Volvo 2005 Annual Report Download - page 134

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130 Volvo Group 2005
Corporate registration number 556012-5790.
Board of Directors’ report
The program for repurchase of own shares that the Annual General
Meeting on April 16, 2004 mandated the Board to decide on was
completed on March 1, 2005. Among other aims, the purpose of the
repurchase was to optimize AB Volvo’s capital structure. In total
300,000 A shares and 14,475,000 B shares were repurchased cor-
responding to SEK 4,295 M. After the completed repurchase pro-
gram, AB Volvo held a total of 7,230,246 A shares and 29,890,797
B shares in the company, corresponding to about 8.4% of the total
number of shares in the company.
The Annual General Meeting in AB Volvo on April 12, 2005
resolved that the company’s share capital should be reduced by
SEK 95,021,046 through the cancellation without repayment of
3,084,619 A shares and 12,752,222 B shares that the company
repurchased. The cancellation was accomplished during the second
quarter of 2005. After the cancellation, AB Volvo owns 5% of its
own shares.
Income from investments in Group companies includes dividends
amounting to 9,161 (101), write-downs of shareholdings of 8,420
(1,364) and Group contributions and transfer price adjustments, net,
of 5,360 (5,673). All shares in Volvo Lastvagnar AB, 8,678, were
received as dividend from Volvo Global Trucks, after which shares in
Volvo Global Trucks AB were written down by 8,420. The divestment
of Celero Support AB resulted in a capital gain of 518 in the parent
company.
The carrying value of shares and participations in Group compa-
nies amounted to 40,812 (40,393), of which 40,298 (39,878) per-
tained to shares in wholly owned subsidiaries. The corresponding
shareholders’ equity in the subsidiaries (including equity in untaxed
reserves but excluding minority interests) amounted to 67,804
(55,831).
Shares and participations in non-Group companies included 0 (0)
in associated companies that are reported in accordance with the
equity method in the consolidated accounts. The portion of share-
holders’ equity in associated companies accruing to AB Volvo
totaled 85 (90). Shares and participations in non-Group companies
included listed shares in Deutz AG with a carrying value of 253,
corresponding to the quoted market price at year-end. The holding
in Deutz AG is reported at market value as of January 1, 2005 in
accordance with application of the new accounting principle,
IAS 39 Financial Instruments, from the same date. See also Note 1
Accounting principles.
Financial net assets amounted to 6,052 (5,541).
AB Volvo’s risk capital (shareholders’ equity plus untaxed
reserves) amounted to 51,115 corresponding to 92% of total assets.
The comparable fi gure at year-end 2004 was 94%.
SEK M 2004 2005
Net sales 531 663
Cost of sales (531) (663)
Gross income 0 0
Selling expenses – (56)
Administrative expenses Note 2 (471) (955)
Other operating income and expenses Note 3 5 7
Income from investments in Group companies Note 4 4,409 6,620
Income from investments in associated companies Note 5 (1) 0
Income from other investments Note 6 851 (1)
Operating income 4,793 5,615
Interest income and similar credits Note 7 294 114
Interest expenses and similar charges Note 7 (238) (31)
Other fi nancial income and expenses Note 8 111 (108)
Income after fi nancial items 4,960 5,590
Allocations Note 9 1,524 0
Income taxes Note 10 (1,338) (1,230)
Income for the period 5,146 4,360
Parent Company AB Volvo
Income statements