Financial and Operating Statistics 1982/83
VOLVO
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VOLVO FINANCIAL AND OPERATING STATISTICS_
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Inside this book
This edition of Volvo Financial and Operating Statistics has about the same contents as its predecessors: selected data about the Volvo Group, when available for up to ten years in a row up to and including 1982.
We have included so me events and figures from ou r report for the first three months of 1983.
Beijerinvest AB (now AB Fortas) and its subsidiaries are consolidated, effective In the seeond quarter of 1981.
Volvo White Truck Corporation in the United States is included in the consolidaled accounts effective September 1, 1981.
The sale of lovestment AB Beijer to Volvo shareholders did not occur until the spring of 1983.
July 1, 1983
Notes
Figures in Swedish kronor (SEK) may be transialed at the approximate 1982 year-end exchange rates as tollows:
GBP 1.00=SEK 11.82 USD 1.00=SEK 7.29 DEM 1.00=SEK 3.07 FRF 1.00=SEK 1.08 BEC 1.00=SEK 0.16 LUF 1 .OO=SEK 0.15 CHF 1.00=SEK 3.66 NLG 1 .OO=SEK 2.77
During the years 1973-1982, inflation in Sweden was as follows:
1973 8 percent 197 4 12 percent 1975 1 O percent 1976 1 O percent 1977 1 3 percent 1978 8 percent 1979 1 O percent 1980 14 percent 1981 1 O percent 1982 1 O percent
Volvo shares are traded on the Stockholm Stock Exchange and on the stock exchanges in London, Frankfurt am Main, Dusseldort, Hamburg and Oslo.
Contents
Page
Volvo in brief 1
Financial Statistics, Consolidated 7 Financial Statistics, AB Volvo 15 Operating Statistics, Consolidated 19
Administration 27
Financial Reports
These reports are published regularly by Volvo:
Preliminary Report on the year's operations Definitive Report on the year's operations AnnuaiReport
Interim Report, first quarter Financial and Operating stalistics Interim Report, first six months Interim Report, first three quarters
end of January end of March early May end of May early July end of August end of November The above reports as weil as other information and printed annual reports of publicly traded campanies with in the Volvo Group may be obtained from:
Rnancial Relations AB Volvo
S-40508 Göteborg, Sweden
Volvo in brlef
Page
Htstory and bustness 2 Group structure, early 1983 3 Sales organtzation 5 C!iprtal expet~dtture and fiMncmg
Petsonnel General plans and goals 6 Research and development
Shareholder'S
VOLVO IN BRIEF
The Volvo Group is the largest industrial enterprise by tumover in the Nordie Area. Following the acquisition of Beljerinvest AB, effective for accounting purposes from April 1 , 1981 , Volvo is an in dustrial group with opera- tions primarily in four areas of business: transport vehi- cles, engineering, energy and food processing. Volvo also earrias on trading actlvities in goods and services w hi ch support the industrial activities. The objective of the financial operations within Volvo is to create in- creased resources for the Group and to give it con- tinued strength and growth potential. The Volvo Group is now among the 50 largest industrial enterprises in the world outside the United States and its products are marketed in slightly over 120 countries.
History and business
Transport equlpment- producflon In Sweden AB Volvo commenced business as a wholly-owned sub- sidiary of AB Svenska Kullagerfabriken, SKF, in 1926 in Göteborg, Sweden, where the Group still has its head- quarters and its targest plant. The first Volvo productian ear left the assembly Iine on April 14, 1927, and the first truck in 1928. The original productian models were de- signed to withstand the rigors of Sweden's rough roads and cold temperatures. This emphasis on durability has been a feature of Volvo products ever since.
Following the acquisition in 1931 of Sköfde Gjuteri och Mekaniska Verkstad AB (now Volvo Skövde Plants), which manufactores engines for the Volvo vehicles, the Company developed its business from an assembly to a manufacturing operation. This was the first of a number of acquisitions of manufacturing companies, forming the foundation for the development of the Volvo Group. In 1941 AB Volvo acquired a majority holding in Svenska Flygmotor AB (now Volvo Flygmotor AB). Köpings Mekaniska Verkstads AB (now part of Volvo Compo- nents Corporation) was acquired in 1942, AB Bolinder- Munktall (now Volvo BM AB) in 1950 and Olofström AB (now Volvo Olofström Plants) in 1969.
In the 1960s Volvo's Swedish ear assembly, parts hand- ling and Group head office were transferred to a new camplex at Torslanda, Göteborg, which has since been expanded in several steps. The smaller Kalmar assam- bly plant, designed for completely different productian methods and new forms of work organization, which in effect do away with assembly Iine techniques, was com- pleted in 197 4.
Trucks are assembled at the Lundby Plant. Göteborg, since the late 1920s. At the end of 1981 assembly op- erations startad in the newly constructed plant in the Tuve area, Göteborg.
The first Volvo bus chassis were produced in 1932 and a separate bus chassis plant in Borås startad productian in 1978. A body productian plant in Säffle was included in 1982.
As mentioned Volvo BM AB was acquired in 1950. Volvo had then produced farm tractors since 1944 and the two productians were merged.
The farm tractors and other farm equipment machinery has now been disposed of and the last farm tractor medel was out of productian in the summer of 1983.
The cooperative contract with Oy Valmet, Finland re- garding farm tractors means that Volvo BM now is a company specializing in construction equipment, supplemented by productian öf components for farm tractors and forest machinery for Oy Val m et that startad in 1982.
Volvo Penta (marine and industrial engines) has its orlgin in Skövde where the en gines are produced. They are converted to their special use in Göteborg.
At Volvo Flygmotor (founded in 1930) engines for the Swedish Arrned Forces have been produced ever since; som e of the m under licence agreements with foreign producers.
Volvo Flygmotor concluded cooperation agreements with two U.S. companies, the Garrett Corporation and General Electric C o., in 1979 and early 1980, the re by laying the groundwork for greater emphasis on produc- tion of civilian aircraft engines.
Through other agreenients Volvo Flygmotor secured a leading position in the market for ear and boat heaters.
The principal productian facilities are located in Sweden, where Volvo has assembly plants for cars, trucks, buses, marine and industrial engines, construction equipment, and aircraft engines, as weil as factorias for productian of such vital components as engines, gear- boxes, axles, brakes and bodies.
Production outside Sweden
lncreased emphasis on productio n outside Sweden - up to now in the form of assembly operations, with the main components being delivered from the Group's Swedish factories- is in response to the need for close centact with major markets. lt also reflects the natural desire of some countries to have part of the manufactor- ing or assembly work carried out locally.
The first stage of a planned assembly plant in
Chesapeake, Virginia, in the United States was ready in 1976. The premises are used as an inspection and transshipment point for imported Volvo cars and trucks for the eastern part of the United States and fof bus production, which startad early in 1983.
Volvo has established wholly-owned assembly plants in Belgiull), Great Britain, the United States, Canada and Australia, and partly owned plants in The Netherlands, Iran, Malaysia, Thailand, Brazil and Peru.
Assembly work is also earriad out in other local facilities in Greece, Portugal, Morocco, Kenya, Mozambique, Venezuela and lndonesia.
In cooperation with Reanault and Peugeot, Volvo has a factoryat Douvrin in France for the manufacture of ear engines.
