Measures to improve the financial position

The strong upswing in demand for the Group’s products in 2010 improved the Volvo Group’s financial position. The financial net debt in Industrial Operations declined during the year from 70.9% of shareholders’ equity to 37.4%. The Group implemented comprehensive measures during the year to improve its financial position.

During the global financial crisis, the Volvo Group increased the ratio of liquidity relative to sales. As a consequence of the financial markets stabilizing, the ratio was lowered during 2010. To further support the goal of improving the financial position, the 2010 Annual General Meeting resolved not to pay any dividend for the 2009 fiscal year.