Volvo 1997 Annual Report Download - page 61

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As of July 1, 1997 part of the Parent Company’s former operations
were transferred to the newly formed wholly owned subsidiary, Volvo
Teknisk Utveckling AB. Parent Company operations now comprise
only the Group’s head office.
Following the offer to the company’s shareholders to redeem Volvo
shares, a total of 22,596,867 shares were tendered for redemption
and the sum of 5,807 was paid out. New shares were then issued to
the Volvo Profit-Sharing Foundation and a bonus issue was effected
through a write-up of the par value of Volvo’s shares from SEK 5 each
to SEK 6 each. The share capital was thereby increased in a net
amount of 331. The redemption procedure is described on page 13.
A dividend of 22,000 was received from Volvo Personvagnar
Holding AB, following which the holding in the company was written
down by 8,026.
The remaining shareholdings in Renault SA, with a book value of
6,080, were sold, resulting in a capital loss of 146.
The book value of shares and participations in Group companies
amounted to 39,868 (46,893; 42,110), of which 39,866 (46,891;
42,108) pertained to shares in wholly owned subsidiaries. The cor-
responding shareholders’ equity in the subsidiaries (including equity
in untaxed reserves but excluding minority interests) amounted to
61,800 (75,380; 55,913). Shares and participations in non-Group
companies included 894 (897; 897) in associated companies that
are reported in accordance with the equity method in the consolida-
ted accounts. The portion of shareholders’ equity in associated com-
panies accruing to AB Volvo totaled 1,057 (834; 757). Shareholdings
and participations in non-Group companies included listed shares of
Bilia AB (formerly AB Catena) with a book value of 641. The market
value of the holding at year-end was 1,277.
Net debt amounted to 5,336 (15,838; 10,984).
AB Volvo’s risk capital (shareholders’ equity plus untaxed reserves)
amounted to 38,531, equal to 74% of total assets. The comparable
figure at year-end 1996 was 51%.
Incom e statements 1995 1996 1997
Net sales 488 559 520
Cost of sales (488) (559) (520)
Gross income ———
Administrative expenses Note 1 (356) (340) (426)
Other operating income 19 11 47
Other operating expenses Note 2 (52) (41) (24)
Operating income before
nonrecurring items (389) (370) (403)
Nonrecurring items Note 3 (1,817) — —
Operating income (2,206) (370) (403)
Income from investments
in Group companies Note 4 1,734 685 15,360
Income from investments
in associated companies Note 5 104 23 39
Income from other
shares and participations Note 6 218 156 (137)
Interest income and
similar credits Note 7 532 233 218
Interest expenses and
similar charges Note 7 (1,250) (1,048) (788)
Other financial income
and expenses Note 8 443 239 (594)
Income after
financial items (425) (82) 13,695
Allocations Note 9 3,601 978 4,354
Taxes Note 10 —2—
Net income 3,176 898 18,049
Board of Directors’ Report Dec 31, Dec 31, Dec 31,
Balance sheets 1995 1996 1997
Assets
Non-current assets
Property, plant
and equipment Note 11 82 97 30
Total tangible assets 82 97 30
Shares and participations
in Group companies Note 12 42,110 46,893 39,868
Long-term receivables
with Group companies 158 — 628
Other shares
and participations Note 12 7,317 7,025 1,051
Other long-term receivables 105 105 100
Total financial non-current assets 49,690 54,023 41,647
Total non-current assets 49,772 54,120 41,677
Current assets
Short-term receivables
from Group companies 3,484 1,971 5,309
Other short-term
receivables Note 13 122 64 57
Short term investments
in Group companies 1,584 — 5,178
Cash and bank accounts 6 6 5
Total current assets 5,196 2,041 10,549
Total assets 54,968 56,161 52,226
Shareholders’ equity and liabilities
Shareholders’ equity Note 14
Share capital (441,520,885
shares, par value SEK 6) 2,318 2,318 2,649
Legal reserve 7,241 7,241 7,241
Total restricted equity 9,559 9,559 9,890
Retained earnings 23,906 17,228 10,111
Net income 3,176 898 18,049
Total unrestricted equity 27,082 18,126 28,160
Total shareholders’ equity 36,641 27,685 38,050
Untaxed reserves Note 15 739 758 481
Provisions
Provisions for pensions Note 16 487 280 296
Other provisions Note 17 113 104 126
Total provisions 600 384 422
Non-current liabilities
Liabilities to Group
companies Note 18 10,958 8,606 10,951
Other loans 2 1 —
Total non-current liabilities 10,960 8,607 10,951
Current liabilities
Loans from Group companies 1,198 7,067 —
Other loans 34 2 1
Trade payables 52 36 37
Other liabilities to Group
companies 2,884 11,322 2,162
Other current liabilities Note 19 1,860 300 122
Total current liabilities 6,028 18,727 2,322
Total shareholders’ equity
and liabilities 54,968 56,161 52,226
Assets pledged Note 20 1,153 1,217 —
Contingent liabilities Note 21 57,441 64,650 72,287
AB Volvo