Parent Company Directors’ Report

Sales, income and financial position

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

Net sales amounted to SEK 1,194 m (1,160). EBIT was reported at SEK 13 m (26) and net financial items amounted to SEK 276 m (297). The reason for the decrease in income is the same for the Nordic region as for the Group as whole: sharp increases in pulp prices during the year and price compensation from customers not yet being fully implemented.

Net financial items includes dividends received from subsidiaries in the amount of SEK 136 m (138) and Group contributions received totaling SEK 137 m (152). Net income for the year was SEK 256 m (284).

The Parent Company’s investments in tangible assets amounted to SEK 29 m (21). Depreciation and amortization totaled SEK 17 m (16).

The Parent Company’s equity-assets ratio at year-end was 44.0% (52.4%). The Parent Company’s cash and cash equivalents at December 31, 2018 amounted to SEK 171 m (157).

Operational and financial risks in the Parent Company

The Parent Company’s risks are the same as those of the Group in all material respects.

Duni’s financial 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 Finance Function (EFF), which is included as a unit within the Parent Company. The Group divides the financial risks into market risks (consisting of currency risks, price risks and interest rate risks), credit risks and liquidity risks.