Statistics Fina

Fina . ncial

a d Operati11g Statistics

1995

VOLVO

Volvo Financial and Operating Statistics

Financial reporting

Ervircnmer.tal

~ 1~

Report

on._ ====:::::::::

ttne monttw 1-

^{~ 29. 199ö}

Fonn 20-F 1 a96 nct :dnr

tlw"t

Jme

ro.

1

!P3

Report

on . . .

lix

monlhll1886 Report on

1lrst nlne

month8

1986

~1900

=====

Reporton1880~

AnrMMI Report

188G

The reports shown in bold type are sent directly to shareholders who wish to receive them. These reports can

be

obtained in Swedish and English.

The Annual Report is also available in French.

All reports can be ordered from Volvo, Publications

Dept 7940 ARUN

S-405 08 Göteborg, Sweden Telephone: +46 31-6610 47

Telefax: +46 31-66 20 20

Volvo's financial information is also available on Internet: http://www.volvo.se

In

the financial statements and accompa- nying tables in the notes, parentheses are used to indicate negative figures. All amounts are

in

millions of Swedish kropor (SEK M) uniess otherwise indicated.

History

Volvo was incorporated in 1915 as a subsidiary of AB S.KF, the Swedish ball- hearing manufacturer. In 1924, Assar Gabrielsson and Gustaf Larson, the two founders, decided to start construetion of a Swedish ear.

The original productian models were designed to withstand the rigors of Swe- den's rough roads and cold temperatures.

1his emphasis on durability has been a feature of Volvo products ever since.

·j~27 Productian of cars starts in Göte- borg, Sweden. A total of 297 cars is produced in that year.

1 S28 Start of truck produetion.

1930 Aequisition of the engine manufae- turer, Pentaverken, Skövde.

19~· Start of bus chassis productian and marine engine production.

i935 Shareholders of SKF AB receive AB Volvo shares as a bonus. With a share capita! of SEK 13 million, AB Volvo is introduced on the Stockholm Stock Exchange.

i941 Acquisition of majority holding in Svenska Flygmotor AB, now Volvo Aero.

1S42 Acquisition of the gearbox manu- facturer, Köpings Mekaniska Verk- stads AB.

1 S44 lntroduction of the PV 444 ear mode!.

1950 Acquisition of the construction equipment manufacturer, AB Bolinder-Munktell, later part of the VME Group (now Volvo Con- struction Equipment).

1il55 Frrst Volvo cars shipped to the United States.

'iS55 Import company established in North America

1953 Presentation of Volvo Penta Aqua- matic inboard engine with out- board drive.

i 9G3 Start of ear assembly in Halifax, Canada.

1934 Inauguration of the Tarslanda ear plant.

i965 Start of ear assembly in Ghent, Belgium.

1986 Volvo 140 introduced.

Wfl~

Acquisition of ear body producer, AB Olofström, now part of Volvo Cars.

·w"l~

Presentation of VESC, Volvo Experimental Safety Car. New

truck plant in Australia. Acqui- sition of 33% of the s hares in the

Dutch passenger ear manufacturer DAF (now NedCar). Acquisition of the truck plant in Scotland.

1 ~i'? 4

Introduction of Volvo 240.

· !. i<J.f'a First catalytic converter with

lambda sond presented.

~{i(ö

New truck plant in Thve, Göte- borg. New bus plant

in Borås, Sweden.

~~·~~Volvo Fl

"Truck of the Year".

Inauguration of the truck and bus plant in Curitiba, Brazil.

i~Z·t

AB Volvo acquires Beijerinvest AB, with interests in oil trading, food industry, etc. Purchase of American truck operations, now Volvo GM Heavy Truck Corpo- ration.

1~~:!

Introduction of Volvo 760.

·~~;}

Food established as a separate

operating sector. Acquisition of a

20% interest in Saga Petroleum, Norway.

N~4

Volvo FlO Intercooler "Truck of the Year." Acquisition of shares in Protorp and Cardo.

Hlf;..lt

Merger ofVolvo's and Clark Equipment's construction equip- ment operations in the VME Group. Acquisition of Custos and Pharmacia shares.

~~ti~t

Volvo FL truck range "Truck of the

Year".

~r..f!e

Acquisition of Leyland Bus Group Ltd. Introduction of Volvo 440.

Inauguration of Volvo Uddevalla ear assembly plant.

'i~.:::\

A new truck assembly plant in Orrville, Ohio.

.,~-JI.W

An alliance agreement based on a cross-ownership structure was signed with Renault.

Sale of Volvo's food sector and holding in Pharmacia in exchange

for part ownership in Procordia

AB. Introduction of Volvo 940/960.

·i!'t:Ji

Introduction of Volvo 850. Agree-

ment with Mitsubishi regarding development and productian of medium-elass cars at NedCar.

1~·

Division of Procordia'

s operations into two parts,

whereby BCP (the

consumer product group) became a subsidiary within the Volvo Group.

Introduction of the Volvo FH

series, a new family of heavy

trucks.

Decision of the Volvo Board to withdraw the proposal for a merger of Volvo's automotive operations and Renault.

1 ~91,

The Volvo FH series "Truck of the Y ear."

Dissolution of the alliance with Renault.

Divestment of

shares in non-

autornative companies. Remairring holdings brought tagether within the Fortos Group.

The first Volvo bus in China was produced byXianSilver Bus.

·:ro~;

AB Volvo aquired the remaining 50% of the outstanding shares in Volvo Construction Equipment (forrnerly the VME Group). In J une Volvo aquired 51% of the Canactian bus manufacturer Pre- vost Car Inc.

Two new ear models, Volvo S40 and Volvo V

40 we re presented.

Volvo Buses' B12-600 was desig- nated "Coach of the Y

ear 1996"

The Volvo Environmental Con-

cept Truck and Environmental

Concept Bus were introduced.

Group Structure

Volvo's operations are concentrated on the automotive and transport vehicle industry. The objective is to further s trengthen the Group's position in the passenger ear sector and develop its posi- tion as one of the world's leading manu- facturers of trucks, buses, construction equipment and drive systems for marine and industrial applications. In the air- eratt engine field, Volvo has substantial resources for the overhaul of engines and

the

development of engine components.

Volvo's core values, quality, safety and environmental care are in harmony with strong fundamental values in today's and tomorrow's societies. Volvo is a learler in the safety field, and its intensive develop- ment work has yielded a number of pio- neering innovations. Volvo is intensifying

its programs in the environmental area

and preparing for a future shift in tech- nology.

cCl cD

19941995

Sales, SEK billion Assets, SEK bilion Employees, thousands

*

the assets of Volvo Buses are included in

Volvo Trucks

Volvc Cm·s

Volvo Cars is among the world's leading specialist ear manufacturers and the lead- ing European manufacturer of station wagons. The focus is to be the leader in safety and to further emphazise design and driving pleasure in its product deve- lopment efforts.

