Volvo 1999 Annual Report Download - page 49

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47
Euro
Since January 1, 1999, it has been possible to list Swedish shares denominated in
euro on the OM Stockholm Exchange. Volvo has not elected to list its shares in
euro but will do so if interest from shareholders and investors increases.Also finan-
cial reporting will be considered when there is a demand.
Beta value
The beta value is a measurement of risk that shows a share’s price change relative
to prices on the exchange as a whole. A high beta value implies a high risk. The
average beta value for the period from 1996 to 1999 for Volvo’ Series B shares was
0.71. This means that the Volvo share varied 29% less than all the shares on the
OM Stockholm Exchange. Most of the change is related to the market’s ongoing
evaluation of the Volvo Group’s future profit expectations. The explanatory value
was established at 0.26 in 1999, which means that 26% of the Volvo share’s price
trend can be attributed to the total price trend for the OM Stockholm Exchange.
Dividend
The Board of Directors propose that the shareholders at the Annual General
Meeting approve a dividend of SEK 7.00 per share, or a total of SEK 3,091 M. for
the fiscal year 1999. In 1998, the dividend amounted to SEK 6.00 per share.
Dividend policy
Volvo’s dividend policy is that the dividend combined with the increase in value
of the share over the long term should exceed the average for the industry. If the
capital level in the new Group is determined to be too high and is not necessary
for the growth of operations, the recurring annual dividend could also be sup-
plemented by measures such as the purchase of own shares.
Proposed authorization to repurchase Com pany shares
The Board of Directors of AB Volvo intends to propose that the Annual General
Meeting of shareholders authorize the Board to repurchase Company shares. This
authorization would make it possible for the Board, during the period preceding
the next Annual General Meeting, to repurchase Company shares if the Board
finds such action to be appropriate. Any repurchase would occur in the open mar-
ket or through an offer to the shareholders. The authorization to be granted the
Board is also intended to include the ability to transfer repurchased shares within
the frameworks permitted in the legislation.
SEK
Trend of price, Volvo B
Trend of price of Volvo Series B shares
on the OM Stockholm Exchange
(highest and lowerst price per month)
300
250
200
150
10 0
50
0
95 96 97 98
350
400
450
99
General Index
Number
Turnover of Volvo B shares
Number of Volvo Series B shares traded
on OM Stockholm Exchange (millions) 90
50
40
30
20
10
0
95 96 97 98
60
70
80
99
Source: OM Stockholm Exchange
Source: OM Stockholm Exchange