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, 2010–2012 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 Non-controllin 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 1.00 1.14 3.69 -0.03 0.80 -1.00 1.15 1.11 1.19 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 Non-controllin 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 1.31 1.04 2.82 -0.03 0.84 -1.42 1.12 1.10 1.16 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 Non-controllin 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 0.84 0.96 2.25 -0.06 0.72 -1.35 0.92 0.90 0.94 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 3.5 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