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A MAGAZINE FOR SCANIA'S SHAREHOLDERS
QUARTER 3 2008
%
20
Operating margin
17
14
11
8
-06 -06 -07 -07 -07 -07 -08 -08 -08
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Report. Higher
earnings,
lower order
bookings.
> PAGE 2
Interview.
CFO Jan Ytterberg
on Scania’s increased
flexibility.
> PAGE 3
Stock market.
Fuel economy a hot
topic at the IAA
commercial vehicle
show. > PAGE 6–7
Reaching new markets
Global Scania well-prepared for economic slowdown > PAGES 4–5
FIGURES IN FOCUS:
8%
Growth of Scania’s
service revenue in the
first nine months.

FIRST nine months IN FIGURES
Order bookings and deliveries by region, 9 months (number of vehicles)
western europe
Order bookings
19,153 -49%
Deliveries
27,540 +4%
central and
eastern europe
Order bookings
8,413 -33%
Deliveries
10,899 -2%
LATIN AMERICA
Order bookings
11,378 +19%
Deliveries
9,097 +5%
other markets
Order bookings
3,238 +43%
Deliveries
2,219 -11%
ASIA
Order bookings
6,429 +6%
Deliveries
6,063 +15%
Net sales
Net sales by product segment, 9 m
Operating income and margin
SEK m.
25,000
20,000
Used vehicles 5.1%
Other 4.2%
%
20
16
Operating income, SEK m.
Operating margin, percent
SEK m.
5,000
4,000
15,000
Services 18.2%
12
3,000
10,000
5,000
Key figures
0
2006 Q3
2006 Q4
2007 Q1
2007 Q2
2007 Q3
2007 Q4
2008 Q1
2008 Q2
2008 Q3
Engines 1.3%
Buses and
coaches 8.7%
Trucks 62.5%
(SEK unless otherwise noted) 2008, 9 m 2007, 9 m Change in, %
Net sales, Scania Group 66,319 59,947 11
Operating income, Vehicles and Services 10,089 8,064 25
Operating income, Financial Services 366 378 -3
Operating income 10,455 8,442 24
Net income before taxes 10,270 8,265 24
Net income for the period 7,369 5,847 26
Operating margin, percent 15.8 14.1 -
Net margin, percent 11.1 9.8 -
Return on equity, percent 43.3 31.4 -
Return on capital employed,
Vehicles and Services, percent
50.5 37.3
-
Earnings per share, SEK 9.21 7.31 -
Cash flow, Vehicles and Services 3,638 4,240 -
Number of employees, 30 september 36,226 34,650 -
Order bookings (Units, trucks and bus chassis) 48,611 68,086 -29
Deliveries (Units, trucks and bus chassis) 55,818 53,873 4
8
4
0
2006 Q3
2006 Q4
2007 Q1
2007 Q2
2007 Q3
2007 Q4
2008 Q1
2008 Q2
2008 Q3
2,000
1,000
Q3 IN SHORT:
Operating margin
rose to 15.8% in the first
nine months and to 13.8%
in the third quarter.
Deliveries increased by
4% to 55,818 vehicles in the
first nine months and were
unchanged in the third
quarter.
Order bookings
declined by 29% in the first
nine months and by 38% in
the third quarter.
0
2 SCANIA VALUE • Q3/2008 www.scania.com

t e x t: p e t r a l o d é n p h o t o:d a n b o m a n
INTERVIEW
“This gives us a
more flexible
cost structure”
Scania has gradually become better at
handling fluctuations in demand, says CFO
Jan Ytterberg.
Good timing for global production
A global product range, increased
outsourcing and continuous
improvements have together
resulted in a significantly more
flexible, efficient Scania. But due
to weaker economic conditions,
especially in Europe, Scania now
has to tighten up its operations.
“We still have an order backlog that we are working
our way through, but the number of orders is
indeed declining now. There is overcapacity in the
transport industry and it is difficult to get a good
grasp of the underlying demand for new vehicles
during the prevailing financial market turbulence,
with the consequent difficulty for our customers
to obtain financing. Making ten-year forecasts is
easy. It is harder to say how things will be going
one or two years from now,” says Jan Ytterberg,
Scania’s Chief Financial Officer (CFO).
The economic slowdown following the home
mortgage and financial crisis will not leave Scania
untouched. But the company has gradually
become better equipped to cope with fluctuations
in demand. The latest example is Scania’s
global production programme, which means that
the same truck series are being manufactured
in Europe and Latin America. The advantages
become clear when order bookings weaken in
the European market and Scania meanwhile sees
strong demand in South America and Asia.
