It is the Group’s policy to focus on the cost of capital for current and future activities. Each business area must generate a return that, as a minimum equals the Group’s cost of capital. To the widest possible extent, capital is allocated to those areas that achieve the highest returns relative to their risk profile.
If developments do not enable the Group to allocate earnings retained after dividends to profitable growth activities, it will use the excess capital to buy back shares.
Last updated on January 31, 2008