Volvo 2012 Annual Report Download - page 177

AB Volvo SEK
Retained earnings 26,244,618,257.45
Income for the period 2012 5,101,241,488.10
Total retained earnings 31,345,859,745.55
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 3.00
per share 6,083,036,628.001
To be carried forward 25,262,823,117.55
Total 31,345,859,745.55
Proposed Disposition of Unappropriated Earnings
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 circum-
stance has appeared that does not justify the proposed dividend.
If the Annual General Meeting resolves in accordance with the Board
of Directors’ proposal, SEK 25,262,823,117.55 will remain of the Com-
pany’s non-restricted equity, calculated as per year end 2012.
The Board of Directors has the view that the Company’s and the
Group’s shareholders’ equity will, after the proposed dividend, be suffi-
cient in relation to the nature, scope and risks of the business.
1 The total dividend amount is based on the number of outstanding shares as of
February 21, 2013, i.e. 2,027,678,876 shares. The total dividend amount may
change before the record date for determining who is entitled to receive dividends
due to transfer of treasury shares to participants in the company’s long-term,
share-based incentive program.
The Board of Directors and the President certify that the annual financial
report has been prepared in accordance with generally accepted account-
ing 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 European Parliament and of the
Council of 19 July 2002 on the application 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 business, 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.
Göteborg, February 21, 2013
Carl-Henric Svanberg
Board Chairman
Peter Bijur
Board member
Jean-Baptiste Duzan
Board member
Hanne de Mora
Board member Anders Nyrén
Board member
Olof Persson
President, CEO and
Board member
Ravi Venkatesan
Board member
Lars Westerberg
Board member
Ying Yeh
Board member
Peteris Lauberts
Board member
Mikael Sällström
Board member
Berth Thulin
Board member
Our audit report was issued on February 21, 2013
PricewaterhouseCoopers AB
Peter Clemedtson
Authorized Public Accountant
Lead Auditor
Johan Rippe
Authorized Public Accountant
The record date for determining who is entitled to receive dividends is
proposed to be Tuesday April 9, 2013.
In view of the Board of Directors’ proposal to the Annual General Meet-
ing to be held April 4, 2013 to decide on the distribution of a dividend of
SEK 3.00 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 Chap-
ter 17, Section 3, second and third paragraphs 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 54.2 per
cent to 50.2 per cent and the Group’s solvency from 25.7 per cent to 24.3
per cent, calculated as per year end 2012. The Board of Directors consid-
ers 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 payment obli-
gations and the Company and the Group are well prepared to handle both
changes in the liquidity and unexpected events.
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