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40
The Volvo Group
Notes to consolidated financial statements
The effects during 2003, 2002 and 2001 on the Volvo Group’s bal-
ance sheet and cash flow statement in connection with the divest-
ment of subsidiaries and other business units are specified in
the following table:
2001 2002 2003
Intangible assets (354) – (1)
Property, plant and equipment (288) (5) (23)
Inventories (939) (23) (170)
Other receivables (12,139) (43) (112)
Liquid funds (1,824) (13) (1)
Minority interests 176 – —
Provisions 2,922 – 24
Loans 420 – —
Other liabilities 583 52 170
Divested net assets (11,443) (32) (113)
Liquid funds received 11,860 32 134
Liquid funds, divested
companies (1,824) (13) (1)
Effect on Group
liquid funds 10,036 19 133
The effects during 2003, 2002 and 2001 on the Volvo Group’s bal-
ance sheet and cash flow statement in connection with the acquisi-
tion of subsidiaries and other business units are specified in
the following table:
2001 2002 2003
Intangible assets 8,914 135 948
Property, plant and equipment 9,126 95 1,102
Assets under operating lease 10,195 286 95
Shares and participations 433 (214) (1,303)
Inventories 9,361 234 1,477
Current receivables 8,774 382 1,562
Liquid funds 4,059 105 31
Other assets 7,674 3 129
Shareholders’ equity (10,356) – —
Minority interests – 119 —
Provisions (14,524) (33) (225)
Loans (2,543) (247) (2,144)
Liabilities (30,020) (582) (1,469)
Acquired net assets 1,093 283 203
Liquid funds paid (1,093) (283) (203)
Liquid funds according to
acquisition analysis 4,059 105 31
Effect on Group
liquid funds 2,966 (178) (172)
The effects during 2003 and 2002 includes wholly owned subsidiaries
that previously were accounted for according to the equity method.
Note 3Joint ventures
Joint ventures are companies over which Volvo has joint control
together with one or more external parties. Joint ventures are report-
ed by applying the proportionate consolidation method, in accordance
with RR 14 Joint ventures. Group holdings of shares in joint ventures
are listed below.
Dec 31, 2003
Holding Holding
Shares in Joint ventures percentage no of shares
Shanghai Sunwin Bus Corp., China 150 —
Xian Silver Bus Corp., China 150 —
Jinan Hua Wo Truck Corp., China 250 —
Prévost Holding BV, Netherlands 350 22,690
1 Reported according to the equity method up to 2002.
2 Established during 2003.
3 Subsidiary prior to October 1, 2001.
Volvo’s share of joint ventures’
income statements 2001 2002 2003
Net sales 1,047 2,724 1,832
Restructuring costs (348) – –
Operating income (261) 74 51
Income after financial items (272) 10 19
Net income (162) (21) 3
Volvo’s share of joint ventures’
balance sheets 2001 2002 2003
Non-current assets 1,026 782 665
Current assets 2,000 1,484 1,217
Total assets 3,026 2,266 1,882
Shareholders’ equity 354 570 581
Provisions 368 180 124
Long-term liablities 833 361 295
Current liabilities 1,471 1,155 882
Total shareholders’ equity
and liabilities 3,026 2,266 1,882
At the end of 2003 no guarantees were issued for the benefit of
joint ventures, neither by Volvo alone nor jointly with other venturers.
At the same date Volvo’s share of contingent liabilities issued by
its joint ventures amounted to 96 (109; 79).