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THE VOLVO GROUP 2002
Financial Report

Table of contents

  • Page 1
    THE VOLVO GROUP 2002 Financial Report

  • Page 2
    ... Trucks Buses Construction Equipment Volvo Penta Volvo Aero Financial Services Managing Values, environment Group Management Board of Directors and Auditors Report on Board Activities Financial Information 30 31 32 33 66 78 79 80 90 91 Consolidated income statements Consolidated balance sheets...

  • Page 3
    ... Dong Feng Motors. The agreement is intended to provide Dong Feng Motors the possibility of equipping its trucks with Renault engines. Industrial changes in the North American truck operations The production of Mack highway trucks in Winnsboro, South Carolina, was transferred to the Volvo plant in...

  • Page 4
    ... share prices on stock markets worldwide. However, there was a notable recovery during the latter part of the year. The leading US Index, the Dow Jones Industrial Average, fell by 15% and NASDAQ Composite (Volvo listed since 1985), closed 32% lower. In Sweden, the Stockholmsbörsen All Share...

  • Page 5
    ...örsen. Dividend Volvo's dividend policy states that the effective return (the dividend combined with the change in share price over the long term) should exceed the average for the industry. For fiscal year 2002, the Board of Directors proposes that the shareholders at the Annual General Meeting...

  • Page 6
    ... 180,615 177,080 1 2000 figures exclude Mack Trucks and Renault Trucks. 2 Percentage change pertains to 2002/2001. Operating income (loss) by business area SEK M 2000 2001 2002 Trucks 1 Buses Construction Equipment Volvo Penta Volvo Aero Financial Services Other Operating income 2 Restructuring...

  • Page 7
    ... 2001 included a gain on sale of shares in Mitsubishi Motors Corporation of SEK 574 M. The earnings of Volvo's truck operations during 2002 gained from continued strong earnings in Europe but also continued to suffer from low volumes and capacity utilization in North America due to the poor market...

  • Page 8
    ... significant personnel reductions due to the prevailing business conditions, especially in North America. Restructuring costs in Buses were attributable to the shutdown of the Nova Bus plant for city buses in Roswell, US. In Construction Equipment, restructuring measures pertained to the Asheville...

  • Page 9
    ... Financial Services 2000 2001 2002 Total Volvo Group 2000 2001 2002 Assets Intangible assets Property, plant and equipment Assets under operating leases Shares and participations Long-term customer finance receivables Long-term interest-bearing receivables Other long-term receivables Inventories...

  • Page 10
    ... the final payment from the sale of Volvo Cars of SEK 12.1 billion, and acquired liquid funds within Mack and Renault V.I.. The purchase price paid for Mack and Renault V.I. did not affect cash flow, since the payment was made with Volvo shares held by AB Volvo. Financing and dividend Net borrowings...

  • Page 11
    ... bn Trucks Buses Construction Equipment Volvo Penta Volvo Aero Other Total 4.2 0.5 0.1 0.1 0.1 0.5 5.5 8.1 0.3 (11.8) (3.1) 0.0 (13.6) 0.3 (13.3) 6.2 0.2 (8.3) (3.4) 0.1 10.8 0.6 11.4 (0.1) 1.7 - (3.4) 0.1 (1.1) (0.7) (1.8) Condensed cash flow statements, Financial Services SEK bn 2000 2001...

  • Page 12
    ... are managed within Volvo's business areas through solid knowledge of the market, knowledge of product and price trends, and programs supporting the value of second-hand products. It is Volvo's policy to provide for this exposure on a continuing basis, so that the book value of these vehicles are in...

  • Page 13
    ...-haul service. The Renault Kerax, the third heavy-duty truck model, is a rugged truck designed for short construction and service transports. Renault Trucks has a strong international presence, with 2,000 dealers and service centers throughout the world, of which 1,350 are located in Europe. Net...

  • Page 14
    ...US. Volvo Trucks has an extensive network of dealers and service centers in both Europe and North America. To further improve its customers' ability to conduct competitive operations, Volvo Trucks offers a broad range of services. Dynafleet, Volvo's information-technology-based transport information...

