Fair value estimation
For those financial assets and liabilities, which have been recognized at fair value in the Consolidated statement of financial position, the measurement hierarchy and valuation methods described below have been applied. There have been no transfers between fair value levels.
Level 1
Quoted unadjusted prices at reporting date in active markets. The market prices are readily and regularly available from an exchange, dealer, broker, market data provider, pricing service or regulatory agency. The quoted market price used for financial assets is the current bid price. Level 1 financial instruments include equity investments classified as financial assets at fair value through other comprehensive income.
Level 2
The fair value of financial instruments in Level 2 is determined using valuation techniques. These techniques utilize observable market data readily and regularly available from an exchange, dealer, broker, market data provider, pricing service or regulatory agency. Level 2 financial instruments include over-the-counter (OTC) derivatives classified as financial assets and liabilities at fair value through profit or loss or derivatives qualified for hedge accounting and all other financial assets and liabilities except for equity investments.
Level 3
A financial instrument is categorized into Level 3 if the calculation of the fair value cannot be based on observable market data. Level 3 financial instruments include equity investments classified as financial assets at fair value through profit or loss. There were no changes in Level 3 instruments for the 12 months ended December 31, 2024.
Classification of financial assets and liabilities as at December 31, 2024:
| EUR million | 2024 | 2023 |
| Non-current financial assets | ||
| Equity investments at fair value through other comprehensive income | 10 | 8 |
| Equity investments at fair value through profit or loss | 2 | 2 |
| Trade receivables at amortized cost | 22 | 8 |
| Derivative financial instruments at fair value through profit or loss | - | - |
| Derivative financial instruments qualified for hedge accounting | 6 | 12 |
| Carrying value at end of the period | 40 | 31 |
| Current financial assets | ||
| Interest-bearing financial assets at fair value through other comprehensive income | 30 | 25 |
| Non-interest-bearing financial assets at amortized cost | 8 | 3 |
| Trade receivables at amortized cost | 862 | 973 |
| Derivative financial instruments at fair value through profit or loss | 9 | 20 |
| Derivative financial instruments qualified for hedge accounting | 482 | 432 |
| Carrying value at end of the period | 1,406 | 1,460 |
| EUR million | 2024 | 2023 |
| Non-current financial liabilities | ||
| Loans from financial institutions at amortized cost | 1,071 | 1,240 |
| Bonds at amortized cost | 202 | - |
| Lease liabilities at amortized cost | 107 | 98 |
| Derivative financial instruments at fair value through profit or loss¹ | - | - |
| Derivative financial instruments qualified for hedge accounting¹ | 12 | 11 |
| Carrying value at end of the period | 1,392 | 1,349 |
| Current financial liabilities | ||
| Loans from financial institutions at amortized cost | 94 | 40 |
| Lease liabilities at amortized cost | 50 | 43 |
| Interest-bearing liabilities at amortized cost | 20 | 63 |
| Trade payables at amortized cost | 460 | 520 |
| Derivative financial instruments at fair value through profit or loss | 7 | 8 |
| Derivative financial instruments qualified for hedge accounting | 24 | 26 |
| Carrying value at end of the period | 656 | 700 |
¹ Included in Other non-current liabilities in the Consolidated statement of financial position