Volvo 2003 Annual Report Download - page 79

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Note 11 Other long-term receivables
2001 2002 2003
Deferred tax assets 1,230 2,351 2,509
Other receivables 52 11 11
Total 1,282 2,362 2,520
Shares and participations in Group companies
In 2003 acquisition of the truck and construction equipment opera-
tions of Bilia was completed through the exchange of Volvo’s 41%
holding in Bilia for 98% of the shares in the acquired operations,
Kommersiella Fordon Europa AB. The acquisition cost of the shares
in Kommersiella Fordon Europa AB is 855.
Total shares in Volvo do Brasil Veiculos Ltda and Comercio é
Participacao Volvo Ltda, with a total value of 1,941 were received as
dividend from Volvo Global Trucks AB. The shares were then given to
Volvo Holding Sverige AB as a shareholder contribution.
Shareholder contributions were also made to Volvo Financial
Services AB, 400, Volvo China Investment Pty Ltd, 347, Volvo
Powertrain AB, 182, Volvo Holding Mexico, 110, Volvo Technology
Transfer AB, 75, Volvo Business Services AB, 85 and Celero
Support AB, 20.
Volvo Bus de Mexico with a book value of 50, was liquidated.
Write-downs were carried out during the year on holdings in Volvo
Bussar AB, 1,054, Sotrof AB, 500 and Celero Support AB, 20.
2002: An investment of 1,054 was made in newly issued prefer-
ence shares in VNA Holding Inc.
A shareholder contribution was made to Volvo China Investment
Co Ltd of 107, whereupon the shareholdings were written down by
the corresponding amount. Shareholder contributions were also
made to Volvo Holding Mexico, 89, Volvo Technology Transfer AB,
50, Volvo Bussar AB, 28 and to Celero Support AB, 15.
Write-downs was carried out at the end of the year on holding in
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 V.I.
for 3,225 and newly issued shares were subscribed for in the
amount of 1,490. At the end of the year the holdings were written
down by 1,490.
A shareholder contribution of 8,678 was made to the newly form-
ed company Volvo Global Trucks AB, who then aquired the shares in
Volvo Lastvagnar AB for the corresponding amount.
The shares in Volvo Powertrain AB and Volvo Parts AB were
acquired from Volvo Lastvagnar AB.
The shares in Mitsubishi Motors Corporation together with all
rights and obligations relating to the company, were given a total
value of 3,010 and were used as a shareholder contribution to a
newly established German subsidiary; Herkules VmbH. The company
was then divested to DaimlerChrysler.
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 and
VFHS Finans, 3,460.
Shares and participations in non-Group companies
During 1999 and 2000, AB Volvo acquired 45.5% of the capital and
30.6% of the voting rights in Scania AB, one of the world’s leading
manufacturers of trucks and buses. As a concession in connection
with the European Commission’s approval of AB Volvo’s acquisition
of Renault V.I. and Mack Trucks Inc. in 2001, AB Volvo undertook to
divest its holding in Scania not later than April, 2004. At year-end
2003, the carrying value of AB Volvo’s holding in Scania AB was
determined to 20,424, and a write-down of 3,901 was thereby
charged to operating income for the year. The carrying value of the
holding of the 63.8 million Scania B shares was determined based
upon the consideration received when AB Volvo divested those
shares to Deutsche Bank on March 4, 2004. The carrying value of
the holding of 27.3 million Scania A shares was determined based
upon the closing share price of SEK 202 on December 31, 2003. In
March, 2004, AB Volvo’s Board of Directors proposed that the
Annual General Meeting approve a dividend to AB Volvo’s sharehold-
ers of 99% of the shares in Ainax AB, a wholly owned subsidiary,
which at the time of the distribution would hold AB Volvo’s entire
holding of Scania A shares.
During 1998 and 1999, AB Volvo acquired 9.9% of the capital
and voting rights in Henlys Group Plc at a total acquisition cost of
524. Henlys Group is a British company involved in manufacturing
and distribution of buses and bus bodies in Great Britain and North
America. AB Volvo and Henlys Group jointly own the shares of the
North American bus operations Prévost and Nova Bus. In February
and March 2004, Henlys announced that its earnings for 2004 was
expected to be significantly lower than previously anticipated. As a
consequence of receiving this information, it was determined that
AB Volvo’s holding in Henlys Group Plc was permanently impaired
at December 31, 2003, and a write-down of 429 was charged to
income for the year. After this write-down, the carrying value of AB
Volvo’s shares in Henlys Group amounted to 95, corresponding to
the market value of these shares at year-end 2003. In the beginning
of March 2004, the market value of AB Volvo’s shares amounted
to 24.
The participations in Blue Chip Jet were written down by 14,
corresponding to the share of the year’s income. In 2003, Volvo
exchanged 41% of the shares in Bilia AB for 98% of the shares in
Kommersiella Fordon Europa AB. The capital gain was 250.
2002: The acquisition costs for Scania shares, acquired in prior
years, decreased by 25.
The participations in Blue Chip Jet H B were written down by 25,
corresponding to the share of the year’s income.
The remaining shares in Eddo Restauranger AB were divested to
Amica AB.
2001: Total shares in Mitsubishi Motors Corporation, with a book
value of 2,344, were transferred to a wholly-owned German sub-
sidiary, which was then divested to DaimlerChrysler.