Scania annual report 2002

ANNUAL REPORT 2002

Annual General Meeting 

The Annual General Meeting of Shareholders (AGM) will be held at 

15:00 CET on Friday, 25 April 2003 at Konferenshuset, TelgeForum, 

Södertälje, Sweden. 

Participation 

Shareholders who wish to participate in the AGM must be recorded in 

the shareholder list maintained by Värdepapperscentralen VPC AB (the 

Swedish Central Securities Depository and Clearing Organisation) no 

later than Tuesday, 15 April 2003. They must also register with the 

company by post at Scania AB, SE-151 87 Södertälje, Sweden, or by 

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

17 April 2003. 

Nominee shares 

To be entitled to participate in the AGM, shareholders whose shares 

have been registered in the name of a nominee through the trust 

department of a bank or brokerage house must temporarily reregister 

their shares in their own name with VPC. Shareholders who wish to 

reregister their shares in this way must inform their nominees 

accordingly well before Tuesday, 15 April 2003. 

Dividend 

The Board of Directors proposes Wednesday, 30 April 2003 as the 

record date for the 2002 dividend. The last day for trading shares that 

include the dividend is Friday, 25 April 2003. Provided that the AGM 

approves this proposal, the dividend is expected to be sent on Monday, 

5 May 2003. 

Financial information from Scania 

Interim Report, January–March, on 23 April 2003 

Interim Report, January–June, on 23 July 2003 

Interim Report, January–September, on 27 October 2003 

The Annual Report is posted on the company’s web site, 

www.scania.com where Scania’s Interim Reports are also found. 

The material may also be ordered from: 

Scania AB, SE-151 87 Södertälje, Sweden. 

Phone: +46 8 5538 1000 

Fax: +46 8 5538 5559 

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

language original. Translation: Victor Kayfetz, Scan Edit. 

Unless otherwise stated, all comparisons in this Annual Report refer to 

the same period of the preceding year. 

The Annual Report contains forward-looking statements that reflect 

management’s current views with respect to certain future events and 

potential financial performance. Such forward-looking statements 

involve risks and uncertainties that could significantly alter potential 

results. The statements are based on certain assumptions, including 

assumptions related to general economic and financial conditions in the 

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

products. 

This report does not imply that the company has undertaken to 

revise these forward-looking statements, beyond what is required under 

the company’s registration contract with Stockholmsbörsen if and when 

circumstances arise that will lead to changes compared to the date 

when these statements were provided. 

B

Contents 

■ THE COMPANY 2 

Scania in brief 2 

Important events 4 

Statement of the President and CEO 6 

The work of the Board 9 

Vision, mission statement and strategy 10 

Identity and brand 11 

Scania’s role in society 12 

Employees 14 

■ CUSTOMERS AND PRODUCTS 16 

Customers 17 

Products 18 

Service-related products 20 

Customer financing 21 

■ R&D AND PRODUCTION 22 

Research and development 23 

Concept development 24 

Modularisation – a way of thinking 25 

Production 26 

Environmental performance in production 28 

The production system 28 

■ THE ENVIRONMENT 30 

■ MARKETS AND DEMAND 34 

Global demand 35 

Europe 36 

Latin America 40 

Asia, Africa and Oceania 42 

Customer financing 44 

■ SCANIA SHARE DATA 46 

■ FINANCIAL REVIEW 48 

Consolidated income statement 51 

Consolidated balance sheet 52 

Statement of changes in 

shareholders’ equity 54 

Consolidated statement of cash flow 54 

Parent Company financial statements 55 

Accounting principles 56 

Notes 59 

Proposed distribution of earnings 70 

Auditors’ report 71 

Quarterly data 72 

Financial ratios and definitions 73 

Multi-year statistical review 74 

■ BOARD AND MANAGEMENT 76 

Board of Directors 76 

Group Management 78 

■ CONTACT INFORMATION 81 

Contact persons 81 

Addresses 82 

The Report of the Directors encompasses pages 2–70. 

Swedish corporate identity number: 

Scania AB (publ) 

556184-8564 

1

For further information: www.scania.com 

Scania in brief 

Scania develops, manufactures and sells heavy 

trucks and buses as well as engines for industrial 

and marine use. Scania also offers its customers 

a broad range of services, service-related products 

and financing. 

Deliveries by market area, 2002 Sales by product area, 2002 

Other markets 5% 

Central and eastern 

Europe 7% 

Asia 8% 

Latin 

America11% 

Western 

Europe 69% 

Scania’s five largest bus markets 

Registrations Market share % 

2002 2002 

Mexico 424 4.9 

Spain 394 17.5 

Italy 347 11.7 

Brazil 327 3.5 

Taiwan 284 29.4 

Buses 9% 

Used vehicles 

and other 

products 11% 

Service-related 

products 23% 

Industrial and 

marine engines 1% 

Trucks 56% 

Scania’s ten largest truck markets 

Registrations Market share % 

2002 2002 

Great Britain 5,050 16.3 

France 3,871 9.6 

Germany 3,628 8.3 

Italy 3,358 13.0 

Brazil 3,208 18.9 

Spain 3,171 12.4 

The Netherlands 1,958 17.0 

Sweden 1,907 47.0 

South Korea 1,736 12.5 

Belgium 1,017 15.1 

Western Europe 28,524 13.5 

Key figures 2002 2001 2000 

Deliveries, units 

Trucks 39,895 43,659 52,318 

Buses 3,774 4,672 4,174 

Total 43,669 48,331 56,492 

Sales, SEK m. 

Scania products 46,140 47,213 44,740 

Car operations 1,145 5,852 6,658 

Total 47,285 53,065 51,398 

Operating income, SEK m. 


Car operations 563 1 111 275 

Total 4,406 2,467 5,084 

Operating margin, % 

Scania products 8.3 5.0 10.7 

Car operations – 1.9 4.1 

Total 8.2 2 4.6 9.9 

Income after financial items, SEK m. 3,722 1,541 4 ,454 

Net income, SEK m. 2,739 1,048 3 ,080 

Earnings per share, SEK m. 13.70 5.24 15.40 

Cash flows excluding Customer 

Finance operations, SEK m. 3 3,583 2,066 2 ,557 

Return, % 

on shareholders’ equity 17.2 6.5 21.6 

on capital employed 4 15.8 8.4 19.7 

Net debt/equity ratio 4 , % 0.25 0.49 0.50 

Equity/assets ratio, % 25.6 23.4 25.8 

Capital expenditures for 

fixed assets, SEK m. 3,025 1,980 1 ,825 

Research and development 

expenses, SEK m. 1,437 5 1,955 1 ,621 

Number of employees, 31 December 28,230 28 ,541 27,366 

1 Including capital gain, SEK 550 m. 

2 Excluding capital gains in car operations. Operating margin for the Scania Group 

including capital gains in car operations: 9.3%. 

3 Including acquisitions/divestments of businesses. 

4 With Customer Finance operations reported according to the equity accounting for 

fixed assets method. 

5 In addition to research and development expenditures reported among costs, 

SEK 573 m. was capitalised during 2002. 

Scania develops, manufactures, markets and 

sells trucks with a gross vehicle weight of more 

than 16 tonnes (Class 8), intended for longdistance 

haulage, construction haulage and 

goods distribution. 

MARKET DEVELOPMENTS 

In western Europe, Scania’s most important 

market, deliveries declined during 2002. In 

central and eastern Europe, Scania’s sales rose 

in most markets. In Latin America, weak 

economic growth and increases in Scania’s 

prices led to decline in most markets. In Asia, 

Australia and Africa, Scania’s order bookings 

rose in a number of markets. 

IMPORTANT EVENTS 

Production capacity in Latin America was 

utilised to a growing extent for deliveries to 

Europe, Asia and Africa. During 2002, Scania 

and the Japanese truck manufacturer Hino 

signed a strategic co-operation agreement, 

which among other things will mean that during 

2003 Hino will begin marketing and 

selling Scania tractor units in Japan. 


60,000 

40,000 

20,000 

0 

52,318 

43,659 

2000 2001 2002 

TRUCKS 

39,895 

Sales, SEK m. 

40,000 

30,000 

20,000 

10,000 

0 

31,101 

29,139 

27,184 

2000 2001 2002 

56% 

2

BUSES 

ENGINES SERVICE-RELATED PRODUCTS CUSTOMER FINANCE 

9% 1% 23% 

Scania’s bus and coach operations focus on 

heavy buses with high passenger capacity for 

use as tourist coaches and in intercity and 

urban traffic. Most of Scania’s bus production 

consists of chassis on which bodies are built 

by specialist bodybuilding companies. 


Scania’s bus and coach sales developed 

favourably in a number of European markets. 

In Italy, Scania significantly increased its 

market share, mainly due to strong city bus 

sales. Scania sharply increased its bus sales 

in Australia and Dubai. 


During 2002, Scania’s bus and coach 

operations in Europe were co-ordinated 

with truck operations. During the year, 

an assembly plant for bodybuilding of city 

buses opened in St. Petersburg, Russia. 


6,000 

4,000 

2,000 

4,174 

4,672 

3,774 

6,000 

4,000 3,704 

2,000 

4,701 

3,991 

Scania’s industrial and marine engines are 

used in a variety of applications at sea and 

on land. 


In Europe, Scania increased its deliveries 

of industrial and marine engines somewhat 

during the year. In Latin America, sales 

declined sharply due to the unstable economic 

situation. The engine sales growth 

of recent years in Saudi Arabia continued 

during 2002. 


During the year, Scania delivered its first 

marine 16-litre V8 engines, which were 

installed in the Swedish Sea Rescue Society’s 

new boat. Scania and the Japanese engine 

manufacturer Yanmar reached a strategic 

co-operation agreement during 2002, under 

which Yanmar has been entitled to sell 

and market Scania’s marine engines to the 

pleasure boat industry worldwide under its 

own brand name. 

By continuously increasing the range of 

service-related products, Scania helps its 

customers achieve increasingly cost-effective 

solutions. Customer relationships develop 

into a mutual partnership. 


More than 500,000 trucks and buses from 

Scania are serviced and maintained by 1,500 

authorised Scania workshops around the 

world. More than 1,000 of these are in 

Europe. Sales of service and parts increased 

by 4 percent during 2002 to SEK 10,603 m. 

In some markets, up to half of new truck 

sales are combined with service contracts. 


During 2002, Scania’s extensive service network 

added a sixth Assistance Centre, located 

in Trento, Italy. 

Sales, SEK m. Deliveries, units Sales, SEK m. Sales, SEK m. 

5,000 

4,000 

3,000 

2,000 

3,303 

4,672 

3,191 

1,000 

800 

600 

400 

437 

608 

464 

12,000 

8,000 

4,000 

8,113 

10,151 10,603 

Customer Financing is an important element 

of Scania’s integrated product range. For 

customers, financing is often one element 

of a cost-effective total solution for their 

transport business. Scania offers hire purchase 

contracts as well as financial and operating 

leases. 


In Europe, Customer Finance operations consist 

of 13 Scania-owned finance companies. 

In some western European countries, portfolio 

growth halted, since sales volume did not 

increase. In central and eastern Europe, 

Customer Finance operations continued to 

expand. 


During 2002, a finance company was 

established in Russia. Scania also started its 

own finance company in South Korea, where 

volume continued to increase sharply. 

Total assets in 

finance companies 

SEK m. 

30,000 

25,000 

20,000 

15,000 

10,000 

Operating income 

and net margin 

SEK m. 

300 

200 

100 


Net margin 

as a percentage 

of average 

portfolio 

% 

1.5 

1.0 

0.5 

1,000 

200 

5,000 

0 

2000 2001 2002 

0 

2000 2001 2002 

0 

2000 2001 2002 

0 

2000 2001 2002 

0 

2000 2001 2002 

0 

99 00 01 

02 

0 

99 00 01 02 

0 

3

Important events 

2002 

• Scania celebrated many anniversaries and milestones 

in 2002. The millionth Scania truck was manufactured at 

the Angers assembly plant, which also celebrated its 

10th anniversary. Scania trucks celebrated their 100th 

anniversary, and 100 years ago Scania delivered its first 

marine engine. This means that Scania is one of the 

world’s oldest manufacturers of engines for marine use. 

• In late 2002, Scania Industrial & Marine Engines 

signed a co-operation agreement with the Japanese 

engine manufacturer Yanmar. The agreement means 

that Yanmar will market and sell Scania engines to the 

pleasure boat industry under its own brand name. 

• Scania sold its Swedish car operations to Volkswagen 

AG of Germany. The settlement for Scania’s 50 percent 

holding in Svenska Volkswagen AB and for the Swedish 

dealership chain Din Bil amounted to SEK 870 m. and 

SEK 450 m., respectively. 

• As part of the restructuring of its bus and coach 

operations, Scania established the bus bodybuilding 

company Omni Katrineholm AB, which is responsible 

for development, production, procurement and commercial 

matters concerning bus bodies. Bus bodybuilding 

operations in Sweden, Russia and Poland are 

included in the new company’s sphere of responsibility. 

• In March, Scania and the Japanese truck manufacturer 

Hino signed a strategic co-operation agreement for the 

purpose of establishing a long-term business alliance. 

The first step in this co-operation concerns Scania’s 

tractor units, which will be marketed by Hino in Japan. 

During 2002, Scania began strategic co-operation with Hino. The Japanese truck manufacturer will market and sell Scania 

tractor units in the Japanese market. 

4


2003 

• In October, Scania participated for the first time 

in the Tokyo Motor Show, the leading commercial 

vehicle trade show in Asia. Together with Hino, 

Scania exhibited tractor units intended for the 

Japanese market. 

• Scania began bus manufacturing in St. Petersburg. 

The company invested SEK 80 m. in a plant that 

manufactures bodies for city buses for the Russian 

market on chassis from Sweden. 

• Scania continued to concentrate its component 

production. During the year, all cab manufacturing 

was transferred from Meppel, in the Netherlands, 

to Oskarshamn, Sweden, where Scania invested 

SEK 850 m. in a new finishing paintshop and a new 

assembly line for fitting out cabs. 

• Scania’s truck assembly in Poland ceased at the 

end of June. The capacity that has thus been made 

available is needed to meet increased demand for 

city and intercity bus bodies. 

• During 2002, Scania's research and development 

department unveiled a number of concept studies 

that generated well-deserved publicity. The purpose 

of the Scania STAX concept, pictured here, is to 

study customer interest in advanced design as well 

as how safety aspects are evaluated. Scania's concept 

studies are described in more detail on page 24. 

• Scania was de-listed from the New York Stock Exchange 

on 15 January 2003. The reason behind Scania’s decision 

to apply for de-listing was the low number of shares outstanding 

and very limited trading volume in the US. Opportunities 

for global investments and global share trading have 

also increased significantly in recent years. This step does 

not affect Scania’s listing on Stockholmsbörsen (Stockholm 

Stock Exchange). 

Scania STAX is a concept study that shows how 

tomorrow’s bonneted trucks may look. 

5

Statement of the President and CEO 

Economic uncertainty increased gradually 

during the year, adversely affecting the 

need for transport services. Despite lower 

sales volume, Scania improved its earnings 

and was once again among the companies 

with the strongest earnings in 

its industry. 

The expected recovery in the American economy did 

not materialise during the year. Continued low interest 

rates and increased indebtedness among households, 

for example by means of major rebates on loan-financed 

car purchases, kept up the level of consumption. In 

Europe, the economic growth rate decreased gradually 

during the year. Especially in Germany and neighbouring 

countries, growth stalled completely during the 

fourth quarter, while a clear slowing trend was apparent 

in France, Spain and Italy. In South America, the 

Argentine economy collapsed, while uncertainty in the 

Brazilian economy increased. 

Obviously Scania was adversely affected by these 

developments, and sales volume fell from 48,300 

trucks and buses in 2001 to 43,700 vehicles last year. 

Historically, this is a rather high level for Scania, but 

the total decline from the peak year of 2000 was 

nearly 13,000 units. 

For Scania, 2002 turned out better than expected. 

The strategy of keeping price levels up and increasing 

the company’s presence in the most powerful engine 

segments above 450 horsepower improved earnings. 

Also the changes of recent years in our production 

structure contributed to substantially better earnings. 

No recovery in Europe 

Demand in western Europe did not fall to as low a level 

as we had previously projected, but ended up at 

210,000 heavy trucks. In historical terms, this was a 

good year, following the record years of 1999, 2000 

and 2001 with 235,000, 245,000 and 235,000 heavy 

truck registrations, respectively. 

During 2002, price levels stabilised and a number 

of large customers came back. Our market share 

stabilised. 

The downturn in the European economic growth 

rate continued during the year. The economy will 

probably slow further during 2003. 

Owing to the relatively good economic growth 

rate in central and eastern Europe, these markets 

developed favourably. Volume is growing rapidly, and 

considering the strong position that Scania enjoys in 

the region, this bodes well for the future, especially in 

light of the existing growth potential, since a number 

of these countries are on the threshold of EU membership. 

For every new Scania truck that is sold in central 

and eastern Europe, five to six used Scania trucks find 

their way into the region. This has a very positive effect 

on our service business in central and eastern Europe. 

Slow recovery in Latin America 

The Argentine economic crisis struck with full intensity 

during the year and the economy deteriorated significantly. 

Brazil was affected and economic growth in 

Brazil was slower than in many years. 

Due to Scania’s action programme, including 

streamlining of production, adjustment of price levels 

and increased exports to countries outside Latin 

America of both components and vehicles, in combination 

with the weakening of the Argentine and 

Brazilian currencies in particular, earnings in Scania’s 

Latin American operations improved sharply. 

Strong growth in Asia 

In Asia, a number of markets developed favourably for 

Scania. In South Korea, Scania is back at the record- 

6

eaking levels of the mid-90s. Since 1998, Scania’s 

sales and service network has been restructured and 

further expanded. 

In China, the economy is growing rapidly. However, 

the market for the type of highly technically specified 

Western products that Scania sells is limited. The 

existing logistics and distribution systems are totally 

different from those in Europe. 

Co-operation with Hino is continuing as planned, 

and the first Scania trucks have already been delivered 

to Japanese customers. Other projects are continuously 

being evaluated. It should also be borne in mind 

that this co-operation is aimed at long-term positive 

results for both parties. 

We also signed a strategic co-operation agreement 

with Japanese-based Yanmar, a world leader in engine 

manufacturing, on the delivery of marine engines for 

pleasure boats, which will be sold under Yanmar’s 

brand name. 

New bus and coach structure 

For many years, the profitability of Scania’s bus and 

coach operations has been weak. These operations 

had to undergo a major improvement. The objective 

is to achieve the same income level as for trucks. 

In Europe, the problem has primarily been of a 

structural nature, while in Latin America it was due 

to a sharp decline in volume. During the year, we also 

completed the restructuring of European bus and 

coach operations that we began earlier. 

Since a large proportion of a bus chassis consists 

of truck components, while trucks and buses share 

development stages and bus chassis resemble truck 

7

chassis in production structure, we are now taking 

advantage of synergies with truck production. The bus 

chassis are then sent for bodyworking at Scania-owned 

or independent bodybuilding companies. 

The most highly publicised element of the restructuring, 

co-ordination of bus chassis and truck assembly 

in Södertälje, was completed at mid-year. 

Bus bodybuilding is an entirely different business. 

In volume, it accounts for less than ten percent of our 

total bus and coach operations. With approximately 

1,200 work hours per bus body, it is still largely a matter 

of craftsmanship. Omni Katrineholm AB, the wholly 

owned company in which our own bodybuilding operations 

have been gathered, today consists of three units: 

in Katrineholm, Sweden, development and production 

of bus bodies takes place. In Sfiupsk, Poland, all of 

Scanias operations today focus on bodybuilding and in 

St. Petersburg, Russia, we have a newly opened plant. 

The labour cost for a bus body produced in Poland or 

Russia is one fifth of that in Sweden. 

In Latin America, bus sales in Mexico developed 

favourably. Otherwise the market shrank and we lost 

market share in Brazil, since we implemented the 

same price increases as for trucks. 

Global product and production system 

Two important steps were taken during the year 

concerning Scania’s global products and production 

system. 

The restructuring of European production was 

completed, with all cab production for European 

operations being concentrated in Oskarshamn, 

Sweden. The strategy of concentrating component 

manufacture at one location, since the investment 

costs are high, has thus been implemented, When it 

comes to chassis assembly, logistics expenses are 

higher, which makes it economically advantageous to 

have assembly in several locations, as close to the 

customer as possible. 

Meanwhile production in Latin America and Europe 

became fully integrated. Instead of recruiting more employees 

and increasing capacity in Europe when order 

books grew during the first half of 2002, we increased 

our utilisation of production capacity in Latin America. 

Since the late 1980s, we have had a continuous flow of 

components, mainly gearboxes and engines, from Latin 

America to Europe. This flow was increased, while we 

began to deliver sizeable volumes of complete vehicles 

from Latin America directly to customers in Europe, 

Asia and Africa. This is possible thanks to 

our global production system, which has the same production 

structure and quality throughout the system. 

Regardless of where a vehicle is produced, a Scania 

is always a Scania. 

Product development 

The modular system is the foundation of our development 

strategy. Put simply, it is about having a ‘toolbox’ 

from which we assist the customer by putting together 

exactly the vehicle his specific needs require. The 

requirements are very different from one transport task 

to another. For Scania, the modular system, with its 

carefully specified interfaces between ‘building blocks’, 

means that we can pursue development of each module, 

for example the engine, without having to change 

the surrounding modules, for example the gearbox and 

cab. In our development work, this makes it easier to 

carry out continuous improvements, thereby achieving 

a better product and more efficient production. A new 

Scania is always better than the previous one. 

Focus on core business completed 

Having sold its car operations, in principle Scania today 

is a company that is focused entirely on its core 

business: heavy commercial vehicles for transporting 

goods and people, plus industrial and marine engines. 

Looking ahead 

Considering the slow economic growth rate in both 

the US and Europe, and uncertainty in Iraq, in my 

judgement there will be one more year of weak 

demand for our products in most markets. 

I would like to express my sincere gratitude to all 

the employees in the worldwide Scania organisation 

for this past year. Everyone is doing their best to 

ensure that Scania will remain a strong, profitable 

company with high-quality products and service for 

our loyal Scania customers. 

Leif Östling 

President and CEO 

8

The work of the Board 

According to the Rules of Procedure it has adopted, 

the Board of Directors shall hold at least six regular 

meetings per year. Beyond this, the Board may meet 

when circumstances so warrant. During 2002 the 

Board had eight meetings. 

The Board’s January/February, April, July/August 

and October/November meetings are devoted 

primarily to financial reporting. 

In August the Board deals with long-term plans 

and in December the financial plan (budget) for the 

following year. 

At all regular meetings, the Board deals with 

matters of a current nature as well as capital 

expenditures. Reporting to the Board from its 

committees occurs on a continuous basis. 

At its meetings, the Board also recurrently deals 

with various aspects of the company’s operations: 

for example, management recruitment, financing, 

product development and market issues. This 

occurs at in-depth briefings where affected 

managers participate. 

The statutory Board meeting following the Annual 

General Meeting approves Rules of Procedure and 

a standing agenda for the Board meetings, appoints 

the Chairman, Vice Chairman and Board committee 

members, adopts instructions and decides certain 

Board compensation issues. To support both the 

Chairman, Dr. Bernd Pischetsrieder since 7 May 

2002, and the President and CEO, Leif Östling, the 

new position of Vice Chairman was established. 

Clas Åke Hedström was appointed to this position. 

Nomination of Board members takes place as follows: 

Well before the Annual General Meeting, the Chairman 

and Vice Chairman hold discussions with representatives 

of the four largest shareholders in the company 

(excluding Volvo AB) to reach a consensus on persons 

to be nominated. 

A new committee, the Audit Committee, was established 

during 2002 consisting of Marcus Wallenberg, 

Chairman, Clas Åke Hedström, and Lothar Sander. The 

Audit Committee held three meetings. In accordance 

with the rules of procedure that have been adopted, the 

Audit Committee has prepared items of business related 

to internal controls, financial reporting, accounting 

principles and external auditing. 

Compensation issues for the President and other 

senior executives are decided by the Board after 

preparation by a committee that was established earlier, 

the Remuneration Committee, which now consists of 

Dr. Bernd Pischetsrieder, Chairman, Peggy Bruzelius, 

Rolf Stomberg, and Clas Åke Hedström. During 2002 

this committee had one meeting. 

A committee was also established earlier consisting 

of external Board members independent of Investor and 

Volkswagen. The Employee Representatives are not 

included. This committee is intended to prepare any 

possible issues for the Board concerning the ownership 

structure of Scania AB. 

The instructions to the President specify his 

duties and powers. These instructions include policy 

documents on capital expenditures, financing, financial 

reporting and external communications. 

9

Vision, mission statement and strategy 

Scania’s vision is to be the leading company 

in its industry by creating lasting value for its 

customers, employees, shareholders and 

other stakeholders. 

Strategy 

Concentration on heavy transport vehicles 

Scania’s operations focus on the most profitable 

segment, heavy transport vehicles. In mature markets, 

demand for trucks and buses in the heavier segment 

increases with economic growth. In emerging markets, 

demand increases faster or at the same pace as infrastructure 

expands and the demands on logistics 

systems increase. 

ment work, Scania is also continuously improving its 

sales and service network. Customer financing is an 

important element of Scania’s complete product offer. 

Focus on growth markets 

Heavy transport services are the fastest growing segment 

of the transport industry. Scania’s main markets 

– the enlarged Europe, Latin America and Asia – have 

good potential for long-term growth. 

Mission statement 

Scania’s mission is to supply its customers with highquality 

vehicles and services related to the transport of 

goods and passengers by road. By focusing on customer 

needs, high-quality products and services, as 

well as respect for the individual, Scania shall create 

value-added for the customer and grow with sustained 

profitability. 

Scania’s operations specialise in developing and 

manufacturing vehicles, which shall lead the market in 

terms of performance and life-cycle cost, as well as 

quality and environmental characteristics. 

Scania’s sales and service organisation shall supply 

customers with vehicles and services that provides 

maximum operating time at minimum cost over the 

service life of their vehicles, while preserving their 

environmental characteristics. 

Modular product system 

With Scania’s modular product system, the customer 

can get the exact vehicle specification he or she 

wants. The more closely a vehicle and related services 

are adapted to a transport task, the better the customer’s 

operating economy will be. 

The modular system optimises the total number 

of main components that are included in Scania’s 

product range. It thereby allows considerably longer 

production runs for these components than is possible 

in a conventional product system. The modular system 

is the basis for product quality. It also simplifies parts 

management and contributes to higher quality in the 

service organisation. 

Integrated range of vehicles, 

services and financing 

Scania grows by offering customers the best vehicles, 

service and financing solutions in the market. Scania’s 

customers increasingly use their vehicles round-theclock. 

This presupposes rapid, continuous access to 

service and repairs. In addition to its vehicle develop- 

10

Identity and brand 

An increasingly borderless Europe offers major opportunities 

to manufacturers with a well-developed sales 

and service network. 

In Latin America, the demand for vehicles, services 

and financing will increase as a growing share of both 

goods and passenger traffic utilises heavy vehicles. 

Asia is a long-term growth market. Infrastructure 

improvements will open the way for a more efficient 

transport sector. 

Behind the Scania brand is a strong corporate 

culture that always puts the customer 

first. Respecting the knowledge, experience 

and desire of all individual employees to 

continuously improve their performance is 

fundamental to Scania’s culture. There is a 

constant focus on quality at all levels. 

Historically speaking, Scania has competed on the 

basis of tried and tested technical solutions. Its ambition 

has always been to outperform its competitors. 

Scania’s products must help its customers achieve 

higher profitability. 

This value-added is based on long experience, 

superior quality and high cost-effectiveness – all concentrated 

and summed up in the Scania brand name. 

The strength and value of the brand has helped make 

Scania one of the most profitable companies in its 

industry. Strong customer loyalty is the cornerstone of 

this profitability. 

Pride and trust 

A customer feels proud to own and drive a Scania, a 

professional working tool that strengthens the respect 

accorded him by colleagues, competitors and his own 

customers. But he also feels trust, because he has 

made a sound investment. This trust is not only about 

physical products, but also of being able to rely on all 

the collective knowledge and experience of Scania’s 

global service network. 

Values 

Aside from the company’s products – vehicles, 

services and customer financing – Scania’s identity 

is shaped by its internal values and working methods. 

Three fundamental values are shared throughout the 

company and form the basis of both Scania’s 

corporate culture and its business success. 

Putting the customer first 

Scania focuses all its efforts on the needs and activities 

of its customers. It does so by optimising the value 

chain – from development work via production and purchasing, 

to sales and servicing of vehicles while they are 

in operation. By viewing its business over a vehicle’s 

entire life cycle, Scania also creates a close contact – 

and partnership – with the customer. 

Respecting the individual 

Respecting the individual is a cornerstone of leadership 

at Scania. On the basis of this value, it is the task of a 

Scania manager to teach and to apply the principles 

that govern the company’s work. 

New ideas and inspiration are born out of day-to-day 

operations. When given increased responsibility, Scania’s 

employees always develop better solutions in their 

work. Their knowledge, experience and attitude of continuously 

seeking to improve their work help ensure 

higher quality, efficiency and greater job satisfaction. 

