A Volvo Fact Book
Financial and perating Statistics
1989/90
VOLVO
VOLVO FINANCIAL AND OPERATING STATISTICS
Contents
Page Volvo in brief
History and business
Recent and upcoming events Group structure and organization Financial Statistics, Consolidated
Financial statements Capita! expenditures
Research and development costs Sales, income, assets by operating seetar and geographical area
Keyfinancial ratios Capitalization
9
Share capita/ andshare data 19 Operating Statistics, Consolidated 25
Range of products
Production, sales, regisfratians Number of employees Salaries and wages
World productian ofvehicles Administration
Volvo's top organization
Board of Diractors and Auditors
On ly minor changes have been made in the present edition of Volvo Financial and ORer- ating Statistics.
We hope that you will find this year's issue to be of helpin forming yourview ofVolvo's total operations and wetcome your comments and suggestions for further improvements of this publication.
35
First quarter figures for 1990 and major events up to the end of J une, 1990 are included.
Jljne 29, W90
Notes to readers
Accounting for associated campanies
Effective in 1989, Volvo has changed its method of accounting for shareholdings in associated campanies to the equity method. Volvo's shares of reporled earnings in associated companies, b ut not the dividends received from them, are accordingly included in the consolidaled in- come statement In the consolidaled balance sheet, the reporled val u e of shares and partici- patiens is increased by Volvo's s hare of the atter-tax earnings of associated campanies (reduced by amortization of goodwill and divi- dends received).
Minority interests in Group companies.
Effective in 1989, Volvo campanies in which non-Group campanies have interests are re- portad in such a waythat minority interests are eliminaled from income betare attocations and taxes. tn the balance sheet, minority interests in untaxed reserves are divided into minority capi- tal (50 percent) and untaxed reserves (50 per- cent).
Effective in 1989, the Provision forempfoyee bo- nus is inctuded in operating expense. Gompar- abia figures andratios for earliaryears have been adjusted accordingty.
Trading (and Energy)
With the sate of its holdings in STC and J.S. Saba Continent BV in the spring of 1989, Volvo divested its Trading operating sector.
The following changes in reporting data on the Trad i ng (and Energy) operating seetar should
atso be noted.
Effective in 1983, the Energy operations are shown under Discontinued operations. Accord- ingly, the figures shown under the heading Trad i ng (and Energy) for the years 1983-1988 pertain on ly to STC's sates, capital expenditures and operating income. Asset figures for the years 1985-1988 pertain onlyto STC. The figures showing number of employees are not affected.
Deafer operations
Effective in 1985, operations in Volvo-owned dealerships, formerly reporled in the various operating sectors, are included in Other oper- ations with respect to sales, capita l expendi- tures, number of employees and assets. Oper- ating in come from deal er operations is included in Other operations, beginning in 1987.
In the financialstatements and accompanying tablesin the nates, parentheses are used to indicate negative figures. In the narrative text, parentheses enclose figures related to 1988 operations.
All amounts are in millions of Swedish kronor (SEK M) uniess otherwise indicated.
Figures in Swedish kronor (SEK) may be trans- laled at the approximate 1989 year-end exchange rates as follows:
GBP 1.00=SEK9.94 USD 1.00=SEK6.21 DEM 1.00=SEK3.66 FRF 1.00=SEK1.07 BEC 1.00=SEK 0.17 CHF 1.00=SEK 4.02 NLG 1.00=SEK 3.24
Du ring the years 1979-1989, inflation in Sweden occurred at the following annual rates, based upon the Consumer Price Index published by statistiska Centralbyrån:
1979 1 O percent 1985 1980 14 percent 1986 1981 9 percent 1987 1982 1 O percent 1988 1983 9 percent 1989 1984 8 percent
6 percent 3 percent 5 percent 6 percent 7 percent
Volvo in brief
History and business Page 2 Transport eqUJpment
Summary of Group structure, early 1990 4 Recent and upcormng events 5
Sales orgamzatton
Cap1tal expenditures and fmancing 6 Personner
Research and development Suppliers
EnVIfonmental pohcy 7 Share holder s
VOLVO IN BRIEF
General
Volvo, which in 60 years has grown to be the largest industrial group, measured by sales, in the Nordie region (Sweden, Norway, Danmark, Finland and lceland), began operations as a ear manufacturer.
History and business
Volvo was incorporated in 1915 as a sub- sidiary of AB SKF, the Swedish ball bearing manufacturer; commenced assembling cars in 1926 and trucks in 1928; and became an independent company in 1935.
Foilowing three years of development work, the first series-produced Volvo roiled out of the Hisingen plant in Göteborg, in April1927. A year later the first cars were exporled to Finland. ·
Today, Volvo products are sold throughout the world. About 80 percent of Volvo Group sales ofindustrial products are to customers outside Sweden.
Volvo's largest operating seetars are Cars and Trucks. The Group also has opera- tions in s u ch other seetars of the transport equipment industry as Buses, Aerospace (aircraft and s pace engines) as weil as Marine and industrial engines. Other Group activities include financial activities and substanfial investments in associated companies.
Productian of components and finished products has a strong base in Sweden.
There has been a considerable broaden- ing and internationalization ofVolvo's operations du ring the past ten years. The Group now has a complete and self- sufficient truck operation in the United states and a well-established productian of cars, trucks and buses with in the European Community. A large number of trucks and buses are also produced in Brazil.
Volvo is continuing to internationalize its operations. Western Europe and North America are the Group's most important markel areas.
Volvo's strategy in each of its operating seetars is to concentrate on dislinet prod- uels and markel segments. Substantial investments are continuously made in product development, im proved produc- tion systems, marketing, customer service and logistics.
lmportant changes in Group structure and organization will follow from Volvo' s deals with Proeardia AB in Sweden and the Renault Group of France (see pages 4 and 5).
The Volvo organization is baseq on shared values and far-reaching delegation of re- sponsibility. There are only slightly more than 100 employees in the Group Head Office. All Iine operations have been de- centralized to subsidiaries in Sweden and other countries.
Quality, safety, cancern for human beings and environmental responsibility are guid- ing principles in all Group operations. So, too, is the development of Volvo em- ployees to manage technology effectively, participale in the growth of the organiza- tion and increase productivity.
Volvo's industrial operations provide the basefor the Group's financial activities.
An im portant part of the Group's financial assets is in the form of large holdings in publicly traded companies.
At year-end 1989, Volvo had approximate- ly 78,700 employees, ofwhom 54,700 were in Sweden and about 24,000 in other countries.
Volvo has approximately 170,000 share- holders. lts shares are traded on the Stock Exchanges in stockhol m, Tokyo, London, Frankfurt am Main, Dusseldorf, Hamburg, Paris, Zurich, Basel, Geneva, Brussels, Antwerp, Oslo and Helsinki, and in the U.S. via NASDAQ.
