For 2007, the Board of Directors proposes to the Annual General Meeting (AGM) an ordinary dividend of SEK 1.80 (SEK 1.80 for 2006) per share, totaling SEK 8.1 billion, or 46 percent of net income attributable to shareholders of the parent company. The proposal follows a review by the Board of Directors of TeliaSonera in October 2007 of the company's capital structure and dividend policy.

The Board of Directors decided that the company shall target a solid investment grade long-term credit rating (A- to BBB+) to secure the company's strategically important financial flexibility for investments in future growth, both organically and by acquisitions. The ordinary dividend shall be at least 40 percent of net income attributable to shareholders of the parent company. In addition, excess capital shall be returned to shareholders, after the Board of Directors has taken into consideration the company's cash at hand, cash flow projections and investment plans in a medium term perspective, as well as capital market conditions.

Accordingly, the Board of Directors proposes to the AGM an extraordinary dividend for 2007 of SEK 2.20 (4.50) per share, totaling SEK 9.9 billion.

Therefore, the total dividend proposed is SEK 4.00 per share (6.30), equaling a total of SEK 17,962 million (28,290).

The Board of Directors has made an assessment according to Chapter 18 Section 4 of the Swedish Companies Act, to assess whether the proposed dividend is justified. The Board of Directors assesses that:

  • The parent company's and the Group's restricted equity, after dividend distribution in accordance with the proposal, will be sufficient in relation to the scope of the parent company's and the Group's business;
  • The proposed dividend does not jeopardize the parent company's or the Group's ability to make the investments that are considered necessary; and that
  • The proposal is consistent with the established cash flow forecast under which the parent company and the Group are expected to manage unexpected events and temporary variations in cash flows to a reasonable extent.

The full statement by the Board of Directors on the same will be included in the Annual General Meeting documents.

See also "Proposed Appropriation of Earnings."