Modern Times Group MTG AB is the Group’s parent company and is responsible for Group-wide management, administration and finance functions, and also holds shares in the parent companies of the various operating business areas. MTG’s financial policy includes providing a central cash pool or financing through internal loans to support the operating companies.
The MTG parent company reported net sales of SEK 68 (81) million in 2008. Net interest and other financial items totalled SEK 178 (6,418) million, with the 2007 figure including an internal financial gain of SEK 6,000 million as a result of an internal restructuring. Parent company income before tax amounted to SEK 27 (6,270) million. No investments in non-current assets were made in 2008. Cash and cash equivalents at the end of the year amounted to SEK 59 (3) million. SEK 1,960 million of the total 6,600 million available credit facilities were unutilised as at 31 December 2008.
Environmental impact The Company does not own or operate any businesses in Sweden subject to an obligation to report to authorities or require compulsory licensing.
Proposed appropriation of earnings The following funds are at the disposal of the shareholders as at 31 December 2008:
Retained earnings 7,769,141,270
Net profit for 2008 -8,127,485
Total 7,761,013,785
The Board of Directors propose that a SEK 5 ordinary dividend be paid to shareholders for the twelve months ended 31 December 2008 and that the remaining amount be carried forward. The total proposed dividend payment would amount to a maximum of SEK 329,451,875, based on the maximum potential number of outstanding shares as at the record date, and represent 11% of the Group’s reported net income for the full year 2008.
The Board of Directors will also propose that the Annual General Meeting authorises the Board of Directors to resolve to buy back MTG Class A and Class B shares on one or more occasions for the period up until the Annual General Meeting in 2010, but not exceeding 10% of the number of issued shares. The proposal aims to create flexibility in the work with the company’s capital structure.