Transport equipment -Production in Sweden
Volvo still has its headquarters and its largest plant in Göteborg, Sweden. The first Volvo ear lett the assembly Iine on April14, 1927, and the tirst 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, which manufactured engines for the Volvo vehicles, the Company developed its business from an assembly to a manu- facturing operation. This was the first of a number of acquisitions of manufacturing
companies, formingthe foundation for the development of the Volvo Group. In 1941 AB Volvo acquired a majority holding in Svenska Flygmotor AB (now Volvo Flyg- motor AB). Köpings Mekaniska Verkstads AB was acquired in 1942, AB Bolinder- Munktall (later Volvo BM AB, now part of VME Group NV), in 1950 and Olofström AB (now part of Volvo Car Corporation) in 1969.
In the 1960s Volvo's Swedish ear assembly, parts handling and Corporate Headquarters we re transferred to a new camplex at Tars- landa, Göteborg, which has since been expanded in several steps. The smaller Kalmar assembly plant was completed in 1974 and expanded in 1987. Productian
starled in the assembly plant in Uddevalla in the autumn of1988. Both these smaller plants represent a development of new productian methods and newforms of work organization, which in effect do away with assembly Iine techniques.
Trucks have been assembled at the Lundby Plant, Göteborg since the late 1920s. At the end of 1981 assembly operations starled in the Tuve plant, Göteborg. Truck cabs are manufactured in the Umeå plant.
The first bus chassis were produced in 1934 and a separate bus chassis plant in
Borås starled productian in 1978.
A body productian planlin Säffle was added in 1982.
VOLVO IN BRIEF
Volvo Penta marine and industrial engines has its orig in in Skövde, where engines are still produced. Some are converted to their special use in Göteborg, (others are manufactured in Vara, Flen and Köping (transmissions).
Ever since Volvo Flygmotor was founded in 1930, it has produced aircraft engines for the Swedish Armed Forces; same engines are manufactured under license agreements with foreign producers such as Pratt & Whitney and General Electric Company, both in the United States.
Cooperation agreements with these com- panies, as weil as the Garrett Corporation in the U.S. and Rolls-Royce Ltd in the U.K., are focused on the productian of commer- cial aircraft engines.
The Group's principal productian facilities are located in Sweden, where Volvo has assembly plants for cars, trucks, buses, marine, industrial and aircraft engines, as weil as factories for productian of such vital components as engines, gearboxes, axles, brakes and bodies.
Volvo startad productian of farm tractors in 1944, acquired Volvo SM in 1950 and the two operations were merged. The last farm tractor model was out of productian in the summer of 1983, b ut components for farm tractors and forest machinery for Oy Val- me! we re produced 1982-1987.
Volvo BM later specialized in construction equipment. lts operations were combined with those of Clark Michigan Co early in 1985, forming VME Group N.V., in which Volvo has a 50 percent interest Volvo BM is no longer consolidaled in the Volvo Group, but construction equipment is sold through some Volvo markel companies.
Productian outside Sweden
lncreased emphasis on productian outside Sweden in the form of assembly oper- ations, with the main components being delivered from the Group's Swedish fac- torias is a response to the need for close centact with major m arkets. lt also reflects the natural desire of same countries to have part of the manufacturing or as- sam blywork carried out locally. Produc- tion in Belgium starled as earlyas 1962.
Volvo has e sta bl i sh ed wholly owned assembly plants in Belgium, Great Britain, the United States, Canada, Brazil and Australia, and partly owned plants in the Netherlands, Iran, Malaysia, Thailand and Peru.
Assembly work is also carried out in other local facilities in Greece, Portugal, Morocco, Kenya, Mozambique, Venezuela and lndonesia.
Following a cooperation agreement con- cluded 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
s hares in the company and the name was changed to Volvo Car BV.
In May1981 the Dutch Government in- creased its shareholding in Volvo Car BV to 70 percent through a special issue of newshares and Volvo Car Corporation's holding was reduced to 30 percent Volvo Car BV thus achieved an independent position but it continues to conduct its operations in close cooperation with Volvo Car Corporation.
In J une 1990, Volvo publicly announced its interest in increasing its ownership in Volvo Car BV N egotiatians with the Dutch government regarding an acquisition are underway.
A truck and bus assembly plant partially owned by Volvo and Brazilian interests was constructed in Brazil. Assembly of bus chassis started at the end of 1979 and truck assembly operations startad in the seeond part of 1980. Since the end of 1985, Volvo do Brasil has been a Volvo subsidiary.
In 1981 Volvo acquired most of the truck manufacturing assets of White Motor Corp.
in the United states and formed a new company, Volvo White Truck Corp., with headquarters in Greensboro, North Carolina. The three assembly plants are in Dublin, Virginia, Ogden, Utah and Orrville, Ohio and a cab factory in Orrville.
With a view to further strengthening its position through cooperation with another truck manufacturer, Volvo and General Motors Corporation signed an agreement late in 1986, with respset to coordinating the two companies' heavy truck operations in the North American market. While the operations of the U.S. company, Volvo GM HeavyTruck Corporation, include both productian and marketing, the Ganadian company, Volvo GM Canada HeavyTruck Corporation, is exclusively a sales company.
Volvo currently owns 76 percent of the shares of each company. General Motors has, however, been granled an option to increase its holdings to 35 percent Volvo has management responsibilityfor both companies.
The assembly plants have been expand- ed, the spare parts warehouse enlarged and a new import facility has been added.
Early in 1988 Leyland Bus Group Ltd in the U.K. was acquired. Leyland has two factorias in Farington and Workington.
A new central warehouse was campletad early in 1990.
Volvo Penta engines are convarled and manufactured in Chesapeake, Virginia, U.S. as weil as in Rio de Janeiro, Brazil.
3
VOLVO IN BRIEF
Summary of Group Structure, early 1990 Volvo and Leyland Bus trade marks. The Transport Equipment is the Group's domi-
nant business area. lts operations are con- ducled by separate operating seetars for cars, trucks, buses, marine and industrial engines, and aerospace. A significant strat- egy of the transport equipment businesses is the development, where possible, of component parts !hat may be used, or read i ly adapted for use, in other transport equipment products of the Group.
Transport Equipment-Cars. Volvo's ear business includes the design, manufacture, assembly and marketing of a wide range of quality cars; prestige mode Is, upscaled medium-size
tam
i ly cars, smaller family cars, and a sports model.Volvo cars are manufactured mainly through Group subsidiaries, at four princi- pal assembly plants, three ofwhich are in Sweden and one in Belgium. In addition, the smaller ear Iines are manutactured in the Netherlands by Volvo Car BV.