Following a cooperation agreement concluded in November, 1972, Volvo acquired a one-third interest in DAF Car BV., The Netherlands, in the beginning of 1973. In January 1975, Volvo acquired additional shares in the company and the name was changed to Volvo Car BV.
In May 1981 the Dutch Government increased its shareholding in Volvo ear BV to 70 percent through a special issue of new shares and Volvo Car Corporation's holding was reduced to 30 percent Volvo Car BV thus achieves an independent position but it is intended that it continues to conduct its operations in close coopera- tian with Volvo Car Corporation in the future.
In the beginning of 1983 the Dutch Government and Volvo Car Corporation jointly evaluated Volvo Car BV's situation, earnings and future prospects and, on the basis of such considerations, determined a Jurther sup- port program for the years 1984-1986.
VOLVO IN BAIEF
At the end of 1979, Volvo concluded an agreement on in dustrial cooperation in the passenger ear field with
Re-
gie Nationale des Usines Renault, France. Through this agreement, Renault assumed a minority interest in Volvo Car Corporation, a subsidiary of AB Volvo.
From J u ly 1 , 1981 Renault owns 15 percent of the s hare capitalin Volvo C ar Corporation. Renault has the option to convert a loan of SEK 80 M to shares during 1985 and 1986, after which its stake in the company would be 20 percent
The agreement with Renault aims at cooperation in re- search, product development and production. This ag- reement will strengthen the competitive ability of both campanies by means of expanded cooperation in the passenger ear field.
A truck and bus assembly plant partially owned by Volvo and Brazilian interests was constructed in Brazil. As- sembly of bus chassis startad at the end of 1979 and truck assembly operations startad in the seeond part of 1980.
In 1981 Volvo acquired most of the assets of White Motor Corp. in the United States and formed a new company, Volvo White Truck Corp., now headquartered in Greensboro, North Carolina.
The purchase included two assembly plants (Dublin, Vir- ginia and Ogden, Utah) and the cab factory (Orville, Ohio), sales branches plus parts distribution centers and inventory. Volvo also purehasad the modern range of heavy trucks that are adapted to the very specific de- mands of the US markel under the names of White and Autocar.
Volvo's acquisition of Beijerinvest
In mid-November 1980, the Boards of Diractors of AB Volvo and Beijerinvest AB announced a proposal for a merger of the two companies.
In exchange for each share in Beijerinvest, Volvo oftared - one s hare in Volvo
- two subordinated bonds totalin g SEK 1 05 -a cash payment of SEK 50.
Beginning with the seeond quarter of 1981, Beijerinvest AB and its subsidiaries have been a part of the Volvo Group. The acquisition occurred after the owners of ap- proximately 96 percent of Beijerinvest's shares had ac- cepted Volvo' s invitation in the beginning of 1981 .
After a certain restrueluring of the different parts of the acquired interests there now remains within the Group -a number of engineering campanies
- energy campanies
- food processing companies.
The major part of the s hare portfolio as weil as Kebo AB and AB Fannyudde tagether formed lnvestment AB Beijer. The s hares in this investment company we re offered to AB Volvo shareholders early in 1983.
Acqulsitions in 1982-ll3 In the energy seetar
During 1982 AB Volvo concluded an agreement with the principal owners of Hamilton Brothers Petroleum Corpo- ration in the United States whereby Volvo North America Corp. acquired approximately 25 percent of the shares in the petroleum corporation and a 50 percent interest in Hamilton Brothers O il Company, a management firm, from on e of the two principal owners of the latter com- pany, and also entered into a consortium agreement with the remaining principal owner and head of the Hamilton group, Mr. Frederic Hamilton.
Under the same agreement, Volvo Energy acquired ap- proximately 1 D percent of the shares in Hamilton O il Great Britain PLC, a British oil company Iisted on the London Stock Exchange, and has later purehasad addi- tional s hares in the company. After the recent merger between Hamilton Oil Great Britain PLC and Hamilton International Oil Co Volvo Energy's interest amounts to 8. 7 percent
Volvo's investment in the Hamilton group amounted to about USD 80M, excluding costs of USD 10M annually for a period of five years for participation in joint ven- tures.
The Hamilton group, with about 1 ,200 employees in 1 O countries, had sales of slightly more than one billion dollars in 1982. lt reported net income of USD 9 M.
Early June 1983 AB Volvo and SAGA Petroleum a.s.
Norway concluded a letter of intent by w h ich Volvo w iii participale in a new issue giving Volvo a 20 percent shareholding in SAGA Petroleum.·
Volvo also guarantees a subscription of NOK 250 M in a subordinated loan to SAGA Petroleum of NOK 600 M which will be floated on the Norwegian market Volvo will be oftared representation on the Board and Corporate Assembly of SAGA Petroleum, and entitled to
buy 20 percent of SAGA Petroleum's productian of pet- roleum from the Norwegian sector of the North Sea at market price and for disposal in Sweden. The agree- ment is subjaet to the approval of the Norwegian and Swedish authorities.
In other seefors
During the autumn of 1982 Volvo acquired 25 percent of the share capita! of Atlas Copco AB for SEK 686 M.
Later in the year approximately 7 percent of the share capita! of stora Kopparbergs Bergslags AB was acquired for a total of SEK 152M. This holding was increased to approximately 16 percent at the beginning of 1983. In February 1983, Volvo offered to subscribe for a five year convertible loan in the amount. of SEK 495 M, with in- terest at 9 percent The loan is convertible before the end of 1984 at a price of SEK 550 per share.
Following conversion, Volvo would have a 25 percent holding in Stora Kopparberg.
Group structure, early 1983 Transport Equipment
Transport vehicles continue to constilute Volvo's most important business sector. Volvo designs, manufaGtures and markats a !arge number of products and is one of the few campanies in the world with its own productian in virtually all categories of transport veliicles.
Volvo Car Corporation, now accounts for about 25 per- cent of the Group's annual sales.
The operating seetars included in Volvo Commercial Vehicles- Trucks, Buses, Construction equipment, etc.
- account for slightly lessthan 20 percent of Group sales on an annual basis.
Volvo Truck Corporation is one of the world' s largest producers of heavy trucks- number two in 1982.
Volvo Bus Corporation is now the ·fourth largest manu- facturer of heavy bus chassis in Europe. Volvo also de- velops complete systems for planning and supervising mass transportation.
Volvo BM AB is one of Europe's leading construction equipment companies. lts principal products are wheel loaders - a seetar in which Volvo BM is one of the two leading manufacturers in Europe- and articulated dump trucks, a segment where the company has capturad mo re than half of the world m arket.
VOLVO IN BRIEF
AB Volvo Penta's product range consists, to an increas- ing extent, of industriaJ engines. The unique designs have made Volvo Penta a leading name for marine en- gines used in both commercial and pleasure craft.
Volvo Flygmotor AB is on e of the few campanies in Europe with the capacity to develop jet engines. lts orientation for the future is towards both military and civil aircraft engines and other civil projects.
Engineering campanies
Wilh Sonesson AB, a Stockholm Iisted company in which Volvo holds an interest of slightly more than 60 percent, is the most important of the engineering cam- panies in the Volvo Group.
The group of engineering campanies also includes Koc- kums Jernverk, which produces steel ingots, iron cast- ings and stampings, as weil as Centro-Morg~rdshammar which produces heavy industrial equipment.
Energy Campanies
STC Scandinavian Trading Company AB (STC), through its subsidiary Scanoi/ AB, is one of the world's targest independent oil trading companies. The company also conducts international trading in commodities other than oil. STC's operations have been broadened in recent years.
