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F1 Financial risk management (Tables)
 12 Months Ended
Dec. 31, 2023
Disclosure Of Financial Risk Management [Abstract]  
Summary of Capital Objectives-Related Information
Capital objectives-related information
 
      2023      2022  
Free cash flow before M&A as % of net sales
1)
      –0.4%        8.2%  
Positive net cash (SEK billion)
1)
      7.8        23.3  
Credit rating and outlook
   
 
 
 
   
 
 
 
Fitch Ratings
      BBB–, stable        BBB–, stable  
S&P Global
     
 BBB–,
developing		  
 		     
 BBB–,
developing		  
 
Moody’s
      Ba1, stable        Ba1, stable  
 
1)
For more information about the measures, see Alternative performance measures and Financial terminology.
Summary of Net Exposure for Largest Currencies Impact on Sales
Currency exposure, SEK billion
 
Exposure
currency		   Sales
trans-
lation
exposure		     Sales
trans-
action
exposure		     Sales net
exposure		     Cost
trans-
lation
exposure		     Cost
trans-
action
exposure 
1)
     Cost
net
exposure		  
USD
2)
     81.7       55.6       137.3       –62.2       –42.4       –104.6  
EUR
     40.9       –0.5       40.4       –37.3       –2.6       –39.9  
INR
     31.2       –0.7       30.5       –19.9       0.2       –19.7  
JPY
     10.1       –       10.1       –4.1       –       –4.1  
GBP
     9.1       –1.0       8.1       –3.6       –       –3.6  
CNY
     7.8       –       7.8       –5.7       1.1       –4.6  
SAR
     5.6       0.4       6.0       –3.5       0.1       –3.4  
BRL
     5.0       –       5.0       –4.1       1.2       –2.9  
 
1)
 
External purchases in foreign currency translated to functional currency.
2)
 
Sales transaction exposure in 2023 includes volume in the cash flow hedge of USD 2,462 million. Based on the outstanding cash flow hedge volume at year end, the hedged sales volume that will occur in 2024 is USD 2,467 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
     –       –1       –1       –1       –        –3  
Interest-bearing liabilities
1)
     –       –       –       5       4        9  
Derivatives
     –       –1    
 
 
 
     –2       –3        –4  
Total
  
 
–
 
  
 
–1
 
  
 
–
 
  
 
2
 
  
 
1
 
   
 
2
 
 
1)
 
Borrowings are included as they are designated FVTPL.
Disclosure of Outstanding Derivatives
Outstanding derivatives
 
Outstanding derivatives
 
2023   Gross
amount
recognized		     Offset     Net
amount
presented		     Related
amounts
not offset
– collaterals		     Net  
Currency derivatives
1)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Assets
     1,916       –43       1,873       –1,486       387  
Liabilities
     –1,837       43       –1,794       873        –921  
Interest rate derivatives
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Assets
     –       –       –       –       –  
Liabilities
     –22       –       –22       –       –22  
2022   Gross
amount
recognized		     Offset     Net
amount
presented		     Related
amounts
not offset
– collaterals		     Net  
Currency derivatives
1)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Assets
     1,275       –165       1,110       –277       833  
Liabilities
     –2,778       165       –2,613       2,382        –231  
Interest rate derivatives
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Assets
     11       –       11       –       11  
Liabilities
     –8       –       –8       –       –8  
 
1)
 
Currency derivatives designated as cash flow hedge of SEK 1,617 (566) million are included in Other current receivables and SEK 679 (1,472) million in Other current liabilities.
Summary of Currency Derivatives Designated as Hedging Instruments
Foreign exchange forward contracts
2023    < 3
months		      3 – 12
months		     > 1 year      Total
Notional Amount (USD millions)
      1,091        1,376       1,888      4,355
Average forward rate (SEK/USD)
      9.81        10.46       10.03     
 
Summary of Movements in Allowances for Impairment of Trade Receivables and Contract Assets
Movements in allowances for impairment of trade receivables and contract assets
 
        2023        2022  
Opening balance
      2,492        2,398  
Balances regarding acquired business
      –16        90  
Increase in allowance
      268        40  
Write-offs
      –35        –70  
Translation difference
      –124        34  
Closing balance
   
 
2,585
 
   
 
2,492
 
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		  
          Days past dues        
2023   Not due      1–90      91–180      181–360      >360      Total  
Country risk :Low
     27,431       2,434       445       137       320       30,767  
Country risk: Medium
     14,369       826       227       224       605       16,251  
Country risk: High
     3,364       512       186       197       1,522       5,781  
Total
  
 
45,164
 
  
 
3,772
 
  
 
858
 
  
 
558
 
  
 
2,447
 
  
 
52,799
 
 
          Days past dues        
2022   Not due      1–90      91–180      181–360      >360      Total  
Country risk :Low
     32,015       2,090       165       103       328       34,701  
Country risk: Medium
     17,731       1,614       150       134       585       20,214  
Country risk: High
     3,304       610       384       295       1,240       5,833  
Total
  
 
53,050
 
  
 
4,314
 
  
 
699
 
  
 
532
 
  
 
2,153
 
  
 
60,748
 
Summary of Outstanding Customer Finance Credit Exposure
Outstanding customer finance credit risk exposure
1)
 
   
 
 
 
        2023        2022  
Fair value of customer finance credits
      6,917        5,370  
Financial guarantees for third-parties
      4        6  
Accrued interest
      7        8  
Maximum exposure to credit risk
   
 
6,928
 
   
 
5,384
 
Less third-party risk coverage
      –79        –298  
The Company’s risk exposure, less third-party risk coverage
   
