G14 Right-of-use assets and customer financing
Sandvik as lessee
|
Land and buildings |
Plant and machinery |
Fixture and fittings |
Total |
|---|---|---|---|---|
Acquisition cost |
|
|
|
|
At January 1, 2024 |
6,792 |
541 |
1,383 |
8,716 |
Additions |
1,077 |
103 |
502 |
1,682 |
Divestments and disposals |
–796 |
–112 |
–318 |
–1,226 |
Other |
657 |
18 |
72 |
746 |
At December 31, 2024 |
7,729 |
550 |
1,638 |
9,918 |
Accumulated depreciation and impairment losses |
|
|
|
|
At January 1, 2024 |
2,410 |
258 |
663 |
3,332 |
Depreciation and impairment |
1,084 |
114 |
402 |
1,599 |
Divestments and disposals |
–618 |
–112 |
–296 |
–1,025 |
Other |
108 |
–1 |
28 |
135 |
At December 31, 2024 |
2,985 |
259 |
797 |
4,040 |
Net carrying amount |
|
|
|
|
At December 31, 2024 |
4,745 |
291 |
842 |
5,877 |
|
|
|
|
|
Acquisition cost |
|
|
|
|
At January 1, 2025 |
7,729 |
550 |
1,638 |
9,918 |
Additions |
875 |
103 |
429 |
1,406 |
Divestments and disposals |
–429 |
–79 |
–307 |
–814 |
Other |
–636 |
–38 |
–145 |
–819 |
At December 31, 2025 |
7,539 |
536 |
1,615 |
9,690 |
Accumulated depreciation and impairment losses |
|
|
|
|
At January 1, 2025 |
2,985 |
259 |
797 |
4,040 |
Depreciation and impairment |
945 |
125 |
422 |
1,491 |
Divestments and disposals |
–399 |
–75 |
–305 |
–780 |
Other |
–361 |
–23 |
–87 |
–471 |
At December 31, 2025 |
3,170 |
285 |
826 |
4,281 |
Net carrying amount |
|
|
|
|
At December 31, 2025 |
4,369 |
251 |
789 |
5,410 |
|
2024 |
2025 |
|---|---|---|
Depreciations for the year |
–1,481 |
–1,492 |
Impairment losses/reversal of impairment losses |
–119 |
1 |
Expenses for low value assets |
–41 |
–35 |
Expenses for short-term leases |
–22 |
–20 |
Expenses related to variable lease expenses not included in the lease liability |
–92 |
–88 |
Recognized in operating income |
–1,754 |
–1,635 |
Interest expenses related to lease liabilities |
–268 |
–266 |
Recognized in net financial items |
–268 |
–266 |
The total cash outflow for leases during the year |
–1,861 |
–1,842 |
Sandvik as lessor
Sandvik offers short- and long-term equipment financing to customers through its own financial services companies and in cooperation with financial institutions and banks. The structures of the offers are financial or operational lease agreements and short-term rentals. The customers of these services are in the mining and construction sectors.
For information related to credit risk, see note G27.
|
Finance leases |
Operating leases |
|---|---|---|
2026 |
3,220 |
494 |
2027 |
1,804 |
287 |
2028 |
1,002 |
168 |
2029 |
394 |
66 |
2030 |
145 |
6 |
2031 or later |
15 |
8 |
Total undiscounted lease payments |
6,579 |
1,028 |
Finance leases
At year-end, the value of outstanding credits referring to finance leases amounted to SEK 5,650 million (6,332), of which SEK –129 million (–147) was reserved for doubtful receivables.
|
2024 |
2025 |
|---|---|---|
Profit from sale of equipment subject to finance leases (recognized within sale of goods) |
927 |
872 |
Interest income |
420 |
428 |
Operational leases
The revenue for equipment subject to operational lease contacts is presented in note G3 under rental income. The equipment used in operating lease contracts are presented under rental fleet in note G13.
§ Accounting principles
Sandvik as a lessee
The Right of use (RoU) asset is presented within non-current assets and valued at cost less amortization and impairment, if applicable. The asset is depreciated on a straight-line basis over the estimated contract period. Lease liabilities are presented within other interest bearing liabilities, see note G22.
Sandvik separates non-lease components from the lease components in contracts referring to buildings. For all other asset classes, non-lease components are included in the calculation of a RoU asset and lease liability.
Sandvik applies the two expedients concerning leases, leases shorter than one year and low-value assets that are not considered in the RoU assets and lease liabilities.
Sandvik as a lessor
In a financial lease contract Sandvik recognizes a non-current and current customer-financing receivable at an amount equal to the net investment in the lease. Expected credit losses is reflected in the valuation of the customer-financing receivable at initial recognition and the provision is reassessed during the contract period. Revenue is recognized in accordance with revenue recognition principles.
In an operating lease contract the asset is classified as rental fleet and is subject to the Group’s depreciation policies. The cost of an asset comprises the acquisition value and any initial direct costs related to the contract. The lease revenue is recognized on a straight-line basis over the lease contract period.