The SCA share
SCA shares are quoted and traded on Nasdaq Stockholm, and as American Depository Receipts (ADR level 1) in the US through Deutsche Bank. The final 2016 closing price on Nasdaq Stockholm for SCA’s B share was SEK 257.30 (246.50). SCA’s market capitalization was SEK 181bn (173) at December 31, 2016. In 2016, the price of SCA’s B share rose 4%. During the same period, the OMX Stockholm 30 Index rose 5%. The highest closing price for SCA’s B share during the year was SEK 274.70, which was noted on July 11. The lowest price was SEK 225.10 on January 8. The proposed dividend is SEK 6.00 (5.75) per share. For more information, refer to the section “Dividend and dividend policy” below.
Index
On Nasdaq Stockholm, SCA is included in the OMX Stockholm 30 Index, OMX Nordic 40 and in the Personal & Household Goods sector within Consumer Goods. In addition to the indexes directly linked to Nasdaq Stockholm, SCA is included in other indexes, such as the FTSE Eurofirst Index and FTSE Global Equity Index. Within MSCI, SCA is included in Household Products within Consumer Staples. SCA is also included in a number of sustainability indexes, including the FTSE4Good index series, OMX GES Sustainability Sweden PI and OMX GES Sustainability Nordic PI.
Liquidity
In 2016, the volume of SCA shares traded on Nasdaq Stockholm was about 415 million (540), corresponding to a value of approximately SEK 105bn (119). Average daily trading for SCA on Nasdaq Stockholm amounted to approximately 1.6 million shares, corresponding to a value of approximately SEK 415m (474). During the year, trading on BATS Chi-X amounted to approximately 227 million SCA shares, trading on Turquoise to about 87 million SCA shares and trading on other marketplaces to approximately 17 million SCA shares.
Ownership
Some 42% (36) of the share capital is owned by investors registered in Sweden and 58% (64) by foreign investors. The US and the UK account for the highest percentage of shareholders registered outside Sweden. Of SCA’s shareholders, at least 13% perform sustainability assessments.
Dividend and dividend policy
Dividend per share
SCA aims to provide long-term stable and rising dividends to its shareholders. When cash flow from current operations exceeds what the company can invest in profitable expansion over the long-term – and under the condition that the capital structure target is met – the surplus shall be distributed to the shareholders. The Board of Directors proposes an increase in the dividend by 4.3% to SEK 6.00 (5.75) per share for the 2016 fiscal year. Accordingly, dividend growth in the most recent five-year period amounted to 7.4%. The 2016 dividend represents a dividend yield of 2.3%, based on SCA’s share price at the end of the year.
Incentive program
SCA’s incentive program is designed to contribute to the creation of shareholder value. The program for senior executives consists of two components, one of which is tied to the total shareholder return on the SCA share compared with an index consisting of SCA’s largest global competitors. For more information about the structure of the program, see Note C3 (Remuneration of senior executives).