Transport Equipment-Trucks. Volvo is the world's seeond largest producer of heavy (Glass 8) trucks. Through Volvo Truck Corporation, a Group subsidiary, Volvo designs, manufactures, assembles, markels and services tour basic ranges of Volvo trucks. The main productian tacilities are in Sweden, Belgium, Great Britain, Portugal, the United States, Brazil, Peru and Australia.
Transport Equipment- Buses. Th ro u g h the Group subsidiaryVolvo Bus Corpora- tion, Volvo is the seeond rargest manu- facturer of heavy buses and bus chassis with in the OECD countries. The Company generally designs, develops, manulac- tu res, assembles and markels bus chas- sis, buses and components under the
main productian facilities are situated in Sweden, Great Britain and Brazil.
Transport Equipment- Marine and lndustrial Engines.AB Volvo Penta, also a Group subsidiary, designs, manufac- tures, markels and services engines, transmissions, accessories and equip- ment for the marine and industrial engine m arkets.
Transport Equipment-Aerospace.
Through the Group subsidiaryVolvo Flyg- motor AB, Volvo is engaged in the pro- ductian of jetengines and components for military and commercial aircratt and for space projects. Volvo Flygmotor also has a growing number of commercial non- aviatian products, including specialized hydraulic machinery, gas turbines, heaters for boats and vehicles, and transmission systems.
Food. As a part of the merger of Beijer- invest early 1981, Volvo acquired a group of food companies. After lurther acquisi- tions, the food activities of Volvo we re, prior to the end of J une 1990 conducled through Provendar AB, a former Group subsidiary. The Provendar campanies constituted the seeond largest food group in Sweden. This group manufactures brand name consumer products, includ- ing processad meat and fish products, . potato products, sugar, mineral water, pre- served and deep-frozen vegetables and convenience foods. The group also in- cludes a company active in plant breeding and the productian and sales of farm and garden seeds.
In J une 1990, Volvo exchanged all Proven- darshares forshares in Proeardia AB (see also next paragraph).
Sale of Provendar AB, Pharmacia AB- partownership In Procordla.
In December 1989, AB Volvo, the Swedish Government and Proeardia AB agreed to combine Volvo's and Procordia's food and pharmaceutical operations with in Procor- dia with a view to strengthening the Swed- ish pharmaceutical industry and creating a more competitive food group. During the spring ot1990 this combination was ettact- ed through an offer to the holders of Phar- macia shares and convertible debentures to transfer their holdings to Proeardia in return for Proeardia shares. At the same time, Volvo offered cash to those Pharma- cia shareholders that prefered such an offer. Shares and convertible debentures purehasad pursuant to the Volvo offers, as weil as the Pharmacia shares previously held by Volvo, were tenderad by Volvo inta the Proeardia offers. Concurrently with the consummation of the tender offers, Volvo exchanged the s hares of Provendar for shares of Procordia. Provendar and Phar- macia will form part of the expanded Food and Pharmaceutical Divisions of Procor- dia AB as of Ju ly 1, 1990. Through a sub- stantia l ownership in Procordia, Volvowill confirm ils lurther involvement in the food sector.
Financial activitles. Management and centroi of the Group's financial activities is exercised bythe Corporate Finance De- partment at Volvo's Head Office. This u nit is also responsibis for the Group' s capita!
structure and manages the holdings of Iisted shares.
Financial activities during 1989 were con- ducled mainly by Volvo Group Finance Sweden AB and Volvo Group Finance Europe BV, two wholly owned subsidiaries
managing the g reater part of the Volvo Group's liquid funds and investment in bands as weil as handling currency trad- ing and short-term financing for Volvo Group Companies.
Volvo's holdings at the end of J une 1990 included:
(1) a 39 percent interest in the voting power ( 43 percent of the equity) in Procordia, the parent c om p a ny of the newly enlarged Proeardia group with operations in phar- maceuticals/biotechnology, food and ser- vices, as a resull of the combination of the operations of Provendor, Pharmacia and Procordia. lt is anticipated that the Swed- ish government and Volvowill each own approximately 43 percent of Proeardias voting power and equity after certain con- versions of Proeardia s hares hel d by Volvo and the Swedish government.
(2) 27 percent of the voting rights (24 per- cent of the equity) in AB Custos, an invest- ment companywith substanfial interests in publicly-tradad Swedish industrial com- panies, real estate campanies and banks, w h ich also owns seven percent of the voting rights (three percent of the equity) in AB Volvo;
(3) a 47 percent interest in lnvestment AB Cardo, a mixed investment companywith operations in the industrial equipment and medical equipment areas and a diversi- fied investment portfolio, including five percent of the voting rig hts (two percent of the equity) in AB Volvo;
(4) a 49 percent interest in AB Catena, whose operations include a dealer net- work !hat retails Volvo' s transport equip-
ment and other products in the Nordie area and with in the EC;
VOLVO IN BRIEF
(5) a 36 percent interest in Protorp Förvalt- nings AB, an lovestment companywith substantial interests in publicly-traded Swedish construction and building materials campanies which also owns four percent of the voting rights (two percent of the equity) in AB Volvo;
(6) a 20 percent interest in Saga Petro- leum a.s., a publiclytradad Norwegian company. Saga participales in con- cessions for oil and gas in the Norwegian seetar of the North Sea and operates certain of these con cessions.
Volvo's other major investments include:
(1) a 26 percent interest in Park Ridge Corporation, the parent company of Hertz Corporation, the world's l argest ear rental company;
(2) a 20 percent interest in l. J. Holdings Corporation, the parent company of Mins- tar lnc. and Genmar lndustries lnc., which is North America's largest independent group of boatbuilders;
(3) a 50 percent interest in VME Group NV, a holding companyformed by Volvo and Clark Equipment Companywhich includes the former construction equipment busi- nasses of Volvo and Clark;
(4) a 30 percent interest in Volvo Car BV, a Dutch company, 70 percent ofwhich is owned by the Dutch state. Volvo Car BV produces Volvo cars in the medium-size 300 and 400 series.
Other Operations. The Group also con- ducts actlvities in other areas, including ear insurance and reinsurance operations related to Group risks.
Recent and upcoming events
Planned cooReration with Renault. At the end of February 1990 it was announced that the Volvo Group and Renault, the French automotive manufacturer, intended to sign a comprehensive cooperation agreement. The objective is to strengthen the competitiveness of each company through technical and industrial coopera- tian in ear, truck and bus operations.
Productian and marketing is not directly affected. Each companywill retain its iden- tity, as weil as its trademarks and distribu- tion channels. The campanies will cooper- ale on product development programs, primarily in the areas of advanced engine and component technology, and in pro- cursment of components. lndustrial re- sources will also be utilized more efficient- ly through coordinated lovestment plans.
AB Volvo intends to acquire 20 percent of the voting rightsand s hares, with an option to acquire an additional tive percent, in the parent company that Renault w iii form.
