Scania annual report 2004

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Long-term relationships contribute to positive change Scania is a global company that economically, socially and environmentally both influences and is influenced by the communities where it operates. Its local presence creates long-term relationships that will contribute to positive change for both the company and the community. Scania contributes to sustainable global development and supports the OECD Guidelines for Multinational Enterprises. These guidelines form the starting point of Scania’s sustainable development efforts. Scania’s relationships with society at large focus mainly on improved road safety and reduced environmental impact – issues closely associated with Scania’s business operations. After the tsunami disaster in the Indian Ocean during the 2004 Christmas holidays, Scania concentrated its relief efforts via the International Red Cross. Greater transparency During 2004, Scania continued to aim for greater transparency so that all stakeholders can more easily gain access to the information they are seeking. Scania has clarified its ethical and environmental positions, among other things by imposing high social and environmental standards on its suppliers. Scania regards such standards as necessary in order to achieve long-term sustainable development. Backing up drivers in all situations The driver is the most important contributor to improved road safety. Scania’s vision is that drivers of heavy vehicles should serve as role models for other road users. Scania’s aim is to give drivers the best possible back-up to ensure safe driving. To promote road safety, driver skills and a positive attitude in society at large towards transport professionals, during 2005 Scania is organising its second competition for young truck drivers. In September, a new winner of this driver competition, Europe’s largest, will be proclaimed. Nearly 20,000 drivers from the EU member countries plus Switzerland, Turkey and Norway are expected to participate in the competition, which will reward safe, environmentally oriented and economical driving techniques. Scania is implementing the competition with support from the European Commission and the International Road Transport Union (IRU), and with Michelin and Shell as co-sponsors. The environment Combining the growing need for transport services with reduced environmental impact is a prerequisite for long-term sustainable development in the world, and a challenge for Scania as a company. Environmental impacts occur both at production facilities and when our products – vehicles and engines – are used by customers. Scania works systematically to reduce the environmental impact at all stages of a product’s life cycle. Its environmental work emphasises doing the right thing from the beginning and in all subsequent stages, conserving raw materials and energy as well as offering its customers vehicles and engines with better fuel economy and low exhaust gas emissions. Scania’s environmental policy and overall environmental targets apply to all parts of the company and are found on the following pages and posted on its website, www.scania.com. SCANIA’S ROLE IN SOCIETY • SCANIA ANNUAL REPORT 2004 16
Urban Johansson, head of powertrain development at Scania, being interviewed by Vyacheslav Mamedov, editor in chief of the Russian magazine Gruzovikpress. 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. ■ 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 anticompetitive agreements among competitors. Dialogue for sustainable road transport Road transport is of great significance for economic, social and environmental progress in society. An active dialogue with various stakeholders in society is therefore an important element of Scania’s social responsibility. Since highway tolls and fuel prices were topics of passionate debate during 2004, while new emission rules will become a reality during 2005/2006, there has been great interest in discussing the development of sustainable transport. Seminars with politicians and meetings with public authorities play a key role, but to convey knowledge about the characteristics and development potential of the diesel engine to customers and the general public, the media are of great importance. Urban Johansson, head of powertrain development at Scania, thus spent an intensive week in Koblenz, Germany, discussing Scania’s future engine strategy with journalists. “Over the next few decades, the diesel engine will remain the most efficient way of transforming fuel into useful heavy transport work. To meet the increasingly stringent legal standards for nitrogen oxide and particulate levels in exhaust gases, new emission technology is required”, Mr Johansson says. Scania’s main strategy is exhaust gas recirculation (EGR), a technique that allows cleaner combustion without affecting fuel economy. Selective catalytic reduction (SCR) is an alternative way of reducing nitrogen oxide emissions, via aftertreatment of exhaust gases with a urea solution. 17 SCANIA’S ROLE IN SOCIETY • SCANIA ANNUAL REPORT 2004
Page 1: 2004 A N N U A L R E P O R T
Page 4 and 5: VEHICLES AND SERVICE Key figures 20
Page 6 and 7: Important events in 2004 At the IAA
Page 8 and 9: Scania is stronger than ever Scania
Page 10 and 11: Leadership for profitable growth In
Page 12 and 13: Growing with sustained profitabilit
Page 14 and 15: The people behind the products If S
Page 18 and 19: Attacking environmental impact at t
Page 20 and 21: Closer to customers and their deman
Page 22 and 23: New trade routes increase transport
Page 24 and 25: Bus project gives Colombia’s capi
Page 26 and 27: Customer-tailored vehicles and engi
Page 28 and 29: PRODUCTS • SCANIA ANNUAL REPORT 2
Page 30 and 31: World-class resources under one roo
Page 32 and 33: Choices of technology Scania’s ch
Page 34 and 35: Effective working methods and globa
Page 36 and 37: Södertälje to devise the working
Page 38 and 39: Improved trading volume The climate
Page 40 and 41: Facts about Scania THE TRUCK MARKET
Page 42 and 43: THE BUS AND COACH MARKET THE MARKET
Page 44 and 45: ENVIRONMENTAL ECONOMICS Efforts to
Page 46 and 47: Financial review REVENUE The sales
Page 48 and 49: totalled SEK 89 m. (166), equivalen
Page 50 and 51: Consolidated balance sheet 31 Decem
Page 52 and 53: Parent Company financial statements
Page 54 and 55: ate). This method is usually called
Page 56 and 57: and equipment. However, the recomme
Page 58 and 59: Note 1 continued PRIMARY SEGMENTS (
Page 60 and 61: NOTE 2 Sales revenue 2004 2003 2002
Page 62 and 63: Note 7 continued Research and devel
Page 64 and 65: NOTE 11 Inventories 2004 2003 2002
Page 66 and 67:
NOT 16 Other provisions During the
Page 68 and 69:
Note 23 continued 2004 2003 2002 e.
Page 70 and 71:
NOTE 27 Information regarding compe
Page 72 and 73:
Note 29 continued Interest-bearing
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NOTE 33 Impact of IFRS Beginning in
Page 76 and 77:
LIST OF SUBSIDIARIES Corporate ID n
Page 78 and 79:
Notes - Parent Company Note 1 Finan
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Auditors’ report Audit Report To
Page 83 and 84:
Key financial ratios and definition
Page 85 and 86:
2004 2003 2002 2001 2000 1999 1998
Page 87 and 88:
Vito H Baumgartner Born 1940. Membe
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CORPORATE UNITS 1. Magnus Hahn Born
Page 91 and 92:
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Scania annual report 2004

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