Volvo 2007 Annual Report Download - page 21
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Net sales growth1, % Operating margin1, % Net fi nancial position as percent-
age of shareholders’ equity1, %
1 Years 2004–2007 reported in accordance with IFRS and 2003 in accordance with prevailing Swedish GAAP. See Note 1 and 3.
2 Excluding adjustment of goodwill in 2006.
Growth
Volvo Group’s growth target is that net sales
should increase by a minimum of 10% annually.
This objective will be achieved through organic
growth and acquisitions. Net sales rose 10%
in 2007. During the period 2003–2007, the
average growth rate was 9.2% annually.
Operating margin
The Volvo Group’s profi tability target is that
operating margin for the industrial operations
is to exceed an average of 7% annually over a
business cycle.
The operating margin for 2007 was 7.8%.
The average annual operating margin for the
Volvo Group was 6.7% from 2003 to 2007.
Capital structure
The capital structure target is set to a net debt
for the industrial operations of a maximum of
40% of shareholders’ equity.
As of December 31, 2007, the Volvo Group
had a net fi nancial debt position correspond-
ing to 5.7% of shareholders’ equity.
29.2
06
(5.7)
07
(3.3)
03
40
20
(20)
(40)
(60)
0
25.8
04
23.7
05
8.9
06
7.8
07
1.4
03
0
7
5
7.3
04
7.9
05
2
7
06
10
07
(
1)
03
0
10
16
04
14
05
Board of Directors´ Report 2007 17