Scania annual report 2002

BUSES
ENGINES SERVICE-RELATED PRODUCTS CUSTOMER FINANCE
9% 1% 23%
Scania’s bus and coach operations focus on
heavy buses with high passenger capacity for
use as tourist coaches and in intercity and
urban traffic. Most of Scania’s bus production
consists of chassis on which bodies are built
by specialist bodybuilding companies.
MARKET DEVELOPMENTS
Scania’s bus and coach sales developed
favourably in a number of European markets.
In Italy, Scania significantly increased its
market share, mainly due to strong city bus
sales. Scania sharply increased its bus sales
in Australia and Dubai.
IMPORTANT EVENTS
During 2002, Scania’s bus and coach
operations in Europe were co-ordinated
with truck operations. During the year,
an assembly plant for bodybuilding of city
buses opened in St. Petersburg, Russia.
Deliveries, units
6,000
4,000
2,000
4,174
4,672
3,774
6,000
4,000 3,704
2,000
4,701
3,991
Scania’s industrial and marine engines are
used in a variety of applications at sea and
on land.
MARKET DEVELOPMENTS
In Europe, Scania increased its deliveries
of industrial and marine engines somewhat
during the year. In Latin America, sales
declined sharply due to the unstable economic
situation. The engine sales growth
of recent years in Saudi Arabia continued
during 2002.
IMPORTANT EVENTS
During the year, Scania delivered its first
marine 16-litre V8 engines, which were
installed in the Swedish Sea Rescue Society’s
new boat. Scania and the Japanese engine
manufacturer Yanmar reached a strategic
co-operation agreement during 2002, under
which Yanmar has been entitled to sell
and market Scania’s marine engines to the
pleasure boat industry worldwide under its
own brand name.
By continuously increasing the range of
service-related products, Scania helps its
customers achieve increasingly cost-effective
solutions. Customer relationships develop
into a mutual partnership.
MARKET DEVELOPMENTS
More than 500,000 trucks and buses from
Scania are serviced and maintained by 1,500
authorised Scania workshops around the
world. More than 1,000 of these are in
Europe. Sales of service and parts increased
by 4 percent during 2002 to SEK 10,603 m.
In some markets, up to half of new truck
sales are combined with service contracts.
IMPORTANT EVENTS
During 2002, Scania’s extensive service network
added a sixth Assistance Centre, located
in Trento, Italy.
Sales, SEK m. Deliveries, units Sales, SEK m. Sales, SEK m.
5,000
4,000
3,000
2,000
3,303
4,672
3,191
1,000
800
600
400
437
608
464
12,000
8,000
4,000
8,113
10,151 10,603
Customer Financing is an important element
of Scania’s integrated product range. For
customers, financing is often one element
of a cost-effective total solution for their
transport business. Scania offers hire purchase
contracts as well as financial and operating
leases.
MARKET DEVELOPMENTS
In Europe, Customer Finance operations consist
of 13 Scania-owned finance companies.
In some western European countries, portfolio
growth halted, since sales volume did not
increase. In central and eastern Europe,
Customer Finance operations continued to
expand.
IMPORTANT EVENTS
During 2002, a finance company was
established in Russia. Scania also started its
own finance company in South Korea, where
volume continued to increase sharply.
Total assets in
finance companies
SEK m.
30,000
25,000
20,000
15,000
10,000
Operating income
and net margin
SEK m.
300
200
100
Operating income
Net margin
as a percentage
of average
portfolio
%
1.5
1.0
0.5
1,000
200
5,000
0
2000 2001 2002
0
2000 2001 2002
0
2000 2001 2002
0
2000 2001 2002
0
2000 2001 2002
0
99 00 01
02
0
99 00 01 02
0
3