Volvo 2005 Annual Report Download - page 74

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70 Volvo Group 2005
Financial Services
– key component
in the total offering
01 02 03 04 05
64.0 78 . 860.1
61.3 64.3
01 02 03 04 05
325 2,033926
490 1,365
01 02 03 04 05
4.2 15.39.8
4.8 11.1
01 02 03 04 05
20.6 21.723.6
18.8 22.4
Credit portfolio, net 1
SEK bn
Operating income
1
SEK M
Return on shareholders’
equity1, %
Market penetration
1, 2
%
Outcome 2005
• Growth achieved in both new-financing volume
and assets.
• Favorable balance achieved between credit risk,
volume, sales penetration and pricing.
• Finance strategy based on diversification kept
finance costs at a very low level and lent strong
support to customer finance operations.
Ambitions 2005
• Growth in financing volume and assets.
• Maintain discipline in pricing and credit
decisions.
• Conservative management of customer finance
portfolio.
• Assure low-cost funding.
Ambitions 2006
• Expand customer finance operations in
growth markets.
• Closely monitor and adapt operations to
economic conditions.
• Maintain low costs for funding the Group’s
operations.
1 Years 2004 and 2005 are reported in accordance with IFRS and 2001, 2002 and 2003 in accord-
ance with Swedish GAAP. See Note 1 and 3.
2 Share of business funded by VFS in markets where VFS offers financial services.