DOING BUSINESS IN SCANDINAVIA

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2 COMPANY FORMATION IN MAIN FORMS OF COMPANY/BUSINESS IN The most usual form of business entity in Scandinavia is the private or public limited company. Only public limited companies are allowed to issue a prospectus to the public when seeking equity capital. Further, only public limited companies can be listed on the Stock Exchange. Another form of business is partnerships, of which the general partnerships (ANS) and limited liability partnerships (KS) are the most common. A general partnership consists of two or more partners having equal or differing shares in the partnership who are each fully liable for the partnership s debts. If the partners are only liable to the extent of their respective pro rata share in the partnership s debts, the partnership s name must include the letters DA. A limited partnership consists of one or more general partners and one or more limited partners. SPECIFIC TAX CONCERNS RELATED TO ESTABLISHING A COMPANY A company tax resident in a Scandinavian country is taxable for its worldwide income (in Denmark, it is optional). A branch of a foreign company in one of the Scandinavian countries is liable to pay tax only on the profits derived from its activities in that country. The current tax rate for business income is 25% in Norway and 22% in Sweden and Denmark. Foreign shareholders are not taxable to Scandinavia for gains on Scandinavian shares unless the shares are connected to the activities of a branch tax liable to Scandinavia. However, dividends from a Scandinavian company paid to foreign shareholders is subject to withholding tax at a general rate of 25 percent. A relevant double taxation treaty normally modifies the rate. Further, the Scandinavian countries have adopted an exemption model for income derived on shares, which also applies to corporate shareholder resident in an EEA country. Consequently, dividends from a Scandinavian company received by corporate shareholders in the EEU will normally be exempt from Scandinavian countries tax. Partnerships (both general and limited) are taxed on a transparency basis, thus the partners being liable for their portion of the partnership s net income. The Norwegian tax regime contains comprehensive exit tax rules. LEGAL ISSUES RELATED TO ESTABLISHING A COMPANY There are no laws concerning conditions under which a foreigner may make a direct investment in Scandinavia. Foreigners must comply with the regulations applicable to Scandinavian citizens and others. A Scandinavian business/ company may be 100% foreign owned. However, in the case where the business entity is an private or public limited company, at least half of the directors must reside in Norway or be a citizen and reside in an EEA country. The capital requirements of a public company are NOK 1/DKK 1/SEK , and for an public limited company NOK /DKK /SEK , to be paid upon formation. There is no capital requirement in a general partnership. As for limited partnerships, it must have a fixed capital to be decided in the formation documents, and at least 2/5 of such capital must be paid up for to the company. Both limited liability companies and partnerships must register with the Company house in the Scandinavian country.

3 OTHER COUNTRY-SPECIFIC ISSUES RELATED TO ESTABLISHING A COMPANY Under the Norwegian Public Limited Liability Company Act, it is a requirement that at least 40 per cent of the directors of the board are women.

