Scania annual report 2001

ANNUAL REPORT 2001

Annual General Meeting 

The Annual General Meeting of Shareholders (AGM) 

will be held at 15:00 CET on Tuesday, 7 May 2002 at 

Konferenshuset, TelgeForum (formerly Folkets Hus), 

Södertälje, Sweden. 

Participation 

Shareholders who wish to participate in the AGM 

must be recorded in the shareholder list maintained 

by Värdepapperscentralen VPC AB (the Swedish 

Central Securities Depository and Clearing 

Organization) no later than Friday, 26 April 2002. 

They must also register with the company by 

post at Scania AB, Annual General Meeting, 

SE-151 87 Södertälje, Sweden, or by telephone 

at +46 8 5538 1510 no later than 16:00 CET on 

Tuesday, 30 April 2002. 

Nominee shares 

To be entitled to participate in the AGM, shareholders 

whose shares have been registered in the name of a 

nominee through the trust department of a bank or 

brokerage house must temporarily reregister their 

shares in their own name with VPC. Shareholders 

who wish to reregister their shares in this way must 

inform their nominees accordingly well before 

Friday, 26 April 2002. 

Dividend 

The Board of Directors proposes Monday, 13 May 

2002 as the record date for the 2001 dividend. The 

last day for trading shares that include the dividend 

is Tuesday, 7 May 2002. Provided that the AGM 

approves this proposal, the dividend is expected 

to be sent on Thursday, 16 May 2002. 

Reports from Scania 

Interim Report, January-March, on 22 April 2002 

Interim Report, January-June, on 19 July 2002 

Interim Report, January-September, on 31 October 

2002. 

In addition to the Annual Report, the above 

informational material is found on Scania’s 

website: www.scania.com 

The material may also be ordered from: 

Scania AB, SE-151 87 Södertälje, Sweden. 

Phone: +46 8 5538 1000 

Fax: +46 8 5538 5559 

The English version of the Annual Report is a translation of the 

Swedish language original. Translation: Victor Kayfetz, Scan Edit. 

Unless otherwise stated, all comparisons in this Annual Report refer 

to the same period of the preceding year. 

This report contains forward-looking statements that reflect management’s 

current views with respect to certain future events and potential 

financial performance. Such forward-looking statements involve 

risks and uncertainties that could significantly alter potential results. 

These statements are based on certain assumptions, including assumptions 

related to general economic and financial conditions in the company’s 

markets and the level of demand for the company’s products. 

This report does not imply that the company has undertaken to 

revise these forward-looking statements, beyond what is required 

under the company’s registration contract with Stockholmsbörsen 

if and when circumstances arise that will lead to changes compared to 

the date when these statements were provided.

Contents 

■ The company 

Important events 2 

Highlights 3 

Scania in brief 4 

Statement of the Chairman 6 

Statement of the President and CEO 8 

Scania share data 10 

Vision, mission statement and strategy 13 

Identity and brand name 14 

Scania’s role in society 15 

Product concept 16 

Industrial and commercial system 17 

Employees 18 

■ Products and production 

The Scania Production System 20 

Research and development 22 

Production 25 

■ The environment 28 

■ Markets and demand 

Trucks and buses 35 

Europe 36 

Latin America 40 

Asia, Australia and Africa 42 

Service-related products 44 

Customer financing 46 

■ Financial review 48 

Consolidated income statement 51 

Consolidated balance sheet 52 

Statement of changes in shareholders’ equity 54 

Consolidated cash flow statement 54 

Parent Company financial statements 55 

Accounting principles 56 

Notes to the financial statements 58 

Financial information in accordance with 

U.S. GAAP 67 

Proposed distribution of earnings 69 

Auditors’ report 69 

Quarterly data 70 

Financial ratios and definitions 71 

Multi-year statistical review 72 

■ Personal and contact information 

Board of Directors 74 

Group Management 76 

Addresses 78 

The Report of the Directors encompasses pages 2-69. 

Swedish corporate identity number: 

Scania AB (publ) 

556184-8564 

1

Important events 

2001 2002 

• Scania completed the purchase of its Dutch distributor 

Beers. The transaction strengthened Scania’s sales 

and service network in Europe. 

• At the international truck show in Brussels, Scania 

unveiled an addition to its modularised engine range: 

a 470 hp six-cylinder 12-litre turbocompound engine 

featuring new turbo and fuel injection technology. Later 

in the year, Scania introduced the first Euro 3 engine in 

Brazil. This 16-litre V8 engine is also the most powerful 

truck diesel in the Brazilian market. 

• Construction work started on a new facility for topcoat 

application at Scania’s cab factory in Oskarshamn. Aside 

from higher capacity and better quality, the new paintshop 

will result in considerable environmental improvements. 

• Scania is restructuring its bus and coach operations. 

The purpose of these changes is to achieve synergies 

with trucks in the production system and in long-term 

development, as well as to benefit from a global marketing 

organisation and create conditions for healthy bodybuilding 

operations. The restructuring will be completed 

during 2002. 

• In Latin America, especially in Argentina, the year was 

dominated by major economic problems. Scania took 

steps to improve profitability. In Brazil, it raised prices to 

compensate for unfavourable currency rate developments, 

while implementing cost reductions. In 

Argentina, it adjusted operations to changed conditions, 

among other things by a 15 percent reduction in the 

number of employees. 

• Scania sold its 50 percent stake in Svenska Volkswagen 

AB and the Swedish distributor Din Bil to Volkswagen 

AG of Germany. The purchase price amounted 

to SEK 870 m. and SEK 450 m., respectively, and 

was expected to result in a capital gain of SEK 250 m. 

and SEK 300 m., respectively. The sale will be completed 

upon approval by the relevant competition 

Established in 1891, Scania celebrated its 

110th anniversary in 2001. 

authorities. Established in 1948, Svenska Volkswagen 

is the importer of Volkswagen, Audi, Seat and Skoda, 

as well as Porsche cars in Sweden. Din Bil is a Swedish 

dealership network for cars and light trucks with 

operations in Stockholm, Gothenburg and Malmö- 

Helsingborg. 

2

Highlights 

Sales by product area, 

2001 1 Used vehicles 

Industrial and 

and other products 8% 

marine engines 1% 

Buses and 

coaches 8% 

Car 

operations 

11% 

Servicerelated 

products 19% 

Trucks 53% 

Sales by market area, 


Other markets 5% 

Western 

Asia 6% 

Europe 73% 

Latin 

America11% 

Central and 

eastern 

Europe 5% 

Key figures 2001 2000 1999 

Sales, units 

Trucks 43,659 52,318 46,651 

Buses 4,672 4,174 3,763 

Total 48,331 56,492 50,414 

Sales, SEK m. 

Scania products 47,213 44,740 38,559 

Car operations 5,852 6,658 5,485 

Total 53,065 51,398 44,044 

Operating income, SEK m. 

Scania products 2,356 4,809 4,792 

Car operations 111 275 253 

Total 2,467 5,084 5,045 

Operating margin, % 

Scania products 5.0 10.7 12.4 

Car operations 1.9 4.1 4.6 

Total 4.6 9.9 11.5 

Income after financial items, SEK m. 1,541 4,454 4,500 

Net income, SEK m. 1,048 3,080 3,146 

Earnings per share 5.24 15.40 15.73 

according to U.S. GAAP, SEK 5.69 14.93 16.37 

Sales 

SEK m. 

Operating income 

SEK m. 

Operating margin 

% 

Operating cash flows excluding 

Customer finance operations, SEK m. 2 2,066 2,557 476 

60,000 

50,000 

5,000 

4,000 

12 

10 

Return, % 

on shareholders’ equity 6.5 21.6 25.1 

on capital employed 3 8.4 19.7 21.2 

Net debt/equity ratio 3 0.49 0.50 0.61 

40,000 

30,000 

20,000 

10,000 

3,000 

2,000 

1,000 

8 

6 

4 

2 

Equity/assets ratio 23.4 25.8 25.3 

Capital expenditures for property, plant 

and equipment, SEK m. 1,980 1,825 1,876 

Research and development 

expenses, SEK m. 1,955 1,621 1,267 

Number of employees at year-end 28,342 27,366 26,359 

0 

1999 2000 2001 

0 

1999 2000 

2001 

0 

1999 2000 2001 

1 Based on deliveries. 

2 Including acquisitions/divestments of businesses. 

3 With Customer finance operations reported according to the equity method. 

3

Scania in brief 

Scania is a leading manufacturer of heavy 

trucks and buses as well as industrial and 

marine engines. The company also markets 

and sells a broad range of service-related 

products and financing services. 

Scania is a global company with operations in Europe, 

Latin America, Asia, Africa and Australia. During 2001 its 

sales totalled 53 bn. Swedish kronor (SEK), or 5.6 bn. 

euro (EUR*). Scania’s operating income totalled SEK 

2.5 bn. (EUR* 0.3 bn.). Its income after financial items 

amounted to SEK 1.5 bn. (EUR* 0.2 bn.). 

Scania is the world’s third largest make for heavy 

trucks of more than 16 tonnes (Class 8). It is the 

world’s third largest make in the heavy bus segment. 

Scania has 28,342 employees worldwide. Of 

these, 24,143 work in Europe and 4,199 in Latin 

America. In addition, about 20,000 people work in 

Scania’s independent sales and service organisation. 

Scania shares are quoted on Stockholmsbörsen 

(formerly the OM Stockholm Stock Exchange) and on 

the New York Stock Exchange. 

Products 

Scania designs its products to have the lowest possible 

impact on the environment. They are optimised to 

consume less energy, raw materials and chemicals 

during their life cycle and to be recyclable. 

* Translated at the exchange rate on the balance sheet date, SEK 9.4190 = EUR 1. 

Vehicles 

Scania develops, manufactures and distributes trucks 

with a gross vehicle weight of more than 16 tonnes 

(Class 8), intended for long-distance haulage, regional 

and local distribution of goods as well as construction 

haulage. 

Scania’s bus and coach range consists of bus 

chassis as well as fully built buses for more than 30 

passengers, intended for use in urban and intercity 

traffic or as tourist coaches. 

Scania’s industrial and marine engines are often 

built into products manufactured by other companies. 

These engines are used, among other things, in generator 

sets and in earthmoving and agricultural machinery, 

as well as aboard ships and pleasure craft. 

Service-related products 

In addition to vehicles, Scania sells service-related 

products, for example parts and workshop services in 

the form of maintenance and repairs. The customer 

can also choose different forms of service and maintenance 

contracts. 

Customer financing 

Scania provides its customers with various types of 

financing solutions, for example leases or hire purchase 

contracts. 

Focus 

Scania vehicles and services can be tailored to each 

customer’s needs, thereby enabling customers to optimise 

their earnings capacity. Scania’s success is 

based on putting the customer first. 

Scania’s ten largest truck markets 

Heavy truck registrations Market share in % 

2001 2000 2001 2000 

Brazil 5,266 5,153 29.2 29.7 

Great Britain 5,137 6,743 15.5 20.7 

France 4,281 4,963 9.3 10.5 

Germany 4,246 5,793 8.3 10.1 

Italy 3,304 3,356 13.5 13.1 

Spain 3,176 3,646 12.1 14.4 

The Netherlands 2,410 3,150 17.6 22.4 

Sweden 2,040 2,358 47.9 50.4 

Belgium 1,461 1,556 17.4 18.6 

South Korea 1,213 471 15.3 6.6 

Western Europe 31,787 37,906 13.5 15.6 

Scania’s five largest bus markets 

Bus registrations Market share in % 


Brazil 853 1,100 7.9 10.4 

Spain 423 364 16.6 16.5 

Mexico 304 175 2.5 1.6 

Italy 293 197 7.6 6.5 

Sweden 205 223 25.1 21.5 

Cars 

Early in 2002, Scania sold its 50 percent stake in 

Svenska Volkswagen AB, as well as the Swedish distributor 

Din Bil, to Volkswagen AG of Germany. Scania 

also owns some small car distributors in Finland and 

Switzerland. Since car operations are not part of 

Scania’s core business, there are plans to divest the 

remainder of these operations. 

4

Sweden 

Scania’s global sales and service organisation 

Altogether, Scania is represented in about 100 countries 

through 1,000 local distributors and 1,500 service points. 

Scania’s global production system 

Scania has production facilities in Europe and Latin 

America. In addition, there are assembly plants in ten 

countries in Africa, Asia and Europe. 

Production of trucks and buses 

Assembly plants 

The Netherlands 

Zwolle/Meppel 

Production of trucks and cabs. 

Employees: 1,800 

France 

Angers 

Production of trucks. 

Employees: 500 

Ferruform AB 

Luleå 

Production of frames and 

axle housings. 


Falun 

Production of axles. 


Södertälje 

Head office and research and 

development. Production of 

components, engines and trucks. 


Katrineholm 

Development and production of 

buses and bus chassis. 


Estonia 

Russia 

Oskarshamn 

Production of cabs. 


Mexico 

San Luís Potosí 

Production of trucks and 

buses. 

Employees: 80 

Morocco 

Tunisia 

Kenya 

Thailand 

Malaysia 

Poland 

Sĺupsk 

Production of trucks 

and buses. 


Sibbhult 

Production of gearboxes. 


Scania Infotronics AB 

Kista 

Mobile communication 

development. 

Employees: 40 

Argentina 

Tucumán 

Production of gearboxes, 

axles, trucks and buses. 


Brazil 

São Paulo 

Production of engines, 

cabs, trucks and buses. 

Employees:2,100 

South Africa 

5

Statement of the Chairman 

In the first year of the new millennium the 

world economy entered a clear slowdown 

after a long period of good growth. 

Over time, however, transport needs are 

increasing in most countries. Improved 

infrastructure and growing trade will 

gradually lead to increased demand for 

heavy transport vehicles. 

The downturn has been more pronounced in the US 

than has been the case in Europe. Increased uncertainty 

after 11 September meant that the weakening of 

general confidence in the economy accelerated. The 

American economy has experienced negative growth 

since the spring of 2001, a situation which is likely to 

remain for a considerable part of this year. The world’s 

major economies are simultaneously exhibiting very 

weak economic performance, a rather unusual situation. 

Scania has of course been adversely affected by 

these developments and reduced sales volume, from 

56,500 units in 2000 to 48,300 in 2001. This is still a 

high volume for Scania historically, and in spite of a 

certain loss in market penetration in western Europe, 

Scania has a strong position in most of its important 

markets. 

Recovery in Europe will take time 

Europe is trailing the American business cycle and 

managed to show a certain economic growth throughout 

2001 but is likely to slow down even further during 

2002. A dull domestic market and a weak world economy 

will probably make the recovery in Europe relatively 

slow. 

Downturn in Latin America 

In 2000, the Scania markets in Latin America and Asia 

had begun to recover from the economic difficulties 

that began in Asia a few years earlier. The new downturn 

in the world economy in 2001 again pushed many 

countries into a recession. In Latin America, the problems 

in Argentina have been dramatic with an overvalued 

currency and significant negative growth. 

The crisis in Argentina is far from over even though 

tough measures are being taken to reverse the deterioration 

of the economy. The uncertainty in the other 

Latin American economies has been considerable but 

not dramatic. Brazil – Scania’s most important market 

in Latin America – has experienced economic difficulties 

which are expected to continue. Elections in 2002 

for a new President add to the uncertainty. 

The Board has closely followed the developments 

in Scania’s Latin American operations and approved a 

programme aimed at restoring profitability. 

Best margin in the industry 

In spite of the weaker market and reduced volumes, 

Scania’s operating margin of 4.6 percent was again 

clearly higher than the industry average. Scania’s 

leading position over the years in terms of profitability 

shows that the company’s products continue to 

meet and surpass customers’ expectations and that 

Scania has an efficient structure and efficient working 

methods. 

During the past ten years, Scania has grown substantially 

in volume. This has been achieved organically. 

Successful working methods, product renewal, 

far-reaching production improvements and strengthening 

of the distribution structure have laid the groundwork 

for long-term profitable growth. 

Svenska Volkswagen 

Scania is one of Volkswagen’s oldest business partners, 

due to our joint distribution organisation in 

Sweden since 1948. Our co-operation in Svenska 

Volkswagen has been very successful. However, car 

and truck distribution has diverged and the previous 

synergies decreased. It is now natural for Scania to 

specialise and to separate these businesses. 

Strong brand and culture 

The strength of its brand is a success factor for any 

company, including manufacturers of capital goods, 

such as heavy vehicles. The Scania brand name is 

very strong and has a ‘‘King of the Road” image. The 

strength of this brand name is the result of many years 

of delivering vehicles and service-related products of 

high quality to Scania’s customers. 

Trust is a very important part of the Scania brand. 

Customers rely on Scania every time they use its products. 

All employees at Scania must therefore do their 

utmost to fulfil the promises that are built into the 

brand. 

6

Scania’s vibrant corporate culture has 

contributed to the company’s leading position. 

Both Scania employees and the owners of 

Scania products feel proud to be associated 

with the company. And I regard it as the duty 

of the Board to continue strengthening the 

foundations of this pride. 

Dr. Ferdinand Piëch, Chairman 

The work of the Board 

According to the work schedule adopted by the Board 

of Directors, it holds seven regular meetings per year. 

Beyond this, the Board may meet when circumstances 

so warrant. 

The January/February, April, July/August and 

October/November meetings are devoted primarily to 

financial reporting. The statutory meeting after the 

Annual General Meeting focuses chiefly on the Board’s 

work schedule, instructions to the President and 

compensation issues. 

In June, the Board discusses capital expenditure 

issues and long-term planning. The December meeting 

focuses especially on operational planning and futureoriented 

issues. Beyond this, all meetings deal with 

matters of a more current nature as well as capital 

expenditures. 

The Board’s instructions to the President specify his 

duties and powers. Board policy documents on capital 

expenditures, financing, communication and reporting 

are also appended to the instructions. 

A committee has been established consisting of 

members independent of Volkswagen and Investor. The 

Employee Representatives are not included. This committee 

is intended to handle issues that may touch upon 

the ownership structure of Scania AB. 

Compensation issues for the President and certain 

other senior executives are handled by a committee consisting 

of Dr. Ferdinand Piëch, Rolf Stomberg and Marcus 

Wallenberg. 

7

Statement of the President and CEO 

In many of Scania’s markets, 2001 was a 

turbulent year. This applied to Europe as well 

as Latin America and Asia. This turbulence 

began late in 2000 when oil prices culminated 

at USD 35 per barrel from a level less than 

half as high one year earlier. 

The transport industry is sensitive to oil price developments, 

since fuel costs for heavy trucks and buses 

represent between 25 and 30 percent of total operating 

costs. Disregarding the driver’s wages, the cost of 

fuel accounts for 50 per cent or more. Most transport 

operators have fuel cost clauses in their contracts. 

Normally, however, it takes quite a while before these 

clauses have an impact on pricing to the customer. 

Transport operators are very sensitive to cash flows. 

When costs rise, they cut back their new vehicle purchases. 

This applies generally, regardless of the continent 

where the transport operator does business. 

Foresighted 

As early as the final months of 2000, we made the 

assessment that demand would weaken during 2001 

in Europe, Latin America and Asia. We decided at that 

time to sharply increase the pace of production in 

order to maintain short delivery times. This was why 

Scania had a low order backlog at the beginning of 

2001. Our tactic was to deliver the vehicles in our 

orderbook as quickly as possible. In harder times, cancellations 

of existing orders are common. The flexibility 

of the Scania Production System enabled us to 

respond to rapid changes in demand in a more efficient 

way than our competitors. 

Business quality ahead of volume 

Demand in western Europe turned out better than in 

our base scenario. We assumed that the total market 

for heavy trucks would fall to between 200,000 and 

210,000 units. Measured as heavy truck registrations, 

demand totalled 235,000 units, for a downturn of 

4 percent. Scania’s market share fell. This was a result 

of Scania’s short orderbook compared to the rest of 

the industry, but also of the fact that we openly 

declared that we prioritised profitability in our business 

ahead of volume. In the long term, this is a wise policy 

in a business with industrial customers. 

In Europe, our industry faces a clearly lower 

demand level in 2002. When we analyse our deliveries, 

we find that Scania defended its position very well in 

the segment above 400 horsepower and captured 

market share there. However, Scania lost ground in 

the under 400 hp segment, which includes the truck 

purchases of most large hauliers. The latter were also 

the most active buyers in the market last year. 

Focus on after sales service 

Early in 2001, we acquired the remaining 50 percent of 

the shares in our Dutch sales and service company 

Beers NV. Having done this, in principle we have completed 

the integration of the sales and service organsation 

that has been our strategy since the early 

1990s. Today Scania has the strongest, most specialised 

service network in western Europe. This strategy 

gives us a good opportunity to benefit from the entire 

value chain to the customer, throughout a vehicle’s 

service life. 

In central and eastern Europe, Scania has continued 

to strengthen its position in expanding markets. 

We have also continued to strengthen our position 

when it comes to the sales and service network. In 

Russia, the economy has stabilised after the 1998 

crash, and the country is rapidly becoming institutionalised 

according to a western model. As an effect of 

this, risks have diminished when it comes to truck 

sales. 

Tough in Latin America 

Developments in Latin America were the big disappointment 

of 2001. Brazil was hit by a depreciated 

currency as well as an energy shortage. In Argentina, 

the economy broke down, resulting in a political crisis 

and a default on foreign loans. Given the prevailing 

turbulence, we were forced to acquire a number of 

dealerships in both Brazil and Argentina in order to 

protect our sales and service network to a reasonable 

extent. 

Demand increased slightly in the Brazilian market, 

while other markets – especially Argentina – shrank. 

We took vigorous steps to restore the price level to 

normal world market prices, while further trimming 

the cost level in production units both in Brazil and 

Argentina. These measures will gradually have an 

impact during the first half of 2002. However, there 

will be further uncertainty in the region, such as the 

upcoming presidential election in Brazil and political 

developments in Argentina. 

8

South Korea leads the way in Asia 

In Asia, developments were divided. On the whole, 

economic growth was lower than we had expected, 

with the exception of China. However, the South 

Korean market performed very well, and the long-term 

investments Scania began there more than a decade 

ago are now paying off. In Chinese-speaking markets, 

demand stagnated but was nevertheless at a significantly 

higher level than a few years earlier. The businesses that 

Scania has established in Thailand and Malaysia are also 

beginning to yield results. 

Restructuring of bus and coach operations 

Late in 2001, we decided to implement a major 

restructuring of Scania’s bus and coach operations. 

During 2002, bus chassis operations will be completely 

integrated with trucks when it comes to development, 

manufacturing and sales. Bodybuilding operations 

will form a separate company. We expect these 

steps to save us some hundreds of millions of kronor. 

Our ambition is for Scania’s bus and coach operations 

to generate the same operating margin as trucks. 

We will, however, have to absorb certain restructuring 

expenses during the current year. The programme will 

achieve its full effect during 2003. 

Focus on quality and people 

Scania’s investments in product development rose. 

Further improvement in the quality level of our vehicles 

is our top priority. The quality of the products during 

their life cycle is completely crucial to each customer’s 

profitability. 

Also in the pipeline are new products that will gradually 

be unveiled over the coming five-year period. We 

launched new engines in our modular range, among 

them a 470 hp turbocompound engine to complement 

the 480 and 580 hp V8 engine introduced during 2000. 

Scania now has the most competitive engine range over 

400 hp, the most profitable portion of the market. 

At our production units, for a number of years we 

have followed the principles of the Scania Production 

System (SPS), with its focus on the individual. There 

are now more than 1,000 improvement teams in 

Scania’s global organisation. Their work follows a 

method in which small adjustments of production 

flow occur in logical sequences, and all employees 

participate actively. Aside from significantly boosting 

quality, SPS improves productivity, but above all we 

see how it has greatly improved job satisfaction and 

commitment, leading to a decrease in work-related 

injuries and absences due to illness. 

In my judgement, demand will recover again only 

after we have entered 2003. During this downturn in 

demand, we are conducting a thorough review of 

Scania’s activities and working methods, in order to 

become an even stronger company once demand 

comes back. Despite the difficult market situation, we 

feel that Scania has a very promising future ahead. 

I would like to take this opportunity to thank all our 

employees for their contributions during a year that, 

under tough prevailing circumstances, still resulted in 

decent earnings. 

Leif Östling 

President and CEO 

9

Scania share data 

The 2001 stock market year was characterised 

by international turmoil and instability, very 

much due to world events and lower growth 

expectations. Both the Stockholm All-Share 

Index and the Industrials Index fell during the 

year. 

Share price, Stockholmsbörsen, Scania B shares 

500 

400 

All-Share Index (SAX) 

300 

Share price and trading 

On Stockholmsbörsen, the All-Share Index fell by about 

16 percent, and the Industrials Index fell by about 4 percent. 

B shares – the more heavily traded of Scania’s two 

series – fell by 9 percent during 2001. At year-end, 

B shares were quoted at a market value of SEK 192.00. 

This was equivalent to a market capitalisation of SEK 

38,100 m. for Scania. The highest price for B shares 

during the year, SEK 243.00, was paid on 1 February. 

The lowest, SEK 132.00, was paid on 21 September. 

Scania share trading volume 

On average, about 118,100 Scania B shares changed 

hands each trading day in Stockholm. The turnover rate 

for B shares was 29 (36) percent, compared to 134 

(107) percent on Stockholmsbörsen as a whole. In New 

York, an average of about 41 Scania ADRs were traded 

per day. At year-end, there were about 71,000 (86,000) 

ADRs outstanding. 

Ownership structure 

Volkswagen AG has been Scania’s largest owner in 

terms of votes, with 34.0 percent of voting power and 

18.7 percent of share capital, since March 2000 when 

200 

100 

Trading volume in thousands (including after-market) 

60,000 

40,000 

20,000 

0 97 98 99 00 01 02 

About Scania shares 

Scania’s share capital is divided into 100 million A shares and 

100 million B shares. Each A share represents one vote and each 

B share one tenth of a vote. Otherwise there are no differences 

between these types of shares. The nominal (par) value per 

share is SEK 10. 

Market listings 

Since 1 April 1996, both types of Scania shares – Series A and Series 

Scania B shares 

B – have been quoted on Stockholmsbörsen and the New York 

Stock Exchange (NYSE). In Stockholm, both A shares and B shares 

are quoted on the exchange’s A list, in the ‘‘most traded” segment. 

A round lot consists of 100 shares. 

On the NYSE, Scania’s shares are traded in the form of American 

Depositary Receipts (ADRs), consisting of 10 shares, with Citibank 

as the depositary bank. Scania shares are also traded on the 

London Stock Exchange Automated Quotations system for non-UK 

equities (SEAQ International). 

10

it bought part of Investor’s stake in Scania. 

Investor’s stake in Scania after the sale amounts to 

15.3 percent of the votes and 9.1 percent of the capital. 

