Financial Policy
As a consequence of its operations,
the group is exposed to various types of financial risk, comprising fluctuations
in the company’s profits and cash flow ensuing from variations in
exchange rates, interest levels and credit risks. The Board of Directors
resolves on currency hedging and additional new long-term funding.
Interest risks
Beijer Electronics' net financial income/expenses and
profit are affected by fluctuations in interest rates. The group's average
interest fixing period is approximately 4 years. Interest rates very between 2.5
and 2.7 per cent. Average interest is approximately 2.7 per cent.
Credit risks
The group is exposed to credit risks in accounts
receivable. The group has formulated guidelines to ensure that the
sales of products and services
are made to customers with suitable creditworthiness. The risk of
bad debt in large accounts receivable is limited through credit
insurance.
Currency risks
The group operates
internationally and is exposed to various types of currency risk. The
primary currency exposure relates to purchases and sales in
foreign currencies, where the risk may comprise fluctuations in the currency
of the financial instrument, customer's or supplier's invoice, and the currency risk
in expected or contracted payment flows, termed transaction exposure.
The parent company has a number of holdings in foreign
subsidiaries whose net assets are exposed to translation differences. The company’s policy is not
to hedge the foreign currency conversion exposure.
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