Volvo 1998 Annual Report Download - page 96

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94
History
In 1926, SKF subscribed a share capital amounting to SEK 200,000, represented by
2,000 shares. In 1935, when Volvo’s shares were listed on the Stockholm Stock
Exchange, the share capital had increased to SEK 13 M, and the number of shares
to 260,000.
At year-end 1998 the share capital of AB Volvo amounted to SEK 2,649 M,
represented by 441,520,885 shares, distributed among approximately 210,600 share-
holders. The share capital is divided into Series A shares with one vote each and
Series B with one tenth of a vote each. Totally, there are 168,896,539 voting rights
with a par value of SEK 6 per share. The 50 largest shareholders account for more
than 80% of the voting rights.
Volvo shares in 1998
The stock year 1998 was a year full of uncertainty and great stock exchange shifts.
A positive first half-year was during the second part of the year exchanged to con-
cern regarding global recession. The Stockholm Stock Exchange General Index in-
creased with 10% and the Dow Jones (Industrial Average) Index in New York by 16%.
The market price of Volvo Series B shares was SEK 213 at the beginning of the
year, and SEK 186 at the close of the year – a decrease in value of 13%. Volvo’s
market value at December 31, 1998, was SEK 81.5 billion, equal to 3.4% (4.3) of
the total market value of all companies listed on the Stockholm Stock Exchange.
The highest price paid for Series B shares during the year was SEK 283, on July 17
and the lowest price, SEK 152.50 was paid October 8. There is also trading in Volvo
put and call options, futures and stock loans on the Stockholm Options Exchange
(OM Stockholm AB). During 1998, 624,436 call options, 358,588 put options,
10,774 futures and 516 stock loans were traded.
Delistings
In February 1998, the Board of Directors decided to delist Volvo’s shares from the
stock exchanges in Paris, Zürich, Basel and Geneva due to the low turnover relative
to listing and administration costs.
Turnover
The Stockholm Stock Exchange accounts for the largest part of the turnover, with
an average of 1.6 million Volvo shares being traded per trading day. Apart from the
Stockholm Stock Exchange, most of the trading takes place in London and on
NASDAQ. Trading on the NASDAQ electronic exchange declined by 3% during the
year and the number of outstanding American Depositary Receipts (ADRs – cer-
tificates representing Series B shares) increased by 15%, to 19.4 million. Holdings
of Volvo shares by foreign investors decreased from 36% of the share capital (19%
of the votes) to 33% (14) in 1998.
Dividend
The Board of Directors and the President propose that shareholders at the General
Meeting approve payment of a dividend of SEK 6.00 per share corresponding to
a total of SEK 2,649 M, for the 1998 fiscal year. The dividend paid on 1997 oper-
ations amounted to SEK 5.00 per share, or a total of SEK 2,208 M.
Euro
As of January 1, 1999 it is possible to list Swedish shares denominated in euros on
the Stockholm Stock Exchange. Volvo may consider a listing in euros, depending on
the demand from Swedish and foreign shareholders and investors.
General Index
Trend of price, Volvo B SEK
94
Trend of price of Volvo Series B shares on the Stockholm
Stock Exchange (highest and lowest price per month)
300
250
200
15 0
10 0
50
095 96 97 98
Turnover of Volvo B shares Number
94
Number of Volvo Series B shares traded on Stockholm
Stock Exchange (shares in millions)
60
50
40
30
20
10
095 96 97 98
SHAREHOLDER INFORMATION