ÅF’s class B shares have been quoted on the Stockholm Stock Exchange since January 1986. Prior to this, Ångpanneföreningen traded as a co-operative association from 1895 until 1980, and as a joint-stock company from 1981. ÅF’s B shares are traded on the Nordic Exchange’s Mid Cap list under the ‘Angp B’ ticker symbol. At the end of 2007 the combined market value of the company’s shares was SEK 2,862 million (2006: SEK 2,376 million).
Share movements and turnover
The quotient value of the share is SEK 10. A trading lot comprises 100 shares. Ångpanneföreningen’s B shares traded at SEK 169 at the end of 2007, compared with SEK 146 at the beginning of the year, an increase in value of 16.5 percent. During the same period the Stockholm (OMXS-PI) all-share index fell by 6.0 percent. During the year a total of 9,230,962 shares were traded (2006: 10,975,396) for an aggregate value of SEK 1,585 million (SEK 1,622 million). Turnover per trading day averaged SEK 6.34 million (SEK 6.46 million). The share was traded on 100 percent (100 percent) of trading days.
Liquidity guarantee
In order to guarantee the liquidity of ÅF shares, HQ Bank acts as a liquidity provider under an agreement from 2006 that, in essence, means that HQ Bank undertakes to quote bid and offer prices for ÅF shares.
The spread, which must not exceed 2 percent calculated on the offer price, averaged 0.89 percent in 2007 (0.78 percent in 2006).
The costs relating to the liquidity guarantee are borne by Ångpanneföreningen’s Foundation for Research and Development.
Dividend policy and dividend
The board has adopted a dividend policy according to which the dividend should correspond to approximately 50 percent of the consolidated profit after tax excluding capital gains. For the company’s operations during 2007 the board proposes a dividend of SEK 6.50 per share (2006: SEK 3.00 per share).
Shareholding and convertible debentures among employees
The profit-sharing scheme outlined on page 17 allows employees to share in the increase in the net worth of the company by creating funds using ÅF shares (and others) as investment capital. At the turn of the year 2007/2008 approximately 10 percent of the shares in the company were owned by ÅF employees.
A convertible debenture programme for SEK 54 million was initiated in 2005 to run until 30 June 2008. There were two opportunities in 2007 to utilise the conversion option at a conversion rate of SEK 81.36 per share. A total of 566,307 shares from a maximum of 660,644 have been issued within the framework permitted for this convertible instrument 2005/2008. If the conversion option is fully utilised, the additional shares will represent a dilution of 3.8 percent of capital and 2.7 percent of the votes.
Investor relations
ÅF’s positive development has been reflected in the interest shown in the ÅF share. The company adopts a long-term approach to its communications with the capital market.
This included a Capital Market Day on 20 September 2007, which this year focused on the Process Division. ÅF President/CEO Jonas Wiström outlined the Group’s current situation and sketched future scenarios. The guest speaker for the day was the athletics coach Arne Bergvall, and the audience comprised around 40 analysts, institutional shareholders, asset managers and representatives for the media.
To meet the interest in ÅF shown by the international capital market, ÅF’s CEO undertook a "road-show" to London, Paris and Amsterdam.
Analysts who regularly monitor the progress of ÅF
Stefan Wård, Handelsbanken Capital Markets
Johan Dahl, Swedbank Markets
David Jacobsson, Öhman Fondkommission