Volvo Trucks is the world's seeond largest manufacturer of heavy trucks, with strong market position in several European countries and in North and South America. The products are distinguished by their high reliability, safety, low main- tenance cost and good fuel economy.

Volvo 6uoots

' ^{· _}

-

^.

Volvo Buses is the seeond largest manu-

facturer of heavy buses in the OECD

countries, with strong and intensifying

efforts in the environmental aspects of

mass transportation. The product range

includes chassis, complete buses and

transport solutions for urban mass transit.

Volvo Construction Eqnipment

is one of the world's largest producers of construc- tion equipment. The company holds pro- minent market positions in Europe, North America and in other parts of the world.

The product range reaches from mini- excavators to rigid haulers with a Ioad capacity of 200 tons.

Volvo Penta

is a global supplier of tech- nically advanced drive systems for leisure craft, commercial vessels and industrial applications. The company holds a very strong pOsition as a supplier of drive sys- tems for leisure craft in Europe, and is the seeond largest supplier of such sys- tems in the U.S.

Volvo Aero's

most important operations are productio n and overhaut of military and commercial aircraft engines. The company also develops and manufactures key components as part of the European Ariane space project, small gas turbines and vehicle components.

Support and services

• Volvo Group Finance Sweden

• Försäkrings AB Volvia

• Volvo narrsport

• Volvo Data

Portos

Volvo's ownership interests outside its core business have been organized in Fortos. The publicly traded holdings below have been transferred to a newly formed subsidiary and the intention of divesting this non-core asssets remains firm.

FoEocs ho!d~i1\?J~ ~'3Cei!OIJ::;;r 3~, 1~6

Subsidiaries

Swedish Match AB Lighthouse of Scotland Ltd AB Fortos Fastigheter

Other holdings

Pripps Ringnes AB ( 49%) Litbells AB (25.2%)

Holberg Industries Inc (23.2%)

Holdings of Iisted shares

luvestment AB Bure (17.7%) Pharmacia

&

Upjohn, Inc. (13.8%) Svensk Interkontinental

Lufttrafik AB ( 4.7%) Spira Invest AB (9.5%)

The figurss within parentheses pertain to Volvo 's percentage of the share capita!.

Sales and production

V olvo's international expansion has occurred against the background of Sweden being a relatively small domestic market.

Today, markets outside Sweden account for nearly 90% of Volvo's automotive sales. Europe and Nort4 America are the main mar- kets but Volvo products are sold all over the world. Forceful efforts are being made in new markets in Asia and Latin America.

Volvo's production system is one of the most global in the auto- motive industry. Development and productian of such strategic key components as engines and transmissions take place in Swe- den, while assembly operations are carried out in wholly and partly owned plants all over the world.

Through cooperation, acquisi- tions and expansion, Volvo has carried out an extensive intema- tionalization during the past two decades. More than 32,000 people currently work in Volvo outside Sweden. The main centers outside Sweden are in Belgium, The Netherlands and United States.

Sales 1995•

•

e~cludmg

Portos

. \\JM'.CII."S - VOt.lo Truct.s . \OMltk.-

... ,.

-löc~

i:q.l;l"""'

•v:Wo~a - lotlllloMto

Total SEK 154,496 M

Sales and production

Produatfon sJtes 1

G.ll1

Re~·

~.":j-!eV•I(

f.k-.. ,.

• nuc~at

( au-. t-us chae~lll ( C'.onlllructJoo (lqUpri\lliTi

IJianoö6

er.,._

C <\lrolft ~n;:.ll"«'&

Ol<la<1·

earplants

Göteborg 132,200 cars

Ghent 144,100 cars

Barn" 79,600 cars

Halifax 6,900 cars

Bangkok 4,700 cars

Kuala Lumpur 2,100 cars

Djakarta' 800cars

Uddevalla' 100 cars

Olofström bedy parts

Skövde gasoline engines, brake discs Köping gear boxes, rear axles

Truck and bus plants

Göteborg 14,340 trucks

Ghent 21,150 trucks

Orrville, New River Valley 28,230 trucks

Kuala Lumpur 350 trucks

Gaberone' 480 trucks

Umeå truck cabs

lrvine 3,930 trucks

920 buses

Wroclaw 930 trucks

Curitiba 5, 7 40 trucks

1,390 buses

Brisbane 1,150 trucks

40 buses

Casablanca' 430 trucks

90 buses

U ma 620 trucks

180 buses

Borås 3,620 buses

Quebec 330 buses

Xian* 90 buses

Säffle bus bodles

Vierma bus bodles

Hellbrann bus bodles

Abenrå bus bedles

Rorthai s' bus bedles

Skövde diesel engines, castings

Köping gear boxes

Lindesberg rear axles

• Ownership 0-50%

Volvo Cars

T he Volvo trademark has Iong been associated with quality, safety and environmental care.

Based on the technical and mar- keting successes of the Volvo 850 and the Volvo 960, Volvo Cars has also strengthened its profile in terms of design and driving pleas- ure. The introduction of the new Volvo S40 and Volvo V 40 cars in the medium-elass segment is part of this trend.

Volvo plans to introduce one new ear model each year during the next five years. Priority will

continue to be given to the family

segment but this will be supple- mented with distinct, customized products such as coupe and cabriolet versions.

With its broad geographical spread and small domestic market, Volvo Cars is unique in the auto- motive industry. More than 85%

of the sales are to customers out- side Sweden.

Research and development take place mainly in Sweden and the production of Volvo cars is concentrated in Sweden, Belgium and The Netherlands. There are

also assembly plants in Canada,

Malaysia, Thailand and lndonesia.

Distribution is bandled through approximately 2,000 dealers in more than a hundred markets.

Passenger care Output Year of Production

Model Body Cyl DlsplacernoHrt kW/hp introduction in 1995

Volvo 960 sedan, estate 6 1,991-2,922 85-150/116-204 1990 42,300

- - - ^{-·---·-------~----····---~---·-·} -·----- - -- ···- -

Volvo 940 sedan, estate 4 1,986-2,316 82-121/111-165 1990 59,500

-

- - -

- - -

-- - - - -

Volvo 850 sedan, estate 5 1,984-2,435 93-176/126-250 1991 189,100

--- -- -- - - ---·--- - - --··- ---·-- -- - --- - -- -- -

Volvo S40N40 sedan, estate 4 1,731-1,948 66-100/90-137 1995 1,100

- ----

^.. - - · · ----·- ---- -- -··---·---· --~---·---·---·---- -···----···-- --

Volvo440/460

hatchback,

sedan 4 1,596-1,998 61-88/82-120 1988/89 78,500

Volvo 850R

The Volvo 850R is a new sporty version in the Volvo 850 series introduced in 1995. It's the high- est performance and fastest standard model Volvo to date.

