Scania Year-end Report 2002 · PDF fileIveco MAN Scania Freightliner Volvo Mercedes 2001 2002...

Leif ÖstlingPresident and CEO

2

Deliveries (trucks, buses) 43,669Sales SEK 46,140 m.EBIT SEK 3,843 m.EBIT margin 8.3 %

WesternEurope69%

Central andeastern Europe 7%

Latin America11%

Asia 9%

Other markets 5%

Scania products Scania products –– full year 2002full year 2002Scania productsScania productsKey figuresKey figures

Sales by product areaSales by product area

Engines 1%

Service-related products 23%

Used vehicles etc. 11%

Buses 9%

Trucks56%

Deliveries by market areaDeliveries by market area

3

Historical growthHistorical growthScania unit deliveriesScania unit deliveries

Trucks

Buses

Units

10,000

20,000

30,000

40,000

50,000

60,000

1950 1960 1970 1980 1990 2000

4

World’s largest makesWorld’s largest makesProduction of heavy trucksProduction of heavy trucks

Kenworth

DAF

International

RVI

Iveco

MAN

Scania

Freightliner

Volvo

Mercedes

2001

2002

14,15826,500

30,36928,659

23,89931,500

32,92631,692

31,45531,837

42,11041,100

43,46541,433

39,25455,600

63,81669,400

65,04970,700

5

93.494.495.496.497.498.499.4

100.4101.4102.4103.4104.4

110,000120,000130,000140,000150,000160,000170,000180,000190,000200,000210,000220,000230,000240,000250,000

1988 1990 1992 1994 1996 1998 2000 2002

Total market heavy trucksEU Sentiment Indicator, advanced one year

Index Units

Western EuropeWestern Europe

Scenariorange

6

Situation and outlookSituation and outlookWestern Europe

Better than expectedIncreased uncertainty

Central and eastern Europe

Continued strong growth +30%Strong used truck marketInvestments in service network

7

1,5001,7001,9002,1002,3002,5002,7002,9003,1003,3003,5003,7003,900

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Scania order bookings Scania order bookings -- truckstrucksWestern EuropeWestern Europe

Units

2000

20012002

8

Situation and outlookSituation and outlook

Latin AmericaLower economic growth

Argentina in default

Price increases in Brazil

Low volume

Exports to other markets

9

Situation and outlookSituation and outlook

AsiaScania volume +30%Launch of Scania trucks in JapanContinued positive volumetrend, especially in SouthKorea

Middle EastUncertainty

Jan GuranderCFO

11

Sales: SEK 46,140 m. (47,213) Operating income: SEK 3,843 m. (2,356)

Scania productsFull year 2002

Scania productsFull year 2002Full year 2002

12

Quarterly EBIT and EBIT marginQuarterly EBIT and EBIT marginScania productsScania products

0200400600800

1,0001,2001,4001,6001,8002,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q30

2

4

6

8

10

12

14

16

1998 1999 2000 2001 2002

SEK m. Percent

Q4

13

Currency effects

Improved product mix

Lower production volume

Internal deliveries

Changeover-related expenses, buses

Operating income and marginOperating income and marginEuropean operationsEuropean operations

Full year 2002 vs 2001Full year 2002 vs 2001

SEK 5,403 m. SEK 5,066 m.

Operating margin*

12.5% 11.9%

2002 2001Full year

* excluding R&D expenses and corporate costs

14

Quarterly EBIT and EBIT marginQuarterly EBIT and EBIT marginLatin American operationsLatin American operations

-500

-400

-300

-200

-100

0

100

200

Q1 Q2 Q3 Q4 Q1 Q2 Q3-30

-25

-20

-15

-10-5

0

5

10

15

2001 2002

SEK m. Percent

Q4

15

0

500

1,000

1,500

2,000

2,500

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Units

Scania truck deliveriesScania truck deliveriestoto Latin American marketsLatin American markets

1998 1999 2000 2001 2002

16

Operating incomeOperating incomeLatin American operationsLatin American operations

Full year 2002 vs 2001Full year 2002 vs 2001

SEK 59 m. SEK -581 m.