Seandrill increases its investment in oil prospecting in Texas and neighboring states in the U.S. by drilling ever-deeper wells. At the end of 1982 the company had about 300 wells located over an area of 112,000 acres.
The trading operations within Seantrade comprise trad- ing in cement and the recovery of metats from scrap.
STC Finans has strengthened its position in the Swedish markel and acquired the Stockbroker firm Alfred Berg Fondkommission AB, Stockholm.
Since it was formed in 1980, Volvo Energy Corp. has been active primarily in prospecting for and recovery of oil and gas. lts first concession in the British seetar of the North sea in 1980 was followed by a seeond in the beginning of 1981. A seeond concession-Block 8/3- in the Norwegian seetar was accepted in August 1981.
Volvo Petroleum lnc., U.S.A., owns producing wellsand prospecting rights, mainly in the Southern states.
Volvo Enei'gy owns slightly more !han 20 percent of the share capita! of International Energy Development Cor- poration (lE DC), which has acquired a large nu m ber of concessions in Australia, in African countries and in the Middle East.
Volvo Energy also holds a 30 percent interest in Con- sate in Göteborg and a 8. 7 percent interest in Hamilton Oil Great Britain PLC.
Food process/ng campanies
A number of substantial food processing campanies are now part of the Volvo Group.
AB Felix International, Eslöv, parent company of the Felix group, is the targest company in the food process- ing group. lt carrieson productian in Sweden, Denmark and Austria, where most of its products are markel lead- ers. The corporate strategy is to continue to establish new units, with productian facilities, within the European Community.
Volvo's food processing group also comprises the fol- lowing companies:
Abba Ab, Uddevalla, with subsidiaries in Sweden, Den- mark and France, is Sweden's leading producer of pre- served fish products. The company, which mainly serves the Swedish market, also has sales campanies in Finland and West Germany.
AB Lithells. Sköllersta, produces and sells processad meats for retail outlets, street food stands and institu- tional customers in Sweden.
AB O Annerstedt, Stockholm, is a trading company that is also active internationally, dealing in such food prod- ucts as fresh and frozen meat, preserves, deep-frozen berrias and vegetables.
Sk~ne Erik AB, Malmö, specializes in packaged sandwich foods for consumers, and in delicatessen meats.
AB Ramlösa Hälsobrunn, Helsing borg, do minates-with ils Ramlösa and Porla bevarages - the Swedish markel for mineral water. The company's exports are expanding.
Management campanies
AB Volvator owns a number of campanies in the ear and truck retailing business and in the field of marine en- gines, primarily within Sweden. The group also includes subsidiaries that manufacture and markel recreational products as weil as components for the aulamobile in- dustry, among others.
Finance and insurance campanies
To finance sales in important markets, Volvo has be- come a major shareholder in finance campanies in Swe- den and Norway and owns a finance company in Switzerland, Volvo Finance SA, Geneva.
During 1981 Volvo Finance acquired a 9 percent interest in Pargesa Holding SA, which has a dominant interest in Paribas Suisse SA in Geneva.
In Sweden, a subsidiary company, Försäkrings AB VoJ- via, sells Volvo ear insurance, partly as an extension to the Volvo five-year "PV-guarantee" for cars sold and regisiered in Sweden.
Participations in other corporatlons
In 1982 and early 1983 Volvo acquired interests in Atlas Copco and stora Kopparberg (see page 3).
Atlas Copco AB develops, produces and markets pro- duels based on campressed air or hydraulics, as weil as rock drilling equipment, campressars and industrial tools.
Stora Kopparbergs Bergslags AB is one of Sweden's largest forest and forest product enterprises and one of the country's targest producers of hydroelectric power.
The Group also holds a 25 percent interest in AB Pripps Bryggerier, the leading brewery group in Sweden, with the remaining 75 percent being held by the Swedish Government.
VOLVO IN BRIEF
Sales organlzation
The Transport Equlpment operating sector of the Volvo Group has a worldwidesales network with its own sales companies in Sweden, Danmark, Finland, Norway, Great Britain, West Germany, Switzerland, Austria, The Netherlands, France, ltaly, Spain, the United States, Canada, Argentina, Brazil, Peru and Australia. Through its wholly owned subsidiary in Scandinavia, AB Volvator, Volvo owns or has interests in a number of dealerships in the Nordie countries, enabling it to participale directly in the structural changes and growth of sales in these important market areas.
Mo re than 2,500 dealers, so me of who m have mo re than one outlet, sell Volvo cars to the ultimata customer.
Approximately 7 percent of the dealerships are located in the Nordie area, 63 percent in Europe (excluding the Nordie area), 20 percent in North America, 4 percent in Australia and 6 percent in other markets.
Sales of the engineering companies' products are ear- riad out through a nu m ber of local sales campanies notably in Western Europe, North and Latin America.
The bulk of energy sales is abroad, mainly in the U.S.
Food processing campanies have !arge horne-market shares in Sweden, Denmark and Austria. There is a marked strategy to enlarge business abroad and 40 per- cent of sales now occur in markats outside Sweden.
Divided into market areas, 1982 Group sales were as follows:
SEKM %
Sweden 13,222 17
Nordie area, excluding Sweden 5,310 7 Europe, excluding Nordie area 20,452 27
North America 25,685 34
Other markats 10,955 15
Total 75,624 100
The Group considers that its marketing organization is weil equipped to handie the increasing vol u me of sales expected in the future. In order to develop sales in mar- kats outside Europe and North and south America, the Group created a subsidiary, Volvo International Develop- ment Corporation. This unit evaluates the particular re- quirements of developing markets, including possibilities for local assembly or manufacture of products. lt also markets the Group's products in these areas.
Capital expendlture and financing
Over the five-year period 1978-1982, the Group in- vested some SEK 8,000 M in property, plant and equip- ment, the bulk or approximately 65 percent of it in Swe- den. Most investments has related to the gradual expan- sion of productive capacity, but investment in new facilities for technological development, and for the strengthening of the marketing organization, has also been significant.
lnvestment by operating seetar was (SEK M):
1982 %
C ars 575 24
Trucks and Buses 388 17
Construction equipment, etc. 98 4 Marine and industrial engines 17 1
Aircraft engines, etc. 217 9
Engineering campanies 115 5
Energy companies 846 36
Food processing companies 46 2
Other operations 44 2
Group total 2,346 100
lovestments which had been approved but not yet car- ried out amounted at year-end to SEK 2,800 M, com- pared with SEK 3,252 M on the same date a year ear- liar. Payments are scheduled as follows over the next few years: Approximately SEK 1,390 M in 1983 and app!oxlmately SEK 1,41 O M in 1984 or later years.
The distribution by operating seetars of the investments that had been approved through December, 1982 was as follows (SEK M):
C ars
Commercial vehicles Energy campanies Other operating sectors and joint investments Total
730 680 790
600 2,800 Du ring the next few years the investments for the Cars and Trucks operations as weil as in the energy field will be substantial.
The Group's operations have in recent years been characterized by a continued high rate of expansion.
Warking capita l over the period has req u i red conside r- able additions as the growing business volume and in- flationary trends have made heavy demands on capita!
for inventories and receivables.
Operating results and the Group's policy of consolida- tian have made possible a large measure of internally generaled financing of investments. The Group' s un- taxed reserves rase by so me SEK 3,600 M between 1978 and 1982.
