AAK Annual Report 2019

assets totalled SEK 2,173 million (positive 211 as of December 31, 2018). Investments in intangible and tangible assets amounted to SEK 5 million (6). The average number of employees at December 31, 2019 was 37 (37). Background to and motivation of the proposed appropriation of profits The objective for the dividend in the long term is to correspond to 30–50 percent of consolidated profits after tax, while always considering AAK’s long-term financing requirements. During the last ten years, the annual dividend has been between 32–37 percent of the net result. Based on the current situation with the ongoing corona pandemic, the Board of Directors has evaluated the proposal of the dividend for 2019. As of March 30, 2020, AAK had not, due to the corona pandemic, experienced any material business disruptions. However, the volatility and uncertainty have increased within all industries that AAK serves. AAK has a robust foundation with a strong financial track record and a solid balance sheet. However, as an additional precaution due to the current situation, the Board of Directors proposed, on March 30, 2020, to postpone the decision on the dividend for 2019*. Retained profits from the previous year total SEK 4,966 million and the profit for the 2019 financial year is SEK 1,473 million (1,513 for the Group). Provided that the 2020 Annual General Meeting approves the Board’s proposed appropriation of profits, a total of SEK 6,439 million will be carried forward. Proposed appropriation of profits The Board of Directors propose that the disposable profit brought forward SEK 4,966,288,349 and profit/loss for the year SEK 1,472,909,933 Total SEK 6,439,198,282 be appropriated as follows: To be carried forward SEK 6,439,198,282 Total SEK 6,439,198,282 The Group’s and the Parent’s income statements and balance sheets will be presented to the Annual General Meeting on May 13, 2020 for adoption. * The dividend proposal for 2019 was SEK 2.10 per share (36 percent of net profit). 47