Volvo 1997 Annual Report Download - page 51

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19 Marketable securities
Marketable securities consist mainly of holdings of interest-bearing
securities, distributed as shown below:
1995 1996 1997
Swedish Government 8,720 14,665 7,350
Swedish financial institutions 2,545 1,430 272
Commercial papers 316 165 —
Real estate financing institutions 1,382 1,526 1,051
Loans to associated companies 295 664 251
Shares 380 452 625
Other 2,179 2,675 1,413
Total 15,817 21,577 10,962
Marketable securities held in connection with interest arbitrage trans-
actions in 1995 amounting to 5,642 and 2,893 in 1996 were offset
against corresponding loans and as a result did not affect total assets.
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20 Cash and bank accounts
1995 1996 1997
Cash in banks 3,449 2,928 5,435
Time deposits in banks 4,040 2,156 4,206
Total 7,489 5,084 9,641
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21 Shareholders’ equity
The share capital of the Parent Company is divided into two classes
of shares: A and B. Both classes carry the same rights, except that
each Series A share carries the right to one vote and each Series B
share carries the right to one tenth of a vote.
Number of shares and par value
A (no.) B (no.) Total (no.) Par
Dec. 31, 1996 142,151,130 321,407,122 463,558,252 2,318
Redemption (3,546,185) (19,050,682) (22,596,867) (113)
New issue — + 559,500 + 559,500 + 3
Bonus issue — — — + 4411
Dec. 31, 1997 138,604,945 302,915,940 441,520,885 2,649
1 Par value per share rose from SEK 5 to SEK 6.
In accordance with the Swedish Companies Act, distribution of divi-
dends is limited to the lesser of the unrestricted equity shown in the
consolidated or Parent Company balance sheets after proposed
appropriations to restricted equity. Unrestricted equity in the Parent
Company at December 31, 1997 amounted to 28,160.
As of December 31, 1997 foundations connected to Volvo and
the Volvo employee pension foundation’s holdings in Volvo were
0.66% and 0.05% of the share capital and 1.44% and 0.10% of the
voting rights, respectively.
As shown in the consolidated balance sheet as of December 31,
1997, unrestricted equity amounted to 41,309 (40,652; 34,618). It is
estimated that 44 of this amount will be allocated to restricted reserves.
Share Restricted Unrestricted Total
Change in shareholders’ equity capital reserves equity equity
Balance, December 31 1994 2,220 14,545 26,567 43,332
Cash dividend — — (1,512) (1,512)
Net income — — 9,262 9,262
Conversion of debenture loans 98 1,510 — 1,608
Effect of equity method of accounting1— 818 (818) —
Transfer between unrestricted and restricted equity — (1,766) 1,766 —
Translation differences — (849) (995) (1,844)
Exchange differences on loans and futures contracts2— — 366 366
Other changes — 6 (18) (12)
Balance, December 31, 1995 2,318 14,264 34,618 51,200
Cash dividend — — (1,854) (1,854)
Distribution of shareholding in Swedish Match — — (4,117) (4,117)
Net income — — 12,477 12,477
Effect of equity method of accounting1— 373 (373) —
Transfer between unrestricted and restricted equity — 439 (439) —
Translation differences — (222) 87 (135)
Exchange differences on loans and futures contracts 2— — 40 40
Other changes — 52 213 265
Balance December 31, 1996 2,318 14,906 40,652 57,876
Cash dividend — — (1,993) (1,993)
Redemption of shares (113) — (5,694) (5,807)
Bonus issue of shares 441 (113) (328) —
Net income — — 10,359 10,359
New issue of shares 3 113 — 116
Effect of equity method of accounting 1— (34) 34 —
Transfer between unrestricted and restricted equity — 92 (92) —
Translation differences — 1,396 (528) 868
Exchange differences on loans and futures contracts2— — (665) (665)
Accumulated translation difference on the Renault holding 3— — (552) (552)
Other changes — 113 116 229
Balance, December 31, 1997 2,649 16,473 41,309 60,431
1 Mainly associated
companies’ contri-
butions to net
Group income,
reduced by divi-
dends received.
2 Hedge net assets
in foreign subsidi-
aries and associ-
ated companies.
3 Difference per-
tains to Renault
shares sold and, in
connection with
the sale, has
affected consoli-
dated capital
gains.