Volvo 2014 Annual Report Download - page 33

4 DISTRIBUTION AND SERVICE 5 PRODUCTS IN USE 6 RE-USE
INVESTMENTS A signifi cant portion
ofthe generated capital is normally trans-
ferred back into the operation. The capital is
used for investing in activities to strengthen
competitiveness 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.
• The service network supports customers
and maximizes their products uptime.
• The number of service points in both North
America and South America has been sig-
nifi cantly increased in recent years.
• The dealer and service networks in Central
and Eastern Europe have been optimized,
with increased service availability particu-
larly for Renault Trucks.
• 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.
• 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 comprise
largely of recoverable material. For
example, our trucks consist of 85%
recoverable material and are manufac-
tured from as much as one third recy-
cled material. Here, material strength
is the limiting factor.
The Volvo Group also offers refur-
bished spare parts as an option to new,
as a way to extend the useful life,
household with resources and reduce
costs for the customer.
The Volvo
Group’s income for
the year amounted
to SEK 2,235 M.
1 For further information, please see note 27 to the consolidated fi nancial statements.
2 According to the Board’s proposal.
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 2009–2013, SEK 13 billion or 77% of the
Volvo Group’s current taxes were paid in emerging
market countries as defi ned by the IMF. In 2014
approximately SEK 1.8 billion or 55% of the current
taxes were paid in emerging market countries.
VALUE BY STAKEHOLDER GROUP, SEK M 2014 2013
To suppliers – Purchases of goods and services 199,484 192,198
To employees – Salaries and remunerations137,533 36,212
To society – Social costs18,118 8,262
To society – Pension costs14,133 4,144
To society –Incometaxes paid 3,304 2,823
To creditors – Interestpaid 1,846 2,437
To theVolvo Group– Investments in tangible assets 7,093 8,281
To shareholders – Dividend 6,09026,084
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 businesses
and how the Group can seize the opportuni-
ties 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.
For more information, please see page
50.
As a manufacturer of commercial transport
solutions, our products play an important role
in daily life and are important components in
the transport system. Most of the negative
impact from our products occurs during the
use phase, and therefore we strive to offer
the right products and services to achieve
energy-effi cient and safe transport systems.
We also participate in the development
ofeffi cient transport systems by such initia-
tives as Green corridors, Bus Rapid Transit
(BRT) systems, renewable fuels and in
discussions around transport-policy issues.
In 2014, we renewed our partnership
with a new ambitious commitment to the
World Wide Fund for Nature’s Climate Savers
program.
For more information please see page
40.
A GLOBAL GROUP 2014 STRATEGY CREATING VALUE IN EVERY STAGE OF THE VALUE CHAIN
SHAREHOLDERS
AB Volvo's shareholders
normally receive a certain
portion of the retained
earnings in the form of a
dividend, after considera-
tion 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 per share, corre-
sponding to a total of SEK
6,090 M for 2014.
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