Scania Interim Report January - March 2012 ... - PrecisionIR

scania.com

Scania Interim Report January - March 2012 ... - PrecisionIR

Press conference

Erik Ljungberg, Corporate Relations

1


Interim Report, JanuaryMarch 2012

Jan Ytterberg, CFO

2


First three months of 2012 – highlights

• Demand stabilising

• Earnings impacted by lower

deliveries and lower capacity

utilisation

• High service revenue

• Good cash flow

3


Volume trend

Total deliveries, trucks and buses

• Lower deliveries in

Europe and the

Middle East

• Brazil supported by

about 2,000 Euro 3-

vehicles

• Production adjusted

to demand

Units

24,000

20,000

16,000

12,000

8,000

4,000

0

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

2008 2009 2010 2011 2012

4


Service revenue

SEK m.

5,000

• Stable high level in

Europe despite

weakness in south

• Growing volume

outside Europe

• Revenue increase

5% in Q1

4,000

3,000

2,000

1,000

0

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

2008 2009 2010 2011 2012

5


Earnings trend

Operating income, Scania Group

SEK m.

Percent

• Net sales -3%

in Q1 2012

• EBIT margin 11.5%

(16.1) 1) in Q1

4,500

4,000

3,500

3,000

2,500

2,000

1,500

Operating income

Operating margin

20

18

16

14

12

10

8

6

1,000

4

500

2

0

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

2008 2009 2010 2011 2012

0

6


Operating income

Vehicles and Services

• EBIT decrease due to:

– Deliveries

– Capacity utilisation

– Future projects

• Positive effects:

– Market mix

EBIT decrease:

SEK 1,040 m.,

Q1 2012

+ Market mix

- Deliveries

- Capacity

- Projects

7


Cash flow

Vehicles and Services

• Good cash

generation in Q1

SEK m.

4,000

3,000

• Positive impact

from working

capital

• Tax payment in

Brazil in Q1

2,000

1,000

0

-1,000

-2,000

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

2008 2009 2010 2011 2012

8


Net debt

Vehicles and Services

• Net cash

SEK 12,039 m.

(Net cash SEK

10,615 m.

at end of 2011)

• Board proposes

DPS of SEK 5.00

for 2011

SEK m.

12,000

10,000

8,000

6,000

4,000

2,000

0

-2,000

-4,000

-6,000

-8,000

-10,000

Net debt Net debt/equity ratio

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

100%

80%

60%

40%

20%

0%

-20%

-40%

-60%

-80%

-12,000

-100%

9


Volume trend

Credit portfolio, Financial Services

SEK m.

50,000

• Portfolio 2%*

since end of 2011

• Operating income

SEK 131 m. (107) in

Q1 2012

45,000

40,000

35,000

30,000

25,000

20,000000

15,000

10,000

5,000

0

1998 2000 2002 2004 2006 2008 2010 2012

*In local currencies

10


Summary

• Demand stabilising

• Earnings impacted by lower

deliveries and lower capacity

utilisation

• Good cash generation

11


Outlook

Leif Östling, President and CEO

13


Business overview – Q1 2012

• Order bookings in line with

end of 2011

• Lower deliveries

• Production rate in balance

with current level of demand

• High demand for service in

all regions

14


Europe

Scania trucks, order bookings

• Same level as end

of 2011

• Low demand in

southern region

Units

10 000

9 000

8 000

7 000

6 000

5 000

4 000

• Short delivery

3 000

times 2 000

1 000

0

Q1 Q2 Q3 Q4 Q1

2011 2011 2011 2011 2012

15


Latin America

Scania trucks, order bookings

Units

5 000

4 500

• Lower order

4 000

bookings in Q1

3 500

3 000

• From Q2 onward

2 500

only Euro 5

2 000

deliveries in Brazil 1 500

1 000

500

0

Q1 Q2 Q3 Q4 Q1

2011 2011 2011 2011 2012

16


Eurasia

Scania trucks, order bookings

Units

3 000

2 500

• Good level of

demand

2 000

• Increased order

bookings in Russia

and Ukraine

1 500

1 000

500

0

Q1 Q2 Q3 Q4 Q1

2011 2011 2011 2011 2012

17


Asia

Scania trucks, order bookings

Units

5 000

• Still low level in the

Middle East in Q1

and uncertain

outlook

• Stable trend

elsewhere in Asia

4 500

4 000

3 500

3 000

2 500

2 000

1 500

1 000

500

0

Q1 Q2 Q3 Q4 Q1

2011 2011 2011 2011 2012

18


China

• Increasing interest in Scania´s

products and services

• Large order to Zoomlion

• Extended cooperation with Doosan,

which is well positioned in China

19


India

• Industrial facility near Bangalore

• Final assembly of trucks and buses

• Production to start in 2013

20


Growing demand for services

• High demand in

Europe due to

ageing fleet

SEK m.

20,000

18,000

16,000

• Growing revenue

outside Europe

• Stabilising Group

profitability

• Expanded capacity

and offering

14,000

12,000

10,000

8000 8,000

6,000

4,000

2000 2,000

0

2003 2004 2005 2006

Q1

2007 2008 2009 2010 2011 2012

2012 Q1 refers e to rolling 12 months

21


Summary

• Order bookings

stabilising

• Strong demand

for services

• Growing

replacement need

in Europe

• Euro 5 in Brazil

from Q2

Units

50 000

45 000

40 000

35 000

30 000

25 000

20 000

15 000

10 000

5 000

0

Europe – Scania truck deliveries

Q1

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2012 Q1 refers to rolling 12 months

22