Renault intends to acquire 25 percent of Volvo's ear operating sector. In addition, the campanies plan to acquire 45 percent of each other' s truck and bus operations.
At the Annual General Meeting of AB Volvo on April 25, 1990, the Board of Di- rectors was authorized to sell 25 percent of Volvo's ear operations and 45 percent of the Group's truck and bus operations to the Renault companywithin the frame- work of the planned cooperation with Renault. Negotiations are currently under way with a view to reaching a final agree- ment.
In addition to the above, Renault plans to acquire shares equivalent to 10 percent of the voting rightsin AB Volvo through pur- chasas in the open market To facilitate this acquisition, the Annual General Meeting also approved a change in AB Volvo's
Articles of Association whereby the number of unrestricted shares may amount to a maximum of 30 percent of the total nu m- ber of voting rights in the Company, cam- pared with a maximum of 24 percent earli- er. Approval of the Swedish Government is required for this change.
Sales organlzation
Volvo starled exporting cars already in its seeond year of operation. TodayVolvo products are sold throughout the world and about 80 percent of the Group's sales are to customers outside Sweden.
The Transport Equipment business seetar of the Volvo Group has a worldwidesales network with its own sales campanies in Sweden, Denmark, Finland, Norway, Great Britain, West Germany, Switzerland, Bel- gium, The Netherlands, France, ltaly, Spain, the United States, Canada, Argen- tina, Brazil, Peru, Japan and Australia.
AB Catena (formerly AB Volvator), in which company Volvo has a 49 percent interest, has a nu m ber of dealerships in the Nordie countries and within the EC.
Volvo cars are sold to retail customers through about 2,150 dealers. The nu m ber of service shops is approximately 2,650 and roughly, on e out of every three persons in Volvo Cars' international organization is engaged in some form of customer-sup- port service. Substantially all of Volvo's dealers are independent, and so me have more than on e outlet. Approximately 13 percent of the sales outlets are located in the Nordie region, 62 percent in Western Europe (excluding the Nordie region), 18 percent in North America and seven
percent in other markets. Volvo has 1,200 independent outlets for truck sales in Western Europe and the United States, 200 ofwhich are outlets ofWHITEGMC and Volvo.
The Group generally does not provide financing to wholesale or retail antities out- side the Group or retail financing to lodi- vidual purchasers. Dealers normally obtain any required financing from local banks, which often also provide retail financing when necessary, except in certaln coun- tries, where bank financing is augmenled by financing from Volvo subsidiaries or af- filiates. The Group providesits own financ- ing for completed products and carries themas inventory until such products have been purehasad by unaffiliated dis- tributors or by dealers from Volvo-owned distributors.
In 1989 Group sales by market area were as follows:
SEKM Percent
Sweden 18,724 21
Nordie area,
excluding Sweden 6,889 7 Europe, excluding
Nordie area 28,908 32
North America 26,451 29 Other markels 10,000 11
Group total 90,972 100
The Group considers that its marketing organization is weil equipped to handie the increasing volume of sales expected in the future.
5
VOLVO IN BRIEF
Capital expenditures and financing Over the five-year period 1985-1989, the Group invested same SEK 21,000 M in property, plant and equipment, the greater part-approximately77 percent-of these investments were made in Sweden. Most expenditures we re related to the gradual expansion of productian capacity, but expenditures in new facilities for tech- nological development, and for the streng- thening of the marketing organization, have also been significant.
Capita l expenditures by operating seetar in 1989 we re as follows:
SEK M Percent
Cars 3,633 59
Trucks 781 12
Buses 206 3
Marine and
industrialengines 106 2
Aerospace 483 7
Food 459 7
Other operations and earparate capita!
expenditures 613 10
Total 6,281 100
Capita! expenditures which had been approved but not yet implemented amounted at year-end 1989 to SEK 8,400 M. Projects total i ng approximately SEK 6,100 M are scheduled for 1990, and approximately SEK 2,300 M for 1991 or later years.
The distribution of these capita l expendi- tures, by operating sector, was as follows:
SEK M
Cars 5,400
Trucks and Buses 2,000
Aerospace 400
Food 200
Other operating seetars
and earparate investments 400
Total 8,400
Operating resulls and the Group's policy of consolidatian have made possible a !arge measure of interna! ly generaled financing of investments. The Group's untaxed reserves rase by some SEK 8,300 M between 1985 and 1989.
Personnel
The nu m ber of employees in the Volvo Group changed insignificantly du ring 1989, amounting at year-end to 78,700, of whom 54,700 were located in Sweden.
Wages, salaries and social costs in- creased by 11 percent, to SEK 16,875 M, du ring the year.
The nu m ber of employees in the Swedish seetar of the Group declined <;Jue to the sale of Hilleshög AB and STC Scandinav- ian Trading Company AB. The nu m ber of employees increased in the transport equipment seetars of the Group; in total the nu m ber of employees in Sweden de- el i ned by slightly more than 200 persons.
About 70 percent of Volvo's 78,700 em- ployees are in Sweden. In Western Euroupe outside Sweden, Volvo employs 14,000 persons, mainly in Belgium and Great Britain. Approximately eight percent of the Group's workforce is employed in North America, about three percent in south America (mostly in Brazil), and two percent elsewhere throughout the world.
Du ring the five-year period, the i nerease has been most apparent in Sweden in the Food operating sector. The largest in- creases in Europe, excluding the Nordie region, have occurred in Belgium and Great Britain.
The distribution by operating seetar was as follows at year-end 1989:
C ars Trucks
Buses
Marine and industrial engines Aerospace
Food
Other operations and central services Group total, approx.
Research and development
34,750 20,350 3,800 2,600 3,600 8,300 5,300 78,700
Volvo maintains an extensive and contin- uing research program. Research and de- velopment costs have expanded in recent years and reached SEK 6,176 M in 1989.
In addition to research and development related to automotive products, the Group has devoted substantial ettorts to im proving the working environment of ils employees.
In particular, new methods of assembly and new materials handling systems have been developed. The Group believes that it has significant expertisa in the design and operation of assembly plants.
Suppliers
Through Group subsidiaries, Volvo manu- factures certain major automotive compo- nents, including engines, transmissions and rear axles. In addition, Volvo and Volvo Car BV purehasa raw and semi- finished materials, many components (in- el ud i ng several major components) and numerous parts for automotive products from outside suppliers (including other aulamobile manufacturers).
Certain ofVolvo's suppliers produce com- ponents pursuant to cooperation agree- ments. Although the failure of a significant supplier to provide Volvo with components or parts could disrupt vehicle productian to a material extent, the Group believes such an occurrence is u n Iikeiy and that its supplier arrangements attord it flexibility to respond to occasional shortages.