  • Page 15
    ...(24.3). In Brazil, however, Volvo is the market leader in the heavy-duty vehicle class for the first time with a share of 31.0%. Total deliveries of Mack and Volvo trucks in South America were down 7% to 5,358 vehicles. Financial performance Net sales of Volvo's truck operations amounted to SEK 118...

  • Page 16
    ... 9,059 (9,953) buses and bus chassis during 2002. The decline was mainly attributable to significantly lower volumes in Mexico and North America, which were offset to some extent by favorable volumes in China and the Nordic countries. Volvo increased its market shares in Europe as a result of the...

  • Page 17
    ... 2001 2002 2001 Buses Market share, % 2002 Mexico China with Hong Kong 1 Great Britain Iran 1,660 1,101 16.1 n/a n/a 38.7 n/a 12.2 20 5,7 46.9 60 USA and Canada 1 1,110 1,319 783 1,004 890 1,124 600 600 1 Deliveries from factory. Buses 2002 Western Europe Eastern Europe North America South...

  • Page 18
    ... Wheel Loaders and compact Excavators. The company also offers solutions for financing, leasing, sales of used equipment and have recently launched an initiative for the rental market, Volvo CE Rents. At year-end 2002, 50 rental stores had opened or were under development agreements in US and Europe...

  • Page 19
    ... At the end of 2003, Volvo CE will introduce a new Telehandler to the market. In the marketing area the ambition is to continue with the dealer development program. Net sales per market Construction Equipment SEK M 2000 2001 2002 Western Europe Eastern Europe North America South America Asia Other...

  • Page 20
    ...the market. Brunswick and Cummins initiated a new diesel engine cooperation and Scania signed a commercial cooperation agreement with Yanmar. On the industrial engine side, the largest producers of complete generator sets have reported substantial sales declines during the latter part of 2002. Volvo...

  • Page 21
    ... production of diesel engines at Volvo Penta's assembly plant in Wuxi, China continued to increase. now focusing its resources in order to ensure successful product launches in all business areas. Efforts to increase Volvo Penta's sales of diesel engines in the North American market will pay off in...

  • Page 22
    ...of parts for aircraft engines and aircraft, sale and leasing of aircraft engines and aircraft, overhaul and repair of aircraft engines, and asset management. In addition, Volvo Aero develops, produces and provides aftermarket services for gas-turbine engines and systems. The company's businesses are...

  • Page 23
    ...parts/service offers. Activities continue in support of Saab/BAE's export efforts in selling the Gripen. Major efforts are being made to ensure that Volvo Aero is provided the appropriate conditions to continue further development of the RM12 engine. Net sales per market SEK M 2000 Volvo Aero 2001...

  • Page 24
    ...'s customer-financing operations cover Europe, North America, Australia, parts of South America and Asia. Customer financing is primarily truck-related, although Buses, Construction Equipment, Volvo Aero and Volvo Penta financing are included to an increasing extent. The range of financial services...

  • Page 25
    ... a wide array of transport-related insurance products and services to support Volvo customers and dealers. In most cases, these products are available at the point of sale, and premiums can often be financed along with the vehicles. In the US, Volvo Action Service offers an integrated claims process...

  • Page 26
    ...our customers, with its direct link to the operating costs of the business. Improved total fuel efficiency is also the most rewarding way to decrease carbon dioxide (CO2) emissions. At the same time to improve ambient air quality, stricter and stricter emission regulations put pressure on the engine...

  • Page 27
    ... each application, to ensure the right combination of engine, transmission, chassis and body. The new I-shift transmission used in the Volvo Trucks is an excellent example of this integration. The striving for higher fuel efficiency and lighter components requires that new material technologies are...

  • Page 28
    ... of Engineering and Master of Business Administration. President of Renault Trucks since 2000. Senior Vice President, Market Area Europe, Renault S.A. 1999-2000. Prior to that a career at Ford Motor Company. Member of Group Executive Committee since January 2002. With Volvo since 2001. Holdings...

