Scania Annual Report 2011

96
notes to the consolidated financial statements
NOTE 3 Operating segment reporting
Scania’s operations are divided into two different operating segments,
which are based on how the Board of Directors and the Executive
Board monitor operations. The results and financial position of each
respectiv e segment are monitored by the Board of Directors and the
Executiv e Board, serving as the basis for decision making and allocation
of resources.
The Vehicles and Services operating segment encompasses the
following products: trucks, buses and engines, including the services
associated with these products. All products are based on shared
basic components, and monitoring of results thus occurs on an
aggre gated basis. Vehicles and Services are, moreover, organised into
shared areas of responsibility.
The Financial Services operating segment provides financial solutions
to Scania customers, such as loan financing, lease contracts and
insurance solutions. Scania’s internal pricing is determined accordin g
to market principles, at “arm’s length distance”. The revenue and
expenses, as well as the assets and liabilities, of each operating
segment are − in all essen tia l respects − items directly attributable to
that respective segment. Scania has a large number of customers all
over the world, which means that its dependence on a single customer
in each respective operating segment is very limited.
OPERATING SEGMENT
Income statement Vehicles and Services 4 Financial Services 5 Eliminations Scania Group
January – December 2011 2010 2009 2011 2010 2009 2011 2010 2009 2011 2010 2009
Revenue from external
customers 1 87,686 78,168 62,074 4,372 4,197 4,666 –1,749 –1,797 –1,842 90,309 80,568 64,898
Expenses –75,821 –65,609 –59,431 –3,855 –4,026 –4,841 1,749 1,797 1,842 –77,927 –67,838 –62,430
Income from holdings
in associated
companies 16 16 5 – – – – – – 16 16 5
Operating income 11,881 12,575 2,648 517 171 –175 – – – 12,398 12,746 2,473
Interest income 820 464 407 – – – – – – 820 464 407
Interest expenses –559 –657 –1,129 – – – – – – –559 –657 –1,129
Other financial income
and expenses 2 –47 –20 –149 – – – – – – –47 –20 –149
Income before tax 12,095 12,362 1,777 517 171 –175 – – – 12,612 12,533 1,602
Taxes 2 –3,063 –3,389 –461 –127 –41 –12 – – – –3,190 –3,430 –473
Net income
for the year 9,032 8,973 1,316 390 130 –187 – – – 9,422 9,103 1,129
Depreciation/
amortisation included
in operating income 3 –2,609 –2,544 –2,748 –21 –21 –24 – – – –2,630 –2,565 –2,772
1 Elimination refers to lease income on operating leases.
2 Financial income and expenses as well as taxes are reported at segment level to better reflect
the Financial Services operating segment, whose operations are based on net financing
expense after taxes. For reasons of comparability, the corresponding information is also shown
for the Vehicles and Services operating segment.
3 Value decrease in operating leases is not included.
4 Scania’s revenue in the Vehicles and Services segment by product can be seen in Note 4.
5 Scania’s revenue in the Financial Services segment by type can be seen in Note 6.
Vehicles and Services Financial Services Scania Group
Cash flow statement by segment 2011 2010 2009 2011 2010 2009 2011 2010 2009
Cash flow from operating activities 11,659 12,981 3,581 675 612 511 12,334 13,593 4,092
Change in working capital etc. –957 1,708 5,080 – – – –957 1,708 5,080
Cash flow from operating activities 10,702 14,689 8,661 675 612 511 11,377 15,301 9,172
Cash flow from investing activities –3,732 –2,809 –3,149 –7,477 531 4,504 –11,209 –2,278 1,355
Cash flow before financing activities 6,970 11,880 5,512 –6,802 1,143 5,015 168 13,023 10,527
financial reports Scania 2011