Quality 

All employees in the global Scania organisation know 

that the customer’s profitability is dependent on the 

delivery of high quality from Scania. By immediately 

dealing with deviations in well-established processes 

and promptly remedying them, Scania’s employees 

continuously improve the quality of their products and 

services. 

11

Scania’s role in society 

An ethical approach to business is the 

responsibility of every employee. Respect 

for the individual is one of the core values 

that define how Scania’s employees 

are expected to behave towards their 

surroundings and their fellow employees. 

The OECD Guidelines in brief 

• Generally: Respect human rights. 

• Information: Disclose relevant information 

to all stakeholders. 

• Employees: Respect the union rights of 

employees and help eliminate child labour. 

• The environment: Strive for continuous 

improvement. 

• Corruption: Never offer bribes or anything 

else that may be perceived as bribes. 

• Interest to customer: Disclose product 

information to customers and establish 

improvement procedures. 

• Science and technology: Work towards 

transferring knowledge to host countries. 

• Competition: Refrain from anti-competitive 

agreements among competitors. 

Ethics 

Scania shall create lasting value for its customers, 

employees, shareholders and other stakeholders. 

Sound ethics and high moral standards are preconditions 

for winning and maintaining trust and respect – 

and thereby also for profitable long-term operations. 

Scania takes an active part in clarifying ethical and 

social values within the organisation. There is a strong 

connection between business ethics, social commitment 

and the Scania brand. 

Scania’s procurement policy specifies standards 

for suppliers in terms of quality, environmental impact, 

business ethics and social aspects. 

Assuming social responsibility 

Scania regards assuming social responsibility as an 

integral part of its business. Also important is working 

towards positive local social development in the places 

where Scania has operations. 

During 2002, Scania has formulated how the 

company should behave in its workplace relations 

and external contacts. The point of departure for 

these relations is Scania’s core values and the OECD 

Guidelines for Multinational Enterprises, which Scania 

agrees with. 

Freedom of contract and co-determination 

All employees throughout Scania’s global organisation 

are fully entitled to participate in trade union work, and 

a majority of employees belong to a union. The level of 

union affiliation varies in response to local conditions 

and is lower in France and the Netherlands than in 

other countries where Scania has production. 

In all countries where Scania does business, employees 

have access to company information and the 

right to co-determination, as provided by national 

legislation. 

The Scania European Committee is a forum for 

consultation and information where Scania employee 

representatives from EU countries meet. 

Every manager at Scania is responsible for 

ensuring compliance with the 

OECD Guidelines. 

12

Road safety work 

One undesired consequence of road traffic is traffic 

accidents. Every year more than 40,000 people die on 

the road in the EU countries, and many more are injured. 

To improve road safety is an important task. The European 

Commission’s target is to halve the casualty 

figures by 2010. 

To Scania, product development work and training of 

drivers and customers are the best opportunities to 

influence road safety in a clear way. Through active 

opinion-forming efforts, Scania can also help ensure that 

the use of its products will become better. 

Scania must be a leader in active safety and develop 

products in such a way as to minimise both the number 

of accidents and the damage they cause. 

Scania has organised a European road safety conference 

in Brussels twice with decision-makers at the European 

Commission, the European Parliament and other 

public agencies and organisations as its target group. 

The third conference will be held in October 2003 and 

will focus on the role of the driver in road safety. 

One result of the latest road safety conference was the 

establishment of a working group to create a digital road 

database adapted for heavy vehicles. Obtaining information 

about the fastest, safest or shorter route for heavy 

vehicles would be useful for haulage companies wishing 

to achieve maximum efficiency with minimal environmental 

impact. It can also reduce the risk of accidents, traffic 

congestion and stress. At Scania’s initiative, stake holders 

involved in road transport services and road safety have 

met to identify what special parameters are of interest for 

heavy vehicles and how they can be gathered or updated. 

The goal is to pave the way for a digital European 

road infrastructure adapted to heavy vehicles. 

Young European Truck Driver 

As part of its long-term efforts to improve road 

safety, during 2003 Scania is organising a major 

competition for drivers. This competition, called 

Young European Truck Driver, is aimed at 

promoting safe, environmentally sound and 

economical driving techniques. Scania is 

organising the competition in partnership with the 

European Commission and with Michelin, Shell and 

the International Road Transport Union (IRU) 

as co-sponsors. 

All drivers under the age of 30, with 

a licence for heavy trucks, are invited 

to participate. 

Crumple zone on trucks 

To reduce the consequences of a head-on 

crash, Scania has developed a concept in 

which a truck is equipped with a deformable 

crash zone. This will decrease the death toll by 

approximately an additional 900 compared to 

the underrun protection system now mandated 

by the EU. 

However, European regulations on the length 

and weight of trucks limit the potential for introducing 

this type of deformation zone without sacrificing cargo space. 

Scania has raised this issue in discussions with national 

agencies and the European Commission. 

13

Employees 

Respect for the individual is the basis for 

leadership at Scania. A sense of commitment 

and a questioning approach can only be 

achieved by individuals who feel that they 

can exert influence. By means of continuous 

improvements in working methods, Scania 

has substantially improved productivity and 

job satisfaction, while helping reduce 

absences due to illness. 

Leadership focused on working methods 

Clear, supportive leadership, with straightforward allocation 

of responsibility, is fundamental to Scania’s continuous 

improvement efforts. This establishes a creative, 

secure environment that encourages initiative and 

courage to break new ground and that rewards concrete, 

lasting results. 

One of the most important tasks of Scania managers 

is to teach and apply the principles that form the basis 

of a method-based management system. Fundamental 

to this working method is the pursuit of continuous 

improvements. New ideas develop among employees 

in the company’s operations, while managers stimulate 

continuous improvement in working systems. 

Human resource development 

Scania managers must utilise the talents of their fellow 

employees and stimulate development. At the same 

time, each individual employee has a responsibility for 

improving his or her own skills. Once a year, each 

employee’s human resource development plan is 

summarised in a review with his or her manager. 

Scania’s human resource development work has a 

long-term focus. Scania’s global organisation set aside 

an average of 30 training hours per employee, in addition 

to the time spent on ‘‘learning by doing” as part of dayto-day 

work. 

Anna Bodestig 

Styling, Research and Development, Södertälje, Sweden 

“I work at a department with a creative climate and great 

openness to new ideas and solutions. Our ambitions are 

always set high, in order to achieve the best results. We 

work holistically with both interiors and exteriors, and 

with all Scania products. It is also fun to work with an 

international product and an international company – it 

always provides a broader perspective.” 

Diosdete Caetano 

Product Auditing, Chassis, São Paulo, Brazil 

“To me, the major reward in my job is the freedom to 

make my own decisions. I manage a team that identifies 

deviations in components that are used when assembling 

a truck. It is a matter of finding quick solutions, usually 

together with the supplier, in order to eliminate the problem. 

Scania gives you a lot of individual responsibility.” 

Rodolfo Sebastian Haro 

Gearbox Shaft Tooling, Tucumán, Argentina 

“The 15 years I have worked at Scania Tucumán have 

given me an opportunity for both personal and professional 

development, which have been important goals in 

my life. I am proud to know that the job I do at the factory 

here in Tucumán is a part of top-quality trucks and buses 

that operate all over the world. To me, Scania is a company 

that cares about and values people.” 

14

Scania’s industrial research programme enables graduate 

engineers to combine permanent employment with 

research at the licentiate or doctoral level. 

The Scania Marketing Academy provides academically 

accredited training that develops leadership talent 

and strengthens the business skills of Scania’s marketing 

organisation. The Academy is run in collaboration with 

the Stockholm School of Economics. 

Scania operates its own technical upper secondary 

school in Södertälje, which trains certified fitters and 

production mechanics. There are also Scania-affiliated 

industrial schools in Zwolle and São Paulo. 

Scania is a company with worldwide operations and 

cross-border collaboration. One of the many examples 

of global work is the teams that work with quality 

matters and with preparing changes at production 

units. ‘‘Best practices” are developed through exchange 

of experience between production in Sweden, the 

Netherlands, France and Latin America as well as 

throughout the global sales and service organisation. 

The Personnel Exchange Programme (PEP) 

broadens the skills of Scania employees and enables 

them to work in other countries. Since it was established, 

about 570 Scania employees have completed 

the programme. 

Motivation 

A good working environment, personal responsibility 

and teamwork provide motivation. Combined with 

bonus systems, they increase employee participation 

and dedication. In Sweden, the bonus system is based 

on the year’s delivery assurance and productivity growth. 

Funds are transferred to a foundation in which each 

employee holds shares. At year-end 2002, the 

foundation owned 0.6 percent of Scania shares. In 

France, the bonus is determined by earnings, quality 

and delivery precision, and in the Netherlands by 

earnings and low absenteeism. In Latin America, the 

bonus is based on production, low absenteeism, market 

leadership, teamwork and improvement efforts. 

Sergey Lebedev 

Sales Manager, Scania Russia 

“The Russian market has seen a few upturns and downturns 

in recent years. During this period, our sales team 

has gained very valuable experience. We have to deal with 

many special requirements, and at Scania we proudly claim 

that we work with ‘Scania’s most demanding customers’. 

This is a challenge and what we manage to accomplish 

together is very satisfying.” 

Benedikt Engler 

Service Technician, Motoren Baader Vertriebs- und 

Instandsetzungs GmbH, Neustadt, Germany 

“I have worked at Scania for almost 25 years, most of the time 

with electronic systems in Scania vehicles and engines, everything 

from the Opticruise gearchanging system and the Retarder 

to the introduction of the new Scania HPI fuel injection system. 

I like logical thinking and always want to stay up-to-date. 

Scania gives me opportunities and occasions to use all the 

broad know-how I have picked up.” 

Sangwoon Lee 

Managing Director, Scania Finance Korea 

“I very much enjoy working at a company where customers are 

treated with such respect. Scania’s corporate culture is also 

reminiscent of the thinking here in East Asia. The individual and 

internal values mean more than externalities. We prefer to work 

quietly and systematically rather than with big gestures. The way 

I see it, Scania is managed with an iron hand, clad in velvet.” 

15

CUSTOMERS AND PRODUCTS 

Sue Hixon 

Associated British Ports, Hull, Great Britain 

Strategically located on the east coast of Great Britain, Humber 

Estuary has long been one of the most important harbours in 

the country. Associated British Ports is the country’s leading ports 

business that helps customers by providing a fleet of five powerful 

pilot boats, equipped with Scania engines. One of these is 

commanded by Sue Hixon, the only female pilot boat captain in 

the British Isles. 

“My job is mainly to transport pilots to and from the vessels 

that arrive or depart from the port. For really big supertankers, that 

can mean a trip of 13 nautical miles out to sea. We must be able 

to provide service round the clock, seven days a week – in any kind 

of weather. It means we must always have pilot boats and engines 

that we can rely on.” 

16

Customers 

Scania’s customers are found all over the 

world. Their operations may differ, but they all 

have in common that in their businesses they 

make heavy demands on Scania’s products 

and services. All work at Scania is focused on 

understanding and meeting the demands, 

needs and wishes of these customers. 

All of Scania’s operations revolve around extensive contact 

with customers from different markets and with varying 

needs. In the product development process, this occurs 

among other things in the form of “customer clinics” held in 

various locations around the world, where new solutions 

are tested. The purpose of this dialogue with customers is 

to ensure that every new product meets the high standard 

demanded by our customers. Scania’s quality processes 

are another example of how customers make themselves 

heard. Through the Quick process, quality issues are 

gathered from customers via service workshops, which 

in turn are in direct contact with production and product 

development units as well as sub-contractors. 

New customer demands 

As markets are deregulated and international trade increases, 

the conditions in which transport companies 

operate are changing in a far-reaching way. Large national 

and international haulage companies and bus companies 

are being formed through mergers or acquisitions. Meanwhile 

many small haulage firms are specialising or are 

becoming sub-contractors to larger transport companies. 

Such services as financing, insurance, short-term rental 

Angel Villegas transports oil for Gabino Celso Correa in 

southern Argentina. 

and maintenance are increasingly in demand. By continuously 

optimising the value chain – from development 

to production, sales, customer finance and vehicle service 

– Scania helps to improve a customer’s profitability. 

Truck customers 

Scania’s truck customers demand greater and greater 

vehicle availability, often round-the-clock. This presupposes 

rapid access to routine maintenance and repairs. For 

Scania, it means 24-hour service, comprehensive parts 

management, complete maintenance and many other 

services generated in close contact with the customer. 

A large proportion of Scania’s truck customers work in 

the long-haulage segment, where Scania’s closely-knit and 

international service network is highly valued. 

Drivers, who live with the products, are an important 

group to Scania. To develop and build vehicles with the 

best possible safety, quality and ergonomic features, product 

development takes place in close co-operation with 

professional drivers. During 2003, Scania is putting extra 

emphasis on drivers, among other things by joining with the 

European Commission to organise Young European Truck 

Driver, a road safety activity that is taking place in some 20 

countries. 

Bus and coach customers 

Scania’s customers in city bus services today are often 

private operators, in many cases active in more than one 

country. To a growing extent, they are demanding a total 

transport solution, in which Scania assumes responsibility 

for everything. Service and repair contracts, financing and 

traffic planning are examples of the elements that may be 

included in Scania’s bus offers. 

Customers in the tourist coach segment previously 

composed their own coach, by ordering the chassis from 

one manufacturer and the body from another. Today 

these customers increasingly often want to buy a whole 

bus from one supplier. This means that to a greater 

extent, Scania is selling a complete vehicle and assuming 

overall responsibility for the final product. 

Industrial and marine engine customers 

Scania’s industrial and marine engine customers have in 

common that they need a powerful engine with an output 

of 200-800 hp. It may be a fisherman off the coast of 

Norway, the Kuala Lumpur airport or a rock-crushing 

plant in the Australian outback. They all demand a high 

standard of delivery assurance, access to parts, reliability 

and fuel economy. 

A clear trend is increased demands that engines 

should meet the emission standards of both today and 

tomorrow. 

17

Products 

Scania has an integrated product concept 

that combines vehicles, service-related 

products and financing. Through its collective 

knowledge in these fields, Scania helps to 

continuously improve the profitability of its 

customers. 

Conditions affecting the customer in the form of new 

technology, new materials and new legislation are constantly 

changing. Scania’s goal is to help the customer 

achieve increased profitability. 

A modular product range 

The better Scania vehicles and service-related products 

are adapted to the customer’s needs, the higher the 

customer’s profitability will be. Scania’s modular system 

is basically a ‘toolbox’ in which most components can 

be used in many different combinations. This gives 

customers almost unlimited possibilities to tailor vehicles 

to a specific task. Scania’s challenge is to help the 

customer to achieve an optimal configuration of the 

modules. 

A global product range 

The unique ‘toolbox’ also makes it possible for Scania to 

meet the widely varying needs of customers with a 

global product range. Unlike many other vehicle manufacturers, 

Scania has a single product range for all markets 

around the world. This is possible thanks to a global 

quality and environmental standard. Furthermore, the 

work at all of Scania’s production units around the world 

is governed by common methods, taken from the 

Scania Production System. Combined with the modular 

system, this means that all customers can enjoy 

faster vehicle delivery, the highest quality and ample 

possibilities to adapt the vehicle to their needs. 

Environmental adaptation of products 

Most of the environmental impact of a vehicle occurs 

during its service life. Through its development work, 

Scania influences the prerequisites for even better envi- 

ronmental adaptation of its products. The Scania modular 

system makes it easier to specify a vehicle on the 

basis of a customer’s environmental performance needs 

and requirements. Environmental declarations for 

Scania’s products also provide help. 

Vehicles and engines 

To enable Scania’s customers to continue running their 

businesses profitably in the future, both vehicles and service 

solutions must be continuously improved. Important 

goals are lower weight, lower operating cost and longer 

service life. Scania’s products must have the lowest possible 

environmental impact. Exhaust emissions 

are subject to legislation in all of Scania’s markets. Its 

products are optimised in order to consume less energy, 

raw materials and chemicals during their life-cycle, and 

so that products that have reached the end of their service 

life can be recycled in the best way. 

Service-related products 

Customers often want individual solutions that enable 

them to use their vehicles optimally. Many customers 

prefer to pay a fixed per-kilometre price in order to avoid 

worrying about service and maintenance costs. This is 

why Scania has developed a broad range of services 

that make it possible for customers to focus on their 

core business – transport services and logistics. 

Financing 

For Scania’s customers, financing is often an important 

component. Scania can finance purchases by means of 

operating leases, financial leases and hire purchase 

contracts. New financial services related to Scania’s 

products are continuously being developed. 

18

Trucks 

Scania develops, manufactures, markets and sells 

trucks with a gross vehicle weight of more than 

16 tonnes (Class 8) for long-haulage, construction 

haulage and distribution of goods. 

Scania’s long-haulage trucks are characterised 

by high availability, excellent fuel consumption and low 

maintenance costs. Thanks to the Scania modular 

system, customers can specify the most optimal and 

cost-effective long-haul truck for their needs. 

Scania’s construction trucks are developed and built 

with off-road mobility and cargo capacity as their most 

important characteristics. 

Scania’s distribution vehicles are developed to 

operate in city environments and other settings where 

they must meet high standards in terms of environmental 

impact, driver environment and manoeuvrability. 

Buses and coaches 

Scania’s bus and coach operations focus on heavy 

buses with high passenger capacity for use as tourist 

coaches or in intercity or urban traffic. Most of Scania’s 

bus production consists of chassis, to which bodies 

are then added by specialist bodybuilding companies. 

Scania’s bus and coach chassis are largely based 

on standardised components, most of which are 

shared with trucks. This yields major benefits to 

customers in the form of good access to service and 

parts. 

Scania’s tourist coach chassis are modular and give 

the customer a good opportunity to specify a tailormade 

vehicle. Scania’s city and intercity bus chassis 

are highly flexible and cover a broad range of uses – 

everything from city and suburban bus services to 

intercity bus services. 

Industrial and marine engines 

Scania engines are used in a variety of applications – 

not only in buses and trucks. They may be used in 

container cranes, pilot boats, irrigation units or electrical 

generating sets. In principle, a Scania engine 

can be placed in any kind of application that requires 

a powerful engine. 

The starting point is always Scania’s own truck and 

bus engines, which are then adapted to fit the requirements 

of the customer. The largest and most demanding 

adaptations are made on engines used in marine 

settings or in military applications. 

The trend is towards increasingly complex engines. 

Customer are making greater demands when it comes 

to fuel economy, flexibility, ease of service and economic 

life, as well as the option of integrating the 

engine’s electronic control systems with those of the 

final product. 

19

Service-related products 

To the customers of today and tomorrow, the 

quality of the service network is as important 

as the quality of their vehicles. By updating, 

customising and continuously expanding its 

range of service-related products, Scania 

helps its customers to achieve increasingly 

cost-effective solutions. The customer relationship 

develops into a mutual partnership. 

Around the world, more than 500,000 Scania heavy 

trucks and buses are on the roads today. These 

vehicles can obtain service from 1,500 authorised 

Scania workshops. Assuming the same growth rate in 

sales and vehicle fleet as in recent decades, by the end 

of this decade at least 800,000 Scania vehicles will 

require service and maintenance. 

The European Union’s modified block exemption for 

the motor vehicle sector is intensifying the competition 

for Scania’s service network. Today customers have an 

even wider range of choices when they want service or 

repairs performed. Scania is responding to competition 

in the service market with an increased customer 

focus, where quality and expertise are key concepts. 

Scania assumes an overall responsibility for its 

products in everything from technical specifications to 

ensuring that the customer can always obtain parts 

and service. 

Quality 

The customer pays to ensure that his vehicle will always 

work all the time. An unplanned stoppage represents a 

cost. Through high quality and availability in the service 

network, Scania helps to limit these costs. 

To make sure that all Scania customers will receive 

the same high level of service and quality, Scania has 

developed the Dealer Operating Standards (DOS) certification 

programme. It is adapted to the specific needs 

of Scania customers. DOS is based on a number of 

factors concerning availability, sales and delivery, 

access to parts as well as maintenance and repairs. 

These factors are fundamentally about two things: 

• The customer must feel secure and know that he or 

she will receive expert technical assistance within 

the promised time frame. 

• The customer must always feel properly treated by 

Scania, regardless of where he or she may be. 

Expertise 

There is a steadily growing need for training in the 

service sector. The advanced technology built into 

coming generations of vehicles will demand a high level 

of employee skills. To ensure the right level of expertise 

in Scania’s service network, further training of service 

staff is a high priority. Instructors are trained regularly 

at the company’s own training centres, for example 

in Germany, Great Britain, Sweden, Brazil, Dubai 

and South Korea. These instructors, in turn, train 

mechanics at local centres. 

20

Customer financing 

An increasingly common customer demand is to be 

able to satisfy all service and repair needs “under one 

roof”. Scania’s service organisation has therefore 

increased its focus on handling the entire repair requirement 

of Scania products, including bodywork, as well 

as for other makes. 

Scania Assistance 

Today’s customers expect maximum vehicle availability, 

with a minimum of unplanned stoppages. Scania 

Assistance is there to help get the vehicle back to work 

again as quickly as possible. During 2002, Scania 

Assistance opened a sixth regional centre, with service 

round-the-clock. In early 2003, a milestone will be 

passed when all of Europe will be connected, and 

Scania staff will take care of Scania customers in their 

own languages throughout the continent. 

Aside from Europe, Scania Assistance is found in 

South Korea, Israel, Morocco, Tanzania, South Africa, 

Brazil and Argentina. During 2003 Mexico will also be 

added. 

A growing business 

During 2002, Scania’s sales of service and parts rose 

by 4 percent to SEK 10,603 m. The number of vehicles 

sold with service contracts is steadily growing in most 

European markets. Up to half of the new trucks sold in 

some markets are combined with service contracts. 

In many cases, an investment in new transport 

vehicles presupposes a good financial 

solution. More and more customers are 

relying on Scania for this service. Financing 

is often one element of a cost-effective total 

solution in a transport business. 

By means of Scania’s various financial services in 

Customer Finance, customers can tailor solutions to 

their different needs. Hire purchase financing and 

financial or operating leases can be combined with 

various service contracts, based on customer wishes. 

Scania endeavours to work locally in its Customer 

Finance operations. Proximity to customers and local 

know-how make the processing of applications faster 

and improves the quality of credit evaluation. Financing 

often helps develop a mutual partnership between the 

customer and Scania. In more and more markets, this 

service is provided by Scania’s own finance companies. 

Even in markets where Scania has no finance company 

of its own, distributors and customers receive 

various back-up financial services through Scania 

Credit AB. Its main markets are in Africa, the Middle 

East and Asia. 

Results and a more detailed description of Scania’s 

customer financing can be found on pages 44–45 of 

this Annual Report. 

Customer financing in South Korea. Ryu Jai Chan 

has added a Scania truck to his haulage company’s 

fleet and Sangwoon Lee, head of Scania’s local 

finance company, has gained one more customer. 

21

R&D AND PRODUCTION 

Daniel Ståhlberg 

Doctoral Student, Materials Technology, 

Sweden 

Daniel Ståhlberg’s doctoral project, “Characteristics of 

Paint Layers in Joints”, is a collaborative effort 

between Scania, the Swedish Agency for Innovation 

Systems (VINNOVA), the Royal Institute of Technology 

(KTH) and paint manufacturers. The project is aimed 

at improving our understanding of the deformation 

mechanisms of powder paints under pressure in 

joints. The project will yield knowledge of how the 

chemical and physical composition of paints affects 

their mechanical characteristics, providing a material 

model for simulation and optimisation of paints and 

structures. 

Scania’s painting concept is based on component

Research and development 

To the 1,700 researchers and engineers 

working with Scania’s product development, 

one of the major challenges is to always 

successfully combine the future needs of 

customers with technological developments. 

This is where the Scania brand and its values 

– pride and trust – begin to be built. 

painting, with items being delivered fully painted to production 

plants. Painting parts separately makes the items 

exchangeable between all production plants and enables 

the use of environmentally adapted surface treatment, 

powder coating, entirely without solvents. 

As a result of this painting concept, even hidden surfaces 

between two parts that are joined together are painted, 

which provides better corrosion protection. The parts are 

mechanically attached using screws or rivets and form a 

joint, for example a side member assembled together with 

a fuel tank bracket. However, the presence of paint in these 

joints may affect the strength of the bond if the mechanical 

characteristics of the paint are not determined. It is thus 

very important to be aware of the characteristics of the 

paint, both during assembly and during the service life of 

the truck, and to ensure that these characteristics have been 

taken into account when designing a joint. 

Scania’s research and development expenditures in 

2002 totalled SEK 2 billon, a large share of it at international 

cutting-edge level, among other things in 

combustion technology. This work is mainly concentrated 

at the Scania Technical Centre in Södertälje. 

Product development takes place in four main areas: 

complete vehicle, engine, cab and transmission 

development. Development work for trucks, buses and 

engines is integrated and operates cross-functionally. 

Scania’s need for additional highly educated 

employees will increase further in the future. For this 

reason, collaboration with the research community 

outside of Scania is of great importance. Through a 

smoothly functioning academic network, Scania gains 

access to extensive knowledge in fields where greater 

resources are necessary in order to maintain cuttingedge 

expertise. This occurs both through personal 

contacts and more formalised collaboration between 

public agencies and companies in the vehicle industry. 

Based on the needs that are identified, various 

ideas from this collaboration lead to industrial research 

assignments. Through Scania’s industrial research programme, 

which began in the mid-1990s, doctoral students 

are continually brought into various projects in 

collaboration with institutes of technology and other 

research institutions. A large proportion of their research 

findings have already led to results in product development, 

while others will have an impact over the next 

few years. 

The industrial research programme also contributes 

to Scania’s strategic recruitment of expertise. Of approximately 

25 doctoral students who are participating in or 

have completed their postgraduate studies, all are still 

working at Scania after having received their degree. 

Road safety 

Safety work has a long tradition at Scania and for many 

years has been integrated into all development. Today 

Scania is a pacesetter in accident-prevention and injurylimiting 

vehicle technology and is working towards international 

harmonisation of road safety improvements. 

Standardised working method 

Research and development work has been adapted to 

the concepts behind the Scania Production System. 

One objective of this system is to develop methods for 

designing and testing in a more efficient way. Continuous 

improvements will streamline work processes and allow 

more time to be used for creativity and innovation. 

Environmental priorities in 

development work 

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

and development work. By weighing in the environmental 

aspects in product development work, the environmental 

impact of the product can be reduced throughout 

its life-cycle. Better fuel consumption as well as 

reduced exhaust emissions and noise are always in the 

spotlight. 

Development of new or improved products usually 

leads to better environmental performance. Future legal 

requirements for products play a major role in development 

work. These legal requirements are often imposed 

for environmental or road safety reasons. 

23

Concept development 

Scania’s product engineers work with both 

facts and intuition to satisfy the future needs 

of the transport industry. One way of confirming 

how new solutions are perceived by 

users and decision-makers is by using concept 

studies. 

As one of the leading companies in its industry, Scania 

regards as self-evident that it should participate in and 

influence the development of the heavy trucks and 

buses of the future. 

But product development work is also an expensive 

activity. Before a new product is introduced, it is thus 

important to analyse market interest and potential. 

Using the capabilities of design to portray and shape 

thoughts and needs, concept development is an 

important element of creating future Scania products. 

Two concrete examples of how Scania works with concept 

development were presented during 2002. 

Scania eXc 

Truck manufacturers must think along new lines when it 

comes to designing and equipping future cabs for very 

long journeys, for example in the case of intercontinental 

transport services. The Scania eXc interior concept 

is a truck with an extra long sleeper cab and a substantially 

larger living area than conventional truck cabs. 

The concept was developed by Scania’s styling and 

ergonomics department on the basis of various customer 

clinics. These clinics indicate that there is a difference 

between how drivers live in their vehicles today 

and how they would prefer to live. 

Scania eXc is a concept that shows how future cabs for very long distances could be designed and equipped. 

Within the framework of Scania’s unique modular system, 

the cab was lengthened by 1,300 millimetres, 

which is sufficient to create a roomy living space behind 

the driver’s seat. The cab contains a bed, an armchair, 

a small kitchen, a wall-mounted flat screen television 

set and generous storage spaces. 

Scania STAX 

Scania’s concept study on future bonneted trucks has 

two purposes. One is to study customer interest in 

advanced design aimed at improving the appearance 

of the truck and raising the status of hauliers. The other 

is to study how safety aspects are evaluated. The bonneted 

truck concept combines tradition and new thinking: 

Scania’s own long tradition of bonneted trucks and 

more futuristic impulses. The sweeping and eye-catching 

lines of the Scania STAX might serve as an image 

creator for transport companies in 10–15 years. 

At the same time, Scania wants to study whether 

the hauliers of the future are prepared to sacrifice some 

of their cargo volume and payload capacity for a truck 

with superior driver comfort and with various safety 

features such as deformation zones and underrun 

protection. 

24

Modularisation – a way of thinking 

Scania’s customers are found in more than 

100 countries. A modular global product 

range enables Scania to respond to a great 

diversity of customer needs and to tailor 

vehicles that fit the purposes they will be 

used for. 

