CONSOLIDATED BALANCE SHEET
Note 14
Intangible non-current assets
2020/2021 | ||||||||
Acquired intangible assets | Intangible assets developed internally | |||||||
Group | Goodwill | Supplier relationships, customer relationships and technology | Trade marks | Capitalised R&D expenses | Leases and similar rights | Software | Software | Total |
Accumulated cost | ||||||||
At beginning of year | 1,997 | 2,204 | 22 | 52 | 1 | 95 | 4 | 4,375 |
Corporate acquisitions | 773 | 801 | 0 | 0 | – | 3 | – | 1,577 |
Investments | – | 2 | 0 | 9 | 0 | 10 | – | 21 |
Divestments and scrappings | – | – | – | – | 0 | -15 | – | -15 |
Reclassifications | – | – | 1 | – | – | -1 | – | 0 |
Translation effect for the year | -43 | -48 | – | -2 | 0 | -2 | – | -95 |
At end of year | 2,727 | 2,959 | 23 | 59 | 1 | 90 | 4 | 5,863 |
Accumulated amortisation and impairment | ||||||||
At beginning of year | – | -1,015 | 0 | -37 | 0 | -79 | -4 | -1,135 |
Corporate acquisitions | – | 0 | 0 | – | – | 0 | – | 0 |
Depreciation/amortisation | – | -250 | 0 | -5 | 0 | -7 | – | -262 |
Divestments and scrappings | – | – | – | – | – | 15 | – | 15 |
Translation effect for the year | – | 11 | 0 | 1 | 0 | 3 | – | 15 |
At end of year | – | -1,254 | 0 | -41 | 0 | -68 | -4 | -1,367 |
Carrying amount at end of year | 2,727 | 1,705 | 23 | 18 | 1 | 22 | 0 | 4,496 |
Carrying amount at beginning of year | 1,997 | 1,189 | 22 | 15 | 1 | 16 | 0 | 3,240 |
2019/2020 | ||||||||
Acquired intangible assets | Intangible assets developed internally | |||||||
Group | Goodwill | Supplier relationships, customer relationships and technology | Trade marks | Capitalised R&D expenses | Leases and similar rights | Software | Software | Total |
Accumulated cost | ||||||||
At beginning of year | 1,767 | 1,970 | 22 | 41 | 0 | 83 | 4 | 3,887 |
Corporate acquisitions | 211 | 216 | 0 | 0 | – | 1 | – | 428 |
Investments | – | 0 | 0 | 9 | 1 | 10 | – | 20 |
Divestments and scrappings | – | – | – | – | – | – | – | – |
Reclassifications | – | – | – | 1 | – | – | – | 1 |
Translation effect for the year | 19 | 18 | – | 1 | 0 | 1 | – | 39 |
At end of year | 1,997 | 2,204 | 22 | 52 | 1 | 95 | 4 | 4,375 |
Accumulated amortisation and impairment | ||||||||
At beginning of year | – | -826 | 0 | -32 | 0 | -72 | -4 | -934 |
Corporate acquisitions | – | – | – | – | – | -1 | – | -1 |
Depreciation/amortisation | – | -193 | 0 | -5 | 0 | -5 | – | -203 |
Divestments and scrappings | – | – | – | – | – | – | – | – |
Translation effect for the year | – | 4 | – | 0 | 0 | -1 | – | 3 |
At end of year | – | -1,015 | 0 | -37 | 0 | -79 | -4 | -1,135 |
Carrying amount at end of year | 1,997 | 1,189 | 22 | 15 | 1 | 16 | 0 | 3,240 |
Carrying amount at beginning of year | 1,767 | 1,144 | 22 | 9 | 0 | 11 | 0 | 2,953 |
2021-03-31 | 2020-03-31 | |||
Parent Company | Software | Total | Software | Total |
Accumulated cost | ||||
At beginning of year | 3.7 | 3.7 | 2.8 | 2.8 |
Investments | 0.5 | 0.5 | 0.9 | 0.9 |
At end of year | 4.2 | 4.2 | 3.7 | 3.7 |
Accumulated amortisation | ||||
At beginning of year | -3.0 | -3.0 | -2.8 | -2.8 |
Depreciation/amortisation | -0.4 | -0.4 | -0.2 | -0.2 |
At end of year | -3.4 | -3.4 | -3.0 | -3.0 |
Carrying amount at end of year | 0.8 | 0.8 | 0.7 | 0.7 |
Carrying amount at beginning of year | 0.7 | 0.7 | 0.0 | 0.0 |
Group | ||||
Goodwill by business area | 2021-03-31 | 2020-03-31 | ||
Automation | 576 | 531 | ||
Components | 330 | 337 | ||
Energy | 523 | 478 | ||
Industrial Process | 923 | 335 | ||
Power Solutions | 375 | 316 | ||
Total | 2,727 | 1,997 |
Testing of goodwill
The Group’s recognised goodwill amounts to SEK 2,727 million (1,997), allocated as above to the units where impairment testing is performed. Goodwill is not monitored internally at a level lower than the business areas, and impairment testing is therefore performed at that level. The business areas coincide with the Group’s operating segments. Impairment testing took place most recently in March 2021. The recoverable amount was based on value in use, calculated from a current estimate of cash flows over the year ahead. Forecast earnings and investments in working capital and non-current assets for the next financial year, 2021/2022, are based on previous outcomes and experiences. The forecast is produced on the basis of a relatively detailed budgeting process for the various parts of Group. The major components of the cash flow are sales, the various operating costs and investments in working capital and non-current assets. The sales forecast is based on judgements taking into account factors such as order bookings, the general economy and the market situation. The forecast for operating costs is based on current pay agreements and previous years’ levels of gross margins and overheads, adapted to expectations for the year ahead taking into account factors as referred to for the sales forecast. Anticipated investments in working capital and non-current assets are linked to the growth in sales. Since the operations are deemed to be in a phase that is representative of the long-term perspective, the cash flow from the first forecast year is extrapolated by a long-term growth rate of 2 percent (2) per year for all business areas. Cash flows were discounted applying a weighted cost of capital corresponding to roughly 11 percent (11) before tax. The key assumptions that have the greatest effect on the recoverable amount are gross margin, discount rate and long-term growth rate, where gross margin is most important. Neither a 1-percent increase in the discount rate, a 1-percentage point decrease in long-term growth, nor a 1-percent decrease in the margin shows a need for impairment. These calculations show that value in use significantly exceeds the carrying amount. Consequently, impairment testing indicated no impairment. The margin for impairment is considerable for all business areas and it is not judged that any possible changes in important assumptions that may reasonably expected to lead to impairment.
Other impairment testing
Each year, trademarks are tested for impairment, applying the same policies as for goodwill. No events or changed circumstances have been identified motivating impairment testing of other intangible assets currently being amortised.
