AAK Annual Report 2018

annual dividend has been between 32–37 percent of the net result. The Board of Directors has proposed that the 2019 Annual General Meeting approve an appropriation of profits under which the shareholders will receive a dividend of SEK 1.85 per share (36 percent of net profit). The proposed dividend therefore totals SEK 469 million. The Parent has no financial instruments valued under Chap. 4, Section 14 a, of the 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). Retained profits from the previous year total SEK 3,075 million and the profit for the 2018 financial year is SEK 2,111 million (1,340 for the Group). Provided that the 2019 Annual General Meeting approves the Board’s proposed appropriation of profits, a total of SEK 4,716 million will be carried forward. The Company’s restricted equity will be fully covered after distribution of the dividend. In the Board’s judgment, the Company and the Group will retain sufficient equity after distribution of the proposed dividend in relation to the nature, scope and risks associated with its business 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 term, to meet all their obligations. The proposed dividend represents a total of 8 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 76 percent and 48 percent, respectively. These ratios are good in relation to other businesses in our industry. The Board of Directors judges that the Company is in a good position to meet future business risks as well as withstand possible losses. Distribution of the dividend will not negatively affect the ability of the Company and the Group to make further investments as planned by the Board of Directors. The proposed dividend distribution will have a temporary negative effect on the Company’s and Group’s ability to meet certain current liabilities. However, the Company and Group have sufficient access to both short and long-term credit 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 considered other known circum- stances that may materially affect the financial position of the Company and the Group. No circumstance has arisen that makes the proposed dividend distribution appear unjustifiable. It is proposed that the record date for the dividend be May 17, 2019, and it is estimated that the dividend will be received by the shareholders on May 22, 2019. Proposed appropriation of profits The Board of Directors propose that The disposable profit brought forward SEK 3,074,947,829 and profit/loss for the year SEK 2,110,742,748 Total SEK 5,185,690,577 be appropriated as follows: To be distributed to shareholders, a dividend of SEK 1.85 per share SEK 469,402,228 1) To be carried forward SEK 4,716,288,349 Total SEK 5,185,690,577 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 15, 2019 for adoption. 43