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Report. Unchanged margin compared to second quarter of 2013 > PAGE 2
FIGURE IN FOCUS:
20,987Record truck orders for a second quarter.
Trend. Heavy haulageincreasing – light trucks decreasing> PAGES 6–7
Interview. Scania’s Head of Purchasing on synergies with MAN> PAGE 3
Platooning towards sustainable transportHow Scania Transport Lab halved CO2 emissions > PAGES 4–5
A MAGAZINE FOR SCANIA’S STAKEHOLDERSQUARTER 2 2014
0
4
8
12
16
20% Operating margin
-14 Q2
-12 Q2
-12 Q3
-12 Q4
-13 Q1
-13 Q2
-13 Q3
-13 Q4
-14 Q1
EN_01_omslag.indd 1 2014-07-22 11:29:27
Q2/20142 SCANIA VALUE • www.scania.com
2012 i korthet:LEVERANSERNA minskade med 21 procent till 46 879 fordon.
RÖRELSERESULTATETminskade med 36 procent till MSEK 6 135
KASSAFLÖDETuppgick till MSEK 2 176
FIRST HALF IN BRIEF:DELIVERIESrose by 1 percent to 38,391 vehicles
OPERATING MARGINwas 9.7 percent (9.4)
NET INCOMErose by 7 percent to SEK 2,973 m.
0
5,000
10,000
15,000
20,000
25,000
0
500
1,000
1,500
2,000
2,500
3,000
0
4
8
12
16
20
2014
Q2
2012
Q2
2012
Q3
2012
Q4
2013
Q1
2013
Q2
2013
Q3
2013
Q4
2012
Q2
2012
Q3
2012
Q4
2013
Q1
2013
Q2
2014
Q2
2013
Q3
2013
Q4
Trucks 62%
Other 3%Used vehicles 5%
Services 19%
Engines 1%
Buses and coaches 8%
%SEK m. SEK m.
2014
Q1
2014
Q1
Operating income, SEK m.Operating margin, percent
FIRST 6 MONTHS IN FIGURES
Order bookings and deliveries by region, Q2 (number of vehicles)
Net sales by product segment Net sales Operating income and margin
(SEK m. unless otherwise noted) 2014, 6 mo 2013, 6 mo Change in %
Net sales, Scania Group 43,917 42,139 4
Operating income, Vehicles and Services 3,763 3,669 3
Operating income, Financial Services 513 302 70
Operating income 4,276 3,971 8
Income before taxes 4,066 3,914 4
Net income for the period 2,973 2,771 7
Operating margin, % 9.7 9.4
Return on equity, % 17.3 18.0
Return on capital employed, Vehicles and Services, % 21.2 20.4
Cash fl ow, Vehicles and Services 1,313 405 224
Number of employees, 30 June 41,319 40,116
Order bookings (units, trucks and buses) 43,680 43,351 1
Deliveries (units, trucks and buses) 38,391 37,980 1
Key fi gures
EUROPE
Order bookings
9,703 -6%Deliveries
8,393 +4%
EURASIA
Order bookings
825 -60%Deliveries
1,879 -5%
LATIN AMERICA
Order bookings
4,551 -29%Deliveries
4,514 -38%
ASIA
Order bookings
5,959 +143%Deliveries
3,178 +23%
AFRICA AND OCEANIA
Order bookings
1,615 +25%Deliveries
1,583 +42%
EN_02_rapport.indd 2 2014-07-22 11:29:31
Q2/2014www.scania.com • SCANIA VALUE 3
A global approach to purchasing With her long and broad experi-ence in leading large purchasing organisations, Scania’s Head of Purchasing, Andrea Fuder, has in-troduced a more global approach to procurement operations. Posi-tive effects are now also coming from the company’s collaboration with MAN.
This spring, after the offer from Volkswagen went through, Scania became a full member of the Volkswagen Group. With a stable long-term ownership situation, Scania can now expand cooperation projects with Volkswagen and MAN in order to support its growth strategy up to 2020, among other reasons. Purchasing, for which Andrea Fuder took over responsibility in 2012, is one of the areas where collaboration has progressed furthest.
