To manage its financial risks, Swedish Match has a finance policy in place established by the Board of Directors.
As a result of its international operations, Swedish Match is exposed to financial risks. The term “financial risks” refers to fluctuations in Swedish Match’s cash flow caused by changes in foreign exchange rates and interest rates, and to risks associated with refinancing and credit. The Group’s finance policy comprises a framework of guidelines and rules governing the management of financial risks and finance operations in general.
The central treasury function is responsible for the Group’s borrowing, currency and interest rate management and serves as an internal bank for the Group’s financial transactions. In addition to ensuring that the Swedish Match Group has secure financing, financial transactions are conducted with the aim of limiting the Group’s financial risks. The Group’s financial risk management is centralized to capitalize on economies of scale and synergy effects, and to minimize operational risks.
Maturity profile of interest bearing liabilities1)2)