AAK Annual Report 2016

40 The proposed dividend is not expected to have a negative effect on the Company’s and Group’s ability to meet certain current liabili- WLHV 7KH &RPSDQ\ DQG *URXS KDYH VXI¿FLHQW DFFHVV WR ERWK VKRUW term and long-term credits that can be obtained at short notice. The Board of Directors therefore considers that the Company and the Group are prepared for likely changes to liquidity, as well as unforeseen events. In addition, the Board of Directors has con- sidered other known circumstances that may materially affect the ¿QDQFLDO SRVLWLRQ RI WKH &RPSDQ\ DQG WKH *URXS 1R FLUFXPVWDQFH has arisen that makes the proposed dividend distribution appear XQMXVWL¿DEOH It is proposed that the record date for the dividend be May 19, 2017, and it is estimated that the dividend will be received by the shareholders on May 24, 2017. 3URSRVHG DSSURSULDWLRQ RI SUR¿WV 7KH %RDUG RI 'LUHFWRUV DQG &KLHI ([HFXWLYH 2I¿FHU SURSRVH WKDW 7KH GLVSRVDEOH SUR¿W EURXJKW IRUZDUG SEK 3,834,015,571 DQG SUR¿W ORVV IRU WKH \HDU 6(. Total SEK 3,814,884,025 be appropriated as follows: To be distributed to shareholders, a dividend of SEK 8.75 per share SEK 370,024,279 1) To be carried forward SEK 3,444,859,746 Total SEK 3,814,884,025 1) Calculated on the number of outstanding shares as at the balance sheet date. The Group’s and the Parent’s income statements and balance sheets will be presented to the annual general meeting on May 17, 2017 for adoption. Background to and explanation of the proposed dividend The Board of Directors has proposed that the 2017 Annual *HQHUDO 0HHWLQJ DSSURYH DQ DSSURSULDWLRQ RI SUR¿WV XQGHU ZKLFK the shareholders will receive a dividend of SEK 8.75 per share. The proposed dividend therefore totals SEK 370 million. The REMHFWLYH LV IRU WKH GLYLGHQG LQ WKH ORQJ WHUP WR FRUUHVSRQG WR ± SHUFHQW RI FRQVROLGDWHG SUR¿WV DIWHU WD[ ZKLOH DOZD\V FRQVLGHULQJ $$.¶V ORQJ WHUP ¿QDQFLQJ UHTXLUHPHQWV 7KH 3DUHQW KDV QR ¿QDQFLDO LQVWUXPHQWV YDOXHG XQGHU &KDS 6HFWLRQ D RI WKH Swedish Annual Accounts Act (1995:1554). The Board of Directors hereby makes the following statement regarding the proposed dividend, in accordance with Chap. 18, Section 4, of the Swedish Companies Act (2005:551). 5HWDLQHG SUR¿WV IURP WKH SUHYLRXV \HDU WRWDO 6(. PLOOLRQ DQG WKH SUR¿W IRU WKH ¿QDQFLDO \HDU LV 6(. PLOOLRQ 6(. 1,040 million for the Group). Provided that the 2017 Annual General Meeting approves the Board’s proposed appropriation RI SUR¿WV D WRWDO RI 6(. PLOOLRQ ZLOO EH FDUULHG IRUZDUG 7KH Company’s restricted equity will be fully covered after distribution of the dividend. ,Q WKH %RDUG¶V MXGJHPHQW WKH &RPSDQ\ DQG WKH *URXS ZLOO UHWDLQ VXI¿FLHQW HTXLW\ DIWHU GLVWULEXWLRQ RI WKH SURSRVHG GLYLGHQG in relation to the nature, scope and risks associated with its busi- ness operations. In making this assessment, the Board has taken account of the historical development of the Company and the Group, budgeted performance and the economic situation. In the view of the Board, the Company and the Group are in a position and have the capacity, in both the short and long terms, to meet all their obligations. The proposed dividend represents a total of 9 percent of the Company’s equity and 5 percent of the Group’s equity attributable to the Parent’s shareholders. After payment of the dividend, the equity/assets ratio of the Company and the Group will be 74 percent and 43 percent, respectively. These ratios are good in relation to other businesses LQ RXU LQGXVWU\ 7KH %RDUG RI 'LUHFWRU¶V MXGJHV WKDW WKH &RPSDQ\ and the Group are in a good position to meet future business risk and withstand possible losses. Distribution of the dividend will not negatively affect the ability of the Company and the Group to make further investment as planned by the Board of Directors.