Scania Value Q3 2013 - shareholder magazine

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Transcript of Scania Value Q3 2013 - shareholder magazine

  • 1.A MAGAZINE FOR SCANIAS SHAREHOLDERS QUARTER 3 2013% 20Operating margin1612840-11 -11 -12 -12 -12 -12 -13 -13 -13 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3Report.Stronger SEK pulled down margin. > PAGE 2Interview. Chinas transport sector is facing major changes. > PAGE 3Finance. Analysts on Scanias Capital Markets Day. > PAGES 67Ready for extremes 14.1% FIGURE IN FOCUS:Xxxxx xxxx xxxxxxxx xx x adaptation to new markets Climatic wind tunnel speedsxxxxxx xxxxx. > SID 45 >PAGES 45EN01_cover.indd 1Market share, trucks in Europe, rst nine months of 2013.2013-10-28 14:14:34

2. FIRST 9 MONTHS IN FIGURESOrder bookings and deliveries by region, Q3 (number of vehicles) EURASIA EURASIEN Order bookings Orderingng1,838 -8% 1 756 +5%EUROPE EUROPA Order bookings OrderingngDeliveries Leveranser11,454 +81 6 329 -15%%1,932 -6% 1 661 +16%Deliveries Leveranser7,138 +15 6 215 -9%%LATIN AMERICA LATINMERIKAAFRICA AND OCEANIA AFRIKA OCH OCEANIENASIA ASIENOrder bookings OrderingngOrder bookings OrderingngOrder bookings OrderingngDeliveries LeveranserDeliveries LeveranserDeliveries Leveranser4,557 -21% 5 791 +2%2,808 +45% 1 935 -31%1,152 +10% 1 114 +3% 1,122 +21% 927 0%6,128 -19% 4 262 +44% Net sales1,924 -55% 1 782 +8% Operating income and marginNet sales by product segment*SEK m. 25,000Other 2%Operating income, SEK m.%Used vehicles 6%SEK m.Operating margin, percent203,500 3,00020,00016Services 20%2,50015,00012Trucks 63%10,0002,000 1,5008Engines 1%1,000 5,0004Buses and coaches 7%500 032QQ1313204113Q 203Q 12202Q 12201Q 12204Q 1220QQ1111 20*Refers to rst nine months of 201320302023 Q131Q13204Q 13203Q 12202Q 20Q12122041 2012QQ 1120202011Q30Key gures (SEK m. unless otherwise noted) Net sales, Scania Group Operating income, Vehicles and Services Operating income, Financial Services2013, 9 mo.2012, 9 mo.61,86457,261Change in % 85,4285,702-551143318Operating income5,9396,135-3Income before taxes5,9256,156-4Net income for the period4,2334,750-11Operating margin, %9.610.7Return on equity, %17.620.2Return on capital employed, Vehicles and Services, %21.025.2Earnings per share, SEK5.305.94-111,3622,176-37Number of employees, 30 September40 73938 580Order bookings (units, trucks and buses)65,16052,32025Deliveries (units, trucks and buses)56,22446,87920Cash ow, Vehicles and Services2 SCANIA VALUE Q3/2013EN02_rapporten.indd 2FIRST 9 MONTHS 2012 i korthet: IN BRIEF: LEVERANSERNA VEHICLE DELIVERIES minskade med 21 procent rose by 20 fordon. to till 46 879 percent 56,224 units RRELSERESULTATET OPERATING MARGIN minskade med 36 procent amounted 6 135 (10.7) till MSEK to 9.6% EARNINGS PER SHARE KASSAFLDET decreased by 11 percent uppgick till MSEK 2 176 to SEK 5.30www.scania.com2013-10-28 14:14:14 3. INTERVIEWTEXT: CONNY HETTING PHOTO: DAN BOMANThe advantages of having such a strong partner as Scania will thus become more evident every day. Mats Harborn, Executive Director, Scania China Strategic CentreHow does Scanias position in China look today?We have ten successful years behind us during which we have built up a strong position among the more advanced Western transport companies in the country, based on organic growth. Scanias business model in the heavy truck segment works well in the Chinese market and we dont need to change our concept since the focus is increasingly shifting from purchase price to vehicle uptime and fuel efciency. This is where we differ from other Western vehicle manufacturers that instead concentrate on locally-adapted vehicles produced in collaboration with Chinese manufacturers. Scania conducts a very active dialogue with customers and decision-makers in China in order to modernise the countrys transport and logistics industry. What kind of feedback have you received?A milestone for Scania in China The newly constructed dealership facility in Guangzhou will play an important part in boosting Scanias presence in China. Mats Harborn, Executive Director of the Scania China Strategic Centre, now sees great opportunities as the countrys transport industry is modernised and consolidated. Scania China has grown rapidly in recent years. Its two large ofces in Beijing and Shanghai have now been supplemented by the new facility in Guangzhou, which is also the rst vehicle dealership to be wholly-owned by a Western manufacturer.www.scania.comEN03_intervju.indd 3For Scania China, this is a milestone and represents a fantastic opportunity to get even closer to our customers while gaining deeper knowledge about how the Chinese transport market operates, says Harborn. How does the companys own dealership in Guangzhou t into Scanias plans for China?We will use it to develop and help our noncaptive dealerships all over China to work according to Scania standards. Meanwhile, the facility will also serve as a home for Scania China. It houses a Pre-Delivery Centre where nal adaptation of vehicles is carried out for each customer as well as a