The SKF share in brief
|The SKF share in brief|
|Share capital, MSEK||1,138|
|Voting right per A share||One vote|
|Voting right per B share||One tenth of a vote|
|Dividend for 2015, SEK per share||5.50|
|Ex dividend date||27 March 2015|
|(For dividend history, please visit SKF's shares/Dividend)|
SKF A and B shares are listed since 1914 at Nasdaq, Stockholm, Large cap.
Trading hours Nasdaq Stockholm
In the USA, the SKF shares (ADR, American Depository Receipts) are traded on the OTC, www.pinksheets.com. Trading symbol SKFRY.
SKF's shares are included in the following indexes at Nasdaq Stockholm:
SKF is also included in following sustainability indexes
Industrial Machinery (GICS, ID 20106020)
Overall financial objective
SKF’s overall financial objective is to create value for its shareholders. Over time, the return on shareholders’ investment should exceed the risk-free interest rate by around five percentage points. This is the basis for SKF’s financial objectives and SKF’s financial performance management model.
Financial performance management model
SKF’s financial performance management model is a simplified, economic value-added model, called Total Value Added (TVA), promoting a greater operating profit, capital efficiency and profitable growth.
The TVA profit is the operating profit, less the pre-tax cost of capital in the country where business is conducted. The pre-tax cost of capital is based on a weighted cost of capital with a risk premium of 5% above the risk-free interest rate for the equity part and on actual borrowing cost. The TVA profit performance for the Group correlates well with the share price trend over a longer period of time. Variable salary schemes are primarily based on this model.
Financial position and dividend policy
The capital structure target is a gearing of around 50%, corresponding to an equity/assets ratio of around 35% or a net debt/ equity ratio of around 80%. This underpins the Group’s financial flexibility and its ability to continue investing in its business, while maintaining a strong credit rating. On 31 December 2015, the gearing was 56.7% (60.5), the equity/assets ratio 33.0% (29.9) and the net debt/equity ratio 99.9% (126.6).
SKF’s dividend and distribution policy is based on the principle that the total dividend should be adapted to the trend for earnings and cash flow, while taking into account the Group’s development potential and financial position. The Board of Directors’ view is that the ordinary dividend should amount to around one half of SKF’s average net profit calculated over a business cycle.
If the financial position of the SKF Group exceeds the targets stated above, an additional distribution to the ordinary dividend could be made in the form of a higher dividend, a redemption scheme or a repurchase of the company’s own shares. On the other hand, in periods of more uncertainty a lower dividend ratio could be appropriate.
The shareholders' register is maintained by Euroclear Sweden AB. All SKF shareholder mailings, such as dividend distributions, year-end tax reporting forms, or annual report, is based upon the register held by the Securities Register Centre. Old or incomplete addresses can slow down your receipt of mail or that you miss out on important materials related to your share account. It is therefore very important that you inform Euroclear Sweden AB about any change of address.
Euroclear Sweden AB
Box 7822, SE-103 97 Stockholm, Sweden
Tel: +46-08-402 90 00