“It was good timing that the global production
programme became a reality right now. We can shift
production from Latin America to Europe in order
to achieve more balanced capacity utilisation.”
Another way of dealing with fluctuations in
demand is to ensure that the company has the
right staffing for every situation. Scania has a
flexible system for its production employees; a
“time bank” that serves as an initial regulator in
various cyclical situations. Put simply, the system
operates like a bank account. Time can be deposited
in the bank and withdrawn according to
production needs. The company also uses staffing
companies as well as temporary contracts. Not
renewing temporary contracts is another way of
adjusting production to lower demand.
Scania focuses on making strategic components,
especially those related to fuel consumption, such
as engines, gearboxes and axles. Everything else
that is not regarded as strategic can be outsourced.
In this way, Scania keeps its own value-added
down. Of all the components that a truck chassis
consists of, in-house production today accounts
for only 30 per cent of the cost. This figure was previously
40 per cent. If superstructures are included,
Scania’s own value-added is substantially lower.
“This gives us a more flexible cost structure. But
we are continuously re-assessing our cost structure,
and now that we are entering an economic
slowdown, we have to tighten up our operations.”
This means that, starting in November, Scania
will be adjusting its production rate.
“Scania’s cash flow has been strong over a long
period. This is partly due to good sales and partly
because we have focused on not tying up capital
unnecessarily − in trade receivables or inventories.
When demand weakens, it becomes even
more important to focus on cash flow. If truck
sales decrease rapidly, we build up inventories
and then we have to act and lower our production
rate,” Mr Ytterberg says.
Scania’s cash flow is a prerequisite for being
able to act independently in a period of credit
market turbulence.
Scania was trimming its production even
during the boom period. One example is the
transfer of gearbox and axle production to
Södertälje, at the same time as certain non-strategic
parts were outsourced to sub-contractors.
Meanwhile Scania concentrated its European
parts warehouse operations in Opglabbeek, Belgium.
Altogether, these measures will provide
annual savings of SEK 300 m. per year, with full
effect starting in 2009.
www.scania.com
Q3/2008 • SCANIA VALUE 3

Scania sees opportunities in the growth of emerging markets.
New markets help in eco
FOCUS: BUSINESS CYCLE
p h o t o: m2 p h o t o s t u d i o
In response to the financial crisis
and the economic slowdown, truck
customers in Europe are now
applying the brakes after several
years of strong demand. But
Scania today is a global company
that has the potential to benefit
from growth in new markets.
The financial market crisis has become deeper
than most observers had expected and has rapidly
led to repercussions in the real economy.
The main impact on Scania is in Europe, which
only a few quarters ago was roaring ahead.
Martin Lundstedt, head of Franchise and Factory
Sales, explains that Europe is now moving
from historically exceptional demand levels to a
“wait-and-see attitude.”
“Europe has been an enormously strong market,
where our customers have been upgrading
their truck fleets as a consequence of new emission
requirements, among other things. Now
they have decided to wait for a few quarters.”
Although no part of the world appears likely
to entirely avoid the shock waves from the
US financial crisis, there is good potential for
continued economic expansion in emerging
economies. In Scania’s assessment, the role of
Europe, expressed as as a percentage of total
Group sales, will decrease.
“The old markets are now weakening, but our
new markets are meanwhile becoming important
and we are increasing our deliveries to them. We
have a common global production platform that
is unique in the industry,” Mr Lundstedt says.
In many countries that previously had hardly
any middle class, increased prosperity is evident
and there is major spending on infrastructure. A
consequence of this is a growing need for transport
services.
One example is Russia, where Scania’s sales
volume has doubled in the past five years. Today,
Russia is Scania’s fifth largest market. Despite
recent turbulence in Russia, which will affect
demand in a short-term perspective, there will be
large remaining long-term needs for transport in
many areas: these include the commodity sector,
infrastructure investments and the residential
sector, which is driven by greater prosperity.
“In many of the former Soviet states, a transition
is also under way from local truck makes to
western European ones. Scania also has an optimal
service network in Russia, which gives us an
advantage,” Mr Lundstedt says.
In Latin America − including Brazil, Scania’s
largest single market − growth has been high in
sectors important to Scania, such as mining and
agriculture.
“Mining, forestry, oil and agriculture – many
sectors have set new records,” he says.
Many of the countries where Scania is now
growing have been characterised by political
instability and sharp economic fluctuations.
In recent years, Latin America in particular has
stabilised. Today Scania, is also better at quickly
adapting its operations to turbulent markets.
