Scania Q3 2008- Interim report january-September 2008

1. Press conference
Erik Ljungberg, Corporate Relations
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2. Interim Report January-September 2008
Jan Ytterberg, CFO
2

3. First three quarters of 2008 – highlights
Profitability at all time high
– Operating margin 15.8%
– High returns
– Good revenue growth
3

4. Profitable growth
Vehicles & Services
SEK m. Percent
100,000 55
Net sales growth ROCE EBIT Margin Revenue
90,000 50
11% 45
80,000
40
EBIT growth 25% 70,000
35
60,000
30
ROCE 50.5% 50,000
25
40,000
20
30,000
15
20,000 10
10,000 5
0 0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008*
Q3
* Rolling 12 months
4

5. High volume
Total deliveries, trucks and buses
Units
24,000
Deliveries +4%
20,000
Delivery times
becoming 16,000
shorter
12,000
8,000
4,000
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2004 2005 2006 2007 2008
5

6. Service business is growing
Service revenue and rolling fleet
Units SEK m.
600,000 18,000
Capitalising on Service revenue Rolling fleet
substantial 500,000
16,000
vehicle 14,000
population 400,000
12,000
300,000 10,000
Increased
prices 200,000
8,000
4,000
100,000
2,000
0 0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008*
Q3
* Rolling 12 months
6

7. Operating income
Vehicles & Services
Strong EBIT growth
due to Volume
Price
– Higher vehicle
and service EBIT increase: Product mix
volume + SEK 2,025 m. 9 mth
– Prices
– Product mix R&D
7

8. Cash flow
Vehicles & Services
SEK m.
4,500
Increased tied-up
4,000
working capital
3,500
– Volume growth
3,000
– Higher
2,500
inventories
2,000
1,500
1,000
500
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2004 2005 2006 2007 2008
Note: Excluding acquisitions/divestments and Financial Services
8

9. Volume driven growth
Credit portfolio, Financial Services
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
9

10. 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
Q3
10

11. Conservative refinancing policy
Increased credit EIB loan
facilities
EIB loan of SEK +70%
3,000 m. SEK
24,300 m.
SEK
Credit facilities & 14,210 m.
EIB unutilised
Facilities Facilities
End 2007 Sep 2008
11

12. Building shareholder value
SEK Percent
14 50
Net income +26% ROE EPS (SEK)
45
12
Net margin 11.1% 40
10 35
Earnings per share 8
30
SEK 12.60 rolling 25
6
12 months 20
4 15
Return on equity 10
2
43.3% (31.4) 5
0 0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008*
* Rolling 12 months
12

13. Conclusion
All time high earnings
Focus on cash flow
Financial services stable
Conservative refinancing policy
13

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15. Outlook
Leif Östling, President and CEO
15

16. Market developments
Order bookings trucks 9 months
Western Europe -51%
Central and eastern Europe -34%
Latin America +29%
Asia +3%
16

17. Orders lower than production
Units
100,000
Orders Production
80,000
60,000
40,000
20,000
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2004 2005 2006 2007 2008
Rolling 12 months
17

18. Flexible production cost structure
Chassis production 2007
Labour
cost
Other
Sourced material
and components
(70%)
18

19. Flexibility – global product range
19

20. Service business is growing
Service revenue and rolling fleet
Units SEK m.
600,000 18,000
Capitalising on Service revenue Rolling fleet
substantial 500,000
16,000
vehicle 14,000
population 400,000
12,000
300,000 10,000
Increased
prices 200,000
8,000
4,000
100,000
2,000
0 0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008*
Q3
* Rolling 12 months
20

21. Service business is growing
High level of
transport activity
High capacity
utilisation in
workshops
New services
~50% of volume in
captive network
21

22. Outlook
Earnings in 2008 will be higher than 2007
Due to uncertain situation about future
business conditions, Scania provides no
forecast for 2009
Liquidity situation important factor for
transport companies
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