Personnel
At December 31, 1982 the Group had 75,100 employees worldwide, 56,700 of whomin Sweden.
Volvo Group, number of employees:
Operating sector C ars
Trucks Buses
Construction equipment, etc Marine and industrial engines Aircraft engines,etc
Volvator Group's dealers (Nordic countries) Engineering companies Energy campanies
Food processing campanies Other operating seetars and central services
Group total
Y ear-end 1982 27,950 15,800 1,600 5,400 2,550 2,950 4,050 8,050 350 4,650 1,750 75,100
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VOLVO IN BAI-
EFGeneral plans and goals
In 1982 the Volvo Group was the largest industrial or- ganization in the Nordie area in terms of sales. The Group's export sales from Sweden accounted for ap- proximately 11 percent of total Swedish exports in 1982.
The Group is the largest manufacturer of cars, trucks, buses and construction equipment in the Nordie area.
As a resull of its product development programs the Volvo Group has a competitive range of products which is weil adapted to current markel needs. lt is the policy of the Group to continue to invest in the development and improvement of transpartatian products, with em- phasis on g reater economy, quality and safety. The Group has been able to save certain product develop- ment costs as a result of associations with European automobile and truck manufacturers.
The Engineering Campanies group has been reshaped in recent years. The acquisitions, the merger of similar operations and the liquidation of unprofitable actlvities have resulted in a substantial restrueluring of operations, which has led to increased profitability and g reater com- pelitiveness internationally.
New products have been developed for international markets, notably within the seetars for braking systems, electronic signaling and communications systems, and automatic braking levers. New applications for pumps, grinding milis and rock crushers are also being de- veloped continuously.
Crawford Door and lnsoport lndustries lnc. (U.S.A.) have made major new investments in expanded capacity outside Sweden, primarily in the Western Euro- pean and the North American markets. - The emphasis on energy operations will continue to be placed on prospecting for, and recovery of, petroleum - and on trading in petroleum and petroleum-basad products.
The establishment of productian within the EEC offers the on ly possibility for expansion for the Swedish food processing industry. Tariffs of 20 percent on imports into the EEC from Sweden are prohibitive but product de- velopment and know-how can be transferred duty-free.
The purehasas of campanies in Den mark, Austria, Bel- gium, West Germany and France during the past few years should be viewed against this background. The intention is to follow up these acquisitions with a number of others.
Another im portant feature of the food proesssing com- panies' strategy is responsivaness to the market, through continuing development of new products and new versions of products.
Research and development
The Volvo Group places great emphasis on the quality and safety of its products and maintains an extensive and continuous research program.
Volvo automotive products comply with the safety and environmental requirements currently applicable in the United states and other markels in which they are sold.
The Company believes that its safety and antipollution standards will keep pace with, or be in advance of, the automotive industry in general. lt accordingly expects that its automotive products will continue to be accept- able under the safety and environmental requirements of all major markets.
An im portant prerequisite for the agreement between Volvo and Renaultisthat both campanies should con- duct their activities as equal, independent parties.
Through cpoperation, theircombined development re- sources will be better utilized, while great advantages can be achieved in the form of longer series in manufac- turing joint components.
Early in 1980 Volvo, Renault, P.S.A. (Peugeot-Citroen), Rat, Volkswagen and British Leyland signed a ca-opera- tive agreement on advanced, long-term research with in the field of automotive technology.
The research work will be carried out within the existing research organizations of the partners to the agreement as weil as by outside institutions such as universities and research institutes. No new joint research resources will be built up.
In addition to research and development related to au- tomotive products, the Company has been a pionser in improving the working environment of its employees. In particular new methods of assembly and new materials handling systems have been developed. The Company also markels its expertisa in the design and operation of assembly plants.
Shareholders
Volvo has over 175,000 shareholders. Some five per- cent of the Volvo share capita! is owned by persons or institutions outside Sweden. The company has no dominating owner interests. Volvo's shares have been Iisted on the Stockholm stock Exchange since 1935, on the London Stock Exchange since 1972, on the Frankfurt/Main, Di.isseldorf and Hamburg Stock Exchanges since 1 97 4 and on the Oslo Stock Exchange since 1979.
..
Financial Statistics, Consolidated
Page lncome Statements 1973-1982 8
Balance
S~ets 1973-19829
h'~'Ye-stm&nts 1973-1982
Staternents of c hanges rn F1nanc1al Position 197 4-1982 1 O Capitahzatton DeG 31 . 1982 11 Return on capita! 1 ~77--1982 12 Key F 10ancral Ratros 1 97 4-1982
Sales by operating ~ 1973-1982 13 Srues by market area
Exports from Sweden lncome by operating sector
1973-1982 1973-1982 1975-1982
Quart.erly sates and tncome 1973-1983 14
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FINANCIAL STATISTICS, CONSOLIDATED
1973" 1974 1975 1976 1977 1978 1979 1980 1981' 1981'' 1982
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lncome Statements for 1973-1982 (SEK M)
Sales 8,986 10,537 13,692 15,743 16,168 19,133 23,472 23,803 27,541 48,017 75,624
Less: Cost of operations 7,834 '9,477 12,563 14,430 14,935 17,625 21,521 22,081 25,172 45,039 70,992
Operating income before depreciation 1,152 1,060 1,129 1,313 1,233 1,508 1,951 1,722 2,369 2,978 4,632
Less: Provision for depreciation 285 358 488 558 599 658 649 676 806 1,012 1,297
Operating income after depreciation 867 702 641 755 634 850 1,302 1,046 1,563 1,966 3,335
Add: Interest received less paid 40 (7) (142) (173) (170) (175) (72) (56) (122) (427) (564)
Other income/(expenses) 2 42 2
o
40 2 2 3 4 132 195Exchange differences on loans1l (153) (31) 12 14 (212) (246) (721)
l neo me after financial income and expanses 909 737 501 582 351 646 1,244 1,007 1,233 1,425 2,245
Extraordinary income and expenses +235
Profit-related bonus to employees (40)
lncome before allocations and taxes 909 737 501 582 351 646 1,244 1,007 1,233 1,425 2,440
Less: Allocation to/(reallocation from):2l
General inventory reserves 179 384 375 343 49 122 460 177 316 347 794
Extra depreciation 41 (11) 32 3 (21) (74) (11 O) 252 40 42 32
Write-down of shares 10 23
lovestment reserves (including
inventory investment reserves) 191 30 42 91 103 223 296 279 279 434
Other allocationsa> 118 (8) (1 4) 6 20 2 149 29 36 88
lncome before laxes 488 193 60 159 317 475 669 133 569 721 1,092
Less:Taxes 240 86 74 112 130 151 240 83 130 222 508
Minority interests in income 2 2 (22) (16) (11) 12 13 12 15 46 88
Net income 246 105 8 63 198 312 416 38 424 453 496
') Excluding Beijerinvest with subsidiaries.
'") lncluding Beijerinvest with subsidiaries.
') Exchange differences on loans for the years 1973 to 1976 are included in Cost of operations.
2) All allocations except the write-down of s hares re- present untaxed reserves provlded by the legislatian in Sweden and some other countries.
•) Special investment reserve, work environment re- serve, extra appropriation to insurance reserve, fixed asset repfacement reserve and exchange reserve.
