Volvo 2007 Annual Report Download - page 34
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Please find page 34 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.The share
In 2007, a total of slightly more than SEK 20 billion was transferred to Volvo’s share-
holders in the form of a dividend and share redemption. As of 2008, all trading in
the Volvo share will take place on the OMX Nordic Exchange Stockholm. The Annual
General Meeting will be held in Göteborg on April 9, 2008.
Earnings1 and dividend per share Total return, Volvo B
0
100
200
400
500
600
700
B Share
(incl. re-invested dividends)
SIX Return Index
Index 100 = Share price
Volvo B Share, January 1, 2002.
Source: Findata Direkt
300
03 04 05 06 07
Earnings1 per share
Dividend per share
* Proposed by the Board of Directors
1 Years 2004-2007 reported
in accordance with IFRS and
2003 in accordance with
prevailing Swedish GAAP.
See Note 1 and 3.
05
6.44
06
8.03
03
0.14
04
4.72
3.35 5.00
07
7.37
5.50*1.60 2.50
Extraordinary payment
5.00
Board of Directors’ Report
30 Board of Directors’ Report 2007
The Volvo share is listed on the OMX Nordic
Exchange Stockholm in Sweden. In Stock-
holm, the Volvo A and B shares are traded in
blocks of 100 shares each. One Volvo A share
entitles the holder to one vote at Annual Gen-
eral Meetings and one Volvo B share entitles
the holder to one tenth of a vote. Dividends
are the same for both classes of shares.
In December 2007, Volvo’s American Depos-
itary Receipt (ADR) was
delisted from the NAS-
DAQ exchange in the
US. Volvo’s ADR, which
corresponds to its B share, has been listed on
the NASDAQ since 1985. Following the delist-
ing, all trading in Volvo shares is concentrated to
the OMX Nordic Exchange Stockholm.
The Volvo share is included in a large
number of indexes that are compiled by Dow
Jones, FTSE, S/P, the OMX Nordic Exchange
and the Affärsvärlden business magazine.
A volatile year
The overall trend of the world’s leading stock
exchanges was favorable in the beginning of
2007. The latter half of the year, however, was
characterized by signifi cant uncertainty in the
world’s fi nancial markets. On the OMX Nordic
Exchange Stockholm, the OMXSPI index
dropped 7% in 2007.
Trading in Volvo A shares in Stockholm
declined by 41%, adjusted for the share split,
compared with 2006. The share price rose by
15.5% and was SEK 108.00 per share at
year-end. The highest price paid was SEK
153.00 on July 16,
2007, which is the
highest price paid for
Volvo A shares up until
the end of 2007.
Trading in Volvo B shares in Stockholm
declined by 15%, adjusted for the share split,
compared with 2006. The share price rose by
19% and was SEK 108.50 per share at year-
end. The highest price paid was SEK 152.00
on July 16, 2007, and this too is the highest
price paid for Volvo B share up until the end of
2007.
When the Volvo ADR was delisted from the
NASDAQ exchange on December 13, 2007,
the price was USD 17.86, corresponding to an
increase of 35% during the year.
In 2007, a total of 2,885 million (673) Volvo
shares were traded in Stockholm, correspond-
ing to a daily average of 11.5 million (2.7). The
large increase in the turnover of shares is a
consequence of the share split at the end of
April 2007. At year-end 2007, Volvo’s market
capitalization totaled SEK 231 billion (193).
NASDAQ and the SEC
In December 2007, AB Volvo applied to have
the Volvo share delisted from the NASDAQ
exchange and the B share delisted from the
US Securities and Exchange Commission
(SEC). Volvo’s ADR, which corresponds to the
B share, has been listed on the NASDAQ
since 1985. Volvo intends to maintain its ADR
program. After the delisting in December 2007,
all trading in Volvo shares is concentrated to
the OMX Nordic Exchange Stockholm.
Dividend
The objective of Volvo’s dividend policy is that
the long-term total return to shareholders
should exceed the average for the industry.
Historically, dividends on Volvo shares have
risen steadily. The Volvo share’s total return, that