Volvo 2007 Annual Report Download - page 100
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Please find page 100 of the 2007 Volvo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.The Volvo Group
96 Financial information 2007
Notes to consolidated fi nancial statements
Note 5 Joint ventures
Joint ventures are companies over which Volvo has joint control
together with one or more external parties. Joint ventures are reported
by applying the proportionate consolidation method, in accordance
with IAS 31 Joint ventures. Group holdings of shares in joint ventures
are listed below.
Dec 31, 2007
Holding Holding
Shares in joint ventures percentage no of shares
Shanghai Sunwin Bus Corp., China 50 –
Xian Silver Bus Corp., China 50 –
Volvo’s share of joint ventures’
income statements 2006 2007
Net sales 630 654
Operating income (9) 3
Income after fi nancial items (17) (3)
Income of the period (17) (3)
Volvo’s share of joint ventures’
balance sheets 2006 2007
Non-current assets 99 121
Current assets 359 454
Total assets 458 575
Shareholders’ equity 168 167
Provisions 2 12
Long-term liabilities 3 2
Current liabilities 285 394
Total shareholders’ equity and liabilities 458 575
At the end of 2007 guarantees amounting to 88 (0) were issued for
the benefi t of joint ventures by AB Volvo. At the same date Volvo’s
share of contingent liabilities issued by its joint ventures amounted to
0 (0).
2006 2007
Number of of which Number of of which
Average number of employees employees women, % employees women, %
Shanghai Sunwin Bus Corp. 488 18 473 21
Xian Silver Bus Corp. 258 15 245 8
Total number of employees 746 17 718 17
Non-Current Assets Held for Sale
Volvo Aero Engine Services (VAES)
During the fourth quarter 2006 a strategic decision on closure of
Volvo Aero’s operations in Bromma was taken. In November 2006, it
was announced that Volvo Aero had initiated codetermination nego-
tiations with the trade unions relating to the closure of Volvo Aero
Engine Services (VAES) in Bromma, which conducts overhaul of large
aircraft engines. The operations have been gradually phased out dur-
ing 2007. In 2006, costs for a closure were estimated to 258. Add-
itional costs in 2007 were 62. The assets and liabilities in the table
adjoined are listed to a net realizable value.
Non-Current Assets Held for Sale1 2006 2007
Tangible assets 56 –
Financial assets 22 –
Inventories 480 –
Short-term recievables 247 –
Total assets 805 –
Provision for post-employment benefi ts 7 –
Other provisions 20 –
Current liabilities 253 –
Total shareholders’ equity and liabilities 280 –
1 Assets and liabilities 2006 do not balance since the table only display the
assets and liabilities in Volvo Aero Engine Services held for sale.
The effects on the Volvo Group’s balance sheet and cash-fl ow
statement in connection with the divestment of subsidiaries and
other business units are specifi ed in the following table:
Divestments 2006 2007
Intangible assets (2) –
Property, plant and equipment (181) (96)
Assets under operating lease (369) (11)
Inventories (254) (79)
Other receivables (416) (48)
Cash and cash equivalents (128) 0
Provisions 84 17
Other liabilities 723 42
Divested net assets (543) (175)
Cash and cash equivalents received 797 408
Cash and cash equivalents, divested companies (128) 0
Effect on Group cash and cash equivalents 669 408