Note 15
Property, plant and equipment
2021-03-31 | ||||||
Group | Buildings and land | Leasehold improvements | Machinery | Equipment | Construction in progress | Total |
Accumulated cost | ||||||
Opening balance | 197 | 43 | 365 | 451 | 13 | 1,069 |
Acquisition of companies | 19 | 1 | 5 | 22 | - | 47 |
Investments | 3 | 10 | 11 | 39 | 8 | 71 |
Disposals and retirement of assets | -13 | - | -9 | -25 | - | -47 |
Reclassifications | 13 | -1 | 2 | 1 | -15 | 0 |
Translation effect for the year | -10 | -2 | -15 | -16 | -1 | -44 |
Closing balance | 209 | 51 | 359 | 472 | 5 | 1,096 |
Accumulated depreciation and impairment losses | ||||||
Opening balance | -95 | -31 | -270 | -362 | -1 | -759 |
Acquisition of companies | -1 | - | -3 | -11 | - | -15 |
Depreciation | -9 | -3 | -18 | -34 | - | -64 |
Disposals and retirement of assets | 10 | - | 6 | 22 | - | 38 |
Reclassifications | -2 | 2 | 0 | 0 | - | 0 |
Translation effect for the year | 4 | 2 | 11 | 12 | 1 | 30 |
Closing balance | -93 | -30 | -274 | -373 | 0 | -770 |
Carrying amount at year-end | 116 | 21 | 85 | 99 | 5 | 326 |
Carrying amount at start of year | 102 | 12 | 95 | 89 | 12 | 310 |
2020-03-31 | ||||||
Group | Buildings and land | Leasehold improvements | Machinery | Equipment | Construction in progress | Total |
Accumulated cost | ||||||
Opening balance | 181 | 37 | 332 | 378 | 7 | 935 |
Acquisition of companies | - | 2 | 3 | 34 | - | 39 |
Investments | 6 | 2 | 21 | 41 | 15 | 85 |
Disposals and retirement of assets | 0 | 0 | -3 | -7 | - | -10 |
Reclassifications | 4 | 1 | 4 | -1 | -10 | -2 |
Translation effect for the year | 6 | 1 | 8 | 6 | 1 | 22 |
Closing balance | 197 | 43 | 365 | 451 | 13 | 1,069 |
Accumulated depreciation and impairment losses | ||||||
Opening balance | -85 | -26 | -247 | -306 | -1 | -665 |
Acquisition of companies | - | -1 | -2 | -26 | – | -29 |
Depreciation | -7 | -3 | -17 | -31 | – | -58 |
Disposals and retirement of assets | 0 | 0 | 2 | 4 | – | 6 |
Reclassifications | 0 | 0 | 0 | 0 | 0 | 0 |
Translation effect for the year | -3 | -1 | -6 | -3 | 0 | -13 |
Closing balance | -95 | -31 | -270 | -362 | -1 | -759 |
Carrying amount at year-end | 102 | 12 | 95 | 89 | 12 | 310 |
Carrying amount at start of year | 96 | 11 | 85 | 72 | 6 | 270 |
2021-03-31 | 2020-03-31 | |||||
Parent Company | Leasehold improvements | Equipment | Total | Leasehold improvments | Equipment | Total |
Accumulated cost | ||||||
At beginning of year | 4 | 3 | 7 | 4 | 3 | 7 |
Investments | – | – | - | – | – | - |
Divestments anf scrappings | – | 0 | 0 | – | – | – |
At end of year | 4 | 3 | 7 | 4 | 3 | 7 |
Accumulated depreciation according to plan | ||||||
At beginning of year | -4 | -3 | -7 | -4 | -2 | -6 |
Depreciation/amortisation | 0 | 0 | 0 | 0 | -1 | -1 |
Divestments anf scrappings | – | 0 | 0 | – | – | – |
At end of year | -4 | -3 | -7 | -4 | -3 | -7 |
Carrying amount at end of year | 0 | 0 | 0 | 0 | 0 | 0 |
Carrying amount at beginning of year | 0 | 0 | 0 | 0 | 1 | 1 |
Note 16
Leases
At the end of 2020/2021, the lease liability amounted to SEK 676 million (627), of which S E K 186 million (169) was a current liability and SEK 490 million (458) was a non-current liability. The average remaining lease term at the end of March 2021 was 25 months, with extension options accounting for one month of that. The Group’s right-of-use assets are primarily leased premises, vehicles and other leases (of, for example, production equipment, office equipment and other assets not considered individually significant). Depreciation of right-of-use assets is specified in Note 8 Depreciation. Interest expenses on the lease liability for the 2020/2021 financial year amounted to SEK 9 million (8) and, in cash flow for the year, the amortisation component of the lease fees amounted to SEK 192 million (162) in addition to the interest expense. The cash flow effect from leases of lesser value amounted to an outflow of SEK -2 million, the cash flow effect from current leases to an outflow of SEK -10 million and cash flow from leases with variable fees to an outflow of SEK -1 million. Rent concessions paid as a result of Covid-19 during 2020/2021 are not considered significant.
3/31/2020 | ||||
Group | Buildings | Vehicles | Other | Total |
Accumulated cost | ||||
At beginning of year | 657 | 89 | 32 | 778 |
Corporate acquisitions | 45 | 6 | 2 | 53 |
Additional right-of-use assets | 192 | 38 | 4 | 234 |
Ended contracts | -53 | -26 | -3 | -82 |
Translation effect for the year | -17 | -3 | 0 | -20 |
At end of year | 824 | 104 | 35 | 963 |
Accumulated amortisation and impairment | ||||
At beginning of year | -118 | -28 | -6 | -152 |
Corporate acquisitions | -1 | 0 | -1 | -2 |
Depreciation/amortisation | -143 | -34 | -9 | -186 |
Ended contracts | 34 | 20 | 2 | 56 |
Translation effect for the year | 2 | 1 | 0 | 3 |
At end of year | -226 | -41 | -14 | -281 |
Carrying amount at end of year | 598 | 63 | 21 | 682 |
Carrying amount at beginning of year | 539 | 61 | 26 | 626 |
3/31/2020 | ||||
Group | Buildings | Vehicles | Other | Total |
Accumulated cost | ||||
At beginning of year (in accordance with IAS 17) | - | - | - | - |
Amended accounting principles | 477 | 57 | 24 | 558 |
Corporate acquisitions | 40 | 0 | 1 | 41 |
Additional rights-of-use assets | 144 | 33 | 8 | 185 |
Ended contracts | -8 | -2 | -1 | -11 |
Translation effect for the year | 4 | 1 | 0 | 5 |
At end of year | 657 | 89 | 32 | 778 |
Accumulated amortisation and impairment | ||||
At beginning of year (in accordance with IAS 17) | - | - | - | - |
Corporate acquisitions | -6 | 0 | 0 | -6 |
Depreciation/amortisation | -114 | -30 | -7 | -151 |
Ended contracts | 2 | 2 | 1 | 5 |
Translation effect for the year | 0 | 0 | 0 | 0 |
At end of year | -118 | -28 | -6 | -152 |
Carrying amount at end of year | 539 | 61 | 26 | 626 |
Carrying amount at beginning of year | - | - | - | - |
