Volvo 2011 Annual Report Download - page 56

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BOARD OF DIRECTORS’ REPORT 2011
Many of the world’s leading stock markets had a weak development in 2011 in the
wake of the debt crisis in Europe and concern for the global economy. The Volvo
share also had a negative development.
THE SHARE
THE MOST TRADED SHARE IN STOCKHOLM
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.
Negative development on the
stock market
In general, the development on the world’s lead-
ing stock exchanges was negative following two
years of positive trends. On Nasdaq OMX Nordic,
the OMXSPI index fell by 18% during the year.
Trading in Volvo A shares on Nasdaq OMX
Nordic decreased by 35% compared to 2010.
The share price decreased by 34%, and at year-
end the price for the Volvo A share was SEK
75.95. The highest price paid was SEK 119.50
on January 3, 2011.
Trading in Volvo B shares on Nasdaq OMX
Nordic increased by 30% compared to 2010.
The share price decreased by 36% and was
SEK 75.30 per share at year-end. The highest
price paid was SEK 121.70 on January 3, 2011.
In 2011, a total of 3.1 billion (2.5) Volvo shares
at a value of SEK 282 billion were traded Nas-
daq OMX Stockholm, corresponding to a daily
average of 12.0 million shares (9.8).
The Volvo share was the most traded share
on Nasdaq OMX Stockholm in 2011. At year-end
2011, Volvo’s market capitalization totalled SEK
153 billion (238).
An increasing portion of the trading in Volvo
shares is carried out on alternative exchanges
such as Bats Europe, Burgundy, Chi-X and
Turquoise. According to Fidessa the direct trad-
ing on Nasdaq OMX Stockholm accounted for
56% of the turnover in the Volvo B share while
the trading at Chi-X accounted for 11%, Bur-
gundy for 5%, Bats Europe for 3% and Tur-
quoise for 2%. The remainder of the trading
took place outside these exchanges.
Share conversion option
In accordance with a resolution on the AGM on
April 6, 2011, the Articles of Association have
been amended to include a conversion clause,
stipulating that series A shares may be con-
verted into series B shares, after a request sent
to the Board.
During the year a total of 14.1 million A shares
was converted to B shares, representing 2.1%
of the initially outstanding A shares. A total of
50 requests from 33 persons or entities were
handled.
Further information on the procedure is avail-
able on the Volvo Group’s web site:
www.volvogroup.com
Dividend
The Board proposes a dividend of SEK 3.00 per
share for the financial year of 2011, which would
mean that a total of SEK 6,082 M would be
transferred to AB Volvo’s shareholders. For the
preceding year a dividend of SEK 2.50 per share
was paid out, in total SEK 5,069 M.
Communication with shareholders
Dialog with the shareholders is important for
Volvo. In addition to the Annual General Meeting
and a number of larger activities aimed at pro-
fessional investors, private shareholders and
stock market analysts, the relationship between
Volvo and the stock market is maintained through
such events as press and telephone confer-
ences in conjunction with the publication of
interim reports, meetings with retail sharehold-
ers’ associations, investor meetings and visits,
as well as road shows in Europe, North America
and Asia.
On the website www.volvogroup.com it is pos-
sible to access financial reports, search for infor-
mation concerning the share, insider trading in
Volvo and statistics for truck deliveries. It is also
possible to access information concerning the
Group’s governance, including information about
the Annual General Meeting, the Board of Direc-
tors, Group Management and other areas that
are regulated in the “Swedish Code of Corporate
Governance.” The website also offers the possi-
bility to subscribe to information from Volvo.
Total return, Volvo B
B Share
(incl. re-invested
dividends)
SIX Return index
Source: NASDAQ OMX
07 08 09 10 11
20
40
60
100
120
140
160
80
Earnings per share, SEK
Dividend per share, SEK
(7.26)
0.00
1 Proposed by the Board of Directors
08
4.90
2.00
10
5.36
2.50
07
7.37
5.50
09
11
8.75
3.001
Earnings and dividend per share
52