Hemnet Group ENG

between 0-30 days depending on the counterparty and there is no significant credit risk concentration to individual counterparties. The outstanding accounts receivable for the five largest customers are gross at SEK 4.5million (SEK 3.0million). Recognition of expected credit losses is made in accordance with IFRS 9, specified in internal regulations. The Group applies the simplifiedmethod of accounting for expected credit losses on accounts receivable. This means that expected credit losses are reserved for the remaining term, which is expected to be less than one year for all receivables. The Group's accounts receivable are divided into two groups: property sellers and other customers. Customers within each group are considered to have a similar risk profile, which is why credit risk is initially assessed collectively for all customers in each group. In the case of individual major receivables that are more than 60 days overdue for payment or where the credit risk is assessed to be significant, the credit provision for these receivables is assessed per counterparty. Hemnet will write off a claimwhen there is no longer any expectation of receiving payment and when active measures to obtain payment have been completed. The Group applies a method based on historical proportion of losses for both customer groups. The method is applied in combination with other known information and forward-looking factors, including information about individual customers andmanagement's assessment of the impact of the sectors' business cycle.

Other contributed capital consists of premiums for a new issue of SEK 1,246.8 million (1,243.6). There is an incentive scheme for senior executives and key employees which includes warrants. See further information in Note G8. Note G21 Financial riskmanagement and financial instruments by category Financial risk factors Through its operations, the Group is exposed to a variety of financial risks: market risks (currency risks, interest rate risks and price risks), credit risks and liquidity risks. The Group's overall risk management policy focuses on the unpredictability of the financial markets and strives tominimise potential adverse effects on the Group's financial results. Risk management is handled by the Group's CFO. The CFO provides monthly information on the Group's results, financial position and business performance to the Board andmanagement of Hemnet. The Group has a finance policy established by the Parent Company's Board of Directors, which states which financial risks the Group is exposed to and how these risks should be limited. FInancial operations should support the operations of the business and be of a non-speculative nature. Interest rate risks consist of risks that developments in the interest rate market will have negative effects on the company. Interest rate risks affect the Group, both as current interest expenses for loans and derivative instruments and as changes in the market value of derivative instruments. According to the company's finance policy, derivative instruments may be used for the management of interest rate risks and currency risks, but only on condition that this follows fromother contractual commitments, such as may exist in, for example, credit financing agreements. The objective of interest rate risk management is to achieve the desired stability in the Group's overall cash flow. At the same time, it must be ensured that possible market value changes on the derivatives required do not pose unacceptable risks to shareholder equity and that requirements from credit institutions on levels of interest rate hedging are met. Currency risks are low and thus not hedged. Credit risks are managed through an efficent monitoring of outstanding receivables. Surplus liquiditymust bemanagedwith the overall goal of preserving capital rather than generating financial income. In the first instance, surplus liquidity should be used to repay debt. Surplus liquidity can be invested as an alternative to amortisation of interest-bearing debt tomeet known future financing needs. The Group operates only marginally on an international basis and currency risks are low. Currency risks arise when future business transactions are expressed in a currency that is not the unit's functional currency. The Group has no or marginal sales in foreign currencies and purchases are made marginally in EUR, USD and GBP. As a result of the limited risk, the company's financial policy is not to hedge these flows, unless there are specific reasons to do so, but tomanage currency risks primarily operationally by seeking to enter into contracts in SEK. Exposure as of December 31, 2021 The Group's risk exposure in foreign currency at the end of the reporting period, expressed inmillion SEK, was the following: 31/12/2021 USD GBP EUR Cash and cash equivalents 0.7 0.1 0.6 Accounts payable 0.4 - 0.4 Accrued income 0.2 - - Market risks Currency risks

G1 G2 G3 G4 G5 G6 G7 G8 G9

G10 G11 G12 G13 G14 G15 G16 G17 G18 G19 G20 G21 G22 G23 G24 G25 G26 G27 G28 G29

Note G18 Other current receivables

31/12/2021 31/12/2020

Settlement receivables

18.1

10.7

VAT recievable

0.2 4.0 0.0

-

Tax account

3.2 0.0

Other Total

22.3 14.0 Settlement receivables refer to receivables from invoicing and payment inter- mediaries used by Hemnet. Note G19 P repaid expenses and accrued income

31/12/2021 31/12/2020

Accrued income

4.3

10.0

Prepaid marketing costs Other prepaid expenses

-

3.4 3.5

3.8 8.1

Total 16.9 In the event the amounts are deemed to be significant, a reserve for expected cre - dit losses is recognised for accrued income. No reserve has been recognised.

P1 P2 P3 P4 P5 P6 P7 P8 P9

Note G20 Equity

Voting rights No. of shares Share capital

Ordinary shares, Series A

96,074,904 5,056,574

96,074,904 5,056,574

73,571,626 3,872,191

Series A1

As of December 31, 2021

101,131,478 101,131,478 77,443,817 As of 31 December 2021, the share capital consists of 101,131,478 shares divided into ordinary shares (Series A) and shares of Series A1. Both series of shares have a voting value of 1 vote per share. Series A1 shares have a veto right against amendments to the objects of the company's articles of association. The holder of Series A1 sharesmay request a conversion of Series A1 shares into ordinary shares. The shares of Series A1 are subject to retention of title according to the articles of association. In all other aspects the ordinary shares and the shares of Series A1 have the same rights.

Financial statements

HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021· 57

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