Volvo purehasas many components from independent manufacturers; a large pro- portion of its components for transport equipment is purchased outside of Sweden.
In 1989, approximately 25 percent of the value of the Group' s total purchases for transport equipment productian purposes came from Sweden, three percent from other countries in the Nordie Area, 43 per- cent from other European countries, 19 percent from North America and ten per- cent from other regions.
For technical and economic reasons, Volvo-designed components are often
manufactured near the Volvo plant in which the part is to be used. Same parts designed in cooperation with specialized suppliers are distributed to manufacturers in all countries in which the Group as- sembles products. Group campanies sel- ect their suppliers carefully and strive to maintain good working relationships with the m.
VOlVO IN BRIEF
Envlronmental policyforthe Volvo Group. The newfinishing plant in the Volvo Tors- A revisad environmental policy for the landaWorksis expected to be placed in Group was adopted during the autumn of service during 1991. New processing and 1989. The president of each Volvo campa- cleaning technologies and new materials ny is responsible for implementing mea- are being used to sateguard the environ- sures in accordance with the policy guide- ment. To restri et the discharge of hydro- lines. In certain companies, environmental carbons, a new solvent-free material for councils were formed and action pro- underbody sealing was introduced, eftac- grams for the next three to five years were tive January 1,1990. Volvo is the first ear adopted. The first intern al environmental manufacturer in the world to u se this rna- audit was earriad out at the Volvo Olof- terial for the g reater part of cars' under- ström Plant. Based on the experience coating. The program to eliminale the use gained there, similar audits will be con- of freons was accelerated to-if possible ducted in six Volvo campanies in Sweden -achieve this objective more rapidlythan and two outside the country du ring 1990. required in accordance with Swedish law, Nearly SEK on e billion of the capita l ex-
penditures in 1989 can be attributed to programs designed to improve the interior and exterior environment.
An ever increasing percentaga of the Group's expenditures for property, plant and equipment are motivated by environ- mental considerations. lmproved cleaning equipment, more environmentally accept- able manufacturing processas and the use of new materials are becoming in- creasingly important factors in evaluating the need for investments. Environmental considerations will be assigned even g reater weight in the future. Volvo's current objectives and plans are estimated to in- volve environmental investments amount- ing to between three and four billion kro- nor during the next five years.
currently the strictest in the world in this area. Nearly 4,000 Volvo employees underwant basic training in environmental courses during 1989.
Shareholders
Volvo has approximately 170,000 share- holders. About 10 percent of the Volvo share capita! is owned by persons or insti- tutions outside Sweden. The company has no deminating owner interests.
Volvo's shares have been Iisted on the Stockholm Stock Exchange since 1935.
Since the listing on the London Stock Ex- change in 1972, trading in the shares has become more international (see page 21).
7
NOTES
Financial Statistics, Consolidated
statElments of lncome 1979-1989 Page 10
Balance Sheets, Oecember 31 1979-1989 11 Capttal expendttures 1979-1989
Research and development costs 1980·-1989
statements of Changes m Fmanctal Postflon 1979-1989 12 Quarterly sales and income 1979-1990 13
Sales by operatmg seetur 1979-1989 14 Sales bl market area 1979-1989
Exports from Sweden 1979-1989 lncome by geographtcal area 1980-1989 Assets by geographtcal area 1980-1989
Operat1ng m come by sector 1979-1989 15 Assets by seetar 1979-1989
Return on cap1tal 1979-1989 16 Key F1nanc1al Rattos 1979-1989
Capttahzatton Dec. 31, 1989 17
-
FINANCIAL STATISTICS, CONSOLIDATED
1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
statements of lncome for Sales 23,472 23,803 48,017 75,624 99,460 87,052 86,196 84,090 92,520 96,639 90,972 1979-1989 (SEK M) Less: Cost of operations 21,521 22,081 45,039 71,032 93,551 79,202 78,159 75,699 83,845 87,318 83,620 Operating income betare depreciation and amartization 1,951 1,722 2,978 4,592 5,909 7,850 8,037 8,391 8,675 9,321 7,352 Less: Depreciation and amortization 649 676 1,012 1,297 1,573 1,402 1,725 2,062 2,213 2,293 2,535
Operating income 1,302 1,046 1,966 3,295 4,336 6,448 6,312 6,329 6,462 7,028 4,817
Jncame from equity method investments 1,015
Add: Interest received less paid (72) (56) (427) (564) (417) 249 421 345 677 952 734
Other in come (expense) 2 3 132 195 86 138 110 218 1,311 213 148
Foreign exchange gain (loss) 12 14 (246) (721) (226) (551) 759 445 561 (126) (60)
lncome afterfinancial incame (expense) 1,244 1,007 1,425 2,205 3,779 6,284 7,602 7,337 9,011 8,067 6,654
Extraordinary items 235 1,363 193 176 413
Minority interests in income (56)
lncome betare allocations and laxes 1,244 1,007 1,425 2,440 3,779 7,647 7,602 7,530 9,011 8,243 7,011 Less: (AIIocation to) reallocation from:1>
General inventory reserves (460) (177) (347) (794) (104) 919 (374) 887 (1,309) (591) (146)
Extra depreciatian 11
o
(252) (42) (32) 1 141 370 790 964 934 1,066lnvestment reserves 21 (223) (296) (279) {434) (2,845) (5,386) (2,315) (2,965) (2,789) (2,883) (8) Other allocations 31 (2) (149) (36) (88) (33) (58) (1 ,011 )41 (1 ,406)51 (292)61 22971 (547)81
Jncome betare laxes 669 133 721 1,092 798 3,263 4,272 4,836 5,585 5,932 7,376
Less:Taxes 240 83 222 508 752 1,624 1,713 2,249 2,220 2,500 2,248
Minority interests in income (13) (12) (46) (88) 158 (74) (13) (36) (74) (103)
Net incame 416 38 453 496 204 1,565 2,546 2,551 3,291 3,329 5,128
1) All allocations represent untaxed reserves provided by the 3) Work environment reserve, extra appropriation to in- 51 lncludes allocalions to payroll reserves, SEK 1,057 M, and legislatian in Sweden and som e other eau ntries. s u rance reserve, noncu rrent asset replacement reserve, exchange reserves, S EK 2 68 M.
21 lncluding special investment reserve for1983 and exchange reserve and as of 1985 development reserve. 6) lncludes allocation to exchange reserves, SEK 249 M.
following years. lncludes payroll reserve from 1986.
71 lncludes reallocation from exchan ge reserves, S EK 511 M 4) lncludes allocations to development reserves, SEK 581 M, and allocation to insurance reserve, SEK 291 M.
and to exchange reserves, SEK 353 M.
8) lncludes allocation to insurance reserve, SEK 797 M.
