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BOARD OF DIRECTORS’ REPORT 2010
THE SHARE
The Volvo share is listed on the Nasdaq OMX
Nordic Exchange in Sweden. One A share enti-
tles the holder to one vote at Annual General
Meetings and one B share entitles the holder to
one tenth of a vote. Dividends are the same for
both classes of shares.
The Volvo share is included in a large number
of indexes that are compiled by Dow Jones,
FTSE, S&P and Nasdaq OMX Nordic.
Positive development on the stock market
In general, the development on the world’s lead-
ing stock exchanges was positive after the recov-
ery that began in 2009. On Nasdaq OMX Nordic,
the OMXSPI index rose by 23% during the year.
Trading in Volvo A shares on Nasdaq OMX Nor-
dic increased by 38% compared to 2009 and the
share price increased by 89%. At year-end the price
for the Volvo A share was SEK 115. The highest
price paid was SEK 115.70 on December 30, 2010.
Trading in Volvo B shares on Nasdaq OMX
Nordic decreased by 16% compared to 2009.
The share price increased by 93% and was SEK
118.50 per share at year-end. The highest price
paid was SEK 118.80 on December 30, 2010.
In 2010, a total of 2.5 billion (2.9) Volvo shares
were traded in Stockholm, corresponding to a
daily average of 9.8 million (11.4). At year-end
2010, Volvo’s market capitalization totaled SEK
238 billion (124).
An increasing portion of the trading in Volvo
shares is carried out on alternative exchanges
such as Bats Europe, Burgundy and Chi-X.
Ownership changes
In October 2010, AB Volvo’s main shareholder,
Renault, sold its entire holding of 302,915,940 B
shares. Buyers of the shares were a large number of
institutions from around the world. Through the sale,
Renault’s holding in AB Volvo decreased from
21.8% of the capital and 21.3% votes to 6.8% of
the capital and 17.5% of the votes. Even after the
sale, Renault continues to be AB Volvo’s largest
owner based both on capital and on voting rights.
Dividend
Based on the much improved profitability and a
significantly reduced debt level, the Board pro-
poses to resume dividends with a pay-out of SEK
2.50 per share for the financial year of 2010,
which means a total of SEK 5,069 M is being
transferred to AB Volvo’s shareholders. No divi-
dend was paid for the preceding year.
Communication with the shareholders
Dialog with the shareholders is important for
Volvo. In addition to the Annual General Meeting
and a number of larger activities aimed at profes-
sional investors, private shareholders and stock
market analysts, the relationship between Volvo
and the stock market is maintained through such
events as press and telephone conferences in
conjunction with the publication of interim
reports, meetings with retail shareholders’ asso-
ciations, investor meetings and visits, as well as
road shows in Europe, the U.S. and Asia.
During 2010 a number of large events were held:
• An investor day in Shanghai in May in cooper-
ation with five other Swedish capital goods
companies. On the agenda was a visit to Volvo
Construction Equipment’s production facilities
among other topics.
• In June, the annual capital markets day was held
in Skövde, Sweden with a tour of the Group’s
foundry and engine manufacturing.
• An investor day in Curitiba, Brazil was held in Sep-
tember. It included a factory tour and presentations
of the business and strategy in South America.
• An investor day in New York City in November
contained a presentation of the Group strategy
and in-depth information on the North Ameri-
can market.
On the website www.volvogroup.com it is po ssible
to access financial reports, search for information
concerning the share, insider trading in Volvo and
statistics for truck deliveries. It is also possible to
access information concerning the Group’s gov-
ernance, including information about the Annual
General Meeting, the Board of Directors, Group
Management and other areas that are regulated
in the “Swedish Code of Corporate Governance.”
The website also offers the possibility to sub-
scribe to information from Volvo.
Earnings per share
Dividend per share
(7.26)
0.00
Extraordinary payment
1 Proposed by the Board of Directors
08
4.90
06
8.03
07
7.37
2.00
10
5.36
2.501
5.00 5.50
5.00 09
Total return, Volvo B
B Share
(incl. re-invested dividends)
SIX Return Index
Source: NASDAQ OMX
06 07 08 09 10
40
60
80
100
120
140
160
180
Rose by 93% during 2010
After the recovery that began in 2009, the trend continued to be positive for
both the Volvo share and the world’s leading stock markets in 2010.
Earnings and dividend per share
56