  • Page 29
    ... of Volvo Financial Services since 2001. President of Volvo Car Finance Europe 1999-2001. Member of Group Executive Committee since 2001. With Volvo since 1985. Holdings: 1,003 American Depositary Receipts (ADRs) of AB Volvo. Lars-Göran Moberg Born 1943, Master of Engineering. President of Volvo...

  • Page 30
    ... of Engineering. President of AB Volvo and Chief Executive Officer of the Volvo Group. Member of Volvo Board since 1997. Holdings: 36,724 Volvo shares, including 30,000 Series B shares. 63,866 options. Finn Johnsson Born 1946, Master of Business Administration. President of Mölnlycke Health Care AB...

  • Page 31
    ... Financière Renault, R.C.I. Banque, Philips, Electricité de France, BNPParisbas, and Banque de France. Member of Volvo Board since 2001. Holdings: 2,000 Volvo Series B shares. Ken Whipple Born 1934. Bachelor of Business and Engineering. Board Chairman and CEO of CMS Energy Corporation, CEO...

  • Page 32
    30/31 The Volvo Group Consolidated income statements SEK M 2000 Note 3 2001 2002 Net sales Cost of sales Gross income Research and development expenses Selling expenses Administrative expenses Other operating income and expenses Income from investments in associated companies Income from other ...

  • Page 33
    Consolidated balance sheets SEK M December 31, 2000 December 31, 2001 December 31, 2002 Assets Non-current assets Intangible assets Tangible assets Property, plant and equipment Assets under operating leases Financial assets Shares and participations Long-term customer-financing receivables Other ...

  • Page 34
    ... Customer-financing receivables, net Shares and participations, net Acquired and divested subsidiaries and other business units, net Cash flow after net investments Financing activities Increase (decrease) in bond loans and other loans Loans to external parties, net Dividend to AB Volvo shareholders...

  • Page 35
    ... the foremost companies in the aircraft and aerospace industries. Operating structure As of 2002, the Volvo Group's operations are organized in eight business areas: Volvo Trucks, Renault Trucks, Mack Trucks, Buses, Construction Equipment, Volvo Penta, Volvo Aero and Financial Services. In addition...

  • Page 36
    ...the consolidated balance sheet, the book value of shareholdings in associated companies is affected by Volvo's share of the company's net income, reduced by the amortization of goodwill and by the amount of dividends received. Accounting for hedges Loans and other financial instruments used to hedge...

  • Page 37
    ...future financial benefits for the company. The acquisition value for such intangible assets shall be amortized over the estimated useful life of the assets. Volvo's application of the new rules means that very high demands are established in order for these development expenditures to be reported as...

  • Page 38
    ... Mack Trucks, Volvo Construction Equipment, Champion Road Machinery, Volvo Aero Services, Prévost, Nova BUS, Volvo Bus de Mexico, Volvo Construction Equipment Korea and Volvo Aero Norge are being amortized over 20 years due to the holdings' long-term and strategic importance. If, at a balance sheet...

  • Page 39
    ... dealerships in South Africa and an assembly plant for trucks and bus chassis in Botswana. The company will run operations within the truck, bus, construction equipment and marine and industrial engines sectors. Truck Engine Parts Division In February 2000, Volvo Aero's Truck Engine Parts Division...

  • Page 40
    ... the Volvo Group's balance sheet and cash flow statement in connection with the divestment of subsidiaries and other business units are specified in the following table: 2000 2001 2002 Intangible assets Property, plant and equipment Assets under operating lease Shares and participations Inventories...

  • Page 41
    ...companies Volvo's share of income after financial items, in associated companies, is shown below: Income (loss) 2000 2001 2002 2000 Dividends received 2001 2002 Bilia AB Xian Silver Bus Corp Turbec AB Petro Stopping Centers Holding LP Shanghai Sunwin Bus Corp Aviation Lease Finance Other companies...

