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48
financial statements 2011
Liquidity risk
The liquidity risk relates to the repayment of debts, the payment of investments and the adequacy of working
capital. The Edita Group strives to minimize its liquidity risk and the repayment of its future financial liabilities by
ensuring sufficient finance from income, by maintaining a sufficient investment reserve and sufficient credit limit
reserves and by evening out loan repayment schedules between different calendar years. The Group’s liquidity
remained positive during 2011. At the end of the year, cash and cash equivalents totaled eur 6.2 million (EUR 7.0
million on December 31, 2010), in addition to which the Group had confirmed credit limits of EUR 5.0 million
available for withdrawal. Loan covenants are reported to investors semi-annually. During the 2011 financial year,
the Group was able to meet all of the covenant terms of its loans relating to operating cash flow targets and the
equity-to-assets ratio. The management regularly monitors the fulfillment of loan covenant terms. The Group’s
management has not identified any material liquidity risk concentrations in its financial assets or sources of
finance. The liquidity risk is monitored constantly and liquidity forecasts are made regularly. The following table
shows a maturity analysis based on agreements made.
Breakdown of maturities of financial liabilities 2011
Statement of financial
Cash 12 months
1–2
2–5 over 5
eur 1000
position value*
flow**
or less years
years
years
Financial liabilities
17 053
18 099
3 869 4 007
9 641
583
Finance lease liabilities
3 730
4 050
1 086
776
1 749
439
Accounts payable and other liabilities
23 984
23 984
23 984
Maturity breakdown of derivative liabilities
Interest rate derivatives, hedge
accounting not applied
249
249
12
237
Breakdown of maturities of financial liabilities 2010
Statement of financial
Cash 12 months
1–2
2–5 over 5
eur 1000
position value*
flow**
or less years
years
years
Financial liabilities
20 933
21 967
4 193
3 743
13 274
757
Finance lease liabilities
4 436
4 904
1 169
1 031
2 072
632
Accounts payable and other liabilities
21 949
21 949
21 949
Maturity breakdown of derivative liabilities
Interest rate derivatives, hedge
accounting not applied
275
275
69
206
*Amount corresponds to the amount in the statement of financial position
**Also includes interest
Credit risk
The Edita Group’s credit risks relate to operating activities. The Group’s credit risk policy defines the
creditworthiness requirements for customers and the investment policy. The Group has no significant credit
risk concentrations because, with the current business areas, it has a wide range of customers, and these are
mainly divided between the two domestic markets of Finland and Sweden. The Group has seen no need to use
credit insurance policies, letters of credit or bank guarantees provided by customers. The operating units are
responsible for the credit risks related to operating activities, and all decisions on provisions and impairment losses
are made by the Group on the basis of their assessments. The balance sheet values of sales receivables and other
receivables best describe the cash sum that the receivables are expected to generate. The Group’s total amount
of credit risk corresponds to the carrying amount of financial assets at the end of the financial year. A list of the
age distribution of sales receivables is presented in Note 21.