FINANCIAL STATISTICS, CONSOLIOATED
1979 1980 1981 1982 1983 1984· 1985 1986 1987 1988 1989
Balance Sheets at year-end Anets 1979-1989 (SEK M)
Liquid lunds 3,515 3,592 5,476 7,250 11,625 11,900 14,394 17,777 22,497 15,632 18,470
Receivables 4,450 4,618 8,546 10,528 10,706 13,265 11,244 12,346 12,724 13,945 15,837
lnventories 7,921 8,783 11,580 14,341 15,415 15,462 16,044 18,235 16,561 19,401 19,411
Current assets 15,886 16,993 25,602 32,119 37,746 40,627 41,682 48,358 51,782 48,978 53,718
lnvestments inbonds 1,664 3,956 3,455
Resfrieted d eposils in Bank of Sweden 64 38 208 221 264 1,762 2,823 1,180 1,721 4,034 5,293
Other assets 5,042 6,088 10,835 13,935 15,496 15,240 18,288 22,644 22,895 29,983 35,677
Total assets 20,992 23,119 36,645 46,275 53,506 57,629 62,793 72,182 78,062 86,951 98,143 Uabilities and shareholders' equlty
Current liabilities 8,897 9,635 17,388 21,484 26,631 26,066 26,856 31,548 31,368 34,500 42,846 Long-term liabilities 4,086 4,600 8,535 10,904 9,706 9,005 9,285 9,398 9,752 10,605 9,258
Minority interests 238 327 451 732 757 229 116 132 340 484 414
Untaxed reserves 4,848 5,717 6,458 7,846 10,832 14,973 17,738 20,980 24,338 26,528 26,044
Shareholders' equity 2,923 2,840 3,813 5,309 5,580 7,356 8,798 10,124 12,264 14,834 19,581 Totalliabilities and shareholders' equity 20,992 23,119 36,645 46,275 53,506 57,629 62,793 72,182 78,062 86,951 98,143
Assets pledged 2,665 2,921 5,149 5,500 5,915 3,516 3,033 2,959 1,943 1,997 2,427
Conlingent liabilities 1,667 1,972 2,060 3,289 3,182 2,620 2,106 2,830 3,417 3,095 2,986
C&pital expendltures for By market area
property, plant and Sweden 729 1,405 1,311 1,332 1,665 1,874 2,830 2,713 2,976 2,914 4,812
equipment Nordie area, excluding Sweden 32 22 69 33 64 26 21 50 32 39 119
1979-1989 (SEK M) Europe, excluding Nordie area 184 203 147 206 275 374 384 392 501 565 1,012
North America 9 13 883 747 354 134 189 178 256 334 228
Other markels 8 14 104 28 39 181 82 92 99 96 11
o
Total 962 1,657 2,514 2,346 2,397 2,589 3,506 3,425 3,864 3,948 6,281
By operating seefor
Cars 654 1,013 688 575 678 1,017 1,576 2,047 2,455 2,146 3,633
Trucks 163 288 453 361 379 452 574 484 628 734 781
Buses 11 11 52 27 64 47 48 67 37 92 206
Marine and industrialengines 23 18 55 17 37 81 96 104 73 81 106
Aerospace 50 242 157 217 80 207 203 133 146 228 483
Food 47 46 76 97 105 334 260 407 459
Trad in g (and Energy) 1> 754 846 254 249 10 17 22 9
Construction equipment 48 57 70 98 137 106
lndustrial equipment campanies 119 115 180
Other operations and earporale capita! expenditures 13 28 119 44 512 333 894 239 243 251 613
Total 962 1,657 2,514 2,346 2,397 2,589 3,506 3,425 3,864 3,948 6,281
Research and development
costs, 1980-1989 (SEK M) 1,593 1,617 2,002 2,508 3,304 3,817 4,563 4,621 5,139 6,176
1 l See nate on i n sid e cover.
11
FINANCIAL STATISTICS, CONSOLIDATED
1979 1980 1981 1982 1983 1984 1965 1986 1987 1988 1989
statements of Changes in Operations
Financial Position Net income 416 38 453 496 204 1,565 2,546 2,551 3,291 3,329 5,128
1979-1989 (SEK M) Depreciation and amortization 649 676 1,012 1,297 1,573 1,402 1,725 2,062 2,213 2,293 2,535
Adjustments in untaxed reserves 575 874 704 1,348 2,981
Decrease (increase) in restricted
4,384 3,330 2,694 3,426 2,311 (365)
deposits in Bank of Sweden (1 O) 26 (170) (13) (43) (1,498) (1,061) 1,643 (541) (2,313) (1 ,259)
Funds provid ed by year's operations 1> 1,630 1,614 1,999 3,128 4,715 5,853 6,540 8,950 8,389 5,620 6,039 Changes in working capita/ components:
Decrease (increase) in current operating assets:
Receivables (561) (168} (3,928) (1,982) (178) (2,559) 2,021 (1 '1 02} (378) (1,221) (1 ,892)
lnventories (961) (863) (2,797) (2.761) (1,074) (47) (582) (2,191) 1,674 (2,840} (10)
lncrease (decrease) in current operating liabilities:
Accounts payable 485 (27) 2,539 993 399 410 (170) 231 633 403 472
Advances from customers 153 345 (22) 31 (49) (37) 9 136 (76} 438 243
Other current liabilities 604 (38) 2,321 1,250 1,858 47 513 3,617 411 510 (657)
N et financing from year's operations 1,350 863 112 659 5,671 3,667 8,331 9,641 10,653 2,910 4,195
lnvestments (increase)
lnvestments in shares-net (66) (122) {1,390) {1,624) 262 (2,215) (1 ,485) (1,988) 666 {1,896) (1,873)2>
lnvestments in property, plant and equipment, etc:
Capita! expenditures (962) (1,657) (2,514) {2,346) (2,397) (2,589) (3,506) (3,425) {3,864) (3,948) (6,281) Disposals. Acqu isitions and sales of campanies 53 24 (967) 616 (183) 3,282 (5) (1,187) 342 108 698
lnvestments for leasing purposes (693) (223)
long-term receivables and loans-net 3 (21) (435) (378) (674) 457 4 114 139 (3,008) 36
Remaining alter net investments 378 {913) (5,194) (3,073) 2,679 2,602 3,339 3,155. 7,936 {6,527) {3,448) Externa/ financing, dividends etc:
lncrease (decrease) in short-term loans 398 561 2,915 1,822 2,939 {985) 438 708 (1 ,148) 1,781 8,288 lncrease (decrease) in long-term liabilities 257 412 3,935 2,369 (1 '198) {701) 280 113 354 853 {1,347)
Share issue 212 482 608 304 237
l nerease (decrease) in minority interests 13 89 124 281 25 (528) {113) 16 208 144 (70)
C hanges in composition of Group,
transiatio n differences etc (4) 97 {209) 18 {34) 49 {1,039) 51 (248) {9)
o
Dividends paid (124) (169) (169) {251) (340) (399) {411) (660) (718) (815) (1,086)
lncrease (decrease) in liquid lunds
and investments in bands 1,130 77 1,884 1,774 4,375 275 2,494 3,383 6,384 (4,573) 2,337
lnvestments in bonds-net (1,664) (2,292) 501
lncrease (decrease) in liquid lunds 1,130 77 1,884 1,774 4,375 275 2,494 3,383 4,720 (6,865) 2,838
1) In evaluating lunds provided bytheyear's operations and 2) The increase in 1989 was SEK 2,340 M, ofwhich SEK 467 M In 1he statement of changes in financial position for the degree of self-financing, il should be noted thai net was anadjustment of stat ed Group va lues in connection 1989, the i nerease in Shares and participations, SEK 1,873 M, income has been charged with write-ups on long-lerm with the change to the accounting for associated compa- excludes this nonrecurring eftect. However, the latter loan liabilities. (See Foreign exchanoe Qain (loss) in the nies in accordance with the equlty method. amount includes SEK 112 M, the eftect on 1989 income
statements of lncome on page 10.) (aMer tax) of the equity method.