Increased prices

Improved cost situation

Intra-Group deliveries

Lower volume2002 2001

Full year

17

1,200

Cash flowCash flowbeforebefore acquisitions/divestments and excluding acquisitions/divestments and excluding

Customer FinanceCustomer Finance

-400-200

0200400600800

1,000

1,4001,600

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1999 2000 2001 2002

SEK m.

18

0

Customer FinanceCustomer FinancePortfolio developmentPortfolio development

5,000

10,000

15,000

20,000

25,000

30,000

1997 1998 1999 2000 2001 2002

SEK m.

19

0

Customer FinanceCustomer FinanceIncome developmentIncome development

50

100

150

200

250

300

350SEK m.

1997 1998 1999 2000 2001 2002

20

Customer FinanceCustomer FinancePortfolio analysisPortfolio analysis

Up to SEK 15 m.65%

SEK 15-50 m.17%

Over SEK 50 m.18%

Number of customersTotal portfolio by categories

Up to SEK 15 m.98.7%

SEK 15-50 m.1.0%

Over SEK 50 m.0.3%

21

Total operating income (EBIT) SEK 4,406 m. (2,467)EBIT for Scania products SEK 3,843 m. (2,356)EBIT margin for Scania products 8.3% (5.0)Lower vehicle deliveries (-10%)Positive currency effects Positive trend in service sales and Customer FinanceCost-cutting and adjustment programmes in both European and Latin American operations continueIncreased exports of components and vehicles from Latin America

Total operating income (EBIT) SEK 4,406 m. (2,467)EBIT for Scania products SEK 3,843 m. (2,356)EBIT margin for Scania products 8.3% (5.0)Lower vehicle deliveries (-10%)Positive currency effects Positive trend in service sales and Customer FinanceCost-cutting and adjustment programmes in both European and Latin American operations continueIncreased exports of components and vehicles from Latin America

Summing upSumming upFull year 2002Full year 2002

22

Total operating income (EBIT) SEK 1,419 m. (463)EBIT for Scania products SEK 1,418 m. (432)EBIT margin for Scania products 10.8% (3.2)Increased vehicle deliveries (2%)Increased order bookings (5%)

Total operating income (EBIT) SEK 1,419 m. (463)EBIT for Scania products SEK 1,418 m. (432)EBIT margin for Scania products 10.8% (3.2)Increased vehicle deliveries (2%)Increased order bookings (5%)

Summing up Summing up Q4 2002Q4 2002

Leif ÖstlingPresident and CEO

24

Important events, 2002Important events, 2002

Divestments of car operationsAction programmes in Europe

- Bus and coach operations- Cab manufacturing

Co-operation agreements- Hino- Yanmar

De-listing from the NYSE (implemented 15 Jan 2003)

Scania’s 1,000,000th truck100 years of truck manufacturing100 years of marine enginemanufacturing10 years at ScaniaProduction Angers

25

Going forward..Going forward..

Increased uncertainty about- Economic growth- Regulations

Ongoing programmes in- Research & Development- Production- Sales and service organisation- Administration

Continued strengthening of sales and service networkin central and eastern Europe

Increased domestic sourcing in Latin America

For Demanding PeopleFor Demanding PeopleFor Demanding People

27

CompetitionCompetitionWestern EuropeWestern Europe

Jan-Dec ’02 Jan-Dec ’01Make Market share Market shareMercedes 19.0 19.3

Volvo 14.3 14.3

MAN 13.6 15.0

Scania 13.5 13.5

RVI 13.0 12.5

DAF 12.3 11.8

Iveco 11.6 10.3

28

CompetitionCompetitionBrazilBrazil

Jan-Dec ’02 Jan-Dec ’01Make Market share Market shareVolvo 25.4 23.3

Mercedes 23.1 24.3

Scania 18.9 29.2

Volkswagen 16.0 9.0

Ford 9.3 7.6

Iveco 5.9 4.2

International 1.4 2.4

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New reporting: Business SegmentsNew reporting: Business SegmentsRecommendation RR25Recommendation RR25

Primary segments:- Vehicles and Services - Financial Services

Income StatementBalance SheetCash Flow

Reporting:

Secondary Segments:- Geographical

SalesAssetsInvestments

Reporting: