Volvo 2007 Annual Report Download - page 47
Download and view the complete annual report
Please find page 47 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.Financial position
– continued strong position
The Board of Directors proposes an ordinary dividend of SEK 5.50 per share,
corresponding to a yield of 5.1%, based on the share price at year-end.
Balance sheet
Total assets in the Volvo Group amounted to
SEK 321.6 billion at December 31, 2007, an
increase of SEK 63.2 billion compared to year-
end 2006. The increase is mainly a result of
the acquisitions made during the year of Nis-
san Diesel, Ingersoll Rand’s Road Develop-
ment division and Lingong. In total, the acqui-
sitions increased the Volvo Group’s total assets
by SEK 50.9 billion during 2007. The Group’s
total goodwill, reported under intangible
assets, amounted to SEK 20.0 billion at
December 31, 2007, an increase by SEK 11.1
billion since year-end 2006.
Investments in development costs amounted
to SEK 2.1 billion in 2007. The acquisition of
Nissan Diesel in March 2007 contributed with
SEK 3.1 billion, resulting in a net value of
development costs of SEK 11.2 billion Decem-
ber 31, 2007.
Other intangible assets amounted to SEK
3.8 billion at the same time, an increase of
SEK 2.9 billion compared to December 31,
2006, as a result of acquired trademarks and
distribution networks during 2007.
The Volvo Group’s tangible assets increased
during 2007 by SEK 14.8 billion. Property,
plant and equipment increased by SEK 12.8
billion, mainly as a result of the acquisition of
Nissan Diesel.
Assets under operational leasing increased
by SEK 2.0 billion. Sales with buyback agree-
ments are reported as assets under operating
Net fi nancial position
Industrial operations Volvo Group
SEK M 2006 2007 2006 2007
Long-term customer-fi nance receivables – – 32,089 40,486
Long-term interest-bearing receivables 3,514 3,928 3,150 3,150
Short-term customer-fi nance receivables – – 32,653 38,361
Short-term interest-bearing receivables 9,751 9,773 966 1,380
Non-current assets held for sale, interest-bearing 5 0 5 0
Marketable securities 20,324 16,488 20,342 16,490
Cash and bank 9,618 13,538 10,757 14,544
Total fi nancial assets 43,212 43,727 99,962 114,411
Provision for post employment benefi ts 8,664 9,746 8,692 9,774
Interest-bearing liabilities 11,465 38,286 66,957 108,318
Liabilities associated with assets held for sale,
interest-bearing 7 0 7 0
Total fi nancial debt 20,136 48,032 75,656 118,092
Net fi nancial position 23,076 (4,305) 24,306 (3,681)
Change in net fi nancial position, Industrial operations
SEK bn 2006 2007
Beginning of period 18.7 23.1
Cash fl ow from operating activities 21.9 24.4
Investments in fi xed assets (10.2) (10.3)
Disposals 0.9 1.1
Operating cash-fl ow 12.6 15.2
Investments and divestments of shares, net (5.8) 0.4
Acquired and divested operations, net 0.6 (25.9)
Change in provision for postemployment benefi ts 3.3 –
Capital injections to/from Customer Finance operations 0.9 2.1
Currency effect 1.0 1.0
Payment to AB Volvo shareholders (6.8) (20.3)
Other 0.2 0.1
Total change 6.0 (27.4)
Net fi nancial position at end of period 24.7 (4.3)
2006 is restated according to new reporting structure for the Volvo Group. Net fi nancial position for Industrial operations as at
December 31, 2006 changed from SEK 24.7 billion to SEK 23.1 billion.
Board of Directors’ Report 2007 43