Volvo Group financial position

Net financial debt in the Industrial Operations amounted to SEK 29.6 billion at September 30, 2011, and equal to 40.7% of shareholders’ equity. Despite the good cash flow in the quarter, net debt increased by SEK 1.3 billion compared to the second quarter of 2011 mainly as a consequence of revaluation of assets and liabilities in foreign currencies. Excluding provision for post-employment benefits, the Industrial Operations net debt amounted to SEK 24.3 billion, which is equal to 33.4% of shareholders’ equity.

The Volvo Group’s liquid funds, i.e. cash and cash equivalents and marketable securities combined, amounted to SEK 28.9 billion at September 30, 2011. In addition to this, granted but unutilized credit facilities amounted to SEK 33.9 billion.

During the third quarter, currency movements increased the Volvo Group’s total assets by SEK 9.6 billion due to revaluation of assets in foreign subsidiaries.

The equity ratio in the Volvo Group amounted to 24.0% on September 30, 2011 compared to 23.3% at year-end 2010. At September 30, shareholder’s equity in the Volvo Group amounted to SEK 81.6 billion.