4 PERMANENT ESTABLISHMENT IN : BRANCH OR SUBSIDIARY? DEFINITION OF A PERMANENT ESTABLISHMENT In Sweden, permanent establishment is defined in the Income Tax Act. There is a general definition, and also rules for when a permanent establishment may be created by a person acting on behalf of the enterprise. General definition Foreign enterprises have a permanent establishment in Sweden if they carry on business wholly or partly from a fixed place of business in Sweden. A foreign enterprise may have a permanent establishment in Sweden even when there is no fixed place here but business operations in Sweden are carried on through a dependent agent. In Denmark and Norway the Tax Acts does not contain a specific definition of a permanent establishment. Decisive for a non-resident entity s tax liability in Norway/Denmark is whether the non-resident carries out or participate in an enterprise in the country Wealth and income derived from these enterprises is taxable in the Scandinavian countries, if the enterprise is operated or managed from Scandinavia. Normally the threshold for the non-resident entity being considered tax liable to Scandinavia under Scandinavian tax law is lower than the threshold for being considered as a permanent establishment under a relevant tax treaty. DEFINITION AND MAIN DIFFERENCES BETWEEN A BRANCH AND A SUBSIDIARY The main difference between a subsidiary and a branch is that a branch is not a separate legal entity. Thus, the parent company is the right addressee for the branch s rights and obligations. Unlike a Scandinavian subsidiary, proceedings against a branch must be made towards the parent company. A Scandinavian subsidiary is liable to income tax on worldwide profits (in Denmark, it is optional) unless the income being exempt under a relevant tax treaty. A branch of a non- resident company only pays corporate tax on profits derived from its activity in Scandinavia. The current tax rate is 27% in Norway and 22 % in Sweden and Denmark. Any double taxation of the parent company following the branch s tax liability to Scandinavia might be resolved in a relevant double taxation treaty. The remittance of profits from a branch to the parent company is not subject to Scandinavian tax. The distribution of dividends from a Scandinavian limited liability company is in general subject to withholding tax. However, if the shareholder is a company resident inside the EEA or in a Treaty country, the dividends will normally be exempt from Scandinavian tax. Unlike a subsidiary, a branch is not required to have its own board of directors, but must have a managing director/ contact person. In Norway a branch also has to use a value added tax representative. TAX AND ACCOUNTING OBLIGATIONS Unless the branch is entitled to use a divergent financial year, the income year is the same as the calendar year. The branch must file its income return within 5 months (6 months in Sweden and Denmark) the year following the relevant income year. The taxable income of a branch is normally computed in the same way as of a resident company. The arm s-length principles apply for intragroup transactions.

5 The branch must keep separate accounting records for its operations in Scandinavia. The books must be kept in Scandinavia unless an exception is granted. Branches exceeding a certain net turnover (TEUR ) are obligated to have statutory audit of its financial statements. Both the financial statements for the branch and the financial statements of the parent company must be submitted to the Company House. REGISTRATION FORMALITIES A branch must be registered to the Company House in the Scandinavian country. STANDARD LEGAL OBLIGATIONS AND FORMALITIES FOR A BRANCH A branch must describe itself on its letterhead and in other business documents as a branch of a foreign company. The Business Registration Number must also be stated.

6 HOW TO HIRE MY FIRST EMPLOYEE IN MAIN LEGAL STEPS TO FOLLOW TO HIRE A FIRST EMPLOYEE NORWAY 1. Organisation number Everyone who is engaged in business activity in Norway or on the Norwegian Continental Shelf must have an organisation number. The same applies to businesses that only have employees who work in Norway. The organisation number identifies legal persons (entities) and, among other things, it is necessary in order to fulfill certain statutory obligations in relation to the authorities. 2. The National Insurance scheme and occupational injury insurance When you have employees, you must make sure that you are registered in the Norwegian Labour and Welfare Administration s employer and employee register (NAV s AA Register). In addition to registering yourself/your business as an employer, you must report to the tax authorities (a-melding) when the employee relationship starts, is changed, or ends. You are also obliged to take out occupational injury insurance for your employees to cover possible occupational injuries or illnesses. You can do this by entering into an agreement with an insurance company. 3. Mandatory occupational pensions (OTP) The Act relating to Mandatory Occupational Pensions means that you as an employer are normally obliged to have an occupational pension scheme for your employees. You can choose between a defined benefit scheme and a defined contribution scheme. Of course, the occupational pension comes in addition to the pension entitlements employees earn via the National Insurance scheme. 4. Tax Card Everybody working in Norway must have a tax card. Application for a tax card for is done electronically on Altinn.no. SWEDEN AND DENMARK 1. To become an employer you need to register your company with the Tax Agency of the country. 2. There are two forms of employment - indefinite and temporary. The main principle according to the Employment Protection Act is that an employment contract is in effect until further notice. If the employment is to be temporary, this must be clear from a written agreement in order to apply. 3. Set up an employment contract 4. Pay employer contributions and deduct income tax You are required to report salaries, employee benefits, deducted tax and employer contributions each month. Deducted tax and employer contributions must be paid into the company s tax account. DESIGN AND CONTENTS OF AN EMPLOYMENT CONTRACT Under the Employment Protection Act, you are required to provide written information containing the following particulars: personal data, the workplace and the commencement date of the employment description of the employee s duties, occupational designation or title form of employment and period of notice