Investor is thus Scania’s third-largest shareholder. 

Volvo has 30.6 percent of the votes and 45.5 percent 

of the capital in Scania. Volvo is thus Scania’s secondlargest 

owner in terms of votes and largest owner in 

terms of capital. The European Commission decided 

to restrict Volvo’s ownership influence in Scania, and 

Volvo must divest its Scania holding by April 2004 at 

the latest. 

On January 2002, the number of shareholders in 

Scania was about 39,000, a decrease of 2,000 since 

January 2001. Non-Swedish ownership including 

Volkswagen AG amounted to 35.8 percent of votes 

and 21.4 percent of capital. 

Beta coefficient 

According to Stockholmsbörsen’s calculations, the 

beta coefficient for Scania’s B shares was 0.69 at 

year-end. This means that on average, Scania shares 

fluctuated less than the average for the exchange. The 

explanatory value for Scania shares was 0.18. This 

means that 18 percent of the changes in Scania 

shares could be explained by overall changes on the 

exchange. 

Dividend 

The Board of Directors proposes that the Annual General 

Meeting approve a dividend of SEK 3.50 per share 

for the financial year 2001. The dividend for 2000 

amounted to SEK 7.00 per share. 

Per share data 

SEK (unless otherwise stated) 2001 2000 1999 

Earnings 5.24 15.40 15.73 

Shareholders’ equity 79.98 78.49 67.74 

Dividend (2001: proposed) 3.50 7.00 7.00 

Market prices, B shares 

Highest for the year 243.00 310.00 312.50 

Lowest for the year 132.00 205.00 154.00 

Year-end (at closing) 192.00 210.00 306.50 

Price/earnings ratio, B shares 36.6 13.6 19.5 

Dividend payout ratio, % 66.8 45.5 44.5 

Dividend yield, % 1 1.8 3.3 2.3 

Annual turnover rate, % (B shares) 29 36 205 

Number of shareholders 39,000 2 41,000 3 43,000 4 

Average daily number of shares 

traded, 2001: 

– Stockholmsbörsen A 30,400 

B 118,100 

Total 148,500 

– New York Stock Exchange A ADRs 16 

B ADRs 25 

Total 41 

1 Dividend divided by the market price of a B share at year-end. 

2 On 31 January 2002. 

3 On 31 January 2001. 

4 On 29 January 2000. 

The ten largest shareholders, 31 January 2002 

% of % of 

voting power capital 

Volkswagen 34.0 18.7 

Volvo 30.6 45.5 

Investor 15.3 9.1 

Wallenberg foundations 4.2 3.5 

Alecta (formerly SPP) 4.0 2.9 

SHB Handelsbanken sphere 2.2 1.9 

Nordea mutual funds 1.1 1.3 

AMF Pension 0.5 0.6 

Sixth Swedish National Pension Fund 0.2 0.3 

D. Carnegie 0.2 0.1 

Total 92.3 83.9 

Ownership structure, 31 January 2002 

% of % of 

Number of shares shareholders capital 

1– 500 90.1 2.4 

501– 2,000 7.5 1.5 

2,001– 10,000 1.7 1.6 

10,001– 50,000 0.4 1.7 

50,001– 100,000 0.1 1.0 

> 100,000 0.2 91.8 

Total 100.0 100.0 

Scania’s website, www.scania.com includes continuous information 

about Scania, Scania shares, quarterly reports and Annual 

Reports and provides a way to contact Scania’s Investor Relations 

department. 

11

Vision, mission statement and strategy 

Vision 

Scania shall be the leading company in 

its industry by creating lasting value for 

its customers, employees, shareholders 

and other stakeholders. 

Mission statement 

Scania’s mission is to supply its customers with 

high-quality vehicles and services related to the 

transport of goods and passengers by road. By 

focusing on customer needs, high-quality products 

and services as well as respect for the individual, 

Scania shall create value-added for the 

customer and grow with sustained profitability. 

Scania thereby also generates shareholder value. 

Scania’s industrial operations specialise in 

developing and manufacturing vehicles, which 

shall lead the market in terms of performance, 

life-cycle cost, quality and environmental characteristics. 

Scania’s commercial operations, which 

include the sales and service organisation, shall 

supply customers with vehicles and after-sales 

support, thereby providing maximum operating 

time at minimum cost over the service life of their 

vehicles. 

Strategy 

Concentration on heavy transport vehicles 

Scania’s operations focus exclusively on heavy transport 

vehicles. In mature markets, demand for trucks 

and buses in the heavier segment increases with GDP 

growth. In developing countries, it increases faster or 

at the same pace as the infrastructure expands and 

standards of efficiency improve in the transport 

industry. 

Modular product system 

With Scania’s modular product system, the customer 

gets the exact vehicle specification he or she wants. 

The more closely a vehicle is adapted to its transport 

task, the better the customer’s operating economy will 

be. The modular system is the basis for production 

quality. It simplifies parts management and contributes 

to a higher degree of service. 

The modular system limits the total number of main 

components that are included in Scania’s product 

range. It thereby allows considerably longer production 

runs for these components than is possible in a conventional 

product system. Scania’s modular product 

range and global quality standards make it possible 

to use the same process engineering at all Scania 

facilities. 

Complete range of vehicles, 

services and financing 

Offering the best package solutions in the market is 

the key to implementing Scania’s growth targets. 

Scania’s customers increasingly use their vehicles 

round the clock. This presupposes rapid, continuous 

access to service and repairs. In addition to its vehicle 

development work, Scania is continuously improving its 

sales and service network. Customer financing is an 

important element of Scania’s complete product range. 

Focus on growth markets 

Scania’s main markets – Europe, Latin America and 

Asia – have good potential for long-term growth. 

An increasingly borderless Europe, with growing 

economies, is offering major opportunities to manufacturers 

with a well-developed sales and service 

network. 

In Latin America, the demand for vehicles, services 

and financing is increasing as an increasing share 

of both goods and passenger traffic utilises heavy 

vehicles. 

Asia is a long-term growth market. Infrastructur 

improvements will open the way for a more efficient 

transport sector. 

13

Identity and brand name 

Scania has a strong brand name. Behind 

this is a solid corporate culture that always 

puts the customer first. Respecting the 

knowledge, experience and desire of all 

individual employees to continuously improve 

their work is fundamental to Scania’s culture. 

A brand that inspires confidence 

Scania has always offered good technical solutions, 

with the ambition of outperforming its competitors. 

The company’s products and services should not only 

live up to customer expectations, but also surpass 

them. 

Scania engenders a sense of pride among employees 

as well as customers. The customer should feel 

secure and confident that he or she has made a sound 

investment. Scania products help vehicle owners and 

drivers to enjoy respect for their choice of professional 

working tools. 

Values 

Aside from the company’s products – vehicles, services 

and customer financing – Scania’s identity is 

shaped by its values and working methods. 

The various units of the company share three values, 

which form the basis of both Scania’s corporate 

culture and its business success: 

Putting the customer first 

Scania focuses all its efforts on the needs and activities 

of its customers. It does so by optimising the 

value chain – from development work via production 

and sales to customer finance and servicing of 

vehicles while they are in operation. By viewing its 

business over a vehicle’s entire life cycle, Scania also 

creates a close contact with each customer. 

Respect for the individual 

Respect for the individual is a cornerstone of leadership 

at Scania. One of the most important tasks of a 

Scania manager is thus to teach fellow employees and 

to apply the principles that govern the company’s 

work. 

New ideas and inspiration are born out of day-today 

operations. When given increased responsibility, 

Scania’s employees always seek better solutions in 

their work. Their knowledge, experience and desire 

for continuous improvements contribute to greater 

efficiency. 

Quality 

The quality of Scania’s products and services must be 

first-class and uncompromising. All employees, no 

matter where they are in the organisation, know that 

only by delivering high quality can Scania surpass 

customer expectations. This also eliminates waste in 

the organisation. 

By immediately dealing with deviations – ‘‘loving 

deviations” to put it a bit more colourfully – and then 

promptly remedying them, Scania’s employees continuously 

improve the quality of their products and the 

efficiency of their work process. 

14

Scania’s role in society 

An ethical approach to work and business is 

the responsibility of every employee. Respect 

for the individual is one of the core values that 

define how Scania’s employees behave 

towards their surroundings and their fellow 

employees. 

Scania works actively to emphasise ethical and social 

values within the organisation. There is a strong connection 

between business ethics, social commitment 

and the Scania brand. 

Ethics 

The overall purpose of Scania’s operations is to create 

lasting value for its customers, employees, shareholders 

and other stakeholders. Sound ethics and 

high moral standards are a precondition for winning 

and maintaining trust and respect – and thereby also 

for profitable long-term operations. 

Scania supports and respects the international 

principles of human rights. 

Assuming social responsibility 

Scania regards assuming social responsibility as selfevident. 

Also important is working towards positive 

local social development where Scania has operations. 

One way in which Scania pursues its commitment 

to social issues is through collaboration with various 

public agencies and organisations. During 2001, Scania 

organised a top-level road safety conference in 

Brussels, attended by some 300 decision-makers from 

the European Commission, the EU Parliament and 

During 2001, Scania organised a large road safety conference in Brussels. EU Commissioner Erkki Liikanen and Scania CEO Leif Östling look more 

closely at how intelligent transport systems can improve road safety. 

other organisations. At the conference, Scania took 

the initiative for two projects aimed at improving road 

safety in Europe, Young European Truck Driver and 

the creation of a common European road database 

for heavy vehicle operators. 

Freedom of contract and 

co-determination 

All employees of Scania’s global organisation are fully 

entitled to participate in trade union work, and a 

majority of employees belong to a union. 

In those countries where Scania has production 

units, employees have access to company information 

and the right to co-determination, as provided by 

national legislation. 

Collective negotiations take place at all production 

sites and in most sales companies. 

Suppliers 

Scania has a procurement policy that specifies the 

standards required in the company’s relationship with 

its suppliers. Business ethics and social aspects play 

as central a role here as quality and environmental 

standards. 

Among other things, Scania’s procurement policy 

states that ethics and integrity are the responsibility 

of every employee and that, in cases where business 

activities are not covered by special laws or rules, 

Scania’s behaviour shall always be characterised by 

honesty and respect for others. 

15

Product concept 

To enable Scania to continuously surpass 

customer expectations, its operations are 

based on an integrated product concept that 

combines vehicles, service-related products 

and financing. Through its collective 

knowledge in these fields, Scania helps to 

improve the profitability of its customers. 

Deregulation of markets and increased international 

trade imply far-reaching changes in the working conditions 

of transport operators. Large national or international 

haulage companies are being formed through 

mergers or acquisitions. The transport industry is 

increasingly dominated by companies with large, 

highly developed vehicle fleets and by specialised 

smaller companies. There is a growing demand for 

such services as financing, insurance, short-term 

leasing and maintenance. Using flexible package 

solutions that are tailored to fit each customer’s 

needs, Scania helps many companies to achieve 

comprehensive transport solutions. 

The future will require continuously optimising the 

value chain – from product development through 

production, sales, customer financing and servicing 

of vehicles. 

Vehicles, service-related products 

and financing are essential elements 

of Scania’s value chain. 

Vehicles 

The better Scania’s vehicles and service-related 

products are adapted to the customer’s transport task, 

the higher the customer’s profitability will be. Scania’s 

modular system is based on using components in 

many different combinations, giving customers a 

nearly unlimited number of possibilities to tailor 

vehicles to their needs. 


Buyers of heavy vehicles want specific solutions that 

enable them to use each vehicle optimally. Many 

customers prefer to pay a fixed per-kilometre price 

to ensure that their vehicle will always be on the road, 

without needing to worry about service, maintenance 

and availability. This is why Scania has developed a 

broad range of services that make it possible for 

customers to focus on their core business – transport 

services and logistics. 

With a broad, far-flung network of 1,000 sales 

locations and 1,500 service points, customers always 

have access to Scania products and service. 

Financing 

Customer financing is an important component of 

Scania’s package solutions. Financing of vehicles 

occurs by means of operating leases, financial leases 

and hire purchase contracts. In Latin America, Scania 

offers customer-financed savings programmes, while 

also working with external lenders. 

New financial services related to Scania’s products 

are continuously being developed. 

16

Industrial and commercial system 

The governance of Scania is based on the 

company’s integrated global structure. 

Vehicles, services and customer financing 

are elements of the same product offering, 

which creates value-added for customers. 

Group Management 

The market 

Staff units 

Staff units 

Scania’s 

commercial 

system 

Scania’s industrial system 

Service 

Scania’s industrial system is responsible for development 

and manufacture of vehicles and engines, as 

well as development of services and marketing of 

products. Future customer needs, combined with 

technological advances, determine the company’s 

product development work. 

All development work occurs in direct collaboration 

with production units, to ensure that products can 

be manufactured in an efficient way with the highest 

quality. 

The marketing unit in the industrial system gathers 

signals from the market and direct them to the 

development organisation, which shapes concrete 

development projects. The marketing unit is responsible 

for market and volume planning as well as for 

developing the sales and service network. 

Scania’s 

industrial 

system 

Development 

Products and services 

Production 

Marketing 

Sales 

Scania-owned and 

independent 

sales and service 

organisation 

Scania’s commercial system 

Scania’s commercial system consists of national sales 

and service organisations. Those that are owned by 

Scania work independently under their own boards of 

directors, according to the growth and financial return 

targets and principles established by Scania. 

The companies in the commercial system – both 

Scania-owned or independent – negotiate on market 

terms with the industrial system. 

17

Employees 

Respect for the individual is a precondition for 

the development of employees – both in their 

work and as human beings. The main key to 

this is highly skilled leadership and long-term 

human resource development. 

Leadership focused on working methods 

Clear, supportive leadership, with clear allocation of 

responsibilities, is fundamental to Scania’s continuous 

improvement efforts. This establishes a creative, secure 

environment, thereby encouraging initiatives and the 

courage to break new ground, and rewarding concrete, 

lasting results. 

One of the most important tasks of a Scania manager 

is to teach and to apply the principles that form the basis 

of the continuous improvement method of working. 

Employees in the company’s operations often give birth 

to new ideas and impulses, while their managers stimulate 

the continuous development of working methods. 

This leads to lasting improvements in results. 

Human resource development 

Scania managers must utilise the talents of their fellow 

employees and stimulate development. At the same time, 

each individual employee has a responsibility for improving 

his or her own skills. 

Scania’s human resource development work has a 

long-term focus – from contacts with schools to qualityassured 

training programmes tailored to the needs of 

employees throughout their years with the company. 

During 2001, 10,000 participants underwent training in 

200 different courses as part of Scania’s programmes. 

Scania’s industrial research programme enables graduate 

engineers to combine permanent employment with 

research at the licentiate or doctoral level. 

The Scania Marketing Academy provides academically 

accredited training that develops leadership talent and 

strengthens the business skills of Scania’s marketing 

organisation. The Academy is run in collaboration with 

the Stockholm School of Economics. 

Scania operates its own technical upper secondary 

school in Södertälje, which trains certified fitters and 

production mechanics. There are also Scania-affiliated 

industrial schools in Zwolle and São Paulo. 

Global corporate culture 

The Personnel Exchange Programme (PEP) broadens the 

skills of Scania employees and enables them to work in 

other countries. Since it was established, more than 550 

Scania employees have completed the programme. 

Motivating employees 

A good working environment, personal responsibility and 

teamwork provide motivation. Combined with bonus systems, 

they increase employee participation and dedication. 

In Sweden, the bonus system is based on the year’s 

delivery assurance and productivity growth. Funds are 

transferred to a foundation in which each employee holds 

shares. At year-end 2001, the foundation owned 0.5 percent 

of Scania shares. In France, the bonus is determined 

by earnings, quality and delivery precision, and in the 

Netherlands by earnings and low absenteeism. 

In Latin America, the bonus is based on production, 

low absenteeism, market leadership, teamwork and 

improvement efforts. 

With 1,700 employees, the cab production unit 

in Oskarshamn is one of Scania’s largest plants. 

18

Scania’s trainee programme 

To ensure a long-term supply of employees for key 

positions, Scania operates a trainee programme 

designed primarily for newly graduated engineers 

and economists or MBAs, giving them an opportunity 

to work for one year in different positions at 

the company. The programme, which also 

includes a training period abroad, provides the 

necessary skills for a successful future career in 

the world of Scania. 

Karl Bernqvist, Sweden, procurement trainee: 

‘‘Through the trainee programme, I have become acquainted 

with people and parts of the organisation that I would otherwise 

not have come into contact with in an equally natural way. 

It has provided me with the basis for a holistic view that will be 

of great use to me in my daily work and my future career. During 

my next training periods I will be working in marketing and 

production, and finally abroad with an importer or dealership, 

which I am really looking forward to.” 

Ronnie Dedden, the Netherlands, 

production trainee: 

‘‘The trainee programme is a fantastic opportunity to learn 

more about a respected, global company like Scania. For 

me, product development has been a good place to start, 

right at the heart of Scania. Now I am looking forward to 

gaining more experience during my other training periods 

in production, logistics and marketing.” 

Anna Wallin, Sweden, marketing trainee: 

‘‘During my first trainee period, I have been at a Scania dealership. 

My work there has given me a good understanding of the 

customer’s business. One of the high points was when I was 

allowed to travel with a truck driver for one week and learn 

how a Scania should be designed to give our customers the 

best possible working conditions. 

‘‘During the trainee programme, I hope to learn a lot about 

the product, the industry, competitive conditions and especially 

about the Scania organisation. I am also looking forward to 

international contacts and personal development.” 

19

The Scania Production System 

One essential element of the Group’s industrial 

system is the Scania Production System (SPS), 

which provides the basis for growth, competitiveness 

and increased profitability. 

Scania’s components are the same, regardless of 

whether production takes place in Europe, Latin 

America or some other part of the world. 

The same thing applies to the philosophies, principles 

and priorities that govern its working methods. 

Regardless of what languages are spoken at Scania’s 

production plants, their employees share a common 

production language. A language where the customer 

always comes first. 

The Scania Production System has been developed 

at the company’s own workshops. In most places, SPS 

is now firmly rooted in Scania’s day-to-day work. Its 

most important success factor is the knowledge, experience 

and willingness of all individual employees to 

continuously improve their work. Scania employees are 

growing into new, creative roles. Everyone personally 

participates in developing methods and tools, in order 

to make the production system as dynamic as possible. 

Scania’s suppliers are also part of this production 

system, which is based on three philosophies: 

• Putting the customer first 

• Respecting the individual 

• Quality – eliminating waste 

Four main principles 

The Scania Production System is based on four main 

principles: 

Standardised working method 

Doing it right the first time 

Consumption-controlled production 

Continuous improvements 


– the normal situation 

To ensure that Scania’s products maintain high and 

uniform quality, work processes have been standardised 

and documented. Tasks are performed in a specific 

way, at a specific pace and with an even, balanced 

flow throughout the production chain. In the 

Scania Production System, this is called the ‘‘normal 

situation”. Given a standardised working method, both 

manufacturing time and quality will be constant. 

Doing it right the first time 

Scania’s quality improvement efforts are based on the 

principle of ‘‘Doing it right the first time”. Since work 

takes place visually, with visible buffers and process 

follow-up posted on bulletin boards, what is normal or 

abnormal becomes obvious. Direct feedback to the 

person who caused a deviation allows it be remedied 

quickly, helping to create a quality-assured work 

process. 

Consumption-controlled production 

Scania’s customers decide how many trucks, buses or 

industrial and marine engines will be manufactured. It 

is the customer who determines when production will 

begin. This principle permeates the entire Scania production 

chain, from submitting orders to suppliers 

through production and assembly through the final 

product that is ready for delivery. 

With consumption-controlled production, Scania 

manufactures products with higher quality and at lower 

cost, while all of the customer’s wishes can more 

easily be satisfied. 

20

Consumption-controlled production also applies to the 

provision of services, where activities are based on real 

needs. 

Continuous improvements 

Continuous improvements mean discovering and 

eliminating waste, then applying the resulting liberated 

resources to productive tasks. 

1,000 improvement teams 

The most important success factor in the Scania Production 

System is the work of the improvement teams. 

Worldwide, Scania now has more than 1,000 such 

teams, in which managers, engineers, fitters, equipment 

operators and other categories of employees 

contribute their knowledge, professional skills and talent 

to solving problems. Challenging and improving 

the existing processes is part of the daily work of 

these teams. The goal is to find the easiest flow and 

the easiest method for each situation in their daily 

work, in order to achieve the highest possible quality 

and the least possible waste of resources. 

Leadership focusing on working methods 

One of the most important tasks of managers in the 

Scania Production System is to teach the principles 

on which the SPS working method is based. Everyone 

involved in operations helps to give birth to new 

ideas and impulses, with managers encouraging the 

development of new standardised working methods 

and making sure that these methods enjoy employee 

support. This kind of leadership is participative and 

supportive, and it leads to continuous improvements. 

The modular system 

Product specifications are based on 

customers’ individual needs. The 

modular system enables Scania 

to offer tailor-made vehichles that 

increase the profitability of the 

customers, while ensuring Scania’s 

cost-effectiveness. 

Different thickness of side-members 

Basic gearboxes 

Engines with the same combustion chamber 

Cabs that can be adapted as needed 

Rear axles 

Front axles 

21

Research and development 

The Scania Technical Centre makes improvements 

and refinements in today’s product 

range, while laying the groundwork for the 

next product generation. To the 1,300 

researchers and engineers working at the 

company’s product development units, one 

of the major challenges is to successfully 

combine the future needs of customers with 

technological developments. 

Quality 

The complexity of the products developed by Scania’s 

researchers and engineers increases every year. 

Advanced new measuring techniques contribute to continuous 

improvements in quality. Nowadays many tests 

are performed in computer simulation programmes, in 

less time and with greater precision than previously. 

The vehicles of tomorrow 

Products being developed today will be in the market 

four or five years from now. Trying to foresee what the 

transport industry will look like over such a long period 

is a difficult but necessary task for Scania. Not only 

must today’s problems be solved, but also tomorrow’s 

– problems that are largely still unknown. 

During 2001, research and development 

expenses rose to SEK 1,955 m. (1,621). 

In the photo, work is underway on a 

turbocompound unit. 

22

Safety 

Safety-mindedness has a long tradition at Scania and 

for many years it has been integrated into all of the 

company’s development work. Today Scania is a 

pacesetter in accident-prevention vehicle technology 

and is working towards international harmonisation of 

road safety improvements. 

In November 2001, Scania organised its second 

European road safety conference, attended by officials 

from the European Commission as well as other public 

agencies and organisations. The purpose of the conference 

was to examine road safety in a holistic way, 

embracing all three main actors: drivers, vehicles and 

road networks. The conference focused on how new 

technology can be applied in order to improve safety 

on European roads. 

The intelligent truck 

Electronic engineering is playing an increasingly prominent 

role in the development of vehicles that are safer 

on the road. Above all, electronic equipment benefits 

active safety, in other words, it helps prevent accidents 

from happening. With the aid of electronics, vehicle 

functions can be monitored in such a way as to give 

the driver more time to concentrate on traffic. 

In the near future, advances in information technology 

(IT) will affect other areas of road safety as 

well, for example vehicle safety standards, logistics, 

navigation and communication. 

Perceived quality 

Customer choices are also determined for reasons 

other than purely quantifiable vehicle characteristics 

During 2001, Scania introduced red seatbelts, which are clearly 

visible from outside when in use. 

and performance. Product design and identity are 

becoming increasingly important. Today’s product 

developers must also pay close attention to the ‘‘soft” 

values inherent in the Scania brand. 


The concepts in the Scania Production System have 

also been adapted to the work of the Technical Centre, 

with one objective being to deliver test results in a 

more systematic, efficient way. Streamlining the work 

process will allow more time to be used for creativity. 

Environmental priorities in 

development work 

Life-cycle thinking is the foundation of Scania’s research 

and development work. The Scania Technical Centre 

pursues the long-term task of developing future 

generations of vehicles and engines. By weighing in 

the environmental aspects at an early stage of development 

work, the environmental impact of the product 

can be reduced throughout its life cycle. Better fuel 

consumption and reduced emissions are always in the 

spotlight. Choosing the right materials and decreasing 

vehicle weight without sacrificing quality, cargo capacity 

and performance are other high-priority areas. 

New IT systems are helping to improve road safety. 

23

24 

Scania’s largest truck production plant 

is located in Zwolle, the Netherlands. 

Since its inauguration in 1964, more 

than a quarter million heavy trucks 

have been manufactured here.

Production 

Scania is continuing to improve its production 

processes, based on the principles of the 

Scania Production System. 

Extensive restructuring is underway in cab 

production and in bus and coach operations, 

in order to strengthen their long-term future. 

In Latin America, Scania began a number 

of vigorous action programmes to lower costs 

and adapt its operations to the weak economic 

growth in the region. 

Scania has production facilities in Europe and Latin 

America, plus assembly plants at a number of locations 

in Africa and Asia. The European production 

units supply the markets in Europe as well as in Asia, 

Africa and Australia. The production network in Latin 

America primarily supplies the Latin American market. 

During 2001, Scania completed the task of concentrating 

its European engine production in Södertälje 

as well as restructuring chassis assembly in Södertälje. 

The gradual transfer of cab manufacture from Meppel, 

the Netherlands to Oskarshamn, Sweden is continuing 

and will be completed during 2002. 

Continued restructuring of bus operations 

In order to improve and strengthen Scania’s bus business, 

increase its competitiveness and achieve sustainable 

profitability comparable to that of truck operations, 

during 2001 Scania continued its restructuring 

of European bus and coach operations. 

To take advantage of synergies with trucks, Scania 

is gathering its product development, production, 

purchasing, marketing and sales resources into 

common units with responsibility for both trucks and 

bus chassis. 

Bus bodybuilding operations, with shorter production 

series and a large element of craftsmanship, will form a 

separate unit with its own resources and development 

opportunities. The restructuring of Scania’s bus operations 

will be completed during 2002. 

Production systems 

The Scania Production System (SPS) continuously 

improves processes as well as products, thereby 

increasing efficiency and profitability. The core of SPS 

is management by means, instead of management by 

results. Based on a number of philosophies and principles, 

Scania’s employees have developed working 

Scania’s European cab production is being concentrated at Oskarshamn. 

methods that have paid off in the form of higher quality 

and better competitiveness. 

Flexibility 

Since order bookings began to decline late in 2000, 

Scania has reduced the number of production 

employees in Europe by about 1,200. Most of these 

employees were on short-term contracts. 

The flexibility of the Scania Production System 

makes it possible to respond more smoothly to 

changes in volume. Flexible working hours and component 

exchanges between Europe and Latin America 

are important in order to adapt production to order 

bookings. When these opportunities are exhausted, 

the number of employees must be increased or 

reduced. 

