AB Volvo's Board of Directors Withdraws Proposal of Extra Dividend, Maintains Ordinary Dividend

GÖTEBORG, Sweden, March 19, 2020 /PRNewswire/ -- In light of the general uncertainty and the measures taken to slow down the spread of Covid19 and their effects on the Volvo Group, the Board of Directors of AB Volvo has decided to maintain the proposal to the Annual General Meeting on April 8, 2020 of an ordinary dividend of SEK 5.50 per share, but to withdraw the proposal of an extra dividend of SEK 7.50 per share.

The Volvo Group has a strong financial position and good liquidity, but since the Board of Directors submitted its original dividend proposal the business environment has changed significantly. Many of the Group's operations are, or will be, temporarily closed and it is currently not possible to assess the duration. In order to ensure that the Volvo Group can act from a position of strength in the current turbulent environment, the Board considers that it is prudent to maintain the proposal for the ordinary dividend, but withdraw the proposal for an extra dividend.

This is information that AB Volvo (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8.20 p.m. CET on March 19, 2020.

For more information, please visit volvogroup.com/press

The Volvo Group drives prosperity through transport solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers' uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs 104.000 people and serves customers in more than 190 markets. In 2019, net sales amounted to about SEK 432 billion (EUR 40.5 billion). Volvo shares are listed on Nasdaq Stockholm.
 

For further information, please contact:
Claes Eliasson, Volvo Group Media Relations, +46-76-553-72-29

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SOURCE AB Volvo