3. Equity and dividends
Norwegian Code of Practise:
The company should have an equity capital at a level appropriate to its objectives, strategy and risk profile.
The board of directors should establish a clear and predictable dividend policy as the basis for the proposals on dividend payments that it makes to the general meeting. The dividend policy should be disclosed.
Mandates granted to the board of directors to increase the company's share capital should be restricted to defined purposes and should be limited in time to no later than the date of the next annual general meeting. This should also apply to mandates granted to the board for the company to purchase its own shares.
Equity
At 31 December 2008, consolidated equity came to MNOK 1 894, which was equivalent to 15 per cent of total assets. The Board of Directors considers this to be satisfactory. The Company's need for financial strength is considered at any given time in the light of its objectives, strategy and risk profile.
Dividend policy
The Group will strive to achieve an annual dividend over time of approx. 30 per cent of the Group's annual profit from ordinary operations, after tax.
The General Meeting stipulates the annual dividend, based on the Board's recommendation. The recommendation is the ceiling for what the General Meeting can adopt.
For 2008, the Group paid a dividend of NOK 5.50 per share.
Capital increases
The Board is not authorised to undertake share issues.
Purchase of treasury shares
The General Meeting can mandate the Board to purchase up to 10 per cent of its own shares. On 7 Mayl 2009, the ordinary Annual General Meeting authorised the Board to buy treasury shares for a nominal value of up to NOK 7 500 000. This is equivalent to 5 per cent of the share capital. The mandate can be used more than once and applies for 12 months from the date of the General Meeting. The Board's acquisition of shares under this mandate can be exercised only between a minimum price of NOK 25 per share and a maximum price of NOK 187.50 per share. At 31 December 2008, the Group owned a total of 17 594 shares, or 0.06 per cent of the total number of KONGSBERG shares.
The shares were purchased for the employee share scheme, but can also be sold on the market. Offered to all employees at a discount (-20 per cent), the shares are subject to a one-year lock-in period from the date of acquisition.