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F1 Financial risk management (Tables) | 12 Months Ended
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Dec. 31, 2020
Disclosure Of Financial Risk Management [Abstract] |
Summary of Capital Objectives-Related Information |
Capital objectives-related information, SEK billion |  |
|  | 2020 |  | 2019
Free cash ﬂow before M&A 1) |  | 22.3 |  | 7.6
Positive net cash 1) |  | 41.9 |  | 34.5
Credit rating |  |  |  |
Fitch |  | BBB-, stable |  | BBB-, stable
Standard & Poor’s |  | BBB-, stable |  | BB+,positive
Moody´s |  | Ba1, stable |  | Ba2,positive
1) For more information about the measures, see Alternative performance measures and Financial terminology.
Summary of Net Exposure for Largest Currencies Impact on Sales | The table below presents the net exposure for the largest currencies impact on sales and also net external transaction exposure of these currencies on profitability. The internal transaction exposures will not impact group profitability if all related transactions occur and are recognized in the profit and loss in the same month. Any effect on profit and loss is a function of timing and FX volatility, therefore impossible to predict.
Currency exposure, SEK billion |  |  |  |  |  |  |  |
Exposure currency |  | Sales translation exposure |  | Sales transaction exposure |  | Sales net exposure |  | Net external transaction exposure 1) |  | Net internal transaction exposure 2)
USD 3) |  | 76.7 |  | 36.4 |  | 113.1 |  | (12.3) |  | 39.6
EUR |  | 26.0 |  | 9.5 |  | 35.5 |  | 12.5 |  | (6.4)
CNY |  | 15.3 |  | (0.1) |  | 15.2 |  | 3.0 |  | (8.8)
INR |  | 7.0 |  | (0.2) |  | 6.8 |  | 0.2 |  | (3.3)
AUD |  | 9.0 |  | (0.5) |  | 8.5 |  | 0.2 |  | 4.3
JPY |  | 11.8 |  | — |  | 11.8 |  | 0.1 |  | 9.1
BRL |  | 2.9 |  | — |  | 2.9 |  | 1.0 |  | (0.5)
SAR |  | 7.0 |  | 1.5 |  | 8.5 |  | 1.6 |  | 2.0
GBP |  | 6.1 |  | (0.7) |  | 5.4 |  | (1.0) |  | 2.2
1) Net external sales and purchases in foreign currency. 2) Internal sales and purchases in foreign currency.
3) | Sales transaction exposure in 2020 includes volume in the cash flow hedge of USD 517 million. Based on the outstanding cash flow hedge volume at year end, the hedged sales volume that will occur in 2021 is USD 200 million.
Summary of Sensitivity to Interest Rate Increase of One Basis Point |
Sensitivity to interest rate increase of 1 basis point, SEK million |  |  |  |  |  |  |  |  |  |
|  | < 3M |  | 3–12M |  | 1–3Y |  | 3–5Y |  | >5Y |  | Total
Interest-bearing assets |  | — |  | — |  | (4) |  | (2) |  | — |  | (6)
Interest-bearing liabilities 1) |  | — |  | — |  | 2 |  | 4 |  | 1 |  | 7
Derivatives |  | — |  | — |  | — |  | — |  | 1 |  | 1
Total |  | — |  | — |  | (2) |  | 2 |  | 2 |  | 2
1) | Borrowings are included as they are designated FVTPL.
Disclosure of Outstanding Derivatives | Outstanding derivatives
Outstanding derivatives |  |  |  |  |  |  |  |
2020 |  | Gross amount recognized |  | Offset |  | Net amount presented |  | Related amounts not offset – collaterals |  | Net
Currency derivatives 1) |  |  |  |  |  |  |  |  |  |
Assets |  | 1,491 |  | (7) |  | 1,484 |  | (1,181) |  | 303
Liabilities |  | (141) |  | 7 |  | (134) |  | — |  | (134)
Interest rate derivatives |  |  |  |  |  |  |  |  |  |
Assets |  | 57 |  | (31) |  | 26 |  | — |  | 26
Liabilities |  | (131) |  | 31 |  | (100) |  | — |  | (100)
Outstanding derivatives |  |  |  |  |  |  |  |
2019 |  | Gross amount recognized |  | Offset |  | Net amount presented |  | Related amounts not offset – collaterals |  | Net
Currency derivatives 1) |  |  |  |  |  |  |  |  |  |
Assets |  | 155 |  | (54) |  | 101 |  | — |  | 101
Liabilities |  | (885) |  | 54 |  | (831) | 1) | 539 |  | (292)
Interest rate derivatives |  |  |  |  |  |  |  |  |  |
Assets |  | 77 |  | (36) |  | 41 |  | — |  | 41
Liabilities |  | (201) |  | 36 |  | (165) |  | — |  | (165)
1) | In 2020, currency derivatives designated as cash flow hedge of SEK 127million are included in Other current assets (SEK 290 million in Other current liabilities).