It

has a 250-hp engine, with manual transmission, developing a torque of 350 N m. With an automatic transmission, the cor- responding figures are 240 hp

and 300 N m. The Volvo 850 R

accelerates

from zero to 100 kph (60 mph) in just 6.7 seeonds and top speed has been limited to 250 kph (150 mph).

standard equipment includes ABS, TRACS (TRAction

Con-

trol System)- an electronic anti-

spin system - viscose clutch, electronic elimate control, on-

board computer, electric win- dows and side rearview mir-

.

rors, fog lights and an advan- ced audio system.

In addition to SIPS (Side

Impact Protection System),

the Volvo 850 is equipped with

driver-seat airbag and SIPS

airbags for the two front seats.

World milir~t~~ trenda

After a weak upturn in 1994, the total market for passenger cars stagnated and 34.6 million cars were sold during 1995. The North American ear market declined by 4%. The European market was largely unchanged.

V~lvoBliO

'

~

A

selaction of

me

s'Nflltl& ~c-.ved

on lt1e \ "JJvo BEO wro1wKle

;,..., 1•

• 1¹194 E'tcellent Swed!Sh Dectgn.

fjwt!d~rlr DeJzgne,' A.IJucurtwn

• 199-~ B~t Import C.ar m Mul.- c.laM, Auto, Motor und Sport

• 1994 BelltEstate Autotlopb)-.

Autou:ztung

• Best lDlpolt m Dlld-cl.a.t.' 1995, Auto, Motor

unJ

Sport

• .Best liDport in m1d-clas~ 1996, Auto, Moror und Sp011

• The Golden Palmtree (station wagon).1994, L'Autolournal

• B"<>t statlvn wa~ (T-5) 1996,

L'Auto Jmonal

• Be..'lt ~tatioo wagon, 1995, Au:o F..xp1r.s.'

Volvos' share in the large-car segment, which includes the Volvo 9401960 and Volvo 850, rose to 10.2% (8.4) in Europe and 8.9%

(7.3) in North America.

• Company ear of the year, pr~bge

cl;us, 1996, f7eet

C4r

^Mag~ine

• ~ 1.tatton wagon.1996, F1ef"t

Managm1ent Magar.ZM

• Diesel ot the year, presttge clr.s (TDI), 1996, D~el Car

• Stat10n wagon of the year, 1996, Fint Nf"W)

• Executi\'C

'.

ear ^of the year, 1995 Duuv tk NUI'lCWS, dall~ newspeper

• Be~t \>alue torthe money, 1995, Auto Tht1, motoring magv:me

1"' lJ l

• ~t buy for 1994.

Com~mteiS Digest

• Best Overall Value, Completr Car CO.Jt Guttk (Sedan & Wagon)

• Best

Buy, Car and Driver

) • Il

• 1994 Good DeMgn Grand Prile, Mmu.try of Intcmatlol1dl 1'rad~ &

lnduUiy

Il.

