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THE SCANIA REPORT 2016 Annual and Sustainability Report Scania 2016

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THE SCANIA REPORT 2016 Annual and Sustainability Report Scania 2016 THE SCANIA REPORT 2016 Annual and Sustainability Report Scania 2016 2009 SCANIA – 1980 125 YEARS In 2016, Scania celebrated its 125th anniversary. Since day one, Scania 1969 has been at the forefront of the transport industry. Through ingenious engineering, guided by our core values and a strong focus on continuous improvement we have provided our customers profitable solutions to meet their needs. 1897 2003 From its founding as a small wagon-building company back in 1891 to today’s company, Scania has stood steady through even the most challenging times. On our journey towards the next 125 years, Scania is committed to play its role in a world increasingly dependent on safe, sustainable and efficient transport systems. 1891: The wagon-building company Vabis is established in Södertälje and sets about producing 1923: Scania-Vabis open goods wagons designer August and transport wagons. Nilsson develops a 1939: Scania-Vabis 1961: Scania-Vabis Some 20 years later, four-cylinder, unveiled the first builds on its success 1989: Scania delivers Scania-Vabis is created overhead-valve engine to use in Brazil, opening its 1970s: Scania’s the first order of through the merger engine. The standardised first own production industrial and marine bioethanol-powered of Vabis with the engine’s power and components, thus facility outside engines gets their buses to SL, the regional Malmö-based reliability are of marking the beginning Sweden in São characteristic public transport machine-manufacturing major benefit in of Scania’s modular Bernardo do Campo, signature colour: company in the company Scania. trucks and buses. system. near São Paulo. paprika red. Swedish capital. 1891 1950 1936: Scania-Vabis develops 1941: The Scania 1969: A legend is born! Scania 1980: Scania introduces its first diesel engine, vocational school introduces a 350 hp, 14-litre the GPRT range (2-series) – something that impresses started. Eventually it V8 turbocharged engine. the company’s first entirely the trade press during test became a three-year It is the most powerful truck modularised product range. drives. “To my surprise, upper secondary school engine in Europe at the time I could hardly hear the entirely driven by Scania. and pioneers Scania’s low-rev engine,” wrote one journalist. Today the school is philosophy with a high-torque “However, I certainly felt its named Mälardalens output at low engine speeds. effect as the bus shot Tekniska Gymnasium forward like an arrow.” and is run by Scania, AstraZeneca and Telge. 2016 Scania and Ericsson announce joint research on connectivity At the Mobile World Congress in Barcelona, Scania and Ericsson announce joint research efforts to accelerate the connectivity of commercial vehicles and infrastructure. Scania inaugurates new Technology Centre in Brazil Scania inaugurates a Technology Centre in São Bernardo do Campo, Brazil, with engine test cells that will be used for the developing, testing and certifying of its engines. Autonomous vehicles demonstration Scania is showcasing self-driving trucks, in Södertälje, Sweden, in a unique demonstration with two collaborating vehicles. The technology will initially be used in, for example, mines and ports. Inauguration of electric road E16 with a Scania hybrid truck The world´s first electric road is being inaugurated outside Gävle, Sweden. It is the result of a unique partnership demonstrating the path towards fossil-free transportation and Scania is supplying the electrically-powered trucks. Launch of the Next Generation 1961 Scania in Paris In the biggest-ever product launch in company's history, Scania introduces a new truck range, the result of ten years of development work and an investment of over SEK 20 billion. The new truck generation honoured The S-series is elected for the prestigious “International Truck of the Year 2017” award. The jury’s motivation emphasises the new truck generation’s driver comfort, safety aspects and its positive impact on hauliers’ overall economy, among other factors. A premium bus factory inaugurated in China Scania and Higer inaugurate a new, state-of-the-art bus and coach factory in Suzhou, China. The new factory will exclusively build Scania Touring and Scania-Higer dual-branded high-end buses and 2003: Scania’s Young coaches. 1990 – 1995: A major European Truck Driver 2009: Scania tackles the development process is competition makes its financial crises and a very initiated to improve debut. The competition sharp decline in market 2013: Scania tests fast wireless charging efficiency, working has since evolved into demand by introducing the A demonstrator in urban traffic conditions and the status of the world’s largest truck four-day week – a key project with The Nordic region’s first bus service featuring wireless blue collar workers, resulting driving and training element of Scania’s electrified (inductive) bus stop charging is inaugurated. A newly in a production method event. Over the years strategy to preserve the trucks begin in developed electric hybrid bus from Scania will be where continuous process more than 350,000 collective competency of partnership with operating in 2017 in regular urban traffic in Södertälje, improvements and personal drivers in 50 countries the company through Siemens at its Sweden, as part of the efforts to identify new, more involvement become part of have participated. difficult times. research facility sustainable solutions for public transport in urban the job. outside Berlin. environments. 