Summary of Currency Derivatives Designated as Hedging Instruments | The Company holds the following currency derivatives designated as hedging instruments:
Foreign exchange forward contracts |  |  |  |
2020 |  |  |  |  |  | < 1 year
Notional Amount (USD millions) |  |  |  |  |  | 200
Average forward rate (SEK/USD) |  |  |  |  |  | 8.8238
Summary of Movements in Allowances for Impairment of Trade Receivables and Contract Assets |
Movements in allowances for impairment of trade receivables and contract assets
|  | 2020 |  | 2019
Opening balance |  | 2,983 |  | 4,123
Decrease in allowance |  | (118) |  | (737)
Write-offs |  | (136) |  | (382)
Translation difference |  | (211) |  | (21)
Closing balance 1) |  | 2,518 |  | 2,983
1) | Of which SEK 1 (0) million relates to contract assets.
Summary of Aging Analysis of Gross Values of Trade Receivables and Contracts Assets by Risk Category |
Aging analysis of gross values of trade receivables and contracts assets by risk category at December 31, 2020
|  | Not due |  | Days past dues |  | Total
|  |  |  | 1-90 |  | 91-180 |  | 181-360 |  | >360 |  |
Country risk: Low |  | 33,620 |  | 517 |  | 63 |  | 105 |  | 308 |  | 34,613
Country risk: Medium |  | 13,487 |  | 1,243 |  | 338 |  | 346 |  | 753 |  | 16,167
Country risk: High |  | 3,023 |  | 394 |  | 223 |  | 275 |  | 1,159 |  | 5,074
Total past due |  | 50,130 |  | 2,154 |  | 624 |  | 726 |  | 2,220 |  | 55,854
Summary of Outstanding Customer Finance Credit Exposure | The table below summarizes the Company’s outstanding customer finance as of December 31, 2020 and 2019.
Outstanding customer ﬁnance credit risk exposure 1) |  |
|  | 2020 |  | 2019
Fair value of customer ﬁnance credits |  | 3,137 |  | 3,756
Financial guarantees for third-parties |  | 5 |  | 24
Accrued interest |  | 8 |  | 14
Maximum exposure to credit risk |  | 3,150 |  | 3,794
Less third-party risk coverage |  | (95) |  | (309)
The Company’s risk exposure, less third-party risk coverage |  | 3,055 |  | 3,485
1) | This table has been adjusted to show the maximum exposure to credit risk.
Disclosure of Customer Finance Fair Value Reconciliation |
Customer ﬁnance fair value reconciliation |  |  |  |
|  | 2020 |  | 2019
Opening balance |  | 3,756 |  | 2,884
Additions |  | 24,765 |  | 29,732
Disposals/repayments |  | (25,069) |  | (28,032)
Revaluation |  | (66) |  | (804)
Translation difference |  | (249) |  | (24)
Closing balance |  | 3,137 |  | 3,756
Of which non-current |  | 1,221 |  | 2,262
Summary of Cash, Cash Equivalents and Interest-Bearing Securities |
Cash, cash equivalents, interest bearing securities and derivative assets |
2020 |  | Rating or equivalent |  | < 3 M |  | 3–12 M |  | 1–5 Y |  | >5 Y |  | Total
Bank deposits |  |  |  | 26,829 |  | 130 |  | 16 |  | — |  | 26,975
Other financial institutions |  |  |  | 202 |  | — |  | — |  | — |  | 202
Type of issuer: |  |  |  |  |  |  |  |  |  |  |  |
Governments |  | AAA |  | 15,000 |  | 605 |  | 12,483 |  | 395 |  | 28,483
Corporates |  | A2/P2 |  | 1,960 |  | — |  | — |  | — |  | 1,960
Mortgage institutes |  | AAA |  | 216 |  | 3,969 |  | 10,240 |  | — |  | 14,425
Derivative assets |  |  |  | 189 |  | 346 |  | 975 |  | — |  | 1,510
|  |  |  | 44,396 |  | 5,050 |  | 23,714 |  | 395 |  | 73,555
2019 |  | Rating or equivalent |  | < 3 M |  | 3–12 M |  | 1–5 Y |  | >5 Y |  | Total
Bank deposits |  |  |  | 35,006 |  | 309 |  | 1 |  | — |  | 35,316
Other financial institutions |  |  |  | 294 |  | — |  | — |  | — |  | 294
Type of issuer: |  |  |  |  |  |  |  |  |  |  |  |
Banks |  |  |  | 441 |  | 213 |  | — |  | — |  | 654
Governments |  | AAA |  | 4,028 |  | 1,590 |  | 8,361 |  | 906 |  | 14,885
Corporates |  | A2/P2 |  | 5,305 |  | — |  | — |  | — |  | 5,305
Mortgage institutes |  | AAA |  | 278 |  | 3,832 |  | 11,088 |  | — |  | 15,198
Other financial institutions |  | A2 |  | 490 |  | 50 |  | — |  | — |  | 540
Derivative assets |  |  |  | 4 |  | 3 |  | 135 |  | — |  | 142
|  |  |  | 45,846 |  | 5,997 |  | 19,585 |  | 906 |  | 72,334
Summary of Funding Programs |
Funding programs 1) |  |  |  |  |  |
|  | Amount |  | Utilized |  | Unutilized
Euro Medium-Term Note program (USD million) |  | 5,000 |  | 1,577 |  | 3,423
SEC Registered program (USD million) 2) |  |  |  | 1,000 |  |
1) | There are no financial covenants related to these programs.
