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Press conferenceErik Ljungberg, Corporate Relations
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Interim Report, January-June 2010 Jan Ytterberg, CFO
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First six months of 2010 – highlights
Record-high operating margin in Q2– Sharp increase in deliveries– Significantly higher capacity
utilisation– Positive effects from cost reduction– Currency effects
Cash flow of SEK 5,993 m. (Vehiclesand Services) in the first six months
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Volume trendTotal deliveries, trucks and buses
4,000
8,000
16,000
24,000Units
20,000
12,000
Deliveries +37% in H1
Significantlyhigher productionrate
High deliveries in Q3
0
2006Q1 Q2 Q3 Q4
2007 2008 2009 2010Q1Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2
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Service revenue
1,000
2,000
4,000
5,000
Volume increase~10% in Q2
Negative impactfrom currency
3,000
SEK m.
0
2006Q1 Q2 Q3 Q4
2007 2008 2009 2010Q1Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2
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Earnings trendOperating income, Scania Group
1,000
2,000
4,000
4,500
3,000
SEK m.
500
1,500
3,500
2,500
Net sales +23% H1 2010
EBIT margin 15.2% (1.7) H1 2010
EBIT margin 17.0% (0.1) Q2 2010
0
2006Q1 Q2 Q3 Q4
2007 2008 2009 2010Q2Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
4
8
16
18
12
Percent
2
6
14
10
0
Operating marginOperating income
Q1
7
Operating incomeVehicles and Services
EBIT increase:
SEK 5,057 m. H1 2010
+ Volume
+ Capacity
+ Cost
+ Currency
EBIT increase due to:– Volume– Capacity utilisation– Cost reduction– Currency effects
Negative impact:– Mix– Prices in Europe
- Mix
- Price
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Cash flowVehicles and Services
- 2,000
- 1,000
0
1,000
Improved earnings
Lower working capital
Low level of investments
2,000
3,000
Note: Excluding acquisitions/divestments and Financial Services
2006Q1 Q2 Q3 Q4
2007 2008 2009 2010Q2Q1 Q2 Q3 Q4 Q1 Q2 Q3
Q4
Q1 Q2 Q3 Q4
4,000SEK m.
Q1
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Net debtVehicles and Services
Net cash SEK 1,483 m. (Net debt 4,038 end of 2009)
Conservative refinancing approach
0
2,000
8,000
6,000
SEK m.
2010Q2
2008 20092001 2002 2003 2004 20052006 2007
2000
-2,000 -20
60
100
40
-40
80
Percent
Net debt/equity ratioNet debt
4,000
-4,000
-6,000 -60
20
0
10,000
10
Volume trendCredit portfolio, Financial Services
10,000
5,000
15,000
20,000
30,000
50,000
0
35,000
25,000
Portfolio -3%,local currencies
Increasedcompetition
Lower but stillhigh bad debtexpenses
Positive operating income in Q2 1998 20071999 2000 2001 2002 2003 2004 2005 2006 20091997
40,000
45,000
2008 2010
SEK m.
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Summary
Record operating margin in Q2– Sharp volume increase– Substantially higher capacity utilisation– Positive effects from cost reduction– Currency effects
All-time high in Brazil
Net cash position in Vehicles and Services due to strong cash flow
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OutlookLeif Östling, President and CEO
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Business overview
Good demand outside Europe, Brazil especially strong
Gradually higher production rate
Improved service demand
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Breakdown of order bookingsVehicles Q2 2010
Europe 38%
Latin America 33%
Asia and other29%
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Latin American truck demand
0
1,000
7,000
-1,000
3,000
2,000
4,000
Units
1998 20071999 2000 2001 2002 2003 2004 2005 2006 200919971996 2008 2010Q2
6,000
5,000
Deliveries from ScaniaOrders to Scania
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European truck demand
1998 20071999 2000 2001 2002 2003 2004 2005 2006 200919971996
4,000
2,000
6,000
8,000
12,000
20,000
0
14,000
10,000
16,000
18,000
Units
2008 2010Q2
Deliveries from ScaniaOrders to Scania
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Production ramp-upLatin American production allocatedto Brazil and Argentina
Increased capacityutilisation in Europe due to global productand productionstructure
Rehire 500 employeeson temporarycontracts
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Production ramp-upImproved efficiency
Positive impactfrom highervehicle volumeand training of employees
Time banks
Core competencemaintained
2.5
6.5
8.5
4.5
5.5
3.5
2009 2010Q1Q3 Q2 Q3 Q4 Q2
1.5
Annualised rate of vehicles per employee
Q4 Q1
2008
7.5
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Service trend
1,000
2,000
4,000
5,000Higher demand in Latin America and Asia H1
Gradually higherEuropean demandin Q2
Better utilisation in workshops
3,000
SEK m.
0
2006Q1 Q2 Q3 Q4
2007 2008 2009 2010Q1Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2
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Long term strategic cooperation
Volkswagen AG– Cooperation in purchasing and some
research and development projects since2008
MAN SE– Evaluate non-brand-related strategic areas
– Research and development for hybrid components– Cooperation in axles, gearboxes and commodities
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Outlook
During the third quarter, vehicle deliveries are expected to be close to the level from the second quarter of 2010, in spite of the summer holiday period in Europe.
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