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1 SEB Enskilda Capital Goods seminar Jan Ytterberg, CFO
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Transcript of Scania%20Jan%20Ytterberg%2C%20CFO_tcm10-214730
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SEB Enskilda Capital Goods seminarJan Ytterberg, CFO
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Agenda
Scania first six months 2008
Vision for profitable growth
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First half of 2008 – highlights
Profitable growth resulting in all time high earnings– Operating margin 16.6%– Net margin 12.1%– Record returns
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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
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80,000
Profitable growthVehicles & Services
2008*Q2
* Rolling 12 months
90,000 50
40
5
Volume driven growthCredit portfolio, Financial Services
10,000
5,000
15,000
20,000
30,000
45,000SEK m.
0
35,000
25,000
1998 20071999 2000 2001 2002 2003 2004 2005 2006 20081996 1997
40,000
Portfolio +5.4%, local currencies
Competitivemarket
Operating income +12%
Well balancedportfolio
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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
7
Markets outside EU growing in importance– Europe – softer demand
due to economicuncertainty
– Structural demand in CIS countries and Russia
– Latin America – strong growth in Brazil
– Asia – strong demand due to infrastructureinvestments
Market outlook– heavy trucks*
* Outlook from presentation of Q2 report 2008
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Improved flexibility
Production unitsSales & Service units
Global productrange
Product mix drives profitability
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Flexible production cost structure
Sourced material Sourced material and componentsand components(70%)(70%)
OtherOther
LabourLabourcostcost
2007
10
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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Selling and administrative expenses
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2002 2003 2004 2005 2006 20070.0
2.0
4.0
6.0
8.0
10.0
12.0
Selling expenses Administrative expensesSelling expenses in % Administrative expenses in %
SEK m. Percent
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140,000
160,000Units
120,000
80,000
100,000
60,000
20,000
40,000
01947 1950 1953 1956 1959 1962 1965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2015
Volume development
-35%-30%
-20%
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Vision for growth
140,000
160,000Units
120,000
80,000
100,000
60,000
20,000
40,000
01947 1950 1953 1956 1959 1962 1965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2015
Target
Vision
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Valid for all markets and segments
Premiumprice
Uptime
Variable cost/tonne-km– R&M– Finance
Fuel efficiency
Residual value
The global business modelFocus on customers’ productivity
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Extended modular system
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One step ahead of competition and legislationAhead of competition and legislation
Comprehensiveenginge range– EGR and SCR
All emission standards– EEV, Euro 5, Euro 4,
Euro 3
Fuel efficiency– Driver training,
engineering, biofuels, hybrids
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EuropeEurope
70,000 120,00070,000 120,000
LatinAmerica
LatinAmerica
30,000 30,00030,000 30,000
DeliverycentresDeliverycentres
The road to 150,000 vehicles
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1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
800,000
1,000,000Units
600,000
400,000
200,000
Service revenue 20,000
30,000SEK m.
15,000
10,000
5,000
25,000
Rolling fleet – 1 million in 2015
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Conclusion
Strong profitability
Limited investments to reach 150,000
Premium brand
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