Volvo 2003 Annual Report Download - page 5

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Volvo B
Affärsvärldens Generalindex
MSCI-Europe - Machinery Index
lenders. The financial ratios are set to meet
long-term A-rated requirements, and the tar-
geted levels were met at year-end 2003.
Volvo held meetings with rating agencies
during the past year to review operations and
to discuss their views of the company.
Moody's Investors Service confirmed the
long-term A3 rating and short term at P-2.
Standard & Poor's confirmed the short-term
rating at A2. To utilize local funding opportu-
nities, and to meet with legal requirements,
Volvo is rated nationally in Canada and Japan
at A-level and short-term in Australia and
Sweden.
Dow Jones Sustainability Index
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 perform-
ance of the leading sustainability-driven com-
panies worldwide. 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.
Dividend
Volvo’s dividend policy states that the effec-
tive return (the dividend combined with the
change in share price over the long term)
should exceed the average for the industry.
For fiscal year 2003, the Board of Directors
proposes that the shareholders at the Annual
General Meeting approve a cash dividend of
SEK 8.00 per share, a total of approximately
SEK 3,556 M, corresponding to a direct
return of 3.6%, calculated at the year-end
rate of SEK 220. In addition, the Board pro-
poses to distribute 99% of the shares in the
wholly owned company, Ainax to the share-
holders. The value of the Ainax shares corre-
sponds to SEK 14.40 per Volvo share, based
on the Scania A closing price of SEK 223.50
at March 12, 2004.
Credit rating
Volvo’s capital structure aims at balancing the
expectations of the stock market and the
financial market. Volvo annually meets with
credit rating agencies to discuss the views of
the lenders and to evaluate the capability to
repay loans at maturity. The group aims to be
a stable long-term A-rated company to attract
The largest shareholders in
AB Volvo, December 31, 20031
Share capital, % 2
Renault SA 20.0
Franklin Templeton funds 5.9
Capital Group funds 2.6
Robur aktiefonder (savings funds) 2.5
SHB 1.8
1Following the repurchase of its own shares, AB Volvo held 5%
of the Company’s shares on Dec. 31, 2003.
2 Based on all registered shares.
Share capital, December 31, 2003
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 208,540
Private persons 199,488
Legal entities 9,052
1Following the repurchase of the Group’s own shares, the num-
ber of outstanding shares was 419,444,842.
2Series A shares carry one vote each.
3Series B shares carry one tenth of a vote each.
Price Trend, Volvo series B shares SEK
See further on page 90 for more detailed
information.