The modular system 

The core of Scania’s modular system 

is the standardised connection 

points, or interfaces, between 

different component series. Using 

these, any vehicle can be tailored 

to the customer’s special needs and 

wishes. 

However, customer needs are not the only thing that governs 

the diversity of the modular system. Scania’s product 

engineers must also be able to foresee future needs. New 

technology, new materials and new laws are constantly 

changing the conditions in which today’s transport companies 

operate. Generally speaking, there is a trend 

towards lower vehicle weight, lower operating costs and 

longer service life. 

The development of the modular product range began as 

far back as the 1940s. Today it is a cornerstone of Scania’s 

operations, and the modular philosophy is well established 

in the company. 

Component series and performance stages 

The modular system is based on creating a large number 

of possible combinations with as few components as 

possible, all in order to provide the customer with an 

optimal product. Based on the specific needs of the 

customer, Scania vehicles are put together from a ‘toolbox’ 

consisting of component series divided into different 

performance stages. The number of performance stages 

for a component series is carefully balanced against the 

performance needs of different customer groups. Within 

each performance stage, design of the component is 

optimised, for example in terms of strength, weight and 

quality, all depending on the vehicle’s field of application. 

Quality 

To the customer, quality is ultimately a matter of availability 

and reliability. Vehicles are often used round-the-clock, 

seven days a week. A stoppage, whether due to service 

or repairs, is increasingly costly to the customer. The 

modular product range makes it easier to adapt vehicles 

to their transport task, as well as to plan service and 

preventive maintenance. Since the various modules fit 

together, it is easier to work with improvements without 

having to change all the other components. This increases 

the certainty of achieving the desired levels of quality and 

simplifies the task of making continuous improvements. 

25

Production 

Scania has a global production system in 

which all its production units in the world are 

integrated. As a result, customers enjoy faster 

deliveries and Scania gains flexibility and 

greater cost-effectiveness. 

The need for transport services increases with economic 

growth. Usually there are no alternatives to 

trucks and buses. Meanwhile the truck industry is consolidating, 

which implies increased opportunities for the 

remaining manufacturers. Scania has benefited from all 

of this and grown rapidly. Due to continuous productivity 

improvements, this growth has been possible with 

approximately the same number of employees and 

relatively limited investments. 

Global production 

Changes in volume requires greater flexibility in production. 

For this reason, Scania has co-ordinated all its 

production units worldwide. 

Today Scania has identical parts and components 

at all production units. Due to Scania’s global quality 

and environmental standards as well as the shared production 

system for all units, it is of no significance to 

the customer where a Scania is manufactured. 

To an increasing extent, Scania delivers products 

from the production unit that is the most cost-effective 

in relation to the customer, regardless of what market 

the product is intended for. A global production network 

also creates opportunities to effectively expand 

Victor R. Abbatepaolo manufactures rear axle gears at Scania’s 

production plant in Tucumán, Argentina. 

the number of possible specifications by having more 

modules in the total system, thereby tailoring the technical 

content to different markets. 

Restructuring of operations 

In order to increase economies of scale, in recent years 

Scania has restructured its operations. The task of concentrating 

European component manufacture began as 

early as 1996. Aside from concentrating cab production 

in Oskarshamn, engine production has been centred 

in Södertälje and axle production in Falun. A corresponding 

concentration process has been implemented 

in Latin America, where cab, axle and engine 

manufacture as well as bus and truck assembly have 

been gathered in São Paulo, Brazil, while production of 

gearboxes and rear axle gears occurs in Tucumán, 

Argentina. 

After transferring its cab production from the 

Netherlands, since the mid-1990s Scania has invested 

around SEK 1.5 billion in the Oskarshamn plant, of 

which a sizeable proportion is having positive environmental 

effects. This is one of the largest single investments 

in production that Scania has ever carried out. 

In order to benefit from synergies between bus 

and truck chassis, during 2002 Scania co-ordinated 

development, manufacture and marketing in Södertälje, 

thereby making its bus and coach business more competitive. 

A separate company, Omni Katrineholm AB, 

was established for bus bodybuilding operations. This 

company is wholly owned by Scania and is responsible 

for development, production, purchase and commercial 

matters related to Scania’s own bus bodies. The new 

company’s sphere of responsibility includes bodybuilding 

operations in Sweden, Poland and Russia. 

On 30 June, Scania ended truck assembly at Sfiupsk, 

Poland, opening up greater capacity for bus bodybuilding. 

During the year, Scania began bus bodybuilding in 

St. Petersburg for the Russian market. 

Production in Europe 

During the year, Scania produced a total of 39,470 

(40,023) vehicles in Europe, of which 37,052 (37,399) 

were trucks and 2,418 (2,624) were buses. 

Productivity, measured as the number of trucks 

manufactured divided by hours worked, rose by 5 percent. 

The workforce at Scania’s European production 

units amounted to a total of 7,582, with 71 percent 

26

working in Sweden, 22 percent in the Netherlands 

and 7 percent in France. The proportion of employees 

on short-term contracts declined during 

the year. 

The pay level rose by 3 percent in Sweden, compared 

to 4 percent in the Netherlands and 4 percent 

in France, calculated in local currency. 

Depreciation reached SEK 1,143 m. (1,122). 

Capital expenditures in production operations 

totalled SEK 1,629 m. (1,103). 

Production in Latin America 

Due to the market situation in Latin America, production 

volume was low during 2002, especially during 

the first three quarters. Late in the year, volume 

increased as local markets began to recover, while 

deliveries to other parts of the world rose. 

Increased local content in Scania products and 

weakened currencies in Brazil and Argentina contributed 

to lower production costs in Latin America. 

The production workforce was reduced by 250 

employees by means of efficiency-raising measures 

and as an adjustment to lower volume. 

Procurement 

Scania’s procurement operations are based on longterm, 

open relationships with suppliers. Key suppliers 

join the development and production process at 

an early stage and participate in operations in the 

same way as Scania’s own units. 

At the end of 2002, Scania had approximately 

800 suppliers of direct material, of which 550 in 

Europe and 250 in Latin America. 

A global procurement organisation 

Scania has a global supplier strategy. Many key suppliers 

around the world are part of a network that provides 

all production plants in Europe and Latin America 

with components. This is possible because Scania has 

the same quality, environmental and production standards 

worldwide. 

Joint improvement effort 

By sharing its experience, Scania helps suppliers to 

become more efficient in such fields as logistics, elimination 

of waste and quality improvements. This collaboration, 

using Scania Production System working 

methods as a model, began with a few suppliers in 

2000. Today the programme includes more than 20 key 

suppliers. These continuous improvements increase 

the competitiveness of both Scania and its suppliers. 

Quality and delivery assurance 

Quality and delivery assurance are fundamental factors 

in choosing suppliers. During 2002, Scania trained a 

large number of suppliers in the QS 9000 quality programme. 

The company’s procurement rules also 

specify standards of business ethics and social commitment. 

E-procurement 

During 2002, Scania introduced Easy-to-Buy in its 

Swedish operations. This is an e-procurement (Internet 

purchasing) system, which streamlines the indirect 

materials procurement process. Continued implementation 

of the system will occur during 2003. 

Scania’s global production system 

Scania has production facilities in Europe and Latin 

America as well as assembly plants in Africa, Asia and 

Europe. The head office and product development are 

based in Södertälje. Altogether, Scania is represented 

in about 100 countries through 1,000 local distributors 

and 1,500 service points. 

PRODUCTION FACILITIES 

Sweden (number of 

employees) 

Södertälje (5,900) 

Production of components, 

engines, trucks and bus 

chassis. 

Falun (650) 

Production of axles. 

Oskarshamn (2,000) 

Production of cabs. 

Sibbhult (480) 

Production of gearboxes. 

Omni Katrineholm AB 

Katrineholm (250) 

Production of bus bodies. 

Ferruform AB 

Luleå (750) 

Production of frames and 

axle housings. 

Argentina 

Tucumán (580) 

Production of 

gearboxes and rear 

axle gears. 

Brazil 

São Paulo (2,100) 

Production of engines, 

axles, cabs, trucks and 

bus chassis. 

Mexico 

San Luís Potosí (60) 

Production of 

bus chassis. 

ASSEMBLY PLANTS 

Estonia 

Kenya 

Malaysia 

Morocco 

South Africa 

France 

Angers (500) 

Production of trucks. 

The Netherlands 

Zwolle (1,450) 

Production of trucks. 

Poland 

Sfiupsk (250) 

Production of bus 

bodies. 

Russia 

St. Petersburg (100) 

Production of bus 

bodies. 

Thailand 

Tunisia 

27

Environmental performance in production 

The production system 

Energy use 

Water use 

Chemical use 

18 

16 

14 

12 

10 

8 

6 

4 

2 

MWh per 

vehicle 

Target 

for 2004 

Total, 

GWh 

700 

600 

500 

400 

300 

200 

100 

0 0 

98 99 00 01 02 04 

During 2002, energy consumption 

totalled about 590 GWh, equivalent 

to some 13,000 kWh per vehicle. 

24 

22 

20 

18 

16 

14 

12 

10 

Cubic metres 

per vehicle 

8 

6 

4 

2 

0 

Target 

for 2004 

98 99 00 01 02 04 

Total, cubic 

metres 

1,000,000 

900,000 

800,000 

700,000 

600,000 

500,000 

400,000 

300,000 

200,000 

100,000 

0 

During 2002, water consumption was 

about 580,000 cubic metres, equivalent 

to 13 cubic metres per vehicle. 

Oils/lubricants 

Process oils/ 

emulsions 

Degreasing agents 

Paint, 

water-based 

Paint, 

solvent-based 

Powder paint 

Rust-proofing agents 

Solvents 

Foundry chemicals 

Other chemicals 

Cubic metres 0 100 200 300 400 500 600 700 

The consumption of chemicals in 2002 was 

about 3 ,900 cubic metres, equivalent to 

87 litres per vehicle. 

The Scania Production System forms a basis 

for improvement efforts at the production 

units. The values, principles and priorities that 

govern working methods are the same regardless 

of whether production takes place in 

Europe, Latin America or some other part of 

the world. New solutions that are developed, 

for example, in an improvement team at the 

assembly line in São Paulo are later easily 

implemented by colleagues at the production 

units in Zwolle, Angers and Södertälje. 

Carbon dioxide emissions related 

to energy use 

Carbon dioxide 

Energy use emissions, 

GWh ktonnes 

2002 1996 2002 1996 

Electricity 350 360 20 23 

District heat 50 130 3 9 

Fossil fuels 190 200 49 51 

Total 590* 690* 72 83 

Per vehicle 13,000 kWh 1.6 tonnes 

* Subtotals and totals are rounded to multiples of ten. 

In 2002, carbon dioxide emissions from Scania’s 

production amounted to 1.6 tonnes per vehicle, 

or a total of 72,300 tonnes. 

Wastes sent to landfills 

200 

150 

100 

kg per 

vehicle 

50 

0 

Target 

for 2004 

98 99 00 01 02 04 

Total, 

tonnes 

9,000 

8,000 

7,000 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

Wastes sent to landfills during 2002 totalled 

about 3,500 tonnes, or 78 kg per vehicle, 

excluding foundry sand. 

0 

Emissions of organic solvents 

14 

12 

10 

kg per 

vehicle 

8 

6 

4 

2 

0 

Target 

for 2004 

98 99 00 01 02 04 

Total, 

tonnes 

500 

400 

300 

200 

100 

In 2002 organic solvent emissions from 

painting/rust-proofing totalled some 

300 tonnes, or 6.7 kg per vehicle. 

0 

The Scania Production System (SPS) has been developed 

at the company’s own production workshops. 

Other parts of Scania’s operations besides pure production 

units also apply to the concepts behind SPS. 

Scania’s research and development work is being streamlined 

according to the same principles, and the global 

service network is next in line. More and more of Scania’s 

suppliers are also beginning to use this method-based 

working system. 

SPS has played a major role in the dramatic productivity 

improvements at Scania in recent years. In 1985 the 

company manufactured 1.6 trucks per employee at its 

production units per year. By 2000, the figure had risen 

to 4.8. 

SPS is based on Scania’s three core values: 

• Putting the customer first. 

• Respecting the individual. 

• Quality – eliminating waste. 

28

The Scania Production System is based on 

four main principles. 

Standardised working method 

– the normal situation 

To ensure that Scania’s products maintain high, uniform 

quality, work processes have been standardised and 

documented. Tasks are performed in a specific way, at a 

specific pace and with an even, balanced flow throughout 

the production chain. In the Scania Production System 

(SPS), this is called the “normal situation”. 

Doing it right the first time 

Since work processes are controlled visually, with visible 

buffers and follow-up on bulletin boards, what is normal 

or abnormal becomes very clear. Direct feedback to the 

person who caused a deviation allows it to be acted upon 

quickly, helping to create a quality-assured work process. 

Consumption-controlled production 

Customer demand determines how many trucks, buses 

or engines will be manufactured. It is also the customer 

who determines when production will begin. This principle 

permeates the entire Scania production chain, from the 

customer’s order to the local sales company through production 

and assembly to the final product that is ready 

for delivery. 

Unpainted cabs on their way in for priming at Scania’s new paintshop in Oskarshamn, Sweden. Here all work takes place according to the Scania 

Production System. 

Continuous improvements 

The overall objective of the Scania Production System is 

to generate continuous improvements, where different 

production plants can learn from each other worldwide. 

By continuously discovering and eliminating waste, the 

resulting liberated resources can be applied to other 

productive tasks. 

More than 1,000 improvement teams 

The most important success factor in the Scania 

Production System is the work of the improvement 

teams. Worldwide, Scania now has more than 1,000 

such teams in which fitters and equipment operators use 

their knowledge, professional skills and problem-solving 

29 

talent to make continuous improvements. Challenging 

and improving the existing processes is part of the daily 

work of these teams. The goal is to find the easiest 

flow and the easiest method for each situation in their 

daily work. This has greatly increased motivation and 

dedication on the job.

THE ENVIRONMENT 

The environment 

Respect for the environment is a prioritised, 

integral part of all activities at Scania. The 

guiding principle is to do the right thing from 

the beginning, with the overall purpose of 

reducing the impact of products on the 

environment throughout their life-cycle. 

Integrated environmental work 

Environmental work is integrated into Scania’s operations 

and has the same importance and weight as 

quality, training and economic issues. All managers 

have environmental responsibility in their operating 

area. 

The environmental organisation works together 

in a network, where the entire Scania value chain is 

represented. Common issues are prepared by the 

Scania Environmental Committee, where environmental 

coordinators from various operations meet 

under the leadership of the Quality and Environment 

department. Through the organisation, there are 

appointed environmental coordinators with advisory 

and supportive tasks. 

Beyond its continuous financial reporting, Scania 

conducts annual follow-ups of such items as raw 

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

and auditing of Group-wide environmental targets are 

also carried out every year. Actions and results are 

presented in respective sections of the Annual Report 

and on the Scania website. 

Scania’s new paintshop in Oskarshamn has a substantially higher 

capacity, but with a lower environmental impact, than the older 

paintshops that it replaced.

The highest decision-making level when it comes to 

environmental issues is the Scania Executive Board, 

which makes strategic environmental decisions as well 

as establishing and following up overall environmental 

matters. 

Certified environmental management 

system 

All of Scanias production facilities are certified according 

to ISO 14001 international standards. This certification 

includes development resources, production 

units and corporate marketing staff units. An updated 

audit will be implemented during 2003. 

The task of integrating the sales and service organisation 

in the environmental management system is 

continuing. At the end of 2002, 12 local sales and 

service companies in various European countries were 

certified. 

Environment and economics 

During 2002, Scania’s costs for raw materials, chemicals, 

energy and water totalled SEK 1,500 m., which 

was equivalent to about 3 percent of Scania’s sales. 

Transport expenses amounted to SEK 1,275 m., that is, 

3 per cent of sales. 

Emissions of carbon dioxide from Scania’s production 

plants totalled 72.3 ktonnes. In relation to Scania’s sales, 

this represented 1.6 g/SEK. Emissions per vehicle produced 

rose compared to the year before. This was due to 

the smaller number of vehicles produced, while the latest 

environmentally related investments have not yet had 

time to have an effect on the figures. 

Efforts to decrease climate-affecting emissions are 

made with the support of the principle of continuous 

improvements and Scania’s position on the climate 

issue, 

Environmental investments 

The conventional definition of an environmental investment 

is an investment carried out only for environmental 

reasons and aimed at reducing external environmental 

impact. This definition follows, among other 

things, the European Commission’s recommendations 

on voluntary environmental reporting. 

An investment is usually motivated by several different 

reasons, of which environmental impact may be 

one. Scania takes the environment into account when 

making investments, instead of making corrections 

afterwards with filters and separate cleaning equipment. 

With the investment strategy that Scania has 

chosen, the effect in terms of environmental improvement 

per krona of spending is good. This means that 

Scania does not regard large environmental investments 

according to the conventional definition as 

goals in themselves. 

During 2002, Scania’s investments in property, 

plant and equipment totalled SEK 2,396 m., of which 

SEK 4.5 m. was classified as environmental investments. 

A large investment that also is of major positive 

importance to the environment is the new paintshop at 

the cab factory in Oskarshamn, Sweden. 

New topcoat paintshop for cabs 

Since the beginning of 2002, all cabs for Scania’s 

production units in Europe have been manufactured 

Scania’s Environmental Policy 

As a global manufacturer and distributor of heavy commercial 

vehicles, engines and related services, Scania is 

committed to develop products that pollute less and 

consume less energy, raw materials and chemicals during 

their life-cycle. 

In order to achieve this: 

• we strive to maintain a lead in commercially applicable 

technologies 

• we work well within legal demands and promote 

internationally harmonised, effective environmental 

requirements 

• we prevent and continuously reduce the environmental 

impact through development of products, services and 

production processes 

• we take the environmental aspects and objectives 

into account in our daily work 

• we have an open and regular communication with 

our interest groups regarding our environmental 

work 

By this we contribute to economical and ecological 

advantages for our customers and for society. Proactive 

environmental work is therefore of vital importance to 

Scania. 

Environmental work is an integrated element in Scania’s 

operations. For this reason, environmental reporting is 

being done in the Annual Report, instead of in a separate 

Environmental Report. Read more about Scania’s environmental 

work at: www.scania.com 

31

in Oskarshamn. The cabs are delivered in as finished 

form as possible to each respective assembly location. 

This is why a new painting facility was completed 

during 2002. The facility, which is designed to handle 

up to 300 cabs per day, replaces two older paintshops. 

The new paintshop has a considerably higher 

capacity, with lower environmental impact, than the 

older paintshops. 

With the new paintshop, more and more cabs can 

be delivered painted in colours adapted to the specific 

wishes of the customer, that is, in ‘customer colours’. 

This painting is now performed right in the factory, 

where the environmental impact can be minimised. 

Discharge from topcoat paintshop 

kg/VOC 

per cab 

16 

14 

12 

10 

8 

6 

4 

2 

0 

88 

89 

90 

91 

92 

93 

94 

95 

96 

97 

98 

99 

00 

01 

02 

Number 

of cabs 

50,000 

40,000 

30,000 

20,000 

10,000 

New painting systems reduced organic solvent emissions by about 

75 percent during the 1990s. When the new paintshop goes into 

full operation, emissions can be limited to less than 1 kg/cab. 

0 

This type of painting was previously performed in small 

paintshops that were usually not capable of reducing 

environmental emissions as much. 

Far-reaching measures have been implemented to 

decrease solvent emissions from painting. Priming is 

done using powder paint, and final painting with waterbased 

paints. Introduction of the new painting systems 

has so far enabled Scania to decrease the use of 

volatile organic compounds (VOCs) by about 75 percent 

since the early 1990s. In the new topcoat shop, 

the target is to limit emissions to less that 1 kg per 

cab. The small amount of solvent used, mainly glycols, 

has lower environmental impact than the previously 

used xylene. The new paintshop also reduces the 

quantity of paint wastes and wastewater that must be 

treated. The system is entirely closed, and the paint 

waste is used for energy recovery. 

Environmental permits 

The operations at Scania’s facilities require permits 

that comply with national legislation. The environmental 

impact from these facilities consists mainly 

of emissions to air, discharges to water, waste products 

and noise. In addition to legal requirements, 

there are also internal requirements, for example in 

compliance with Scania’s policy and rules on the 

use of chemical substances. 

In Sweden, Scania carries out operations at four 

production plants plus the wholly owned subsidiaries 

Ferruform in Luleå and Omni in Katrineholm. All these 

plants have permits in compliance with Swedish environmental 

legislation. 

During 2002, new conditions were announced for 

wastewater treatment in Södertälje. Scania applied 

for a new permit to increase production and for a 

new paintshop at the cab factory in Oskarshamn. The 

application is beeing processsed by the authorities. No 

violations of the existing threshold limit values occurred 

and no incidents were reported that caused any significant 

environmental impact and thereby led to clean-up 

expenses. 

Environmental risk management 

Scania’s environmental risk management guidelines 

are mainly intended to prevent environmental damage. 

Soil and groundwater inventories have been performed 

at more than half of production facilities. At the Meppel 

plant in the Netherlands, where production ended in 

November 2002, the planned programme for the 

decontamination of boron-polluted soil will be carried 

out beginning in 2003 at a cost of SEK 2 m. The boron 

pollution is attributable to operations that took place 

before Scania established production on the site. 

Emergency preparedness for environmental accidents 

is an integral part of a preparedness plan. 

Improvement of environmental work 

Cross-functional co-operation is continuously improving. 

During 2002, efforts to develop common procedures 

and internal benchmarking underwent further 

refinements. For example, the environmental work in 

Scania’s sales and service organisation intensified. 

32

Scania and the climate issue 

The prospect of a change in the global climate due to anthropogenic 

emissions of carbon dioxide and other greenhouse gases 

is a key issue. Despite uncertainties regarding the actual magnitude 

of climate changes, the economic, social and environmental 

consequences may be unforeseeable. Scania shares its concern 

about the complexitiy of this issue with the public, national governments 

and other members of the business community. 

Scania is working to reduce its net emissions of carbon dioxide 

into the atmosphere by: 

• improving the fuel efficiency of our products 

• advising and encouraging our customers to use our products 

in a fuel-efficient way 

• improving our own use of energy in the production process 

• continuing our research and development relating to the use 

of alternative fuels 

• encouraging research and use of non-fossil replacement fuels 

Longer vehicle combinations may reduce emissions 

A harmonisation of national laws in the EU, permitting vehicle combinations 

with a length of 25.25 metres, would reduce environmental 

impact and increase transport efficiency. This proposal was presented 

by Scania’s President and CEO, Leif Östling, at a seminar organised by 

the German automotive industry organisation VDA in July 2002. 

The EU’s current legislation concerning vehicle dimensions allow 

truck-trailer and tractor-semitrailer rigs with a maximum length of 18.75 

and 16.5 metres, respectively. In both Sweden and Finland, however, the 

nationally legislated maximum length amounts to 25.25 metres. 

Compared to shorter rigs, vehicle combinations of 25.25 metres in 

length reduce the amount of fuel consumed and thus carbon dioxide 

emissions by 15–20 percent per tonne-kilometre transported. Better 

Environmentally related expenses as a 

proportion of Scania’s sales 

Transport services SEK 1,275 m. 

Raw materials, SEK 1,220 m. 

Energy, SEK 157 m. 

Chemicals, SEK 116 m. 

Water, SEK 7 m. 

fuel consumption also results in smaller emissions of legally regulated 

exhaust components such as particulates and nitrogen oxides. 

The operating economy of the haulier naturally benefits as well, since 

about one-third of a transport company’s annual expenses are for 

fuel. 

Assuming an unchanged transport volume, the concept of longer 

vehicle combinations reduces the number of heavy vehicles on the 

road by 20 percent. This means both a reduced risk of accidents and 

less traffic congestion. 

Environment and economics 

Summary of environmental performance, 

Scania production organisation 

Year 2002 2001 2000 

Number of vehicles 45,145 48,151 55,581 

manufactured 

Sales, SEK m. 


Raw material consumption 

Per vehicle, kg 3,600 3,200 3,200 

Total, tonnes 164,000 156,000 180,000 

Total cost, SEK m. 1,220 1,230 1,470 

Chemical consumption 

Per vehicle, cubic metres 0.087 0.088 0.086 

Total, cubic metres 3,900 4,200 4,800 

Total cost, SEK m. 116 110 120 

Energy use 

Per vehicle, MWh 13 12 11 

Total, GWh 590 570 580 


Carbon dioxide emissions 

Per vehicle, kg 1,600 1,400 1,300 

Total, tonnes 72,000 69,000 71,000 

Water use 

Per vehicle, cubic metres 13 12 11 

Total, 1,000 cubic metres 580 570 600 


Solvent emissions* 

Per vehicle, kg 6.7 8.0 8.6 

Total, tonnes 300 390 480 

Management of residual materials** 

Recycling: 

Per vehicle, kg 1,050 960 940 

Total, tonnes 47,000 46,000 52,000 

Revenues, SEK m. 19 16 18 

Sent to landfills/other 

off-site disposal: 

Per vehicle, kg 200 180 200 

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


* From painting/rust-proofing 

** Excluding foundry sand, about 27,600 tonnes. 

33

MARKETS AND DEMAND 

34

Global demand 

The demand for heavy trucks declined 

during 2002. However world production 

rose by 10 percent to 540,000 

(490,000). Scania was the world’s 

fourth largest heavy truck make in the 

world with a share of 7.7 (8.9) percent. 

World production of buses in Scania’s 

segment – city and intercity buses 

and tourist coaches – totalled 65,000 

(70,000) units. 

Scania’s deliveries of industrial and 

marine engines totalled 3,191 (4,672) 

units. 

World production of trucks 

above 16 tonnes 

Units 

700,000 

600,000 

500,000 

400,000 

300,000 

200,000 

100,000 

0 

93 94 95 96 97 98 99 00 01 02 

World production of buses 

above 12 tonnes 

World production of heavy trucks 

The ten largest makes 

Units 

80,000 

Make 2002 2001 2000 

Mercedes-Benz 69,100 65,000 74,100 

Volvo 68,200 63,800 79,100 

Freightliner 53,900 39,300 70,600 

Scania 41,400 43,500 51,400 

MAN 40,100 42,100 43,500 

Iveco 31,800 31,500 31,700 

Renault 31,700 32,900 34,500 

International 30,900 23,900 35,900 

DAF 28,700 30,400 28,400 

Kenworth 25,800 14,200 22,600 

70,000 

60,000 

50,000 

40,000 

30,000 

20,000 

10,000 

0 

93 94 95 96 97 98 99 00 01 02 

35

Europe 

During 2002, the demand for heavy trucks 

in Europe was somewhat higher than 

expected. Scania increased its bus sales 

in several of the most important markets. 

Trucks in western Europe 

The macroeconomic outlook gradually deteriorated 

during the year. In spite of this, the total market in 

western Europe exceeded most forecasts. These were 

based on earlier economic downturns and uncertainty 

after the terrorist attacks of 11 September 2001. 

In several major markets, sales were bolstered by 

tax breaks and other means. Sizeable exports of 

newer used trucks to eastern and central Europe also 

helped keep new truck sales up in western Europe. 

Registrations fell by 10 percent to 212,000 heavy 

trucks, compared to 235,000 during 2001 and 

244,000 during 2000. 

Scania’s share of the western European market 

was 13.5 percent, nearly identical to its share the year 

before. 

Demand in Germany and several neighbouring 

markets stagnated during the year, due to slower 

growth in the German economy. In Germany, Scania 

maintained its market share from the year before. The 

Netherlands, with many international transport companies, 

was also affected by economic developments 

in Germany. 

In Great Britain, demand was not affected to the same 

extent by the slower economic growth rate. Scania 

increased its market share in a total market that 

decreased slightly. 

The major markets in southern Europe exceeded 

forecasts for 2002. In Italy, government investment 

grants helped increase heavy truck sales somewhat. 

In Spain, where the market declined marginally, Scania 

increased its market share. 

The truck market in France was characterised by 

an increase in the number of large transport companies. 

By maintaining its volume in this customer 

segment while strengthening its position among 

smaller transport companies, Scania managed to 

defend its market share. 

Stefan Bader 

Hermann Dahm Transport GmbH 

Garmisch-Partenkirchen, Germany 

For two years, Stefan Bader has driven his Scania with Scania 

Opticruise, and he is very pleased. He transports mineral oil 

for the freight forwarding company Dahm Transport GmbH 

and drives 

primarily in the German Alps, especially in the region around 

Garmisch-Partenkirchen. 

“Scania Opticruise is fantastic. I often drive on small 

mountain roads and supply private households with oil. 

Opticruise makes driving much easier in the steep uphill and 

downhill stretches. My trips become less stressful for me, 

especially during the winter months. I also feel safe with my 

cargo. To me and my boss, safe transport service means 

everything.” 

36

Scania-owned sales and service network 

The sales of service-related products accounts for an 

increasingly large share of Scania’s sales. It also helps 

to make the company’s operations less dependent on 

the cyclical upturns and downturns of truck sales. 

