scana presentation%20q3%202008_tcm10-219195
TRANSCRIPT
1
Press conferenceErik Ljungberg, Corporate Relations
2
Interim Report January-September 2008Jan Ytterberg, CFO
3
First three quarters of 2008 – highlights
Profitability at all time high– Operating margin 15.8%– High returns– Good revenue growth
4
Net sales growth 11%
EBIT growth 25%
ROCE 50.5%
Profitable growthVehicles & Services
20,000
10,000
30,000
40,000
60,000
100,000SEK m.
0
70,000
50,000
1998 20071999 2000 2001 2002 2003 2004 2005 2006
15
5
20
25
35
55Percent
0
45
30
RevenueEBIT MarginROCE
10
80,000
2008*Q3
* Rolling 12 months
90,000 50
40
5
High volumeTotal deliveries, trucks and buses
4,000
8,000
16,000
24,000Units
2004Q1 Q2 Q3 Q4
2005 2006 2007 2008
0
20,000
12,000
Deliveries +4%
Delivery timesbecomingshorter
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
6
Service business is growingService revenue and rolling fleet
200,000
300,000
500,000
600,000
0
Capitalising on substantialvehicle population
Increasedprices
400,000
Units
1998 20071999 2000 2001 2002 2003 2004 2005 2006 2008*Q3
1997
100,000
4,000
8,000
12,000
18,000
0
10,000
2,000
14,000
16,000
SEK m.
Rolling fleetService revenue
* Rolling 12 months
7
Operating incomeVehicles & Services
Strong EBIT growth due to
– Higher vehicle and service volume
– Prices– Product mix
EBIT increase:
+ SEK 2,025 m. 9 mth
VolumeVolume
PricePrice
Product mixProduct mix
R&DR&D
8
Cash flowVehicles & Services
0
1,000
500
1,500
2,000
4,500SEK m.
2,500
Increased tied-upworking capital– Volume growth– Higher
inventories
3,000
3,500
4,000
2004Q1 Q2 Q3 Q4
2005 2006 2007 2008Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Note: Excluding acquisitions/divestments and Financial Services
9
Volume driven growthCredit portfolio, Financial Services
10,000
5,000
15,000
20,000
30,000
45,000SEK m.
0
35,000
25,000
Portfolio +8%,local currencies
Increased bad debtprovisions in several markets
Well balancedportfolio
1998 20071999 2000 2001 2002 2003 2004 2005 2006 20081996 1997
40,000
10
Bad debt expenses
1998 1999 2008Q3
2000 2001 2002 2003 2004 2005 2006 2007
Bad debt ratio Write-off ratio
0,40
0,30
0,80Percent
0,50
0,60
0,70
0,00
0,20
0,10
11
Conservative refinancing policy
SEK SEK 14,210 m. 14,210 m.
SEK SEK 24,300 m.24,300 m.
+70%+70%
End 2007 Sep 2008
Increased creditfacilities
EIB loan of SEK 3,000 m.
Credit facilities & EIB unutilised
FacilitiesFacilities FacilitiesFacilities
EIB loanEIB loan
12
Net income +26%
Net margin 11.1%
Earnings per share SEK 12.60 rolling 12 months
Return on equity 43.3% (31.4)
Building shareholder value
4
6
8
14SEK
0
10
10
5
15
20
30
35
Percent
0
25
EPS (SEK)ROE
2
50
1998 1999 2008*2000 2001 2002 2003 2004 2005 2006 2007
1240
45
* Rolling 12 months
13
Conclusion
All time high earnings
Focus on cash flow
Financial services stable
Conservative refinancing policy
14
15
OutlookLeif Östling, President and CEO
16
Market developmentsOrder bookings trucks 9 months
Western Europe -51%
Central and eastern Europe -34%
Latin America +29%
Asia +3%
17
Orders lower than production
2004Q1 Q2 Q3 Q4
2005 2006 2007 2008Q3Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Orders Production
Q1
20,000
100,000Units
40,000
60,000
80,000
0Q2
Rolling 12 months
18
Flexible production cost structure
Sourced material Sourced material and componentsand components(70%)(70%)
OtherOther
LabourLabourcostcost
Chassis production 2007
19
Flexibility – global product range
20
Service business is growingService revenue and rolling fleet
200,000
300,000
500,000
600,000
0
Capitalising on substantialvehicle population
Increasedprices
400,000
Units
1998 20071999 2000 2001 2002 2003 2004 2005 2006 2008*Q3
1997
100,000
4,000
8,000
12,000
18,000
0
10,000
2,000
14,000
16,000
SEK m.
Rolling fleetService revenue
* Rolling 12 months
21
Service business is growing
High level of transport activity
High capacityutilisation in workshops
New services
~50% of volume in captive network
22
Outlook
Earnings in 2008 will be higher than 2007
Due to uncertain situation about future business conditions, Scania provides no forecast for 2009
Liquidity situation important factor for transport companies
23