7 salary, employee benefits and the intervals at which the salary will be paid length of the paid annual leave and length of a normal working day/week applicable collective bargaining agreement, where relevant In Sweden and Denmark it may also be worth including information about any insurance you have taken out for the employee. If you plan to employ a person who is not a EU citizen, you need to contact the Migration Board to get a work permit. CAN SOMEBODY DO BUSINESS FOR ME AND NOT BE AN EMPLOYEE? An alternative to employment when doing business in Scandinavian countries is to engage a self-employed person (sole trader). Whether a person is considered an employee or a self-employed person is as a basic rule determined on whether the answers to the following questions are Yes or No. If Yes, the person are probably an employee: Can someone tell them at any time what to do, where to carry out the work or when and how to do it? Do they work a set amount of hours? Can someone move them from task to task? Are they paid by the hour, week, or month? Can they get overtime pay or bonus payment or other benefits normally awarded to employees? If the answers to the following questions are Yes, the person is probably a self-employed person: Can they hire someone to do the work or engage helpers at their own expense? Do they risk their own money? Do they provide the main items of equipment they need to do their job, not just the small tools that many employees provide for themselves? Do they agree to do a job for a fixed price regardless of how long the job may take? Can they decide what work to do, how and when to do the work and where to provide the services? Do they regularly work for a number of different people? Do they have to correct unsatisfactory work in their own time and at their own expense? A self-employed person is personally responsible for all the company s obligations, such as liabilities and agreements. A self-employed person is also responsible for paying their own taxes and contributions.

8 HOW TO READ DANISH ANNUAL ACCOUNTS Accounting policies used The annual report for UK A/S is presented in accordance with those regulations of the Danish Financial Statements Act concerning companies identified as class B enterprises. The accounting policies used are unchanged compared to last year, and the annual accounts are presented in Danish kroner (DKK). Recognition and measurement in general Income is recognised in the profit and loss account concurrently with its realisation, including the recognition of value adjustments of financial assets and liabilities. Likewise, all costs, these including depreciation, amortisation, writedown, provisions, and reversals which are due to changes in estimated amounts previously recognised in the profit and loss account are recognised in the profit and loss account. Assets are recognised in the balance sheet when the company is liable to achieve future, financial benefits and the value of the asset can be measured reliably. Liabilities are recognised in the balance sheet when the company is liable to lose future, financial benefits and the value of the liability can be measured reliably. At the first recognition, assets and liabilities are measured at cost. Later, assets and liabilities are measured as described below for each individual accounting item. Certain fixed asset investments and liabilities are measured at amortised cost, by which method a fixed, effective interest is recognised during the useful life of the asset or the liability. Amortised cost is recognised as the original cost with deduction of any payments and additions/deductions of the accrued amortisation of the difference between cost and nominal amount. In this way capital losses and capital profits are spread over the useful life. At recognition and measurement, such predictable losses and risks are taken into consideration, which may appear before the annual report is presented, and which concerns matters existing on the balance sheet date.

