1

Year-end ReportYear-end ReportJanuary –December 2004January –December 2004

Leif ÖstlingLeif ÖstlingPresident and CEOPresident and CEO

2

Key figures Full year 2004

Order bookings 59,981 vehicles +23%

Deliveries 56,082 vehicles +12%

Revenue SEK 56,788 m. +12%

Operating margin 11.2% (10.1%)

Net income SEK 4,077 m. +34%

Earnings per share SEK 20.39 (15.17)

Proposed dividend SEK 15.00 (6.00)

3

Total order bookings Trucks and bus chassis

2001 2002 2003 2004

Units

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

4

Scania in brief Full year 2004

Used vehiclesetc. 12%

Buses 9%

Trucks 58%

Revenue by product areaDeliveries by market

Africa, Asia and Oceania 16%

Central and easternEurope 10%

South America 16%

Western Europe 58%

Engines 1%

Service-related products 20%

5

Revenue by marketJanuary-December

Amounts in SEK m. 2004 2003 Change in %

Great Britain 7,744 7,255 7

Germany 3,816 3,449 11

Brazil 3,815 2,537 50

France 3,545 3,226 10

Sweden 3,499 3,349 4

Italy 3,276 2,979 10

Spain 3,205 3,017 6

The Netherlands 2,448 2,047 20

Norway 2,220 1,957 13

Denmark 1,641 1,211 36

6

Market developmentsEurope - trucks

Increased demand in many markets, due to

Western Europe Central and eastern Europe

Continued good growth

Increased order bookings and deliveries especially in Poland, Czech Republic and Russia

- Replacement need- Continued exports of

used vehicles to central and eastern Europe

Largest increases in the Nordic markets, Germany and Italy

European economic development?

7

Market developments Other markets - trucks

South America Growing total market

Scania market leader in Brazil

Africa, Asia and Oceania

Continued growth in most markets

Increased order bookings especially in Taiwan, United Arab Emirates, Malaysia and Turkey

8

Deliveries reached highest level in Scania history

Order bookings rose by 34%

Buses and coaches

Industrial and Marine engines

All time high in volumes

Order bookings rose by 59%

9

Year-end ReportYear-end ReportJanuary – December 2004January – December 2004

Jan GuranderJan GuranderGroup Vice President and CFOGroup Vice President and CFO

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Key figuresFull year 2004

Vehicle deliveries 56,082 units +12%

Revenue SEK 56,788 m. +12%

Operating income SEK 6,337 m. +24%

Operating margin 11.2% (10.1%)

Net income SEK 4,077 m. +34%

Return on equity 20.8% (17.4%)

Return on capital employed 28.1% (22.0%)

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Vehicle revenueSEK m.

2001 2002 2003 2004

0

2,000

4,000

6,000

8,000

10,000

12,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

12

Service revenue

SEK m.

2001 2002 2003 2004

0

500

1,000

1,500

2,000

2,500

3,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

13

Operating incomeScania Group

2001 2002 2003 2004

SEK m. Operating margin, %

Note: Excluding divested car operations

0

500

1,000

1,500

2,000

2,500

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q40

2

4

6

8

10

12

14

16

14

Operating incomeVehicles and Service

SEK 5,887 m.

SEK 4,759 m.

Full year 2004

Full year 2003

Higher volume

Capacity utilisation

Service business

R&D expenditures

Currency effect

15

Operating incomeCustomer Finance

SEK 450 m.

SEK 366 m.

Full year 2004

Full year 2003

Interest margin

Lower credit losses

Operating expenses

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Size of portfolioCustomer Finance

SEK m.

0

5,000

10,000

15,000

20,000

25,000

30,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

0

100

200

300

400

500

Operating incomeSEK m.

17

Cash flowVehicles and Service

2001 2002 2003 2004

SEK m.

Note: Excluding acquisitions/divestments and Customer Finance

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

18

Net debtVehicles and Service

Note: Excluding Customer Finance

SEK m.

2001 2002 2003 2004

0

2,000

4,000

6,000

8,000

10,000

Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4

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Scania IFRS transitionIncome effect 2004

Amounts in SEK m.

Goodwill amortisation 170

Tangible fixed asset depreciation 30

Deferred tax -10

Net income effect 190

20

Scania IFRS transitionBalance sheet effect

Amounts in SEK m.      

01 Jan 2004Gross effect

Tax effect

Equity effect

Tangible fixed assets 280 -95 185

31 Dec 2004      

Tangible fixed assets 310 -105 205

Intangible fixed assets 170 - 170

480 -105 375

01 Jan 2005      

Financial instruments 35 -10 25

21

Conclusions

Scania had a successful year in 2004

Truck deliveries were high

Sales of buses as well as industrial and marine engines reached record levels

Service revenues showed continued good growth

Customer finance showed good development

Changeover without disruptions

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