Volvo 2014 Annual Report Download - page 70

Year 2014 was characterized by mixed market
conditions and internal measures to increase
effi ciency and profi tability.
Chinese authority approved joint venture between the
Volvo Group and Dongfeng Motor Group
On January 7, 2014 the National Development and Reform Com-
mission (NDRC) in China gave its approval of the establishment of
a joint venture between the Volvo Group and Dongfeng Motor
Group Company Limited. Completion was subject to certain con-
ditions including the approval of other Chinese authorities. As
announced in January 2013, AB Volvo had signed an agreement
with the Chinese vehicle manufacturer Dongfeng Motor Group
Company Limited (DFG) to acquire 45% of a new subsidiary of
DFG, Dongfeng Commercial Vehicles (DFCV), which includes the
major part of DFG’s medium- and heavy-duty commercial vehicles
business. The transaction was completed in January 2015.
Divestiture of Volvo Rents completed
The divestiture of Volvo Rents was completed on January 31,
2014. The price amounted to USD 1.1 billion, corresponding to
SEK 6.9 billion.
Volvo Group divested commercial real estate
On March 28, 2014 companies in the Volvo Group signed an
agreement to sell commercial real estate to companies jointly
owned by Hemfosa Fastigheter AB and AB Sagax, and to compa-
nies owned by AB Sagax. The purchase consideration, on a cash
and debt free basis, was approximately SEK 2 billion.
Annual General Meeting of AB Volvo
The Annual General Meeting of AB Volvo held on April 2, 2014
approved the Board of Directors’ proposal that a dividend of SEK
3.00 per share be paid to the company’s shareholders.
Jean-Baptiste Duzan, Hanne de Mora, Anders Nyrén, Olof
Persson, Carl-Henric Svanberg and Lars Westerberg were ree-
lected as members of the AB Volvo Board. Matti Alahuhta, James
W. Griffi th and Kathryn V. Marinello were elected as new mem-
bers of the Board. Carl-Henric Svanberg was reelected as Chair-
man of the Board. The registered accounting fi rm Pricewater-
houseCoopers AB was reelected as the company’s auditor for a
period of four years. Carl-Olof By, representing AB Industrivärden,
Lars Förberg, representing Cevian Capital, Yngve Slyngstad, rep-
resenting Norges Bank Investment Management, Håkan Sand-
berg, representing Svenska Handelsbanken, SHB Pension Fund,
SHB Employee Fund, SHB Pensionskassa and Oktogonen and
the Chairman of the Board were elected members of the Election
Committee. A remuneration policy for senior executives was
adopted in accordance with the Board of Directors’ motion.
Moreover, the Meeting adopted the Board of Directors’ motion
concerning a long-term, share-based incentive program for a
maximum of 300 senior executives in the Volvo Group comprising
the years 2014–2016, including transfer of treasury shares to the
participants in the program as matching-and performance shares,
THE FIRST QUARTER
21/01/2014 Another fi rst for Volvo Group CO2-neutral production 22/01/2014 Chinese authority approves joint venture between the Volvo Group and Dongfeng Motor
Group 23/01/2014 Invitation to press and analyst conference in Stockholm 30/01/2014 Volvo scholarship for research on vehicular systems and hybrid technology
03/02/2014 Divestiture of Volvo Rents completed 06/02/2014 Report on the fourth quarter and the full year 2013 18/02/2014 Matti Alahuhta, James W. Griffi th
and Kathryn V. Marinello nominated to AB Volvo Board 20/02/2014 Truck deliveries in January 2014 28/02/2014 New number of votes in AB Volvo 03/03/2014
Annual General Meeting of AB Volvo 12/03/2014 AB Volvo publishes 2013 Annual Report 19/03/2014 Volvo Group introduces UD buses 20/03/2014 Truck
deliveries in February 2014 26/03/2014 AB Volvo publishes Sustainability Report 2013 28/03/2014 Volvo Group to divest commercial real estate 31/03/2014 New
number of votes in AB Volvo
Volvo Group Press releases 2014
During 2014
BOARD OF DIRECTORS’ REPORT 2014
GROUP PERFORMANCE
SIGNIFICANT EVENTS
Dongfeng is a new strong brand within the Group’s truck business.
66