Volvo 1997 Annual Report Download - page 64

Shareholder contributions that increased book values were made
to Volvo Technology Transfer AB,74, Celero Support AB, 24, and
Volvo Aero Corporation, 196. The holding in Volvo Technology
Transfer AB was written down by 8 at year-end.
1996: All of the shares of Swedish Match AB were acquired from
AB Fortos for 8,000, following which the shares were distributed to
AB Volvo’s shareholders. Volvo Car Corporation was sold for 6,546 to
AB Fortos, whose name was then changed to Volvo Personvagnar
Holding AB. Sotrof AB, whose holdings include the remaining shares
of Pharmacia & Upjohn Inc., was acquired within the Group for 9,854.
AB Volvo purchased 80% of the shares of Volvo Construction
Equipment North America Inc. from Volvo Construction Equipment NV
for 1,054, following which the holding was conveyed to VNA Holding
Inc., a newly formed holding company for part of the operations in
North America, as a shareholder contribution. A share reserve of 500
was transferred from the holding in Volvo Truck Corporation to VNA
Holding Inc. The book value of VNA Holding amounted thereafter to
556.
The value of the holding of shares in Volvo Truck Corporation
acquired from Renault SA in 1994 declined by 67 in connection with
payment of the remaining portion of the purchase price. Volvo Bus
Corporation was purchased from Volvo Truck Corporation for 154.
The holding was written down by 35 at year-end.
Shareholder contributions that increased book values were made
to Volvo Aero Corporation, 295; Volvo Bus Corporation, 63; and
Rossareds Fastighets AB, 2.
1995: The outstanding 50% of the shares of Volvo Construction
Equipment Corporation were acquired for 4,081, following which the
holding was written down by 1,817. Volvo’s original holding, 318, was
transferred from shares in non-Group companies.
Shareholder contributions totaling 6,924 included contributions to
Volvo Car Corporation, 5,000 and AB Fortos (now Volvo Personvagnar
Holding AB), 1,720. Shares were acquired within the Group for 142.
Holdings in subsidiaries were written down in a total amount of 222.
Shares in non-Group com panies
Call options had been written for shares of Bilia AB with book values of
– (3; 3) at a total exercise price of – (5; 5). Bilia AB shares with a book
value of 3 were sold in connection with exercise of call options. Shares
of Renault SA carried on the books at 6,080 were sold.Participations
in the newly formed partnership, Blue Chip Jet HB, were subscribed
for 138 (of which 58 by an aircraft) and written down by 7.
The holding in Euroventures BV was reduced by 4 in connection
with the reduction of the company’s share capital. The following hol-
dings (amounts in brackets) were sold to Volvo Technology Transfer
AB: Euroventures BV [13], Euroventures Nordica I BV [6],
Euroventures Nordica II BV [5], and Innovationskapital AB [8].
Shares of Ultralux AB were purchased for 2. Participations in two
tenant-owners associations were acquired for 12.
1996: The shares of Protorp Förvaltnings AB were written down
by 247 in connection with the repayment of share capital, and by 2 in
connection with the receipt of dividends. A shareholder contribution
of 1 was made to Dansk Mobiltelefon AB, following which all of the
company’s shares, with a book value of 42, were sold. AB Volvo sub-
scribed for shares issued by Euroventures Nordica II BV, 2, and the
holding in Euroventures BV was reduced by 4 in connection with the
reduction of the company’s share capital. A shareholder contribution
of 5 was made to Näringslivskredit NLK AB, following which the
holding was written down in the same amount.
1995: The shares of Danabäck AB with a book value of 618 were
sold to Danafjord AB in connection with Danafjord’s acquisition of
the remaining shares outstanding.
The holding in Volvo Construction Equipment Corporation was
transferred to “Shares and Participation in Group Companies.” Shares
of Innovationskapital were acquired for 8. Shareholder contributions
were made to Dansk Mobiltelefon, 16, and to Näringlivskredit NLK
AB, 5, following which the holding in NLK was written down by 5.
AB Volvo subscribed for new shares issued by Euroventures Nordica
II BV, 2, and the holding in Euroventures BV was reduced by 4 in
connection with the reduction in the company’s share capital.
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13 Other short-term receivables
1995 1996 1997
Tax receivables 9 8 13
Accounts receivable 9 15 14
Prepaid expenses
and accrued income 100 23 27
Other receivables 4 18 3
Total 122 64 57
The reserve for doubtful receivables amounted to – (—; 0) at the end of
the year.
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14 Shareholders’ equity
Restricted equity Unrestricted Total share-
Share capital Premium fund Legal reserve equity holders’ equity
December 31, 1994 2,220 — 5,731 25,418 33,369
Cash dividend — — — (1,512) (1,512)
Conversion of debenture loans 98 — 1,510 — 1,608
Net income 1995 3,176 3,176
December 31, 1995 2,318 — 7,241 27,082 36,641
Cash dividend — — — (1,854) (1,854)
Distribution of shareholding in Swedish Match — — — (8,000) (8,000)
Net income 1996 — — — 898 898
December 31, 1996 2,318 — 7,241 18,126 27,685
Cash dividend — — — (1,993) (1,993)
New issue of shares 3 113 — — 116
Redemption of AB Volvo shares (113) — — (5,694) (5,807)
Bonus issue of shares 441 (113) — (328) —
Net income 1997 — — — 18,049 18,049
December 31, 1997 2,649 — 7,241 28,160 38,050
The distribution of share capital by class of shares is shown in Note 21 to the consolidated financial statements, on page 49.
AB Volvo
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