Other information

Significant events after the end of the period

No significant events have taken place after the end of the period.

Transactions with related parties

No transactions took place between BE Group and related parties that had a material impact on the company’s financial position and results.

Annual General Meeting 2019

BE Group´s Annual General Meeting will take place on April 25, 2019, at 3:00 p.m. in Malmö, Sweden. Further information will be published on the company’s website.


According to BE Group’s dividend policy, the Group will distribute at least 50 percent of profit after tax, over time. Dividends shall be distributed taking BE Group´s financial position and prospects into account. The Board of Directors proposes dividend of SEK 1.75 (-) to be paid for the financial year of 2018 which corresponds to approximately SEK 23 M.

Significant risks and uncertainties

The financial risk exposure is explained in the 2017 Annual Report, which was published in March 2018. No new significant risks or uncertainties have arisen since that date.

Accounting principles

The interim report was prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The Parent Company’s interim report is prepared in compliance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board’s recommendation RFR 2 Accounting for Legal Entities.

Refer to the 2017 Annual Report for details of the Group’s accounting principles and definitions of certain terms. The principles applied are unchanged in relation to the Annual Report with addition of the new accounting principles IFRS 9 and IFRS 15 that have entered into effect on January 1, 2018. These have been applied and in accordance with the assessment done during 2017 they have not had any major impact on the financial reporting. The information in the interim report have been adapted to the new standards.

IFRS 16 Leases replaces existing IFRS related to recognition of leases, such as IAS 17 Leases and IFRIC 4 Determining Whether an Arrangement Contains a Lease. The Group applies the standard from January 1, 2019.

IFRS 16 mainly affects lessees and the central effect is that all leases that are today recognized as operating leases shall be recognized in a way that is similar to the current recognition of finance leases. This means that even for operating leases, assets and liabilities must be recognized, with associated recognition of costs for depreciation and interest – in contrast to today when no recognition is made of lease assets and related liabilities, and when the leasing fees are allocated to periods straight-line as a leasing cost. Except for recognition of the right of use asset and leasing liability for leases of minor value and contracts of a duration of no more than 12 months. The Group has chosen not to apply the exemption rules.

At January 1, 2019, the Group will report rights of use, related to outstanding leasing commitments, of approximately SEK 600 M and leasing liabilities of approximately SEK 600 M. The effect of the introduction of IFRS 16 on the financial statements will depend on future financial circumstances, including the Group’s loan interest, the composition of the Group’s leasing portfolio at that time and the Group’s latest assessment regarding whether or not they want to use any options to extend leases. The Group´s EBITDA will improve at the same time that interest expenses will increase. The change is due to the costs for the operating leases previously being included in EBITDA, while amortization on rights of use and interest on the leading liability do not.

The Group applies the relief rule to inherit the earlier definition of leasing at the transition. This means that it is applied to all contracts entered into before January 1, 2019 identified as leases under IAS 17 and IFRIC 4.

As a lessee, the Group can choose to apply the standard either:
– retroactively; or
– with a modified retroactive approach

The selected method is applied to all leases.

The Group applies the modified retroactive approach, which means that the accumulated effect of the transition to IFRS 16 is recognized in the retained earnings in the opening balance at January 1, 2019. The effect in the retained earnings of the transition to IFRS 16 has no material impact to BE Group. No comparative figures will be restated.