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The share
The Swedish Match share is listed on the Stockholm Stock Exchange. Total share capital at the end of the year amounted to 390 MSEK, distributed among 280 million shares with a ratio value of 1.39 SEK each. Each share carries one vote. A round lot was 200 shares during 2006.
Turnover
Total turnover in 2006 amounted to approximately 532 million Swedish Match shares on the Stockholm Stock Exchange, with a daily average turnover of approximately 2.1 million shares. The turnover rate, or the liquidity of the share on the Stockholm Stock Exchange, was 168 percent during the year, compared with the average of 147 percent for the Stockholm Stock Exchange.
Price trend
The Company’s market capitalization at year-end 2006 amounted to 35.1 billion SEK. The share price increased by 36.9 percent during the year, while the OMXS 30 Index increased by 19.5 percent. The lowest price paid during the year was 92.75 SEK on January 2, and the highest price paid was 129.25 SEK on December 18.
Ownership structure
At year-end, foreign ownership interests corresponded to 80.8 percent of total share capital1), an increase of 0.3 percentage points compared with 2005. Swedish ownership interests, totalling 19.1 percent, were distributed among institutions, with 4.7 percent of the share capital, mutual funds, with 5.3 percent, and private individuals, with 9.1 percent. The 10 largest shareholders accounted for 21.1 percent of the share capital1)2).
Dividend
Swedish Match’s dividend policy is that the dividend should essentially follow the trend of the group’s net income. However, when proposing a dividend, the size of planned repurchases of shares is also taken into account. It is estimated that the dividend amount will be between 30–50 percent of net income for the year, but may deviate from this interval if the net income includes income or expenses of a one time character.
The Board of Directors intends to propose to the Annual General Meeting a dividend for 2006 of 2.50 SEK (2.10) per share, for a total of 686 MSEK (627), based on the number of shares outstanding at year-end. The dividend corresponds to 29.4 percent (35.4) of net profit for the year.
Repurchase of shares
A repurchase of shares is in principle a reverse new share issue, and provides the opportunity to continuously work to optimize the capital structure in the balance sheet. Against the background of Swedish Match’s stable and strong cash flow, the Board takes a favorable view of share buybacks. The size and scope of the share buybacks, depend on Swedish Match’s financial position, net income, anticipated future profitability, cash flow, investments and expansion plans. Other factors that influence buybacks are the share price, the Group’s interest and tax expenses and the earnings available for distribution.
1) Excluding shares held in treasury by Swedish Match,
  which corresponds to 2 percent of the total number of
  shares.
2) Source: SIS Ägarservice, according to VPC.
T H E S H A R E
Transfer of capital to Swedish Match shareholders        
MSEK 2002 2003 2004 2005 2006 Total
Dividends 535 558 612 627 686* 3,018
Buybacks and sale of own shares, net 552 904 576 1,411 3,580 7,023
Total 1,087 1,462 1,188 2,038 4,266 10,041
* Dividend proposed for fiscal year 2006.            
Share distribution at December 31, 2006
Size of holding No. of owners % No. of shares Share of capital, %
1 – 1,000 52,677 90.4 11,725,664 4.3
1,001 – 5,000 4,556 7.8 9,076,358 3.3
5,001 – 20,000 594 1.0 5,632,155 2.1
20,001 – 50,000 141 0.2 4,520,615 1.6
50,001 – 100,000 94 0.2 6,642,837 2.4
100,001 – 1,000,000 176 0.3 57,713,069 21.0
1,000,001 – 49 < 0.1 179,057,283 65.3
Total* 58,287 100.0 274,367,981 100.0
* Excluding shares held by Swedish Match.
Source: SIS Ägarservice AB, based on VPC.
Share data1)          
    2002 2003 2004 2005 2006
Earnings per share, basic, SEK 4.10 4.68 6.18 5.61 8.12
Earnings per share, diluted, SEK 4.07 4.66 6.15 5.59 8.09
Dividend, SEK 1.60 1.70 1.90 2.10 2.502)
Market price at year-end, SEK 68.50 73.50 77.00 93.50 128.00
Shareholders’ equity per share, SEK 11.72 12.21 14.24 16.60 8.34
P/E ratio after tax 16.7 15.7 12.5 16.7 15.8
EBIT multiple 11.3 12.3 11.1 11.2 13.0
Price/equity 5.8 6.0 5.4 5.6 15.4
Direct return, % 2.3 2.3 2.5 2.2 2.0
Total return, % 25.5 10.1 7.0 24.2 39.5
Average number of shares, basic 348,295,163 332,679,210 325,708,645 315,128,554 287,062,345
Average number of shares, diluted 350,894,438 334,162,492 327,013,542 316,226,392 288,161,247
Number of shareholders 100,260 98,425 94,860 87,840 58,287
Where appropriate, figures have been adjusted for bonus issue element at redemption.
1) Data as of 2004 are based on reporting in accordance with IFRS. Data for the years prior to 2004 are based on the then applicable Swedish GAAP.
2) Board proposal.
Largest shareholders at December 31, 2006 1) 2)  
Source: SIS Ägarservice, according to VPC.      
Owner No. of shares Percent  
Wellington Management Co LLP 30,768,094 11.2  
Swedbank Robur Funds 4,039,166 1.5  
SEB Funds 3,992,735 1.5  
SHB/SPP Funds 3,615,797 1.3  
DWS-Scudder Funds 3,147,565 1.1  
First AP Fund 3,021,037 1.1  
Third AP Fund 2,679,898 1.0  
Pensioenfonds PGGM 2,454,212 0.9  
Second AP Fund 2,158,188 0.8  
Azimut Gestione Funds 2,120,000 0.8  
Total of 10 largest shareholders 57,996,692 21.1  
Others 216,371,289 78.9  
Total 274,367,981 100.0  
1) Certain shareholders may, through custodial accounts, have a larger holding than is apparent from the shareholders’ register.
2) Registered direct ownership and ownership through trustees. In addition, the Company owns 5,632,019 shares acquired through buybacks.
T H E S H A R E