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G13 Property, plant and equipment

Group notes – Property, plant and equipment

 

Land and buildings

Plant and machinery

Rental fleet

Equipment, tools, fixtures and fittings

Construction in progress

Total

Acquisition cost

 

 

 

 

 

 

At January 1, 2024

14,344

31,206

2,619

6,350

3,069

57,590

Additions

156

853

1,407

353

2,203

4,972

Business combinations

85

887

37

139

1,147

Divestments and disposals

–199

–1,201

–584

–512

–124

–2,618

Reclassifications

352

1,367

–310

350

–2,286

–526

Translation differences for the year

551

1,181

82

197

107

2,117

At December 31, 2024

15,289

34,293

3,215

6,775

3,108

62,681

Accumulated depreciations and impairments

At January 1, 2024

6,880

22,694

1,254

4,489

39

35,356

Divestments and disposals

–99

–1,134

–433

–469

–39

–2,174

Impairment losses

27

72

4

5

108

Reversal of impairment losses

–34

–34

Reclassifications

13

–7

–124

5

–113

Depreciation for the year

491

1,807

767

532

3,598

Translation differences for the year

262

816

36

146

1,261

At December 31, 2024

7,575

24,214

1,505

4,708

38,002

Net carrying amount

At December 31, 2024

7,715

10,079

1,710

2,067

3,108

24,678

 

 

 

 

 

 

 

Acquisition cost

 

 

 

 

 

 

At January 1, 2025

15,289

34,293

3,215

6,775

3,108

62,681

Additions

504

636

995

319

1,376

3,830

Business combinations

1

12

3

16

Divestments and disposals

–562

–858

–371

–342

–39

–2,172

Reclassifications

369

1,220

–237

342

–1,937

–243

Translation differences for the year

–1,216

–2,842

–372

–496

–187

–5,112

At December 31, 2025

14,385

32,462

3,230

6,600

2,321

58,999

Accumulated depreciations and impairments

At January 1, 2025

7,575

24,214

1,505

4,708

38,002

Divestments and disposals

–461

–785

–268

–315

–1,830

Impairment losses

2

10

14

26

Reversal of impairment losses

–6

–7

Reclassifications

4

29

–93

55

–5

Depreciation for the year

494

1,757

695

541

3,488

Translation differences for the year

–584

–1,897

–192

–342

–3,015

At December 31, 2025

7,029

23,322

1,661

4,648

36,660

Net carrying amount

At December 31, 2025

7,357

9,140

1,569

1,953

2,321

22,339

Additional information

In 2025, contractual commitments for the acquisition of property, plant and equipment amounted to SEK 395 million (460). Property, plant and equipment pledged as security for liabilities is described in G26.

§ Accounting principles

Rental fleet

The fleet is balanced between underground drills, loaders and trucks followed by surface drills. The largest fleets are based in northern Europe, Canada, the US, and Australia.

Depreciation of property, plant and equipment

Depreciation is recognized on a straight-line basis (unless otherwise described) based on the cost of the assets, adjusted by residual value when applicable, and estimated useful lives. The following depreciation periods are applied:

Land and buildings:

  • Land: indefinite useful life

  • Buildings: 10–50 years

  • Site improvements: 20 years

Plant and machinery:

  • Plant and machinery: 5–15 years

  • Rental fleet: 3 years

Equipment, tools, fixtures and fittings:

  • Depreciated over the estimated useful lives

  • Computer equipment is depreciated over 3–5 years using the reducing balance method

If an item of property, plant and equipment comprises components with different useful lives, each such significant component is depreciated separately. Depreciation methods and estimated residual values and useful lives are reviewed at each year-end.

Borrowing costs

The capitalization of borrowing costs relating to tangibles are mainly relevant for the construction of production buildings on a proprietary basis.

! Critical estimates and key judgments

Impairment of non-current assets

An impairment test is based on estimation of the recoverable amount of the asset, or the cash generating unit to which the asset belongs. To determine the recoverable amount, projections of future cash flows are used. These are based on management best estimate but may differ from actual outcome.

There are production sites in areas with physical climate risks, these may be subject to increased stress from physical weather events. Physical risks bring uncertainties when estimating useful life and indication of impairment.