Interim Report, January–September 2013
Erik Ljungberg Corporate Relations
Ljungberg,

1
Business overview
Martin Lundstedt President and CEO
Lundstedt,

2
First nine months of 2013
 Improved truck order

bookings in Europe
 Truck order bookings in

Latin America at a high le...
Europe
Scania trucks order bookings
trucks,

 Higher market share

– strong position in
Euro 6
 No seasonal down-

turn ...
Euro 6 and Scania Streamline
 Maintain leadership

in fuel efficiency
 Proven Euro 6

record
 Second generation

with b...
Latin America
Scania trucks order bookings
trucks,
 Order bookings at
g

a good level in Q3
 Subsidies in Brazil

and Ar...
Eurasia
Scania trucks order bookings
trucks,
 Good level of

demand in Russia
in the first nine
months

7
Asia
Scania trucks order bookings
trucks,
 Improved order
p

bookings in the
Middle East in Q3
from low level

8
Buses and coaches
Scania buses and coaches order bookings
coaches,
 Large orders in
g

Russia, Malaysia
and Taiwan in
201...
Engines
Scania engines order bookings
engines,
 Pre-buy activity
y
y

ahead of new
emission standard
(Stage IV/Tier4final...
Higher production rate
 Higher daily production rate

in Europe during Q3 and Q4
 Increased flexibility
y
 Close to cap...
Growing service revenue
 Service revenue

+9 % in local
currency in Q3
 Investment in

capacity
 Ambition to

increase ...
European heavy truck market
Units

350 000
300 000
250 000
200 000
150 000
100 000
50 000
0
1973

1978

Truck registration...
Summary
 Improved order bookings
p
g

in Europe
 Higher market share in Europe

and Latin America
 High production rate...
15
Interim Report, January–September 2013
Jan Ytterberg, CFO
Ytterberg

16
First nine months of 2013 – highlights
 Impact from stronger SEK
p
g

and weaker BRL
 Higher vehicle volume
 High level...
Volume trend
Total deliveries, trucks and buses
deliveries
 Significantly

higher volume in
Latin America
 Higher daily
...
Service revenue
 Higher volume,
g
,

somewhat higher
prices
 Increased revenue

in local currencies
in several regions
...
Earnings trend
Operating income, Scania Group
income
 Net sales up 8% in
p

9 months and up
10% in Q3 2013
 EBIT margin ...
Operating income
Vehicles and Services

 EBIT decrease due to:
– Currency rate effects
– Prices

+ Volume
+ Capacity
util...
Cash flow
Vehicles and Services
 Cash flow

SEK 618 m. in Q3
 High level of
g

investments

22
Net debt
Vehicles and Services
 Net cash

SEK 6,970 m.
(Net cash SEK
9,361 m.
9 361 m at end
of 2012)
 Dividend payment
...
Volume trend
Credit portfolio Financial Services
portfolio,
 Portfolio +4% in

local currencies
since end of 2012
 Opera...
Summary
 Significant impact from
g
p

stronger SEK on earnings
 Higher vehicle deliveries
 Higher production rate in Q4...
26
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Scania Interim Report January-September 2013

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Scania's earnings for the first nine months of 2013 fell to SEK 5,939 m. Higher vehicle volume and better capacity utilisation had a positive effect. The stronger krona had a negative impact and earnings were also pulled down by a competitive pricing environment.

Summary of the first nine months of 2013
• Operating income fell to SEK 5,939 m. (6,135), and earnings per share fell to SEK 5.30 (5.94)
• Net sales rose by 8 percent to SEK 61,864 m. (57,261)
• Cash flow amounted to SEK 1,362 m. (2,176) in Vehicles and Services

Comments by Martin Lundstedt, President and CEO:
“Scania's earnings for the first nine months of 2013 fell to SEK 5,939 m. Higher vehicle volume and better capacity utilisation had a positive effect. The stronger krona had a negative impact and earnings were also pulled down by a competitive pricing environment. Order bookings for trucks in Europe continued to improve during the third quarter. Demand has been supported by customers that are investing in Euro 5 vehicles before year-end, when the transition to Euro 6 will occur. There is also a replacement need. Scania has a strong position with its broad engine range and the launch of its second-generation Euro 6 engines. The company’s market share in Europe has increased during the period, among other things thanks to its leading position in Euro 6. In Latin America too, Scania has captured market shares. Order bookings in Latin America remained at a good level but decreased compared to the high level of the previous quarters. Order bookings for buses and coaches fell related to Latin America and Asia. In Engines, order bookings increased in Europe compared to the second quarter, driven by investments ahead of the transition to the new emission standard in 2014. Scania is continuing its long-term efforts to boost market share in Services. Service revenue rose by 9 percent in local currency during the third quarter. Scania has raised its daily production rate in Europe while increasing flexibility at its production units. There are good growth opportunities and the expansion of annual technical production capacity towards 120,000 vehicles is continuing. To strengthen competitiveness, the level of activity related to development projects remains high, at the same time as Scania is expanding its sales and service capacity in emerging markets.”

