Volvo 2014 Annual Report Download - page 170

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Parent Company AB Volvo
Corporate registration number 556012-5790.
Amounts in SEK M unless otherwise specifi ed. Amounts within parentheses refer to the preceding year, 2013.
Board of Directors’ report
AB Volvo is the Parent Company of the Volvo Group and its operations
comprise of the Group’s head offi ce with staff together with some corpo-
rate functions.
Income from investments in Group companies include dividends
amounting to 6,826 (1,689) and transfer price adjustments and royalties
amounting to an expense of 1,120 (1,128). Dividend received from Volvo
Holding Sverige AB amounted to 4,500 and dividend received from Volvo
Korea Holding AB amounted to 1,300.
Shareholders’ contribution has been given to Volvo Powertrain AB by 400.
The carrying value of shares and participations in Group companies
amounted to 61,283 (60,763), of which 60,241 (59,870) 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 101,274 (101,937).
Investments in joint ventures and associated companies included 3,317
(3,337) in joint ventures and associated companies that are recognized in
accordance with the equity method in the consolidated accounts. The
portion of shareholders’ equity in joint ventures and associated compa-
nies pertaining to AB Volvo amounted to 2,781 (2,519).
The carrying value of the listed company Eicher Motors Ltd, included in
other shares and participations, has been revalued to fair value and
increased the holding by 3,037 (415).
Financial net debt amounted to 35,967 (33,685).
AB Volvo’s risk capital (shareholders’ equity plus untaxed reserves)
amounted to 38,290 (34,589) corresponding to 46% (45%) of total assets.
Events after Balance Sheet date
In the beginning of January 2015 Volvo Group completed the acquisition
of 45% of the shares in Dongfeng Commercial Vehicles Co., Ltd, DFCV, in
China. The ownership in DFCV will be classifi ed as an associated com-
pany and will be recognized at cost including transaction costs in the
parent company. The purchase consideration amounted to approximately
SEK 7 billion.
INCOME STATEMENT
SEK M 2014 2013
Net sales Note 2 696 659
Cost of sales Note 2 (696) (659)
Gross income 00
Administrative expenses Note 2, 3 (1,011) (974)
Other operating income and expenses Note 4 (65) (83)
Income (loss) from investments in Group companies Note 5 5,572 (541)
Income from investments in joint ventures and associated companies Note 6 26 0
Income from other investments Note 7 7 1
Operating income 4,529 (1,597)
Interest income and similar credits 18
Interest expenses and similar charges Note 8 (947) (1,139)
Other fi nancial income and expenses Note 9 (19) (57)
Income after fi nancial items 3,564 (2,785)
Allocations Note 10 3,505 831
Income taxes Note 11 (379) 333
Income for the period 6,690 (1,621)
OTHER COMPREHENSIVE INCOME
Income for the period 6,690 (1,621)
Items that may be reclassifi ed subsequently to income statement:
Available-for-sale investments 3,037 415
Other comprehensive income, net of income taxes 3,037 415
Total comprehensive income for the period 9,727 (1,206)
FINANCIAL INFORMATION 2014
166