Scania Q2 2011 Presentation

Press conferenceErik LjE ik Ljungberg, Corporate Relations b C t R l ti1

Interim Report, January–June 2011Jan Ytterberg, CFOJ Ytt b2

First six months of 2011 – highlights  Stable earnings – I Increased volume d l – Currency head-winds – Altered market mix – Investments for future growth  ROCE 44.2% (23.4%)* *Rolling 12 month3

Volume trend Total d li i T t l deliveries, trucks and buses t k db Units 24,000 Deliveries +42% in H1 2011 20,000 More vehicles to 16,000 Russia and Middle 12,000 East – fewer to Brazil 8,000 Lower production 4,000 rate in first part of p 0 Q2 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Q2 Q3Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 2010 20114

Service revenue SEK m. 5,000 Volume increase ~10% in H1 10% 4,000 Improved capacity 3,000 utilisation tili ti 2,000 Negative impact g p from currency 1,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 2010 20115

Earnings trend Operating income, Scania Group O ti i S i G SEK m. Percent 4,500 20 Operating income Operating margin Net sales +18% H1 4,000 18 16 3,500 3 500 EBIT margin 15.2 % 3,000 14 (15.2) H1 and 2,500 12 14.4% (17.0) 14 4% (17 0) Q2 2,000 10 8 Earnings per share g p 1,500 6 SEK 6.18 (4.75) H1 1,000 4 500 2 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 2010 20116

Operating income Vehicles d S V hi l and Services i EBIT increase due to: – Volume + Volume + Price – Price EBIT increase: Negative effects: SEK 821 m. H1 - Currency 2011 - Mix – Currency y - Cost level – Market mix – Higher cost level7

Currency exposure Jan-Jun 2011 vs 20108

Cash flow Vehicles d S V hi l and Services i SEK m. m 4,000 3,000 , N Negative impact ti i t from inventory 2,000 Higher level of 1,000 investment Q4 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 2010 2011 - 1,000 - 2,000 Note: Excluding acquisitions/divestments and Financial Services9

Net debt Vehicles d S V hi l and Services i SEK m. m Percent 10,000 100 Net debt Net debt/equity ratio 8,000 80 Net cash SEK 6,000 6 000 60 6,948 m. 4,000 40 (Net cash 7,700 2,000 20 end of 2010) d f 0 2006 2007 2010 2011 0 2000 2001 2002 2003 2004 2005 2008 2009 -2,000 -20 Dividend paid p -4,000 4 000 -40 40 4,000 m. SEK -6,000 -60 in Q2 -8,000 -80 -10,000 -10010

Volume trend Credit C dit portfolio, Financial Services tf li Fi i lS i SEK m. m 50,000 Portfolio +8%*, 45,000 since end of 2010 i d f 40,000 40 000 35,000 Lower level of bad 30,000 debt expenses 25,000 20,000 Operating income 15,000 15 000 SEK 131 (49) m. in 10,000 Q2 5,000 0 1997 1999 2001 2003 2005 2007 2009 2011 * In local currencies11

Summary  Stable earnings – Volume increase – Currency head-winds – Altered market mix – Investments for future growth  ROCE 44.2% (23.4%)* *Rolling 12 month12

OutlookLeif Ö tliL if Östling, President and CEO P id t d14

Business overview – First six months  Improved European demand  Still high demand in Latin America  Strong demand in Middle East and Russia  High demand for service15

Growth in order bookings 30 000 Units Order bookings trucks per quarter Lead Lead times 6-8 times 8 10 8-10 weeks months 25 000 20 000 15 000 10 000 5 000 0 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 1996 1996 1998 1998 2000 2002 2002 2004 2004 2006 2006 2008 2008 2010 201016

Growth in order bookings Units Order bookings buses per quarter 3000 2500 2000 1500 1000 500 0 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 1996 1996 1998 1998 2000 2000 2002 2002 2004 2004 2006 2006 2008 2008 2010 201017

Share of vehicle deliveries Q2 2011 (2010) Eurasia Europe 9% (2%) 41% (38%) Asia Latin America 19% (22%) 26% (32%) Africa & Oceania 5% (6%)18

Investments to support growth  New companies in India and Japan  R&D investments to strengthen product portfolio tf li  Investments in sales & service capacity19

Investments to support growth Boost production capacity to 120 000 120,000 vehicles New agreement to increase flexibility in production (Sweden)20

Scania Q2 2011 Presentation

by Scania Group on Jul 21, 2011

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Scania Q2 2011 Presentation — Presentation Transcript