THE SHARE CARDO IN THE STOCK MARKET 2007 Cardo has been listed on the stock exchange in Stockholm since 1995 and its shares are traded under the designation CARD. Cardo belongs to the Mid Cap segment, which covers medium-sized companies with a market value of between EUR 150 million and 1 billion. In addition, Cardo is categorized as belonging to the Industrial Machinery sector, which is often called “Industrials” or “Industrial Goods and Services” in stock exchange listings. A round lot in Cardo amounts to 100 shares. On December 31 2007, the number of shareholders amounted to 11,646 (12,762). SHARE CAPITAL On December 31 2007, Cardo’s share capital amounted to SEK 300 million, divided into 30 million shares. Each share entitles the holder to one vote and carries the right to a corresponding share in the Company’s assets and earnings. OWNERSHIP At December 31 2007, the number of registered shareholders was 11,646 as compared with 12,762 at December 31 2006. Institutional owners account for approximately 91 percent (89) of the total number of shares and votes. Non-Swedish investors hold roughly 20 percent (20). The largest portion of shares held by non-Swedish investors is in the UK, equivalent to 7.8 percent (6.5). DIVIDEND POLICY The Board of Directors’ objective is to propose dividend payments that correspond to at least 40 percent of the Group’s net earnings for the year after tax after taking into account the Group’s earnings trend, financial position and future development potential. DIVIDEND The Board of Directors proposes to distribute a dividend of SEK 9.00 (SEK 9.00) per share to the shareholders. The proposed dividend, which amounts to SEK 270 million, is equivalent to approximately 159 percent of earnings after tax for the financial year 2007. SHARE PRICE TREND Cardo’s share fell during 2007 by 22.7 percent and at the end of 2007 was quoted at SEK 201 (260). The SIX general index fell by approximately 7 percent during the year. The year high and year low during 2007 were SEK 318 and SEK 189 respectively. At December 31 2007, Cardo’s total market value amounted to SEK 6,030 million (7,800). During 2007, 13,260,637 (12,087,442) Cardo shares changed hands, which is 44 percent of the total number of shares. On average, 53,042 (48,157) shares changed hands per trading day. The rate of turnover, that is to say liquidity, was 44 percent (40). During the past five years, the price of the Cardo share has risen by an average of 1.5 percent per year and the average dividend yield has been approximately 7.2 percent. REPURCHASE OF SHARES At the 2007 Annual General Meeting of Cardo AB, a resolution was passed authorizing the Board of Directors to acquire up to so many own shares before the next Annual General Meeting that the Company’s holding at no time exceeds 10 percent of all shares in the Company. The purpose of the repurchase is to give the Board the opportunity to adjust the capital structure of the Company during the period until the next Annual General Meeting. The Board has yet to resolve to utilize the authorization and thus no repurchase has been made. The Board proposes that the Annual General Meeting on April 7 2008 renew the authorization to repurchase shares under unchanged terms. INCENTIVE PROGRAM There is currently an option program for senior management. This was issued by Cardo’s principal shareholder L E Lundbergföretagen AB on March 1 2006 and totals 295,000 call options for 13 members of senior management within the Group. The call options were issued on market terms and are equivalent to approximately 1.0 percent of the shares and votes in Cardo. Each call option carries the right to buy one share in Cardo during the period May 1 – October 1 2010 at an exercise price of SEK 259. Cardo is not taking part in the option program, nor will it be charged with any costs attributable to the program. INVESTOR RELATIONS The process of providing financial information has a high priority, since the overall aim of Cardo’s activities is to generate growth in value for Cardo’s shareholders. Cardo is constantly working to improve its financial information to shareholders, investors, employees and other interested parties. The aim of investor relations work is to increase confidence in Cardo and improve knowledge of the Group’s activities, strategy and goals with a view to providing the prerequisites for an objective valuation of Cardo. This work includes continually holding meetings with analysts, institutions, share investors and media. During 2007, more than 50 presentations and meetings were held with investors and analysts. Among other things, Cardo arranged a Capital Market Day in Stockholm on June 12. Cardo also put on four road shows in locations that included London and New York. In connection with the report on operations and the interim report for January-June, presentations were held for analysts, investors and press. Conference calls were arranged in connection with the interim reports for January-March and January-September. Maria Bergving, Senior Vice President Communications & Investor Relations, can be contacted on +46 40 35 04 25. Financial information on Cardo is available on Cardo’s website at www.cardo.com under Investors. Here it is also possible to put questions directly via info@cardo.com and to subscribe to financial information. 10 CARDO ANNUAL REPORT 2007
