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Note 16 – Derivatives

The Group continuously hedges its assets denominated in foreign currencies in order to reduce its exchange rate exposure. As per 31 December 2021, the Group had exposures in EUR, GBP, PLN and RON, which are hedged using currency forward contracts. All outstanding derivatives are measured at fair value. Gains/losses on derivative instruments are recognised in the income statement for each annual statement. The effective part of hedge accounting in the Group is recognised in other comprehensive income for each annual statement.

The Parent Company Hoist Finance AB (publ) apply hedge accounting for the fair value of shares in subsidiaries and for shares and participations in joint ventures. Gains/losses on derivative instruments for hedge accounting in the Parent Company are recognised in shares in subsidiaries and in shares and participations in joint ventures. The Parent Company ceased its hedge accounting in GBP during 2021, as critical conditions for hedging are no longer met.

Additional information on the Group’s and the Parent Company’s management of hedge accounting is presented in Accounting Policies sections 10 and 22.8 “Hedge accounting”.

Derivatives held for trading

 Group 31 dec 2021
 Nominal amount/maturity   
SEK mUp to 1 year1-5 yearsOver 5 yearsNominal amountPositive market valuesNegative market values
Interest rate-related contracts      
Swaps8327921,4473,071620
Currency-related contracts      
Currency forwards2,357--2,35714-22
Total3,1897921,4475,42876-22
SEK m    Positive market valuesNegative market values
Currency breakdown of market values      
SEK    3-4
EUR    0-
GBP    34-2
PLN    39-16
RON00
Total    76-22

Derivatives for hedge accounting

 Group 31 dec 2021
 Nominal amount/maturity   
SEK mUp to 1 year1-5 yearsOver 5 yearsNominal amountPositive market valuesNegative market values
Currency-related contracts      
Currency forwards8,6248,624--122
Total8,6248,624--122
       
       
 Group 31 dec 2021
 Average exchange rate   
SEK mUp to 1 year1-5 yearsOver 5 yearsPositive market valuesNegative market values
Currency breakdown of market values      
SEK/GBP12.11-- --24
SEK/PLN2.17-- --98
Total    --122

Derivatives held for trading

 Group 31 dec 2020
 Nominal amount/maturity   
SEK mUp to 1 year1-5 yearsOver 5 yearsNominal amountPositive market valuesNegative market values
Interest rate-related contracts      
Swaps776 2,057 2,833 -40 
Currency-related contracts      
Currency forwards1,648 1,648 27 -3 
Total2,424 2,057 4,481 27 -43 
SEK m    Positive market valuesNegative market values
Currency breakdown of market values      
SEK    -3 
EUR    10 -13 
GBP    12 -17 
PLN    -10 
Total    27 -43 

Derivatives for hedge accounting

 Group 31 dec 2020
 Nominal amount/maturity   
SEK mUp to 1 year1-5 yearsOver 5 yearsNominal amountPositive market valuesNegative market values
Currency-related contracts      
Currency forwards9,141 9,141 214 
Total9,141 9,141 214 
       
 Group 31 dec 2020
 Average exchange rate   
SEK mUp to 1 year1-5 yearsOver 5 yearsPositive market valuesNegative market values
Currency breakdown of market values      
SEK/GBP11.38  135 
SEK/PLN2.26  79 
Total    214 

Hedging instruments and effectiveness in the hedge accounting 2021

 Group
  Carrying amount     
SEK mNominal amountAssetsLiabilitiesBalance sheet item in which the hedging instrument is includedChange in fair value used to calculate ineffectiveness for the periodChange in value of the hedging instrument recognised in other comprehensive incomeIneffectiveness recognised in the income statementIncome statement item which include the ineffectiveness
Currency-related contracts        
GBP - Derivatives, negative values4,808--24Other liabilities-26-260Net result from
financial transactions
PLN - Derivatives, negative values3,816--98Other liabilities-15-150Net result from
financial transactions
Total8,624--122 -41-410 


Hedging instruments and effectiveness in the hedge accounting 2020

 Group
  Carrying amount     
SEK mNominal amountAssetsLiabilitiesBalance sheet item in which the hedging instrument is includedChange in fair value used to calculate ineffectiveness for the periodChange in value of the hedging instrument recognised in other comprehensive incomeIneffectiveness recognised in the income statementIncome statement item which include the ineffectiveness
Currency-related contracts        
GBP - Derivatives, positive values5,221 135 Other assets66 66-Net result from
financial transactions
PLN - Derivatives, positive values3,920 79 Other assets-72 -72  -Net result from
financial transactions
Total9,141 214  -6 -6 - 

Hedged items 2021

GROUP
SEK mChange in fair value used to calculate ineffectiveness for the periodHedge reserveAmounts remaining in the hedging relationships for which hedge accounting is no longer applied
Hedging of foreign exchange risk in net investments in foreign operations   
EUR--149-149
GBP-499-169-
PLN-31-276-
Total-530-594-149

Hedged items 2020

GROUP
SEK mChange in fair value used to calculate ineffectiveness for the periodHedge reserveAmounts remaining in the hedging relationships for which hedge accounting is no longer applied
Hedging of foreign exchange risk in net investments in foreign operations   
EUR-149 -149 
GBP568 -143 
PLN257 -264 
Total825 -556 -149 

Hedged items 2021

PARENT COMPANY
 Carrying amount hedged itemAccumulated fair value adjustment included in the carrying amount of the hedged item  
SEK mAssetsLiabilitiesBalance sheet item in which the hedged item is includedChange in value of hedged items used to determine ineffeciency for the period
Fair value hedges    
GBP--Shares and participations in subsidiaries and joint ventures-21
PLN152-45Shares and participations in subsidiaries and joint ventures-47
Total152-45 -68

Hedged items 2020

 Parent company 
 Carrying amount hedged itemAccumulated fair value adjustment included in the carrying amount of the hedged item  
SEK mAssetsLiabilitiesBalance sheet item in which the hedged item is includedChange in value of hedged items used to determine ineffeciency for the period
Fair value hedges    
GBP335  -21Shares and participations in subsidiaries and joint ventures19 
PLN147  -47Shares and participations in subsidiaries and joint ventures10 
Total482  -68 29 

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