Scania continued to strengthen and expand its own 

sales and service network in Europe. In the EU, ‘block 

exemptions’ for the motor vehicle sector were revised. 

These changes, which went into force in October 

2002, did not affect Scania during the year. In the long 

term, the reform may lead to some restructuring of the 

distribution network and to increased competition in 

the service market, but primarily in the car industry. 

In Newcastle, Great Britain, traditional double-deckers are facing competition from articulated Scania buses, 

run by the bus company Go North East. 

Trucks in central and eastern Europe 

In central and eastern Europe, local manufacturers are 

being squeezed by imported new and used trucks 

from western Europe. Scania has a sizeable portion 

of this market. 

As a result, the utilisation level of service workshops, 

especially in Russia but also in the rest of eastern 

Europe, increased sharply. Scania continued to 

invest in expanding its service network in the region 

and is continuing that work during 2003. Among 

others, a service workshop opened in Chabarovsk, 

eastern Siberia, on the border with China. 

In Russia, Scania’s specially adapted truck concept 

made its breakthrough during 2002 and now accounts 

for about one fourth of new truck sales. This truck, 

which is tailored especially for the Russian market, 

was named Truck of the Year in the imported heavy 

truck category. 

Both in Russia and in the Baltic countries, 

Scania should reach the same strong position as 

in Scandinavia. 

In central Europe, demand rose considerably in 

most markets during 2002. 

Buses in Europe 

The total market for heavy buses in Europe declined 

during 2002. The downturn was especially noticeable 

in large markets like France, Germany and Italy. In 

spite of this, Scania’s bus sales developed favourably 

in several important markets. Order bookings increased 

during the year, especially in the fourth 

quarter. 

Spain, which is traditionally a significant market, 

was Scania’s second largest bus market in 2002 

regarding registrations. In the shrinking Italian market, 

Scania remained successful, especially due to a strong 

range of city buses. Scania increased its sales and 

strengthened its market share substantially. 

In Great Britain, a broader product range and a 

more intensive focus on the city bus segment yielded 

positive results. Order bookings more than tripled in 

a weakly expanding total market. During the year, 

Scania made a number of breakthroughs with new 

37

customers. In the Nordic market, which accounts for 

one-third of Scania’s bus sales in Europe, Scania 

chose to keep prices up. The effect was lower 

volume in most markets. The exception was Finland, 

where Scania strengthened its position and again 

became the market leader. 


So far, the market for industrial and marine engines 

in Europe has proved relatively insensitive to economic 

cycles. Scania’s deliveries rose somewhat 

during the year, to 1,919 (1,906) engines. Among 

others, the Spanish market showed a sharp 

increase. 

During the year, Scania delivered the first marine 

16-litre V8 engines, which were installed in the 

Swedish Sea Rescue Society’s new boat “Gad 

Rausing”. 

Tatiana Kotovaja 

Baltikstar 

St. Petersburg, Russia 

Baltikstar is a privately owned public 

transport company in St. Petersburg. The 

company previously operated about 100 

minibuses. It recently bought seven Scania 

OmniLink buses, with bodies built at 

Scania’s bus factory in St. Petersburg. 

Among its routes, Baltikstar provides 

service along the famous boulevard 

Nevsky Prospekt. Every year the company 

carries two million passengers in the 

St. Petersburg area. Baltikstar’s Managing 

Director is Tatiana Kotovaya. 

“When we expand our business, we 

always listen to what our customers are saying. It became increasingly 

clear that they wanted larger and more efficient vehicles. After thorough 

market studies, our choice was Scania OmniLink, since Scania offered us 

the best solution. The high quality level and environmental factors played 

a large role in our choice of buses. 

Today we are really proud to be able to serve central St. Petersburg 

with such beautiful buses, and we look forward to continuing to expand 

our operations together with Scania.” 

Registrations of trucks and buses 

TRUCKS above 16 tonnes 2002 2001 2000 

Western Europe 

total 211,687 234,855 243,669 

of which Scania 28,524 31,787 37,906 

Great Britain 31,055 33,079 32,498 


France 40,483 46,158 47,124 


Germany 43,528 50,926 57,470 


Italy 25,813 24,481 25,526 


Spain 25,512 26,218 25,291 


The Netherlands 11,488 13,655 14,072 


Sweden 4,054 4,261 4,680 


BUSES above 12 tonnes 2002 2001 2000 


total 22,326 23,497 23,529 


Spain 2,247 2,544 2,207 

of which Scania 394 423 364 

Italy 2,969 3,843 3,044 


Great Britain 2,600 2,826 3,239 


Finland 269 213 366 


Sweden 896 816 1,039 


38

Registration of trucks 


Central and eastern Europe 

total 18,104 16,769 11,330 


Russia* 1,877 1,415 521 


Registration of trucks above 

16 tonnes in western Europe 

Units 

250,000 

200,000 

150,000 

Czech Republic 3,773 3,363 3,037 


100,000 

Poland 3,736 3,327 3,701 


50,000 

Hungary 2,004 1,551 1,272 


0 

93 94 95 96 97 98 99 00 01 02 

* Imported new trucks from Europe, Japan and the US. 

Market development, heavy trucks in western Europe 

Marketshares in % 

30 

Deliveries of Scania trucks 

in western Europe 

25 

Mercedes-Benz 

Units 

40,000 

20 

Volvo 

MAN 

Renault 

Scania 

30,000 

15 

20,000 

10 

5 

DAF 

Iveco 

90 91 92 93 94 95 96 97 98 99 00 01 02 

Mercedes Scania 

Volvo DAF 

MAN 

Renault Iveco 

10,000 

0 

93 94 95 96 97 98 99 00 01 02 

Autoservizi Silvestri transports skiers from 

the hotels of Livigno, Italy to the pistes. 

39

Latin America 

Deliveries of Scania trucks 

in Latin America 

Units 

10,000 

Uncertainty and weak economic growth again 

characterised the Latin American markets 

during 2002. In the long term, however, the 

Latin American market will grow from its 

current very low levels. Important to Scania’s 

long-term profitable growth is that price levels 

are reasonable. Scania will preserve the 

leading position the company has enjoyed 

in the region over the years. 

8,000 

6,000 

4,000 

2,000 

0 

93 94 95 96 97 98 99 00 01 02 

Deliveries of Scania buses 

in Latin America 

Units 

3,000 

2,500 

2,000 

1,500 

1,000 

500 

0 

93 94 95 96 97 98 99 00 01 02 

Political and economic uncertainty continued during 

the year, especially in Argentina, Brazil, Venezuela and 

Peru. Most currencies in the region weakened. The 

slow recovery in the US economy also contributed to 

a less favourable balance of trade, especially in Mexico 

and Venezuela. 

Scania undertook a number of measures in its 

Latin American operations. The largest impact was 

from streamlining, price hikes and increased deliveries 

of components and whole vehicles to markets outside 

Latin America. 

Trucks in Latin America 

Demand fell in practically all markets in Latin America 

during 2002. Scania’s deliveries in the region shrank 

by 41 percent to 3,633 trucks. 

The decline in the Brazilian market was due to the 

fact that Scania was the first truck manufacturer to 

carry out a number of price increases in order to 

restore profitability. Other manufacturers gradually 

followed suit, and Scania’s market share rose during 

the latter part of the year. 

In Argentina, the total market for heavy trucks 

declined by another 38 (60) percent from an already 

low level and reached 813 (1,307) trucks. Scania’s 

registrations fell to 48 (420) trucks, which was 

equivalent to a market share of 5.9 (32.1) percent. 

Buses in Latin America 

Scania’s deliveries of buses in Latin America declined 

by 40 percent to 958 vehicles, largely because Scania 

implemented the same pricing policy as for trucks. 

The main source of satisfaction was Mexico, where 

Scania’s bus business has expanded very rapidly. It 

has only been three years since Scania resumed bus 

sales in the country. Mexico was Scania’s largest bus 

market in the world during 2002 in terms of registrations. 

Most of these buses were in the intercity segment, 

where one out of every four buses sold was a 

Scania. 

In Brazil, where Scania mainly competes in the 

long-distance segment for intercity buses, Scania’s 

sales declined. 

In Argentina, which was previously a major bus 

market, the demand for buses was very weak during 

the year. The buses delivered by Scania maintained an 

international price level. 

Industrial and marine engines in 

Latin America 

The need for generating sets fell sharply when the 

energy crisis that dominated Brazil during some periods 

of 2001 came to an end. During the year, Scania 

delivered 530 (2,149) industrial and marine engines, 

mainly in the contracting sector. 

40



Latin America 

total 34,071 35,285 44,255 


Brazil 16,975 18,046 17,341 


Chile 1,479 1,607 1,651 


Mexico 14,030 13,198 20,914 


Argentina 813 1,307 3,341 

of which Scania 48 420 1,051 

Pedro Luíz de Oliveira 

Rodogrande 

Campo Grande, Brazil 

Pedro Luíz de Oliveira drives far. In a country as large as a 

continent, his truck is his fixed point. 

“I spend more time in my truck than in my home. Many 

times I have week-long trips carrying soybeans on the roads 

in Mato Grosso do Sul, Golás, Minas Gerais and Paraná. 

Then I am glad my boss bought me a Scania.” 

Gilberto Smozinski, part-owner of Rodogrande, regards the 

driver environment as one of several important aspects when 

buying new vehicles. 

“I have worked with Scanias since I began in the transport 

industry in 1975 and have been able to follow market developments 

close at hand. The improvements when it comes to fuel 

economy, safety, reliability and driver comfort have been outstanding 

during these three decades.” 


Latin America 

total 18,717 24,044 23,314 

of which Scania 911 1,461 1,755 

Mexico 8,718 12,009 10,631 


Brazil 9,301 10,833 10,626 

of which Scania 327 853 1,100 

41

Asia, Africa and Oceania 

Scania’s order bookings rose in most markets 

of Asia, Africa and Oceania. The bulk of this 

business was in the Far East, where South 

Korea has again become a sizeable market 

for Scania. 

Trucks 

Scania increased its truck deliveries in Asia, Africa and 

Oceania by 8 percent to 4,828 units. The increase in 

demand was especially strong in South Korea, Australia 

and New Zealand. During 2002, Scania delivered about 

3,500 trucks to the Far East, which was equivalent to 

more than 30 percent of European heavy truck exports 

to the region. 

In South Korea, Scania is by far the largest European 

make. Expansion in South Korea is continuing 

as domestic manufacturers find it increasingly difficult 

to defend their traditionally strong positions. 

During 2002, Scania and the Japanese truck 

manufacturer Hino signed a strategic co-operation 

agreement. Its purpose is to establish a long-term 

business alliance in order to increase the two companies’ 

market coverage. One of the first steps in this 

co-operation concerns Scania tractor units, which 

Hino is beginning to market and sell in Japan during 

2003. Tractor units account for about 5,000 of the 

approximately 45,000 heavy trucks sold on average 

in Japan during one year. 

In the Middle East, Scania increased its sales in 

practically all markets, compared to 2001. The largest 

increase was in the United Arab Emirates, but Saudi 

Arabia and Syria also reached new record volumes. 

The trend in Turkey was positive as well. 

No-Yuoung Myung 

Han Ryu Transport 

Incheon, South Korea 

It is all about availability and fuel economy. For 13 years, No-Yuoung 

Myung has driven trucks to and from construction sites around 

South Korea, heavily loaded with bricks and reinforced concrete. But 

in recent years, a lot has happened in the South Korean transport 

industry and the conditions governing No-Yuoung’s operations have 

changed. 

“Time has become very expensive. It costs me too much to have 

my truck idle. It should work for me as much as possible. That is 

why I changed to a new Scania. It is reliable, and with Scania’s good 

service network here in South Korea I can feel secure. 

With a Scania truck, I also get considerably better fuel economy. 

The price of diesel fuel has tripled in South Korea in the past five 

years. Compared to the Korean trucks I drove previously, today I 

save between 6 and 8 percent on my fuel expenses.” 

42

In North Africa, Scania is the market leader in Morocco 

and Tunisia and appointed a new distributor in Algeria 

during the year. In South Africa, Scania sold its largest 

volume since operations resumed under the company’s 

own management in 1995. 

Buses 

The demand in African and Asian markets was divided 

during the year. In Hong Kong, Malaysia and Taiwan, 

demand fell. In Taiwan, one reason for the decline was 

that the cutback by the authorities of the previously 

introduced stimulus measures. 

Scania’s bus sales in Australia more than doubled, 

thanks to an expanded product range. Among other 

things, Scania sold another 100 environmentally 

adapted gas-powered buses to Brisbane. The order 

was a follow-up of a previous order for 120 buses of 

the same type. 

In Africa, Scania sells buses in more markets than 

it sells trucks. Its bus business often opens doors to 

new markets and provides valuable knowledge about 

the market situation and potential truck customers. 


Scania’s deliveries of industrial and marine engines in 

Asia, Africa and Oceania remained good, increasing by 

about 17 percent to 641 engines, in comparison with 

previous year. In Saudi Arabia, sales rose sharply. 

During the year, Scania began to deliver sizeable 

volumes of engines to new generating set builders in 

South East Asia. The generating sets are mainly sold 

to various markets in the Far East. Sales of engines 

in the South African market remained good. 

Citybus double-deckers from Scania are a familiar sight in Hong Kong, China. 




total 44,046 32,876 49,789 


South Korea 13,833 7,939 7,156 

of which Scania 1,736 1,213 471 

Australia 6,592 5,510 6,202 


South Africa 3,335 2,986 2,541 


Morocco 831 669 668 


New Zealand 1,726 1,434 1,584 




total 2,809 2,491 1,918 


Taiwan 965 1,035 262 


Australia 836 742 792 


Morocco 398 400 522 


43

Customer financing 

Customer financing is a well-established 

field of operations in most of Scania’s main 

markets. 

These activities contribute to the company’s 

overall earnings and growth, while 

strengthening the competitiveness of Scania. 

To meet the needs of customers in new 

markets and increase Scania’s business 

opportunities, a number of new finance companies 

were established during the year. 

Customer financing is an important element of Scania’s 

complete product range. The company endeavours to 

work locally in its Customer Finance operations. Proximity 

to the customer and local know-how makes the pro- 

Continued positive trend 

The income of Scania’s Customer Finance operations 

rose by 11 percent to SEK 308 m. (278). This was 

equivalent to an operating income of 1.22 (1.19) percent 

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

relation to the average portfolio, rose from 0.97 percent 

in 2001 to 1.05 percent in 2002. 

Total financing volume rose to SEK 25,303 m. 

(25,091). During the year, 11,742 (12,109) new trucks, 

407 (458) new buses and 2,953 (2,498) used Scania 

vehicles were financed. The number of contracts in the 

portfolio at year-end totalled 59,472 (54,028). Of the 

total portfolio, 33 percent was operating leases. The 

remaining 67 percent consisted of loan financing and 

financial leases. 

cessing of applications faster and improves the quality 

of credit evaluation. 

Scania’s strategy is to establish its own finance 

companies in markets with sufficient sales volume. In 

other markets, distributors are supported by financing 

solutions from the subsidiary Scania Credit AB. 

Europe 

Scania’s Customer Finance operations in Europe now 

consist of thirteen Scania-owned finance companies. 

In some western European countries, portfolio 

growth halted due to lower sales volume. 

However, growth occurred in the Italian company 

and in Spain, due to a large element of bus financing. 

Operations in central and eastern Europe, which 

take place through the company Scania Credit, continued 

to show good growth. 

In one of these markets, Russia, a finance company 

was established to be able to offer Russian customers 

domestic financing as an alternative to the cross-border 

financing offered via Scania Credit. 

Asia 

Financing operations in South Korea have taken place 

since the beginning of 2002 through a Scania-owned 

finance company. During the year, the company refined 

its financing range. Processes were trimmed and staff 

received further training in order to meet the high 

standards required in this market. 

Latin America 

In the Latin American market, Scania offers financing in 

collaboration with outside lenders. In the uncertain eco- 

Total assets in finance 

companies 

SEK m. 

30,000 

25,000 

20,000 

15,000 

10,000 

5,000 

0 

99 00 01 02 


and net margin 

SEK m. 

300 

nomic situation that has prevailed, Scania assumes a 

limited portion of the credit risk. 

Beyond this, Scania in Brazil offers a customerfinanced 

savings programme, in which customers are 

organised into consortia. Through regular savings in a 

consortium, customers are guaranteed the allocation of 

vehicles within the savings period. During 2002, 42 (37) 

percent of sales in Brazil were made via consortia. 

Risk exposure 

In recent years, Scania has done extensive work to 

ensure that it can handle customer financing risk even 

better. This includes management of credit risks as well 

as financial risks and operational risks. 

Scania’s Customer Finance operations are responsible 

for the credit risks in the group of finance companies, 

while financial risks are managed by Scania at 

200 

100 


Net margin as a 

percentage 

of average 

porfolio 

0 

99 00 01 02 

% 

1.5 

1.0 

0.5 

0 

44

the corporate level. Responsibility for residual value 

guarantees rests with sales organisations. 

As a result of the weak economic situation, during 

2002 there was a stronger focus on credit research as 

well as management of customers that do not follow the 

agreed payment plan. Further resources were allocated 

for this, and proactive monitoring of the credit portfolio 

increased. 

For customers who are not judged capable of fulfilling 

their contractual obligations, Scania makes specific 

provisions for credit risks in its accounts, based on 

an individual assessment of each customer with regard 

to payment capacity and expected future risk. 

In 2002, actual credit losses totalled SEK 142 m. 

(57). Total credit losses including net provisions to 

reserves were equivalent to 0.69 percent of the average 

portfolio. 

At year-end, the total reserve for possible credit 

losses was SEK 409 m. (413), equivalent to 1.6 (1.6) 

percent of the portfolio. 

Future outlook 

In most of Scania’s major markets, local finance companies 

have now been established. The focus will 

continue to be on further development of the services 

included in customer financing. 

Additional refinement of credit management and 

follow-up, as well as efficiency improvements in Scania’s 

procedures and processes, will enjoy priority. This will 

strengthen the role of Customer Finance as the natural 

choice for financing purchases of Scania’s products and 

services. 

Andrzej Olechnicki 

Transport Services, Gdynia, Poland 

Scania’s financing services have helped Andrzej Olechnicki to invest in 

new Scania trucks in his company, Transport Services. Scania’s financing 

package for Transport Services is one of the largest contracts of its 

kind in Poland. The company’s goal is to be the third largest transport 

company in the country within one year. 

“Scania is a strong name in Poland. But here Scania is not the ‘King’ 

but the ‘Queen of the Road’, since a name that ends in ‘a’ cannot be 

masculine. In any case, Scania gives us what we need in our company. 

Take, for example, the fact that our new Scania trucks have 7 percent 

better fuel consumption.” 

Altogether, Transport Services’ 40 Scania trucks carry goods to 25 

different destinations in Europe and Asia. Aside from its own trucks, 

via affiliated companies it controls another couple of hundred trucks in 

Poland. Scania’s financing terms have enabled Transport Services to 

increase its business and make investments in renovating workshops 

and offices. 

“Now we have invested for the future. Soon Poland will become a 

member of the EU and Polish transport companies will increase their 

international traffic. We will be ready then.” 

45

SCANIA SHARE DATA 

Scania share data 

The 2002 stock market year was characterised 

by a continued negative trend on 

world stock exchanges. Both the Stockholm 

All Share Index and the Industrials Index fell 

during the year. 

400 

350 

300 

Share price, Stockholmsbörsen, Scania B shares 

All-share index (SAX) 

250 

On Stockholmsbörsen, the All-Share Index, which measures 

the overall trend on the exchange, fell by 37 percent. 

The Industrials Index, which measures the trend in 

the industrial goods and services sector and includes 

Scania shares, fell by 24 percent. Despite the negative 

trend, however, trading volume on Stockholmsbörsen 

was high in historical terms. 

Scania’s B shares fell by 12 percent during the year, 

closing at SEK 168.50 per share on 31 December. This 

was equivalent to a market capitalisation of SEK 33,450 

m., which made Scania the 18th largest company on 

the exchange. 

200 

150 

125 

About Scania shares 

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

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

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

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

share is SEK 10. 

Scania B shares 

98 99 00 01 02 

Market listing 

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

Series B – have been quoted on the A list of Stockholmsbörsen. 

Volume and trading 

Scania share trading volume remained low, averaging 

107,757 shares changing hands each trading day in 

Stockholm. The turnover rate for B shares was 23 (29) 

percent. For Stockholmsbörsen as a whole, it was 122 

(134) percent. Scania’s shares were affected by the fact 

that the three largest owners tie up 73 percent of the 

shares. Due to limited trading volume, Scania is no 

longer in the “most traded” segment on the exchange’s 

A list. On the New York Stock Exchange, trading in 

Scania’s shares was very low. Since the number of outstanding 

shares (ADRs) is low, the costs of being listed 

on the NYSE are no longer justifiable. The opportunities 

for investors to trade globally in equities have also increased 

significantly in recent years. Scania therefore 

applied for de-listing from the NYSE early in December 

and was de-listed on 15 January 2003. 

Ownership structure 

On 31 January 2003, the number of shareholders in 

Scania was 39,000. The three largest owners – 

Volkswagen AG, AB Volvo and Investor AB – together 

own 80 percent of the votes and 73 percent of the 

capital in Scania. Volvo has stated publicly that 

according to the European Commission’s decision, 

it must divest its holding in Scania before April 2004. 

46

Volvo is not represented on Scania’s Board of Directors. 

Non-Swedish ownership, including Volkswagen AG, 

amounted to 35 percent of votes and 21 percent of 

capital in Scania 

Dividend 

The Board of Directors proposes that the Annual 

General Meeting approve a dividend of SEK 5.50 per 

share for the financial year 2002. Since Scania joined 

Stockholmsbörsen in 1996, the dividend has averaged 

50 percent of net income. 

Beta coefficient 

According to Stockholmsbörsen’s calculations, the beta 

coefficient for Scania’s B shares was 0.63 at year-end. 

This means that on average, Scania shares fluctuated 

less than the average for the exchange. The explanatory 

value for Scania’s B shares was 0.29. This means that 

29 percent of the changes in Scania shares could be 

explained by overall changes on the exchange. 

The ten largest shareholders, 31 January 2003 

% of voting % of 

power capital 

Volkswagen 34.0 18.7 

Volvo 30.6 45.5 

Investor 15.3 9.1 

Wallenberg foundations 4.9 3.6 

Alecta 4.0 2.6 

Industrivärden 1.8 1.5 

Nordea mutual funds 0.9 1.0 

AMF Pension 0.5 0.6 

Insurance company Pensionsgaranti 0.3 0.3 

Lannebo Sweden 0.2 0.4 

Total 92.5 83.3 

Ownership structure, 31 January 2003 

% of % of 

Number of shares shareholders capital 

1– 500 89.8 2.4 

501– 2 ,000 7.7 1.6 

2 ,001– 10 ,000 1.8 1.6 

10 ,001– 50 ,000 0.4 1.9 

50 ,001– 100 ,000 0.1 1.3 

> 100 ,000 0.2 91.2 

Total 100.0 100.0 

Per share data 

SEK (unless otherwise stated) 2002 2001 2000 

Earnings 13.70 5.24 15.40 

Shareholders’ equity 84.66 79.98 78.49 

Dividend 

(2002: proposed) 5,50 3,50 7,00 

Market prices, B shares 

Highest for the year 215.00 243.00 310.00 

Lowest for the year 125.50 132.00 205.00 

Year-end (at closing) 168.50 192.00 210.00 

Price/earnings ratio, B shares 12 37 14 

Dividend payout ratio, % 40 67 46 

Dividend yield, % 1 3.3 1.8 3.3 

Annual turnover rate, 

% (B shares) 23 29 36 

Number of shareholders 39,000 2 39,000 41 ,000 

Average daily number of 

shares traded, 2002 at 

Stockholmsbörsen A 13,275 

B 94,482 

Total 107,757 

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

2 On 31 January 2003 

47

FINANCIAL REVIEW 

Financial review 

Sales 

Sales 

2002 2001 

Number of vehicles delivered 

European operations 39,083 40,626 

Latin American operations 6,105 8,151 

Intra-Group deliveries –1,519 – 446 

Total vehicles delivered 43,669 48,331 

Sales value, SEK m. 


Latin American operations 4,630 5,806 

Intra-Group sales –1,709 –1,089 

Total Scania products 46,140 47,213 

Car operations 1,145 5,852 

Total sales value 47,285 53,065 

During the year, the Scania Group’s deliveries of 

trucks totalled 39,895 (43,659) units, which was a 

decline of 9 percent. Bus and coach deliveries totalled 

3,774 (4,672) units, a decline of 19 percent. 

Sales by product 

SEK m. 2002 2001 

Trucks 27,184 29,139 

Buses 3,991 4,701 

Engines 464 608 

Service-related products 10,603 10,151 

Used vehicles etc 5,073 4,498 

Revenue deferral, vehicles –1,175 –1,884 


Car operations 1,145 5,852 

Total sales 47,285 53,065 

Sales of Scania products declined by 2 percent and 

amounted to SEK 46,140 m. (47,213). Compared to 

the preceding year, sales were positively influenced by 

currency rate effects of about SEK 250 m. including 

currency hedging. Sales of service-related products 

rose by 4 percent to SEK 10,603 m. (10,151). See 

Note 1. 

The Scania Group’s total sales amounted to SEK 

47,285 m., compared to SEK 53,065 m. in 2001, 

which included sales of SEK 4,755 m. in the divested 

car operations. 

Earnings 

Operating income in European operations amounted 

to SEK 5,403 m. (5,066), equivalent to an increase of 

7 percent. Compared to 2001, operating income was 

influenced positively by currency rate effects totalling 

SEK 800 m. Currency hedging affected the year’s 

earning 1by SEK 500 m. (–775). The product mix 

was somewhat better. Lower capacity utilisation at 

production plants, due to lower sales volume and 

higher intra-Group deliveries from Latin America, 

adversely affected operating income. In addition, there 

were changeover expenses, including those for European 

bus operations. 

Operating income in Latin American operations 

totalled SEK 59 m. (–581). Volume fell both in Brazil 

and Argentina. The price increases carried out in Brazil 

and a sharply improved cost situation, due to internal 

efficiency-raising measures and a better currency situation, 

in combination with increased component and 

vehicle deliveries to markets outside Latin America, 

more than offset the effect of lower sales volume. 

Operating income in Customer Finance operations 

rose by 11 percent and amounted to SEK 

308 m. (278). Growth in new markets resulted in an 

improved margin, which positively influenced operating 

income. Customer Finance operations are reported in 

Note 2. 

Operating income in car operations amounted 

to SEK 563 m. (111), including a capital gain of SEK 

550 m. related to Swedish car operations. The sale 

price received amounted to more than SEK 1.3 billion. 

The Scania Group’s operating income amounted 

to SEK 4,406 m. (2,467), an increase of SEK 1,939 m. 

Capitalisation of development expenditures positively 

affected operating income by SEK 573 m. and the 

capital gain by SEK 550 m. Excluding new accounting 

principles and the capital gain, the increase amounted 

to SEK 816 m. 

The operating margin of the Scania Group 

increased to 8.2 (4.6) percent. The margin for Scania 

products, that is, excluding car operations, amounted 

to 8.3 (5.0) percent. 

The Scania Group’s net financial items totalled 

SEK –684 m. (–926). The improvement was attributable 

to lower net debt as well as lower borrowing in 

Latin American currencies. 

Income after financial items amounted to SEK 

3,722 m. (1,541). 

Tax expenses for the year amounted to SEK 985 

m., equivalent to 26.5 (32.2) percent of income after 

financial items. The lower tax rate compared to the 

previous year was mainly due to a tax-exempt capital 

gain in car operations. Excluding the capital gain, the 

tax rate was 31.1 percent. 

48

Earnings by area of operations 


Operating income, SEK m. 


Latin American operations 59 –581 

Customer Finance operations 308 278 

Research and development expenses –1,437 –1,955 

Corporate costs –490 –452 


Car operations 563 111 

Total operating income 4,406 2,467 

Operating margin, % 

European operations 12.5 11.9 

Latin American operations 1.3 –10.0 

Scania products 8.3 5.0 

Car operations – 1.9 

Scania Group total 8.2 1 4.6 

1 Excluding capital gain in car operations. 

Earnings, Scania Group, SEK m. 


Operating income 4,406 2,467 

Income after financial items 3,722 1,541 

Net income 2,739 1,048 

Earnings per share, SEK 13.70 5.24 

Return on capital employed 

(excl. Customer Finance operations) 15.8% 8.4% 

Return on equity 17.2% 6.5% 

Net income for the year amounted to SEK 2,739 m. 

(1,048), resulting in earnings per share of SEK 13.70 

(5.24). 

Cash flow 

Scania’s cash flow, excluding Customer Finance 

operations and divestments/acquisitions, amounted to 

SEK 2,418 m. (2,995). Interest and tax (SEK 461 m. 

and 573 m. respectively) were charged to cash flow. 

Cash flow including divestments/acquisitions was SEK 

3,583 m. (2,066). 

Tied-up working capital decreased by SEK 772 m. 

Lower receivables and increased operating liabilities 

were offset to some extent by higher tied-up inventories. 