FINANCIAL STATISTICS, CONSOLIOATEO
1973 1974 1975 1976 1977 1978 19791} 1980 1981* 1981** 1982
Balance Sheets at year-end 1973-1982 (SEK M)
Assets Current assets
Cash, bank and short-term nates 1,578 1,414 1,589 1,837 1,868 2,385 3,515 3,592 5,242 5,476 7,250
Accounts receivable 1,743 2,102 2,918 3,336 3,929 3,888 4,450 4,618 5,582 8,546 10,528
lnventories 2,588 3,922 5,137 6,015 6,643 6,903 7,921 8,783 9,557 11,580 14,341
Current assets 5,909 7,438 9,644 11 '188 12,440 13,176 15,886 16,993 20,381 25,602 32,119
Blocked accounts
in Bank of Sweden 128 127 115 93 115 54 64 38 183 208 221
Fixed assets 2,777 3,271 4,273 4,424 4,435 4,482 5,042 6,088 6,788 10,835 13,935
Total assets 8,814 10,836 14,032 15,705 16,990 17,712 20,992 23,119 27,352 36,645 46,275
Llabilities and shareholders• equity
Current liabllities 3,717 4,749 6,081 6,898 7,174 7,295 8,897 9,635 12,331 17,388 21,484
Long-term liabilities 1,049 1,447 2,583 2,923 3,661 3,867 4,086 4,600 5,151 8,535 10,904
Untaxed reserves 2,581 3,115 3,563 3,984 4,019 4,194 4,848 5,717 6,411 6,458 7,846
Minority interest in capita! 8 10 80 65 185 199 238 327 178 451 732
Shareholders' equity 1,459 1,515 1,725 1,835 1,951 2,157 2,923 2,840 3,281 3,813 5,309
Totalliabilities and shareholders' equity 8,814 10,836 14,032 15,705 16,990 17,712 20,992 23,119 27,352 36,645 46,275
Assets pledged 1,523 1,876 2,151 2,361 2,833 2,758 2,665 2,921 3,563 5,149 5,500
Conlingent liabilities 213 402 621 531 855 1,304 1,667 1,972 1,784 2,060 3,289
lnvestments in property, plant and equlpment by market area 1973-1982 (SEK M)
Sweden 507 607 674 407 448 418 729 1,405 1 '111 1,311 1,332
Nordie area, excluding Sweden 36 27 12 4 19 66 32 22 46 69 33
Europe, excluding Nordie area 80 107 265 197 153 170 184 203 78 147 206
North America 37 43 54 86 19 11 9 13 473 883 747
Other markats 18 38 29 10 17 3 8 14 89 104 28
Total 678 822 1,034 704 656 668 962 1,657 1,797 2,514 2,346
lnvestments in property, plant and equipment by operating sector (SEK M)
C ars 265 342 654 1,013 688 575
Trucks and buses 261 188 174 299 505 388
Construction equipment etc. 74 65 48 57 70 98
Marine and industrialengines 19 27 23 18 55 17
Aircraft engines. etc. 25 36 50 242 157 217
Engineering campanies 119 115
Energy campanies 754 846
Faod processing campanies 47 46
..
Other operating seetars and joint investments 12 10 13 28 119 44Group total 656 668 962 1,657 1,797 2,514 2,346
") Excluding Beijerinvest with subsidiaries 1) Effective !rom 1980, new principles are used in above have been translatad in accordance wi1h the
..
•1 lncluding Beljerinvest with subsldiaries transiating the accounts of foreign subsidiaries to new principles. For lurther information, see page 38 Swedish kronor. Balance Sheet figures for 1979 in 1he 1980 Annual Repor!.FINANCIAL STATISTICS, CONSOLIDATED
1974 19751) 1976 1977 1978 19793) 1980 1981* 1981 .. 1982
statements of Changes in Financial Position 1974-1982 (SEK M)
Funds supp/ied
lncome before allocations and taxas + 737 + 501 + 582 + 351 + 646 +1 ,246 +1 ,007 1,425 1,425 +2,440
Depreciation charged against income + 358 + 487 + 558 + 599 + 658 + 650 + 676 +1,012 +1,012 +1,297
Minority interest in income 1 + 22 + 16 + 11 12 13 12 46 46
88
Taxes 86 74 - 112 130
-
151-
240 83-
222 - 222-
508Withdrawals from/allocations to blocked
accounts in Bank of Sweden + 1 + 12 + 22 22 + 61 11 + 26
-
170-
170 13Funds supplied from year's operations2 1,009 948 1,066 809 1,202 1,632 1 ,614 1,999 1,999 +3,128
Decrease in long-term receivables + 9
lncrease in long-term liabilities + 398 + 851 + 340 + 739 + 206 + 250 + 412 +3,935 + 968 +2,369
Minority interest in shareholders'
equity in subsidiaries + 2 3 15 + 120 + 13 + 14 + 89 + 124 + 143 + 281
Share issue + 100 + 183 + 137 + 212 + 482 + 608
Changes In composition of Group etc. + 7 25 + 7 + 33 14 ±
o
+ 97-
209 + 82 + 18Total funds supplied 1,516 1,954 1,535 1 ,701 1,407 2,117 2,212 6,331 3,192 6,404
App/ication of funds
lnvestments in property, plant and
equipment, including company acquisitions + 871 +1,034 + 740 + 656 + 677 + 962 +1,665 +4,841 +2,730 +2,467
Less: Residua! value of assets sold and scrapped 65 65 57 67 40 53 32 -1,360 - 590
-
737Changes in shares and participations + 81 + 4 + 10 + 26 + 24 + 66 + 122 +1 ,390 + 436 +1 ,624
lncrease in long-term receivables + 31 + 21 + 21 + 5 + 25 + 21 + 435 + 127 + 378
Dividend paid + 75 + 79 + 94 + 106 + 106 + 124 + 169 + 169 + 169 + 251
Total funds applied 993 1,073 808 726 792 1,099 1,945 5,475 2,872 3,983
Change in working capita/ + 523 + 881 + 727 + 975 + 615 +1,018 + 267 + 856 + 320 +2,421
Specification of changes in working capita/
lnventories +1 ,334 + 887 + 878 + 628 + 260 + 960 + 863 +2,797 +1 ,279 +2,761
Current receivables + 387 + 663 + 418 + 592 41 + 562 + 168 +3,928 +1 ,491 +1 ,982
Current liabilities (minus indicates an increase) -1,033 - 772 817
-
276 121 -1,634 841 -7,753 -4,439 -4,096Bank accounts, cash and short-term notes - 165 + 103 + 248 + 31 + 517 +1,130 + 77 +1 ,884 +1,989 +1 ,774
Total change in working capital + 523 + 881 + 727 + 975 + 615 +1 ,018 + 267 + 856 + 320 +2,421
The degrea of self financing may be expressed as:
Funds supplied from year's operations, less dividend
x
100 = 102% 87% 136% 113% 160% 156% 81% 34% 68% 77%lnvestments in property, plant, equipment, shares net
j lncluding Beijerinvest with subsidiaries. 'l In January 1975 AB Volvo increased its holding of 2 ) In evaluating lunds supplied from the year's oper- •) Eflective from 1980, new principles are used in trans- .. )The same amounts as in the lett column are shown, shares in Car BV to 75 percent. The 1975 figures ations and the degree of self-financing, it should be lating the account of foreign subsidiaries to Swedish
except that the eflect of the acquisltion of Beijer- have been shown on the basis of a 75 percent hold- noted that income belare allocations and laxes has kronor. Balance sheet figures for 1979 above have invest on April t, 1981 has been excluded. ~ is also ing by AB Volvo of shares in Car BV as at 31st bejjn charged with write-ups on long-term loan been Iransiated in accordance with the new prin- assumed t hat Volvo C ar B. V. was not a subsidiary at December 1974. This means thaithe above state- liabilities. (See Exchange Differences on Loans in the ciples. For lurther information, see page 38 in the
year-end 1980. ment shows lunds suppli ed and application of lunds lncome statements on page 8.) Annual Report 1980.
for the Group In 1975 excluding the acquisition of Volvo Car BV.
