Electrolux 2012 Annual Report Download - page 24

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annual report 2012 board of directors report
Distribution of funds to shareholders
Proposed dividend
The Board of Directors proposes a dividend for 2012 of SEK 6.50
(6.50) per share, for a total dividend payment of approximately
SEK 1,860m (1,860). The proposed dividend corresponds to
approximately 55% (85) of income for the period, excluding items
affecting comparability. Tuesday, April 2, 2013, is proposed as
record date for the dividend.
The Group’s goal is for the dividend to correspond to at least
30% of income for the period, excluding items affecting compa-
rability. Historically, the Electrolux dividend rate has been consid-
erably higher than 30%. Electrolux has a long tradition of high
total distribution to shareholders that includes repurchases and
redemptions of shares.
Acquisition of own shares
Electrolux has previously, on the basis of authorizations by the
AGM, acquired own shares. The purpose of the repurchase pro-
grams has been to adapt the Group’s capital structure, thus con-
tributing to increased shareholder value and to use these shares
to finance potential company acquisitions and as a hedge for the
company’s share-related incentive programs.
In accordance with the proposal by the Board of Directors,
the AGM 2012 decided to authorize the Board for the period until
the 2013 AGM to resolve on acquisitions of shares in the com-
pany and that the company may acquire as a maximum so many
Class B shares that, following each acquisition, the company
holds at a maximum 10% of all shares issued by the company.
Proposal for a renewed mandate on acquisition
of own shares
The Board of Directors makes the assessment that it continues to
be advantageous for the company to be able to adapt the com-
pany’s capital structure, thereby contributing to increased share-
holder value, and to continue to be able to use repurchased
shares on account of potential company acquisitions and the
company’s share-related incentive programs.
The Board of Directors proposes that the AGM 2013 resolves
on a renewed mandate to repurchase own shares equivalent to
the previous mandate.
As of January 31, 2013, Electrolux holds 22,785,490 Class B
shares in Electrolux, corresponding to 7.4% of the total number of
shares in the company.
03
7,500
6,000
4,500
3,000
1,500
004 05
06
07 08 09
0
10 11 12
SEKm Dividend
Repurchase of shares
Redemption of shares
Electrolux distribution to shareholders include
repurchases and redemptions of shares as well
as dividends. In 2006, the Group's outdoor oper-
ations, Husqvarna, were distributed to share-
holders. No dividend was paid for 2008, as a
consequence of the low income for the period
and the uncertainty in the market for 2009.
Number of shares
Outstanding
A shares
Outstanding
B shares
Outstanding
shares, total
Shares held
by Electrolux
Shares held
by other
shareholders
Number of shares as of January 1, 2012 8,212,725 300,707,583 308,920,308 24,255,085 284,665,223
Sale of shares — — — —1,469,595 1,469,595
Conversion of Class A shares into Class B shares — — — — —
Total number of shares as of December 31, 2012 8,212,725 300,707,583 308,920,308 22,785,490 286,134,818
As % of total number of shares 7.4 92.6
Total distribution to shareholders
22