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Pro forma balance sheet and key ratios The pro forma balance sheet shows the position of the Volvo Group as of December 31, 1998, adjusted to reflect the effects of the divestment of Volvo Cars (see Board of Directors' Report, AB Volvo sells Volvo Cars to Ford and concentrates its business to commercial products). The purpose of the pro forma balance sheet is to illustrate the immediate effects on the consolidated financial position due to the divestment of Volvo Cars. The capital gain for accounting purposes on the sale amounts to SEK 26.2 billion. The sale reduces the operating capital in the Volvo Group by SEK 18.3 billion and increases net financial assets by SEK 46.7 billion. Total assets within sales-financing operations is being reduced by SEK 35.7 billion. Further adjustments are reclassifications of receivables and liabilities between Volvo Cars and other Volvo Group companies. |
| Volvo Group | Volvo Cars | |
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| Net sales | 212.9 | 103.8 |
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| Operating income 1) | 9.0 | 3.8 |
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| Operating margin, % 1) | 4.2 | 3.7 |
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| 1) Excluding items affecting comparability. | ||
Volvo Group pro forma balance sheet
| SEK billion | Volvo GroupDec 31 1998 | Divestment of Volvo Cars | Adjustments | Pro forma Volvo Group after divestment and adjustment |
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| Assets | ||||
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| Intangible non-current assets | 5.8 | 0.0 | 0.0 | 5.8 |
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| Tangible non-current assets | 58.5 | 30.6 | 0.2 | 28.1 |
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| Financial non-current assets | 35.1 | 16.6 | 11.0 | 29.5 |
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| Inventories | 32.1 | 11.3 | 0.0 | 20.8 |
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| Short-term receivables | 52.7 | 30.6 | 32.1 | 54.2 |
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| Marketable securities | 7.2 | 0.0 | — | 7.2 |
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| Cash and bank accounts | 13.0 | 7.1 | 39.6 | 45.5 |
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| Total assets | 204.4 | 96.2 | 82.9 | 191.1 |
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| Shareholders´ equity and liabilities |
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| Shareholders´ equity 1) |
68.1 | 18.8 | 39.1 | 88.4 |
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| Minority interests | 0.9 | 0.1 | — | 0.8 |
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| Provisions | 28.1 | 12.9 | 6.2 | 21.4 |
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| Loans | 64.2 | 37.2 | 28.3 | 55.3 |
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| Other liabilities | 43.1 | 27.2 | 9.3 | 25.2 |
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| Shareholders´ equity and liabilities |
204.4 | 96.2 | 82.9 | 191.1 |
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| Net financial assets/liabilities | 14.8 | (0.9) | 45.8 | 61.5 |
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| 1) Since the definitive tax effect of the sale cannot yet be calculated, a standard rate of 28% is applied to the accounting gain in the pro forma balance sheet. | ||||