Volvo 2006 Annual Report Download - page 118

114 Financial information 2006
The Volvo Group
Notes to consolidated financial statements
Dec 31, 2004 Dec 31, 2005 Dec 31, 2006
Group holdings of shares and Registration Percentage Carrying value Carrying value Carrying value
participations in non-Group companies number holding SEK M SEK M SEK M
Shares in associated companies,
equity method of accounting
Nissan Diesel – 19 – – 5,445
Blue Chip Jet II HB, Sweden 969717–2105 50 – – 148
Blue Chip Jet HB, Sweden 969639–1011 40 90 85 81
Merkavim Metal Works Ltd, Israel – 27 20 26 34
Diamond Finance Ltd, Great Britain – 40 – 23 24
Thomas Hardie Commercials Ltd, Great Britain – 24 10 14 14
Fonderie Venissieu, France – 49 15 21 23
Quingdao Sunwin Bus Corp, China 21 – 9 9
Arabian Vehicle & Truck Industry Ltd, Saudi Arabia – 25 9 9 9
Peach County Holdings Inc, USA – 43 556 0 –
Aviation Lease Finance, USA – 49 172 – –
Småföretagarinvest AB (previously Arbustum Invest AB), Sweden – – 35 – –
Other holdings 6 8 7
Total shares and participations in associated
companies in accordance with Group Balance Sheet
1 913 195 5,794
Shares and participations in other companies
Deutz AG, Germany2 – 7 670 253 740
Småföretagarinvest AB (previously Arbustum Invest AB),
Sweden 556543–4247 17 – 32 14
Other holdings 420 271 342
Total shares and participations in other companies
in accordance with Group Balance Sheet 1,090 556 1,096
Total value of Group holdings of shares and
participations in non-group companies 2,003 751 6,890
1 Volvo’s share of shareholders’ equity in associated companies (incl. equity in
untaxed reserves) amounted to 5.794 (195; 913). Excess values amounted
to 549 (0; 0).
2 Deutz AG is valued to market value as from January 1, 2005 according to
IAS 39, more information note 1 Accounting principles and note 3 Effects
of IFRS. The transition effect has been charged to equity.
Note 15 Shares and participations
The market values of Volvo’s holdings of shares and participations in
listed companies as of December 31, 2006 are shown in the table
below. As from 2005 shares in listed companies would be revaluated
to current market value. The revaluation is booked to Equity and
amounts to 392 (83; –).
Carrying value Market value
Nissan Diesel, common shares 1,952 1,341
Nissan Diesel, preference shares 3,493 –
Total holding in listed
associated companies 5,445 1,341
Holding in non-listed associated companies 349 –
Total holding in associated companies 5,794 1,341
Carrying value Market value
Deutz AG 740 740
Total holdings in listed companies 740 740
Holdings in non-listed companies
1 356 –
Total shares and participations
in other companies 1,096 740
1 Unlisted shares, for which a reliable fair value cannot be determined, should
be reported at the acquisition value reduced in appropriate cases by write-
downs.
Nissan Diesel
On March 21, AB Volvo acquired 40 million shares, corresponding to
13% of the shares, in the Japanese truck manufacturer Nissan
Diesel from Nissan Motor for approximately SEK 1,5 billion, with an
option on Nissan Motor’s remaining 6% within four years. During the
third quarter, AB Volvo exercised its option to purchase an additional
6% of the shares in Nissan Diesel from Nissan Motor for approxi-
mately SEK 500 M. AB Volvo owned a total of 19% of the shares in
the Japanese truck manufacturer at December 31, 2006. In addition,
AB Volvo acquired all 57.5 million preference shares in Nissan
Diesel from Nissan Motor and Japanese banks for a total of SEK 3.5
billion. The book value for the shares in Nissan Diesel was SEK
5.445 M at December 2006.