New Wave Group Annual Report 2022 NWG_Annual_Report_2022_EN | Page 70

NWG // FINANCIAL INFORMATION

Proposed distribution of profit

The following is at the disposal of the Annual General Meeting :

The Board proposes a dividend of SEK 6.50 ( 4.25 ) per share ( before split ), corresponding to SEK 431 233 030 ( 281,960,058 ), and that SEK 1,674,364,773 is carried forward . The dividend is divided into two payment occasions .

The board proposes that the general meeting decide on a 2:1 split , meaning that an existing share is divided into two shares .

The Board of Directors ' statement regarding distribution of profit

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 recommendation , RFR 2 Accounting for Legal Entities .

The proposed distribution of profit corresponds to 37 % of the Group ’ s result 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 profit .

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 and risks of the business The Board deems that Company equity and consolidated equity following the proposed distribution of profit 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 .

Consolidation requirements The Board has undertaken a comprehensive assessment of the Company ’ s financial position and its ability to honor its future commitments . The proposed dividend represents 16.9 % of the Company ’ s equity and 7.3 % 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 profit 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 profit 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 .

Overall 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 International Financial Reporting Standards ( IFRS ), as adopted by the EU , and generally accepted accounting principles , and provide a true and fair view 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 performance , and describe the significant risks and safety factors faced by the companies in the Group .

070 // ANNUAL REPORT