Volvo 2008 Annual Report Download - page 36

Download and view the complete annual report

Please find page 36 of the 2008 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.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

The share
The world#s leading stock markets were characterized by weak trends during
2008. AB Volvo#s AGM will be held in Göteborg on Wednesday, April 1, 2009.
Earnings and dividend per share Total return, Volvo B
B Share (incl. re-invested dividends)
SIX Return Index
Index 100 = Share price Volvo
B Share, January 1, 2003.
Source: Findata Direkt
0
100
200
400
500
300
04 05 06 07 08
Earnings per share, SEK
Dividend per share, SEK
06
8.03
07
7.37
04
4.72
05
6.44
5.00 5.50
08
4.90
2.001
2.50 3.35
Extraordinary payment
5.00
1 Proposed by the
Board of Directors
The Volvo share is listed on the Nasdaq OMX
Nordic Exchange in Stockholm, Sweden. In
Stockholm, 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 General 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
Depositary Receipt (ADR) was delisted from
the NASDAQ exchange in the US. Following
the delisting, all offi cial trading in Volvo shares
is concentrated to the Nasdaq OMX Nordic
Exchange.
The Volvo share is included in a large number
of indexes that are compiled by Dow Jones,
FTSE, S&P and Nasdaq OMX Nordic.
Weak trend on the stock market
The development on the world’s leading stock
exchanges was characterized by signifi cant
uncertainty in the world’s fi nancial markets
during 2008. On Nasdaq OMX Nordic, the
OMXSPI index dropped 41% in 2008.
Trading in Volvo A shares on Nasdaq OMX
Nordic increased by 79% compared to 2007.
The share price declined by 60% and was SEK
43.70 per share at year-end. The highest price
paid was SEK 109 on January 2, 2008.
Trading in Volvo B shares on Nasdaq OMX
Nordic increased by 15% compared to 2007.
The share price declined by 60% and was SEK
42.90 per share at year-end. The highest price
paid was SEK 109.25 on January 2, 2008.
In 2008, a total of 3,438 million (2,885)
Volvo shares were traded iin Stockholm, cor-
responding to a daily average of 13.6 million
(11.5). At year-end 2008, Volvo’s market capi-
talization totaled SEK 92 billion (231).
Dividend
The Volvo Group's dividend has been main-
tained or raised every year between 1992 and
2007. The dividend level is evalutated on a
regular basis by the Board of Directors.
In order to maintain a good fi nancial stability
and to be able to continue to invest in the devel-
opment of products for the future, the Board of
Directors proposes that the Annual General
Meeting approves that the ordinary dividend be
lowered to SEK 2,00 per share for fi scal year
2008. That corresponds to a cut of 64% com-
pared to the previous year when the dividend
was SEK 5,50.
The dividend of SEK 2.00 per share co-
rresponds to a yield of 4.7%, based on the share
price at year-end.
Communication with the shareholders
Dialog with the shareholders is important for
Volvo. In addition to the Annual General Meet-
ing and a number of large-scale activities
aimed at professional investors, private share-
holders and stock market analysts, the rela-
tionship between Volvo and the stock market
is maintained through such events as press
and telephone conferences in conjunction
with the publication of interim reports, investor
meetings and road shows in Europe, the US
and Asia.
On the website www.volvogroup.com it is
possible to access fi nancial reports for the
past 10 years and search for information con-
cerning the share, insider trading in Volvo and
32 Board of Directors’ Report 2008