Group | Group | |
Maturity structure of lease liabilities | 2020/2021 | 2019/2020 |
Within one year | 192 | 174 |
1-2 years | 169 | 145 |
2-5 years | 292 | 261 |
Later than 5 years | 44 | 70 |
Expected future payments | 697 | 650 |
Carrying amount | 676 | 627 |
Contractual expenses from leases | 2020/2021 | 2019/2020 |
Depreciation/amortisation | -186 | -157 |
Interest on lease liabilities | -9 | -8 |
Lease expenses for current contracts | -10 | - |
Lease expenses for lesser-value assets | -2 | - |
Lease expenses for variable fees | -1 | - |
Lease expenses | -208 | -165 |
Note 13
Taxes
Group | Parent Company | |||
2020/2021 | 2019/2020 | 2020/2021 | 2019/2020 | |
Current tax for the period | -263.2 | -346.7 | -52.4 | -60.4 |
Adjustment from previous years | -0.9 | 1.4 | -0.7 | 0.0 |
Total current tax expense | -264.1 | -345.3 | -53.1 | -60.4 |
Deferred tax | 56.0 | 113.7 | 1.5 | 0.0 |
Total recognised tax expense | -208.1 | -231.6 | -51.6 | -60.4 |
Group | 2020/2021 | % | 2019/2020 | % |
Profit before tax | 936.9 | 1,104.60 | ||
Weighted average tax based on national tax rates | -201.3 | 21.5 | -240.3 | 21.8 |
Tax effects of | ||||
Non-deductible costs | -5.2 | 0.5 | -6.1 | 0.6 |
Non-taxable income | 1.1 | -0.1 | 1.9 | -0.2 |
Changed tax rate | 3.3 | -0.3 | 5.3 | -0.5 |
Transaction expense, revaluations of contingent considerations of acquisitions | -6.6 | 0.7 | 7.1 | -0.6 |
Other | 0.6 | -0.1 | 0.5 | -0.1 |
Recognised tax expense | -208.1 | 22.2 | -231.6 | 21.0 |
Parent Company | 2020/2021 | % | 2019/2020 | % |
Profit before tax | 638.5 | 269.2 | ||
Tax based on current tax rate for Parent company | -136.6 | 21.4 | -57.6 | 21.4 |
Tax effects of | ||||
Standard interest on tax allocation reserves | -0.1 | 0.0 | -0.5 | 0.2 |
Non-deductible expenses | -1.3 | 0.2 | -0.7 | 0.3 |
Non-taxable dividens | 85.6 | -13.4 | - | - |
Other | 0.8 | -0.1 | -1.6 | 0.7 |
Recognised tax expense | -51.6 | 8.1 | -60.4 | 22.6 |
Deferred taxes, net, at end of year | 2021-03-31 | 2020-03-31 | ||||
Group | Receivables | Liabilities | Net | Receivables | Liabilities | Net |
Non-current assets | 8 | -364 | -356 | 2 | -266 | -264 |
Untaxed reserves | - | -67 | -67 | - | -54 | -54 |
Pension provisions | 29 | 3 | 32 | 27 | 10 | 37 |
Other | 59 | -27 | 32 | 30 | -6 | 24 |
Net recognised | -67 | 67 | 0 | -32 | 32 | 0 |
Deferred taxes, net, at end of year | 29 | -388 | -359 | 27 | -284 | -257 |
2021-03-31 | ||||||
Group | Amount at beginning of year | Recognised in the income statement | Acquisitions & divestments | Recognised in other comprehensive income | Translation effect | Amount at end of year |
Non-current assets | -263.9 | 57.4 | -157.3 | -0.3 | 8.4 | -355.7 |
Untaxed reserves | -54.1 | -7.4 | -5.2 | - | - | -66.7 |
Pension provisions | 36.5 | -1.8 | - | -2.0 | -0.9 | 31.8 |
Other | 24.5 | 7.8 | -0.2 | 0.6 | -1.1 | 31.6 |
Deferred tax, net | -257.0 | 56.0 | -162.7 | -1.7 | 6.4 | -359.0 |
2020-03-31 | ||||||
Group | Amount at beginning of year | Recognised in the income statement | Acquisitions & divestments | Recognised in other comprehensive income | Translation effect | Amount at end of year |
Non-current assets | -257.2 | 42.8 | -47.3 | 0.2 | -2.4 | -263.9 |
Untaxed reserves | -119.7 | 65.9 | -0.3 | - | - | -54.1 |
Pension provisions | 23.7 | -0.3 | 10.4 | 2.7 | 0.0 | 36.5 |
Other | 20.0 | 5.3 | - | -1.4 | 0.6 | 24.5 |
Deferred tax, net | -333.2 | 113.7 | -37.2 | 1.5 | -1.8 | -257.0 |
2021-03-31 | 2020-03-31 | |||||
Parent Company | Amount at start of year | Recognised in profit or loss | Amount at year-end | Amount at start of year | Recognised in profit or loss | Amount at year-end |
Financial instruments | -0.2 | 0.8 | 0.6 | 0.1 | -0.3 | -0.2 |
Other | - | 0.7 | 0.7 | |||
Deferred taxes, net | -0.2 | 1.5 | 1.3 | 0.1 | -0.3 | -0.2 |
The Group has tax loss carryforwards of SEK 27 (57) that have not been capitalised. |
Note 18
Inventories
Group | 2021-03-31 | 2020-03-31 |
Raw materials and consumables | 204 | 173 |
Work in progress | 129 | 101 |
Finished goods | 1,328 | 1,368 |
Total | 1,661 | 1,642 |
The cost of sales for the Group includes impairment losses of SEK 17 million (15) on inventories. No significant reversals of prior impairment losses were made in 2020/2021 or 2019/2020. |
Note 3
Financial risks and risk management
Risk management policy and objectives
Addtech strives for structured and efficient management of the financial risks that arise in operations, which is manifest in the financial policy adopted by the Board of Directors. The financial operations are not conducted as a separate line of the business; they are merely intended to constitute support for the business and reduce risks in the financial operations. The policy stipulates goals and risks in the financial operations, and how they are to be managed. The financial policy expresses the goal of minimising and controlling financial risks. The policy defines and identifies the financial risks that arise at Addtech and how responsibility for managing these risks is distributed in the organisation. The financial risks defined in the financial policy are transaction exposure, translation exposure, refinancing risk, interest rate risk, margin risk, liquidity risk and issuer/borrower risk. Operational risks, that is, financial risks related to operating activities, are managed by each subsidiary’s management according to principles in the financial policy and subordinate process descriptions approved by the Group’s Board of Directors and management. Risks such as translation exposure, refinancing risk and interest rate risk are managed by the Parent Company, Addtech AB. Financial derivatives with external counterparties may only be entered by Addtech AB. The subsidiaries hedge their risk via Addtech AB which, in turn, obtains hedges on the external market.