FlNANCIAL STATISTICS, CONSOLIDATED
Capitalization at December 31, 1982
The following table sels out the capitalization of the Volvo Group showing long-term de bl and Totallang-term debt of the Volvo Group 8,666 shareholders' equity as at December 31, 1982.
SEK Pension liabilities 1,790
Long-term debt of the Volvo Group millions Deferred taxes 448
Parent Company Deferred income tax Hability 3,923
Minority interests 732 6,893
Unsecured
SEK 75 million 71h% B onds 1971 /91 at a price of 100% 43 Shareholders' equity
USD 25 million 8% Bands 1972/87 at a price of 100 'h% 101 Share capita! 1,698
SEK 1 00 million 7%% Sonds 197 4/89 at a price of 100% 54 Legal reserves 2,257
CHF 60 million 8% Sonds 1975/90 at a price of 991h% 220 Retained earnings 1,354
SEK 1 00 million 9 %% Sonds 1975/90 at a price of 100% 47 Special allocations 7,846
USD 25 million 91h% Bond s 1975/85 at a price of 991h% 137 Less deferred income tax liability (3,923) 9,232
USD 6 million 9 o/4% Bond s 1 975/85 at a price of 100% 22 Total capitallzation 24,791
NLG 50 million 8%% Bond s 1975/85 at a price of 100% 55
USD 35 million 8% Bands 1977/87 at a price of 100% 204
SEK 1 00 million 9 WYo Sonds 1977/93 at a price of 100% 66
Maturities of the totallang-term debt are due in:
LUF 500 million 9 %% Sonds 1979/87 69
LUF 250 million 8% Private placement 1978/86 38 1984 1,278
1985 1 '141
CHF 12 million 8% Private placement 1982/87 44 1986 1,406
LUF 250 million 131h% Private placement 1982/87 38 1987 1,418
SEK 150 million 11 '/4% Subordinated loan 1979/94 11
o
1988 and thereafler 3,423SEK 402 million 14% Subordinated loan 1981/96 402
SEK 301 million 13 WYa Subordinated loan 1981/91 241 Total 8,666
NLG 22.5 million 11 :Ys% Bankloan 1974/89 37
NLG 15 million 11% Bankloan 1974/86 23
NLG 25 million 11 o/4% Bankloan 1976/91 52
NLG 25 million 11 o/4% Bank loan 1976/91 52
NOK 30 million 11 %o% Bank loan 1981/89 31
USD 25 million 9 o/s% Bank loan 1981/89 183
USD 25 million 10 1h% Bankloan 1981/89 183
USD 15 million 12 '/4% Bankloan 1981/89 110
LUF 250 million 121,2% Bankloan 1982/87 38
Other 393
Total unsecured 2,993
Secured 230
3,223 Subsidiary Campanies
Unsecured
Volvo Car Corporation
NOK 20 million 1
o
o/'4% Bankloan 17FRF 89 million 7 o/'4% Bank loan 48
SEK 80 million 8 o/'4% Private loan 80
USD 9 million 7%% Bankloan 54
Other 35
Volvo BM AB
SEK 50 million 9%% Bands 1976/91 at a price of 100% 27
SEK 75 million 13% Bond s 1977/92 at a price of 100% 45
Other 39
Other subsidiaries 3,430 j In the individual Group companies, liabilities in foreign
currencles are Iransiated to Swedish kronor at the
Total unsecured 3,775 hlgher of rates when the liabilities we re incurred or
Secured 1,668 year-end rates. In the consolidaled financialstatement
Totallang-term debt of the Volvo Group 8,666 of the Volvo Group allliabilities are, however, Iransiated
at year -end rates.
FINANCIAL STATISTICS, CONSOLIDATED
1977 1978 1979
Return on capita!, 19n-1982 (percent)
C ars
o
4 5Commercial Vehicles 9 B 10
Marine and industrial engines 4 3 1
Aircraft engines, etc. 13 10 9
Engineering campanies Scandinavian Trading Food processing companies
1974 1975 1976 1977 1978 1979
Key Financial Ratlos 1974-19822>
Interest coverage (multiple)3} 4.2 2.2 2.2 1.8 2.2 3.0
Interest net as percentage of sales4> 0.1 - 1.0 - 1.1 1.1 - 0.9 0.3
Yield on total capita15l 9.3 7.2 7.2 6.4 7.2 9.6
Yield on total capita!, less non-interest-bearing current liabilitiessJ 13.3 10.0 9.8 8.7 10.0 13.7
Yield on own risk-bearing capitai7J 17.0 10.0 10.3 5.8 10.2 17.5
Yield on shareholders' equitya> 12.6 7.5 7.8 4.4 7.5 12.8
Cash flow as percentage of sales9> 9.6 6.9 6.8 5.0 6.3 6.9
Capita! tumover (multiple)1°> 1.07 1.10 1.06 0.99 1.10 1.22
Change in interest-bearing debt (SEK M) 1,003 1,864 575 497 -332 521
Net debts as percentaga of own risk-bearing capitaP,l 27.9 56.1 55.8 61.0 44.3 30.0 Current assets/current liabilities
Percentaga of self-financing12)
Percantage of own risk-bearing capital13) lnventory as percentaga of sales
Accounts receivable as percentaga of sales Gross investments in property, plant and equipment as percentaga of sales
j Volvo Group excluding Beijerinvest with subsldiaries.
' ')Volvo Group as a whole. In cert a in cases the capital base has been adjusted and also includes Beijerinvest with subsidiaries for lhe las! three quarters.
') EffeC1ive in 1981 new principles for calculating return on capital have been applied. To illustrate the effec1s of lhe changes made, lhe return for 1980 is shown in accordance with both the new and the old methods.
The new yield ratio for the various operaling seclors has been calculated using a norm applied within the Group, by which income is divided by lhe averaga capi- tal employed. Replacement cost depreciation has been charged to income. while the employed capita! has been calculated as total assets less non-inlerest-bear- ing current liabilities, fixed asse!S being included al c ur- rem replacement value, net. The methods ditter primarily in that capita l is now calculated with a deduc- tion for non-interest-bearing current llabililies.
1.57 1.59
102 87
42.8 38.3
37 38
20 21
7.8 7.6
2) From 1980 lhe transtation of foreign subsidiaries bal- ance sheels is basad on the exchange rates at year- end.
') Operating income alter depreciation plus inlerest in- come. dividend income. and income on the sale of Iisted shares, divided by interest expenses.
4 ) Interest income less Inte res! expenses, divided by sales.
5) Operating in come alter depreciation, plus inlerest In- come. dividend income, and income on the sale of lisled shares, divided by averaga total assets.