Net investments excluding divestments/acquisitions 

of businesses totalled SEK –2,921 m. (–1,878), including 

capitalisation of corporate development expenditures 

totalling SEK 573 m. (0). The effects of divestments/acquisitions 

amounted to SEK 1,165 m. (–929). 

Divestments/acquisitions: The divestment of 

Swedish car operations resulted in a positive cash flow 

Financial ratios related to the balance sheet 


Net debt, excl. provisions 

for pensions, SEK m. 1 4,308 7,790 

Net debt/equity ratio 1 0.25 0.49 

Equity per share, SEK 84,66 79,98 

Equity/assets ratio, % 25.6% 23.4% 

1 With Customer Finance operations reported according to the equity 

accounting method. 

of SEK 1,332 m. In addition, Scania’s net debt 

improved by SEK 220 m., since the buyer took over 

previous intra-Group financing. During the preceding 

year, cash flow was negatively affected by SEK 886 m. 

due to the acquisition of the Dutch sales and service 

company Beers N.V. (see Note 22). 

Financial position 

During the year, gross investments totalled SEK 3,025 

m. (1,980). Scania carried out large investments in cab 

production facilities. In 2002, gross investments also 

included development expenditures of SEK 573 m. 

During 2002, the shareholders’ equity of the 

Scania Group increased by SEK 936 m. and totalled 

SEK 16,931 m. (15,995) at year-end. Net income for 

the year added SEK 2,739 m, while dividends to the 

shareholders decreased shareholders’ equity by SEK 

700 m. The remaining decrease, SEK 1,103 m., 

consisted of exchange rate differences that arose when 

translating net assets outside Sweden, as a consequence 

of the krona’s appreciation against the EUR, 

USD and local Latin American currencies. (See Note 15). 

The dividend for the financial year proposed by the 

Board of Directors is SEK 5.50 (3.50) per share. 

The net debt of the Scania Group, that is the difference 

between interest-bearing liabilities (excluding 

pension liabilities) and liquid assets with Customer 

Finance operations reported according to the equity 

accounting method, amounted to SEK 4,308 m. 

(7,790). This was equivalent to a net debt/equity ratio 

of 0.25 (0.49). The sharply improved net debt/equity 

ratio was due to improved cash flow from operating 

activities as well as the payment received for the 

49

divested Swedish car operations. Including Customer 

Finance operations, net debt totalled SEK 25,108 m. 

(29,305) (see Note 18). 

Financial risks 

Borrowing 

Scania has a committed revolving credit facility of 

USD 1,850 m. from an international banking syndicate 

that expires in November 2004. At year-end 2002, USD 

297 m. of this facility was being utilised. This means 

that USD 1,553 m., equivalent to SEK 13,705 m. translated 

at the closing day rate, was available. 

In addition to its committed revolving credit facility, 

Scania has a capital market programme of more than 

SEK 30 billion, translated at the closing day rate, of 

which more than SEK 17 billion was being utilised as 

of 31 December 2002. 

During 2002, Scania issued two private bonds 

under its Medium Term Note programme, totalling 

SEK 210 m., divided into a zero coupon bond of 

SEK 80 m. maturing in 2007 and a coupon bond 

of SEK 130 m. maturing in 2005. 

A public bond of EUR 500 m., which runs until 

March 2007, was issued under Scania’s European 

Medium Term Note programme. In addition, during 

2002 a smaller bond of EUR 30 m. was issued, 

resulting in a total issued amount of EUR 1,080 m. 

within a ceiling of EUR 1,500 m. For a complete 

picture of Scania’s borrowings, see Note 18. 

Hedging of currency flows 

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

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

Q 1** 2003 25 14.733 30 10.455 106 9.148 15 6.318 80 1.147 22,200 0.00791 

Q 2 2003 40 14.851 45 10.536 170 9.172 20 6.456 120 1.221 15,000 0.00737 

Q 3 2003 32 14.417 145 9.258 20 6.566 132 1.218 

Q 4 2003 25 14.591 155 9.243 20 6.478 

Total (in millions) 122 75 576 75 332 37,200 

Closing day rate 31 Dec 2002 14.1475 8.8250 9.1925 6.3235 1.2595 0.00742 

Unrealised gain/loss 

31 Dec 2002 (SEK m.) 58,967 107,113 14,467 –4,226 –10,141 11,106 

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

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

Interest and counterparty risk 

Scania’s policy concerning interest rate risks is that 

the fixed interest period of its loan portfolio should normally 

be 6 months, but that deviations may be allowed 

within the 0–24 month range. One exception is 

Scania’s Customer Finance companies, in which the 

fixed interest period on loans is matched with the fixed 

interest period on assets. 

The average funding cost including Customer 

Finance operations was 4.6 (5.9) percent, as at 31 

December 2002. During the year, the average fixed 

interest period on Scania’s loan portfolio (excluding 

Customer Finance operations) was about 2 months, 

which was also the average fixed interest period at 

year-end. 

To manage interest rate risks, derivative instruments 

are used in the Group. All the above data 

include the effects of these derivatives. Management 

of credit risks that arise in Scania’s treasury unit, 

among other things when investing liquid assets and 

engaging in derivatives trading, is regulated in Scania’s 

financial policy. Transactions take place only within 

established ceilings and with carefully selected, creditworthy 

counterparties. 

Currencies 

Net currency transaction exposure during 2002 was 

about SEK 16 billion. The largest currency flows were 

in EUR and GBP. Currency exposure in USD has 

decreased in the last year. Based on the 2002 geographic 

breakdown of revenues and expenses, a one 

percent change in the Swedish krona towards the 

other currencies would 

change operating 

income by about SEK 

160 m. on a full-year 

basis. Currency exposure 

in operating 

income is presented in 

Note 26. Operating 

income in 2002 for 

European operations 

was influenced positively 

by a total of SEK 

800 m., of this, currency 

hedging activi- 

Currency transaction exposure (net) 

SEK m. 

20,000 

15,000 

10,000 

5,000 

0 

00 01 02 

Other 

currencies 

KRW 

GBP 

USD and 

AUD 

EUR* 

*ATS, BEF/LUF, 

FIM, FRF, DEM, 

ESP, IEP, ITL, 

NLG and PTE 

50

ties had a positive influence of SEK 500 m. (–775) on the year’s earnings. 

For a currency calculation concerning Latin American operations, see Note 26. 

Scania’s policy is to hedge its currency flows during a period of time equivalent 

to the projected orderbook until the date of payment. This normally means a hedging 

period of 3 to 4 months. However, the hedging period is allowed to vary between 

0 and 12 months. Scania’s net assets abroad amounted to SEK 11,397 m. at the 

end of 2002 (see Note 25). The net assets of foreign subsidiaries are not hedged 

under normal circumstances. To the extent a subsidiary has significant monetary 

assets in local currency, however, it may be hedged. As of 31 December 2002, 

SEK 566 m. (892) was hedged at Scania Group level, which was equivalent to 

5 (10) percent of net assets abroad. 

In order to hedge monetary operating assets in Latin America, Scania has 

taken out loans in local currencies. On December 31, 2002, these loans totalled 

SEK 459 m. (1,714). 

Other risks 

Residual value exposure 

A portion of Scania’s sales occur with guaranteed residual value or repurchase 

guarantee. During 2002, the volume of such transactions was more than 4,400 

vehicles. The value of all obligations at year-end was SEK 6,077 m. (7,413). In the 

case of this type of obligations, revenue and profit recognition occurs successively 

over the period of the obligation. Residual value and repurchase obligations are 

regulated by company policies and are regularly monitored both at the subsidiary 

and Group level. 

Insurance 

Most of Scania’s insurance coverage is obtained in the international insurance 

market, at a cost of SEK 61 m. (55) in 2002. 

Number of employees 

The total number of employees declined to 28,230 at the close of 2002, compared 

to 28,541 at year-end 2001. The net effect of divestments/acquisitions of businesses 

resulted in a decrease of about 900 persons. Excluding divestments/acquisitions, 

the number of employees in European industrial operations rose by about 600. 

In the sales and service organisation the number of employees increased by almost 

300. In Latin American operations, the number of employees declined by more 

than 300. 

Consolidated income statement 

January–December, SEK m. Note 2002 2001 2000 

Sales 1 47,285 53,065 51,398 

Cost of goods sold –36,260 –42,601 –40,061 

Gross income 11,025 10,464 11,337 

Research and development expenses 1 –1,437 –1,955 –1,621 

Selling expenses –5,206 –5,594 –4,312 

Administrative expenses –857 –785 –856 

Income from Customer Finance operations 2 308 278 179 

Share of income of associated companies 3 23 59 357 

Capital gain related to car operations 4 550 – – 

Operating income 4,406 2,467 5,084 

Financial income and expenses 5 

Interest income 260 294 415 

Interest expenses – 857 –1,142 –1,007 

Other financial income and expenses –87 –78 –38 

Net financial items –684 –926 –630 

Income after financial items 3,722 1,541 4,454 

Taxes 6 –985 –496 –1,371 

Minority interests 2 3 –3 

Net income 2,739 1,048 3,080 

Depreciation included in operating income 7 –2,093 –2,157 –1,999 

Earnings per share, SEK 2 13,70 5,24 15,40 

1 Total research and development expenditure amounted to SEK 2,010 m., of which SEK 573 m. was capitalised. 

2 There are no potential dilution effects. 

See Note 4 for information on how the divestment of Swedish car operations 

affected Scania Group earnings. 

51

Consolidated balance sheet 

With Customer Finance operations 

reported according to the equity 

accounting method, pro forma. 

31 December, SEK m. Note 2002 2001 2000 2002 2001 2000 

ASSETS 

Fixed assets 

Intangible fixed assets 8 1,938 1,364 545 1,926 1,364 545 

Tangible fixed assets 1 9 23,640 25,714 21,967 23,615 25,695 21,949 

Financial fixed assets 

Holdings in associated companies etc 10 126 795 2,037 3,229 3,287 3,631 

Interest-bearing receivables 11 11,354 10,178 7,312 708 784 541 

Deferred tax assets 6 466 963 635 465 963 633 

Other long-term receivables 224 351 604 224 347 604 

Total fixed assets 37,748 39,365 33,100 30,167 32,440 27,903 

Current assets 

Inventories 12 7,862 7,946 7,467 7,831 7,880 7,429 

Receivables 13 

Interest-bearing trade debtors 7,136 6,791 5 483 816 989 941 

Other trade debtors 6,497 7,731 8,953 6,429 7,562 8,905 

Other receivables 2,505 2,499 2,316 2,335 2,144 2,005 

Total receivables 16,138 17,021 16,752 9,580 10,695 11,851 

Short-term investments 14 1,669 2,133 1,939 1,656 2,132 1,926 

Cash and bank balances 2,670 1,974 1,642 2,530 1,799 1,542 

Total current assets 28,339 29,074 27,800 21,597 22,506 22,748 

Total assets 66 087 68,439 60,900 51,764 54,946 50,651 

1 “Tangible fixed assets” include the value of deliveries not yet recognised as 

revenues with guaranteed residual values or with repurchase obligations 

for which corresponding payments received have been reported among 

“Other liabilities”. The following amounts have been reported: 8,692 9,821 7,841 

52

With Customer Finance operations 

reported according to the equity 

accounting method, pro forma. 

31 December, SEK m. Note 2002 2001 2000 2002 2001 2000 

SHAREHOLDERS’ EQUITY AND LIABILITIES 

Shareholders’ equity 15 

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

Restricted reserves 4,608 5,665 5,370 4,608 5,665 5,370 

Total restricted equity 6,608 7,665 7,370 6,608 7,665 7,370 

Unrestricted reserves 7,584 7,282 5,248 7,584 7,282 5,248 

Net income 2,739 1,048 3,080 2,739 1,048 3,080 

Total unrestricted equity 10,323 8,330 8,328 10,323 8,330 8,328 

Total shareholders’ equity 16,931 15,995 15,698 16,931 15,995 15,698 

Minority interests in subsidiaries 58 21 22 58 21 22 

Provisions 

Provisions for pensions 16 2,045 2,092 1,929 2,040 2,087 1,925 

Provisions for deferred taxes 6 2,060 2,391 2,271 1,188 1,490 1,626 

Other provisions 17 2,309 2,184 1,800 2,307 2,180 1,795 

Total provisions 6,414 6,667 6,000 5,535 5,757 5,346 

Liabilities 

Long-term borrowings 18 22,514 18,908 15,372 6,778 3,961 5,599 

Short-term borrowings 18 6,933 14,504 11,986 1,717 7,760 5,650 

Advance payments from customers 826 764 530 751 680 446 

Trade creditors 3,297 3,253 3,616 3,108 3,025 3,433 

Tax liabilities 241 182 527 217 179 521 

Other liabilities 2,103 2,003 1,842 1,842 1,769 1,614 

Accrued expenses and prepaid income 1 19 6,770 6,142 5,307 14,827 15,799 12,322 

Total liabilities 42,684 45,756 39,180 29,240 33,173 29,585 

Total shareholders’ equity and liabilities 66,087 68,439 60,900 51,764 54,946 50,651 

Assets pledged and contingent liabilities 

Assets pledged 20 191 233 245 

Contingent liabilities 21 680 855 881 

Net debt, excluding provisions for pensions SEK m. 25,108 29,305 23,777 4,308 7,790 7,781 

Net debt/equity ratio 1.48 1.83 1.51 0.25 0.49 0.50 

Equity/assets ratio, % 25.6 23.4 25.8 32.7 29.1 31.0 

Equity per share, SEK 84.66 79.98 78.49 

Capital employed, SEK m. 48,481 51,520 45,007 27,524 29,824 28,894 

53

Statement of changes in shareholders’ equity 

January-December, SEK m. 2002 2001 2000 

Shareholders’ equity, 1 January 15,995 15,698 13,548 

Exchange rate differences –1,103 649 470 

Net income 2,739 1,048 3,080 

Dividend to shareholders –700 –1,400 –1,400 

Shareholders’ equity, 31 December 16,931 15,995 15,698 

Consolidated statement of cash flow 

January-December, SEK m. Note 2002 2001 2000 

Cash flow from operating activities 

Net income, excluding Customer Finance operations 2,526 854 2,954 

Items not affecting cash flow 22 2,041 2,124 1,997 

Cash from operating activities 4,567 2,978 4,951 

Change in working capital etc 

Inventories –918 475 74 

Receivables 223 1,973 –1,394 

Provisions for pensions 171 153 75 

Non-interest-bearing liabilities and provisions 1,296 –706 829 

Total change in working capital etc 22 772 1,895 –416 

Total cash flow from operating activities 5,339 4,873 4,535 

Net investments excluding acquisitions/divestments of businesses 22 –2,921 –1,878 –1,521 

Cash flow before acquisitions/divestments of businesses 2,418 2,995 3,014 

Net investments through acquisitions/divestments of businesses 22 1,165 –929 –457 

Cash flow excluding Customer Finance operations 3,583 2,066 2,557 

Expansion in Customer Finance operations 2 –552 –2,428 –2,444 

Change in net debt including Customer Finance operations 3,031 –362 113 

Change in net debt from financing activities 22 –1,813 2,119 2,020 


Net change in liquid assets and short-term investments 518 357 733 

Effect of exchange rate fluctuations on liquid assets and short-term investments –286 169 138 

Cash, bank balances and short-term investments, 1 January 4,107 3,581 2,710 

Cash, bank balances and short-term investments, 31 December 4,339 4,107 3,581 

Cash flow per share, excluding Customer Finance operations and acquisition/divestments 12.09 14.98 15.07 

54

Parent Company financial statements 

Income statement 

January-December, SEK m. Note 2002 2001 2000 

Operating income 0 0 0 

Financial income and expenses 1 182 51 –13 

Dividends received, Group contributions etc 1 1,000 650 3,184 

Withdrawal from tax allocation reserve 250 600 – 

Provision to tax allocation reserve – –325 –634 

Taxes 2 –121 273 –711 

Net income 1,311 703 1,826 

Group contributions in 2002 have been reported in compliance with a statement (URA 7) 

of the Urgent Issues Task Force of the Swedish Financial Accounting Standards Council. 

Figures for comparative periods have not been adjusted. 

Balance sheet 

31 December, SEK m. Note 2002 2001 2000 

ASSETS 

Financial fixed assets 

Shares in Group companies 3 10,971 10,971 10 ,971 

Current assets 

Due from subsidiaries 2,775 3,010 4 ,409 

Other receivables 13 13 13 

Accrued income 2 – – 

Total assets 13,761 13,994 15,393 


Shareholders’ equity 4 11,174 10,873 11,570 

Untaxed reserves 5 2,586 2,836 3,111 

Current liabilities 

Accrued expenses and prepaid income 1 12 1 

Tax liabilities 0 273 711 

Total current liabilities 1 285 712 

Total shareholders’ equity and liabilities 13,761 13,994 15,393 

Assets pledged and contingent liabilities 

Assets pledged None None None 

Contingent liabilities 6 26,685 26,872 19,476 

Statement of changes in shareholders’ equity 

January–December, SEK m. 2002 2001 2000 

Shareholders’ equity, 1 January 10, 873 11,570 11,144 

Net income 1,311 703 1,826 

Group contributions (net after tax) –310 – – 


Shareholders’ equity, 31 December 11,174 10,873 11,570 

Statement of cash flow 

January-December, SEK m. 2002 2001 2000 

Cash flows from operating activities 

Net income 1,311 703 1 826 

Items not affecting cash flow 

Anticipated dividend –1,000 – – 

Group contributions received – –650 –3,255 

Group contributions paid – – 71 

Taxes 121 – – 

Provision to/withdrawal from untaxed reserves –250 –275 634 

Cash from operating activities 182 –222 –724 

Change in working capital 

Current liabilities –284 –427 –79 

Receivables –2 – – 

Total cash flow from operating activities –104 –649 –803 

Change in net debt from financing activities 

Change in due from/liabilities to subsidiaries 804 2,049 2,203 


Net cash provided by financing activities 104 649 803 

Liquid assets and short-term investments, 31 December 0 0 0 

55

Accounting principles 

The Annual Report of the Scania Group has been 

prepared in compliance with the Annual Accounts Act, 

the current recommendations of the Swedish Financial 

Accounting Standards Council and the statements of 

its Urgent Issues Task Force. The recommendations of 

the Council are based on the international accounting 

principles adopted by the International Accounting 

Standards Board. 

Consolidated financial statements 

The consolidated financial statements encompass 

Scania AB and all subsidiaries and associated companies. 

Subsidiaries are companies in which Scania 

directly or indirectly owns more than 50 percent of the 

voting rights of the shares or in which Scania otherwise 

has a controlling influence. Associated companies 

are companies in which Scania has a long-term 

ownership interest and possesses a significant influence. 

The consolidated financial statements are prepared 

in accordance with the principles stated in recommendation 

RR1:00 of the Swedish Financial Accounting 

Standards Council. Acquisitions of companies are 

reported according to the purchase accounting 

method. This means that an acquired subsidiary’s 

assets and liabilities are accounted for by the purchaser 

at acquisition value according to the acquisition 

analysis. If the acquisition value of the shares in the 

subsidiary exceeds the value of the company’s net 

assets according to the acquisition analysis, the 

difference is reported as goodwill. The goodwill 

amortisation period is established on the basis of 

individual examination. In deciding the amortisation 

period, the main principles used are as follows: 

• Small acquisitions that are a supplement to existing 

operations and that are integrated with them are 

amortised in five years. 

• Larger acquisitions that involve establishment of 

operations in new markets are amortised in ten 

years if they are established operations with a 

strong market position. 

It was decided that the amortisation period for businesses 

acquired during 2002 would be ten years. Only 

income that arises after the date of acquisition is 

included in consolidated shareholders’ equity. Divested 

companies are included in the consolidated financial 

statements up to and including the divestment date. 

The divestment of Swedish car operations was made 

effective from the beginning of 2002 and was completed 

during the second quarter when the EU’s competition 

authority approved the transactions. As a 

result of this, the sales and earnings of the divested 

Swedish car operations, which were included in the 

report for the first quarter of 2002, were reversed in 

the second quarter. Only the capital gain thus remains 

accumulated. 

The minority interests’ share of net income and 

shareholders’ equity of non-wholly owned subsidiaries 

is reported separately. Associated companies are 

reported in accordance with the equity accounting 

method. This means that the shares and participations 

in associated companies are valued in the consolidated 

financial statements as the Group’s share of 

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

or deficit value, respectively. Thus, consolidated 

income includes Scania’s share of the income of 

associated companies. 

Customer Finance operations are reported pro 

forma according to the equity accounting method, in 

order to create more analytical reporting. The tied-up 

capital and accompanying financial structure of Customer 

Finance operations differ substantially from 

other operations. 

Foreign subsidiaries and associated 

companies 

Scania’s industrial operations, in both Europe and 

Latin America, have common product development, 

common products and a common production 

structure, which means that the operations are 

regarded as integrated. As a result, together with 

certain holding companies, their financial statements 

are translated to Swedish kronor using the monetary/ 

non-monetary accounting method. The financial statements 

of other foreign subsidiaries, mainly commercial 

companies, are translated using the current method. 

In Latin America, acquisitions have led to a more 

specialised commercial structure that will be translated 

according to the current method from 2002 onward. 

Under the monetary/non-monetary method, monetary 

items are translated at the closing day rate, while 

non-monetary items are translated at the rate in effect 

on the investment date. Inventories, property, plant 

and equipment and shareholders’ equity are translated 

at the investment date rate and other assets and 

liabilities at the closing day rate. With the exception 

of consumption of goods and depreciation of property, 

plant and equipment, which are translated at the 

investment date rate, income and expenses are translated 

at a weighted average exchange rate for the year. 

The exchange rate difference on monetary assets 

and liabilities is included in income for the year and is 

reported in the income statement as follows: The 

portion of the exchange rate difference attributable to 

operations-related balance sheet items is included 

in operating income. The portion of the exchange rate 

difference attributable to financial items is included 

56

in financial income and expenses. The portion 

attributable to tax items is reported under taxes in 

the income statement. Currency rate effects from 

exchange rate hedging are allocated in a similar way 

among the operating income, financial income and 

expenses and taxes. 

Under the current method, assets and liabilities are 

translated at closing day rate, while income and 

expenses are translated at the average exchange rate 

for the year. The exchange rate difference, which arises 

in part from translating net assets of foreign subsidiaries 

at a different rate at the beginning of the year 

than at year-end, and in part from translating net 

income at other than the closing day rate, is reported 

directly in shareholders’ equity in the balance sheet. 

Receivables and liabilities in 

foreign currencies 

Receivables and liabilities in foreign currencies are valued 

at the closing day rate. Unrealised exchange rate 

gains and losses are thus included in income. 

Exchange rate effects related to hedging of flows in 

foreign currencies are also included in earnings during 

the period that the hedged flow is reported. The unrealised 

portion of estimated exchange rate hedging, 

including accrued interest, is reported as accrued 

income or an accrued expense. 

Depreciation, amortisation and impairment 

Machinery, equipment and real property are valued at 

acquisition value and depreciated over the useful life of 

the asset. In those cases where a residual value exists, 

the asset is depreciated down to this value. The useful 

life of machinery and equipment is between 5–15 

years. Industrial buildings are depreciated in 25 years. 

Land holdings are not depreciated. The amortisation 

period for goodwill and other intangible assets is 

established on the basis of individual examination, 

in normal circumstances 5 or 10 years. See the 

“Consolidated financial statements” section above. 

Amortisation of capitalised development expenditures 

shall begin only when the asset is placed in service. The 

average amortisation period is estimated at 5 years. 

If there is any indication on the balance sheet date 

that an asset has diminished in value, the recoverable 

amount of the asset is estimated. If the recoverable 

amount is less than the carrying amount, the asset is 

written down to its recoverable amount. 

Leasing contracts 

Leasing contracts with customers are reported as 

financial leases in cases where substantially all risks 

and rewards associated with ownership have been 

transferred to the lessee. Other leasing contracts is 

accounted for as operating leases. 

Inventories 

Inventories are valued at the lower of cost according 

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

An allocable portion of indirect expenses is included in 

the value of the inventories. Inventories are reported 

on a net basis after deductions for obsolescence and 

intra-Group profits. 

Short-term investments 

Short-term investments are valued at the lower of 

acquisition or actual value. 

Liquid assets 

Liquid assets consist of cash and bank balances as 

well as short-term investments. In certain cases, 

short-term investments consist of investments with 

maturities longer than 90 days that can easily be 

turned into cash and bank balances. 

Revenue recognition 

Sales revenues, less discounts granted and credit 

invoices, are recognised on the date when substantially 

all the risks and rewards of ownership pass 

to the buyer. 

Successive revenue recognition 

Revenue on sales with a residual value guarantee 

(operating lease) or repurchase obligation is reported 

successively over the life of the obligation instead of 

being reported on the delivery date, since risk is 

deemed to remain with Scania. As a consequence of 

this, the equivalent assets remain in Scania’s balance 

sheet and payments received are reported as prepaid 

income. Before 2001, the revenue was reported on 

the delivery date, while the profit was reported successively 

over the obligation period. Figures for comparative 

periods have been adjusted. 

Research and development expenses 

Expenditures that arise during the research phase are 

charged to operating income as they arise. Expenditures 

that arise during the development phase are capitalised 

under certain preconditions as an intangible 

asset and amortised over their estimated useful life, 

from the date the asset is placed in service. 

Selling expenses 

Selling expenses are defined as operating expenses 

in commercial companies, plus goodwill amortisations 

related to acquisitions of commercial companies and 

costs of corporate-level commercial resources. 

57

Administrative expenses 

Administrative expenses are defined as costs of 

corporate management and of staff units. 

Borrowing costs 

Borrowing expenses in the form of interest are 

charged to operating income when they arise. Costs 

of arranging large capital market programmes are 

accrued over the life of the programmes. 

Exchange rate differences 

Exchange rate differences are reported under operating 

income, aside from exchange rate differences 

pertaining to short- and long-term borrowings, which 

are reported as financial income or expenses, 

respectively. 

Exchange rate differences attributable to loans and 

forward exchange contracts in foreign currencies that 

are designated as a hedge of the net assets of independent 

subsidiaries are reported, with consideration 

given to tax effects, directly in shareholders’ equity in 

the consolidated balance sheet, together with the 

exchange rate difference on translated net assets. 

The portion of these forward exchange contracts that 

pertains to interest is amortised over the life of the 

contract and is reported among financial income and 

expenses. 

Taxes 

The Group’s total tax consists of current tax and 

deferred tax. Deferred tax is reported in case of a 

difference between the book value of assets and 

liabilities and their fiscal value (“temporary differences”). 

Full provision is made for deferred tax liabilities, while 

deferred tax assets are recognised only to the extent 

they are considered likely to be utilised. 

Information about affiliated parties 

Any transactions with affiliated parties occur under 

market conditions. 

Changes in accounting principles 

From 2002 onward, Scania is applying the following 

new recommendations issued by the Swedish 

Financial Accounting Standards Council: RR1:00 on 

consolidated financial statements, RR15 on intangible 

fixed assets, RR16 on provisions, contingent liabilities 

and contingent assets, RR17 on impairments, RR19 

on discontinuing operations, RR21 on borrowing costs 

and RR23 on information about affiliated parties. The 

changes in Scania’s accounting principles that these 

recommendations have led to are described below. 

RR15 on intangible assets 

According to the recommendation, expenditures for 

development of new products, production and information 

systems are not to be expensed when certain 

preconditions are met, but instead are to be capitalised 

as an intangible asset. Scania’s corporate 

research and development activities are classified into 

a research phase and a development phase. The 

expenditures that arise during the research phase are 

expensed when they arise. Expenditures during the 

development phase are capitalised as an intangible 

asset and is amortised over its estimated useful life. 

During 2002, SEK 573 m. of Scania’s product development 

expenditures was capitalised. 

RR17 on impairment 

If there is any indication on the balance sheet date that 

a fixed asset has diminished in value, the recoverable 

amount of the asset is estimated. If the recoverable 

amount is less than the carrying amount, the asset 

is written down to its recoverable amount. When 

comparing the recoverable amount and carrying 

amount, no need for writedown has been deemed to 

exist. 

RR19 on discontinuing operations 

When discontinuing operations, certain information is 

to be provided about both the discontinued operations 

and the remaining operations. During 2002, Swedish 

car operations were divested. The effects of this 

divestment are described in Note 4. 

2003 

From the first quarter of 2003 onward, Scania will 

apply recommendation RR25 of the Swedish Financial 

Accounting Standards Council on segment reporting. 

This means that Scania’s primary division into segments 

will be Vehicles and Services plus Financial 

Services. 