  • Page 42
    .../41 The Volvo Group Notes to consolidated financial statements Note 7 Restructuring costs to the prevailing business conditions, especially in North America. Restructuring costs in Buses were attributable to the shut down of Nova Bus' plant for city buses in Roswell, US. In Construction Equipment...

  • Page 43
    ... Income after financial items was distributed as follows: 2000 2001 2002 Sweden Outside Sweden Share of income (loss) in associated companies Total Tax expense was distributed as follows: 3,983 1,828 435 6,246 (4,062) 2,198 (2) (1,866) (2,448) 4,323 138 2,013 2000 2001 2002 Current taxes...

  • Page 44
    ... Henlys Group's holding (49%) in Prévost Holding BV Note 12 Intangible and tangible assets Value in balance sheet 2000 Value in balance sheet 2001 Subsidaries Sales/ acquired and scrapping divested 4 Value in balance sheet 2002 Acquisition costs Goodwill Entrance fees, aircraft engine programs...

  • Page 45
    ..., 2002 Book value SEK M 2 Group holdings of shares and participations in non-Group companies Shares in associated companies, equity method of accounting Bilia AB, Sweden Shanghai Sunwin Bus Corp, China Petro Stopping Centers Holdings, LP, USA Blue Chip Jet HB, Sweden Aviation Lease Finance USA Xian...

  • Page 46
    ... quoted market price of these investments. Book value Market value Volvo intends to divest the holding in Scania, and discussions are held with a number of industrial buyers. Volvo's assessment is that a combined block of shares represents a higher value than the listed price on the stock exchange...

  • Page 47
    ...) 1,333 1,333 252 (162) 1,421 224 (51) 3,017 3,017 248 (348) (1) (262) 56 2,710 Note 17 Short-term customer-financing receivables 2000 2001 2002 Installment credits Financial leasing Retailer financing Other receivables Total 6,143 5,195 6,816 728 18,882 8,450 5,913 7,296 1,050 22,709 8,306...

  • Page 48
    ...Cash and bank accounts 2000 2001 2002 Cash in banks Time deposits in banks Total 5,802 598 6,400 4,941 8,928 13,869 4,157 4,714 8,871 Note 21 Shareholders' equity ly amounting to 5% of the total number of registered A and B shares, the total number of outstanding Volvo shares by year end 2002...

  • Page 49
    ... in value in 2001 and 2002 as a result of the downturn on the stock market. Consequently, the value of the foundation's assets was 1,099 less than pension commitments at year-end 2002. As a result, a provision for coverage of this deficit was reported in Volvo's consolidated balance sheet per...

  • Page 50
    ... were recognized in the Group's financial statements 2001 and 2002 as a result of deficits in separate pension plans. The table below includes specification of how the minimum liability adjustments affected the Group's balance sheets as per the respective year-ends. 2000 2001 2002 Long-term...

  • Page 51
    ... hedges foreign-exchange and interest-rate risks using derivative instruments. See also Note 32. 2000 2001 2002 The listing below shows the Group's non-current liabilities in which the largest loans are distributed by currency. Most are issued by Volvo Treasury AB and Volvo Group Finance Europe BV...

  • Page 52
    ... Secured bank loans at year-end 2002 amounted to 588 (472; 473). The corresponding amount for other current liabilities was 1,775 (1,732; 1,506). Note 26 Assets pledged 2000 2001 2002 Property, plant and equipment - mortgages Chattel mortgages Receivables Inventories Cash, marketable securities...

  • Page 53
    ... acquisition of shares in Volvo Aero Services LP. Acquired and divested subsidiaries and other business units, net in 2001 amounted to SEK 13.0 billion mainly pertained to the final payment of SEK 12.1 billion from the sale of Volvo Cars, divestment of the insurance operation in Volvia and acquired...

