At the side of the President and CEO is the Executive Board, which jointly decides - in compliance with guidelines approved by the Board of Directors and the instruction on the division of labour between the President and CEO and the Board - on issues in its area of competency that are of a long-term, strategic nature such as the development of the company, marketing, pricing policy, capital expenditures and financing. The Executive Board also prepares such issues that shall be decided by the Board of Directors.

Group Management consists of the Executive Board and the heads of each corporate unit. The corporate units are responsible for carrying out the established strategies. Each corporate unit reports to one of the members of the Executive Board.

The strategy meetings of the Executive Board take place four to six times per year. These strategies are summarised from a global perspective and updated, taking into account market developments. The implementation of strategies is an initial point at subsequent meetings with Group Management.

The members of Group Management are responsible for ensuring that the appropriate actions are taken in their respective fields of responsibility based on the strategies that have been decided. They also have a general responsibility for issues that affect the entire company, and they assist the President and CEO and the Executive Board in their work. Group Management meets four to six times per year to provide updates and information on current activities and projects, as well as to discuss the implementation of strategic decisions. These meetings also deal with issues that may later be presented for decisions at the meetings of the Executive Board.

The members of the Executive Board and the rest of Group Management who are not prevented by other obligations also gather at a brief meeting once each normal work week.

The decision making structure and management of Scania are described in greater detail in the internal governing document “How Scania is Managed”.

All managers in the company are responsible for working and communicating in compliance with the company’s strategies. The strategic direction of the Scania Group is described in the annually updated “Scania Strategic Update”. This internal governing document serves as the foundation for business and operating plans.

The companies in the Scania Group also work in compliance with the principles established in Scania’s “Corporate Governance Manual”. The main responsibility for the operations of subsidiaries, ensuring that the established profitability targets are achieved and that all of Scania’s internal rules and principles are followed, rests with the Board of Directors of each respective subsidiary.

The principles and rules presented in the governing document “Scania Financial Reporting Manual” also apply to the Scania Group as a whole. Financial, commercial and legal risks are reported regularly to the Audit Committee.