Currency risk
The Addtech Group conducts extensive trade abroad and a material currency exposure therefore arises in the Group, which must be managed in such a way as to minimise the impact on earnings resulting from exchange rate fluctuations.
The Group applies decentralised responsibility for currency risk management. This involves risk identification and risk hedging occurring at subsidiary level. It is important to capitalise on the size of the Group and natural conditions to match flows, and the subsidiaries must therefore hedge their risk via the Parent Company which, in turn, obtains hedges on the external market.
For Addtech, currency risk arises 1) partly as a result of future payment flows in foreign currency, known as transaction exposure, and 2) partly because parts of the Group’s equity comprise net assets in foreign subsidiaries, known as translation exposure. Monetary financial assets and liabilities in currencies other than each Group company’s functional currency occur to a limited extent.
Transaction exposure
Transaction exposure comprises all future contracted and forecast ingoing and outgoing payments in foreign currency. The Group’s currency flows usually pertain to flows in foreign currency from purchases, sales and dividends. Transaction exposure also comprises financial transactions and balances. During the year, the Group’s payment flows in foreign currencies were distributed as follows:
Currency flows, gross 2020/2021 | Currency flows, net | |||
Inflows | Outflows | 2020/2021 | 2019/2020 | |
EUR | 2,433 | 2,721 | -288 | -74 |
USD | 899 | 1,013 | -114 | -193 |
NOK | 57 | 52 | 5 | 23 |
JPY | 106 | 107 | -1 | -36 |
DKK | 67 | 135 | -68 | -91 |
GBP | 25 | 112 | -87 | -91 |
CHF | 32 | 61 | -29 | -57 |
PLN | 0 | 102 | -102 | -48 |
The effects of exchange rate fluctuations are reduced by buying and selling in the same currency, through currency clauses in customer contracts and, to a certain degree, by forward purchases or sales of foreign currency. In the industry, currency clauses are a common method for handling uncertainty associated with future cash flows. A currency clause means that compensation is paid for any changes in the exchange rate exceeding a certain predefined level during the contract period. If these thresholds are not reached, for example when the exchange rate changes by less than 2 percentage points, no compensation is paid. The currency clauses adjust the exchange rate change between the time the order is placed and the invoice date. Currency clauses are symmetrically designed, meaning that compensation is charged or credited when the exchange rate rises or falls beyond the predefined thresholds.
Of consolidated net sales, currency clauses cover about 9 percent (10) and sales in the purchasing currency make up about 39 percent (38). In certain transactions, there is a direct link between the customer’s order and the associated purchase order, which is a good basis for effective currency risk management. However, in many cases the dates of the orders do not coincide, which may reduce the effectiveness of these measures. The subsidiaries have reduced their currency exposure by using forward foreign exchange contracts. At the end of the financial year, there were outstanding forward foreign exchange contracts in a gross amount of SEK 273 million (183), of which EUR equalled SEK 201 million (115), USD equalled SEK 24 million (34), PLN equalled SEK 22 million (22), DKK equalled SEK 23 million (2), GBP equalled SEK 3 million (9) and NOK equalled SEK 1 million (1). Of the total contracts, SEK 123 million (148) matures within six months, SEK 114 million (51) within 12 months and SEK 36 million (0) within 18 months. Hedge accounting does not apply to forward foreign exchange contracts and they are classified as a financial asset measured at fair value through profit or loss. Hedge accounting applies to embedded derivatives consisting of currency clauses, and they are classified as derivatives used in hedge accounting. The cash flow effect from embedded derivatives normally occurs within six months.
The Group has a net exposure in several currencies. If each separate currency pair changes by 5 percent, the aggregate effect on profit would total about SEK 60 million (68), all else being equal. Inflows and outflows in the same currency mean that the Group’s exposure is relatively limited. Currency flows in the Parent Company are mainly in Swedish kronor (SEK). To the extent that internal and external loans and investments in the Parent Company are in foreign currency, 100 percent of the capital amount is hedged.
Translation exposure
The translation exposure of the Addtech Group is currently not hedged. The Group’s net assets are divided among foreign currencies as follows:
31 March 2021 | 31 March 2020 | |||
Net investments | SEK million | Sensitivity analysis 1) | SEK million | Sensitivity analysis 2) |
NOK | 1,658 | 82.9 | 828 | 41.4 |
EUR | 1,565 | 78.3 | 1,104 | 55.2 |
DKK | 1,447 | 72.4 | 1065 | 53.3 |
PLZ | 11 | 0.6 | -13 | -0.7 |
GBP | 772 | 38.6 | 401 | 20.1 |
HKD | 42 | 2.1 | 79 | 4.0 |
USD | 85 | 4.3 | 20 | 1.0 |
CNY | 231 | 11.6 | 137 | 6.9 |
CHF | 312 | 15.6 | 128 | 6.4 |
1) Impact of +/–5% in exchange rate on consolidates equity | ||||
2) Circumstances in the previous year |
When translating the income statement of units with a functional currency other than SEK, a translation effect arises when exchange rates vary. With the present distribution of Group companies’ different functional currencies, a change of 1 percentage point in the exchange rates would have an effect of SEK +/- 68 million (72) on net sales and SEK +/- 6 million (8) on operating profit.
The exchange rates applied in the financial accounts are shown in the following table:
Average rate | Closing day rate | |||
Exchange rate | 2020/2021 | 2019/2020 | 2021-03-31 | 2020-03-31 |
CAD 1 | 6.68 | - | 6.93 | - |
CHF 1 | 9.62 | 9.72 | 9.25 | 10.45 |
CNY 100 | 131.01 | 137.60 | 133.29 | 142.21 |
DKK 100 | 138.99 | 142.64 | 137.66 | 148.13 |
EUR 1 | 10.35 | 10.65 | 10.24 | 11.06 |
GBP 1 | 11.60 | 12.18 | 12.02 | 12.48 |
HKD 1 | 1.15 | 1.23 | 1.12 | 1.30 |
JPY 1000 | 83.80 | 88.20 | 78.80 | 93.00 |
NOK 100 | 97.00 | 106.35 | 102.43 | 96.10 |
PLZ 1 | 2.30 | 2.48 | 2.20 | 2.43 |
RUR 100 | 11.88 | - | 11.59 | - |
TRY 1 | 1.21 | 1.67 | 1.05 | 1.53 |
TTD 1 | 1.30 | 1.42 | 1.28 | 1.47 |
TWD 1 | 0.31 | 0.31 | 0.31 | 0.33 |
USD 1 | 8.88 | 9.56 | 8.73 | 10.10 |
Financing and liquidity
The overall objective of Addtech’s financing and debt management is to secure financing for the operations in both the long and short term, and to minimise borrowing costs. The capital requirement is to be secured through an active and professional borrowing procedure comprising overdraft and other credit facilities. Raising of external financing is centralised at Addtech AB. Adequate payment capacity is to be achieved through contractual credit facilities. Surplus liquidity is primarily used to pay down outstanding credits. The Parent Company is responsible for the Group’s long-term financing as well as its supply of liquidity. The Parent Company provides an internal bank which lends to and borrows from the subsidiaries. The Group’s and Parent Company’s non-current and current interest-bearing liabilities are shown in Notes 24 and 25.