9 The profit and loss account Net turnover The net turnover is recognised in the profit and loss account if delivery and risk transfer to the buyer have taken place before the end of the year, and if the income can be determined reliably and is expected to be received. The net turnover is recognised exclusive of VAT and taxes and with the deduction of any discounts granted in connection with the sale. Contract work in progress concerning construction contracts is recognised concurrently with the progress of the production. Thus the net turnover corresponds to the sales value of the completed productions of the year (the production method). The net turnover is recognised when the total income and costs of the contract and the scope of completion on the balance sheet date can be determined reliably, and when it is likely that the financial benefits will be received by the company. Other external costs Other external costs comprise costs for distribution, sales, advertisement, administration, premises, loss on debtors, and operational leasing costs. Net financials Net financials include interest income, interest expenses, and realised and unrealised capital gains and losses on financial assets and liabilities. Net financials are recognised in the profit and loss account with the amounts concerning the financial year. Interest and other costs concerning loans for financing the production of intangible and tangible fixed assets and concerning the production period are not recognised in the cost of the fixed asset. Tax of the results for the year The tax for the year comprises the current tax for the year and the changes in deferred tax, and it is recognised in the profit and loss account with the share referring to the results for the year and directly in the equity with the share referring to entries directly on the equity. The balance sheet Intangible fixed assets Acquired rights Acquired rights are listed at cost price less accumulated amortisation or at recoverable value if this value is lower. Acquired rights are subject to straight-line amortisation during the amortisation period, which is usually 5-10 years.

10 Tangible fixed assets Tangible fixed assets are measured at cost with deduction of accrued depreciation and writedown. Land is not depreciated. The basis of depreciation is cost with deduction of expected residual value after the end of the useful life of the asset. The cost comprises the acquisition cost and costs directly attached to the acquisition until the time when the asset is ready for use. Depreciation takes place on a straight line basis and based on an evaluation of the expected useful life: Buildings Technical plants and machinery Other plants, operating assets, fixtures and furniture 30 years 5-10 years 3-5 years Minor assets with an expected useful life of less than 1 year are recognised as costs in the profit and loss account in the year of acquisition. Profit or loss deriving from the sales of tangible fixed assets is measured as the difference between the sales price reduced by the selling costs and the book value at the time of the sale. Profit or losses are recognised in the profit and loss account as other operating income or other operating expenses. As regards self-constructed assets, the cost comprises costs for materials, components, deliveries from sub suppliers, direct wages expenditure, and indirect production costs. Inventories Inventories are measured at cost on basis of measured average prices. In case the net realisable value is lower than the cost, writedown takes place at this lower value. The cost for trade goods, raw materials, and consumables comprises the acquisition cost with the addition of the delivery costs. The net realisable value for inventories is recognised as the market price with the deduction of completion costs and selling costs, and it is determined by taking negotiability, obsolescence, and the development of the expected market price into consideration. Debtors Debtors are measured at amortised cost which usually corresponds to face value. In order to meet expected losses, writedown takes place at the net realisable value.

11 Accrued income and deferred expenses Accrued income and deferred expenses recognised under assets comprise incurred costs concerning the next financial year. Corporate tax and deferred tax Current tax receivable and tax liabilities are recognised in the balance sheet at the amount calculated on the basis of the expected taxable income for the year adjusted for tax on previous years' taxable income and prepaid taxes. Tax receivable and tax liabilities are set off to the extent that legal right of set-off exists and if the items are expected to be settled net or simultaneously. Deferred tax is measured on the basis of all temporary differences in assets and liabilities with a balance sheet focus. Deferred tax is measured based on the tax rules and tax rates applying under the legislation on the balance sheet date and prevailing when the deferred tax is expected to be released as current tax. In the period 2014 to 2016, the corporate tax rate will be reduced gradually from 25 % to 22 %, which will affect the deferred tax liabilities and deferred tax assets. Unless a recognition with a different tax rate than 22 % will result in a significant material deviation in the estimated deferred tax liability or tax asset, deferred tax liabilities and assets are recognised by 22 %. Liabilities Other liabilities are measured at amortised cost which usually corresponds to the nominal value. Accrued expenses and deferred income Received payments concerning income during the following years are recognised under accrued expenses and deferred income.

