G4. Transactions with related parties
Up until the split of SCA into two listed companies, Essity had a number of transactions with SCA units, both the former Forest Products business areas and the Parent Company Svenska Cellulosa Aktiebolaget SCA. These transactions and dealings are outlined in the table below for all fiscal years. In relation to remuneration of senior executives, refer to Note C3 Remuneration of senior executives and for disclosures regarding transactions with associates, joint ventures and joint operations in Notes F3 Joint ventures and associates and F4 Joint operations.
Purchases from Forest Products relate primarily to pulp used in Essity’s manufacturing process. Pricing between units has adhered to the transfer pricing policy that applied at the SCA Group. Other income relates to management fees that are invoiced to Forest Products for such items as management functions and which have been allocated to Essity in connection with the preparation of the combined financial statements. The financial income is attributable to the internal bank’s lending to Forest Products.
The most significant dealing during the presented fiscal years relates to the lending that SCA Hygiene has conducted via the internal bank to Forest Products, which is classified as current financial receivables, Group companies. Transactions in the form of lending and reallocation of net debt have been classified as transactions with shareholders in equity, refer to Note E8 Equity. The acquisition by Essity Aktiebolag (publ) on December 30, 2016 of the companies and operations that constitute the Tissue and Personal Care operating segments as well as SCA’s internal bank is the reason for the major change in internal financial receivables and transactions with shareholders in equity in 2016.
In conjunction with the transfer outlined above, Essity Aktiebolag (publ) assumed the majority of the external financing that existed in SCA. The remaining financial dealings between Essity and SCA were settled in conjunction with the split of the Group into two listed companies on June 15, 2017.
SEKm |
2017 |
2016 |
2015 |
Sales |
– |
– |
– |
Purchases |
214 |
511 |
482 |
Other income |
– |
56 |
57 |
Financial income |
70 |
108 |
132 |
Financial expenses |
–9 |
–2 |
–2 |
Non-current receivables, Group companies |
– |
– |
39 |
Non-current financial receivables, Group companies |
– |
3 |
3 |
Current receivables, Group companies |
– |
57 |
166 |
Of which, trade receivables |
– |
18 |
79 |
Of which, currency derivatives |
– |
33 |
10 |
Of which, energy derivatives |
– |
6 |
77 |
Current financial receivables, Group companies |
– |
1,433 |
12,207 |
Non-current liabilities, Group companies |
– |
48 |
– |
Of which, currency derivatives |
– |
12 |
– |
Of which, energy derivatives |
– |
36 |
– |
Current liabilities, Group companies |
– |
259 |
341 |
Of which, trade payables |
– |
100 |
106 |
Of which, currency derivatives |
– |
64 |
29 |
Of which, energy derivatives |
– |
58 |
3 |
Of which, other current liabilities |
– |
37 |
203 |
Current financial liabilities, Group companies |
– |
485 |
852 |