Currency exposure associated with financial instruments
H&M’s currency risk associated with financial instruments is mainly
related to financial investments, accounts payable and derivatives.
The group’s accounts payable in foreign currencies are mainly handled
in Sweden and are largely hedged through forward contracts. Based
on this, a change in the value of the Swedish krona of 2 percent in
relation
to other currencies would result in an insignificant momentary
effect on profit related to the financial instrument holdings as of
the closing date. A 2 percent strengthening of the Swedish krona
would have a positive effect on the hedge reserve in equity of around
SEK 4 m (31) before taking into account the tax effect, of which
SEK 164 m relates to EUR and SEK -208 m to USD.
The group’s exposure to outstanding derivative instruments
is reported in note 16.
The group’s operating result for the year was affected by exchange
rate differences relating to flows of goods in the amount of
SEK -145 m (-1).