12 Profit and loss account 1 January - 31 December All amounts in DKK. Note Net turnover Raw materials and consumables used Other external costs Gross results Staff costs Depreciation, amortisation and writedown relating to tangible and intangible fixed assets Operating profit Other financial income Other financial costs Results before tax Tax on ordinary results Results for the year Proposed disposal of the results: Disposed to results brought forward Disposals in total

13 Balance sheet 31 December All amounts in DKK. Assets Note Fixed assets 4 Completed development projects, including concessions, patents, trade marks and similar rights arising from development projects Intangible fixed assets in total Net turnover Tangible fixed assets in total Other debtors Financial fixed assets in total Fixed assets in total Current assets Trade debtors Deferred tax assets Receivable corporate tax Other debtors Accrued income and deferred expenses Debtors in total Cash funds Current assets in total Assets in total

14 Balance sheet 31 December All amounts in DKK. Liabilities Note Equity 6 Contributed capital Results brought forward Equity in total Liabilities Trade creditors Other debts Accrued expenses and deferred income Short-term liabilities in total Liabilities in total Equity and liabilities in total Contingencies 9 Related parties

15 Notes All amounts in DKK. 1. The significant activities of the enterprise The main activity have included trade and development of gas leak detectors Staff costs Salaries and wages Other costs for social security Other staff costs Tax on ordinary results Tax of the results for the year Adjustment for the year of deferred tax Adjustment of tax for previous years Immaterielle anlægsaktiver Erhvervede koncessioner, patenter, licenser, varemærker samt lignende rettigheder Kostpris 1. januar Kostpris 31. december Af- og nedskrivninger 1. januar Årets afskrivninger Af- og nedskrivninger 31. december Regnskabsmæssig værdi 31. december

16 Notes All amounts in DKK. 5. Materielle anlægsaktiver Andre anlæg, driftsmateriel og inventar Indretning lejede lokaler Kostpris 1. januar Kostpris 31. december Af- og nedskrivninger 1. januar Årets afskrivninger Af- og nedskrivninger 31. december Regnskabsmæssig værdi 31. december Contributed capital Contributed capital 1 January Results brought forward Results brought forward 1 January Profit or loss for the year brought forward Contingencies Operational leasing In addition to financial leasing contracts, the company has entered into operational leasing contracts with an average annual leasing payment of DKK The leasing contracts have 26 months left to run, and the total outstanding leasing payment is DKK

17 Notes All amounts in DKK. 9. Related parties Ownership According to the company's list of shareholders, the following shareholders own a minimum of 5 % of the voting rights or a minimum of 5 % of the share capital: Universal Exports, London, UK

18 HOW TO READ NORWEGIAN ANNUAL ACCOUNTS

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25 HOW TO READ SWEDISH ANNUAL ACCOUNTS A N N U A L R E P O R T of Annual accounts Sweden AB Corporate ID no The Board of Directors annual report for the financial year Contents Page - board of directors report 2 - income statement 3 - balance sheet 4 - assets pledged and contingent liabilities 5 - cash flow analysis 6 - supplementary disclosures 7 - signatures 12

26 Annual accounts Sweden AB Corporate ID no BOARD OF DIRECTORS REPORT The annual accounts is prepared in KSEK. Business Concept & Overview Bolaget registrerades 1993 och bedriver sedan dess utveckling, konsultarbete samt tillverkning inom mekanisk industri. Sedan 2012 har bolaget ingått i Remi-gruppen och ligger under moderbolaget Kanak AB, i gruppen ingår även Ymer Technology-gruppen. Sedan 2014 har verksamheten bedrivits i egen fastighet i Valdemarsvik. Bolagets verksamhet är huvudsakligen plåtbearbetning. Multi-year comparison* Net sales Profit/loss after financial items Balance sheet total Equity-assets ratio (%) 15,89 *For definitions of key ratios, please see supplementary disclosures Ownership conditions Important events during the financial year Important events after the end of the financial year Future development Environmental impact Appropriation of profit/loss Proposed appropriation of the company s loss At the disposal of the annual general meeting: loss brought forward profit for the year The board of directors proposes the following: to be carried forward For information about the company s earnings and financial position in other respects, please refer to the income statements, balance sheets and accompanying supplementary disclosures set out below.