58

NOTES 

THE GROUP 

Note 1 Sales page 59 

Note 2 Customer Finance operations 59 

Note 3 Share of income of associated companies 60 

Note 4 Divested operations 60 

Note 5 Financial income and expenses 60 

Note 6 Taxes 61 

Note 7 Depreciation/amortisation 61 

Note 8 Intangible fixed assets 62 

Note 9 Tangible fixed assets 62 

Note 10 Holdings in associated companies etc 63 

Note 11 Interest-bearing receivables (long-term) 63 

Note 12 Inventories 63 

Note 13 Receivables (current) 63 

Note 14 Short-term investments 63 

Note 15 Shareholders’ equity 63 

Note 16 Provisions for pensions and similar commitments 64 

Note 17 Other provisions 64 

Note 18 Borrowings 64 

Note 19 Accrued expenses and prepaid income 65 

Note 20 Assets pledged 65 

Note 21 Contingent liabilities 65 

Note 22 Cash flow statement 65 

Note 23 Wages, salaries and other remuneration and 

number of employees 66 

Note 24 Information regarding compensation to 

executive officers and auditors 67 

Note 25 Net assets outside Sweden 68 

Note 26 Currency exposure in operating income 68 

Note 27 Effect of exchange rate differences on 

net income 68 

THE PARENT COMPANY 

Note 1 Financial income and expenses 69 

Note 2 Taxes 69 

Note 3 Shares in Group companies 69 

Note 4 Shareholders’ equity 69 

Note 5 Untaxed reserves 69 

Note 6 Contingent liabilities 69 

Note 7 Information regarding compensation to 

executive officers and auditors 69 

All amounts are stated in millions of Swedish kronor 

(SEK m.) unless otherwise indicated 

NOTE 1 Sales 

2002 2001 2000 

Trucks 27,184 29,139 31,101 

Buses 3,991 4,701 3,704 

Engines 464 608 437 

Service-related products 10,603 10,151 8,113 

Used vehicles etc 5,073 4,498 3,810 

Revenue deferral, vehicles 1 –1,175 –1,884 –2,425 

Total Scania products 46,140 47,213 44,740 

Car operations 2 1,145 5,852 6,658 

Total 47,285 53,065 51,398 

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

based on delivery. This difference arises when revenues from operating leases 

and sales with repurchase obligations are reported successively over the life of 

the obligation instead of being reported on the delivery date. The year’s lower 

revenue deferral occurred because the number of vehicles that were sold under 

operating leases and with repurchase obligations, for which revenue is reported 

successively, declined somewhat during 2002 after several years of growth. 

2 Sales in 2001 and 2000 included sales of SEK 4,755 m. and SEK 5,539 m., 

respectively, from Swedish car operations. Swedish car operations were divested 

as per 1 January 2002, See also Note 4. 

NOTE 2 Customer Finance operations 

Income statement 2002 2001 2000 

Interest income 1,151 1,041 718 

Lease income 2,612 2,656 1,687 

Depreciation –1,977 –1,939 –1,198 

Interest expenses –1,056 –1,101 –792 

Other income and expenses 17 –16 –3 

Operating income (net) 747 641 412 

Credit losses 1 –175 –137 –66 

Operating expenses –264 –226 –167 

Operating income 308 278 179 

1 Including change in reserve for bad debts. 

Balance sheet 2002 2001 2000 

ASSETS 

Lease assets 8,341 9,894 7,208 

Financial receivables 16,962 15,197 11,314 

Other assets 854 1,163 804 

Total assets 26,157 26,254 19,326 


Shareholders’ equity 3,103 2,492 1,594 

Borrowings 20,952 21,691 16,108 

Other liabilities 2,102 2,071 1,624 

Total shareholders’ equity and 

liabilities 26,157 26,254 19,326 

Statement of cash flow 2002 2001 2000 

Net income 213 194 126 

Items not affecting cash flow 207 312 194 

Cash from operating activities 420 506 320 

Change in lease assets 1,118 –143 –1,246 

Change in financial receivables –2,481 –2,435 –1,680 

Change in other 

assets and liabilities 391 –79 162 

Acquisition of businesses – –277 – 

Expansion in Customer 

Finance operations –552 –2,428 –2,444 

Lease assets 

(operating leases) 2002 

1 January 9,894 

New contracts 2,972 

Depreciation –1,977 

Redemptions –2,105 

Change in value adjustment 2 

Exchange rate differences –445 

Balance, 31 December 2 8,341 

Financial receivables 

(hire purchase contracts and 

financial leases) 2002 


New receivables 10,318 

Payments of loan principal/Redemptions –8,079 

Change in value adjustment –9 

Exchange rate differences –465 

Balance, 31 December 16,962 

2 Included in the consolidated financial statements under ‘‘tangible fixed assets” 

after subtracting deferred profit recognition. 

59

Net investments in financial leases 2002 2001 2000 

Minimum lease payments 

receivable 13,244 10,988 8,543 

Less: 

Executory costs and reserve for 

bad debts –294 –342 –242 

Imputed interest –1,145 –1,093 –934 

Net investment 3 11,805 9,553 7,367 

3 Included in the consolidated financial statements under “Interest-bearing trade 

debtors” and “Long-term interest-bearing receivables”. 

Future 

minimum lease payments 4 Operating leases Financial leases 

2003 2,697 5,158 

2004 2,255 3,651 

2005 1,337 2,421 

2006 722 1,322 

2007 316 525 

2008 and thereafter 198 167 

Total 7,525 13,244 

4 Minimum lease payments refer to future flow of incoming payments on the 

contract portfolio, including interest. For operating leases, the residual value is 

not included since this is not a minimum payment for these contracts. 

NOTE 4 Divested operations 

Divested operations 

Remaining operations 

(Swedish car operations) 

Income statement 2002 2001 2000 2002 2001 2000 

Sales – 4,755 5,539 47,285 48,310 45,859 

Cost of goods sold – –4,326 –4,688 –36,260 –38,275 –35,373 

Gross income – 429 851 11,025 10,035 10,486 

Research and development expenses – – – –1,437 –1,955 –1,621 

Selling expenses – –355 –735 –5,206 –5,239 –3,577 

Administrative expenses – – – –857 –785 –856 

Income from Customer Finance operations – – – 308 278 179 

Share of income of associated companies – 30 162 23 29 195 

Capital gain related to car operations 550 – – – – – 

Operating income 550 104 278 3,856 2,363 4,806 

Financial income and expenses – –17 –21 – 684 –909 –609 

Income after financial items 550 87 257 3,172 1,454 4,197 

Taxes – –22 –75 –985 –474 –1,296 

Minority interests – – – 2 3 –3 

Net income 550 65 182 2,189 983 2,898 

Operating margin, percent – 2.2 5.0 8.2 4.9 10.5 

The sale of Swedish car operations, which included the half-owned Svenska Volkswagen AB and the wholly owned dealership group Din Bil Sverige AB, 

was agreed during the first quarter and completed in June, when competition authorities approved the transaction and the purchaser paid. On 1 January, 

the reported value in the Scania financial statements of the assets of the operations sold amounted to SEK 1,575 m. and liabilities and provisions amounted to 

SEK 818 m. During 2001 the cash flow from operating activities of the divested operations amounted to SEK –20 m. and the change in debt due to 

financing activities amounted to SEK 85 m. The capital gain from the divestment amounted to SEK 550 m. 

NOTE 3 Share of income of associated companies 

The Group’s share of income before taxes of associated 

companies consisted of the following: 

2002 2001 2000 

Scania products 1 23 29 195 

Car operations 2 – 30 162 

Total 23 59 357 

1 In 2000, the Dutch distributor Beers N.V. accounted for SEK 182 m. In 2001, 

the remaining shares were acquired, why the company is reported as a wholly 

owned subsidiary. 

2 Share of 2001 and 2000 income of associated companies in car operations 

referred to Scania’s share of Svenska Volkswagen AB’s income. Svenska 

Volkswagen AB was divested as of 1 January 2002 (see also Note 4). 

NOTE 5 Financial income and expenses 

2002 2001 2000 

Interest income 

Bank balances and shortterm 

investments 181 89 237 

Interest-bearing receivables 48 157 121 

Other 31 48 57 

Total interest income 260 294 415 

Interest expenses 

Borrowings –760 –1,086 –945 

Pension liability (PRI) –97 –56 –62 

Total interest expenses –857 –1,142 –1,007 

Other financial income and expenses –87 –78 –38 

Net financial items –684 –926 –630 

60

NOTE 6 Taxes 

Tax expense/income for the year 2002 2001 2000 

Current tax –990 –642 –1,088 

Deferred tax 14 163 –168 

Share of tax of associated companies –9 –17 –115 

Total –985 –496 –1,371 

Deferred tax is attributable 

to the following: 2002 

Deferred tax related to 

temporary differences –83 

Deferred tax related to 

changes in tax rates 0 

Deferred tax revenue in tax value 

of loss carry-forwards 

capitalised during the year 350 

Deferred tax expense due to 

utilisation of previously capitalised 

tax value of loss carry-forwards –253 

Total 14 

Reconciliation of 2002 2001 2000 

effective tax Amount % Amount % Amount % 

Income after financial items 3,722 1,541 4,454 

Swedish statutory tax 1,042 28 431 28 1,247 28 

Tax effect and 

percentage influence: 

Valuation of tax loss 

carry-forwards –35 –1 106 7 45 1 

Difference between Swedish 

and foreign tax rates –32 –1 –71 –5 61 1 

Tax-exempt income –31 –1 –32 –2 –62 –1 

Capital gain on divestment 

of businesses –154 –4 – – – – 

Non-deductible expenses 

including goodwill amortisation 112 3 143 9 89 2 

Adjustment for taxes pertaining 

to previous years 1 0 –30 –2 –9 0 

Other 82 2 –51 –3 0 0 

Effective tax 985 26 496 32 1,371 31 

During the year, Swedish car operations were divested; the 

capital gain SEK 550 m. groupwise, did not lead to any tax burden. 

During 2002, the tax rate changed in the following countries: 

Australia, Chile, France, South Korea, Luxemburg, the Netherlands, 

Russia, Slovakia and Switzerland, which had a marginal effect. 

Deferred tax assets and 

liabilities are attributable to the 

following: 2002 2001 2000 

Deferred tax assets 

Provisions 293 212 269 

Property, plant and equipment 213 171 77 

Inventories 367 363 308 

Tax loss carry-forwards 1 801 801 525 

Other 518 349 295 

Offset within tax units –1,726 –933 –839 

Total 466 963 635 

Deferred tax liabilities 

Property, plant and equipment 2,766 2,190 1,951 

Tax allocation reserve 2 749 807 873 

Other 271 327 286 

Offset within tax units –1,726 –933 –839 

Total 2,060 2,391 2,271 

Net deferred tax liabilities 1,594 1,428 1,636 

Reconciliation of net deferred 

tax liabilities: 


Tax assets/tax liabilities 

in acquired businesses 24 

Tax assets/tax liabilities 

in divested businesses –26 

Deferred taxes reported 

in the year’s income –14 

Exchange rate differences etc. 182 

Net deferred tax liabilities, 31 December 1,594 

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

Britain and Germany. Of the deferred tax assets attributable to tax loss carryforwards, 

SEK 385 m. may be utilised without time constraints. For tax assets 

valued during 2002 related to subsidiaries that reported a loss during the year, 

Scania believes that the future earnings capacity of each company makes a 

valuation possible. In the Scania Group, deferred tax assets of SEK 459 m 

related to tax loss carry-forwards were not included after assessment of the 

potential for utilising the tax loss carry-forwards and due to a ceiling on annual 

future utilisation. Of the loss carry-forwards not included, SEK 245 m. has no 

expiration date, while SEK 214 m. will expire as follows: SEK 2 m. in 2003. 

SEK 42 m. in 2004, SEK 20 m. in 2005, SEK 2 m. in 2006, SEK 21 m. in 2007 

and SEK 127 m. in 2008 or later. Deferred tax has not been reported for 

temporary differences attributable to investments in subsidiaries and associated 

companies, since these holdings are essentially of long-term nature. 

2 In Sweden, tax laws permit provisions to an untaxed reserve called a tax allocation 

reserve. Deductions for provisions to this reserve are allowed up to a maximum 

of 25 percent of taxable profits. Each provision to this reserve may be freely 

withdrawn and face taxation, but must be withdrawn no later than the sixth year 

following the year the provision was made. 

NOTE 7 Depreciation/amortisation 

Distribution of depreciation or amortisation by function, excluding 

depreciation in Customer Finance operations, which is found in 

Note 2. 

Intangible fixed assets 2002 2001 2000 

Research and development expenses – 

Selling expenses –237 –188 –83 

Total –237 –188 –83 

Tangible fixed assets 2002 2001 2000 

Cost of goods sold –1,469 –1,504 –1,411 

Research and development expenses –91 –106 –84 

Selling expenses –255 –314 –372 

Administrative expenses –41 –45 –49 

Total –1,856 –1,969 –1,916 

Total depreciation/amortisation –2,093 –2,157 –1,999 

In addition, reduction in value of vehicles 

delivered with repurchase guarantees 

and short-term leasing, which is 

included in “Cost of goods sold” –549 –583 –344 

61

NOTE 8 Intangible fixed assets 

Product 

Goodwill development 

Carrying amount, 1 Jan 2000 681 

Change in accumulated 

acquisition value, 2000 79 


amortisation, 2000 –215 

Carrying amount, 1 Jan 2001 545 


acquisition value, 2001 1,022 


amortisation, 2001 –203 

Carrying amount, 31 Dec 2001 1,364 

Software 


Accumulated acquisition value 


Acquisitions/divestments 

of businesses 156 – – 

New acquisitions 12 573 56 

Divestments and disposals – – –1 

Reclassifications – – 111 

Exchange rate differences –90 – –1 

Total 1,860 573 165 

Accumulated amortisation 

1 January 418 

Divestments of businesses – – – 

Amortisation for the year 

– Vehicles and Service 215 – 22 

– Customer Finance operations – – 3 

Divestments and disposals – – –1 

Reclassifications – – 24 

Exchange rate differences –21 – 0 

Total 612 – 48 

Carrying amount, 31 December1,248 573 117 

In 2002, recommendation RR15 of the Swedish Financial 

Accounting Standards Council entered into force. As a consequence 

of this, the Scania Group capitalised the portion of its 

expenditures for research and development which arise during the 

development phase. During the year, the Scania Group’s 

expenditures for research and development totalled SEK 2,010 m. 

Of this, SEK 1,437 m. was expensed during the year and SEK 573 

m. was capitalised. Capitalised amounts are amortised only when 

the asset is placed in service. Since all the capitalised assets are 

still in the development phase, no amortisation occurred during the 

year. The recommendation also includes software development. In 

prior years, capitalised software was reported under Note 9, “Tangible 

fixed assets”. The recommendation does not allow retroactive 

application. 

Of the reported value of capitalised software, SEK 0 m. is related 

to internally developed assets. 

NOTE 9 Tangible fixed assets 

Construction Assets 

Buildings Machinery in progress in 

and and and advance operating 

land equipment payments leases 1 

Carrying amount, 1 Jan 2000 6,039 6,828 991 6,431 


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


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

Carrying amount, 

31 December 2000 6,262 6,951 732 8,022 


acquisition, 2001 1,715 1,238 362 4,870 


depreciation value, 2001 – 614 –1,611 – –2,213 


31 December 2001 7,363 6,578 1,094 10,679 


Accumulated acquisition 

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

Acquisition/divestments 

of businesses –475 47 –3 –1 

New acquisitions 271 721 1,404 4,295 

Divestments and disposals –179 –613 – –4,798 

Reclassifications 350 670 –1,101 63 


for the year – 478 –1,101 –36 –802 

Total 10,442 19,263 1,358 14,323 

Construction Assets 

Buildings Machinery in progress in 

and and and advance operating 

land equipment payments leases 1 

Accumulated depreciation 

1 January 3,621 12,961 4,733 

Divestments of businesses –166 61 –16 

Depreciation for the year 

– Vehicles and Service 354 1,502 549 

– Customer Finance operations 0 10 1,977 

Divestments and disposals – 44 –507 –2,344 

Reclassifications 1 –24 30 


for the year –153 –691 –224 

Total 3,613 13,312 4,705 

Accumulated revaluations 

1 January 33 – – 

Reversal of revaluation –2 – – 

Total 31 – – 

Accumulated write-downs 2 

1 January 2 – 154 

Reversal of write-down 3 –2 – –7 

Total 0 – 147 


31 December 6,860 5,951 1,358 9,471 

– of which “Machinery” 4,999 

– of which “Equipment” 952 

Tax assessment value, 

buildings (in Sweden) 920 

equivalent carrying amount 2,243 

Tax assessment value, 

land (in Sweden) 305 

equivalent carrying amount 401 

Firm obligations pertaining to leasing of premises are 

distributed as follows: 2008 

and 

2002 2003 2004 2005 2006 2007 later 

124 118 100 89 86 82 526 

1 Including assets for short-term leasing and assets that were capitalised due to 

repurchase obligations. 

2 Write-downs of assets in operating leases refer to value adjustment for possible 

credit losses. 

3 Related to adjustment of prior years. 

62

NOTE 10 Holdings in associated companies etc 

Holdings in associated 

companies 2002 2001 2000 

Accumulated acquisition value 29 332 750 

Accumulated share of income 38 387 827 

Write-down –2 – – 

Carrying amount 65 719 1,577 

Specification of the Group’s holdings of shares and 

participations in associated companies etc 

Carrying 

amount Value of Scania’s share 

Associated company/ Owner- in Parent in consolidated 

corporate ID number/ ship Company financial statements 

country of registration % fin. statem. 2002 2001 2000 

Beers N.V., 

NL003779439B01, 

the Netherlands 1 – – 836 

Svenska Volkswagen AB, 

556084-0968, Sweden 2 – 624 659 

Cummins-Scania High 

Pressure Injection L.L.C., 

043650113, USA 30 25 39 48 36 

WM-Data Scania AB, 

556084-1206, Sweden 3 – 45 46 

Swed Bus Pakistan Pvt Ltd, 

K-07897, Pakistan – 2 – 

ScaMadrid S.A., ES 

A80433519, Spain 49 1 13 – – 

ScaValencia S.A., 

ES A46332995, Spain 50 0 13 – – 

Holdings in 

associated companies 65 719 1,577 

Other shares and 

participations 61 76 14 

Convertible 

debenture loans 4 – – 446 

Total 126 795 2,037 

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

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

2 During 2002, Scania sold its 50 percent shareholding in Svenska Volkswagen 

AB, and the company is thus no longer included as an associated company. 

3 By agreement, in 2002 Scania gained a controlling influence in WM-Data Scania 

AB, which was then consolidated as a subsidiary. 

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

in January 2001. 

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

using the equity accounting method and its ownership stake in the 

shareholders’ equity of associated companies totalled the same 

amount (SEK 65 m.). 

The Group’s share of undistributed accumulated profit in associated 

companies comprised part of restricted reserves in the consolidated 

financial statements. It amounted to SEK 14 m. (387 and 

827, respectively). 

NOTE 11 Interest-bearing receivables (long-term) 

2002 2001 2000 

Receivables in 

Customer Finance operations 1 10,641 9,394 6,508 

Receivables in other operations 713 784 804 

Total 11,354 10,178 7,312 

1 Note 2 shows how the financial receivables of Customer Finance operations 

(including the short-term portion) changed during 2002. 

NOTE 12 Inventories 

2002 2001 2000 

Raw materials 822 858 781 

Work in progress 355 299 359 

Finished goods 6,685 6,789 6,327 

Total 7,862 7,946 7,467 

NOTE 13 Receivables (current) 

2002 2001 2000 

Interest-bearing trade debtors 816 988 940 

Receivables in Customer 

Finance operations 6,320 5,803 4,543 

Sub-total, interest-bearing trade 

debtors 7,136 6,791 5,483 

Non-interest-bearing 

trade debtors 6,497 7,731 8,953 

Prepaid expenses and 

accrued income 752 675 722 

Other receivables 1,753 1,824 1,594 

Total 16,138 17,021 16,752 

NOTE 14 Short-term investments 

2002 2001 2000 

Liquid investments 

(maturities of less than 90 days) 583 895 991 

Investments (maturities 91-365 days) 1,086 1,238 948 

Total 1,669 2,133 1,939 

More than half of the Group’s short-term investments were found in 

the Latin American subsidiaries, while the remaining portion was 

related to investments of surplus liquidity in Europe. 

Investments totalling SEK 613 m. (692 and 866, respectively) in 

value were restricted by agreement with third parties. 

NOTE 15 Shareholders’ equity 

The shareholders’ equity of the Scania Group has changed as 

follows: 

Accu- 

Unrestricted mulated 

share- exchange 

Share Restricted holders’ rate 

2001 capital reserves equity differences Total 

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

Dividend to 

shareholders – – –1,400 – –1,400 

Net income for 2001 – – 1,048 – 1,048 

Exchange rate 

differences for the year – – – 649 649 

Transfer between 

restricted and 

unrestricted equity – 295 –295 – 0 

Other – – 0 – 0 

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


1 January 2,000 5,665 6,759 1,571 15,995 

Dividend to shareholders – – –700 – –700 

Net income for 2002 – – 2,739 – 2,739 

Exchange rate 

differences for the year 1 – – – –1,103 –1,103 

Transfer between 

restricted and 

unrestricted equity 2 – –1,057 1,057 – 0 

Other – – 0 – 0 

31 December 2,000 4,608 9,855 468 16,931 

63

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

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

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

reserves are required. 

1 Exchange rate differences for the year arise when foreign net assets are 

translated according to the current accounting method. The year’s negative 

exchange rate difference of SEK –1,103 m. arose due to the appreciation of 

the Swedish krona. About SEK –500 m. of this effect was attributable to 

appreciation against USD, SEK –300 m. against Latin American currencies, 

mainly the Argentine peso, and about SEK –300 m. against EUR and other 

currencies. 

2 Transfers from restricted equity are explained mainly by exchange rate 

differences above. 

NOTE 16 Provisions for pensions and similar 

commitments 

2002 2001 2000 

Provisions for FPG/PRI 

guaranteed pensions 1,447 1,427 1,350 

Provisions for other pensions 454 446 376 

Provisions for medical care benefits 144 219 203 

Total 2,045 2,092 1,929 

The amount under “Provisions for pensions” corresponds to the 

actuarial projections of the collectively agreed ITP occupational 

pension plan and all voluntary pension obligations. 

The Swedish plan for salaried employees is administered by 

a Swedish multi-employer pension institution, the Pension Registration 

Institute (PRI). The actuarial assumptions are established by 

PRI. Scania’s pension liability consists of the sum of the discounted 

present value of the company’s estimated future pension payments, 

based on current salaries. Pensions are guaranteed through 

a credit insurance from the mutual insurance company Försäkringsbolaget 

Pensionsgaranti (FPG). 

“Provisions for pensions” include foreign subsidiaries, whose 

pension commitments are reported in accordance with the 

principles that apply in each country, provided that they permit 

earned pension benefits to be reported as an expense. 

For obligations related to medical care benefits, which are 

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

“Employers’ Accounting for Postretirement Benefits”. This means 

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

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

NOTE 17 Other provisions 

Provisions for: 

Restruc- Legal and tax 

Warranties turing disputes Other Total 

1 January 1,439 131 347 267 2,184 

Provisions during 

the year 568 73 80 580 1,301 

Provisions 

used during 

the year –549 –98 –35 –101 –783 

Provisions reversed 

during the year –55 – – –27 –82 

Exchange rate 

differences –86 –46 –158 –21 –311 

31 December 1,317 60 234 698 2,309 

The warranty provision per vehicle is based on warranty expenses 

previously recognised. 

The personnel reduction programme for Latin American 

operations that was approved late in 2001 was implemented 

during 2002. The continued concentrated of component 

manufacture to fewer production units also contributed to 

the change in provisions for restructuring. 

The largest single provision items in 2002, under the heading 

“Other”, were related to asset appraisal in Latin American 

operations, mainly in Argentina. 

NOTE 18 Borrowings 

Borrowings for Customer Finance operations are effectively 

matched against contracted payment flows with regard to currency 

and fixed-interest periods. Other borrowings mainly occur in each 

respective local currency, normally with a fixed-interest period of 2 

months. 

Short- and long-term 

borrowing, distributed by currency 1 2002 2001 2000 

SEK 9,159 12,593 10,505 

EUR 17,268 14,549 8,495 

GBP 670 1,698 1,417 

USD 609 1,806 4,567 

Other currencies 1,741 2,766 2,374 

Total 2 29,447 33,412 27,358 

Of which, attributable to 

Customer Finance operations 20,952 21,691 16,108 

Borrowings excluding 

Customer Finance operations 8,496 11,721 11,250 

1 Does not take into account currency hedging, which has been used to match 

borrowings by currency to funding requirements by currency. 

2 The average interest rate on borrowings, including borrowings for Customer 

Finance operations, was 4.6 percent (5.9 and 6.3, respectively) at year-end. 

The above loans fall due for repayment as follows 

2003 6,933 

2004 5,843 

2005 3,352 

2006 970 

2007 6,695 

2008 and later 5,654 

Total 29,447 

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

from an international banking syndicate that expires in November 

2004. At year-end 2002 the equivalent of USD 297 m. of this facility 

was being utilised. This means that USD 1,553 m., equivalent to 

SEK 13,705 m. translated at the closing day rate, was available 

under the credit facility on December 31, 2002. 

Under Scania’s Medium Term Note programme, the company 

can carry out borrowings with maturities ranging from 1 to 10 

years. At year-end, the ceiling was SEK 7,000 m., of which SEK 

6,489 m. worth of debt securities had been issued. During 2002, 

Scania issued two private bonds totalling SEK 210 m., divided into 

a zero coupon bond of SEK 80 m. maturing in 2007 and a coupon 

bond of SEK 130 m. maturing in 2005. 

A European Medium Term Note programme was established 

during 2001. Under this programme, Scania can take out loans in 

the international capital market. At year-end, the ceiling was EUR 

1,500 m. Within this programme, during 2002 Scania issued a 

public bond of EUR 500 m., which runs until March 2007. In 2001, 

when the programme was established, Scania issued a public 

bond of EUR 550 m. that matures in December 2008. In addition, 

during 2002 a smaller bond of EUR 30 m. was issued, resulting 

in a total issue amount of EUR 1,080 m. within a ceiling of EUR 

1,500 m. 

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

paper in Sweden and Belgium, with maximum amounts of SEK 

6,000 m. and EUR 400 m., respectively. At year-end, SEK 1,096 m. 

of the Swedish programme only had been utilised. 

In addition to the above programmes, Scania has also taken 

out loans, in the form of private placements, totalling SEK 4,586 m. 

The company has also taken out loans totalling SEK 5,289 m. in 

smaller amounts, with varied maturities. 

64

Net debt 2002 2001 2000 

Cash, bank balances 

and short-term investments 4,339 4,107 3,581 

Short-term borrowings – 6,933 –14,504 –11,986 

Long-term borrowings –22,514 –18,908 –15,372 

Total –25,108 –29,305 –23,777 

Of which, attributable to 

Customer Finance operations –20,800 –21,515 –15,996 

Net debt excluding 

Customer Finance operations – 4,309 –7,790 –7,781 

NOTE 19 Accrued expenses and prepaid income 

2002 2001 2000 

Accrued financial expenses 567 431 325 

Customary accrued 

expenses and prepaid income 3,897 3,440 2,891 

Prepaid income in operating leases 1 2,306 2,271 2,091 

Total 6,770 6,142 5,307 

1 Since the first quarter of 2001, Scania has applied recommendation RR11 

of the Swedish Financial Accounting Standards Council. This means that 

when selling vehicles with repurchase obligations or when selling with 

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

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

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

NOTE 20 Assets pledged 

2002 2001 2000 

Real estate mortgages 191 231 240 

Receivables – 2 5 

Total 191 233 245 

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

liabilities. In 2002, all collateral was pledged to credit institutions 

and was divided between SEK 10 m. in short-term borrowings 

and SEK 181 m. in long-term borrowings. 

NOTE 21 Contingent liabilities 

2002 2001 2000 

Contingent liability related to 

FPG credit insurance 185 27 27 

Contingent liability related to 

FPG credit insurance 

(associated companies) – 159 147 

Loan guarantees 43 92 144 

Discounted bills and contracts 72 140 133 

Other guarantees 380 437 430 

Total 680 855 881 

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

repurchase guarantees worth SEK 493 m. (804 and 727, respectively) to 

customers’ creditors. 

Repurchase obligations related to guaranteed residual values in operating 

leases amounted to SEK 6,077 m. (7,413 and 5,449, respectively). 

The Group is party to legal proceedings and related claims that are normal 

in the type of operations it engages in. However, Scania management 

has made the assessment that the ultimate resolution of these proceedings 

will not have any material impact on the Group’s financial position. 

