PC9. Financial instruments

Financial items

SEKm

2017

2016

1)

The item other financial expenses includes financial fees and exchange rate differences. Exchange rate differences amounted to SEK 19m (–2), net.

Result from participations in subsidiaries

 

 

Dividends from subsidiaries

4,245

Group contributions received from subsidiaries

439

Group contributions paid to subsidiaries/Parent Company

–678

–225

Impairment of shares in subsidiaries

–1,269

 

 

 

Interest income and similar profit items

 

 

Interest income, external

0

Interest income, subsidiaries

491

16

 

 

 

Interest expenses and similar loss items

 

 

Interest expenses, external

–442

–16

Interest expenses, subsidiaries

–470

–13

Other financial expenses1)

–69

–6

IS Total

2,247

–244

Interest-bearing liabilities

Non-current interest-bearing liabilities

 

Carrying amount

 

Fair value

SEKm

2017

2016

 

2017

2016

Bond issues

35,288

18,204

 

35,670

18,828

Other non-current loans with a term > 1 yr < 5 yrs

4,444

1,505

 

4,419

1,499

Other non-current loans with a term > 5 yrs

1,965

3,297

 

1,823

3,207

BS Total

41,697

23,006

 

41,912

23,534

Current interest-bearing liabilities

 

Carrying amount

 

Fair value

SEKm

2017

2016

 

2017

2016

Bond issues

2,946

 

2,946

Loans with maturities of less than one year

1,500

 

1,500

BS Total

4,446

 

4,446

The counterparty for all outstanding bond issues within Svenska Cellulosa Aktiebolaget SCA was changed to Essity Aktiebolag in 2016. In 2017, the company also assumed all other non-current loans recognized in Svenska Cellulosa Aktiebolaget SCA’s balance sheet on December 31, 2016.

Bond issues

Issued

Maturity

Carrying amount, SEKm

Fair value, SEKm

Notes SEK 600m

2019

602

604

Notes SEK 900m

2019

899

910

Green bond SEK 1,500m

2019

1,499

1,521

Notes EUR 300m

2020

2,947

2,971

Notes EUR 500m

2021

4,895

4,895

Notes EUR 600m

2022

5,866

5,872

Notes EUR 500m

2023

4,884

5,265

Notes EUR 600m

2024

5,872

5,868

Notes EUR 300m

2025

2,944

2,888

Notes EUR 500m

2027

4,880

4,876

Total

 

35,288

35,670

Financial instruments by category

AP Accounting principles

In accordance with Paragraph 3 of RFR 2, the Parent Company has chosen not to apply IAS 39. The Parent Company recognizes financial fixed assets at cost less any impairment and financial current assets according to the lower of cost or market rule. For derivatives used for hedging purposes, recognition is determined by the hedged item. Currency derivatives used to hedge foreign receivables and liabilities are remeasured at the closing day rate to match the currency remeasurement in the receivable/liability. Interest rate derivatives used to hedge interest rate exposure in financial receivables or liabilities are recognized at fair value as of the 2017 fiscal year. The accounting principles for financial instruments are applied for the items below. The financial instruments in the Parent Company are classified as loans and trade receivables for assets, and other financial liabilities measured at amortized cost for liabilities. No other categories have been utilized over the past two years. These balance sheet items are not fully reconcilable since they may include items that are not financial instruments.

Loan and trade receivables

SEKm

2017

2016

Assets

 

 

Financial fixed assets

 

 

Interest-bearing receivables

51

21

Receivables from subsidiaries1)

435

Current assets

 

 

Receivables from subsidiaries1)

1,440

103

Other current receivables

1

Cash and bank balances

Total

1,927

124

Financial liabilities measured at amortized cost

SEKm

2017

2016

1)

The lines Receivables from subsidiaries include the carrying amount of financial derivatives in respect of subsidiaries of SEK 1,195m (103). The lines Liabilities to subsidiaries include the carrying amount of financial derivatives in respect of subsidiaries of SEK 408m (342). The net fair value of these derivatives amounts to SEK 787m (446). The nominal value of the derivatives is SEK 105,056m (31,560).

Liabilities

 

 

Non-current liabilities

 

 

Liabilities to subsidiaries1)

12

Interest-bearing liabilities

41,697

23,006

Current liabilities

 

 

Interest-bearing liabilities

4,446

Liabilities to subsidiaries1)

44,435

68,549

Accounts payables

29

4

Other current liabilities

284

135

Total

90,903

91,694