“Our flexible production system, short lead
4 SCANIA VALUE • Q3/2008 www.scania.com

t e x t: p e t r a l o d é n
Higher GDP driver of truck sales
p h o t o: n o r d e a
New truck sales (above 16 tonnes) per million inhabitants
DK
p h o t o: r e n a t o m e r l i n i
1,000
AT
NO
BE
CZ
DE
SK
NL
800
ES
IE
BY
RU
FR
600
SE
PL
FI
RO HU
IT
UK
400
PT
BG
HR
200
UA
GDP
USD/Capita
0
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000
Th e r e is a clear connection between general economic development and truck sales. Denmark had
the highest sales per capita in 2007, Ukraine had the lowest sales.
p h o t o: h e n r i q u e l o r c a
p h o t o: c a r l-e r i k a n d e r s s o n
Annika
Winsth,
Nordea
Will emerging countries
set off on their
own path now?
Despite their slowdown, the BRIC
countries will show good growth
even over the next few years, according
to forecasts from Nordea,
a major Scandinavian bank. But
the US still dominates the world
economy, explains Annika Winsth,
chief analyst at Nordea in Sweden.
nomic slump
times and well-developed logistics enable us not
only to cope with economic fluctuations well, but
also countries that are volatile as such. You have
to be close to the market. The challenge lies in
using the flexibility we have built into the organisation
and adapting ourselves to changes,” Mr
Lundstedt says.
“We have a global
production platform
that is unique in the
industry”
Scania’s global reach, however, extends further
than Russia and Brazil. Another market with
growth potential is the Middle East.
“The Middle East is continuing its strong
growth. There is a lot of construction, and the
oil industry generates major transport needs.
In those countries suffering from great political
unrest, we expect stabilisation to emerge eventually.
In Iraq around 4,000 Scania trucks are on
the roads and Scania is a strong brand.”
ASIA, Of course, and perhaps India above all,
is another market where major opportunities are
opening up for Scania. The company is focusing
on markets and segments where it is possible to
achieve sustained, profitable growth.
“The mining industry in India is a good
example of a niche segment requiring special
sol utions that Scania is good at.”
Asia is also perhaps the best example of
demographic changes that will benefit Scania in a
somewhat longer perspective:
“Due to increased urbanisation, 50 per cent of
the world’s population today lives in cities, and
this percentage continuing to rise. This means
there is great demand for transporting goods,
food and so on. More buses are also needed to
provide public transport in cities,” Mr Lundstedt
says.
t h e incredible g r o w t h over recent years in
the BRIC countries (Brazil, Russia, India, China)
has generated hopes that the world economy
will no longer be so dependent on the United
States. But Annika Winsth believes that even
in the future, we will have to live with the fact
that economic developments in the US will have
direct consequences in the rest of the world.
“The US is such a large economy that it doesn’t
help that emerging economies are performing
well – the economic situation in the world will
continue to be strongly dependent on the US.”
However, even if no one seems able to completely
escape the consequences of the financial
meltdown on Wall Street, there are likely to be
continued major differences in growth rates
between the western world and the BRIC countries.
According to Nordea’s forecast, the US and
the euro zone will have to be content with less
than one percent growth in 2009.
“In Russia, we anticipate annual growth of
between 6 and 7 percent during the next few
years. Russia has been driven for some time by
high oil prices and has seen an enormous influx
of capital. But there is political uncertainty in
Russia, and companies are wondering whether
they can really trust the country’s leaders.”
Brazil has also experienced strong growth,
benefiting from strong domestic demand.
“We are forecasting 3.3 per cent growth in
2009, mainly driven by investments and good
private consumption demand.”
The trend is the same in China and India. Although
these economies will expand at a slower
pace, India is expected to grow by 6.5 percent
in 2009 and China by 9 percent.
www.scania.com
Q3/2008 • SCANIA VALUE 5

STOCK MARKET
All the leading truck manufacturers were present at the Hanover fair.
Fuel economy takes
center stage at truck show
Due to continued high fuel costs,
a weaker economy and greater
focus on environmental issues,
this year’s IAA commercial vehicle
show devoted a great deal of
attention to fuel economy and the
environment.
During the past year alone, the price of diesel
has climbed 30 percent. Factor in the growing
environmental demands on the transport industry
and an international economic slowdown,
and it is easy to understand why good fuel economy
was among the most important themes of the
IAA commercial vehicle show in Hanover, Germany,
this past September.
“For many customers, fuel accounts for
be tween 25 and 35 percent of their total cost. It can
mean the difference between a positive or negative
bottom line,” said Martin Lundstedt, Head of
Franchise and Factory Sales, during the IAA show.
