Scania annual report 2004

Reconciliation of income statement for 2004
Income statement items
Income statement
for the year, Swedish
items for the
SEK m. accounting rules IFRS effect year, IFRS
Vehicles and Service
Sales revenue 56,788 – 56,788
Cost of goods sold – 42,570 16 – 42,554
Gross income 14,218 16 14,234
Research and development expenses – 1,987 – – 1,987
Selling expenses – 5,550 178 – 5,372
Administrative expenses – 806 – – 806
Share of income in associated companies 12 – 12
Operating income, Vehicles and Service 5,887 194 6,081
Customer Finance
Operating income, Customer Finance 450 – 450
Operating income 6,337 194 6,531
Net financial items – 323 – – 323
Income after financial items 6,014 194 6,208
Taxes – 1,935 – 8 – 1,943
Minority interests – 2 2 0
Net income 4,077 188 4,265
Change in key financial figures, 2004
IFRS
Key figures, Swedish
Scania Group key figures accounting rules
Operating margin, % 11.5 11.2
Earnings per share, SEK 21.3 20.4
Net debt/equity ratio 1.08 1.10
Return on shareholders’ equity, % 21.4 20.8
Equity/assets ratio, % 30.3 30.0
Equity per share, SEK 107 105
Capital employed, SEK m. 49,545 49,167
Vehicles and Service
Operating margin, % 10.7 10.4
Net debt/equity ratio 0.05 0.05
Interest coverage, times 8.6 8.4
Return on capital employed, % 29.0 28.1
Profit margin, % 11.5 11.1
Capital turnover rate, times 2.53 2.53
Impact on cash flow, 2004
The transition to IFRS does not result in any impact on Scania’s reported cash flow in 2004.
Notes
a) In accordance with IFRS 3, no goodwill amortisation shall be carried out; the amortisation carried out in 2004, totalling
SEK 166 m., was thus reversed. As a consequence of this, the carrying amount of goodwill increased correspondingly.
b) Scania’s tangible fixed assets, primarily buildings, were examined with respect to component depreciation, which is
prescribed according to IAS 16. As a consequence of this examination, as of 31 December 2004 the carrying amount
of tangible fixed assets was raised by SEK 312 m., since the depreciation periods on these assets were changed.
Depreciation for 2004 in the income statement decreased by about SEK 30 m. The opening carrying amount of tangible
fixed assets as per 1 January 2004 rose by SEK 282 m., which also affected shareholders’ equity for the same period by
about SEK 190 m.
c) In accordance with IAS 27, the minority portion of equity has been reclassified and, after the adjustment, is included as
an item in shareholders’ equity. As per 1 January 2004, this has an effect of SEK 4 m. on shareholders’ equity. As per
31 December 2004, the reclassified amount totals SEK 5 m.
d) As a consequence of decreased depreciation on tangible fixed assets, deferred tax was affected by the change in asset
values. Both the historical change and the 2004 change affected deferred tax, which increased by SEK 95 m. as per
1 January 2004 and by SEK 103 m. as per 31 December 2004.
e) Income for the year was favourably affected by the decreased depreciation on fixed assets, the reversal of goodwill
amortisation carried out during 2004 and the tax effect of the lower depreciation on tangible fixed assets.
f) According to IAS 39, all derivatives must be stated at fair value and reported in the balance sheet. As a result,
derivatives that were previously not reported in the balance sheet are now included in the balance sheet at fair value.
Due to the rules in IAS 32 on reporting on a net basis, certain financial instruments that were previously reported as net
amounts are reported on a gross basis. Hedge accounting has been applied to derivatives that hedge expected future
commercial payments in foreign currencies and to certain derivatives that are used to convert borrowing to the desired
interest rate refixing structure. As a result of the change in principles, total assets increase by SEK 1,189 m. and long-term
and current liabilities increase by SEK 835 m. and SEK 323 m., respectively. Unrestricted reserves are affected in the amount
of SEK 22 m. and deferred tax liabilities by SEK 9 m.
75 NOTES • SCANIA ANNUAL REPORT 2004