Geely Sweden Ab Annual Report 2Mi3
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geely sweden ab ANnUAL report 2013 I CONTENTS This is Volvo Car Group ................................................................................................................1 Financial Reports Volvo Cars – 2013 at a glance ...............................................................................................2 Consolidated Income Statements ............................................................................23 CEO Comments ...................................................................................................................................4 Consolidated Comprehensive Income ..................................................................23 Consolidated Balance Sheets .....................................................................................24 Board of Directors Report ....................................................................................................6 Changes in Consolidated Equity ...............................................................................25 Financial & Business summary 2013 ......................................................................7 Consolidated Statement of Cash Flows ..............................................................26 Strategy .............................................................................................................................................8 Notes to the Consolidated Financial Statements ........................................27 Products & Innovation ........................................................................................................10 Income Statements and Comprehensive Income – Parent Company .................................................................................................................54 Production & Operations .................................................................................................12 Balance Sheets – Parent Company ........................................................................55 Sales Development ..............................................................................................................14 Changes in Equity – Parent Company ..................................................................56 Board of Directors .................................................................................................................16 Statement of Cash Flows – Parent Company .................................................56 Executive Management .....................................................................................................18 Notes to the Parent Company Financial Statements ...............................57 Governance .................................................................................................................................20 Subsidiaries ................................................................................................................................60 Risks & Risk Management .............................................................................................20 Signatures ....................................................................................................................................61 Subsequent Events ..............................................................................................................21 Auditors Report .......................................................................................................................62 Proposed Distribution of Net income ....................................................................21 Contact .............................................................................................................................................63 About This Report The Board of Directors Geely Sweden AB, corporate identity number 556798-9966, hereby submit the Annual Report and consolidated financial statements for January 1 - December 31, 2013. The Volvo Car Group’s consolidated financial review comprises all information through page 6 to 62. Read more Visit Volvo Cars at www.volvocars.com and learn more about Volvo Cars’ products and services. Reports are available online at www.volvocars.com/corporate. II GEELY SWEDEN AB ANNUAL REPORT 2013 This is Volvo Car Group Volvo Cars’ history dates back to 1927 when the Swedish company THE TRANSFORMATION OF VOLVO CARS Volvo Car Corporation was founded and the first Volvo car was Volvo Cars is going through a major transformation in line with the launched. Volvo Cars is headquartered in Gothenburg (Sweden). Volvo corporate and brand strategy “Designed Around You” which is all about cars are produced in factories in Torslanda (Sweden), Ghent (Belgium), the customer and a human centric focus. Designed Around You is the Chengdu (China), Chonqing (China), and Kuala Lumpur (Malaysia). foundation of the corporate culture and the strategy sets the objectives Since 2010 Volvo Cars is owned by Zhejiang Geely Holding Group Co. for Volvo Cars to establish itself as a leading brand within the premium Ltd. (Geely). In 2013 around 2,300 Volvo dealers sold 427,840 cars in segment. With roots firmly based in its Swedish heritage, China is 100 countries around the world. As of December 2013, Volvo Car becoming the second home market of Volvo Cars with extensive com- Group employed about 23,200 people. mercial and industrial presence. Additionally, new vehicle and engine technology will serve the global market and ensure a premium customer experience based on safety, contemporary Scandinavian design, envi- ronmental care and clever functionality. Corporate Objectives Strategic CHANGE THEMES • Provide cars people want • Emphasize profitability and efficiency • Be a lean and nimble company • Revitalize the Volvo brand with customer centricity throughout • Have a top tier premium auto brand perception the value chain • Be the employer of choice • Reinforce our product strengths based on focused innovation, smart architecture and win-win collaboration WHICH WILL LEAD TO • Capture global growth and sourcing potential, leveraging the • Sales of over 800,000 vehicles globally presence in China • Top car industry profitability • Secure profitable growth in core segments in Europe and North America • Build a global organization with performance and health, able to act in a fast, smart and nimble way The Volvo Car Group Zhejiang Geely – Corporate structure Holding Group Co., Ltd. Shanghai Geely Zhaoyuan VOLVO CAR GROUP INCLUDES: International Investment Co., Ltd. • Geely Sweden AB • Volvo Car Corporation • Subsidiaries • Joint venture companies Geely Sweden Holdings AB VOLVO CARS, THE OPERATIONS, INCLUDES: • Volvo Car Corporation Geely Sweden Automotive AB • Subsidiaries • Joint venture companies • Affiliated companies Volvo Car Group (Consolidation level of all financial Geely Sweden AB communication) Joint venture companies are associated companies in which Volvo Car Corporation holds a voting interest of less or equal to 50 percent. Volvo Cars Affiliated companies are companies in close collaboration with Volvo (The Operations) Volvo Car Corporation Car Group but owned by another legal entity, for example the Chengdu manufacturing plant, Zhongjia Automobile Manufacturing (Chengdu) Co., Ltd., which is owned by Chinese subsidiaries of the parent All sales companies, Affiliated other subsidiaries company, Shanghai Geely Zhaoyuan International Investment Co., Ltd.. companies & joint venture companies GEELY SWEDEN AB ANNUAL REPORT 2013 1 Volvo cars –2013 at a glance In 2013, Volvo Cars continued its transformation journey and launched of the all-new Volvo XC90, the first car to be based on the Scalable the biggest renewal of the product line up in its history and launching Product Architecture, continued and is scheduled for a global launch the new Drive-E powertrains. Volvo Car Group reported an operating in- in 2014. come of SEK 1,919 (66) million, with a net income of SEK 960 (–542) The industrial expansion in China, financed by Geely, is progress- million. The result was a step into reaching sustainable profitability ing according to plan with the two joint venture companies in Daqing levels, primarily due to the positive second half year. and Zhangjiakou and the plant in Chengdu which went operational in Volvo Car Group managed to turn a loss over the first half of 2013 November 2013. into a full-year profit due to a positive sales development and cost focus. Retail sales for 2013 was mainly driven by an increase in China and reached about the same volumes as 2012. Wholesale declined Key Figures during the first half year following the preparations for the launch of 2013 2012 the renewed models. Retail sales 427,840 421,951 In 2013, Volvo Car Group further strengthened its long term China 61,146 41,989 funding structure via loan agreements with financial partners and institutions. USA 61,233 68,079 A major renewal of the models was launched into markets around EU 20 226,095 227,027 the world. The first versions of Volvo Cars’ in-house developed, new of which Sweden 52,260 51,832 four-cylinder Drive-E powertrain family were launched and new world- Rest of World 79,366 84,856 first safety technologies such as Cyclist Detection with full auto brake Wholesale 419,728 432,950 were introduced in Volvo cars during 2013. Net revenue, MSEK 122,245 124,547 At the International Motor Show (IAA), in Frankfurt, the global audi- ence caught a glimpse at what the future holds with the launch of the Operating income, MSEK 1,919 66 Volvo Car Concept Coupé.