Volvo 2001 Annual Report Download - page 16

Shareholders in focus
The continuing dialogue with shareholders is
of high importance to Volvo. In addition to
the Annual General Meeting in April, a large
number of activities took place in 2001
geared towards professional analysts and
investors and also addressed directly to
Volvo’s private shareholders. The Internet is
an important tool in the shareholder
dialogue. It makes it possible for all share-
holders to obtain relevant and timely infor-
mation about Volvo.
Volvo’s dividend policy states that the
effective return (the dividend combined
with the change in share price over the long
term) should exceed the average for the
industry. If the future capital level in the
Group is determined to be too high and not
necessary for the growth of operations, the
annual dividend could also be supplemented
by measures such as the repurchase of com-
pany shares. For the fiscal year 2001, the
Board of Directors proposes that the share-
holders at the Annual General Meeting
approve an unchanged dividend of SEK 8.00
per share, a total of approximately SEK
3,356 M, based on the number of shares out-
standing, corresponding to a direct return of
4.5%.
Dow Jones Sustainability Index
Volvo has a history of corporate citizenship
based on its three core values; quality, safety
and care for the environment. As of 2002,
the Volvo share is part of the newly launched
Dow Jones STOXX Sustainability Indexes.
Launched in 1999, the Dow Jones
Sustainability World Index is the first global
index tracking the performance of the lead-
ing sustainability-driven companies world-
wide. It covers the top 10% of the largest
2,500 companies in the Dow Jones Global
Index in terms of economic, environmental
and social criteria.
Delisting
In December 2001, as a result of deregula-
tion of the international capital markets and
the increased foreign ownership of shares on
the Stockholmsbörsen, the Board of Directors
decided to apply for a delisting of the Volvo
share from the Tokyo stock exchange.
Repurchase of shares
During 2001, the Board of Directors of AB
Volvo decided to acquire a maximum of
10% of the Company’s shares on the Stock-
holmsbörsen, corresponding to 44,152,088
shares. The repurchase was carried out on
the Stockholmsbörsen during the spring of
2001. Of the repurchased shares, 5% were
transferred to Renault SA as final payment
for the shares in Mack and Renault V.I. The
remaining 5% is held by AB Volvo.
The stock market in 2001
The year 2001 was initially characterized by
declining share prices on stock markets
worldwide, however there was a notable
recovery during the later part of the year.
The leading US Index, the Dow Jones
Industrial Average, decreased by 7% and
NASDAQ (Volvo listed since 1985), where
high-technology shares dominate, closed at
21% down. In Sweden, Stockholmsbörsen
All Share Index decreased by 17%.
Continued uncertainties about the macro-
economic development in the US affected
the General Index.
THE VOLVO SHARE
Exchange listings of Volvo shares
Stockholm 1935
London 1972
Frankfurt am Main,
Düsseldorf, Hamburg 1974
USA (NASDAQ) 1985
Brussels 1985
Tokyo 11986
1 Volvo's Board of Directors has applied for delisting from
the Tokyo Stock Exchange. The delisting will be effective
as of May 22, 2002.
Share capital Dec 31 2001
Registered number
of shares 1441,520,885
of which, Series A shares 2138,604,945
of which, Series B shares 3302,915,940
Par value, SEK 6
Share capital, SEK M 2,649
Number of shareholders 214,000
with shares held in own name 126,000
with shares held by trustees 88,000
1Following the repurchase of own shares, the number of
outstanding shares was 419,444,842.
2Series A shares carry one vote each.
3Series B shares carry one tenth vote each.
The Volvo share