Scania annual report 2001
Scania annual report 2001
Scania annual report 2001
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ANNUAL REPORT <strong>2001</strong>
Annual General Meeting<br />
The Annual General Meeting of Shareholders (AGM)<br />
will be held at 15:00 CET on Tuesday, 7 May 2002 at<br />
Konferenshuset, TelgeForum (formerly Folkets Hus),<br />
Södertälje, Sweden.<br />
Participation<br />
Shareholders who wish to participate in the AGM<br />
must be recorded in the shareholder list maintained<br />
by Värdepapperscentralen VPC AB (the Swedish<br />
Central Securities Depository and Clearing<br />
Organization) no later than Friday, 26 April 2002.<br />
They must also register with the company by<br />
post at <strong>Scania</strong> AB, Annual General Meeting,<br />
SE-151 87 Södertälje, Sweden, or by telephone<br />
at +46 8 5538 1510 no later than 16:00 CET on<br />
Tuesday, 30 April 2002.<br />
Nominee shares<br />
To be entitled to participate in the AGM, shareholders<br />
whose shares have been registered in the name of a<br />
nominee through the trust department of a bank or<br />
brokerage house must temporarily reregister their<br />
shares in their own name with VPC. Shareholders<br />
who wish to reregister their shares in this way must<br />
inform their nominees accordingly well before<br />
Friday, 26 April 2002.<br />
Dividend<br />
The Board of Directors proposes Monday, 13 May<br />
2002 as the record date for the <strong>2001</strong> dividend. The<br />
last day for trading shares that include the dividend<br />
is Tuesday, 7 May 2002. Provided that the AGM<br />
approves this proposal, the dividend is expected<br />
to be sent on Thursday, 16 May 2002.<br />
Reports from <strong>Scania</strong><br />
Interim Report, January-March, on 22 April 2002<br />
Interim Report, January-June, on 19 July 2002<br />
Interim Report, January-September, on 31 October<br />
2002.<br />
In addition to the Annual Report, the above<br />
informational material is found on <strong>Scania</strong>’s<br />
website: www.scania.com<br />
The material may also be ordered from:<br />
<strong>Scania</strong> AB, SE-151 87 Södertälje, Sweden.<br />
Phone: +46 8 5538 1000<br />
Fax: +46 8 5538 5559<br />
The English version of the Annual Report is a translation of the<br />
Swedish language original. Translation: Victor Kayfetz, Scan Edit.<br />
Unless otherwise stated, all comparisons in this Annual Report refer<br />
to the same period of the preceding year.<br />
This <strong>report</strong> contains forward-looking statements that reflect management’s<br />
current views with respect to certain future events and potential<br />
financial performance. Such forward-looking statements involve<br />
risks and uncertainties that could significantly alter potential results.<br />
These statements are based on certain assumptions, including assumptions<br />
related to general economic and financial conditions in the company’s<br />
markets and the level of demand for the company’s products.<br />
This <strong>report</strong> does not imply that the company has undertaken to<br />
revise these forward-looking statements, beyond what is required<br />
under the company’s registration contract with Stockholmsbörsen<br />
if and when circumstances arise that will lead to changes compared to<br />
the date when these statements were provided.
Contents<br />
■ The company<br />
Important events 2<br />
Highlights 3<br />
<strong>Scania</strong> in brief 4<br />
Statement of the Chairman 6<br />
Statement of the President and CEO 8<br />
<strong>Scania</strong> share data 10<br />
Vision, mission statement and strategy 13<br />
Identity and brand name 14<br />
<strong>Scania</strong>’s role in society 15<br />
Product concept 16<br />
Industrial and commercial system 17<br />
Employees 18<br />
■ Products and production<br />
The <strong>Scania</strong> Production System 20<br />
Research and development 22<br />
Production 25<br />
■ The environment 28<br />
■ Markets and demand<br />
Trucks and buses 35<br />
Europe 36<br />
Latin America 40<br />
Asia, Australia and Africa 42<br />
Service-related products 44<br />
Customer financing 46<br />
■ Financial review 48<br />
Consolidated income statement 51<br />
Consolidated balance sheet 52<br />
Statement of changes in shareholders’ equity 54<br />
Consolidated cash flow statement 54<br />
Parent Company financial statements 55<br />
Accounting principles 56<br />
Notes to the financial statements 58<br />
Financial information in accordance with<br />
U.S. GAAP 67<br />
Proposed distribution of earnings 69<br />
Auditors’ <strong>report</strong> 69<br />
Quarterly data 70<br />
Financial ratios and definitions 71<br />
Multi-year statistical review 72<br />
■ Personal and contact information<br />
Board of Directors 74<br />
Group Management 76<br />
Addresses 78<br />
The Report of the Directors encompasses pages 2-69.<br />
Swedish corporate identity number:<br />
<strong>Scania</strong> AB (publ)<br />
556184-8564<br />
1
Important events<br />
<strong>2001</strong> 2002<br />
• <strong>Scania</strong> completed the purchase of its Dutch distributor<br />
Beers. The transaction strengthened <strong>Scania</strong>’s sales<br />
and service network in Europe.<br />
• At the international truck show in Brussels, <strong>Scania</strong><br />
unveiled an addition to its modularised engine range:<br />
a 470 hp six-cylinder 12-litre turbocompound engine<br />
featuring new turbo and fuel injection technology. Later<br />
in the year, <strong>Scania</strong> introduced the first Euro 3 engine in<br />
Brazil. This 16-litre V8 engine is also the most powerful<br />
truck diesel in the Brazilian market.<br />
• Construction work started on a new facility for topcoat<br />
application at <strong>Scania</strong>’s cab factory in Oskarshamn. Aside<br />
from higher capacity and better quality, the new paintshop<br />
will result in considerable environmental improvements.<br />
• <strong>Scania</strong> is restructuring its bus and coach operations.<br />
The purpose of these changes is to achieve synergies<br />
with trucks in the production system and in long-term<br />
development, as well as to benefit from a global marketing<br />
organisation and create conditions for healthy bodybuilding<br />
operations. The restructuring will be completed<br />
during 2002.<br />
• In Latin America, especially in Argentina, the year was<br />
dominated by major economic problems. <strong>Scania</strong> took<br />
steps to improve profitability. In Brazil, it raised prices to<br />
compensate for unfavourable currency rate developments,<br />
while implementing cost reductions. In<br />
Argentina, it adjusted operations to changed conditions,<br />
among other things by a 15 percent reduction in the<br />
number of employees.<br />
• <strong>Scania</strong> sold its 50 percent stake in Svenska Volkswagen<br />
AB and the Swedish distributor Din Bil to Volkswagen<br />
AG of Germany. The purchase price amounted<br />
to SEK 870 m. and SEK 450 m., respectively, and<br />
was expected to result in a capital gain of SEK 250 m.<br />
and SEK 300 m., respectively. The sale will be completed<br />
upon approval by the relevant competition<br />
Established in 1891, <strong>Scania</strong> celebrated its<br />
110th anniversary in <strong>2001</strong>.<br />
authorities. Established in 1948, Svenska Volkswagen<br />
is the importer of Volkswagen, Audi, Seat and Skoda,<br />
as well as Porsche cars in Sweden. Din Bil is a Swedish<br />
dealership network for cars and light trucks with<br />
operations in Stockholm, Gothenburg and Malmö-<br />
Helsingborg.<br />
2
Highlights<br />
Sales by product area,<br />
<strong>2001</strong> 1 Used vehicles<br />
Industrial and<br />
and other products 8%<br />
marine engines 1%<br />
Buses and<br />
coaches 8%<br />
Car<br />
operations<br />
11%<br />
Servicerelated<br />
products 19%<br />
Trucks 53%<br />
Sales by market area,<br />
<strong>2001</strong> 1<br />
Other markets 5%<br />
Western<br />
Asia 6%<br />
Europe 73%<br />
Latin<br />
America11%<br />
Central and<br />
eastern<br />
Europe 5%<br />
Key figures <strong>2001</strong> 2000 1999<br />
Sales, units<br />
Trucks 43,659 52,318 46,651<br />
Buses 4,672 4,174 3,763<br />
Total 48,331 56,492 50,414<br />
Sales, SEK m.<br />
<strong>Scania</strong> products 47,213 44,740 38,559<br />
Car operations 5,852 6,658 5,485<br />
Total 53,065 51,398 44,044<br />
Operating income, SEK m.<br />
<strong>Scania</strong> products 2,356 4,809 4,792<br />
Car operations 111 275 253<br />
Total 2,467 5,084 5,045<br />
Operating margin, %<br />
<strong>Scania</strong> products 5.0 10.7 12.4<br />
Car operations 1.9 4.1 4.6<br />
Total 4.6 9.9 11.5<br />
Income after financial items, SEK m. 1,541 4,454 4,500<br />
Net income, SEK m. 1,048 3,080 3,146<br />
Earnings per share 5.24 15.40 15.73<br />
according to U.S. GAAP, SEK 5.69 14.93 16.37<br />
Sales<br />
SEK m.<br />
Operating income<br />
SEK m.<br />
Operating margin<br />
%<br />
Operating cash flows excluding<br />
Customer finance operations, SEK m. 2 2,066 2,557 476<br />
60,000<br />
50,000<br />
5,000<br />
4,000<br />
12<br />
10<br />
Return, %<br />
on shareholders’ equity 6.5 21.6 25.1<br />
on capital employed 3 8.4 19.7 21.2<br />
Net debt/equity ratio 3 0.49 0.50 0.61<br />
40,000<br />
30,000<br />
20,000<br />
10,000<br />
3,000<br />
2,000<br />
1,000<br />
8<br />
6<br />
4<br />
2<br />
Equity/assets ratio 23.4 25.8 25.3<br />
Capital expenditures for property, plant<br />
and equipment, SEK m. 1,980 1,825 1,876<br />
Research and development<br />
expenses, SEK m. 1,955 1,621 1,267<br />
Number of employees at year-end 28,342 27,366 26,359<br />
0<br />
1999 2000 <strong>2001</strong><br />
0<br />
1999 2000<br />
<strong>2001</strong><br />
0<br />
1999 2000 <strong>2001</strong><br />
1 Based on deliveries.<br />
2 Including acquisitions/divestments of businesses.<br />
3 With Customer finance operations <strong>report</strong>ed according to the equity method.<br />
3
<strong>Scania</strong> in brief<br />
<strong>Scania</strong> is a leading manufacturer of heavy<br />
trucks and buses as well as industrial and<br />
marine engines. The company also markets<br />
and sells a broad range of service-related<br />
products and financing services.<br />
<strong>Scania</strong> is a global company with operations in Europe,<br />
Latin America, Asia, Africa and Australia. During <strong>2001</strong> its<br />
sales totalled 53 bn. Swedish kronor (SEK), or 5.6 bn.<br />
euro (EUR*). <strong>Scania</strong>’s operating income totalled SEK<br />
2.5 bn. (EUR* 0.3 bn.). Its income after financial items<br />
amounted to SEK 1.5 bn. (EUR* 0.2 bn.).<br />
<strong>Scania</strong> is the world’s third largest make for heavy<br />
trucks of more than 16 tonnes (Class 8). It is the<br />
world’s third largest make in the heavy bus segment.<br />
<strong>Scania</strong> has 28,342 employees worldwide. Of<br />
these, 24,143 work in Europe and 4,199 in Latin<br />
America. In addition, about 20,000 people work in<br />
<strong>Scania</strong>’s independent sales and service organisation.<br />
<strong>Scania</strong> shares are quoted on Stockholmsbörsen<br />
(formerly the OM Stockholm Stock Exchange) and on<br />
the New York Stock Exchange.<br />
Products<br />
<strong>Scania</strong> designs its products to have the lowest possible<br />
impact on the environment. They are optimised to<br />
consume less energy, raw materials and chemicals<br />
during their life cycle and to be recyclable.<br />
* Translated at the exchange rate on the balance sheet date, SEK 9.4190 = EUR 1.<br />
Vehicles<br />
<strong>Scania</strong> develops, manufactures and distributes trucks<br />
with a gross vehicle weight of more than 16 tonnes<br />
(Class 8), intended for long-distance haulage, regional<br />
and local distribution of goods as well as construction<br />
haulage.<br />
<strong>Scania</strong>’s bus and coach range consists of bus<br />
chassis as well as fully built buses for more than 30<br />
passengers, intended for use in urban and intercity<br />
traffic or as tourist coaches.<br />
<strong>Scania</strong>’s industrial and marine engines are often<br />
built into products manufactured by other companies.<br />
These engines are used, among other things, in generator<br />
sets and in earthmoving and agricultural machinery,<br />
as well as aboard ships and pleasure craft.<br />
Service-related products<br />
In addition to vehicles, <strong>Scania</strong> sells service-related<br />
products, for example parts and workshop services in<br />
the form of maintenance and repairs. The customer<br />
can also choose different forms of service and maintenance<br />
contracts.<br />
Customer financing<br />
<strong>Scania</strong> provides its customers with various types of<br />
financing solutions, for example leases or hire purchase<br />
contracts.<br />
Focus<br />
<strong>Scania</strong> vehicles and services can be tailored to each<br />
customer’s needs, thereby enabling customers to optimise<br />
their earnings capacity. <strong>Scania</strong>’s success is<br />
based on putting the customer first.<br />
<strong>Scania</strong>’s ten largest truck markets<br />
Heavy truck registrations Market share in %<br />
<strong>2001</strong> 2000 <strong>2001</strong> 2000<br />
Brazil 5,266 5,153 29.2 29.7<br />
Great Britain 5,137 6,743 15.5 20.7<br />
France 4,281 4,963 9.3 10.5<br />
Germany 4,246 5,793 8.3 10.1<br />
Italy 3,304 3,356 13.5 13.1<br />
Spain 3,176 3,646 12.1 14.4<br />
The Netherlands 2,410 3,150 17.6 22.4<br />
Sweden 2,040 2,358 47.9 50.4<br />
Belgium 1,461 1,556 17.4 18.6<br />
South Korea 1,213 471 15.3 6.6<br />
Western Europe 31,787 37,906 13.5 15.6<br />
<strong>Scania</strong>’s five largest bus markets<br />
Bus registrations Market share in %<br />
<strong>2001</strong> 2000 <strong>2001</strong> 2000<br />
Brazil 853 1,100 7.9 10.4<br />
Spain 423 364 16.6 16.5<br />
Mexico 304 175 2.5 1.6<br />
Italy 293 197 7.6 6.5<br />
Sweden 205 223 25.1 21.5<br />
Cars<br />
Early in 2002, <strong>Scania</strong> sold its 50 percent stake in<br />
Svenska Volkswagen AB, as well as the Swedish distributor<br />
Din Bil, to Volkswagen AG of Germany. <strong>Scania</strong><br />
also owns some small car distributors in Finland and<br />
Switzerland. Since car operations are not part of<br />
<strong>Scania</strong>’s core business, there are plans to divest the<br />
remainder of these operations.<br />
4
Sweden<br />
<strong>Scania</strong>’s global sales and service organisation<br />
Altogether, <strong>Scania</strong> is represented in about 100 countries<br />
through 1,000 local distributors and 1,500 service points.<br />
<strong>Scania</strong>’s global production system<br />
<strong>Scania</strong> has production facilities in Europe and Latin<br />
America. In addition, there are assembly plants in ten<br />
countries in Africa, Asia and Europe.<br />
Production of trucks and buses<br />
Assembly plants<br />
The Netherlands<br />
Zwolle/Meppel<br />
Production of trucks and cabs.<br />
Employees: 1,800<br />
France<br />
Angers<br />
Production of trucks.<br />
Employees: 500<br />
Ferruform AB<br />
Luleå<br />
Production of frames and<br />
axle housings.<br />
Employees: 700<br />
Falun<br />
Production of axles.<br />
Employees: 600<br />
Södertälje<br />
Head office and research and<br />
development. Production of<br />
components, engines and trucks.<br />
Employees: 5,700<br />
Katrineholm<br />
Development and production of<br />
buses and bus chassis.<br />
Employees: 800<br />
Estonia<br />
Russia<br />
Oskarshamn<br />
Production of cabs.<br />
Employees: 1,700<br />
Mexico<br />
San Luís Potosí<br />
Production of trucks and<br />
buses.<br />
Employees: 80<br />
Morocco<br />
Tunisia<br />
Kenya<br />
Thailand<br />
Malaysia<br />
Poland<br />
Sĺupsk<br />
Production of trucks<br />
and buses.<br />
Employees: 200<br />
Sibbhult<br />
Production of gearboxes.<br />
Employees: 500<br />
<strong>Scania</strong> Infotronics AB<br />
Kista<br />
Mobile communication<br />
development.<br />
Employees: 40<br />
Argentina<br />
Tucumán<br />
Production of gearboxes,<br />
axles, trucks and buses.<br />
Employees: 700<br />
Brazil<br />
São Paulo<br />
Production of engines,<br />
cabs, trucks and buses.<br />
Employees:2,100<br />
South Africa<br />
5
Statement of the Chairman<br />
In the first year of the new millennium the<br />
world economy entered a clear slowdown<br />
after a long period of good growth.<br />
Over time, however, transport needs are<br />
increasing in most countries. Improved<br />
infrastructure and growing trade will<br />
gradually lead to increased demand for<br />
heavy transport vehicles.<br />
The downturn has been more pronounced in the US<br />
than has been the case in Europe. Increased uncertainty<br />
after 11 September meant that the weakening of<br />
general confidence in the economy accelerated. The<br />
American economy has experienced negative growth<br />
since the spring of <strong>2001</strong>, a situation which is likely to<br />
remain for a considerable part of this year. The world’s<br />
major economies are simultaneously exhibiting very<br />
weak economic performance, a rather unusual situation.<br />
<strong>Scania</strong> has of course been adversely affected by<br />
these developments and reduced sales volume, from<br />
56,500 units in 2000 to 48,300 in <strong>2001</strong>. This is still a<br />
high volume for <strong>Scania</strong> historically, and in spite of a<br />
certain loss in market penetration in western Europe,<br />
<strong>Scania</strong> has a strong position in most of its important<br />
markets.<br />
Recovery in Europe will take time<br />
Europe is trailing the American business cycle and<br />
managed to show a certain economic growth throughout<br />
<strong>2001</strong> but is likely to slow down even further during<br />
2002. A dull domestic market and a weak world economy<br />
will probably make the recovery in Europe relatively<br />
slow.<br />
Downturn in Latin America<br />
In 2000, the <strong>Scania</strong> markets in Latin America and Asia<br />
had begun to recover from the economic difficulties<br />
that began in Asia a few years earlier. The new downturn<br />
in the world economy in <strong>2001</strong> again pushed many<br />
countries into a recession. In Latin America, the problems<br />
in Argentina have been dramatic with an overvalued<br />
currency and significant negative growth.<br />
The crisis in Argentina is far from over even though<br />
tough measures are being taken to reverse the deterioration<br />
of the economy. The uncertainty in the other<br />
Latin American economies has been considerable but<br />
not dramatic. Brazil – <strong>Scania</strong>’s most important market<br />
in Latin America – has experienced economic difficulties<br />
which are expected to continue. Elections in 2002<br />
for a new President add to the uncertainty.<br />
The Board has closely followed the developments<br />
in <strong>Scania</strong>’s Latin American operations and approved a<br />
programme aimed at restoring profitability.<br />
Best margin in the industry<br />
In spite of the weaker market and reduced volumes,<br />
<strong>Scania</strong>’s operating margin of 4.6 percent was again<br />
clearly higher than the industry average. <strong>Scania</strong>’s<br />
leading position over the years in terms of profitability<br />
shows that the company’s products continue to<br />
meet and surpass customers’ expectations and that<br />
<strong>Scania</strong> has an efficient structure and efficient working<br />
methods.<br />
During the past ten years, <strong>Scania</strong> has grown substantially<br />
in volume. This has been achieved organically.<br />
Successful working methods, product renewal,<br />
far-reaching production improvements and strengthening<br />
of the distribution structure have laid the groundwork<br />
for long-term profitable growth.<br />
Svenska Volkswagen<br />
<strong>Scania</strong> is one of Volkswagen’s oldest business partners,<br />
due to our joint distribution organisation in<br />
Sweden since 1948. Our co-operation in Svenska<br />
Volkswagen has been very successful. However, car<br />
and truck distribution has diverged and the previous<br />
synergies decreased. It is now natural for <strong>Scania</strong> to<br />
specialise and to separate these businesses.<br />
Strong brand and culture<br />
The strength of its brand is a success factor for any<br />
company, including manufacturers of capital goods,<br />
such as heavy vehicles. The <strong>Scania</strong> brand name is<br />
very strong and has a ‘‘King of the Road” image. The<br />
strength of this brand name is the result of many years<br />
of delivering vehicles and service-related products of<br />
high quality to <strong>Scania</strong>’s customers.<br />
Trust is a very important part of the <strong>Scania</strong> brand.<br />
Customers rely on <strong>Scania</strong> every time they use its products.<br />
All employees at <strong>Scania</strong> must therefore do their<br />
utmost to fulfil the promises that are built into the<br />
brand.<br />
6
<strong>Scania</strong>’s vibrant corporate culture has<br />
contributed to the company’s leading position.<br />
Both <strong>Scania</strong> employees and the owners of<br />
<strong>Scania</strong> products feel proud to be associated<br />
with the company. And I regard it as the duty<br />
of the Board to continue strengthening the<br />
foundations of this pride.<br />
Dr. Ferdinand Piëch, Chairman<br />
The work of the Board<br />
According to the work schedule adopted by the Board<br />
of Directors, it holds seven regular meetings per year.<br />
Beyond this, the Board may meet when circumstances<br />
so warrant.<br />
The January/February, April, July/August and<br />
October/November meetings are devoted primarily to<br />
financial <strong>report</strong>ing. The statutory meeting after the<br />
Annual General Meeting focuses chiefly on the Board’s<br />
work schedule, instructions to the President and<br />
compensation issues.<br />
In June, the Board discusses capital expenditure<br />
issues and long-term planning. The December meeting<br />
focuses especially on operational planning and futureoriented<br />
issues. Beyond this, all meetings deal with<br />
matters of a more current nature as well as capital<br />
expenditures.<br />
The Board’s instructions to the President specify his<br />
duties and powers. Board policy documents on capital<br />
expenditures, financing, communication and <strong>report</strong>ing<br />
are also appended to the instructions.<br />
A committee has been established consisting of<br />
members independent of Volkswagen and Investor. The<br />
Employee Representatives are not included. This committee<br />
is intended to handle issues that may touch upon<br />
the ownership structure of <strong>Scania</strong> AB.<br />
Compensation issues for the President and certain<br />
other senior executives are handled by a committee consisting<br />
of Dr. Ferdinand Piëch, Rolf Stomberg and Marcus<br />
Wallenberg.<br />
7
Statement of the President and CEO<br />
In many of <strong>Scania</strong>’s markets, <strong>2001</strong> was a<br />
turbulent year. This applied to Europe as well<br />
as Latin America and Asia. This turbulence<br />
began late in 2000 when oil prices culminated<br />
at USD 35 per barrel from a level less than<br />
half as high one year earlier.<br />
The transport industry is sensitive to oil price developments,<br />
since fuel costs for heavy trucks and buses<br />
represent between 25 and 30 percent of total operating<br />
costs. Disregarding the driver’s wages, the cost of<br />
fuel accounts for 50 per cent or more. Most transport<br />
operators have fuel cost clauses in their contracts.<br />
Normally, however, it takes quite a while before these<br />
clauses have an impact on pricing to the customer.<br />
Transport operators are very sensitive to cash flows.<br />
When costs rise, they cut back their new vehicle purchases.<br />
This applies generally, regardless of the continent<br />
where the transport operator does business.<br />
Foresighted<br />
As early as the final months of 2000, we made the<br />
assessment that demand would weaken during <strong>2001</strong><br />
in Europe, Latin America and Asia. We decided at that<br />
time to sharply increase the pace of production in<br />
order to maintain short delivery times. This was why<br />
<strong>Scania</strong> had a low order backlog at the beginning of<br />
<strong>2001</strong>. Our tactic was to deliver the vehicles in our<br />
orderbook as quickly as possible. In harder times, cancellations<br />
of existing orders are common. The flexibility<br />
of the <strong>Scania</strong> Production System enabled us to<br />
respond to rapid changes in demand in a more efficient<br />
way than our competitors.<br />
Business quality ahead of volume<br />
Demand in western Europe turned out better than in<br />
our base scenario. We assumed that the total market<br />
for heavy trucks would fall to between 200,000 and<br />
210,000 units. Measured as heavy truck registrations,<br />
demand totalled 235,000 units, for a downturn of<br />
4 percent. <strong>Scania</strong>’s market share fell. This was a result<br />
of <strong>Scania</strong>’s short orderbook compared to the rest of<br />
the industry, but also of the fact that we openly<br />
declared that we prioritised profitability in our business<br />
ahead of volume. In the long term, this is a wise policy<br />
in a business with industrial customers.<br />
In Europe, our industry faces a clearly lower<br />
demand level in 2002. When we analyse our deliveries,<br />
we find that <strong>Scania</strong> defended its position very well in<br />
the segment above 400 horsepower and captured<br />
market share there. However, <strong>Scania</strong> lost ground in<br />
the under 400 hp segment, which includes the truck<br />
purchases of most large hauliers. The latter were also<br />
the most active buyers in the market last year.<br />
Focus on after sales service<br />
Early in <strong>2001</strong>, we acquired the remaining 50 percent of<br />
the shares in our Dutch sales and service company<br />
Beers NV. Having done this, in principle we have completed<br />
the integration of the sales and service organsation<br />
that has been our strategy since the early<br />
1990s. Today <strong>Scania</strong> has the strongest, most specialised<br />
service network in western Europe. This strategy<br />
gives us a good opportunity to benefit from the entire<br />
value chain to the customer, throughout a vehicle’s<br />
service life.<br />
In central and eastern Europe, <strong>Scania</strong> has continued<br />
to strengthen its position in expanding markets.<br />
We have also continued to strengthen our position<br />
when it comes to the sales and service network. In<br />
Russia, the economy has stabilised after the 1998<br />
crash, and the country is rapidly becoming institutionalised<br />
according to a western model. As an effect of<br />
this, risks have diminished when it comes to truck<br />
sales.<br />
Tough in Latin America<br />
Developments in Latin America were the big disappointment<br />
of <strong>2001</strong>. Brazil was hit by a depreciated<br />
currency as well as an energy shortage. In Argentina,<br />
the economy broke down, resulting in a political crisis<br />
and a default on foreign loans. Given the prevailing<br />
turbulence, we were forced to acquire a number of<br />
dealerships in both Brazil and Argentina in order to<br />
protect our sales and service network to a reasonable<br />
extent.<br />
Demand increased slightly in the Brazilian market,<br />
while other markets – especially Argentina – shrank.<br />
We took vigorous steps to restore the price level to<br />
normal world market prices, while further trimming<br />
the cost level in production units both in Brazil and<br />
Argentina. These measures will gradually have an<br />
impact during the first half of 2002. However, there<br />
will be further uncertainty in the region, such as the<br />
upcoming presidential election in Brazil and political<br />
developments in Argentina.<br />
8
South Korea leads the way in Asia<br />
In Asia, developments were divided. On the whole,<br />
economic growth was lower than we had expected,<br />
with the exception of China. However, the South<br />
Korean market performed very well, and the long-term<br />
investments <strong>Scania</strong> began there more than a decade<br />
ago are now paying off. In Chinese-speaking markets,<br />
demand stagnated but was nevertheless at a significantly<br />
higher level than a few years earlier. The businesses that<br />
<strong>Scania</strong> has established in Thailand and Malaysia are also<br />
beginning to yield results.<br />
Restructuring of bus and coach operations<br />
Late in <strong>2001</strong>, we decided to implement a major<br />
restructuring of <strong>Scania</strong>’s bus and coach operations.<br />
During 2002, bus chassis operations will be completely<br />
integrated with trucks when it comes to development,<br />
manufacturing and sales. Bodybuilding operations<br />
will form a separate company. We expect these<br />
steps to save us some hundreds of millions of kronor.<br />
Our ambition is for <strong>Scania</strong>’s bus and coach operations<br />
to generate the same operating margin as trucks.<br />
We will, however, have to absorb certain restructuring<br />
expenses during the current year. The programme will<br />
achieve its full effect during 2003.<br />
Focus on quality and people<br />
<strong>Scania</strong>’s investments in product development rose.<br />
Further improvement in the quality level of our vehicles<br />
is our top priority. The quality of the products during<br />
their life cycle is completely crucial to each customer’s<br />
profitability.<br />
Also in the pipeline are new products that will gradually<br />
be unveiled over the coming five-year period. We<br />
launched new engines in our modular range, among<br />
them a 470 hp turbocompound engine to complement<br />
the 480 and 580 hp V8 engine introduced during 2000.<br />
<strong>Scania</strong> now has the most competitive engine range over<br />
400 hp, the most profitable portion of the market.<br />
At our production units, for a number of years we<br />
have followed the principles of the <strong>Scania</strong> Production<br />
System (SPS), with its focus on the individual. There<br />
are now more than 1,000 improvement teams in<br />
<strong>Scania</strong>’s global organisation. Their work follows a<br />
method in which small adjustments of production<br />
flow occur in logical sequences, and all employees<br />
participate actively. Aside from significantly boosting<br />
quality, SPS improves productivity, but above all we<br />
see how it has greatly improved job satisfaction and<br />
commitment, leading to a decrease in work-related<br />
injuries and absences due to illness.<br />
In my judgement, demand will recover again only<br />
after we have entered 2003. During this downturn in<br />
demand, we are conducting a thorough review of<br />
<strong>Scania</strong>’s activities and working methods, in order to<br />
become an even stronger company once demand<br />
comes back. Despite the difficult market situation, we<br />
feel that <strong>Scania</strong> has a very promising future ahead.<br />
I would like to take this opportunity to thank all our<br />
employees for their contributions during a year that,<br />
under tough prevailing circumstances, still resulted in<br />
decent earnings.<br />
Leif Östling<br />
President and CEO<br />
9
<strong>Scania</strong> share data<br />
The <strong>2001</strong> stock market year was characterised<br />
by international turmoil and instability, very<br />
much due to world events and lower growth<br />
expectations. Both the Stockholm All-Share<br />
Index and the Industrials Index fell during the<br />
year.<br />
Share price, Stockholmsbörsen, <strong>Scania</strong> B shares<br />
500<br />
400<br />
All-Share Index (SAX)<br />
300<br />
Share price and trading<br />
On Stockholmsbörsen, the All-Share Index fell by about<br />
16 percent, and the Industrials Index fell by about 4 percent.<br />
B shares – the more heavily traded of <strong>Scania</strong>’s two<br />
series – fell by 9 percent during <strong>2001</strong>. At year-end,<br />
B shares were quoted at a market value of SEK 192.00.<br />
This was equivalent to a market capitalisation of SEK<br />
38,100 m. for <strong>Scania</strong>. The highest price for B shares<br />
during the year, SEK 243.00, was paid on 1 February.<br />
The lowest, SEK 132.00, was paid on 21 September.<br />
<strong>Scania</strong> share trading volume<br />
On average, about 118,100 <strong>Scania</strong> B shares changed<br />
hands each trading day in Stockholm. The turnover rate<br />
for B shares was 29 (36) percent, compared to 134<br />
(107) percent on Stockholmsbörsen as a whole. In New<br />
York, an average of about 41 <strong>Scania</strong> ADRs were traded<br />
per day. At year-end, there were about 71,000 (86,000)<br />
ADRs outstanding.<br />
Ownership structure<br />
Volkswagen AG has been <strong>Scania</strong>’s largest owner in<br />
terms of votes, with 34.0 percent of voting power and<br />
18.7 percent of share capital, since March 2000 when<br />
200<br />
100<br />
Trading volume in thousands (including after-market)<br />
60,000<br />
40,000<br />
20,000<br />
0 97 98 99 00 01 02<br />
About <strong>Scania</strong> shares<br />
<strong>Scania</strong>’s share capital is divided into 100 million A shares and<br />
100 million B shares. Each A share represents one vote and each<br />
B share one tenth of a vote. Otherwise there are no differences<br />
between these types of shares. The nominal (par) value per<br />
share is SEK 10.<br />
Market listings<br />
Since 1 April 1996, both types of <strong>Scania</strong> shares – Series A and Series<br />
<strong>Scania</strong> B shares<br />
B – have been quoted on Stockholmsbörsen and the New York<br />
Stock Exchange (NYSE). In Stockholm, both A shares and B shares<br />
are quoted on the exchange’s A list, in the ‘‘most traded” segment.<br />
A round lot consists of 100 shares.<br />
On the NYSE, <strong>Scania</strong>’s shares are traded in the form of American<br />
Depositary Receipts (ADRs), consisting of 10 shares, with Citibank<br />
as the depositary bank. <strong>Scania</strong> shares are also traded on the<br />
London Stock Exchange Automated Quotations system for non-UK<br />
equities (SEAQ International).<br />
10
it bought part of Investor’s stake in <strong>Scania</strong>.<br />
Investor’s stake in <strong>Scania</strong> after the sale amounts to<br />
15.3 percent of the votes and 9.1 percent of the capital.<br />
Investor is thus <strong>Scania</strong>’s third-largest shareholder.<br />
Volvo has 30.6 percent of the votes and 45.5 percent<br />
of the capital in <strong>Scania</strong>. Volvo is thus <strong>Scania</strong>’s secondlargest<br />
