Electrolux 2005 Annual Report Download - page 113
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Electrolux shares
The market capitalization of Electrolux shares at year-end 2005 was
SEK 63.9 (46.9) billion, which corresponded to 1.8% (1.7) of the total
market capitalization of the Stockholm Stock Exchange.
The highest closing price for Electrolux B-shares during the year
was SEK 208.50 on December 29, and the lowest closing price
SEK 142.50 on April 27. The highest closing price for A-shares during
the year was SEK 220 on December 29, and the lowest closing price
SEK 145.50 on February 7.
Trading volume
In 2005, 556.6 (542.3) million Electrolux shares were traded on the
Stockholm Stock Exchange at a value of SEK 92.4 (80.1) billion.
Electrolux shares thus accounted for 2.5% (2.4) of the total yearly
trading volume of SEK 3,764 (3,391) billion on the Stockholm Stock
Exchange.
The average value of the A- and B-shares traded daily was
SEK 365.1m (316.5), corresponding to 2.2 million shares.
A total of 117.7 (122.8) million Electrolux shares were traded on
the London Stock Exchange, while 2.9 (5.8) million American Depos-
itory Receipts (ADRs) were traded. The ADRs were delisted from the
NASDAQ Stock Market on March 31, 2005, and the trading was
transferred to the Over-the-Counter market (OTC). At year-end,
1,405,855 (3,502,970) depository receipts were outstanding.
Effective yield
The effective yield indicates the actual profitability of an investment in
shares, and comprises dividends received plus the change in trading
price.
The compounded annual effective yield on an investment in
Electrolux shares was 22.9% over the past ten years, including the
distribution of Gränges in 1996 and adjusted for the 5:1 stock split in
1998. The corresponding figure for the Stockholm Stock Exchange
was 18.3%.
Dividend and dividend policy
The Board has decided to propose a dividend of SEK 7.50 (7.00) per
share at the Annual General Meeting, corresponding to 48% (47) of
income for the period, excluding items affecting comparability.
The Group’s goal is for the dividend to correspond to at least 30%
of income for the year, excluding items affecting comparability.
Trading volume of Electrolux shares
Thousands 2005 2004 2003 2002 2001
Stockholm,
A- and B-shares
(ELUXa and ELUXb) 556,568 542,304 480,415 504,394 435,335
London, B-shares
(ELXB) 117,726 122,777 128,303 259,231 398,741
ADRs (ELUX) 2,926 5,767 4,460 6,890 7,984
The Bank of New York is the depository bank for ADRs.
Average daily trading volume of Electrolux shares
on the Stockholm Stock Exchange
SEK thousands 2005 2004 2003 2002 2001
A-shares 59 34 33 72 50
B-shares 365,074 316,424 299,139 327,294 250,020
Total 365,133 316,458 299,172 327,366 250,070
De-listing from NASDAQ
The Board of Directors decided in February 2005 to delist the Group’s
ADRs from the NASDAQ Stock Market. Trading volume in the Group’s
ADRs is low and does not justify a listing. The ADR program will be
maintained, and the receipts are traded at the US Over-the-Counter
market as of March 31, 2005.
Dividend per share
The Board of Directors proposes increasing the dividend to SEK 7.50 per share for 2005.
Repurchase of shares
Electrolux did not repurchase any shares in 2005. In the course of the
year, senior managers purchased 1,785,161 B-shares from Electrolux
under the terms of the employee stock option programs. In addition,
133,000 B-shares were sold by Electrolux in order to cover the costs
of employer contributions for the stock option programs. As of
December 31, 2005, the company held a total of 15,821,239 B-shares,
equivalent to 5.1% of the total number of outstanding shares. On
February 6, 2006, Electrolux holdings of own B-shares amounted to
15,411,559, corresponding to 4.99%, after additional sales of shares
to senior managers under the stock option programs. In 2000–2004,
Electrolux repurchased shares for a total of SEK 8,450m, correspond-
ing to an average price of SEK 141 per share.
05040302010099989796
Dividend, SEK
% of earnings
per share1)
SEK
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0
1) Excluding items affecting
comparability as of 1997.
%
80
70
60
50
40
30
20
10
0
Key facts
Share listings 1): Stockholm, London
Number of shares: 308,920,308
Number of shares after repurchase: 293,099,069
High and low for B-shares, 2005: SEK 210–141
Market capitalization at year-end: SEK 63.9 billion
Beta value 2): 0.93
GICS code 3): 25201040
Ticker codes: Reuters ELUXb.ST, Bloomberg ELUXB SS
1) The trading of the Group’s ADRs was tranferred from NASDAQ to the US Over-the-
Counter market as of March 31, 2005. One ADR corresponds to two B-shares.
2) The raw beta value indicates the volatility of the trading price of a share relative to
the general market trend, measured against the Stockholm All Share Index for the
last four years.
3) MSCI’s Global Industry Classification Standard (used for securities).