• Speaal ear of tbe )'ear 1W4 (850 1\nbo), Al Mouha"ek. mag.lline

Worid mat1ult for peuenger cars

Reglstratlons of !'leM' cars, r,'11111()m of •.li"'M

Specialist

ear

rnllnUfacturera, station wagon&, 1995

'Thoo63r.dlt u:lllll proåJood

---

' i ~

i

Humber of Vofvo

cars

sold, 1995 Sweåen,13%

Toia! 3?4,600 c.ars

Product development process

Stmte.gy

t

Pre-study

start Projaet

start

^Project book

i-rozen r.le91gn

Extenor Intenor

Proj9Ct end

~~~~n~~~~n,g -

^{- . . J}

^{1 1 ... __} *_ li _ es _ t ~-~ , -~_y ^{___ __.ll} 'e~?

l

Process requirement

Supplier/

concept

Choice of suppliers

Process engineering

••••••••••

o

The mode! is based on an averaga for the lndust.ry

P~uction

Pre-ttyout

Inmal~

•••••••••••••••••••••••••••••••••••••••••••••••••

12

24

36

lntroduction proJOCt

Productian process at the Tarslanda Plant

p

..tlop

'

Roof

Rightside

l

~~r

L - -

-'j

~: .~---

l _ _ _.

Phosphate Electrocoat

Glass

trimmings,

pane~ etc.

,J ,

'• · o

Parcel she~

Doors

f.~~~~

-~--~~

Wheels

Body complete

S

teel sheet is cut in to suitable sizes and transported to the press Iines, where it is formed into various components.

The various components are welded together in the body plant by welding robots in to roof, floor, sideframes and doors. There is a total of about 5,000 welding points in a body. The body parts are loaded into four pallets to be join- ed in to a safety cage by welding robots. Eight robots weld a body tagether in 49 seconds.

The body is then sent to the paintshop, where i t is cleaned and phosphated. The body is then submerged in to the electrocoat tanks where the pain t is applied with electrophoretic forces. The final finish is given by a water- bom bas e coat me tallic (w hi ch is protected with a clear coat).

All components are joined in the assembly plant using the pro- ductian Iine principle. To avoid a build-up of inventories, all de- liveries to the plant are just-in- time. Consequently, more than 12,000 parts from some 500 sup- pliers are always enroute to the plant.

Volvo Trucks

VlroFLOIFE V olvo Trucks develops, designs, manufactures, assembles and markets heavy and medium-heavy trucks. The company is the world 's second-largest producer of heavy trucks.

Volvo trucks are characterized by high quality, low operating costs, good ergonornies and safety,

Total76,4(i() lnd<.s

combined with low exhaust emis- sion and noise levels.

The industrial base of operations

is in Sweden. There are also

product-development resources in the United States, Belgium and Brazil. Final assembly takes place

in

ten Volvo-owned plants. The greater part of the distribution

The Volvo Fli series

The orders received show that the FH series has obtained high marks in the marketplace. Beginning in the autumn of 1993 up to and in- clnding the end of 1995, contracts were signed for more than 50,000 Volvo FH trucks, equal to 30% of all Volvo Trucks' orders during the period.

The first enhancement of the

and marketing is handled through Volvo sales companies who, in tum, sell to approximately 800 dealers throughout the world.

Based on preliminary figures, Volvo's share of the world market for heavy trucks was 12% in 1995.

FH family of trucks, in the form of

..

the FH12/FH16 Globetrotter XL, equipped with a flat floor and an extra spacious cab was displayed during the year.

r.r;j ~~-.. ] .-,

.t ne

i."~

L

^L.

A new mode!, the FL12, equipped with the D12 engine used in the FH series, was introduced in May.

The Volvo FL12 is suitable

for

many different transport appli- cations, including construction projects.

Gross Vehlcle Year of Productlon

Weight, tons Output hp introduction in 1995

~

Vo/vo cc---: FL =-- 6/FEIF "" ~- _-_.,. s _ ? - _- _-_-_- _-_-_-_- _ _ - _-forward=====-con ==- t - ro= l== ===--=- 8.

⁷

6- ~ 1~8~ .o=======~ 1~7o~ -~260~==- ~- -_ -_ -_--= _ 1.,- 9 _ 85~==- ~~ -=- -=- 7.:.. ,3 _ 20

Volvo FL? /FL 1 O/FL 12 forward-control 18.0-42.0 230-420 1985 9, 760

Volvo FH1

_

^.... -·--··-·--···---·--·-~---·-····-···---···-~---·---·-···---····--··· 2/FH16 forward-control 18.0-42.0 340-520

-

1993 ...

- - -- ---

.. ·----25,740 - ....

Volvo NL 1 O/NL12 normal-eontroi 18.0-33.5 275-405 1989 7,330

Volvo U.S.

range1

faward/norrnal-control 215-450 27,250

1. As from Jufy 1995 all U.S. built trucks carry the Volvo brand-name (previously WHITEGMC}.

WOftd market for heevy trucks~· tDne).

~.;00."1$ Cif~ lrUct<S. tlo!JSWids of ISllls

Woe1d's largeet proctucers 1116, heevy 1JUcke ~11 tone•

Thvusarlds

~ ,...

• Excluding

former

Comecon countries, China and lndia.

~\¹ui1d ma:i~Eli ~'~md·s

The world market for heavy trucks increased to a new high of

approximately 600,000 (530,000) vehicles in 1995. If

lndia, China

and the former Comecon coun-

tries are included, the figure was 700,000 (680,000). Demand in

Europe rose

27% despite a

leveling-off in Great Britain toward the end of the year.

Demand in the United States

declirred ·during the seeond halt

of

the year, but from a record-high level. Demand in Brazil also weakened.

Volvo's deliveries of heavy and

medium-heavy trucks amounted

to 76,500 vehicles, an increase of

12%

campared with the preced-

ingyear.

Volvo Buses

"' f

olvo Bus holds strong market

V

positions in Europe, Latin America and Southeast Asia.

Productio n of Volvo bus chassis is carried out mainly in three plants;

Borås in Sweden, Irvine in Scot- land and Curitiba in Brazil. Bus bodies are built in Sweden, Ger- many, Austria and Denmark Complete bodied buses are pro- duced in China, Poland and by Prevost in Canada.

The world market for heavy buses (~12 tons) iDereased some- what during 1995. In western Europe the total market in- creased by more than 8% to 17,100 units.

Humber of Volvo bu8es sold, 1995

Swedoo,6%

To0C16.830 buses

Volvo has increased its in volve- ment in the bus body industry through acquisition of body campanies in recent years.

The objectives for taking these steps are to ensure body manu- facturing capacity, to increase Volvo's ability to meet customer's demands for complete buses and penetrate new markets.

A further step has been a

greater involvement in the pro- ductian of complete buses. Du- ring 1995 Volvo Buses gained entry in to the important North American market when acquiring 51% of Prevost Car Inc. in Cana- da. A joint venture was also star- ted in 1995 with Finnish Carrus in Poland in order to produce complete buses in Poland.

Gross Vehlcle Year of Productian

in 1995 Bus_ch_a_s_si_s ___ · - _ _ _ _ _ _ _ _ _ _ _w_e_lght,_t_o_n':_.__ Output h.:.P _ _ i_nt_roduction

Volvo 86 rear-engine 11.8 18G-21 O 1991

- - · · · - - - - · - · · - - - --- - -- - - -- - - - - -

Volvo87' - - - -·---- _____ front:::_e~g~~-- 16.0-18.0 23G-260 1987

~~o 858181_()~-- ---~~~~~~~~---_18.0-~~- ---~45-3~_1979 ___ _

Volvo 8108 rear-engine 19.0 245-360 1992

Volvo 810L rear-engine

Volvo 812 rear-engine

Volvo Olympian rear-engine

* non-European markels only

18.9-28.0 245-285 19.0-23.5

17.0-22.2

34G-420 245

1994 1991 1992

140 300 3,800 710 240 680 650

VOlvom

Volvo El10l.

m

Wortd's largest producers 1995,

buees~12t ll'\(lLJSafld6

-

C\1

Ol co

Volvo Construction Equipment

V

olvo Construction Equipment is one of the world's largest producers of construction equip- ment. The company has produc- tion facilities in Germany, Sweden, France, the U.S., Canada and Brazil and holds prominent mar- ket positions in Europe, North America and in other parts of the world.

Approximately 70% of the group's sales derive from wheel loarlers with a power output of more than 80 bp, articulated hauters and excavators.

The group also has operations in the growing segment of the mark et for light construction equipment (mini-wheelloaders and mini-excavators), as well as in the segment for rigid haulers.

Volvo Construction Equipment holds strong market positions in Europe and North America. Its products are sold under the brandnames Volvo BM, Michigan, Euclid, Zettelmeyer, Pel-Job, Mecalac and Åkerman.

