Volvo Group financial position

Net financial debt in the Industrial Operations amounted to SEK 24.7 billion at December 31, 2010, a decrease of SEK 13.7 billion compared to the third quarter of 2010, and equal to 37.4% of shareholders’ equity. Excluding the provision for post-employment benefits, the Industrial Operations net debt amounted to SEK 18.8 billion, which is equal to 28.5% of shareholders’ equity.

The Volvo Group’s liquid funds, i.e. cash and cash equivalents and marketable securities combined, amounted to SEK 32.7 billion at December 31, 2010. In addition to this, granted but unutilized credit facilities amounted to SEK 35.3 billion.

During the fourth quarter, currency movements increased the Volvo Group’s total assets by SEK 2 billion due to revaluation of net assets in foreign subsidiaries.

The equity ratio in the Volvo Group amounted to 23.3% on December 31, 2010 compared to 20.2% at year-end 2009. At December 31, 2010 shareholder’s equity in the Volvo Group amounted to SEK 74.1 billion.

Related-party transactions
Sales to associated companies amounted to SEK 1,082 M and purchases from associated companies amounted to SEK 50 M during 2010. On December 31, 2010, receivables from associated companies amounted to SEK 174 M and liabilities to associated companies to SEK 125 M. Sales to related-party Renault s.a.s. amounted to SEK 52 M and purchases from Renault s.a.s to SEK 1,654 M during 2010. Receivables from Renault s.a.s. amounted to SEK 15 M and liabilities to Renault s.a.s. to SEK 291 M on December 31, 2010.