Scania annual report 2004

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Customer-tailored vehicles and engines Scania’s business is based on trucks, buses and industrial and marine engines. Here Scania’s sophisticated modular system provides unique opportunities to tailor vehicles to the specific wishes of customers. The basic concept is a toolbox in which components can be used in many different combinations. Scania trucks have gross vehicle weights of 16 tonnes and upward (Class 8) and are built for heavy long-distance, construction and distribution haulage. During 2004, Scania introduced a new truck range with further improved performance, not least in the environmental field. The new vehicles also have improved fuel economy, compared to previous ranges. Scania manufactures buses with high passenger capacity for intercity and urban traffic and for use as tourist coaches. Production focuses on chassis – more than 90 percent of production went on to independent bodybuilding companies. Scania’s own bus bodybuilding company, Scania Omni, works with city and intercity buses. Scania’s industrial and marine engines are sold throughout the world, and 2004 was an especially strong year, with a new volume record of 5,014 units. PRODUCTS • SCANIA ANNUAL REPORT 2004 26
From vehicle manufacturer to integrated service provider During 2004, Scania continued to successfully move its operations closer and closer to the customer’s own daily reality, with the aim of being a reliable partner in growing the customer’s business. Aside from trucks, buses and industrial and marine engines, Scania sells numerous service-related products. Customers can also choose among various forms of financing and insurance. Scania focuses on providing expert support throughout the commercial life of a vehicle. To customers, this means greater dependability in their business. They are guaranteed the highest possible operating reliability. Service a stabilising factor Just as Scania has refined its modular system over the decades in research, development and production, today it is developing a similar system for the important service market. From an array of service-related products, customers can select those that best contribute to improving their own business operations. For Scania, servicing today’s active fleet is a significant source of income. It is also a stabilising factor in the company’s overall business: whereas sales of new vehicles fluctuate with the ups and downs of the economy, the service market represents greater stability. The number of Scania vehicles in active operation is steadily growing. In Scania’s growth scenario, which is based on a historical average volume increase of 5–6 percent, in the next decade this will mean annual sales of 100,000 new vehicles and about 800,000 Scania vehicles on the roads. Today there are already 500,000 active vehicles that need servicing. This scenario also implies increased technician time and parts sales at Scania’s repair and preventive maintenance workshops. In 2004, service-related products accounted for 20 percent of Scania’s total sales revenue. The service market is thus one of Scania’s most important competitive factors, aside from the vehicles themselves. Scania’s service offerings vary, depending on how local markets develop. In Europe, the service network is well established today. On other continents, it is still expanding. Globally, Scania customers have access to about 1,500 service points, about 1,000 of them in Europe. Scania’s service network is quality assured, and not only in Europe. Workshops in South America, Africa, Asia and the Middle East also undergo quality certification. Round-the-clock service Scania’s core values, which regulate the company’s approach to customers, society at large and its own employees – the customer first, respect for the individual and quality – are especially clear in the service sector, with its close customer contacts. Here all these standards are put to the test. From a customer perspective, getting the highest level of quality in the service network is as important as vehicle quality. The customer depends on his Scania vehicles to perform and requires maximum vehicle availability. Scania must respect and fulfil these demands, delivering optimal service round-the-clock in principle. In response to this customer need for back-up at all hours of the day and night, Scania Assistance provides 24-hour help in the customer’s own language and various forms of maintenance and repair contracts. Today Scania Assistance is available all over Europe, as well as in a number of Scania’s important markets on other 27 PRODUCTS • 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 16 and 17: Long-term relationships contribute
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 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
Page 74 and 75: 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
Page 80:
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
Page 89 and 90:
CORPORATE UNITS 1. Magnus Hahn Born
Page 91 and 92:
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