P20. Financial risk management

Principles, capital management and management of financial risks

For information relevant to TeliaSonera AB, see Notes to consolidated financial statements (Note C26).

Credit risk management

TeliaSonera’s exposure to credit risk arises from default of counterparts (including price risks as regards investments in equity instruments), with a maximum exposure equal to the carrying amount of these instruments (detailed in the respective note and excluding receivables from subsidiaries), as follows.

SEK in millions

Note

Dec 31, 2015

Dec 31, 2014

Other financial assets

P10

14,776

12,057

Trade and other receivables

P11

1,159

3,573

Short-term investments, cash and cash equivalents

P12

18,773

22,762

Total

 

34,708

38,392

For information on credit risk management relevant to TeliaSonera AB, see Notes to consolidated financial statements (corresponding section in Note C26).

Liquidity risk management

Liquidity risk is the risk that TeliaSonera AB will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. For information on liquidity risk management relevant to TeliaSonera AB, see Notes to consolidated financial statements (corresponding section in Note C26).

As of December 31, 2015, contractual undiscounted cash flows for interest-bearing borrowings and non-interest-bearing currency derivatives (excluding intra-group derivatives) represented the following expected maturities, including installments and estimated interest payments. The balances due within 12 months equal their carrying values as the impact of discounting is insignificant.

Expected maturity
SEK in millions

Jan–Mar 2016

Apr–Jun 2016

Jul–Sep 2016

Oct–Dec 2016

2017

2018

2019

2020

Later years

Total

Open-market financing program borrowings

6,817

239

1,868

1,466

11,221

4,155

11,293

9,619

69,734

116,412

Other borrowings

3,361

3,361

Cross currency interest rate swaps and
interest rate swaps

                   

Payables

38,774

3

81

344

14

1

39,216

Receivables

-38,985

-3

-81

-344

-13

-1

-39,427

Currency swaps and forward exchange contracts

                   

Payables

6,478

207

259

743

9,703

4,582

5,552

884

31,482

59,890

Receivables

-7,797

-145

-200

-813

-10,840

-5,139

-5,576

-909

-30,678

-62,097

Total, net

8,648

301

1,926

1,395

10,084

3,599

11,269

9,595

70,538

117,355

Expected maturities for and additional information on non-interest-bearing liabilities, guarantees and other contractual obligations are presented in Notes P15 “Other provisions,” P18 “Short-term provisions, trade payables and other current liabilities” and P23 “Contingencies, other contractual obligations and litigation,” respectively.

© TeliaSonera 2015
In the event of any differences between this online version of the Annual and sustainability report and the printed version, the printed version shall prevail.