Volvo 2004 Annual Report Download - page 71

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Scania AB
Volvo’s holding of Scania B shares was sold to Deutsche Bank on
March 4, 2004 for an amount of SEK 14.9 billion. As a consequence
of the divestment, the Scania holding was written down as of 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 to Deutsche Bank, Volvo owned 27.3 million
Ashares in Scania AB, corresponding to 24.8% of the votes and
13.7% of the capital. At the Annual General Meeting of AB Volvo 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 set at 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.
Henlys Group Plc
During 1998 and 1999, 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. In
February and March 2004, Henlys announced that its earnings for
2004 was expected to be significantly lower than previously antici-
pated. As a consequence of receiving this information, it was determined
that Volvo’s share holding in Henlys Group plc was permanently
impaired at December 31, 2003, and a write-down of SEK 429 M
was charged to income for the year. After this write-down, the carry-
ing value of Volvo's shares in Henlys Group amounted to SEK 95 M,
corresponding to the market value of these shares at year-end 2003.
During 2004 Volvo’s share holding in Henlys Group has been fully
written down and a write-down of SEK 95 M was thereby charged to
the income statement.
Bilia AB
In 2004, Volvo sold all of its remaining holding in Bilia. The sale
resulted in a capital gain for Volvo of SEK 24 M.
In 2003, Volvo exchanged 41% of the shares in Bilia for 98% of
the shares in Kommersiella Fordon Europa AB. The capital gain was
188.
Effero AB
In 2003, Volvo divested its entire holding in Effero with a capital gain
of 59.
Shanghai Sunwin Bus Corp
As of 2003, Shanghai Sunwin Bus is reported in the Volvo Group
according to the proportionate method of consolidation.
Xian Silver Bus Corp
As of 2003, Xian Silver Bus is reported in the Volvo Group according
to the proportionate method of consolidation.
Eddo Restauranger AB
In 2002, Volvo divested its entire holding in Eddo with a capital gain
of 32.
Dec 31, 2002 Dec 31, 2003 Dec 31, 2004
Group holdings of shares and participations in Registration Percentage Carrying value Carrying value Carrying value
non-Group companies number holding SEK M 1SEK M 1SEK M 1
Shares in associated companies, equity method of accounting
Peach County Holdings Inc, USA – 43 – – 556
Aviation Lease Finance USA – 49 172 165 172
Blue Chip Jet HB, Sweden 969639-1011 40 151 98 90
Arbustum Invest AB, Sweden 556543-4247 40 32 33 35
Merakvim Metal Works Ltd, Israel – 27 22 21 20
Thomas Hardie Commercials Ltd, Great Britain — 24 3 5 10
Fonderie Venissieus, France — 49 – – 15
Euromation AB, Sweden2––2020 –
Petro Stopping Centers Holding LP, USA — 29 80 0 0
Bilia AB, Sweden 556112-5690 – 710 – –
Shanghai Sunwin Bus Corp, China3—–139 – –
Xian Silver Bus Corp, China3—–135 – –
Other holdings — — 193 21 15
Total shares and participations in associated companies 41,657 363 913
1Associated companies are reported in accordance with the equity method.
Other companies are reported at cost.
2From 2004 consolidated in the Volvo Group.
3From 2003 reported according to the proportionate method of consolidation.
4Volvo’s share of shareholders’ equity in associated companies (incl. equity in
untaxed reserves) amounted to 913 (363; 1,629). Excess values amounted
to 0 (0; 28).
Shares and participations in other companies
Scania AB, Sweden 556184-8564 – 24,026 20,424 –
Deutz AG, Germany – 7 670 670 670
Henlys Group Plc, Great Britain – 10 524 95 0
Bilia AB, Sweden 556112-5690 – – 28 –
Other holdings 615 626 420
Total shares and participations in other companies 25,835 21,843 1,090
Carrying value in accordance with Group balance sheet 27,492 22,206 2,003