What is SinterCast’s currency policy when signing production contracts with the payment in currencies other than SEK?


Shareholder, name withheld

The majority of SinterCast’s revenues, and approximately half of its expenses, are realised in currencies other than SEK. Because the financial statements of the SinterCast Group are presented in SEK, the amount received in foreign currencies will vary depending on the currency rate fluctuations. For example, when the USD revenues exceed the USD expenses, and if the SEK decreases against the USD, the net result for the SinterCast Group will increase. In the same way, the net result for the Group can decrease should the SEK strengthen against the USD.

In order to minimize these fluctuations, the currency exchange rate for all revenues that substantially exceed our local currency expense level are secured (hedged) once the revenue level is known. The decision to secure the rate is based on published currency market forecasts and is in-line with standard practice for companies that work in international markets.