Dividend

The Company’s unrestricted reserves can be distributed to the shareholders in the form of stock dividends and buybacks.

When determining the dividend paid to shareholders, the Board of Directors takes into account the Company’s future growth opportunities, investment needs and financial situation. The aim is for dividends and buybacks of own shares to correspond to at least one-third of the Group’s after-tax profit over the course of a business cycle.

The General Meeting of 2007 resolved in accordance with the Board of Directors’ proposal, on a dividend of SEK 4.50 per share. April 18, 2008 was determined as the dividend record date. The average annual rate of dividend growth over the past ten years is 9,8%.

Buybacks

During 2007, 145,000 Haldex shares were repurchased at an average price of SEK 165 per share. The number of treasury shares at year-end totaled 376,470. Holdings of treasury shares correspond to 1.7% of the total number of shares.

Acquisition of the company’s own shares shall be made on the Stockholm Stock Exchange and is limited insofar as the company’s total holdings of own shares must not exceed 10 per cent of the total number of shares in the company. Transfer of own shares may be made for the purpose of financing possible future corporate acquisitions either on the Stockholm Stock Exchange or in other manner, up to the number of own shares held by the company at the time of transfer, and may be made with deviation from the preferential rights of the shareholders. Transfer of own shares for the purpose of covering certain costs related to the incentive program LTI 2007 may be made on the Stockholm Stock Exchange and shall not exceed 60,000 shares.

Transfer of own shares shall be made at a price determined in close connection to the shares’ quoted price at the time of the Board of Directors’ resolution to transfer the shares.