Wh

Volvo

Constructoo Equtpment ila!S

a

oomplate wMel

loader range from

versatile mu!tlp~

~to !arge pro- ducbon I'Tl8dlir .es

Volvo ('..onstn.JC11011

EQtl~Pment Is the wor1d's leeding pro- duear ot arbeulaied haulers

\A>IIIO Cor.structlon Equ.pmelrt has exca\-ators for a vanet:y of l)l.rp09e'.l lncluciog tr:ateri<lls 11and:tng and special appbcabor.s

Seles by marteet area, 1985

Tota: SEK 13,884 M

-:,· _•/ ;·,·~.l., _{.·l o} _;;; _{l, .l~:~-·} R

Ji J

_{_,.}

!.l4i)

_•.

Volvo Construction Equipment has extended its range of Volvo BM articulated hauters with the six-wheel drive Volvo BM A40.

The hauler has a load capacity of 40 tons and offers excellent off- road performance. With new innovations to boost performan- ce, productivity, operator earn- fort and serviceability, the Volvo BM A40 is intended for appli-

Unlts by product Iine, 1985

·,aturs ~­

and mrtt-

6W:la- 'wE!Itors

~29{.

Altcl.i&tOO

arid r!Qid har.Jiers. 22%

'Mlool Looderl;

andmru- whool lotldffiJ 66%

cations requiring !arge volumes of material to be moved in the shortest possible cycle times.

lt is powered by the 6-cylinder Volvo TD 122 KFE turbochar- ged, intercooled diesel engine.

This low emission engine meets all existing Califomian, British and European off-road regula- tions, and the proposed U.S.

federal and Japanese regulations.

Volvo Penta

V olvo Penta develops, manu- factures and markets complete drive systems for marine and in- dustrial applications. Diesel and gasoliDe engines are developed and combined with transmission and control systems adapted to the specific requirements of each enstomer and application. De- velopment and productian are conducted in Sweden and in the United States through coopera- tian with Outboard Marine Cor- poration. Volvo Penta delivers some 50,000 marine and industrial engines annually. The service organization comprises 5,000 authorized spare parts and service and repair centers in more than 100 countries.

Nonh AITlEn:a, 3C%

Total SfK 3.878 IlA

Leisure Marine

Leisure craft engines are used in almost all types of leisure boats, from sailboats and family motor cruisers to high-performance power boats.

Commercial Marine

Commercial craft engines in- volves all types of vessels, from light fast-planing boats to heavy- duty commercial vessels.

engine s Leisure Marine Diesel and gasoline Commercial Marine Diesel

lndustrial Diesel

Industrial

The industrial diesel engines are used in off-road mobile applica- tions, such as

in

materials-hand- ling vehicles and construction equipment, and as power sources for generators and pumps.

kW hp litres cylinders 7-556 10-770 1.5-16 4-8 110-556 150-770 2.4-16 4-6 100-537 136-730 6-16 6

Volvo Penta's 22/SX series com- pact diesel engines, introduced in 1995, provides the ideal option for smaller leisure boats, a seetar that is currently dominated by outboards. The 22/SX series pro- vides small engine units

in

terms of size within a power range not previously available from a qual- ity outdrive. Owners benefit from the inherent security of an inboard, coupled with diesel economy and safety, increased comfort, easier accessibility, on- board electricity and hot-water, and low maintenance and repair costs over a Iong engine Iife.

It is

estimated that the overall rumting costs for the 22/SX engines are, in som e cases, down to just 25%

of those of an equivalent gaso- line engine.

In 1995 Volvo Penta challeng- ed the world's boat designers:

Design a boat that exploits the benefits of the 22/SX!

The response was very posi- tive. The 22/SX became widely known and written about in the trade press. The winning British entry by the Wyndesign Group pointed to an entirely new type of family boat.

Volvo Penta TMC2:<-SX

Volvo Aero

T he entire Swedish aircraft

l

engine industry is represented

within Volvo Aero. The oper- ations are divided into six busi- ness areas:

Military Engines which works pri- marily with the development, pro- duction, technical support and maintenance of engines for the Swedish Air Force.

International cooperation

Cooperation partner General Electric

Engine CF6-80

Primarily used in Boeing 747, 767, MD11 Airbus

Cooperation partner General Electric

Engine RM12

Primarily used in JAS 39 Gripen

Commercial Engines. Volvo Aero develops and manufactures com- ponents for commercial aircraft engines. This business area is based onjoint agreements with leading engine manufacturers.

Commercial Overhauls performs maintenance on various types of commercial aircraft engines. ,

Space Propulsion. Volvo Aero's space propulsion operation is strongly linked to the European joint space program and focuses mainly on the development and productian of engine components for various versions of the Ariane rock et.

Small Gas Turbines develops gas turbirres for industrial, mobile and marine applications.

Pratt & Whitney

JT80-200 PW2000 V2500

Vehicle Components operates in the product areas of diesel engine components, and vehicle heaters.

Volvo Aero's development, pro- ductian and maintenance opera- tions are concentrated in Sweden while more than 55% of the sales takes place outside the country.

The 4.riane 4/5

Volvo Aero has for many wears

held a strong

position in the European

Ariane rocket pro-

gram. This rocket has been used for 17 years, has carried more

than 100 satellites into space, and

has captured 60% of the world

market for suck launchers.

Ariane 5 is Europe's newest

launch vehicle, and its first satel-

lite launch is scheduled to take place in 1996. For Ariane 5 main engine, Vulcain, Volvo Aero h

as developed the exhaust nozzles and power turbines.

Rolls Royce BMW/ Rolls Royce Allied Signal

TAY BR715 TFE731 TPE331

MD80 Boeing 757 AirbusA320 Fokker 100 MD95 Falcon 900 BAC

IL96 MD90 Fokker 70

C17 Jetstream 31

- ·

Pratt & Whitney Rolls Royce Cooperation partner SEP SEP

RM8 RM6 Engine Viking Vulcain

37Viggen 35 Draken Primarily used in Ariane4 Ariane5

t·

n

'·

l

Sales by marQt area, 1996

~2%

Europ.;

out.."'CCeo SWEYle!1. 26'111

Tot\111 SEK 3. 790 M

Safety

Vohm, .,h~ pi:.m~y;;:r

As a result of its sharply focused work in this area, Volvo has pio- neered a number of products, some of those are:

• the safety body design

• the three-point safety bel t for all seats in the vehicle

• child-safety features

• the SIP System and the SIPS bag, which provides added side- impact protection.

Tir'Uff;~ A~r-)riF,.,t R•"lSi'··:<~~~·l

Volvo analyzes a huge number of real-life traffic accidents. The results of these analyses, combined with laboratory tests, Volvo's own

intemal

requirements and various

legal requirements, form the basis

of new safety systems and features.

Volvo's Traffic Accident Re- search Team has investigated more than 40,000 traffic accidents

since 1970. The team is assisted by

both the police and the emergency rescue service who alert them round the

el

ock, 365 days of the y ear.

A

significant amount of Volvo

Cars' expertise in the satety field is assembled in the Volvo Car Safety Center in Göteborg where more than 90 engineers, bio- mechanics and analysts are em- ployed. Some projects are con- ducted jointly with universities and colleges.

Volvo also participales in Euro- pean safety related projects. These focus on in jury reduction in fron- tal and side-impact collisions and

the pedestrian-to-vehicle in

terac- tion as weil as the tools and antbropomorphic test devices that are used in frontal crash tests.

A further area of interest is child safety which invalves studying real-Iife accidents and the perfor- mance of child restraints.

Vo: '.in t:r·u .-~ t\vf<t"Y Pi'<:);Jrt~trt

Volvo Trucks has its own traffic

accident research team which has

been active since 1969. Data from more than 1,200 truck and bus accidents has been analyzed,

providinga unique basefor the

design of safe vehicles.

