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Scania's earnings for the full year 2012 amounted to SEK 8,300 m. Lower vehicle volume, lower capacity utilisation and a higher level of costs pulled down earnings. Order bookings for trucks rose during the fourth quarter of 2012.
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Year-end Report, January–December 2012 Erik Ljungberg Corporate RelationsErik Ljungberg, Corporate Relations
1
OutlookMartin Lundstedt President and CEOMartin Lundstedt, President and CEO
2
Business overview – full year 2012
European and Middle Eastern vehicle European and Middle Eastern vehicle demand at a low level
Exceptionally strong order bookings Exceptionally strong order bookingsin Brazil in Q4
S i t bl Service revenue stable
Focus on adjusting cost level
3
Europe Scania trucks order bookingsScania trucks, order bookings
Relatively stable Units10,000y
order rates in 2011 and 2012
7,000
8,000
9,000
4 000
5,000
6,000
2,000
3,000
4,000
2011 2011 2011 20122011 2012 2012
0
1,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42012
4
Europe – Scania truck deliveries
50,000 Low economic Units
35,000
40,000
45,000activity and hesitant customers
20 000
25,000
30,000 Low level of demand in recent years
10,000
15,000
20,000years
Replacement need
0
5,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Transition to Euro 6 end of 2013
5
Latin AmericaScania trucks order bookings
Very strong order
Scania trucks, order bookings
Units8,000y g
bookings in Q4 in Brazil 6,000
7,000
Extensive incentives impacted positively 4,000
5,000
Strong position in Euro 5
1 000
2,000
3,000
0
1,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42011 2011 2011 20122011 2012 2012 2012
6
Latin America – Scania truck deliveries
High deliveries in 20,000Units
grecent years
Increased price 14,000
16,000
18,000
ppressure during 2012
8 000
10,000
12,000
4,000
6,000
8,000
0
2,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
7
Eurasia – Scania truck deliveries
High level of 9,000Units
gdemand in Russia
6 000
7,000
8,000
4,000
5,000
6,000
1 000
2,000
3,000
0
1,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
8
AsiaScania trucks order bookingsScania trucks, order bookings
Middle East at very Units5,000y
low level in Q4
Stable demand in 3,500
4,000
4,500
markets outside Middle East
2 000
2,500
3,000
1,000
1,500
2,000
0
500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42011 2011 2011 20122011 2012 2012 2012
9
Buses and coachesScania buses and coaches order bookingsScania buses and coaches, order bookings
Lower demand in 2,500Units
Europe and Asia
Reduced 2,000
production of buses in Poland
1 000
1,500
500
1,000
0Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2011 2011 2011 20122011 2012 2012 2012
10
EnginesScania engines order bookings
2,500
Scania engines, order bookings
Impacted by lowUnits
2,000
p yeconomic activity
Some improvement
1 000
1,500
pin Q4 from lowlevel in Q3
500
1,000
0Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2011 2011 2011 20122011 2012 2012 2012
11
Service revenue
5,000 Service revenue SEK m.
4,000
stable
Europe decreasing
2 000
3,000
p gslightly – southern region weak
1,000
2,000
Increased volume in several regions outside Europe
0Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
outside Europe
2008 2009 2010 20122011
12
Adjusting cost level
Daily production rate in Europe reduced y p pby about 15 percent in beginning of Q1 2013 compared to end of 2012
Addressing the structure of service network in certain European markets
Restrictive with hiring and general spendingp g
13
Prioritise investments
Core development pprojects
Sales and Services capacity in emerging markets
Metrolink – new coach range for India
14
Summary
Low level of vehicle demand in Europe pand the Middle East
Lower production rate in Europe early Lower production rate in Europe early 2013
Exceptionally strong orders in Brazil Q4 Exceptionally strong orders in Brazil Q4
Stable service revenue
Adjusting cost level and prioritising investments
15
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Year-end, January–December 2012Jan Ytterberg CFOJan Ytterberg, CFO
17
Full year 2012 – highlights
Lower vehicle deliveries
High cost and investment level
Service revenue stable
Record earnings in Financial Record earnings in Financial Services
18
Volume trendTotal deliveries trucks and buses
24,000
Total deliveries, trucks and buses
Europe and the Units
16 000
20,000
pMiddle East at low levels
12,000
16,000 High volume in
Latin America in Q4
4,000
8,000 Low utilisation of production capacity
0Q1Q2Q3Q4 Q1Q2Q3Q4 Q1Q2Q3Q4 Q1Q2Q3Q4 Q1Q2Q3Q4
2008 2009 2010 20122011
19
Service revenue
5,000 Europe decreasing SEK m.
4,000
p gslightly – southern region weak
2 000
3,000 Increased volume in several regions outside Europe
1,000
2,000outside Europe
Negative impact from currency
0Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
from currency
2008 2009 2010 20122011
20
Earnings trendOperating income Scania GroupOperating income, Scania Group
204,500SEK m.
Net sales -9% Percent
O ti iO ti i
14
16
18
3 000
3,500
4,000FY 2012 and -2% in Q4
Operating marginOperating income
8
10
12
2,000
2,500
3,000 EBIT margin 10.4%
(14.1) FY 2012, 9.7% (12 0) in Q4
4
6
8
500
1,000
1,500(12.0) in Q4
Earnings per share SEK 8 31 (11 78)
0
2
0
500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
SEK 8.31 (11.78)
2008 2009 2010 20122011
21
Operating incomeVehicles and ServicesVehicles and Services
EBIT decrease due to:– Deliveries
EBIT decrease:
SEK 4,187 m., FY 2012
- Deliveries
- Capacity
Costs
– Capacity utilisation– Cost level
- Costs
- Prices– Prices
22
Cash flowVehicles and ServicesVehicles and Services
4,000 Inventory reduction SEK m.
2 000
3,000
yin Q4
Cash flow
1,000
2,000
SEK 849 m. in Q4
High level of
-1,000
0Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
ginvestment
2008 2009 2010 20122011
-2,000
23
Net debtVehicles and ServicesVehicles and Services
100%12,000Net debt/equity ratioNet debt Net cash
SEK m.
40%
60%
80%
6,000
8,000
10,000Net debt/equity ratioNet debt
SEK 9,361 m. (Net cash SEK 10 615 m
0%
20%
40%
2 000
0
2,000
4,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
10,615 m.at end of 2011)
Board proposes
-60%
-40%
-20%
8 000
-6,000
-4,000
-2,000 Board proposesdividend per shareof SEK 4.75 (5.00)
-100%
-80%
-12,000
-10,000
-8,000
24
Volume trendCredit portfolio Financial ServicesCredit portfolio, Financial Services
50,000
SEK m. Portfolio +11%*
35 000
40,000
45,000
,
since end of 2011
Operating income at
20 000
25,000
30,000
35,000p grecord level, SEK 606 m. (517) in 2012
10,000
15,000
20,000
0
5,000
1998 2000 2002 2004 2006 2008 2010 2012
*In local currencies
25
In local currencies
Summary
Lower vehicle deliveries
Stable service revenue
Record earnings in Financial Services
Adjusting cost level Adjusting cost level
Board proposes DPS of SEK 4.75 (5 00)(5.00)
26
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