Scania annual report 2004

Notes – Parent Company
Note 1 Financial income and expenses
Note 3 Shareholders’ equity
26,296,508 new A shares related to the acquisition of Ainax AB. The total
number of shares eligible for dividends thus amounts to 226,296,508.
2004 2003 2002
Interest income
From subsidiaries 90 63 102
Other – 1 12
Sub-total 90 64 114
Interest expenses 0 0 0
Exchange rate differences on
forward contracts for hedging
net assets of foreign subsidiaries 0 29 68
Group contributions/dividends 4,830 1,500 1,000
Net financial items 4,920 1,593 1,182
Note 2 Shares in Group companies
Unrestricted
Share Statutory shareholders’
2003 capital reserve equity Total
Balance, 1 January 2,000 1,120 8,054 11,174
Dividend to shareholders – – – 1,100 – 1,100
Group contributions – – – 272 – 272
Net income for 2003 – – 1,772 1,772
Balance, 31 December 2,000 1,120 8,454 11,574
2004
Balance, 1 January 2,000 1,120 8,454 11,574
Dividend to shareholders – – – 1,200 – 1,200
Net income for 2004 – – 4,059 4,059
Balance, 31 December 2,000 1,120 11,313 14,433
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.
Restricted equity consists of share capital plus non-distributable
funds. 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. After the balance sheet date, Scania AB issued
% Carrying amount
Subsidiary/Corporate ID number/country of registration ownership 2004 2003 2002
Scania CV AB, 556084-0976, Sweden 100.0 1 8,401 8,401 8,401
Scania Latin America Ltda, 635,010,727,112, Brazil 100.0 2, 3 – 2,257 2,257
Scania Argentina S.A, 30-51742430-3, Argentina 99.9 2, 3 – 358 298
Scania Chile S.A., 96.538.460-K, Chile 99.9 2, 3 – 4 –
Scania del Peru S.A, 101,36300, Peru 5.2 2, 3 – 15 15
Total 8,401 11,035 10,971
1 Scania CV AB is a public company and parent company of the Scania CV Group, which includes all production, sales and service and finance companies in the Scania AB
Group. The company is a subsidiary of Scania AB, whose shares are listed on Stockholmsbörsen.
2 Due to a restructuring of the Group as per 1 January 2004, all shares in the South American companies owned by Scania AB were transferred to Scania CV AB.
3 The Group’s ownership interest is 100 percent.
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.
Note 4 Untaxed reserves
Tax allocation reserve 2004 2003 2002
1998 assessment – – 284
1999 assessment – 637 637
2000 assessment 705 705 705
2001 assessment 634 634 634
2002 assessment 326 326 326
2005 assessment 814 – –
Total 2,479 2,302 2,586
SEK 694 m. (645 and 724, respectively) of “Untaxed reserves” consists
of a deferred tax liability, which is part of the Scania Group’s deferred
tax liabilities.
Note 5 Contingent liabilities
2004 2003 2002
Contingent liability related to FPG
credit insurance (Group companies) 2,010 1,588 1,457
Loan guarantees on behalf of
Group companies 1 20,678 22,051 25,228
22,688 23,639 26,685
1 Most of this item is related to loan guarantees on behalf of borrowings by
Scania CV AB.
Note 6 Information regarding compensation
Note 6 to executive officers and auditors
The President of Scania AB and the other members of the executive
management hold identical positions in Scania CV AB. Wages, salaries
and other remuneration are paid by Scania CV AB. The reader is therefore
referred to Notes 25 and 27. Compensation of SEK 10,000 (13,000
and 18,000, respectively) was paid to auditors in 2004 with respect to
the Parent Company.
PARENT COMPANY NOTES • SCANIA ANNUAL REPORT 2004 78