Volvo Trucks is the first manu- facturer in the world to introduce an airbag in truck production.

As part of the development of the

airbag for use in heavy trucks, Volvo Trucks has also developed and implemented

a new and

unique collision test for trucks -

"the offset test." This test simu-

lates accidents in which half

of

the front of one vehicle coliides with the front of an oncoming vehicle.

This is a normal form of head-on

collision.

Tagether with the so caJled cab- impact test, erash-barrler tests and the work carried out by the Volvo Trucks Accident Investiga- tion Team, the offset test forms the basis of the development of

safe trucks.

J 1 ' " • l [ } "

• Best importcd ear m the intcrmediate

cla~

Auto Motor und Sp<Jrt

(Gennanyj

• Vol\'o 850, the fiafest ear in the world

ADAC, German moloring otganiratwn (Germany)

• Volvo 850,

be~t

ear in the

e.-;tate

ear category

Auto Etpret.!! New Car llonours (Great Bntain)

• The SIPS--bag

Paul Piemh-Preis,

Engilw~ring

a11d Det.tgn Awani (Germony)

• SIPS-bag m all 850 Volvo cars

Motorman.nms nksfbrbund, Swedish motori11g

orga1ut.ation

(Sweden)

•

Vol~o

940/960 Estate. best medtum-st.ze Luxury ear Highway

Lo~

Data Imtttute (U S.)

• Volvo 850, seeond

be~t

nnd•izc 4-door ear

Highway Loss Dam Institute (U.S.)

Environment

Volvo's environmental policy is airned at successively reducing the environmental impact of the com- pany's operations and products.

Volvo is implementing a global environmental management sys- tem (VEMS), encompassing the requirements ofEMAS, ISO 14001 and BS7750, the latter two being standards for environmental management systems.

Volvo is also monitoring the environmental impact of its oper- ations in a systematic manner through an environmental audit program. The program has been under way for six years. Priority

areas are minimizing the use of solvents, reducing emissions and ensuring the proper treatment ofwaste.

Fl*i):.jW;tii.IO

Volvo's paint shops for ear bodies and truck cabs in Sweden have the world's lowest emission levels in their respective sectors.

A new paint shop is being con- structed in the ear plant in Ghent, reducing current solvent emis- sion levels by 30%.

All of Volvo's productian faci- lities are equipped with advanced process effluent treatment plants.

The Environmental

Concept vehicles

are used by Volvo to test new techno- logy for improved env ironmental per- formance i n tomorrow's vehicles.

Emissions from Volvo's paint shops in Tarslanda and Umeå, Sweden are the lowest in the i

ndustry.

Chlorofluorcarbons ( CFCs) have been replaced by remge- rants that are considered harmless to the ozone layer. CFCs have been eliminated completely from the productian of plastic compo- nents and from air-conditioning

systems.

Prorluctf. nnd ,;..,,~;;.•c.!;lli

Volvo is working to optirnize the environmental characteristics of

its components and vehicles.

Some examples are:

•

the development ofthe Volvo Environmental Concept vehicles (ear, truck and bus), all of which are hybrids powered

by electric enginesand gas tur- bines.

• the Volvo 850 Bi-Fuel, powered

by natural gas/biogas or petrol.

• the D12 diesel engine (used in trucks and buses), which earn-

birres high power with low

exhaust emissions and low fuel consumption.

• Volvo city buses powered by natural gas or liquid propane gas (LPG).

•

city distribution vehicles powe-

red by campressed natural gas

(field trials).

• marine engines certified for Swiss emission control stan- dards.

• indoor testing of aircraft- mounted engines.

J<lor :r;:'i< lt:J

In association with other interests,

Volvo Cars has established a

facility for recycling materials from

scrapped cars. Research engineers

will use the facility to develop a

dismantling and recovery system

which will increase the level of

recycling, using life-cycle assess-

ment to reduce the environmental

impact.

Financial statistics, consolidated

b "tatements of incame

SEK M 1985 1986 1967 1988 1989 1990 1991 1992 1993 1994 1995

- -- - -- --- -- -- - -- - -- - - -

- - - -

Sales 86,196 84,090 92,520 96,639 90,972 83,185 77,223 83,002 111,155 155,866 171,511 Costsandexpenses (78,159) (75,699) (83,845) (87,255) (83,470) (79,597) (74,930) (81,785) (105,465) (141,388) (156,831) - - - -- - - --- - -- -- · - -- ^{_ .:__:.__:}

__

_:____:___;___~....:.._...:.... .. --:..--:...:....__:_:

Depreciation and amortization (1, 725) (2,062) (2,213) (2,293) (2,685) (3,021) (3, 129) (3, 119) (3, 777) (5, 1 07) (5,656)

_ _ . . _ ... _ _ _ ^~ ... . - . . : _ ... _ _ .... ^:~.~, .. ^~~--.;;.---~-...c:Y"~-·-·

---·---.-;·_c_";~'·-;;·,:-·--...~·-

Qpemting income (loss)

be_for~ n~nr~urring _!te~!_ ____ ~·~ 6,329 ----~,462_ -~~_!__ 4,8!!___~?.._ ____ !~)

. . .

J.~!90~--~~~ ^{9,371 9,024} Nonrecurring

items_·--- --=·~

^_

~

^-·-•.w·

~-~--.-~~1_3 3_ 1_3_ ",_i~ 450 L

^{(1,450) {1,600) 1,215}

O~rating in~m~_ (loss) __ _ ~~--_6,522 _____!i!.46~ __ 7,204 ... 5,1~- (1,81!3_l___(~) ___ _2.!.352) --~!._

_ _

9~371_~0.~

lncome from equity method investments 1 ,015 1 ,322 599 96 (1, 788) 2,193 1 ,402

Financial income and expenses ___ _______ _

Dividends recelved 113 81 125

Gain (loss) on sales of secuities, net {3) 137 1,1_86 Interest income (expense) 421 345 677 Otherfinancial income (expense) 759 445 561

166 47 952 (126)

22 126 734 (60)

31 116

46 41

15 50

2,026 131 (1,167) (1 ,138)

166 (536)

62 1,126 504 4,243 (1,432) (525)

(301) (30) 351 1,180

197 (321) In come (loss) before taxes and

minority Interests 7,602 7,530 9,011 8,243 6,967 (327) 803 (4,749) (2,642) 16,378 13,048 Allocation to untaxed reserves (3,330)

- - --'----'----' - - - - --- - - - -- -- - - --- - -

Taxes (1,713) (3,074) (3,272) (3,200) (2,145) (719) (560) 138

- - -- - - ---~-~~- ----~--- (468) (2,783) (3,741)

- - ---

Minority interests (13) {36) (7 4) (1 03) (35) 26 439 1 ,291 (356) (365) (45)

--- - ---·· ^---

Net lncome (loss) ...;.

___ _ _ _

^~,-,_~·--2,546 ^{4,420 5,665 4,940 4,787 (1,020) 682 (3,320) (3,466) 13,230 9,262}

Changes in accounting principles Nonrecurring items

Effective in 1994, nonrecurring items are re- portad in operating income. The change re- flects application of Recommendation RR4 of the Swedish Financial Accounting standards Council which became effective January 1, 1994. Comparable figures for prior years have been restated.

Extraordinary income and expense

Effective in 1994, income and expenses are classlfied In accordance with Recommen- dation RR4 of the Swedish Financial Account- ing Standards Council. The statements of in- come for prior years have been restated.

Type-specffic too/s

Effective in 1993, Volvo capitalizes type- specific tools. Capitalized tooling costs are being depreciated over the estimated econornic Iife of the tools. The change in accounting method conforms with international practice.

Rectassification of leasing vehictes and company vehictes

Up to and includlng 1992, leasing··yehicles and company vehicles were included in Group inventories. Effective in 1993, these assets are reported among Property, plant and equip- ment. As a result of this reclassification, costs of leasing vehicles and company vehicles are included In capita! expenditures. Depreciation of these vehicles is included in the item De- preciation in the income statement The change does not affect operating income.

Comparable figures for 1989-1992 have been restated.

Interest on pension fiability and accrvals for postretirement benefits

Effective in 1995, the Volvo Group's account- ing has been adapted to conform with

Recommendatlon 4 of the Swedish Institute of Authorized Public Accountants. Accordingly, the interest portion of pension expense is reported as an interest expense. Ear1ier, this item was included in operating income.

Comparable figures for 1 991-1994 have been restated.

Financial statistics, consolidated

