Investors Day Brazil

Sven Antonsson

President Latin American Operations

Deliveries 28, 321 vehicles

Net sales SEK 37,105 m.

Op. income SEK 5,632 m.

Operating margin 15.2 %

Key figures

Sales by segmentUsed vehicles 7%

Engines 1%

Buses 13%

Trucks 54%

Services 23%

Deliveries by region

WesternEurope

33%

Central andeastern Europe

8%

Latin America

33%

Africa, Asia & Oceania

25%

Scania in BriefFirst half 2010

Provide the best life-cycle profit

Sustainable Profitable Growth

Premium Products

• Focus on Heavy Trucks and Buses

• Combining Products, Services & Financing

• Long term commitment

• High Quality and Reliability

Scania’s Strategy

TrucksP-, G- & R- series

Intercity

Bus Segments

Coach

City Bus

Engines

Marine Gensets Industrial

Scania Latin AmericaHistory

1951 Beginning of exports from Europe to Peru

Scania Vabis began operations in Brazil1957

Full scale industrial facility in Sao Bernardo de Campo1962

1976 Industrial facility in Argentina, Tucumán

1995 Chile, 1995 Mexico; 1998 Venezuela and 2010 starting in Colombia

1990s Introduction of series 3 and 4

2004Production since 1957 in Brazil reaches 150 thousand units

2009Simultaneous introduction with Europe of

New Scania Trucks

Brazil

Argentina

Chile

Peru

Venezuela

Colombia

Mexico

Scania Latin America2010 – Jan/Jun

Employees

4.469

Turnover LA Markets

1.072 EUR m.

Industrial/ Commercial Operations

Commercial Operations /Captive Markets

Commercial Operations / Non- Captive Markets

Argentina

Real GDP – Projected % Change

20107,0

20112,4

Tucumán / Buenos Aires

Total area300.000 m2 / 24.000 m2

Built area40.800m2 / 5.200m2

Employees778

Established1976

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

20104,9

20116,5

Santiago

Total area33.700 m2

Built area3.700m2

Employees155

Established1995

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

20107,0

20115,4

Lima

Total area16.000 m2

Built area4.000m2

Employees100

Established1965

Peru

Market Share – Jan/Jun 2010

Total Truck Market: 6,8%

Market Share – Jan/Jun 2010

Total Road Bus Market: 17,3%

Mining SegmentScania 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 Life-cycle Profit

Well established Strong Brand

Market leader in the Heavy Truck Segment in Brazil and Argentina

Global Product Range and Production System

The platform for quality and efficiency improvements

Small steps in the day-to-day operations

All employees responsible for increasing efficiency

Scania Production SystemStefan Palskog, VP Production and Development Latin America

Global Product Range and Production System

Interchangeable components with

European production

Allocation to Brazil and Argentina

High utilisation Focus on lead times

Production Trend

Productivity Improvement

Vehicles per Employee

0

2.0

4.0

6.0

10.0

8.0

0

20,000

40,000

60,000

100,000

80,000

31,800

46,400

55,600

80,400

12,000 13,100 11,600 11,800

1990 1995 2000 20082007 2009

78,300

11,8009,500

35,800

3.0

3.5

4.8

6.86.6

3.8

Vehicles

EmployeesVehicles produced per employee

Production in São Bernardo do Campo

São Bernardo do Campo

Total area350.000 m2

Built area130.000m2

Investors Day BrazilChristopher Podgorski, Managing Director Scania Brazil

Scania Brazil

Real GDP – Projected % Change

20107,2

20114,5

Scania Brazil

Sales – Jan/Jun 2010Trucks: 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 TrendHeavy Trucks Brazil

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

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

2002 2004 2006 2008 2010 H1*

Total market Scania

Service is a Local Business

Extensive Network with 99 Workshops

Mobile Workshops

Assistance

0

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

Same principles as Scania

Production System

Shorter lead times in

the delivery process

Higher quality and

shorter lead times in

repairs

Efficiency ProgrammeScania Retail System

Investors Day Brazil

Thank you!