Scania annual report 2004

NOTE 11 Inventories
2004 2003 2002
Raw materials 937 847 822
Work in progress 1,109 1,028 925
Finished goods 7,441 6,631 6,115
Total 9,487 8,506 7,862
Of the total value of inventories in 2004, SEK 287 m. (278) is expected
to be consumed after more than 12 months, which is mainly attributable
to parts. In 2004, SEK 629 m. (541) worth of inventories were
valued at net realisable value; this was mainly related to used vehicles.
NOTE 12 Current receivables
2004 2003 2002
Interest-bearing trade receivables,
Vehicles and Service 492 592 816
Interest-bearing trade receivables,
Customer Finance 7,383 6,910 6,320
Total interest-bearing trade receivables 7,875 7,502 7,136
Non-interest-bearing trade receivables 7 641 6 345 6 497
Prepaid expenses and
accrued income 907 864 752
Other receivables 1 621 1 630 1 529
Total 18,044 16,341 15,914
NOTE 13 Short-term investments
2004 2003 2002
Liquid investments
(maturities of less than 90 days) 470 451 583
Investments (maturities 91–365 days) 909 253 1,086
Total 1,379 704 1,669
Investments totalling SEK 123 m. (167 and 613, respectively) in value
were restricted by agreement with third parties.
NOTE 14 Shareholders’ equity
The shareholders’ equity of the Scania Group has changed as follows:
Unre- Accustricted
mulated
share- exchange
2003
Share Restricted holders’ rate
capital reserves equity differences Total
1 January 2,000 4,608 10,005 318 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 2,000 3,277 13,270 – 296 18,251
2004
1 January,
according to adopted
balance sheet 2,000 3,277 13,270 – 296 18,251
Change in
accounting principle – – 26 – 26
Adjusted shareholders’
equity, 1 January 2,000 3,277 13,296 – 296 18,277
Dividend to shareholders – – –1,200 – –1,200
Net income for 2004 – – 4,077 – 4,077
Exchange rate differences
for the year – – – –104 –104
Transfer between restricted
and unrestricted equity – – 372 372 – 0
Balance,
31 December 2004 2,000 2,905 16,545 – 400 21,050
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.
The change in accounting principle is attributable to the Swedish
Financial Accounting Standards Board’s Recommendation RR 29,
Employee Benefits. This change in accounting principle had a positive
effect of SEK 26 m. on shareholders’ equity.
Restricted equity consists of share capital plus non-distributable
funds. The Parent Company 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 income statements and balance sheets are adopted at the
Annual General 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 104 m. during 2004
arose as a consequence of the appreciation of the Swedish krona
against South American currencies (mainly the real and peso), which
resulted in an effect of about SEK – 50 m., and from appreciation
against European currencies, primarily GBP and EUR, which resulted
in an effect of about SEK – 50 m.
NOTE 15 Provisions for pensions
NOTE 15 and similar commitments
The Group’s employees, former employees and their survivors may be
included in both defined contribution and defined benefit plans related
to post-employment plans. The plans include retirement pensions,
survivor pensions, health care and severance pay.
The obligation that is reported in the balance sheet stems from the
defined benefit plans. The largest plans are found in Sweden, Great
Britain and Brazil. The plans are safeguarded via re-insured provisions in
the balance sheet, via foundations and funds. Calculations are performed
according to the “projected unit credit method”, using the assumptions
presented in the table on the next page, also taking into account any
revocability.
In the case of some of the Group’s defined benefit multi-employer
plans, the Group has not been able to obtain sufficient information from
the plan manager to be able to perform a calculation according to the
projected unit credit method. These plans have thus been reported as
defined contribution in keeping with point 30 of RR 29. This applies to
Dutch Pensioenfonds Metaal en Techniek, which is administered via MN
Services, and Bedrijfstakpensioenfonds Metalektro, which is administered
via PVF Achmea, as well as the portion of the Swedish ITP plan which
is administered via Alecta. Most of the Swedish plan for salaried
employees (the collectively agreed ITP plan) is administered by a
Swedish multi-employer institution, the Pension Registration Institute
(PRI). The obligation according to the ITP plan is safeguarded via credit
insurance from the mutual insurance company Försäkringsbolaget
Pensionsgaranti (FPG).
Premiums to Alecta amounted to SEK 22 m. (21 and 14, respectively).
A surplus or deficit at Alecta may mean a refund to the Group or lower
or higher future premiums. At year-end 2004, Alecta’s surplus, in the
form of a collective consolidation level, amounted to 128 (120 and 113,
respectively) percent. The collective consolidation level consists of the
market value of Alecta’s assets as a percentage of its insurance obligations
calculated according to Alecta’s actuarial assumptions, which do
not coincide with RR 29.
In the Dutch plans, both companies and employees contribute to the
plans. The companies’ premiums to MN Services amounted to SEK 19
m. (18 and 14, respectively) and to PVF Achmea SEK 49 m. (43 and
36, respectively). The consolidation level amounted to 114 (107 and
104, respectively) percent for MN Services and 115 (109 and 102,
respectively) percent for PVF Achmea.
NOTES • SCANIA ANNUAL REPORT 2004 64