After working with quality issues and logis-tics in the Volkswagen Group, moving up to various management positions in purchas-ing was a natural step. Fuder also worked for several years as head of purchasing at Bentley Motors in Crewe, UK. “From there I moved back to Germany and Wolfsburg, serving as Head of Group Purchasing Interior at VW Group.”
Fuder’s attitude is that every new job brings new experiences. Working in Södertälje, Swe-den, she is particularly struck by Scania’s corpo-rate culture. “Scania has strong values that are present in all its operations. This strengthens the whole company and gives it very dedicated employees.
“By coming here with a different set of experiences, I quickly saw good things that we should safeguard, but also opportunities for improvements. I worked in a similar way during my years at Bentley. The results are usually good when you can take experiences from different places and bring them together. For me, this is a dynamic way of working, which means that we can refine and further improve the tools and methods in our purchasing processes.”
In recent years, Scania has increased its sales in emerging markets. Fuder has worked a lot to introduce a more global approach in Scania’s
purchasing organisation. Close partnerships between Scania and suppliers in more and more countries enable them to develop new solutions jointly. “We are a global company and must therefore also find solutions to various legal requirements. For example these may involve local content requirements in our products.”
As for material costs, Fuder is now also beginning to see positive effects from Scania’s purchasing cooperation with MAN, which is helping to improve Scania’s earnings. “We have worked hard on this and see great continued potential,” she says.
IntervIew text: conny hetting photo: göran wink
Andrea Fuder has served as Head of Group Purchasing
Interior at Volkswagen. Since 2012, she has been Scania’s overall Head of Purchasing
and is a member of the com-pany’s Executive Board.
“Our vision is to continuously be the most efficient and attractive purchasing operation in the industry.” Andrea Fuder, Head of Purchasing, Scania
EN_03_intervjun.indd 3 2014-07-22 11:29:35
Q2/20144 SCANIA VALUE • www.scania.com
FOCUS: SUSTAINABLE TRANSPORT SERVICES
Halving emissions within 5 years Cutting carbon dioxide emissions in half within five years is possible with today’s technology. Driver training, properly adapted trucks and fully loaded trailers have enabled the Scania Transport Laboratory to reduce its CO2 emissions from 70 to 35 grams per tonne-kilometre.
“I would never have thought we could
achieve so much.”Anders Gustavsson, Managing
Director, Scania Transport Laboratory.
70*
55
4538 35 35
25
2008 Scania
Transport Laboratory is established.
2009 Scania
launches its new C200 on-board computer, opening new opportunities to monitor trucks and drivers wire-lessly in real time.
2010 Testing of a
new “boat-tail” spoiler on trailers, thereby reducing aerodynamic drag.
Improved fi lling rate and perfor-mance.
2011 Testing
of trailer “sideskirts” to reduce aerodynamic drag. They improve ef-fi ciency but require exten-sive mainte-nance.
2012 Platooning
introduced.
New cruise control system that predicts road topography.
2013 A new
generation of the Scania Fleet Manage-ment system creates new opportunities to monitor trucks and driver behav-iour.
Longer vehicles.
The future
Testing on Swedish roads during 2014 of longer (32-metre) rigs with dou-ble trailers and GVW of 76 tonnes.
Some milestones in the journey towards more efficient transport services.
It looks like an ordinary trucking compa-ny – and it is, but it specialises in testing and developing the sustainable, effi cient transport services of tomorrow. At the Scania Transport Laboratory in Södertälje, Sweden, drivers gath-er for a coffee break between shifts. A fl eet man-agement system here keeps track of where the company’s 40 trucks and six buses are located, and there is a workshop equipped to service its vehicles and trailers.
* Grams of CO2 per tonne-kilometre, a meas-ure of CO2 emissions per weight of goods hauled and transport distance.