  • Page 54
    ...11.872 Financial leases: - Contingent rents Operating leases: - Contingent rents - Rental payments - Sublease payments Total (1) (80) (837) 1 (917) (4) (82) (899) 14 (971) 2001 (11) (46) (1,238) 16 (1,279) 2002 Book value of assets subject to finance lease: Acquisition costs: Buildings Land and...

  • Page 55
    ...The pensionable salary is the sum of 12 times the current monthly salary, Volvo's internal value for company car, and a five-year rolling annual average of earned bonus which is limited to a maximum of 50% of the annual salary. Leif Johansson has twelve months notice of termination from AB Volvo and...

  • Page 56
    54/55 The Volvo Group Notes to consolidated financial statements 2000 2001 Number of employees of which women, % Number of employees 2002 of which women, % Average number of employees AB Volvo Sweden Subsidiaries Sweden Western Europe Eastern Europe North America South America Asia Other countries ...

  • Page 57
    ...financial risks. The Volvo Group Financial Risk 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 inhouse bank, Volvo...

  • Page 58
    ... effect on the consolidated balance sheet. Companies in the Volvo Group are generally formed or acquired with Volvo Group outstanding derivatives - commercial exposure December 31, 2000 Notional amount Book value Estimated fair value a long-term perspective, where equity is used to fund real assets...

  • Page 59
    ... as liquid funds and certain current liabilities as well as certain short-term loans - the book value has been assumed to closely approximate market value. Official exchange rates and prices quoted in the open market have been used initially for purposes of valuation. In their absence, the valuation...

  • Page 60
    .../59 The Volvo Group Notes to consolidated financial statements Estimated fair value of Volvo's financial instruments December 31, 2000 Book value Fair value December 31, 2001 Book value Fair value December 31, 2002 Book value Fair value Balance sheet items Investments in shares and participations...

  • Page 61
    ...) - 188 1 The Volvo Group's Net income and Shareholders' Equity in accordance with U.S. GAAP in 2001 have been restated in the financial statements for 2002, due to a calculation error in the 2001 numbers. B. Business combinations. Acquisitions of certain subsidiaries are reported differently in...

  • Page 62
    ... in Renault V.I. and Mack Trucks. In 1995, AB Volvo acquired the outstanding 50% of the shares in Volvo Construction Equipment Corporation (formerly VME) from Clark Equipment Company, in the U.S. In conjunction with the acquisition, goodwill of SEK 2.8 billion was reported. The shareholding was...

  • Page 63
    ... of pension benefits, usually related to the employee's final salary. In these cases the annual pension cost is calculated based on the current value of future pension payments. In Volvo's consolidated accounts, provisions for pensions and pension costs for the year in the individual companies are...

  • Page 64
    ... used for determination of the net periodical pension costs. The expected return on plan assets in 2003 will generally be lower than in 2002, mainly as a consequence of the lower interest rates at the end of 2002. 2000 2001 2002 Sweden Discount rate Expected return on plan assets Expected salary...

  • Page 65
    ... benefit plans Obligations at December 31, 2000 Acquisitions and divestments, net Service costs Interest costs Plan amendments Termination benefits Curtailments Employee contributions Actuarial (gains) and losses Exchange rate translation Benefits paid Obligations at December 31, 2001 Acquisitions...

  • Page 66
    ... Other post-employment benefit plans In addition to its pension plans, certain subsidiaries sponsor unfund- ed benefit plans, mainly in the U.S., to provide health care and other benefits for retired employees who meet minimum age and service requirements. The plans are generally contributory, with...

  • Page 67
    ... 1998. In accordance with a statement issued by a special committee of the Swedish Financial Accounting Standards Council, surplus funds that were accumulated in Alecta should be reported in companies when their present value can be calculated in a reliable manner. The rules governing how the refund...

  • Page 68
    ...450; received 928). Income from other shares and participations includes a dividend from Scania AB of 319 (637; 637) and in 2001 a 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 38,950 (38,140...

  • Page 69
    Balance sheets SEK M Dec 31, 2000 Dec 31, 2001 Dec 31, 2002 Assets Non-current assets Rights Total intangible assets Property, plant and equipment Total tangible assets Shares and participations in Group companies Long-term receivables with Group companies Other shares and participations Other long...

