Volvo 2014 Annual Report Download - page 159

155
Year of maturity on
Non-current loans
Not utilized
non-current credit
facilities1
2016 44,856 5,315
2017 27,544 11,430
2018 6,171 –
2019 11,255 21,907
2020 1,073 –
2021 or later 17,132 –
Total1108,031 38,652
1 Current not utilized credit facilities amounted to SEK 500 M.
Read more in Note 15 Customer-fi nancing receivables about maturities of
non-current receivables in Customer Finance Operations.
AB Volvo issued a hybrid bond via its wholly-owned subsidiary Volvo
Treasury AB in 2014, amounting to EUR 1.5 bn in order to further strengthen
the Volvo Group’s balance sheet and prolong the maturity structure of the
debt portfolio. The bond is accounted for as a loan and subordinated to all
other fi nancial liabilities currently outstanding. The hybrid bond will be eligible
for 50% equity treatment from both Moody’s and S&P when calculating
the Volvo Group’s credit ratios. The hybrid bond consists of two tranches,
EUR 0.9 bn with a fi rst call after 5.5 years and a maturity in 60.5 years,
EUR 0.6 bn, with a fi rst call after 8.25 years and a maturity in 63.25 years.
The predominant part of non-current loans that mature in 2016 and 2017
is an effect of the Volvo Group’s normal business cycle, with shorter dura-
tion in the Customer Finance portfolio compared to Industrial Operations.
Granted but not unutilized credit facilities consists of stand-by facilities
for loans. A fee is charged for granted credit facilities, this is recognized in
profi t or loss within other fi nancial income and expenses.
On July 1, the Volvo Group signed new credit facilities of EUR 3.5 bn.
The new facilities replace the company’s existing revolving credit facilities
amounting to EUR 3.2 bn signed in 2011 and 2012. The new facilities
consist of one facility amounting to EUR 2,300 M with a tenor of fi ve years
and a second one amounting to EUR 1,200 M with a tenor of three years.
Both have one plus one year extension options.
Current liabilities
Current liabilities Dec 31,
2014 Dec 31, 2013
Bank loans 13,705 10,992
Other loans 26,249 40,560
B/S Current liabilities139,953 51,552
1 Of which loans raised to fi nance the credit portfolio of the Customer Finance
Operations amounted to SEK 29,672 M (44,188) and outstanding derivatives, at
fair value, amounted to SEK 455 M (1,753).
Bank loans include current maturities of non-current loans SEK 6,695 M
(3,254). Other loans include current maturities of non-current loans, SEK
22,458 M (21,848), and commercial papers, SEK 0 M (13,528).
Non-interest-bearing current liabilities amounted to SEK 96,440 M
(88,746), or 71% (63) of the Volvo Group’s total current liabilities.
Other current liabilities Dec 31,
2014 Dec 31, 2013
Advances from customers 4,784 3,280
Wages, salaries and withholding taxes 9,088 8,261
VAT liabilities 1,875 1,971
Accrued expenses and prepaid income 11,029 11,161
Deferred leasing income 2,022 1,882
Residual value liability 2,950 2,186
Other fi nancial liabilities 192 160
Other liabilities 4,682 4,271
Outstanding interest and currency risk derivatives
1331 177
Outstanding raw material derivatives 18 44
B/S Other current liabilities 36,970 33,393
1 Read more in Note 30 Financial Instruments regarding current part of
Outstanding interest and currency risk derivatives.
Current liabilities also include trade payables of SEK 56,647 M (53,901),
current tax liabilities of SEK 2,693 M (1,120) and non-interest-bearing
and interest-bearing liabilities held for sale, as disclosed in Note 3.
Secured current liabilities amounted to SEK 2,862 M (1,747). Ofcurrent
liabilities including trade payables, SEK 96,736 M (105,693) pertains to
fi nancial instruments.
Read more in Note 30 about Financial instruments.
Read more in Note 23 regarding assets pledged.
Assets pledged Dec 31,
2014 Dec 31, 2013
Property, plant and equipment – mortgages 88 84
Assets under operating leases 209 57
Receivables 7,343 4,897
Cash, loans andmarketable securities 40 40
Total 7,680 5,078
Total liabilities for which assets are pledged amounted to SEK 7,340 M
(4,928).
Under the terms of asset-backed securitizations, SEK 7,088 M of secu-
rities have been issued tied to US-based loans, secured by customer
fi nancing-receivables, SEK 7,343 M, recognized on the balance-sheet
with trucks and construction equipment assets as collaterals, whereof
SEK 4,410 M were signed in 2014.
NOTE 23 ASSETS PLEDGED
FINANCIAL INFORMATION 2014