Volvo 2014 Annual Report Download - page 181

AB Volvo SEK
Retained earnings 21,705,022,946.60
Income for the period 2014 6,690,166,462.32
Total retained earnings 28,395,189,408.92
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 6,089,823,870.00
To be carried forward 22,305,365,538.92
Total 28, 395,189,408.92
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
justifi ed 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 fi nancial 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 22,305,365,538.92 will remain of the Com-
pany’s non-restricted equity, calculated as per year end 2014.
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 rela-
tion 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 3,995,279,712.00 less.
The Board of Directors and the President certify that the annual fi nancial
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 profi t 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 profi t 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 26, 2015
Carl-Henric Svanberg
Board Chairman
Matti Alahuhta
Board member
Jean-Baptiste Duzan
Board member
James W. Griffi th
Board member
Kathryn V. Marinello
Board member
Hanne de Mora
Board member
Anders Nyrén
Board member
Olof Persson
President, CEO and
Board member
Lars Westerberg
Board member
Mats Henning
Board member
Mikael Sällström
Board member
Berth Thulin
Board member
Our audit report was issued on February 26, 2015
PricewaterhouseCoopers AB
Peter Clemedtson
Authorized Public Accountant
Lead Partner
Johan Rippe
Authorized Public Accountant
Partner
The record date for determining who is entitled to receive dividends is
proposed to be Tuesday April 7, 2015.
In view of the Board of Directors’ proposal to the Annual General Meet-
ing to be held April 1, 2015 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 justifi able 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 46.0
percent to 41.8 percent and the Group’s solvency from 20.9 percent to
19.6 per cent, calculated as per year end 2014. 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 fulfi l their payment obli-
gations and the Company and the Group are well prepared to handle both
changes in the liquidity and unexpected events.
FINANCIAL INFORMATION 2014
177