Concentrated component production 

The changes underway in Scania’s production structure 

are being adapted to the principles of SPS. During 

the year, Scania began a major restructuring of its 

European powertrain production, that is, engines, 

gearboxes and axles. This task, which will be completed 

late in 2004, will result in a concentration of 

component production. The new structure will make 

it easier to work according to the main principles of 

SPS, resulting in both quality improvements and cost 

savings. 

Decentralised final assembly 

Another principle of Scania’s production structure is 

decentralised final assembly. By locating final assembly 

as close to the customer as possible, the company 

25

achieves shorter lead times, a better feel for customer 

needs and lower logistics expenses. 

Production in Europe 

During the year, Scania produced a total of 40,023 

(46,353) vehicles in Europe, of which 37,399 (44,235) 

were trucks and 2,624 (2,118) buses. It also produced 

2,692 (2,527) industrial and marine engines. 

Productivity, measured as the number of vehicles 

manufactured divided by hours worked, declined by 

13.9 percent. Declines in productivity are common 

during volume downturns, before the staffing level can 

be adjusted. 

The workforce at Scania’s European production 

units declined to a total of 9,160, of whom 72 percent 

worked in Sweden, 20 percent in the Netherlands and 

5 percent in France. The proportion of employees on 

short-term contracts declined during the year, due to 

lower production. 

The pay level rose by 5.3 percent in Sweden, compared 

to 4.2 percent in the Netherlands and 3.5 percent 

in France, calculated in local currency. 

Depreciation fell compared to 2000, reaching SEK 

1,130 m. (1,088). Capital expenditures in production 

operations totalled SEK 1,001 m. (837). 

Production in Latin America 

As a consequence of the weak trend in Latin American 

markets, Scania took vigorous steps to deal with profitability 

problems in its Latin American operations and 

to achieve a competitive cost level. 

In Brazil, the company initiated a reduction in the 

workforce by means of cyclically adapted working 

hours and a severance pay offer. In Argentina, Scania 

took additional steps which, together with the devaluation 

of the peso, will result in sizeable cost reductions 

at Latin American production units. 

In order to lower costs, efforts to increase the local 

content of Scania’s products also continued. 

Procurement 

During the year, Scania continued its work to integrate 

advanced key suppliers more closely into its operations. 

These suppliers are now joining the development 

and production process at an earlier stage. They 

will participate in operations in the same way as 

Scania’s own units. 

Pre-assembly at the cab production unit in Oskarshamn. 

Quality and delivery assurance 

Scania’s customer order-controlled production system 

places strict demands on all links in the value chain, 

including both external and internal suppliers, to 

deliver the right products with the right quality at the 

right time. 

Quality and delivery assurance are very important 

factors in choosing sub-contractors. Scania’s suppliers 

must be certified according to the QS 9000 quality 

programme and must have an ISO 14001 certified 

environmental management system. 

Supplier structure 

Suppliers of key components must be located close to 

the company’s production facilities. Other suppliers are 

26

chosen more freely in order to obtain components at 

lower cost. 

During the year, in several areas Scania switched 

from suppliers that had not fulfilled quality, delivery 

assurance or environmental standards. At the end of 

2001, Scania had 795 production suppliers, of which 

550 in Europe and 245 in Latin America. 

E-procurement 

Scania introduced a number of systems for e-procurement 

(purchasing via the Internet), mainly for obtaining 

indirect materials. During 2002 the company is 

installing an electronic invoice management system. 

Concentrated transport systems 

In collaboration with a small number of logistics suppliers, 

Scania is creating an integrated, optimised 

transport system for its European operations. This will 

improve delivery precision while reducing total costs 

and decreasing environmental impact. 

Scania trucks produced in Zwolle go 

to markets in Europe, Asia, Africa 

and Australia 

27

The environment 

Scania is working to reduce the impact of its 

products on the environment throughout their 

life cycle. For all employees, weighing in the 

environmental aspects is a self-evident part of 

their everyday work. The objectives are 

cleaner production, cleaner products and 

greater resource efficiency. 

Integrated environmental work 

Environmental work is integrated into Scania’s operations 

and has the same importance as quality, training 

and economic issues. All managers have environmental 

responsibility in their operating area. 

The environmental organisation is structured as a 

network. Common items of business are prepared by 

the Scania Environmental Committee, where environmental 

coordinators from various operations meet 

under the leadership of the Quality and Environment 

department. The environmental coordinators have 

advisory and supportive functions in the organisation. 

Environmental work is an increasingly integral element of 

Scania’s operations. For this reason, environmental reporting 

is now being done in the Annual Report, instead of 

in a separate Environmental Report. All environmental 

decisions of a strategic nature are made in the operational 

decision-making structure. Read more about Scania’s 

environmental work at: www.scania.com 

Scania’s truck cabs are available in 1,600 colours. Even today, painting 

operations at the Oskarshamn plant have little environmental impact. 

The paintshop is further improving its performance with the help of the 

ongoing investment programme. 

28

Research and 

development 

The highest decision-making level is 

the Scania Executive Board, which 

makes strategic environmental 

decisions as well as establishing and 

following up overall environmental 

matters. 

Recycling 

A certified environmental 

management system 

Since 1999, Scania’s industrial system 

– which includes development 

resources, production units and corporate 

marketing staff units – has been certi- 

Service and 

maintenance 

fied according to ISO 14001 international standards. 

The task of establishing environmental management 

systems in the sales and service organisation 

is continuing. 

Environmental reporting 

Beyond its continuous economic reporting, Scania 

conducts annual follow-ups of such items as raw 

material, chemical, energy and water use. Follow-up 

and revision of Group-wide environmental targets 

are carried out every year. Starting this year, environmental 

targets, actions and results are presented in 

the Annual Report and on Scania’s web site, 

www.scania.com 

Life-cycle perspective 

Day-to-day environmental work is based on the life 

cycle of products. Scania’s aim is to decrease the 

environmental impact of its products and services 

during every phase of their life cycle. Each portion of 

Product 

service life 

Scania’s operations receives systematic attention. The 

objectives are cleaner products, cleaner production 

and greater resource efficiency. 

Most of the environmental impact of Scania’s products 

and services occurs while they are in use. Development 

work is the company’s opportunity to directly 

influence the prerequisites for better environmental 

adaptation of its products. By means of product development, 

Scania is working to minimise fuel consumption 

and thereby reduce carbon dioxide emissions, 

while ensuring that its engines comply with legally stipulated 

maximum levels of nitrogen oxide, particulate, 

hydrocarbon and carbon monoxide emissions. Vehicles 

also have to be easy to dismantle after their full 

service life. Scania finalised dismantling manuals for its 

buses and coaches during 2001. 

Material 

selection and 

procurement 

Scania’s modular system makes it possible 

to specify a vehicle based on a customer’s 

transport needs and environmental performance 

requirements. The company 

provides additional sales support by 

supplying environmental declarations 

for its products. 

The public arena 

The western European market, which 

is important to Scania, is greatly affected 

by European Union legislation. During 

Manufacturing 

2001, the EU’s Euro 3 emission rules for all 

new vehicles entered into force. Scania’s 

engine range was adapted to the Euro 3 rules during 

January-November 1999 and was supplemented with 

the new V8 engines in May 2000. 

During 2001, the European Commission submitted 

a white paper with recommendations on a European 

transport policy to the EU Council of Ministers and the 

European Parliament. The white paper forecasts a 50 

percent increase in cargo transport volume on the 

roads by 2010. The Commission’s ambition is to keep 

the increase in road haulage volume lower for environmental 

reasons. The white paper sets a growth target 

of 38 percent in the road haulage sector. A decision to 

adopt the white paper as the basis for future directives 

is expected during 2002. 

Despite the Commission’s desire to limit the growth 

of road haulage volume somewhat, for Scania the 

recommendation in the white paper means that the 

market for trucks and buses will continue to grow. 

International climate negotiations resulted in an 

29

Scania’s Environmental Policy 

As a global manufacturer and distributor of heavy commercial 

vehicles, engines and related services, Scania is 

committed to develop products that pollute less and 

consume less energy, raw materials and chemicals 

during their life cycle. 

In order to achieve this: 

• we strive to maintain a lead in commercially 

applicable technologies 

• we work well within legal demands and promote 

internationally harmonised, effective environmental 

requirements 

• we prevent and continuously reduce the environmental 

impact through development of products, 

services and production processes 

• we take the environmental aspects and objectives 

into account in our daily work 

• we have an open and regular communication with 

our interest groups regarding our environmental 

work 

By this we contribute to economical and ecological 

advantages for our customers and for society. Proactive 

environmental work is therefore of vital importance to 

Scania. 

agreement on the Kyoto Protocol in Marrakech. A 

sufficient number of countries are prepared to ratify the 

protocol to allow it to enter into force during 2002. The 

EU countries have allocated for carbon dioxide emissions 

allowances among themselves and will work 

together to cut these emissions by 8 percent during 

the period 2008 to 2012, with 1990 as the base year. 

In 1998 the transport sector accounted for 28 percent 

of EU carbon dioxide emissions, according to the 

Commission. The white paper on transport policy discusses 

measures to decrease emissions. Among the 

recommendations are such goals as increasing the 

use of biofuels, streamlining transport efficiency and 

improving the competitiveness of the railway sector. 

Beginning in Germany, exhaust class-related road fees 

for heavy traffic are expected to be introduced from 

2003. In conjunction with this, increased customer 

demands for better environmental performance can be 

expected. Scania thus foresees an increasing total 

market, with progressively stricter requirements for 

cleaner exhausts and improved fuel efficiency. 

Environment and economics 

During 2001, Scania’s costs for raw materials, chemicals, 

energy and water totalled about SEK 1,510 m. 

Transport expenses amounted to SEK 1,250 m. 

Emissions of carbon dioxide from production 

plants totalled 69.2 Ktonnes. In relation to sales of 

Scania products, this represented 1.5 g/SEK. Use 

of energy and water per vehicle produced rose 

compared to the year before. This was due to the 

smaller number of vehicles produced and a cold 

winter, which increased the heating requirement at 

plants in Sweden. 

Environmental investments 

Scania defines an environmental investment as a capital 

expenditure carried out only for environmental reasons 

and aimed at reducing external environmental impact. 

An investment is often motivated by several different 

reasons at the same time, of which environmental 

impact may be one. Scania prefers to make environmentally 

related investments simultaneously with other 

investments, which are also justified for other reasons, 

instead of making corrections afterwards. 

With the investment strategy that Scania has 

chosen, the effect in terms of environmental improvement 

per krona of spending is usually better. This 

means that Scania does not regard large environmental 

investments, according to the above definition, 

as goals in themselves, but rather as a portion of 

overall investments that should be minimised. 

During 2001, Scania’s investments in property, 

plant and equipment totalled SEK 1,980 m., of which 

SEK 15 m. were classified as environmental investments. 

The cab plant in Oskarshamn began construction 

of a new topcoat application facility. The investment 

totals SEK 453 m., of which SEK 104 m. during 

2001. The unit will go into operation during 2002. 

The new finishing paintshop will result in considerable 

environmental gains. The transition to water-borne 

paints reduces solvent emissions and improves 

recycling of paint residues. 

Research and development expenses 

The development of new or improved products leads 

to better environmental performance. Future legal 

requirements for products are a major factor in development 

work and, as a rule, are motivated by environmental 

or road safety reasons. There are usually a 

number of different motives behind development work, 

which are difficult to distinguish from each other. 

30

Environmentally related expenses 

as a proportion of Scania’s sales 

Wastes sent to landfills 

Energy use 

Emissions of organic solvents 

kg per 

vehicle 

Target 

for 2004 

Total, 

tonnes 

MWh per 

vehicle 

Target 

for 2004 

Total, 

GWh 

kg per 

vehicle 

Target for 

2004 

Total, 

tonnes 

Transport services, SEK 1,250 m. 

Raw materials, SEK 1,230 m. 

Energy, SEK 160 m. 

Chemicals, SEK 110 m. 

Water, SEK 8 m. 

200 

150 

9,000 

8,000 

7,000 

6,000 

18 

16 

14 

12 

700 

600 

500 

14 

12 

10 

500 

400 

5,000 

10 

400 

8 

300 

100 

50 

4,000 

3,000 

2,000 

1,000 

8 

6 

4 

2 

300 

200 

100 

6 

4 

2 

200 

100 

0 

97 98 99 00 01 04 

0 

0 0 

97 98 99 00 01 04 

0 

97 98 99 00 01 04 

0 

The size of environmentally related expenses totals 

about 6 percent of sales of Scania products. 

Wastes sent to landfills during 2001 totalled 

about 3,400 tonnes, or 69 kg per vehicle, 

excluding foundry sand. 

During 2001, energy consumption totalled 

about 570 GWh, equivalent to some 12 MWh 

per vehicle. 

In 2001, organic solvent emissions from 

painting/rust-proofing totalled some 

385 tonnes, or 8.0 kg per vehicle. 

Carbon dioxide emissions related 

to energy use, 2001 

Energy use, 

GWh 

Carbon dioxide 

emissions, Ktonnes 


Electricity 340 360 20 23 

District heat 60 130 4 9 

Fossil fuels 170 200 45 51 

Total 570* 690* 69 83 

Per vehicle 12 MWh 1.4 tonnes 

* Subtotals and totals are rounded to multiples of ten. 

In 2001, carbon dioxide emissions from Scania’s 

production amounted to 1.4 tonnes per vehicle, 

or a total of 69,200 tonnes. 

Water use 

24 

22 

20 

18 

16 

14 

12 

10 

Cubic metres 

per vehicle 

8 

6 

4 

2 

0 

Target 

for 2004 

97 98 99 00 01 04 

Total, cubic 

metres 

1,000,000 

900,000 

800,000 

700,000 

600,000 

500,000 

400,000 

300,000 

200,000 

100,000 

0 

During 2001, water consumption was about 

570,000 cubic metres, equivalent to 12 cubic 

metres per vehicle. 

Chemical use, 2001 

Oils/lubricants 

Process oils/ 

emulsions 

Degreasing agents 

Paint, 

water-based 

Paint, 

solvent-based 

Powder paint 

Rust-proofing agents 

Solvents 

Foundry chemicals 

Other chemicals 

Cubic metres 0 100 200 300 400 500 600 700 800 

The consumption of chemicals in 2001 was 

about 4,200 cubic metres, equivalent to 

88 litres per vehicle. 

31

During 2001, research and development expenses 

totalled SEK 1,955 m. Scania has chosen not to try 

to separate and report the environmentally specific 

portion by itself. 

Operating permits 

Most of Scania’s facilities around the world are 

required to have operating permits that comply with 

national legislation. All five production units in Sweden 

and the subsidiary Ferruform carry out operations that 

require permits under the Environmental Code. Their 

main impact on the external environment occurs by 

means of emissions into the air, discharges into the 

water, waste products and noise. 

During 2001, Scania’s facilities in Södertälje were 

subjected to new requirements related to nitrogen 

oxide emissions from engine testing labs and 

improved final treatment of wastewater. The new standards 

do not impose any new restrictions on production 

capacity. 

During the year, the Sibbhult plant also received 

new permits for increased production and painting 

operations. The wholly-owned subsidiary Ferruform in 

Luleå received a new permit for increased production 

and new surface treatment facilities. 

Environmental risk management 

During 2001, Scania devised a method for ground and 

groundwater inventories, including risk analysis. Inventorying 

began and will be completed at all production 

units by the end of 2002. 

At the Zwolle plant, Scania gained the approval of 

public authorities to change its plan for the decontamination 

of oil-polluted soil to a drainage programme and 

monitoring measurements. In Meppel, a permit was 

granted for the decontamination of boron-polluted soil. 

This decontamination will cost an estimated SEK 2.5 m. 

Scania’s risk management efforts focus on preventive 

measures, in order to protect employees and the 

company’s collective assets. Every unit at Scania has an 

emergency plan for managing environmental disruptions. 

Scania has established a Group-wide procedure 

for integrating issues related to the risk of environmental 

damage with other risk management work. 

During 2001, no incidents were reported that had a 

significant impact on the environment. 

Does environmental work help improve the 

environment? 

Scania began to launch its Euro 3 engine range early in 

1999, nearly three years before it became compulsory in 

new vehicles on 1 October 2001. Until the end of June 

2001, Euro 3 was not a necessity, but Scania sold about 

17,000 trucks and buses featuring the new technology in 

the EU countries. If Scania had instead delivered the corresponding 

number of Euro 2 vehicles, with an average 

annual mileage of 150,000 km, nitrogen oxide emissions 

in the EU would have been 4,500 tonnes higher during 

this period. Since fuel economy is also unaffected, this 

environmental gain did not occur at the expense of 

higher carbon dioxide emissions or higher fuel expenses 

for the customer. 

Revised target 

Scania realised early in 2001 that the target of requiring 

all suppliers of products and components to have ISO 

14001 certified environmental management systems in 

place by year-end would not be achieved. This target 

was revised to specify 50 percent of such suppliers. 

At year-end, suppliers accounting for 60 percent of 

purchased volume were ISO 14001 certified. 

In some cases, Scania prioritised quality and 

delivery assurance, choosing to retain suppliers even 

though they did not fully meet the certification requirement. 

Engines for ecological electricity 

production 

At a wind farm in the San Gorgonio area outside Palm 

Springs, California, six Scania 9-litre engines were 

delivered during 2001 to serve units for wind-power 

stations. Scania’s ethanol engines were configured for 

generators with an output of 150 kW and will produce 

electricity on days when there is too little wind. 

Scania’s ethanol engine is the only heavy compression 

engine certified for zero particulate matter emission by 

the California Air Resources Board (CARB), the agency 

that regulates air quality in the state. 

Compared to an ordinary diesel engine, these 

engines emit 60 percent less nitrogen oxide, 90 percent 

less carbon dioxide and 90 percent less hydrocarbons. 

Particulate emissions equal zero, which was 

very important to CARB. 

32

Environment and economics 

Summary of economic performance, Scania 

production organisation 

Year 2001 2000 1999 

Number of vehicles 

manufactured 48,151 55,581 49,482 

Sales of Scania 

products, SEK m. 47,213 44,740 38,559 

Raw material consumption 

Per vehicle, kg 3,200 3,200 3,400 

Total, tonnes 156,000 180,000 170,000 

Total cost, SEK m. 1,230 1,470 1,330 

Chemical consumption 

Per vehicle, cubic metres 0.088 0.086 0.092 

Total, cubic metres 4,200 4,800 4,500 

Total cost, SEK m. 110 120 120 

Energy use 

Per vehicle, MWh 12 11 12 

Total, GWh 570 580 590 


Carbon dioxide emissions 

Per vehicle, cubic metres 1,400 1,300 1,500 

Total, tonnes 69,000 71,000 74,000 

Water use 

Per vehicle, cubic metres 12 11 13 

Total, 1,000 cubic metres 570 600 620 


Solvent emissions from 

painting/rust-proofing 

Per vehicle, kg 8.0 8.6 9.2 

Totalt, ton 390 480 460 

Management of residual 

materials* 

Recycling: 

Per vehicle, kg 960 940 1,100 

Total, tonnes 46,000 52,000 53,000 

Revenues, SEK m. 16 18 18 

Some of Scania’s environmental targets for 2001 

• A procedure for how to perform inventories of ground 

and groundwater was completed. Scania has begun to 

apply this procedure. It ensures that systematic inventories 

of ground conditions and of the historic environmental 

load are performed in preparation for future ground and 

groundwater investigations. 

• Dismantling instructions for buses were completed. 

• The number of chemical suppliers was reduced from 

96 to 81. 

• Efforts to achieve long-term environmental targets in the 

production organisation continued as planned. For example, 

the quantity of wastes sent to landfills per manufactured 

vehicle declined from 78 to 69 kg during the year. 

Some targets for 2002-2004 

• Based on the inventories that have been performed, 

the necessary ground and groundwater investigations 

will be carried out during 2002. 

• The use of energy shall have decreased to 10 MWh 

per manufactured vehicle by 2004. 

• The use of water shall have decreased to 10 cubic 

metres per manufactured vehicle by 2004. 

• The amount of waste deposited in landfills shall have 

decreased to 50 kg per manufactured vehicle by 2004. 

Sent to landfills/other 

off-site disposal: 

Per vehicle, kg 180 200 200 

Total, tonnes 9,000 11,000 10,000 


* Excluding foundry sand, about 26,400 tonnes. 

When there is not enough wind, ethanol-powered Scania engines generate electricity at these wind-power stations in the San Bernardino 

mountains of southern California. 

33

Trucks and buses 

During 2001, global production of 

heavy trucks declined by 19 percent to 

490,000 (611,000) vehicles. Scania 

was the third largest heavy truck make 

in the world with a share of 8.8 (8.4) 

percent. 

World production of heavy trucks 

(excluding the former East Bloc countries) 

Units 

700,000 

600,000 

500,000 

400,000 

World production of buses in Scania’s segment 

– city and intercity buses and tourist coaches 

for more than 30 passengers – totalled 70,000 

(69,000) buses. Scania was the world’s third 

largest bus make in the heavy segment with 

6.6 percent of global production. 

Scania’s sales of industrial and marine 

engines totalled 4,672 (3,300) units. 

World production of heavy trucks 

The ten largest makes 

300,000 

200,000 

100,000 

World production of heavy buses 

(excluding the former East Bloc countries) 

Units 

0 

80,000 

92 93 94 95 96 97 98 99 00 01 

Make 2001 2000 1999 

Mercedes-Benz 65,049 74,057 78,546 

Volvo 63,816 79,091 81,069 

Scania 43,487 51,409 45,795 

MAN 42,110 43,394 36,576 

Freightliner 39,254 70,590 88,517 

RVI 32,926 34,490 31,386 

Iveco 31,455 31,726 32,188 

DAF 30,369 28,401 23,313 

International 23,899 35,862 50,151 

Mack 22,595 34,361 38,528 

70,000 

60,000 

50,000 

40,000 

30,000 

20,000 

10,000 

0 

92 93 94 95 96 97 98 99 00 01 

35

Europe 

During 2001, the market for heavy trucks in 

western Europe fell somewhat from the record 

level of the year before. By prioritising profitability 

ahead of volume, Scania remained the 

most profitable heavy vehicle manufacturer. 

Trucks in western Europe 

After a small decline, the total market in western 

Europe remained at a historically high level. During the 

year, 234,860 heavy trucks were registered, compared 

to 243,669 during 2000 and 235,929 during 1999. 

Scania’s share of the western European market 

decreased to 13.5 (15.6) percent. In a situation of 

extremely depressed new truck prices, Scania focused 

on profitable deals, especially in Germany, Great 

Britain and the Netherlands. The company abstained 

from a number of large transactions where the price 

levels were too low. 

Among Scania’s competitors, Mercedes-Benz saw 

its western European market share decline to 19.3 

(19.6) percent, MAN boosted its market share to 15.0 

(14.0) percent and Volvo fell to 14.3 (14.9) percent. 

The German market remained strong but cooled 

during the second half. A total of 50,926 (57,470) new 

trucks were registered, and Scania retained its position 

as the largest imported make, with an 8.3 (10.1) percent 

market share. 

In Great Britain, new heavy truck registrations 

totalled 33,079 (32,498). Scania’s market share 

dropped to 15.5 (20.7) percent, among other things 

due to prioritisation of profitability ahead of volume. 

Scania’s market share also declined in a continued 

strong French market. During the year, 46,158 

(47,124) heavy trucks were registered. 

In Spain, registrations increased to a new record of 

26,218 (25,291) heavy trucks. Scania’s market share 

was 12.1 (14.4) percent. 

The Italian market showed a continued high level, 

with a total of 24,481 (25,526) heavy trucks. For the 

third consecutive year Scania enlarged its market 

share, reaching 13.5 (13.1) percent. 

In Austria, Scania further strengthened its position. 

With a 15.1 percent share, it was the second largest 

heavy truck make in the market. 

A Scania R164 480 Topline en route from Trento, northern Italy. 

In the Netherlands, the total number of registrations 

decreased slightly, to 13,660 (14,072) heavy 

trucks. Scania’s share of the Dutch market declined to 

17.6 (22.4) percent. 

In the Nordic markets, demand fell somewhat. A 

total of 12,731 (13,725) heavy trucks were registered. 

Scania strengthened its position in Denmark and 

Norway but lost ground in Sweden and Finland. Its 

market share in the Nordic countries totalled 35.3 

(36.7) percent. 

Trucks in central and eastern Europe 

In central and eastern Europe, both the total market 

and Scania’s market share continued to expand. 

Meanwhile, the market for used trucks of western 

European origin grew. 

The number of registered new heavy trucks of 

western European origin rose by about 13 percent to 

17,000 (15,000). Scania delivered 2,579 (2,287) trucks 

to the region. 

In the Czech Republic, Scania’s market share rose 

to 16.5 (12.9) percent. 

The Russian market for western European heavy 

trucks increased. A sizeable proportion of Scania’s 

sales in Russia consisted of construction trucks. 

During the year, Scania continued its effort to 

strengthen its sales and service network, adding new 

facilities in most markets in the region. 

Scania-owned sales and service network 

The service market accounts for an increasingly large 

share of profitability in Scania’s business. Through 

continuous growth and good margins, the service 

36

Registrations of heavy trucks in 

western Europe 

Units 

250,000 

Deliveries of Scania trucks in 

western Europe 

Units 

40,000 

200,000 

30,000 

150,000 

20,000 

100,000 

50,000 

10,000 

0 

92 93 94 95 96 97 98 99 00 01 

0 

92 93 94 95 96 97 98 99 00 01 

Market shares, heavy trucks in western Europe 

% 

30 

25 

Mercedes-Benz 

20 

15 

Volvo 

MAN 

RVI 

Scania 

10 

5 

DAF 

Iveco 

90 91 92 93 94 95 96 97 98 99 00 01 

Mercedes Scania 

Volvo DAF 

MAN 

RVI 

Iveco 

In Great Britain, beer is of course delivered to the pub in a 

Scania distribution truck.

market helps to make the company’s operations less 

dependent on the cyclical upturns and downturns in the 

heavy vehicle industry. 

For this reason, Scania continued to strengthen and 

expand its own sales and service network in Europe. 

The proportion of new trucks delivered by Scaniaowned 

dealerships in western Europe rose to more 

than 40 percent of volume. At year-end, Scania owned 

about 25 percent of local sales and service companies. 

A Scania OmniLine intercity bus outside Katrineholm, Sweden. 

Buses in Europe 

Despite the general economic downturn during the 

year, the total market for heavy buses in western 

Europe remained at a high level. A total of 23,500 

(23,430) buses were registered. 

Scania’s deliveries of bus chassis rose by 7 percent 

to 1,828 (1,702) in Europe. For more than 10 

percent of these, Scania provided its own bodywork. 