i'INNIICIAL STATlSTICS, CONSOLIDATED
Quarterly sales and income 1979-1990
Sales (SEK M}
1st quarter 2nd quarter 3rd quarter 4th quarter Full year
lncome before alloestlons and taxes (SEK M) 1st q u arter 2nd quarter 3rd quarter 4th quarter Full year
lncome pershare 11 (SEK} (50 percent tax}
1st quarter 2nd quarter 3rd quarter 4th quarter Full year
lncome pershare 11 (SEK) (30 percent tax) 1st quarter
2nd quarter 3rd quarter 4th quarter Full year
Approximate net income in accordance with U.S. generally accepted accounting principles (SEK M)
Approximate net income pershare in accordance with U.S. generally accepted accounting principles (SEK)
11 lncome pershare is calculated as income divided by the weighted averaga number of sheres outstanding du ring theyear. lncorne includes lncome before allocations and laxes reduced by a standard tax charge. Up to 1989 the standard tax charge was determined byapplying a 50 per- cent tax rate to pretax lncome adjusted fortax-free divi- dends received. From 1990 the standard tax charge is 30 percent Adjustments have been made for stock split and lo r new issues of shares.
1979 1980 1981 1982 1983
5,320 5,921 5,761 14,946 23,631 6,376 5,651 13,089 19,168 26,269 5,128 5,578 12,320 17,392 21,583 6,648 6,653 16,847 24,118 27,977 23,472 23,803 48,017 75,624 99,460
235 385 280 516 1,025
410 220 424 1,004 1,392
216 201 286 408 793
383 201 435 512 569
1,244 1,007 1,425 2,440 3,779
3.00 4.10 3.00 3.90 7.00 5.30 2.40 2.70 7.50 8.80 2.30 2.10 2.30 2.60 4.80 4.10 2.20 2.90 2.20 3.70 15.30 10.80 11.60 15.70 24.30
419 687 850 1,496
9.00 11.90 12.70 19.80
21 lncludes extraordlnary l neo me of SEK 744 M, equal to SEK 9.60 per sh are.
31 lncome in 1986 was charged with a write-<lown of SEK 500 M on the book val u e of shareholdings equal to SEK 6.40 per share.
1984
21,687 21,930 19,091 24,344 87,052
2,600 3,466 921 660 7,647
15.60 21.90 5.60 3.40 46.50
4,100
52.90
1985 1986 1987 1988 1989
21,809 20,661 21,635 21,422 23,067 20,470 21,519 22,717 24,337 23,482 20,060 18,798 21,875 22,225 19,241 23,857 23,112 26,293 28,655 25,182 86,196 84,090 92,520 96,639 90,972
2,167 2,410 1,982 1,462 2,18841 2,001 2,238 2,247 2,379 2,289 1,552 1,283 1,558 1,616 2,030 1,882 1,599 3,224 2,786 50451 7,602 7,530 9,011 8,243 7.011
13.10 15.50 12.70 9.20 14.0041 12.40 14.40 14.70 15.50 14.90
9.40 8.10 9.60 10.10 13.1
o
14.30 10.20 20.80 18.00 3.2051 49.20 48.20 57.80 52.80 45.20
12.90 19.70 21.30 20.70 14.20 18.30 25.00 4.6051 73.40 63.30
4,47821 2,95631 4,636 4,953 5,400
57.702> 38.1031 59.70 63.80 69.60
4) Effective in 1989, V~vo Is accounting for holdings in asso- cialed campanies in accordance with the equity method.
51 lncome in the fourth quarterof1989was chargedin a total amount of SEK 794 M pertaining to the amortization of goodwill in connectionwith the acquisition of Volvo Con- cesionarios, S.A., Spel n and a change in the principle applied in valuing consumable items and spare perls for fixed assets.
