Financing risk refers to the risk that the financing of the Group's capital requirements and the refinancing of existing loans could become more difficult or more costly. This risk can be decreased by ensuring that maturity dates are evenly distributed over time, and that total short-term borrowings do not exceed available liquidity. Disregarding seasonal variations, net debt shall be long-term, according to the Financial Policy.
The Group's goals for long-term borrowings include an average time to maturity of at least two years, and an even distribution of maturities. A maximum of SEK 3,000m in long-term borrowings is normally allowed to mature in the next 12-month period. When Husqvarna assesses its refinancing risk, the maturity profile is adjusted for available unutilized committed credit facilities. In addition, seasonality in the cash flows is an important factor in the assessment of the financing risk. Consequently, Husqvarna always takes into account the fact that financial planning must include future seasonal fluctuations.
The average adjusted time to maturity for the Group's financing was 3.9 years (4.3) at the end of 2012, taking the unutilized part of committed credit facilities into account.
|Maturity profile of loans and other financial instruments as of December 31, 2012 1)|
|Bank and other loans||591||945||21||1,485||-||71||3,113|
|Derivative liabilities, balance sheet2)||259||51||12||12||-||-||334|
|Unutilized committed revolving credit facilities||-6,000||-||-||6,000||-||-||-|
|Adjusted maturity profile||-4,383||1,132||1,655||8,120||1,608||855||8,987|
|Liquid funds excl. derivative assets||-1,245||-||-||-||-||-||-1,245|
|1) Please note that the table includes the forecast future nominal interest payment and, thus, does not correspond to the net book value in the balance sheet.|
|2) For more detailed information on derivative contracts, see tabel under "Credit risk in financial activities" in Note 2 on page 72 in the Annual Report 2012.|