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Scania Year-?end Report January-?December 2021

Date:2022-03-21 Author:Sarah Source:www.nougun.com

The year 2021 for Scania has been characterised by record strong demand for trucks while we faced an extreme challenge in meeting this demand due to a shortage of components in the supply chain.

Scania Year-?end Report January-?December 2021

Summary of the full year 2021

• Net sales increased by 17 percent to SEK 146,146 m. (125,125)

• Operating income excluding items affecting comparability increased by 86 percent to SEK 16,523 m. (8,887)

• Operating income amounted to SEK 11,294 m. (8,887) and was negatively impacted by a provision of SEK 5,229 m. due to a General Court judgement relating to the European Commission’s competition investigation

• Cash flow amounted to SEK 5,688 m. (9,180) in Vehicles and Services

Comments by Christian Levin, President and CEO

“The year 2021 for Scania has been characterised by record strong demand for trucks while we faced an extreme challenge in meeting this demand due to a shortage of components in the supply chain. Together with our suppliers, the organisation has made an extraordinarily strong effort to get so many trucks out to our customers in such a difficult situation. The shortage of components, in particular of semiconductors, meant that we were forced to reduce our production volume during the third and fourth quarters of 2021. The production disruptions led to a loss of volume of trucks and increased costs. We have also faced increased costs for materials and freight in our supply and delivery flows. Despite this we continued to perform and both sales and earnings increased in 2021 compared to last year.

Despite a strong demand for trucks this is not fully reflected in the order intake as we were restrictive with the placing of orders in the fourth quarter due to already large order books and the production start of Scania’s new powertrain program. Vehicle deliveries decreased in the fourth quarter while the service business remained strong with an increase in revenue of 16 percent. Scania’s sales and earnings in Vehicles and Services increased in the fourth quarter compared to the preceding year. Our customers’ high activity levels is also reflected in the growing portfolio and low credit losses in Financial Services.

During the turbulent year of 2021, we remained focused on Scania’s decarbonisation commitment and we took several important steps towards sustainable transport. In the fourth quarter, we introduced Scania Super with a powertrain based on our new engine platform which provides fuel savings of at least 8 percent. Just like all our vehicles, it is prepared for operation on renewable fuels. We also launched our second generation of hybrids and plug-in-hybrids during the fourth quarter. In innovative partnerships with customers, we have also developed fully electric trucks for the heaviest applications, demonstrating that all applications are possible to electrify. Serial production of our e-offering; hybrids, plug-in-hybrids and fully electric trucks is now underway side by side with combustion engine vehicles on the production lines.

We are continuing to invest in electrification in order to drive this shift. In 2021, we increased our R&D investments and we are now investing more in technology linked to electrification than in traditional combustion engine technology. We have pledged to bring our customers at least one new electric product application in the bus and truck segment every year.”

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