1.62 1.73 1.81 1.79
136 113 160 156
37.5 36.2 37.0 36.9
38 41 36 34
21 24 20 19
4.5 4.1 3.5 4.1
') lncome before allocallons and taxes dlvided by averaga shareholders' equi1y, minority capilat and 100 percent of untaxed reserves.
0 ) lncome betare allocatlons and taxes, red uced by a tax charge of 50 percent, account being taken in 1981 of taxtree dividends in the share portfolio. This income has been divided by the sum of averaga shareholders' equity, minorily capita! and 50 parcen! of untaxed reserves.
9) Funds supplied from year's operalions, as shown in the Statemenls of Changes in Financial Posilion on page 1
o .
divided by sales."} Operatlng. inco~e alter depr~iation plus in1eres1 in- , ")Sales di vid ed by average total assets.
come, diVidend 1ncome and 1ncome on lhe sale of Ilsted
shares, divided by average total assets less non- '') lnterest-bearing liabililies less liquid lunds. divided by interest-bearing current liabilities. own risk-bearing capita!.
1980 19801) 1981') 1982
1 - 2 9 21
12 18 13 12
6 9 10 14
11 12 16 12
8 14 12
20 20 11
11 11 9
1980 1981' 1981 .. 1982
2.2 2.3 2.1 2.6
0.2 - 0.4 - 0.9 0.8
8.4 10.0 10.3 12.4
11.9 14.0 15.0 17.5
11.9 13.2 14.5 20.5
8.7 9.7 10.8 14.6
6.8 6.3 4.2 4.1
1.08 1.09 1.57 1.92
823 2,566 5,897 4,046
33.9 34.8 65.5 66.9
1.76 1.65 1.47 1.50
81 68 34 77
38.4 36.1 29.3 30.0
37 35 24 19
19
20
18 147.0 6.5 5.2 3.1
12) The deg re e of self-financing ma y be expressed as:
Funds supplied from years operations, less dividend x lnvestments in properly, plan!. equipment. shares etc., net 100
"')Shareholders' equity, minorily capita! and 100 percent of untaxed reserves, divided by total assets.
FINANCIAL STATISTICS, CONSOLIDATED
1973 1974 ' 1975 1976 1977 1978 1979 1980 1981· 1982
Sales by operating seetar 1973-1982 (SEK M)
C ars 5,132 5,569 7,525 8,441 8,310 10,257 12,617 11,980 13,569 18,109
Trucks 1,854 2,307 2,990 3,634 4,059 4,830 5,991 6,562 8,209 10,793
Buses 134 211 321 428 447 455 632 794 1,030 1,028
Construction equipment, etc. 986 1,349 1,588 1,778 1,729 1,773 2,242 2,259 2,277 2,203
Marine and industrialengines 424 507 601 747 802 911 996 1,128 1,308 1,508
Aircraft engines, etc. 290 330 372 379 433 504 571 637 590 919
Engineering campanies 2,118 2,967
Energy campanies 14,638 33,512
Food processing campanies 1,889 3,171
Other operations 166 264 295 336 388 403 423 443 2,389 1,414
Group total 8,986 10,537 13,692 15,743 16,168 19,133 23,472 23,803 48,017 75,624
Sales by market area 1973-1982 (SEK M)
Sweden 2,703 3,385 3,993 5,009 4,716 4,874 5,721 5,927 11,077 13,222
Nordie area excluding Sweden 1,258 1,388 1,625 2,069 2,266 2,453 3,079 2,728 4,477 5,310
Europe excluding Nordie area 2,543 2,594 3,848 4,741 5,382 7,272 9,252 9,167 11,963 20,452
North America 1,592 1,851 2,165 1,708 1,855 2,357 2,894 3,014 12,702 25,685
Other markels 890 1,319 2,061 2,216 1,949 2,177 2,526 2,967 7,798 10,955
Total 8,986 10,537 13,692 15,743 16,168 19,133 23,472 23,803 48,017 75,624
Exports from Sweden 1973-1982 (SEK M) 4,477 5,448 6,789 6,850 7,081 9,013 11,607 11,650 15,317 19,130
lncome by operating seetar 1975-1982 (SEK M)
C ars 85 100 -105 190 340 -195 525 1,785
Trucks 230 350 485 530 700 960 730 815
Buses - 5
-
5 - 10 20 50 30 25Construction equipment. etc, 140 60 - 10 85 100 90 55 90
Marine and industrialengines - 10 10 10
so
- 5 75 105 150Aircraft engines, etc. 55 70 95 90 65 90 145 100
Volvo Energy - 35 -160 -165
Other products 6 - 8 5 - 19 24 - 28 - 38 - 61
Subtotal 501 582 465 646 1,244 1,007 1,392 2,739
Engineering campanies 107 155
Scandinavian Trading 133 128
Food processing campanies 89 96
AB Fortas (formerly Beijerinvest AB) 150 238
Other companies, eliminations and central costs - 86 -138
less: Beijerinvest group first quarter 1981 - 46
Eliminations as per note -3141) -7782)
Group total 501 582 465 646 1,244 1,007 1,425 2,440
*) lncludlng Beijerinvest with subsidiarles loans in foreign currency, SEK 246 M. and gains on 'l Elimination of: a) exchange losses on foreign currency, acquisition and write-down of Ilsted shares, SEK 7B M;
')Elimination of interest change in AB Volvo, SEK 105 M sales of larger facilitles of SEK 94 M. SEK 721 M; b) interest charge in AB Volvo resulting d) provision for profit-relatad bonus to employees, SEK from acquisition of Beijerinvest, now AB Fortos, SEK 40 M; and e) gain on sale of oil rigs. SEK 235 M.
FINANCIAL STATISTICS, CONSOLIDATED
1973 1974 1975
Quarterly sales and income 1973-1983 Sales (SEK M)
1st quarter 2,078 2,312 3,028
2nd quarter 2,097 2,607 3,283
3rd quarter 2,246 2,719 3,474
4th quarter 2,565 2,899 3,907
Whole year 8,986 10,537 13,692
lncome after financial income and expenses (SEK M) 1st q u arter
2nd quarter 3rd quarter 4th quarter Whole year
Adjusted income in SE': per share5l 1st quarter
2nd quarter 3rd quarter 4th quarter Whole year
Whole year, adjusted income before allocations and taxes
1) Alter allocation of a special grant from l h e D ut ch Government to Volvo C ar B. V., in tolal SEK 193 M, with 25% lo each quarter.
2)After allocation of a special grant from the Dutch Govemment to Volvo Car B.V .. SEK 199M with 25% to each quarter.
280 235 166
208 228 119
214 111 63
207 123 153
909 697 501
11.40 9.40 6.30
8.50 9.10 4.60
8.70 4.20 2.00
8.30 4.70 4.40
36.40 26.70 16.00
36.40 28.20 16.00
~-) lncluding a special grant from the Dulc1h Governmenllo Volvo ear B .V.. SEK 104 M with SEK 32 M for lhe three lirst quarters and SEK 72 M for the fourth quarter.
4) lncluding a special grant from the Dutch Government to Volvo Car BV, SEK 129 M.
