St t t d 2020Strategy towards 2020

Martin LundstedtMartin LundstedtPresident and Chief Executive Officer

Scania’s core values

Customer first Respect for the individual

Quality

Strengthening customer profitability

+ Customer revenue + Scania revenue• Uptime• Flexibility• Emissions

• Hardware• R/M• Driver training

Vehicle

Tyres R/M

• Noise • Financing• Rental– Customer costs

– Scania costs

• HardwareDriver salary

Fuel

Admin • Hardware• Production of Services

= Customer EBIT = Scania EBIT

Valid for all markets and segments

Customers have high gutilisation of equipment

Heavy trucks (>16 tonnes)

Heavy buses (> 12 tonnes)

Industrial and marine Industrial and marine engines (9-16 litres)

Scania Modular SystemScania Modular System

Scania’s 2020 objectives

Global potential p120,000 Scania trucks

Ambition to increase services to 25-30% of total revenue

P t ti l f 15 000 Potential for 15,000 buses and 20,000 industrial and marine engines

Growth strategy

I Enter neGrow with

total market

Increase Scania

market share

Enter new customer segments

Enter new markets

Increase sales per vehicle

120,000 trucks, 2012-2020Scania CAGR (units) vs. GDP growth

%

Scania CAGRGDP growth*Structural growth% Structural growth

Market recoveryand market

share growth

* Source: IHS Global Insight CAGR = Compounded Average Growth Rateg

GDP – one driver of demandHeavy trucks (western brands) 2012

Germany700Trucks/million inhabitants

Brazil

Germany

500

600

BrazilPoland

Russia

Turkey300

400

Russia

China

South Africa

0

100

200

00 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

GDP USD /capita

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

Low specialisation – low logistics efficiency

7%

Cost for logistics, % of total GDP

10% EuropeChina

7%18%

US15%

Brazil

India12%

Emerging markets product mix trendBrazilian truck market

%

100

708090 Heavy

> 16 tonnes GVW

30405060

0102030

Medium6-16 tonnes Light

3.5-6 tonnes

Source: RementumSource: Rementum

Mature market product mix trendEuropean truck market

100

%

708090 Heavy

> 16 tonnes GVW

30405060

0102030

Medium6-16 tonnes Light

3.5-6 tonnes01990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Source: RementumSource: Rementum

Application strategy

Industrial OEM

Mining

F t

Transport logistics:Global forwarding

Forestry

gand Express

Industrial flows

Retail distribution

Sustainability – Holistic view

Buyers of transporttransport services

L i ti l tiLogistics solutions

Transport companiesScania Focus on solutions

Scania Transport LabHauling company operating internal transports

Scania’s vision for the

Business average

Transport efficiency, CO2 g/tonkm

transport sector: Halving of CO2 per tonne-km by 2020

Results from Scania Transport

Improved filling rate important

pLab: Halving of CO2 per tonne-km 2008-2012

Holistic perspective – driver,Holistic perspective driver, logistics, vehicle, service, driver support, biofuels

Connected Vehicles

On-line connectivity via telecom network

Number of connected vehicles

40 000 Great possibilities for

driver and vehicle follow-up

40,000

follow-up

Customer benefits: Uptime and fuelUptime and fuel efficiency

2011 2012 2013

Ecolution by ScaniaCustomer case from Spain

ConsumptionReference: 32.5 l/100 km

Today, actual: 27.3 l/100 km

Target:30.2 l/100 km16%

Yearly savings,10 trucks* CO2 : 230 tonnes Cost: EUR 85,000

Current vehicle

Ecolution vehicle

Driver training

Ecolution solution

Jan Feb Mar Apr Jun Jul AugMay

CoachingMaintenance+

Sep*Annual mileage 150,000 km/truck p gy p

Ecolution – the results so far

Significant fuel 3,000

Accumulated volume

gsaving (10-15%)

18 markets by

3,000

2,500

2 000year-end 2013

~ 10% of sales in tifi d k t

2,000

1,500

certified markets 1,000

500

0Aug2012

Jan Aug2013

Scania Production System

Implemented 1990 8Vehicles per employee

p

Based on continuous improvements 6.6

7.06

7

3 5

4.8

5.6

3

4

5

3.03.5

1

2

3

01990 1995 2000 2005 2010 2013*

2013* refers to Q2 annualisedRefers to vehicles produced in relation to production personnel 2013 refers to Q2 annualisedp oduct o pe so e

Efficient production set up

Luleå

St. Petersburg

B

SödertäljeOskarshamn

SlupskMeppelAngers

Zwolle

Busan

TaipeiDubai

Angers

Kuala LumpurBangalore

Johannesburg

TucumánSão Paulo

Johannesburg

Regional product centre

Production

More efficient sales and serviceScania Retail System

Shorter lead timesShorter lead times from order to delivery

Higher quality and Higher quality and shorter lead times for repairs

Reducing wasted time

R&D – delivering customer benefit faster R&D Factory principle

Short lead times from development project to market launch

Understand the entire flow to reduce wasted time and boost quality

Opportunities with Volkswagen Group

Axles

Gearboxes

P h i Purchasing

Hybrid technology

Policy Volkswagen Group cooperation

All ideas and requests for Corporate benefit for Scania

qcooperation projects must be approved by Scania’s Executive Board

Arm’slength

principleStrategic

fitPriority

based on own merits

Feasibility study of business case conducted

Business case approval by Executive Board and Board of Directors

Business case

Execute and follow up

Europe Scania trucks, order bookings

12,000 No seasonal Units

12,000

10,000

8 000

weakness in Q3

Replacement need8,000

6,000 Pre-buy of Euro 5

Euro 6 availability4,000

2,000

Higher market share during H1 2013

0Q2

2012Q2

2011Q2

2013

Latin AmericaScania trucks, order bookings

Order bookings at 8,000Units

ga high level in Q1 and Q2

Subsidies in Brazil

8,000

6,000 Subsidies in Brazil

and Argentina

Somewhat lower4,000

activity in Q3

Higher market shareduring H1 2013

2,000

during H1 20130

Q22012

Q22011

Q22013