Volvo 2007 Annual Report Download - page 136
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Please find page 136 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.Parent Company AB Volvo
132 Financial information 2007
Parent Company AB Volvo
Corporate registration number 556012-5790.
Income statements
SEK M 2006 2007
Net sales 764 781
Cost of sales (764) (781)
Gross income 0 0
Selling expenses (16) (5)
Administrative expenses Note 2 (621) (619)
Other operating income and expenses Note 3 5 13
Income from investments in Group companies Note 4 8,565 6,651
Income from investments in associated companies Note 5 7 (118)
Income from other investments 0 0
Operating income 7,940 5,922
Interest income and similar credits Note 6 56 13
Interest expenses and similar charges Note 6 (67) (527)
Other fi nancial income and expenses Note 7 126 36
Income after fi nancial items 8,055 5,444
Allocations Note 8 (2,000) (1,230)
Income taxes Note 9 (1,706) (1,022)
Income for the period 4,349 3,192
Board of Directors’ report
During the fi rst quarter 2007, 2,886 was transferred to N.A. KK, a wholly-
owned newly-formed Japanese company, whose main business is to
acquire and hold the shares in Nissan Diesel. The parent com pany’s
holding in Nissan Diesel (19%) with a carrying value of 2,001 was sold
to N.A. KK and remaining shares consisting of preference shares with a
carrying value of 3,493, were reclassifi ed from shares in non-Group
companies to shares in Group companies at the time Nissan Diesel was
consolidated in the balance sheet of the Volvo Group.
During the spring, following a decision at the Annual General Meet-
ing, an extraordinary dividend was carried out in the form of a 6:1 split
with automatic redemption, in which the sixth share was redeemed by
AB Volvo for SEK 25 per share. Together with the ordinary dividend a
total of 20,255 was distributed to Volvo’s shareholders. The decision
also included a bonus issue without issuance of new shares through
the transfer of 426 from unrestricted shareholders’ equity to share
capital which then was restored to the same level as prior to the
redemption procedure. Following these transactions Volvo has a total
of 2,128,420,220 registered shares, of which 677,601,630 shares of
series A and 1,450,818,590 shares of series B.
As of January 31, 2008, AB Volvo divested the shares in the sub-
sidiary Mack Trucks Inc to Volvo Holding USA AB for SEK 3.2 billion
corresponding to book value. Volvo Holding USA AB is a wholly-
owned subsidiary in the Volvo group.
Income from investments in Group companies includes dividends
amounting to 841 (399), Group contributions and transfer price
adjustments, net of 5,944 (8,721) and write-downs of shareholdings
of 135 (192).
The carrying value of shares and participations in Group companies
amounted to 47,011 (40,419), of which 46,461 (39,870) pertained to
shares in wholly owned subsidiaries. The corresponding shareholders’
equity in the subsidiaries (including equity in untaxed reserves but
excluding minority interests) amounted to 94,345 (76,232).
Shares and participations in non-Group companies included 214
(5,642) in associated companies that are reported in accordance with
the equity method in the consolidated accounts. The portion of share-
holders’ equity in associated companies accruing to AB Volvo totaled
286 (180). Shares and participations in non-Group companies include
listed shares in Deutz AG with a carrying value of 536, corresponding
to the quoted market price at year-end.
Financial net debt amounted to 20,894 (3,589).
AB Volvo’s risk capital (shareholders’ equity plus untaxed reserves)
amounted to 35,379 corresponding to 59% of total assets. The com-
parable fi gure at year-end 2006 was 89%.