Annual Report 2007 - Introduction The TeliaSonera Share
The TeliaSonera share rose eight percent during 2007, while the Stockholm Stock Exchange's All-Share Index fell six percent. The Board of Directors proposes to the Annual General Meeting an ordinary dividend of SEK 1.80 per share (1.80).
During 2007 an average of 22.2 million TeliaSonera shares were traded per trading day, corresponding to a value of SEK 1,230 million per day. TeliaSonera's share price rose during the year to SEK 60.50, an increase of eight percent. The total yield (share price development and dividend) reached 19 percent during the year.
From early 2003, just after the merger of Telia and Sonera, the price of the TeliaSonera share has increased from around SEK 25, but on average underperformed the Stockholm Stock Exchange. Compared to the Dow Jones STOXX Telecommunications Index, which includes the large telecom operators in Europe, the TeliaSonera share has developed largely in line with the index.
TeliaSonera's market capitalization totaled at year-end SEK 272 billion, which was seven percent of the total market value on the Stockholm Stock Exchange. In terms of market value, TeliaSonera was the third largest company on the Stockholm Stock Exchange at year-end and Europe's seventh largest telecommunications operator.
Ordinary dividend and capital distribution to shareholders
For 2007, the Board of Directors proposes to the Annual General Meeting (AGM) an ordinary dividend of SEK 1.80 (1.80) 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.
The Board of Directors proposes that the final day for trading in shares entitling shareholders to ordinary and extraordinary dividends be set for March 31, 2008, and that the first day of trading in shares excluding rights to ordinary and extraordinary dividends shall be set for April 1, 2008. The recommended record date at VPC for the right to receive ordinary and extraordinary dividends will be April 3, 2008. If the AGM votes to approve the Board's proposals, ordinary and extraordinary dividends are expected to be distributed by VPC on April 8, 2008.
Number of shareholders
The number of shareholders decreased during the year from 691,106 to 655,247. Ownership by the Swedish government as a percentage of outstanding shares decreased from 45.3 percent to 37.3 percent while ownership by the Finnish government remained unchanged at 13.7 percent. Holdings outside of Sweden and Finland increased from 16.7 percent to 22.4 percent. At year-end, Swedish institutional investors owned 18.2 percent (15.9) of the outstanding shares and Finnish institutional investors owned 3.0 percent (3.0). Swedish private investors owned 3.0 percent (3.2) and Finnish private investors 2.4 percent (2.2) of the outstanding shares.
The TeliaSonera ShareClick to view table| Listing: Stockholm Stock Exchange and Helsinki Stock Exchange | |
|---|---|
| Stockholm Stock Exchange | |
| Ticker symbol | TLSN |
| Highest price 2007 | SEK 68.00 |
| Lowest price 2007 | SEK 47.70 |
| At close 2007 | SEK 60.50 |
| Shares traded 2007, volume | 5,548 million |
| Shares traded 2007, value | SEK 307 billion |
| Market capitalization Dec 31, 2007 | SEK 272 billion |
| Helsinki Stock Exchange | |
| Ticker symbol | TLS1V |
| Shares traded 2007, volume | 632 million |
| Shares traded 2007, value | EUR 3.8 billion |
The Largest Shareholders, as of December 31, 2007Click to view table| Shareholders | Number of outstanding shares 1) | Percent of outstanding shares/votes |
|---|---|---|
| Swedish State | 1,674,310,553 | 37.3 |
| Finnish State | 616,128,221 | 13.7 |
| Swedbank Robur funds | 104,535,802 | 2.3 |
| SEB funds | 72,220,419 | 1.6 |
| Capital Group funds | 71,870,500 | 1.6 |
| Cevian Capital LP | 71,698,500 | 1.6 |
| SHB/SPP funds | 63,160,504 | 1.4 |
| Nordea funds | 55,986,514 | 1.2 |
| Skandia Life Insurance | 42,424,857 | 0.9 |
| First Swedish National Pension Fund | 38,863,262 | 0.9 |
| Shareholders outside Sweden and Finland | 859,863,127 | 19.2 |
| Total other shareholders | 819,394,954 | 18.3 |
| Total shares outstanding | 4,490,457,213 | 100.0 |
Source: SIS Ägarservice AB
1) Each TeliaSonera share represents one vote at the General Meeting of Shareholders and no shareholder has any special voting rights,
The Largest Countries by Number of Shares, as of December 31, 2007Click to view table| Country | Number of outstanding shares | Percent of outstanding shares/votes |
|---|---|---|
| Sweden | 2,627,907,033 | 58.5 |
| Finland | 859,118,053 | 19.1 |
| United Kingdom | 329,409,200 | 7.3 |
| United States | 314,157,856 | 7.0 |
| Luxemburg | 81,085,286 | 1.8 |
| Jersey | 50,072,391 | 1.1 |
| Belgium | 33,400,830 | 0.7 |
| Switzerland | 30,377,628 | 0.7 |
| France | 26,894,841 | 0.6 |
| Japan | 19,741,317 | 0.4 |
| Total others | 118,292,778 | 2.8 |
| Total shares outstanding | 4,490,457,213 | 100.0 |
Source: Swedish Central Security Depository (VPC)
Changes in Issued Share CapitalClick to view table| Issued share capital, SEK thousand | Number of shares | Quotient value, SEK/share | |
|---|---|---|---|
| Share capital, Dec 31, 2001 | 9,603,840 | 3,001,200,000 | 3.20 |
| - New share issue, Dec 3, 2002 | 5,134,582 | 1,604,556,725 | 3.20 |
| Share capital, Dec 31, 2002 | 14,738,422 | 4,605,756,725 | 3.20 |
| - New share issue, Feb 10, 2003 | 222,321 | 69,475,344 | 3.20 |
| Share capital, Dec 31, 2003 | 14,960,743 | 4,675,232,069 | 3.20 |
| Share capital, Dec 31, 2004 | 14,960,743 | 4,675,232,069 | 3.20 |
| Share capital, Dec 31, 2005 | 14,960,743 | 4,675,232,069 | 3.20 |
| - Cancellation of repurchased shares during 2005, Sept 6, 2006 | -591,280 | -184,774,856 | 3.20 |
| Share capital, Dec 31, 2006 | 14,369,463 | 4,490,457,213 | 3.20 |
| Share capital, Dec 31, 2007 | 14,369,463 | 4,490,457,213 | 3.20 |
Termination of U.S. registration
TeliaSonera in June 2007 terminated the registration of its shares under the U.S. Securities Exchange Act of 1934. TeliaSonera had terminated its Nasdaq listing and its U.S. ADR program in 2004 but remained subject to U.S. securities legislation, including the reporting obligations under the Securities and Exchange Act and the Sarbanes-Oxley Act. New U.S. rules entered into force in June 2007 which made it possible for TeliaSonera to terminate its reporting and certain other obligations under the U.S. securities laws.