Volvo 2012 Annual Report Download - page 74

BOARD OF DIRECTORS’ REPORT 2012 GROUP PERFORMANCE
THE SHARE
The most traded share in Stockholm
In spite of the slowdown in the economy, many of the world’s leading
stock markets had a positive development in 2012. The Volvo share
also had a positive development.
The Volvo share is listed on the Nasdaq OMX Nor-
dic Exchange in Sweden. One A share carries one
vote at Annual General Meetings and one B share
carries one tenth of a vote. Dividends are the same
for both classes of shares. The A share is traded
under the ticker code Volvo A and the B share
under Volvo B.
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, developments on the leading stock
exchanges were positive following the negative
developments in 2011. On Nasdaq OMX Nordic,
the broad OMXSPI index rose by 12% (–17%)
during the year.
On Nasdaq OMX Nordic the share price for the
Volvo A share increased by 18%, and at year-end
the price for the Volvo A share was SEK (89.40)
(75.95). The lowest price paid was SEK 73.80 on
June 28, and the highest price paid was SEK
100.50 on February 21.
The share price for the Volvo B share increased
by 18% and was SEK 88.80 (75.30) at year-end.
The lowest price paid was SEK 73.60 on June 28,
and the highest price paid was SEK 100.40 on
February 21 and March 16.
In 2012, a total of 2.1 billion (3.1) Volvo shares at
a value of SEK 188 billion (282) were traded on
Nasdaq OMX Stockholm, corresponding to a daily
average of 8.5 million shares (12.0). The Volvo
share was the most traded share on Nasdaq OMX
Stockholm in 2012. At year-end 2011, Volvo’s mar-
ket capitalization totalled SEK 189 billion (153).
According to Fidessa, the trading on Nasdaq
OMX Stockholm accounted for 46% (56) of the
turnover in the Volvo B share while the remainder
took place at exchanges such as BATS, Chi-X,
Burgundy and Turquoise.
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, stipulat-
ing that series A shares may be converted into
series B shares, after a request sent to the Board.
During the year a total of 116,950,647 A shares
were converted to B shares, representing 17.6%
of the outstanding A shares at the end of 2011.
Further information on the procedure is
available on the Volvo Group’s web site:
www.volvogroup.com
Ownership changes
In December 2012, Renault s.a.s. sold its entire
holding of 138,604,945 A shares to a number of
institutions in Sweden and abroad. As part of the
transaction, Renault s.a.s. requested the conver-
sion of 110,048,945 A shares to B shares. In con-
junction with the transaction, Industrivärden
announced that it had increased its holding by
10,000,000 A shares. At year end, Industrivärden
was the largest owner in AB Volvo followed by Vio-
let Partners, SHB and Norges Bank Investment
Management, when measured as share of votes.
Dividend
The Board proposes a dividend of SEK 3.00 per
share for the financial year of 2012, which would
mean that a total of SEK 6,083 M would be
transferred to AB Volvo’s shareholders. For the
preceding year a dividend of SEK 3.00 per share
was paid out, in total SEK 6,082 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 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’ 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.
Earnings per share
Dividend per share
1 Proposed by the Board of Directors
08
4.90
2.00
10
5.36
2.50
(7. 26)
0.00
09
11
8.75
3.00
12
5.44
3.001
Earnings and dividend per share
The Volvo Group once again qualifies for the Dow Jones Sustai-
nability World Index (DJSI). The Volvo Group receives a parti-
cularly good rating for its handling of environmental issues. In
this ranking, the world’s 2,500 largest companies are assessed
on the basis of their strategies and results in spheres such as
business ethics, environmental consideration and social criteria,
with the focus on their ability to generate long-term value. The
top 300 companies, a category that encompasses the Volvo
Group, are included in the DJSI World.
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