Volvo 2013 Annual Report Download - page 29

4 DISTRIBUTION AND SERVICE 5 PRODUCTS IN USE 6 RE-USE
SHAREHOLDERS AB
Volvo’s shareholders normally
receive a certain portion of
the retained earnings in the
form of a dividend, after con-
sideration has been given to
the Group’s need for capital
for continued development
according to the strategies.
The Board of Directors has
proposed a dividend of SEK
3.00 (3.00) per share, corre-
sponding to a total of SEK
6,084 M (6,083) for 2013.
Taxes
The Group’s Code of Conduct states that “The Volvo Group shall
comply with the tax laws and regulations of each country in which it
operates. Where tax laws do not give clear guidance, prudence and
transparency shall be the guiding principles.”
The Volvo Group does not take part in aggressive tax planning
byplacing subsidiaries in tax havens. In the period 2009–2012,
SEK11 billion or 79% of the Volvo Group’s current taxes were
paidin emerging market countries as defi ned by the IMF. In 2013
approximately SEK 2.2 billion or 70% of the current taxes were paid
in emerging market countries.
INVESTMENTS A signifi cant portion of
the generated capital is transferred back
into theoperation. The capital is used for
investing in activities to strengthen compet-
itiveness and create long-term value for the
Group and its stakeholders.
• The Volvo Group’s products are distributed
through our own as well as independent
dealerships.
• Since the year 2000 net sales for the
Volvo Group has risen by 110% to
SEK272.6 billion in 2013.
• Selling expenses in the Industrial Opera-
tions amounted to SEK 26.9 (26.2)
billion in 2013, corresponding to 10.1%
(9.0) of sales. Administration expenses
amounted to SEK 5.8 (5.5) billion,
corresponding to 2.2% (1.9) of sales.
To meet society’s need for effi cient trans-
port solutions, cooperation is necessary.
It is in dialogue with our customers that we
can fully understand what drives their busi-
nesses and how the Group can seize the
opportunities to build our shared success.
Customer satisfaction is not only about the
quality and performance of our products,
but also about how customers are treated
and how services are delivered.
• Trucks manufactured by the Volvo Group
transport goods and products, our buses
are important parts of effi cient transport
systems and our industrial engines are
used, for example, as reserve power in
hospitals. These are only a few examples
of our products’ and services’ contribution
to society.
• More than 2 million trucks and 100,000
buses, which the Group manufactured in
the past ten years, operate on roads
worldwide. At construction sites, there
are more than half a million units of con-
struction equipment that we manufac-
tured in the last ten years.
As a manufacturer of commercial transport
solutions, our products play an important
role in daily life and are important compo-
nents in the transport system. The Group
also participates in the development of effi -
cient transport systems by such initiatives
as Green corridors, Bus Rapid Transit (BRT)
systems, renewable fuels and in discussions
around transport-policy issues.
Most of the negative impact from our
products occurs during the use phase, and
therefore we strive to offer the right prod-
ucts and services to achieve energy-effi cient
and safe transport systems.
• Remanufactured components are impor-
tant to the offering, which can help to
reduce ownership and operating costs
for customers.
• The Volvo Group takes into account
resource effi ciency and recycling
potential already in the development
ofits products.
• The Volvo Group has manuals and other
tools to assist disassembly workers
extract the most from used vehicles.
The Volvo Group’s products com-
prise largely of recoverable material.
For example, our trucks consist of
85% recoverable material and are
manufactured from as much as one
third recycled material. Here, mate-
rial strength is the limiting factor.
The Volvo Group also offers
refurbished spare parts as an option
to new, as a way to extend the use-
ful life, household with resources
and reduce costs for the customer.
SEK M 2013 2012
To suppliers – Purchases of goods and services 192,198 207,808
To employees – Salaries and remunerations136,212 39,179
To society – Social costs18,262 9,686
To society – Pension costs14,144 3,965
To society –Incometaxes paid 2,823 5,366
To creditors – Interestpaid 2,437 2,900
To theVolvo Group– Investments in tangible assets 8,281 9,338
To shareholders – Dividend 6,08426,083
The
Volvo Group’s
income for
the year
amounted to
SEK3,802 M
(11,378).
1 For further information, please see note 27 to the consolidated fi nancial statements.
2 According to the Board’s proposal.
VALUE BY STAKEHOLDER GROUP
25