2) | Program amount indeterminate.
Summary of Committed Credit Facilities |
Committed credit facilities |  |  |  |  |  |
|  | Amount |  | Utilized |  | Unutilized
Multi-currency revolving credit facility (USD million) |  | 2,000 |  | — |  | 2,000
European Investment Bank (EIB) credit facility (EUR million) |  | 250 |  | — |  | 250
Summary of Financial Instruments |
Financial instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2020 |  | 2019
|  | Amortized |  | Fair |  | Fair value hierarchy level |  |  | Amortized |  | Fair |  | Fair value hierarchy level |
|  | cost |  | value |  | Level 1 |  | Level 2 |  | Level 3 |  |  | cost |  | value |  | Level 1 |  | Level 2 |  | Level 3 |
Assets at fair value through profit or loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer finance |  | — |  | 3.1 |  | — |  | — |  | 3.1 |  |  | — |  | 3.8 |  | — |  | — |  | 3.8 |
Interest bearing securities |  | — |  | 28.1 |  | 28.1 |  | — |  | — |  |  | — |  | 26.6 |  | 26.6 |  | — |  | — |
Cash equivalents 3) |  | — |  | 23.6 |  | — |  | 23.6 |  | — |  |  | — |  | 23.9 |  | — |  | 23.9 |  | — |
Other financial assets 1) |  | — |  | 1.5 |  | — |  | — |  | 1.5 |  |  | — |  | 1.4 |  | 0.2 |  | — |  | 1.2 |
Other current assets 2) |  | — |  | 1.5 |  | — |  | 1.5 |  | — |  |  | — |  | 1.3 |  | — |  | 0.1 |  | 1.2 |
Assets at fair value through OCI |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade receivable |  | — |  | 42.1 |  | — |  | — |  | 42.1 |  |  | — |  | 43.1 |  | — |  | — |  | 43.1 |
Assets at amortized cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing securities |  | 0.4 |  | — |  | — |  | — |  | — |  |  | 0.5 |  | — |  | — |  | — |  | — |
Cash equivalents 3) |  | 3.6 |  | — |  | — |  | — |  | — |  |  | 3.8 |  | — |  | — |  | — |  | — |
Other financial assets |  | 0.5 |  | — |  | — |  | — |  | — |  |  | 0.2 |  | — |  | — |  | — |  | — |
Financial assets |  | 4.5 |  | 99.9 |  |  |  |  |  |  |  |  | 4.5 |  | 100.1 |  |  |  |  |  |  |
Financial liabilities at designated FVTPL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Parent Company borrowings |  | — |  | (27.2) |  | (18.9) |  | (8.3) |  | — |  |  | — |  | (35.9) |  | (20.5) |  | (15.4) |  | — |
Financial liabilities at FVTPL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other current liabilities |  | — |  | (0.2) |  | — |  | (0.2) |  | — |  |  | — |  | (1.0) |  | — |  | (1.0) |  | — |
Liabilities at amortized cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade payables |  | (32.0) |  | — |  | — |  | — |  | — |  |  | (30.4) |  | — |  | — |  | — |  | — |
Borrowings |  | (2.9) |  | — |  | — |  | — |  | — |  |  | (1.8) |  | — |  | — |  | — |  | — |
Financial liabilities |  | (34.9) |  | (27.4) |  |  |  |  |  |  |  |  | (32.2) |  | (36.9) |  |  |  |  |  |  |
1) | Other financial assets in Level 3 relate to investment in equity interests which are included in “Other investments in shares and participants” within note F3 “Financial assets, non-current.”
2) Oher current asset in Level 3 at the end of 2019 relates to a financial investment which was fully redeemed in 2020. 3) Total Cash and cash equivalent is SEK 43.6 (45.1) billion, of which SEK 27.2 (27.7) billion relating to Cash equivalents are presented in the table above.

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