owner in terms of votes and largest owner in<br />
terms of capital. The European Commission decided<br />
to restrict Volvo’s ownership influence in <strong>Scania</strong>, and<br />
Volvo must divest its <strong>Scania</strong> holding by April 2004 at<br />
the latest.<br />
On January 2002, the number of shareholders in<br />
<strong>Scania</strong> was about 39,000, a decrease of 2,000 since<br />
January <strong>2001</strong>. Non-Swedish ownership including<br />
Volkswagen AG amounted to 35.8 percent of votes<br />
and 21.4 percent of capital.<br />
Beta coefficient<br />
According to Stockholmsbörsen’s calculations, the<br />
beta coefficient for <strong>Scania</strong>’s B shares was 0.69 at<br />
year-end. This means that on average, <strong>Scania</strong> shares<br />
fluctuated less than the average for the exchange. The<br />
explanatory value for <strong>Scania</strong> shares was 0.18. This<br />
means that 18 percent of the changes in <strong>Scania</strong><br />
shares could be explained by overall changes on the<br />
exchange.<br />
Dividend<br />
The Board of Directors proposes that the Annual General<br />
Meeting approve a dividend of SEK 3.50 per share<br />
for the financial year <strong>2001</strong>. The dividend for 2000<br />
amounted to SEK 7.00 per share.<br />
Per share data<br />
SEK (unless otherwise stated) <strong>2001</strong> 2000 1999<br />
Earnings 5.24 15.40 15.73<br />
Shareholders’ equity 79.98 78.49 67.74<br />
Dividend (<strong>2001</strong>: proposed) 3.50 7.00 7.00<br />
Market prices, B shares<br />
Highest for the year 243.00 310.00 312.50<br />
Lowest for the year 132.00 205.00 154.00<br />
Year-end (at closing) 192.00 210.00 306.50<br />
Price/earnings ratio, B shares 36.6 13.6 19.5<br />
Dividend payout ratio, % 66.8 45.5 44.5<br />
Dividend yield, % 1 1.8 3.3 2.3<br />
Annual turnover rate, % (B shares) 29 36 205<br />
Number of shareholders 39,000 2 41,000 3 43,000 4<br />
Average daily number of shares<br />
traded, <strong>2001</strong>:<br />
– Stockholmsbörsen A 30,400<br />
B 118,100<br />
Total 148,500<br />
– New York Stock Exchange A ADRs 16<br />
B ADRs 25<br />
Total 41<br />
1 Dividend divided by the market price of a B share at year-end.<br />
2 On 31 January 2002.<br />
3 On 31 January <strong>2001</strong>.<br />
4 On 29 January 2000.<br />
The ten largest shareholders, 31 January 2002<br />
% of % of<br />
voting power capital<br />
Volkswagen 34.0 18.7<br />
Volvo 30.6 45.5<br />
Investor 15.3 9.1<br />
Wallenberg foundations 4.2 3.5<br />
Alecta (formerly SPP) 4.0 2.9<br />
SHB Handelsbanken sphere 2.2 1.9<br />
Nordea mutual funds 1.1 1.3<br />
AMF Pension 0.5 0.6<br />
Sixth Swedish National Pension Fund 0.2 0.3<br />
D. Carnegie 0.2 0.1<br />
Total 92.3 83.9<br />
Ownership structure, 31 January 2002<br />
% of % of<br />
Number of shares shareholders capital<br />
1– 500 90.1 2.4<br />
501– 2,000 7.5 1.5<br />
2,001– 10,000 1.7 1.6<br />
10,001– 50,000 0.4 1.7<br />
50,001– 100,000 0.1 1.0<br />
> 100,000 0.2 91.8<br />
Total 100.0 100.0<br />
<strong>Scania</strong>’s website, www.scania.com includes continuous information<br />
about <strong>Scania</strong>, <strong>Scania</strong> shares, quarterly <strong>report</strong>s and Annual<br />
Reports and provides a way to contact <strong>Scania</strong>’s Investor Relations<br />
department.<br />
11
Vision, mission statement and strategy<br />
Vision<br />
<strong>Scania</strong> shall be the leading company in<br />
its industry by creating lasting value for<br />
its customers, employees, shareholders<br />
and other stakeholders.<br />
Mission statement<br />
<strong>Scania</strong>’s mission is to supply its customers with<br />
high-quality vehicles and services related to the<br />
transport of goods and passengers by road. By<br />
focusing on customer needs, high-quality products<br />
and services as well as respect for the individual,<br />
<strong>Scania</strong> shall create value-added for the<br />
customer and grow with sustained profitability.<br />
<strong>Scania</strong> thereby also generates shareholder value.<br />
<strong>Scania</strong>’s industrial operations specialise in<br />
developing and manufacturing vehicles, which<br />
shall lead the market in terms of performance,<br />
life-cycle cost, quality and environmental characteristics.<br />
<strong>Scania</strong>’s commercial operations, which<br />
include the sales and service organisation, shall<br />
supply customers with vehicles and after-sales<br />
support, thereby providing maximum operating<br />
time at minimum cost over the service life of their<br />
vehicles.<br />
Strategy<br />
Concentration on heavy transport vehicles<br />
<strong>Scania</strong>’s operations focus exclusively on heavy transport<br />
vehicles. In mature markets, demand for trucks<br />
and buses in the heavier segment increases with GDP<br />
growth. In developing countries, it increases faster or<br />
at the same pace as the infrastructure expands and<br />
standards of efficiency improve in the transport<br />
industry.<br />
Modular product system<br />
With <strong>Scania</strong>’s modular product system, the customer<br />
gets the exact vehicle specification he or she wants.<br />
The more closely a vehicle is adapted to its transport<br />
task, the better the customer’s operating economy will<br />
be. The modular system is the basis for production<br />
quality. It simplifies parts management and contributes<br />
to a higher degree of service.<br />
The modular system limits the total number of main<br />
components that are included in <strong>Scania</strong>’s product<br />
range. It thereby allows considerably longer production<br />
runs for these components than is possible in a conventional<br />
product system. <strong>Scania</strong>’s modular product<br />
range and global quality standards make it possible<br />
to use the same process engineering at all <strong>Scania</strong><br />
facilities.<br />
Complete range of vehicles,<br />
services and financing<br />
Offering the best package solutions in the market is<br />
the key to implementing <strong>Scania</strong>’s growth targets.<br />
<strong>Scania</strong>’s customers increasingly use their vehicles<br />
round the clock. This presupposes rapid, continuous<br />
access to service and repairs. In addition to its vehicle<br />
development work, <strong>Scania</strong> is continuously improving its<br />
sales and service network. Customer financing is an<br />
important element of <strong>Scania</strong>’s complete product range.<br />
Focus on growth markets<br />
<strong>Scania</strong>’s main markets – Europe, Latin America and<br />
Asia – have good potential for long-term growth.<br />
An increasingly borderless Europe, with growing<br />
economies, is offering major opportunities to manufacturers<br />
with a well-developed sales and service<br />
network.<br />
In Latin America, the demand for vehicles, services<br />
and financing is increasing as an increasing share<br />
of both goods and passenger traffic utilises heavy<br />
vehicles.<br />
Asia is a long-term growth market. Infrastructur<br />
improvements will open the way for a more efficient<br />
transport sector.<br />
13
Identity and brand name<br />
<strong>Scania</strong> has a strong brand name. Behind<br />
this is a solid corporate culture that always<br />
puts the customer first. Respecting the<br />
knowledge, experience and desire of all<br />
individual employees to continuously improve<br />
their work is fundamental to <strong>Scania</strong>’s culture.<br />
A brand that inspires confidence<br />
<strong>Scania</strong> has always offered good technical solutions,<br />
with the ambition of outperforming its competitors.<br />
The company’s products and services should not only<br />
live up to customer expectations, but also surpass<br />
them.<br />
<strong>Scania</strong> engenders a sense of pride among employees<br />
as well as customers. The customer should feel<br />
secure and confident that he or she has made a sound<br />
investment. <strong>Scania</strong> products help vehicle owners and<br />
drivers to enjoy respect for their choice of professional<br />
working tools.<br />
Values<br />
Aside from the company’s products – vehicles, services<br />
and customer financing – <strong>Scania</strong>’s identity is<br />
shaped by its values and working methods.<br />
The various units of the company share three values,<br />
which form the basis of both <strong>Scania</strong>’s corporate<br />
culture and its business success:<br />
Putting the customer first<br />
<strong>Scania</strong> focuses all its efforts on the needs and activities<br />
of its customers. It does so by optimising the<br />
value chain – from development work via production<br />
and sales to customer finance and servicing of<br />
vehicles while they are in operation. By viewing its<br />
business over a vehicle’s entire life cycle, <strong>Scania</strong> also<br />
creates a close contact with each customer.<br />
Respect for the individual<br />
Respect for the individual is a cornerstone of leadership<br />
at <strong>Scania</strong>. One of the most important tasks of a<br />
<strong>Scania</strong> manager is thus to teach fellow employees and<br />
to apply the principles that govern the company’s<br />
work.<br />
New ideas and inspiration are born out of day-today<br />
operations. When given increased responsibility,<br />
<strong>Scania</strong>’s employees always seek better solutions in<br />
their work. Their knowledge, experience and desire<br />
for continuous improvements contribute to greater<br />
efficiency.<br />
Quality<br />
The quality of <strong>Scania</strong>’s products and services must be<br />
first-class and uncompromising. All employees, no<br />
matter where they are in the organisation, know that<br />
only by delivering high quality can <strong>Scania</strong> surpass<br />
customer expectations. This also eliminates waste in<br />
the organisation.<br />
By immediately dealing with deviations – ‘‘loving<br />
deviations” to put it a bit more colourfully – and then<br />
promptly remedying them, <strong>Scania</strong>’s employees continuously<br />
improve the quality of their products and the<br />
efficiency of their work process.<br />
14
<strong>Scania</strong>’s role in society<br />
An ethical approach to work and business is<br />
the responsibility of every employee. Respect<br />
for the individual is one of the core values that<br />
define how <strong>Scania</strong>’s employees behave<br />
towards their surroundings and their fellow<br />
employees.<br />
<strong>Scania</strong> works actively to emphasise ethical and social<br />
values within the organisation. There is a strong connection<br />
between business ethics, social commitment<br />
and the <strong>Scania</strong> brand.<br />
Ethics<br />
The overall purpose of <strong>Scania</strong>’s operations is to create<br />
lasting value for its customers, employees, shareholders<br />
and other stakeholders. Sound ethics and<br />
high moral standards are a precondition for winning<br />
and maintaining trust and respect – and thereby also<br />
for profitable long-term operations.<br />
<strong>Scania</strong> supports and respects the international<br />
principles of human rights.<br />
Assuming social responsibility<br />
<strong>Scania</strong> regards assuming social responsibility as selfevident.<br />
Also important is working towards positive<br />
local social development where <strong>Scania</strong> has operations.<br />
One way in which <strong>Scania</strong> pursues its commitment<br />
to social issues is through collaboration with various<br />
public agencies and organisations. During <strong>2001</strong>, <strong>Scania</strong><br />
organised a top-level road safety conference in<br />
Brussels, attended by some 300 decision-makers from<br />
the European Commission, the EU Parliament and<br />
During <strong>2001</strong>, <strong>Scania</strong> organised a large road safety conference in Brussels. EU Commissioner Erkki Liikanen and <strong>Scania</strong> CEO Leif Östling look more<br />
closely at how intelligent transport systems can improve road safety.<br />
other organisations. At the conference, <strong>Scania</strong> took<br />
the initiative for two projects aimed at improving road<br />
safety in Europe, Young European Truck Driver and<br />
the creation of a common European road database<br />
for heavy vehicle operators.<br />
Freedom of contract and<br />
co-determination<br />
All employees of <strong>Scania</strong>’s global organisation are fully<br />
entitled to participate in trade union work, and a<br />
majority of employees belong to a union.<br />
In those countries where <strong>Scania</strong> has production<br />
units, employees have access to company information<br />
and the right to co-determination, as provided by<br />
national legislation.<br />
Collective negotiations take place at all production<br />
sites and in most sales companies.<br />
Suppliers<br />
<strong>Scania</strong> has a procurement policy that specifies the<br />
standards required in the company’s relationship with<br />
its suppliers. Business ethics and social aspects play<br />
as central a role here as quality and environmental<br />
standards.<br />
Among other things, <strong>Scania</strong>’s procurement policy<br />
states that ethics and integrity are the responsibility<br />
of every employee and that, in cases where business<br />
activities are not covered by special laws or rules,<br />
<strong>Scania</strong>’s behaviour shall always be characterised by<br />
honesty and respect for others.<br />
15
Product concept<br />
To enable <strong>Scania</strong> to continuously surpass<br />
customer expectations, its operations are<br />
based on an integrated product concept that<br />
combines vehicles, service-related products<br />
and financing. Through its collective<br />
knowledge in these fields, <strong>Scania</strong> helps to<br />
improve the profitability of its customers.<br />
Deregulation of markets and increased international<br />
trade imply far-reaching changes in the working conditions<br />
of transport operators. Large national or international<br />
haulage companies are being formed through<br />
mergers or acquisitions. The transport industry is<br />
increasingly dominated by companies with large,<br />
highly developed vehicle fleets and by specialised<br />
smaller companies. There is a growing demand for<br />
such services as financing, insurance, short-term<br />
leasing and maintenance. Using flexible package<br />
solutions that are tailored to fit each customer’s<br />
needs, <strong>Scania</strong> helps many companies to achieve<br />
comprehensive transport solutions.<br />
The future will require continuously optimising the<br />
value chain – from product development through<br />
production, sales, customer financing and servicing<br />
of vehicles.<br />
Vehicles, service-related products<br />
and financing are essential elements<br />
of <strong>Scania</strong>’s value chain.<br />
Vehicles<br />
The better <strong>Scania</strong>’s vehicles and service-related<br />
products are adapted to the customer’s transport task,<br />
the higher the customer’s profitability will be. <strong>Scania</strong>’s<br />
modular system is based on using components in<br />
many different combinations, giving customers a<br />
nearly unlimited number of possibilities to tailor<br />
vehicles to their needs.<br />
Service-related products<br />
Buyers of heavy vehicles want specific solutions that<br />
enable them to use each vehicle optimally. Many<br />
customers prefer to pay a fixed per-kilometre price<br />
to ensure that their vehicle will always be on the road,<br />
without needing to worry about service, maintenance<br />
and availability. This is why <strong>Scania</strong> has developed a<br />
broad range of services that make it possible for<br />
customers to focus on their core business – transport<br />
services and logistics.<br />
With a broad, far-flung network of 1,000 sales<br />
locations and 1,500 service points, customers always<br />
have access to <strong>Scania</strong> products and service.<br />
Financing<br />
Customer financing is an important component of<br />
<strong>Scania</strong>’s package solutions. Financing of vehicles<br />
occurs by means of operating leases, financial leases<br />
and hire purchase contracts. In Latin America, <strong>Scania</strong><br />
offers customer-financed savings programmes, while<br />
also working with external lenders.<br />
New financial services related to <strong>Scania</strong>’s products<br />
are continuously being developed.<br />
16
Industrial and commercial system<br />
The governance of <strong>Scania</strong> is based on the<br />
company’s integrated global structure.<br />
Vehicles, services and customer financing<br />
are elements of the same product offering,<br />
which creates value-added for customers.<br />
Group Management<br />
The market<br />
Staff units<br />
Staff units<br />
<strong>Scania</strong>’s<br />
commercial<br />
system<br />
<strong>Scania</strong>’s industrial system<br />
Service<br />
<strong>Scania</strong>’s industrial system is responsible for development<br />
and manufacture of vehicles and engines, as<br />
well as development of services and marketing of<br />
products. Future customer needs, combined with<br />
technological advances, determine the company’s<br />
product development work.<br />
All development work occurs in direct collaboration<br />
with production units, to ensure that products can<br />
be manufactured in an efficient way with the highest<br />
quality.<br />
The marketing unit in the industrial system gathers<br />
signals from the market and direct them to the<br />
development organisation, which shapes concrete<br />
development projects. The marketing unit is responsible<br />
for market and volume planning as well as for<br />
developing the sales and service network.<br />
<strong>Scania</strong>’s<br />
industrial<br />
system<br />
Development<br />
Products and services<br />
Production<br />
Marketing<br />
Sales<br />
<strong>Scania</strong>-owned and<br />
independent<br />
sales and service<br />
organisation<br />
<strong>Scania</strong>’s commercial system<br />
<strong>Scania</strong>’s commercial system consists of national sales<br />
and service organisations. Those that are owned by<br />
<strong>Scania</strong> work independently under their own boards of<br />
directors, according to the growth and financial return<br />
targets and principles established by <strong>Scania</strong>.<br />
The companies in the commercial system – both<br />
<strong>Scania</strong>-owned or independent – negotiate on market<br />
terms with the industrial system.<br />
17
Employees<br />
Respect for the individual is a precondition for<br />
the development of employees – both in their<br />
work and as human beings. The main key to<br />
this is highly skilled leadership and long-term<br />
human resource development.<br />
Leadership focused on working methods<br />
Clear, supportive leadership, with clear allocation of<br />
responsibilities, is fundamental to <strong>Scania</strong>’s continuous<br />
improvement efforts. This establishes a creative, secure<br />
environment, thereby encouraging initiatives and the<br />
courage to break new ground, and rewarding concrete,<br />
lasting results.<br />
One of the most important tasks of a <strong>Scania</strong> manager<br />
is to teach and to apply the principles that form the basis<br />
of the continuous improvement method of working.<br />
Employees in the company’s operations often give birth<br />
to new ideas and impulses, while their managers stimulate<br />
the continuous development of working methods.<br />
This leads to lasting improvements in results.<br />
Human resource development<br />
<strong>Scania</strong> managers must utilise the talents of their fellow<br />
employees and stimulate development. At the same time,<br />
each individual employee has a responsibility for improving<br />
his or her own skills.<br />
<strong>Scania</strong>’s human resource development work has a<br />
long-term focus – from contacts with schools to qualityassured<br />
training programmes tailored to the needs of<br />
employees throughout their years with the company.<br />
During <strong>2001</strong>, 10,000 participants underwent training in<br />
200 different courses as part of <strong>Scania</strong>’s programmes.<br />
<strong>Scania</strong>’s industrial research programme enables graduate<br />
engineers to combine permanent employment with<br />
research at the licentiate or doctoral level.<br />
The <strong>Scania</strong> Marketing Academy provides academically<br />
accredited training that develops leadership talent and<br />
strengthens the business skills of <strong>Scania</strong>’s marketing<br />
organisation. The Academy is run in collaboration with<br />
the Stockholm School of Economics.<br />
<strong>Scania</strong> operates its own technical upper secondary<br />
school in Södertälje, which trains certified fitters and<br />
production mechanics. There are also <strong>Scania</strong>-affiliated<br />
industrial schools in Zwolle and São Paulo.<br />
Global corporate culture<br />
The Personnel Exchange Programme (PEP) broadens the<br />
skills of <strong>Scania</strong> employees and enables them to work in<br />
other countries. Since it was established, more than 550<br />
<strong>Scania</strong> employees have completed the programme.<br />
Motivating employees<br />
A good working environment, personal responsibility and<br />
teamwork provide motivation. Combined with bonus systems,<br />
they increase employee participation and dedication.<br />
In Sweden, the bonus system is based on the year’s<br />
delivery assurance and productivity growth. Funds are<br />
transferred to a foundation in which each employee holds<br />
shares. At year-end <strong>2001</strong>, the foundation owned 0.5 percent<br />
of <strong>Scania</strong> shares. In France, the bonus is determined<br />
by earnings, quality and delivery precision, and in the<br />
Netherlands by earnings and low absenteeism.<br />
In Latin America, the bonus is based on production,<br />
low absenteeism, market leadership, teamwork and<br />
improvement efforts.<br />
With 1,700 employees, the cab production unit<br />
in Oskarshamn is one of <strong>Scania</strong>’s largest plants.<br />
18
<strong>Scania</strong>’s trainee programme<br />
To ensure a long-term supply of employees for key<br />
positions, <strong>Scania</strong> operates a trainee programme<br />
designed primarily for newly graduated engineers<br />
and economists or MBAs, giving them an opportunity<br />
to work for one year in different positions at<br />
the company. The programme, which also<br />
includes a training period abroad, provides the<br />
necessary skills for a successful future career in<br />
the world of <strong>Scania</strong>.<br />
Karl Bernqvist, Sweden, procurement trainee:<br />
‘‘Through the trainee programme, I have become acquainted<br />
with people and parts of the organisation that I would otherwise<br />
not have come into contact with in an equally natural way.<br />
It has provided me with the basis for a holistic view that will be<br />
of great use to me in my daily work and my future career. During<br />
my next training periods I will be working in marketing and<br />
production, and finally abroad with an importer or dealership,<br />
which I am really looking forward to.”<br />
Ronnie Dedden, the Netherlands,<br />
production trainee:<br />
‘‘The trainee programme is a fantastic opportunity to learn<br />
more about a respected, global company like <strong>Scania</strong>. For<br />
me, product development has been a good place to start,<br />
right at the heart of <strong>Scania</strong>. Now I am looking forward to<br />
gaining more experience during my other training periods<br />
in production, logistics and marketing.”<br />
Anna Wallin, Sweden, marketing trainee:<br />
‘‘During my first trainee period, I have been at a <strong>Scania</strong> dealership.<br />
My work there has given me a good understanding of the<br />
customer’s business. One of the high points was when I was<br />
allowed to travel with a truck driver for one week and learn<br />
how a <strong>Scania</strong> should be designed to give our customers the<br />
best possible working conditions.<br />
‘‘During the trainee programme, I hope to learn a lot about<br />
the product, the industry, competitive conditions and especially<br />
about the <strong>Scania</strong> organisation. I am also looking forward to<br />
international contacts and personal development.”<br />
19
The <strong>Scania</strong> Production System<br />
One essential element of the Group’s industrial<br />
system is the <strong>Scania</strong> Production System (SPS),<br />
which provides the basis for growth, competitiveness<br />
and increased profitability.<br />
<strong>Scania</strong>’s components are the same, regardless of<br />
whether production takes place in Europe, Latin<br />
America or some other part of the world.<br />
The same thing applies to the philosophies, principles<br />
and priorities that govern its working methods.<br />
Regardless of what languages are spoken at <strong>Scania</strong>’s<br />
production plants, their employees share a common<br />
production language. A language where the customer<br />
always comes first.<br />
The <strong>Scania</strong> Production System has been developed<br />
at the company’s own workshops. In most places, SPS<br />
is now firmly rooted in <strong>Scania</strong>’s day-to-day work. Its<br />
most important success factor is the knowledge, experience<br />
and willingness of all individual employees to<br />
continuously improve their work. <strong>Scania</strong> employees are<br />
growing into new, creative roles. Everyone personally<br />
participates in developing methods and tools, in order<br />
to make the production system as dynamic as possible.<br />
<strong>Scania</strong>’s suppliers are also part of this production<br />
system, which is based on three philosophies:<br />
• Putting the customer first<br />
• Respecting the individual<br />
• Quality – eliminating waste<br />
Four main principles<br />
The <strong>Scania</strong> Production System is based on four main<br />
principles:<br />
Standardised working method<br />
Doing it right the first time<br />
Consumption-controlled production<br />
Continuous improvements<br />
Standardised working method<br />
– the normal situation<br />
To ensure that <strong>Scania</strong>’s products maintain high and<br />
uniform quality, work processes have been standardised<br />
and documented. Tasks are performed in a specific<br />
way, at a specific pace and with an even, balanced<br />
flow throughout the production chain. In the<br />
<strong>Scania</strong> Production System, this is called the ‘‘normal<br />
situation”. Given a standardised working method, both<br />
manufacturing time and quality will be constant.<br />
Doing it right the first time<br />
<strong>Scania</strong>’s quality improvement efforts are based on the<br />
principle of ‘‘Doing it right the first time”. Since work<br />
takes place visually, with visible buffers and process<br />
follow-up posted on bulletin boards, what is normal or<br />
abnormal becomes obvious. Direct feedback to the<br />
person who caused a deviation allows it be remedied<br />
quickly, helping to create a quality-assured work<br />
process.<br />
Consumption-controlled production<br />
<strong>Scania</strong>’s customers decide how many trucks, buses or<br />
industrial and marine engines will be manufactured. It<br />
is the customer who determines when production will<br />
begin. This principle permeates the entire <strong>Scania</strong> production<br />
chain, from submitting orders to suppliers<br />
through production and assembly through the final<br />
product that is ready for delivery.<br />
With consumption-controlled production, <strong>Scania</strong><br />
manufactures products with higher quality and at lower<br />
cost, while all of the customer’s wishes can more<br />
easily be satisfied.<br />
20
Consumption-controlled production also applies to the<br />
provision of services, where activities are based on real<br />
needs.<br />
Continuous improvements<br />
Continuous improvements mean discovering and<br />
eliminating waste, then applying the resulting liberated<br />
resources to productive tasks.<br />
1,000 improvement teams<br />
The most important success factor in the <strong>Scania</strong> Production<br />
System is the work of the improvement teams.<br />
Worldwide, <strong>Scania</strong> now has more than 1,000 such<br />
teams, in which managers, engineers, fitters, equipment<br />
operators and other categories of employees<br />
contribute their knowledge, professional skills and talent<br />
to solving problems. Challenging and improving<br />
the existing processes is part of the daily work of<br />
these teams. The goal is to find the easiest flow and<br />
the easiest method for each situation in their daily<br />
work, in order to achieve the highest possible quality<br />
and the least possible waste of resources.<br />
Leadership focusing on working methods<br />
One of the most important tasks of managers in the<br />
<strong>Scania</strong> Production System is to teach the principles<br />
on which the SPS working method is based. Everyone<br />
involved in operations helps to give birth to new<br />
ideas and impulses, with managers encouraging the<br />
development of new standardised working methods<br />
and making sure that these methods enjoy employee<br />
support. This kind of leadership is participative and<br />
supportive, and it leads to continuous improvements.<br />
The modular system<br />
Product specifications are based on<br />
customers’ individual needs. The<br />
modular system enables <strong>Scania</strong><br />
to offer tailor-made vehichles that<br />
increase the profitability of the<br />
customers, while ensuring <strong>Scania</strong>’s<br />
cost-effectiveness.<br />
Different thickness of side-members<br />
Basic gearboxes<br />
Engines with the same combustion chamber<br />
Cabs that can be adapted as needed<br />
Rear axles<br />
Front axles<br />
21
Research and development<br />
The <strong>Scania</strong> Technical Centre makes improvements<br />
and refinements in today’s product<br />
range, while laying the groundwork for the<br />
next product generation. To the 1,300<br />
researchers and engineers working at the<br />
company’s product development units, one<br />
of the major challenges is to successfully<br />
combine the future needs of customers with<br />
technological developments.<br />
Quality<br />
The complexity of the products developed by <strong>Scania</strong>’s<br />
researchers and engineers increases every year.<br />
Advanced new measuring techniques contribute to continuous<br />
improvements in quality. Nowadays many tests<br />
are performed in computer simulation programmes, in<br />
less time and with greater precision than previously.<br />
The vehicles of tomorrow<br />
Products being developed today will be in the market<br />
four or five years from now. Trying to foresee what the<br />
transport industry will look like over such a long period<br />
is a difficult but necessary task for <strong>Scania</strong>. Not only<br />
must today’s problems be solved, but also tomorrow’s<br />
– problems that are largely still unknown.<br />
During <strong>2001</strong>, research and development<br />
expenses rose to SEK 1,955 m. (1,621).<br />
In the photo, work is underway on a<br />
turbocompound unit.<br />
22
Safety<br />
Safety-mindedness has a long tradition at <strong>Scania</strong> and<br />
for many years it has been integrated into all of the<br />
company’s development work. Today <strong>Scania</strong> is a<br />
pacesetter in accident-prevention vehicle technology<br />
and is working towards international harmonisation of<br />
road safety improvements.<br />
In November <strong>2001</strong>, <strong>Scania</strong> organised its second<br />
European road safety conference, attended by officials<br />
from the European Commission as well as other public<br />
agencies and organisations. The purpose of the conference<br />
was to examine road safety in a holistic way,<br />
embracing all three main actors: drivers, vehicles and<br />
road networks. The conference focused on how new<br />
technology can be applied in order to improve safety<br />
on European roads.<br />
The intelligent truck<br />
Electronic engineering is playing an increasingly prominent<br />
role in the development of vehicles that are safer<br />
on the road. Above all, electronic equipment benefits<br />
active safety, in other words, it helps prevent accidents<br />
from happening. With the aid of electronics, vehicle<br />
functions can be monitored in such a way as to give<br />
the driver more time to concentrate on traffic.<br />
In the near future, advances in information technology<br />
(IT) will affect other areas of road safety as<br />
well, for example vehicle safety standards, logistics,<br />
navigation and communication.<br />
Perceived quality<br />
Customer choices are also determined for reasons<br />
other than purely quantifiable vehicle characteristics<br />
During <strong>2001</strong>, <strong>Scania</strong> introduced red seatbelts, which are clearly<br />
visible from outside when in use.<br />
and performance. Product design and identity are<br />
becoming increasingly important. Today’s product<br />
developers must also pay close attention to the ‘‘soft”<br />
values inherent in the <strong>Scania</strong> brand.<br />
Standardised working method<br />
The concepts in the <strong>Scania</strong> Production System have<br />
also been adapted to the work of the Technical Centre,<br />
with one objective being to deliver test results in a<br />
more systematic, efficient way. Streamlining the work<br />
process will allow more time to be used for creativity.<br />
Environmental priorities in<br />
development work<br />
Life-cycle thinking is the foundation of <strong>Scania</strong>’s research<br />
and development work. The <strong>Scania</strong> Technical Centre<br />
pursues the long-term task of developing future<br />
generations of vehicles and engines. By weighing in<br />
the environmental aspects at an early stage of development<br />
work, the environmental impact of the product<br />
can be reduced throughout its life cycle. Better fuel<br />
consumption and reduced emissions are always in the<br />
spotlight. Choosing the right materials and decreasing<br />
vehicle weight without sacrificing quality, cargo capacity<br />
and performance are other high-priority areas.<br />
New IT systems are helping to improve road safety.<br />
23
24<br />
<strong>Scania</strong>’s largest truck production plant<br />
is located in Zwolle, the Netherlands.<br />
Since its inauguration in 1964, more<br />
than a quarter million heavy trucks<br />
have been manufactured here.
