Volvo 2004 Annual Report Download - page 101

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Shares and participations in Group companies
In 2004 the remaining 2% of the shares in Kommersiella Fordon
Europa AB has been acquired for 28 by compulsory acquisition.
The acquisition costs of the stockholding increased with 4 and at
year-end the holding was written-down with 643.
25% of the shares in VFS Servizi Financiari Spa has been
acquired inter-company for 101.
The holdings in seven dormant Group companies with a total
book value of 82 have been transferred Group internal.
Shareholder contributions were made to Alviva AB, 2 and to
Celero Support AB, 10, whereupon the shareholdings were written
down by the corresponding amounts.
Shareholder contributions were also made to Volvo Bussar AB,
18, Volvo Global Trucks AB, 1 and Volvo Financial Services AB, 345.
Write-downs were carried out at year-end on holdings in Sotrof
AB, 600, Volvo China Investment Co Ltd, 99 and Volvo Penta UK,
10.
2003: Acquisition of the truck and construction equipment oper-
ations 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 was 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-down was carried out at the end of the year on the holding
in Sotrof AB, 400.
Shares and participations in non-Group companies
Volvo’s holding of Scania B shares was sold to Deutsche Bank on
March 4, 2004 for an amount of 14,905. As a consequence of the
divestment, the Scania holding was written down in the fourth
quarter of 2003. The transaction was carried out as part of Volvo’s
commitment to the European Commission to divest the Scania
shares not later than April 23, 2004. After the sale of the Scania B
shares, Volvo owned 27.3 million A shares in Scania AB, correspon-
ding to 24.8% of the votes and 13.7% of the capital. The holding of
the Scania A shares was revaluated to market value on April 15,
meaning an income of 915 in 2004. At the Annual General Meeting
on April 16, 2004, the Board’s proposal to transfer all A shares in
Scania to Ainax and thereafter to distribute the shares in Ainax to
Volvo’s shareholders was approved. The value of the distribution of
Ainax was 6,310. The shares in Ainax were distributed to Volvo's
shareholders on June 8, 2004. As of June 8, 2004 Volvo no longer
holds any shares in Scania AB. On June 9, 2004 Volvo sold the
remaining 0.9% holding in Ainax.
During 2004 Volvo’s holding in Henlys Group plc has been fully
written down and a write-down of 95 was thereby charged to the
income statement.
The holding in Bilia AB with a book value of 25 was sold.
The participations in Blue Chip Jet HB were written down by 1.
2003: 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 deter-
mined based upon the consideration received when AB Volvo divest-
ed 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.
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. In February and March 2004, Henlys announced that its earn-
ings 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 share 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, cor-
responding 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 HB 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.