Financial position

Improved during the year

Net debt in the Volvo Group's Industrial Operations amounted to SEK 19.3 billion at December 31, 2011, equal to 25.2% of shareholders’ equity. Excluding provisions for post-employment benefits the Industrial Operation’s net debt amounted to SEK 15.0 billion, which was equal to 19.5% of shareholders’ equity.

The Volvo Group’s cash, cash equivalents and marketable securities combined, amounted to SEK 37.2 billion at December 31, 2011. Of this, SEK 9.3 billion are restricted for immediate use  by the Volvo Group compared to SEK 7.4 billion a year earlier. In addition to this, granted but not utilized credit facilities amounted to SEK 33.4 billion.

Total assets in the Group amounted to SEK 353.2 billion on December 31, 2011, an increase of SEK 35.2 billion compared to year-end 2010. The increase is mainly a result of increase in inventories and accounts receivables, increased customer financing receivables due to portfolio growth in the Customer Finance Operations and increase in assets under operating lease mainly related to the construction equipment rental operation.  

The Group’s intangible assets amounted to SEK 39.5 billion on December 31, 2011. Investments in research and development amounted to SEK 4.2 billion in 2011, resulting in a net value of capitalized development costs of SEK 11.5 billion at the end of the year. The Group’s total goodwill amounted to SEK 23.9 billion on December 31, 2011, an increase by SEK 1.0 billion compared to year-end 2010 as a result of aquisitions in the construction equipment rental operation. 

The tangible assets increased by SEK 4.6 billion during 2011, mainly related to the expansion in the construction equipment rental operation.

The value of the inventories increased by SEK 4.8 billion during 2011. The increase is mainly related to finished products within the truck operations and construction equipment.

The net value of assets and liabilities related to pensions and similar obligations amounted to SEK 4.4 billion on December 31, 2011, a decrease of SEK 1.5 billion compared to year-end 2010. Post-employment benefits valued at SEK 12.2 billion were reported outside the Volvo Group’s balance sheet. For further information see Note 20.

At year-end, the equity ratio in the Industrial Operations was 28.5% and in the Volvo Group 24.3%. Shareholder’s equity in the Volvo Group amounted to SEK 85.7 billion at December 31, 2011.