Production<br />
<strong>Scania</strong> is continuing to improve its production<br />
processes, based on the principles of the<br />
<strong>Scania</strong> Production System.<br />
Extensive restructuring is underway in cab<br />
production and in bus and coach operations,<br />
in order to strengthen their long-term future.<br />
In Latin America, <strong>Scania</strong> began a number<br />
of vigorous action programmes to lower costs<br />
and adapt its operations to the weak economic<br />
growth in the region.<br />
<strong>Scania</strong> has production facilities in Europe and Latin<br />
America, plus assembly plants at a number of locations<br />
in Africa and Asia. The European production<br />
units supply the markets in Europe as well as in Asia,<br />
Africa and Australia. The production network in Latin<br />
America primarily supplies the Latin American market.<br />
During <strong>2001</strong>, <strong>Scania</strong> completed the task of concentrating<br />
its European engine production in Södertälje<br />
as well as restructuring chassis assembly in Södertälje.<br />
The gradual transfer of cab manufacture from Meppel,<br />
the Netherlands to Oskarshamn, Sweden is continuing<br />
and will be completed during 2002.<br />
Continued restructuring of bus operations<br />
In order to improve and strengthen <strong>Scania</strong>’s bus business,<br />
increase its competitiveness and achieve sustainable<br />
profitability comparable to that of truck operations,<br />
during <strong>2001</strong> <strong>Scania</strong> continued its restructuring<br />
of European bus and coach operations.<br />
To take advantage of synergies with trucks, <strong>Scania</strong><br />
is gathering its product development, production,<br />
purchasing, marketing and sales resources into<br />
common units with responsibility for both trucks and<br />
bus chassis.<br />
Bus bodybuilding operations, with shorter production<br />
series and a large element of craftsmanship, will form a<br />
separate unit with its own resources and development<br />
opportunities. The restructuring of <strong>Scania</strong>’s bus operations<br />
will be completed during 2002.<br />
Production systems<br />
The <strong>Scania</strong> Production System (SPS) continuously<br />
improves processes as well as products, thereby<br />
increasing efficiency and profitability. The core of SPS<br />
is management by means, instead of management by<br />
results. Based on a number of philosophies and principles,<br />
<strong>Scania</strong>’s employees have developed working<br />
<strong>Scania</strong>’s European cab production is being concentrated at Oskarshamn.<br />
methods that have paid off in the form of higher quality<br />
and better competitiveness.<br />
Flexibility<br />
Since order bookings began to decline late in 2000,<br />
<strong>Scania</strong> has reduced the number of production<br />
employees in Europe by about 1,200. Most of these<br />
employees were on short-term contracts.<br />
The flexibility of the <strong>Scania</strong> Production System<br />
makes it possible to respond more smoothly to<br />
changes in volume. Flexible working hours and component<br />
exchanges between Europe and Latin America<br />
are important in order to adapt production to order<br />
bookings. When these opportunities are exhausted,<br />
the number of employees must be increased or<br />
reduced.<br />
Concentrated component production<br />
The changes underway in <strong>Scania</strong>’s production structure<br />
are being adapted to the principles of SPS. During<br />
the year, <strong>Scania</strong> began a major restructuring of its<br />
European powertrain production, that is, engines,<br />
gearboxes and axles. This task, which will be completed<br />
late in 2004, will result in a concentration of<br />
component production. The new structure will make<br />
it easier to work according to the main principles of<br />
SPS, resulting in both quality improvements and cost<br />
savings.<br />
Decentralised final assembly<br />
Another principle of <strong>Scania</strong>’s production structure is<br />
decentralised final assembly. By locating final assembly<br />
as close to the customer as possible, the company<br />
25
achieves shorter lead times, a better feel for customer<br />
needs and lower logistics expenses.<br />
Production in Europe<br />
During the year, <strong>Scania</strong> produced a total of 40,023<br />
(46,353) vehicles in Europe, of which 37,399 (44,235)<br />
were trucks and 2,624 (2,118) buses. It also produced<br />
2,692 (2,527) industrial and marine engines.<br />
Productivity, measured as the number of vehicles<br />
manufactured divided by hours worked, declined by<br />
13.9 percent. Declines in productivity are common<br />
during volume downturns, before the staffing level can<br />
be adjusted.<br />
The workforce at <strong>Scania</strong>’s European production<br />
units declined to a total of 9,160, of whom 72 percent<br />
worked in Sweden, 20 percent in the Netherlands and<br />
5 percent in France. The proportion of employees on<br />
short-term contracts declined during the year, due to<br />
lower production.<br />
The pay level rose by 5.3 percent in Sweden, compared<br />
to 4.2 percent in the Netherlands and 3.5 percent<br />
in France, calculated in local currency.<br />
Depreciation fell compared to 2000, reaching SEK<br />
1,130 m. (1,088). Capital expenditures in production<br />
operations totalled SEK 1,001 m. (837).<br />
Production in Latin America<br />
As a consequence of the weak trend in Latin American<br />
markets, <strong>Scania</strong> took vigorous steps to deal with profitability<br />
problems in its Latin American operations and<br />
to achieve a competitive cost level.<br />
In Brazil, the company initiated a reduction in the<br />
workforce by means of cyclically adapted working<br />
hours and a severance pay offer. In Argentina, <strong>Scania</strong><br />
took additional steps which, together with the devaluation<br />
of the peso, will result in sizeable cost reductions<br />
at Latin American production units.<br />
In order to lower costs, efforts to increase the local<br />
content of <strong>Scania</strong>’s products also continued.<br />
Procurement<br />
During the year, <strong>Scania</strong> continued its work to integrate<br />
advanced key suppliers more closely into its operations.<br />
These suppliers are now joining the development<br />
and production process at an earlier stage. They<br />
will participate in operations in the same way as<br />
<strong>Scania</strong>’s own units.<br />
Pre-assembly at the cab production unit in Oskarshamn.<br />
Quality and delivery assurance<br />
<strong>Scania</strong>’s customer order-controlled production system<br />
places strict demands on all links in the value chain,<br />
including both external and internal suppliers, to<br />
deliver the right products with the right quality at the<br />
right time.<br />
Quality and delivery assurance are very important<br />
factors in choosing sub-contractors. <strong>Scania</strong>’s suppliers<br />
must be certified according to the QS 9000 quality<br />
programme and must have an ISO 14001 certified<br />
environmental management system.<br />
Supplier structure<br />
Suppliers of key components must be located close to<br />
the company’s production facilities. Other suppliers are<br />
26
chosen more freely in order to obtain components at<br />
lower cost.<br />
During the year, in several areas <strong>Scania</strong> switched<br />
from suppliers that had not fulfilled quality, delivery<br />
assurance or environmental standards. At the end of<br />
<strong>2001</strong>, <strong>Scania</strong> had 795 production suppliers, of which<br />
550 in Europe and 245 in Latin America.<br />
E-procurement<br />
<strong>Scania</strong> introduced a number of systems for e-procurement<br />
(purchasing via the Internet), mainly for obtaining<br />
indirect materials. During 2002 the company is<br />
installing an electronic invoice management system.<br />
Concentrated transport systems<br />
In collaboration with a small number of logistics suppliers,<br />
<strong>Scania</strong> is creating an integrated, optimised<br />
transport system for its European operations. This will<br />
improve delivery precision while reducing total costs<br />
and decreasing environmental impact.<br />
<strong>Scania</strong> trucks produced in Zwolle go<br />
to markets in Europe, Asia, Africa<br />
and Australia<br />
27
The environment<br />
<strong>Scania</strong> is working to reduce the impact of its<br />
products on the environment throughout their<br />
life cycle. For all employees, weighing in the<br />
environmental aspects is a self-evident part of<br />
their everyday work. The objectives are<br />
cleaner production, cleaner products and<br />
greater resource efficiency.<br />
Integrated environmental work<br />
Environmental work is integrated into <strong>Scania</strong>’s operations<br />
and has the same importance as quality, training<br />
and economic issues. All managers have environmental<br />
responsibility in their operating area.<br />
The environmental organisation is structured as a<br />
network. Common items of business are prepared by<br />
the <strong>Scania</strong> Environmental Committee, where environmental<br />
coordinators from various operations meet<br />
under the leadership of the Quality and Environment<br />
department. The environmental coordinators have<br />
advisory and supportive functions in the organisation.<br />
Environmental work is an increasingly integral element of<br />
<strong>Scania</strong>’s operations. For this reason, environmental <strong>report</strong>ing<br />
is now being done in the Annual Report, instead of<br />
in a separate Environmental Report. All environmental<br />
decisions of a strategic nature are made in the operational<br />
decision-making structure. Read more about <strong>Scania</strong>’s<br />
environmental work at: www.scania.com<br />
<strong>Scania</strong>’s truck cabs are available in 1,600 colours. Even today, painting<br />
operations at the Oskarshamn plant have little environmental impact.<br />
The paintshop is further improving its performance with the help of the<br />
ongoing investment programme.<br />
28
Research and<br />
development<br />
The highest decision-making level is<br />
the <strong>Scania</strong> Executive Board, which<br />
makes strategic environmental<br />
decisions as well as establishing and<br />
following up overall environmental<br />
matters.<br />
Recycling<br />
A certified environmental<br />
management system<br />
Since 1999, <strong>Scania</strong>’s industrial system<br />
– which includes development<br />
resources, production units and corporate<br />
marketing staff units – has been certi-<br />
Service and<br />
maintenance<br />
fied according to ISO 14001 international standards.<br />
The task of establishing environmental management<br />
systems in the sales and service organisation<br />
is continuing.<br />
Environmental <strong>report</strong>ing<br />
Beyond its continuous economic <strong>report</strong>ing, <strong>Scania</strong><br />
conducts <strong>annual</strong> follow-ups of such items as raw<br />
material, chemical, energy and water use. Follow-up<br />
and revision of Group-wide environmental targets<br />
are carried out every year. Starting this year, environmental<br />
targets, actions and results are presented in<br />
the Annual Report and on <strong>Scania</strong>’s web site,<br />
www.scania.com<br />
Life-cycle perspective<br />
Day-to-day environmental work is based on the life<br />
cycle of products. <strong>Scania</strong>’s aim is to decrease the<br />
environmental impact of its products and services<br />
during every phase of their life cycle. Each portion of<br />
Product<br />
service life<br />
<strong>Scania</strong>’s operations receives systematic attention. The<br />
objectives are cleaner products, cleaner production<br />
and greater resource efficiency.<br />
Most of the environmental impact of <strong>Scania</strong>’s products<br />
and services occurs while they are in use. Development<br />
work is the company’s opportunity to directly<br />
influence the prerequisites for better environmental<br />
adaptation of its products. By means of product development,<br />
<strong>Scania</strong> is working to minimise fuel consumption<br />
and thereby reduce carbon dioxide emissions,<br />
while ensuring that its engines comply with legally stipulated<br />
maximum levels of nitrogen oxide, particulate,<br />
hydrocarbon and carbon monoxide emissions. Vehicles<br />
also have to be easy to dismantle after their full<br />
service life. <strong>Scania</strong> finalised dismantling manuals for its<br />
buses and coaches during <strong>2001</strong>.<br />
Material<br />
selection and<br />
procurement<br />
<strong>Scania</strong>’s modular system makes it possible<br />
to specify a vehicle based on a customer’s<br />
transport needs and environmental performance<br />
requirements. The company<br />
provides additional sales support by<br />
supplying environmental declarations<br />
for its products.<br />
The public arena<br />
The western European market, which<br />
is important to <strong>Scania</strong>, is greatly affected<br />
by European Union legislation. During<br />
Manufacturing<br />
<strong>2001</strong>, the EU’s Euro 3 emission rules for all<br />
new vehicles entered into force. <strong>Scania</strong>’s<br />
engine range was adapted to the Euro 3 rules during<br />
January-November 1999 and was supplemented with<br />
the new V8 engines in May 2000.<br />
During <strong>2001</strong>, the European Commission submitted<br />
a white paper with recommendations on a European<br />
transport policy to the EU Council of Ministers and the<br />
European Parliament. The white paper forecasts a 50<br />
percent increase in cargo transport volume on the<br />
roads by 2010. The Commission’s ambition is to keep<br />
the increase in road haulage volume lower for environmental<br />
reasons. The white paper sets a growth target<br />
of 38 percent in the road haulage sector. A decision to<br />
adopt the white paper as the basis for future directives<br />
is expected during 2002.<br />
Despite the Commission’s desire to limit the growth<br />
of road haulage volume somewhat, for <strong>Scania</strong> the<br />
recommendation in the white paper means that the<br />
market for trucks and buses will continue to grow.<br />
International climate negotiations resulted in an<br />
29
<strong>Scania</strong>’s Environmental Policy<br />
As a global manufacturer and distributor of heavy commercial<br />
vehicles, engines and related services, <strong>Scania</strong> is<br />
committed to develop products that pollute less and<br />
consume less energy, raw materials and chemicals<br />
during their life cycle.<br />
In order to achieve this:<br />
• we strive to maintain a lead in commercially<br />
applicable technologies<br />
• we work well within legal demands and promote<br />
internationally harmonised, effective environmental<br />
requirements<br />
• we prevent and continuously reduce the environmental<br />
impact through development of products,<br />
services and production processes<br />
• we take the environmental aspects and objectives<br />
into account in our daily work<br />
• we have an open and regular communication with<br />
our interest groups regarding our environmental<br />
work<br />
By this we contribute to economical and ecological<br />
advantages for our customers and for society. Proactive<br />
environmental work is therefore of vital importance to<br />
<strong>Scania</strong>.<br />
agreement on the Kyoto Protocol in Marrakech. A<br />
sufficient number of countries are prepared to ratify the<br />
protocol to allow it to enter into force during 2002. The<br />
EU countries have allocated for carbon dioxide emissions<br />
allowances among themselves and will work<br />
together to cut these emissions by 8 percent during<br />
the period 2008 to 2012, with 1990 as the base year.<br />
In 1998 the transport sector accounted for 28 percent<br />
of EU carbon dioxide emissions, according to the<br />
Commission. The white paper on transport policy discusses<br />
measures to decrease emissions. Among the<br />
recommendations are such goals as increasing the<br />
use of biofuels, streamlining transport efficiency and<br />
improving the competitiveness of the railway sector.<br />
Beginning in Germany, exhaust class-related road fees<br />
for heavy traffic are expected to be introduced from<br />
2003. In conjunction with this, increased customer<br />
demands for better environmental performance can be<br />
expected. <strong>Scania</strong> thus foresees an increasing total<br />
market, with progressively stricter requirements for<br />
cleaner exhausts and improved fuel efficiency.<br />
Environment and economics<br />
During <strong>2001</strong>, <strong>Scania</strong>’s costs for raw materials, chemicals,<br />
energy and water totalled about SEK 1,510 m.<br />
Transport expenses amounted to SEK 1,250 m.<br />
Emissions of carbon dioxide from production<br />
plants totalled 69.2 Ktonnes. In relation to sales of<br />
<strong>Scania</strong> products, this represented 1.5 g/SEK. Use<br />
of energy and water per vehicle produced rose<br />
compared to the year before. This was due to the<br />
smaller number of vehicles produced and a cold<br />
winter, which increased the heating requirement at<br />
plants in Sweden.<br />
Environmental investments<br />
<strong>Scania</strong> defines an environmental investment as a capital<br />
expenditure carried out only for environmental reasons<br />
and aimed at reducing external environmental impact.<br />
An investment is often motivated by several different<br />
reasons at the same time, of which environmental<br />
impact may be one. <strong>Scania</strong> prefers to make environmentally<br />
related investments simultaneously with other<br />
investments, which are also justified for other reasons,<br />
instead of making corrections afterwards.<br />
With the investment strategy that <strong>Scania</strong> has<br />
chosen, the effect in terms of environmental improvement<br />
per krona of spending is usually better. This<br />
means that <strong>Scania</strong> does not regard large environmental<br />
investments, according to the above definition,<br />
as goals in themselves, but rather as a portion of<br />
overall investments that should be minimised.<br />
During <strong>2001</strong>, <strong>Scania</strong>’s investments in property,<br />
plant and equipment totalled SEK 1,980 m., of which<br />
SEK 15 m. were classified as environmental investments.<br />
The cab plant in Oskarshamn began construction<br />
of a new topcoat application facility. The investment<br />
totals SEK 453 m., of which SEK 104 m. during<br />
<strong>2001</strong>. The unit will go into operation during 2002.<br />
The new finishing paintshop will result in considerable<br />
environmental gains. The transition to water-borne<br />
paints reduces solvent emissions and improves<br />
recycling of paint residues.<br />
Research and development expenses<br />
The development of new or improved products leads<br />
to better environmental performance. Future legal<br />
requirements for products are a major factor in development<br />
work and, as a rule, are motivated by environmental<br />
or road safety reasons. There are usually a<br />
number of different motives behind development work,<br />
which are difficult to distinguish from each other.<br />
30
Environmentally related expenses<br />
as a proportion of <strong>Scania</strong>’s sales<br />
Wastes sent to landfills<br />
Energy use<br />
Emissions of organic solvents<br />
kg per<br />
vehicle<br />
Target<br />
for 2004<br />
Total,<br />
tonnes<br />
MWh per<br />
vehicle<br />
Target<br />
for 2004<br />
Total,<br />
GWh<br />
kg per<br />
vehicle<br />
Target for<br />
2004<br />
Total,<br />
tonnes<br />
Transport services, SEK 1,250 m.<br />
Raw materials, SEK 1,230 m.<br />
Energy, SEK 160 m.<br />
Chemicals, SEK 110 m.<br />
Water, SEK 8 m.<br />
200<br />
150<br />
9,000<br />
8,000<br />
7,000<br />
6,000<br />
18<br />
16<br />
14<br />
12<br />
700<br />
600<br />
500<br />
14<br />
12<br />
10<br />
500<br />
400<br />
5,000<br />
10<br />
400<br />
8<br />
300<br />
100<br />
50<br />
4,000<br />
3,000<br />
2,000<br />
1,000<br />
8<br />
6<br />
4<br />
2<br />
300<br />
200<br />
100<br />
6<br />
4<br />
2<br />
200<br />
100<br />
0<br />
97 98 99 00 01 04<br />
0<br />
0 0<br />
97 98 99 00 01 04<br />
0<br />
97 98 99 00 01 04<br />
0<br />
The size of environmentally related expenses totals<br />
about 6 percent of sales of <strong>Scania</strong> products.<br />
Wastes sent to landfills during <strong>2001</strong> totalled<br />
about 3,400 tonnes, or 69 kg per vehicle,<br />
excluding foundry sand.<br />
During <strong>2001</strong>, energy consumption totalled<br />
about 570 GWh, equivalent to some 12 MWh<br />
per vehicle.<br />
In <strong>2001</strong>, organic solvent emissions from<br />
painting/rust-proofing totalled some<br />
385 tonnes, or 8.0 kg per vehicle.<br />
Carbon dioxide emissions related<br />
to energy use, <strong>2001</strong><br />
Energy use,<br />
GWh<br />
Carbon dioxide<br />
emissions, Ktonnes<br />
<strong>2001</strong> 1996 <strong>2001</strong> 1996<br />
Electricity 340 360 20 23<br />
District heat 60 130 4 9<br />
Fossil fuels 170 200 45 51<br />
Total 570* 690* 69 83<br />
Per vehicle 12 MWh 1.4 tonnes<br />
* Subtotals and totals are rounded to multiples of ten.<br />
In <strong>2001</strong>, carbon dioxide emissions from <strong>Scania</strong>’s<br />
production amounted to 1.4 tonnes per vehicle,<br />
or a total of 69,200 tonnes.<br />
Water use<br />
24<br />
22<br />
20<br />
18<br />
16<br />
14<br />
12<br />
10<br />
Cubic metres<br />
per vehicle<br />
8<br />
6<br />
4<br />
2<br />
0<br />
Target<br />
for 2004<br />
97 98 99 00 01 04<br />
Total, cubic<br />
metres<br />
1,000,000<br />
900,000<br />
800,000<br />
700,000<br />
600,000<br />
500,000<br />
400,000<br />
300,000<br />
200,000<br />
100,000<br />
0<br />
During <strong>2001</strong>, water consumption was about<br />
570,000 cubic metres, equivalent to 12 cubic<br />
metres per vehicle.<br />
Chemical use, <strong>2001</strong><br />
Oils/lubricants<br />
Process oils/<br />
emulsions<br />
Degreasing agents<br />
Paint,<br />
water-based<br />
Paint,<br />
solvent-based<br />
Powder paint<br />
Rust-proofing agents<br />
Solvents<br />
Foundry chemicals<br />
Other chemicals<br />
Cubic metres 0 100 200 300 400 500 600 700 800<br />
The consumption of chemicals in <strong>2001</strong> was<br />
about 4,200 cubic metres, equivalent to<br />
88 litres per vehicle.<br />
31
During <strong>2001</strong>, research and development expenses<br />
totalled SEK 1,955 m. <strong>Scania</strong> has chosen not to try<br />
to separate and <strong>report</strong> the environmentally specific<br />
portion by itself.<br />
Operating permits<br />
Most of <strong>Scania</strong>’s facilities around the world are<br />
required to have operating permits that comply with<br />
national legislation. All five production units in Sweden<br />
and the subsidiary Ferruform carry out operations that<br />
require permits under the Environmental Code. Their<br />
main impact on the external environment occurs by<br />
means of emissions into the air, discharges into the<br />
water, waste products and noise.<br />
During <strong>2001</strong>, <strong>Scania</strong>’s facilities in Södertälje were<br />
subjected to new requirements related to nitrogen<br />
oxide emissions from engine testing labs and<br />
improved final treatment of wastewater. The new standards<br />
do not impose any new restrictions on production<br />
capacity.<br />
During the year, the Sibbhult plant also received<br />
new permits for increased production and painting<br />
operations. The wholly-owned subsidiary Ferruform in<br />
Luleå received a new permit for increased production<br />
and new surface treatment facilities.<br />
Environmental risk management<br />
During <strong>2001</strong>, <strong>Scania</strong> devised a method for ground and<br />
groundwater inventories, including risk analysis. Inventorying<br />
began and will be completed at all production<br />
units by the end of 2002.<br />
At the Zwolle plant, <strong>Scania</strong> gained the approval of<br />
public authorities to change its plan for the decontamination<br />
of oil-polluted soil to a drainage programme and<br />
monitoring measurements. In Meppel, a permit was<br />
granted for the decontamination of boron-polluted soil.<br />
This decontamination will cost an estimated SEK 2.5 m.<br />
<strong>Scania</strong>’s risk management efforts focus on preventive<br />
measures, in order to protect employees and the<br />
company’s collective assets. Every unit at <strong>Scania</strong> has an<br />
emergency plan for managing environmental disruptions.<br />
<strong>Scania</strong> has established a Group-wide procedure<br />
for integrating issues related to the risk of environmental<br />
damage with other risk management work.<br />
During <strong>2001</strong>, no incidents were <strong>report</strong>ed that had a<br />
significant impact on the environment.<br />
Does environmental work help improve the<br />
environment?<br />
<strong>Scania</strong> began to launch its Euro 3 engine range early in<br />
1999, nearly three years before it became compulsory in<br />
new vehicles on 1 October <strong>2001</strong>. Until the end of June<br />
<strong>2001</strong>, Euro 3 was not a necessity, but <strong>Scania</strong> sold about<br />
17,000 trucks and buses featuring the new technology in<br />
the EU countries. If <strong>Scania</strong> had instead delivered the corresponding<br />
number of Euro 2 vehicles, with an average<br />
<strong>annual</strong> mileage of 150,000 km, nitrogen oxide emissions<br />
in the EU would have been 4,500 tonnes higher during<br />
this period. Since fuel economy is also unaffected, this<br />
environmental gain did not occur at the expense of<br />
higher carbon dioxide emissions or higher fuel expenses<br />
for the customer.<br />
Revised target<br />
<strong>Scania</strong> realised early in <strong>2001</strong> that the target of requiring<br />
all suppliers of products and components to have ISO<br />
14001 certified environmental management systems in<br />
place by year-end would not be achieved. This target<br />
was revised to specify 50 percent of such suppliers.<br />
At year-end, suppliers accounting for 60 percent of<br />
purchased volume were ISO 14001 certified.<br />
In some cases, <strong>Scania</strong> prioritised quality and<br />
delivery assurance, choosing to retain suppliers even<br />
though they did not fully meet the certification requirement.<br />
Engines for ecological electricity<br />
production<br />
At a wind farm in the San Gorgonio area outside Palm<br />
Springs, California, six <strong>Scania</strong> 9-litre engines were<br />
delivered during <strong>2001</strong> to serve units for wind-power<br />
stations. <strong>Scania</strong>’s ethanol engines were configured for<br />
generators with an output of 150 kW and will produce<br />
electricity on days when there is too little wind.<br />
<strong>Scania</strong>’s ethanol engine is the only heavy compression<br />
engine certified for zero particulate matter emission by<br />
the California Air Resources Board (CARB), the agency<br />
that regulates air quality in the state.<br />
Compared to an ordinary diesel engine, these<br />
engines emit 60 percent less nitrogen oxide, 90 percent<br />
less carbon dioxide and 90 percent less hydrocarbons.<br />
Particulate emissions equal zero, which was<br />
very important to CARB.<br />
32
Environment and economics<br />
Summary of economic performance, <strong>Scania</strong><br />
production organisation<br />
Year <strong>2001</strong> 2000 1999<br />
Number of vehicles<br />
manufactured 48,151 55,581 49,482<br />
Sales of <strong>Scania</strong><br />
products, SEK m. 47,213 44,740 38,559<br />
Raw material consumption<br />
Per vehicle, kg 3,200 3,200 3,400<br />
Total, tonnes 156,000 180,000 170,000<br />
Total cost, SEK m. 1,230 1,470 1,330<br />
Chemical consumption<br />
Per vehicle, cubic metres 0.088 0.086 0.092<br />
Total, cubic metres 4,200 4,800 4,500<br />
Total cost, SEK m. 110 120 120<br />
Energy use<br />
Per vehicle, MWh 12 11 12<br />
Total, GWh 570 580 590<br />
Total cost, SEK m. 161 154 160<br />
Carbon dioxide emissions<br />
Per vehicle, cubic metres 1,400 1,300 1,500<br />
Total, tonnes 69,000 71,000 74,000<br />
Water use<br />
Per vehicle, cubic metres 12 11 13<br />
Total, 1,000 cubic metres 570 600 620<br />
Total cost, SEK m. 8 9 15<br />
Solvent emissions from<br />
painting/rust-proofing<br />
Per vehicle, kg 8.0 8.6 9.2<br />
Totalt, ton 390 480 460<br />
Management of residual<br />
materials*<br />
Recycling:<br />
Per vehicle, kg 960 940 1,100<br />
Total, tonnes 46,000 52,000 53,000<br />
Revenues, SEK m. 16 18 18<br />
Some of <strong>Scania</strong>’s environmental targets for <strong>2001</strong><br />
• A procedure for how to perform inventories of ground<br />
and groundwater was completed. <strong>Scania</strong> has begun to<br />
apply this procedure. It ensures that systematic inventories<br />
of ground conditions and of the historic environmental<br />
load are performed in preparation for future ground and<br />
groundwater investigations.<br />
• Dismantling instructions for buses were completed.<br />
• The number of chemical suppliers was reduced from<br />
96 to 81.<br />
• Efforts to achieve long-term environmental targets in the<br />
production organisation continued as planned. For example,<br />
the quantity of wastes sent to landfills per manufactured<br />
vehicle declined from 78 to 69 kg during the year.<br />
Some targets for 2002-2004<br />
• Based on the inventories that have been performed,<br />
the necessary ground and groundwater investigations<br />
will be carried out during 2002.<br />
• The use of energy shall have decreased to 10 MWh<br />
per manufactured vehicle by 2004.<br />
• The use of water shall have decreased to 10 cubic<br />
metres per manufactured vehicle by 2004.<br />
• The amount of waste deposited in landfills shall have<br />
decreased to 50 kg per manufactured vehicle by 2004.<br />
Sent to landfills/other<br />
off-site disposal:<br />
Per vehicle, kg 180 200 200<br />
Total, tonnes 9,000 11,000 10,000<br />
Total cost, SEK m. 14 17 17<br />
* Excluding foundry sand, about 26,400 tonnes.<br />
When there is not enough wind, ethanol-powered <strong>Scania</strong> engines generate electricity at these wind-power stations in the San Bernardino<br />
mountains of southern California.<br />
33
Trucks and buses<br />
During <strong>2001</strong>, global production of<br />
heavy trucks declined by 19 percent to<br />
490,000 (611,000) vehicles. <strong>Scania</strong><br />
was the third largest heavy truck make<br />
in the world with a share of 8.8 (8.4)<br />
percent.<br />
World production of heavy trucks<br />
(excluding the former East Bloc countries)<br />
Units<br />
700,000<br />
600,000<br />
500,000<br />
400,000<br />
World production of buses in <strong>Scania</strong>’s segment<br />
– city and intercity buses and tourist coaches<br />
for more than 30 passengers – totalled 70,000<br />
(69,000) buses. <strong>Scania</strong> was the world’s third<br />
largest bus make in the heavy segment with<br />
6.6 percent of global production.<br />
<strong>Scania</strong>’s sales of industrial and marine<br />
engines totalled 4,672 (3,300) units.<br />
World production of heavy trucks<br />
The ten largest makes<br />
300,000<br />
200,000<br />
100,000<br />
World production of heavy buses<br />
(excluding the former East Bloc countries)<br />
Units<br />
0<br />
80,000<br />
92 93 94 95 96 97 98 99 00 01<br />
Make <strong>2001</strong> 2000 1999<br />
Mercedes-Benz 65,049 74,057 78,546<br />
Volvo 63,816 79,091 81,069<br />
<strong>Scania</strong> 43,487 51,409 45,795<br />
MAN 42,110 43,394 36,576<br />
Freightliner 39,254 70,590 88,517<br />
RVI 32,926 34,490 31,386<br />
Iveco 31,455 31,726 32,188<br />
DAF 30,369 28,401 23,313<br />
International 23,899 35,862 50,151<br />
Mack 22,595 34,361 38,528<br />
70,000<br />
60,000<br />
50,000<br />
40,000<br />
30,000<br />
20,000<br />
10,000<br />
0<br />
92 93 94 95 96 97 98 99 00 01<br />
35
Europe<br />
During <strong>2001</strong>, the market for heavy trucks in<br />
western Europe fell somewhat from the record<br />
level of the year before. By prioritising profitability<br />
ahead of volume, <strong>Scania</strong> remained the<br />
most profitable heavy vehicle manufacturer.<br />
Trucks in western Europe<br />
After a small decline, the total market in western<br />
Europe remained at a historically high level. During the<br />
year, 234,860 heavy trucks were registered, compared<br />
to 243,669 during 2000 and 235,929 during 1999.<br />
<strong>Scania</strong>’s share of the western European market<br />
decreased to 13.5 (15.6) percent. In a situation of<br />
extremely depressed new truck prices, <strong>Scania</strong> focused<br />
on profitable deals, especially in Germany, Great<br />
Britain and the Netherlands. The company abstained<br />
from a number of large transactions where the price<br />
levels were too low.<br />
Among <strong>Scania</strong>’s competitors, Mercedes-Benz saw<br />
its western European market share decline to 19.3<br />
(19.6) percent, MAN boosted its market share to 15.0<br />
(14.0) percent and Volvo fell to 14.3 (14.9) percent.<br />
The German market remained strong but cooled<br />
during the second half. A total of 50,926 (57,470) new<br />
trucks were registered, and <strong>Scania</strong> retained its position<br />
as the largest imported make, with an 8.3 (10.1) percent<br />
market share.<br />
In Great Britain, new heavy truck registrations<br />
totalled 33,079 (32,498). <strong>Scania</strong>’s market share<br />
dropped to 15.5 (20.7) percent, among other things<br />
due to prioritisation of profitability ahead of volume.<br />
<strong>Scania</strong>’s market share also declined in a continued<br />
strong French market. During the year, 46,158<br />
(47,124) heavy trucks were registered.<br />
In Spain, registrations increased to a new record of<br />
26,218 (25,291) heavy trucks. <strong>Scania</strong>’s market share<br />
was 12.1 (14.4) percent.<br />
The Italian market showed a continued high level,<br />
with a total of 24,481 (25,526) heavy trucks. For the<br />
third consecutive year <strong>Scania</strong> enlarged its market<br />
share, reaching 13.5 (13.1) percent.<br />
In Austria, <strong>Scania</strong> further strengthened its position.<br />
With a 15.1 percent share, it was the second largest<br />
heavy truck make in the market.<br />
A <strong>Scania</strong> R164 480 Topline en route from Trento, northern Italy.<br />
In the Netherlands, the total number of registrations<br />
decreased slightly, to 13,660 (14,072) heavy<br />
trucks. <strong>Scania</strong>’s share of the Dutch market declined to<br />
17.6 (22.4) percent.<br />
In the Nordic markets, demand fell somewhat. A<br />
total of 12,731 (13,725) heavy trucks were registered.<br />
<strong>Scania</strong> strengthened its position in Denmark and<br />
Norway but lost ground in Sweden and Finland. Its<br />
market share in the Nordic countries totalled 35.3<br />
(36.7) percent.<br />
Trucks in central and eastern Europe<br />
In central and eastern Europe, both the total market<br />
and <strong>Scania</strong>’s market share continued to expand.<br />
Meanwhile, the market for used trucks of western<br />
European origin grew.<br />
The number of registered new heavy trucks of<br />
western European origin rose by about 13 percent to<br />
17,000 (15,000). <strong>Scania</strong> delivered 2,579 (2,287) trucks<br />
to the region.<br />
In the Czech Republic, <strong>Scania</strong>’s market share rose<br />
to 16.5 (12.9) percent.<br />
The Russian market for western European heavy<br />
trucks increased. A sizeable proportion of <strong>Scania</strong>’s<br />
sales in Russia consisted of construction trucks.<br />
During the year, <strong>Scania</strong> continued its effort to<br />
strengthen its sales and service network, adding new<br />
facilities in most markets in the region.<br />
<strong>Scania</strong>-owned sales and service network<br />
The service market accounts for an increasingly large<br />
share of profitability in <strong>Scania</strong>’s business. Through<br />
continuous growth and good margins, the service<br />
36
Registrations of heavy trucks in<br />
western Europe<br />
Units<br />
250,000<br />
Deliveries of <strong>Scania</strong> trucks in<br />
western Europe<br />
Units<br />
40,000<br />
200,000<br />
30,000<br />
150,000<br />
20,000<br />
100,000<br />
50,000<br />
10,000<br />
0<br />
92 93 94 95 96 97 98 99 00 01<br />
0<br />
92 93 94 95 96 97 98 99 00 01<br />
Market shares, heavy trucks in western Europe<br />
%<br />
30<br />
25<br />
Mercedes-Benz<br />
20<br />
15<br />
Volvo<br />
MAN<br />
RVI<br />
<strong>Scania</strong><br />
10<br />
5<br />
DAF<br />
Iveco<br />
90 91 92 93 94 95 96 97 98 99 00 01<br />
Mercedes <strong>Scania</strong><br />
Volvo DAF<br />
MAN<br />
RVI<br />
Iveco<br />
In Great Britain, beer is of course delivered to the pub in a<br />
<strong>Scania</strong> distribution truck.
