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Scania’s earnings for the full year amounted to SEK 12,398 m. Higher vehicle and service volume was offset by a significantly stronger Swedish krona, a higher cost level and a changed market mix.
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1
Press conference Erik Ljungberg, Corporate Relations
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Year-end Report, January–December 2011 Jan Ytterberg, CFO
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FY 2011 – highlights
Strong earnings
Record high EPS of SEK 11.78 (11.38)
Proposed DPS of SEK 5.00 (5.00)
Volume trendTotal deliveries, trucks and buses
0
4,000
8,000
12,000
16,000
20,000
24,000
Q1Q2Q3Q4 Q1Q2Q3Q4 Q1Q2Q3Q4 Q1Q2Q3Q4 Q1Q2Q3Q4
4
Record high deliveries in 2011
More vehicles to Russia and Middle East – fewer to Brazil
Production cuts in November 2011 and January 2012
2007 2008 2009 20112010
Units
Service revenue
0
1,000
2,000
3,000
4,000
5,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
5
Volume increase ~10% in 2011
All-time high revenue
Negative impact from currency rates
SEK m.
2007 2008 2009 20112010
Earnings trendOperating income, Scania Group
0
2
4
6
8
10
12
14
16
18
20
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
6
SEK m.
Net sales +12% in FY 2011
EBIT margin 14.1% (16.3) FY and 12.0% (16.6) in Q4
2007 2008 2009 20112010
Percent
Operating marginOperating income
Earnings per share
7
SEK
8
Operating incomeVehicles and Services
EBIT decrease:
SEK 694 m., FY 2011
+ Volume
+ Price
- Currency
- Mix
- Cost level
EBIT decrease due to:– Currency rates– Higher cost level– Market mix
Positive effects:– Volume– Price
Cash flowVehicles and Services
-2,000
-1,000
0
1,000
2,000
3,000
4,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
9
Good cash generation in Q4
High inventory level in Brazil due to Euro 3 vehicles
Higher level of investments in 2011
2007 2008 2009 20112010
SEK m.
Net debtVehicles and Services
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
-12,000
-10,000
-8,000
-6,000
-4,000
-2,000
0
2,000
4,000
6,000
8,000
10,000
12,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
10
SEK m.
Net debt/equity ratioNet debt Net cash
SEK 10,615 m. (Net cash 7,700 at end of 2010)
Dividend paid SEK 4,000 m. in Q2
Board proposes DPS of SEK 5.00 for 2011
Conservative refinancing policy
0
2,000
4,000
6,000
8,000
10,000
11
EUR 2016 EUR 2016 SEK 2016 SEK 2017
Unutilised credit facilities of SEK 28 bn.
Financing secured for the coming years
High level of liquid assets
Credit facilities per 31 December 2011SEK m.
Volume trendCredit portfolio, Financial Services
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
1997 1999 2001 2003 2005 2007 2009 2011
12
SEK m.
Portfolio +20%*since end of 2010
Lower level of bad debt expenses
Operating income SEK 517 m. (171) in 2011
*In local currencies
13
Summary
Strong earnings
Record high EPS SEK 11.78 (11.38)
Strong balance sheet
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OutlookLeif Östling, President and CEO
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Business overview – 2011
Record high deliveries
Decelerating order bookings for trucksin H2 2011
Production rate in balance with current demand level
High demand for service in all regions
Europe Scania trucks, order bookings
17
Units Low level in Southern Europe throughout H2
Northern Europe somewhat lower in Q4
Short delivery times
20112010
18
Units
Brazil affected by Euro 5 transition
Lower order bookings in the final months
Short delivery times
Latin America Scania trucks, order bookings
20112010
EurasiaScania trucks, order bookings
19
Units
Lower momentum in Eurasia in Q4
20112010
Asia Scania trucks, order bookings
20
Units
Very low level in Middle East in Q4
20112010
Growing demand of services
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
21
2006 20082007 2009 2010 20112002 20042003 2005
Strong demand in Europe due to ageing fleet
Good demand outside Europe
Stablising Group profitability
Expanded capacity and offering
SEK m.
Adjusting to lower demand
Production was cut in two steps, each 15%
Both European and Latin American production units affected
Total of 1,900 employees affected
Deferring some investments
Restrictive in recruitment and spending
22
Well positioned
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Recent service and product launches – Euro 6 trucks– Scania Citywide– Driver support systems– Ecolution by Scania
Summary
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Adjusting to lower demand level
2012 outlook difficult to assess
Strong demand for services
Growing replacement need in Europe in 2013 and onwards
Scania well positioned
Europe - Scania truck deliveriesUnits
25