 
6,849
 
   
 
5,086
 
 
1)
This table shows the maximum exposure to credit risk.
Disclosure of Customer Finance Fair Value Reconciliation
Customer finance fair value reconciliation
                
        2023        2022  
Opening balance
      5,370        3,287  
Additions
      49,583        37,295  
Disposals/repayments
      –47,409        –35,412  
Revaluation/amortization of interest
      –467        –151  
Translation difference
      –160        351  
Closing balance
   
 
6,917
 
   
 
5,370
 
 Of which non-current
   
 
1,347
 
   
 
415
 
Summary of Cash, Cash Equivalents and Interest-Bearing Securities
Cash, cash equivalents, interest bearing securities and derivative assets  
2023   
Rating
or equi-
valent
      < 3 M      3–12 M      1–5 Y      >5 Y      Total  
Bank deposits
   
 
 
 
      33,298        181        —        —        33,479  
Other financial institutions
   
 
 
 
      548        —        —        —        548  
Type of issuer:
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Governments
      AA/AAA        789        490        1,254        —        2,533  
Corporates
      A2/P2        1,510        296        —        —        1,806  
Mortgage institutes
      AAA        1,995        5,668        8,676        —        16,339  
Derivative assets
   
 
 
 
      445        749        622        35        1,851  
 
   
 
 
 
   
 
38,585
 
   
 
7,384
 
   
 
10,552
 
   
 
35
 
   
 
56,556
 
 
2022    Rating
or equi-
valent		      < 3 M      3–12 M      1–5 Y      >5 Y      Total  
Bank deposits
   
 
 
 
      38,485        166        7        —        38,658  
Other financial institutions
   
 
 
 
      604        —        —        —        604  
Type of issuer:
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Governments
      AA/AAA        915        3,950        277        —        5,142  
Corporates
      A2/P2        1,283        —        —        —        1,283  
Mortgage institutes
      AAA        —        1,682        8,880        —        10,562  
Derivative assets
   
 
 
 
      323        385        277        136        1,121  
 
   
 
 
 
   
 
41,610
 
   
 
6,183
 
   
 
9,441
 
   
 
136
 
   
 
57,370
 
Summary of Funding Programs
Funding programs
1)
                       
      Amount      Utilized      Unutilized  
Euro Medium Term Note program (USD million)
      5,000        2,842        2,158  
SEC Registered program (USD million)
2)
      —        —        —  
Commercial Paper Program (SEK million)
      10,000        2,014        7,986  
 
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  
Liquidity revolving credit facility
(USD million)
     1,000       400       600  
Summary of Reconciliation of Level 3 Fair Value of Other Financial Asset Investment in Shares and Participations





Reconciliation of Level 3 fair value of other financial asset  
       Investment in shares
and participations		  
Opening balance
      1,986  
Additions
      206  
Disposals
      –2  
Gains or losses
1)
      –186  
Translation differences
      –2  
Closing balance
   
 
2,002
 
 
1)
 
Table shows net gains or losses recognized in Other operating income or expenses, of which SEK 186 million unrealized loss relate to Level 3 assets held at the end of the year.
Summary of Financial Instruments













































Financial instruments
  
      2023              2022  
     Amortized      Fair      Fair value hierarchy level             Amortized      Fair      Fair value hierarchy level  
SEK billion    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
      –        6.9        –        –        6.9     
 
 
 
      –        5.4        –        –        5.4  
Interest-bearing securities
      –        19.1        18.6        0.5        –     
 
 
 
      –        17.5        17.5        –        –  
Cash equivalents
1)
      –        17.5        0.8        16.7        –     
 
 
 
      –        15.7        –        15.7        –  
Other financial assets
      –        2.1        0.1        –        2.0     
 
 
 
      –        2.1        0.1        –        2.0  
Other current assets
      –        1.9        –        1.9        –     
 
 
 
      –        1.1        –        1.1        –  
Assets at fair value through OCI
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Trade receivable
      –        42.2        –        –        42.2     
 
 
 
      –        48.4        –        –        48.4  
Assets at amortized cost
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Interest-bearing securities
      0.4        –        –        –        –     
 
 
 
      0.4        –        –        –        –  
Cash equivalents
1)
      –        –        –        –        –     
 
 
 
      2.9        –        –        –        –  
Other financial assets
      0.6        –        –        –        –     
 
 
 
      0.6        –        –        –        –  
Financial assets
   
 
1.0
 
   
 
89.7
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
3.9
 
   
 
90.2
 
   
 
 
 
   
 
 
 
   
 
 
 
                       
Financial liabilities at designated
                                                                                                   
FVTPL
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Parent Company borrowings
      –        –38.0        –23.7        –14.3        –     
 
 
 
      –        –29.6        –16.7        –12.9        –  
Financial liabilities at FVTPL
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Other current liabilities
      –        –1.8        –        –1.8        –     
 
 
 
      –        –2.6        –        –2.6        –  
Liabilities at amortized cost
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Trade payables
      –27.8        –        –        –        –     
 
 
 
      –38.4        –        –        –        –  
Borrowings
      –8.9        –        –        –        –     
 
 
 
      –3.3        –        –        –        –  
Financial liabilities
   
 
–36.7
 
   
 
–39.8
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
–41.7
 
   
 
–32.2
 
   
 
 
 
   
 
 
 
   
 
 
 
 
1)
Total Cash and cash equivalent is SEK 35.2 (38.3) billion, of which SEK 17.5 (18.6) billion relating to Cash equivalents are presented in the table above.