market helps to make the company’s operations less<br />
dependent on the cyclical upturns and downturns in the<br />
heavy vehicle industry.<br />
For this reason, <strong>Scania</strong> continued to strengthen and<br />
expand its own sales and service network in Europe.<br />
The proportion of new trucks delivered by <strong>Scania</strong>owned<br />
dealerships in western Europe rose to more<br />
than 40 percent of volume. At year-end, <strong>Scania</strong> owned<br />
about 25 percent of local sales and service companies.<br />
A <strong>Scania</strong> OmniLine intercity bus outside Katrineholm, Sweden.<br />
Buses in Europe<br />
Despite the general economic downturn during the<br />
year, the total market for heavy buses in western<br />
Europe remained at a high level. A total of 23,500<br />
(23,430) buses were registered.<br />
<strong>Scania</strong>’s deliveries of bus chassis rose by 7 percent<br />
to 1,828 (1,702) in Europe. For more than 10<br />
percent of these, <strong>Scania</strong> provided its own bodywork.<br />
An increasing proportion of fully-built buses were<br />
delivered in markets outside the Nordic market, which<br />
previously was completely dominant – especially Italy.<br />
<strong>Scania</strong>’s market share in western Europe rose to<br />
7.1 (6.3) percent.<br />
During <strong>2001</strong>, <strong>Scania</strong> improved its Nordic market<br />
positions, gaining a significant increase in market share.<br />
In Finland, <strong>Scania</strong> became the market leader.<br />
<strong>Scania</strong> elicited a major response for its ‘‘total concept”,<br />
which means that in close cooperation with a<br />
number of bus and coach operators, <strong>Scania</strong> assumes<br />
full responsibility for service and maintenance at a fixed<br />
per-kilometre price.<br />
As in 2000, <strong>Scania</strong>’s biggest bus market in Europe<br />
38
was Spain. The number of <strong>Scania</strong> buses registered in<br />
that country rose to 423 (364), with a market share of<br />
16.6 (16.5) percent.<br />
In Great Britain, registrations of new <strong>Scania</strong> buses<br />
rose to 178 during the year. Market share also rose to<br />
6.3 (5.9) percent. For the British city bus market, <strong>Scania</strong><br />
introduced a right-hand-drive version of the OmniCity<br />
bus in November.<br />
<strong>Scania</strong>’s concerted marketing effort in Europe’s third<br />
largest bus market, Italy, which began in 2000, resulted<br />
in a sales increase of more than 50 percent during<br />
<strong>2001</strong>. Here, too, a successful breakthrough in the city<br />
bus market by <strong>Scania</strong>’s OmniCity concept contributed<br />
to the upturn.<br />
In the restructuring of <strong>Scania</strong>’s bus operations that<br />
will be completed in 2002, marketing and sales departments<br />
will be coordinated with <strong>Scania</strong>’s global marketing<br />
organisation. The synergies this achieves will enable<br />
<strong>Scania</strong> to increase its focus on customers.<br />
Industrial and marine engines in Europe<br />
In Europe, <strong>Scania</strong> had continued good order bookings<br />
for industrial and marine engines, which thus did not<br />
feel the effects of the world economic downturn that<br />
affected other products. Deliveries fell somewhat compared<br />
to the previous year, to 1,906 (2,111) engines.<br />
In some countries, among them Germany and Italy,<br />
<strong>Scania</strong>’s sales rose sharply.<br />
<strong>Scania</strong> continued to work via specialised engine<br />
distributors.<br />
The pistes at this ski resort in Andalo, Italy, are well-groomed thanks to Prinoth piste machines, equipped with 9-litre <strong>Scania</strong> industrial engines.<br />
39
Latin America<br />
The economic recovery in Latin America<br />
was interrupted during <strong>2001</strong>. <strong>Scania</strong> was<br />
forced to take vigorous new steps aimed<br />
at achieving profitability again in its<br />
Latin American operations.<br />
<strong>Scania</strong>’s previous action programme to achieve profitability<br />
in its Latin American operations was insufficient<br />
when the economic situation in Argentina deteriorated<br />
during the second half of the year. The deep crisis in<br />
Argentina also affected developments in Brazil, where<br />
the currency weakened sharply against the US dollar.<br />
To mitigate the effects of the crisis and restore<br />
profitability to an acceptable level, <strong>Scania</strong> began a<br />
number of cost-cutting and revenue-boosting programmes.<br />
Trucks in Latin America<br />
<strong>Scania</strong>’s truck deliveries in Latin America fell by 9 percent<br />
to 6,181 (6,777) units. The Argentinean market<br />
showed a large decline. The total market in Argentina<br />
fell to 1,307 (3,341) heavy trucks, and <strong>Scania</strong>’s market<br />
share was 32.1 (31.5) percent.<br />
Despite economic uncertainty, the total market in<br />
Brazil continued to increase, reaching 18,046 (17,341)<br />
trucks. <strong>Scania</strong>’s market share decreased to 29.2 (29.7)<br />
percent, with 5,266 (5,153) registrations.<br />
Brazil’s currency, the real, weakened against the<br />
American dollar. At its lowest point, the real was down<br />
43 percent. During the last quarter of <strong>2001</strong> it recovered,<br />
ending the year at about minus 20 percent. In order<br />
to achieve a reasonable world market price, <strong>Scania</strong><br />
implemented several small price increases during the<br />
year, and a more significant price increase at year-end.<br />
Market shares, heavy<br />
trucks in Brazil<br />
Ford<br />
Iveco<br />
International<br />
Volkswagen<br />
<strong>Scania</strong><br />
Volvo<br />
Mercedes-Benz<br />
A <strong>Scania</strong> R124 360 stopping in Rancagua, Chile.<br />
40
Buses in Latin America<br />
The economic situation in the region adversely affected<br />
deliveries of bus chassis, especially in Argentina.<br />
Total deliveries fell by 14 percent to 1,595 (1,843).<br />
In Brazil, the total market amounted to 10,833<br />
(10,626) buses. <strong>Scania</strong>’s bus chassis registrations<br />
declined to 853 (1,100) and its market share fell to<br />
7.9 (10.4) percent.<br />
<strong>Scania</strong> retained its traditionally strong position in<br />
the medium- and long-distance segment for intercity<br />
buses.<br />
During the year, <strong>Scania</strong> achieved a breakthrough in<br />
the important city bus segment with its low-floor city<br />
bus concept.<br />
In Mexico, the total market grew to 12,009 (10,631)<br />
buses. <strong>Scania</strong>’s registrations rose to 304 (175) and its<br />
market share was 2.5 (1.6) percent. During the two<br />
Deliveries of <strong>Scania</strong> trucks<br />
in Latin America<br />
Units<br />
10,000<br />
Deliveries of <strong>Scania</strong> buses<br />
in Latin America<br />
Units<br />
3,000<br />
A <strong>Scania</strong> K124 360 double-decker coach carrying tourists to Salta, northern Argentina.<br />
8,000<br />
6,000<br />
4,000<br />
2,000<br />
2,500<br />
2,000<br />
1,500<br />
1,000<br />
500<br />
years that have passed since <strong>Scania</strong> resumed bus sales<br />
in Mexico, that country has grown into <strong>Scania</strong>’s third<br />
largest bus market in the world.<br />
Industrial and marine engines in<br />
Latin America<br />
mand for generator sets. With its own engine factory and<br />
sales organisation in Brazil, <strong>Scania</strong> was able to respond to<br />
the market’s expectations and demands for fast delivery.<br />
This represented a tripling of <strong>Scania</strong>’s sales of industrial<br />
and marine engines in Latin America to 2,149 (748)<br />
units.<br />
0<br />
92 93 94 95 96 97 98 99 00 01<br />
0<br />
92 93 94 95 96 97 98 99 00 01<br />
During the second half of <strong>2001</strong>, Brazil underwent a<br />
severe energy crisis, which sharply increased the de-<br />
41
Asia, Australia and Africa<br />
<strong>Scania</strong>’s long-term investment in the growth<br />
markets of Asia, Australia and Africa continued<br />
during <strong>2001</strong>. In South Korea, <strong>Scania</strong> tripled its<br />
sales. Deliveries to a number of markets in the<br />
Middle East and sub-Saharan Africa rose.<br />
Trucks<br />
<strong>Scania</strong>’s truck deliveries in Asia, Africa and Australia<br />
decreased by 6 percent to 4,483 (4,778) units.<br />
In the current restructuring of South Korea’s truck<br />
industry, due to its long-time presence in the Korean<br />
market, <strong>Scania</strong> has established itself as the foremost<br />
European challenger. During the year, <strong>Scania</strong> tripled its<br />
sales and captured 15.3 percent of a total market of<br />
7,939 heavy trucks. Above all, Korean customers have<br />
appreciated <strong>Scania</strong>’s large-scale investments in its<br />
own sales and service network. <strong>Scania</strong> has the country’s<br />
leading service network today.<br />
<strong>Scania</strong>’s long-time distributor of trucks and buses<br />
in Taiwan, China, Hong Kong and Macao – Forefront<br />
International – sucessfully gained a listing on the Hong<br />
Kong Stock Exchange during the year.<br />
In a number of Middle Eastern markets, <strong>Scania</strong><br />
sales rose during the year, after a period of weak<br />
demand.<br />
In North Africa, <strong>Scania</strong> consolidated its leading position.<br />
In the Tunisian market today, more than every<br />
second new heavy truck is a <strong>Scania</strong>. In South Africa,<br />
<strong>Scania</strong> <strong>report</strong>ed its highest sales to date, 342 trucks.<br />
<strong>Scania</strong> 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.<br />
42
Buses<br />
In several markets in East Asia, <strong>Scania</strong> showed strong<br />
growth. Sales of buses and coaches in Taiwan, Hong<br />
Kong and Thailand more than doubled. In Taiwan,<br />
the authorities carried out a number of measures to<br />
stimulate the economy, which among other things led<br />
to increased bus travel and thus also to increased<br />
demand, especially for tourist coaches.<br />
In several markets in Africa, there was also a significant<br />
increase in <strong>Scania</strong>’s bus order bookings, among<br />
others in Angola, Kenya and South Africa. The buses<br />
sold in these markets, with chassis from <strong>Scania</strong>’s<br />
factory in Brazil, are assembled in South Africa.<br />
During the year, <strong>Scania</strong> achieved a leading position<br />
in the bus market in Dubai by receiving an order for<br />
119 city buses.<br />
At the bus terminal in Dar es Salaam, Tanzania, the <strong>Scania</strong> buses are<br />
surrounded by cargo and passengers.<br />
<strong>Scania</strong> delivered a total of 1,249 (629) buses and<br />
coaches in Asia, Australia and Africa, a doubling of<br />
deliveries compared to 2000 and the highest level<br />
ever.<br />
On a fishing trip outside<br />
Freemantle, Australia,<br />
using dual marine engines<br />
from <strong>Scania</strong>.<br />
Industrial and marine engines<br />
<strong>Scania</strong>’s sales of industrial and marine engines in Asia,<br />
Australia and Africa remained good. In Saudi Arabia,<br />
sales rose sharply and <strong>Scania</strong>’s market share rose to<br />
about 25 percent.<br />
43
Service-related products<br />
In order for <strong>Scania</strong> to be profitable, its customers<br />
have to make money. By updating,<br />
customising and continuously expanding its<br />
range of service-related products, <strong>Scania</strong><br />
helps its customers to achieve increasingly<br />
cost-effective solutions. The customer relationship<br />
develops into a mutual partnership.<br />
Around the world, more than 500,000 <strong>Scania</strong> heavy<br />
trucks and buses are on the roads today. These<br />
vehicles are served by 1,500 authorised <strong>Scania</strong> workshops,<br />
including more than 1,000 in Europe. Assuming<br />
the same growth rate in sales and vehicle fleet as in<br />
recent decades, by the end of this decade at least<br />
800,000 <strong>Scania</strong> vehicles will require service and<br />
maintenance.<br />
Sales of service-related products are already an<br />
important element of <strong>Scania</strong>’s total business today,<br />
and their role will continue to grow rapidly.<br />
Steadily improved, more intensive customer<br />
relationships combined with individual solutions<br />
enable both the customer and <strong>Scania</strong> to increase<br />
profitability.<br />
A growing business<br />
During <strong>2001</strong>, <strong>Scania</strong>’s sales of service and parts rose by<br />
27 percent to SEK 10,279 m. Excluding the effects of<br />
acquisitions, the increase totalled about 14 percent. The<br />
number of vehicles sold with service contracts is steadily<br />
growing in most European markets. Up to half of the new<br />
trucks sold in some markets are combined with leasing<br />
and service contracts.<br />
An ordinary day at the <strong>Scania</strong> bus service workshop in Saulx-les-Chartreux, France.<br />
Agreements to ensure high availability<br />
For today’s transport operators, the focus is on vehicle<br />
utilisation. Many customers pay a fixed per-kilometre<br />
price so that they can concentrate on their core business<br />
– transport services and logistics – and thereby<br />
avoid worrying about service, maintenance and availability<br />
of vehicles.<br />
<strong>Scania</strong>’s maintenance and repair contracts lead to a<br />
closer business relationship between the customer and<br />
<strong>Scania</strong>’s service organisation. In case of unplanned<br />
stoppages, the contract guarantees that the vehicle will<br />
be back in service again within 24 hours at the latest.<br />
<strong>Scania</strong> Assistance<br />
Today’s transport operators face an extremely competitive<br />
market. Always arriving at the agreed time is not<br />
only a matter of revenues and goodwill, but may also<br />
be a matter of survival.<br />
<strong>Scania</strong> Assistance can help minimise customer<br />
downtime if something unexpected happens – round<br />
the clock, every day of the year. By making a single<br />
telephone call, customers can get help in their own<br />
language via one of 16 call centres in Europe. In case<br />
of unplanned stoppages, <strong>Scania</strong> Assistance coordinates<br />
towing, workshop services, payment, overnight<br />
lodgings and replacement vehicle rentals if needed.<br />
Uniform high standard<br />
<strong>Scania</strong> workshops must meet strict quality and equipment<br />
standards. Further training of service staff is a<br />
high priority in <strong>Scania</strong>’s global organisation. Instructors<br />
update their skills regularly at the company’s own<br />
training centres in Sweden, Great Britain, Brazil, South<br />
Korea and Dubai. These instructors, in turn, train<br />
mechanics at local centres.<br />
No matter where they are, <strong>Scania</strong> customers must<br />
receive the same high level and quality of service, in<br />
terms of knowledge and efficiency. For this reason,<br />
44
<strong>Scania</strong> has developed a Code of Practice on how the<br />
company’s sales and service organisation around the<br />
world should handle and develop <strong>Scania</strong>’s business.<br />
One important element of this is the Dealer Operating<br />
Standards (DOS) certification programme, which is<br />
adapted to the special needs of <strong>Scania</strong> customers.<br />
DOS is based on a number of pledges to customers<br />
concerning availability, sales and delivery,<br />
access to parts and maintenance and repairs. These<br />
customer pledges are fundamentally about two things:<br />
• The customer must feel secure and know that he or<br />
she will receive expert technical assistance within<br />
the promised time frame.<br />
• The customer must always feel properly treated by<br />
<strong>Scania</strong>, regardless of where he or she may be.<br />
Used vehicles<br />
For some years, <strong>Scania</strong> has maintained a web-based<br />
marketplace for used vehicles, which is accessible via<br />
its corporate web site, www.scania.com<br />
The marketplace features trucks available from<br />
<strong>Scania</strong>’s sales organisation in 18 countries and buses<br />
in 8 countries.<br />
<strong>Scania</strong> Infotronics AB<br />
Through its subsidiary <strong>Scania</strong> Infotronics, <strong>Scania</strong><br />
develops such products as web-based systems for<br />
fleet management and driver training.<br />
<strong>Scania</strong> Assistance responds round the clock,<br />
every day of the year.<br />
45
Customer financing<br />
Customer financing was <strong>Scania</strong>’s fastestgrowing<br />
business area during <strong>2001</strong>. Its operations<br />
contribute to the company’s overall earnings<br />
and growth, while strengthening the competitiveness<br />
of <strong>Scania</strong>’s distributors. To meet<br />
customer demands for increasingly more<br />
sophisticated financing solutions, a number of<br />
new services were developed during the year.<br />
Continued positive trend<br />
The income of <strong>Scania</strong>’s customer finance operations<br />
rose by 55 percent to SEK 278 m. (179). This was<br />
equivalent to an operating income of 1.19 (1.06) percent<br />
of the year’s average portfolio. Overhead, expressed in<br />
relation to the average portfolio, fell from 0.98 to 0.96<br />
percent.<br />
Total financing volume rose by 36 percent to SEK<br />
25,091 m. (18,522). During the year, 12,109 (9,891) new<br />
trucks, 458 (221) new buses and 2,498 (1,842) used<br />
<strong>Scania</strong> vehicles were financed. The number of contracts<br />
in the portfolio at year-end totalled 54,028 (38,777). Of<br />
the total portfolio, 39 percent consisted of operating<br />
leases and 30 percent of financial leases. The remaining<br />
31 percent represented loan financing.<br />
The year-on-year comparison was affected by the<br />
integration of Dutch finance company operations during<br />
the year, which added nearly SEK 20 m. in profit and<br />
more than SEK 3,000 m. in portfolio growth.<br />
Financial services are an important element of <strong>Scania</strong>’s<br />
complete product range. The company endeavours to<br />
work locally in its customer finance operations. Proximity<br />
to the customer and local know-how makes the<br />
processing of applications more efficient and improves<br />
the quality of credit evaluation.<br />
Europe<br />
<strong>Scania</strong>’s customer finance operations in Europe now<br />
consist of twelve <strong>Scania</strong>-owned finance companies.<br />
They cover Great Britain, France, Spain, Germany, the<br />
Netherlands, Belgium, Luxembourg, Italy, the Nordic<br />
region, Poland, the Czech Republic plus other countries<br />
in central and eastern Europe.<br />
During the year, Bezoma B.V. – the leasing and<br />
finance company of the Dutch-based <strong>Scania</strong> distributor<br />
Beers – was integrated with <strong>Scania</strong>’s customer<br />
finance operations.<br />
<strong>Scania</strong> is continuously developing new financial services.<br />
Total assets in finance<br />
companies<br />
SEK m.<br />
30,000<br />
25,000<br />
20,000<br />
15,000<br />
10,000<br />
5,000<br />
0<br />
98 99 00 01<br />
Operating income<br />
and net margin<br />
SEK m.<br />
300<br />
The former branch operations in Luxembourg were<br />
developed into a separate finance company.<br />
The Italian finance company showed strong<br />
growth, more than doubling its portfolio during the<br />
year. The newly established finance company in Spain<br />
also developed very favourably during <strong>2001</strong>.<br />
Operations in central and eastern Europe, which<br />
take place through the company <strong>Scania</strong> Credit, doubled<br />
during the year. Several of <strong>Scania</strong> Credit’s markets<br />
expanded sharply, among them Romania, Bulgaria<br />
and Latvia.<br />
Other markets<br />
Financing operations in South Korea expanded very<br />
strongly. <strong>Scania</strong> Credit established operations in South<br />
Africa.<br />
200<br />
100<br />
0<br />
Operating income<br />
Net margin as a<br />
percentage of<br />
average portfolio<br />
98 99 00 01<br />
%<br />
1.5<br />
1.0<br />
0.5<br />
0<br />
46
Risk exposure<br />
As more and more customers request financial solutions,<br />
this increases the need for risk management.<br />
<strong>Scania</strong> responds to this need by means of continuous<br />
credit evaluations and proactive monitoring of the<br />
credit portfolio. During <strong>2001</strong>, <strong>Scania</strong> carried out extensive<br />
preventive work to ensure that it can manage<br />
customer financing risks even better.<br />
For customers that are not judged capable of fulfilling<br />
their contractual obligations, <strong>Scania</strong> makes specific<br />
provisions for credit risks in its accounts, based on an<br />
individual assessment of each customer with regard to<br />
payment capacity and expected future risk.<br />
In <strong>2001</strong>, actual credit losses totalled SEK 56 m. (49).<br />
Credit costs were equivalent to 0.59 percent of the<br />
average portfolio.<br />
At year-end, the total reserve for possible credit<br />
losses was SEK 413 m. (226), equivalent to 1.6 (1.2)<br />
percent of the portfolio.<br />
Residual value risks<br />
<strong>Scania</strong>’s customer finance operations are responsible<br />
for credit risks in the finance company group. Responsibility<br />
for residual value guarantees rests with the sales<br />
companies and are regulated by policy documents.<br />
Insurance<br />
During <strong>2001</strong>, insurance operations were expanded to<br />
include a more sophisticated range of transport-related<br />
insurance products. Since these insurance packages<br />
are offered in combination with <strong>Scania</strong>’s own vehicles,<br />
and since the local finance companies know both<br />
In Europe, <strong>Scania</strong> has its own customer finance operations in more than 20 countries.<br />
customers and drivers well, these insurance products<br />
can be offered at very competitive rates.<br />
Latin America<br />
<strong>Scania</strong> offers financing in Latin America mainly on the<br />
basis of collaboration with outside lenders and<br />
assumes a limited portion of the credit risk. In Brazil<br />
and Argentina, <strong>Scania</strong> offers a customer-financed<br />
savings programme, in which customers are organised<br />
into consortia. Through regular savings in a consortium,<br />
the customer is guaranteed the allocation<br />
of a vehicle within the savings period. During <strong>2001</strong>,<br />
nearly 40 percent of truck sales and 20 percent of bus<br />
sales in Brazil occurred via consortia.<br />
Future outlook<br />
<strong>Scania</strong>’s customer finance operations are now well<br />
established in most major markets. The pace of<br />
growth is therefore expected to slow during 2002.<br />
Prioritised areas will be further efficiency improvements<br />
in portfolio and credit management, as well as<br />
development of new financial services.<br />
47
Financial review<br />
Earnings<br />
Earnings<br />
<strong>2001</strong> 2000<br />
Operating income, SEK m. 2,467 5,084<br />
Income after financial items, SEK m. 1,541 4,454<br />
Net income, SEK m. 1,048 3,080<br />
Earnings per share, SEK 5.24 15.40<br />
Return on capital employed<br />
(excluding Customer finance operations), % 8.4 19.7<br />
Return on equity, % 6.5 21.6<br />
The <strong>Scania</strong> Group’s operating income declined by<br />
51 percent and amounted to SEK 2,467 m. (5,084).<br />
The operating margin of the <strong>Scania</strong> Group fell to 4.6<br />
(9.9) percent. The margin for <strong>Scania</strong> products, i.e.<br />
excluding car operations, amounted to 5.0 (10.7)<br />
percent.<br />
Earnings by area of operations<br />
Operating income, SEK m. <strong>2001</strong> 2000<br />
European operations 2,979 4,621<br />
Latin American operations –901 9<br />
Customer finance operations 278 179<br />
Total <strong>Scania</strong> products 2,356 4,809<br />
Car operations 111 275<br />
<strong>Scania</strong> Group total 2,467 5,084<br />
Operating margin, % <strong>2001</strong> 2000<br />
European operations 7.0 11.5<br />
Latin American operations –15.5 0.1<br />
Total <strong>Scania</strong> products 5.0 10.7<br />
Car operations 1.9 4.1<br />
<strong>Scania</strong> Group total 4.6 9.9<br />
Operating income in European operations 1 amounted to<br />
SEK 2,979 m. (4,621), a decline of 36 percent.<br />
Operating income was adversely affected by:<br />
• Lower capacity utilisation at production units due to<br />
lower volume.<br />
• Increased product costs, including development<br />
expenses, as well as the introduction of new products<br />
and systems.<br />
• Expenses of SEK 160 m. for early retirements and staff<br />
reductions.<br />
Compared to the preceding year, earnings were<br />
favourably influenced by:<br />
• Increased sales of service-related products.<br />
• Positive net currency rate effects of about SEK 700 m.<br />
• A larger share of vehicles with more advanced equipment,<br />
resulting in higher average revenue per truck.<br />
Operating income in Latin American operations<br />
amounted to SEK –901 m. (9).<br />
Operating income was adversely affected by:<br />
• Substantially worse margins due to cost increases,<br />
largely currency rate related, which could not be offset<br />
by local price increases.<br />
• Lower sales volume in Argentina.<br />
• Costs of expansion in commercial operations related<br />
to a build-up of commercial structure within <strong>Scania</strong>’s<br />
own organisation.<br />
• Expenses of SEK 125 m. charged to the year’s<br />
earnings for staff reductions.<br />
Operating income in Customer finance operations rose<br />
by 55 percent and amounted to SEK 278 m. (179). During<br />
<strong>2001</strong>, operations continued to expand, with a large<br />
number of vehicles being financed despite lower sales<br />
volume in the <strong>Scania</strong> Group.<br />
Operating income in Car operations 2 amounted to<br />
SEK 111 m. (275). Lower earnings were mainly due to<br />
lower sales volume.<br />
Net financial items totalled SEK -926 m. (-630), of<br />
which net interest items amounted to SEK -848 m. The<br />
deterioration was essentially attributable to higher interest<br />
rates in Latin America.<br />
Income after financial items amounted to SEK<br />
1,541 m. (4,454).<br />
Tax expenses for the year amounted to SEK 496 m.<br />
(1,371), equivalent to 32.2 (30.8) percent of income after<br />
financial items. The higher tax level in <strong>2001</strong> was mainly due<br />
to losses in Latin America for which the value of tax loss<br />
carry-forwards was not fully recognised.<br />
Net income amounted to SEK 1,048 m. (3,080),<br />
resulting in earnings per share of SEK 5.24 (15.40).<br />
Sales<br />
The <strong>Scania</strong> Group’s sales amounted to SEK 53,065 m.<br />
(51,398), equivalent to an increase of 3 percent. During<br />
the year, currency rate effects positively influenced sales<br />
by SEK 2,840 m., including the effect of hedging. Acquisitions/divestments<br />
of businesses had a positive effect of<br />
SEK 1,327 m.<br />
During <strong>2001</strong>, the <strong>Scania</strong> Group sold 43,659 (52,318)<br />
1 European operations are the portion of <strong>Scania</strong>’s operations that, in principle,<br />
supply all markets except Latin American ones with the company’s products<br />
and services.<br />
2 Car operations include half the importer operations of the Svenska Volkswagen<br />
Group in Sweden; the wholly-owned Swedish car dealership network Din Bil;<br />
and car dealership networks in Finland and Switzerland.<br />
48
Sales<br />
Number of vehicles <strong>2001</strong> 2000<br />
European operations 40,626 47,867<br />
Latin American operations 7,705 8,625<br />
Total <strong>Scania</strong> vehicles sold 48,331 56,492<br />
Sales value, SEK m.<br />
European operations 42,496 40,097<br />
Latin American operations 5,806 6,104<br />
Intra-Group sales –1,089 –1,461<br />
Total <strong>Scania</strong> products 47,213 44,740<br />
Car operations 5,852 6,658<br />
Total sales value 53,065 51,398<br />
Sales by product, SEK m.<br />
<strong>2001</strong> 2000<br />
Trucks 29,139 31,101<br />
Buses 4,701 3,704<br />
Engines 608 437<br />
Service-related products 10,279 8,113<br />
Used vehicles and other products 4,370 3,810<br />
Revenue deferral 1 –1,884 –2,425<br />
Total <strong>Scania</strong> products 47,213 44,740<br />
Car operations 5,852 6,658<br />
Total sales 53,065 51,398<br />
1 Refers to the difference between sales recognised as revenues and sales<br />
value based on delivery.<br />
trucks, equivalent to a decrease of 17 percent. The<br />
number of buses sold was 4,672 (4,174), an increase<br />
of 12 percent.<br />
Cash flow<br />
The Group’s cash flow, excluding Customer finance<br />
operations and acquisitions, amounted to SEK 2,995 m.<br />
(3,014).<br />
Cash flow from operating activities amounted to SEK<br />
4,873 m. (4,535). Of this, SEK 2,978 m. (4,951) consisted<br />
of cash from operating activities. The remaining SEK<br />
1,895 m. (–416) was related to changes in working<br />
capital. The adjustment to lower production volume freed<br />
up working capital, in local currencies, related to both<br />
receivables and inventories.<br />
Net investments, excluding acquisitions/divestments of<br />
businesses, affected cash flow by SEK –1,878 m. (–1,521).<br />
Financial position<br />
The balance sheet total, with Customer finance operations<br />
<strong>report</strong>ed according to the equity accounting<br />
method, rose by 8 percent to SEK 54,946 m. (50,651).<br />
The overall balance sheet total rose by 12 percent to SEK<br />
68,439 m. (60,900). This increase was a consequence of<br />
acquisitions as well as the weakening of the Swedish<br />
krona.<br />
During the year, gross investments totalled SEK<br />
1,980 m. (1,825). <strong>Scania</strong> made large investments in its<br />
cab production plant in Oskarshamn as well as in the parts<br />
logistics centre in Belgium. In addition, it made investments<br />
to increase production efficiency at the Luleå plant.<br />
Financial ratios related to the balance sheet<br />
<strong>2001</strong> 2000<br />
Net debt/equity ratio, excluding<br />
provisions for pensions 1 7,790 7,781<br />