NOTE 22 Consolidated statement of cash flow 

Items not affecting cash flow 2002 2001 2000 

Depreciation 2,093 2,157 1,999 

Value adjustment, short-term leasing 152 161 44 

Unrealised exchange rate differences 53 –58 –66 

Bad debts 207 263 61 

Associated companies 11 28 –143 

Taxes 423 –306 68 

Deferred profit recognition, 

operating leases –364 –120 154 

Reported capital gain/loss on 

divestment of businesses –534 5 –21 

Other 0 –6 –99 

Total 2,041 2,124 1,997 

Change in working capital 

Interest-bearing long-term receivables –58 97 –32 

Other receivables 281 1,876 –1,362 

Inventories –918 475 74 

Provisions for pensions 171 153 75 

Advance payments from customers 152 185 –40 

Trade creditors 162 –519 699 

Other liabilities and provisions 982 –372 170 

Total 772 1,895 –416 

Net investments excluding acquisitions/divestments 

of businesses 

Investments in fixed assets 1 –3,363 –2,405 –1,968 

Divestments of fixed assets 442 527 447 

Total –2,921 –1,878 –1,521 

1 Of which, SEK 573 m. for development expenditures capitalised in 2002. 

Net investment through acquisitions/divestments 

of businesses 

Proceeds from sale of shares (after subtracting liquid assets in 

divested businesses) 2 1,350 –42 24 

Acquisitions of businesses 2 –185 –887 –53 

Investment in convertible 

debenture loans 3 – – –428 

Total 1,165 –929 –457 

Change in net debt through financing activities 

Net change in short-term borrowings –5,814 –782 –2,070 

Repayment of long-term borrowings –4,983 –1,248 –190 

Increase in long-term borrowings 8,984 4,032 4,221 

Net change in restricted deposits 0 117 59 

Total –1,813 2,119 2,020 

Interest and taxes paid 2002 2001 2000 

Interest received during the year 260 294 415 

Interest paid during the year –721 –1,035 –882 

Taxes paid during the year –573 –1,049 –1,373 

Dividends received from 

associated companies 25 70 98 

2 During 2002, Scania acquired businesses in Slovakia and Sweden as well as 

distribution rights in Argentina. During the year, Scania divested its holding in 

Swedish car operations and the Silkeborg bus business in Denmark. The value 

of the liabilities and assets acquired/divested was as follows: 

Assets and liabilities attributable to acquisitions/divestments of subsidiaries 

and other business units Acquisitions Divestments 

Tangible and intangible fixed assets 257 –390 

Inventories 12 –453 

Receivables 84 –280 

Liquid assets 61 –21 

Borrowings 49 284 

Other liabilities and provisions –182 637 

Shares in associated companies and 

other companies 10 – 

Gain/loss from divestments of businesses – –534 

Carrying amount of previously owned 

holdings in new Group company –45 –614 

Purchase price paid/sale price received 246 –1,371 

Liquid assets in acquired/divested businesses –61 21 

Impact on consolidated liquid assets and 

short-term investments 185 –1,350 

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

in January 2001. 

65

NOTE 23 Wages, salaries and other remuneration 

and number of employees 

Wages, salaries and other remuneration 2002 2001 2000 

Operations in Sweden: 

Boards of Directors, Presidents and 

Executive Vice Presidents 44 41 53 

– Of which bonuses 11 14 25 

Other employees 3,229 3,139 3,155 

Operations outside Sweden: 

Boards of Directors, Presidents 

and Executive Vice Presidents 143 164 132 

– Of which bonuses 12 20 15 

Other employees 3,751 3,949 3,288 

Total 7,167 7,293 6,628 

Pension costs and other 

mandatory payroll fees 2,509 2,866 2,358 

Of which pension costs 1 656 728 485 

Total wages, salaries and remuneration, 

pension costs and other 

mandatory payroll fees 9,676 10,159 8,986 

Number of employees, 

31 December 2002 2001 2000 


Production and corporate units 14,250 13,403 14,093 

Commercial companies 9,798 10,688 9,391 

Total European operations 24,048 24,091 23,484 

Latin American operations 3,877 4,199 3,688 

Customer Finance operations 305 251 194 

Total 28,230 28,541 27,366 

– of which employees on 

temporary contracts 672 766 1,857 

1 Of the pension cost in the consolidated financial statements, SEK 35 m. (25 and 

25, respectively) was for Boards of Directors and Presidents in the Scania Group. 

At year-end, the total pension commitment was SEK 82 m. for this category. 

2002 2001 2000 

Wages, salaries and other Wages, Wages, Wages, 

remuneration, pension costs salaries salaries salaries 

and other mandatory payroll and other Mandatory (of which and other Mandatory (of which and other Mandory (of which 

fees by country remuneration payroll fees pensions) remuneration payroll fees pensions) remuneration payroll fees pensions) 

Operations in Sweden: 3,273 1,659 (440) 3,180 1,878 (538) 3,208 1,543 (320) 


The Netherlands 721 138 (52) 689 138 (36) 355 78 (31) 

Great Britain 613 89 (31) 578 92 (33) 517 73 (25) 

Norway 326 55 (15) 303 49 (11) 262 32 (6) 

Brazil 316 106 (0) 441 171 (0) 489 172 (0) 

Germany 308 67 (11) 309 66 (7) 218 47 (9) 

France 260 139 (41) 242 140 (41) 200 117 (34) 

Finland 193 64 (35) 186 62 (33) 177 62 (33) 

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

Belgium 145 47 (0) 142 53 (0) 148 49 (0) 

Switzerland 122 27 (0) 122 26 (0) 110 22 (0) 

40 countries with < SEK 100 m. 2 734 117 (30) 945 190 (28) 813 161 (25) 

Total, operations outside Sweden 3,894 850 (216) 4,113 988 (190) 3,420 815 (165) 

Group total 7,167 2,509 (656) 7,293 2,866 (728) 6,628 2,358 (485) 

Average number of employees 

(excluding employees on 

temporary contracts) 2002 2001 2000 

Operations in Sweden: 

Average number of employees 10,798 11,924 12,060 


Number of countries 50 49 43 

Average number of employees 15,170 15,057 13,556 

Total number of employees 25,968 26,981 25,616 

Average number of employees, 

by country (excluding employees 

on temporary contracts) 2002 2001 2000 

Operations in Sweden: 10,798 11,924 12,060 

– of whom men 9,054 10,182 10,333 

– of whom women 1,744 1,742 1,727 


The Netherlands 2,272 2,384 1,510 

Brazil 2,071 2,050 2,151 

Great Britain 1,685 1,632 1,586 

Germany 949 927 695 

France 945 907 871 

Norway 810 839 863 

Argentina 747 760 833 

Finland 683 694 743 

Belgium 614 614 583 

Poland 434 416 406 

Austria 430 428 396 

2002 2001 2000 

Mexico 296 309 150 

Switzerland 296 275 272 

Australia 277 290 295 

Russia 275 160 108 

South Africa 272 261 230 

South Korea 253 163 121 

Denmark 217 486 551 

Italy 183 181 174 

Czech Republic 180 127 107 

Spain 134 130 102 

Malaysia 107 98 77 

Morocco 103 107 87 

27 countries with < 100 employees 3 937 819 645 

Total, operations outside Sweden 15,170 15,057 13,556 

– of whom men 13,332 13,332 11,987 

– of whom women 1,838 1,725 1,569 

Total, average number of employees 25,968 26,981 25,616 

2 In 2001, 37 countries had less than SEK 100 m. in wages, salaries and other 

remuneration. In 2000, the figure was 31 countries. 

3 In 2001 and 2000, 27 and 22 countries, respectively, had fewer than 100 

Scania employees. 

66

NOTE 24 Information regarding compensation to 

executive officers and auditors 

According to the decision of the Annual Meeting, remuneration 

during 2002 to the external members of the Board of Directors 

elected by the Annual Meeting amounted to SEK 2,625,000. The 

Chairman received remuneration of SEK 700,000. 

Beyond the customary remuneration to the Board, no compensation 

from Scania was paid to the members of the Board who are 

not employees of the company. 

Scania’s incentive programme for executive officers, among 

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

1997, is based on operating return, defined as Scania Group net 

income after subtracting the cost of shareholders’ equity. 

The programme consists of a portion that is related to Scania’s 

ability to increase its operating return as defined according to the 

preceding paragraph (maximum 67.5 percent of fixed salary) from 

one year to another. The second component in the incentive programme 

is related to actual ability to generate a return during the 

year in question, all provided that the return calculated according 

to the preceding paragraph is positive (maximum 150 percent of 

fixed salary). As indicated, both components are designed in such 

a way that they contain an upper limit for the compensation that is 

payable according to the programme, which situation has never 

occurred. 

The outcome of the incentive programme for the period 1997– 

2001 for the members of the Executive Board, among them the 

President, has fluctuated from zero to 88 percent of fixed salary. 

The outcome for the period has, on average, amounted to 44 percent 

of fixed salary. 

The incentive programme resulted in a positive outcome for 

2002, which will be settled during 2003. For the President the 

programme resulted in SEK 6,622,500. The corresponding total 

for other Group Management executive officers amounts to SEK 

38,742,877. The programme did not lead to any outcome for 

2001. 

The salary paid to the President during 2002 (including 

taxable benefits) totalled SEK 5,132,408. His fixed salary of 

SEK 5,000,000 has remained unchanged since 2000. As from 

2003, the fixed annual salary for the President is adjusted to 

SEK 5,800,000. 

Group Management executive officers, including the President, 

are covered by a defined contribution pension system that is in 

addition to the public pension and the ITP occupational pension, 

with a retirement age of 65. 

According to this defined contribution system, benefits accrue 

by means of annual payment of premiums by the company. Added 

to this is the value of annual individual employee co-payments, 

amounting to 5 percent of fixed salary. 

The annual company-paid premium for the President according 

to his pension agreement amounts to 35 percent of fixed salary – 

SEK 1,750,000 for 2002 – for as long as the President remains an 

employee of the company. 

The annual company-paid premium for other members of the 

Executive Board – excluding the President – varies between 27 and 

31 percent of fixed salary. The premium for other members of the 

Group Management varies between 11 and 21 percent of annual 

fixed salary. 

The President holds since 1999 a non-transferable employee 

stock option without market value, entitling him, after five years but 

no later than after seven years, to purchase a maximum of 220,000 

shares in Scania AB at a price of SEK 196 per share. Scania’s 

costs for this programme are known and were charged to earnings 

earlier. The option carries an entitlement to purchase existing Series 

B shares from Investor AB and thus will not lead to any risk or dilution 

for Scania’s shareholders. 

If the President resigns of his own volition, he is entitled to his 

salary for a six month notice period. 

In light of the complex ownership structure of Scania AB the 

Board’s committee for remuneration issues during 2001 approved 

a five-year employment agreement with the President. The new 

agreement, which stipulates the conditions of the President’s 

employment until 30 March 2006, prescribes that an annual extra 

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

the five years even if employment should cease due to termination 

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

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

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

made during 2002. 

The employment agreement with the President will end automatically 

twelve months after Volkswagen AG has reduced its 

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

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

The other members of the Executive Board, if the company terminates 

their employment, are entitled to severance pay equivalent 

to a maximum of two years’ salary, in addition to their salary during 

the six-month notice period. If they obtain new employment within 

18 months, counting from their termination date, their severance 

pay ceases. In case of a substantial change in the ownership structure 

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

resign of their own volition with severance pay amounting to two 

years’ salary. 

Compensation issues for the President and the Executive Board 

are decided by the Board after preparation by the Remuneration 

Committee, which consists of Dr. Bernd Pischetsrieder, Chairman; 

Peggy Bruzelius; Rolf Stomberg; and Clas Åke Hedström. During 

2002 this committee had one meeting. 

Salaries and compensation to the Chairman of the Board, the 

President and Group Management executive officers are shown in 

the following table (excluding employers’ contribution according 

to law): 

Fixed salary/ Outcome, Pension cost, Pension cost, 

Board incentive defined defined benefit Other 

SEK remuneration 2002 contribution system system (ITP) remuneration Summary 

Chairman of 

the Board 700,000 700,000 

President and CEO 5,116,063 6,622,500 6,385,556 140,821 16,345 18,281,285 

Executive officers 

in the Group 

Management incl the 

Executive Board 

(21 persons) 32,410,728 38,742,877 8,862,185 5,694,711 2,162,934 87,873,435 

Fixed salary/ Board remuneration: corresponds to legal information to tax authorities. 

Pension cost, defined-contribution system: annual company paid premium and individual employee co-payment 

according to the DC Pension System for Executives and ITPK (defined contribution portion of the ITP occupational pension). 

Pension cost, defined-benefit system (ITP): risk insurance premium and the increase of book reserved old age pension 

according to the ITP occupational pension. 

Other remuneration: taxable portion of car allowance, newspaper subscriptions etc. 

Retirement: the retirement age according to agreements is 60 for the Executive Board including the President 

and 62 for executives in the Group Management. 

67

Fees and other compensations to external auditors reported as 

expenses during the year are shown in the following table, SEK m.: 


Auditing Other Auditing Other 

Auditors firm assignments assignments assignments assignments 

KPMG 20 10 18 5 

Ernst & Young 5 2 5 3 

Other auditors 13 12 11 7 

Total 38 24 34 15 

NOTE 25 Net assets outside Sweden 

Net assets outside Sweden consist of net Group-external 

assets in foreign subsidiaries and net foreign Group-external 

receivables and liabilities of Swedish companies that are not 

hedged by funding in the corresponding currency. 

Currency 2002 2001 2000 

Europe 

EUR 5,675 5,154 5,383 

GBP 863 717 719 

Other European currencies 1,051 1,091 1,130 

Latin America 

USD –237 –701 477 

Real, peso and other local currencies 2,659 3,512 3,097 

Other countries 

USD 340 87 111 

Other currencies 1,046 690 559 

Total 11,397 10,550 11,476 

Of these net assets, SEK 2,350 m. consisted of tangible 

fixed assets translated at historical exchange rates. About 

SEK 570 m. of net foreign assets were hedged by forward 

contracts. SEK 350 m. was in EUR and SEK 220 m. in USD. 

Comparative figures for 2001 have been adjusted due to 

acquisitions of businesses. 

For information on accumulated exchange rate differences 

that are reported directly against shareholders’ equity, see Note 15. 

NOT 26 Valutaexponering i rörelseresultat 

NOTE 26 Currency exposure in operating income 

The net amount of operating revenues and operating expenses in 

European operations exposed to foreign currencies, by 

region/country. 

2002 2001 2000 

Europe 

EMU countries (EUR) 5,324 5,132 6,856 

Great Britain (GBP) 3,334 2,730 3,290 

Other western Europe 

(local currencies) 1,896 2,058 1,784 

Central and eastern Europe 

(local currencies, EUR) 2,436 2,081 1,552 

Total Europe 12,990 12,001 13,482 

Asia/Oceania 

(USD, AUD, EUR, KRW) 2,757 1,945 1,871 

Africa (USD, ZAR, EUR) 626 578 517 

Latin America (USD) 1 –537 506 239 

Total, Europe 15,836 15,030 16,109 

1 This amount reflects the exposure of European operations to Latin America. 

Compared to 2001, the operating income of European operations 

was influenced positively by currency rate effects totalling about 

SEK 800 m. Currency hedging affected the year’s earning by 

SEK 500 m. (–775). 

Local currencies in Latin America have fluctuated sharply, with 

sizeable price and cost changes as a result. For this reason, a 

description of exposure in local currencies is not relevant and has 

thus been omitted from the above table. 

In Latin American operations, the effect was estimated at 

SEK 400 m. 

NOTE 27 Effect of exchange rate differences 

on net income 

The amounts that affected 2002 net income were exchange rate 

gains minus exchange rate losses on the difference between the 

invoice exchange rate and the exchange rate on the payment date 

for receivables and liabilities, plus exchange rate differences that 

arose from applying the monetary/ non-monetary-method. 

Net income in 2002 was affected by exchange rate differences 

as presented in the following table: 


Sales 45 243 

Cost of goods sold 2 –132 

Selling expenses 26 53 

Income from Customer 

Finance operations 3 2 

Operating income 276 166 

Financial income and expenses –160 –25 

Taxes –14 –83 

Effect on net income –98 58 

For information on accumulated exchange rate differences that are 

accounted for directly in shareholders’ equity, see Note 15. 

68

THE PARENT COMPANY 

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

NOTE 1 Financial income and expenses 

2002 2001 2000 

Interest income 

From subsidiaries 102 107 54 

Other 12 0 – 

Sub-total 114 107 54 

Interest expenses 

To subsidiaries – – –2 

Other 0 –2 –10 

Sub-total 0 –2 –12 

Exchange rate differences on 

forward exchange contracts for hedging 

net assets of foreign subsidiaries 68 –54 –55 

Total financial income and expenses 182 51 –13 

Dividends 1,000 – – 

Net financial items 1,182 51 –13 

NOTE 4 Shareholders’ equity 

Unrestricted 

Share Statutory shareholders’ 

2001 capital reserve equity Total 

Balance, 1 January 2,000 1,120 8,450 11,570 

Dividend to shareholders –1,400 –1,400 

Net income for 2001 703 703 

Balance, 

31 December 2001 2,000 1,120 7,753 10,873 


Balance, 1 January 2,000 1,120 7,753 10,873 

Dividend to shareholders –700 –700 

Group contributions –310 –310 

Net income for 2002 1,311 1,311 

Balance, 

31 December 2002 2,000 1,120 8,054 11,174 

2002 2001 2000 

2000 assessment 705 705 705 

2001 assessment 634 634 634 

2002 assessment 326 326 

Total 2,586 2,836 3,111 

SEK 724 m. (794 and 871, respectively) of “Untaxed reserves” consists of a 

deferred tax liability, which is part of the Scania Group’s deferred tax liabilities. 

NOTE 6 Contingent liabilities 

2002 2001 2000 

Contingent liability related to FPG 

credit insurance (Group companies) 1,457 1,456 1,377 

Contingent liability related to FPG 

credit insurance (associated companies) – 159 148 

Loan guarantees on 

behalf of Group companies 1 25,228 25,257 17,951 

Total 26,685 26,872 19,476 

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

by Scania CV AB. 

NOTE 2 Taxes 

2002 2001 2000 

Current tax –121 –273 –711 

Total –121 –273 –711 

SEK +121 m., has been reported directly against shareholders’ equity. 

The tax payable amounts to zero. 

NOTE 5 Untaxed reserves 

2002 2001 2000 

Tax allocation reserve 

1996 assessment 601 

1997 assessment 250 250 

1998 assessment 284 284 284 

1999 assessment 637 637 637 

NOTE 7 Information regarding compensation 

to executive officers and auditors 

The President of Scania AB and the other members of the 

executive management hold identical positions in Scania CV AB. 

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

The reader is therefore referred to Notes 23 and 24. Compensation 

of SEK 18,000 was paid to independent auditors in 2002 with 

respect to the Parent Company. 

NOTE 3 Shares in Group companies 

% Carrying amount Carrying amount Carrying amount 

Subsidiary/corporate ID number/country of registration ownership 2002 2001 2000 

Scania CV AB, 556084-0976, Sweden 100,0 8,401 8,401 8,401 

Scania Latin America Ltda, 635,010,727,112, Brazil 100,0 2,257 2,257 2,257 

Scania Argentina S.A. 30-51742430-3, Argentina 73,6 1 298 298 298 

Scania del Peru S.A. 101, 36300, Peru 5,2 1 15 15 15 

Total 2 10,971 10,971 10,971 

A complete list of subsidiaries and associated companies was 

included in the annual report filed with the Swedish Patent and 

Registration Office and may be obtained from Scania’s Head 

Office in Södertälje, Group Financial Reporting. 

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. 

69

Proposed distribution 

of earnings 

The Scania Group’s unrestricted shareholders’ equity 

according to the consolidated balance sheet amounts to SEK 

10,323 m., of which net income for the year is SEK 2,739 m. 

The Board of Directors and the President propose that the 

following amounts at the disposal of the Annual Meeting: 

Södertälje, 31 January 2003 

SEK m. 

Retained earnings 6,743 

Net income for the year 1,311 

Total 8,054 

be distributed as follows: 

To the shareholders, a dividend of 

SEK 5.50 per share 1,100 

To be carried forward 6,954 

Total 8,054 

Dr. Bernd Pischetsrieder 

Chairman 

Peggy Bruzelius Clas Åke Hedström Rolf Stomberg 

Lothar Sander Kjell Wallin Marcus Wallenberg 

Dr. Ferdinand Piëch Cees J.A. van Lede Jan Westberg 

After implementing the proposed distribution of earnings, the 

shareholders’ equity of the Parent Company is as follows: 

SEK m. 

Share capital 2,000 

Statutory reserve 1,120 

Retained earnings 6,954 

Total 10,074 

Leif Östling 


Our auditors’ report was submitted 3 March 2003 

Caj Nackstad 

Gunnar Widhagen 

Authorised Public Accountant 

Authorised Public Accountant 

70

Auditors’ report 

To the Annual General Meeting of the shareholders of 

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

We have audited the annual accounts, the consolidated 

accounts, the accounting records and the 

administration of the Board of Directors and the President 

of Scania AB (publ.) for the financial year 2002. 

These accounts and the administration of the company 

are the responsibility of the Board of Directors 

and the President. Our responsibility is to express an 

opinion on the annual accounts, the consolidated 

accounts and the administration based on our audit. 

We conducted our audit in accordance with 

generally accepted auditing standards in Sweden. 

Those standards require that we plan and perform 

the audit to obtain reasonable assurance that the 

annual accounts and the consolidated accounts are 

free of material misstatement. An audit includes 

examining, on a test basis, evidence supporting the 

amounts and disclosures in the accounts. An audit 

also includes assessing the accounting principles used 

and their application by the Board of Directors and 

the President, as well as evaluating the overall presentation 

of information in the annual accounts and the 

consolidated accounts. As a basis for our opinion 

concerning discharge from liability, we examined 

significant decisions, actions taken and circumstances 

of the company in order to be able to determine the 

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

the President. We also examined whether any Board 

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

in contravention of the Companies Act, the Annual 

Accounts Act or the Articles of Association. We believe 

that our audit provides a reasonable basis for our 

opinion set out below. 

The annual accounts and the consolidated accounts 

have been prepared in accordance with the Annual 

Accounts Act and, thereby, give a true and fair view of 

the company’s and the Group’s financial position and 

results of operations in accordance with generally 

accepted accounting principles in Sweden. 

We recommend to the Annual General Meeting of 

shareholders that the income statements and balance 

sheets of the Parent Company and the Group be 

adopted, that the profit for the Parent Company be 

dealt with in accordance with the proposal in the 

administration report of the Directors and that the 

members of the Board of Directors and the President 

be discharged from liability for the financial year. 

Södertälje, 3 March 2003 

Caj Nackstad 

Authorised 

Public Accountant 

KPMG Bohlins AB 


Authorised 

Public Accountant 

Ernst & Young AB 

71

Sales and income by quarter 

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

2002 2001 2000 2002 2001 2000 2002 2001 2000 2002 2001 2000 


Trucks 9,132 10,893 12,054 10,198 11,833 13,557 8,435 9,166 10,900 12,130 11,767 15,807 

Buses 908 834 952 858 1,261 1,084 730 1,178 869 1,278 1,399 1,269 

Total 10,040 11,727 13,006 11,056 13,094 14,641 9,165 10,344 11,769 13,408 13,166 17,076 

Sales, SEK m. 

European operations 10,127 10,101 9,540 11,171 10,909 10,372 9,485 9,182 8,142 12,436 12,304 12,043 

Latin American operations 1,114 1,260 1,120 909 1,570 1,421 1,208 1,387 1,619 1,399 1,589 1,944 

Less intra-Group sales –194 –279 –305 –267 –276 –417 – 600 –275 –436 – 648 –259 –303 

Total Scania products 11,047 11,082 10,355 11,813 12,203 11,376 10,093 10,294 9,325 13,187 13,634 13,684 

Car operations 1,440 1,323 1,695 – 844 1,585 1,871 288 1,413 1,581 261 1,531 1,511 

Scania Group total 12,487 12,405 12,050 10,969 13,788 13,247 10,381 11,707 10,906 13,448 15,165 15,195 

Operating income, SEK 

European operations 1,219 1,509 1,500 1,427 1,218 1,457 1,021 920 1,184 1,736 1,419 2,354 

Latin American operations –58 –36 –59 –45 –47 9 41 –118 108 121 –380 244 

Customer Finance operations 81 70 38 85 72 42 82 81 46 60 55 53 

Research and development –392 –485 –353 –346 –521 –445 –339 –401 –356 –360 –548 –467 

Corporate costs –126 –115 –77 –129 –125 –79 –96 –98 –110 –139 –114 –280 

Total Scania products 724 943 1,049 992 597 984 709 384 872 1,418 432 1,904 

Car operations 46 9 56 515 53 67 1 18 29 1 31 123 

Scania Group total 770 952 1,105 1,507 650 1,051 710 402 901 1,419 463 2,027 

Income after financial 

items, SEK m. 564 819 955 1,366 407 891 532 298 742 1,260 17 1,866 

Net income, SEK m. 383 573 661 1,076 265 616 372 199 514 908 11 1,289 

Earnings per share, SEK 1.92 2.87 3.31 5.38 1.33 3.08 1.86 0.99 2.57 4.54 0.05 6.45 

Operating margin, percent 

European operations 12.0 14.9 15.7 12.8 11.2 14.0 10.8 10.0 14.5 14.0 11.5 19.5 

Latin American operations – 5.2 –2.9 –5.3 – 5.0 –3.0 0.6 3.4 –8.5 6.7 8.6 –23.9 12.6 

Scania products 6.6 8.5 10.1 8.4 4.9 8.6 7.0 3.7 9.4 10.8 3.2 13.9 

Car operations 3.2 0.7 3.3 – 3.3 3.6 0.3 1.3 1.8 0.4 2.0 8.1 

Total 6.2 7.7 9.2 – 4.7 7.9 6.8 3.4 8.3 10.6 3.1 13.3 

72

Key financial ratios and definitions 

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

2002 2001 2000 

Earnings per share, SEK 13.70 5.24 15.40 

Return on shareholders’ equity, % 17.2 6.5 21.6 

Profit margin, % 9.2 4.7 10.5 

Capital turnover rate, times 1.71 1.80 1.88 

Return on capital employed, % 15.8 8.4 19.7 

Debt/equity ratio 0.25 0.49 0.50 

Interest coverage ratio, times 4.9 2.2 5.0 

Equity/assets ratio, % 25.6 23.4 25.8 

Earnings per share 

Net income divided by the number of shares. 

Return on shareholders’ equity 

Net income as a percentage of shareholders’ equity. 

Profit margin 

Operating income excluding Customer Finance operations 

plus financial income as a percentage of sales. 

Capital turnover 

Sales divided by capital employed (total assets less noninterest-bearing 

liabilities), with Customer Finance operations 

reported according to the equity accounting method. 

Return on capital employed 

Operating income excluding Customer Finance operations 

plus financial income as a percentage of capital employed, 

with Customer Finance operations reported according to the 

equity accounting method. 

Net debt/equity ratio 

Short- and long-term borrowings (excluding pension liabilities 

and net debt in Customer Finance operations) less 

liquid assets, divided by shareholders’ equity. 

Interest coverage 

Operating income plus financial income divided by financial 

expenses. 

Equity/assets ratio 

Shareholders’ equity as a percentage of total assets, including 

Customer Finance operations, on each respective balance 

sheet date. 

73

Multi-year statistical review 

SEK m. unless otherwise indicated 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 

Sales by market area 

Western Europe 34,982 35,635 35,370 33,146 28,874 23,102 21,009 21,715 14,880 10,920 11,424 12,218 

Central and eastern Europe 3,139 2,624 1,826 1,330 1,814 1,398 827 732 266 195 289 133 

Europe 38,121 38,259 37,196 34,476 30,688 24,500 21,836 22,447 15,146 11,115 11,713 12,351 

Latin America 3,542 5,576 5,529 4,247 5,974 6,798 4,800 5,742 6,109 4,619 3,040 2,566 

Asia 3,123 2,898 2,390 1,118 1,018 1,932 1,740 1,904 1,504 1,171 1,084 2,286 

Other markets 2,529 2,364 2,050 1,784 1,907 1,857 1,578 1,623 1,329 1,062 715 787 

Revenue deferral, vehicles 1 –1,175 –1,884 –2,425 –3,066 –2 166 –1 783 –1 160 –568 

Total, Scania products 46,140 47,213 44,740 38 ,559 37,421 33,304 28,794 31,148 24,088 17,967 16,552 17,990 

Sales by area of operations 


Latin American operations 4,630 5,806 6,104 4,560 6,151 6,973 4,754 5,933 6,108 4,619 3,040 2,566 

Less intra-Group sales –1,709 –1,089 –1,461 –1,042 –1,548 –947 –456 –764 –562 –303 –170 –202 

Total, Scania products 46,140 47,213 44,740 38,559 37,421 33,304 28,794 31,148 24,088 17,967 16,552 17,990 

Car operations 2 1,145 5,852 6,658 5,485 5,725 4,632 3,776 3,124 2,560 2,222 1,470 1,399 

Total 47,285 53,065 51,398 44,044 43,146 37,936 32,570 34,272 26,648 20,189 18,022 19,389 



Latin American operations 59 –581 302 –55 –402 688 691 413 915 483 242 136 

Customer Finance operations 308 278 179 140 91 73 55 98 5 –91 –38 –23 

Research and development –1,437 –1,955 –1,621 –1,267 –1,168 –1,248 –1,084 –923 –805 –783 –738 –761 

Corporate costs 4 –490 –452 –546 –531 

Total, Scania products 3,843 2,356 4,804 4,795 3,342 2,789 2,842 5,109 3,736 880 1,273 1,565 

Car operations 2 563 111 275 250 250 258 215 243 173 121 33 86 

Total 4,406 2,467 5,079 5,045 3,592 3,047 3,057 5,352 3,909 1,001 1,306 1,651 

Operating margin, percent 

European operations 12.5 7.0 11.5 14.2 11.9 8.5 9.3 17.7 15.2 3.6 7.8 9.3 

Latin American operations 1.3 –15.5 0.1 –7.2 –10.8 5.8 10.7 7.0 15.0 10.5 8.0 5.3 

Total, Scania products 8.3 5.0 10.7 12.4 8.9 8.4 9.9 16.4 15.5 4.9 7.7 8.7 

Car operations 2 49.3 1.9 4.1 4.6 4.4 5.6 5.7 7.8 6.8 5.4 2.2 6.1 

Total 9.3 4.6 9.9 11.5 8.3 8.0 9.4 15.6 14.7 5.0 7.2 8.5 

Gross capital expenditure for fixed assets excluding lease assets, renting and goodwill 


Latin American operations 85 208 236 354 444 974 671 455 298 276 182 107 

Total 3,025 1,980 1,825 1,876 2,026 2,566 2,579 2,182 2,149 1,485 1,501 1,308 

Inventory turnover rate, times 

Inventory turnover rate, times 3 6.1 7.2 7.2 6.2 6.5 6.5 5.3 6.6 6.5 4.9 4.3 4.4 

1 Refers to the difference between sales recognised as revenues and sales value based on delivery. 3 Calculated as sales divided by average inventory. 