An increasing proportion of fully-built buses were 

delivered in markets outside the Nordic market, which 

previously was completely dominant – especially Italy. 

Scania’s market share in western Europe rose to 

7.1 (6.3) percent. 

During 2001, Scania improved its Nordic market 

positions, gaining a significant increase in market share. 

In Finland, Scania became the market leader. 

Scania elicited a major response for its ‘‘total concept”, 

which means that in close cooperation with a 

number of bus and coach operators, Scania assumes 

full responsibility for service and maintenance at a fixed 

per-kilometre price. 

As in 2000, Scania’s biggest bus market in Europe 

38

was Spain. The number of Scania buses registered in 

that country rose to 423 (364), with a market share of 

16.6 (16.5) percent. 

In Great Britain, registrations of new Scania buses 

rose to 178 during the year. Market share also rose to 

6.3 (5.9) percent. For the British city bus market, Scania 

introduced a right-hand-drive version of the OmniCity 

bus in November. 

Scania’s concerted marketing effort in Europe’s third 

largest bus market, Italy, which began in 2000, resulted 

in a sales increase of more than 50 percent during 

2001. Here, too, a successful breakthrough in the city 

bus market by Scania’s OmniCity concept contributed 

to the upturn. 

In the restructuring of Scania’s bus operations that 

will be completed in 2002, marketing and sales departments 

will be coordinated with Scania’s global marketing 

organisation. The synergies this achieves will enable 

Scania to increase its focus on customers. 

Industrial and marine engines in Europe 

In Europe, Scania had continued good order bookings 

for industrial and marine engines, which thus did not 

feel the effects of the world economic downturn that 

affected other products. Deliveries fell somewhat compared 

to the previous year, to 1,906 (2,111) engines. 

In some countries, among them Germany and Italy, 

Scania’s sales rose sharply. 

Scania continued to work via specialised engine 

distributors. 

The pistes at this ski resort in Andalo, Italy, are well-groomed thanks to Prinoth piste machines, equipped with 9-litre Scania industrial engines. 

39

Latin America 

The economic recovery in Latin America 

was interrupted during 2001. Scania was 

forced to take vigorous new steps aimed 

at achieving profitability again in its 

Latin American operations. 

Scania’s previous action programme to achieve profitability 

in its Latin American operations was insufficient 

when the economic situation in Argentina deteriorated 

during the second half of the year. The deep crisis in 

Argentina also affected developments in Brazil, where 

the currency weakened sharply against the US dollar. 

To mitigate the effects of the crisis and restore 

profitability to an acceptable level, Scania began a 

number of cost-cutting and revenue-boosting programmes. 

Trucks in Latin America 

Scania’s truck deliveries in Latin America fell by 9 percent 

to 6,181 (6,777) units. The Argentinean market 

showed a large decline. The total market in Argentina 

fell to 1,307 (3,341) heavy trucks, and Scania’s market 

share was 32.1 (31.5) percent. 

Despite economic uncertainty, the total market in 

Brazil continued to increase, reaching 18,046 (17,341) 

trucks. Scania’s market share decreased to 29.2 (29.7) 

percent, with 5,266 (5,153) registrations. 

Brazil’s currency, the real, weakened against the 

American dollar. At its lowest point, the real was down 

43 percent. During the last quarter of 2001 it recovered, 

ending the year at about minus 20 percent. In order 

to achieve a reasonable world market price, Scania 

implemented several small price increases during the 

year, and a more significant price increase at year-end. 

Market shares, heavy 

trucks in Brazil 

Ford 

Iveco 

International 

Volkswagen 


Volvo 

Mercedes-Benz 

A Scania R124 360 stopping in Rancagua, Chile. 

40

Buses in Latin America 

The economic situation in the region adversely affected 

deliveries of bus chassis, especially in Argentina. 

Total deliveries fell by 14 percent to 1,595 (1,843). 

In Brazil, the total market amounted to 10,833 

(10,626) buses. Scania’s bus chassis registrations 

declined to 853 (1,100) and its market share fell to 

7.9 (10.4) percent. 

Scania retained its traditionally strong position in 

the medium- and long-distance segment for intercity 

buses. 

During the year, Scania achieved a breakthrough in 

the important city bus segment with its low-floor city 

bus concept. 

In Mexico, the total market grew to 12,009 (10,631) 

buses. Scania’s registrations rose to 304 (175) and its 

market share was 2.5 (1.6) percent. During the two 

Deliveries of Scania trucks 

in Latin America 

Units 

10,000 

Deliveries of Scania buses 

in Latin America 

Units 

3,000 

A Scania K124 360 double-decker coach carrying tourists to Salta, northern Argentina. 

8,000 

6,000 

4,000 

2,000 

2,500 

2,000 

1,500 

1,000 

500 

years that have passed since Scania resumed bus sales 

in Mexico, that country has grown into Scania’s third 

largest bus market in the world. 

Industrial and marine engines in 

Latin America 

mand for generator sets. With its own engine factory and 

sales organisation in Brazil, Scania was able to respond to 

the market’s expectations and demands for fast delivery. 

This represented a tripling of Scania’s sales of industrial 

and marine engines in Latin America to 2,149 (748) 

units. 

0 

92 93 94 95 96 97 98 99 00 01 

0 

92 93 94 95 96 97 98 99 00 01 

During the second half of 2001, Brazil underwent a 

severe energy crisis, which sharply increased the de- 

41

Asia, Australia and Africa 

Scania’s long-term investment in the growth 

markets of Asia, Australia and Africa continued 

during 2001. In South Korea, Scania tripled its 

sales. Deliveries to a number of markets in the 

Middle East and sub-Saharan Africa rose. 

Trucks 

Scania’s truck deliveries in Asia, Africa and Australia 

decreased by 6 percent to 4,483 (4,778) units. 

In the current restructuring of South Korea’s truck 

industry, due to its long-time presence in the Korean 

market, Scania has established itself as the foremost 

European challenger. During the year, Scania tripled its 

sales and captured 15.3 percent of a total market of 

7,939 heavy trucks. Above all, Korean customers have 

appreciated Scania’s large-scale investments in its 

own sales and service network. Scania has the country’s 

leading service network today. 

Scania’s long-time distributor of trucks and buses 

in Taiwan, China, Hong Kong and Macao – Forefront 

International – sucessfully gained a listing on the Hong 

Kong Stock Exchange during the year. 

In a number of Middle Eastern markets, Scania 

sales rose during the year, after a period of weak 

demand. 

In North Africa, Scania consolidated its leading position. 

In the Tunisian market today, more than every 

second new heavy truck is a Scania. In South Africa, 

Scania reported its highest sales to date, 342 trucks. 

Scania is the most common European heavy truck make on South Korea’s roads. This R124 420 hp tanker truck is driving through the city of Ulsan. 

42

Buses 

In several markets in East Asia, Scania showed strong 

growth. Sales of buses and coaches in Taiwan, Hong 

Kong and Thailand more than doubled. In Taiwan, 

the authorities carried out a number of measures to 

stimulate the economy, which among other things led 

to increased bus travel and thus also to increased 

demand, especially for tourist coaches. 

In several markets in Africa, there was also a significant 

increase in Scania’s bus order bookings, among 

others in Angola, Kenya and South Africa. The buses 

sold in these markets, with chassis from Scania’s 

factory in Brazil, are assembled in South Africa. 

During the year, Scania achieved a leading position 

in the bus market in Dubai by receiving an order for 

119 city buses. 

At the bus terminal in Dar es Salaam, Tanzania, the Scania buses are 

surrounded by cargo and passengers. 

Scania delivered a total of 1,249 (629) buses and 

coaches in Asia, Australia and Africa, a doubling of 

deliveries compared to 2000 and the highest level 

ever. 

On a fishing trip outside 

Freemantle, Australia, 

using dual marine engines 

from Scania. 

Industrial and marine engines 

Scania’s sales of industrial and marine engines in Asia, 

Australia and Africa remained good. In Saudi Arabia, 

sales rose sharply and Scania’s market share rose to 

about 25 percent. 

43


In order for Scania to be profitable, its customers 

have to make money. By updating, 

customising and continuously expanding its 

range of service-related products, Scania 

helps its customers to achieve increasingly 

cost-effective solutions. The customer relationship 

develops into a mutual partnership. 

Around the world, more than 500,000 Scania heavy 

trucks and buses are on the roads today. These 

vehicles are served by 1,500 authorised Scania workshops, 

including more than 1,000 in Europe. Assuming 

the same growth rate in sales and vehicle fleet as in 

recent decades, by the end of this decade at least 

800,000 Scania vehicles will require service and 

maintenance. 

Sales of service-related products are already an 

important element of Scania’s total business today, 

and their role will continue to grow rapidly. 

Steadily improved, more intensive customer 

relationships combined with individual solutions 

enable both the customer and Scania to increase 

profitability. 

A growing business 

During 2001, Scania’s sales of service and parts rose by 

27 percent to SEK 10,279 m. Excluding the effects of 

acquisitions, the increase totalled about 14 percent. The 

number of vehicles sold with service contracts is steadily 

growing in most European markets. Up to half of the new 

trucks sold in some markets are combined with leasing 

and service contracts. 

An ordinary day at the Scania bus service workshop in Saulx-les-Chartreux, France. 

Agreements to ensure high availability 

For today’s transport operators, the focus is on vehicle 

utilisation. Many customers pay a fixed per-kilometre 

price so that they can concentrate on their core business 

– transport services and logistics – and thereby 

avoid worrying about service, maintenance and availability 

of vehicles. 

Scania’s maintenance and repair contracts lead to a 

closer business relationship between the customer and 

Scania’s service organisation. In case of unplanned 

stoppages, the contract guarantees that the vehicle will 

be back in service again within 24 hours at the latest. 

Scania Assistance 

Today’s transport operators face an extremely competitive 

market. Always arriving at the agreed time is not 

only a matter of revenues and goodwill, but may also 

be a matter of survival. 

Scania Assistance can help minimise customer 

downtime if something unexpected happens – round 

the clock, every day of the year. By making a single 

telephone call, customers can get help in their own 

language via one of 16 call centres in Europe. In case 

of unplanned stoppages, Scania Assistance coordinates 

towing, workshop services, payment, overnight 

lodgings and replacement vehicle rentals if needed. 

Uniform high standard 

Scania workshops must meet strict quality and equipment 

standards. Further training of service staff is a 

high priority in Scania’s global organisation. Instructors 

update their skills regularly at the company’s own 

training centres in Sweden, Great Britain, Brazil, South 

Korea and Dubai. These instructors, in turn, train 

mechanics at local centres. 

No matter where they are, Scania customers must 

receive the same high level and quality of service, in 

terms of knowledge and efficiency. For this reason, 

44

Scania has developed a Code of Practice on how the 

company’s sales and service organisation around the 

world should handle and develop Scania’s business. 

One important element of this is the Dealer Operating 

Standards (DOS) certification programme, which is 

adapted to the special needs of Scania customers. 

DOS is based on a number of pledges to customers 

concerning availability, sales and delivery, 

access to parts and maintenance and repairs. These 

customer pledges are fundamentally about two things: 

• The customer must feel secure and know that he or 

she will receive expert technical assistance within 

the promised time frame. 

• The customer must always feel properly treated by 

Scania, regardless of where he or she may be. 

Used vehicles 

For some years, Scania has maintained a web-based 

marketplace for used vehicles, which is accessible via 

its corporate web site, www.scania.com 

The marketplace features trucks available from 

Scania’s sales organisation in 18 countries and buses 

in 8 countries. 


Through its subsidiary Scania Infotronics, Scania 

develops such products as web-based systems for 

fleet management and driver training. 

Scania Assistance responds round the clock, 

every day of the year. 

45

Customer financing 

Customer financing was Scania’s fastestgrowing 

business area during 2001. Its operations 

contribute to the company’s overall earnings 

and growth, while strengthening the competitiveness 

of Scania’s distributors. To meet 

customer demands for increasingly more 

sophisticated financing solutions, a number of 

new services were developed during the year. 

Continued positive trend 

The income of Scania’s customer finance operations 

rose by 55 percent to SEK 278 m. (179). This was 

equivalent to an operating income of 1.19 (1.06) percent 

of the year’s average portfolio. Overhead, expressed in 

relation to the average portfolio, fell from 0.98 to 0.96 

percent. 

Total financing volume rose by 36 percent to SEK 

25,091 m. (18,522). During the year, 12,109 (9,891) new 

trucks, 458 (221) new buses and 2,498 (1,842) used 

Scania vehicles were financed. The number of contracts 

in the portfolio at year-end totalled 54,028 (38,777). Of 

the total portfolio, 39 percent consisted of operating 

leases and 30 percent of financial leases. The remaining 

31 percent represented loan financing. 

The year-on-year comparison was affected by the 

integration of Dutch finance company operations during 

the year, which added nearly SEK 20 m. in profit and 

more than SEK 3,000 m. in portfolio growth. 

Financial services are an important element of Scania’s 

complete product range. The company endeavours to 

work locally in its customer finance operations. Proximity 

to the customer and local know-how makes the 

processing of applications more efficient and improves 

the quality of credit evaluation. 

Europe 

Scania’s customer finance operations in Europe now 

consist of twelve Scania-owned finance companies. 

They cover Great Britain, France, Spain, Germany, the 

Netherlands, Belgium, Luxembourg, Italy, the Nordic 

region, Poland, the Czech Republic plus other countries 

in central and eastern Europe. 

During the year, Bezoma B.V. – the leasing and 

finance company of the Dutch-based Scania distributor 

Beers – was integrated with Scania’s customer 

finance operations. 

Scania is continuously developing new financial services. 

Total assets in finance 

companies 

SEK m. 

30,000 

25,000 

20,000 

15,000 

10,000 

5,000 

0 

98 99 00 01 


and net margin 

SEK m. 

300 

The former branch operations in Luxembourg were 

developed into a separate finance company. 

The Italian finance company showed strong 

growth, more than doubling its portfolio during the 

year. The newly established finance company in Spain 

also developed very favourably during 2001. 

Operations in central and eastern Europe, which 

take place through the company Scania Credit, doubled 

during the year. Several of Scania Credit’s markets 

expanded sharply, among them Romania, Bulgaria 

and Latvia. 

Other markets 

Financing operations in South Korea expanded very 

strongly. Scania Credit established operations in South 

Africa. 

200 

100 

0 


Net margin as a 

percentage of 

average portfolio 

98 99 00 01 

% 

1.5 

1.0 

0.5 

0 

46

Risk exposure 

As more and more customers request financial solutions, 

this increases the need for risk management. 

Scania responds to this need by means of continuous 

credit evaluations and proactive monitoring of the 

credit portfolio. During 2001, Scania carried out extensive 

preventive work to ensure that it can manage 

customer financing risks even better. 

For customers that are not judged capable of fulfilling 

their contractual obligations, Scania makes specific 

provisions for credit risks in its accounts, based on an 

individual assessment of each customer with regard to 

payment capacity and expected future risk. 

In 2001, actual credit losses totalled SEK 56 m. (49). 

Credit costs were equivalent to 0.59 percent of the 

average portfolio. 

At year-end, the total reserve for possible credit 

losses was SEK 413 m. (226), equivalent to 1.6 (1.2) 

percent of the portfolio. 

Residual value risks 

Scania’s customer finance operations are responsible 

for credit risks in the finance company group. Responsibility 

for residual value guarantees rests with the sales 

companies and are regulated by policy documents. 

Insurance 

During 2001, insurance operations were expanded to 

include a more sophisticated range of transport-related 

insurance products. Since these insurance packages 

are offered in combination with Scania’s own vehicles, 

and since the local finance companies know both 

In Europe, Scania has its own customer finance operations in more than 20 countries. 

customers and drivers well, these insurance products 

can be offered at very competitive rates. 

Latin America 

Scania offers financing in Latin America mainly on the 

basis of collaboration with outside lenders and 

assumes a limited portion of the credit risk. In Brazil 

and Argentina, Scania offers a customer-financed 

savings programme, in which customers are organised 

into consortia. Through regular savings in a consortium, 

the customer is guaranteed the allocation 

of a vehicle within the savings period. During 2001, 

nearly 40 percent of truck sales and 20 percent of bus 

sales in Brazil occurred via consortia. 

Future outlook 

Scania’s customer finance operations are now well 

established in most major markets. The pace of 

growth is therefore expected to slow during 2002. 

Prioritised areas will be further efficiency improvements 

in portfolio and credit management, as well as 

development of new financial services. 

47

Financial review 

Earnings 

Earnings 


Operating income, SEK m. 2,467 5,084 

Income after financial items, SEK m. 1,541 4,454 

Net income, SEK m. 1,048 3,080 

Earnings per share, SEK 5.24 15.40 

Return on capital employed 

(excluding Customer finance operations), % 8.4 19.7 

Return on equity, % 6.5 21.6 

The Scania Group’s operating income declined by 

51 percent and amounted to SEK 2,467 m. (5,084). 

The operating margin of the Scania Group fell to 4.6 

(9.9) percent. The margin for Scania products, i.e. 

excluding car operations, amounted to 5.0 (10.7) 

percent. 

Earnings by area of operations 

Operating income, SEK m. 2001 2000 

European operations 2,979 4,621 

Latin American operations –901 9 

Customer finance operations 278 179 

Total Scania products 2,356 4,809 

Car operations 111 275 

Scania Group total 2,467 5,084 

Operating margin, % 2001 2000 

European operations 7.0 11.5 

Latin American operations –15.5 0.1 

Total Scania products 5.0 10.7 

Car operations 1.9 4.1 

Scania Group total 4.6 9.9 

Operating income in European operations 1 amounted to 

SEK 2,979 m. (4,621), a decline of 36 percent. 

Operating income was adversely affected by: 

• Lower capacity utilisation at production units due to 

lower volume. 

• Increased product costs, including development 

expenses, as well as the introduction of new products 

and systems. 

• Expenses of SEK 160 m. for early retirements and staff 

reductions. 

Compared to the preceding year, earnings were 

favourably influenced by: 

• Increased sales of service-related products. 

• Positive net currency rate effects of about SEK 700 m. 

• A larger share of vehicles with more advanced equipment, 

resulting in higher average revenue per truck. 

Operating income in Latin American operations 

amounted to SEK –901 m. (9). 

Operating income was adversely affected by: 

• Substantially worse margins due to cost increases, 

largely currency rate related, which could not be offset 

by local price increases. 

• Lower sales volume in Argentina. 

• Costs of expansion in commercial operations related 

to a build-up of commercial structure within Scania’s 

own organisation. 

• Expenses of SEK 125 m. charged to the year’s 

earnings for staff reductions. 

Operating income in Customer finance operations rose 

by 55 percent and amounted to SEK 278 m. (179). During 

2001, operations continued to expand, with a large 

number of vehicles being financed despite lower sales 

volume in the Scania Group. 

Operating income in Car operations 2 amounted to 

SEK 111 m. (275). Lower earnings were mainly due to 

lower sales volume. 

Net financial items totalled SEK -926 m. (-630), of 

which net interest items amounted to SEK -848 m. The 

deterioration was essentially attributable to higher interest 

rates in Latin America. 

Income after financial items amounted to SEK 

1,541 m. (4,454). 

Tax expenses for the year amounted to SEK 496 m. 

(1,371), equivalent to 32.2 (30.8) percent of income after 

financial items. The higher tax level in 2001 was mainly due 

to losses in Latin America for which the value of tax loss 

carry-forwards was not fully recognised. 

Net income amounted to SEK 1,048 m. (3,080), 

resulting in earnings per share of SEK 5.24 (15.40). 

Sales 

The Scania Group’s sales amounted to SEK 53,065 m. 

(51,398), equivalent to an increase of 3 percent. During 

the year, currency rate effects positively influenced sales 

by SEK 2,840 m., including the effect of hedging. Acquisitions/divestments 

of businesses had a positive effect of 

SEK 1,327 m. 

During 2001, the Scania Group sold 43,659 (52,318) 

1 European operations are the portion of Scania’s operations that, in principle, 

supply all markets except Latin American ones with the company’s products 

and services. 

2 Car operations include half the importer operations of the Svenska Volkswagen 

Group in Sweden; the wholly-owned Swedish car dealership network Din Bil; 

and car dealership networks in Finland and Switzerland. 

48

Sales 

Number of vehicles 2001 2000 


Latin American operations 7,705 8,625 

Total Scania vehicles sold 48,331 56,492 

Sales value, SEK m. 


Latin American operations 5,806 6,104 

Intra-Group sales –1,089 –1,461 


Car operations 5,852 6,658 

Total sales value 53,065 51,398 

Sales by product, SEK m. 


Trucks 29,139 31,101 

Buses 4,701 3,704 

Engines 608 437 

Service-related products 10,279 8,113 

Used vehicles and other products 4,370 3,810 

Revenue deferral 1 –1,884 –2,425 


Car operations 5,852 6,658 

Total sales 53,065 51,398 

1 Refers to the difference between sales recognised as revenues and sales 

value based on delivery. 

trucks, equivalent to a decrease of 17 percent. The 

number of buses sold was 4,672 (4,174), an increase 

of 12 percent. 

Cash flow 

The Group’s cash flow, excluding Customer finance 

operations and acquisitions, amounted to SEK 2,995 m. 

(3,014). 

Cash flow from operating activities amounted to SEK 

4,873 m. (4,535). Of this, SEK 2,978 m. (4,951) consisted 

of cash from operating activities. The remaining SEK 

1,895 m. (–416) was related to changes in working 

capital. The adjustment to lower production volume freed 

up working capital, in local currencies, related to both 

receivables and inventories. 

Net investments, excluding acquisitions/divestments of 

businesses, affected cash flow by SEK –1,878 m. (–1,521). 

Financial position 

The balance sheet total, with Customer finance operations 

reported according to the equity accounting 

method, rose by 8 percent to SEK 54,946 m. (50,651). 

The overall balance sheet total rose by 12 percent to SEK 

68,439 m. (60,900). This increase was a consequence of 

acquisitions as well as the weakening of the Swedish 

krona. 

During the year, gross investments totalled SEK 

1,980 m. (1,825). Scania made large investments in its 

cab production plant in Oskarshamn as well as in the parts 

logistics centre in Belgium. In addition, it made investments 

to increase production efficiency at the Luleå plant. 

Financial ratios related to the balance sheet 


Net debt/equity ratio, excluding 

provisions for pensions 1 7,790 7,781 

Net debt/equity ratio 1 0.49 0.50 

Shareholders’ equity per share, SEK 80.00 78.50 

Equity/assets ratio, % 23.4 25.8 

1 With Customer finance operations reported according to the equity 

accounting method. 

During 2001, the shareholders’ equity of the Scania 

Group increased by SEK 297 m. and totalled SEK 15,995 

m. (15,698) at year-end. Net income for the year added 

SEK 1,048 m., while dividends to shareholders decreased 

shareholders’ equity by SEK 1,400 m. The remaining 

increase, SEK 649 m., was attributable to translation of 

net assets outside Sweden. 

The dividend for the financial year proposed by the 

Board of Directors is SEK 3.50 (7.00) per share. 

The net indebtedness of the Scania Group, i.e. the 

difference between liquid assets and interest-bearing 

liabilities, excluding pensions and with Customer finance 

operations reported according to the equity accounting 

method, amounted to SEK 7,790 m. (7,781), which 

meant that the net indebtedness ratio was 0.49 (0.50). 

Net indebtedness including Customer finance operations 

totalled SEK 29,305 m. (23,777). 

Financing 

Scania has a committed revolving credit facility of USD 

1,850 m. from an international banking syndicate that 

expires in November 2004. At year-end 2001, the equivalent 

of USD 370 m. of this facility was being utilised. This 

means that USD 1,480 m., equivalent to SEK 15,789 m. 

translated at the closing day rate, was available under the 

credit facility on 31 December 2001. 

The Group has a medium-term note programme, 

under which Scania can issue notes and bonds with 

maturities ranging from one to ten years. At year-end, the 

maximum amount was SEK 7,000 m. and SEK 3,832 m. 

worth of such debt securities had been issued under the 

programme. 

In conjunction with Standard & Poor’s official credit 

49

ating of Scania, the Group established a European 

medium-term note programme, under which Scania can 

issue notes and bonds in the international financial market. 

At year-end, the maximum amount was EUR 1,500 

m. and EUR 550 m. worth of such debt securities had 

been issued under the programme in the form of a public 

bond that matures in December 2008. 

Scania also has short-term borrowing in the form 

of commercial paper in Sweden and Belgium, with 

maximum amounts of SEK 6,000 m. and EUR 400 m., 

respectively. At year-end, SEK 5,912 m. and EUR 85 m., 

respectively, of these facilities had been utilised. 

Interest and credit risk 

Scania’s policy concerning interest rate risk is that the 

duration of its loan portfolio should normally be 6 months; 

however, durations may be allowed to deviate within the 

0–24 month range. One exception is Scania’s finance 

companies, in which the fixed interest period on loans is 

matched with the fixed interest period on assets. 

During 2001, the average funding cost including customer 

finance operations was 5.9 percent (6.3). During 

the year, the average fixed interest period on Scania’s 

loan portfolio (excluding finance companies) was about 3 

months, which was also the average fixed interest period 

at year-end. 

Derivative instruments are used to manage interest 

rate risks within the Group. All the above data include the 

effects of these derivatives. Management of credit risks 

that arise in Scania’s treasury unit, among other things 

when investing liquid assets and engaging in derivatives 

trading, is regulated in Scania’s financial policy. Transactions 

take place only within established ceilings and with 

carefully selected, creditworthy counterparties. 

Hedging of currency flows 

GBP/SEK USD/SEK EUR/SEK CHF/SEK NOK/SEK 

Quarter Volume Rate* Volume Rate* Volume Rate* Volume Rate* Volume Rate* 

Q 1** 2002 32.5 14.70 30.0 10.38 100.0 9.20 10.0 5.97 90.0 1.19 

Q 2 2002 60.0 14.98 43.0 10.62 148.0 9.30 15.0 6.27 23.7 1.18 

Q 3 2002 42.6 15.33 33.0 10.79 105.0 9.72 15.5 6.81 

Q 4 2002 25.8 15.20 54.4 10.81 82.5 9.52 10.0 6.60 

Total 160.9 160.4 435.5 50.5 113.7 

(in millions) 

Closing day rate 31 Dec 2001 

15.475 10.6675 9.419 6.36 1.1835 

Unrealised gain/loss 

31 Dec 2001 

(SEK m.) –49.675 –11.493 – 3.536 –0.031 2.49 

* Average forward price and lowest redemption price for currency options. 

