FINANCIAL INFORMATION
PROPOSED
DISTRIBUTION OF PROFIT
THE FOLLOWING IS AT THE DISPOSAL
OF THE ANNUAL GENERAL MEETING
SEK
Retained earnings
Share premium reserve
Result for the year
Total
CONSOLIDATION REQUIREMENTS
997 261 063
48 017 672
350 034 084
1 395 312 819
The Board proposes a dividend of SEK 1.70 (1.35) per share,
corresponding to SEK 112 784 023 (89 563 783), and that
SEK 1 282 528 796, is carried forward.
THE BOARD OF DIRECTORS' STATEMENT
REGARDING DISTRIBUTION OF PROFITS
JUSTIFICATION
Consolidated equity has been calculated according to the IFRS
standards as adopted by the EU, and in accordance with Swedish
law through the application of the Swedish Financial Reporting
Board’s recommendation, RFR 1 (Supplementary Accounting
Rules for Corporate Groups). The Parent Company’s equity
has been calculated according to Swedish law and through the
application of the Swedish Financial Reporting Board’s recom-
mendation, RFR 2 (Accounting for Legal Entities).
The proposed distribution of profits corresponds to 32 % of the
Group’s profits for the year, which is in line with the stated objective
that dividend should equate to 40 % of the Group’s profits for
the year over one business cycle. Investment plans, consolidation
requirements, liquidity and overall position have been taken
into account. The Board finds that there is full coverage of the
Company’s restricted equity following the proposed distribution
of profits.
The Board also finds that the proposed dividend to shareholders
is justified with regard to the parameters stated in chapter 17,
section 3, paragraphs 2 and 3 of the Companies Act (the nature,
scope, and risks of the business, and consolidation requirements,
liquidity, and overall position).
In relation to this, the Board would like to stress the following:
THE NATURE, SCOPE & RISKS OF THE BUSINESS
The Board deems that Company equity and consolidated equity
following the proposed distribution of profits will be sufficient in
relation to the nature, scope, and risks of the business. In relation
to this, the Board takes into account the Company’s and the
Group’s historical and budgeted development, investment plans,
and the economic situation.
56 | NWG 2017
The Board has undertaken a comprehensive assessment of the
Company’s financial position and its ability to honour its future
commitments. The proposed dividend represents 6.1 % of the
Company’s equity and 3.7 % of consolidated equity. The objective
stated with regard to the Group’s capital structure for an equity
ratio of at least 30 % is retained following the proposed dividend.
The Company’s and the Group’s equity ratio is good. Against
this background, the Board considers that the Company and the
Group have the necessary conditions for taking future business
risks and to withstand any losses. Planned investments have
been taken into account in determining the proposed dividend.
The distribution of profits will have no negative effect on the
Company’s and the Group’s ability to make further commercially
motivated investments according to the adopted plans.
LIQUIDITY
The proposed distribution of profits will not affect the Company’s
and the Group’s ability to honour its payment obligations on time.
The Company and the Group have access to liquid asset reserves
in the form of both short and long-term credit. The credit can be
obtained at short notice, which means that the Company and the
Group are prepared to overcome liquidity variations as well as any
unexpected events.
POSITION
The Board has evaluated all other known conditions which may be
of significance for the Company’s and the Group’s financial position
and which have not been considered within the framework of that
which has been stated above. In relation to this, no circumstance
has arisen which makes the proposed dividend seem unjustifiable.
The undersigned certify that the consolidated and annual
accounts have been prepared in accordance with the IFRS inter-
national financial reporting standards, as adopted by the EU, and
generally accepted accounting principles, and provide an accurate
account of the Group’s financial position and performance, and
that the Group Directors’ Report and Board of Directors’ Report
provide an accurate overview of the development of the Group’s
and the Company’s operations, financial position and perfor-
mance, and describe the significant risks and safety factors faced
by the companies in the Group.