Strategy towards 2020

Martin LundstedtPresident andPresident and Chief Executive Officer

Scania’s core values

Customer first Respect for the individual

Quality

Strengthening customer profitability

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

• R/M• Driver training• Financing• Rental– Customer costs

Driver salaryAdmin

Vehicle

Tyres R/M – Scania costs

• Hardware• Production of Services

Fuel

= Customer EBIT = Scania EBIT

Valid for all markets and segments

Customers have high utilisation of equipment

Heavy trucks (>16 tonnes)

Heavy buses (> 12 tonnes)y ( )

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

Scania Modular System

Scania’s 2020 objectives

Global potential 120,000 Scania trucks

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

Potential for 15,000 buses and 20 000buses and 20,000 industrial and marine enginesg

Growth strategy

Grow with total market

Increase Scania

Enter new customer Enter new

marketsIncrease sales per total market market share segments marketspvehicle

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

Scania CAGRGDP growth*

%g

Structural growth

Market recoveryand market

share growth

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

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

700Trucks/million inhabitants

Germany600

700

BrazilPoland

T k

400

500

Russia

Turkey

South Africa200

300

China0

100

0 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 0005 000 10 000 15 000 20 000 25 000 30 000 35 000 40 0000 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000GDP USD

/capita

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

Low specialisation – low logistics efficiencyCost for logistics, % of total GDP

10% Europe

7%18%

10%

US

EuropeChina

15%

India12%

15%

Brazil

Emerging markets product mix trendBrazilian truck market

%

8090

100Heavy

> 16 tonnes GVW

506070

203040

Medium6 16 tonnes

010

6-16 tonnes Light 3.5-6 tonnes

Source: Rementum

Mature market product mix trendEuropean truck market

%

8090

100Heavy

> 16 tonnes GVW

506070

203040

Medium

01020

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Medium6-16 tonnes Light

3.5-6 tonnes

Source: Rementum

Application strategy

Industrial OEM

Mining

Forestry

Transport logistics:Global forwarding

and Express

Industrial flows

Retail distribution

Sustainability – Holistic view

Buyers ofBuyers of transport services

Logistics solutions

Transport companiesScania Focus on solutions

Scania Transport LabHauling company operating internal transports

Business average

Transport efficiency, CO2 g/tonkm

Scania’s vision for the transport sector: Halving of CO2 per tonne-km by 2020 Improved filling

rate important Results from Scania Transport

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

rate important

km 2008 2012

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

Connected Vehicles

On-line connectivity via telecom network

Number of connected vehiclesvia telecom network

Great possibilities for driver and vehicle

40,000

driver and vehicle follow-up

C t b fit Customer benefits: Uptime and fuel efficiencyy

2011 2012 2013

Ecolution by ScaniaCustomer case from Spain

ConsumptionReference: 32.5 l/100 km

T d t l

Target:30.2 l/100 km16%Today, actual: 27.3 l/100 km

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

Ecolution – the results so far

Accumulated volume

Significant fuel saving (10-15%)

3,000

2,500 18 markets by

year-end 2013 2,000

~ 10% of sales in certified markets

1,500

1,000

500

00Aug2012

Jan Aug2013

Scania Production System

Vehicles per employee Implemented 1990

Based on continuous 7.07

8p p y

improvements

4.8

5.6

6.6

5

6

3.03.5

4.8

2

3

4

0

1

2

01990 1995 2000 2005 2010 2013*

2013* refers to Q2 annualisedRefers to vehicles produced in relation to production personnel

Efficient production set up

åLuleå

St. PetersburgSödertälje

Oskarshamn

SZ ll

Busan

Dubai

SlupskMeppelAngers

Zwolle

Kuala Lumpur

Taipei

Bangalore

Johannesburg

TucumánSão Paulo

Regional product centre

Production

More efficient sales and serviceScania Retail System

Shorter lead times from order to delivery

Higher quality and shorter lead times for repairs

Reducing wasted time Reducing wasted time

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

Short lead times from development project to market launchp p j

Understand the entire flow to reduce wasted time and boost quality

Opportunities with Volkswagen Group

Axles

Gearboxes

Purchasing

Hybrid technology

Policy Volkswagen Group cooperation

Corporate benefit for Scania

All ideas and requests for cooperation projects must be approved by Scania’s

Arm’slength

principleStrategic

fitPriority

based on own meritspp y

Executive Board

Feasibility study of

p p

business case conducted

Business case approval Business case

by Executive Board and Board of Directors

E t d f llExecute and follow up

Europe Scania trucks, order bookings

Units12,000

10,000

No seasonal weakness in Q3

R l t d8,000

Replacement need

Pre-buy of Euro 56,000

4,000 Euro 6 availability

Higher market share2,000

0

Higher market share during H1 2013

0Q2

2012Q2

2011Q2

2013

Latin AmericaScania trucks, order bookings

Units Order bookings at

a high level in Q1 and Q2

8,000

Subsidies in Brazil and Argentina

6,000

4 000 Somewhat lower

activity in Q3

4,000

2 000 Higher market share

during H1 2013

2,000

00Q2

2012Q2

2011Q2

2013