To manage surpluses and deficits in different currencies, Addtech uses currency swaps from time to time. This allows the Group to reduce its finan- cing costs and the Company’s liquid funds to be used in an efficient manner.
Refinancing risk
The refinancing risk is the risk of Addtech not having access to sufficient financing on each occasion. The refinancing risk increases if Addtech’s credit rating deteriorates or if Addtech becomes too dependent on one source of financing. If all or a large part of the debt portfolio matures on a single or a few occasions, this could involve the turnover or refinancing of a large proportion of the loan volume having to occur on disadvantageous interest and borrowing terms.
In order to limit the refinancing risk, the procurement of long-term credit facilities is commenced no later than nine months before the credit facility matures. On 31 March 2021, the Group’s credit facilities amounted to SEK 3,800 million (3,800), represented by bank overdraft facilities of SEK 1,300 million (1,300) and other agreed credit facilities of SEK 2,500 million (2,500). During the year, overdraft facilities increased by SEK 0 million (0) while other agreed credit facilities increased by SEK 0 million (1,800). At 31 March 2021, the Group had utilised SEK 800 million (156) of the bank overdraft facilities and SEK 1,300 million (1,600) of the other credit facilities. Unutilised bank overdraft facilities and credit facilities amounted to SEK 1,700 million (2,028). The Parent Company’s credit facilities are contingent upon loan covenants, the conditions of which are fulfilled with a wide margin. For covenants, Addtech uses two ratios: EBITDA/net financial items and equity/assets.
Interest rate risk
The interest rate risk is regulated by ensuring that the average fixed interest term of the debt portfolio varies between 0-3 years. The debt portfolio consists of bank overdraft facilities and outstanding external loans. The interest rate at 31 March 2021 was variable, that is, 0-3 months. Addtech’s main exposure to interest rate risk is in its debt portfolio. Aside from the pension liability, interest-bearing external debt totals SEK 3,218 million (2,616).
With the current net financial debt, the impact on the Group’s net financial items would be SEK +/- 25 million if interest rates were to fluctuate by 1 percentage point.
Issuer/borrower risk and credit risk
Issuer/borrower risk and credit risk are defined as the risk of Addtech’s counterparties failing to fulfil their contractual obligations. Addtech is exposed to credit risk in its financial transactions, that is, in investing its surplus liquidity and executing forward foreign exchange transactions, and in its commercial operations in connection with accounts receivable and advance payments to suppliers. Maximum credit risk exposure from financial assets is consistent with the carrying amount of those assets.
Addtech’s financial function at the Parent Company is responsible for assessing and managing issuer/borrower risk. The financial policy prescribes that surplus liquidity only be invested with counterparties that have a very high credit rating. As in prior years, in 2020/2021 no surplus funds were invested with any counterparties other than Swedish banks, aside from the Group’s normal bank contacts.
To utilise its subsidiaries’ detailed knowledge of Addtech’s customers and suppliers, Addtech has each company assess the credit risk in its commercial transactions. New customers are assessed before credit is granted, and credit limits set are strictly enforced. Short credit periods are the goal, and avoiding excessive concentration of business with individual customers and with specific sectors helps minimise risks. No individual customer accounts for more than 5 percent (4) of total credit exposure during a one-year period. The equivalent figure for the ten largest customers is about 13 percent (17). Exposure per customer segment and geographic market is presented in Note 5.
Bad debt losses totalled SEK 6 million (7) during the year, equal to 0 percent (0) of net sales.
Accounts receivable, SEK million | 2021-03-31 | 2020-03-31 | ||
Carrying amount | 1,860 | 2,003 | ||
Impairment | 17 | 17 | ||
COST | 1,877 | 2,020 | ||
Change in impaired accounts receivable | 2020/2021 | 2019/2020 | ||
Amount at start of year | -17 | -9 | ||
Corporate acquisitions | 0 | -4 | ||
Year’s impairment losses/reversals | -4 | -5 | ||
Settled impairment | 3 | 1 | ||
Translation effect | 1 | 0 | ||
TOTAL | -17 | -17 | ||
Time analysis of accounts receivable that are overdue but not impaired | 2021-03-31 | 2020-03-31 | ||
< = 30 days | 182 | 272 | ||
31–60 days | 22 | 53 | ||
> 60 days | 29 | 50 | ||
TOTAL | 233 | 375 |
Note 19
Prepaid expenses and accrued income
Group | Parent company | |||
2021-03-31 | 2020-03-31 | 2021-03-31 | 2020-03-31 | |
Rent | 13 | 19 | 1 | 2 |
Insurance premiums | 11 | 9 | 4 | 3 |
Pension costs | 4 | 3 | 1 | 1 |
Lease payments | 4 | 4 | 0 | 0 |
Other prepaid expenses | 50 | 45 | 9 | 5 |
Other accrued income | 55 | 48 | 0 | 0 |
Total | 137 | 128 | 15 | 11 |
Note 20
Equity
GROUP
Other contributed capital
Refers to equity contributed by shareholders.
Group | ||
Reserves 1) | 2020/2021 | 2019/2020 |
Foreign currency translation reserve | ||
Opening translation reserve | 179 | 123 |
Translation effect for the year | -138 | 56 |
Closing currency translation reserve | 41 | 179 |
Hedging reserve 2) | ||
Opening hedging reserve | 1 | 0 |
Revaluations recognised via other comprehensive income | -5 | 9 |
Recognised in profit or loss upon disposal (other operating income/expenses) | 1 | -7 |
Taxes attributable to the year’s revaluations | 1 | -2 |
Taxes attributable to disposals | 0 | 1 |
Closing hedging reserve | -2 | 1 |
Total reserves | 39 | 180 |
1) Refers to reserves attributable to equity holders of the Parent Company. | ||
2) Relates to cash flow hedges, consisting of currency clauses in customer contacts. |
Translation reserve
The translation reserve includes all exchange differences arising on the translation of the financial reports of foreign operations prepared in a currency other than the Group’s presentation currency for financial re-ports. The Parent Company and Group present their financial reports in Swedish kronor (SEK).
Hedging reserve
The hedging reserve includes the effective portion of the accumulated net change in fair value for a cash-flow hedging instrument attributable to hedge transactions that have not yet occurred.
Retained earnings, including profit for the year
Retained earnings including profit for the year include earnings in the Parent Company and its subsidiaries. Prior provisions to the legal reserve are included in this equity item.
Repurchased shares
Repurchased shares includes the cost of treasury shares held by the Parent Company. At the end of the reporting period, the Group’s holding of treasury shares was 3,519,272 (4,199,672).
Dividend
After the reporting period, the Board of Directors proposed a dividend of SEK 1.20 per share. The dividend is subject to approval by the Annual General Meeting on 26 August 2021.
