Foreign exchange risk
Electrolux Professional’s solutions and products are manufactured in thirteen facilities located in eight countries around the world and sold in approximately 110 countries. Accordingly, the Group is exposed to currency risks. Foreign exchange risk is defined as the risk that fluctuations in currency exchange rates have a negative impact on the Group’s financial position, profitability, or cash flow and includes transaction exposure and translation exposure.
Sensitivity analysis of major currencies
| Currency | Change | Profit or loss impact 2023 | Profit or loss impact 2022 |
|---|---|---|---|
| USD/SEK | -10% | -94 | -92 |
| GBP/SEK | -10% | -19 | -23 |
| EUR/SEK | -10% | -17 | 8 |
| JPY/SEK | -10% | -10 | -5 |
| DKK/SEK | -10% | -10 | -11 |
| TRY/SEK | -10% | -9 | -6 |
| NOK/SEK | -10% | -8 | -8 |
| CZK/SEK | -10% | -4 | -4 |
| AUD/SEK | -10% | -3 | 3 |
| THB/SEK | -10% | 24 | 21 |
Interest rate risk
Interest-rate risk refers to the adverse effects of changes in interest rates on the Group’s income. The main factor determining this risk is the interest-fixing period. In 2023, the Group’s average interestfixing period was 1.1 years.
Interest rate risk on basis of 2023 borrowings
| Rate | Impact on interest rate expenses |
|---|---|
| +1% | SEK +13msek on a yearly basis |