Net debt/equity ratio 1 0.49 0.50<br />
Shareholders’ equity per share, SEK 80.00 78.50<br />
Equity/assets ratio, % 23.4 25.8<br />
1 With Customer finance operations <strong>report</strong>ed according to the equity<br />
accounting method.<br />
During <strong>2001</strong>, the shareholders’ equity of the <strong>Scania</strong><br />
Group increased by SEK 297 m. and totalled SEK 15,995<br />
m. (15,698) at year-end. Net income for the year added<br />
SEK 1,048 m., while dividends to shareholders decreased<br />
shareholders’ equity by SEK 1,400 m. The remaining<br />
increase, SEK 649 m., was attributable to translation of<br />
net assets outside Sweden.<br />
The dividend for the financial year proposed by the<br />
Board of Directors is SEK 3.50 (7.00) per share.<br />
The net indebtedness of the <strong>Scania</strong> Group, i.e. the<br />
difference between liquid assets and interest-bearing<br />
liabilities, excluding pensions and with Customer finance<br />
operations <strong>report</strong>ed according to the equity accounting<br />
method, amounted to SEK 7,790 m. (7,781), which<br />
meant that the net indebtedness ratio was 0.49 (0.50).<br />
Net indebtedness including Customer finance operations<br />
totalled SEK 29,305 m. (23,777).<br />
Financing<br />
<strong>Scania</strong> has a committed revolving credit facility of USD<br />
1,850 m. from an international banking syndicate that<br />
expires in November 2004. At year-end <strong>2001</strong>, the equivalent<br />
of USD 370 m. of this facility was being utilised. This<br />
means that USD 1,480 m., equivalent to SEK 15,789 m.<br />
translated at the closing day rate, was available under the<br />
credit facility on 31 December <strong>2001</strong>.<br />
The Group has a medium-term note programme,<br />
under which <strong>Scania</strong> can issue notes and bonds with<br />
maturities ranging from one to ten years. At year-end, the<br />
maximum amount was SEK 7,000 m. and SEK 3,832 m.<br />
worth of such debt securities had been issued under the<br />
programme.<br />
In conjunction with Standard & Poor’s official credit<br />
49
ating of <strong>Scania</strong>, the Group established a European<br />
medium-term note programme, under which <strong>Scania</strong> can<br />
issue notes and bonds in the international financial market.<br />
At year-end, the maximum amount was EUR 1,500<br />
m. and EUR 550 m. worth of such debt securities had<br />
been issued under the programme in the form of a public<br />
bond that matures in December 2008.<br />
<strong>Scania</strong> also has short-term borrowing in the form<br />
of commercial paper in Sweden and Belgium, with<br />
maximum amounts of SEK 6,000 m. and EUR 400 m.,<br />
respectively. At year-end, SEK 5,912 m. and EUR 85 m.,<br />
respectively, of these facilities had been utilised.<br />
Interest and credit risk<br />
<strong>Scania</strong>’s policy concerning interest rate risk is that the<br />
duration of its loan portfolio should normally be 6 months;<br />
however, durations may be allowed to deviate within the<br />
0–24 month range. One exception is <strong>Scania</strong>’s finance<br />
companies, in which the fixed interest period on loans is<br />
matched with the fixed interest period on assets.<br />
During <strong>2001</strong>, the average funding cost including customer<br />
finance operations was 5.9 percent (6.3). During<br />
the year, the average fixed interest period on <strong>Scania</strong>’s<br />
loan portfolio (excluding finance companies) was about 3<br />
months, which was also the average fixed interest period<br />
at year-end.<br />
Derivative instruments are used to manage interest<br />
rate risks within the Group. All the above data include the<br />
effects of these derivatives. Management of credit risks<br />
that arise in <strong>Scania</strong>’s treasury unit, among other things<br />
when investing liquid assets and engaging in derivatives<br />
trading, is regulated in <strong>Scania</strong>’s financial policy. Transactions<br />
take place only within established ceilings and with<br />
carefully selected, creditworthy counterparties.<br />
Hedging of currency flows<br />
GBP/SEK USD/SEK EUR/SEK CHF/SEK NOK/SEK<br />
Quarter Volume Rate* Volume Rate* Volume Rate* Volume Rate* Volume Rate*<br />
Q 1** 2002 32.5 14.70 30.0 10.38 100.0 9.20 10.0 5.97 90.0 1.19<br />
Q 2 2002 60.0 14.98 43.0 10.62 148.0 9.30 15.0 6.27 23.7 1.18<br />
Q 3 2002 42.6 15.33 33.0 10.79 105.0 9.72 15.5 6.81<br />
Q 4 2002 25.8 15.20 54.4 10.81 82.5 9.52 10.0 6.60<br />
Total 160.9 160.4 435.5 50.5 113.7<br />
(in millions)<br />
Closing day rate 31 Dec <strong>2001</strong><br />
15.475 10.6675 9.419 6.36 1.1835<br />
Unrealised gain/loss<br />
31 Dec <strong>2001</strong><br />
(SEK m.) –49.675 –11.493 – 3.536 –0.031 2.49<br />
* Average forward price and lowest redemption price for currency options.<br />
** January volumes are not included, since the unrealised gain/loss effect was <strong>report</strong>ed in December.<br />
Currencies<br />
Net currency transaction exposure during <strong>2001</strong> was<br />
about SEK 14 bn. The largest inflow currencies were EUR<br />
along with GBP and USD. Based on the <strong>2001</strong> geographic<br />
breakdown of revenues and expenses, a one percent<br />
change in the Swedish krona would change operating<br />
income by about SEK 140 m. on a full-year basis. Currency<br />
exposure in operating income by region is presented<br />
in Note 26 on page 65.<br />
In a statistical calculation compared to the currency<br />
situation in 2000, operating income in <strong>2001</strong> for European<br />
operations was favourably affected by SEK 700 m. In this<br />
comparison, the effect of changed spot exchange rates<br />
totals about SEK 1,300 m. The net effect of currency<br />
hedging activities and exchange rate gains/losses on the<br />
reassessment of receivables and liabilities adversely<br />
affected the comparison by SEK 600 m. For Latin American<br />
operations, direct and indirect effects of changes in<br />
Currency transaction exposure<br />
SEK m.<br />
15,000<br />
10,000<br />
5,000<br />
0<br />
98 99 00 01<br />
Other<br />
currencies<br />
GBP<br />
USD and<br />
AUD<br />
EUR*<br />
*) ATS, BEF/LUF,<br />
FIM, FRF, DEM,<br />
ESP, IEP, ITL,<br />
NLG and PTE<br />
exchange rates were estimated to have adversely affected<br />
operating income by SEK 400 m.<br />
<strong>Scania</strong>’s policy is to hedge currency flows during a period<br />
of time equivalent to the projected orderbook until the date of<br />
payment. This normally means a hedging period of 3 to 4<br />
months. However, the hedging period is allowed to vary<br />
between 0 and 12 months.<br />
<strong>Scania</strong>’s net assets abroad amounted to SEK 8,788 m. at<br />
the end of <strong>2001</strong> (see Note 25, page 65). The net assets of foreign<br />
subsidiaries are not hedged under normal circumstances.<br />
To the extent a subsidiary has significant monetary assets in<br />
local currency, however, it may be hedged. As of 31 December<br />
<strong>2001</strong>, SEK 892 m. (845) was hedged at <strong>Scania</strong> level, which<br />
was equivalent to 10 (7) percent of the Group total.<br />
In order to hedge monetary operating assets in Latin<br />
American operations, <strong>Scania</strong> has taken out loans in local currencies.<br />
On December 31, <strong>2001</strong>, these loans totalled SEK<br />
1,714 m. (1,898).<br />
50
Consolidated income statement<br />
Residual value exposure<br />
Vehicle sales through <strong>Scania</strong>’s commercial companies<br />
occur partly with fixed repurchase obligations or with<br />
guaranteed residual value in the case of sales via Customer<br />
finance operations. During <strong>2001</strong>, the volume of such<br />
transactions was more than 4,800 vehicles. The value of<br />
all obligations at year-end was SEK 7,260 m. (5,449). In the<br />
case of sales with the above obligations, profit recognition<br />
occurs successively over the period of the obligation.<br />
Residual value and repurchase obligations are regulated by<br />
written company policies and are regularly monitored both<br />
at the Group and subsidiary level.<br />
Insurance<br />
The insurance department coordinates <strong>Scania</strong>’s global<br />
insurance procurement. Most of <strong>Scania</strong>’s insurance<br />
coverage is obtained in the international insurance market,<br />
at a cost of SEK 55 m. in <strong>2001</strong>. A large proportion of<br />
premium volume is placed in <strong>Scania</strong>’s own insurance<br />
company, Vabis Försäkrings AB, which in turn manages<br />
insurance risks by means of reinsurance in the international<br />
reinsurance market.<br />
Number of employees<br />
At year-end, the number of employees totalled 28,342<br />
(27,366). The staff reduction at European production units<br />
proceeded as planned. In the European sales and service<br />
organisation as well as in developing markets, the number<br />
of employees rose. In Latin American operations, about 350<br />
persons will leave the company during the first half of 2002<br />
due to measures that have been approved. Acquisitions of<br />
businesses increased the number of employees by 1,566<br />
persons, while divestments decreased the number by 226.<br />
January–December, SEK m. Note <strong>2001</strong> 2000 1999<br />
Sales 1 1 53,065 51,398 44,044<br />
Cost of goods sold 2 –42,601 –40,061 –33,558<br />
Gross income 1 10,464 11,337 10,486<br />
Research and development expenses –1,955 –1,621 –1,267<br />
Selling expenses 1, 2 –5,594 –4,312 –3,774<br />
Administrative expenses –785 –856 –866<br />
Income from Customer finance operations 1 2 278 179 140<br />
Share of income of associated companies 1 3 59 357 326<br />
Operating income 1 2,467 5,084 5,045<br />
Financial income and expenses 4<br />
Interest income 294 415 381<br />
Interest expenses –1,142 –1,007 –909<br />
Other financial income and expenses –78 –38 –17<br />
Net financial items -926 –630 –545<br />
Income after financial items 1,541 4,454 4,500<br />
Taxes 5 –496 –1,371 –1,353<br />
Minority interests 3 –3 –1<br />
Net income 1,048 3,080 3,146<br />
Depreciation included in operating income 6 –2,157 –1,999 –1,909<br />
Earnings per share, SEK 3 5.24 15.40 15.73<br />
1 Acquired and divested companies increased sales by SEK 1,327 m., gross income by SEK 368 m., selling expenses by<br />
SEK 318 m. and income from Customer finance operations by SEK 17 m. Share of income of associated companies<br />
decreased by SEK 182 m. Operating income was adversely affected by SEK 115 m.<br />
2 Selling expenses: Defined as sales-related expenses, including goodwill amortisation, in commercial companies and costs<br />
of central commercial-related resources. Beginning in the first quarter of <strong>2001</strong>, <strong>Scania</strong> is <strong>report</strong>ing indirect expenses related<br />
to service workshops and parts management as well as warranty expenses in commercial companies under<br />
‘‘Cost of goods sold” instead of among ‘‘Selling expenses” as previously.<br />
3 There are no potential dilution effects.<br />
51
Consolidated balance sheet<br />
With Customer finance operations<br />
<strong>report</strong>ed according to the equity<br />
accounting method, pro forma<br />
31 December, SEK m. Note <strong>2001</strong> 2000 1999 <strong>2001</strong> 2000 1999<br />
ASSETS<br />
Fixed assets<br />
Intangible fixed assets 7 1,364 545 555 1,364 545 555<br />
Tangible fixed assets 8 25,714 21,967 20,289 25,695 21,949 20,274<br />
Financial fixed assets<br />
Shares in associated companies etc 9 795 2,037 1,388 3,287 3,631 2,616<br />
Interest-bearing receivables 10 10,178 7,312 6,356 784 541 433<br />
Deferred tax assets 16 963 635 502 963 633 499<br />
Other long-term receivables 351 604 525 347 604 525<br />
Total fixed assets 39,365 33,100 29,615 32,440 27,903 24,902<br />
Current assets<br />
Inventories 11 7,946 7,467 7,437 7,880 7,429 7,279<br />
Receivables 12<br />
Interest-bearing trade receivables 6,791 5,483 4,180 989 941 650<br />
Other trade receivables 7,731 8,953 7,560 7,562 8,905 7,519<br />
Other receivables 2,499 2,316 2,116 2,144 2,005 1,934<br />
Total receivables 17,021 16,752 13,856 10,695 11,851 10,103<br />
Short-term investments 13 2,133 1,939 1,713 2,132 1,926 1,713<br />
Cash and bank balances 1,974 1,642 997 1,799 1,542 830<br />
Total current assets 29,074 27,800 24,003 22,506 22,748 19,925<br />
Total assets 68,439 60,900 53,618 54,946 50,651 44,827<br />
52
With Customer finance operations<br />
<strong>report</strong>ed according to the equity<br />
accounting method, pro forma.<br />
31 December, SEK m. Note <strong>2001</strong> 2000 1999 <strong>2001</strong> 2000 1999<br />
SHAREHOLDERS’ EQUITY AND LIABILITIES<br />
Shareholders’ equity 14<br />
Share capital 2,000 2,000 2,000 2,000 2,000 2,000<br />
Restricted reserves 5,665 5,370 4,353 5,665 5,370 4,353<br />
Total restricted reserves 7,665 7,370 6,353 7,665 7,370 6,353<br />
Unrestricted reserves 7,282 5,248 4,049 7,282 5,248 4,049<br />
Net income 1,048 3,080 3,146 1,048 3,080 3,146<br />
Total unrestricted equity 8,330 8,328 7,195 8,330 8,328 7,195<br />
Total shareholders’ equity 15,995 15,698 13,548 15,995 15,698 13,548<br />
Minority interests in subsidiaries 21 22 23 21 22 23<br />
Provisions<br />
Provisions for pensions 15 2,092 1,929 1,842 2,087 1,925 1,839<br />
Provisions for deferred taxes 16 2,391 2,271 2,044 1,490 1,626 1,515<br />
Other provisions 17 2,184 1,800 1,961 2,180 1,795 1,954<br />
Total provisions 6,667 6,000 5,847 5,757 5,346 5,308<br />
Liabilities<br />
Long-term borrowings 18 18,908 15,372 11,268 3,961 5,599 5,366<br />
Short-term borrowings 18 14,504 11,986 13,119 7,760 5,650 5,486<br />
Advance payments from customers 764 530 563 680 446 446<br />
Trade accounts payable 3,253 3,616 2,801 3,025 3,433 2,661<br />
Tax liabilities 182 527 872 179 521 871<br />
Other liabilities 2,003 1,842 1,561 1,769 1,614 1,321<br />
Accrued expenses and prepaid income 19 6,142 5,307 4,016 15,799 12,322 9,797<br />
Total liabilities 45,756 39,180 34,200 33,173 29,585 25,948<br />
Total shareholders’ equity and liabilities 68,439 60,900 53,618 54,946 50,651 44,827<br />
Assets pledged and contingent liabilities<br />
Assets pledged 20 233 245 231<br />
Contingent liabilities 21 855 881 645<br />
53
Statement of changes in shareholders’ equity<br />
Amounts in SEK m. unless otherwise stated <strong>2001</strong> 2000 1999<br />
Shareholders’ equity, 1 January <strong>2001</strong> 15,698 13,548 11,851<br />
Translation differences 649 470 –149<br />
Net income 1,048 3,080 3,146<br />
Dividend to shareholders –1,400 –1,400 –1,300<br />
Shareholders’ equity, 31 December <strong>2001</strong> 15,995 15,698 13,548<br />
Consolidated statement of cash flow<br />
January–December, SEK m. Note <strong>2001</strong> 2000 1999<br />
Cash flow from operating activities<br />
Net income, excluding Customer finance operations 854 2,954 3,034<br />
Items not affecting cash flow 22 2,124 1,997 2,322<br />
Cash from operating activities 2,978 4,951 5,356<br />
Change in working capital etc<br />
Inventories 475 74 693<br />
Receivables 1,973 –1,394 –2,746<br />
Provisions for pensions 153 75 –95<br />
Non-interest-bearing liabilities and provisions –706 829 43<br />
Total change in working capital etc 22 1,895 –416 –2,105<br />
Total cash flow from operating activities 4,873 4,535 3,251<br />
Net investments excluding acquisitions/divestments of businesses 22 –1,878 –1,521 –1,654<br />
Cash flow before acquisitions /divestments of businesses* 2,995 3,014 1,597<br />
Net investments through acquisitions /divestments of businesses 22 –929 –457 –1,121<br />
Cash flow excluding Customer finance operations 2,066 2,557 476<br />
Expansion in Customer finance operations 2 –2,428 –2,444 –2,708<br />
Change in net indebtness including Customer finance operations -362 113 –2,232<br />
Change in net indebtness from financing activities 22 2,119 2,020 4,431<br />
Dividend to shareholders –1,400 –1,400 –1,300<br />
Net change in liquid assets and short-term investments 357 733 899<br />
Effect of exchange rate fluctuations on liquid assets and short-term investments 169 138 37<br />
Cash, bank balances and short-term investments, 1 January 3,581 2,710 1,774<br />
Cash, bank balances and short-term investments, 31 December 4,107 3,581 2,710<br />
* Cash flow per share, excluding Customer finance operations and acquisitions/divestments 14.98 15.07 7.99<br />
54
Parent Company financial statements<br />
Income statement<br />
January–December, SEK m. Note <strong>2001</strong> 2000 1999<br />
Operating income – – –<br />
Financial income and expenses 1 51 –13 – 42<br />
Dividends and Group contributions received 1 650 3,184 3,619<br />
Withdrawal from tax allocation reserve 600 – –<br />
Provision to tax allocation reserve –325 –634 –706<br />
Taxes 1 –273 –711 –790<br />
Net income 703 1,826 2,081<br />
1 Refers to current tax<br />
Balance sheet<br />
31 December, SEK m. <strong>2001</strong> 2000 1999<br />
ASSETS<br />
Financial fixed assets<br />
Shares 2 10,971 10,971 10,971<br />
Current assets<br />
Due from subsidiaries 3,010 4,409 3,427<br />
Other receivables 13 13 13<br />
Total assets 13,994 15,393 14,411<br />
SHAREHOLDERS’ EQUITY AND LIABILITIES<br />
Shareholders’ equity 3 10,873 11,570 11,144<br />
Untaxed reserves 4 2,836 3,111 2,477<br />
Current liabilities<br />
Accrued expenses and prepaid income 12 1 –<br />
Tax liabilities 273 711 790<br />
Total current liabilities 285 712 790<br />
Total shareholders’ equity and liabilities 13,994 15,393 14,411<br />
Assets pledged and contingent liabilities<br />
Assets pledged None None None<br />
Contingent liabilities 5 26,872 19,476 18,139<br />
Statement of changes in shareholders’ equity<br />
Amounts in SEK m. <strong>2001</strong> 2000 1999<br />
Shareholders’ equity, 1 January 11,570 11,144 10,363<br />
Net income 703 1,826 2,081<br />
Dividends to shareholders –1,400 –1,400 –1,300<br />
Shareholders’ equity, 31 December 10,873 11,570 11,144<br />
Statement of cash flow<br />
January–December, SEK m. <strong>2001</strong> 2000 1999<br />
Cash flows from operating activities<br />
Net income 703 1,826 2,081<br />
Items not affecting cash flow<br />
Group contributions received –650 –3,255 –3,569<br />
Group contributions provided – 71 –<br />
Provision to/withdrawal from tax allocation reserve –275 634 706<br />
Cash from operating activities –222 –724 –782<br />
Change in working capital<br />
Current liabilities –427 –79 74<br />
Receivables – – –13<br />
Total cash flow from operating activities –649 –803 –721<br />
Investment activities<br />
Shares – – 298<br />
Change in net indebtedness from financing activities<br />
Change in liabilities to subsidiaries 2,049 2,203 1,723<br />
Dividend to shareholders –1,400 –1,400 –1,300<br />
Net cash provided by financing activities 649 803 423<br />
Liquid assets and short-term investments, 31 December – – –<br />
55
Accounting principles<br />
The Annual Report of the <strong>Scania</strong> Group have been prepared<br />
in compliance with the Annual Accounts Act, the current recommendations<br />
of the Swedish Financial Accounting Standards<br />
Council and the statements of its Urgent Issues Task Force.<br />
The recommendations of the Council are based on the<br />
international accounting standards (IAS) issued by the<br />
International Accounting Standards Board. In the case of<br />
the <strong>Scania</strong> Group, there are differences compared to U.S.<br />
generally accepted accounting principles (U.S. GAAP).<br />
A description of these can be found on page 67.<br />
Consolidated accounts<br />
The consolidated financial statements encompass <strong>Scania</strong> AB<br />
and all subsidiaries and associated companies in Sweden<br />
and abroad. Subsidiaries are companies in which <strong>Scania</strong><br />
directly or indirectly owns more than 50 percent of the voting<br />
rights of the shares or in which <strong>Scania</strong> otherwise has a decisive<br />
influence. Associated companies are companies in which<br />
<strong>Scania</strong> has a long-term ownership interest and voting rights<br />
of between 20 and 50 percent.<br />
Associated companies are <strong>report</strong>ed in accordance with<br />
the equity accounting method. This means that the shares<br />
and participations in associated companies are <strong>report</strong>ed in<br />
the consolidated balance sheet as the Group’s share of their<br />
equity after adjusting for the Group’s share of surplus or<br />
deficit value, respectively. Thus, consolidated income<br />
includes <strong>Scania</strong>’s share of the income of associated companies.<br />
Customer financing operations are <strong>report</strong>ed pro forma<br />
according to the equity accounting method, in order to create<br />
more analytical <strong>report</strong>ing. The tied-up capital and accompanying<br />
financial structure of Customer finance operations differ<br />
substantially from other operations.<br />
The consolidated accounts are prepared in accordance<br />
with the recommendation of the Swedish Financial Accounting<br />
Standards Council (RR1:96). Acquisitions of companies<br />
are <strong>report</strong>ed according to the purchase accounting method.<br />
This means that an acquired subsidiary’s assets and liabilities<br />
are accounted for by the purchaser at acquisition values<br />
according to an analysis of the acquisition. If the acquisition<br />
cost of the shares in the subsidiary exceeds the estimated fair<br />
market value of the company’s net assets according to the<br />
analysis, the difference is <strong>report</strong>ed as goodwill in consolidation.<br />
The goodwill amortisation period is established on the basis<br />
of individual examination. In deciding the amortisation period,<br />
the main principles used are as follows:<br />
• Small acquisitions that are a supplement to existing operations<br />
and that are integrated with them are amortised in<br />
five years.<br />
• Larger acquisitions that involve establishing new markets<br />
are amortised in ten years if they are established operations<br />
with a strong market position.<br />
It was decided that the amortisation period for companies<br />
acquired during <strong>2001</strong> would be ten years.<br />
Only income that arises after the date of acquisition is<br />
included in consolidated shareholders’ equity.<br />
The minority interests’ share of net income and shareholders’<br />
equity of partially owned subsidiaries is <strong>report</strong>ed separately<br />
in the calculation of net income and shareholders’<br />
equity.<br />
Foreign subsidiaries and associated companies<br />
European production companies, Latin American operations<br />
and certain holding companies are integral to <strong>Scania</strong> and<br />
their financial statements are thus translated to Swedish kronor<br />
using the monetary/non-monetary accounting method.<br />
Latin American operations, which are predominantly industrial<br />
in nature, are an integral part of <strong>Scania</strong>’s total industrial system,<br />
with common product development, common products<br />
and a common production structure. Other foreign subsidiaries,<br />
mainly marketing companies, are regarded as independent<br />
and their financial statements are translated using<br />
the current method.<br />
Under the monetary/non-monetary method, monetary<br />
items are translated at the year-end rate, while non-monetary<br />
items are translated at the rate in effect on the acquisition<br />
date. Inventories, property, plant and equipment and shareholders’<br />
equity are translated at the acquisition date rate and<br />
other assets and liabilities at the year-end rate. With the<br />
exception of consumption of goods and depreciation of property,<br />
plant and equipment, which are translated at the acquisition<br />
date rate, income and expenses are translated at a<br />
weighted average exchange rate for the year.<br />
The translation difference on monetary assets and<br />
liabilities is included in net income for the year and is <strong>report</strong>ed<br />
in the income statement as follows. The portion of the translation<br />
difference attributable to operations-related balance sheet<br />
items is included in operating income. The portion of the translation<br />
difference attributable to financial items is included in<br />
financial income and expenses. The portion attributable to tax<br />
items is <strong>report</strong>ed under taxes in the income statement. Currency<br />
rate effects from exchange rate hedging are allocated in a<br />
similar way among operating income, net financial items and<br />
taxes.<br />
Under the current method, assets and liabilities are translated<br />
at the year-end exchange rate, while income and<br />
expenses are translated at the average exchange rate for the<br />
year. The translation difference, which arises in part from<br />
translating net assets of foreign companies at a different rate<br />
at the beginning of the year than at year-end, and in part from<br />
translating net income at other than the year-end rate, is<br />
<strong>report</strong>ed directly in shareholders’ equity in the balance sheet.<br />
Receivables and liabilities in foreign currency<br />
Receivables and liabilities in foreign currency are valued at the<br />
year-end exchange rate. Unrealised exchange rate gains and<br />
losses are thus included in income during the period that the<br />
hedged flow is <strong>report</strong>ed. Exchange rate effects related to<br />
hedging of the flow in foreign currencies are also included in<br />
earnings during the period that the hedged flow is <strong>report</strong>ed.<br />
The unrealised portion of estimated exchange rate hedging,<br />
including accrued interest, is <strong>report</strong>ed as accrued income or<br />
an accrued expense.<br />
56
Short-term investments<br />
Short-term investments are valued at the lower of acquisition<br />
cost or market value.<br />
Inventories<br />
Inventories are valued at the lower of acquisition value according<br />
to the first in, first out principle (FIFO) or actual value. An<br />
allocable portion of indirect expenses is included in the value of<br />
the inventories. Inventories are <strong>report</strong>ed on a net basis after<br />
deductions for obsolescence and internal profits.<br />
Property, plant and equipment<br />
Property, plant and equipment are <strong>report</strong>ed at acquisition<br />
cost and are depreciated down to an estimated residual value<br />
over the service life of the asset. Land holdings are not<br />
depreciated.<br />
Leasing contracts<br />
Leasing contracts with customers are <strong>report</strong>ed as financial<br />
leases in cases where substantially all risks and benefits<br />
associated with ownership have been transferred to the<br />
lessee. Other leasing contracts as accounted for as operating<br />
leases.<br />
Revenue recognition<br />
Sales revenues are recognised upon delivery of the products<br />
and services, on the date when substantially all the risks and<br />
rights of ownership pass to the buyer. See ‘‘Successive revenue<br />
recognition” below.<br />
Depreciation<br />
An asset is depreciated down to an estimated residual value<br />
over its useful life. The useful life of machinery and equipment<br />
is 5–15 years. Industrial buildings are depreciated over 25<br />
years. Land holdings are not depreciated.<br />
Research and development expenses<br />
The expenses of research and development are charged to<br />
operating income as they arise.<br />
Warranty expenses<br />
Estimated expenses for product warranties are charged to<br />
operating income when the product is sold.<br />
Selling expenses<br />
Selling expenses are defined as sales-related expenses in<br />
commercial companies, including goodwill amortisations related<br />
to acquisitions and costs of central commercial-related<br />
resources.<br />
Administrative expenses<br />
Administrative expenses are defined as Group-wide costs of<br />
corporate management plus corporate staff units in European<br />
and Latin American operations.<br />
Exchange rate differences<br />
Exchange rate differences are <strong>report</strong>ed under operating<br />
income, aside from translation differences pertaining to shortand<br />
long-term borrowings, which are <strong>report</strong>ed as financial<br />
income or expenses.<br />
Exchange rate differences attributable to loans and<br />
forward exchange contracts in foreign currencies that are<br />
designated as a hedge of the net assets of independent<br />
subsidiaries are <strong>report</strong>ed, with consideration given to tax<br />
effects, directly in shareholders’ equity in the consolidated<br />
balance sheet, together with the translation difference on<br />
translated net assets. The portion of these forward exchange<br />
contracts that pertains to interest is amortised over the life of<br />
the contract and is <strong>report</strong>ed among financial income and<br />
expenses.<br />
Taxes<br />
The Group’s total tax consists of current tax and deferred tax.<br />
Deferred tax is <strong>report</strong>ed in case of a difference between the<br />
book value of assets and liabilities and their tax value<br />
(‘‘temporary differences”). Full provision is made for deferred tax<br />
liabilities, while deferred tax assets are recognised only to the<br />
extent they are considered likely to be realised.<br />
The Group has kept the accounting principle which, in<br />
accordance with American accounting principles, means that<br />
deferred tax on the temporary differences that occur when<br />
translating non-monetary items is not valued.<br />
Changes in accounting principles<br />
Successive revenue recognition<br />
Beginning with <strong>2001</strong>, <strong>Scania</strong> is applying recommendation RR<br />
11 of the Swedish Financial Accounting Standards Council<br />
concerning revenue recognition. This means that revenue on<br />
‘‘operating leases” as well as on other sales with repurchase<br />
obligations is <strong>report</strong>ed successively over the life of the obligation<br />
instead of being <strong>report</strong>ed on the delivery date, as previously.<br />
As a consequence of this, the equivalent assets remain<br />
in <strong>Scania</strong>’s balance sheet, with Customer finance companies<br />
<strong>report</strong>ed according to the equity accounting method. Payments<br />
received are <strong>report</strong>ed there as prepaid income.<br />
Accounting principles applied from 2002 onward<br />
Through acquisitions, Latin American operations have<br />
