HQ Bank
Claes Jacobsson, Senior Vice President, Financial Services




   1
Volume driven growth
          Credit portfolio, 9 months 2008
                     SEK m.
                      45,000
Po...
Operating income development

    SEK m.                               Operating income              Operating income rati...
Bad debt expenses

    Percent
       0,80
                                                        Bad debt ratio     Writ...
Historic development: Reserves

    SEK m.                                                                                ...
Diversified financing portfolio

                  Percentage of total portfolio value
    Percent
         80

        70...
Financing portfolio by geographic area


    Percent
       100
              8%
                                         ...
Market & Product Range
Key Facts YTD Sept 2008
Number of employees: 499
Number of customers: 25,121                       ...
Customer insurance products
..linked to the financed vehicle   ..linked to the finance contract

Kasko
                   ...
Mode of Operation


15 business units                                                                                 Finl...
Funding


     Refinancing risk
          Funding and lending must be matched in terms
      –
          of maturity. The ...
Conservative refinancing policy


                                              EIB loan
 Increased credit
 facilities
   ...
Risk management principles


     Business risks
         Residual values and R&M contracts are
     –
         managed by...
Sales with obligations


     ~ 10 % of deliveres with residual value or
     repurchase obligations

     Obligations amo...
Conclusions


     Well balanced portfolio
         Customer profile
     –
         Geography
     –
         Limited exp...
16
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Scania HQ%20Bank%20Investor%20meeting_tcm10-219785

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Scania HQ%20Bank%20Investor%20meeting_tcm10-219785

  1. 1. HQ Bank Claes Jacobsson, Senior Vice President, Financial Services 1
  2. 2. Volume driven growth Credit portfolio, 9 months 2008 SEK m. 45,000 Portfolio +8%, local currencies 40,000 35,000 Increased bad debt 30,000 provisions in 25,000 several markets 20,000 15,000 Well balanced 10,000 portfolio 5,000 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2
  3. 3. Operating income development SEK m. Operating income Operating income ratio Percent 600 2.00 1.80 500 1.60 1.40 400 1.20 300 1.00 0.80 200 0.60 0.40 100 0.20 0 0.00 1996 2007 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2008 9 mth 3
  4. 4. Bad debt expenses Percent 0,80 Bad debt ratio Write-off ratio 0,70 0,60 0,50 0,40 0,30 0,20 0,10 0,00 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 9 mth 4
  5. 5. Historic development: Reserves SEK m. Percent 800 2.50 Reserve Reserve ratio 700 2.00 600 500 1.50 400 1.00 300 200 0.50 100 0 0.00 1997 2007 1998 1999 2000 2001 2002 2003 2004 2005 2006 2008 9 mth 5
  6. 6. Diversified financing portfolio Percentage of total portfolio value Percent 80 70 60 50 40 30 20 10 0 Exposure Exposure Exposure < SEK 15 m. SEK 15-50 m. > SEK 50 m. 6
  7. 7. Financing portfolio by geographic area Percent 100 8% 21% 80 60 40 20 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Western Europe (north) Western Europe (south) Eastern Europe Overseas 7
  8. 8. Market & Product Range Key Facts YTD Sept 2008 Number of employees: 499 Number of customers: 25,121 Finland Number of finance contracts: 88,299 Norway Russia Sweden Portfolio: SEK 42,011 m. (EUR 4,200 m.) Estonia Latvia Operating income: SEK 366 m. (EUR 36 m.) k DK Lithuania Great Britain Belarus Kazakhstan NL Poland Product range coverage Belgium Germany Luxembourg Ukraine Czech Rep. Customer finance Slovakia Austria France Customer insurance Hungary Switzerland Romania Croatia Dealer financing Bosnia Serbia Montenegro Bulgaria Italy Portugal Spain Macedonia Customer finance Turkey Customer insurance *Chile *South * Botswana Customer finance Korea Namibia South Africa Tanzania 8
  9. 9. Customer insurance products ..linked to the financed vehicle ..linked to the finance contract Kasko Gap Physical damage and collision Covering difference between coverage outstanding loan and market value in case of total loss Third Party Liability Protect the customer against Loan Protection legal liability claims Covering outstanding loan in case of death or total disability for Fleet owner /driver Insurances created for big fleet customers Key Success Factor: Claims Management Process 9
  10. 10. Mode of Operation 15 business units Finland covering 40 markets Norway Russia Sweden Estonia Latvia DK Lithuania Great Britain Belarus Kazakhstan NL Poland Germany Belgium Luxembourg Ukraine Czech Rep. Slovakia Austria France Hungary Switzerland Romania Croatia Bosnia Serbia Montenegro Bulgaria Portugal Italy Spain Macedonia Turkey *Chile *South * Botswana Korea Namibia South Africa Tanzania 10
  11. 11. Funding Refinancing risk Funding and lending must be matched in terms – of maturity. The refinancing is done trough Treasury on a first offer last refusal basis No interest rate risk No currency risk 11
  12. 12. Conservative refinancing policy EIB loan Increased credit facilities +70% EIB loan of SEK 3,000 m. SEK 24,300 m. SEK Credit facilities & 14,210 m. EIB unutilised Facilities Facilities Sep 2008 End 2007 Scania Group 12
  13. 13. Risk management principles Business risks Residual values and R&M contracts are – managed by sales and service organisation Credit risk Managed by Financial Services – Funding Matched funding in terms of liquidity, – interest rates risks and currencies 13
  14. 14. Sales with obligations ~ 10 % of deliveres with residual value or repurchase obligations Obligations amounts to SEK ~ 6.3 bn. Operating leases has decreased last 3 years 14
  15. 15. Conclusions Well balanced portfolio Customer profile – Geography – Limited exposure operating leases – Business opportunity in financial turbulance Conservative refincing policy 15
  16. 16. 16

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