Scania Presentation_Q2_2008_tcm10-211097
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1 Press conference Stina Thorman, Investor Relations
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Transcript of Scania Presentation_Q2_2008_tcm10-211097
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Press conferenceStina Thorman, Investor Relations
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Interim Report January-June 2008Jan Ytterberg, CFO
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First half of 2008 – highlights
Profitability at all time high– Operating margin 16.6%– Net margin 12.1%– Record returns– Good revenue growth
4
20,000
10,000
30,000
40,000
60,000
100,000SEK m.
0
70,000
50,000
1998 20071999 2000 2001 2002 2003 2004 2005 2006
15
5
20
25
35
55Percent
0
45
30
Net sales growth 15%
EBIT growth 30%
ROCE 50.3%
RevenueEBIT MarginROCE
10
80,000
Profitable growthVehicles & Services
2008*Q2
* Rolling 12 months
90,000 50
40
5
High volumesTotal deliveries, trucks and buses
4,000
8,000
16,000
24,000Units
2004Q1 Q2 Q3 Q4
2005 2006 2007 2008
0
20,000
12,000
Deliveries +5%
Delivery timesbecomingshorter
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
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High demand for servicesService revenue
1,000
2,000
4,000
5,000
0
Growing vehicle population
Expandednetwork 3,000
2004Q1 Q2 Q3 Q4
2005 2006 2007 2008Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
SEK m.
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Operating incomeVehicles & Services
Impressive EBIT growth due to
– Higher vehicle and service volume
– Prices– Product mix
EBIT increase:
+ SEK 1,715 m. in 1H
Volume
Price
Product mix
Currency
R&D
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Cash flowVehicles & Services
Note: Excluding acquisitions/divestments and Financial Services
0
1,000
500
1,500
2,000
4,500SEK m.
2,500
Working capital increased mainly due to seasonalfactors and volume growth
Capital expenditures due to capacity increases
3,000
3,500
4,000
2004Q1 Q2 Q3 Q4
2005 2006 2007 2008Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
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Volume driven growthCredit portfolio, Financial Services
10,000
5,000
15,000
20,000
30,000
45,000SEK m.
0
35,000
25,000
Portfolio +5.4%,local currencies
Competitivemarket
Operating income +12%
Well balancedportfolio
1998 20071999 2000 2001 2002 2003 2004 2005 2006 20081996 1997
40,000
10
Net income +36%
Earnings per share SEK 12.52 rolling 12 month
Return on equity 43.5% (29.2)
Building shareholder value
4
6
8
14SEK
0
10
10
5
15
20
30
35
Percent
0
25
EPS (SEK)ROE
2
50
1998 1999 20082000 2001 2002 2003 2004 2005 2006 2007
1240
45
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Conclusion
Profitable growth resulting in all time high earnings
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OutlookLeif Östling, President and CEO
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Orders in balance with deliveries
2004Q1 Q2 Q3 Q4
2005 2006 2007 2008Q2Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Orders Deliveries
Q1
10,000
5,000
30,000Units
15,000
20,000
25,000
0
15
Efficiency improvement
1990 1995 2000 2007
31,800
12,000
46,400
12,800
55,600
11,300
78,300
11,800
Number of vehicles
Production employees
3
4
5
6.6
Vehicles per employeeProductivity– Ratio close to 7*
vehicles per employee
Structure– Restructuring
proceeding as planned
– SEK 300 m. in annual savingswith full effectfrom 2009
* Rolling 12 month figures
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Improved flexibility
Production unitsSales & Service units
Global productrange
Product mix drives profitability
Relative profitability neutral to market mix
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Market outlook
Strong demand in most markets outside EU– Structural demand in CIS countries and Russia– Latin America – strong growth in Brazil– Asia – strong demand due to infrastructure
investments
Europe – softer demand due to economicuncertainty
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Financial outlook
Earnings 2008 will be higher than 2007
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