assumed a more developed commercial nature. Like <strong>Scania</strong>’s<br />
European commercial companies, the commercial portion will<br />
be translated according to the current method from 2002<br />
onward.<br />
From 2002 onward, <strong>Scania</strong> will be applying recommendation<br />
RR 15 of the Swedish Financial Accounting Standards<br />
Council, related to intangible assets. This recommendation is a<br />
translation of the International Accounting Standards Board’s<br />
principle IAS 38, Intangible Assets. This means that a certain<br />
portion of <strong>Scania</strong>’s Group-wide research and development<br />
expenditures will be recognised as assets and amortised over<br />
its estimated useful life.<br />
57
Notes to the consolidated financial statements<br />
All amounts are stated in millions of Swedish kronor (SEK m.) unless otherwise indicated.<br />
Note 1 Sales<br />
<strong>2001</strong> 2000 1999<br />
Trucks 29,139 31,101 27,888<br />
Buses 4,701 3,704 3,601<br />
Engines 608 437 444<br />
Service-related products 10,279 8,113 6,927<br />
Used vehicles and other products 4,370 3,810 2,765<br />
Revenue deferral 1 –1,884 –2,425 –3 ,066<br />
Total <strong>Scania</strong> products 47,213 44,740 38,559<br />
Car operations 5,852 6 ,658 5,485<br />
Total 53,065 51,398 44,044<br />
1 Refers to the difference between sales recognised as revenues and sales<br />
value based on delivery.<br />
Note 2 Customer finance operations<br />
The Group’s Customer finance operations are conducted primarily<br />
by separate subsidiaries. Their financial statements are summarised<br />
below.<br />
Income statement <strong>2001</strong> 2000 1999<br />
Interest income 1,041 718 559<br />
Lease income 2,656 1,687 1,287<br />
Depreciation –1,939 –1,198 –921<br />
Interest expenses –1,101 –792 –581<br />
Bad debts 1 –137 –66 –57<br />
Other expenses –242 –170 –147<br />
Income before taxes 278 179 140<br />
Balance sheet <strong>2001</strong> 2000 1999<br />
ASSETS<br />
Lease assets 9,894 7,208 5,809<br />
Financial receivables 15,197 11,314 9,453<br />
Other assets 1,163 804 835<br />
Total 26,254 19,326 16,097<br />
SHAREHOLDERS’ EQUITY AND LIABILITIES<br />
Shareholders’ equity 2,492 1,594 1,229<br />
Borrowings 21,691 16,108 13,535<br />
Other liabilities 2,071 1,624 1,333<br />
Total 26,254 19,326 16,097<br />
The statement of cash flow below describes the expansion in<br />
Customer finance operations.<br />
Statement of cash flow <strong>2001</strong> 2000 1999<br />
Net income 194 126 112<br />
Items not affecting cash flow 312 194 133<br />
Cash from operating activities 506 320 245<br />
Increase in lease assets –143 –1,246 –1,606<br />
Increase in financial receivables –2,435 –1,680 –1,304<br />
Change in other assets and liabilities –79 162 38<br />
Acquisition of business 2 –277 – –81<br />
Expansion in Customer<br />
finance operations –2,428 –2,444 –2,708<br />
Lease assets <strong>2001</strong> 2000 1999<br />
Acquisition value 13,919 9,385 7,449<br />
Accumulated depreciation –4,025 –2,177 –1,640<br />
Book value at year-end 3 9,894 7,208 5,809<br />
1 Including change in provisions for doubtful receivables.<br />
2 Acquisition of the Dutch financing business Bezoma, part of Beers N.V.<br />
The value of assets totalled SEK 3,182 m. and liabilities totalled SEK 2,905 m.<br />
The purchase price amounted to SEK 277 m. The effect on cash flow totalled<br />
SEK –277 m.<br />
3 Included in the consolidated accounts under ‘‘Machinery and equipment” after<br />
subtracting deferred profit recognition.<br />
Net investments in financial leases <strong>2001</strong> 2000 1999<br />
Minimum lease payments receivable 10,988 8,543 7,176<br />
Less:<br />
Executory costs and reserve<br />
for doubtful receivables –342 –242 –194<br />
Imputed interest –1,093 –934 –860<br />
Net investment 4 9,553 7,367 6,122<br />
4 Included in ‘‘Interest-bearing trade accounts receivable” and ‘‘Long-term<br />
interest-bearing receivables”.<br />
Future payments Operating leases Financial leases<br />
2002 2,552 4,205<br />
2003 2,089 3,063<br />
2004 1,645 2,061<br />
2005 844 1,137<br />
2006 505 430<br />
2007 and thereafter 264 92<br />
Total 7,899 10,988<br />
Note 3 Share of income of associated<br />
companies<br />
The Group’s share of income before taxes of associated<br />
companies consisted of the following:<br />
<strong>2001</strong> 2000 1999<br />
<strong>Scania</strong> products 1 29 195 162<br />
Car operations 30 162 164<br />
Total 59 357 326<br />
1 In 2000, Beers accounted for SEK 182 m. In <strong>2001</strong>, Beers was 100 percent<br />
included in <strong>Scania</strong> and was thus <strong>report</strong>ed as a wholly-owned subsidiary.<br />
Note 4 Financial income and expenses<br />
<strong>2001</strong> 2000 1999<br />
Interest income<br />
Bank balances and short-term<br />
investments 89 237 242<br />
Interest-bearing receivables 157 121 96<br />
Interest portion of forward exchange<br />
contracts used to hedge net assets –2 14 13<br />
Other 50 43 30<br />
Total interest income 294 415 381<br />
Interest expenses<br />
Borrowings –1,086 –945 –865<br />
Interest on pension liability (PRI) –56 –62 –44<br />
Total interest expences –1,142 –1,007 –909<br />
Other –78 –38 –17<br />
Net financial items –926 –630 –545<br />
58
Note 5 Taxes<br />
<strong>2001</strong> 2000 1999<br />
Current tax –642 –1,088 –1,138<br />
Deferred tax 163 –168 –112<br />
Share of tax of associated companies –17 –115 –103<br />
Total –496 –1,371 –1,353<br />
Geographic distribution of income before taxes and minority interests:<br />
Sweden 1,428 3,564 3,903<br />
Rest of the world 113 890 597<br />
Total 1,541 4,454 4,500<br />
Geographic distribution of tax expense:<br />
Current tax<br />
Sweden –369 –857 –869<br />
Rest of the world –273 –231 –269<br />
Total –642 –1,088 –1,138<br />
Deferred tax<br />
Sweden –7 –65 –194<br />
Rest of the world 170 –103 82<br />
Total 163 –168 –112<br />
Tax of associated companies –17 –115 –103<br />
Total –496 –1 371 –1 353<br />
The main reasons behind the difference between the statutory tax<br />
rate in Sweden and the effective tax rate in relation to income<br />
before taxes are indicated in the table below:<br />
<strong>2001</strong> 2000 1999<br />
% % %<br />
Swedish statutory income tax rate 28 28 28<br />
Valuation of tax loss carry-forwards 7 1 1<br />
Difference between Swedish<br />
and foreign tax rates –5 1 2<br />
Tax-exempt income –2 –1 –2<br />
Non-deductible expenses including<br />
goodwill amortisation 9 2 2<br />
Adjustment for taxes pertaining<br />
to previous years –2 0 1<br />
Other –3 0 –2<br />
Effective income tax rate 32 31 30<br />
Note 6 Depreciation<br />
Distribution of depreciation by function, excluding depreciation in<br />
Customer finance operations. (See note 2). “Selling expenses”<br />
included SEK 188 m. in amortisation of goodwill.<br />
<strong>2001</strong> 2000 1999<br />
Cost of goods sold –1,504 –1,411 –1,438<br />
Research and development expenses –106 –84 –70<br />
Selling expenses –502 –455 –360<br />
Administrative expenses –45 –49 –41<br />
Total –2,157 –1,999 –1,909<br />
In addition to the above depreciation, reduction in value on<br />
capitalised vehicles 1 delivered with repurchase guarantees and<br />
short-term leasing outside of Customer finance operations<br />
<strong>report</strong>ed under the heading ‘‘Operating leases” amounted to SEK<br />
583 m. (344 and 165, respectively).<br />
1 See ‘‘Successive revenue recognition” under accounting principles, page 57.<br />
Note 7 Intangible fixed assets<br />
Goodwill <strong>2001</strong> 2000 1999<br />
Accumulated acquisition value<br />
1 January 760 681 173<br />
Aquisitions/divestments of businesses 921 61 514<br />
Translation differences for the year 101 18 –6<br />
Total 1,782 760 681<br />
Accumulated amortisation<br />
1 January 215 126 60<br />
Amortisation for the year 188 83 62<br />
Acquisitions/divestments of businesses –5 – 7<br />
Translation differences for the year 20 6 –3<br />
Total 418 215 126<br />
Book value, 31 December 1,364 545 555<br />
Note 8 Tangible fixed assets<br />
Construction Opera-<br />
Building Machinery in progress tional<br />
and and and adv. leases<br />
land equipment payment etc<br />
Book value, 1 January 1999 5,653 7,155 784 4,926<br />
Change in accumulated<br />
acquisition value, 1999 819 899 207 2,019<br />
Change in accumulated<br />
depreciation,1999 –433 –1,226 – –514<br />
Book value, 31 Dec 1999 6,039 6,828 991 6,431<br />
Change in accumulated<br />
acquisition value, 2000 473 1,719 -259 2,239<br />
Change in accumulated<br />
depreciation, 2000 –250 –1,596 – –648<br />
Book value, 31 Dec 2000 6,262 6,951 732 8,022<br />
<strong>2001</strong><br />
Accumulated acquisition value<br />
1 January 9,238 18,301 732 10,696<br />
Additions during the year 386 773 821 4,093<br />
Acquisitions/divestments<br />
of businesses 1,104 147 –7 3,541<br />
Divestments and disposals –196 –676 – –3,692<br />
Reclassifications 90 222 –478 166<br />
Translation differences<br />
for the year 331 772 26 762<br />
Total 10,953 19,539 1,094 15,566<br />
Accumulated depreciation<br />
1 January 3,008 11,350 2,635<br />
Acquisitions/divestments<br />
of businesses 187 122 1,146<br />
Divestments and disposals –57 –529 –1,802<br />
Reclassifications –1 –39 40<br />
Depreciation for the year on<br />
acquisition value:<br />
– industrial and sales operations 378 1,590 583<br />
– Customer finance operations 11 1,939<br />
Translation differences<br />
for the year 106 456 192<br />
Total 3,621 12,961 – 4,733<br />
59
Construction Opera-<br />
Building Machinery in progress tional<br />
and and and adv. leases<br />
land equipment payment etc<br />
Accumulated revaluations<br />
1 January 33<br />
Total 33<br />
Accumulated write-downs<br />
1 January 1 39<br />
Acquisitions of businesses 79<br />
Write-downs for the year 1 36<br />
Total 2 154<br />
Book value at year-end 7,363 6,578 1,094 10,679<br />
of which ”Machinery” 5,648<br />
of which “Equipment” 930<br />
Tax assessment value,<br />
buildings (in Sweden) 1,120<br />
equivalent book value 2,430<br />
Tax assessment value,<br />
land (in Sweden) 365<br />
equivalent book value 437<br />
Firm obligations pertaining to leasing of premises are distributed as<br />
follows:<br />
Rent payment 2007<br />
<strong>2001</strong> 2002 2003 2004 2005 2006 and<br />
thereafter<br />
112 112 103 94 82 74 468<br />
Note 9 Shares in associated companies etc<br />
Shares in associated companies <strong>2001</strong> 2000 1999<br />
Accumulated acquisition value 332 750 739<br />
Accumulated share of income 387 827 639<br />
Book value 719 1,577 1,378<br />
Specification of the Groups’ holdings of shares and participations in<br />
associated companies etc.<br />
Associated company/ % Book value in Value of <strong>Scania</strong>’s share in<br />
corporate ID number/ owner- Parent Comp. consolidated accounts<br />
country of registration ship accounts <strong>2001</strong> 2000 1999<br />
Svenska Volkswagen AB,<br />
556084-0968, Sweden 50 21 624 659 593<br />
Cummins-<strong>Scania</strong> High<br />
Pressure Injection L.L.C,<br />
043650113, USA 30 25 48 36 40<br />
WM-Data <strong>Scania</strong> AB, 50 7 45 46 34<br />
556084-1206, Sweden<br />
Swed Bus Pakistan Pvt Ltd,<br />
K-07897, Pakistan 50 2 2 – –<br />
Beers N.V.,<br />
NL003779439B01,<br />
The Netherlands 1 50 – – 836 711<br />
Shares in associated companies 719 1,577 1,378<br />
Shares in other companies 76 14 10<br />
Convertible debenture loans 2 – 446 –<br />
Total 795 2,037 1,388<br />
1 During <strong>2001</strong>, <strong>Scania</strong> acquired the remaining 50 percent of the shares in Beers’<br />
N.V. and the company thus became a wholly owned subsidiary.<br />
2 Refers to two Brazilian dealership companies that were acquired in their entirety<br />
in January <strong>2001</strong>.<br />
The value of <strong>Scania</strong>’s share in the consolidated financial statements<br />
using the equity accounting method and its ownership stake in the<br />
shareholders’ equity of associated companies totalled the same<br />
amount (SEK 719 m.).<br />
The Group’s share of undistributed accumulated profit in<br />
associated companies comprised part of restricted reserves<br />
in consolidated accounts. It amounted to SEK 387 m. (827<br />
and 639, respectively).<br />
Note 10 Interest-bearing receivables<br />
(long-term)<br />
<strong>2001</strong> 2000 1999<br />
Receivables in Customer<br />
finance operations 9,394 6,508 5,645<br />
Other receivables 784 804 711<br />
Total 10,178 7,312 6,356<br />
In 2000 and 1999, ‘‘Other receivables” included deposits of SEK<br />
107 m. and 151, respectively, with financial institutions that were<br />
restricted in their use by agreement with third parties.<br />
Note 11 Inventories<br />
<strong>2001</strong> 2000 1999<br />
Raw materials 858 781 987<br />
Work in progress 299 359 458<br />
Finished goods 6,789 6,327 5,992<br />
Total 7,946 7,467 7,437<br />
Note 12 Receivables<br />
<strong>2001</strong> 2000 1999<br />
Interest-bearing trade accounts<br />
receivables 988 940 650<br />
Receivables in Customer<br />
finance operations 5,803 4,543 3,530<br />
Sub-total, interest-bearing trade<br />
accounts receivable 6,791 5,483 4,180<br />
Trade accounts receivables 7,731 8,953 7,560<br />
Other receivables 1,824 1,594 1,559<br />
Prepaid expenses and accrued income 675 722 557<br />
Sub-total, other receivables 2,499 2,316 2,116<br />
Total 17,021 16,752 13,856<br />
As of 31 December <strong>2001</strong>, receivables from associated companies<br />
pertaining to products and services delivered were SEK 43.2 m.<br />
Trade accounts payable to associated companies pertaining to<br />
services and products purchased were SEK 21.8 m. and<br />
payables pertaining to interest-bearing financing SEK 40.2 m.<br />
60
Note 13 Short-term investments<br />
<strong>2001</strong> 2000 1999<br />
Cash equivalents<br />
(maturities of less than 90 days) 895 991 1,395<br />
Short-term investments 1,238 948 318<br />
Total 2,133 1,939 1,713<br />
Half of the Group’s short-term investments are found in the Latin<br />
American subsidiaries. The remainder was related to investments of<br />
surplus liquidity in Europe.<br />
Investments totalling SEK 692 m. (866 and 653, respectively) in<br />
value were restricted by agreement with third parties.<br />
Note 14 Shareholders’ equity<br />
The shareholders’ equity of the Group has changed as follows:<br />
Unrestr. Acc.<br />
Restric- share- trans-<br />
Share ted holders’ lation<br />
2000 capital reserves equity diff. Total<br />
1 January 2,000 4,353 6,743 452 13,548<br />
Dividend to shareholders –1,400 –1,400<br />
Net income for 2000 3,080 3,080<br />
Translation differences<br />
for the year 470 470<br />
Transfer between restricted<br />
and unrestricted equity 1,017 –1,017<br />
31 December 2,000 5,370 7,406 922 15,698<br />
<strong>2001</strong><br />
1 January 2,000 5,370 7,406 922 15,698<br />
Dividend to shareholders’ –1,400 –1,400<br />
Net income for <strong>2001</strong> 1,048 1,048<br />
Translation differences<br />
for the year 1 649 649<br />
Transfer between restricted<br />
and unrestricted equity 2 295 –295<br />
31 December 2,000 5,665 6,759 1,571 15,995<br />
<strong>Scania</strong> AB has 100,000,000 A shares outstanding with voting<br />
rights of one vote per share and 100,000,000 B shares outstanding<br />
with voting rights of 1/10 vote per share. No provisions to restricted<br />
reserves are required.<br />
1 Translation differences for the year arise when foreign net assets are translated<br />
according to the current accounting method. The year’s somewhat higher translation<br />
differences compared to 2000 were due to the weakened Swedish krona.<br />
2 Transfers to restricted equity are explained mainly by increased deferred tax<br />
assets.<br />
Note 15 Provisions for pensions and similar<br />
commitments<br />
<strong>2001</strong> 2000 1999<br />
Provisions for FPG/PRI pensions 1,427 1,350 1,273<br />
Provisions for vested pensions 381 312 290<br />
Special pension allocation 65 64 74<br />
Provisions for medical care benefits 219 203 205<br />
Total 2,092 1,929 1,842<br />
The amount under “Provisions for pensions” corresponds to the<br />
actuarial projections of all mandatory and voluntary pension obligations.<br />
The Swedish plan for salaried employees is administered by<br />
a Swedish multi-employer pension institution, the Pension<br />
Registration Institute (PRI). The level of benefits and actuarial<br />
assumptions are established by PRI. <strong>Scania</strong>’s pension liability<br />
consists of the sum of the discounted current value of the<br />
company’s estimated future pension payments. Pension liability<br />
is based on current salaries.<br />
“Provisions for pensions” include foreign subsidiaries, whose<br />
pension commitments are <strong>report</strong>ed in accordance with the<br />
principles that apply in each country, provided that they permit<br />
earned pension benefits to be <strong>report</strong>ed as an expense.<br />
For obligations related to medical care benefits, which are<br />
attributable to its operations in Brazil, <strong>Scania</strong> applies SFAS 106,<br />
“Employers’ Accounting for Postretirement Benefits”. This means<br />
that medical care benefits, etc that are earned by the employees<br />
but not utilised until after retirement are expensed as they arise.<br />
Note 16 Deferred tax assets/liabilities<br />
<strong>2001</strong> 2000 1999<br />
Deferred tax assets<br />
Provisions 212 269 329<br />
Property, plant and equipment 171 77 66<br />
Inventories 363 308 251<br />
Tax loss carry-forwards 801 525 398<br />
Other 349 295 148<br />
Offset within tax units –933 –839 –690<br />
Total 963 635 502<br />
Deferred liabilities<br />
Property, plant and equipment 2,190 1,951 1,863<br />
Tax allocation reserve 807 873 702<br />
Other 327 286 169<br />
Offset within tax units –933 –839 – 690<br />
Total 2,391 2,271 2,044<br />
Net deferred tax liabilities 1,428 1,636 1,542<br />
Tax loss carry-forwards stem mainly from Latin America, France,<br />
England and Germany. For Latin American operations, deferred tax<br />
assets of SEK 510 m. related to tax loss carry-forwards were not<br />
<strong>report</strong>ed due to a ceiling on <strong>annual</strong> future utilisation. Of the deferred<br />
tax assets attributable to tax loss carry-forwards, SEK 644 m. may<br />
be utilised without time constraints.<br />
In Sweden, tax laws permit provisions to an untaxed reserve<br />
called a tax allocation reserve. Deductions for provisions to this<br />
reserve are allowed up to a maximum of 25 percent of the company’s<br />
taxable profits. Each provision to this reserve may be freely<br />
withdrawn and face taxation, but must be withdrawn no later than<br />
the sixth year following the year the provision was made.<br />
Note 17 Other provisions<br />
<strong>2001</strong> 2000 1999<br />
Warranty provisions 1,439 1,245 1,267<br />
Other 745 555 694<br />
Total 2,184 1,800 1,961<br />
61
Note 18 Borrowings<br />
Borrowings for Customer finance operations are effectively<br />
matched against contracted payment flows with regard to currency<br />
and fixed-interest periods. Financing of industrial operations in<br />
Europe is mainly without currency risk, normally with a fixed-interest<br />
period of 3 months:<br />
Short- and long-term borrowing<br />
distributed by currency 1 <strong>2001</strong> 2000 1999<br />
SEK 12,593 10,505 8,168<br />
EUR 14,549 8,495 7,405<br />
GBP 1,698 1,417 2,540<br />
USD 1,806 4,567 2,245<br />
Other currencies 2,766 2,374 4,029<br />
Total 2 33,412 27,358 24,387<br />
1 Does not take into account any currency hedging.<br />
2 These amounts include SEK 21,691 m. (16,108 and 13,535, respectively) in<br />
borrowings for customer finance operations. The average interest rate on<br />
borrowings, including borrowings for customer finance operations, was<br />
5.9 percent (6.3 and 5.8, respectively) at year-end.<br />
The above loans fall due for repayment as follows:<br />
2002 14,504<br />
2003 3,385<br />
2004 7,145<br />
2005 1,273<br />
2006 714<br />
2007 and later 6,391<br />
Total 33,412<br />
<strong>Scania</strong> has a committed revolving credit facility of USD 1,850 m.<br />
from an international banking syndicate that expires in November<br />
2004. At year-end <strong>2001</strong>, the equivalent of USD 370 m. of this facility<br />
was being utilised. This means that USD 1,480 m., equivalent<br />
to SEK 15,789 m. translated at the closing day rate, was available<br />
under the credit facility on December 31, <strong>2001</strong>.<br />
The Group has a medium-term note programme, under<br />
which <strong>Scania</strong> can issue notes and bonds with maturities ranging<br />
from one to ten years. At year-end, the maximum amount was<br />
SEK 7,000 m. and SEK 3,832 m. worth of such debt securities had<br />
been issued under the programme.<br />
In conjunction with Standard & Poor’s official credit rating of<br />
<strong>Scania</strong>, the Group established a European medium-term note programme,<br />
under which <strong>Scania</strong> can issue notes and bonds in the<br />
international financial market. At year-end, the maximum amount<br />
was EUR 1,500 m. and EUR 550 m. worth of such debt securities<br />
had been issued under the programme in the form of a public bond<br />
that matures in December 2008.<br />
<strong>Scania</strong> also has short-term borrowing in the form of commercial<br />
paper in Sweden and Belgium, with maximum amounts of SEK<br />
6,000 m. and EUR 400 m., respectively. At year-end, SEK 5,912 m.<br />
and EUR 85 m., respectively, of these facilities had been utilised.<br />
Net indebtness<br />
<strong>2001</strong> 2000 1999<br />
Cash, bank balances and<br />
short-term investments 4,107 3,581 2,710<br />
Short-term borrowings –14,504 –11,986 –13,119<br />
Long-term borrowings –18,908 –15,372 –11,268<br />
Total –29,305 –23,777 –21,677<br />
Of which, attributable to<br />
Customer finance operations –21,515 –15,996 –13,368<br />
Net indebtness –7,790 –7,781 –8,309<br />
Note 19 Accrued expenses and prepaid<br />
income<br />
<strong>2001</strong> 2000 1999<br />
Accrued financial expenses 431 325 200<br />
Customary accrued expenses<br />
and prepaid income 3,440 2,891 2,186<br />
Prepaid income in operating leases 1 2,271 2,091 1,630<br />
Total 6,142 5,307 4,016<br />
1 Beginning with the first quarter of <strong>2001</strong>, <strong>Scania</strong> is applying recommendation<br />
RR 11 of the Swedish Financial Accounting Standards Council. This means that<br />
when selling vehicles with fixed repurchase obligations or when selling with a<br />
guaranteed residual value, the customer’s payment is <strong>report</strong>ed as prepaid<br />
income and the vehicle as an operating lease. The vehicle is then depreciated<br />
and the payment is <strong>report</strong>ed as income successively during the obligation period.<br />
Note 20 Assets pledged<br />
<strong>2001</strong> 2000 1999<br />
Real estate mortgages 231 240 214<br />
Receivables 2 5 17<br />
Total 233 245 231<br />
All assets pledged consisted of collateral for the Group’s own liabilities.<br />
In <strong>2001</strong>, all collateral was pledged to credit institutions and<br />
amounted to SEK 23 m. for short-term borrowings and SEK 210 m.<br />
for long-term borrowings.<br />
Note 21 Contingent liabilities<br />
<strong>2001</strong> 2000 1999<br />
FPG/PRI pension guarantee obligations<br />
on behalf of Group companies 27 27 25<br />
FPG/PRI pension guarantee obligations<br />
on behalf of associated companies 159 147 138<br />
Loan guarantees 92 144 106<br />
Discounted bills and contracts 140 133 112<br />
Other guarantees 437 430 264<br />
Total 855 881 645<br />
In addition to the above contingent liabilities, the Group has issued<br />
vehicle repurchase guarantees worth SEK 804 m. (727 and 737,<br />
respectively) to customers’ creditors.<br />
Repurchase obligations related to guaranteed residual values in<br />
operating leases amounted to SEK 7,260 m. (5,449 and 4,415,<br />
respectively).<br />
The Group has given repurchase commitments without risks<br />
related to future prices to Svenska Volkswagen Finans AB in an<br />
amount estimated at SEK 452 m. (601 and 610, respectively).<br />
The Group is party to legal proceedings and related claims<br />
arising in the normal course of business. Management believes,<br />
however – based on its assessments of these claims – that the<br />
ultimate resolution of these proceedings will not have a material<br />
impact on the Group’s financial position.<br />
62
Note 22 Items not affecting cash flow<br />
Items not affecting cash flow <strong>2001</strong> 2000 1999<br />
Depreciation 2,157 1,999 1,909<br />
Value adjustment, short-term leasing 161 44 39<br />
Unrealised exchange rate differences –58 –66 –13<br />
Doubtful receivables 263 61 100<br />
Share of income of associated companies –59 –357 –326<br />
Share of taxes of associated companies 17 115 103<br />
Dividends from associated companies 70 98 114<br />
Deferred tax –306 68 47<br />
Deferred profit recognition,<br />
operating leases –120 154 315<br />
Other –1 –119 34<br />
Total 2,124 1,997 2,322<br />
Change in working capital<br />
Interest-bearing long-term receivables 97 –32 50<br />
Other receivables 1,876 –1,362 –2,796<br />
Inventories 475 74 693<br />
Provisions for pensions 153 75 –95<br />
Advance payments from customers 185 –40 –84<br />
Trade accounts payable –519 699 131<br />
Other liabilities and provisions –372 170 –4<br />
Total 1,895 –416 –2,105<br />
Net investments excluding acquisitions/divestments of<br />
businesses<br />
Investments in tangible fixed assets –2,405 –1,968 –1,965<br />
Divestments of tangible fixed assets 527 447 311<br />
Total –1,878 –1,521 –1,654<br />
Net investment through acquisitions/divestments of<br />
businesses<br />
Proceeds from sale of shares<br />
(after subtracting liquid assets in<br />
divested businesses) 1 –42 24 –7<br />
Acquisitions of businesses 1 –887 –53 –1,114<br />
Acquisitions of convertible<br />
debenture loans 2 – –428 –<br />
Total –929 –457 –1,121<br />
Change in net indebtness through financing activities<br />
Net change in short-term borrowings –782 –2,070 –134<br />
Repayment of long-term borrowings –1,248 –190 –536<br />
Increase in long-term borrowings 4,032 4,221 5,033<br />
Net change in restricted deposits 117 59 68<br />
Total 2,119 2,020 4,431<br />
Interest and taxes paid <strong>2001</strong> 2000 1999<br />
Interest received during the year 294 415 382<br />
Interest paid during the year 1,035 882 909<br />
Taxes paid during the year 1,049 1,373 1,320<br />
1 During <strong>2001</strong>, <strong>Scania</strong> acquired the remaining 50 percent of its distributor in the<br />
Netherlands as well as dealership companies in Brazil, Denmark and Lithuania.<br />
The acquisition of the Brazilian dealerships occurred through conversion<br />
of debenture loans. During the year, <strong>Scania</strong> sold dealerships in Finland and<br />
Sweden. According to acquisition analyses, the value of the liabilities and<br />
assets acquired/divested was as follows:<br />
Acquisitions Divestments<br />
Tangible and intangible fixed assets 1,938 –76<br />
Inventories 634 –33<br />
Receivables 321 –20<br />
Liquid assets 178 –70<br />
Borrowings 562 56<br />
Other liabilities and provisions –1,308 110<br />
Shares in associated companies and other companies 60 –<br />
Gain/loss from divestments of companies – 5<br />
Book value of previously owned holdings<br />
in new Group company –835 –<br />
Puchase price paid 1,550 –28<br />
Of which, paid through conversion of debenture loans –485 –<br />
Liquid assets in acquired/ divested companies –178 70<br />
Impact on consolidated liquid assets<br />
and short-term investments 887 42<br />
2 Refers to two Brazilian dealership companies that were acquired in their<br />
entirety in January <strong>2001</strong>.<br />
Note 23 Wages, salaries and other<br />
remuneration; average number of<br />
employees<br />
Wages, salaries and other remuneration <strong>2001</strong> 2000 1999<br />
Operations in Sweden:<br />
Boards of Directors, Presidents and<br />
Executive Vice Presidents 44 53 35<br />
– Of which, bonuses 17 25 6<br />
Other employees 3,139 3,155 3,000<br />
Operations outside Sweden:<br />
Boards of Directors, Presidents and<br />
Executive Vice Presidents 164 132 124<br />
– Of which, bonuses 20 15 19<br />
Other employees 3,949 3,288 2,525<br />
Total 7,296 6,628 5,684<br />
Pension costs and other<br />
mandatory payroll fees 2,863 2,358 2,148<br />
– Of which, pension costs 1 725 485 365<br />
Total wages, salaries and remuneration,<br />
pension costs and other mandatory<br />
payroll fees 10,159 8,986 7,832<br />
Average number of employees <strong>2001</strong> 2000 1999<br />
Operations in Sweden:<br />
Average number of employees 11,943 12,060 11,440<br />
Operations outside Sweden:<br />
Number of countries 49 43 45<br />
Average number of employees 15,038 13,556 11,694<br />
Average total number of employees 26,981 25,616 23,134<br />
Average number of<br />
employees, by country <strong>2001</strong> 2000 1999<br />
Operations in Sweden 11,943 12,060 11,440<br />
– of whom men 10,194 10,333 9,965<br />
– of whom women 1,749 1,727 1,475<br />
1 Of the pension cost in the consolidated financial statements, SEK 22 m.<br />
(25 and 35, respectively) was for Boards of Directors and Presidents in the<br />
<strong>Scania</strong> Group. At year-end, the total pension commitment was SEK 81 m.<br />
for this category.<br />
63
Average number of employees <strong>2001</strong> 2000 1999<br />
Operations outside Sweden:<br />
The Netherlands 2,364 1,510 1,614<br />
Brazil 2,050 2,151 1,932<br />
Great Britain 1,632 1,586 1,467<br />
Germany 927 695 591<br />
France 879 871 918<br />
Norway 834 863 217<br />
Argentina 760 833 1,040<br />
Finland 691 743 3<br />
Belgium 665 583 684<br />
Denmark 475 551 680<br />
Austria 425 396 349<br />
Poland 416 406 332<br />
Mexico 309 150 73<br />
Australia 290 295 303<br />
Switzerland 275 272 255<br />
South Africa 261 230 169<br />
Italy 181 174 174<br />
South Korea 163 121 69<br />
Russia 160 108 96<br />
Spain 130 102 84<br />
Czech Republic 127 107 95<br />
Morocco 107 87 73<br />
27 countries < 100 employed 2 917 722 476<br />
Total 15,038 13,556 11,694<br />
– of whom men 13,320 11,987 10,357<br />
– of whom women 1,718 1,569 1,337<br />
Average total number of employees 26,981 25,616 23,134<br />
2 In 1999 and 2000, 22 countries had fewer than 100 <strong>Scania</strong> employees.<br />
Number of employees on 31 Dec <strong>2001</strong> 2000 1999<br />
European operations<br />
Production operations and corporate<br />
staff units 13,321 14,093 13,532<br />