  • Page 70
    ... Parent Company's sales, 320 (353; 253) were to Group companies and purchases from Group companies amounted to 191 (188; 249). Employees The number of employees at year-end was 124 (122; 122). Wages, salaries and social costs amounted to 309 (207; 187). Information on the average number of employees...

  • Page 71
    ... gain of 172 in AB Volvo. Income in 2000 included an additional capital gain of 382, pertaining to the sale of shares in Volvo Personvagnar Holding AB to Ford Motor Company. Of the income reported, 770 (24,814; 589) pertained to dividends from Group companies. Group contributions delivered totaled...

  • Page 72
    70/71 Parent Company AB Volvo Notes to financial statements Note 8 Allocations 2000 2001 2002 Provision to tax allocation reserve Reversal of tax ...applicable tax rate (28%) Capital gains Non-taxable dividends Recognition of deferred tax assets Non-deductible write-downs of shareholdings...

  • Page 73
    ...Sotrof AB, 400. 2001: All shares in Renault V.I. that were acquired from Renault SA, were paid for with Volvo shares held by AB Volvo and were booked to an amount of 10,700. The shares were then sold group internal to Volvo Holding France SA. The shares in Mack Trucks Inc were acquired from Renault...

  • Page 74
    72/73 Parent Company AB Volvo Notes to financial statements Shareholder contributions were made to Volvo Holding Sverige AB, 4,900, Volvo Aero AB, 299, Volvo Parts AB, 200, Volvo Holding Mexico, 159 and Volvo Technology Transfer AB, 100. Write-downs were carried out on holdings in Sotrof AB, 6,966 ...

  • Page 75
    ... is shown in Note 21 to the consolidated financial statements. Note 16 Untaxed reserves Value in balance sheet 2000 Group internal transfer 2001 Allocations 2001 Value in balance sheet 2001 Allocations 2002 Value in balance sheet 2002 The composition of, and changes in, untaxed reserves: Tax...

  • Page 76
    ...448) including 69,640 (72,793; 58,140) pertaining to Group companies. Note 22 Cash flow statements 2000 2001 2002 Other items not affecting cash Write-downs of shareholdings Dividends and Group contributions Gain on sale of shares Other Total Further information is provided in Note 3-5. 400 507...

  • Page 77
    ...shares AB Volvo's holding of shares and participations in non-Group companies Scania AB, Sweden 2 Deutz AG, Germany 2 Bilia AB, Sweden 2 Henlys Group Plc, Great Britain 2 Blue Chip Jet HB, Sweden Eddo Restauranger AB, Sweden Other investments Total book value, non-Group companies Registration number...

  • Page 78
    ... Europe GmbH, Germany Volvo Penta Espana, SA, Spain Volvo Penta Asia (Pte) Ltd., Singapore Volvo Aero AB, Sweden Volvo Aero Engine Services AB, Sweden Volvo Aero Support AB, Sweden Volvo Aero Norge AS, Norway Registration number Percentage holding Dec 31, 2001 Dec 31, 2002 Book value, Book value...

  • Page 79
    ... Technology AB, Sweden Volvo Financial Services AB, Sweden Sotrof AB, Sweden Volvo Technology Transfer AB, Sweden Celero Support AB, Sweden Volvo Holding Sverige AB, Sweden Volvo Group Finance Europe BV, The Netherlands Volvo Construction Equipment Korea Co. Ltd., South Korea Volvo Truck & Bus...

  • Page 80
    ... be appropriated to restricted equity. AB Volvo Retained earnings Net income 2002 Total SEK M 58,908 (2,485) 56,423 The Board of Directors and the President propose that the above sum be disposed of as follows: SEK M To the shareholders, a dividend of SEK 8.00 per share To be carried forward Total...

