NWG // FINANCIAL INFORMATION
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 18.0 % of the Company’ s equity and 6.4 % 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
ANNUAL REPORT // 089