Financial outlookFinancial outlook 2020

Jan YtterbergJan YtterbergExecutive Vice President, Chief Financial Officer

Scania’s 2020 objectives

Global potential p120,000 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

Leverage on investments

Vehicles per employee Economies of scale

Efficiency through continuous 14

16

improvements

Structural changes 8

10

12

2

4

6

2013* refers to Q2 annualised

0

2

1990 1995 2000 2005 2010 2013* Vision

2013 refers to Q2 annualised

Strengthen product portfolio

More customer driven 4,000

5,000

R&D expensesSEK m.

projects

Euro 6 1,000

2,000

3,000

Capitalisation

Amortisation

02004 2005 2006 2007 2008 2009 2010 2011 2012

Amortisation

Plan for higher production capacity

Current investment program of SEK ~1.5 bn yields annual capacity of y p y120,000 vehicles by 2015

Next step 135,000 vehicles capacity to meet potential of 120,000 trucks and 15,000 buses

Flexible product cost structureChassis production

Flexible manning gup to 30% in Sweden

Value-added

Labourcost

Common global product and production Sourced material

Other

system

High degree of Variable cost

and components(70%)

variable cost

Capture potential in servicesInvestment level SEK 1 bn annually

Capacity investment p yin new and current captive dealerships

Collaboration with non-captive dealerships

M bil l ti Mobile solutions

Flexibility – Capital efficiency

Outsourcing strategy

Strategic

Base volume in-house

Non-strategic

In-houseonly if competitive

Core

100% in-housey p

Combining Vehicles and ServicesApplication strategy

Packages incl. insurancePackages incl. insurance

Lower cost for the

Fast accident

Volume to Scania

Insurance from 3rd party – administered

customer repair workshops by Scania

Financial ServicesStrategic business

More volume in Financial Services portfolioSEK m.More volume in emerging markets

High penetration in 35 000

40,000

45,00050,000

p

High penetration in mature markets

Improve and maintain 20,000

25,00030,000

35,000

Improve and maintain Scania’s market share

0

5,000

10,00015,000

Scania’s philosophy

Core values

Focus on principlesd th d Principlesand methods

delivering goodfinancial performance

Principles

Methods

Fi i lFinancialperformance

ProfitabilityReturn on Capital Employed

% Vehicles and Services

40

50

30

10

20

02003 2004 2005 2006 2007 2008 2009 2010 2011 2012

ProfitabilityFinancial Services (ROE)

15%

20%

10%

0%

5%

2003 2004 2005 2006 2007 2008 2009 2010 2011 20122009

-5%

Shareholder value

Share price, SEK

300

250

200

Scania B share(Total return)

300

200

150

100

Scania B share

SIX Return Index100

50

0

SIX Return Index

2000 2013

Shareholder valueDividend as % of net income

80

%Average

~50%

60

70~50%

30

40

50

0

10

20

02003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Shareholder valueDividend and redemption per share

14

SEK Ordinary dividendSpecial dividend

A total of SEK 41.8 bn. distributed to share-holders last 10 years

10

12

14

holders last 10 years

6

8

2

4

0