In addition, accruals for postretirement benefils arestatedas an interest-bearing liabil- ity and are included in net financial assets/net debt. Comparable tigures for prior years have been restated.

Foreign exchange gain (loss)

Effective in 1992, exchange gains (losses) on loans and other financial instruments in foreign currency, which hedge net assets in foreign subsidiaries and associated companies, are offset against translation differences on the shareholders' equity of the respective campa- nies. The change in accounting principle is an adaptation to international practice. Appli- cation of this principle in 1991 would have re- duced consolidaled foreign exchange gains by 106.

Postretirement benefits other than pensions Effective January 1 , 1 993, Volvo' s subsidiaries in the United states are applying the new American accounting rules (SFAS 106: Em- ployers' accounting for postretirement benefits other than pensions) that became effective on that date. Earlier, income was charged only with current payments. The current value after taxes of benefits earned as of December 31, 1992 was estimated at 571. In the consoli- dated balance sheet, this amount reduced shareholders' equity by 301 and minority in- terests by 270. The g reater part of the amount is attributable to campanies within Volvo Trucks.

Application of the above rules in the Amer- ican associated companies, notably those in the Renault and VME groups, reduced share- holders' equity in these groups. The Consoli- dated reported value of Volvo's holdings in the campanies affected was reduced by Volvo's share of the reduction in equity, 1 ,928. This amount reduced consolidaled shareholders' equity.

The change in accounting principle thus re- duced Volvo Group' s shareholders' equity in 1992 by 2,229, and minority interests by 270.

Balance

sru·H:~ts

SEK . .:.:M~-­

Assets

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

Uquidfunds 14,394 17,777 22,497 15,632 18,470 17,585 18,779 21,760 21,442 24,449 23,306

-····-···-···-···"· -···-- -·--- - ... ---~"""""----~---·---···--•""'

_ ___ _

... - ---- -····-- ···- -···- -··- ···- -- ···- ···- ·--- ···- --·- ···-··- - ···-

Re?eiv~~~-- -- - - ··· .-22~?.44

_

_E_~3~ ._12,72~_1 ~~.~.~-1.~~.~! .~5, 71~ _2?.065 __ 1~~~.~ .. ~.42~_?0,5~~ _?~?~

lnventories 16,044 18,235 16,561 19,401 18,830 18,316 16,705 18,368 21,390 23,380 23,929

··-···--···- --...

-

^•.... - .... ·-···~~ ...

Currentassets 41,682 48,358 51,782 48,978 53,137 51,619 52,549 59,647 70,256 78,374 76,141

lnvestments inbonds 1,664 3,956 3,455 2,854 928

- - --- -- - - -- --- - - - ------ NOO•OO -- -- - -- - -·- - - • -- ------ U-00 0 0 .0000 O

Restricted deposits in Bank of Sweden 2,823 1,180 1,721 4,034 5,293 2,072 41 2

- ---·- ···- --- -···- .. ·-·- - -- ...

_ _ _

... -.. --... ·---- --- --

~~-ter_fl1_ assets__ _ _ _ __ _ 1_8,28~-. 22,644 ·~2-2_,8_9_5 _ _ 29_,_98_3 _ _ 36,258 45,552 53,230 57,358 64,260 60,208 Totalassets 62,793 72,182 78,062 86,951 98,143 102,097 106,748 117,007 134,516 138,582

62,558 138,699

Liabilities and shareholders' equity

-~~---

Current liabilities 26,856 31,548 31,368 34,500 42,846 48,712 47,778 59,386 74,958 72,212 59,769 Long-term liabilities 9,285 15,709 17,077 18,727 17,244 .17,794 20,120 23,981 25,784 22,200 27,125

-- - -- - - - · - - " " " " " " -""""_ "

____ _ _

..

___ ____ ____ _

^{, , ,}

_ _______

^{····------ ·---... --~--~ ....}

__ _

Minorityinterests 116 132 340 484 414 300 4,986 3,919 6,686 838 605

---~---·-----.. ·---·-- ·· ---·----~----- ·- --^~------~----

Untaxed reserves 17,738

Shareholders' equity 8,798 24,793 29,277 33,240 37,639 35,291 33,864 29,721 27,088 43,332 51,200

_ ...

^--~

....

^·~···-

... - .... - ... _ ... ,,,_ ...

~----..c.:-

- · ·.::- .·----

^~·---

· · - ---

Totalliabilitiesandshareholders'equity 62,793 72,182 78,062 86,951 98,143 102,097 106,748 117,007 134,516 138,582

_ _ _

, , , , , _ - -

-

^...

_ _ _

^{... - ...•} --·~----..;_~--...;..,--..

- -

^{. ~-}

^{· -}

Assets pledged 3,033

Contingent liabilities 2,106

Untaxed reserves and allocations

As part of the program of adapting Volvo's financial reporting to international accounting practice, the consolidated balance sheets and income statements as of 1 990 are presented exclusive of untaxed reserves and allocations.

Comparable figures for 1986-89 have been adjusted. For practical reasons the tax liability in untaxed reserves of the Group's Swedish campanies has been calculated on a 30% tax rate in all these years.

Associated campanies

Effective in the 1989 accounts, associated campanies are repartad in accordance with

2,959 1,943 1,997 2,427 2,417 2,641 4,114 2,830 3,417 3,095 2,986 3,270 4,691 6,808

- - ·- . -

^{.. ·---~----~~--}

the equity method. Accordingly, Volvo' s share of reported income before taxes in such oom- panies, adjusted for minority interests, is in- cluded in the consolidated income statement, reduced in appropriate cases by amortization of excess values. The Group' s share of report- ad taxes in associated campanies as weil as estimated taxes in allocations are included in the Group's tax expense. In the consolidated balance sheet, the reported value of shares and participations is affected by Volvo' s share of the atter-tax earnings of associated

cam-

panies (reduced by amortization of excess values and dividends received).

4,613 6,527 8,656 7,581

138,699 5,434 7,450

Financial statistics, consolidated

SEKM 1985 1988 1987 1988 1969 1990 1991 1992 1993 1994 1995

Year's operations

- - - --·-·---- - - - -- - - ·-

- ^-------~~---

- · -· - ·

~et incom~Joss) ___ · ---·-·-·--- -~-.... __ 2,54~---~~?~ _ _ 5,661) ___ 4,940 ---~·78.!__ _ _j~,020)~ ~2_

___

_j3.~~L~~~----·-~!-230 . ~~~?- Depreciation and amortizatlon 1 '725 2,062 2,213 2,293 2,685 3,021 3,129 3,119 3, 777 5,107 5,656

- -- - - - -

Adjustrnents

n

untaxed reserves 3,330

Write-down of fiXed ~~ and shareholdings _____ __ 67 4 725 315 57 4 1 ,817

~?me _ _!rom_ equ~_rnethod_!~~_!_ments after~a:<~- -·-·---·--·---·---_j~~?L__..Q~L ... J899_) --~~L -~~.!_5_l1,27~2_ __ (7~

Dividendsreceivedfro_!!l~~lat~companies ______ --· ·-- --- --·-_ ______ 225 ____ 277 -~--79~..212__1~0 _ ___ ~- Gain on sales of seeurities 3 (137) (1, 186) (47) (126) (116) (2,026) (131) (504) (4,243) (1, 180)·

Gain on sale of subsidiaries - (3,032)

Minority ~nterests_ aft~ ~es _______ 1 ~--~--~-- 103 35 _____ _E~--(439) (1,286) ___ 356 -~---4~

Decrease (increase) in Receivables 2,021 (1, 102) (378) (1 ,221) (1 ,892) (966) (1 ,347) 1,484 (2,732) (3,538) (962) t ope

r

^{et --}--·- - --- -- · ·- - ---- --·-·--·-···- ···- -··-·-···-·--- -- --- ---·- - ····--- ---·--- -·· · - -

curren_~~~a::_:_lnventD_t:les

___ _ _

(~B.2)_j~.191l__

1,674 -· (2,840)

--~-~--.0·8~)_ ~?11

2,373 2,209 (2,687) __ (516) lncrease in current operating liabilities 352 3,984 968 1 ,351 58 2,639 608 1,859 6,312 5,915 570

~ J.decrease) in d~erre<!_

tax

~lilles_ _ _ 651 352 14 98 (812) (521) '!,207) __(_989.LJ!2.~l_J_267) Netfinancingfromyear'soperations 9,408 7,723 9,382 4,593 6,104 1,070 2,198 3,323 8,495 12,236 11,067

!nvest~en~i!lcrea~) _______________________________________ ___________ ---···-- --- --···- --- -····-·--··---- - ----···- Property, plant Capita! expenditures (3,506) (3,425) (3,864) (4,641) (6,904) (5,798) (3,874) (4,267) (5,143) (6,769) (9,076) and equipment, etc.

DisposaJs 228 305 334 274 747 180 1,243 299 770 1,460 1,351

lnvestments in shares,

net

(1,488) (1 ,851) 1,852 {1 ,849) (1 ,635) (5,456) (7,238) (224) 464 8,182 1,953

~~!~rece:_~~and~ns, ~~- _ _ -··· _

'!..._ ..

_!1~ ___ 139 __ (~!~_) _ -~---·· ~2!3)_ __ (1_~~2_ _(1E20L. _(?~0.)__(1_:563) _ -~:!~~

~cquis~on~_dsaleso.!.9on:pan~f;!S _ _ _ __ (233) J..~:~~ 8 (166) (49) (964) (210) _ 3~~~~ (4,4~0) Remaining after net investments 4,413 1,374 7,851 (4,797) (1,701) (10,996} (7,983) (2,166} 4,699 13,546 (1,078) Financing, dividends, etc.

lncrease(decrease) i~shor!_:term ~---4~---~~1 ,148_) _1 ,781 ___ ~~288 5,124 (1 ,542) (298) (5, 104) (6,233) (3,993)

