Volvo 1999 Annual Report Download - page 77

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The Volvo Group is exposed to various types of financial
risks. Group-wide policies form the basis for each Group
company’s action program. Monitoring and control is
conducted continuously in each company as well as
centrally. Most of the Volvo Group’s financial transactions
are carried out through Volvo’s in-house bank, Volvo
Treasury, which conducts its operations within
established risk mandates and limits.
Foreign exchange risks
Volvo’s currency risks are related to changes in contract-
ed and projected flows of payments (commercial expos-
ure), to payment flows related to loans and investments
(financial exposure), and to the translation of assets and
liabilities in foreign subsidiaries (equity exposure). The
objective of Volvo’s foreign exchange risk management
is to reduce the impact of foreign exchange movements
on the Group’s income and financial position. Due to the
sale of Volvo Cars and the implementation of the euro
the currency policy is currently being reviewed.
Financial risks Note 32
Fees and other remuneration to external auditors for
fiscal year 1999 amounted to 90 (89), of which 55 (39)
for auditing, distributed between Pricewaterhouse-
Coopers, 34 (33) and others, 21 (6), and 35 (50)
pertaining to non-audit services from Pricewaterhouse-
Coopers.
Auditing assignments involve examination of the
annual report and financial accounting and the adminis-
tration by the Board and the President, other tasks rela-
ted to the duties of a company auditor and consultation
or other services that may result from observations noted
during such examination or implementation of such other
tasks. All other tasks are defined as other assignments.
Fees to the auditors Note 31
Wages, salaries
and other 1997 1998 1999
remunerations, Board and of which, Other Board and of which, Other Board and of which, Other
SEK M President bonuses employees President bonuses employees President bonuses employees
AB Volvo
Sweden 28.3 6.2 127.8 23.7 1.8 71.9 27.8 5.9 77.0
Subsidiaries
Sweden 98.7 43.9 10,869.2 80.3 10.8 11,760.3 63.3 9.3 6,969.0
Western Europe 166.0 34.7 4,421,5 184.6 11.3 4,639.9 149.7 20.9 3,203.0
Eastern Europe 1,6 — 38.7 5.0 – 62.1 1.1 0.2 102.2
North America 85.2 2.4 2,116.7 72.7 2.5 3,101.0 60.9 1.9 3,137.2
South America 20.1 0.4 376.9 25.9 0.6 420.7 29.6 0.0 292.9
Asia 53.0 2.1 533.0 62.4 7.6 706.9 33.0 0.5 493.1
Other countries 11,0 0.4 134.2 8.8 – 127.3 6.4 0.5 106.0
Group total 463.9 90.1 18,618.0 463.4 34.6 20,890.1 371.8 39.2 14,380.4
Wages,
salaries other 1997 1998 1999
remunerations Wages, of which, Wages, of which, Wages, of which,
and social- salaries, re- Social pension salaries, re- Social pension salaries, re- Social pension
costs, SEK M munerations costs costs munerations costs costs munerations costs costs
AB Volvo1156.1 128.1 106.0 95.6 83.4 63.3 104.8 78.5 54.3
Subsidiaries 18,925.8 7,740.7 3,554.1 21,257.9 8,627.5 3,504.1 14,647.4 5,001.7 1,486.8
Group total 219,081.9 7,868.8 3,660.1 21,353.5 8,710.9 3,567.4 14,752.2 5,080.2 1,541.1
1 Of the Parent Company’s pension costs, before withdrawals
from the Pension Foundation, 14.6 (26.1; 43.0) pertains to
Board members and the President. The Company’s outstand-
ing pension obligations to these individuals amount to 287.9
(283.2; 275.0).
2 Of the Group’s pension costs, before withdrawals from the
Pension Foundation, 60.0 (121.2; 94.5) pertains to Board
members and the President. The Group’s outstanding pension
obligations to these individuals amount to 368.2 (374.2; 360.9).