Volvo Group financial position

Net financial debt, excluding provisions for post-employment benefits, in the Industrial Operations amounted to SEK 25.4 billion at March 31, 2013, an increase of SEK 6.2 billion compared to year-end 2012, and equal to 37.7% of shareholders’ equity. The increase in net financial debt is mainly an effect of the negative operating cash flow of SEK 7.6 billion offset by a favorable currency effect of SEK 1.7 billion primarily related to a reduced debt in Japanese yen. Including provision for post-employment benefits, the Industrial Operations net debt amounted to SEK 42.7 billion, which is equal to 63.4% of shareholders’ equity.

The Volvo Group’s liquid funds, i.e. cash and cash equivalents and marketable securities combined, amounted to SEK 28.6 billion at March 31, 2013. In addition to this, granted but unutilized credit facilities amounted to SEK 32.1 billion.

During the first quarter, currency movements decreased the Volvo Group’s total assets by SEK 6.6 billion related to revaluation of assets in foreign subsidiaries.

The equity ratio in the Volvo Group amounted to 22.7% on March 31, 2013 which is unchanged compared to year-end 2012 after restatement for the amendment to IAS 19 Employee benefits (For more information about the restatement please refer to note 31 in the 2012 annual report.) On the same date, the equity ratio in the Industrial Operations amounted to 27.2% (27.0).

At March 31, 2013 shareholder’s equity in the Volvo Group amounted to SEK 76.0 billion.

Number of employees
On March 31, 2013 the Volvo Group had 96,031 regular employees and 14,583 temporary employees and consultants, compared with 96,137 regular employees and 13,452 temporary employees and consultants at year-end 2012.