Volvo 1997 Annual Report Download - page 50

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Pharm acia & Upjohn, Inc./ Pharm acia AB
Following the conversion of debentures in 1995, Volvo’s holding
amounted to 27.3% of the share capital and 27.8% of the voting
rights. In October 1995 the Pharmacia shares were exchanged for
shares in the newly formed Pharmacia & Upjohn, Inc. As of December
31, 1995, Volvo held 13.8% of the share capital and voting rights.
In July 1996 Volvo sold 50,006,534 Pharmacia & Upjohn shares.
The capital gain amounted to 7,766 and Volvo’s holding thereafter
amounted to 3.9% of the share capital and voting rights in the com-
pany.
Investm ent AB Bure
In 1996 Volvo sold its entire holding, 17.7%, yielding a gain of 394.
Spira AB
The entire holding, 9.5%, was sold in 1996, with a resulting capital
gain of 10.
Pleiad Real Estate AB
At year-end 1994, Volvo held 25% of the share capital and 40% of
the voting rights in Pleiad Real Estate AB. During 1995 Volvo repur-
chased the properties owned by Pleiad that are used in Volvo’s op-
erations in Göteborg.
Partena AB
The holding, 44%, was divested in 1995, resulting in a gain of 707.
AutoNova AB
During 1995 Volvo Car Corporation and TWR Group Ltd., Great
Britain, formed a jointly owned company, AutoNova AB, to manu-
facture so-called niche cars. Volvo Car Corporation owns 49% of the
shares in AutoNova. Operations are located in Volvo Cars’ plant in
Uddevalla.
NordicTel Holdings AB
The entire holding, 8%, was sold in 1995, yielding a gain of 176.
Cultor Ab
Volvo’s holding in Cultor Ab(10.4% of the share capital and 1.5% of
the voting rights) was divested in 1995, resulting in a gain of 166.
UST Inc. (form erly US Tobacco Inc.)
In 1995 the shares (0.8%) in UST Inc. was divested. The capital gain
amounted to 75.
Protorp Förvaltnings AB (form erly Protorp Intressenter AB)
In 1994 and 1996 the holding in Protorp was written down by 488
and 2, respectively, due to dividends paid. In addition, a write-down of
247 was effected in 1996 in connection with repayment of share
capital. Volvo’s holding in Protorp Förvaltnings AB amounts to 43.0%
of the share capital and 33.3% of the voting rights. The holding is
recorded at cost.
Changes in the Volvo Group’s holdings of shares and
participations: 1996 1997
Balance sheet, December 31, preceding year 18,087 12,412
Acquisitions and divestments, net (6,006) (8,212)
New issue of shares 3 128
Share of income of associated companies 636 222
Write-downs (248) (11)
Translation differences (27) 32
Other (33) 12
Balance sheet, December 31, current year 12,412 4,583
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14 Long-term sales-financing receivables
1995 1996 1997
Installment credits 642 2,084 7,572
Financial leasing 2,759 3,571 5,606
Other receivables 760 176 789
Total 4,161 5,831 13,967
The increase in 1997 is due to that the sales-financing companies
in North America and Great Britain, in which Volvo was previously
a part-owner, are now under own management as wholly owned
subsidiaries.
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15 Other long-term receivables
1995 1996 1997
Loans 2,766 3,157 2,269
Other receivables 3,977 4,268 3,708
Total 6,743 7,425 5,977
Other long-term receivables include noninterest-bearing debenture
loans to associated companies at nominal value of 2,732 (2,759;
2,905).
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16 Inventories
1995 1996 1997
Finished products 14,159 14,477 17,785
Production materials, etc. 9,770 8,671 10,208
Total 23,929 23,148 27,993
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17 Short-term sales-financing receivables
1995 1996 1997
Installment credits 1,387 1,805 4,173
Financial leasing 2,208 2,946 3,794
Dealer financing 2,169 4,178 8,775
Other receivables 411 792 1,595
Total 6,175 9,721 18,337
The increase in 1997 is due to that the sales-financing companies
in North America and Great Britain, in which Volvo was previously
a part-owner, are now under own management as wholly owned
subsidiaries.
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18 Other receivables
1995 1996 1997
Accounts receivable 13,696 12,933 13,704
Prepaid expenses and
accrued income 4,293 3,219 2,867
Other receivables 4,742 6,106 7,686
Total, after deduction of
reserves of 710 for doubtful
receivables (1,037; 1,034) 22,731 22,258 24,257
A small portion of the receivables extends over a period of more than
one year but may be used as security for bank loans, as required.
Notes to Consolidated Financial Statements