Press conference Erik Ljungberg Corporate RelationsErik Ljungberg, Corporate Relations
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Year-end Report, January–December 2010 Jan Ytterberg CFOJan Ytterberg, CFO
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2010 – highlights
R d hi h i i 2010 Record-high earnings in 2010– Sharp increase in deliveries
Significantly higher capacity– Significantly higher capacity utilisation
– Currency effects incl hedgingy g g
Record-high cash flow of SEK 11,880 m. (Vehicles and Services)11,880 m. (Vehicles and Services)
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Record-high
SEKU it80,000
70,000
SEK m.
Operating incomeDeliveries12,000
14,000Units
40,000
60,000
50,0008,000
10,000
20,000
30,000
4,000
2 000
6,000
10,000
0
2,000
01993 1995 19991997 2001 2003 20091991 20072005
4
Volume trendTotal deliveries trucks and busesTotal deliveries, trucks and buses
24,000Units
Deliveries +47% 16 000
20,000
in 2010
Significantly
16,000
12,000
g yhigher production rate
4,000
8,000
2006Q1 Q2 Q3Q4
2007 2008 2009 2010Q1Q2Q3 Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4
0
5
Service revenue
Volume increase5,000
SEK m.
Volume increase ~10%, H2 back to pre-crisis level
4,000
Improved capacity utilisation
3,000
2,000
Negative impact from currency 1,000
,
2006Q1 Q2 Q3Q4
2007 2008 2009 2010Q1Q2Q3 Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4
0
6
Earnings trendOperating income Scania GroupOperating income, Scania Group
4,500SEK m.
20Percent
Operating marginOperating income
Net sales +26% 2010
4,000
3 000
3,500 16
14
18p g gp g
EBIT margin 16.3% (4.0) 2010
2,000
3,000
2,500
8
12
10
EBIT margin 16.6% (7.8) Q4 2010 1,000
500
1,500
4
2
6
Q2 Q3 Q4 Q2Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q4
500
0Q1
2
0
2006 2007 2008 2009 2010
7
Operating incomeVehicles and ServicesVehicles and Services
+ Volume
EBIT increase due to:– Volume
BrazilEBIT increase:
SEK 9,927 m. 2010
+ Brazil
+ Capacity
+ Efficiency
C
– Brazil– Capacity utilisation– Cost efficiency
2010 + Currency– Currency effects
As of end 2010 no currency hedges
8
Cash flowVehicles and ServicesVehicles and Services
4 000SEK m.
Improved earnings 3,000
4,000
Lower working capital 1,000
2,000
Higher level of investments in Q4
2007 2008 2009 2010Q2Q1Q2Q3
Q4
Q1 Q2Q3Q4 Q1 Q3Q4
- 1,000
0
2006Q1Q2Q3 Q4 Q1Q2Q3 Q4
Q4
Note: Excluding acquisitions/divestments and Financial Services
- 2,000
,
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Note: Excluding acquisitions/divestments and Financial Services
Net debtVehicles and ServicesVehicles and Services
Net cash SEKSEK m.
100Percent
10 000 Net cash SEK 7,700 m. (Net debt 4,038
d f 2009)
8,000
6,000 60
100
80
Net debt/equity ratioNet debt10,000
end of 2009)
Conservative fi i 0
2,000
20102008 20092001 2002 2003 2004 2005
2006 20072000
404,000
20
refinancing approach
P d DPS
2008 20092001 2002 2003 2004 20052000
-2,000
-20
40
-4,000
0
Proposed DPS SEK 5.00 (1.00)
-40
-8,000 -60
-6,000
10
Volume trendCredit portfolio Financial ServicesCredit portfolio, Financial Services
50 000SEK m.
Portfolio -2%,local currencies
50,000
35 000
40,000
45,000
Lower but stillhigh bad debt expenses
30,000
35,000
25,000
expenses
Positive earnings10,000
15,000
20,000
5,000
01998 20071999 2000 2001 2002 2003 2004 2005 2006 20091997 2008 2010
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Summary
Record earnings– Sharp volume increase– Substantially higher capacity utilisation– Currency effects
Net cash position in Vehicles and Services due to record cash flow
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OutlookLeif Östling President and CEOLeif Östling, President and CEO
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Business overview
Gl b l i Global economic recovery
Quick rebound in markets outside Europe
Ramp-up of productionp p p
Stronger European service demand in Q3 and especially Q4in Q3 and especially Q4
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Order trend Trucks Q4 2010Trucks Q4 2010
30,000Units
Europe +74%
Strong recovery in 20 000
25,000
Strong recovery in Russia
Latin America 10%
20,000
15,000
Latin America -10%, Brazil stabilising
Asia +173%5,000
10,000
Asia +173%
2006Q1 Q2 Q3Q4
2007 2008 2009 2010Q1Q2Q3 Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4
0
16
Order trendBuses 2010Buses 2010
3,000Units
Europe stable 20102 000
Latin America +53%
Asia +23%
2,000
Africa & Oceania -26%
1,000
0
2006Q1 Q2 Q3Q4
2007 2008 2009 2010Q1Q2Q3 Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4
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Share of vehicle deliveries 2010(2007)(2007)
Europe 39% (61%)
Eurasia 4% (8%)39% (61%)
Latin AmericaAsia
19%Latin America 32% (16%)
19% (10%)Africa &
OceaniaOceania6% (5%)
1818
Production ramp-up
Higher daily rate Higher daily rate
Improved productivity
Short lead times
Risk of bottlenecks
Increased workforce on temporary
t tcontracts
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Service trend
Stronger European 5,000SEK m.
Stronger European demand in Q3 and especially Q4
4,000
Continued high demand in Latin America 2,000
3,000
America
Mining segment in Asia
1,000
,
Asia
2006Q1 Q2 Q3Q4
2007 2008 2009 2010Q1Q2Q3 Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4
0
20
Strong product portfolio
New V8 range, platform ready for Euro 6
Ecolution by Scania – minimises fuel consumption and thereby CO emissionsCO2 emissions
Large bus orders for alternative fuelfuel
Engine agreements with Terex (US), Doosan (Korea) and ( ), ( )Shanghai Boden (China) in 2010
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European heavy truck market
Registrations* Units
300,000
350,000
200 000
250,000
150,000
200,000
*25 of the European Union member countries (all EU countries except Greece and Malta) plus Norway and Switzerland
20072002 2003 2004 2005 2006 20092008 2010100,000
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plus Norway and Switzerland
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