PC10. Financial instruments

AP Accounting principles

The Parent Company’s financial instruments are recognized in accordance with the Group’s accounting principles. Refer to Notes E1, E2, E3 and E4. Hedge accounting was not applied by the Parent Company.

Financial items

SEKm

2019

2018

1)

Dividends in 2018 include the gain from the liquidation of Essity Capital NV totaling SEK 7,207m.

2)

The item other financial expenses includes financial fees and exchange rate differences. Exchange rate differences amounted to SEK –1m (6), net.

 

 

 

Result from participations in Group companies

 

 

Dividends from subsidiaries1)

4,044

16,255

Group contributions received from Group companies

1,466

2,144

Group contributions paid to subsidiaries

–57

Impairment of shares in subsidiaries

–8

–52

 

 

 

Interest income and similar profit items

 

 

Interest income, external

11

8

Interest income, Group companies

266

321

 

 

 

Interest expenses and similar loss items

 

 

Interest expenses, external

–523

–532

Interest expenses, Group companies

–614

–460

Other financial expenses2)

–33

–36

IS Total

4,552

17,648

Interest-bearing liabilities

Non-current interest-bearing liabilities

 

Carrying amount

 

Fair value

SEKm

2019

2018

 

2019

2018

Bond issues

31,164

33,767

 

32,299

34,427

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

5,222

3,406

 

5,238

3,425

Other non-current loans with a term > 5 yrs

2,053

 

1,960

BS Total

36,386

39,226

 

37,537

39,812

Current interest-bearing liabilities

 

Carrying amount

 

Fair value

SEKm

2019

2018

 

2019

2018

Bond issues

3,000

 

3,000

Loans with maturities of less than one year

5,022

3,430

 

5,022

3,430

BS Total

5,022

6,430

 

5,022

6,430

Bond issues

Issued

Maturity

Carrying amount,
SEKm

Fair value,
SEKm

Interest rate
%

Notes EUR 500m

2021

5,205

5,251

0.50

Notes EUR 600m

2022

6,234

6,321

0.63

Notes EUR 500m

2023

5,191

5,600

2.50

Notes EUR 600m

2024

6,233

6,434

1.13

Notes EUR 300m

2025

3,122

3,219

1.13

Notes EUR 500m

2027

5,179

5,474

1.63

Total

 

31,164

32,299

 

Financial instruments by category

AP Accounting principles

In 2019, the categories of financial instruments in the Parent company compriced in accordance with IFRS 9 financial assets and liabilities measured at fair value through profit or loss and amortized cost. All of the Parent Company’s financial assets and liabilities measured at fair value through profit or loss are assessed according to measurement level 2. A definition is provided in Note E1. Financial assets measured at amortized cost are continuously reviewed to assess the need for credit loss provisions. If there is a material need for credit loss provisions, a provision is made in accordance with the expected credit loss model.

Financial instruments by category

SEKm

Note

2019

2018

 

 

 

 

Financial assets measured at fair value through profit or loss

 

 

 

Derivatives with Group companies – Non-current financial assets

PC8

545

507

Endowment insurances – Other non-current receivables

 

227

213

Derivatives with Group companies – Current financial assets

PC8

56

158

Total

 

828

878

 

 

 

 

Financial liabilities measured at fair value through profit or loss

 

 

 

Derivatives with Group companies – Current financial liabilities

PC8

396

229

Total

 

396

229

 

 

 

 

Loan and trade receivables measured
at amortized cost

 

 

 

Current interest-bearing receivables with Group companies

PC8

502

Trade receivables with Group companies

PC8

239

211

Trade receivables – other current receivables

 

1

0

Total

 

240

713

 

 

 

 

Financial liabilities measured at amortized cost

 

 

 

Non-current interest-bearing liabilities

 

36,386

39,226

Current interest-bearing liabilities to Group companies

PC8

44,580

40,816

Current interest-bearing liabilities

 

5,022

6,430

Trade payables to Group companies

PC8

20

32

Trade payables

 

16

20

Other current liabilities to Group companies

PC8

1

3

Other current liabilities

 

274

297

Total

 

86,299

86,824

The nominal value of the derivatives before the right of set-off is SEK 52,915m (136,392). The nominal value of the derivatives after the right of set-off is SEK 40,309m (56,561).