Volvo 2000 Annual Report Download - page 82

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In January 2000, Volvo increased its holdings in Scania
to 45.5% of share capital and 30.6% of the voting rights.
As a result of the European Commissions’s decision in
March, not to approve AB Volvo’s proposed acquisition of
Scania, it was not possible to complete the acquisition.
On January 2, 2001 Volvo acquired all the shares of
Renault’s truck operations – Mack and Renault V.I. – in
exchange for 15% of AB Volvo’s shares. During 2000,
AB Volvo repurchased 10% of the Company’s outstanding
shares through an offer to repurchase shares held by
Volvo’s shareholders and, to a minor extent, through
additional purchases in the open market. Volvo’s repur-
chase of its own shares transferred a total of SEK 11.8
billion to AB Volvo’s shareholders. These shares have
been transferred to Renault S.A. as partial payment and
the remaining 5% will be transferred after additional
repurchases.
Volvo and Mitsubishi have signed an agreement set-
ting forth the terms for Volvo’s acquisition of 19.9% of
the shares of Mitsubishi Motors’ truck and bus company,
Mitsubishi Fuso Truck & Bus Company.
Income from investments in Group companies
includes group contributions received in the net amount
of 928 (1,416; 4,887). Income from other shares and
participations include dividend from Scania AB of 637
(180; –).
SEK M 1998 1999 2000
Net sales 625 459 377
Cost of sales (625) (459) (377)
Gross income –––
Administrative expenses Note 1 (318) (550) (393)
Other operating income and expenses Note 2 (176) (38) 93
Operating income (494) (588) (300)
Income from investments in Group companies Note 3 26,705 18,728 1,558
Income from investments in associated companies Note 4 (4) (11) (166)
Income from other shares and participations Note 5 35 195 663
Interest income and similar credits Note 6 341 564 266
Interest expenses and similar charges Note 6 (760) (570) (353)
Other financial income and expenses Note 7 (277) 72 (44)
Income after financial items 25,546 18,390 1,624
Allocations Note 8 (686) (227) (133)
Taxes Note 9 (816) 384 (117)
Net income 24,044 18,547 1,374
The book value of shares and participations in Group
companies amounted to 39,729 (33,528; 45,193), of
which 39,314 (33,321; 45,188) pertained to shares in
wholly owned subsidiaries. The corresponding sharehold-
ers’ equity in the subsidiaries (including equity in untaxed
reserves but excluding minority interests) amounted to
63,636 (55,594; 53,202).
Shares and participations in non-Group companies
included 679 (24,028; 1,058) in associated companies
that are reported in accordance with the equity method
in the consolidated accounts. The portion of sharehold-
ers’ equity in associated companies accruing to AB Volvo
totaled 616 (24,669; 1,383). Shares and participations
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 28,501. The
market value of these holdings amounted to 21,676 at
year-end. No write-downs were deemed necessary since
the decline is not considered permanent.
Financial net assets/debt amounted to –5,178
(15,503; –7,444).
AB Volvo’s risk capital (shareholders’ equity plus
untaxed reserves) amounted to 63,785 corresponding to
76% of total assets. The comparable figure at year-end
1999 was 93%.
Corporate registration number 556012-5790.
Board of Directors’ report
Parent Company AB Volvo
Income statements