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Equity interest in AB Volvo<br />
AB Volvo – Europe's number-one truck maker<br />
The truck business of Volvo and <strong>Renault</strong> (<strong>Renault</strong> V.I.<br />
and Mack) has been united through AB Volvo since<br />
January 2001. With the integration of <strong>Renault</strong> V.I.<br />
– renamed <strong>Renault</strong> Trucks – and Mack, Volvo is now<br />
the number-one manufacturer of trucks in Europe and<br />
number two worldwide. As a result of the 2001 tie-up,<br />
<strong>Renault</strong> is Volvo's largest shareholder with a 20% interest.<br />
The three brands – Volvo, <strong>Renault</strong> and Mack – continue<br />
their development based on distinctive identities, but also<br />
complement each other in terms of geographical reach<br />
and products.<br />
Their combined offering thus spans the full range from<br />
light commercial vehicles to the largest trucks and<br />
is backed by a network covering over 130 countries<br />
in Europe, North and South America and Asia. Altogether<br />
over 214,000 vehicles were sold in <strong>2005</strong> after 193,000<br />
in 2004.<br />
<strong>Renault</strong> is represented on the Volvo Board of Directors<br />
by Louis Schweitzer, <strong>Renault</strong>'s Chairman of the Board,<br />
and Patrick Faure, who is due to retire in the second half<br />
of 2006. His term will therefore not come up for renewal<br />
at Volvo’s next Annual General Meeting.<br />
AB Volvo's contribution<br />
to <strong>Renault</strong>'s earnings<br />
amounted to 7308 million<br />
in <strong>2005</strong>, after 7221 million<br />
in 2004. <strong>Renault</strong> received<br />
7120 million in dividends.<br />
A competitive<br />
international group<br />
AB Volvo’s financial results<br />
in millions <strong>2005</strong> 2004 restated to IFRS<br />
SEK 7* Change SEK 7**<br />
<strong>2005</strong>/2004<br />
Net revenues 231,191 24,915 + 14.4% 202,171 22,168<br />
Operating income 18,151 1,956 + 23.7% 14,679 1,610<br />
Net income 13,106 1,412 + 32.3% 9,907 1,086<br />
Dividend per share in SEK 12.50 FY + 56.3% 8.00 FY<br />
2004 2003<br />
* e1 = SEK9.28<br />
** e1 = SEK9.12<br />
<strong>Renault</strong>'s interest in AB Volvo is a source<br />
of profit for the Group.<br />
<strong>2005</strong> <strong>Renault</strong> Annual Report<br />
53
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