Volvo 2010 Annual Report Download - page 118

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PARENT COMPANY AB VOLVO
Corporate registration number 556012-5790.
INCOME STATEMENT
Amounts in SEK M unless otherwise specified. Amounts within paren-
theses refer to preceding year.
Board of Directors’ report
AB Volvo is Parent Company of the Volvo Group and its operations com-
prise the Group’s head office with staff together with some corporate
functions.
Income from investments in Group companies includes dividends
amounting to 8,145 (10,275) and Group contributions and transfer price
adjustments, net of 5,126 (neg: 16,859). Dividends were received from
Volvo Holding Sverige AB, 5,200, Volvo Construction Equipment NV,
1,801 and from Volvo Korea Holding AB, 1,000.
The carrying value of shares and participations in Group companies
amounted to 59,429 (57,062), of which 58,903 (56,536) pertained to
shares in wholly owned subsidiaries. The corresponding shareholders’
equity in the subsidiaries (including equity in untaxed reserves but exclud-
ing minority interests) amounted to 90,261 (91,944).
In 2010 shareholders’ contributions were made to Volvo Group Japan
Corporation, 3,493, consisting of preference shares in UD Trucks Corpo-
ration, and to Kommersiella Fordon Europa AB, 1,801.
Other shares and participations include the direct and indirect owner-
ship in Volvo Eicher Commercial Vehicles (VECV) for total amount of
1,845. In the consolidated accounts of the Volvo Group, VECV is reported
as a joint venture and consolidated according to the proportional method.
The indirect ownership is an effect of the acquisition of 8.1% of Eicher
Motors Limited, which is the other venturer of VECV. These shares are not
separately valued as they form a part of the indirect ownership in VECV.
Shares and participations in non-Group companies included 170
(206) 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
322 (300). Shares and participations in non-Group companies include
listed shares in Deutz AG with a carrying value of 458, corresponding
to the quoted market price at year-end. In 2010 revaluation of the
ownership has increased the value by 172, recognized in equity and
included in Other comprehensive income in the income statement.
Financial net debt amounted to 30,376 (18,922).
AB Volvo’s risk capital (shareholders’ equity plus untaxed reserves)
amounted to 41,857 corresponding to 54% of total assets. The com-
parable figure at year-end 2009 was 45%.
SEK M 2009 2010
Net sales Note 2 698 564
Cost of sales Note 2 (698) (564)
Gross income 00
Administrative expenses Note 2, 3 (485) (652)
Other operating income and expenses Note 4 (13) 8
Income from investments in Group companies Note 5 (6,584) 13,252
Income from investments in associated companies Note 6 4(94)
Income from other investments Note 7 23
Operating income (7,076) 12,517
Interest income and similar credits Note 8 10
Interest expenses and similar charges Note 8 (393) (893)
Other financial income and expenses Note 9 (8) (65)
Income after financial items (7,476) 11,559
Allocations Note 10 700 0
Income taxes Note 11 4,537 (1,231)
Income for the period (2,239) 10,328
Other comprehensive income  
Income for the period (2,239) 10,328
Available-for-sale investments 74 172
Other comprehensive income, net of income taxes 74 172
Total comprehensive income for the period (2,165) 10,500
FINANCIAL INFORMATION 2010
114