Scania : Year-end Report January–December 2016

Scania's net sales rose to a record level of nearly SEK 104 billion. Total deliveries of trucks and buses and coaches reached all-time high levels. Service revenue amounted to a record of almost SEK 22 billion, an increase of 5 percent (7 percent in local currency).

Summary of the full year 2016

• Operating income excluding items affecting comparability rose by 6 percent to SEK 10,184 m. (9,641), resulting in an operating margin of 9.8 (10.2) percent
• Operating income amounted to SEK 6,384 m. (9,641)and was negatively impacted by a provision of SEK 3.8 billion related to the European Commission's competition investigation
• Net sales rose by 10 percent to a record high SEK 103,927 m. (94,897)
• Cash flow amounted to SEK 3,427 m. (4,376) in Vehicles and Services

Comments by Henrik Henriksson, President and CEO:

'Scania's net sales rose to a record level of nearly SEK 104 billion. Total deliveries of trucks and buses and coaches reached all-time high levels. Service revenue amounted to a record of almost SEK 22 billion, an increase of 5 percent (7 percent in local currency). The company's operational performance was strong. Higher vehicle volume in Europe and higher service volume impacted earnings positively but this was partly offset by negative currency rate effects, lower deliveries in Latin America (mainly related to Brazil), andby the high cost of investments related to Scania's new truck generation. Scania's position in the European market remains strong with a market share of 16.5 percent. The replacement need and economic situation in Europe continues to have a positive impact on demand for trucks. Order bookings in Latin America remain at a low level, mainly due to the very uncertain situation in Brazil. In Eurasia, order bookings increased somewhat and Russia appears to have bottomed out. Demand for buses and coaches remains at a high level in Europe. In Engines, demand for industrial and marine engines is good, while remaining weak on the power generation side.The success of the new generation of Scania trucks has been immediate and the truck has outperformed the competition in all trade press tests it has entered. Nearly all aspects have been praised - the powertrain, performance, comfort, braking capacity, visibility and steering. Combined with Scania Maintenance with Flexible Plans, our new tailor-made service enabledby continual monitoring of connected vehicles' operating data, customerearning potential is enhanced. When every truck receives exactly the maintenance it needs, the customer enjoys maximum vehicle uptime.'

Contact persons Susanna Berlin
Investor Relations
Tel. +46 8 553 861 12
Mobile tel. +46 70 086 05 02

Erik Ljungberg
Corporate Relations
Tel. +46 8 553 835 57
Mobile tel. +46 73 988 35 57

Please see the attached file for the full report.