Investors Day Brazil Sven Antonsson President Latin American Operations
Deliveries Key figures 28, 321 vehicles Net sales SEK 37,105 m. Op. income SEK 5,632 m. Operating margin 15.2 % Scania in Brief First half 2010 Sales by segment Used vehicles 7% Services 23% Engines 1% Buses 13% Trucks 54% Latin America 33% Deliveries by region Western Europe 33% Central and eastern Europe 8% Africa, Asia & Oceania 25%
Scania s Strategy Provide the best life-cycle profit Focus on Heavy Trucks and Buses Combining Products, Services & Financing Sustainable Profitable Growth Long term commitment Premium Products High Quality and Reliability
Trucks P-, G- & R- series
Bus Segments City Bus Intercity Coach
Engines Marine Gensets Industrial
Scania Latin America History 1951 Beginning of exports from Europe to Peru 1957 1962 Scania Vabis began operations in Brazil Full scale industrial facility in Sao Bernardo de Campo 1976 Industrial facility in Argentina, Tucumán 1995 Chile, 1995 Mexico; 1998 Venezuela and 2010 starting in Colombia 1990s Introduction of series 3 and 4 2004 2009 Production since 1957 in Brazil reaches 150 thousand units Simultaneous introduction with Europe of New Scania Trucks
Scania Latin America 2010 Jan/Jun Employees 4.469 Mexico Venezuela Turnover LA Markets 1.072 EUR m. Colombia Peru Brazil Industrial/ Commercial Operations Chile Commercial Operations /Captive Markets Argentina Commercial Operations / Non- Captive Markets
Argentina Real GDP Projected % Change 7,0 2,4 2010 2011 Tucumán / Buenos Aires Total area 300.000 m 2 / 24.000 m 2 Built area 40.800m 2 / 5.200m 2 778 Employees 1976 Established
Argentina Market Share Jan/Jun 2010 Total Truck Market: 27,7% Market Share Jan/Jun 2010 Total Road Bus Market: 20,5%
Chile Real GDP Projected % Change 4,9 6,5 2010 2011 Santiago Total area 33.700 m 2 Built area 3.700m 2 155 Employees 1995 Established
Chile Market Share Jan/Jun 2010 Total Truck Market: 7,7% Market Share Jan/Jun 2010 Total Road Bus Market: 9,6%
Peru Real GDP Projected % Change 7,0 5,4 2010 2011 Lima Total area 16.000 m 2 Built area 4.000m 2 100 Employees 1965 Established
Peru Market Share Jan/Jun 2010 Total Truck Market: 6,8% Market Share Jan/Jun 2010 Total Road Bus Market: 17,3%
Mining Segment Scania vs traditional mining machinery Improved Flexibility Lower fuel and maintenance cost Lower Investment Cost
Other Segments Trucks Low end Segments (Long Haulage & Off Road) Semi-heavy Segment (Distribution) Buses & Coaches Bus Rapid Transport (BRT) Projects
BRTs in America Latina Ideal system for large urban centres Scania has the right products for the BRT corridors and the feeding lines Since 2002, Scania has sold 536 articulated buses for BRT systems in Brazil, Chile, Colombia, Ecuador and Mexico
Conclusion Provide the Best Lifecycle Profit Well established Strong Brand Market leader in the Heavy Truck Segment in Brazil and Argentina Global Product Range and Production System
Scania Production System Stefan Palskog, VP Production and Development Latin America The platform for quality and efficiency improvements Small steps in the day-to-day operations All employees responsible for increasing efficiency
Global Product Range and Production System
Production Trend Allocation to Brazil and Argentina High utilisation Interchangeable components with European production Focus on lead times
Productivity Improvement Vehicles produced per employee 100,000 Vehicles per Employee Vehicles Employees 10.0 80,000 78,300 80,400 8.0 60,000 55,600 6.6 6.8 6.0 40,000 20,000 46,400 31,800 3.5 3.0 12,000 13,100 4.8 11,600 11,800 35,800 11,800 3.8 9,500 4.0 2.0 0 1990 1995 2000 2007 2008 2009 0
Production in São Bernardo do Campo São Bernardo do Campo Total area 350.000 m 2 Built area 130.000m 2
Investors Day Brazil Christopher Podgorski, Managing Director Scania Brazil
Scania Brazil Real GDP Projected % Change 7,2 4,5 2010 2011
Scania Brazil Sales Jan/Jun 2010 Trucks: 7.587 Buses: 491 Market Share Jan/Jun 2010 Total Truck Market: 28,2% Market Share Jan/Jun 2010 Total Road Bus Market: 32,6%
Macro Economic Outlook Sound Macro Economic Policies Continued Urbanisation Growing Oil Industry
Macro Outlook - Brazil Infrastructure Investments Soccer World Championship 2014 Summer Olympic Games 2016 PAC (Economic Growth- Acceleration Programme for Infastructure)
Market Trend Heavy Trucks Brazil 45.000 40.000 35.000 30.000 25.000 20.000 15.000 10.000 5.000 0 2002 2004 2006 2008 2010 H1* Total m arket Scania GCW>=30 tonnes (invoicing to customers/dealers). From 2001 Condiction : Gross Vehicle Weight >= 15t. / If Tractor Gross Total Combined Weight >=40t. - If Rigid Gross Combined Weight > 45t. * Rolling 12 months
Service is a Local Business Extensive Network with 99 Workshops 0 Mobile Workshops Assistance
Service Trends More complex Vehicles Growing Fleet of Scania Vehicles More advanced Logistical Systems Just in Time Sustainable Transports
Extended Service Portfolio Service of Trailers and Superstructures Enhanced offering for Older Vehicles Fleet Management Driver Training
Extended Service Portfolio Financial Services Scania Banco Consorcio Scania Brasil
Scania Workshops
Efficiency Programme Scania Retail System Same principles as Scania Production System Shorter lead times in the delivery process Higher quality and shorter lead times in repairs
Investors Day Brazil Thank you!