2000 2016 1996 – present: 2009: Scania launches the 2011: The Scania 2011: Two years before 2013: A record number The continuous Scania Touring, a new coach Communicator device it becomes legally of inventions disclosures, For more on improvement work built in partnership with becomes standard in compulsory, Scania a whole 700 of them, Scania’s heritage evolves into the Scania Chinese bus bodybuilder all trucks for the introduces Europe’s first are submitted to Scania’s see Production System (SPS), Higer. Scania and Higer have European market and Euro 6 truck. Patent Department. www.scania.com/ which gradually develops joined forces to produce Scania begins to The majority are on group/en into a new leadership buses in China for the world systematically leverage the development of strategy and a set of new market – a pioneering step data on vehicle electronics and control working methods forward in bus manufacturing. performance. systems. throughout the company. At Scania, we share the belief that sustainability and profitability go hand in hand. We also recognise the critical role the transport industry will play in solving the challenges the world is facing. Scania’s vision is to drive the shift towards a sustainable transport system, creating a world of mobility that is better for business, society and the environment. Our starting point is to ensure profitability for our customers and make them more efficient. In close dialogue and in partnership with our customers we provide tailored transport solutions in order to meet their needs. Highlights/Contents HIGHLIGHTS Contents Scania in brief 2-7 Scania at a glance 2016 2 The Scania Way 4 Financial highlights Operating Income CEO statement: A remarkable year 6 SEK m. SEK m. The world around us 8-11 Opportunities in a changing world 8 120,000 12,000 Towards a sustainable transport system 10 100,000 10,000 * Our business 12-29 Sustainability at Scania 12 80,000 8,000 Creating customer profitability and stakeholder value 13 60,000 6,000 Tailor-made for every need 16 Services with the customer’s 40,000 4,000 profitability in focus 18 The new premium 20 20,000 2,000 Innovation and partnership 22 Our people are our greatest asset 24 Sustainable every step of the way 26 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Our approach to sustainable transport 30-37 A solution for every flow 30 Net sales Operating income Cities – The key to change 32 Helping industries become more efficient 34 * A holistic view of logistics flows 36 103,927 10,184 Corporate Governance 38-41 Report of the Directors 42-57, 118 Total vehicle deliveries and service sales Scania’s operational performance was Market trends 2016 42 reached all-time high levels and Scania’s strong during the year despite difficult Risk and risk management 47 net sales rose to a record level in 2016. market conditions. *Operating income including items affecting comparability Board of Directors 52 amounted to SEK 6,384 m. Executive Board 54 Group financial review 55 Non-financial highlights Financial reports 58 Consolidated income statements 60 No. Units (accumulated) Consolidated balance sheets 62 48,000 250,000 Consolidated statement changes in equity 64 Consolidated cash flow statements 65 46,000 Notes to the consolidated financial 200,000 statements 66 44,000 Parent company financial statements, 150,000 Scania AB 115 42,000 Notes to the parent company 116 40,000 100,000 Proposed distribution of earnings 118 38,000 Audit report 119 50,000 Key financial ratios and figures 123 36,000 Definitions 125 Multi-year statistical review 126 34,000 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Sustainability KPIs 128 GRI Index 130 Number of employees Connected Scania vehicles Financial information 136 46,243 230,470 At the end of 2016 the number of The number of connected vehicles is employees had increased by 1,834 people steadily increasing, enabling Scania to compared to the end of 2015. further optimise customer solutions. Scania Annual and Sustainability Report 2016 1 Scania in brief SCANIA AT A GLANCE 2016 Luleå Södertälje Lahti Oskarshamn St. Petersburg Meppel Zwolle Slupsk Angers Busan Taipei Bengaluru Bangkok Kuala Lumpur Key Regional Product Centres Tucumán São Paulo Johannesburg Production units Research and development Sales and services A global presence NetNET sales SALES by PRODUCT product segment BY SEGMENT 2016, % Scania is a world-leading provider of transport solutions, including trucks and buses for heavy transport applications ■ Trucks 60% combined with an extensive service offering.
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