New Wave Group Annual Report 2023 | 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 3.50 ( 3.25 *) per share , corresponding to SEK 464,404,801 ( 431,233,030 ), and that SEK 1,729,617,608 is carried forward . The dividend is divided into two payment occasions .

* Before and after dilution , recalculated with regard to the 2:1 share split carried out in June 2023 .

The Board of Directors ' statement regarding distribution of profit

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 42 ( 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 17.6 % of the Company ’ s equity and 7.2 % of consolidated equity . The objective stated with regard to the Group ’ s capital structure for an equity ratio of at least 40 % 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 .

070 // ANNUAL REPORT