** January volumes are not included, since the unrealised gain/loss effect was reported in December. 

Currencies 

Net currency transaction exposure during 2001 was 

about SEK 14 bn. The largest inflow currencies were EUR 

along with GBP and USD. Based on the 2001 geographic 

breakdown of revenues and expenses, a one percent 

change in the Swedish krona would change operating 

income by about SEK 140 m. on a full-year basis. Currency 

exposure in operating income by region is presented 

in Note 26 on page 65. 

In a statistical calculation compared to the currency 

situation in 2000, operating income in 2001 for European 

operations was favourably affected by SEK 700 m. In this 

comparison, the effect of changed spot exchange rates 

totals about SEK 1,300 m. The net effect of currency 

hedging activities and exchange rate gains/losses on the 

reassessment of receivables and liabilities adversely 

affected the comparison by SEK 600 m. For Latin American 

operations, direct and indirect effects of changes in 

Currency transaction exposure 

SEK m. 

15,000 

10,000 

5,000 

0 

98 99 00 01 

Other 

currencies 

GBP 

USD and 

AUD 

EUR* 

*) ATS, BEF/LUF, 

FIM, FRF, DEM, 

ESP, IEP, ITL, 

NLG and PTE 

exchange rates were estimated to have adversely affected 

operating income by SEK 400 m. 

Scania’s policy is to hedge currency flows during a period 

of time equivalent to the projected orderbook until the date of 

payment. This normally means a hedging period of 3 to 4 

months. However, the hedging period is allowed to vary 

between 0 and 12 months. 

Scania’s net assets abroad amounted to SEK 8,788 m. at 

the end of 2001 (see Note 25, page 65). The net assets of foreign 

subsidiaries are not hedged under normal circumstances. 

To the extent a subsidiary has significant monetary assets in 

local currency, however, it may be hedged. As of 31 December 

2001, SEK 892 m. (845) was hedged at Scania level, which 

was equivalent to 10 (7) percent of the Group total. 

In order to hedge monetary operating assets in Latin 

American operations, Scania has taken out loans in local currencies. 

On December 31, 2001, these loans totalled SEK 

1,714 m. (1,898). 

50

Consolidated income statement 

Residual value exposure 

Vehicle sales through Scania’s commercial companies 

occur partly with fixed repurchase obligations or with 

guaranteed residual value in the case of sales via Customer 

finance operations. During 2001, the volume of such 

transactions was more than 4,800 vehicles. The value of 

all obligations at year-end was SEK 7,260 m. (5,449). In the 

case of sales with the above obligations, profit recognition 

occurs successively over the period of the obligation. 

Residual value and repurchase obligations are regulated by 

written company policies and are regularly monitored both 

at the Group and subsidiary level. 

Insurance 

The insurance department coordinates Scania’s global 

insurance procurement. Most of Scania’s insurance 

coverage is obtained in the international insurance market, 

at a cost of SEK 55 m. in 2001. A large proportion of 

premium volume is placed in Scania’s own insurance 

company, Vabis Försäkrings AB, which in turn manages 

insurance risks by means of reinsurance in the international 

reinsurance market. 

Number of employees 

At year-end, the number of employees totalled 28,342 

(27,366). The staff reduction at European production units 

proceeded as planned. In the European sales and service 

organisation as well as in developing markets, the number 

of employees rose. In Latin American operations, about 350 

persons will leave the company during the first half of 2002 

due to measures that have been approved. Acquisitions of 

businesses increased the number of employees by 1,566 

persons, while divestments decreased the number by 226. 

January–December, SEK m. Note 2001 2000 1999 

Sales 1 1 53,065 51,398 44,044 

Cost of goods sold 2 –42,601 –40,061 –33,558 

Gross income 1 10,464 11,337 10,486 

Research and development expenses –1,955 –1,621 –1,267 

Selling expenses 1, 2 –5,594 –4,312 –3,774 

Administrative expenses –785 –856 –866 

Income from Customer finance operations 1 2 278 179 140 

Share of income of associated companies 1 3 59 357 326 

Operating income 1 2,467 5,084 5,045 

Financial income and expenses 4 

Interest income 294 415 381 

Interest expenses –1,142 –1,007 –909 

Other financial income and expenses –78 –38 –17 

Net financial items -926 –630 –545 

Income after financial items 1,541 4,454 4,500 

Taxes 5 –496 –1,371 –1,353 

Minority interests 3 –3 –1 

Net income 1,048 3,080 3,146 

Depreciation included in operating income 6 –2,157 –1,999 –1,909 

Earnings per share, SEK 3 5.24 15.40 15.73 

1 Acquired and divested companies increased sales by SEK 1,327 m., gross income by SEK 368 m., selling expenses by 

SEK 318 m. and income from Customer finance operations by SEK 17 m. Share of income of associated companies 

decreased by SEK 182 m. Operating income was adversely affected by SEK 115 m. 

2 Selling expenses: Defined as sales-related expenses, including goodwill amortisation, in commercial companies and costs 

of central commercial-related resources. Beginning in the first quarter of 2001, Scania is reporting indirect expenses related 

to service workshops and parts management as well as warranty expenses in commercial companies under 

‘‘Cost of goods sold” instead of among ‘‘Selling expenses” as previously. 

3 There are no potential dilution effects. 

51

Consolidated balance sheet 

With Customer finance operations 

reported according to the equity 

accounting method, pro forma 

31 December, SEK m. Note 2001 2000 1999 2001 2000 1999 

ASSETS 

Fixed assets 

Intangible fixed assets 7 1,364 545 555 1,364 545 555 

Tangible fixed assets 8 25,714 21,967 20,289 25,695 21,949 20,274 

Financial fixed assets 

Shares in associated companies etc 9 795 2,037 1,388 3,287 3,631 2,616 

Interest-bearing receivables 10 10,178 7,312 6,356 784 541 433 

Deferred tax assets 16 963 635 502 963 633 499 

Other long-term receivables 351 604 525 347 604 525 

Total fixed assets 39,365 33,100 29,615 32,440 27,903 24,902 

Current assets 

Inventories 11 7,946 7,467 7,437 7,880 7,429 7,279 

Receivables 12 

Interest-bearing trade receivables 6,791 5,483 4,180 989 941 650 

Other trade receivables 7,731 8,953 7,560 7,562 8,905 7,519 

Other receivables 2,499 2,316 2,116 2,144 2,005 1,934 

Total receivables 17,021 16,752 13,856 10,695 11,851 10,103 

Short-term investments 13 2,133 1,939 1,713 2,132 1,926 1,713 

Cash and bank balances 1,974 1,642 997 1,799 1,542 830 

Total current assets 29,074 27,800 24,003 22,506 22,748 19,925 

Total assets 68,439 60,900 53,618 54,946 50,651 44,827 

52

With Customer finance operations 

reported according to the equity 

accounting method, pro forma. 

31 December, SEK m. Note 2001 2000 1999 2001 2000 1999 

SHAREHOLDERS’ EQUITY AND LIABILITIES 

Shareholders’ equity 14 

Share capital 2,000 2,000 2,000 2,000 2,000 2,000 

Restricted reserves 5,665 5,370 4,353 5,665 5,370 4,353 

Total restricted reserves 7,665 7,370 6,353 7,665 7,370 6,353 

Unrestricted reserves 7,282 5,248 4,049 7,282 5,248 4,049 

Net income 1,048 3,080 3,146 1,048 3,080 3,146 

Total unrestricted equity 8,330 8,328 7,195 8,330 8,328 7,195 

Total shareholders’ equity 15,995 15,698 13,548 15,995 15,698 13,548 

Minority interests in subsidiaries 21 22 23 21 22 23 

Provisions 

Provisions for pensions 15 2,092 1,929 1,842 2,087 1,925 1,839 

Provisions for deferred taxes 16 2,391 2,271 2,044 1,490 1,626 1,515 

Other provisions 17 2,184 1,800 1,961 2,180 1,795 1,954 

Total provisions 6,667 6,000 5,847 5,757 5,346 5,308 

Liabilities 

Long-term borrowings 18 18,908 15,372 11,268 3,961 5,599 5,366 

Short-term borrowings 18 14,504 11,986 13,119 7,760 5,650 5,486 

Advance payments from customers 764 530 563 680 446 446 

Trade accounts payable 3,253 3,616 2,801 3,025 3,433 2,661 

Tax liabilities 182 527 872 179 521 871 

Other liabilities 2,003 1,842 1,561 1,769 1,614 1,321 

Accrued expenses and prepaid income 19 6,142 5,307 4,016 15,799 12,322 9,797 

Total liabilities 45,756 39,180 34,200 33,173 29,585 25,948 

Total shareholders’ equity and liabilities 68,439 60,900 53,618 54,946 50,651 44,827 

Assets pledged and contingent liabilities 

Assets pledged 20 233 245 231 

Contingent liabilities 21 855 881 645 

53

Statement of changes in shareholders’ equity 

Amounts in SEK m. unless otherwise stated 2001 2000 1999 

Shareholders’ equity, 1 January 2001 15,698 13,548 11,851 

Translation differences 649 470 –149 

Net income 1,048 3,080 3,146 

Dividend to shareholders –1,400 –1,400 –1,300 

Shareholders’ equity, 31 December 2001 15,995 15,698 13,548 

Consolidated statement of cash flow 


Cash flow from operating activities 

Net income, excluding Customer finance operations 854 2,954 3,034 

Items not affecting cash flow 22 2,124 1,997 2,322 

Cash from operating activities 2,978 4,951 5,356 

Change in working capital etc 

Inventories 475 74 693 

Receivables 1,973 –1,394 –2,746 

Provisions for pensions 153 75 –95 

Non-interest-bearing liabilities and provisions –706 829 43 

Total change in working capital etc 22 1,895 –416 –2,105 

Total cash flow from operating activities 4,873 4,535 3,251 

Net investments excluding acquisitions/divestments of businesses 22 –1,878 –1,521 –1,654 

Cash flow before acquisitions /divestments of businesses* 2,995 3,014 1,597 

Net investments through acquisitions /divestments of businesses 22 –929 –457 –1,121 

Cash flow excluding Customer finance operations 2,066 2,557 476 

Expansion in Customer finance operations 2 –2,428 –2,444 –2,708 

Change in net indebtness including Customer finance operations -362 113 –2,232 

Change in net indebtness from financing activities 22 2,119 2,020 4,431 


Net change in liquid assets and short-term investments 357 733 899 

Effect of exchange rate fluctuations on liquid assets and short-term investments 169 138 37 

Cash, bank balances and short-term investments, 1 January 3,581 2,710 1,774 

Cash, bank balances and short-term investments, 31 December 4,107 3,581 2,710 

* Cash flow per share, excluding Customer finance operations and acquisitions/divestments 14.98 15.07 7.99 

54

Parent Company financial statements 

Income statement 


Operating income – – – 

Financial income and expenses 1 51 –13 – 42 

Dividends and Group contributions received 1 650 3,184 3,619 

Withdrawal from tax allocation reserve 600 – – 

Provision to tax allocation reserve –325 –634 –706 

Taxes 1 –273 –711 –790 

Net income 703 1,826 2,081 

1 Refers to current tax 

Balance sheet 

31 December, SEK m. 2001 2000 1999 

ASSETS 

Financial fixed assets 

Shares 2 10,971 10,971 10,971 

Current assets 

Due from subsidiaries 3,010 4,409 3,427 

Other receivables 13 13 13 

Total assets 13,994 15,393 14,411 


Shareholders’ equity 3 10,873 11,570 11,144 

Untaxed reserves 4 2,836 3,111 2,477 

Current liabilities 

Accrued expenses and prepaid income 12 1 – 

Tax liabilities 273 711 790 

Total current liabilities 285 712 790 

Total shareholders’ equity and liabilities 13,994 15,393 14,411 

Assets pledged and contingent liabilities 

Assets pledged None None None 

Contingent liabilities 5 26,872 19,476 18,139 

Statement of changes in shareholders’ equity 

Amounts in SEK m. 2001 2000 1999 

Shareholders’ equity, 1 January 11,570 11,144 10,363 

Net income 703 1,826 2,081 

Dividends to shareholders –1,400 –1,400 –1,300 

Shareholders’ equity, 31 December 10,873 11,570 11,144 

Statement of cash flow 

January–December, SEK m. 2001 2000 1999 

Cash flows from operating activities 

Net income 703 1,826 2,081 

Items not affecting cash flow 

Group contributions received –650 –3,255 –3,569 

Group contributions provided – 71 – 

Provision to/withdrawal from tax allocation reserve –275 634 706 

Cash from operating activities –222 –724 –782 

Change in working capital 

Current liabilities –427 –79 74 

Receivables – – –13 

Total cash flow from operating activities –649 –803 –721 

Investment activities 

Shares – – 298 

Change in net indebtedness from financing activities 

Change in liabilities to subsidiaries 2,049 2,203 1,723 


Net cash provided by financing activities 649 803 423 

Liquid assets and short-term investments, 31 December – – – 

55

Accounting principles 

The Annual Report of the Scania Group have been prepared 

in compliance with the Annual Accounts Act, the current recommendations 

of the Swedish Financial Accounting Standards 

Council and the statements of its Urgent Issues Task Force. 

The recommendations of the Council are based on the 

international accounting standards (IAS) issued by the 

International Accounting Standards Board. In the case of 

the Scania Group, there are differences compared to U.S. 

generally accepted accounting principles (U.S. GAAP). 

A description of these can be found on page 67. 

Consolidated accounts 

The consolidated financial statements encompass Scania AB 

and all subsidiaries and associated companies in Sweden 

and abroad. Subsidiaries are companies in which Scania 

directly or indirectly owns more than 50 percent of the voting 

rights of the shares or in which Scania otherwise has a decisive 

influence. Associated companies are companies in which 

Scania has a long-term ownership interest and voting rights 

of between 20 and 50 percent. 

Associated companies are reported in accordance with 

the equity accounting method. This means that the shares 

and participations in associated companies are reported in 

the consolidated balance sheet as the Group’s share of their 

equity after adjusting for the Group’s share of surplus or 

deficit value, respectively. Thus, consolidated income 

includes Scania’s share of the income of associated companies. 

Customer financing operations are reported pro forma 

according to the equity accounting method, in order to create 

more analytical reporting. The tied-up capital and accompanying 

financial structure of Customer finance operations differ 

substantially from other operations. 

The consolidated accounts are prepared in accordance 

with the recommendation of the Swedish Financial Accounting 

Standards Council (RR1:96). Acquisitions of companies 

are reported according to the purchase accounting method. 

This means that an acquired subsidiary’s assets and liabilities 

are accounted for by the purchaser at acquisition values 

according to an analysis of the acquisition. If the acquisition 

cost of the shares in the subsidiary exceeds the estimated fair 

market value of the company’s net assets according to the 

analysis, the difference is reported as goodwill in consolidation. 

The goodwill amortisation period is established on the basis 

of individual examination. In deciding the amortisation period, 

the main principles used are as follows: 

• Small acquisitions that are a supplement to existing operations 

and that are integrated with them are amortised in 

five years. 

• Larger acquisitions that involve establishing new markets 

are amortised in ten years if they are established operations 

with a strong market position. 

It was decided that the amortisation period for companies 

acquired during 2001 would be ten years. 

Only income that arises after the date of acquisition is 

included in consolidated shareholders’ equity. 

The minority interests’ share of net income and shareholders’ 

equity of partially owned subsidiaries is reported separately 

in the calculation of net income and shareholders’ 

equity. 

Foreign subsidiaries and associated companies 

European production companies, Latin American operations 

and certain holding companies are integral to Scania and 

their financial statements are thus translated to Swedish kronor 

using the monetary/non-monetary accounting method. 

Latin American operations, which are predominantly industrial 

in nature, are an integral part of Scania’s total industrial system, 

with common product development, common products 

and a common production structure. Other foreign subsidiaries, 

mainly marketing companies, are regarded as independent 

and their financial statements are translated using 

the current method. 

Under the monetary/non-monetary method, monetary 

items are translated at the year-end rate, while non-monetary 

items are translated at the rate in effect on the acquisition 

date. Inventories, property, plant and equipment and shareholders’ 

equity are translated at the acquisition date rate and 

other assets and liabilities at the year-end rate. With the 

exception of consumption of goods and depreciation of property, 

plant and equipment, which are translated at the acquisition 

date rate, income and expenses are translated at a 

weighted average exchange rate for the year. 

The translation difference on monetary assets and 

liabilities is included in net income for the year and is reported 

in the income statement as follows. The portion of the translation 

difference attributable to operations-related balance sheet 

items is included in operating income. The portion of the translation 

difference attributable to financial items is included in 

financial income and expenses. The portion attributable to tax 

items is reported under taxes in the income statement. Currency 

rate effects from exchange rate hedging are allocated in a 

similar way among operating income, net financial items and 

taxes. 

Under the current method, assets and liabilities are translated 

at the year-end exchange rate, while income and 

expenses are translated at the average exchange rate for the 

year. The translation difference, which arises in part from 

translating net assets of foreign companies at a different rate 

at the beginning of the year than at year-end, and in part from 

translating net income at other than the year-end rate, is 

reported directly in shareholders’ equity in the balance sheet. 

Receivables and liabilities in foreign currency 

Receivables and liabilities in foreign currency are valued at the 

year-end exchange rate. Unrealised exchange rate gains and 

losses are thus included in income during the period that the 

hedged flow is reported. Exchange rate effects related to 

hedging of the flow in foreign currencies are also included in 

earnings during the period that the hedged flow is reported. 

The unrealised portion of estimated exchange rate hedging, 

including accrued interest, is reported as accrued income or 

an accrued expense. 

56

Short-term investments 

Short-term investments are valued at the lower of acquisition 

cost or market value. 

Inventories 

Inventories are valued at the lower of acquisition value according 

to the first in, first out principle (FIFO) or actual value. An 

allocable portion of indirect expenses is included in the value of 

the inventories. Inventories are reported on a net basis after 

deductions for obsolescence and internal profits. 

Property, plant and equipment 

Property, plant and equipment are reported at acquisition 

cost and are depreciated down to an estimated residual value 

over the service life of the asset. Land holdings are not 

depreciated. 

Leasing contracts 

Leasing contracts with customers are reported as financial 

leases in cases where substantially all risks and benefits 

associated with ownership have been transferred to the 

lessee. Other leasing contracts as accounted for as operating 

leases. 

Revenue recognition 

Sales revenues are recognised upon delivery of the products 

and services, on the date when substantially all the risks and 

rights of ownership pass to the buyer. See ‘‘Successive revenue 

recognition” below. 

Depreciation 

An asset is depreciated down to an estimated residual value 

over its useful life. The useful life of machinery and equipment 

is 5–15 years. Industrial buildings are depreciated over 25 

years. Land holdings are not depreciated. 


The expenses of research and development are charged to 

operating income as they arise. 

Warranty expenses 

Estimated expenses for product warranties are charged to 

operating income when the product is sold. 

Selling expenses 

Selling expenses are defined as sales-related expenses in 

commercial companies, including goodwill amortisations related 

to acquisitions and costs of central commercial-related 

resources. 

Administrative expenses 

Administrative expenses are defined as Group-wide costs of 

corporate management plus corporate staff units in European 

and Latin American operations. 

Exchange rate differences 

Exchange rate differences are reported under operating 

income, aside from translation differences pertaining to shortand 

long-term borrowings, which are reported as financial 

income or expenses. 

Exchange rate differences attributable to loans and 

forward exchange contracts in foreign currencies that are 

designated as a hedge of the net assets of independent 

subsidiaries are reported, with consideration given to tax 

effects, directly in shareholders’ equity in the consolidated 

balance sheet, together with the translation difference on 

translated net assets. The portion of these forward exchange 

contracts that pertains to interest is amortised over the life of 

the contract and is reported among financial income and 

expenses. 

Taxes 

The Group’s total tax consists of current tax and deferred tax. 

Deferred tax is reported in case of a difference between the 

book value of assets and liabilities and their tax value 

(‘‘temporary differences”). Full provision is made for deferred tax 

liabilities, while deferred tax assets are recognised only to the 

extent they are considered likely to be realised. 

The Group has kept the accounting principle which, in 

accordance with American accounting principles, means that 

deferred tax on the temporary differences that occur when 

translating non-monetary items is not valued. 

Changes in accounting principles 

Successive revenue recognition 

Beginning with 2001, Scania is applying recommendation RR 

11 of the Swedish Financial Accounting Standards Council 

concerning revenue recognition. This means that revenue on 

‘‘operating leases” as well as on other sales with repurchase 

obligations is reported successively over the life of the obligation 

instead of being reported on the delivery date, as previously. 

As a consequence of this, the equivalent assets remain 

in Scania’s balance sheet, with Customer finance companies 

reported according to the equity accounting method. Payments 

received are reported there as prepaid income. 

Accounting principles applied from 2002 onward 

Through acquisitions, Latin American operations have 

assumed a more developed commercial nature. Like Scania’s 

European commercial companies, the commercial portion will 

be translated according to the current method from 2002 

onward. 

From 2002 onward, Scania will be applying recommendation 

RR 15 of the Swedish Financial Accounting Standards 

Council, related to intangible assets. This recommendation is a 

translation of the International Accounting Standards Board’s 

principle IAS 38, Intangible Assets. This means that a certain 

portion of Scania’s Group-wide research and development 

expenditures will be recognised as assets and amortised over 

its estimated useful life. 

57

Notes to the consolidated financial statements 

All amounts are stated in millions of Swedish kronor (SEK m.) unless otherwise indicated. 

Note 1 Sales 

2001 2000 1999 

Trucks 29,139 31,101 27,888 

Buses 4,701 3,704 3,601 

Engines 608 437 444 

Service-related products 10,279 8,113 6,927 

Used vehicles and other products 4,370 3,810 2,765 

Revenue deferral 1 –1,884 –2,425 –3 ,066 

Total Scania products 47,213 44,740 38,559 

Car operations 5,852 6 ,658 5,485 

Total 53,065 51,398 44,044 

1 Refers to the difference between sales recognised as revenues and sales 

value based on delivery. 

Note 2 Customer finance operations 

The Group’s Customer finance operations are conducted primarily 

by separate subsidiaries. Their financial statements are summarised 

below. 

Income statement 2001 2000 1999 

Interest income 1,041 718 559 

Lease income 2,656 1,687 1,287 

Depreciation –1,939 –1,198 –921 

Interest expenses –1,101 –792 –581 

Bad debts 1 –137 –66 –57 

Other expenses –242 –170 –147 

Income before taxes 278 179 140 

Balance sheet 2001 2000 1999 

ASSETS 

Lease assets 9,894 7,208 5,809 

Financial receivables 15,197 11,314 9,453 

Other assets 1,163 804 835 

Total 26,254 19,326 16,097 


Shareholders’ equity 2,492 1,594 1,229 

Borrowings 21,691 16,108 13,535 

Other liabilities 2,071 1,624 1,333 

Total 26,254 19,326 16,097 

The statement of cash flow below describes the expansion in 

Customer finance operations. 

Statement of cash flow 2001 2000 1999 

Net income 194 126 112 

Items not affecting cash flow 312 194 133 

Cash from operating activities 506 320 245 

Increase in lease assets –143 –1,246 –1,606 

Increase in financial receivables –2,435 –1,680 –1,304 

Change in other assets and liabilities –79 162 38 

Acquisition of business 2 –277 – –81 

Expansion in Customer 

finance operations –2,428 –2,444 –2,708 

Lease assets 2001 2000 1999 

Acquisition value 13,919 9,385 7,449 

Accumulated depreciation –4,025 –2,177 –1,640 

Book value at year-end 3 9,894 7,208 5,809 

1 Including change in provisions for doubtful receivables. 

2 Acquisition of the Dutch financing business Bezoma, part of Beers N.V. 

The value of assets totalled SEK 3,182 m. and liabilities totalled SEK 2,905 m. 

The purchase price amounted to SEK 277 m. The effect on cash flow totalled 

SEK –277 m. 

3 Included in the consolidated accounts under ‘‘Machinery and equipment” after 

subtracting deferred profit recognition. 

Net investments in financial leases 2001 2000 1999 

Minimum lease payments receivable 10,988 8,543 7,176 

Less: 

Executory costs and reserve 

for doubtful receivables –342 –242 –194 

Imputed interest –1,093 –934 –860 

Net investment 4 9,553 7,367 6,122 

4 Included in ‘‘Interest-bearing trade accounts receivable” and ‘‘Long-term 

interest-bearing receivables”. 

Future payments Operating leases Financial leases 

2002 2,552 4,205 

2003 2,089 3,063 

2004 1,645 2,061 

2005 844 1,137 

2006 505 430 

2007 and thereafter 264 92 

Total 7,899 10,988 

Note 3 Share of income of associated 

companies 

The Group’s share of income before taxes of associated 

companies consisted of the following: 

2001 2000 1999 

Scania products 1 29 195 162 

Car operations 30 162 164 

Total 59 357 326 

1 In 2000, Beers accounted for SEK 182 m. In 2001, Beers was 100 percent 

included in Scania and was thus reported as a wholly-owned subsidiary. 

Note 4 Financial income and expenses 

2001 2000 1999 

Interest income 

Bank balances and short-term 

investments 89 237 242 

Interest-bearing receivables 157 121 96 

Interest portion of forward exchange 

contracts used to hedge net assets –2 14 13 

Other 50 43 30 

Total interest income 294 415 381 

Interest expenses 

Borrowings –1,086 –945 –865 

Interest on pension liability (PRI) –56 –62 –44 

Total interest expences –1,142 –1,007 –909 

Other –78 –38 –17 

Net financial items –926 –630 –545 

58

Note 5 Taxes 

2001 2000 1999 

Current tax –642 –1,088 –1,138 

Deferred tax 163 –168 –112 

Share of tax of associated companies –17 –115 –103 

Total –496 –1,371 –1,353 

Geographic distribution of income before taxes and minority interests: 

Sweden 1,428 3,564 3,903 

Rest of the world 113 890 597 

Total 1,541 4,454 4,500 

Geographic distribution of tax expense: 

Current tax 

Sweden –369 –857 –869 

Rest of the world –273 –231 –269 

Total –642 –1,088 –1,138 

Deferred tax 

Sweden –7 –65 –194 

Rest of the world 170 –103 82 

Total 163 –168 –112 

Tax of associated companies –17 –115 –103 

Total –496 –1 371 –1 353 

The main reasons behind the difference between the statutory tax 

rate in Sweden and the effective tax rate in relation to income 

before taxes are indicated in the table below: 

2001 2000 1999 

% % % 

Swedish statutory income tax rate 28 28 28 

Valuation of tax loss carry-forwards 7 1 1 

Difference between Swedish 

and foreign tax rates –5 1 2 

Tax-exempt income –2 –1 –2 

Non-deductible expenses including 

goodwill amortisation 9 2 2 

Adjustment for taxes pertaining 

to previous years –2 0 1 

Other –3 0 –2 

Effective income tax rate 32 31 30 

Note 6 Depreciation 

Distribution of depreciation by function, excluding depreciation in 

Customer finance operations. (See note 2). “Selling expenses” 

included SEK 188 m. in amortisation of goodwill. 

