Scania annual report 2002

Earnings by area of operations
2002 2001
Operating income, SEK m.
European operations 5,403 5,066
Latin American operations 59 –581
Customer Finance operations 308 278
Research and development expenses –1,437 –1,955
Corporate costs –490 –452
Total Scania products 3,843 2,356
Car operations 563 111
Total operating income 4,406 2,467
Operating margin, %
European operations 12.5 11.9
Latin American operations 1.3 –10.0
Scania products 8.3 5.0
Car operations – 1.9
Scania Group total 8.2 1 4.6
1 Excluding capital gain in car operations.
Earnings, Scania Group, SEK m.
2002 2001
Operating income 4,406 2,467
Income after financial items 3,722 1,541
Net income 2,739 1,048
Earnings per share, SEK 13.70 5.24
Return on capital employed
(excl. Customer Finance operations) 15.8% 8.4%
Return on equity 17.2% 6.5%
Net income for the year amounted to SEK 2,739 m.
(1,048), resulting in earnings per share of SEK 13.70
(5.24).
Cash flow
Scania’s cash flow, excluding Customer Finance
operations and divestments/acquisitions, amounted to
SEK 2,418 m. (2,995). Interest and tax (SEK 461 m.
and 573 m. respectively) were charged to cash flow.
Cash flow including divestments/acquisitions was SEK
3,583 m. (2,066).
Tied-up working capital decreased by SEK 772 m.
Lower receivables and increased operating liabilities
were offset to some extent by higher tied-up inventories.
Net investments excluding divestments/acquisitions
of businesses totalled SEK –2,921 m. (–1,878), including
capitalisation of corporate development expenditures
totalling SEK 573 m. (0). The effects of divestments/acquisitions
amounted to SEK 1,165 m. (–929).
Divestments/acquisitions: The divestment of
Swedish car operations resulted in a positive cash flow
Financial ratios related to the balance sheet
2002 2001
Net debt, excl. provisions
for pensions, SEK m. 1 4,308 7,790
Net debt/equity ratio 1 0.25 0.49
Equity per share, SEK 84,66 79,98
Equity/assets ratio, % 25.6% 23.4%
1 With Customer Finance operations reported according to the equity
accounting method.
of SEK 1,332 m. In addition, Scania’s net debt
improved by SEK 220 m., since the buyer took over
previous intra-Group financing. During the preceding
year, cash flow was negatively affected by SEK 886 m.
due to the acquisition of the Dutch sales and service
company Beers N.V. (see Note 22).
Financial position
During the year, gross investments totalled SEK 3,025
m. (1,980). Scania carried out large investments in cab
production facilities. In 2002, gross investments also
included development expenditures of SEK 573 m.
During 2002, the shareholders’ equity of the
Scania Group increased by SEK 936 m. and totalled
SEK 16,931 m. (15,995) at year-end. Net income for
the year added SEK 2,739 m, while dividends to the
shareholders decreased shareholders’ equity by SEK
700 m. The remaining decrease, SEK 1,103 m.,
consisted of exchange rate differences that arose when
translating net assets outside Sweden, as a consequence
of the krona’s appreciation against the EUR,
USD and local Latin American currencies. (See Note 15).
The dividend for the financial year proposed by the
Board of Directors is SEK 5.50 (3.50) per share.
The net debt of the Scania Group, that is the difference
between interest-bearing liabilities (excluding
pension liabilities) and liquid assets with Customer
Finance operations reported according to the equity
accounting method, amounted to SEK 4,308 m.
(7,790). This was equivalent to a net debt/equity ratio
of 0.25 (0.49). The sharply improved net debt/equity
ratio was due to improved cash flow from operating
activities as well as the payment received for the
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