Volvo 2005 Annual Report Download - page 2

The Volvo Group is one of the
world’s leading producers of
trucks, buses, construction
equipment, drive systems for
marine and industrial app-
lications as well as compo-
nents for aircraft engines. The
Volvo Group also provides
fi nancial services
to its customers.
The Group has
approximately
82,000 employees, produc-
tion facilities in 18 countries
and sales in some 185 count-
ries. During 2005, the Volvo
Group’s sales rose by 14% to
SEK 231 bn and income per
share rose by 37% to SEK
32.21. The share is listed on
the Stockholm Stock Exchan-
ge and NASDAQ in the US.
A global group
2 Organization
4 Vision, mission and
values
6 CEO comment
8 An industry with long-term growth…
9 …a focused strategy…
10 …and continued efficiency enhancement…
11 …creates a stronger Volvo Group
12 Targets and execution
13 Shareholder value
14 Development of tomorrow’s
products
16 Strong brands
17 Customer-driven solutions
28 The share
Sustainable development
30 Introduction
32 Quality
34 Safety
36 Environmental care
40 Competence
43 Volvo’s social involvement
Board of Directors’ Report
45
Significant events
48 Financial performance
50 Financial position
52 Cash-flow statement
54 Risk management
58 Trucks
62 Buses
64 Construction Equipment
66 Volvo Penta
68 Volvo Aero
70 Financial Services
Corporate Governance Report
72 Report
76 Group Management
78 Board of Directors and auditors
Financial information
81 Income statements
82 Balance sheets
83 Changes in shareholders’ equity
84 Cash-flow statements
85 Notes to the consolidated
financial statements
130 Parent Company AB Volvo
144 Proposed disposition of
unappropriated earnings
145 Audit Report for AB Volvo
145 Examination of the Corporate
Governance Report
146 Eleven-year summary
154 Customer offering
Flap Definitions
Annual General Meeting
Volvo’s Election Committee
Preliminary publication dates
This report contains “forward-looking statements.” Such statements reflect management’s current expectations with
respect to certain future events and potential financial performance. Although the Company believes that the expectations
reflected in such forward looking statements are reasonable, no assurance can be given that such expectations will prove
to have been correct. Such statements are subject to risk and uncertainties and such future events and financial perfor-
mance could differ materially from those set out in the forward looking statements as a result of, among other factors, (i)
changes in economic, market and competitive conditions, (ii) success of business and operating initiatives, (iii) changes in
the regulatory environment and other government actions, (iv) fluctuations in exchange rates and (v) business risk manage-
ment.
This report does not imply that the company has undertaken to revise these forward-looking statements, beyond what is
required under the company’s registration contract with the Stockholm Stock Exchange if and when circumstances arise
that will lead to changes compared to the date when these statements were provided.
The Volvo Group’s formal financial reports are presented on pages 44-71 and 80-144 and has been audited by the
company’s auditors. The other pages has been reviewed.
Information about IFRS
As of January 1, 2005 AB Volvo complies with
International Financial Reporting Standards
(IFRS), previously known as IAS, as adopted by
the European Union. Figures for the correspond-
ing periods in 2004 have been restated according
to IFRS. In the financial information on pages 1–79,
Volvo Financial Services is reported in accordance
with the equity method. Reporting in accordance
with IAS 1 begins on page 80.