~~~~ J..~r~) inlong_::t~_loan~---···28C?_ __ 153~).

_ _ _ ? __

⁸³⁹ ~4~~--2,79~ 2,847 ... , ... ,

_

3,745

_ _ ________

(753) ^{, ... , _ ______}(2,011) ^{_______ ,.,}

^{_ ______}

6,166

^__

^.,

__

(lncrease) decrease in restrlcted deposits

inB~~-kofSweden _ _ _ "- - _______ i!_~~1) __

!.643 _

^_j_~..2_)- (2,313)__i1_.3~) .. --~221 __ 2,0~! ____ 39 ---~--- __

lncrease (decrease)

n

niinority interests (126) (20) 134 41 (1 05) (87) 5,282 122 15 145 (37}

Dividends paid to AB Volvo shareholders (411) (660) (718) (815) (1 ,086) (1,203) (1 ,203) (1 ,203) (601) (601) (1,512) DM?_~nds pai9 to min?rity ~hare_!lold~~ ___ "-· - _ """""""""" __ _ __ __ _(157)

_ @.!2_ _ _ _ 0. ___ _

(13?L_ (3)

Other (1 ,039) 876 804 691 (355) (342) (7) 78 93 (1 ,399)' 46

lncrease (decrease) in llquld funds and investments in bonds,

excl translation differences 2,494 3,383 6,384 {4,573} 2,337 (1 ,486) (732) 236 (1 ,649) 3,315 (411}

_ ____ 1.81!~1~~-1 _ _(308) -· (73~

T ranslatlon differences in liquid funds

---~------ - - -- - - - -- - --···-·

Decrease Oncrease} in investments in bonds (1 ,664) (2,292} 501 601 1,926 928 -- -- -- ---- ·--···- -- - ---···-···--- ---- - -

lncrease (decrease) in liquld funds 2,494 3,383 4,720 .. (6,865} 2,838 (885} 1,194 2,981 (318) 3,007 (1 '143)

--

^{--~--·---- -··-~---- --~-}

---- - ^__

^,.

_ ___ _

22

In the statements of changes in financiaf posi- tion for 1992-95, the effects of major acqui- sitions and divestments of subsidiaries have been excluded from other changes in the balance sheet. Furthermore, the effects of changes in exchange rates

at

translation of foreign subsidiaries have been excluded, since these effects do not influence cash flow.

The statements of changes in financial po- sition for 1 989-92 have also been adjusted as a consequence of the reclassification of leas- ing vehicles and company vehicles in 1993.

For mora information,

see

pages 2D-21.

Furthermore, as a consequence of the changes in the consolidatoo balance sheets and income statements in 1990 regarding untaxed reserves, corresponding changes have been made in the statements of changes in financialposition for 1986-89.

1. lncludes the payment of price adjustment to

Renau~. 1 ,422.