Group holdings of shares in joint ventures are listed below.
Joint ventures are companies over which Volvo has controlling influence together with one or more external parties. As stated in Note 1 concerning principles for consolidation, joint ventures are recognized by applying the proportionate consolidation method, in accordance with IAS 31 Interests in Joint ventures.
Associated companies are companies in which Volvo has a significant influence, which is normally when Volvo’s holdings equal at least 20% but less than 50% of the voting rights. Holdings in associated companies are recognized in accordance with the equity method. The Group’s share of recognized income in such companies is included in the consolidated statement of profit or loss under Income from participations in associated companies, less, where appropriate, depreciation of surplus values and the effect of applying different accounting policies. Income from associated companies is included in operating income since the Volvo investments are of operating nature. For practical reasons, some of the associated companies are included in the consolidated financial statements with a certain time lag, normally one quarter. Dividends from associated companies are not included in consolidated income. In the consolidated balance sheet, the carrying amount of shareholdings in associated companies is affected by Volvo’s share of the company’s net income, less depreciation of surplus values and dividends received.
Shares and participations in other companies
Holdings that do not provide Volvo with significant influence, which generally means that Volvo’s holding corresponds to less than 20% of the votes, are recognized as shares and participations in other companies. For listed shares, the carrying amount is equivalent to the market value. Unlisted shares and participations, in which fair value cannot reasonably be determined, are measured at cost less any impairment losses.
Group holdings of shares in joint ventures are listed below.
|Shares in joint ventures||percentage||percentage|
|Shanghai Sunwin Bus Corp., China||50||50|
|Dong Feng Nissan Diesel Motor Co., Ltd., China||50||50|
|VE Commercial Vehicles, Ltd., India||501||501|
|Xian Silver Bus Corp., China||-||50|
|1) Direct and indirect ownership.|
|Volvo’s share of joint ventures’ income statements||2011||2010|
|Income after financial items||379||169|
|Volvo’s share of income for the period||306||103|
|Volvo’s share of joint ventures’ balance sheets||Dec 31, 2011||Dec 31, 2010|
|Total shareholders’ equity and liabilities||4,163||4,138|
|Volvo's share of total||Number of||of which||Number of||of which|
|number of employees||employees||women, %||employees||women, %|
|Shanghai Sunwin Bus Corp.||453||16||455||16|
|Xian Silver Bus Corp.||-||-||144||21|
|Dong Feng Nissan Diesel Motor Co., Ltd.||152||13||141||14|
|VE Commercial Vehicles, Ltd.||3,600||1||1,479||1|
|Volvo's share of total number of employees||4,205||3||2,219||7|
The following table presents summarized financial information for Volvo's associated companies. The income statement and balance sheet below reflect the total associated companies, not only the part consolidated by Volvo.
|Shares and participations in associated companies,||Registration||Percentage||Dec 31, 2011||Dec 31, 2010|
|equity method of accounting||number||holding||Carrying value||Carrying value|
|Blue Chip Jet II HB, Sweden||969717-2105||50||405||319|
|UD Trucks Doto Corporation, Japan||–||38||103||94|
|UD Trucks Niigata Corporation, Japan||–||34||69||61|
|Merkavim Metal Works Ltd, Israel||–||27||17||37|
|JV Fonderie Venissieux, France||–||49||35||32|
|PK-UD Axle Co.,Ltd. (HangZhou), China(1||–||51||-||30|
|Diamond Finance Ltd, Great Britain(2||–||–||-||18|
|Blue Chip Jet HB, Sweden||969639-1011||50||8||3|
|Quingdao Sunwin Bus Corp, China||–||43||9||9|
|Arabian Vehicle & Truck Industry Ltd, Saudi Arabia||–||25||9||9|
|Effpower AB, Sweden(3||556570-8541||9||-||29|
|Powercell Sweden AB, Sweden||556759-8353||47||17||27|
|Total shares and participations in associated companies(4||684||684|
1) In 2011 Volvo acquired additional 6% and the company is now a subsidiary. In 2010 the holding in PK-UD Axle Co., Ltd was 45%.
2) The company was liquidated during 2011. In 2010 the holding in Diamond Finance Ltd was 40%.
3) In 2011 the holding was reduced to 9% and the company is therefore no longer accounted for as an associated company. In 2010 the holding in Effpower AB was 34%.
4) Volvo’s share of shareholders' equity in associated companies (incl. equity in untaxed reserves) amounted to 684 (684).
|Income statement data||2011||2010|
|Cost of sales||(2,491)||(3,840)|
|Financial income and expense||(29)||(32)|
|Income before taxes||23||(78)|
|Income of the period||0||(124)|
|Dec 31||Dec 31|
|Balance sheet data||2011||2010|
|Total shareholders' equity and liabilities||3,579||3,643|
|UD Trucks Niigata Co||5||7|
|JV Fonderie Venissieux||4||(1)|
|Merkavim Metal Works Ltd||17||15|
|Blue Chip Jet I & II HB||(46)||(39)|
|Holdings of Volvo Technology Transfer(1||(6)||(58)|
|Revaluation and write-down of shares|
|Blue Chip Jet I & II HB||-||(11)|
|Holdings of Volvo Technology Transfer(1||(48)||-|
|Gains (losses) on divestment of shares in associated companies|
|Holdings of Volvo Technology Transfer(1||(5)||-|
|Total income (loss) from investments in associated companies||(81)||(86)|
|Holdings in listed companies||Percentage holding||Carrying
|Deutz AG, Germany||7.2||299||458|
|Nippon Express Co.,Ltd., Japan||0.4||93||131|
|TBK Co.,Ltd., Japan||6.7||61||68|
|Sankyu Inc., Japan||0.5||44||53|
|Fukuyama Transporting Co.,Ltd., Japan||0.2||16||15|
|Senko Co.,Ltd, Japan||1.0||32||30|
|Tonami Holdings Co.,Ltd., Japan||1.1||15||14|
|Yamato Holdings Co.,Ltd., Japan||0.1||25||21|
|Holdings in other listed companies||–||50||46|
|Total holdings in listed other companies||635||836|
|Holdings in non-listed companies(1||555||578|
|Total shares and participations in other companies||1,190||1,414|
|1) Unlisted shares and participations, in which fair value cannot be reasonably determined, are measured at cost less any impairment losses.|
|Holdings in Japanese companies||13||14|
|Write-downs of shares|
|Holdings of Volvo Technology Transfer(1||(43)||(107)|
|Holdings in Japanese companies||(226)||-|
|Gain on divestment of shares|
|Holdings of Volvo Technology Transfer(1||11||10|
|Holdings in Japanese companies||5||24|
1) Investments held by the Volvo venture-capital company.
2) Write-downs of shares refer mainly to financial assets available for sale for which a reliable market value can be calculated.
|Changes in the Volvo Group’s holdings of shares and participations:||2011||2010|
|Balance sheet, December 31, preceding year||2,098||2,044|
|Change in Group structure||(19)||–|
|Acquisitions and divestments, net||92||104|
|Share of income in associated companies||(24)||(75)|
|Revaluation of shares to fair value||(203)||148|
|Balance sheet, December 31||1,874||2,098|