These guidelines shall apply to individuals who are included in the Group m ana g ement durin g the term of application of these guidelines. The guidelines shall apply to a greements entered into after the adoption b y the Annual G ener al M eetin g, and to chan g es made in e xis tin g a greements after this date . The Boar d shall be entitled to de viate from the guidelines in individual cases if there are particular grounds for such de viation. Proposed allocation of earnin g s The s t atements of income and the balance sheets of the Parent Compan y and the Group are subject to adoption b y the Annual G ener al M eetin g on M a y 7, 2013. R et ained earnin g s in the Parent Compan y a v ailable for dis tribu - tion: SEK h ed g in g reser v e -5 075 175 T r anslation reser v e 464 713 628 R et ained earnin g s 13 916 363 682 Net income for the y ear 3 441 713 244 T ot al 17 817 715 379 The Boar d of Director s propose that the earnin g s are allocated as follo ws: SEK a dividend to the shareholder s of SEK 3.00 per share 1 095 176 691 ret ained earnin g s to be carried for w ar d 16 722 538 688 T ot al 17 817 715 379 The Boar d’ s s t atement on the proposed dividend With reference to the Boar d’ s dividend proposal, the Boar d of Director s hereb y mak es the follo win g s t atement pur suant to Chapter 18, section 4 of the S w edish Companies Act . The Compan y’ s unappropriated earnin g s as per December 31, 2012 amount to SEK 14 376 002 135. The net income for the y ear amounts to SEK 3 441 713 244 of which SEK -174 042 is the result of fnancial ins truments bein g v alued pur suant to Chapter 4, section 14 a of the S w edish Annual Accounts Act . The Compan y’ s equit y w ould not ha v e been impacted as per December 31, 2012 if fnancial ins truments, ha vin g been v alued at actual v alue pur suant to Chapter 4, section 14 a of the S w edish Annual Accounts Act , had ins tead been v alued at the lo w er of cos t or mark et as there is no diference as of this date . U nappropriated earnin g s of SEK 17 817 715 379 are there - fore at the Annual G ener al m eetin g’ s disposal. Pro vided that the 2013 Annual G ener al m eetin g resolv es to allocate the earnin g s in accor dance with the Boar d’ s proposal, SEK 16 722 538 688 will be carried for w ar d. After dis tribution of the proposed dividend, there will be full co v er a g e for the Compan y’ s res tricted equit y . The Boar d has considered the Compan y’ s and the Group ’ s consolidation requirements and liquidit y throug h a comprehensiv e assessment of the fnancial position of the Compan y and the Group , as w ell as the possibilities of the Compan y and the Group to dischar g e at sig ht its obligations. The proposed dividend does not jeopar diz e the Compan y’ s abilit y to mak e the in v es tments that ha v e been deemed necessar y . The Compan y’ s fnancial posi - tion does not g iv e rise to an y other assessment than that the Compan y can continue its oper ations and that the Compan y is e xpected to comply with its obligations in a short as w ell as lon g term per spectiv e . In addition to the assessment of the Compan y’ s consolidation requirements and liquidit y , the Boar d has also t ak en into consider ation all other kno wn circums t ances that ma y impact the Compan y’ s fnancial position. With reference to the abo v e , the Boar d mak es the assessment that the dividend is jus tifable considerin g the requirements that the nature , scope and risks of the oper ations pose on the siz e of the Compan y’ s and the Group ’ s equit y as w ell as the Compan y’ s and the Group ’ s consolidation requirements, liquidit y and position in g ener al. As re gar ds the Compan y’ s and the Group ’ s result and position in g ener al, refer to the s t atements of income , s t atements of com - prehensiv e income , balance sheets and s t atements of cash fo w as w ell as comments and notes. Proposal on recor d date for dividend As recor d date for dividend, the Boar d proposes M a y 13, 2013. If the Annual G ener al M eetin g so resolv es, the dividend is e xpected to be dis tributed b y Euroclear S w eden AB s t artin g M a y 16, 2013. 67 Securit as Annual R eport 2012 Annual R eport R eport of the Boar d of Director s