2001 2000 1999 

Cost of goods sold –1,504 –1,411 –1,438 

Research and development expenses –106 –84 –70 

Selling expenses –502 –455 –360 

Administrative expenses –45 –49 –41 

Total –2,157 –1,999 –1,909 

In addition to the above depreciation, reduction in value on 

capitalised vehicles 1 delivered with repurchase guarantees and 

short-term leasing outside of Customer finance operations 

reported under the heading ‘‘Operating leases” amounted to SEK 

583 m. (344 and 165, respectively). 

1 See ‘‘Successive revenue recognition” under accounting principles, page 57. 

Note 7 Intangible fixed assets 

Goodwill 2001 2000 1999 

Accumulated acquisition value 

1 January 760 681 173 

Aquisitions/divestments of businesses 921 61 514 

Translation differences for the year 101 18 –6 

Total 1,782 760 681 

Accumulated amortisation 

1 January 215 126 60 

Amortisation for the year 188 83 62 

Acquisitions/divestments of businesses –5 – 7 

Translation differences for the year 20 6 –3 

Total 418 215 126 

Book value, 31 December 1,364 545 555 

Note 8 Tangible fixed assets 

Construction Opera- 

Building Machinery in progress tional 

and and and adv. leases 

land equipment payment etc 

Book value, 1 January 1999 5,653 7,155 784 4,926 

Change in accumulated 

acquisition value, 1999 819 899 207 2,019 


depreciation,1999 –433 –1,226 – –514 

Book value, 31 Dec 1999 6,039 6,828 991 6,431 


acquisition value, 2000 473 1,719 -259 2,239 


depreciation, 2000 –250 –1,596 – –648 

Book value, 31 Dec 2000 6,262 6,951 732 8,022 


Accumulated acquisition value 

1 January 9,238 18,301 732 10,696 

Additions during the year 386 773 821 4,093 

Acquisitions/divestments 

of businesses 1,104 147 –7 3,541 

Divestments and disposals –196 –676 – –3,692 

Reclassifications 90 222 –478 166 

Translation differences 

for the year 331 772 26 762 

Total 10,953 19,539 1,094 15,566 

Accumulated depreciation 

1 January 3,008 11,350 2,635 

Acquisitions/divestments 

of businesses 187 122 1,146 

Divestments and disposals –57 –529 –1,802 

Reclassifications –1 –39 40 

Depreciation for the year on 

acquisition value: 

– industrial and sales operations 378 1,590 583 

– Customer finance operations 11 1,939 


for the year 106 456 192 

Total 3,621 12,961 – 4,733 

59

Construction Opera- 

Building Machinery in progress tional 

and and and adv. leases 

land equipment payment etc 

Accumulated revaluations 

1 January 33 

Total 33 

Accumulated write-downs 

1 January 1 39 

Acquisitions of businesses 79 

Write-downs for the year 1 36 

Total 2 154 

Book value at year-end 7,363 6,578 1,094 10,679 

of which ”Machinery” 5,648 

of which “Equipment” 930 

Tax assessment value, 

buildings (in Sweden) 1,120 

equivalent book value 2,430 

Tax assessment value, 

land (in Sweden) 365 

equivalent book value 437 

Firm obligations pertaining to leasing of premises are distributed as 

follows: 

Rent payment 2007 

2001 2002 2003 2004 2005 2006 and 

thereafter 

112 112 103 94 82 74 468 

Note 9 Shares in associated companies etc 

Shares in associated companies 2001 2000 1999 

Accumulated acquisition value 332 750 739 

Accumulated share of income 387 827 639 

Book value 719 1,577 1,378 

Specification of the Groups’ holdings of shares and participations in 

associated companies etc. 

Associated company/ % Book value in Value of Scania’s share in 

corporate ID number/ owner- Parent Comp. consolidated accounts 

country of registration ship accounts 2001 2000 1999 

Svenska Volkswagen AB, 

556084-0968, Sweden 50 21 624 659 593 

Cummins-Scania High 

Pressure Injection L.L.C, 

043650113, USA 30 25 48 36 40 

WM-Data Scania AB, 50 7 45 46 34 

556084-1206, Sweden 

Swed Bus Pakistan Pvt Ltd, 

K-07897, Pakistan 50 2 2 – – 

Beers N.V., 

NL003779439B01, 

The Netherlands 1 50 – – 836 711 

Shares in associated companies 719 1,577 1,378 

Shares in other companies 76 14 10 

Convertible debenture loans 2 – 446 – 

Total 795 2,037 1,388 

1 During 2001, Scania acquired the remaining 50 percent of the shares in Beers’ 

N.V. and the company thus became a wholly owned subsidiary. 

2 Refers to two Brazilian dealership companies that were acquired in their entirety 

in January 2001. 

The value of Scania’s share in the consolidated financial statements 

using the equity accounting method and its ownership stake in the 

shareholders’ equity of associated companies totalled the same 

amount (SEK 719 m.). 

The Group’s share of undistributed accumulated profit in 

associated companies comprised part of restricted reserves 

in consolidated accounts. It amounted to SEK 387 m. (827 

and 639, respectively). 

Note 10 Interest-bearing receivables 

(long-term) 

2001 2000 1999 

Receivables in Customer 

finance operations 9,394 6,508 5,645 

Other receivables 784 804 711 

Total 10,178 7,312 6,356 

In 2000 and 1999, ‘‘Other receivables” included deposits of SEK 

107 m. and 151, respectively, with financial institutions that were 

restricted in their use by agreement with third parties. 

Note 11 Inventories 

2001 2000 1999 

Raw materials 858 781 987 

Work in progress 299 359 458 

Finished goods 6,789 6,327 5,992 

Total 7,946 7,467 7,437 

Note 12 Receivables 

2001 2000 1999 

Interest-bearing trade accounts 

receivables 988 940 650 

Receivables in Customer 

finance operations 5,803 4,543 3,530 

Sub-total, interest-bearing trade 

accounts receivable 6,791 5,483 4,180 

Trade accounts receivables 7,731 8,953 7,560 

Other receivables 1,824 1,594 1,559 

Prepaid expenses and accrued income 675 722 557 

Sub-total, other receivables 2,499 2,316 2,116 

Total 17,021 16,752 13,856 

As of 31 December 2001, receivables from associated companies 

pertaining to products and services delivered were SEK 43.2 m. 

Trade accounts payable to associated companies pertaining to 

services and products purchased were SEK 21.8 m. and 

payables pertaining to interest-bearing financing SEK 40.2 m. 

60

Note 13 Short-term investments 

2001 2000 1999 

Cash equivalents 

(maturities of less than 90 days) 895 991 1,395 

Short-term investments 1,238 948 318 

Total 2,133 1,939 1,713 

Half of the Group’s short-term investments are found in the Latin 

American subsidiaries. The remainder was related to investments of 

surplus liquidity in Europe. 

Investments totalling SEK 692 m. (866 and 653, respectively) in 

value were restricted by agreement with third parties. 

Note 14 Shareholders’ equity 

The shareholders’ equity of the Group has changed as follows: 

Unrestr. Acc. 

Restric- share- trans- 

Share ted holders’ lation 

2000 capital reserves equity diff. Total 

1 January 2,000 4,353 6,743 452 13,548 

Dividend to shareholders –1,400 –1,400 

Net income for 2000 3,080 3,080 


for the year 470 470 

Transfer between restricted 

and unrestricted equity 1,017 –1,017 

31 December 2,000 5,370 7,406 922 15,698 


1 January 2,000 5,370 7,406 922 15,698 

Dividend to shareholders’ –1,400 –1,400 

Net income for 2001 1,048 1,048 


for the year 1 649 649 

Transfer between restricted 

and unrestricted equity 2 295 –295 

31 December 2,000 5,665 6,759 1,571 15,995 

Scania AB has 100,000,000 A shares outstanding with voting 

rights of one vote per share and 100,000,000 B shares outstanding 

with voting rights of 1/10 vote per share. No provisions to restricted 

reserves are required. 

1 Translation differences for the year arise when foreign net assets are translated 

according to the current accounting method. The year’s somewhat higher translation 

differences compared to 2000 were due to the weakened Swedish krona. 

2 Transfers to restricted equity are explained mainly by increased deferred tax 

assets. 

Note 15 Provisions for pensions and similar 

commitments 

2001 2000 1999 

Provisions for FPG/PRI pensions 1,427 1,350 1,273 

Provisions for vested pensions 381 312 290 

Special pension allocation 65 64 74 

Provisions for medical care benefits 219 203 205 

Total 2,092 1,929 1,842 

The amount under “Provisions for pensions” corresponds to the 

actuarial projections of all mandatory and voluntary pension obligations. 

The Swedish plan for salaried employees is administered by 

a Swedish multi-employer pension institution, the Pension 

Registration Institute (PRI). The level of benefits and actuarial 

assumptions are established by PRI. Scania’s pension liability 

consists of the sum of the discounted current value of the 

company’s estimated future pension payments. Pension liability 

is based on current salaries. 

“Provisions for pensions” include foreign subsidiaries, whose 

pension commitments are reported in accordance with the 

principles that apply in each country, provided that they permit 

earned pension benefits to be reported as an expense. 

For obligations related to medical care benefits, which are 

attributable to its operations in Brazil, Scania applies SFAS 106, 

“Employers’ Accounting for Postretirement Benefits”. This means 

that medical care benefits, etc that are earned by the employees 

but not utilised until after retirement are expensed as they arise. 

Note 16 Deferred tax assets/liabilities 

2001 2000 1999 

Deferred tax assets 

Provisions 212 269 329 

Property, plant and equipment 171 77 66 


Tax loss carry-forwards 801 525 398 

Other 349 295 148 

Offset within tax units –933 –839 –690 

Total 963 635 502 

Deferred liabilities 

Property, plant and equipment 2,190 1,951 1,863 

Tax allocation reserve 807 873 702 

Other 327 286 169 

Offset within tax units –933 –839 – 690 

Total 2,391 2,271 2,044 

Net deferred tax liabilities 1,428 1,636 1,542 

Tax loss carry-forwards stem mainly from Latin America, France, 

England and Germany. For Latin American operations, deferred tax 

assets of SEK 510 m. related to tax loss carry-forwards were not 

reported due to a ceiling on annual future utilisation. Of the deferred 

tax assets attributable to tax loss carry-forwards, SEK 644 m. may 

be utilised without time constraints. 

In Sweden, tax laws permit provisions to an untaxed reserve 

called a tax allocation reserve. Deductions for provisions to this 

reserve are allowed up to a maximum of 25 percent of the company’s 

taxable profits. Each provision to this reserve may be freely 

withdrawn and face taxation, but must be withdrawn no later than 

the sixth year following the year the provision was made. 

Note 17 Other provisions 

2001 2000 1999 

Warranty provisions 1,439 1,245 1,267 

Other 745 555 694 

Total 2,184 1,800 1,961 

61

Note 18 Borrowings 

Borrowings for Customer finance operations are effectively 

matched against contracted payment flows with regard to currency 

and fixed-interest periods. Financing of industrial operations in 

Europe is mainly without currency risk, normally with a fixed-interest 

period of 3 months: 

Short- and long-term borrowing 

distributed by currency 1 2001 2000 1999 

SEK 12,593 10,505 8,168 

EUR 14,549 8,495 7,405 

GBP 1,698 1,417 2,540 

USD 1,806 4,567 2,245 

Other currencies 2,766 2,374 4,029 

Total 2 33,412 27,358 24,387 

1 Does not take into account any currency hedging. 

2 These amounts include SEK 21,691 m. (16,108 and 13,535, respectively) in 

borrowings for customer finance operations. The average interest rate on 

borrowings, including borrowings for customer finance operations, was 

5.9 percent (6.3 and 5.8, respectively) at year-end. 

The above loans fall due for repayment as follows: 

2002 14,504 

2003 3,385 

2004 7,145 

2005 1,273 

2006 714 

2007 and later 6,391 

Total 33,412 

Scania has a committed revolving credit facility of USD 1,850 m. 

from an international banking syndicate that expires in November 

2004. At year-end 2001, the equivalent of USD 370 m. of this facility 

was being utilised. This means that USD 1,480 m., equivalent 

to SEK 15,789 m. translated at the closing day rate, was available 

under the credit facility on December 31, 2001. 

The Group has a medium-term note programme, under 

which Scania can issue notes and bonds with maturities ranging 

from one to ten years. At year-end, the maximum amount was 

SEK 7,000 m. and SEK 3,832 m. worth of such debt securities had 

been issued under the programme. 

In conjunction with Standard & Poor’s official credit rating of 

Scania, the Group established a European medium-term note programme, 

under which Scania can issue notes and bonds in the 

international financial market. At year-end, the maximum amount 

was EUR 1,500 m. and EUR 550 m. worth of such debt securities 

had been issued under the programme in the form of a public bond 

that matures in December 2008. 

Scania also has short-term borrowing in the form of commercial 

paper in Sweden and Belgium, with maximum amounts of SEK 

6,000 m. and EUR 400 m., respectively. At year-end, SEK 5,912 m. 

and EUR 85 m., respectively, of these facilities had been utilised. 

Net indebtness 

2001 2000 1999 

Cash, bank balances and 

short-term investments 4,107 3,581 2,710 

Short-term borrowings –14,504 –11,986 –13,119 

Long-term borrowings –18,908 –15,372 –11,268 

Total –29,305 –23,777 –21,677 

Of which, attributable to 

Customer finance operations –21,515 –15,996 –13,368 

Net indebtness –7,790 –7,781 –8,309 

Note 19 Accrued expenses and prepaid 

income 

2001 2000 1999 

Accrued financial expenses 431 325 200 

Customary accrued expenses 

and prepaid income 3,440 2,891 2,186 

Prepaid income in operating leases 1 2,271 2,091 1,630 

Total 6,142 5,307 4,016 

1 Beginning with the first quarter of 2001, Scania is applying recommendation 

RR 11 of the Swedish Financial Accounting Standards Council. This means that 

when selling vehicles with fixed repurchase obligations or when selling with a 

guaranteed residual value, the customer’s payment is reported as prepaid 

income and the vehicle as an operating lease. The vehicle is then depreciated 

and the payment is reported as income successively during the obligation period. 

Note 20 Assets pledged 

2001 2000 1999 

Real estate mortgages 231 240 214 

Receivables 2 5 17 

Total 233 245 231 

All assets pledged consisted of collateral for the Group’s own liabilities. 

In 2001, all collateral was pledged to credit institutions and 

amounted to SEK 23 m. for short-term borrowings and SEK 210 m. 

for long-term borrowings. 

Note 21 Contingent liabilities 

2001 2000 1999 

FPG/PRI pension guarantee obligations 

on behalf of Group companies 27 27 25 

FPG/PRI pension guarantee obligations 

on behalf of associated companies 159 147 138 

Loan guarantees 92 144 106 

Discounted bills and contracts 140 133 112 

Other guarantees 437 430 264 

Total 855 881 645 

In addition to the above contingent liabilities, the Group has issued 

vehicle repurchase guarantees worth SEK 804 m. (727 and 737, 

respectively) to customers’ creditors. 

Repurchase obligations related to guaranteed residual values in 

operating leases amounted to SEK 7,260 m. (5,449 and 4,415, 

respectively). 

The Group has given repurchase commitments without risks 

related to future prices to Svenska Volkswagen Finans AB in an 

amount estimated at SEK 452 m. (601 and 610, respectively). 

The Group is party to legal proceedings and related claims 

arising in the normal course of business. Management believes, 

however – based on its assessments of these claims – that the 

ultimate resolution of these proceedings will not have a material 

impact on the Group’s financial position. 

62

Note 22 Items not affecting cash flow 

Items not affecting cash flow 2001 2000 1999 

Depreciation 2,157 1,999 1,909 

Value adjustment, short-term leasing 161 44 39 

Unrealised exchange rate differences –58 –66 –13 

Doubtful receivables 263 61 100 

Share of income of associated companies –59 –357 –326 

Share of taxes of associated companies 17 115 103 

Dividends from associated companies 70 98 114 

Deferred tax –306 68 47 

Deferred profit recognition, 

operating leases –120 154 315 

Other –1 –119 34 

Total 2,124 1,997 2,322 

Change in working capital 

Interest-bearing long-term receivables 97 –32 50 

Other receivables 1,876 –1,362 –2,796 


Provisions for pensions 153 75 –95 

Advance payments from customers 185 –40 –84 

Trade accounts payable –519 699 131 

Other liabilities and provisions –372 170 –4 

Total 1,895 –416 –2,105 

Net investments excluding acquisitions/divestments of 

businesses 

Investments in tangible fixed assets –2,405 –1,968 –1,965 

Divestments of tangible fixed assets 527 447 311 

Total –1,878 –1,521 –1,654 

Net investment through acquisitions/divestments of 

businesses 

Proceeds from sale of shares 

(after subtracting liquid assets in 

divested businesses) 1 –42 24 –7 

Acquisitions of businesses 1 –887 –53 –1,114 

Acquisitions of convertible 

debenture loans 2 – –428 – 

Total –929 –457 –1,121 

Change in net indebtness through financing activities 

Net change in short-term borrowings –782 –2,070 –134 

Repayment of long-term borrowings –1,248 –190 –536 

Increase in long-term borrowings 4,032 4,221 5,033 

Net change in restricted deposits 117 59 68 

Total 2,119 2,020 4,431 

Interest and taxes paid 2001 2000 1999 

Interest received during the year 294 415 382 

Interest paid during the year 1,035 882 909 

Taxes paid during the year 1,049 1,373 1,320 

1 During 2001, Scania acquired the remaining 50 percent of its distributor in the 

Netherlands as well as dealership companies in Brazil, Denmark and Lithuania. 

The acquisition of the Brazilian dealerships occurred through conversion 

of debenture loans. During the year, Scania sold dealerships in Finland and 

Sweden. According to acquisition analyses, the value of the liabilities and 

assets acquired/divested was as follows: 

Acquisitions Divestments 

Tangible and intangible fixed assets 1,938 –76 

Inventories 634 –33 

Receivables 321 –20 

Liquid assets 178 –70 

Borrowings 562 56 

Other liabilities and provisions –1,308 110 

Shares in associated companies and other companies 60 – 

Gain/loss from divestments of companies – 5 

Book value of previously owned holdings 

in new Group company –835 – 

Puchase price paid 1,550 –28 

Of which, paid through conversion of debenture loans –485 – 

Liquid assets in acquired/ divested companies –178 70 

Impact on consolidated liquid assets 

and short-term investments 887 42 

2 Refers to two Brazilian dealership companies that were acquired in their 

entirety in January 2001. 

Note 23 Wages, salaries and other 

remuneration; average number of 

employees 

Wages, salaries and other remuneration 2001 2000 1999 

Operations in Sweden: 

Boards of Directors, Presidents and 

Executive Vice Presidents 44 53 35 

– Of which, bonuses 17 25 6 

Other employees 3,139 3,155 3,000 

Operations outside Sweden: 

Boards of Directors, Presidents and 

Executive Vice Presidents 164 132 124 

– Of which, bonuses 20 15 19 

Other employees 3,949 3,288 2,525 

Total 7,296 6,628 5,684 

Pension costs and other 

mandatory payroll fees 2,863 2,358 2,148 

– Of which, pension costs 1 725 485 365 

Total wages, salaries and remuneration, 

pension costs and other mandatory 

payroll fees 10,159 8,986 7,832 

Average number of employees 2001 2000 1999 

Operations in Sweden: 

Average number of employees 11,943 12,060 11,440 


Number of countries 49 43 45 

Average number of employees 15,038 13,556 11,694 

Average total number of employees 26,981 25,616 23,134 

Average number of 

employees, by country 2001 2000 1999 

Operations in Sweden 11,943 12,060 11,440 

– of whom men 10,194 10,333 9,965 

– of whom women 1,749 1,727 1,475 

1 Of the pension cost in the consolidated financial statements, SEK 22 m. 

(25 and 35, respectively) was for Boards of Directors and Presidents in the 

Scania Group. At year-end, the total pension commitment was SEK 81 m. 

for this category. 

63

Average number of employees 2001 2000 1999 


The Netherlands 2,364 1,510 1,614 

Brazil 2,050 2,151 1,932 

Great Britain 1,632 1,586 1,467 

Germany 927 695 591 

France 879 871 918 

Norway 834 863 217 

Argentina 760 833 1,040 

Finland 691 743 3 

Belgium 665 583 684 

Denmark 475 551 680 

Austria 425 396 349 

Poland 416 406 332 

Mexico 309 150 73 

Australia 290 295 303 

Switzerland 275 272 255 

South Africa 261 230 169 

Italy 181 174 174 

South Korea 163 121 69 

Russia 160 108 96 

Spain 130 102 84 

Czech Republic 127 107 95 

Morocco 107 87 73 

27 countries < 100 employed 2 917 722 476 

Total 15,038 13,556 11,694 

– of whom men 13,320 11,987 10,357 

– of whom women 1,718 1,569 1,337 

Average total number of employees 26,981 25,616 23,134 

2 In 1999 and 2000, 22 countries had fewer than 100 Scania employees. 

Number of employees on 31 Dec 2001 2000 1999 

European operations 

Production operations and corporate 

staff units 13,321 14,093 13,532 

Sales and service companies 10,583 9,391 9,001 

Total, European operations 23,904 23,484 22,533 

Latin American operations 4,199 3,688 3,660 

Customer finance operations 239 194 166 

Total 28,342 27,366 26,359 

– of whom, contract employees 766 1,857 1,498 

2001 2000 1999 

Wages, salaries and other Wages, salaries Mandatory pay- Wages, salaries Mandatory pay- Wages, salaries Mandatory payremuneration, 

pension costs and and other roll fees (of and other roll fees (of and other roll fees (of 

other mandatory payroll fees by country remuneration which, pensions) remuneration which, pensions) remuneration (which, pensions) 

Operations in Sweden 3,183 1,875 (535) 3,208 1,543 (320) 3,035 1,442 (265) 


The Netherlands 676 138 (36) 355 78 (31) 366 84 (34) 

Great Britain 578 92 (33) 517 73 (25) 290 71 (21) 

Brazil 441 171 (0) 489 172 (0) 385 133 (0) 

Germany 309 66 (7) 218 47 (9) 193 45 (10) 

Norway 303 49 (11) 262 32 (6) 70 7 (0) 

France 231 140 (41) 200 117 (34) 221 139 (15) 

Argentina 208 91 (0) 219 88 (0) 207 78 (0) 

Finland 186 62 (33) 177 62 (33) 1 0 (0) 

Denmark 185 22 (9) 188 16 (8) 216 28 (4) 

Belgium 166 53 (0) 148 49 (0) 137 50 (0) 

Austria 156 1 (1) 131 2 (2) 121 2 (1) 

Switzerland 122 26 (0) 110 22 (0) 95 22 (0) 

37 countries with < SEK 100 m. 3 552 77 (19) 406 57 (17) 347 47 (15) 

Total 4,113 988 (190) 3,420 815 (165) 2,649 706 (100) 

Group total 7,296 2,863 (725) 6,628 2,358 (485) 5,684 2,148 (365) 

Refunds of surplus pension premiums from Alecta (formerly SPP) during 2000, totalling SEK 124 m., are expected to be utilised by 2003. 

3 In 2000, 31 countries had less than SEK 100 m. in wages, salaries and other 

remuneration. In 1999, the figure was 29 countries. 

Note 24 Information regarding 

compensation to executive 

officers and auditors 

According to the decision of the Annual Meeting, the 2001 compensation 

to the members of the Board of Directors elected by the 

Annual Meeting amounted to SEK 2,625,000. The Chairman 

received compensation of SEK 700,000. 

Scania’s regular incentive program for executive officers, among 

them the President and CEO, which was approved by the Board in 

1997, includes a bonus based on operating return, defined as 

Scania Group net income after subtracting the cost of shareholders’ 

equity. Earnings for 2001 will not result in any bonus outcome. 

The outcome of the regular incentive programme that applied 

to 2000 was settled during 2001. The President’s portion of this 

programme was allocated for a pension, by means of a premium 

of SEK 4,885,125. 

About 50 executive officers were covered by an extra bonus 

programme for 2000. The purpose of the bonus programme was 

to retain executive officers and create strong motivation in the 

turbulent ownership situation that prevailed during 2000 in conjunction 

with Volvo’s buyout of Scania. The President’s portion 

of this programme was equivalent to one year’s fixed salary. In 

addition, the President was paid an extra year’s fixed salary on 

the condition that he was employed by the company on 31 

December 2001. These amounts were allocated for future pensions. 

The salary paid to the President during 2001 (including 

taxable benefits) totalled SEK 5,092,622. His fixed salary of SEK 

5,000,000 remained unchanged during 2001. 

The pension plan in addition to the ITP occupational pension, 

64

with a retirement age of 65 for executive officers is a definedcontribution 

plan. Benefits accrue by means of annual payment of 

premiums by the company, totalling 15–20 percent of fixed salary in 

the 20–30 base amount interval (base amount = basbelopp as 

defined by Swedish social insurance legislation) and 25–30 percent 

of fixed salary above 30 base amounts. Added to this is the value 

of annual employee co-payments, amounting to 2–5 percent of 

fixed salary. The retirement age according to the plan is 60 for the 

Executive Board and 62 for other executive officers covered by the 

plan. 

The President – in addition to the ITP plan with a retirement age 

of 65 – is entitled to a defined contribution pension programme. 

The pension cost to the company consists of pension premiums 

amounting to 35 percent of fixed salary for as long as the President 

remains an employee of the company. 

The President holds a non-transferable employee stock option 

without market value, entitling him, after five years but no later than 

after seven years, to purchase a maximum of 220,000 shares in 

Scania AB at a price of SEK 196 per share. The employee stock 

option has been secured financially in the market, so that Scania’s 

costs for this programme are known. The option carries an 

entitlement to purchase existing Series B shares and thus will not 

lead to dilution for Scania’s shareholders. 

If he resigns of his own volition, or is terminated by the company, 

the President is entitled to his salary for a six month notice period. 

In light of the complex ownership structure of Scania AB and at 

the request of the new main owner (Volkswagen AG), during 2001 

the Board’s committee for compensation issues approved a fiveyear 

employment agreement with the President. The new agreement, 

which stipulates the conditions of the President’s employment 

until 30 March 2006, prescribes that an annual extra pension 

provision of SEK 4,410,000 will be made during each of the five 

years even if employment should cease due to termination by the 

company. In such a case, the other agreed salary and incentive 

benefits will also be provided for the period. As a consequence of 

this agreement, a pension provision of SEK 4,410,000 was made 

during 2001. 

