Scania Interim Report - January - September 2002

SCANIA INTERIM REPORT - JANUARY - SEPTEMBER 2002 "In Europe, demand has developed somewhat better than expected, while uncertainty has increased with regard to the outlook for 2003. In Latin America, demand is weak and the effects of a new administration after the presidential election in Brazil are impossible to foresee. Scania's service-related business has developed well, and together with action programmes in the form of a stricter price policy and more efficient production, the trend of earnings is expected to remain good for the rest of the year," says Leif Östling, President and CEO. First three quarters in brief Change First nine months in % Units USD m.* 2002 2001 Trucks and buses - Order bookings 35,166 35,884 -2 - Deliveries 30,261 35,165 -14 Sales and earnings SEK m. unless otherwise stated Sales, Scania products1 3,550 32,953 33,579 -2 Operating income, Scania products 261 2,425 1,924 26 Operating income, Scania Group 322 2,987 2,004 49 Income after financial items 265 2,462 1,524 62 Net income 197 1,831 1,037 77 Operating margin, 7.4 5.7 Scania products, percent Return on equity, percent 2) 11.7 14.8 Return on capital employed, excluding 12.5 14.4 Customer Finance operations, percent 2) Earnings per share, SEK USD 9.16 5.19 0.99 Earnings per share excluding USD 6.40 5.19 capital gain, SEK 0.69 Cash flow excluding Customer Finance 230 2,137 2,376 operations and divestments/acquisitions of companies Cash flow excluding Customer Finance 356 3,302 1,479 operations and including divestments/acquisitions of companies Number of employees, 30 September 28,212 28,812 Number of shares: 200 million 1) Trucks, buses, engines and service-related products. 2) Calculations are based on rolling 12-month income. * Translated solely for the convenience of the reader at a closing exchange rate of SEK 9.2825 = USD 1.00. Unless otherwise stated, all comparisons in brackets refer to the same period of last year. This report is also available at www.scania.com SCANIA, FIRST THREE QUARTERS OF 2002 - COMMENTS BY THE PRESIDENT AND CEO "The operating income of the Scania Group was largely unchanged compared to the corresponding period of 2001, when the effects of new accounting principles and the capital gain from the divestment of Svenska Volkswagen AB and Din Bil AB have been excluded. The operating margin for Scania products amounted to 7.4 percent during the first nine months of 2002 and 7.0 percent during the third quarter," notes Leif Östling, President and CEO of Scania. "Operating income was mainly affected by the fact that about 5,000 fewer trucks and buses were delivered. Sales of service-related products - parts and workshop services - rose by 6 percent. Customer Financing continued to show good performance. "In Europe, demand is divided. Order bookings increased in Great Britain, Italy and Spain while they declined in Germany. During the first nine months, order bookings in Europe were somewhat higher than during the corresponding period of 2001. "The number of trucks delivered in western Europe was 11 percent lower than during the first nine months of 2001, and Scania's market share was 13.5 percent. Demand for heavy trucks in western Europe now seems to have stabilised at a rolling annual rate of around 190,000 units. "In central and eastern Europe, the positive trend continued. Future EU membership for a number of countries should contribute to continued favourable economic growth, and an increasing demand for transport equipment. Scania's performance in the region was favourable, especially in Russia. "Many newer used Scania trucks from western Europe are sold in central and eastern Europe. Scania's share of this used truck market is higher than the 15 percent share we have in the region for new trucks. The flow of newer used trucks has kept up the sales volume of new trucks in western Europe. "In the Middle East, demand remained good despite the unrest in the region. In the Far East, the positive volume trend continued, especially in South Korea. "In European operations, order bookings for trucks rose by 8 percent, and to shorten delivery times, we increased the pace in our production workshops, while deliveries of components and vehicles from Latin America greatly increased. "In Latin America, demand remained weak. The Argentine market was nearly non-existent. In Brazil, activity was low while waiting for the political strategy to become clear after the presidential election. During the third quarter, the currency weakened further by more than 25 percent, and the real now stands at about 4 per US dollar. Scania's programme for increasing prices in Brazil to world market level remains in place, even though this has meant a significant decline in market share. Deliveries of components and complete vehicles to markets outside Latin America increased and had a positive effect on earnings in Latin America. "In bus and coach operations, markets performed well in Europe, while order bookings in Latin America declined by around 30 percent. The restructuring of Scania's European bus production is progressing largely as planned. "Scania is currently displaying its trucks for the first time at the Tokyo Motor Show, the leading commercial vehicle exhibition in Asia. Together with our local sales partner Hino, we are displaying products intended for launching in the Japanese market. The task of defining other potential areas of co-operation between Hino and Scania continued. "In Europe, demand has developed somewhat better than expected, while uncertainty has increased with regard to the outlook for 2003. In Latin America, demand is weak and the effects of a new administration after the presidential election in Brazil are impossible to foresee. Scania's service-related business has developed well, and together with action programmes in the form of a stricter price policy and more efficient production, the trend of earnings is expected to remain good for the rest of the year," Mr Östling concludes. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/10/31/20021031BIT00240/wkr0001.doc The Full Report http://www.waymaker.net/bitonline/2002/10/31/20021031BIT00240/wkr0002.pdf The Full Report

About Us

Scania is a world-leading provider of transport solutions. Together with our partners and customers we are driving the shift towards a sustainable transport system. In 2018, we delivered 88,000 trucks, 8,500 buses as well as 12,800 industrial and marine engines to our customers. Net sales totalled to over SEK 137 billion, of which about 20 percent were services-related. Founded in 1891, Scania now operates in more than 100 countries and employs some 52,000 people. Research and development are concentrated in Sweden, with branches in Brazil and India. Production takes place in Europe, Latin America and Asia, with regional production centres in Africa, Asia and Eurasia. Scania is part of TRATON SE. For more information visit: www.scania.com.

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