Scania annual report 2003

The Scania Group’s operating lease obligations mainly include
premises and real properties.
Future minimum Present value of
Financial leases lease payment future lease payments
2004 45 42
2005 51 46
2006 16 13
2007 13 11
2008 6 5
2009 and thereafter 59 45
Total 190 162
On 31 December 2003, the carrying amount related to financial leasing
in the balance sheet totalled SEK 162 m.
NOTE 23 Government grants
During 2003, the Scania Group received government grants amounting
to SEK 24 m. attributable to operating expenses of SEK 100 m. It also
received government grants amounting to SEK 34 m. attributable to
investments with a gross acquisition value of SEK 535 m.
NOTE 24 Consolidated cash flow statement
2003 2002 2001
a. Items not affecting cash flow
Depreciation/amortisation 2,000 2,093 2,157
Value adjustment, short-term leasing 161 152 161
Unrealised exchange rate differences 21 53 –58
Bad debts 258 207 263
Associated companies –8 11 28
Taxes 286 423 –306
Deferred profit recognition,
operating leases –56 –364 –120
Reported capital gain/loss
on divestment of businesses 0 –534 5
Other 28 0 –6
Total 2,690 2,041 2,124
b. Change in working capital
Long-term interest-bearing receivables –91 –58 97
Other receivables –297 281 1,876
Inventories –864 –918 475
Provisions for pensions 54 171 153
Advance payments from customers –182 152 185
Trade creditors 97 162 –519
Other liabilities and provisions 1,553 982 –372
Total 270 772 1,895
c. Net investments excluding acquisitions/divestments
of businesses
Investments in fixed assets 1 –3,735 –3,363 –2,405
Divestments of fixed assets 450 442 527
Total –3,285 –2,921 –1,878
1 Of which, SEK 669 m. (573) for development expenditures capitalised in 2003.
d. Net investment through acquisitions/divestments
of businesses 2
Proceeds from sale of shares
(after subtracting liquid assets
in divested businesses) – 1,350 –42
Acquisitions of businesses –26 –185 –887
Total –26 1,165 –929
2 See Note 25, “Companies acquired/divested”.
e. Cash flow, Customer Finance
Net income 233 213 194
Items not affecting cash flow 141 207 312
Cash from operating activities 374 420 506
Change in lease assets 115 1,118 –143
Increase in financial receivables –1,856 –2,481 –2,435
Change in other assets and liabilities –90 391 –79
Acquisitions of businesses 2 1 – –277
Total –1,456 –552 –2,428
f. Change in net debt through financing activities
Net change in short-term borrowings –408 –5,814 –782
Repayment of long-term borrowings –6,504 –4,983 –1,248
Increase in long-term borrowings 4,712 8,984 4,032
Net change in restricted deposits 0 0 117
Total –2,200 –1,813 2,119
Interest, taxes and dividends received/paid
Interest received 425 260 294
Interest paid –1,024 –721 –1,035
Taxes paid –845 –573 –1,049
Dividends received from
associated companies 3 25 70
Relationship between cash flow statement
and change in net debt in the balance sheet
Change in net debt,
including Customer Finance 994 3,031 –362
Change in interest-bearing liabilities:
Exchange rate effects 1,120 1,819 –1,897
Businesses acquired –81 49 –2,211
Businesses divested – 284 56
Change in restricted funds – – 117
Change in liquid assets –117 –286 169
Dividend to shareholders –1,100 –700 –1,400
Change in net debt according
to the balance sheet 816 4,197 –5,528
NOTE 25 Companies acquired/divested
As per 30 September 2003, Scania acquired Topsted A/S, a dealership
operating in Århus, Denmark, in its entirety. As per 31 December 2003,
Scania acquired 51 percent of the shares in Scania Multi Service S A S,
which means that the company is now a wholly-owned subsidiary.
Scania Multi Service is a service company operating in Angers, France.
The purchase price for these acquisitions was paid in cash.
Assets and liabilities acquired:
Tangible and intangible fixed assets 123
Inventories 33
Receivables –6
Liquid assets 4
Borrowings –81
Other liabilities and provisions –41
Holdings in associated companies
and other companies –2
Carrying amount of previously owned
holdings in new Group company –1
Purchase price paid 29
Liquid assets in acquired businesses –4
Impact on consolidated liquid assets
and short-term investments 25
67 ANNUAL REPORT 2003