Proposed allocation of earnings 2020/2021 | |
Retained earnings | SEK 193 million |
Profit for the year | SEK 586 million |
TOTAL | SEK 779 million |
The Board of Directors and the CEO propose that the funds available be allocated as follows: | |
That a dividend of SEK 1.20 per share be paid to shareholders* | SEK 323 million |
To be carried forward | SEK 456 million |
TOTAL | SEK 779 million |
* Calculated based on the number of shares outstanding at 31 May 2021. The total dividend payout may change if the number of repurchased treasury shares changes prior to the proposed dividend record date of 30 August 2021. |
Moderbolaget
PARENT COMPANY
Restricted reserves
Restricted reserves are funds that cannot be paid out as dividends.
Statutory reserve
The purpose of the statutory reserve is to save a portion of net profit that will not be used to cover a loss carried forward.
Retained earnings
Retained earnings comprises the previous year’s unrestricted equity, less any dividend paid. Together with profit for the year and any fair value reserve, retained earnings constitute the sum of unrestricted equity, that is, the amount available to be paid as dividends to shareholders.
Number of shares
The Annual General Meeting in August 2020 resolved to implement a 4:1 share split. The number of shares at 31 March 2021 consisted of 12,885,744 Class A shares, entitling the holders to 10 votes per share, and 259,908,240 Class B shares, entitling the holders to one vote per share. The quotient value of the share is SEK 0.19. The Company has repurchased 3,519,272 Class B shares within the framework of the Com-pany’s ongoing repurchasing programme. After subtracting repurchased shares, the number of Class B shares is 256,388,968
2021-03-31 | |||
Number of shares outstanding | Class A shares | Class B shares | All share classes |
At start of year | 12,918,000 | 255,676,312 | 268,594,312 |
Exercised call options | – | 680,400 | 680,400 |
Repurchase of treasury shares | – | – | – |
Conversion of Class A shares to Class B shares | -32,256 | 32,256 | – |
At year-end | 12,885,744 | 256,388,968 | 269,274,712 |
2020-03-31 | |||
Number of shares outstanding | Class A shares | Class B shares | All share classes |
At start of year | 12,918,000 | 255,310,436 | 268,228,436 |
Exercised call options | – | 965,876 | 965,876 |
Repurchase of treasury shares | – | -600,000 | -600,000 |
Conversion of Class A shares to Class B shares | – | – | – |
At year-end | 12,918,000 | 255,676,312 | 268,594,312 |
Note 24
Non-current interest-bearing liabilities
Group | ||||
2021-03-31 | 2020-03-31 | |||
Liabilities to credit institutions: | ||||
Maturing within 2 years | 400 | 917 | ||
Maturing within 3-5 years | 900 | 710 | ||
Maturing in five years or later | - | 0 | ||
Total non-current liabilities to credit institutions | 1,300 | 1,627 | ||
Lease liability: | ||||
Maturing within 2 years | 165 | 141 | ||
Maturing within 3-5 years | 283 | 251 | ||
Maturing in five years or later | 42 | 66 | ||
Total lease liability | 490 | 458 | ||
Other interest-bearing liabilities: | ||||
Maturing within 2 years | 212 | 48 | ||
Maturing within 3 years | 54 | 17 | ||
Maturing within 4-5 years | - | 4 | ||
Maturing in five years or later | – | – | ||
Total other non-current interest-bearing liabilities | 266 | 69 | ||
Total | 2,056 | 2,154 | ||
The non-current interest-bearing liabilities in the Parent Company at 31 March 2021 amounted to SEK 1,300 million (1600). Other interest-bearing liabilities largely consist of additional contingent considerations with estimated interest of 5.0 percent. | ||||
The Addtech Group’s non-current liabilities to credit institutions are divided among currencies as follows: | ||||
2021-03-31 | 2020-03-31 | |||
Currency | Local currency | SEKm | Local currency | SEKm |
SEK | 1,300 | 1,300 | 1,600 | 1,600 |
Other | 0 | 0 | 3 | 27 |
Total | 1,300 | 1,627 | ||
Moderbolaget | ||||
2021-03-31 | 2020-03-31 | |||
Liabilities to credit institutions: | ||||
Maturing within 2 years | 400 | 900 | ||
Maturing within 3-5 years | 900 | 700 | ||
Maturing in five years or later | – | – | ||
Total non-current liabilities to credit institutions | 1,300 | 1,600 | ||
Liabilities to Group companies | 318 | 127 | ||
TOTAL | 1,618 | 1,727 | ||
The Parent Company's liabilities to Group companies have no fixed maturity dates. | ||||
Note 22
Provisions for pensions and similar obligation
Addtech has defined-contribution and defined-benefit pension plans in Sweden, Switzerland, the UK and Italy. The plans cover a large number of employees. Subsidiaries in other countries have mainly defined-contribution pension plans. The Parent Company’s data on pensions are reported in accordance with the Swedish Act on Safeguarding Pension Obligations.
Defined-contribution plans
These plans are mainly retirement pension plans, disability pensions and family pensions. Premiums are paid on an ongoing basis during the year by each Group company and the size of the premium is based on the salary. The pension cost for the period is included in profit or loss.
Obligations for retirement pensions and family pensions for salaried employees in Sweden are secured by insurance in Alecta. According to statement UFR 3 of the Swedish Financial Reporting Board, this is a defined-benefit plan covering multiple employers. For the 2020/2021 financial year, the Company did not have access to information enabling it to report this plan as a defined-benefit plan. Thus the pension plan according to ITP2 and secured by insurance in Alecta is recognised as a defined-contribution plan. The year’s fees for pension insurance with Alecta totalled SEK 30 million (31). Fees for the next financial year are considered to be in line with those for the year reported. The collective consolidation level for Alecta was 160 percent (133) in March 2021. The pension plan according to ITP1 is recognised as a defined-contribution plan.
Defined-benefit plans
These pension plans primarily comprise retirement pensions. Each employer generally has an obligation to pay a lifelong pension and vesting is based on the number of years of employment. The employee must subscribe to the plan for a certain number of years to be fully entitled to retirement benefits. Each year increases the employee’s entitlement to reti-rement benefits, which is recognised as pension earned during the period and as an increase in pension obligations. Both funded and unfunded pension plans apply in Sweden, Switzerland, the UK and Italy. The funded pension obligations are secured by plan assets that are managed by insurance companies. The Group estimates that SEK 6 million (4) will be paid in 2021/2022 to the funded defined-benefit plans. The total number of commitments of 996 (963) included in the obligation consists of 160 active (132), 473 paid-up policy holders (488) and 363 pensioners (343).
