assessment, a risk assessment is made of the customer's credit rating, taking into account his/her financial position, as well as past experience and other factors. Credit risk exposure and possible provision for expected loan losses are stated in Note G17 Accounts receivable, Note G19 Prepaid expenses and deferred income and Note G26 Cash and cash equivalents. Liquidity risks Cash flow forecasts are prepared by the Group's operating companies and aggregated at the Group level. At the Group level, careful rolling forecasts for the Group's liquidity reserve are followed to ensure that the Group has sufficient cash to meet the needs of its ongoing operations. At Group level, surplus liquidity may be invested in interest-bearing settlement accounts or interest-bearing money market instruments, depending on which instrument has the appropriate maturity or sufficient liquidity to meet the scope provided by the aforementioned forecasts. Credit facility The Group has the following total credit facility as of December 31, 2021: SEK 500 million. The Group has the following unutilised credit facility as of December 31, 2021: SEK 220 million. Variable interest rate on utilised credit: Stibor plus 1,40 – 2,00 percent, depending on Net Leverage. Fixed interest on unutilised credit: 0.35 percent
31/12/2020
USD
GBP
EUR
Cash and cash equivalents
0.6
0.1
0.5 0.1
Accounts payable Accrued income
- -
3.6
-
G1 G2 G3 G4 G5 G6 G7 G8 G9
Sensitivity As shown in the table above, the Group is marginally exposed to changes in the exchange rate for USD/SEK, GBP/SEK and EUR/SEK. If the Swedish krona had weakened/strengthened by 10 percent in relation to the USDwith all other variables constant, the recalculated profit after tax/ effect on shareholder's equity as of December 31, 2021would be SEK 49 thousand lower/higher, as a result of profits/losses on conversion of accrued income, cash and cash equivalents and accounts payable in USD. If the Swedish krona had weakened/strengthened by 10 percent relative to GBP with all other variables constant, the recalculated profit after tax/effect on shareholder's equity as of December 31, 2021 would be SEK 6 thousand higher/lower, largely as a result. of gains/losses on the conversion of cash and cash equivalents in GBP. If the Swedish krona had weakened/strengthened by 10 percent relative to the EUR with all other variables constant, the recalculated profit after tax/effect on shareholder equity as of December 31, 2021 would be SEK 13 thousand higher/ lower, largely as a result of gains/losses on the conversion of cash and cash equivalents and accounts payable in EUR. Amounts reported in the Group's statement of comprehensive income During the year, the following currency-related amounts were reported in the consolidated income statement: 2021 2020
G10 G11 G12 G13 G14 G15 G16 G17 G18 G19 G20 G21 G22 G23 G24 G25 G26 G27 G28 G29
Expires within one year (bank loan) SEK - million Expires after more than one year (bank loan) SEK 277.9 million
The credit facilities can be utilised at any time provided that the covenants in the loan agreement are fulfilled. The table on the next page analyses the Group's financial liabilities broken down by the time remaining on the balance sheet date until the contractual maturity date. The amounts stated in the table are the contractual, undiscounted cash flows. Capital management Hemnet's capital structure objective is to achieve a net debt to adjusted EBITDA ratio of less than 2.0x. Hemnet’s capital under management consists of equity. Changes in equity under management are shown in the Group's statement of changes in equity. In order to maintain or adjust the capital structure, the Group may change the dividend paid to the shareholders, repay capital to the shareholders, issue new shares or sell assets to reduce liabilities. The Group assesses its capital needs based, among other things, on its capital structure, which is assessed on the basis of the net debt/adjusted EBITDA ratio and amounts to 0.5 (2.1) at 31 December 2021. Net debt is calculated as total interest-bearing liabilities (comprising the items due to credit institutions and lease liabilities in the consolidated balance sheet) less cash and cash equivalents and short-term investments.
Net exchange rate gain (+)/ loss (-), included in other operating income/ other operating expenses Net exchange rate gains (+)/ currency (-), included in financial income/expenses
-0.5
-0.5
0.1
-0.1
Interest rate risks The Group's interest rate risks arise through long- and short-termborrowing. Liabilities to credit institutions constitute a bank loan fromNordea that is subject to variable interest rates and exposes the Group to interest rate risk with respect to cash flow, which is partially neutralised by cash with variable interest rates. The bank loan was renegotiated and extended during the year. The loanmatures May 27, 2024 and runs at a variable interest rate equivalent to Stibor plus 1.40-2.00 percent per year, depending on the covenant Net Leverage. The fee for the undrawn part of the facility is 0.35 percent. The bank loan has a revolving credit, whichmeans that the Group has a loan facility that makes it possible to use the unused credit at no extra cost. The Group has two covenants to relate to: Net Leverage and Interest Cover. Net leverage is calculated according to the formula net debt/consolidated EBITDA. Net debt refers to total interest-bearing liabilities (comprising the items due to credit institutions and lease liabilities in the consolidated balance sheet) less cash and cash equivalents and short-term investments. Interest Cover is calculated according to the formula consolidated EBITDA/financial expenses, net. The Group's borrowing is only in Swedish kronor. It is possible to take out a loan in another currency. Sensitivity If interest rates on borrowing in Swedish kronor in 2021 were 100 basis points higher/lower with all other variables constant, the calculated profit after tax for the financial year would have been SEK 3.8 million higher/lower, as an effect of higher/lower interest costs for borrowing with variable interest rates. Credit risks Credit risks are managed at the Group level, with the exception of credit risks regarding outstanding accounts receivable where analysis is done for each Group company. Credit risks arise through liquid funds and balances with banks, as well as credit exposures to customers. There is no high concentration of credit risks, either through exposure to individual customers, specific industries or regions. In cases where there is no independent credit
P1 P2 P3 P4 P5 P6 P7 P8 P9
58 · HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021
Financial statements
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