Sensitivity analysis

Husqvarna's sales and earnings are impacted by numerous factors. The effects on operating income of changes in selected key factors, as of December 31, 2014, are shown below. These are estimated effects which could occur with an isolated change in each variable.

  • A decline of 10 percentage points in the value of the Swedish krona against the US dollar would have an adverse effect on operating income of approximately SEK -220m*, of which SEK -270m would refer to effects of transactions and SEK -50m to translation differentials.
  • A decline of 10 percentage points in the value of the Swedish krona against the euro would have a positive effect on operating income of approximately SEK 320m*, of which SEK 295m would refer to effects of transactions and SEK 25m to translation differentials.
  • A decline of 10 percentage points in the value of the Swedish krona against all currencies, including USD and EUR, would have a positive effect on operating income of approximately SEK 490m*, of which SEK 330m would refer to effects of transactions and SEK 160m to translation differentials.
  • A change of 1 percentage point in the interest rate on loans would affect net income of approximately SEK +/-23m, on the basis of outstanding loans at year-end 2014.
  • An increase or decrease of 10 percentage points in the price of steel would affect operating income by -/+ SEK 160m.
  • An increase or decrease of 10 percentage points in the price of aluminum would affect operating income by -/+ SEK 45m.
  • An increase or decrease of 10 percentage points in the price of plastics would affect operating income by -/+ SEK 90m.

* Excluding hedging effects.

No dynamic effects are included in the above sensitivity analysis.