View the full report: http://bit.ly/18aqP5e

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Scania Interim Report January-September 2013

  1. 1. Interim Report, January–September 2013 Erik Ljungberg Corporate Relations Ljungberg, 1
  2. 2. Business overview Martin Lundstedt President and CEO Lundstedt, 2
  3. 3. First nine months of 2013  Improved truck order bookings in Europe  Truck order bookings in Latin America at a high level  Hi h production rate Higher d ti t  Growing service revenue 3
  4. 4. Europe Scania trucks order bookings trucks,  Higher market share – strong position in Euro 6  No seasonal down- turn in Q3  Pre-buy of Euro 5 in first nine month  Replacement need 4
  5. 5. Euro 6 and Scania Streamline  Maintain leadership in fuel efficiency  Proven Euro 6 record  Second generation with better fuel efficiency launched in 2013  Full Euro 6 range available from 2014
  6. 6. Latin America Scania trucks order bookings trucks,  Order bookings at g a good level in Q3  Subsidies in Brazil and Argentina  Higher market share g in Brazil and Argentina 6
  7. 7. Eurasia Scania trucks order bookings trucks,  Good level of demand in Russia in the first nine months 7
  8. 8. Asia Scania trucks order bookings trucks,  Improved order p bookings in the Middle East in Q3 from low level 8
  9. 9. Buses and coaches Scania buses and coaches order bookings coaches,  Large orders in g Russia, Malaysia and Taiwan in 2013  Europe at low level 9
  10. 10. Engines Scania engines order bookings engines,  Pre-buy activity y y ahead of new emission standard (Stage IV/Tier4final) in 2014 10
  11. 11. Higher production rate  Higher daily production rate in Europe during Q3 and Q4  Increased flexibility y  Close to capacity limit for supply chain  Investment for technical capacity expansion to 120,000 120 000 vehicles ongoing 11
  12. 12. Growing service revenue  Service revenue +9 % in local currency in Q3  Investment in capacity  Ambition to increase market share 12
  13. 13. European heavy truck market Units 350 000 300 000 250 000 200 000 150 000 100 000 50 000 0 1973 1978 Truck registrations > 16 tonnes 13 1983 1988 1993 1998 2003 2008 2013* * Refers to rolling 12 month
  14. 14. Summary  Improved order bookings p g in Europe  Higher market share in Europe and Latin America  High production rate in Q4  High R&D activity and increase in sales and service capacity 14
  15. 15. 15
  16. 16. Interim Report, January–September 2013 Jan Ytterberg, CFO Ytterberg 16
  17. 17. First nine months of 2013 – highlights  Impact from stronger SEK p g and weaker BRL  Higher vehicle volume  High level of investments 17
  18. 18. Volume trend Total deliveries, trucks and buses deliveries  Significantly higher volume in Latin America  Higher daily production rate in Q4 in Europe 18
  19. 19. Service revenue  Higher volume, g , somewhat higher prices  Increased revenue in local currencies in several regions  Revenue +7% in local currencies during 9 months 19
  20. 20. Earnings trend Operating income, Scania Group income  Net sales up 8% in p 9 months and up 10% in Q3 2013  EBIT margin 9.6% (10.7) in 9 months and 10.0% (10 5) in 10 0% (10.5) Q3  Earnings per share SEK 5.30 (5.94) in 9 months 20
  21. 21. Operating income Vehicles and Services  EBIT decrease due to: – Currency rate effects – Prices + Volume + Capacity utilisation –C Currency  Positive effects: – Vehicle volume – Capacity utilisation in Latin America 21 – Prices EBIT decrease: SEK 274 m., 9 months 2013
  22. 22. Cash flow Vehicles and Services  Cash flow SEK 618 m. in Q3  High level of g investments 22
  23. 23. Net debt Vehicles and Services  Net cash SEK 6,970 m. (Net cash SEK 9,361 m. 9 361 m at end of 2012)  Dividend payment SEK 3.8 bn. in Q2 23
  24. 24. Volume trend Credit portfolio Financial Services portfolio,  Portfolio +4% in local currencies since end of 2012  Operating income SEK 511 m. (433) in 9 months 2013 24
  25. 25. Summary  Significant impact from g p stronger SEK on earnings  Higher vehicle deliveries  Higher production rate in Q4  High level of investments 25
  26. 26. 26

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