The Volvo Group
Notes to consolidated financial statements
Note
15
Shares and participations
Group holdings of shares and Registration number participations in non-Group companies Shares in associated companies, equity method of accounting Nissan Diesel – Blue Chip Jet II HB, Sweden 969717–2105 Blue Chip Jet HB, Sweden 969639–1011 Merkavim Metal Works Ltd, Israel – Diamond Finance Ltd, Great Britain – Thomas Hardie Commercials Ltd, Great Britain – Fonderie Venissieu, France – Quingdao Sunwin Bus Corp, China Arabian Vehicle & Truck Industry Ltd, Saudi Arabia – Peach County Holdings Inc, USA – Aviation Lease Finance, USA – Småföretagarinvest AB (previously Arbustum Invest AB), Sweden – Other holdings Total shares and participations in associated companies in accordance with Group Balance Sheet 1 Shares and participations in other companies Deutz AG, Germany2 Småföretagarinvest AB (previously Arbustum Invest AB), Sweden Other holdings Total shares and participations in other companies in accordance with Group Balance Sheet Total value of Group holdings of shares and participations in non-group companies
19 50 40 27 40 24 49 21 25 43 49 –
Dec 31, 2004 Carrying value SEK M
Dec 31, 2005 Carrying value SEK M
Dec 31, 2006 Carrying value SEK M
– – 90 20 – 10 15 – 9 556 172 35 6
– – 85 26 23 14 21 9 9 0 – – 8
5,445 148 81 34 24 14 23 9 9 – – – 7
913
195
5,794
–
7
670
253
740
556543–4247
17
– 420
32 271
14 342
1,090
556
1,096
2,003
751
6,890
1 Volvo’s share of shareholders’ equity in associated companies (incl. equity in untaxed reserves) amounted to 5.794 (195; 913). Excess values amounted to 549 (0; 0).
2 Deutz AG is valued to market value as from January 1, 2005 according to IAS 39, more information note 1 Accounting principles and note 3 Effects of IFRS. The transition effect has been charged to equity.
The market values of Volvo’s holdings of shares and participations in listed companies as of December 31, 2006 are shown in the table below. As from 2005 shares in listed companies would be revaluated to current market value. The revaluation is booked to Equity and amounts to 392 (83; –).
Carrying value
Market value
Deutz AG Total holdings in listed companies
740 740
740 740
Holdings in non-listed companies 1 Total shares and participations in other companies
356
–
1,096
740
Carrying value
Market value
1,952 3,493
1,341 –
5,445
1,341
349 5,794
– 1,341
Nissan Diesel, common shares Nissan Diesel, preference shares Total holding in listed associated companies Holding in non-listed associated companies Total holding in associated companies
Nissan Diesel On March 21, AB Volvo acquired 40 million shares, corresponding to 13% of the shares, in the Japanese truck manufacturer Nissan Diesel from Nissan Motor for approximately SEK 1,5 billion, with an option on Nissan Motor’s remaining 6% within four years. During the third quarter, AB Volvo exercised its option to purchase an additional 6% of the shares in Nissan Diesel from Nissan Motor for approxi-
114
Percentage holding
Financial information 2006
1 Unlisted shares, for which a reliable fair value cannot be determined, should be reported at the acquisition value reduced in appropriate cases by writedowns.
mately SEK 500 M. AB Volvo owned a total of 19% of the shares in the Japanese truck manufacturer at December 31, 2006. In addition, AB Volvo acquired all 57.5 million preference shares in Nissan Diesel from Nissan Motor and Japanese banks for a total of SEK 3.5 billion. The book value for the shares in Nissan Diesel was SEK 5.445 M at December 2006.