Allocation of earnings proposed by the board of directors and the CEO

Allocation of earnings, Parent Company (SEK)

Allocation of earnings, Parent Company(SEK)  2015
Non-restricted equity in the Parent Company  
Retained earnings 1 598 669 072
Income for the year 120 878 673
Total non-restricted equity in the Parent Company 1 719 547 745
The Board and CEO propose:
A dividend to the shareholders of SEK 5.00 per share 234 995 160
and that the remaining amount to be carried forward 1 484 552 585
Total 1 719 547 745

The Board of Directors proposes to the 2016 Annual General Meeting that a resolution be adopted regarding allocation of earnings entailing that a dividend of SEK 5.00 per share, equal in total to SEK 234,995,160, be paid to shareholders registered on the record date, May 6, 2016, and that the remaining non-restricted shareholders’ equity be carried forward.

Provided that the 2016 Annual General Meeting resolves in accordance with the Board’s dividend proposal, SEK 1,485 m will be carried forward. After the proposed dividend, there will be full coverage for the Parent Company’s restricted equity. The Group’s shareholders’ equity amounts to SEK 2,345 (2,193) m.

As a basis for its dividend proposal, pursuant to Chapter 18, section 4 of the Swedish Companies Act (2005:551) the Board has made the assessment that the proposed dividend is defensible in light of the demands imposed by the business as regards the size of the shareholders’ equity in the Parent Company and the Group, as well as the needs of the Parent Company and the Group to strengthen the balance sheet, and as regards their liquidity and financial position in general. The proposed dividend represents in total 13.0% of the shareholder’s equity of the Parent Company and 10.0% of the shareholders’ equity in the Group. The Group generates strong cash flows, and the Board makes the assessment that Duni has a strong balance sheet. After the dividend, the equity ratio of the Parent Company and the Group will be 58.8% and 53.5% respectively. Thus, even after the dividend the equity ratio and liquidity will be satisfactory relative to the industry in which the Company and the Group operate, and it is believed that the Company and the Group will be able to perform their obligations in the short term and long term, and be able to implement planned investments.

The proposed dividend will not affect the ability of the Parent Company and the Group to discharge their payment obligations. The Board considers that the Parent Company and the Group are well prepared to manage changes in liquidity and any contingencies. The Board believes that the Parent Company and the Group possess the conditions to take future commercial risks and also carry any losses. Based on Duni’s income after tax, the proposed dividend is well in line with the Group’s dividend policy.

Had financial instruments been valued at fair value pursuant to Chapter 4, section 14 of the Annual Accounts Act, instead of being valued at the lower of cost or market, shareholders’ equity would have been SEK 4 m lower.