Service revenue growth

Christian LevinExecutive Vice PresidentExecutive Vice President, Head of Commercial Operations

Commercial Operations– a global sales and services network

~1,500Dealerships/work-

17,000Employees within

15,000+Employees withinp

shops whereof 1/3 is captive

Employees within captive network

Employees within non-captive network

Scania’s 2020 objectives

Global potential 120,000 p ,Scania trucks

Ambition to increase services to 25-30% of total revenue

P t ti l f 15 000 Potential for 15,000 buses and 20,000 industrial and marine engines

Service revenue growth

I d l / hi l

SEK 17 bn.

Increased sales/vehicle Extended services Higher market share

Growing vehicle fleet

Higher vehicle quality implies decreasing revenue if fleet is unchanged

Today 2020

Drivers of demand of services

Transport companies are

Scania vehicle fleet

p pfocusing on logistics

Customer demand +55%

– better fuel efficiency and more uptime

G i hi l fl t Growing vehicle fleet

More sophisticated vehicle technologyvehicle technology

Today 2020

Success factors

Service support close to customer operations

Competitive service portfolio

Develop concepts in partnership with customers (Ecolution, Mining, Forestry)

High quality in repair and maintenanceand maintenance

Short lead times

Support close to the customer

RunNetwork of workshops

Field workshops

Mobile workshops Assistance Connected

vehicles

Run customer workshops

Connected Vehicles– potential to improve uptime

Scania Driver Training Scania Driver Training and Driver Coaching

Scania Fleet Managementg

Service planning

Repairs via ScaniaRepairs via Scania Assistance

Preventive maintenance

Strengthen services portfolio

Improve service planning and preventive pmaintenance

Repair and maintenance of superstructuresof superstructures

Scania Classics (services potential ( p2nd & 3rd owner)

Solutions for buses and coachesand coaches

Insurance

Improved efficiency and qualityScania Retail System

Same principles as

Examples from role model workshops

Time for standard main-p pScania Production System

tenance reduced from 7.5 hours to 4.25 hours

Bill bl h +5% f Shorter lead times in the delivery process

Hi h lit d

Billable hours +5% for service technicians

Higher quality and shorter lead times in repairs

Reduced lead time by 60% for vehicle delivery

Lead time in invoicing decreased from 9 to 2 days

Emerging market potential – Latin America

Extensive and SEK m.

Service revenue Latin America

competitive network in Brazil, Argentina

SEK m.

2,500

3,000

Further expansion in Chile, Peru and Colombia

1,500

2,000

Increasing demand for solutions ( )

500

1,000

(vehicle uptime) 0

*Rolling 12 monthsg

Emerging markets potential – Eurasia

Good coverage

Service revenue Eurasia

SEK m.

600

700

gin Western Russia

Further expansion

SEK m.

300

400

500in Ukraine, Kazakhstan and Eastern Russia

I t d i A i t

100

200 Introducing Assistance

0

*Rolling 12 monthsg

Summary

Customer demand and vehicle fleet are driving revenue growth SEK

17 bn Extend leading

position in services

F l

17 bn.

Focus on close to customer, applications

ffand efficiencyToday 2020