Scania Interim Report January–March 2014

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Interim Report, January–March 2014 Erik Ljungberg, Corporate Relations

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Business overview Martin Lundstedt, President and CEO

First three months of 2014

European market recovering compared to Q4 2013

Strong position in Europe and higher market share

Latin America in line with previous quarters

Growth in services

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Europe Scania trucks, order bookings

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Positive trend in underlying demand

Strong position and higher market share

Good demand for used trucks

Replacement need

European heavy truck market

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Truck registrations > 16 tonnes

Units

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50,000

100,000

150,000

200,000

250,000

300,000

350,000

1973 1978 1983 1988 1993 1998 2003 2008 2013

Green truck 2014 award

The Scania G 410 was given an award by respected German transport trade magazines

The truck with the lowest environmental impact in the heavy tractor class

Euro 6 engine with fuel consumption averaging a record-low 23.29 litres /100 km

Latin America Scania trucks, order bookings

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Order bookings in line with previous quarters

Subsidies in Brazil will continue

Brazilian heavy truck market

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0

20,000

40,000

60,000

80,000

100,000

120,000

1990 1993 1996 1999 2002 2005 2008 2011

Units

Eurasia Scania trucks, order bookings

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Higher level of demand in Russia in Q1

Uncertain short-term outlook for the region

Asia Scania trucks, order bookings

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Improved order bookings in Q1

Higher level in the Middle East and Hong Kong

Buses and coaches Scania buses and coaches, order bookings

Q1 2013 impacted by large orders

Breakthrough for BRT-systems in Western Africa

Efficiency raising programme in city bus operations

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Engines Scania engines, order bookings

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Higher order bookings in Asia, Eurasia, Africa and Oceania

Partnership with Atlas Copco

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Ambition to increase market share

Increased presence in East Africa

> 60,000 connected Scania vehicles strengthen leading position

Growing service revenue

Summary

Positive underlying demand trend in the European market

Strong position in Europe and higher market share

Latin America in line with previous quarters

Growth in the service business

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Interim Report, January–March 2014 Jan Ytterberg, CFO

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First three months of 2014 – highlights

Higher vehicle and service volume

Improved operating margin

Strong earnings in Financial Services

High level of investments

Volume trend Total deliveries, trucks and buses

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Growth in all regions except Latin America compared to Q1 2013

Higher production volume compared to Q1 2013

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Increased revenue in local currencies

Revenue rose to SEK 4,536 m. in Q1

Service revenue

Earnings trend Operating income, Scania Group

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Net sales up 9% in Q1 2014

EBIT margin 10.7% (10.0) in Q1

Earnings per share SEK 1.95 (1.75) in Q1 2014

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Operating income Vehicles and Services

EBIT increase:

SEK 213 m., 3 months

+ Volume

+ Capacity

utilisation

+ Prices

– Currency

– Mix

– Cost

-xxxx

EBIT increase due to: – Volume – Capacity utilisation – Prices

Negative effects: – Currency – Market mix – Cost level

Cash flow Vehicles and Services

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Cash flow SEK 730 m. in Q1

High level of investments in capacity, new products

Volume trend Credit portfolio, Financial Services

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Portfolio stable since the end of 2013 in local currencies

Historically low levels of overdue receivables

Operating income SEK 266 m. (155)

Higher vehicle and service volume

Negative impact from weaker emerging market currencies

High level of investments

Improved operating margin

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Summary

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