Since it was established in 2008, the Transport Lab has had a dual role. One of its tasks is to serve as an ordinary commercial haulier, trans-porting some of the material fl ows between Scania’s production units in Södertälje in Swe-den and Zwolle in the Netherlands.
“Our other task is to be at the cutting edge – constantly testing and developing new prod-ucts, services and methods that meet current and future customer needs. We receive a fi nan-
cial grant from Scania’s Research and Develop-ment department, which we have frequent con-tact with,” says Anders Gustavsson, Managing Director of Scania Transport Laboratory, which has grown from 12 employees in 2008 to some 100 today.
Great interest from the industryOver a fi ve-year period, the Transport Lab suc-cessfully improved its vehicle effi ciency in a way that has attracted worldwide interest from the transport sector and trade press. Today its CO2 emissions are 35 grams per tonne-kilometre, or half the industry average. Unlike passenger cars, where CO2 emissions are measured per vehicle,
EN_04-05_tema_minskade_utsläpp.indd 4 2014-07-22 11:29:44
Q2/2014www.scania.com • SCANIA VALUE 5
TEXT: PER-OLA KNUTAS PHOTOS: PEGGY BERGMAN
in the transport industry it is more relevant to measure payload in relation to emissions gener-ated by a transport task.
Fuel consumption at the Transport Lab now averages 27 litres per 100 kilometres, compared to 35 litres at the outset. “I never thought we could achieve so much when we started our operations,” says Gustavsson, pointing to sev-eral factors behind the company’s success:
“Properly adapted vehicles that allow us to drive at 80 km/hr with the lowest possible revs are one key factor. Another is that we make a great effort to maximise loads on each shipment. We also take full advantage of the toolbox in the Ecolution by Scania concept: driver training and follow-up of driver behaviour, preventive main-tenance and really making use of the latest techni-cal aids such as Fleet Management systems and Scania Active Prediction cruise control.”
Although the Transport Lab has halved CO2 emissions per tonne-kilometre in five years, there is potential to reduce emissions further, Gustavsson believes. “We will be increasing our use of vehicle platooning, which results in lower aerodynamic drag and lower fuel
Sustainability vital to business strategy A halving of energy consumption per
manufactured vehicle by 2020, compared to 2010; increased sales of the Ecolution by Scania concept; an updated sustainable sourcing programme; and a ranking as one of the 100 most sustainable companies in the world.
These are some of the most important events highlighted in Scania’s web-based Sustainability Report for 2013, which em-phasises the role of sustainability for the company’s long-term success. Read more at www.scania.com/
sustainability
Scania Transport Laboratory operates like any other haulier. The company has its own workshop and carefully monitors its vehicles and driver behaviour via a wire-less Fleet Manage-ment system.
consumption. We have also received permis-sion from the Swedish Transport Agency to test longer, heavier rigs in Sweden. A 32-metre rig with a gross vehicle weight of 76 tonnes will enable us to achieve even more efficient trans-port services.”
SCANIATRANSPORT COMPANIES
Transport solutions
BUYERS OF TRANSPORT
SERVICES
Understanding
LOGISTIC SOLUTIONS
Logistics services
The Transport Lab is one of Scania’s tools for developing overall solutions that involve buyers of transport services and transport companies.
EN_04-05_tema_minskade_utsläpp.indd 5 2014-07-22 11:29:53
6 SCANIA VALUE • Q2/2014 www.scania.com
The aviation sector has large airports, railways have central stations and the transport industry increasingly has reloading centres in more and more places in the world.
The industry calls this phenomenon “hub and spoke”. It is the basis of an effi cient trans-port system. Instead of the same haulier being responsible for transporting a product from
TRENDS: HEAVY HAULAGE IS INCREASING
point A to point B, goods of the same type are brought together, and a heavy rig is allowed to handle as much of the route as possible. It drives to a strategically located reloading cen-tre outside a city centre, then a light or medium truck handles the fi nal part of the journey – “the last mile”, to the door.
The strongest trend In Europe this is nothing new, but in more and more emerging markets, this is one of the strongest driving forces in the transport indus-try as the economy develops and public infra-structure improves.
