Scania annual report 2002

the corporate level. Responsibility for residual value
guarantees rests with sales organisations.
As a result of the weak economic situation, during
2002 there was a stronger focus on credit research as
well as management of customers that do not follow the
agreed payment plan. Further resources were allocated
for this, and proactive monitoring of the credit portfolio
increased.
For customers who are not judged capable of fulfilling
their contractual obligations, Scania makes specific
provisions for credit risks in its accounts, based on
an individual assessment of each customer with regard
to payment capacity and expected future risk.
In 2002, actual credit losses totalled SEK 142 m.
(57). Total credit losses including net provisions to
reserves were equivalent to 0.69 percent of the average
portfolio.
At year-end, the total reserve for possible credit
losses was SEK 409 m. (413), equivalent to 1.6 (1.6)
percent of the portfolio.
Future outlook
In most of Scania’s major markets, local finance companies
have now been established. The focus will
continue to be on further development of the services
included in customer financing.
Additional refinement of credit management and
follow-up, as well as efficiency improvements in Scania’s
procedures and processes, will enjoy priority. This will
strengthen the role of Customer Finance as the natural
choice for financing purchases of Scania’s products and
services.
Andrzej Olechnicki
Transport Services, Gdynia, Poland
Scania’s financing services have helped Andrzej Olechnicki to invest in
new Scania trucks in his company, Transport Services. Scania’s financing
package for Transport Services is one of the largest contracts of its
kind in Poland. The company’s goal is to be the third largest transport
company in the country within one year.
“Scania is a strong name in Poland. But here Scania is not the ‘King’
but the ‘Queen of the Road’, since a name that ends in ‘a’ cannot be
masculine. In any case, Scania gives us what we need in our company.
Take, for example, the fact that our new Scania trucks have 7 percent
better fuel consumption.”
Altogether, Transport Services’ 40 Scania trucks carry goods to 25
different destinations in Europe and Asia. Aside from its own trucks,
via affiliated companies it controls another couple of hundred trucks in
Poland. Scania’s financing terms have enabled Transport Services to
increase its business and make investments in renovating workshops
and offices.
“Now we have invested for the future. Soon Poland will become a
member of the EU and Polish transport companies will increase their
international traffic. We will be ready then.”
45