Obligations for employee benefits, defined benefit pension plans | ||||||
Group | Parent Company | |||||
Pension liability as per balance sheet | 2021-03-31 | 2020-03-31 | 2021-03-31 | 2020-03-31 | ||
Pension liability PRI | 284 | 270 | 14 | 15 | ||
Other pension obligations | 52 | 62 | – | – | ||
Total cost of defined benefit plans | 336 | 332 | 14 | 15 | ||
Group | Parent Company | |||||
Obligations for defined benefits and the value of plan assets | 2021-03-31 | 2020-03-31 | 2021-03-31 | 2020-03-31 | ||
Funded obligations: | ||||||
Present value of funded defined benefit obligations | 308 | 255 | – | – | ||
Fair value of plan assets | -263 | -193 | – | – | ||
Net debt, funded obligations | 45 | 62 | – | – | ||
Present value of unfunded defined benefit obligations | 291 | 270 | 14 | 15 | ||
Net amount in the balance sheet (obligation +, asset –) | 336 | 332 | 14 | 15 | ||
Pension obligations and plan assets per country: | ||||||
Sweden | ||||||
Pension obligations | 318 | 303 | 14 | 15 | ||
Plan assets | -25 | -25 | – | – | ||
Net amount in Sweden | 293 | 278 | 14 | 15 | ||
Switzerland | ||||||
Pension obligations | 250 | 200 | – | – | ||
Plan assets | -218 | -149 | – | – | ||
Net amount in Switzerland | 32 | 51 | – | – | ||
Great Britain | ||||||
Pension obligations | 23 | 22 | – | – | ||
Plan assets | -20 | -19 | – | – | ||
Net amount in Great Britain | 3 | 3 | – | – | ||
Italy | ||||||
Pension obligations | 8 | – | – | – | ||
Plan assets | – | – | – | – | ||
Net amount in Italy | 8 | – | – | – | ||
Net amount in the balance sheet (obligation +, asset –) | 336 | 332 | 14 | 15 | ||
Group | Parent Company | |||||
Reconciliation of net amount for pensions in the balance sheet | 2020/2021 | 2019/2020 | 2020/2021 | 2019/2020 | ||
Opening balance | 332 | 260 | 15 | 15 | ||
Cost defined benefit plans | 8 | 13 | 1 | 1 | ||
Payment of pension benefits | -7 | -7 | -2 | -1 | ||
Funds contributed by employer | -5 | -4 | – | – | ||
Acquisition of companies | -18 | 12 | – | – | ||
Translation effects | 32 | 54 | – | – | ||
Revaluations | -6 | 4 | – | – | ||
Gains and losses from settlements | 0 | 0 | – | – | ||
Net amount in balance sheet (obligation +, asset -) | 336 | 332 | 14 | 15 | ||
Group | ||||||
Changes in the obligation for defined benefit plans recognised in the balance sheet | 2020/2021 | 2019/2020 | ||||
Opening balance | 525 | 303 | ||||
Pensions earned during the period | 9 | 7 | ||||
Pensions earned prior periods, vested | -5 | – | ||||
Interest on obligations | 6 | 7 | ||||
Benefits paid | -4 | -5 | ||||
Funds contributed by employee | 3 | 3 | ||||
Revaluations: | ||||||
Gain (-)/loss (+) resulting from demographic assumptions | -10 | – | ||||
Gain (-)/loss (+) resulting from financial assumptions | 13 | 20 | ||||
Experienced-based gains (-)/losses (+) | 5 | -14 | ||||
Acquisition of companies | 89 | 189 | ||||
Translation effects | -32 | 15 | ||||
Gains and losses from settlements | – | – | ||||
PRESENT VALUE OF PENSIONS OBLIGATIONS | 599 | 525 | ||||
Group | ||||||
Changes in plan assets | 2020/2021 | 2019/2020 | ||||
Opening balance | 193 | 43 | ||||
Funds contributed by employer | 5 | 4 | ||||
Funds contributed by employee | 3 | 3 | ||||
Benefits paid | 3 | 2 | ||||
Interest income recognised in profit or loss | 2 | 1 | ||||
Return on plan assets, excluding interest income | 26 | -6 | ||||
Acquisition of companies | 57 | 135 | ||||
Translation effects | -26 | 11 | ||||
Gains and losses from settlements | – | – | ||||
Fair value of plan assets | 263 | 193 | ||||
Group | Parent Company | |||||
Pension costs | 2020/2021 | 2019/2020 | 2020/2021 | 2019/2020 | ||
Defined-benefit pension plans | ||||||
Cost for pensions earned during the year | 9 | 7 | 0 | 1 | ||
Revenue for pensions earned in prior periods | -5 | 0 | – | – | ||
Interest on obligations | 6 | 7 | 1 | 0 | ||
Interest income recognised in profit or loss | -2 | -1 | – | – | ||
Total cost of defined benefit plans | 8 | 13 | 1 | 1 | ||
Total cost of defined contribution plans | 157 | 157 | 6 | 7 | ||
Social security costs on pension costs | 20 | 19 | 1 | 1 | ||
Total cost of benefits after termination of employment | 185 | 189 | 8 | 9 | ||
Group | ||||||
Allocation of pension costs in the income statement | 2020/2021 | 2019/2020 | ||||
Cost of sales | 40 | 37 | ||||
Selling and administrative expenses | 141 | 146 | ||||
Net financial items | 4 | 6 | ||||
Total pension costs | 185 | 189 |
2020/2021 | 2019/2020 | ||||||||
Actuarial assumptions | Sweden | Switzerland | Great Britain | Italy | Sweden | Switzerland | Great Britain | Italy | |
The following material actuarial assumptions were applied in calculating obligations: | |||||||||
Discount rate, 1 April, % | 1.30 | 0.45 | 2.81 | – | 2.10 | – | 2.86 | – | |
Discount rate, 31 March, % | 1.60 | 0,40/0,30 | 2.53 | 0.72 | 1.30 | 0.45 | 2.81 | – | |
Future salary increases, % | 2.80 | 0,50/1,00 | – | 2.00 | 2.25 | 1.00 | – | – | |
Future increases in pensions (change in income base amount), % | 1.80 | 0.00 | 3.22 | 0.80 | 1.20 | 0.00 | 2.61 | – | |
Employee turnover, % | 10.0 | – | – | 5.0 | 10.0 | – | – | – | |
Expected ‘G regulation’, % | – | – | – | – | – | – | – | ||
Mortality table | DUS14 | BVG 2015/2020 GT | S3PA | Tavole IPS55 | DUS14 | BVG 2015 GT | S3PA | – | |
Sensitivity of pension obligations to changes in assumptions | Sweden | Switzerland | Great Britain | Italy | Total | ||||
Defined benefit pension obligations at 31 March 2021 | 318 | 250 | 23 | 8 | 599 | ||||
The discount rate increases by 0.5% | -32 | -20 | -2 | 0 | -54 | ||||
The discount rate decreases by 0.5% | 36 | 21 | 2 | 0 | 59 | ||||
Expected life expectancy increases by 1 year | 16 | 7 | 3 | – | 26 | ||||
Expected life expectancy decreases by 1 year | -15 | -8 | -3 | – | -26 |
The discount rate used is equivalent to the interest rate on high-quality corporate bonds or mortgage bonds with a maturity equivalent to the average maturity of the obligation and currency.