Viewed over the past five years, the price of
diesel has roughly doubled (measured in the Swedish
market). Scania’s message was also clear: Scania
will continue to be a leader in the commercial
vehicle industry when it comes to fuel efficiency.
But this is not just a matter of fuel-efficient engines.
“Our leading position is based on three cornerstones:
the vehicle, the driver and service to
our customers,” said Henrik Henriksson, head of
Scania Trucks at Franchise and Factory Sales.
Engine performance is obviously of central
importance to a vehicle, along with such factors
as aerodynamics, low rolling resistance and good
cargo capacity. The role of drivers is also crucial.
“Scania driver training can help even experienced
drivers improve their fuel economy by
around 10 percent,” Mr Henriksson explained,
also emphasising that regular service provides a
basis for additional savings.
This is where large improvements are achieved
by small means. Taking five minutes to check
Scania will reduce its
CO2 emissions by 50%,
said Martin Lundstedt.
air pressure and
adjust wheel axles
may result in noticeably
lower fuel
consumption.
“Conservatively
speaking, if we include
every factor − vehicle,
driver and service −
we can save at least 10
per cent of fuel. This
also reduces carbon
dioxide emissions.”
As for service, Scania
invests around SEK 1 billion a year to expand
its network of workshops and broaden their
range of services, in order to move even closer to
its customers.
Scania was not alone at the IAA show in talking
about fuel economy. All leading truck manufacturers
devoted extensive space to this theme.
6 SCANIA VALUE • Q3/2008 www.scania.com

t e x t: g ö r a n l i n d f o t o: d a n b o m a n
Fuel almost 30% of the total cost
Salaries 33%
Fuel 27%
Other 7%
Tyres 3%
Administration 7%
Repair and
maintenance 9%
Vehicles 14%
Leif Östling, CEO Scania, visited Hanover, where the business cycle and fuel prices were in focus.
f u e l is a major cost item. For a long-haulage
operator fuel, is almost 30 percent of
the total cost.
“The show was dominated by two issues: One
was the economic situation, with many people
being clearly more pessimistic about business
trends, especially in Europe. The other was the
fuel issue, viewed both from an economic and
an environmental standpoint,” says Christer Fredriksson,
an analyst at ABG Sundal Collier.
Mr Fredriksson regards the focus on the fuel
issue as entirely justified, since fuel has played
and will continue to play a major role in the future
competitiveness of the trucking industry.
“Scania is in the forefront of development
work, but the competition is tough. It is also my
feeling today that economics is priority number
one. In the current situation you cannot ignore
the economic benefits that you can derive from
being environmentally friendly.”
Arne C. Karlsson, an analyst at the Alecta pension
insurance company, concurs that Scania has
carved out a prominent position in the development
of fuel-efficient, environmentally friendly
vehicles.
“Scania always enjoys great trust, as a rule,
Scania doesn’t fall behind in engine development
either. I think that even today, the company is up
to speed as much as it needs to be. At the same
time, quite a lot of companies claim to be ahead in
development terms. I think it is hard to differentiate
yourself against the competition,” Mr Karlsson says.
Lower fuel consumption not only leads to
lower costs, but also means lower carbon dioxide
emissions. This is why the environmental issue
and fuel economy go hand in hand.
One clear example of this is Scania’s hybrid
technology, in which energy that arises when
the driver applies the brake is stored and reused.
Starting this autumn, Scania’s ethanol-powered
hybrid buses are being field-tested in Stockholm.
“Ethanol-powered hybrids yield a double
effect: 25 percent better fuel economy and 90
percent lower carbon dioxide emissions, since
the buses are powered by a renewable fuel,”
says Melker Jernberg, head of Scania Buses and
Coaches at Franchise and Factory Sales.
Another example is driver training, which can
not only reduce fuel consumption, but is also
the single most important way to reduce carbon
dioxide emissions.
“We have said that we will reduce carbon
dioxide emissions by 50 percent per transported
tonne-kilometre between 2000 and 2020. I
believe this is a fully realisable target. It will be
achieved through a combination of fuel-efficient
driving, technological development, biofuels
and legislation,” Mr Lundstedt said.
Share price, Scania B, 1 October 2006 – 22 October 2008
200
200
150
150
100
100
50 50
2006/10/01
Scania B
OMX Stockholm
SX Industrial
2007/10/01
2008/10/01
s o u r c e : n a s d a q o m x
FINANCIAL CRISIS
HITS SHARE PRICE
The Scania share price fell 24 percent
from 1 July to 22 October, in
line with the general decline on the
Stockholm Stock Exchange (OMX
Stockholm All Share Index). The
financial turbulence together with
fears of a deeper and longer recession
than expected were the main
reasons behind the decline.
