Volvo 2001 Annual Report Download - page 90

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On January 2, the acquisition of all the shares of
Renault’s truck operations – Mack and Renault V.I. – in
exchange for 15% of AB Volvo’s shares became effec-
tive. During the beginning of the year, Volvo repurchased
10% of the Company’s outstanding shares. As a result, a
total of SEK 8.3 billion was transferred to the share-
holders of AB Volvo.
On February 9, half of these shares were transferred
to Renault SA as final payment for the shares of
Renault V.I. Volvo thus holds own shares corresponding
to 5% of share capital and 5% of voting rights.
In June, Volvo received USD 297 M (SEK 3,182 M)
as a payment for the sale of shares together with rights
and obligations relating to Mitsubishi Motors Corporation.
Income from investments in Group companies
includes dividends in the amount of 24,814 (589; 996),
write-down of shares of 12,217 (372; 910) and net
group contributions delivered totaling 3,450 (received
928; 1,416). Income from other shares and participa-
tions includes a dividend from Scania AB of 637 (637;
180) and capital gain of 595 from the sale of shares in
Mitsubishi Motors Corporation.
The book value of shares and participations in Group
companies amounted to 38,140 (39,729; 33,528), of
SEK M 1999 2000 2001
Net sales 459 377 500
Cost of sales (459) (377) (500)
Gross income –––
Administrative expenses Note 1 (550) (393) (424)
Other operating income and expenses Note 2 (38) 93 0
Operating income (588) (300) (424)
Income from investments in Group companies Note 3 18,728 1,558 9,599
Income from investments in associated companies Note 4 (11) (166) 22
Income from other shares and participations Note 5 195 663 1,258
Interest income and similar credits Note 6 564 266 455
Interest expenses and similar charges Note 6 (570) (353) (467)
Other financial income and expenses Note 7 72 (44) (163)
Income after financial items 18,390 1,624 10,280
Allocations Note 8 (227) (133) 2
Taxes Note 9 394 (115) 832
Net income 18,557 1,376 11,114
which 37,725 (39,314; 33,321) pertained to shares in
wholly owned subsidiaries. The corresponding share-
holders’ equity in the subsidiaries (including equity in
untaxed reserves but excluding minority interests)
amounted to 39,752 (63,636; 55,594).
Shares and participations in non-Group companies
included 659 (679; 24,028) in associated companies
that are reported in accordance with the equity method
in the consolidated accounts. The portion of share-
holders’ equity in associated companies accruing to
AB Volvo totaled 844 (616; 24,669). Shares and partici-
pations in non-Group companies included listed shares
in Scania AB, Bilia AB, Deutz AG and Henlys Group Plc
with a book value of 26,157. The market value of these
holdings amounted to 18,465 at year-end. No write-
downs were deemed necessary since the decline is not
considered permanent.
Financial net assets/debt amounted to 12,207
(–5,178; 15,503).
AB Volvo’s risk capital (shareholders’ equity plus
untaxed reserves) amounted to 73,682 corresponding to
82% of total assets. The comparable figure at year-end
2000 was 76%.
Corporate registration number 556012-5790.
Board of Directors’ report
Parent Company AB Volvo
Income statements