Preliminary fair values assigned to Scania’s assets and liabilities for VW’s financial reporting of Scania

As a consequence of Volkswagen’s acquisition of Investor AB and the Wallenberg Foundations block of shares in Scania effective July 22, 2008, Volkswagen’s shareholding in Scania fulfils the criteria of a business combination and has to be treated in accordance with the financial reporting standard IFRS 3 “Business Combinations” in the financial reporting of Volkswagen. The standard requires the purchase price to be allocated to all assets and liabilities acquired.

Since Scania is not a wholly owned subsidiary of Volkswagen and the company’s shares continues to be listed on the OMX Nordic Exchange Stockholm, Scania is prohibited from selectively providing Volkswagen with price sensitive financial information, except were the same is required in order for Volkswagen to fulfil its statutory reporting obligations.

Based hereon and in order to limit the information provided to Volkswagen, Scania has since July 22nd, with the assistance of independent valuation expertise, assigned preliminary fair values to its assets and liabilities according to the principles and methods of IFRS 3, to be used in Volkswagen’s purchase price allocation. Future financial reports to be published by Scania are not affected by the assigned fair values in Volkswagen’s reporting of its holding in Scania.

In order to ensure that all shareholders have the same information Scania hereby publishes the preliminary fair value adjustments that Scania has assigned to its assets and liabilities in accordance with the above:

Assets in Scania have preliminary fair values of about SEK 38.5 billion above carrying amounts and consist mainly of:

- Intangible assets were assigned a value of about 28 billion above the book value, consisting of 19 billion assigned to the Scania trade name, customer relationships and to order backlog and of 9 billion assigned to Scania’s technology.
- Tangible fixed assets and lease assets were about 7.5 billion higher than book values.
- Other assets, mainly inventory, increased book value by about 3 billion.

Liabilities in Scania have preliminary fair values of about SEK 11.5 billion above carrying amounts and consist mainly of deferred tax on the fair value adjustments.

The above values constitute only a part of Volkswagen’s complete purchase price allocation. Financial projections used in Volkswagen’s purchase price allocation are based on Volkswagen’s own projections for Scania. Fair values could be subject to changes as a consequence of further analysis and the forthcoming audit.


For further information, please contact Erik Ljungberg, Senior Vice President Corporate Relations, Tel. +46 (0)8 553 835 57 and Per Hillström, Investor Relations, Tel. +46 (0)8 553 50226.

About Us

Scania is a world-leading provider of transport solutions. Together with our partners and customers we are driving the shift towards a sustainable transport system. In 2016, we delivered 73,100 trucks, 8,300 buses as well as 7,800 industrial and marine engines to our customers. Net sales totalled nearlySEK 104 billion, of which about 20 percent were services-related. Founded in 1891, Scania now operates in more than 100 countries and employs some 46,000 people. Research and development are concentrated in Sweden, with branches in Brazil and India. Production takes place in Europe, Latin America and Asia, with regional production centres in Africa, Asia and Eurasia. Scania is part ofVolkswagen Truck & Bus GmbH. For more information visit www.scania.com.

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