0
www.scania.com
Q3/2008 • SCANIA VALUE 7

NOTES
Scania’s clothing
collection a hit
Hello, Sophie Haftor
Helmersson,
brand manager
of Scania’s own
clothing collection
− Scania Truck
Gear, which offers
everything from
outer garments,
jeans, shirts and
sweaters to boots
and sunglasses.
Sophie Haftor Helmersson,
responsible for the
How are sales going? Scania clothes collection.
“There has been a
fantastic level of interest since we started in 2006.
One important reason why the clothes have been such
a great success is that they reflect the company’s core
values and design. They are perceived as robust, highquality
items.”
Are truck drivers the only ones who buy these clothes?
“No. Naturally, a large proportion of customers
drive Scania trucks. But interest in the clothes quickly
spread to spouses and other family members. Today,
people who have no direct connection to the trucking
industry or to Scania are also buying our clothes. In
addition to functional garments that are specially
targeted at professional drivers, we also have an ‘off
road’ collection that anyone can use. Initially, this was
only for men, but last year we also introduced a collection
for women.”
Where can you buy these clothes?
“You can buy them on the web and at Scania dealerships
in Europe and Asia. We will also be launching
our clothes in Latin America. We also sell a lot of them
at various events, such as truck shows and the like.”
What sells the best?
“The leather belt with the Scania grille in brushed
steel on the buckle is probably our best-selling item. Our
sunglasses (with the Scania logo) also sell very well.”
Do you have any personal favourite?
“What I like best myself is probably the soft shell
jacket, which can be used for most leisure activities
and is a perfect autumn and spring garment.”
Trucks for Brazil
s c a n i a is d e l i v e r i n g 260 tipper trucks to
the Brazilian company Odebrecht. The delivery
includes driver training and on-board
transport planning computers. It is the largest
single truck order in the 51-year history
of Scania Brasil.
“This is a very important transaction, not
only because it includes many trucks but
because it also confirms and strengthens
Scania’s position in the construction segment.
According to Odebrecht, our trucks meet all
their requirements and provide the best overall
operating economy,” says Robert Leoncini,
Scania Brasil’s sales manager.
All the vehicles are Scania P 420 model threeaxle
trucks with 420 hp engines. All trucks will
be supplied with on-board computers for realtime
vehicle monitoring and transport planning.
Singapore to get 400 new city buses
s b s t r a n s i t, Singapore’s leading public
transport company, has ordered 400 Scania
buses in addition to the 500 units ordered in
2007. With engines featuring EGR technology,
these buses will meet both 2009 European
emission standards (Euro 5) and the
stricter enhanced environmentally friendly
vehicle (EEV) standard. The order is part of
SBS Transit’s on-going replacement of its
fleet of 2,800 buses with vehicles featuring
better environmental performance.
“This additional order is evidence that SBS
Transit has confidence in Scania. It is not just
a matter of the passenger comfort, quality,
environmental performance and operating
UPCOMING
FINANCIAL
EVENTS
2009
2009-02-03
Year-end report, 2008
Scania’s trucks provide Odebrecht with the
best total economy.
100 of the trucks will be equipped with
the computer-aided Scania Opticruise
gearchanging system. Odebrecht’s choice of
Scania Opticruise is based on the company’s
own tests, which confirmed the benefits
of the system in terms of driveability and
efficiency.
economy of
these buses.
Also decisive
has been
Scania’s ability
to live up to the
demand for
a long-term
partner that
High environmental performance
is one of the
can adapt its
products and
reasons why Singapore
services to the
chose Scania.
needs of SBS
Transit,” says Norman Koh, General Manager
of Scania Singapore.
Scania Value is published by Scania and
distributed to Scania shareholders.
Publisher and Editor-in-chief
Stina Thorman
ir@scania.com
Project Manager
goran.lind@appelberg.com
Art Director
anders.ortegren@appelberg.com
Production
Appelberg Publishing
www.appelberg.com
Printing: Trosa Tryckeri
Cover photo: M2 Photostudio
2009-05-07
Annual General Meeting
Address
Scania
Investor Relations
SE-151 87 Södertälje
Tel: +46 8 553 81 000
Scania’s clothes are like the trucks: tough, highquality
and well designed.
8 SCANIA VALUE • Q3/2008 www.scania.com