“The trend towards heavier haulage and more heavy trucks at the expense of light trucks is the
Heavier and more efficient strongest trend in the entire industry,” says Carl Holmquist, Automotive Analyst at Rementum Research.
“The more developed an economy becomes, the greater the role of transport and logistics issues,” he adds. The focus shifts towards effi cien-cy, productivity and the costs of each transport job. And since heavier haulage boosts productivity and reduces overall fuel costs, there is also greater demand for heavy vehicles with powerful engines.
In Brazil, medium-duty haulage fell from 65 to 40 percent of the total between 1992 and 2012. During the same period, heavy haulage rose from 35 to 60 percent.
The same trend may be seen in mature mar-kets in Europe but is not occurring as quickly. Between 1992 and 2012, medium-duty haulage fell from 45 to 30 percent of the total in Europe. Heavy haulage rose from 60 to 70 percent.
The driving forces look somewhat different in mature markets and in emerging markets. “The rapid change in emerging markets is ini-tially driven mostly by improved infrastructure, which creates opportunities for haulage in gen-eral. In Europe, the driving force is still greater demand for effi ciency in the logistics chain. And although retailing in the electronic age is
Demand for heavy trucks is increasing while the need for medium-duty haulage is decreasing. This is a global trend but differs in speed and intensity between mature and emerging markets.
“Scania obviously benefits from the trend that more sophisticated needs require more sophisticated
transport solutions.”Carl Holmquist, analyst at Rementum Research
EN_06-07_trend_tyngre_fordon.indd 6 2014-07-22 11:30:00
www.scania.com • SCANIA VALUE 7Q2/2014
TEXT: PER-OLA KNUTAS PHOTO: SCANIA
In Sweden, several research projects connected to forestry are testing vehicle combinations with a gross weight of 74 tonnes compared to today’s permitted maximum of 60 tonnes. Finland has already increased the permitted weight of rigs to 76 tonnes. The aim is to boost the effi ciency of each transport task and thereby reduce CO2 emissions per tonne transported.
Scania Transport Laboratory has also received permission to operate 32-metre rigs (compared to the current maximum length of 25.25 metres) with a gross vehicle weight of 76 tonnes.*
* See pages 4–5.
Nordic regiontesting heavier haulage
Brazil’s truck mix fol-lows a typical curve for emerging markets: when infrastructure improves, the share of heavy trucks increases quickly at the expense of medium-duty and light trucks.
Both in mature Euro-pean markets and in emerging markets, there are increasingly strict demands for effi ciency in logistics systems. This means that heavy haulage is becoming more important.
Trend in product mix, emerging marketsTruck market in Brazil
50
60
70
80
90
100
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
20002002
20042006
2008201
0201
2
40
30
20
10
0
%
Light3.5–6 tonnes
Heavy
Medium-duty
>16 tonnes gross vehicle weight
6–16 tonnes
In Europe, the share of heavy trucks in the logistics system has increased during the past decade, while medium-duty trucks have decreased.
Trend in product mix, mature markets Truck market in Europe
50
60
70
80
90
100
40
30
20
10
01990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
%
Light3.5–6 tonnes
Heavy
Medium-duty
>16 tonnes gross vehicle weight
6–16 tonnes
becoming less and less physical, this trend will continue,” Holmquist predicts.
Haulage a means of competitionToday retailing increasingly takes place when customers order goods on the Internet and have them transported home to their door. This reduces the importance of physical stores while warehouses, logistics and transport ser-vices assume greater importance for all retailers. They compete with fast deliveries, so an effi cient logistics process is needed.
Who are the winners in this trend? Are they truck manufacturers like Scania, which special-ises in heavy and robust vehicles for customers with strict demands for uptime, effi ciency and a well-developed service network? The answer is not totally clear.
“The competition is intense. It is not certain that manufacturers like Scania can maintain their gap over Chinese and Indian manufactur-ers. But Scania obviously benefi ts from the trend that more sophisticated needs require more sophisticated transport solutions. The company has always focused on such solutions. Domestic manufacturers of light trucks in emerging mar-kets risk losing sales.”
