Volvo 1999 Annual Report Download - page 86

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84
Income from investments in Group companies include
capital gains of 17,784 from the sale of shares in Volvo
Personvagnar Holding AB to the Ford Motor Company.
Income from investments also include group contribu-
tions received in the net amount of 1,416.
In 1999, Volvo acquired shares in Scania AB corres-
ponding to 43.5% of share capital and 28.6% of voting
rights for a total of 23,023.
In January 2000, Volvo increased its holdings in
Scania to 45.5% of share capital and 30.6% of the
voting rights.
In connection with the signing of a cooperation agree-
ment, newly issued shares corresponding to 5% of
Mitsubishi Motors Corporation were acquired for 2,343.
The book value of shares and participations in Group
companies amounted to 33,528 (45,193; 39,868), of
which 33,321 (45,188; 39,866) pertained to shares in
wholly owned subsidiaries. The corresponding sharehold-
ers’ equity in the subsidiaries (including equity in untaxed
1997 1998 1999
Net sales 520 625 459
Cost of sales (520) (625) (459)
Gross income —––
Administrative expenses Note 1 (426) (318) (550)
Other operating income and expenses Note 2 23 (176) (38)
Operating income (403) (494) (588)
Income from investments in Group companies Note 3 19,437 26,705 18,728
Income from investments in associated companies Note 4 39 (4) (11)
Income from other shares and participations Note 5 (137) 35 195
Interest income and similar credits Note 6 218 341 564
Interest expenses and similar charges Note 6 (788) (760) (570)
Other financial income and expenses Note 7 (594) (277) 72
Income after financial items 17,772 25,546 18,390
Allocations Note 8 277 (686) (227)
Taxes Note 9 — (816) 384
Net income 18,049 24,044 18,547
reserves but excluding minority interests) amounted to
55,594 (53,202; 61,800).
Shares and participations in non-Group companies
included 24,028 (1,058; 894) in associated companies
that are reported in accordance with the equity method
in the consolidated accounts. The portion of sharehol-
ders’ equity in associated companies accruing to AB
Volvo totaled 24,669 (1,383; 1,057). Shares and partici-
pations in non-Group companies included listed shares
in Scania AB, Mitsubishi Motors Corporation, Bilia AB,
Deutz AG and Henlys Group Plc with a book value of
27,201. The market value of these holdings amounted to
29,692 at year-end.
Financial net assets/ debt amounted to 15,503
(-7,444; -5,336).
AB Volvo’s risk capital (shareholders’ equity plus
untaxed reserves) amounted to 77,177 equal to 93% of
total assets. The comparable figure at year-end 1998
was 77%.
Board of Directors’ report
Income statem ents SEK M
Parent Company AB Volvo
Corporate registration number 556012-5790.