Volvo 2007 Annual Report Download - page 151
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Please find page 151 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 147
Proposed disposition of unappropriated earnings
AB Volvo SEK M
Retained earnings 19,062
Income for the period 3,192
Total 22,254
The Board of Directors and the President propose that the above sum
be disposed of as follows:
SEK M
To the shareholders, a dividend of SEK 5.50 per share 11,141
To be carried forward 11,113
Total 22,254
The record date for determining who is entitled to receive dividends is
proposed to be Monday, April 14, 2008. In view of the Board of Direct-
ors’ proposal to the Annual General Meeting to be held 9 April 2008
to decide on the distribution of a dividend of SEK 5.50 per share, the
Board hereby makes the following statement in accordance with
Chapter 18, Section 4 of the Swedish Companies Act.
The Board concludes that the Company’s restricted equity is fully
covered after the proposed dividend. The Board further concludes
that the proposed dividend is justifi able in view of the parameters set
out in Chapter 17, Section 3, second and third paragraphs of the
Swedish Companies Act. In connection herewith, the Board wish to
point out the following.
The proposed dividend reduces the Company’s solvency from 53.9
per cent to 43.4 per cent and the Group’s solvency from 25.7 per cent
to 23.1 per cent, calculated as per year end 2007. The Board of Direct-
ors considers this solvency to be satisfactory with regard to the busi-
ness in which the Group is active.
According to the Board of Directors’ opinion, the proposed dividend
will not affect the Company’s or the Group’s ability to fulfi l their pay-
ment obligations and the Company and the Group are well prepared to
handle both changes in the liquidity and unexpected events.
The Board of Directors is of the opinion that the Company and the
Group have capacity to take future business risks as well as to bear
contingent losses. The proposed dividend will not negatively affect the
Company’s and the Group’s ability to make further commercially justi-
fi ed investments in accordance with the Board of Directors’ plans.
In addition to what has been stated above, the Board of Directors
has considered other known circumstances which may be of import-
ance for the Company’s and the Group’s fi nancial position. In doing so,
no circumstance has appeared that does not justify the proposed
dividend.
If the Annual General Meeting resolves in accordance with the
Board of Directors’ proposal, SEK 11,113 M will remain of the Com-
pany’s non-restricted equity, calculated as per year end 2007.
The Board of Directors has the view that the Company’s and the
Group’s shareholders’ equity will, after the proposed dividend, be suf-
fi cient in relation to the nature, scope and risks of the business.
Had the assets and liabilities not been estimated at their market
value pursuant to Chapter 4, Section 14 of the Swedish Annual
Accounts Act, the company’s shareholders’ equity would have been
SEK 272,765,399.00 less.
The Board of Directors and the President certify that the annual
fi nancial report has been prepared in accordance with generally
accepted accounting principles and that the consolidated accounts
have been prepared in accordance with the international set of
accounting standards referred to in Regulation (EC) No 1606/2002
of the European Parliament and of the Council of 19 July 2002 on the
application of international accounting standards, and give a true and
fair view of the position and profi t or loss of the Company and the
Group, and that the Board of Directors’ Report for the Company and
for the Group gives a fair review of the development and performance
of the business, position and profi t or loss of the Company and the
Group, and describes the principal risks and uncertainties that the
Company and the companies of the Group face.
Göteborg, February 26, 2008
Finn Johnsson
Board Chairman
Peter Bijur Per-Olof Eriksson
Board member Board member
Tom Hedelius Leif Johansson Philippe Klein
Board member President and CEO of the Volvo Group and Board member Board member
Louis Schweitzer Lars Westerberg Ying Yeh
Board member Board member Board member
Martin Linder Olle Ludvigsson Johnny Rönnkvist
Board member Board member Board member
Our audit report was issued on February 26, 2008
PricewaterhouseCoopers AB
Göran Tidström Olov Karlsson
Authorized Public Accountant Authorized Public Accountant
Lead Partner Partner