  • Page 81
    ... principles in Sweden. We recommend to the general meeting of shareholders that the income statements and balance sheets of the Parent Company and the Group be adopted, that the profit of the Parent Company be dealt with in accordance with the proposal in the Board of Directors' Report, and that...

  • Page 82
    ... pertaining to Volvo Construction Equipment. Consolidated income statements with Financial Services reported in accordance with the equity method SEK M 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Net sales Cost of sales Gross income Research and development expenses Selling expenses...

  • Page 83
    ... balance sheet excluding Financial Services 1 SEK M 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Intangible assets Property, plant and equipment Assets under operating leases Shares and participations Inventories Customer financing receivables Interest bearing receivables...

  • Page 84
    ... leasing assets Customer financing receivables, net Shares and participations, net Acquired and divested subsidiaries and other business units, net Cash flow after net investments Increase (decrease) in loans Loans to external parties, net Repurchase of own shares Dividend to AB Volvo shareholders...

  • Page 85
    ...Key ratios 5 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Gross margin, % 1, 2 Research and development expenses as percentage of net sales 1, 2 Selling expenses as percent of net sales 1, 2 Administration expenses as percentage of net sales 1, 2 Operating margin, % Return on shareholders...

  • Page 86
    .... 6 Dividend divided by income per share. 7 Shareholders' equity divided by number of shares outstanding at year-end. 8 Plus one share of Swedish Match per Volvo share, price of SEK 21.74 (weighted average first ten trading days following listing). 9 Proposed by the Board of Directors. The largest...

  • Page 87
    ...Volvo Penta Western Europe Eastern Europe North America South America Asia Other markets Total Volvo Aero Western Europe Eastern Europe North America South America Asia Other markets Total Other and eliminations 1 10,713 11,784 Net sales excl Financial Services Financial Services Western Europe...

  • Page 88
    ... value in Volvo Trucks, which was estimated to arise in connection with exchange of shares with Renault. 9 Refers to Volvo Trucks for 1992-2000. Operating margin % 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Trucks Buses Construction Equipment 1 Volvo Penta Volvo Aero Volvo...

  • Page 89
    ...new Annual Accounts Act. Number of employees at year-end Number 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Trucks Buses Construction Equipment Volvo Penta Volvo Aero Financial Services Other Volvo Group, excluding divested operations Cars Other divested operations Volvo Group...

  • Page 90
    ... 1997 1998 1999 2000 2001 2002 Net sales excluding Financial Services SEK M 1992 Western Europe Eastern Europe Europe total North America South America Asia Other markets Volvo Group excl divested operations Cars Other divested operations and eliminations Volvo Group total of which, Sweden 27,932...

  • Page 91
    Employees Number 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Sweden Europe, excluding Sweden North America South America Asia Other markets Volvo Group total 39,130 12,040 5,540 1,520 1,380 510 60,120 43,980 16,280 6,950 3,400 2,170 860 73,640 44,880 18,040 6,...

  • Page 92
    ... interest-bearing liabilities and other provisions. This ratio is used only for Volvo's business areas, not for the Group as a whole. Return on shareholders' equity Net income divided by average shareholders' equity. Self-financing ratio Cash flow from operating activities (see Cash flow statement...

  • Page 93
    ...can also be ordered from Celero Support AB, DDC, Dept 63356 ARUN, SE-405 08 Göteborg, Sweden. Telephone: +46 31-66 10 47. Telefax: +46 31-66 20 20. E-mail: [email protected] Historical and current time series reflecting the Volvo Group's financial development, market information and share data are...

  • Page 94
    Production sites â- Mack Trucks North America Hagerstown, Macungie, New River Valley Australia Brisbane â- Renault Trucks Europe Blainville, Bourg en Bresse, Limoges, St Priest, Vénissieux, Villaverde â- Volvo Trucks North America New River Valley South America Curitiba Europe Göteborg, Köping...

  • Page 95

  • Page 96
    AB Volvo (publ) SE-405 08 Göteborg, Sweden Telephone +46-31 66 00 00 AB Volvo, Investors Relations, 635 27042