1) Scania reported record earnings in the first half of 2008, with operating margin reaching 16.6% and net margin at 12.1%.
2) Scania is pursuing profitable growth through increasing vehicle and service sales. Revenue grew 15% while EBIT grew 30% in the first half of 2008.
3) Scania's vision is to reach annual production of 150,000 vehicles while maintaining a flexible cost structure and focus on customer productivity and uptime.
2. Agenda
Scania first six months 2008
Vision for profitable growth
2
3. First half of 2008 – highlights
Profitable growth resulting in
all time high earnings
Operating margin 16.6%
–
– Net margin 12.1%
– Record returns
3
6. Building shareholder value
SEK Percent
14 50
Net income +36% EPS (SEK)
ROE
45
12
Earnings per share 40
10
SEK 12.52 rolling 35
12 month 30
8
25
6
Return on equity 20
43.5% (29.2) 15
4
10
2
5
0 0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
6
7. Market outlook
– heavy trucks*
Markets outside EU
growing in importance
– Europe – softer demand
due to economic
uncertainty
– Structural demand in
CIS countries and Russia
– Latin America – strong
growth in Brazil
– Asia – strong demand
due to infrastructure
investments
* Outlook from presentation of Q2 report 2008
7
8. Improved flexibility
Global
product
range
Product mix
drives
profitability
Production units
Sales & Service units
8
9. Flexible production cost structure
2007
Labour
cost
Other
Sourced material
and components
(70%)
9
10. Efficiency improvement
Productivity
Vehicles per employee
– Ratio close to 7*
vehicles per 6.6
Number of vehicles
employee Production employees
5 78,300
Structure
4
– Restructuring 55,600
proceeding as 3 46,400
planned
31,800
– SEK 300 m. in
annual savings 12,800 11,800
12,000 11,300
with full effect
from 2009 1990 1995 2000 2007
* Rolling 12 month figures
10
14. The global business model
Focus on customers’ productivity
Uptime
Variable cost/
tonne-km
Premium
– R&M
price
– Finance
Fuel efficiency
Residual value
Valid for all markets and segments
14
16. One Ahead of competition and legislation
step ahead of competition and legislation
Comprehensive
enginge range
– EGR and SCR
All emission
standards
– EEV, Euro 5, Euro 4,
Euro 3
Fuel efficiency
– Driver training,
engineering,
biofuels, hybrids
16
17. The road to 150,000 vehicles
70,000 120,000
Europe
30,000 30,000
Delivery
centres
Latin
America
17
18. Rolling fleet – 1 million in 2015
Units SEK m.
1,000,000 30,000
25,000
800,000
Service revenue
20,000
600,000
15,000
400,000
10,000
200,000
5,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
18