Scania Year-end Report, January–December 2012

Scania's earnings for the full year 2012 amounted to SEK 8,300 m. Lower vehicle
volume, lower capacity utilisation and a higher level of costs pulled down
earnings. Order bookings for trucks rose during the fourth quarter of 2012.
Summary of the full year 2012
• Operating income fell to SEK 8,300 m. (12,398), and earnings per share fell to
SEK 8.31 (11.78)
• Net sales decreased by 9 percent to SEK 79,603 m. (87,686)
• Cash flow amounted to SEK 3,025 m (6,970) in Vehicles and Services
• The Board of Directors proposes a dividend of SEK 4.75 (5.00) per share.

Comments by Martin Lundstedt, President and CEO
“Scania's earnings for the full year 2012 amounted to SEK 8,300 m. Lower vehicle
volume, lower capacity utilisation and a higher level of costs pulled down
earnings. Order bookings for trucks rose during the fourth quarter of 2012. The
upturn was driven by Latin America and order bookings were exceptionally strong
in Brazil, where extensive subsidies impacted demand positively. Order bookings
in Europe remained at a low level. Customers are hesitant about investing in new
vehicles in view of the uncertain economic climate. Meanwhile, there is a
replacement need, given the low truck deliveries in recent years. The coming
transition to Euro 6 emission standards may also provide some support to demand.
In Russia, order bookings were at a good level. Order bookings in Asia decreased
compared to the previous quarter, mainly due to markets in the Middle East.
Order bookings for buses remained at a low level, with an upturn in Europe and a
downturn in Latin America compared to the third quarter. Order bookings for
engines improved compared to the very low level in the third quarter. Service
sales are generally at a stable level with increased demand in several regions
outside Europe during the full year 2012. Lower economic activity is adversely
impacting service demand in southern Europe. Given low demand for vehicles in
Europe and the Middle East, the daily production rate is reduced by about 15
percent in Europe in the beginning of the first quarter of 2013 compared to the
end of 2012. A total of about 700 personnel on hire have been affected. An
adjustment of the general cost level to lower demand is also under way. Looking
ahead, there are good growth opportunities. Therefore, Scania will continue to
prioritise investments in core development projects and will expand the sales
and services organisation in emerging markets.”

Please see the attached PDF for more information.
Scania is one of the world’s leading manufacturers of trucks and buses for heavy
transport applications, and of industrial and marine engines. Service-related
products account for a growing proportion of the company’s operations, assuring
Scania customers of cost-effective transport solutions and maximum uptime.
Scania also offers financial services. Employing some 37,500 people, the company
operates in about 100 countries. Research and development activities are
concentrated in Sweden, while production takes place in Europe and South
America, with facilities for global interchange of both components and complete
vehicles. In 2011, net sales totalled SEK 87.7 billion and net income amounted
to SEK 9.4 billion. Scania press releases are available on www.scania.com