Sales and service companies 10,583 9,391 9,001<br />
Total, European operations 23,904 23,484 22,533<br />
Latin American operations 4,199 3,688 3,660<br />
Customer finance operations 239 194 166<br />
Total 28,342 27,366 26,359<br />
– of whom, contract employees 766 1,857 1,498<br />
<strong>2001</strong> 2000 1999<br />
Wages, salaries and other Wages, salaries Mandatory pay- Wages, salaries Mandatory pay- Wages, salaries Mandatory payremuneration,<br />
pension costs and and other roll fees (of and other roll fees (of and other roll fees (of<br />
other mandatory payroll fees by country remuneration which, pensions) remuneration which, pensions) remuneration (which, pensions)<br />
Operations in Sweden 3,183 1,875 (535) 3,208 1,543 (320) 3,035 1,442 (265)<br />
Operations outside Sweden:<br />
The Netherlands 676 138 (36) 355 78 (31) 366 84 (34)<br />
Great Britain 578 92 (33) 517 73 (25) 290 71 (21)<br />
Brazil 441 171 (0) 489 172 (0) 385 133 (0)<br />
Germany 309 66 (7) 218 47 (9) 193 45 (10)<br />
Norway 303 49 (11) 262 32 (6) 70 7 (0)<br />
France 231 140 (41) 200 117 (34) 221 139 (15)<br />
Argentina 208 91 (0) 219 88 (0) 207 78 (0)<br />
Finland 186 62 (33) 177 62 (33) 1 0 (0)<br />
Denmark 185 22 (9) 188 16 (8) 216 28 (4)<br />
Belgium 166 53 (0) 148 49 (0) 137 50 (0)<br />
Austria 156 1 (1) 131 2 (2) 121 2 (1)<br />
Switzerland 122 26 (0) 110 22 (0) 95 22 (0)<br />
37 countries with < SEK 100 m. 3 552 77 (19) 406 57 (17) 347 47 (15)<br />
Total 4,113 988 (190) 3,420 815 (165) 2,649 706 (100)<br />
Group total 7,296 2,863 (725) 6,628 2,358 (485) 5,684 2,148 (365)<br />
Refunds of surplus pension premiums from Alecta (formerly SPP) during 2000, totalling SEK 124 m., are expected to be utilised by 2003.<br />
3 In 2000, 31 countries had less than SEK 100 m. in wages, salaries and other<br />
remuneration. In 1999, the figure was 29 countries.<br />
Note 24 Information regarding<br />
compensation to executive<br />
officers and auditors<br />
According to the decision of the Annual Meeting, the <strong>2001</strong> compensation<br />
to the members of the Board of Directors elected by the<br />
Annual Meeting amounted to SEK 2,625,000. The Chairman<br />
received compensation of SEK 700,000.<br />
<strong>Scania</strong>’s regular incentive program for executive officers, among<br />
them the President and CEO, which was approved by the Board in<br />
1997, includes a bonus based on operating return, defined as<br />
<strong>Scania</strong> Group net income after subtracting the cost of shareholders’<br />
equity. Earnings for <strong>2001</strong> will not result in any bonus outcome.<br />
The outcome of the regular incentive programme that applied<br />
to 2000 was settled during <strong>2001</strong>. The President’s portion of this<br />
programme was allocated for a pension, by means of a premium<br />
of SEK 4,885,125.<br />
About 50 executive officers were covered by an extra bonus<br />
programme for 2000. The purpose of the bonus programme was<br />
to retain executive officers and create strong motivation in the<br />
turbulent ownership situation that prevailed during 2000 in conjunction<br />
with Volvo’s buyout of <strong>Scania</strong>. The President’s portion<br />
of this programme was equivalent to one year’s fixed salary. In<br />
addition, the President was paid an extra year’s fixed salary on<br />
the condition that he was employed by the company on 31<br />
December <strong>2001</strong>. These amounts were allocated for future pensions.<br />
The salary paid to the President during <strong>2001</strong> (including<br />
taxable benefits) totalled SEK 5,092,622. His fixed salary of SEK<br />
5,000,000 remained unchanged during <strong>2001</strong>.<br />
The pension plan in addition to the ITP occupational pension,<br />
64
with a retirement age of 65 for executive officers is a definedcontribution<br />
plan. Benefits accrue by means of <strong>annual</strong> payment of<br />
premiums by the company, totalling 15–20 percent of fixed salary in<br />
the 20–30 base amount interval (base amount = basbelopp as<br />
defined by Swedish social insurance legislation) and 25–30 percent<br />
of fixed salary above 30 base amounts. Added to this is the value<br />
of <strong>annual</strong> employee co-payments, amounting to 2–5 percent of<br />
fixed salary. The retirement age according to the plan is 60 for the<br />
Executive Board and 62 for other executive officers covered by the<br />
plan.<br />
The President – in addition to the ITP plan with a retirement age<br />
of 65 – is entitled to a defined contribution pension programme.<br />
The pension cost to the company consists of pension premiums<br />
amounting to 35 percent of fixed salary for as long as the President<br />
remains an employee of the company.<br />
The President holds a non-transferable employee stock option<br />
without market value, entitling him, after five years but no later than<br />
after seven years, to purchase a maximum of 220,000 shares in<br />
<strong>Scania</strong> AB at a price of SEK 196 per share. The employee stock<br />
option has been secured financially in the market, so that <strong>Scania</strong>’s<br />
costs for this programme are known. The option carries an<br />
entitlement to purchase existing Series B shares and thus will not<br />
lead to dilution for <strong>Scania</strong>’s shareholders.<br />
If he resigns of his own volition, or is terminated by the company,<br />
the President is entitled to his salary for a six month notice period.<br />
In light of the complex ownership structure of <strong>Scania</strong> AB and at<br />
the request of the new main owner (Volkswagen AG), during <strong>2001</strong><br />
the Board’s committee for compensation issues approved a fiveyear<br />
employment agreement with the President. The new agreement,<br />
which stipulates the conditions of the President’s employment<br />
until 30 March 2006, prescribes that an <strong>annual</strong> extra pension<br />
provision of SEK 4,410,000 will be made during each of the five<br />
years even if employment should cease due to termination by the<br />
company. In such a case, the other agreed salary and incentive<br />
benefits will also be provided for the period. As a consequence of<br />
this agreement, a pension provision of SEK 4,410,000 was made<br />
during <strong>2001</strong>.<br />
The employment agreement with the President will end automatically<br />
twelve months after Volkswagen AG has reduced its<br />
holding in <strong>Scania</strong> AB – direct or indirect – so that it is below 5 percent.<br />
In such a case, the above-stated benefits shall be provided.<br />
The other members of the Executive Board, if terminated by the<br />
company, are entitled to severance pay equivalent to a maximum<br />
of two years’ salary, in addition to their salary during the six-month<br />
notice period. If they obtain new employment within 18 months,<br />
counting from their termination date, their severance pay ceases.<br />
In case of a substantial change in the ownership structure of<br />
<strong>Scania</strong>, the members of the Executive Board are entitled to resign<br />
of their own volition with severance pay amounting to two years’<br />
salary.<br />
Fees and other compensation to external auditors <strong>report</strong>ed as<br />
expenses during the year are shown in the following table:<br />
<strong>2001</strong> 2000<br />
Auditing Other Auditing Other<br />
assignments assignments assignments assignments<br />
KPMG 18 5 11 3<br />
Ernst & Young 5 3 3 1<br />
Other auditors 11 7 9 4<br />
Total 34 15 23 8<br />
Note 25 Net assets outside Sweden<br />
Currency <strong>2001</strong> 2000 1999<br />
Europe<br />
EUR 3,523 5,383 4,236<br />
GBP 650 719 54<br />
Other European currencies 1,027 1,130 1,006<br />
Latin America<br />
USD –701 477 1,262<br />
Real, Peso and other local currencies 3,512 3,097 2,600<br />
Other countries<br />
USD 87 111 72<br />
Other currencies 690 559 344<br />
Total 8,788 11,476 9,574<br />
Net assets in Real, Peso and other currencies in Latin America<br />
included SEK 3,586 m. in fixed assets.<br />
Note 26 Currency exposure in operating<br />
income, by region<br />
The table shows the net amount of the <strong>Scania</strong> Group’s operating<br />
revenues and operating expenses exposed to foreign currencies,<br />
by region/country.<br />
<strong>2001</strong> 2000 1999<br />
Europe<br />
EMU countries (local currencies) 5,132 6,856 7,218<br />
Great Britain (local currency) 2,730 3,290 3,049<br />
Denmark/Norway (local currencies) 1,341 1,014 1,325<br />
Switzerland (local currencies) 717 770 492<br />
Central and eastern Europe<br />
(local currencies, EUR) 2,081 1,552 1,190<br />
Total, Europe 12,001 13,482 13,274<br />
Asia/Oceania (USD, AUD, EUR) 1,945 1,871 883<br />
Africa (USD, ZAR, EUR) 578 517 555<br />
Latin America (USD) -394 248 15<br />
Total 14,130 16,118 14,727<br />
Not 27 Effect of exchange rate differences<br />
on net income<br />
The amounts that affected net income for <strong>2001</strong> were exchange<br />
rate differences minus exchange rate losses on the difference<br />
between the invoice exchange rate and the exchange rate on the<br />
payment date for receivables and liabilities, plus exchange rate differences<br />
that arose from applying the monetary vs non-monetary<br />
translation method. Net income for <strong>2001</strong> was affected by exchange<br />
rate differences as presented in the following table:<br />
Sales 243<br />
Costs of goods sold –133<br />
Selling expenses 53<br />
Operating income 163<br />
Financial income and expenses –76<br />
Taxes –83<br />
Effect on net income 4<br />
Apart from the above exchange rate differences, compared to<br />
2000, the total effect on operating income of changes in exchange<br />
rates including hedging was estimated at about SEK 700 m. in<br />
European operations. For Latin American operations, direct and<br />
indirect effects of changes in exchange rates adversely affected<br />
operating income by SEK 400 m.<br />
For information on accumulated exchange rate differences that are<br />
charged or credited directly to shareholders’ equity, see Note 14.<br />
65
Notes to the Parent Company financial statements<br />
All amounts are stated in millions of Swedish kronor (SEK m.) unless otherwise indicated.<br />
Note 1 Financial income and expenses<br />
<strong>2001</strong> 2000 1999<br />
Interest income<br />
From subsidiaries 107 54 6<br />
Sub-total 107 54 6<br />
Interest expenses<br />
To subsidiaries – –2 –17<br />
Interest portion of forward exchange<br />
contracts used for hedging net assets –2 –10 –8<br />
Sub-total –2 –12 –25<br />
Exchange rate differences on forward exchange contracts<br />
for hedging net assets of<br />
foreign subsidaries –54 –55 –23<br />
Total financial income and expenses 51 –13 –42<br />
Dividends, Group contributions etc<br />
From Group companies 650 3,184 3,569<br />
From other companies – – 50<br />
Sub-total 650 3,184 3,619<br />
Total 701 3,171 3,577<br />
Note 3 Shareholders’ equity<br />
Unrestr.<br />
Share Statutory shareholders’<br />
capital reserve equity Total<br />
Balance on 31 Dec 1999 2,000 1,120 8,024 11,144<br />
Dividend to shareholders –1,400 –1,400<br />
Net income for 2000 1,826 1, 826<br />
Balance on 31 Dec 2000 2,000 1,120 8,450 11,570<br />
Dividend to shareholders –1,400 –1,400<br />
Net income for <strong>2001</strong> 703 703<br />
Balance on 31 Dec <strong>2001</strong> 2,000 1,120 7,753 10,873<br />
Note 2 Shares in Group companies<br />
Book value Book value Book value<br />
Subsidiary/corporate ID number/country of registration Ownership, % <strong>2001</strong> 2000 1999<br />
<strong>Scania</strong> CV AB, 556084-0976, Sweden 100.0 8,401 8,401 8,401<br />
<strong>Scania</strong> Latin America Ltda, 635,010,727,112, Brazil 100.0 2,257 2,257 2,257<br />
<strong>Scania</strong> Argentina S.A, 30-51742430-3, Argentina 73.6 1 298 298 298<br />
<strong>Scania</strong> del Peru S.A, 101, 36300, Peru 54.7 1 15 15 15<br />
Total 2 10,971 10,971 10,971<br />
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.<br />
<strong>Scania</strong> CV AB, in turn, directly or indirectly owns a number of sales<br />
companies, of which the largest are located in Australia, Austria,<br />
Belgium, Denmark, France, Germany, Great Britain, Italy, the<br />
Netherlands, Norway, Spain and Sweden. It also owns production<br />
facilities in Denmark, France, the Netherlands and Poland.<br />
Note 4 Untaxed reserves<br />
<strong>2001</strong> 2000 1999<br />
Tax allocation reserve 2,836 3 ,111 2,477<br />
Total 2,836 3,111 2,477<br />
SEK 794 m. (871 and 693, respectively) of ‘‘Untaxed reserves”<br />
consists of deferred taxes. Deferred taxes are not included in the<br />
Parent Company balance sheet, but are included in the consolidated<br />
balance sheet.<br />
Note 5 Contingent liabilities<br />
<strong>2001</strong> 2000 1999<br />
FPG/PRI pension guarantees<br />
on behalf of Group companies 1,456 1,377 1,298<br />
FPG/PRI pension guarantees<br />
on behalf of associated Group<br />
companies 159 148 138<br />
Loan guarantees on behalf of<br />
Group companies 1 25,257 17,951 16,703<br />
Total 26,872 19,476 18,139<br />
1 Most of the item is related to loan guarantees on behalf of borrowings<br />
by <strong>Scania</strong> CV AB.<br />
A complete list of associated companies and other companies<br />
was included in the <strong>annual</strong> <strong>report</strong> filed with the Swedish Patent<br />
and Registration Office and may be obtained from <strong>Scania</strong>’s<br />
Head Office in Södertälje, Group Financial Reporting.<br />
Not 6 Information regarding compensation<br />
to executive officers and auditors<br />
The President of <strong>Scania</strong> AB and the other members of the<br />
executive management hold identical positions in <strong>Scania</strong><br />
CV AB. Wages, salaries and other remuneration are paid by<br />
<strong>Scania</strong> CV AB. The reader is therefore referred to Notes 23<br />
and 24 to the consolidated financial statements.<br />
Compensation of SEK 11,000 was paid to outside auditors<br />
in <strong>2001</strong> with respect to the Parent Company.<br />
66
Financial information in accordance with U.S. generally<br />
accepted accounting principles (U.S. GAAP)<br />
The <strong>Scania</strong> Group’s consolidated accounts have been<br />
prepared in compliance with Swedish accounting practices,<br />
which differ in certain respects from U.S. GAAP.<br />
The differences that have a material effect on the net<br />
income and shareholders’ equity of the <strong>Scania</strong> Group are<br />
described below. The Group <strong>annual</strong>ly submits Form 20F<br />
to the Securities and Exchange Commission (SEC).<br />
(a) Goodwill<br />
In June 1991, Saab-<strong>Scania</strong> AB became a wholly owned<br />
subsidiary of Investor AB through an acquisition of all outstanding<br />
shares in the market. In January 1994, the net<br />
assets of <strong>Scania</strong>’s operations were transferred to a separate<br />
company.<br />
According to U.S. GAAP, push-down accounting is<br />
applied in such instances, which means that a goodwill<br />
value plus the tax effects of pre-1995 equity hedges is<br />
assigned to the <strong>Scania</strong> operations. Goodwill is amortised<br />
over 40 years.<br />
(b) Pension costs<br />
The pension commitments <strong>report</strong>ed in the consolidated<br />
financial statements have been based on actuarial calculations<br />
in accordance with Swedish accounting principles.<br />
The principles of U.S. GAAP are more detailed and<br />
prescribe, among other things, the use of the final salary<br />
method known as the ‘‘projected unit credit method”.<br />
There are also differences concerning actuarial assumptions,<br />
the treatment of actuarial gains/losses and the<br />
<strong>report</strong>ing of changes in assumptions.<br />
Refunds of surplus premiums from the Swedish<br />
retirement insurance company Alecta (formerly SPP) were<br />
allocated to the company during 2000. According to<br />
Swedish accounting principles, a still unused portion of<br />
the surplus was included in revenue and <strong>report</strong>ed as a<br />
receivable in 2000. According to U.S. GAAP, a revenue<br />
item and an asset may not be <strong>report</strong>ed until the period<br />
the allocated amount can be utilised. During <strong>2001</strong> a portion<br />
of the remaining surplus was utilised, at which time<br />
the amount was <strong>report</strong>ed as revenue in conformity with<br />
the rules in U.S. GAAP.<br />
(c) Financial instruments and hedging<br />
From 1 January <strong>2001</strong> onward, the company has applied<br />
SFAS 133 ‘‘Accounting for Derivative Instruments and<br />
Hedging Activities” and SFAS 138 ‘‘Accounting for<br />
Certain Derivative Instruments and Certain Hedging<br />
Transactions, an Amendment to SFAS 133” in its U.S.<br />
GAAP <strong>report</strong>ing.<br />
According to U.S. GAAP, the <strong>report</strong>ing of gains/<br />
losses pertaining to forward contracts may be delayed<br />
only if the contract is classified as, and fulfils the criteria for,<br />
an effective hedge. If the contracted amount exceeds the<br />
transaction that the hedge pertains to or is not classified<br />
as an effective hedge, the contract is <strong>report</strong>ed at fairmarket<br />
value and unrealised gains/<br />
losses are <strong>report</strong>ed as income.<br />
Derivative instruments, including ‘‘embedded derivatives”,<br />
shall be <strong>report</strong>ed in the balance sheet at their fair<br />
value as assets/liabilities. A company must classify, document<br />
and assess whether the effectiveness of a hedge<br />
justifies <strong>report</strong>ing it according to the principles of hedge<br />
accounting. The way that changes in the fair value of a<br />
derivative are to be <strong>report</strong>ed depends on the purpose of<br />
the derivative and its classification.<br />
Gains/losses pertaining to derivatives intended to<br />
hedge the actual value of assets and liabilities, ‘‘fair-value<br />
hedges”, are <strong>report</strong>ed under income. If a derivative that is<br />
used to hedge future cash flows is classified as effective,<br />
changes in fair value are <strong>report</strong>ed as part of shareholders’<br />
equity. If the derivative can no longer be classified as<br />
effective, the changes are <strong>report</strong>ed directly under income.<br />
For derivatives that are used to hedge net investments<br />
abroad and that are classified as effective, gains/<br />
losses are <strong>report</strong>ed as part of shareholders’ equity.<br />
Gains/losses from other derivatives are <strong>report</strong>ed under<br />
income.<br />
Latin American operations are an integral part of<br />
<strong>Scania</strong>, and translation of their financial statements to<br />
Swedish kronor occurs according to the monetary/nonmonetary<br />
method of accounting. According to U.S.<br />
GAAP, translation of Latin American operations must<br />
occur according to the current method.<br />
(d) Capitalisation of expenses<br />
In accordance with Swedish accounting principles, the<br />
company has capitalised pre-operating expenses pertaining<br />
to a production facility. According to U.S. GAAP,<br />
such expenses are charged to income in the period they<br />
actually arise.<br />
(e) Reporting of divestments<br />
During 2000, <strong>Scania</strong> <strong>report</strong>ed the divestment of properties.<br />
According to U.S. GAAP, divestments are not to be<br />
<strong>report</strong>ed until full proceeds have been received and the<br />
transactions have thereby been completed in their<br />
entirety.<br />
67
(f) Change in tax rate<br />
Swedish accounting principles differ from U.S. GAAP<br />
with regard to which country’s tax rate shall be used<br />
when calculating such items as internal profit on inventory.<br />
Sweden uses the tax rate of the purchasing country<br />
while U.S. GAAP <strong>report</strong>s the tax incurred by the selling<br />
company.<br />
(g) Personnel cutback expenses<br />
During <strong>2001</strong>, <strong>Scania</strong> made provisions for personnel<br />
cutback expenses according to Swedish accounting<br />
principles. In U.S. GAAP, the information requirements<br />
that must be met to allow such provisions to be made<br />
are much stricter than according to Swedish accounting<br />
practices. <strong>Scania</strong> did not entirely meet these requirements,<br />
with respect to terms of compensation, and a difference<br />
compared to U.S. GAAP thus arose.<br />
Supplementary information<br />
In June <strong>2001</strong> the Financial Accounting Standards Board<br />
(FASB) issued SFAS 141, ‘‘Business Combinations”, and<br />
SFAS 141, ‘‘Goodwill and Other Intangible Assets”. SFAS<br />
141 prescribes the use of the acquisition accounting<br />
method in cases of acquisitions and mergers. It also<br />
specifies the conditions for allowing acquired intangible<br />
fixed assets to be <strong>report</strong>ed as a separate item. As provided<br />
by SFAS 142, goodwill and intangible fixed assets<br />
with indefinite useful lives will no longer be amortised, but<br />
instead will be tested at least <strong>annual</strong>ly and amortised in<br />
case of impairment.<br />
The <strong>Scania</strong> Group introduced SFAS 141 on 1 July<br />
<strong>2001</strong> in its U.S. GAAP <strong>report</strong>ing. SFAS 142 will be<br />
applied beginning on 1 January 2002 when it enters into<br />
force. This means that goodwill and intangible assets with<br />
indefinite useful lives acquired after 30 June <strong>2001</strong> will not<br />
be amortised. Amortisation has been carried out on<br />
goodwill and intangible assets acquired before 1 July<br />
<strong>2001</strong>.<br />
SFAS 143, ‘‘Accounting for Asset Retirement Obligations”,<br />
was also issued in June <strong>2001</strong>. According to SFAS<br />
143, the company must <strong>report</strong> the fair value of a liability<br />
that arises in connection with the retirement of a tangible<br />
asset during the period when a legally binding obligation<br />
occurs. This applies regardless of whether the related liability<br />
is incurred due to acquisition, construction, development<br />
and/or normal operation. When the liability is<br />
incurred, the corresponding asset is also recognised and<br />
depreciated over the useful life of the fixed asset. SFAS<br />
enters into force on 1 January 2003.<br />
In August <strong>2001</strong>, SFAS 144, ‘‘Accounting for the<br />
Impairment of Disposal of Long-Lived Assets”, was<br />
issued. SFAS 144 addresses financial accounting and<br />
<strong>report</strong>ing for the impairment or disposal of long-lived<br />
(fixed) assets. This statement requires the value of longlived<br />
assets be tested whenever events indicate that the<br />
carrying amount (book value) of an asset is not recoverable.<br />
Companies must separately <strong>report</strong> operations that<br />
have been disposed of. This also applies to a portion of a<br />
unit that has either been disposed of through sale, discontinuation<br />
or spin-off to owners, or that is being held<br />
for sale. SFAS 144 enters into force on 1 January 2002.<br />
<strong>Scania</strong> is working to analyse the effects of the introduction<br />
of these new accounting principles.<br />
The table summarises the changes in <strong>Scania</strong>’s net<br />
income and shareholders’ equity that would arise from<br />
the application of U.S. GAAP:<br />
Net income <strong>2001</strong> 2000 1999<br />
Net income according<br />
to Swedish GAAP 1,048 3 080 3 146<br />
Goodwill (a) –12 –12 –12<br />
Pension costs (b) 34 –130 –43<br />
Financial instruments and hedging (c) 3 47 175<br />
Capitalisation of expenses (d) – – 10<br />
Reporting of divestments (e) 92 –92 –<br />
Change in tax rates (f) –100 – –<br />
Personel cutback expenses (g) 65 – –<br />
Tax effect of U.S. GAAP<br />
adjustments 8 93 –2<br />
Change in net income 90 –94 128<br />
Net income according<br />
to U.S. GAAP 1,138 2,986 3,274<br />
Earnings per share according<br />
to U.S. GAAP 5.69 14.93 16.37<br />
Shareholders’ equity <strong>2001</strong> 2000 1999<br />
Shareholders’ equity according<br />
to Swedish GAAP 15,995 15,698 13,548<br />
Reporting of goodwill etc (a) 300 312 324<br />
Pension costs (b) 68 91 200<br />
Financial instruments<br />
and hedging (c) –1,768 –905 –769<br />
Capitalisation of expenses (d) – – –<br />
Reporting of divestments (e) – –92 –<br />
Change in tax rates (f) –100 – –<br />
Personel cutback expenses (g) 65 – –<br />
Tax effect of U.S. GAAP<br />
adjustments 45 20 –52<br />
Change in shareholders’ equity –1,390 –574 –297<br />
Shareholders’ equity according<br />
to U.S. GAAP 14,605 15,124 13,251<br />
68
Proposed<br />
distribution of earnings<br />
Auditors’ <strong>report</strong><br />
The <strong>Scania</strong> Group’s unrestricted shareholders’ equity according<br />
to the consolidated balance sheet amounts to SEK 8,330 m.,<br />
of which net income for the year is SEK 1,048 m. The Board of<br />
Directors and the President propose that the following amounts<br />
at the disposal of the Annual Meeting:<br />
SEK m.<br />
Retained earnings 7,050<br />
Net income for the year 703<br />
Total 7,753<br />
be distributed as follows:<br />
To the shareholders, a dividend of SEK 3.50 per share 700<br />
To be carried forward 7,053<br />
Total 7,753<br />
After implementing the proposed distribution of earnings, the<br />
shareholders’ equity of the Parent Company is as follows:<br />
SEK m.<br />
Share capital 2,000<br />
Statutory reserve 1,120<br />
Retained earnings 7,053<br />
Total 10,173<br />
Södertälje, 11 March 2002<br />
Dr. Ferdinand Piëch<br />
Chairman<br />
Peggy Bruzelius Clas Åke Hedström Rolf Stomberg<br />
Lothar Sander Kjell Wallin Marcus Wallenberg<br />
Detlef Wittig Cees J.A. van Lede Jan Westberg<br />
Leif Östling<br />
President and CEO<br />
Our auditors’ <strong>report</strong> was submitted on 14 March 2002.<br />
Caj Nackstad<br />
Gunnar Widhagen<br />
Authorised Public Accountant Authorised Public Accountant<br />
To the Annual General Meeting of the shareholders of<br />
<strong>Scania</strong> AB (publ). Corporate ID number: 556184-8564.<br />
We have audited the <strong>annual</strong> accounts, the consolidated<br />
accounts, the accounting records and the<br />
administration of the Board of Directors and the<br />
President of <strong>Scania</strong> AB (publ.) for the financial year<br />
<strong>2001</strong>. These accounts and the administration of the<br />
company are the responsibility of the Board of<br />
Directors and the President. Our responsibility is to<br />
express an opinion on the <strong>annual</strong> accounts, the<br />
consolidated accounts and the administration based<br />
on our audit.<br />
We conducted our audit in accordance with<br />
generally accepted auditing standards in Sweden.<br />
Those standards require that we plan and perform the<br />
audit to obtain reasonable assurance that the <strong>annual</strong><br />
accounts and the consolidated accounts are free of<br />
material misstatement. An audit includes examining,<br />
on a test basis, evidence supporting the amounts<br />
and disclosures in the accounts. An audit also includes<br />
assessing the accounting principles used and their<br />
application by the Board of Directors and the President,<br />
as well as evaluating the overall presentation of information<br />
in the <strong>annual</strong> accounts and the consolidated<br />
accounts. As a basis for our opinion concerning<br />
discharge from liability, we examined significant<br />
decisions, actions taken and circumstances of the<br />
company in order to be able to determine the liability,<br />
if any, to the company of any Board member or the<br />
President. We also examined whether any Board<br />
member or the President has, in any other way, acted<br />
in contravention of the Companies Act, the Annual<br />
Accounts Act or the Articles of Association. We believe<br />
that our audit provides a reasonable basis for our<br />
opinion set out below.<br />
The <strong>annual</strong> accounts and the consolidated<br />
accounts have been prepared in accordance with the<br />
Annual Accounts Act and, thereby, give a true and<br />
fair view of the company’s and the group’s financial<br />
position and results of operations in accordance with<br />
generally accepted accounting principles in Sweden.<br />
We recommend to the Annual General Meeting of<br />
shareholders that the income statements and balance<br />
sheets of the parent company and the group be<br />
adopted, that the profit for the parent company be<br />
dealt with in accordance with the proposal in the<br />
Report of the Directors and that the members of the<br />
Board of Directors and the President be discharged<br />
from liability for the financial year.<br />
Södertälje, 14 March 2002<br />
Caj Nackstad<br />
Authorised Public Accountant<br />
KPMG<br />
Gunnar Widhagen<br />
Authorised Public Accountant<br />
Ernst & Young AB<br />
69
Sales and income per quarter<br />
January – March April – June July – September October – December<br />
<strong>2001</strong> 2000 1999 1998 <strong>2001</strong> 2000 1999 1998 <strong>2001</strong> 2000 1999 1998 <strong>2001</strong> 2000 1999 1998<br />
Sales, units<br />
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<br />
Buses 834 952 897 990 1,261 1,084 920 1,160 1,178 869 957 958 1,399 1,269 989 1,009<br />
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<br />
Sales, SEK m.<br />
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<br />
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<br />
Less intra-Group sales –279 –305 –183 –498 –276 –417 –249 –431 –275 –436 –292 –404 –259 –303 –318 –215<br />
Total <strong>Scania</strong> 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<br />
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<br />
<strong>Scania</strong> 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<br />
Operating income, SEK m.<br />
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<br />
Latin American operations –121 –122 –96 –216 –144 –61 –158 –55 –211 35 –68 –96 –425 157 –6 –295<br />
Customer finance operations 70 38 30 23 72 42 39 15 81 46 32 25 55 53 39 28<br />
Total <strong>Scania</strong> products 943 1,049 1,178 568 597 984 1,192 938 384 872 1,086 789 432 1,904 1,336 1,047<br />
Car operations 9 56 62 61 53 67 71 72 18 29 53 62 31 123 67 55<br />
<strong>Scania</strong> 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<br />
Income after financial<br />
