Board and CEO’s proposed allocation of earnings

Allocation of earnings Parent Company (SEK)

and that the remaining amount be carried forward

Allocation of earnings Parent Company (SEK) 2018
Unrestricted equity in Parent Company
Retained earnings 1 476 455 243
Net income for the year 255 860 452
Total unrestricted equity in Parent Company 1 732 315 695
The Board of Directors and CEO propose:
that SEK 5.00 share be distributed to shareholders 234 995 160
1 497 320 535
Total 1 732 315 695

The Board of Directors proposes that the 2019 AGM resolve to allocate earnings such that a total of SEK 5.00 per share is distributed to shareholders, which is equivalent to a total of SEK 234,995,160, and that the remaining unrestricted equity be carried forward.

The Board of Directors also proposes that the dividends be dispersed in two partial payments to better adapt to Duni’s cash flows during the year. The Board of Directors proposed May 9, 2019 as the record date for the first partial payment of SEK 2.50 and November 12, 2019 as the record date for the second partial payment of SEK 2.50. This means that shareholders registered at the record dates of May 9 and November 12 are entitled to dividends.

In the event that the 2019 AGM resolves in accordance with the Board’s proposed allocation of earnings, SEK 1,497 m will be carried forward. The Parent Company’s restricted equity will be fully covered following the proposed dividend. The Group’s shareholders’ equity amounted to SEK 2,616 m.

In accordance with Chapter 18 Section 4 of the Swedish Companies Act (2005:551), as the basis for its proposed dividend, the Board estimated that the proposed dividend is justifiable in consideration of the requirements of the business for the size of the Parent Company and Group’s shareholders’ equity and the Parent Company and Group’s consolidation needs, liquidity and financial position in general. With the major acquisitions and investments along with a challenging year in terms of raw material prices, the Board of Directors estimates that Duni still has a financial position and future competitiveness that allow a dividend at par with the previous year. After the proposed dividend, the Board believes that Duni will still have the means to make acquisitions while meeting its obligations and completing planned investments.

Following the dividend, the Parent Company and Group’s equity-assets ratio is also estimated to be sound in relation to the industry in which the Group operates The proposed allocation of earnings will not impact the Parent Company and Group’s ability to meet their payment obligations. The Board of Directors estimates that the Parent Company and Group are well prepared to cope with changes relating to liquidity and unexpected events. The proposal to divide the dividend into two partial payments will make the Company’s liquidity planning more effective with a better balance in net debt over the year. The Board of Directors believes that the Parent Company and Group are capable of coping with future business risks and losses if such arise.

Shareholders’ equity would have been SEK 1.7 m lower if financial instruments measured at fair value in accordance with Chapter 4 Section 14 a of the Swedish Annual Accounts Act had instead been measured at the lower of cost or net realizable value.