Scania annual report 2002

Net debt 2002 2001 2000
Cash, bank balances
and short-term investments 4,339 4,107 3,581
Short-term borrowings – 6,933 –14,504 –11,986
Long-term borrowings –22,514 –18,908 –15,372
Total –25,108 –29,305 –23,777
Of which, attributable to
Customer Finance operations –20,800 –21,515 –15,996
Net debt excluding
Customer Finance operations – 4,309 –7,790 –7,781
NOTE 19 Accrued expenses and prepaid income
2002 2001 2000
Accrued financial expenses 567 431 325
Customary accrued
expenses and prepaid income 3,897 3,440 2,891
Prepaid income in operating leases 1 2,306 2,271 2,091
Total 6,770 6,142 5,307
1 Since the first quarter of 2001, Scania has applied recommendation RR11
of the Swedish Financial Accounting Standards Council. This means that
when selling vehicles with repurchase obligations or when selling with
a guaranteed residual value, the customer’s payment is reported as prepaid
income and the vehicle as an operating lease. The vehicle is then depreciated
and the payment is reported as income successively during the obligation period.
NOTE 20 Assets pledged
2002 2001 2000
Real estate mortgages 191 231 240
Receivables – 2 5
Total 191 233 245
All assets pledged consisted of collateral for the Group’s own
liabilities. In 2002, all collateral was pledged to credit institutions
and was divided between SEK 10 m. in short-term borrowings
and SEK 181 m. in long-term borrowings.
NOTE 21 Contingent liabilities
2002 2001 2000
Contingent liability related to
FPG credit insurance 185 27 27
Contingent liability related to
FPG credit insurance
(associated companies) – 159 147
Loan guarantees 43 92 144
Discounted bills and contracts 72 140 133
Other guarantees 380 437 430
Total 680 855 881
In addition to the above contingent liabilities, the Group has issued vehicle
repurchase guarantees worth SEK 493 m. (804 and 727, respectively) to
customers’ creditors.
Repurchase obligations related to guaranteed residual values in operating
leases amounted to SEK 6,077 m. (7,413 and 5,449, respectively).
The Group is party to legal proceedings and related claims that are normal
in the type of operations it engages in. However, Scania management
has made the assessment that the ultimate resolution of these proceedings
will not have any material impact on the Group’s financial position.
NOTE 22 Consolidated statement of cash flow
Items not affecting cash flow 2002 2001 2000
Depreciation 2,093 2,157 1,999
Value adjustment, short-term leasing 152 161 44
Unrealised exchange rate differences 53 –58 –66
Bad debts 207 263 61
Associated companies 11 28 –143
Taxes 423 –306 68
Deferred profit recognition,
operating leases –364 –120 154
Reported capital gain/loss on
divestment of businesses –534 5 –21
Other 0 –6 –99
Total 2,041 2,124 1,997
Change in working capital
Interest-bearing long-term receivables –58 97 –32
Other receivables 281 1,876 –1,362
Inventories –918 475 74
Provisions for pensions 171 153 75
Advance payments from customers 152 185 –40
Trade creditors 162 –519 699
Other liabilities and provisions 982 –372 170
Total 772 1,895 –416
Net investments excluding acquisitions/divestments
of businesses
Investments in fixed assets 1 –3,363 –2,405 –1,968
Divestments of fixed assets 442 527 447
Total –2,921 –1,878 –1,521
1 Of which, SEK 573 m. for development expenditures capitalised in 2002.
Net investment through acquisitions/divestments
of businesses
Proceeds from sale of shares (after subtracting liquid assets in
divested businesses) 2 1,350 –42 24
Acquisitions of businesses 2 –185 –887 –53
Investment in convertible
debenture loans 3 – – –428
Total 1,165 –929 –457
Change in net debt through financing activities
Net change in short-term borrowings –5,814 –782 –2,070
Repayment of long-term borrowings –4,983 –1,248 –190
Increase in long-term borrowings 8,984 4,032 4,221
Net change in restricted deposits 0 117 59
Total –1,813 2,119 2,020
Interest and taxes paid 2002 2001 2000
Interest received during the year 260 294 415
Interest paid during the year –721 –1,035 –882
Taxes paid during the year –573 –1,049 –1,373
Dividends received from
associated companies 25 70 98
2 During 2002, Scania acquired businesses in Slovakia and Sweden as well as
distribution rights in Argentina. During the year, Scania divested its holding in
Swedish car operations and the Silkeborg bus business in Denmark. The value
of the liabilities and assets acquired/divested was as follows:
Assets and liabilities attributable to acquisitions/divestments of subsidiaries
and other business units Acquisitions Divestments
Tangible and intangible fixed assets 257 –390
Inventories 12 –453
Receivables 84 –280
Liquid assets 61 –21
Borrowings 49 284
Other liabilities and provisions –182 637
Shares in associated companies and
other companies 10 –
Gain/loss from divestments of businesses – –534
Carrying amount of previously owned
holdings in new Group company –45 –614
Purchase price paid/sale price received 246 –1,371
Liquid assets in acquired/divested businesses –61 21
Impact on consolidated liquid assets and
short-term investments 185 –1,350
3 Refers to two Brazilian dealership companies that were acquired in their entirety
in January 2001.
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