Volvo 2006 Annual Report Download - page 2

A global group
2 Organization
4 Volvo in society
6 Vision, mission and values
8 Market overview
10 CEO comment
12 Our customers’ needs govern our
strategy…
13 1. Profitable growth
14 2. Innovation and product development
15 3. Highest quality in implementation
16 Financial strategy
18 Leading supplier of commercial
transport solutions
20 Volvo 3P – Development and synergies
24 Volvo Powertrain - Uniform power
28 Long-term strategy in Asia
30 The share
Sustainable development
32 Introduction
35 Environmental responsibility
40 Social responsibility
Board of Directors’ Report
46 Significant events
50 Financial performance
52 Financial position
54 Cash-flow statement
56 Risk management
59 Business areas
60 Mack Trucks
62 Renault Trucks
64 Volvo Trucks
66 Trucks
68 Buses
70 Construction Equipment
72 Volvo Penta
74 Volvo Aero
76 Financial Services
Corporate Governance Report
78 Report
82 Group Management
84 Board of Directors and auditors
Financial information
87 Income statements
88 Balance sheets
89 Changes in shareholders’ equity
90 Cash-flow statements
91 Notes to the consolidated financial
statements
138 Parent Company AB Volvo
152 Proposed disposition of unappropriated
earnings
153 Audit Report for AB Volvo
154 Eleven-year summary
162 Customer offering
Flap Definitions
Annual General Meeting
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 performance 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 management.
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 46-77 and 86-152 in the printed version and has been audited by the
company’s auditors.
The Volvo Group is one of the leading suppliers of commercial
transport solutions providing products such as trucks,
buses, construction equipment, drive systems for marine
and industrial applications as well as aircraft engine compo-
nents. The Volvo Group also offers its customers
fi nancial services.
The Group has about 83,000 employees, production facilities
in 18 countries, and sales activities in some 180 countries.
During 2006 Volvo Group sales rose 7% to SEK 248 billion,
with earnings per share advancing 25% to SEK 40.20. The
share is listed on the Stockholm Stock Exchange and on
NASDAQ in the US.
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 corresponding peri-
ods in 2004 have been restated according to IFRS. In the financial information on pages 1 to 77
Volvo Financial Services is reported in accordance with the equity method. Reporting in accor-
dance with IAS 1 begins with Financial information on page 86.