies that also do business worldwide. The partners
with whom AAK 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.