2 Swedish car operations were divested as per 1 January 2002. See also Note 4. 4 Before 1999, no separate figures for corporate costs. 

74

2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 

Vehicles produced, units 


Trucks 37,052 37,399 44,235 39,794 38,886 33,092 31,316 33,459 23,367 16,014 19,893 23,721 

Buses 2,418 2,624 2,118 2,528 2,818 2,817 2,326 2,373 1,542 1,176 1,557 1,321 

Latin American operations 

Trucks 4,381 6,088 7,174 5,985 6,660 10,463 7,139 8,515 8,570 6,610 4,587 4,234 

Buses 1,294 2,040 2,054 1,175 1,697 1,769 1,575 2,091 1,303 1,393 2,533 2,626 

Total 45,145 48,151 55,581 49,482 50,061 48,141 42,356 46,438 34,782 25,193 28,570 31,902 

Trucks delivered by market area, units 

Western Europe 28,335 30,416 38,476 36,106 32,686 26,756 26,249 26,596 17,814 13,052 16,366 18,463 

Central and eastern Europe 3,099 2,579 2,287 1,551 2,237 1,833 1,030 951 312 248 507 260 

Latin America 3,633 6,181 6,777 6,253 7,621 9,649 7,377 7,964 8,713 6,678 4,734 4,293 

Asia 3,486 2,994 3,438 1,481 1,410 3,096 2,997 3,329 2,818 2,256 2,440 5,530 

Other markets 1,342 1,489 1,340 1,260 1,599 1,058 1,375 1,627 1,178 851 611 587 

Total 39,895 43,659 52,318 46,651 45,553 42,392 39,028 40,467 30,835 23,085 24,658 29,133 

Buses and coaches delivered by market area, units 

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

Central and eastern Europe 126 127 84 67 106 95 83 45 40 35 16 2 

Latin America 958 1,595 1,843 1,237 1,697 1,829 1,641 1,878 1,287 1,459 2,677 2,493 

Asia 440 666 278 160 78 308 309 304 140 133 249 144 

Other markets 632 583 351 364 505 757 275 301 237 215 355 276 

Total 3,774 4,672 4,174 3,763 4,117 4,584 3,963 4,170 2,687 2,677 4,176 3,982 

Total market for heavy trucks and buses, units 


Trucks 211,700 235,000 243,700 235,900 207,300 170,300 172,000 173,300 133,300 114,100 149,000 170,000 

Buses 22,300 23,500 23,500 22,400 21,000 18,000 17,500 15,600 13,400 15,300 16,500 17,200 

Brazil 

Trucks 16,975 18,046 17,341 13,456 15,763 17,861 13,682 19,299 18,931 13,938 8,402 9,389 

Buses 9,301 10,833 10,626 8,057 13,438 13,424 15,087 16,969 12,266 11,073 13,222 16,220 

Number of employees 5 


Production companies 14,250 13,403 14,093 13,532 13,485 13,197 13,004 14,364 12,374 10,493 11,417 12,736 

Commercial companies 9,798 10,688 9,391 9,001 6,194 6,160 4,877 4,050 3,694 3,823 4,278 4,043 

Total, European operations 24,048 24,091 23,484 22,533 19,679 19,357 17,881 18,414 16,068 14,316 15,695 16,779 

Latin American operations 3,877 4,199 3,688 3,660 3,714 4,299 4,250 4,520 4,285 4,217 4,433 4,941 

Customer Finance operations 305 251 194 166 144 107 75 90 72 60 65 52 

Total 28,230 28,541 27,366 26,359 23,537 23,763 22,206 23,024 20,425 18,593 20,193 21,772 

5 Including employees with temporary contracts. 

75

BOARD OF DIRECTORS 

Dr. Bernd Pischetsrieder 

Born 1948 

Chairman since 2002. 

Chairman of the Board of Management of 

Volkswagen AG. 

Other directorships: 

Audi AG, SEAT, S. A., Dresdner Bank AG, 

Frankfurt, Metro AG, Münchener 

Rückversicherungs-Gesellschaft AG and 

Tetra-Laval Group. 

Shares in Scania: 0 

Clas Åke Hedström 

Born 1939. 

Vice Chairman 

since 2002. 

Member since 1995. 

Chairman of Sandvik AB. 


AB SKF and Association of Swedish 

Engineering Industries. 

Shares in Scania: 1,000 

Leif Östling 

Born 1945. 


President and CEO of Scania AB. 


BT Industries AB, Eldon Thule and 

ADR Haanpää. 


Dr. Ferdinand Piëch 

Born 1937. 

Chairman 2000–2002. 

Member since 2002. 

Chairman of the Supervisory Board of 

Volkswagen AG. 


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

GmbH, Salzburg and Porsche GesmbH, 

Salzburg. 


Lothar Sander 

Born 1950. Member since 2000. 

Member of the Board of Management 

of the Volkswagen Brand. 


Flughafen Braunschweig GmbH 

and TAS Tvornica Automobilia 

Sarajevo GmbH, as well as a number 

of directorships in subsidiaries of 

the Volkswagen Group. 


Marcus Wallenberg 


President and CEO of Investor AB. 

Vice Chairman of Telefon AB 

L M Ericsson and Vice Chairman of 

Saab AB. Deputy Chairman of SEB. 


AstraZeneca UK, Stora Enso Oy 

and the Knut and Alice Wallenberg 

Foundation. 


76

Dr. Rolf Stomberg 


Chairman of Management Consulting 

Group PLC, Great Britain. 


Reed Elsevier PLC, Great Britain, 

Smith & Nephew PLC, Great Britain, 

Cordiant Communications PLC, Great 

Britain, TPG Group, The Netherlands, 

Stinnes AG, Germany and Deutsche 

BP Aktiengesellschaft. 


Kjell Wallin 

Born 1943. 


Representative of the 

Metal Workers’ Union at 

Scania 


3 Peggy Bruzelius 


Chairman of Grand Hotel Holdings AB 

and Lancelot Asset Management AB. 

Vice Chairman of the Royal Academy 

of Engineering Sciences. 


Electrolux AB, Industry and Commerce 

Stock Exchange Committee, Securities 

Council, Axel Johnson AB, AB Ratos, 

Drott AB, Axfood AB and Syngenta AG. 


▼ 

Jan Westberg 

Born 1944. 


Representative of the Federation 

of Salaried Employees in Industry 

and Services at Scania. 


Niclas 

Wilhelmsson 

Born 1965. 

Deputy Member since 2003. 

Representative of the Metal 

Workers’ Union at Scania. 


AUDITORS 

Cees J. A. van Lede 


CEO of Akzo Nobel. Other directorships: 

Dutch Central Bank, Heineken, 

International Council JP Morgan and 

Sara Lee Corporation, USA. 


Katrin Rosenqvist 

Born 1960. 

Deputy Member since 2001. 

Representative of the Federation of 

Salaried Employees in Industry and 

Services at Scania. 


Caj Nackstad 

Authorised Public Accountant, 

KPMG 




Deputy Auditors 

Thomas Thiel 


KPMG 

Björn Fernström 



77

GROUP MANAGEMENT 

Executive Board 

Leif Östling 

Born 1945. 

Joined Scania in 1972. 



Reporting to Leif Östling: 

Industrial and Marine 

Engines, Latin American 

Operations. 

Kaj Lindgren 

Born 1945. 

Joined Scania in 1977, 

employed until 1984. 

Rejoined Scania in 1989. 

Group Vice President, 

Chief of Staff, CoS, Head 

of Corporate Development 


Reporting to Kaj Lindgren: 

Business Communications, 

Corporate Human 

Resources, General Counsel, 

and certain corporate staff 

units. 

Jan Gurander 

Born 1961. 

Joined Scania in 1995, 

employed until 1999. 

Rejoined Scania in 2001. 


Chief Financial Officer, 

CFO, Head of Finance 

and Business Control 


Reporting to Jan Gurander: 

Corporate Control, 

Customer Finance, 

Finance, and certain 

corporate staff units. 

Per Hallberg 

Born 1952. 



Head of Production and 

Procurement 


Reporting to Per Hallberg: 

Chassis and Cab 

Production, Powertrain 

Production, Purchasing. 

Hasse Johansson 

Born 1949. 



Head of Research and 

Development 


Reporting to Hasse 

Johansson: Truck, Cab and 

Bus Chassis Development, 

Powertrain Development. 

Gunnar Rustad 

Born 1949. 



Head of Sales and 

Services 


Reporting to Gunnar 

Rustad: Global Sales 

and Services, Trucks, 

Buses and Coaches, 

Services. 

78

Corporate Units 

CORPORATE DEVELOPMENT 

FINANCE AND BUSINESS CONTROL 

Magnus Hahn 

Born 1955. 


Senior Vice President 

Business Communications 


Hans Narfström 

Born 1951. 



Human Resources 


Carl Riben 

Born 1950. 



General Counsel 


Peter Härnwall 

Born 1955. 



Corporate Control 


Claes Jacobsson 

Born 1958. 



Customer Finance 


RESEARCH AND DEVELOPMENT 

PRODUCTION AND PROCUREMENT 

Urban Johansson 

Born 1945. 

Joined Scania in 1971, employed 

until 1995. Rejoined Scania in 

1999. Senior Vice President 

Powertrain Development 


Lars Orehall 

Born 1947. 



Truck, Cab and Bus Chassis 

Development 


Thomas Karlsson 

Born 1953. 



Powertrain Production 


P O Svedlund 

Born 1955. 


Senior Vice President and CIO 

Purchasing and IS/IT 


Lars Wrebo 

Born 1961. 



Chassis and Cab Production 


79

SALES AND SERVICES 

INDUSTRIAL AND MARINE ENGINES 

LATIN AMERICA 

Håkan Ericsson 

Born 1947. 



Global Services 


Christoffer Ljungner 

Born 1950. 



Sales Overseas 


Robert Sobocki 

Born 1952. 

Joined Scania in 1978, employed until 

1997. Rejoined Scania in 2002. 


Sales Buses and Coaches 


Lennart Hjelte 

Born 1945. 



Industrial and Marine Engines 


Hans-Christer Holgersson 

Born 1953. 



President of Scania Latin America 


80

CONTACT PERSONS 

The following individuals are 

GENERAL INFORMATION 

available to answer further 

questions about Scania. 

At www.scania.com there 

is in-depth, continuously 

updated information about 

BUSINESS COMMUNICATIONS 

Magnus Hahn 


Tel: +46 8 553 835 10 

magnus.hahn@scania.com 


Gunnar Boman 

Senior Advisor 

Tel: +46 8 553 895 10 

gunnar.boman@scania.com 

BUSINESS MEDIA RELATIONS 

Hans-Åke Danielsson 

Tel: +46 8 553 856 62 

hans-ake.danielsson@scania.com 

Scania’s operations. The 

Annual Report is also posted 

there in web-format. 

FINANCIAL INFORMATION 


INVESTOR RELATIONS 

CORPORATE CONTROL 

Magnus Hahn 


Tel: +46 8 553 835 10 

Joanna Daugaard 

Tel: +46 8 553 837 16 

Torbjörn Boije 

Tel: +46 8 553 822 28 

joanna.daugaard@scania.com 

torbjorn.boije@scania.com 

magnus.hahn@scania.com 

ENVIRONMENTAL INFORMATION 

PUBLIC AND ENVIRONMENTAL AFFAIRS 

Urban Wästljung 

Tel: +46 8 553 836 74 

urban.wastljung@scania.com 

81

ADDRESSES 

Head Office and 

Technical Centre 

Scania AB 

SE-151 87 SÖDERTÄLJE 

Sweden 

Tel: +46 8 553 810 00 

Fax: +46 8 553 810 37 

www.scania.com 

Regional Office 

Scania Latin America Ltda 

Caixa Postal 188 

09810-902 SÃO BERNARDO DO 

CAMPO-SP 

Brazil 

Tel: +55 11 4344 9333 

Fax: +55 11 4351 2659 

■ PRODUCTION UNITS 

Scania Chassis Assembly 

Jan Hillerström 


Sweden 

Tel: +46 8 553 810 00 

Fax: +46 8 553 810 37 

Scania Transmission 

Robert Dubois 


Sweden 

Tel: +46 8 553 810 00 

Fax: +46 8 553 810 37 

Scania Engine Assembly 

Melker Jernberg 


Sweden 

Tel: +46 8 553 810 00 

Fax: +46 8 553 810 37 

Scania Engines 

Staffan Garås 


Sweden 

Tel: +46 8 553 810 00 

Fax: +46 8 553 810 37 

Scania Axles 

Peter Björk 

Box 1906 

SE-791 19 FALUN 

Sweden 

Tel: +46 23 477 00 

Fax: +46 23 71 13 79 

Scania Cabs 

Stefan Palmgren 

Box 903 

SE-572 29 OSKARSHAMN 

Sweden 

Tel: +46 491 76 50 00 

Fax: +46 491 76 54 30 

Scania Transmission 

Anders Holmberg 

SE-280 63 SIBBHULT 

Sweden 

Tel: +46 44 495 00 

Fax: +46 44 481 08 

Ferruform AB 

Peter Norman 

Box 815 

SE-971 25 LULEÅ 

Sweden 

Tel: +46 920 766 00 

Fax: +46 920 896 10 

Scania Nederland B.V. 

Lars Stenqvist 

P.O. Box 618 

NL-8000 AP ZWOLLE 


Tel: +31 38 497 76 11 

Fax: +31 38 497 79 11 

Scania Production 

Angers S.A.S. 

Martin Lundstedt 

B.P. 846 

FR-49008 ANGERS Cedex 01 

France 

Tel: +33 2 41 41 20 00 

Fax: +33 2 41 41 20 48 

Scania São Bernardo 

Sidney Basso 

Av. José Odorizzi, 151–Vila Euro 


CAMPO-SP 

Brazil 

Tel: +55 11 4344 9333 

Fax: +55 11 4344 2659 

Scania Tucumán 

Bengt Klingberg 

Casilla de Correo No. 3 

Correo Central 

4000 SAN MIGUEL DE TUCUMÁN 

Argentina 

Tel: +54 3 814 509 000 

Fax: +54 3 814 509 001 

Scania San Luis 

Roger Johansson 

Prol Av Industrias 4638 

Esq Eje 134 

C P 78395 Zona Industrial 

SAN LUÍS DE POTOSÍ 

Mexico 

Tel: +52 4448 269 000 

Fax: +52 4448 240 504 

Omni Katrineholm AB 

Hans Hansson 

Vingåkersvägen 71 

SE-641 81 KATRINEHOLM 

Sweden 

Tel: +46 150 585 00 

Fax: +46 150 532 30 

Scania Production Sĺupsk S.A. 

Lars-Erik Nerback 

ul Grunwaldzka 12 

PL-76-200 SĹUPSK 

Poland 

Tel: +48 59 844 06 87 

Fax: +48 59 843 66 01 

Scania Peter LLC 

Göran Carlander 

8, Ljubotinsky pr. 

196084 ST. PETERSBURG 

Russia 

Tel: +7 812 346 68 70 

Fax: +7 812 346 68 79 

■ SALES AND SERVICE 

COMPANIES 

Scania Argentina S.A. 

Sven Antonsson 

Ruta Panamericana – Km 34 

(1615) Malvinas Argentinas 

BUENOS AIRES 

Argentina 

Tel: +54 3 327 451 000 

Fax: +54 3 327 451 075 

Scania Australia Pty Ltd. 

Kaj Färm 

Private Bag No. 11 

Vic 3061, CAMPBELLFIELD 

Australia 

Tel: +61 392 173 300 

Fax: +61 393 053 898 

Scania Österreich Ges.m.b.H. 

Ulf Ekström 

Johann-Steinböck-Strasse 4 

AT-2345 BRUNN AM GEBIRGE 

Austria 

Tel: +43 223 639 020 

Fax: +43 223 639 0286 

Scania Belgium sa-nv 

Peter Janssens 

J.F. Kennedylaan 4 

BE-1831 DIEGEM 

Belgium 

Tel: +32 2 722 8411 

Fax: +32 2 722 8400 

Scania Brasil 

Flávio Mermejo 

Av. José Odorizzi, 151-Vila Euro 


CAMPO-SP 

Brazil 

Tel: +55 11 4344 9333 

Fax: +55 11 4344 2659 

Scania Bulgaria Co Ltd. 

Milcho Milchev 

Okolovrastno Shose 

German – Sreden Pat No. 1 

BG-1186 SOFIA 

Bulgaria 

Tel: +359 2 992 83 94 

Fax: +359 2 992 84 04 

Scania Chile S.A. 

Emilio Müller 

Panamericana Norte, no 9850 

Quilicura, SANTIAGO 

Chile 

Tel: +56 2 394 04 00 

Fax: +56 2 738 60 60 

Scania Czech Republic s.r.o. 

Anders Grundströmer 

Chrástany 186 

CZ-252 19 Posta Rudná u Prahy 

PRAHA 

Czech Republic 

Tel: +420 2 510 951 11 

Fax: +420 2 579 512 23 

Scania Danmark A/S 

Jørgen Damkjær 

Postboks 580 

DK-2730 HERLEV (Copenhagen) 

Denmark 

Tel: +45 4454 2200 

Fax: +45 4454 2209 

Scania Eesti AS 

Janno Karu 

Peterburi tee 72 

EE-11415 TALLINN 

Estonia 

Tel: +372 6 651 200 

Fax: +372 6 651 208 

Oy Scan-Auto Ab 

Raimo Lehtiö 

PB 59 

FI-00391 HELSINKI 

Finland 

Tel: +358 10 555 010 

Fax: +358 10 555 5317 

Scania France S.A.S. 

Marc Haezenberghe 

B.P. 106 


France 

Tel: +33 2 414 133 33 

Fax: +33 2 413 476 25 

Scania Deutschland GmbH 

Johan P Schlyter 

Postfach 10 04 26 

DE-56034 KOBLENZ 

Germany 

Tel: +49 261 8970 

Fax: +49 261 897203 

Scania Hungária Kft. 

Thomas Bertilsson 

Rozália park 1 

HU-2051 BIATORBÁGY 

Hungary 

Tel: +36 23 531 000 

Fax: +36 23 531 009 

Italscania s.p.a. 

Giancarlo Codazzi 

Z.I. Spini di Gardolo, 125/E 

IT-38014 TRENTO 

Italy 

Tel: +39 046 199 6111 

Fax: +39 046 199 6198 

Scania Korea Ltd. 

Staffan Sjögren 

18th Floor, Construction Building 

71-2, Nonhyun-dong, 

Kangnam-ku 

135-010 SEOUL 

South Korea 

Tel: +82 2 321 808 00 

Fax: +82 2 511 74 39 

Scania Latvia SIA 

Ervins Arents 

Tiraines iela 13 

LV-1058 RIGA 

Latvia 

Tel: +371 7 066 600 

Fax: +371 7 066 649 

UAB Scania Lietuva 

Bo Hallberg 

Lentvario 14b 

LT-2028 VILNIUS 

Lithuania 

Tel: +370 22 685 505 

Fax: +370 22 685 504 

Scania Malaysia 

Åke Månsson 

G.P.O. Box 85 B.T.12 Puchong 

47100-SELANGOR 

Malaysia 

Tel: +60 3 806 01008 

Fax: +60 3 806 02008 

Scania de México S.A. de C.V. 

Christopher Podgorski 

Delegación Azcapotzalco 

C.P. 02300 MEXICO-D.F. 

Mexico 

Tel: +52 555 078 03 00 

Fax: +52 555 87 05 33 

82

Scania Maroc S.A. 

Serge Habib 

97, Bd Abdelmoumen 7ème 

Etage 

20100 CASABLANCA 

Morocco 

Tel: +212 2 2262 924 

Fax: +212 2 2262 915 

Beers Bedrijfsauto BV 

Jan ter Wee 

Postbus 24012 

NL-2490 AA DEN HAAG 


Tel: +31 704 182 418 

Fax: +31 704 182 510 

Norsk Scania AS 

Erik Hansen 

Postbox 143, Skøyen 

NO-0212 OSLO 2 

Norway 

Tel: +47 220 645 00 

Fax: +47 220 645 99 

Scania del Perú S.A. 

Horácio Gramajo 

Av Republica de Panamá, 

no 4679 

Apartado 3190 

LIMA 34 

Peru 

Tel: +51 1 241 3016 

Fax: +51 1 241 6391 

Scania Polska S.A. 

Tommy Sjöö 

Aleja Katowicka 316 

PL-05-830 Stara Wies 

NADARZYN 

Poland 

Tel: +48 22 356 01 00 

Fax: +48 22 356 01 01 

Scania Romania S.R.L. 

Leif Bohman 

Str. Nicolae G. 

Caramfil Nr. 77 

Sector 1, BUCHAREST 

Romania 

Tel: +40 21 233 0830 

Fax: +40 21 434 0508 

Scania Russia 

P G Nilsson 

43 km Minskoje shosse 

Golitsyno 

143040 MOSCOW 

Russia 

Tel: +7 095 787 5000 

Fax: +7 095 787 5002 

Scania East Adriatic Region 

d.o.o. 

Kjell Örtengren 

Cesta v Gorice 28 

SI-1000 LJUBLJANA 

Slovenia 

Tel: +386 1 242 76 42 

Fax: +386 1 242 76 69 

Scania South Africa (Pty) Ltd. 

Ulf Grevesmühl 

P O Box 587 

2110 MONDEOR 

South Africa 

Tel: +27 11 661 9600 

Fax: +27 11 661 9651 

Scania Hispania S.A. 

José Badía 

Apartado de correos 304 

ES-28850 TORREJÓN DE ARDOZ 

(MADRID) 

Spain 

Tel: +34 91 678 80 00 

Fax: +34 91 675 74 50 

Scania Sverige AB 

Martin Ståhlberg 

Verkstadsvägen 11 


Sweden 

Tel: +46 8 553 864 00 

Fax: +46 8 553 864 35 

Scania Truck AG 

Dieter Merz 

Steinackerstrasse 55 

CH-8302 KLOTEN 

Switzerland 

Tel: +41 1 800 13 00 

Fax: +41 1 800 13 01 

Scania Tanzania Ltd. 

Henrik Orrling 

Nyerere Road 

P O Box 9324 

DAR ES SALAAM 

Tanzania 

Tel: +255 22 286 0290 

Fax: +255 22 286 5033 

Scania Siam Co. Ltd. 

Vichai Jirathiyut 

23/21 Vibhavadi Rangsit Road 

Ladyao, Chatucnad 

10900 BANGKOK 

Thailand 

Tel: +66 2 515 9600 

Fax: +66 2 537 8261 

Scania Ukraine 

Håkan Sundström 

Ring Road 22 (2, Trublaini str) 

UA-03134 KYIV 

Ukraine 

Tel: +380 44 490 74 90 

Fax: +380 44 490 77 71 

Scania (Great Britain) Ltd. 

Dan Hoij 

Delaware Drive, Tongwell 

MILTON KEYNES MK15 8HB 

United Kingdom 

Tel: +44 1908 210 210 

Fax: +44 1908 215 040 

Scania USA, Inc 

Claes Sundberg 

121 Interpark Blvd, Suite 601 

SAN ANTONIO, Texas 78216 

USA 

Tel: +1 210 403 00 07 

Fax: +1 210 403 02 11 

Scania de Venezuela S.A. 

Arnaud Dordilly 

Urb.Parque Ind.Castillito 

VALENCIA - Estado Carabobo 

Venezuela 

Tel: +58241 871 80 90 

Fax: +58241 871 59 95 

■ BUSES 

SALES COMPANIES 

Scania Bus Europe sa-nv 

Fredrik Morsing 

Berkenlaan 1 

BE-1831 DIEGEM 

Belgium 

Tel: +32 2 704 4000 

Fax: +32 2 704 4010 

Scania Bus Italy 

Henry Jonsson 

Z.I. Spini di Gardolo, 125/E 

IT-38104 TRENTO 

Italy¨ 

Tel: +39 0461 996 111 

Fax: +39 0461 996 198 

Scania Bus Nordic 

Vingåkersvägen 71 

SE-641 81 KATRINEHOLM 

Sweden 

Tel: +46 150 585 00 

Fax: +46 150 532 30 

Scania Bus & Coach UK Ltd. 

Geoff Bell 

Claylands Avenue 

Worksop 

NOTTINGHAMSHIRE S817DJ 


Tel: +44 1901 5008 22 

Fax: +44 1909 5001 65 

■ FINANCE COMPANIES 

Scania Finance Belgium nv 

Bert Peeters 

Minervastraat 8 

BE-1930 ZAVENTEM 

Belgium 

Tel: +32 2 714 2424 

Fax: +32 2 721 9442 

Scania Finance Czech Republic 

Zuzana Tomeckova 

Chrástany 186 

CZ-252 19 Posta Rudná u Prahy 

PRAHA 

Czech Republic 

Tel: +420 2 579 507 00 

Fax: +420 2 579 507 31 

Scania Finance France S.A.S. 

Koen Knoops 

B.P. 928 


France 

Tel: +33 241 41 33 33 

Fax: +33 241 34 70 46 

Scania Finance 

Deutschland GmbH 

Ulf Egestrand 

Postfach 100427 

DE-56034 KOBLENZ 

Germany 

Tel: +49 261 807 8392 

Fax: +49 261 807 8313 

Scania Finance Italy s.p.a. 

Pierre de Bantel 

Via Lombardini, no13 

IT-20143 MILANO 

Italy 

Tel: +39 02 581 161 

Fax: +39 02 581 166 66 

Bezoma BV 

Gerard van Keulen 

Postbus 24012 

NL-2490 AA DEN HAAG 


Tel: +31 704 18 24 18 

Fax: +31 704 18 25 20 

Scania Finance Polska Sp.z.o.o. 

Janusz Laskowski 

Aleja Katowicka 316 

PL-05-830 Stara Wies 

NADARZYN 

Poland 

Tel: +48 22 356 02 30 

Fax: +48 22 356 02 31 

Scania Leasing OOO 

Alexander d’Huc 

Office C200 113/1 Leninsky 

Prospekt 

117 198 MOSCOW 

Russia 

Tel: +7 095 956 57 97 

Fax: +7 095 956 57 66 

Scania Finance Korea 

Sangwon Lee 

18th Floor, Construction Building 

71-2, Nonhyun-dong, 

Kangnam-ku 

135-010 SEOUL 

South Korea 

Tel: +82 232 183 700 

Fax: +82 232 183 737 

Scania Finance Hispania 

Eddi Mues 

Parque Empresarial San Fernando 

Edifico Europa 

San Fernando Henares 

ES-288 30 MADRID 

Spain 

Tel +34 91 678 18 61 

Fax +34 91 678 18 63 

Scania Credit AB 

Per Spjut 


Sweden 

Tel: +46 8 553 836 60 

Fax: +46 8 553 837 24 

Scania Finans AB 

Leif Christensson 


Sweden 

Tel: +46 8 553 837 50 

Fax: +46 8 553 837 66 

Scania Finance Great Britain Ltd. 

Peter Taylor 

Regus House, Fairbourne Drive 

Atterbury 

MILTON KEYNES MK10 9RG 


Tel: +44 1908 48 7530 

Fax: +44 1908 48 7730 

■ SUPPORT 

DynaMate AB 

Stefan Palskog 


Sweden 

Tel: +46 8 553 830 00 

Fax: +46 8 553 816 84 

Scania Parts Logistics AB 

Kjell Nilsson 


Sweden 

Tel: +46 8 553 835 00 

Fax: +46 8 553 861 90 

83

Scania AB (publ), SE-151 87 Södertälje, Sweden, Tel: +46 8 5538 1000, Fax: +46 8 5538 1037, www.scania.com 

For more information: 

www.scania.com 

1594925/13/KREAB/ Trosa Tryckeri, 2003

Scania annual report 2002

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