Foreign exchange risk

Electrolux Professional’s solutions and products are manufactured in twelve facilities located in seven 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 company’s financial position, profitability or cash flow.

The major net export currencies that Electrolux Professional is exposed to are the EUR, THB and SEK. The major import currencies that Electrolux Professional is exposed to are the USD, GBP, JPY, DKK, NOK and CNY. These currencies represent the majority of the exposures of the Group.

Sensitivity analysis of major currencies

Currency	Change	Profit or loss impact 2022	Profit or loss impact 2021
USD/SEK	-10%	-92	-53
GBP/SEK	-10%	-23	-20
DKK/SEK	-10%	-11	-10
NOK/SEK	-10%	-8	-8
TRY/SEK	-10%	-6	-5
JPY/SEK	-10%	-5	-7
CHF/SEK	-10%	-3	-2
CNY/SEK	-10%	-3	-7
EUR/SEK	-10%	8	24
THB/SEK	-10%	21	24

 

Interest rate risk

Interest-rate risk refers to the adverse effects of changes in interest rates on the Group’s income. On the basis of 2022 borrowings with an average interest fixing period of 0.4 years and considering that the amount of loans outstanding as at December 31, 2022 was approximately SEK 2.9bn, a 1% point shift in interest rates would impact the Group’s interest
expenses by approximately SEK 27m.

Interest rate:     Interest expense:

+1%                         SEK +27m