Directors’ Report – The Parent Company

Sales, income and financial position

The Parent Company, Duni AB, is responsible for the Group’s sales and customer support on the Nordic market. The Parent Company also contains Group Management and joint Group staff functions such as finance, HR, purchasing, communication, marketing and IT. Parts of the Group’s development resources are located in the Parent Company.

Net sales amounted to SEK 1,160 m (1,140). Operating income was recognized at SEK 26 m (-63), and net financial items at SEK 297 m (277). Income improved as a result of the full amortization of goodwill on acquisition in 2016. This was previously charged to other operating expenses at SEK 100 m per annum. Net financial items include internal dividends received during the year of SEK 138 m (159) and a Group contribution received of SEK 152 m (115). Net income for the year was SEK 284 m (178).

The Parent Company’s investments in fixed assets amounted to SEK 21 m (15). Depreciation and amortization amounted to SEK 16 m (117).

The Parent Company’s equity ratio at year-end was 52.4% (58.7%). The Parent Company’s cash and equivalents on December 31, 2017 amounted to SEK 157 m (119).

Operational and financial risks in the Parent Company

The Parent Company’s risks correspond in all essential respects to the Group’s risks.

Duni’s finance management and its management of financial risks are regulated by a finance policy adopted by the Board of Directors. This work is presided over and managed by the Group’s Treasury, which is included as a unit within the Parent Company. The Group divides financial risks into market risks (comprising currency risk, price risk and interest rate risk), as well as credit risk and liquidity risk.