For Swedish pension liabilities, the interest rate for Swedish housing bonds is used as a basis and for pension liabilities in Switzerland, the UK and Italy, the interest rate for corporate bonds is used. The weighted average maturity for the commitment is around 18 years (18), which is used as a basis on which to determine the discount rate. Future increases in pensions are based on inflation assumptions. In Sweden, the remaining period of employment (life expectancy) is based on DUS 14, statistical tables prepared by Insurance Sweden and Försäkringssällskapet (the Insurance Society), in Switzerland on BVG 2015 and 2020 GT, in the UK on S3PA, and in Italy on Tavole IPS55.
The sensitivity analyses are based on a change in an assumption, while all other assumptions are held constant. The same method, the projected unit credit method, is used to calculate the sensitivity in the defined-benefit obligation as to calculate the pension obligation recognised in the balance sheet.
Note 25
Current interest-bearing liabilities
Group | Parent Company | |||
2021-03-31 | 2020-03-31 | 2021-03-31 | 2020-03-31 | |
Credit facilities | ||||
Approved overdraft facility | 1,300 | 1,300 | 1,300 | 1,300 |
Approved other liabilities to credit institutions | 1,201 | 1,201 | 1,200 | 1,200 |
Reclassifications | - | -300 | - | -300 |
Unutilised portion | -1,700 | -2,044 | -1,700 | -2,044 |
Credit amount utilised | 801 | 157 | 800 | 156 |
Other liabilities to credit institutions | 16 | 22 | - | 0 |
Lease liability | 186 | 169 | – | – |
Other interest-bearing liabilities | 159 | 114 | – | – |
Total | 1,162 | 462 | 800 | 156 |
Other interest-bearing liabilities largely consist of additional contingent considerations with estimated interest of 5.0 percent. | ||||
The Addtech Group’s current liabilities to credit institutions are divided among currencies as follows: | ||||
3/31/2021 | 2020-03-31 | |||
Currency | Local currency | SEKm | Local currency | SEKm |
CNY | 9 | 12 | 10 | 15 |
Other | 0 | 4 | 1 | 7 |
Total | 16 | 22 | ||
The Group’s financing is primarily managed by the Parent Company Addtech AB. |
Note 26
Accrued expenses and prepaid income
Group | Parent Company | |||
2021-03-31 | 2020-03-31 | 2021-03-31 | 2020-03-31 | |
Other deferred income | 15 | 1 | 1 | 0 |
Salaries and holiday pay | 342 | 331 | 13 | 14 |
Social security costs and pensions | 108 | 99 | 7 | 8 |
Other accrued expenses 1) | 86 | 97 | 4 | 8 |
Total | 551 | 528 | 25 | 30 |
1) Other accrued expenses mainly consist of overhead accruals. |
Note 23
Provisions
Group 2020/2021 | Premises | Personnel | Warranties | Other | Total |
Carrying amount at start of period | 1 | 12 | 28 | 5 | 46 |
Acquisitions | - | - | 2 | - | 2 |
Provisions made during the period | - | 1 | 4 | 17 | 22 |
Amounts utilised during the period | 0 | -5 | -2 | 0 | -7 |
Unutilised amounts reversed | - | - | -7 | - | -7 |
Translation effects | 0 | 0 | 0 | 0 | 0 |
Carrying amount at end of period | 1 | 8 | 25 | 22 | 56 |
Group 2019/2020 | Premises | Personnel | Warranties | Other | Total |
Carrying amount at start of period | 1 | 9 | 26 | 11 | 47 |
Acquisitions | - | - | 2 | - | 2 |
Provisions made during the period | - | 5 | 7 | 1 | 13 |
Amounts utilised during the period | 0 | -2 | -7 | -3 | -12 |
Unutilised amounts reversed | - | - | 0 | -4 | -4 |
Translation effects | 0 | 0 | 0 | 0 | 0 |
Carrying amount at end of period | 1 | 12 | 28 | 5 | 46 |
Premises
The provision for premises refers to premises that the Group has vacated and cannot sublet or use during the remainder of the lease.
Personnel
The provision refers to costs of personnel, including estimated remuneration upon termination of employment in connection with changes in operations. A provision is made when there is an approved restructuring plan and the restructuring has been announced.
Warranties
Recognised provisions for warranties associated with products and services are based on calculations performed based on historical data or, in specific cases, on an individual assessment.
Other
Other includes provisions not classified under premises, personnel or warranties, such as equipment that cannot be used due to changes in operations. All provisions are classified as short-term and are expected to lead to an outflow of resources within 12 months of the balance sheet date.
SEK million | Notes | 2021-03-31 | 2020-03-31 |
ASSETS | |||
NON-CURRENT ASSETS | |||
Intangible non-current assets | 14 | 4,496 | 3,240 |
Property, plant and equipment | 15 | 326 | 310 |
Right-of-use assets | 16 | 682 | 626 |
Deferred tax assets | 13 | 29 | 27 |
Other financial assets | 31 | 37 | |
TOTAL NON-CURRENT ASSETS | 5,564 | 4,240 | |
CURRENT ASSETS | |||
Inventories | 18 | 1,661 | 1,642 |
Tax assets | 35 | 2 | |
Accounts receivable | 3 | 1,860 | 2,003 |
Prepaid expenses and accrued income | 19 | 137 | 128 |
Other receivables | 129 | 128 | |
Cash and cash equivalents | 420 | 363 | |
TOTAL CURRENT ASSETS | 4,242 | 4,266 | |
TOTAL ASSETS | 9,806 | 8,506 | |
EQUITY AND LIABILITIES | |||
EQUITY | 20 | ||
Share capital | 51 | 51 | |
Other contributed capital | 344 | 344 | |
Reserves | 39 | 180 | |
Retained earnings, including profit for the year | 2,785 | 2,443 | |
Equity attributable to Parent Company shareholders | 3,219 | 3,018 | |
Non-controlling interests | 231 | 58 | |
TOTAL EQUITY | 3,450 | 3,076 | |
LIABILITIES | |||
Non-current liabilities | |||
Non-current interest-bearing liabilities | 24 | 2,056 | 2,154 |
Provisions for pensions | 22 | 336 | 332 |
Deferred tax liabilities | 13 | 388 | 284 |
Non-Interest-bearing long-term liablities | 9 | 2 | |
Total non-current liabilities | 2,789 | 2,772 | |
Current liabilities | |||
Current interest-bearing liabilities | 25 | 1,162 | 462 |
Accounts payable | 972 | 1,028 | |
Tax liabilities | 151 | 159 | |
Other liabilities | 675 | 435 | |
Accrued expenses and deferred income | 26 | 551 | 528 |
Provisions | 23 | 56 | 46 |
Total current liabilities | 3,567 | 2,658 | |
TOTAL LIABILITIES | 6,356 | 5,430 | |
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES | 9,806 | 8,506 | |
For disclosures regarding contingent liabilities and pledged assets, see Note 27. |