F oreign currenc y risks The t ables belo w sho w ho w the Group s capit al emplo y ed is dis tributed b y currenc y and its fnancin g The y also sho w the sensitivit y of the net debt and capit al emplo y ed to chan g es in the SEK e x chan g e r ate The consolidated s t atement of income is afected b y the tr anslation to SEK of the s t atements of income of foreign subsidiaries As these subsidiar ies essentially oper ate only in local currenc y their competitiv e situation is not afected b y chan g es in e x chan g e r ates and since the Group as a whole is g eogr aphically div er sifed this e xposure is not hed g ed Group internal currenc y fo ws bet w een holdin g companies and subsidiaries in respect of dividends are normally hed g ed to SEK immediately the amount is a greed bet w een the internal parties C APIT AL EMPL O YED AND FINANCING PER CURRENCY AS PER DECEMBER 31 20102012 M SEK E u R u S D GBP Other currencies T ot al foreign currencies SEK T ot al Group T ot al Group 10 1 T ot al Group 10 1 December 31 2012 Capit al emplo y ed 6 835 7 350 1 276 2 998 18 459 6 18 465 20 312 16 620 Net debt 3 412 3 913 1 004 104 8 225 1 640 9 865 10 688 9 043 Noncontrollin g interes ts 3 11 14 14 15 13 Net e xposure 3 420 3 437 272 3 091 10 220 1 634 8 586 9 609 7 564 Ne t deb t t o equit y ratio 100 114 369 003 080 100 115 111 119 December 31 2011 Capit al emplo y ed 6 989 7 757 1 210 3 114 19 070 484 19 554 21 461 17 647 Net debt 3 966 3 955 893 89 8 725 1 624 10 349 11 222 9 477 Noncontrollin g interes ts 4 1 3 3 3 2 Net e xposure 3 019 3 802 317 3 204 10 342 1 140 9 202 10 236 8 168 Ne t deb t t o equit y ratio 131 104 282 003 084 142 112 110 116 December 31 2010 Capit al emplo y ed 6 834 7 270 709 2 030 16 843 304 17 147 18 831 15 463 Net debt 3 119 3 555 491 135 7 030 1 179 8 209 8 912 7 506 Noncontrollin g interes ts 3 3 3 3 3 Net e xposure 3 712 3 715 218 2 165 9 810 875 8 935 9 916 7 954 Ne t deb t t o equit y ratio 084 096 225 006 072 135 092 090 094 1 Chan g es in capit al emplo y ed due to chan g es in foreign e x chan g e r ates are accounted for in other comprehensiv e income Consequently the y do not impact net income Financin g of foreign assets tr anslation risk T r anslation risk is the risk that the SEK v alue of foreign currenc y equit y will fuctuate due to chan g es in foreign e x chan g e r ates Securit as foreign currenc y capit al emplo y ed as of December 31 2012 w as M SEK 18 459 19 070 and 16 843 Capit al emplo y ed is fnanced b y loans in local currenc y and shareholder s equit y This means that Securit as from a Group per spectiv e has shareholder s equit y in foreign currenc y that is e xposed to chan g es in e x chan g e r ates This e xposure g iv es rise to a tr ans lation risk and consequently unfa v our able chan g es in e x chan g e r ates could ha v e a ne gativ e efect on the Group s foreign net assets when tr anslated into SEK With the object of minimizin g the impact of chan g es in e x chan g e r ates on the Group s net debt to equit y r atio Securit as aims to maint ain a lon g term debt to equit y r atio in U SD and E UR that is close to the Group s tot al debt to equit y r atio T r ansaction risk T r ansaction risk is the risk that the Group s net income will be afected b y chan g es in the v alue of commercial fo ws in foreign currencies due to fuctuatin g e x chan g e r ates The nature of the business is domes tic r ather than cross bor der and consequently foreign currenc y tr ansaction risk is not signifcant Financin g and liquidit y risk The Group s short term liquidit y is ensured b y maint ainin g a liquidit y reser v e cash and bank deposits short term in v es tments and the unutiliz ed portion of commit ted credit facilities which should correspond to a minimum of 5 percent of consolidated annual sales As of December 31 2012 the short term liquidit y reser v e corresponded to 16 percent 8 and 7 of the Group s annual sales The Group s lon g term fnancin g risk is minimiz ed b y ensurin g that the le v el of lon g term fnancin g shareholder s equit y lon g term commit ted loan facilities and lon g term bond loans at leas t matches the Group s capit al emplo y ed Per December 31 2012 lon g term fnancin g corresponded to 163 percent 142 and 135 of the Group s capit al emplo y ed Lon g term fnancin g of the Group should be w ell balanced amon g diferent sources The aim is that lon g term commit ted loan facilities and lon g term bond loans should ha v e an a v er a g e maturit y of more than 35 y ear s As per December 31 2012 the a v er a g e maturit y w as 2 y ear s and 8 months The follo win g t ables summariz e the Group s liquidit y risk at end 2012 2011 and 2010 respectiv ely 87 Annual R eport Notes and comments to the consolidated fnancial s t atements Securit as Annual R eport 2012