EN_06-07_trend_tyngre_fordon.indd 7 2014-07-22 11:30:02
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IN BRIEF editor: per-ola knutas photos: scania
On 13 May, it became clear that Volkswagen’s offer for Scania of SEK 200 per share would go through.
“Volkswagen has been our main owner since 2000 and has consistently given strong sup-port to Scania’s strategies, business model and investments,” said Scania’s President and CEO Martin Lundstedt. “Following the clarification of the ownership structure, Scania and its manage-ment team welcome the opportunity to acceler-ate our cooperation projects with Volkswagen and MAN without restrictions and thereby cre-ate a successful, global commercial vehicle alli-ance with strong identities for each brand.”
Since Scania is becoming a wholly-owned subsidiary, Scania’s Series A and B shares were
delisted from the NASDAQ OMX Stockholm. The final day of trading in the shares was 5 June.
Volkswagen’s CEO Martin Winterkorn welcomed Scania to the Volkswagen family in an address to some 8,000 Scania employees in Södertälje, Sweden before the AGM. He emphasised that Scania will remain Scania and that Volkswagen stands firmly behind Scania’s employees, locations and development centres. “Volkswagen has a long tradition of integrating strong brands, carefully and based on deep respect. I am sure that we can achieve the same success with Scania as we have with other independent brands such as Audi and Porsche,” said Winterkorn.
Scania Value is published by Scaniaand targeted to Scania’s stakeholders.
[email protected]@scania.comProject [email protected] Art Director [email protected] Publishing Groupwww.appelberg.comPrinting: Trosa TryckeriCover photo: Carl-Erik Andersson
ContactScania Investor Relations SE-151 87 Södertälje, SwedenTel: +46 8 553 81 000E-mail: [email protected]
Mexico is the latest of many countries to select Scania in establishing dedicated urban bus cor-ridors, Bus Rapid Transit (BRT), to improve its public transport system.
Scania will deliver 62 buses for Mexico City’s public transport system and will also provide workshop services for the entire fleet, vehicle follow-up as well as driver training and coach-ing. Scania is the market leader for long-dis-tance coaches in Mexico with over half the total market but has not been as active to date in delivering city buses.
“We are delighted to expand our market pres-ence to also include city buses. Our strategy of providing maintenance and repairs at bus operators’ workshops is also contributing to our success in this segment,” says Scania México’s Managing Director Arnaud Dordilly.
Biodiesel for all customers With a unique V8 engine for 100 percent bio-diesel operation, Scania is now adding another environmentally low-impact alternative to its industry-leading range of Euro 6 truck engines.
Scania thus has five different biodiesel engines in its range, with an output span of 320-580 hp. Today biodiesel is probably the easiest solution from a user perspective for reducing the environmental impact of heavy trucks.
“No other manufacturer has managed to develop five biodiesel engines configured for Euro 6,” says Joel Granath, Head of Product Management at Scania Trucks. “We are unique in having a biodiesel engine to fit any customer, regardless of the application they plan to run. This is proof of how Scania’s modular design philosophy provides customers with added val-ue, even for environmental considerations.”
Atlas Copco chooses ScaniaScania has been selected by Atlas Copco to power its large portable air compressor range. This extended partnership with Atlas Copco implies an annual potential of 800 engines for Scania.
The partnership includes deliveries of Scania’s 9-, 13- and 16-litre engines, which comply with the Stage 4/Tier 4f international emission standards.
“We are proud to be selected as Atlas Copco’s partner of choice to power its compressors. I am confident and look forward to a successful market introduction,” says Robert Sobocki, Head of Scania Engines.
Scania now has five different engines for biodiesel operation in its range.
Bus system to Mexico City
Scania – a full member of the Volkswagen Group
Some 8,000 Scania employees were welcomed to the Volkswagen family on 11 June.
EN_08_notiser.indd 8 2014-07-22 11:30:07
