Volvo 2013 Annual Report Download - page 2

A GLOBAL GROUP
CEO comment 2
OPERATING CONTEXT
Transport needs today and tomorrow 4
STRATEGY
Vision, Core values, Code of conduct
and Wanted position 10
BUSINESS MODEL
New products 28
Brands 30
Effi cient products 36
Product development 32
World-class services 38
A high-performing organization 40
Industrial structure 44
Effi cient production and responsible sourcing 46
GROUP PERFORMANCE
Global strength 50
Development by continent − Europe 52
Focus Renault Trucks 54
Development by continent − North America 56
Development by continent − South America 58
Focus Brazil 60
Development by continent − Asia 62
Focus Quester 64
BOARD OF DIRECTORS’ REPORT
Signifi cant events 68
Trucks 72
Buses 74
Construction Equipment 76
Volvo Penta 78
Volvo Financial Services 80
Financial management 82
Shareholder value 83
The share 84
Risks and uncertainties 86
CORPORATE GOVERNANCE
Corporate Governance Report 90
Board of Directors and Secretary 98
Group Management 102
FINANCIAL INFORMATION
Financial information 2013 107
Financial performance 108
Consolidated income statement 108
and Other comprehensive income
Financial position 112
Consolidated balance sheet 112
Consolidated cash-fl ow statements 114
Changes in consolidated Shareholders’ equity 116
Notes to consolidated fi nancial statements 117
Parent Company AB Volvo 168
Proposed remuneration policy 178
Proposed disposition of unappropriated earnings 179
Audit Report for AB Volvo 180
Eleven-year summary 181
Our material issues 190
Fold-out Defi nitions
Annual General Meeting
Without the type of products and services the Volvo Group provides,
the societies where many of us live would not function. Like a circu-
latory system, our trucks, buses, engines, construction equipment
and fi nancial services are involved in many of the functions that
most of us rely on every day.
For instance, according to our calculations, 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, offi ces, 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.
WE MOVE
the
WORLD
TOGETHER
This report contains ‘forward-looking statements’. Such statements
refl ect management’s current expectations with respect to certain
future events and potential fi nancial performance. Although the
Company believes that the expectations refl ected 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 fi nancial per-
formance 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 busi-
ness and operating initiatives, (iii) changes in the regulatory environ-
ment and other government actions, (iv) fl uctuations 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 NASDAQ OMX 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 fi nancial reports are presented on pages
68–89 and 107–179 in the printed version and has been audited by
the company’s auditors.