Volvo 1998 Annual Report Download - page 82

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80
During 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.
Income from shares and participations in Group
companies includes dividends of 22,615, of which
17,670 pertains to the anticipated dividend from Volvo
Personvagnar Holding AB. Dividends also include Group
contributions received to a net amount of 4,887.
All shares in Mexicana de Autobuses SA de CV were
acquired during the year for 764.
Shares corresponding to 10.5% of Deutz AG were
acquired for 670 and 9.97% in Henlys Group Plc for 376.
Shareholder contributions which increased book
values were made to Volvo Bus Corporation, 1,650, Volvo
Group Finance Sweden AB, 1,550 and VNA Holding Inc,
573.
The book value of shares and participations in Group
companies amounted to 45,193 (39,868; 46,893), of
which 45,188 (39,866; 46,891) pertained to shares in
1996 1997 1998
Net sales 559 520 625
Cost of sales (559) (520) (625)
Gross income ——–
Administrative expenses Note 1 (340) (426) (318)
Other operating income 11 47 10
Other operating expenses Note 2 (41) (24) (186)
Operating income (370) (403) (494)
Income from investments in Group companies Note 3 1,682 19,437 26,705
Income from investments in associated companies Note 4 23 39 (4)
Income from other shares and participations Note 5 156 (137) 35
Interest income and similar credits Note 6 233 218 341
Interest expenses and similar charges Note 6 (1,048) (788) (760)
Other financial income and expenses Note 7 239 (594) (277)
Income after financial items 915 17,772 25,546
Allocations Note 8 (19) 277 (686)
Taxes Note 9 2—(816)
Profit for the year 898 18,049 24,044
wholly owned subsidiaries. The corresponding share-
holders’ equity in the subsidiaries (including equity in un-
taxed reserves but excluding minority interests) amount-
ed to 53,202 (61,800; 75,380).
Shares and participations in non-Group companies
included 1,058 (894; 897) in associated companies that
are reported in accordance with the equity method in the
consolidated accounts. The portion of shareholders’
equity in associated companies accruing to AB Volvo
totaled 1,383 (1,057; 834). Shareholdings and participa-
tions in non-Group companies included listed shares of
Bilia AB, Deutz AG and Henlys Group PLC with a book
value of 1,687. The market value of these holdings at
year-end was 1,431. No writedowns were deemed
necessary since the decline is not considered perma-
nent.
Net debt amounted to 7,444 (5,336; 15,838).
AB Volvo’s risk capital (shareholders’ equity plus un-
taxed reserves) amounted to 61,052, equal to 77% of total
assets. The comparable figure at year-end 1997 was 74%.
PARENT COMPANY AB VOLVO
Board of Directors’ report
Income statements SEK M