At its meeting on 15 February, Södra's Board of Directors decided on its proposal for appropriation of profit, which will be submitted to the Annual General Meeting on 17 May 2011.
The proposal is that SEK 851 million be transferred to the members in the form of:
Retroactive payment on normal softwood timber, SEK 74 per cubic metre sub, total SEK 244.9 million
Retroactive payment on other assortments, 12 per cent, total SEK 234.3 million
Dividend on capital contributed, 12 per cent, total SEK 282.4 million
Bonus issue to members' capital account, SEK 89.4 million. The bonus issue represents 10 per cent of available paid-up capital as of 31 December 2010.
In addition, 7.7 per cent on subordinated debentures, Series D, total SEK 10 million.
Chairman's comments:
- We can note that 2010 was a strong year for Södra and our members. The Board has proposed an appropriation of profits that involves a transfer to the members worth over SEK 850 million," said Chairman of the Board, Christer Segerstéen.
- Last year's high prices for wood and the appropriation we are proposing makes 2010 a year in which the profitability of our members' forest properties was historically good.
- In recent years, we have seen major and rapid changes in the markets for both our products and timber raw material. The large price fluctuations for timber made us decide to deviate from the normal system of retroactive payments. We are proposing that retroactive payment on normal softwood timber is SEK 74 per m3sub instead of 12 per cent of the gross delivery value. In this way, the retroactive payment is the same for each cubic metre delivered, even if the prices have varied during the year.
- The appropriation proposal corresponds to approximately 40 percent of the profit, i.e. somewhat more than the long-term target of one-third of the profit. Apart from the dividend on wood and capital contributed, we are proposing a bonus issue so our members can share in the value added through Södra.
- The Södra model will reward the members who choose to make long-term deliveries of all their wood to Södra, and who thereby fully engage in our partnership.