27 Annual accounts Sweden AB Corporate ID no INCOME STATEMENT Note Operating income etc. Net turnover Change in inventories of products in progress, finished goods and work in progress on contract Other operating income Operating expenses Raw materials and consumables Other external expenses 3, Personnel costs Depreciation and write-down of tangible and intangible assets Other operating expenses Operating profit/loss Profit/loss from financial items Other interest income and similar profit/loss items Interest expense and similar profit/loss items Profit/loss after financial items Profit/loss before tax Tax on profit for the year Profit/loss for the year

28 Annual accounts Sweden AB Corporate ID no BALANCE SHEET Note Assets Fixed assets Intangible assets Other intangible fixed assets Tangible assets Land and buildings Plant and machinery Financial assets Other long-term receivables Total fixed assets Current assets Inventories etc. Raw materials and consumables Work in progress on contract Current receivables Trade receivables Current tax asset Other receivables Prepaid expenses and accrued income Cash and bank Cash and bank 2 2 Total cash and bank 2 2 Total current assets TOTAL ASSETS

29 Annual accounts Sweden AB Corporate ID no BALANCE SHEET Note EQUITY AND LIABILITIES Equity 13 Restricted equity Share capital ( shares) Revaluation reserve Non-restricted equity Profit or loss carried forward Reserve Shareholders contributions received Profit/loss for the year Total equity Provisions 16 Deferred tax liability Total provisions Long-term liabilities Overdraft facilities Liabilities to credit institutions Total long-term liabilities Current liabilities Overdraft facilities Liabilities to credit institutions Trade payables Other liabilities Accrued expenses and deferred income Total current liabilities TOTAL EQUITY AND LIABILITIES MEMORANDUM ITEMS Pledged assets 19 Pledges and equivalent collateral to secure own liabilities and for obligations recorded as provisions Real property mortgages Floating charges Contingent liabilities None None

30 Annual accounts Sweden AB Corporate ID no CASH FLOW ANALYSIS Note Operating activities Operating profit/loss Adjustments for non-cash items, etc Interest received etc Interest paid Income tax paid Cash flow from operating activities before changes in working capital Cash flow from changes in working capital Decrease(+)/increase(-) in inventories/work in progress Decrease(+)/increase(-) in accounts receivable Decrease(+)/increase(-) in receivables Decrease(-)/increase(+) in accounts payable Decrease(-)/increase(+) in current liabilities Cash flow from operating activities Investing activities Acquisition of land and buildings Acquisition of plant and machinery Sale of plant and machinery Acquisition of long-terms securities Cash flow from investing activities Financing activities Shareholders contributions received Group contributions Long-term loans raised Amortisation payments on long-term loans Cash flow from financing activities Change in cash and cash equivalents 0-8 Cash and cash equivalents at beginning of year 2 10 Cash and cash equivalents at year-end 2 2

31 Annual accounts Sweden AB Corporate ID no SUPPLEMENTARY DISCLOSURES GENERAL DISCLOSURES Accounting principles The accounting principles applied comply with the Swedish Annual Accounts Act and general recommendations from the Swedish Accounting Standards Board. The principles are unchanged since last year. Valuation principles, etc Assets, provisions and liabilities have been valued at acquisition value unless otherwise stated. Receivables Receivables are entered at the amount in which they are expected to be received. Inventories Inventories are valued at the lower of cost or market. Market value has been calculated at net realizable value, i.e market value with deduction for calculated selling expenses. Work in progress Work in progress is recognised in profit according to its percentage of completion. Fixed price projects are valued according to costs spent with an additional charge for reasonable share of the indirect costs. Provisions Such obligations as are attributable to the accounting year or previous accounting years and that on balance sheet day are certain or likely to exist but uncertain as to amount in which or time at which they are to be discharged are reported as provisions. Definitions of business and financial ratios. Equity-assets ratio Adjusted equity as a percentage of the balance sheet total NOTES TO FINANCIAL STATEMENTS Note 1 Intra-group purchases and sales Note 2 Other operating income Other operating income by category of revenue Royalties Gain on disposal of fixed asset Note 3 Leases - operating lease lessee During the year the company s lease payments amounted to Future minimum lease payments for non-cancellable leases, Falling due for payment as follows: Within 1 year Between 2 and 5 years

