Volvo 2012 Annual Report Download - page 2

Without the products and services of the Volvo
Group the societies where many of us live
would not function. Like lifeblood, our trucks,
buses, engines and construction equipment are
involved in many of the functions that most of
us rely on every day.
For instance, one in seven meals eaten in
Europe reaches the consumers thanks to trucks
from the Volvo Group rolling on the roads of the
continent. Buses are the most common type of
public transportation in the world, helping many
people to reach work, school, vacations, friends
and family. If all the Volvo buses in the world were
to start at the same time, they would transport
more than 10 million people. Our construction
machines are used when building roads, houses,
hospitals, airports, railroads, factories, offices,
shopping centers and recreational facilities.
These are just a few examples. In this
Annual Report, you can learn more about the
Volvo Group – Together we move the world.
A Global Group
2 CEO comment
OPERATING CONTEXT
4 Future transport needs
STRATEGY
8 Strategic approach
BUSINESS MODEL
22 Product offering
28 World-class services
30 A high-performing organization
32 Industrial structure
34 Production
35 Responsible sourcing
GROUP PERFORMANCE
36 Global strength
38 Development by continent − Europe
40 Focus new Volvo FH
42 Development by continent − North America
44 Development by continent − South America
46 Focus Peru
48 Development by continent − Asia
50 Focus Dongfeng
52 Focus Africa
Board of Directors’ report
56 Significant events
58 Trucks
60 Buses
62 Construction equipment
64 Volvo Penta
66 Volvo Financial Services
68 Financial management
69 Shareholder value
70 The share
72 Risks and uncertainties
Corporate Governance
74 Corporate Governance Report
80 Board of Directors and Secretary
84 Group Management
Financial information
89 Financial information 2012
90 Financial performance
90 Consolidated income statement
and Other comprehensive income
94 Financial position
94 Consolidated balance sheet
96 Consolidated cash-flow statements
98 Changes in consolidated Shareholders’ equity
99 Notes to consolidated financial statements
160 Parent Company AB Volvo
172 Proposed remuneration policy
173 Proposed disposition of unappropriated earnings
174 Audit Report for AB Volvo
175 Eleven-year summary
Fold-out Definitions
Annual General Meeting This report contains ‘forward-looking statements’. Such statements reflect management’s current expectations
with respect to certain future events and potential financial performance. Although the Company believes that the
expectations reflected in such forward looking statements are reasonable, no assurance can be given that such
expectations will prove correct. Such statements are subject to risk and uncertainties and such future events and
financial performance could differ materially from those set out in the forward looking statements as a result of,
among other factors, (i) changes in economic, market and competitive conditions, (ii) success of business and
operating initiatives, (iii) changes in the regulatory environment and other government actions, (iv) fluctuations in
exchange rates and (v) business risk management. This report does not imply that the company has undertaken
to revise these forward-looking statements, beyond what is required under the company’s registration contract
with OMX Nordic Exchange Stockholm if and when circumstances arise that will lead to changes compared to the
date when these statements were provided. The Volvo Group’s formal financial reports are presented on pages
56–73 and 89–173 in the printed version and has been audited by the company’s auditors.
WORLD
TOGETHER WE MOVE THE