Volvo 2007 Annual Report Download - page 48
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Please find page 48 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.lease in the balance sheet, resulting in reve-
nues from a sale being allocated during the
length of a contract as if they were leasing
agreements.
Shares and participations amounted to SEK
2.2 billion at December 31, 2007, a decrease
from year-end 2006 by SEK 4.7 billion, mainly
as a result of the reclassification of Nissan
Diesel from associated company to group
company after AB Volvo’s acquisition of the
remaining shares in Nissan Diesel.
The net value of assets and liabilities related
to pensions and similar obligations amounted
to SEK 7.6 billion at December 31, 2007, an
increase of SEK 1.0 billion compared to year-
end 2006. The increase is due to a higher
level of post-employment benefits as a result
of the acquisition of Nissan Diesel. Prepaid
pensions amounted to SEK 2.1 billion, which
were on same level as in the preceding year-
end. Post-employment benefits valued at SEK
2.6 billion were reported outside of AB Volvo’s
balance sheet, a decrease of SEK 0.3 billion
compared to year-end 2006.
The value of the Volvo Group’s inventory
increased during 2007 by SEK 9.4 billion. The
increase is mainly related to the truck business
and to construction equipment, including acqui-
sitions. During the year, the value of finished
products rose by SEK 7.7 billion, while produc-
tion and other material rose by SEK 1.7 billion.
The customer financing receivables amounted
to SEK 78.8 billion at December 31, 2007. In
total, customer financing receivables increased
by SEK 14.1 billion since year-end 2006,
mainly as a result of higher levels of financial
leasing and installment credits.
Marketable securities decreased by SEK
3.9 billion during 2007, a decrease which is
mainly related to holdings in government secu-
rities and real estate financial institutions.
Cash and cash equivalents increased by SEK
3.8 billion during the same period of time.
Exchange-rate differences increased assets
further by SEK 1.3 billion, which primarily
affected Customer financing receivables,
inventories and assets under operating
leases.
Shareholder’s equity amounted to SEK 82.8
billion, corresponding to an equity ratio of
25.7%. As a consequence of the acquisitions
and transfer of capital to the shareholders dur-
ing 2007, the Industrial Operations had a net
financial debt amounting to SEK 4.3 billion at
the end of December 2007.
44 Board of Directors’ Report 2007