32 Annual accounts Sweden AB Corporate ID no SUPPLEMENTARY DISCLOSURES Note 4 Remuneration to auditors Audit body 1 Audit engagement Other services 0 26 Audit body 2 Audit engagement Audit engagement refers to the work of auditors for the statutory audit and audit business refers to different types of quality assurance services. Other services are services not included in audit engagements, audit business or tax advisory services. Note 5 Personnel Average number of employees The average number of employees is based on hours worked related to normal working hours paid for by the company. The average number of employees was of whom women 3 11 of whom men Wages/salaries, remuneration etc. Wages/salaries, remuneration, social security costs and pension costs have been paid as follows: The Board of Directors: Other employees: Wages/salaries and remuneration Pensions Social security costs Total board of directors and others The company's pension obligations Note 6 Other interest income and similar profit/loss items Interest Exchange rate difference Note 7 Interest expense and similar profit/loss items Other Interest expence

33 Annual accounts Sweden AB Corporate ID no SUPPLEMENTARY DISCLOSURES Note 8 Tax on profit for the year Current tax Effective tax reconciliation Profit/loss before tax Tax expense 22,00% (22,00%) Tax effect of: Non tax-deductible expenses -7-5 Non-taxable revenues 1 0 Loss carry forwards used this year Loss carry forwards arising this year Total Note 9 Other intangible assets Opening cost of acquisition Closing accumulated cost of acquisition Opening depreciation Depreciation for the year Closing accumulated depreciation Closing carrying amount Note 10 Land and buildings Opening cost of acquisition Purchases 0 25 Closing accumulated cost of acquisition Opening depreciation Depreciation for the year Closing accumulated depreciation Opening revaluation Write-downs for the year Revaluation depreciation for the year Closing accumulated revaluation, net Closing carrying amount Carrying amount, buildings Tax assessment value The assessed value of company s properties: reference buildings:

34 Annual accounts Sweden AB Corporate ID no SUPPLEMENTARY DISCLOSURES Note 11 Plant and machinery Opening cost of acquisition Purchases Sales/retirements Closing accumulated cost of acquisition Opening depreciation Sales/retirements Depreciation for the year Closing accumulated depreciation Opening revaluation Write-downs for the year Revaluation depreciation for the year Closing accumulated revaluation, net Closing carrying amount Note 12 Deferred tax Temporary Deferred Deferred difference tax asset tax liability Land and buildings Maskiner och tekniska anläggningar Temporary Deferred Deferred difference tax asset tax liability Land and buildings Maskiner och tekniska anläggningar

35 Annual accounts Sweden AB Corporate ID no SUPPLEMENTARY DISCLOSURES Note 13 Equity Revaluation Statutory Premium Share capital Fund Fund Fund Opening amount, comparison year according to adopted balance sheet Adjusted amount at opening of comparison year Bonus issue Shareholders contributions received Group contributions received/paid Tax referring to group contributions Appropriation of profit as resolved by the Annual General Meeting: Loss for the year Adjusted amounts at opening of year New issue Appropriation of profit as resolved by the Annual General Meeting: Profit for the year Closing amount Conditional shareholders contributions amount to: Note 14 Disclosures on share capital Number of shares Ratio per share Number/value at opening of year ,00 Number/value at closing of year ,00 Note 15 Revaluation reserve Opening amount Revaluation depreciation/amortisation Closing amount Note 16 Provisions Deferred tax liability Note 17 Long-term liabilities Repayment within 1 year Repayment within 2 to 5 years Repayment after 5 years Note 18 Overdraft facilities Overdraft facilities granted amount to:

36 Annual accounts Sweden AB Corporate ID no SUPPLEMENTARY DISCLOSURES Note 19 Liabilities for which collateral is pledged Other liabilities to credit institutions 0 0 Real property mortgages Floating charge Stockholm AA My auditor s report was submitted on, 2015 MM Auktoriserad revisor