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 Nordic 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 market 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, stipulating 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
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 conversion of 110,048,945 A shares to B shares. In conjunction 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 Violet Partners, SHB and Norges Bank Investment Management, when measured as share of votes.
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 professional 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 possible to access financial reports, search for information 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 Directors, Group Management and other areas that are regulated in the “Swedish Code of Corporate Governance.” The website also offers the possibility to subscribe to information from Volvo.