Volvo 2007 Annual Report Download - page 113
Download and view the complete annual report
Please find page 113 of the 2007 Volvo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report. Financial information 2007 109
Information regarding shares 2006 2007
Own Series A shares 4,145,627 20,728,135
Own Series B shares 16,739,827 82,054,652
Total own shares 20,885,454 102,782,787
Own shares in % of total registered shares 4.9 4.8
Outstanding Series A shares 131,374,699 656,873,495
Outstanding Series B shares 273,423,891 1,368,763,938
Total outstanding shares 404,798,590 2,025,637,433
Total registered Series A shares 135,520,326 677,601,630
Total registered Series B shares 290,163,718 1,450,818,590
Total registered shares 425,684,044 2,128,420,220
Average number of outstanding shares 404,663,051 2,025,279,790
Changes in outstanding Volvo shares
Balance December 31, 2006 404,798,590
Share split 6:1 with automatic redemption 1,619,194,360
Share-based incentive program 1,644,483
2,025,637,433
Change in other reserve Hedge reserve Available for sale-reserve Total
Balance at January 1, 2007 521 466 987
Fair value gains in year 7 – 7
Tax on fair value gains (2) – (2)
Transfers to income (592) – (592)
Tax on transfers to income statement 166 – 166
Change in fair value of commodity contracts 83 – 83
Fair value adjustments regarding holding in Deutz – (204) (204)
Fair value adjustments regarding shares held by Nissan Diesel – (43) (43)
Fair value adjustments regarding holding in Vindic AB – 25 25
Other (1) 9 8
Balance at December 31, 2007 182 253 435
Earnings per share
Earnings per share is calculated as income for the period, attributable
to the Parent Company’s shareholders, divided by the Parent Com-
pany’s average number of shares outstanding for the fi scal year.
Diluted earnings per share is calculated as income for the period
attributable to the Parent Company’s shareholders divided by the
average number of shares outstanding plus the average number of
shares that would be issued as in effect of ongoing share-based
incentive programs and employee stock option programs. If during the
year there were potential shares redeemed or expired during the
period, these are also included in the average number of shares used
to calculate the earnings per share after dilution.
The share-based incentive program creates a dilution effect when
the non-market-based fi nancial goals are achieved for the fi scal year.
Similarly, the employee stock option program creates a dilution effect
by taking into account the difference between the exercise price and
the share’s average market price to determine how many shares that
are assumed to be issued without any payment. It is solely this number
of shares that have an effect on the calculated diluted earnings. The
number of shares that this value symbolizes is less than the total
potential number of shares attributable to the employee stock option
program.
2006 2007
Number of shares, December 31, in millions 404.8 2,026
Average number of shares before
dilution in millions 404.7 2,025
Average number of shares after
dilution in millions 405.0 2,026
Average share price, SEK 391.94 118.39
Net income attributable to
Parent Company shareholders 16,268 14,932
Basic earnings per share, SEK 8.04 7.37
Diluted earnings per share, SEK 8.03 7.37
Dilution effect, number of shares
Share-based incentive program 72,583 143,073
Employee stock option program 242,900 462,477
Number of potential shares, December 31 315,483 605,550
The share-based incentive program is implemented if certain non-
market based fi nancial goals are fulfi lled partly or wholly. The require-
ment for 2007 was met and creates a dilution effect amounting to
143,073 shares. The employee stock option program creates a dilution
effect amounting to 462,477 shares. In this case, the difference
between the exercise price and the share’s average value under the
actual period has been taken into account. Except for the share split
and the programs described above no other transactions have
occurred that affected, or will have an effect on, the compilation of the
reported share capital.