Volvo 2010 Annual Report Download - page 131

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AB Volvo SEK
Retained earnings 21,634,556,869.50
Income for the period 2010 10,327,605,961.72
Total retained earnings 31,962,162,831.22
The Board of Directors and the President propose that the above
sum be disposed of as follows:
 SEK
To the shareholders, a dividend of SEK
2.50 per share 5,068,567,563.00
To be carried forward 26,893,595,268.22
Total 31,962,162,831.22
PROPOSED DISPOSITION OF UNAPPROPRIATED
EARNINGS
The record date for determining who is entitled to receive dividends is
proposed to be Monday, April 11, 2011.
In view of the Board of Directors’ proposal to the Annual General Meet-
ing to be held April 6, 2011, to decide on the distribution of a dividend of
SEK 2.50 per share, the Board hereby makes the following statement in
accordance with Chapter 18, Section 4 of the Swedish Companies Act.
The Board of Directors concludes that the Company’s restricted
equity is fully covered after the proposed dividend. The Board further
concludes that the proposed dividend is justifiable in view of the
parameters set out in Chapter 17, Section 3, second and third para-
graphs of the Swedish Companies Act. In connection herewith, the
Board wishes to point out the following.
The proposed dividend reduces the Company’s solvency from
53.5% to 50.3% and the Group’s solvency from 23.3% to 22.1%,
calculated as per year end 2010. The Board of Directors considers
this solvency to be satisfactory with regard to the business 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 fulfil their pay-
ment obligations and the Company and the Group are well prepared to
handle both changes in the liquidity and unexpected events.
Göteborg, February 24, 2011
Louis Schweitzer
Board Chairman
Peter Bijur
Board member
Jean-Baptiste Duzan
Board member
Leif Johansson
President, CEO and
Board member
Hanne de Mora
Board member
Anders Nyrén
Board member
Ravi Venkatesan
Board member
Lars Westerberg
Board member
Ying Yeh
Board member
Martin Linder
Board member
Mikael Sällström
Board member
Berth Thulin
Board member
Our audit report was issued on February 24, 2011
PricewaterhouseCoopers AB
Göran Tidström
Authorized Public Accountant
Lead Partner
Johan Rippe
Authorized Public Accountant
The Board of Directors is of the opinion that the Company and the
Group have capacity to assume future business risks as well as to
bear contingent losses. The proposed dividend is not expected to
adversely affect the Company’s and the Group’s ability to make further
commercially justified 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 importance for
the Company’s and the Group’s financial position. In doing so, no cir-
cumstance has appeared that does not justify the proposed dividend.
If the Annual General Meeting resolves in accordance with the Board
of Directors’ proposal, SEK 26,893,595,268.22 will remain of the Com-
pany’s non-restricted equity, calculated as per year end 2010.
The Board of Directors has the view that the Company’s and the
Group’s shareholders’ equity will, after the proposed dividend, be suf-
ficient 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 a of the Swedish Annual
Accounts Act, the company’s shareholders’ equity would have been
SEK 193,353,379.00 less.
The Board of Directors and the President certify that the annual finan-
cial 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 Euro-
pean Parliament and of the Council of July 19, 2002 on the applica-
tion of international accounting standards, and give a true and fair
view of the position and profit or loss of the Company and the Group,
and that the management report for the Company and for the Group
gives a fair review of the development and performance of the busi-
ness, position and profit or loss of the Company and the Group, and
describes the principal risks and uncertainties that the Company and
the companies in the Group face.
127