In 2012, w e achie v ed our fnancial t ar g et free cash fo w in relation to net debt of at leas t 0.20. Ho w e v er , w e will continue to be res trictiv e re gar din g acquisitions, with the e x ception of tech - nolog ical oper ations that create syner g ies and competence alon g our s tr ate g ic path or acquisitions that s tren g then our position in gro wth mark ets. Parent Compan y oper ations The Group ’ s Parent Compan y , Securit as AB, is not in v olv ed in an y oper atin g activities. Securit as AB pro vides Group m ana g ement and support functions for the Group . The Parent Compan y’ s income amounted to M SEK 992 (846) and mainly relates to license fees and other income from subsid - iaries. Financial income and e xpenses amounted to M SEK 2 792 (1 288*). The increase in fnancial income and e xpenses com - pared to las t y ear is mainly e xplained b y an increase in dividend from subsidiaries. Ex chan g e r ate diferences ha v e also had a positiv e impact on the fnance net durin g the y ear . Income before t ax es amounted to M SEK 3 498 (2 101). Income before t ax es includes result from the sale of shares in subsidiaries and joint v entures of M SEK -9 (67**), dividends from subsidiaries of M SEK 11 876 (4 679*), interes t income of M SEK 206 (199), interes t e xpense of M SEK -869 (-880) and other fnancial income and e xpenses, net , of M SEK -8 412 (-2 709*). Included in other fnancial income and e xpenses, net are impairment losses relatin g to shares in subsidiaries of M SEK -8 602 (-2 735). Impairment losses in 2012 w ere recog - niz ed in con junction with the Parent Compan y ha vin g receiv ed dividends from subsidiaries and for the shares in Securit as m ontene gro d. o . o . as a consequence of the impairment of g ood- will and acquisition related int an g ible assets that w ere recogniz ed for the cash g ener atin g unit Securit y Ser vices M ontene gro . Impairment losses in 2011 w ere recogniz ed in con junction with the Parent Compan y ha vin g receiv ed dividends from subsidiaries. Net income w as M SEK 3 442 (2 093). Cash fo w for the y ear amounted to M SEK 20 (3). The Parent Compan y’ s non-current assets amounted to M SEK 38 119 (38 709) and mainly comprise shares in sub - sidiaries of M SEK 37 156 (37 853). Current assets amounted to M SEK 6 440 (8 111) of which liquid funds amounted to M SEK 25 (5). Shareholder s ’ equit y amounted to M SEK 25 545 (23 343). A dividend of M SEK 1 095 (1 095) w as paid to the shareholder s in M a y 2012. The Parent Compan y’ s liabilities amounted to M SEK 19 014 (23 477) and mainly consis t of interes t -bearin g debt . F or further information, refer to the Parent Compan y’ s fnancial s t atements and the accompan yin g notes and comments. * R es t ated since group contributions ha v e been accounted for as appropriations due to a chan g e in accountin g principle . R efer to note 39 for further information. ** R eported on the line Other oper atin g income and consis tin g in its entiret y of the capit al gain from the sale of the shares in Securit as Direct S . A . in S witz erland. Proposed guidelines for remuner ation to senior mana g ement in Securit as for 2013 The Boar d of Director s of Securit as AB (publ.) proposes that the Annual G ener al M eetin g on M a y 7, 2013 adopts guidelines for remuner ation to senior mana g ement in accor dance with the follo win g; The fundament al principle is that remuner ation and other terms of emplo yment for senior mana g ement shall be competi - tiv e and in accor dance with mark et conditions, in or der to ensure that the Securit as Group will be able to at tr act and k eep compe - tent senior mana g ement emplo y ees. The tot al remuner ation to senior mana g ement shall consis t of a fx ed basic salar y , v ariable remuner ation, pensions and other benefts. In addition to a fx ed annual salar y the Group M ana g e - ment ma y also receiv e v ariable remuner ation, which shall be based on the outcome in relation to fnancial g oals within the individual area of responsibilit y (Group or division) and which shall a gree with the interes t of the shareholder s. The v ariable remuner ation shall amount to a maximum of 60 percent of the fx ed annual salar y for the President and CEO and a maximum of 42–200 per - cent of the fx ed annual salar y for other individuals of the Group M ana g ement . If cash pa yment of v ariable remuner ation has been efected on grounds later pro v en to be ob viously inaccur ate , the compan y shall ha v e the possibilit y to reclaim such paid remuner - ation. The Boar d of Director s shall each y ear consider whether to propose that the G ener al m eetin g resolv es upon a share or share price based incentiv e progr am. The Annual G ener al m eetin g in 2012, as w ell as the Annual G ener al M eetin g s in 2010 and 2011, adopted a resolution on an incentiv e scheme . The undert akin g s of the compan y as re gar ds v ariable remu - ner ation to the Group M ana g ement ma y , at maximum outcome durin g 2013, amount to a tot al of M SEK 56. Information on pre viously decided remuner ation which has not y et been paid can be found in note 8 of this Annual R eport . The pension rig hts of senior mana g ement emplo y ees shall be applicable as from the a g e of 65 at the earlies t and the entire Group M ana g ement shall be subject to defned contribution pension plans for which insur ance premiums are tr ansferred from the individual’ s tot al remuner ation and paid b y the compan y durin g the term of emplo yment . V ariable compensation shall not qualif y for pension purposes unless local re gulations pro vide other wise . Other benefts, such as compan y car , special health insur ance or occupational health ser vice shall be pro vided to the e xtent this is considered cus tomar y for senior mana g ement emplo y ees holdin g equiv alent positions on the emplo yment mark et where the senior mana g ement emplo y ee is activ e . At dismissal, the notice period for all senior mana g ement emplo y ees shall amount to a maximum of 12 months with a rig ht to redundanc y pa yment after the end of the notice period, equiv alent to a maximum of 100 per cent of the fx ed salar y for a period not e x ceedin g 12 months. At resignation b y a senior mana g ement emplo y ee , the notice period shall amount to a maximum of six months. 66 Securit as Annual R eport 2012 Annual R eport R eport of the Boar d of Director s