training centre, which aims to supply Scanias service network in China with professional service technicians all aimed at supporting Scanias continued growth in China.Our strategy is gaining respect among the Chinese authorities. They are fully aware that high transport and logistics costs point to an inefcient transport system, which is hurting the growth potential of the Chinese economy. In China, transport and logistics costs total about 18 percent of overall GDP. Reducing this gure by one percentage point would save USD 73 billion. Pressure for a more efcient logistics system is also coming from multinational companies that have established production in China. They have higher logistics demands when it comes to uptime, fuel efciency and environmental impact. How can Scania benet from improving the efciency of Chinas transport services?In general cargo, there are now 800,000 transport companies, with an average of 1.7 trucks each. So the market is very fragmented and characterised by limited knowledge about transport and logistics. Companies often have poor protability. We can thus expect substantial consolidation; some analysts are talking about a reduction to 80,000 transport companies. In order to survive, you have to be better than the others and have higher protability. The advantages of having such a strong partner as Scania will thus become more evident every day.Q3/2013 SCANIA VALUE 32013-10-28 09:27:47 4. FOCUS: INNOVATIONWe can test again and again under exactly the same conditions until we have the answers we need. Lars Hult, Project Manager for Scanias climatic wind tunnelFrom Siberian ice to Saharan heat Here is Scanias latest investment in innovation. Vehicles are tested in the new climatic wind tunnel to ensure they can cope with extreme weather conditions in future markets. An arctic storm is raging on top of The Mountain, as the Scania Technical Centre in Sdertlje, Sweden is familiarly known. But sub-zero temperatures (-35 degrees Celsius) can swiftly shift into a hot desert storm. All possible climatic and weather conditions can be simulated in Scanias climatic wind tunnel. After years of intensive engineering work, the SEK 400 million investment is now ready to challenge each test vehicle with extreme weather conditions. Now that Scania is planning for growth in markets such as China, India, Indonesia and Africa, the climatic wind tunnel is an important tool for developing vehicles and services adapted for special customer needs and local conditions.4 SCANIA VALUE Q3/2013EN04-5_tema.indd 4This is the rst climatic wind tunnel in Europe adapted for full-size trucks and buses and probably the only one in the world, says Project Manager Lars Hult. This offers several advantages: Winter tests can be carried out in the middle of summer without needing to transport prototypes to a location with the right climate. The company also avoids having to rely on unpredictable natural weather conditions.Shorter lead times The facility will play an important part in optimising future vehicles when it comes to fuel efciency, improved uptime as well as lower noise and emissions. These parameters can be measured and analysed in widely differing climatic conditions. Comprehensive tests will mean even higher quality. Lead times for development of new products can also be shortened. Repeatability is a great benet, says Hult. We can test again and again under exactly the same conditions until we have the answers we need. This isnt possible in reality.Another advantage is that the company can conduct vehicle tests which focus on various types of applications. It is important for Scania to test the performance not only of the chassis but also of different superstructures, such as tipper trucks for construction and mining operations, concrete mixers and timber trucks. Fully-built buses are another area where testing possibilities were previously limited to eld tests. Each test run in the tunnel takes at least a day and up to a week to complete. Next to the test cell is a large hall where the vehicle is prepared before being driven in. Once inside the test cell, it is parked on rollers one for each set of wheels, enabling simulation of speeds of up 100 km/h, the maximum for many trucks and buses. At the front end of the cell is a huge air nozzle, with a surface area of 13 square metres, from which air is forced over the vehicle. Snow or rain is also pumped through the nozzle when required.Developed in-house The software used to communicate with the vehicle in the tunnel was developed in-house,www.scania.com2013-10-28 09:27:30 5. TEXT: HANNAH KIRSEBOM , PER - OLA KNUTAS , PETER MATHSSON PHOTOS: DAN BOMAN, PEGGY BERGMAN, KJELL OLAUSSONThe new climatic wind tunnel offers the possibility of testing the vehicles of the future. The comprehensive tests will mean even higher quality and shorter lead times.Looking towards 2030 Scanias Technology Road Map (TRM) describes the knowledge that the company will need over the next 20 years in order to ensure that the necessary competencies are in plac