items, SEK m. 819 955 1,110 552 407 891 1,130 937 298 742 984 753 17 1,866 1,276 972<br />
Net income SEK m. 573 661 770 390 265 616 784 664 199 514 709 526 11 1,289 883 670<br />
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<br />
Operating margin, %<br />
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<br />
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<br />
<strong>Scania</strong> 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<br />
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<br />
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<br />
70
Key financial ratios 1 and definitions<br />
<strong>2001</strong> 2000 1999 1998<br />
Earnings per share, SEK 5.24 15.40 15.73 11.25<br />
Earnings per share according to U.S. GAAP, SEK 5.69 14.93 16.37 11.21<br />
Return on shareholders’ equity, % 6.5 21.6 25.1 20.7<br />
Profit margin, % 4.7 10.5 12.0 8.7<br />
Capital turnover rate, times 1.80 1.88 1.77 1.99<br />
Return on capital employed, % 8.4 19.7 21.2 17.3<br />
Debt/equity ratio 0.49 0.50 0.61 0.55<br />
Interest coverage, times 2.2 5.0 5.9 6.1<br />
Equity/assets ratio, % 23.4 25.8 25.3 25.8<br />
1 Unless otherwise indicated, calculations are based on an average for five measurement points (quarters).<br />
Earnings per share<br />
Net income by the number of shares.<br />
Return on shareholders’ equity<br />
Net income as a percentage of shareholders’ equity.<br />
Profit margin<br />
Operating income excluding Customer finance operations<br />
plus financial income as a percentage of sales.<br />
Capital turnover<br />
Sales divided by capital employed (total assets less<br />
non-interest-bearing liabilities), with Customer finance<br />
operations <strong>report</strong>ed according to the equity accounting<br />
method.<br />
Return on capital employed<br />
Operating income excluding Customer finance operations<br />
plus financial income as a percentage of capital<br />
employed, with customer finance operations <strong>report</strong>ed<br />
according to the equity accounting method.<br />
Net debt/equity ratio<br />
Short- and long-term borrowings (excluding pension liabilities<br />
and net indebtness in Customer finance operations)<br />
less liquid assets, divided by shareholders’ equity.<br />
Interest coverage<br />
Operating income plus financial income divided by<br />
financial expenses.<br />
Equity/asset ratio<br />
Shareholders’ equity as a percentage of total assets,<br />
including Customer finance operations, on each<br />
respective balance sheet date.<br />
71
Multi-year statistical review<br />
SEK m. unless otherwise indicated <strong>2001</strong> 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990<br />
Sales by market area<br />
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<br />
Central and eastern Europe 2,624 1,826 1,330 1,814 1,398 827 732 266 195 289 133 114<br />
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<br />
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<br />
Asia 2,898 2,390 1,118 1,018 1,932 1,740 1,904 1,504 1,171 1 ,084 2,286 863<br />
Other markets 2,407 2,107 1,835 1,924 1,871 1,578 1,623 1,329 1,062 715 787 936<br />
Revenue deferral 1 –1,884 –2,425 –3,066 –2,166 –1,783 –1,160 –568<br />
Total, <strong>Scania</strong> 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<br />
Sales by area of operations<br />
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<br />
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<br />
Less intra-Group sales –1,089 –1,461 –1,042 –1,548 –947 –456 –764 –562 –303 –170 –202 –163<br />
Total, <strong>Scania</strong> 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<br />
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<br />
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<br />
Operating income<br />
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<br />
Latin American operations –901 9 –328 –662 407 511 413 915 483 242 136 441<br />
Customer finance operations 278 179 140 91 73 55 98 5 –91 –38 –23 –<br />
Total, <strong>Scania</strong> products 2,356 4,809 4,792 3,342 2,789 2,842 5,109 3,736 880 1,273 1,565 2,513<br />
Car operations 111 275 253 250 258 215 243 173 121 33 86 17<br />
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<br />
Operating margin, %<br />
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<br />
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<br />
Total, <strong>Scania</strong> 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<br />
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<br />
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<br />
Gross capital expenditure for property, plant and equipment, excluding lease assets and renting<br />
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<br />
Latin American operations 208 236 354 444 974 671 455 298 276 182 107 154<br />
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<br />
Research and development expenses<br />
Research and development 1,955 1,621 1,267 1,168 1,248 1,084 923 805 783 738 761 619<br />
Inventory turnover rate<br />
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<br />
1 Refers to the difference between sales recognised as revenues and sales value based on delivery. 2 Calculated as sales divided by average inventory.<br />
72
<strong>2001</strong> 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990<br />
Vehicles produced, units<br />
European operations<br />
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<br />
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<br />
Latin American operations<br />
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<br />
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<br />
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<br />
Trucks sold by market area, units<br />
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<br />
Central and eastern Europe 2,579 2,287 1,551 2,237 1,833 1,030 951 312 248 507 260 254<br />
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<br />
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<br />
Other markets 1,489 1,340 1,260 1,599 1,058 1,375 1,627 1,178 851 611 587 991<br />
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<br />
Buses and coaches sold by market area, units<br />
Western Europe 1,701 1,618 1,935 1,731 1,595 1,655 1,642 983 835 879 1,067 1,199<br />
Central and eastern Europe 127 84 67 106 95 83 45 40 35 16 2 2<br />
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<br />
Asia 666 278 160 78 308 309 304 140 133 249 144 224<br />
Other markets 583 351 364 505 757 275 301 237 215 355 276 233<br />
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<br />
Total market for heavy trucks and buses, units<br />
Western Europe<br />
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<br />
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<br />
Brazil<br />
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<br />
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<br />
Number of employees 3<br />
European operations<br />
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<br />
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<br />
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<br />
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<br />
Customer finance operations 239 194 166 144 107 75 90 72 60 65 52 34<br />
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<br />
3 Including employees with time-limited contracts.<br />
73
Board of Directors<br />
Leif Östling<br />
Dr. Ferdinand Piëch<br />
Detlef Wittig<br />
Lothar Sander<br />
Rolf Stomberg<br />
Cees J. A. van Lede<br />
Marcus Wallenberg<br />
Dr. Ferdinand Piëch<br />
Born 1937. Chairman since 2000.<br />
Chairman of the Board of Management<br />
of Volkswagen AG.<br />
Other directorships: Münchener<br />
Rückversicherungsgesellschaft,<br />
Dr. Ing. h.c. F. Porsche AG, Porsche<br />
Holding GesmbH, Porsche GesmbH, Salzburg,<br />
as well as a number of directorships in<br />
subsidiaries of the Volkswagen Group.<br />
Shares in <strong>Scania</strong>: 0<br />
Leif Östling<br />
Born 1945. Member since 1994.<br />
President and CEO of <strong>Scania</strong> AB.<br />
Other directorships: BT Industries AB,<br />
Eldon Thule, ADR Haanpää.<br />
Shares in <strong>Scania</strong>: 50,000<br />
Detlef Wittig<br />
Born 1942. Member since 2000.<br />
Member of the Board of Management<br />
Volkswagen Brand.<br />
Other directorships: Svenska Volkswagen AB,<br />
Autogerma S.p.A, Region Asien-Pazifik,<br />
Germany and North American Region, USA,<br />
as well as a number of other directorships in<br />
subsidiaries of the Volkswagen Group.<br />
Shares in <strong>Scania</strong>: 0<br />
Lothar Sander<br />
Born 1950. Member since 2000.<br />
Member of the Board of Management<br />
Volkswagen Brand.<br />
Other directorships: Svenska Volkswagen AB,<br />
Flughafen Braunschweig GmbH, TAS Tvornica<br />
Automobilia Sarajevo GmbH, as well as a number<br />
of other directorships in subsidiaries of the<br />
Volkswagen Group.<br />
Shares in <strong>Scania</strong>: 0<br />
Rolf Stomberg<br />
Born 1940. Member since 1998.<br />
Chairman of Management Consulting Group PLC.<br />
Other directorships: Reed Elsevier PLC, Smith &<br />
Nephew PLC, Cordiant Communications PLC,<br />
TPG Group, Stinnes AG, Aral AG.<br />
Shares in <strong>Scania</strong>: 1,000<br />
Cees J.A. van Lede<br />
Born 1942. Member since 1999.<br />
Chairman of Akzo Nobel N.V.<br />
Other directorships: Dutch Central Bank,<br />
Sara Lee/DE, Heineken,<br />
International Council JP Morgan.<br />
Shares in <strong>Scania</strong>: 0<br />
Marcus Wallenberg<br />
Born 1956. Member since 1994.<br />
President and CEO of Investor AB,<br />
Vice Chairman of Telefon AB L M Ericsson,<br />
Vice Chairman of Saab AB.<br />
Other directorships: AstraZeneca AB,<br />
AstraZeneca UK, Stora Enzo Oy,<br />
Knut and Alice Wallenberg Foundation.<br />
Shares in <strong>Scania</strong>: 51,100<br />
74
Clas Åke Hedström Peggy Bruzelius Lars-Åke Eriksson<br />
Kjell Wallin<br />
Katrin Rosenqvist Jan Westberg<br />
Clas Åke Hedström<br />
Born 1939. Member since 1995.<br />
President and CEO of Sandvik AB.<br />
Other directorships: Association<br />
of Swedish Engineering Industries,<br />
AB SKF.<br />
Shares in <strong>Scania</strong>: 1,000<br />
Peggy Bruzelius<br />
Born 1949. Member since 1998.<br />
Chairman of Grand Hotel Holdings AB,<br />
Chairman of Lancelot Asset Management AB.<br />
Other directorships: Electrolux AB,<br />
Industry and Commerce Stock Exchange<br />
Committee, Securities Council,<br />
Axel Johnson AB, AB Ratos, Drott AB,<br />
Axfood AB, Syngenta AG.<br />
Shares in <strong>Scania</strong>: 2,000<br />
Lars-Åke Eriksson<br />
Born 1948. Deputy member since 2000.<br />
Employee Representative for the Metal<br />
Workers’ Union at <strong>Scania</strong>.<br />
Shares in <strong>Scania</strong>: 0<br />
Kjell Wallin<br />
Born 1943. Member since 1998.<br />
Employee Representative for the Metal<br />
Workers’ Union at <strong>Scania</strong>.<br />
Shares in <strong>Scania</strong>: 0<br />
Katrin Rosenqvist<br />
Born 1960. Deputy member since <strong>2001</strong>.<br />
Employee Representative for the Federation<br />
of Salaried Employees in Industry and Services<br />
at <strong>Scania</strong>.<br />
Shares in <strong>Scania</strong>: 166<br />
Jan Westberg<br />
Born 1944. Member since 1996.<br />
Employee Representative for the Federation<br />
of Salaried Employees in Industry and Services<br />
at <strong>Scania</strong>.<br />
Shares in <strong>Scania</strong>: 0<br />
Auditors<br />
Caj Nackstad<br />
Authorised Public Accountant,<br />
KPMG<br />
Gunnar Widhagen<br />
Authorised Public Accountant,<br />
Ernst & Young AB<br />
Deputy Auditors<br />
Thomas Thiel<br />
Authorised Public Accountant,<br />
KPMG<br />
Björn Fernström<br />
Authorised Public Accountant,<br />
Ernst & Young AB<br />
75
Group Management<br />
Executive Board<br />
Kaj Lindgren<br />
Leif Östling<br />
Gunnar Rustad Hasse Johansson Per Hallberg Arne Karlsson Jan Gurander<br />
Executive Board<br />
Leif Östling<br />
Born 1945.<br />
Joined <strong>Scania</strong> in 1972.<br />
President and CEO<br />
Shares in <strong>Scania</strong>: 50,000<br />
Reporting to Leif Östling:<br />
Industrial & Marine Engines<br />
Latin American Operations<br />
Kaj Lindgren<br />
Born 1945.<br />
Joined <strong>Scania</strong> in 1977,<br />
employed until 1984.<br />
Rejoined <strong>Scania</strong> in 1989.<br />
Group Vice President<br />
Corporate Development<br />
Shares in <strong>Scania</strong>: 0<br />
Reporting to Kaj Lindgren:<br />
Business Communications<br />
Corporate Human Resources<br />
General Counsel<br />
And certain corporate<br />
staff units<br />
Gunnar Rustad<br />
Born 1949.<br />
Joined <strong>Scania</strong> in 1997.<br />
Group Vice President<br />
Sales and Marketing<br />
Shares in <strong>Scania</strong>: 0<br />
Reporting to Gunnar Rustad:<br />
Sales and Marketing globally<br />
Trucks, Buses and Coaches<br />
Services<br />
And certain corporate<br />
staff units<br />
Hasse Johansson<br />
Born 1949.<br />
Joined <strong>Scania</strong> in <strong>2001</strong>.<br />
Group Vice President<br />
Research and Development<br />
Shares in <strong>Scania</strong>: 0<br />
Reporting to<br />
Hasse Johansson:<br />
Truck and Cab<br />
Development<br />
Powertrain Development<br />
And certain corporate<br />
staff units<br />
Per Hallberg<br />
Born 1952.<br />
Joined <strong>Scania</strong> in 1977.<br />
Group Vice President<br />
Production and<br />
Procurement<br />
Shares in <strong>Scania</strong>: 0<br />
Reporting to Per Hallberg:<br />
Chassis and Cabs<br />
Powertrain<br />
Purchasing<br />
And certain corporate<br />
staff units<br />
Arne Karlsson<br />
Born 1944.<br />
Joined <strong>Scania</strong> in 1978.<br />
Executive Vice President<br />
Commercial System<br />
Shares in <strong>Scania</strong>: 166<br />
Jan Gurander<br />
Born 1961.<br />
Joined <strong>Scania</strong> in 1995,<br />
employed until 1999.<br />
Rejoined <strong>Scania</strong> in <strong>2001</strong>.<br />
Group Vice President and CFO<br />
Shares in <strong>Scania</strong>: 0<br />
Reporting to Jan Gurander:<br />
Corporate Control<br />
Customer Finance<br />
Finance<br />
And certain corporate<br />
staff units<br />
76
Group Management<br />
Corporate Units, Corporate Sectors and Business Units<br />
Corporate Units<br />
Corporate Sectors<br />
Business Units<br />
Ulf Egestrand<br />
Born 1956.<br />
Joined <strong>Scania</strong> in 1998.<br />
Senior Vice President<br />
Finance<br />
Shares in <strong>Scania</strong>: 0<br />
Magnus Hahn<br />
Born 1955.<br />
Joined <strong>Scania</strong> in 1985.<br />
Senior Vice President<br />
Business Communications<br />
Shares in <strong>Scania</strong>: 0<br />
Peter Härnwall<br />
Born 1955.<br />
Joined <strong>Scania</strong> in 1983.<br />
Senior Vice President<br />
Corporate Control<br />
Shares in <strong>Scania</strong>: 166<br />
Hans Narfström<br />
Born 1951.<br />
Joined <strong>Scania</strong> in 1977.<br />
Senior Vice President<br />
Human Resources<br />
Shares in <strong>Scania</strong>: 0<br />
Carl Riben<br />
Born 1950.<br />
Joined <strong>Scania</strong> in 1986.<br />
Senior Vice President<br />
General Counsel<br />
Shares in <strong>Scania</strong>: 400<br />
Håkan Ericsson<br />
Born 1947.<br />
Joined <strong>Scania</strong> in 1975.<br />
Senior Vice President<br />
Services<br />
Shares in <strong>Scania</strong>: 166<br />
Thomas Karlsson<br />
Born 1953.<br />
Joined <strong>Scania</strong> in 1988.<br />
Senior Vice President<br />
Powertrain<br />
Shares in <strong>Scania</strong>: 185<br />
Lars Orehall<br />
Born 1947.<br />
Joined <strong>Scania</strong> in 1974.<br />
Senior Vice President<br />
Truck and Cab Development<br />
Shares in <strong>Scania</strong>: 2,000<br />
P O Svedlund<br />
Born 1955.<br />
Joined <strong>Scania</strong> in 1976.<br />
Senior Vice President and CIO<br />
Purchasing<br />
Shares in <strong>Scania</strong>: 166<br />
Christoffer Ljungner<br />
Born 1950.<br />
Joined <strong>Scania</strong> in 1976.<br />
Senior Vice President<br />
Sales and Marketing Overseas<br />
Shares in <strong>Scania</strong>: 100<br />
Lars Wrebo<br />
Born 1961.<br />
Joined <strong>Scania</strong> in 1986.<br />
Senior Vice President<br />
Chassis and Cabs<br />
Shares in <strong>Scania</strong>: 0<br />
Arne Carlsson<br />
Born 1943.<br />
Joined <strong>Scania</strong> in 1969,<br />
employed until 1987.<br />
Rejoined <strong>Scania</strong> in 1991.<br />
Acting Managing Director<br />
Latin American Operations<br />
Shares in <strong>Scania</strong>: 0<br />
Lennart Hjelte<br />
Born 1945.<br />
Joined <strong>Scania</strong> in 1966.<br />
Senior Vice President<br />
Industrial & Marine Engines<br />
Shares in <strong>Scania</strong>: 4,125<br />
Claes Jacobsson (not in picture)<br />
Born 1958.<br />
Joined <strong>Scania</strong> in 1999.<br />
Senior Vice President<br />
Customer Finance<br />
Shares in <strong>Scania</strong>: 0<br />
Ulf<br />
Egestrand<br />
Peter<br />
Härnwall<br />
Lars<br />
Wrebo<br />
Lennart<br />
Hjelte<br />
Håkan<br />
Ericsson<br />
Arne<br />
Carlsson<br />
Magnus<br />
Hahn<br />
Carl<br />
Riben<br />
Hans<br />
Narfström<br />
Christoffer<br />
Ljungner<br />
Lars<br />
Orehall<br />
P O<br />
Svedlund<br />
Thomas<br />
Karlsson<br />
77
Addresses<br />
<strong>Scania</strong> Head Office<br />
and Technical Centre<br />
<strong>Scania</strong> CV AB<br />
SE-151 87 SÖDERTÄLJE<br />
Sweden<br />
Tel: +46 8 553 810 00<br />
Fax: +46 8 553 810 37<br />
www.scania.com<br />
<strong>Scania</strong> Latin America Ltda<br />
Hans-Christer Holgersson<br />
Caixa Postal 188<br />
09810-902 SÃO BERNARDO DO<br />
CAMPO-SP<br />
Brazil<br />
Tel: +55 11 4344 9333<br />
Fax: +55 11 4351 2659<br />
Production units<br />
<strong>Scania</strong> Chassis Assembly<br />
Jan Hillerström<br />
SE-151 87 SÖDERTÄLJE<br />
Sweden<br />
Tel: +46 8 553 810 00<br />
Fax: +46 8 553 810 37<br />
<strong>Scania</strong> Transmission<br />
Robert Dubois<br />
SE-151 87 SÖDERTÄLJE<br />
Sweden<br />
Tel: +46 8 553 810 00<br />
Fax: +46 8 553 810 37<br />
<strong>Scania</strong> Engine Assembly<br />
Melker Jernberg<br />
SE-151 87 SÖDERTÄLJE<br />
Sweden<br />
Tel: +46 8 553 810 00<br />
Fax: +46 8 553 810 37<br />
<strong>Scania</strong> Engines<br />
Staffan Garås<br />
SE-151 87 SÖDERTÄLJE<br />
Sweden<br />
Tel: +46 8 553 810 00<br />
Fax: +46 8 553 810 37<br />
<strong>Scania</strong> Axles<br />
Stefan Palmgren<br />
Peter Björk (from 1 June 2002)<br />
Box 1906<br />
SE-791 19 FALUN<br />
Sweden<br />
Tel: +46 23 477 00<br />
Fax: +46 23 71 13 79<br />
<strong>Scania</strong> Cabs<br />
Anders Nielsen<br />
Stefan Palmgren<br />
(from 1 June 2002)<br />
Box 903<br />
SE-572 29 OSKARSHAMN<br />
Sweden<br />
Tel: +46 491 76 50 00<br />
Fax: +46 491 76 54 30<br />
<strong>Scania</strong> Transmission<br />
Anders Holmberg<br />
SE-280 63 SIBBHULT<br />
Sweden<br />
Tel: +46 44 495 00<br />
Fax: +46 44 481 08<br />
Ferruform AB<br />
Chassis Components<br />
Peter Norman<br />
Box 815<br />
SE-971 25 LULEÅ<br />
Sweden<br />
Tel: +46 920 766 00<br />
Fax: +46 920 896 10<br />
<strong>Scania</strong> Argentina S.A.<br />
Bengt Klingberg<br />
Casilla de Correo No. 3<br />
Correo Central<br />
4000 SAN MIGUEL DE TUCUMÁN<br />
Argentina<br />
Tel: +54 3 814 509 000<br />
Fax: +54 3 814 509 001<br />
<strong>Scania</strong> Latin America Ltda<br />
Sidney Basso<br />
Av. José Odorizzi, 151–Vila Euro<br />
09810-902 SÃO BERNARDO DO<br />
CAMPO-SP<br />
Brazil<br />
Tel: +55 11 4344 9333<br />
Fax: +55 11 4344 2659<br />
<strong>Scania</strong> Production Angers S.A.S.<br />
Martin Lundstedt<br />
B.P. 846<br />
FR-49008 ANGERS Cedex 01<br />
France<br />
Tel: +33 2 41 41 20 00<br />
Fax: +33 2 41 41 20 48<br />
<strong>Scania</strong> de México S.A. de C.V.<br />
Roger Johansson<br />
Prol Av Industrias 4640<br />
Esq Eje 134<br />
C P 78395 Zona Industrial<br />
SAN LUIS DE POTOSÍ<br />
Mexico<br />
Tel: +52 48 240 505<br />
Fax: +52 48 240 504<br />
<strong>Scania</strong> Nederland B.V.<br />
Stefan Palskog<br />
P.O. Box 618<br />
NL-8000 AP ZWOLLE<br />
The Netherlands<br />
Tel: +31 38 497 76 11<br />
Fax: +31 38 497 79 11<br />
<strong>Scania</strong> Kapena S.A.<br />
Lars-Erik Nerback<br />
ul Grunwaldzka 12<br />
PL-76-200 SflUPSK<br />
Poland<br />
Tel: +48 59 844 06 87<br />
Fax: +48 59 843 66 01<br />
Sales and service<br />
<strong>Scania</strong> Argentina S.A.<br />
Mats Gunnarsson<br />
Ruta Panamericana – Km 34<br />
(1615) Malvinas Argentinas<br />
BUENOS AIRES<br />
Argentina<br />
Tel: +54 3 327 451 000<br />
Fax: +54 3 327 451 075<br />
<strong>Scania</strong> Australia Pty Ltd<br />
Kaj Färm<br />
Private Bag No. 11<br />
Vic 3061, CAMPBELLFIELD<br />
Australia<br />
Tel: +61 392 173 300<br />
Fax: +61 393 053 898<br />
<strong>Scania</strong> Österreich Ges.m.b.H.<br />
Håkan Sundström<br />
Postfach 50<br />
AT-2345 BRUNN AM GEBIRGE<br />
Austria<br />
Tel: +43 223 639 020<br />
Fax: +43 223 639 0286<br />
<strong>Scania</strong> Belgium sa-nv<br />
Peter Janssens<br />
J.F. Kennedylaan 4<br />
BE-1831 DIEGEM<br />
Belgium<br />
Tel: +32 2 722 8411<br />
Fax: +32 2 722 8400<br />
<strong>Scania</strong> Latin America Ltda<br />
Flávio Mermejo<br />
Av. José Odorizzi, 151-Vila Euro<br />
09810-902 SÃO BERNARDO DO<br />
CAMPO-SP<br />
Brazil<br />
Tel: +55 11 4344 9333<br />
Fax: +55 11 4344 2659<br />
<strong>Scania</strong> Bulgaria Co Ltd<br />
Milcho Milchev<br />
Okolovrastno Shose<br />
German – Sreden Pat No. 1<br />
BG-1186 SOFIA<br />
Bulgaria<br />
Tel: +359 2 992 83 94<br />
Fax: +359 2 992 84 04<br />
<strong>Scania</strong> Chile S.A.<br />
Richard König<br />
Panamericana Norte, no 9850<br />
Quilicura, SANTIAGO<br />
Chile<br />
Tel: +56 2 394 04 00<br />
Fax: +56 2 738 60 60<br />
<strong>Scania</strong> Czech Republic s.r.o.<br />
Anders Grundströmer<br />
Chrástany 186<br />
CZ-252 19 Posta Rudná u Prahy<br />
PRAHA<br />
Czech Republic<br />
Tel: +420 2 510 951 11<br />
Fax: +420 2 579 512 23<br />
<strong>Scania</strong> Danmark A/S<br />
Jörgen Damkjaer<br />
Postboks 580<br />
DK-2730 HERLEV (Copenhagen)<br />
Denmark<br />
Tel: +45 4454 2200<br />
Fax: +45 4454 2209<br />
<strong>Scania</strong> Eesti AS<br />
Janno Karu<br />
Peterburi tee 72<br />
EE-11415 TALLINN<br />
Estonia<br />
Tel: +372 6 651 200<br />
Fax: +372 6 651 208<br />
Oy Scan-Auto Ab<br />
Raimo Lehtiö<br />
PB 59<br />
FI-00391 HELSINKI<br />
Finland<br />
Tel: +358 10 555 010<br />
Fax: +358 10 555 5317<br />
<strong>Scania</strong> France S.A.S.<br />
Marc Haezenberghe<br />
B.P. 106<br />
FR-49001 ANGERS Cedex 01<br />
France<br />
Tel: +33 2 414 133 33<br />
Fax: +33 2 413 476 25<br />
<strong>Scania</strong> Deutschland GmbH<br />
Johan P Schlyter<br />
Postfach 10 04 26<br />
DE-56034 KOBLENZ<br />
Germany<br />
Tel: +49 261 8970<br />
Fax: +49 261 897203<br />
<strong>Scania</strong> (Great Britain) Ltd.<br />
Dan Hoij<br />
Tongwell<br />
MILTON KEYNES MK15 8HB<br />
United Kingdom<br />
Tel: +44 1908 210 210<br />
Fax: +44 1908 215 040<br />
<strong>Scania</strong> Hungaria Kft.<br />
Tibor Császár<br />
Rozália park 1<br />
HU-2051 BIATORBÁGY<br />
Hungary<br />
Tel: +36 23 531 000<br />
Fax: +36 23 531 009<br />
Italscania s.p.a.<br />
Dieter Merz<br />
Giancarlo Codazzi<br />
(from 1 June 2002)<br />
Z.I. Spini di Gardolo, 125/E<br />
IT-38014 TRENTO<br />
Italy<br />
Tel: +39 046 199 6111<br />
Fax: +39 046 199 6198<br />
<strong>Scania</strong> Korea Ltd<br />
Staffan Sjögren<br />
18th Floor, Construction Building<br />
71-2, Nonhyun-dong,<br />
Kangnam-ku<br />
135-010 SEOUL<br />
South Korea<br />
Tel: +82 2 321 808 00<br />
Fax: +82 2 511 74 39<br />
SIA <strong>Scania</strong> Latvia<br />
Ervins Arents<br />
Tiraines iela 13<br />
LV-1058 RIGA<br />
Latvia<br />
Tel: +371 7 066 600<br />
Fax: +371 7 066 649<br />
UAB <strong>Scania</strong> Lietuva Vilnius<br />
Bo Hallberg<br />
Lentvario 14b<br />
LT-2028 VILNIUS<br />
Lithuania<br />
Tel: +370 2 685 505<br />
Fax: +370 2 685 504<br />
78
<strong>Scania</strong> Maroc S.A.<br />
Serge Habib<br />
97, Bd Abdelmoumen 7ème Etage<br />
20100 CASABLANCA<br />
Morocco<br />
Tel: +212 2 2262 924<br />
Fax: +212 2 2262 915<br />
<strong>Scania</strong> de México S.A. de C.V.<br />
Christopher Podgorski<br />
Delegación Azcapotzalco<br />
C.P. 02300 MEXICO-D.F.<br />
Mexico<br />
Tel: +52 555 078 03 00<br />
Fax: +52 555 87 05 33<br />
Beers Bedrijfsauto BV<br />
Jan ter Wee<br />
Postbus 24012<br />
NL-2490 AA DEN HAAG<br />
The Netherlands<br />
Tel: +31 704 182 418<br />
Fax: +31 704 182 510<br />
Norsk <strong>Scania</strong> AS<br />
Jaap Bergema<br />
Postbox 143, Skøyen<br />
NO-0212 OSLO 2<br />
Norway<br />
Tel: +47 220 645 00<br />
Fax: +47 220 645 99<br />
<strong>Scania</strong> del Perú S.A.<br />
Horácio Gramajo<br />
Av Republica de Panamá, no 4679<br />
Apartado 3190<br />
LIMA 34<br />
Peru<br />
Tel: +51 1 241 3016<br />
Fax: +51 1 241 6391<br />
<strong>Scania</strong> Polska S.A.<br />
Tommy Sjöö<br />
Aleja Katowicka 316<br />
PL-05-830 Stara Wies/NADARZYN<br />
Poland<br />
Tel: +48 22 356 01 00<br />
Fax: +48 22 356 01 01<br />
<strong>Scania</strong> Romania S.R.L.<br />
Leif Bohman<br />
Post Office 52<br />
Box No. 150, Sector 1,<br />
BUCHAREST<br />
Romania<br />
Tel: +40 1 232 5944<br />
Fax: +40 1 232 8257<br />
<strong>Scania</strong> Russia<br />
P G Nilsson<br />
43 km Minskoje shosse, Golitsyno<br />
143040 MOSCOW<br />
Russia<br />
Tel: +7 095 787 5000<br />
Fax: +7 095 787 5002<br />
<strong>Scania</strong><br />
East Adriatic Region d.o.o.<br />
Kjell Örtengren<br />
Cesta v Gorice 28<br />
SI-F1000 LJUBLJANA<br />
Slovenia<br />
Tel: +386 1 242 76 30<br />
Fax: +386 1 242 76 69<br />
<strong>Scania</strong> South Africa (Pty) Ltd<br />
Ulf Grevesmühl<br />
P O Box 587<br />
2110 MONDEOR<br />
South Africa<br />
Tel: +27 11 494 52 04<br />
Fax: +27 11 494 15 24<br />
<strong>Scania</strong> Hispania S.A.<br />
José Badía<br />
Apartado de correos 304<br />
ES-28850 TORREJÓN DE ARDOZ<br />
(MADRID)<br />
Spain<br />
Tel: +34 91 678 80 00<br />
Fax: +34 91 675 74 50<br />
<strong>Scania</strong> Sverige AB<br />
Martin Ståhlberg<br />
Verkstadsvägen 11<br />
SE-151 87 SÖDERTÄLJE<br />
Sweden<br />
Tel: +46 8 553 864 00<br />
Fax: +46 8 553 864 35<br />
<strong>Scania</strong> Truck AG<br />
Stein Ingvoldstad<br />
Dieter Merz (from 1 June 2002)<br />
Steinackerstrasse 55<br />
CH-8302 KLOTEN<br />
Switzerland<br />
Tel: +41 1 800 13 00<br />
Fax: +41 1 800 13 01<br />
<strong>Scania</strong> Tanzania Ltd.<br />
Henrik Orrling<br />
Nyerere Road<br />
P O Box 9324<br />
DAR ES SALAAM<br />
Tanzania<br />
Tel: +255 22 286 0290<br />
Fax: +255 22 286 5033<br />
<strong>Scania</strong> Siam Co. Ltd<br />
Jan Jarlhage<br />
23/21 Vibhavadi Rangsit Road<br />
Ladyao, Chatucnad<br />
10900 BANGKOK<br />
Thailand<br />
Tel: +66 2 515 9600<br />
Fax: +66 2 537 8261<br />
<strong>Scania</strong> Ukraine<br />
Berth Carreman<br />
Ring Road 22<br />
(2, Trublaini str)<br />
UA-03134 KIEV<br />
Ukraine<br />
Tel: +380 44 490 74 90<br />
Fax: +380 44 490 77 71<br />
<strong>Scania</strong> USA, Inc<br />
Claes Sundberg<br />
121 Interpark Blvd, suite 601<br />
78216 SAN ANTONIO, Texas<br />
USA<br />
Tel: +1 210 403 00 07<br />
Fax: +1 210 403 02 11<br />
Buses<br />
Omni i Katrineholm AB<br />
Hans Hansson<br />
Vingåkersvägen 71<br />
SE-641 81 KATRINEHOLM<br />
Sweden<br />
Tel: +46 150 585 00<br />
Fax: +46 150 532 30<br />
<strong>Scania</strong> Bus Europe sa-nv<br />
Fredrik Morsing<br />
Berkenlaan 1<br />
BE-1831 DIEGEM<br />
Belgium<br />
Tel: +32 2 704 4000<br />
Fax: +32 2 704 4010<br />
<strong>Scania</strong> Bus Nordic<br />
Leif Nyström<br />
Vingåkersvägen 71<br />
SE-641 81 KATRINEHOLM<br />
Sweden<br />
Tel: +46 150 585 00<br />
Fax: +46 150 532 30<br />
Finance companies<br />
<strong>Scania</strong> Finance Belgium nv<br />
Bert Peeters<br />
Minervastraat 8<br />
BE-1930 ZAVENTEM<br />
Belgium<br />
Tel: +32 2 714 2424<br />
Fax: +32 2 714 2457<br />
<strong>Scania</strong> Finance Czech Republic<br />
Zuzana Tomeckova<br />
Chrástany 186<br />
CZ-25219 posta Rudná u Prahy<br />
PRAHA<br />
Czech Republic<br />
Tel: +420 2 510 951 28<br />
Fax:+420 2 579 507 31<br />
<strong>Scania</strong> Finance France S.A.S.<br />
Pierre de Bantel<br />
B.P. 928<br />
FR-49009 ANGERS Cedex 01<br />
France<br />
Tel: +33 241 41 33 33<br />
Fax: +33 241 34 70 46<br />
<strong>Scania</strong> Finance<br />
Deutschland GmbH<br />
Koen Knoops<br />
Postfach 100426<br />
DE-56034 KOBLENZ<br />
Germany<br />
Tel: +49 261 897 303<br />
Fax: +49 261 897 313<br />
<strong>Scania</strong> Finance<br />
Great Britain Ltd<br />
Peter Taylor<br />
Tongwell<br />
MILTON KEYNES MK15 8HB<br />
United Kingdom<br />
Tel: +44 1 908 210 210<br />
Fax: +44 1 908 216 675<br />
<strong>Scania</strong> Finance Italy s.p.a.<br />
Sven Antonsson<br />
Via dei Giardini, 10<br />
IT-20121 MILANO<br />
Italy<br />
Tel: +39 02 659 2314<br />
Fax: +39 02 659 2316<br />
<strong>Scania</strong> Korea Finance Branch<br />
Sang-Won Lee<br />
18th Floor, Construction Building<br />
71-2, Nonhyun-dong,<br />
Kangnam-ku<br />
135-010 SEOUL<br />
South Korea<br />
Tel: +82 232 180 800<br />
Fax: +82 251 174 39<br />
Bezoma BV<br />
Gerard van Keulen<br />
Postbus 24012<br />
NL-2490 AA DEN HAAG<br />
The Netherlands<br />
Tel: +31 704 18 24 18<br />
Fax: +31 704 18 25 20<br />
<strong>Scania</strong> Finance Polska Sp.z.o.o.<br />
Janusz Laskowski<br />
Aleja Katowicka 316<br />
PL-05-830 Stara Wies/NADARZYN<br />
Poland<br />
Tel: +48 22 356 02 30<br />
Fax: +48 22 356 02 31<br />
<strong>Scania</strong> Finance Hispania<br />
Eddi Mues<br />
Avd. de Castilla no 2<br />
Parque Empresarial San Fernando<br />
Edifico Europa<br />
San Fernando Henares<br />
ES-288 30 MADRID<br />
Spain<br />
Tel +34 91 678 18 61<br />
Fax +34 91 678 18 63<br />
<strong>Scania</strong> Credit AB<br />
Per Spjut<br />
SE-151 87 SÖDERTÄLJE<br />
Sweden<br />
Tel: +46 8 553 836 60<br />
Fax: +46 8 553 837 24<br />
<strong>Scania</strong> Finans AB<br />
Leif Christensson<br />
SE-151 87 SÖDERTÄLJE<br />
Sweden<br />
Tel: +46 8 553 837 50<br />
Fax: +46 8 553 837 67<br />
Service<br />
DynaMate AB<br />
Sam Burman<br />
SE-151 87 SÖDERTÄLJE<br />
Sweden<br />
Tel: +46 8 553 830 00<br />
Fax: +46 8 553 816 84<br />
Support<br />
<strong>Scania</strong> Infotronics AB<br />
Peter Gillbrand<br />
Kronborgsgränd 11, 2 tr<br />
SE-164 46 KISTA<br />
Sweden<br />
Tel: +46 8 553 807 50<br />
Fax: +46 8 553 807 60<br />
<strong>Scania</strong> Parts Logistics AB<br />
Kjell Nilsson<br />
SE-151 87 SÖDERTÄLJE<br />
Sweden<br />
Tel: +46 8 553 835 00<br />
Fax: +46 8 553 861 90<br />
79
<strong>Scania</strong> AB (publ), SE-151 87 Södertälje, Sweden, Tel: +46-8-55 38 10 00, Fax: +46-8-55 38 10 37, www.scania.com<br />
1594747/13/KREAB/ Trosa Tryckeri, 2002