Scania annual report 2003

NOTE 11 Long-term interest-bearing receivables
2003 2002 2001
Receivables, Customer Finance 1 11,120 10,646 9,394
Receivables, Vehicles and Service 676 708 784
Total 11,796 11,354 10,178
1 Note 4 shows how the financial receivables of Customer Finance
(including the short-term portion) changed during 2003.
NOTE 12 Inventories
2003 2002 2001
Raw materials 847 822 858
Work in progress 1,028 925 880
Finished goods 6,631 6,115 6,208
Total 8,506 7,862 7,946
Of the total value of inventories in 2003, SEK 278 m. is expected to be
consumed after more than twelve months, which is mainly attributable
to parts. In 2003, SEK 541 m. worth of inventories was valued at net
realisable value; this was mainly related to used vehicles.
NOTE 13 Current receivables
2003 2002 2001
Interest-bearing trade receivables,
Vehicles and Service 592 816 988
Interest-bearing trade receivables,
Customer Finance 6,910 6,320 5,803
Total interest-bearing
trade receivables 7,502 7,136 6,791
Non-interest-bearing
trade receivables 6,345 6,497 7,731
Prepaid expenses
and accrued income 864 752 675
Other receivables 1,630 1,529 1,679
Total 16,341 15,914 16,876
NOTE 14 Short-term investments
2003 2002 2001
Liquid investments
(maturities of less than 90 days) 451 583 895
Investments (maturities 91–365 days) 253 1,086 1,238
Total 704 1,669 2,133
Investments totalling SEK 167 m. (613 and 692, 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:
Unre- Accustricted
mulated
share- exchange
2002
Share Restricted holders’ rate
capital reserves equity differences Total
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 – – – –1,103 –1,103
Transfer between restricted
and unrestricted equity – –1,057 1,057 – 0
Balance,
31 December 2002 2,000 4,608 9,855 468 16,931
2003
1 January 2,000 4,608 9,855 468 16,931
Dividend to shareholders – – –1,100 – –1,100
Net income for 2003 – – 3,034 – 3,034
Exchange rate
differences for the year – – – –614 –614
Transfer between restricted
and unrestricted equity – –1,331 1,331 – 0
Balance,
31 December 2003 2,000 3,277 13,120 –146 18,251
Under Swedish law, shareholders’ equity shall be allocated between
non-distributable (restricted) and distributable (unrestricted) funds. In a
Group, only the lower of Parent Company or consolidated unrestricted
equity may be distributed.
Restricted equity consists of share capital plus non-distributable
funds. 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. The shares have a nominal value of
SEK 10 apiece. All shares are fully paid and no shares are reserved for
transfer of ownership. No shares are held by the company itself or its
subsidiaries.
Unrestricted equity consists of distributable funds and includes net
income for the year. In the consolidated financial statements, consolidated
unrestricted equity includes only the portion of unrestricted equity
in the financial statements of a subsidiary that can be distributed to the
Parent Company without having to write down the shares in the subsidiary.
The proposed, not yet approved dividend to the shareholders for
the financial year 2003 amounts to SEK 6.00 per share, equivalent to
SEK 1,200 m. The income statements and balance sheets are adopted
at the Annual Meeting.
Accumulated exchange rate differences arise when translating net
assets outside Sweden according to the current method of accounting.
The negative exchange rate difference of SEK 614 m. during 2003
arose as a consequence of the appreciation of the Swedish krona
against currencies important to Scania. Of the exchange rate
differences, about SEK –400 m. is related to the effect of appreciation
against USD and about SEK –200 m. from appreciation against European
currencies, mainly GBP and EUR.
The year’s transfer between restricted and unrestricted equity was
mainly explained by exchange rate differences, since portions of the
restricted equity of the Group include amounts denominated in currencies
that weakened against the Swedish krona during 2003.
NOTE 16 Provisions for pensions
and similar commitments
2003 2002 2001
Provisions for FPG/PRI
guaranteed pensions 1,557 1,447 1,427
Provisions to other pensions 375 454 446
Provisions for health care benefits 162 144 219
Total 2,094 2,045 2,092
The amount under “Provisions for pensions” corresponds to the
actuarial projection of the value 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 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 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 health care benefits, which are attributable
to its operations in Brazil, Scania applies SFAS 106, “Employers’
Accounting for Postretirement Benefits”. This means that health care
benefits etc. that are earned by the employees but not utilised until
after retirement are expensed as they arise.
In 2004, Recommendation RR 29, Employee benefits, of the
Swedish Financial Accounting Standards Council comes into force.
The introduction of this recommendation is not expected to have
any material impact on the shareholders’ equity and earnings of
the Scania Group.
65 ANNUAL REPORT 2003