The employment agreement with the President will end automatically 

twelve months after Volkswagen AG has reduced its 

holding in Scania AB – direct or indirect – so that it is below 5 percent. 

In such a case, the above-stated benefits shall be provided. 

The other members of the Executive Board, if terminated by the 

company, are entitled to severance pay equivalent to a maximum 

of two years’ salary, in addition to their salary during the six-month 

notice period. If they obtain new employment within 18 months, 

counting from their termination date, their severance pay ceases. 

In case of a substantial change in the ownership structure of 

Scania, the members of the Executive Board are entitled to resign 

of their own volition with severance pay amounting to two years’ 

salary. 

Fees and other compensation to external auditors reported as 

expenses during the year are shown in the following table: 


Auditing Other Auditing Other 

assignments assignments assignments assignments 

KPMG 18 5 11 3 

Ernst & Young 5 3 3 1 

Other auditors 11 7 9 4 

Total 34 15 23 8 

Note 25 Net assets outside Sweden 

Currency 2001 2000 1999 

Europe 

EUR 3,523 5,383 4,236 

GBP 650 719 54 

Other European currencies 1,027 1,130 1,006 

Latin America 

USD –701 477 1,262 

Real, Peso and other local currencies 3,512 3,097 2,600 

Other countries 

USD 87 111 72 

Other currencies 690 559 344 

Total 8,788 11,476 9,574 

Net assets in Real, Peso and other currencies in Latin America 

included SEK 3,586 m. in fixed assets. 

Note 26 Currency exposure in operating 

income, by region 

The table shows the net amount of the Scania Group’s operating 

revenues and operating expenses exposed to foreign currencies, 

by region/country. 

2001 2000 1999 

Europe 

EMU countries (local currencies) 5,132 6,856 7,218 

Great Britain (local currency) 2,730 3,290 3,049 

Denmark/Norway (local currencies) 1,341 1,014 1,325 

Switzerland (local currencies) 717 770 492 

Central and eastern Europe 

(local currencies, EUR) 2,081 1,552 1,190 

Total, Europe 12,001 13,482 13,274 

Asia/Oceania (USD, AUD, EUR) 1,945 1,871 883 

Africa (USD, ZAR, EUR) 578 517 555 

Latin America (USD) -394 248 15 

Total 14,130 16,118 14,727 

Not 27 Effect of exchange rate differences 

on net income 

The amounts that affected net income for 2001 were exchange 

rate differences minus exchange rate losses on the difference 

between the invoice exchange rate and the exchange rate on the 

payment date for receivables and liabilities, plus exchange rate differences 

that arose from applying the monetary vs non-monetary 

translation method. Net income for 2001 was affected by exchange 

rate differences as presented in the following table: 

Sales 243 

Costs of goods sold –133 

Selling expenses 53 

Operating income 163 

Financial income and expenses –76 

Taxes –83 

Effect on net income 4 

Apart from the above exchange rate differences, compared to 

2000, the total effect on operating income of changes in exchange 

rates including hedging was estimated at about SEK 700 m. in 

European operations. For Latin American operations, direct and 

indirect effects of changes in exchange rates adversely affected 

operating income by SEK 400 m. 

For information on accumulated exchange rate differences that are 

charged or credited directly to shareholders’ equity, see Note 14. 

65

Notes to the Parent Company financial statements 

All amounts are stated in millions of Swedish kronor (SEK m.) unless otherwise indicated. 

Note 1 Financial income and expenses 

2001 2000 1999 

Interest income 

From subsidiaries 107 54 6 

Sub-total 107 54 6 

Interest expenses 

To subsidiaries – –2 –17 

Interest portion of forward exchange 

contracts used for hedging net assets –2 –10 –8 

Sub-total –2 –12 –25 

Exchange rate differences on forward exchange contracts 

for hedging net assets of 

foreign subsidaries –54 –55 –23 

Total financial income and expenses 51 –13 –42 

Dividends, Group contributions etc 

From Group companies 650 3,184 3,569 

From other companies – – 50 

Sub-total 650 3,184 3,619 

Total 701 3,171 3,577 

Note 3 Shareholders’ equity 

Unrestr. 

Share Statutory shareholders’ 

capital reserve equity Total 

Balance on 31 Dec 1999 2,000 1,120 8,024 11,144 


Net income for 2000 1,826 1, 826 

Balance on 31 Dec 2000 2,000 1,120 8,450 11,570 


Net income for 2001 703 703 

Balance on 31 Dec 2001 2,000 1,120 7,753 10,873 

Note 2 Shares in Group companies 

Book value Book value Book value 

Subsidiary/corporate ID number/country of registration Ownership, % 2001 2000 1999 

Scania CV AB, 556084-0976, Sweden 100.0 8,401 8,401 8,401 

Scania Latin America Ltda, 635,010,727,112, Brazil 100.0 2,257 2,257 2,257 

Scania Argentina S.A, 30-51742430-3, Argentina 73.6 1 298 298 298 

Scania del Peru S.A, 101, 36300, Peru 54.7 1 15 15 15 

Total 2 10,971 10,971 10,971 

1 The Group’s ownership interest is 100 percent. 2 The acquisition value of these shares for tax purposes is significantly lower than their book value. 

Scania CV AB, in turn, directly or indirectly owns a number of sales 

companies, of which the largest are located in Australia, Austria, 

Belgium, Denmark, France, Germany, Great Britain, Italy, the 

Netherlands, Norway, Spain and Sweden. It also owns production 

facilities in Denmark, France, the Netherlands and Poland. 

Note 4 Untaxed reserves 

2001 2000 1999 

Tax allocation reserve 2,836 3 ,111 2,477 

Total 2,836 3,111 2,477 

SEK 794 m. (871 and 693, respectively) of ‘‘Untaxed reserves” 

consists of deferred taxes. Deferred taxes are not included in the 

Parent Company balance sheet, but are included in the consolidated 

balance sheet. 

Note 5 Contingent liabilities 

2001 2000 1999 

FPG/PRI pension guarantees 

on behalf of Group companies 1,456 1,377 1,298 

FPG/PRI pension guarantees 

on behalf of associated Group 

companies 159 148 138 

Loan guarantees on behalf of 

Group companies 1 25,257 17,951 16,703 

Total 26,872 19,476 18,139 

1 Most of the item is related to loan guarantees on behalf of borrowings 

by Scania CV AB. 

A complete list of associated companies and other companies 

was included in the annual report filed with the Swedish Patent 

and Registration Office and may be obtained from Scania’s 

Head Office in Södertälje, Group Financial Reporting. 

Not 6 Information regarding compensation 

to executive officers and auditors 

The President of Scania AB and the other members of the 

executive management hold identical positions in Scania 

CV AB. Wages, salaries and other remuneration are paid by 

Scania CV AB. The reader is therefore referred to Notes 23 

and 24 to the consolidated financial statements. 

Compensation of SEK 11,000 was paid to outside auditors 

in 2001 with respect to the Parent Company. 

66

Financial information in accordance with U.S. generally 

accepted accounting principles (U.S. GAAP) 

The Scania Group’s consolidated accounts have been 

prepared in compliance with Swedish accounting practices, 

which differ in certain respects from U.S. GAAP. 

The differences that have a material effect on the net 

income and shareholders’ equity of the Scania Group are 

described below. The Group annually submits Form 20F 

to the Securities and Exchange Commission (SEC). 

(a) Goodwill 

In June 1991, Saab-Scania AB became a wholly owned 

subsidiary of Investor AB through an acquisition of all outstanding 

shares in the market. In January 1994, the net 

assets of Scania’s operations were transferred to a separate 

company. 

According to U.S. GAAP, push-down accounting is 

applied in such instances, which means that a goodwill 

value plus the tax effects of pre-1995 equity hedges is 

assigned to the Scania operations. Goodwill is amortised 

over 40 years. 

(b) Pension costs 

The pension commitments reported in the consolidated 

financial statements have been based on actuarial calculations 

in accordance with Swedish accounting principles. 

The principles of U.S. GAAP are more detailed and 

prescribe, among other things, the use of the final salary 

method known as the ‘‘projected unit credit method”. 

There are also differences concerning actuarial assumptions, 

the treatment of actuarial gains/losses and the 

reporting of changes in assumptions. 

Refunds of surplus premiums from the Swedish 

retirement insurance company Alecta (formerly SPP) were 

allocated to the company during 2000. According to 

Swedish accounting principles, a still unused portion of 

the surplus was included in revenue and reported as a 

receivable in 2000. According to U.S. GAAP, a revenue 

item and an asset may not be reported until the period 

the allocated amount can be utilised. During 2001 a portion 

of the remaining surplus was utilised, at which time 

the amount was reported as revenue in conformity with 

the rules in U.S. GAAP. 

(c) Financial instruments and hedging 

From 1 January 2001 onward, the company has applied 

SFAS 133 ‘‘Accounting for Derivative Instruments and 

Hedging Activities” and SFAS 138 ‘‘Accounting for 

Certain Derivative Instruments and Certain Hedging 

Transactions, an Amendment to SFAS 133” in its U.S. 

GAAP reporting. 

According to U.S. GAAP, the reporting of gains/ 

losses pertaining to forward contracts may be delayed 

only if the contract is classified as, and fulfils the criteria for, 

an effective hedge. If the contracted amount exceeds the 

transaction that the hedge pertains to or is not classified 

as an effective hedge, the contract is reported at fairmarket 

value and unrealised gains/ 

losses are reported as income. 

Derivative instruments, including ‘‘embedded derivatives”, 

shall be reported in the balance sheet at their fair 

value as assets/liabilities. A company must classify, document 

and assess whether the effectiveness of a hedge 

justifies reporting it according to the principles of hedge 

accounting. The way that changes in the fair value of a 

derivative are to be reported depends on the purpose of 

the derivative and its classification. 

Gains/losses pertaining to derivatives intended to 

hedge the actual value of assets and liabilities, ‘‘fair-value 

hedges”, are reported under income. If a derivative that is 

used to hedge future cash flows is classified as effective, 

changes in fair value are reported as part of shareholders’ 

equity. If the derivative can no longer be classified as 

effective, the changes are reported directly under income. 

For derivatives that are used to hedge net investments 

abroad and that are classified as effective, gains/ 

losses are reported as part of shareholders’ equity. 

Gains/losses from other derivatives are reported under 

income. 

Latin American operations are an integral part of 

Scania, and translation of their financial statements to 

Swedish kronor occurs according to the monetary/nonmonetary 

method of accounting. According to U.S. 

GAAP, translation of Latin American operations must 

occur according to the current method. 

(d) Capitalisation of expenses 

In accordance with Swedish accounting principles, the 

company has capitalised pre-operating expenses pertaining 

to a production facility. According to U.S. GAAP, 

such expenses are charged to income in the period they 

actually arise. 

(e) Reporting of divestments 

During 2000, Scania reported the divestment of properties. 

According to U.S. GAAP, divestments are not to be 

reported until full proceeds have been received and the 

transactions have thereby been completed in their 

entirety. 

67

(f) Change in tax rate 

Swedish accounting principles differ from U.S. GAAP 

with regard to which country’s tax rate shall be used 

when calculating such items as internal profit on inventory. 

Sweden uses the tax rate of the purchasing country 

while U.S. GAAP reports the tax incurred by the selling 

company. 

(g) Personnel cutback expenses 

During 2001, Scania made provisions for personnel 

cutback expenses according to Swedish accounting 

principles. In U.S. GAAP, the information requirements 

that must be met to allow such provisions to be made 

are much stricter than according to Swedish accounting 

practices. Scania did not entirely meet these requirements, 

with respect to terms of compensation, and a difference 

compared to U.S. GAAP thus arose. 

Supplementary information 

In June 2001 the Financial Accounting Standards Board 

(FASB) issued SFAS 141, ‘‘Business Combinations”, and 

SFAS 141, ‘‘Goodwill and Other Intangible Assets”. SFAS 

141 prescribes the use of the acquisition accounting 

method in cases of acquisitions and mergers. It also 

specifies the conditions for allowing acquired intangible 

fixed assets to be reported as a separate item. As provided 

by SFAS 142, goodwill and intangible fixed assets 

with indefinite useful lives will no longer be amortised, but 

instead will be tested at least annually and amortised in 

case of impairment. 

The Scania Group introduced SFAS 141 on 1 July 

2001 in its U.S. GAAP reporting. SFAS 142 will be 

applied beginning on 1 January 2002 when it enters into 

force. This means that goodwill and intangible assets with 

indefinite useful lives acquired after 30 June 2001 will not 

be amortised. Amortisation has been carried out on 

goodwill and intangible assets acquired before 1 July 

2001. 

SFAS 143, ‘‘Accounting for Asset Retirement Obligations”, 

was also issued in June 2001. According to SFAS 

143, the company must report the fair value of a liability 

that arises in connection with the retirement of a tangible 

asset during the period when a legally binding obligation 

occurs. This applies regardless of whether the related liability 

is incurred due to acquisition, construction, development 

and/or normal operation. When the liability is 

incurred, the corresponding asset is also recognised and 

depreciated over the useful life of the fixed asset. SFAS 

enters into force on 1 January 2003. 

In August 2001, SFAS 144, ‘‘Accounting for the 

Impairment of Disposal of Long-Lived Assets”, was 

issued. SFAS 144 addresses financial accounting and 

reporting for the impairment or disposal of long-lived 

(fixed) assets. This statement requires the value of longlived 

assets be tested whenever events indicate that the 

carrying amount (book value) of an asset is not recoverable. 

Companies must separately report operations that 

have been disposed of. This also applies to a portion of a 

unit that has either been disposed of through sale, discontinuation 

or spin-off to owners, or that is being held 

for sale. SFAS 144 enters into force on 1 January 2002. 

Scania is working to analyse the effects of the introduction 

of these new accounting principles. 

The table summarises the changes in Scania’s net 

income and shareholders’ equity that would arise from 

the application of U.S. GAAP: 

Net income 2001 2000 1999 

Net income according 

to Swedish GAAP 1,048 3 080 3 146 

Goodwill (a) –12 –12 –12 

Pension costs (b) 34 –130 –43 

Financial instruments and hedging (c) 3 47 175 

Capitalisation of expenses (d) – – 10 

Reporting of divestments (e) 92 –92 – 

Change in tax rates (f) –100 – – 

Personel cutback expenses (g) 65 – – 

Tax effect of U.S. GAAP 

adjustments 8 93 –2 

Change in net income 90 –94 128 

Net income according 

to U.S. GAAP 1,138 2,986 3,274 

Earnings per share according 

to U.S. GAAP 5.69 14.93 16.37 

Shareholders’ equity 2001 2000 1999 

Shareholders’ equity according 

to Swedish GAAP 15,995 15,698 13,548 

Reporting of goodwill etc (a) 300 312 324 

Pension costs (b) 68 91 200 

Financial instruments 

and hedging (c) –1,768 –905 –769 

Capitalisation of expenses (d) – – – 

Reporting of divestments (e) – –92 – 

Change in tax rates (f) –100 – – 

Personel cutback expenses (g) 65 – – 

Tax effect of U.S. GAAP 

adjustments 45 20 –52 

Change in shareholders’ equity –1,390 –574 –297 

Shareholders’ equity according 

to U.S. GAAP 14,605 15,124 13,251 

68

Proposed 

distribution of earnings 

Auditors’ report 

The Scania Group’s unrestricted shareholders’ equity according 

to the consolidated balance sheet amounts to SEK 8,330 m., 

of which net income for the year is SEK 1,048 m. The Board of 

Directors and the President propose that the following amounts 

at the disposal of the Annual Meeting: 

SEK m. 

Retained earnings 7,050 

Net income for the year 703 

Total 7,753 

be distributed as follows: 

To the shareholders, a dividend of SEK 3.50 per share 700 

To be carried forward 7,053 

Total 7,753 

After implementing the proposed distribution of earnings, the 

shareholders’ equity of the Parent Company is as follows: 

SEK m. 

Share capital 2,000 

Statutory reserve 1,120 

Retained earnings 7,053 

Total 10,173 

Södertälje, 11 March 2002 

Dr. Ferdinand Piëch 

Chairman 

Peggy Bruzelius Clas Åke Hedström Rolf Stomberg 

Lothar Sander Kjell Wallin Marcus Wallenberg 

Detlef Wittig Cees J.A. van Lede Jan Westberg 

Leif Östling 


Our auditors’ report was submitted on 14 March 2002. 

Caj Nackstad 

Gunnar Widhagen 

Authorised Public Accountant Authorised Public Accountant 

To the Annual General Meeting of the shareholders of 

Scania AB (publ). Corporate ID number: 556184-8564. 

We have audited the annual accounts, the consolidated 

accounts, the accounting records and the 

administration of the Board of Directors and the 

President of Scania AB (publ.) for the financial year 

2001. These accounts and the administration of the 

company are the responsibility of the Board of 

Directors and the President. Our responsibility is to 

express an opinion on the annual accounts, the 

consolidated accounts and the administration based 

on our audit. 

We conducted our audit in accordance with 

generally accepted auditing standards in Sweden. 

Those standards require that we plan and perform the 

audit to obtain reasonable assurance that the annual 

accounts and the consolidated accounts are free of 

material misstatement. An audit includes examining, 

on a test basis, evidence supporting the amounts 

and disclosures in the accounts. An audit also includes 

assessing the accounting principles used and their 

application by the Board of Directors and the President, 

as well as evaluating the overall presentation of information 

in the annual accounts and the consolidated 

accounts. As a basis for our opinion concerning 

discharge from liability, we examined significant 

decisions, actions taken and circumstances of the 

company in order to be able to determine the liability, 

if any, to the company of any Board member or the 

President. We also examined whether any Board 

member or the President has, in any other way, acted 

in contravention of the Companies Act, the Annual 

Accounts Act or the Articles of Association. We believe 

that our audit provides a reasonable basis for our 

opinion set out below. 

The annual accounts and the consolidated 

accounts have been prepared in accordance with the 

Annual Accounts Act and, thereby, give a true and 

fair view of the company’s and the group’s financial 

position and results of operations in accordance with 

generally accepted accounting principles in Sweden. 

We recommend to the Annual General Meeting of 

shareholders that the income statements and balance 

sheets of the parent company and the group be 

adopted, that the profit for the parent company be 

dealt with in accordance with the proposal in the 

Report of the Directors and that the members of the 

Board of Directors and the President be discharged 

from liability for the financial year. 

Södertälje, 14 March 2002 

Caj Nackstad 

Authorised Public Accountant 

KPMG 


Authorised Public Accountant 

Ernst & Young AB 

69

Sales and income per quarter 

January – March April – June July – September October – December 

2001 2000 1999 1998 2001 2000 1999 1998 2001 2000 1999 1998 2001 2000 1999 1998 

Sales, units 

Trucks 10,893 12,054 12,013 10,679 11,833 13,557 11,039 11,881 9,166 10,900 10,223 10,080 11,767 15,807 13,376 12,913 

Buses 834 952 897 990 1,261 1,084 920 1,160 1,178 869 957 958 1,399 1,269 989 1,009 

Total 11,727 13 ,006 12 ,910 11,669 13 ,094 14 ,641 11,959 13 ,041 10 ,344 11,769 11,180 11,038 13,166 17,076 14,365 13,922 

Sales, SEK m. 

European operations 10,101 9,540 9,013 7,702 10 ,909 10,372 8,433 8,310 9,182 8,142 7,867 7,233 12,304 12,043 9,728 9,573 

Latin American operations 1,260 1,120 962 1,404 1,570 1,421 1,139 1,658 1,387 1,619 1,193 1,709 1,589 1,944 1,266 1,380 

Less intra-Group sales –279 –305 –183 –498 –276 –417 –249 –431 –275 –436 –292 –404 –259 –303 –318 –215 

Total Scania products 11,082 10 ,355 9,792 8,608 12,203 11,376 9,323 9,537 10,294 9,325 8,768 8,538 13,634 13,684 10,676 10,737 

Car operations 1,323 1,695 1,257 1,322 1,585 1,871 1,561 1,538 1,413 1,581 1,210 1,394 1,531 1,511 1,457 1,471 

Scania Group total 12,405 12,050 11,049 9,930 13,788 13,247 10,884 11,075 11,707 10,906 9,978 9,932 15,165 15,195 12,133 12,209 

Operating income, SEK m. 

European operations 994 1,133 1,244 761 669 1,003 1,311 978 514 791 1,122 860 802 1,694 1,303 1,314 

Latin American operations –121 –122 –96 –216 –144 –61 –158 –55 –211 35 –68 –96 –425 157 –6 –295 

Customer finance operations 70 38 30 23 72 42 39 15 81 46 32 25 55 53 39 28 

Total Scania products 943 1,049 1,178 568 597 984 1,192 938 384 872 1,086 789 432 1,904 1,336 1,047 

Car operations 9 56 62 61 53 67 71 72 18 29 53 62 31 123 67 55 

Scania Group total 952 1,105 1,240 629 650 1,051 1,263 1,010 402 901 1,139 851 463 2,027 1,403 1,102 

Income after financial 

items, SEK m. 819 955 1,110 552 407 891 1,130 937 298 742 984 753 17 1,866 1,276 972 

Net income SEK m. 573 661 770 390 265 616 784 664 199 514 709 526 11 1,289 883 670 

Earnings per share, SEK 2.87 3.31 3.85 1.95 1.33 3.08 3.92 3.32 0.99 2.57 3.55 2.63 0.05 6.45 4.42 3.35 


European operations 9.8 11.9 13.8 9.9 6.1 9.7 15.5 11.8 5.6 9.7 14.3 11.9 6.5 14.1 13.4 13.6 

Latin American operations –9.6 –10.9 –10.0 –15.4 –9.2 –4.3 –13.9 –3.3 –15.2 2.2 –5.7 –5.6 –26.7 8.1 –0.5 –21.4 

Scania products 8.5 10.1 12.0 6.6 4.9 8.6 12.8 9.8 3.7 9.4 12.4 9.2 3.2 13.9 12.5 9.7 

Car operations 0.7 3.3 5.0 4.6 3.3 3.6 4.5 4.7 1.3 1.8 4.4 4.4 2.0 8.1 4.6 4.0 

Total 7.7 9.2 11.2 6.3 4.7 7.9 11.6 9.1 3.4 8.3 11.4 8.6 3.1 13.3 11.6 9.0 

70

Key financial ratios 1 and definitions 

2001 2000 1999 1998 

Earnings per share, SEK 5.24 15.40 15.73 11.25 

Earnings per share according to U.S. GAAP, SEK 5.69 14.93 16.37 11.21 

Return on shareholders’ equity, % 6.5 21.6 25.1 20.7 

Profit margin, % 4.7 10.5 12.0 8.7 

Capital turnover rate, times 1.80 1.88 1.77 1.99 

Return on capital employed, % 8.4 19.7 21.2 17.3 

Debt/equity ratio 0.49 0.50 0.61 0.55 

Interest coverage, times 2.2 5.0 5.9 6.1 

Equity/assets ratio, % 23.4 25.8 25.3 25.8 

1 Unless otherwise indicated, calculations are based on an average for five measurement points (quarters). 

Earnings per share 

Net income by the number of shares. 

Return on shareholders’ equity 

Net income as a percentage of shareholders’ equity. 

Profit margin 

Operating income excluding Customer finance operations 

plus financial income as a percentage of sales. 

Capital turnover 

Sales divided by capital employed (total assets less 

non-interest-bearing liabilities), with Customer finance 

operations reported according to the equity accounting 

method. 

Return on capital employed 

Operating income excluding Customer finance operations 

plus financial income as a percentage of capital 

employed, with customer finance operations reported 

according to the equity accounting method. 

Net debt/equity ratio 

Short- and long-term borrowings (excluding pension liabilities 

and net indebtness in Customer finance operations) 

less liquid assets, divided by shareholders’ equity. 

Interest coverage 

Operating income plus financial income divided by 

financial expenses. 

Equity/asset ratio 

Shareholders’ equity as a percentage of total assets, 

including Customer finance operations, on each 

respective balance sheet date. 

71

Multi-year statistical review 

SEK m. unless otherwise indicated 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 

Sales by market area 

Western Europe 35,635 35,370 33,146 28,874 23,102 21,009 21,715 14,880 10,920 11,424 12,218 12,838 

Central and eastern Europe 2,624 1,826 1,330 1,814 1,398 827 732 266 195 289 133 114 

Europe 38,259 37,196 34,476 30,688 24,500 21,836 22,447 15,146 11,115 11,713 12,351 12,952 

Latin America 5,533 5,472 4,196 5,957 6,784 4,800 5,742 6,109 4,619 3 ,040 2,566 2,920 

Asia 2,898 2,390 1,118 1,018 1,932 1,740 1,904 1,504 1,171 1 ,084 2,286 863 

Other markets 2,407 2,107 1,835 1,924 1,871 1,578 1,623 1,329 1,062 715 787 936 

Revenue deferral 1 –1,884 –2,425 –3,066 –2,166 –1,783 –1,160 –568 

Total, Scania products 47,213 44,740 38,559 37,421 33,304 28,794 31,148 24,088 17,967 16,552 17,990 17,671 

Sales by area of operations 

European operations 42,496 40,097 35,041 32,818 27,278 24,496 25,979 18,542 13,651 13,682 15,626 14,914 

Latin America operations 5,806 6,104 4,560 6,151 6,973 4,754 5,933 6,108 4,619 3,040 2,566 2,920 

Less intra-Group sales –1,089 –1,461 –1,042 –1,548 –947 –456 –764 –562 –303 –170 –202 –163 

Total, Scania products 47,213 44,740 38,559 37,421 33,304 28,794 31,148 24,088 17,967 16,552 17,990 17,671 

Car operations 5,852 6,658 5,485 5,725 4,632 3,776 3,124 2,560 2,222 1,470 1,399 1,377 

Total 53,065 51,398 44,044 44,146 37,936 32,570 34,272 26,648 20,189 18,022 19,389 19,048 


European operations 2,979 4,621 4,980 3,913 2,309 2,276 4,598 2,816 488 1,069 1,452 2,072 

Latin American operations –901 9 –328 –662 407 511 413 915 483 242 136 441 

Customer finance operations 278 179 140 91 73 55 98 5 –91 –38 –23 – 

Total, Scania products 2,356 4,809 4,792 3,342 2,789 2,842 5,109 3,736 880 1,273 1,565 2,513 

Car operations 111 275 253 250 258 215 243 173 121 33 86 17 

Total 2,467 5,084 5,045 3,592 3,047 3,057 5,352 3,909 1,001 1,306 1,651 2,530 


European operations 7.0 11.5 14.2 11.9 8.5 9.3 17.7 15.2 3.6 7.8 9.3 13.9 

Latin American operations –15.5 0.1 –7.2 –10.8 5.8 10.7 7.0 15.0 10.5 8.0 5.3 15.1 

Total, Scania products 5.0 10.7 12.4 8.9 8.4 9.9 16.4 15.5 4.9 7.7 8.7 14.2 

Car operations 1.9 4.1 4.6 4.4 5.6 5.7 7.8 6.8 5.4 2.2 6.1 1.2 

Total 4.6 9.9 11.5 8.3 8.0 9.4 15.6 14.7 5.0 7.2 8.5 13.3 

Gross capital expenditure for property, plant and equipment, excluding lease assets and renting 

European operations 1,772 1,589 1,522 1,582 1,592 1,908 1,727 1,851 1,209 1,319 1,201 1,380 

Latin American operations 208 236 354 444 974 671 455 298 276 182 107 154 

Total 1,980 1,825 1,876 2,026 2,566 2,579 2,182 2,149 1,485 1,501 1,308 1,534 


Research and development 1,955 1,621 1,267 1,168 1,248 1,084 923 805 783 738 761 619 

Inventory turnover rate 

Inventory turnover rate, times 2 7.2 7.2 6.2 6.5 6.5 5.3 6.6 6.5 4.9 4.3 4.4 4.2 

1 Refers to the difference between sales recognised as revenues and sales value based on delivery. 2 Calculated as sales divided by average inventory. 

