Electrolux 2006 Annual Report Download - page 112

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The Board of Directors has proposed that the Annual General
Meeting 2007 resolves on an appropriation of profi ts involving a
dividend to the shareholders of SEK 4.00 per share. With refer-
ence to, the Board of Directors’ proposed distribution of earnings
above, the Board of Directors hereby makes the following state-
ment according to Chapter 18 Section 4 of the Swedish Compa-
nies Act (2005:551).
The retained earnings from the previous years amount to
SEK –2,098,994 thousand and the net income for the year
amounts to SEK 10,767,510 thousand. Provided that the Annual
General Meeting 2007 resolves to allocate the results in accord-
ance with the Board of Directors’ proposal, SEK 7,5 4 8,662 thou-
sand will be carried forward. After distribution of the proposed
dividend, there will be full coverage for the restricted equity of the
Company.
It is the Board of Directors’ assessment that after distribution
of the proposed dividend, the equity of the Company and the
Group will be suffi cient with respect to the kind, extent, and risks
of the operations. The Board of Directors has hereby considered,
among other things, the Company’s and the Group’s historical
development, the budgeted development and the state of the
market. If fi nancial instruments currently valued at actual value in
accordance with Chapter 4 Section 14 a of the Swedish Annual
Accounts Act (1995:1554) instead had been valued according to
the lower of cost or net realizable value, the equity of the com-
pany would decrease by SEK 29,245 thousand.
The Board of Directors has made an assessment of the fi nan-
cial position of the Company and the Group as well as the possi-
bilities of the Company and the Group to comply with its obliga-
tions in a short term and long-term perspective. After the
dividend, the debt/equity ratio of the Company and the Group
is assessed to continue to be high in relation to the industry in
which the Group is operating.
The proposed dividend will not affect the ability of the Com-
pany and the Group to comply with its payment obligations. The
company and the Group has suffi cient access to long-term, as
well as short-term, credit facilities, which can be used by short
notice. The Board of Directors therefore fi n ds that the Company
and the Group are well prepared to handle any changes in
respect of liquidity, as well as unexpected events.
The Board of Directors is of the opinion that the Company and
the Group have the ability to take future business risks and also
cope with potential losses. The proposed dividend will not nega-
tively affect the Company’s and the Group’s ability to make fur-
ther commercially motivated investments in accordance with the
strategy of the Board of Directors.
The Board of Directors and the President and CEO declare
that, to the best of our knowledge, the annual report is prepared
in accordance with generally accepted accounting principles for
stock market companies, that the information contained in the
annual report is in accordance with factual circumstances and
that it contains no omission likely to affect the representation of
the Company which is established by the annual report.
Stockholm, March 5, 2007
Michael Treschow
Chairman of the Board of Directors
Peggy Bruzelius
Vice Chairman of the Board of Directors
Louis R. Hughes Caroline Sundewall
Barbara Milian Thoralfsson Marcus Wallenberg
Ola Bertilsson Gunilla Brandt Ulf Carlsson
Hans Stråberg
President and CEO
Proposed distribution of earnings
Thousands of kronor
The Board of Directors and the President propose that net income for the year 10,767,510
and retained earnings1) –2,098,994
Total 8,668,516
be distributed as follows:
A dividend to the shareholders of SEK 4.00 per share2), totaling 1,119,854
To be carried forward 7,548,662
Total 8,668,516
1) After share redemption in late January of SEK 5,579,000 thousand.
2) Calculated on the number of outstanding shares as per February 28, 2007. Currently, the company holds 28,956,923 shares as treasury shares. Based on the resolution adopted by the
Annual General Meeting in April 2006, a maximum of 1,935,108 additional shares may be repurchased prior to the Annual General Meeting in April 2007, thereby decreasing the total
dividend payment. The number of repurchased shares may decrease if employees exercise their options, which would increase the total dividend payment. The Board of Directors and the
President propose April 19, 2007 as record day for the right to dividend.
108