1990
21,675
1,058
9.50
13
FINANCIAL STATISTICS, CONSOLIDATED
1979 1960 1961 1962 1963 1984 1985 1966 1967 1968 1969
Sales by operating sector C ars 12,617 11,980 13,569 18,109 26,262 30,304 33,956 35,978 38,523 39,462 42,944 1979-1989 (SEK M) Trucks 5,991 6,562 8,209 10,793 11,576 15,219 15,692 15,923 17,938 22,762 24,862
Buses 632 794 1,030 1,028 1,131 1,336 1,660 1,758 2,006 3,384 3,682
Marine and industrial engines 996 1,128 1,308 1,508 2,011 2,238 2,257 2,088 2,361 2,567 2,713
Aerospace 571 637 590 919 957 1,152 1,426 1,675 1,990 2,287 2,403
Food 1,889 3,171 4,429 4,947 5,393 8,632 9,527 10,458 9,298
Trading (and Energy) 1> 14,638 33,512 45,819 27,698 21,504 13,562 15,613 11,161
Construction equipment 2,242 2,259 2,277 2,203 2,664 2,851
lndustrial equipment campanies 2,118 2,967 3,625
Other operations 2) 423 443 2,389 1,414 986 1,307 4,308 4,474 4,562 4,558 5,070
Group total 23,472 23,803 48,017 75,624 99,460 87,052 86,196 84,090 92,520 96,639 90,972
Sales by market area Sweden 5,721 5,927 9,341 10,728 12,233 10,958 12,023 13,846 16,136 18,453 18,724
1979-1989 (SEK M) Nordie area, excluding Sweden 3,079 2,728 3,835 4,207 5,025 5,418 6,211 7,448 7,092 6,717 6,889 Europe, excluding Nordie area 9,252 9,167 9,298 12,206 15,849 16,258 16,789 22,170 26,713 30,215 28,908
North America 2,894 3,014 5,560 9,817 15,380 20,513 24,102 22,988 22,267 23,329 26,451
Other markels 2,526 2,967 5,678 5,959 6,146 6,988 6,573 5,669 6,312 8,353 10,000
Total, excluding o il trad i ng 23,472 23,803 33,712 42,917 54,633 60,135 65,698 72,121 78,520 87,067 90,972
Oil trading 14,305 32,707 44,827 26,917 20,498 11,969 14,000 9,572
Group total 23,472 23,803 48,017 75,624 99,460 87,052 86,196 84,090 92,520 96,639 90,972
Exports from Sweden
1979-1989 (SEK M) 11,607 11,650 15,317 19,130 25,130 30,237 29,842 31,500 29,319 30,151 32,181
lncome before allocations Sweden 757 1,148 1,945 4,015 6,260 5,820 5,075 5,804 5,565 3,515
andtaxes by Nordie area, excluding Sweden 30 42 76 72 117 139 263 274 260 86
geographlcalarea Europe, excluding Nordie area 104 70 281 270 208 313 889 1 '119 1,027 1,965
1980-1989 (SEK M) North America 96 70 102 (591)3l 877 1,077 1,147 1,471 856 706
Other markels 20 95 36 13 185 253 156 343 535 739
Group total 1,007 1,425 2,440 3,779 7,647 7,602 7,530 9,011 8,243 7,011
Assets by geographical area Sweden 15,322 24,606 30,169 33,900 37,370 39,657 45,254 52,967 54,998 62,379 1980-1989 (SEK M) Nordie area, excluding Sweden 1,306 1,802 2,012 1,980 1,866 2,106 2,519 2,453 2,561 3,381
Europe, excluding Nordie area 4,398 4,868 6,010 8,232 6,673 8,610 12,248 12,770 15,867 18,266
North America 1,160 3,976 6,455 7,921 10,336 10,507 9,853 7,467 10,538 10,786
Other markels 933 1,393 1,629 1,473 1,384 1,913 2,308 2,405 2,987 3,331
Grouptotal 23,119 36,645 46,275 53,506 57,629 62,793 72,182 78,062 86,951 98,143
1) See noteon inside cover. 3) lncludes losses of SEK 1,067 M on energy operations.
2) lncludes Construction equlpment sales of SEK 667 M, SEK 796 M, SEK 797 M and SEK 951 M in 1965,1966,1967 and 1986, respee1ively, and SEK 1,061 M In 1969. As regards dealer operations see not e on inside cover.
riNANCIAL STATISncs, CONSOLIDATED
Operating income bysector1l
1979-1989 (SEK M)
Assets by sector 1979-1989 (SEK M)
Ca r s Trucks Buses
Marine and in dustrial en gines Aerospace
Food
Trading (and Energy) 21 Construction equipment lndustrial equipment campanies Other operations
Discontinued operations 31
Operating income
Interest income on receivables and advances included above, and provision for employee bonus as weil as earporale expenses 41 Group total
Cars Trucks Buses
Marine and industrialengines Aerospace
Food
Trading (and Energy) 21 Construction equipment lndustrial equipment campanies Other operations
Discontinued operations earparate assets 5)
Group total
1) lncome betare allocalions, laxes and minority interests by operating see! or for the years 1979-1984 may be obtained bywriting to AB Volvo, Financial Relations, S-405 08 Göteborg, Sweden.
2) See nate on inside cover.
l' Operating res u Ilsfor the energy operations dlsconti nu ed i n 1987 are inciuded In this Item for the years 1985-1987. The 1985 figure consisls mainly of expenses related to the ter- mination of bus productian in the U.S. and the divestment ol STC Recycling. Verkstads AB Smedjan, Kockums Jern- verksaktiebolag and ACS Autocarrier System are included In 1986 and 1987, and 1989 figures include the capita! gain onthesale of HllleshOg AB and STC Scandinavian Trad l ng Company AB.
1979 1980 1981 1982 1983
500 (3) 736 1,801 4,805
892 1,119 1,005 1,188 393
70 72 44
22 83 118 187 316
79 92 139 113 99
89 128 174
(9) 3 (397)
170 184 136 158
188 226
54 (16) (15) (81) 286
(778) 1,717 1,459 2,457 3,795 4,942
(415) (413) (491) (500) (606) 1,302 1,046 1,966 3,295 4,336
8,273 8,363 8,069 10,255 11,493 4,691 6,019 7,882 8,898 7,718 987 828 1,062 1,092 1,182 1,322 826 1,042 1,301 1,562 1,585 1,380 1,529 1,788 3,413 4,916 5,337 2,126 2,096 2,074 2,355 2,353 2,295 2,586 3,409 603 702 1,831 2,286 2,695 3,645 .3,835 7,308 10,706 14,819 20,992 23,119 36,645 46,275
4) Corporate expenses in 1984 include SEK 342 M for the redemption of STC shares. earparate expenses in 1985 include Group eliminations of profit on Interna l sales of snares, wrlte-off of goodwill and costs of contributlons
53,506
to foundations,ln all SEK 351 M. Corporate expenses in 1989 include the write-off in the amounl of SEK 444 M of all Qoodwill in connecllon with the acqulsitlon ofthe Spanish general agency, Volvo Concesionarios, S.A. They also in- clude the effect, amounting to SEK 350 M, of the ch ange In accounting policies related to the valuatlon of consumable i lems and spar e parts for lixed assets.
5) earporale assets consist olliquid lunds, lnvestments in bands, resfrieled deposits in the Bank of Sweden and in- vestments In shares.
1984 1985 1986 1987 1988 1989
5,737 6,138 5,574 4,311 3,601 1,938 1,122 921 1,069 1,606 2,645 2,278
114 60 104 179 293 240
351 330 178 223 215 150
133 187 228 227 276 306
152 167 38 484 125 305
(108) 10 117 36 (35)
151 276 88 287 556 294
(116) (626) (379) (115) 785
7,536 7,463 7,017 7,238 7,676 6,296
(1,088) (1,151) (688) (776) (648) (1 ,479) 6,448 6,312 6,329 6,462 7,028 4,817
11,795 13,926 15,656 15,992 19,805 23,914 7,526 7,893 8,444 8,532 9,687 11,125 874 994 1,129 1,208 2,023 2,309 1,569 1,372 1,485 1,570 1,571 1,61
o
1,672 2,034 2,194 2,229 3,008 3,579 1,842 2,047 6,092 6,029 6,114 5,657 4,818 1,964 1,414 886 775
2,377
2,759 7,437 6,935 7,057 10,234 10,279 279 1,014 997 461
22,118 24,112 27,836 34,098 33,734 39,670 57,629 62,793 72,182 78,062 86,951 98,143
15