72

2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 

Vehicles produced, units 


Trucks 37,399 44,235 39,794 38,886 33,092 31,316 33,459 23,367 16,014 19,893 23,721 23,853 

Buses 2,624 2,118 2,528 2,818 2,817 2,326 2,373 1,542 1,176 1,557 1,321 1,462 

Latin American operations 

Trucks 6,088 7,174 5,985 6,660 10,463 7,139 8,515 8,570 6,610 4,587 4,234 4,765 

Buses 2,040 2,054 1,175 1,697 1,769 1,575 2,091 1,303 1,393 2,533 2,626 1,688 

Total 48,151 55,581 49,482 50,061 48,141 42,356 46,438 34,782 25,193 28,570 31,902 31,768 

Trucks sold by market area, units 

Western Europe 30,416 38,476 36,106 32,686 26,756 26,249 26,596 17,814 13,052 16,366 18,463 20,749 

Central and eastern Europe 2,579 2,287 1,551 2,237 1,833 1,030 951 312 248 507 260 254 

Latin America 6,181 6,777 6,253 7,621 9,649 7,377 7,964 8,713 6,678 4,734 4,293 4,558 

Asia 2,994 3,438 1,481 1,410 3,096 2,997 3,329 2,818 2,256 2,440 5,530 1,731 

Other markets 1,489 1,340 1,260 1,599 1,058 1,375 1,627 1,178 851 611 587 991 

Total 43,659 52,318 46,651 45,553 42,392 39,028 40,467 30,835 23,085 24,658 29,133 28,283 

Buses and coaches sold by market area, units 

Western Europe 1,701 1,618 1,935 1,731 1,595 1,655 1,642 983 835 879 1,067 1,199 

Central and eastern Europe 127 84 67 106 95 83 45 40 35 16 2 2 

Latin America 1,595 1,843 1,237 1,697 1,829 1,641 1,878 1,287 1,459 2,677 2,493 1,645 

Asia 666 278 160 78 308 309 304 140 133 249 144 224 

Other markets 583 351 364 505 757 275 301 237 215 355 276 233 

Total 4,672 4,174 3,763 4,117 4,584 3,963 4,170 2,687 2,677 4,176 3,982 3,303 

Total market for heavy trucks and buses, units 

Western Europe 

Trucks 235,000 243,700 235,900 207,300 170,300 172,000 173,300 133,300 114,100 149,000 170,000 176,000 

Buses 23,500 23,400 21,800 21,000 18,300 17,800 15,900 13,600 15,600 16,500 17,200 19,000 

Brazil 

Trucks 18,046 17,341 13,456 15,763 17,861 13,682 19,299 18,931 13,938 8,402 9,389 9,524 

Buses 10,833 10,626 8,057 13,438 13,424 15,087 16,969 12,266 11,073 13,222 16,220 9,730 

Number of employees 3 


Production companies 13,321 14,093 13,532 13,478 13,197 13,004 14,364 12,374 10,493 11,417 12,736 13,218 

Marketing companies 10,583 9,391 9,001 6,201 6,160 4,877 4,050 3,694 3,823 4,278 4,043 4,219 

Total, European operations 23,904 23,484 22,533 19,679 19,357 17,881 18,414 16,068 14,316 15,695 16,779 17,437 

Latin American operations 4,199 3,688 3,660 3,714 4,299 4,250 4,520 4,285 4,217 4,433 4,941 4,767 

Customer finance operations 239 194 166 144 107 75 90 72 60 65 52 34 

Total 28,342 27,366 26,359 23,537 23,763 22,206 23,024 20,425 18,593 20,193 21,772 22,238 

3 Including employees with time-limited contracts. 

73

Board of Directors 

Leif Östling 


Detlef Wittig 

Lothar Sander 

Rolf Stomberg 

Cees J. A. van Lede 

Marcus Wallenberg 


Born 1937. Chairman since 2000. 

Chairman of the Board of Management 

of Volkswagen AG. 

Other directorships: Münchener 

Rückversicherungsgesellschaft, 

Dr. Ing. h.c. F. Porsche AG, Porsche 

Holding GesmbH, Porsche GesmbH, Salzburg, 

as well as a number of directorships in 

subsidiaries of the Volkswagen Group. 

Shares in Scania: 0 

Leif Östling 

Born 1945. Member since 1994. 

President and CEO of Scania AB. 

Other directorships: BT Industries AB, 

Eldon Thule, ADR Haanpää. 

Shares in Scania: 50,000 

Detlef Wittig 


Member of the Board of Management 

Volkswagen Brand. 

Other directorships: Svenska Volkswagen AB, 

Autogerma S.p.A, Region Asien-Pazifik, 

Germany and North American Region, USA, 

as well as a number of other directorships in 

subsidiaries of the Volkswagen Group. 


Lothar Sander 


Member of the Board of Management 

Volkswagen Brand. 

Other directorships: Svenska Volkswagen AB, 

Flughafen Braunschweig GmbH, TAS Tvornica 

Automobilia Sarajevo GmbH, as well as a number 

of other directorships in subsidiaries of the 

Volkswagen Group. 


Rolf Stomberg 


Chairman of Management Consulting Group PLC. 

Other directorships: Reed Elsevier PLC, Smith & 

Nephew PLC, Cordiant Communications PLC, 

TPG Group, Stinnes AG, Aral AG. 


Cees J.A. van Lede 


Chairman of Akzo Nobel N.V. 

Other directorships: Dutch Central Bank, 

Sara Lee/DE, Heineken, 

International Council JP Morgan. 


Marcus Wallenberg 


President and CEO of Investor AB, 

Vice Chairman of Telefon AB L M Ericsson, 

Vice Chairman of Saab AB. 

Other directorships: AstraZeneca AB, 

AstraZeneca UK, Stora Enzo Oy, 

Knut and Alice Wallenberg Foundation. 


74

Clas Åke Hedström Peggy Bruzelius Lars-Åke Eriksson 

Kjell Wallin 

Katrin Rosenqvist Jan Westberg 

Clas Åke Hedström 


President and CEO of Sandvik AB. 

Other directorships: Association 

of Swedish Engineering Industries, 

AB SKF. 


Peggy Bruzelius 


Chairman of Grand Hotel Holdings AB, 

Chairman of Lancelot Asset Management AB. 

Other directorships: Electrolux AB, 

Industry and Commerce Stock Exchange 

Committee, Securities Council, 

Axel Johnson AB, AB Ratos, Drott AB, 

Axfood AB, Syngenta AG. 


Lars-Åke Eriksson 

Born 1948. Deputy member since 2000. 

Employee Representative for the Metal 

Workers’ Union at Scania. 


Kjell Wallin 


Employee Representative for the Metal 

Workers’ Union at Scania. 


Katrin Rosenqvist 

Born 1960. Deputy member since 2001. 

Employee Representative for the Federation 

of Salaried Employees in Industry and Services 

at Scania. 


Jan Westberg 


Employee Representative for the Federation 

of Salaried Employees in Industry and Services 

at Scania. 


Auditors 

Caj Nackstad 

Authorised Public Accountant, 

KPMG 




Deputy Auditors 

Thomas Thiel 


KPMG 

Björn Fernström 



75


Executive Board 

Kaj Lindgren 

Leif Östling 

Gunnar Rustad Hasse Johansson Per Hallberg Arne Karlsson Jan Gurander 

Executive Board 

Leif Östling 

Born 1945. 

Joined Scania in 1972. 



Reporting to Leif Östling: 

Industrial & Marine Engines 

Latin American Operations 

Kaj Lindgren 

Born 1945. 

Joined Scania in 1977, 

employed until 1984. 

Rejoined Scania in 1989. 

Group Vice President 

Corporate Development 


Reporting to Kaj Lindgren: 

Business Communications 

Corporate Human Resources 

General Counsel 

And certain corporate 

staff units 

Gunnar Rustad 

Born 1949. 



Sales and Marketing 


Reporting to Gunnar Rustad: 

Sales and Marketing globally 

Trucks, Buses and Coaches 

Services 


staff units 

Hasse Johansson 

Born 1949. 

Joined Scania in 2001. 


Research and Development 


Reporting to 

Hasse Johansson: 

Truck and Cab 

Development 

Powertrain Development 


staff units 

Per Hallberg 

Born 1952. 



Production and 

Procurement 


Reporting to Per Hallberg: 

Chassis and Cabs 

Powertrain 

Purchasing 


staff units 

Arne Karlsson 

Born 1944. 


Executive Vice President 

Commercial System 


Jan Gurander 

Born 1961. 



Rejoined Scania in 2001. 

Group Vice President and CFO 


Reporting to Jan Gurander: 

Corporate Control 

Customer Finance 

Finance 


staff units 

76


Corporate Units, Corporate Sectors and Business Units 

Corporate Units 

Corporate Sectors 

Business Units 

Ulf Egestrand 

Born 1956. 


Senior Vice President 

Finance 


Magnus Hahn 

Born 1955. 



Business Communications 


Peter Härnwall 

Born 1955. 



Corporate Control 


Hans Narfström 

Born 1951. 



Human Resources 


Carl Riben 

Born 1950. 



General Counsel 


Håkan Ericsson 

Born 1947. 



Services 


Thomas Karlsson 

Born 1953. 



Powertrain 


Lars Orehall 

Born 1947. 



Truck and Cab Development 


P O Svedlund 

Born 1955. 


Senior Vice President and CIO 

Purchasing 


Christoffer Ljungner 

Born 1950. 



Sales and Marketing Overseas 


Lars Wrebo 

Born 1961. 



Chassis and Cabs 


Arne Carlsson 

Born 1943. 



Rejoined Scania in 1991. 

Acting Managing Director 

Latin American Operations 


Lennart Hjelte 

Born 1945. 



Industrial & Marine Engines 


Claes Jacobsson (not in picture) 

Born 1958. 



Customer Finance 


Ulf 

Egestrand 

Peter 

Härnwall 

Lars 

Wrebo 

Lennart 

Hjelte 

Håkan 

Ericsson 

Arne 

Carlsson 

Magnus 

Hahn 

Carl 

Riben 

Hans 

Narfström 

Christoffer 

Ljungner 

Lars 

Orehall 

P O 

Svedlund 

Thomas 

Karlsson 

77

Addresses 

Scania Head Office 

and Technical Centre 

Scania CV AB 

SE-151 87 SÖDERTÄLJE 

Sweden 

Tel: +46 8 553 810 00 

Fax: +46 8 553 810 37 

www.scania.com 

Scania Latin America Ltda 

Hans-Christer Holgersson 

Caixa Postal 188 

09810-902 SÃO BERNARDO DO 

CAMPO-SP 

Brazil 

Tel: +55 11 4344 9333 

Fax: +55 11 4351 2659 

Production units 

Scania Chassis Assembly 

Jan Hillerström 


Sweden 

Tel: +46 8 553 810 00 

Fax: +46 8 553 810 37 

Scania Transmission 

Robert Dubois 


Sweden 

Tel: +46 8 553 810 00 

Fax: +46 8 553 810 37 

Scania Engine Assembly 

Melker Jernberg 


Sweden 

Tel: +46 8 553 810 00 

Fax: +46 8 553 810 37 

Scania Engines 

Staffan Garås 


Sweden 

Tel: +46 8 553 810 00 

Fax: +46 8 553 810 37 

Scania Axles 

Stefan Palmgren 

Peter Björk (from 1 June 2002) 

Box 1906 

SE-791 19 FALUN 

Sweden 

Tel: +46 23 477 00 

Fax: +46 23 71 13 79 

Scania Cabs 

Anders Nielsen 

Stefan Palmgren 

(from 1 June 2002) 

Box 903 

SE-572 29 OSKARSHAMN 

Sweden 

Tel: +46 491 76 50 00 

Fax: +46 491 76 54 30 

Scania Transmission 

Anders Holmberg 

SE-280 63 SIBBHULT 

Sweden 

Tel: +46 44 495 00 

Fax: +46 44 481 08 

Ferruform AB 

Chassis Components 

Peter Norman 

Box 815 

SE-971 25 LULEÅ 

Sweden 

Tel: +46 920 766 00 

Fax: +46 920 896 10 

Scania Argentina S.A. 

Bengt Klingberg 

Casilla de Correo No. 3 

Correo Central 

4000 SAN MIGUEL DE TUCUMÁN 

Argentina 

Tel: +54 3 814 509 000 

Fax: +54 3 814 509 001 


Sidney Basso 

Av. José Odorizzi, 151–Vila Euro 


CAMPO-SP 

Brazil 

Tel: +55 11 4344 9333 

Fax: +55 11 4344 2659 

Scania Production Angers S.A.S. 

Martin Lundstedt 

B.P. 846 

FR-49008 ANGERS Cedex 01 

France 

Tel: +33 2 41 41 20 00 

Fax: +33 2 41 41 20 48 

Scania de México S.A. de C.V. 

Roger Johansson 

Prol Av Industrias 4640 

Esq Eje 134 

C P 78395 Zona Industrial 

SAN LUIS DE POTOSÍ 

Mexico 

Tel: +52 48 240 505 

Fax: +52 48 240 504 

Scania Nederland B.V. 

Stefan Palskog 

P.O. Box 618 

NL-8000 AP ZWOLLE 


Tel: +31 38 497 76 11 

Fax: +31 38 497 79 11 

Scania Kapena S.A. 

Lars-Erik Nerback 

ul Grunwaldzka 12 

PL-76-200 SflUPSK 

Poland 

Tel: +48 59 844 06 87 

Fax: +48 59 843 66 01 

Sales and service 

Scania Argentina S.A. 

Mats Gunnarsson 

Ruta Panamericana – Km 34 

(1615) Malvinas Argentinas 

BUENOS AIRES 

Argentina 

Tel: +54 3 327 451 000 

Fax: +54 3 327 451 075 

Scania Australia Pty Ltd 

Kaj Färm 

Private Bag No. 11 

Vic 3061, CAMPBELLFIELD 

Australia 

Tel: +61 392 173 300 

Fax: +61 393 053 898 

Scania Österreich Ges.m.b.H. 

Håkan Sundström 

Postfach 50 

AT-2345 BRUNN AM GEBIRGE 

Austria 

Tel: +43 223 639 020 

Fax: +43 223 639 0286 

Scania Belgium sa-nv 

Peter Janssens 

J.F. Kennedylaan 4 

BE-1831 DIEGEM 

Belgium 

Tel: +32 2 722 8411 

Fax: +32 2 722 8400 


Flávio Mermejo 

Av. José Odorizzi, 151-Vila Euro 


CAMPO-SP 

Brazil 

Tel: +55 11 4344 9333 

Fax: +55 11 4344 2659 

Scania Bulgaria Co Ltd 

Milcho Milchev 

Okolovrastno Shose 

German – Sreden Pat No. 1 

BG-1186 SOFIA 

Bulgaria 

Tel: +359 2 992 83 94 

Fax: +359 2 992 84 04 

Scania Chile S.A. 

Richard König 

Panamericana Norte, no 9850 

Quilicura, SANTIAGO 

Chile 

Tel: +56 2 394 04 00 

Fax: +56 2 738 60 60 

Scania Czech Republic s.r.o. 

Anders Grundströmer 

Chrástany 186 

CZ-252 19 Posta Rudná u Prahy 

PRAHA 

Czech Republic 

Tel: +420 2 510 951 11 

Fax: +420 2 579 512 23 

Scania Danmark A/S 

Jörgen Damkjaer 

Postboks 580 

DK-2730 HERLEV (Copenhagen) 

Denmark 

Tel: +45 4454 2200 

Fax: +45 4454 2209 

Scania Eesti AS 

Janno Karu 

Peterburi tee 72 

EE-11415 TALLINN 

Estonia 

Tel: +372 6 651 200 

Fax: +372 6 651 208 

Oy Scan-Auto Ab 

Raimo Lehtiö 

PB 59 

FI-00391 HELSINKI 

Finland 

Tel: +358 10 555 010 

Fax: +358 10 555 5317 

Scania France S.A.S. 

Marc Haezenberghe 

B.P. 106 


France 

Tel: +33 2 414 133 33 

Fax: +33 2 413 476 25 

Scania Deutschland GmbH 

Johan P Schlyter 

Postfach 10 04 26 

DE-56034 KOBLENZ 

Germany 

Tel: +49 261 8970 

Fax: +49 261 897203 

Scania (Great Britain) Ltd. 

Dan Hoij 

Tongwell 

MILTON KEYNES MK15 8HB 

United Kingdom 

Tel: +44 1908 210 210 

Fax: +44 1908 215 040 

Scania Hungaria Kft. 

Tibor Császár 

Rozália park 1 

HU-2051 BIATORBÁGY 

Hungary 

Tel: +36 23 531 000 

Fax: +36 23 531 009 

Italscania s.p.a. 

Dieter Merz 

Giancarlo Codazzi 

(from 1 June 2002) 

Z.I. Spini di Gardolo, 125/E 

IT-38014 TRENTO 

Italy 

Tel: +39 046 199 6111 

Fax: +39 046 199 6198 

Scania Korea Ltd 

Staffan Sjögren 

18th Floor, Construction Building 

71-2, Nonhyun-dong, 

Kangnam-ku 

135-010 SEOUL 

South Korea 

Tel: +82 2 321 808 00 

Fax: +82 2 511 74 39 

SIA Scania Latvia 

Ervins Arents 

Tiraines iela 13 

LV-1058 RIGA 

Latvia 

Tel: +371 7 066 600 

Fax: +371 7 066 649 

UAB Scania Lietuva Vilnius 

Bo Hallberg 

Lentvario 14b 

LT-2028 VILNIUS 

Lithuania 

Tel: +370 2 685 505 

Fax: +370 2 685 504 

78

Scania Maroc S.A. 

Serge Habib 

97, Bd Abdelmoumen 7ème Etage 

20100 CASABLANCA 

Morocco 

Tel: +212 2 2262 924 

Fax: +212 2 2262 915 

Scania de México S.A. de C.V. 

Christopher Podgorski 

Delegación Azcapotzalco 

C.P. 02300 MEXICO-D.F. 

Mexico 

Tel: +52 555 078 03 00 

Fax: +52 555 87 05 33 

Beers Bedrijfsauto BV 

Jan ter Wee 

Postbus 24012 

NL-2490 AA DEN HAAG 


Tel: +31 704 182 418 

Fax: +31 704 182 510 

Norsk Scania AS 

Jaap Bergema 

Postbox 143, Skøyen 

NO-0212 OSLO 2 

Norway 

Tel: +47 220 645 00 

Fax: +47 220 645 99 

Scania del Perú S.A. 

Horácio Gramajo 

Av Republica de Panamá, no 4679 

Apartado 3190 

LIMA 34 

Peru 

Tel: +51 1 241 3016 

Fax: +51 1 241 6391 

Scania Polska S.A. 

Tommy Sjöö 

Aleja Katowicka 316 

PL-05-830 Stara Wies/NADARZYN 

Poland 

Tel: +48 22 356 01 00 

Fax: +48 22 356 01 01 

Scania Romania S.R.L. 

Leif Bohman 

Post Office 52 

Box No. 150, Sector 1, 

BUCHAREST 

Romania 

Tel: +40 1 232 5944 

Fax: +40 1 232 8257 

Scania Russia 

P G Nilsson 

43 km Minskoje shosse, Golitsyno 

143040 MOSCOW 

Russia 

Tel: +7 095 787 5000 

Fax: +7 095 787 5002 


East Adriatic Region d.o.o. 

Kjell Örtengren 

Cesta v Gorice 28 

SI-F1000 LJUBLJANA 

Slovenia 

Tel: +386 1 242 76 30 

Fax: +386 1 242 76 69 

Scania South Africa (Pty) Ltd 

Ulf Grevesmühl 

P O Box 587 

2110 MONDEOR 

South Africa 

Tel: +27 11 494 52 04 

Fax: +27 11 494 15 24 

Scania Hispania S.A. 

José Badía 

Apartado de correos 304 

ES-28850 TORREJÓN DE ARDOZ 

(MADRID) 

Spain 

Tel: +34 91 678 80 00 

Fax: +34 91 675 74 50 

Scania Sverige AB 

Martin Ståhlberg 

Verkstadsvägen 11 


Sweden 

Tel: +46 8 553 864 00 

Fax: +46 8 553 864 35 

Scania Truck AG 

Stein Ingvoldstad 

Dieter Merz (from 1 June 2002) 

Steinackerstrasse 55 

CH-8302 KLOTEN 

Switzerland 

Tel: +41 1 800 13 00 

Fax: +41 1 800 13 01 

Scania Tanzania Ltd. 

Henrik Orrling 

Nyerere Road 

P O Box 9324 

DAR ES SALAAM 

Tanzania 

Tel: +255 22 286 0290 

Fax: +255 22 286 5033 

Scania Siam Co. Ltd 

Jan Jarlhage 

23/21 Vibhavadi Rangsit Road 

Ladyao, Chatucnad 

10900 BANGKOK 

Thailand 

Tel: +66 2 515 9600 

Fax: +66 2 537 8261 

Scania Ukraine 

Berth Carreman 

Ring Road 22 

(2, Trublaini str) 

UA-03134 KIEV 

Ukraine 

Tel: +380 44 490 74 90 

Fax: +380 44 490 77 71 

Scania USA, Inc 

Claes Sundberg 

121 Interpark Blvd, suite 601 

78216 SAN ANTONIO, Texas 

USA 

Tel: +1 210 403 00 07 

Fax: +1 210 403 02 11 

Buses 

Omni i Katrineholm AB 

Hans Hansson 

Vingåkersvägen 71 

SE-641 81 KATRINEHOLM 

Sweden 

Tel: +46 150 585 00 

Fax: +46 150 532 30 

Scania Bus Europe sa-nv 

Fredrik Morsing 

Berkenlaan 1 

BE-1831 DIEGEM 

Belgium 

Tel: +32 2 704 4000 

Fax: +32 2 704 4010 

Scania Bus Nordic 

Leif Nyström 

Vingåkersvägen 71 

SE-641 81 KATRINEHOLM 

Sweden 

Tel: +46 150 585 00 

Fax: +46 150 532 30 

Finance companies 

Scania Finance Belgium nv 

Bert Peeters 

Minervastraat 8 

BE-1930 ZAVENTEM 

Belgium 

Tel: +32 2 714 2424 

Fax: +32 2 714 2457 

Scania Finance Czech Republic 

Zuzana Tomeckova 

Chrástany 186 

CZ-25219 posta Rudná u Prahy 

PRAHA 

Czech Republic 

Tel: +420 2 510 951 28 

Fax:+420 2 579 507 31 

Scania Finance France S.A.S. 

Pierre de Bantel 

B.P. 928 


France 

Tel: +33 241 41 33 33 

Fax: +33 241 34 70 46 

Scania Finance 

Deutschland GmbH 

Koen Knoops 

Postfach 100426 

DE-56034 KOBLENZ 

Germany 

Tel: +49 261 897 303 

Fax: +49 261 897 313 

Scania Finance 

Great Britain Ltd 

Peter Taylor 

Tongwell 

MILTON KEYNES MK15 8HB 

United Kingdom 

Tel: +44 1 908 210 210 

Fax: +44 1 908 216 675 

Scania Finance Italy s.p.a. 

Sven Antonsson 

Via dei Giardini, 10 

IT-20121 MILANO 

Italy 

Tel: +39 02 659 2314 

Fax: +39 02 659 2316 

Scania Korea Finance Branch 

Sang-Won Lee 

18th Floor, Construction Building 

71-2, Nonhyun-dong, 

Kangnam-ku 

135-010 SEOUL 

South Korea 

Tel: +82 232 180 800 

Fax: +82 251 174 39 

Bezoma BV 

Gerard van Keulen 

Postbus 24012 

NL-2490 AA DEN HAAG 


Tel: +31 704 18 24 18 

Fax: +31 704 18 25 20 

Scania Finance Polska Sp.z.o.o. 

Janusz Laskowski 

Aleja Katowicka 316 

PL-05-830 Stara Wies/NADARZYN 

Poland 

Tel: +48 22 356 02 30 

Fax: +48 22 356 02 31 

Scania Finance Hispania 

Eddi Mues 

Avd. de Castilla no 2 

Parque Empresarial San Fernando 

Edifico Europa 

San Fernando Henares 

ES-288 30 MADRID 

Spain 

Tel +34 91 678 18 61 

Fax +34 91 678 18 63 

Scania Credit AB 

Per Spjut 


Sweden 

Tel: +46 8 553 836 60 

Fax: +46 8 553 837 24 

Scania Finans AB 

Leif Christensson 


Sweden 

Tel: +46 8 553 837 50 

Fax: +46 8 553 837 67 

Service 

DynaMate AB 

Sam Burman 


Sweden 

Tel: +46 8 553 830 00 

Fax: +46 8 553 816 84 

Support 


Peter Gillbrand 

Kronborgsgränd 11, 2 tr 

SE-164 46 KISTA 

Sweden 

Tel: +46 8 553 807 50 

Fax: +46 8 553 807 60 

Scania Parts Logistics AB 

Kjell Nilsson 


Sweden 

Tel: +46 8 553 835 00 

Fax: +46 8 553 861 90 

79

Scania AB (publ), SE-151 87 Södertälje, Sweden, Tel: +46-8-55 38 10 00, Fax: +46-8-55 38 10 37, www.scania.com 

1594747/13/KREAB/ Trosa Tryckeri, 2002

Scania annual report 2001

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