1976 1977 1978 1979 1980 1981 1982 1983
3,461 3,428 4,260 5,320 5,921 5,7616) 14,946 23,631
3,858 4,123 4,854 6,376 5,651 13,089 19,168
4,099 3,826 4,367 5,128 5,578 12,320 17,392
4,325 4,791 5,652 6,648 6,653 16,847 24,118
15,743 16,168 19,133 23,472 23,803 48,017 75,624
162 129 151 235 385 2806) 516 1,025
184 151 235 410 220 424 1,004
144 49 112 216 201 286 408
92 136 148 383 201 435 317
582 4651l 6462) 1,2443) 1 ,0074> 1,425 2,245
5.20 3.70 4.30 6.70 9.10 6.606) 8.60 14.60
5.90 4.30 6.60 11.60 5.20 5.90 16.40
4.10 1.40 3.20 5.10 4.70 5.00 5.40
2.60 3.80 4.20 9.00 4.80 6.50 4.90
16.50 13.20 18.30 29.40 23.80 24.00 30.90
16.50 9.90 18.30 29.40 23.80 24.00 30.90
0) Adjusled income is defined as income betare allocations "l Not inctuding Volvo Car BV nor the Beijerinvest group.
and taxes (for 1977 and prior years income alter linan- cia! income and expenses) reduced by minority in- terests' share. A standard tax c1harge of 50 percent has been made, due consideration has been given to tax- free dividends in lhe share portfolio in 1981. The calcu- lation is based on the number of shares culstanding at the close of the respective quarter (for 1981 and prior years number of shares at year-end). For 1980 and prior years no adjustmenl has been made for minority in- teresl in income. since it was lnsignificant.
Rnanclal Statistics, AB Volvo
S!'la!e capllal Oootations ot Volvo shares Dela per s hare Number of shareholders Distnbut10r. of shares The lftr~ sharehoklers
1926-1983 1972-1983 1973--1982 1973-1982
~
1982 May 1983
Page 16
17
18
' l
FINANCIAL STATISTICS, AB VOLVO
AB Volvo, share capital1926-1983 (in SEK)
Share capita! Number Dividend Dividend
of shares pershare total
1926 200,000 2,000 The share capita! of AB Volvo at December 31, 1982,
1930 4,200,000 42,000 rights issue 20:1 SEK 100 SEK 1,697,705,250 was divided into 11,492,144 A-
19351) 13,000,000 260,000 2.50 650,000 rights issue shares and 22,461 ,961 8-shares, each with a par vafue 1937 18,200,000 364,000 2.50 910,000 rights issue 2:5 SEK 50 of SEK 50. Each of theA-shares carries one vote and
1938 18,200,000 364,000 3.- 1,092,000 each of the B-shares earrias one-tenth of a vote but in
all other respects they rank pari passu with the A-
1942 20,000,000 400,0002) 3.- 1,092,000 rights issue s hares.
1943 25,000,000 500,000 3.- 1,500,000 rights issue 1 :4 SEK 50
Out of Volvo' s shares only 1,974,614 "A" shares and
1945 37,500,000 750,000 3.- 2,250,000 rights issue 1 :2 SEK 50
~
56,250,000 1,125,000 3.- 3,375,000 rights issue 1 :2 SEK 50 4,962,199 "B" shares, known as free or unrestricted 75,000,000 1,500,000 3.- 4,500,000 scrip issue 1 :3 shares (representing lessthan two-fifths of the share1954 75,000,000 1,500,000 3.60 5,400,000
capital and carrying lessthan one-fifth of the votes for the local s hare capita!) may be acquired either by sub-
1955 90,000,000 1,800,000 3.- 5,400,000 scrip issue 1 :5 scription of transfer by
1959 1 08,000,000 2,160,000 3.- 6,480,000 scrip issue 1 :5
1960 114,000,000 2,280,000 3.- 6,840,000 rights issue3J D any non-Swedish citizen, corporation or institution;
1961 114,000,000 2,280,000 3.75 8,550,000 D any Swedish trading partnership with a non-
Swedish partner,
.19g 142,500,000 2,850,000 rights issue 1:4 SEK 60 D an y Swedish cooperative association;
171,000,000 3,420,000 3.- 10,260,000 scrip issue 1 :5 O any Swedish limited company issuing bearer shares;
1963 171,000,000 3,420,000 4.- 13.680,000 or
1964 228,000,000 4,560,000 3.- 13,680,000 scrip issue 1 :3 D any other Swedish limited company whose Articfes of
1965 228,000,000 4,560,000 3.90 17,784,000 Association do not contain certain restrictions on the
..lll.6fi.
273,600,000 5,472,000 rights issue 1:5 SEK 75 acquisition of certain assets.342,000,000 6,840,000 3.50 23,940,000 scrip issue 1 :4 Unrestricted shares are designaled "Fria" on the rela-
1967 342,000,000 6,840,000 4.50 30,780,000 tive share certificates. The remaining Volvoshares are
1968 342,000,000 6,840,000 5.50 37,620,000 known as restricted shares and may onfy be acquired by
1969 342,000,000 6,840,000 6.- 41,040,000 subscription or transfer by Swedish citizens and certain
1970 513,000,000 10,260,000 4.- 41,040,000 scrip issue 1 :2 Swedish campanies or associations. These shares are 197211 598,500,000 11,970,000 rights issue 1:6 SEK 80 designaled "Bundna" ontheshare certificates.
607,180,000 12,143,600 rights issue3J *)Volvo's share capital was increased by SEK
613,430.0004) 12,268.600 4.- 49,074,400 rights issue3J 37,500,000 to SEK 1,735,205,250 through a rights is- 1973 624,505,000 12,490,100 6.- 74,940,600 rights issueJJ sue of 750,000 "B-free"-shares. The issue was 19741) 653,755,000 13,075,100 6.- 78,450,600 Special non-public issue5l otfered to the British capita l market without the right of 1975 784,506,000 15,690,120 6.- 94,140,720 rights issue 1 :5 SEK 70 priority to Volvo shareholders. The new shares we re 1976 882,569,250 17,651,385 6.- 105,908,31
o
rights issue 1 :8 SEK 70 offered at a price of SEK 405 per share and the sub-1978 882,569,250 17,651,385 7.- 123,559,695 scription was conduded at the end of June 1983.
19791) 1 ,059,083,1 00 21,181,662 8.- 169,453,296 rights issue 1 :5 SEK 60 1981 1 ,393,921,050 27,878,4213) 9.- 190,634,9586)
1982 1,697,705,250 33,954,105 10.- 339,541 ,050 rights issue 1 :5 SEK 1 007J
1983 1 '735,205,250 34,704,105 special issue*l
'}The par value was original ly SEK 100 but was changed to SEK 50 •) The regisiered s hare capital of the Company amounted to SEK 7)5,575,684 new s hares were subsenbed by Volvo shareholders in 1935. lntroduction on the Stockholm stock Exchange in 1935, 612,680 M at the end of the year. Alter reglstration of all and 500.000 "B" shares were subscribed by Volvo employees on the London Stocl< Exchanye in 1972, on Hamburg. Dussel- share increases decided upon du ring 1972 the share capital resident in Sweden.
d ort and Frankfurt Stock Ex c hanges in 197 4 and on Oslo stock amounts to SEK 613,430 M.
Exchange in 1979. •) A special non-public issue of newshares to the National Pen- 2) Rights issue s hares not dividend bearing in 1942. slon lnsurance Fund. Fourth Fund Managing Board at SEK 171.
9) New Volvo shares lssued as payment for acquisition of other •) lncluding Beiierinvest's dividend of SEK 60,270,831 the total
companies. dividend is SEK 251 ,905, 789.
