Dear Suppliers,

Being a responsible business partner means ensuring that deliveries reach the customer at the right time.

At Scania, we take this responsibility in many ways. One of the most vital being constantly monitoring and mitigating risks in our supply chain.

Regardless of the challenges we may face, we stay fully committed to our production plan and customer promises.

Customers rely on our premium products to keep the society and the world economy rolling around the clock.

We see the challenges you are facing, and the hard work done in order to secure that demands are met. This is highly appreciated.

Please keep an eye on the forecast, and make sure to secure the mid to long term perspective as well as short term deliveries. Escalate in real time if there are any risks to your ability to deliver as per our demands.

If you have any questions, please approach your regular contact person.

Best regards,

Scania Purchasing and Logistics, 2021-02-18

Dear Suppliers,

We are in a phase of rapid growth and high production volumes. We are very well aware of the challenges this creates for everyone involved.

Behind all of our orders is a real customer. A customer that makes sure the wheels of society are kept running.

At Scania, we are fully committed to keeping our high output and deliver as per customer demands. All parts of our supply chain organization have been enforced to tackle the challenges we are facing, as we strive to reach that goal.

We urge you to do your utmost to make sure that you and your own supply chain is able to meet our volumes in the short as well as long term.

Please escalate in real time if there are any risks to your ability to deliver as per our demands.

If you have any questions, please approach your regular contact person.

Best regards,

Scania Purchasing and Logistics, 2021-02-11

Dear Suppliers,

This week we have no information requiring your immediate attention.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing and Logistics, 2021-02-04

Dear Suppliers,

As you are very well aware, we are going through a period of rapid growth and high production volumes.

The unexpectedly high surge in demand from Automotive, but also other sectors of the economy, has lead to constraints on all parts of the value chain.

The situation in the supply chain is challenging, and we are closely monitoring the situation in real time. Our organization has been enforced, all the way from operational to top management level, to handle all risks and disturbances that may occur.

At Scania, we are fully committed to the production volumes planned ahead and will do everything to keep the production rolling on these high production volumes.

The past year has shown the great importance of goods and person transports, together with power solutions, and it is clear to us that we are a major contributor to a functioning society.

As a solution provider, we want every customer to get their deliveries in time. We need your help in securing this.

Please help us secure our important deliveries, and in the end a prosperous result for us all.

As usual, please escalate in real time if there are any risks to your ability to deliver as per our demands.

If you have any questions, please take contact with your regular contact person.

Best regards,

Scania Purchasing and Logistics, 2021-01-28

Dear Suppliers,

Covid-19 remains a top risk even in 2021. Even if the situation is bad in many countries, we have been spared lockdowns affecting production and transport during the second half of 2020.

We are however now receiving signals of a hard lockdown in Tunisia, with impact on all companies and also forcing custom and harbour operations to close from today, Thursday the 14^th of January, up until Sunday the 17^th.

We urge you to swiftly assess the effects of this, and any other potential lockdowns, to your operations.

Please escalate in real time if there are any risks to your ability to deliver as per our demands.

If you have any questions, please turn to you normal contact person.

Best regards,

Scania Purchasing and Logistics, 2021-01-14

Dear Suppliers,

The year of 2020 was special in many ways, but we are proud to have managed so well despite all challenges along the road. This could not have been done without your tireless efforts, co-operation and positive mindset.

The UK has left the European Union without any greater disturbances and disruptions. This has once again been mitigated in an impressive manner with the help of your preparations and actions taken.

As for the spread of the Corona virus, we are still seeing the infection rates increasing and stricter countermeasures imposed in many countries. Here we may not rest until the pandemic is over and life goes back to a new normal. We are fully aware of the challenges in manning that may arise, and urge you to do all you can in order to keep the production rolling.

Two top risks affecting us right now is shortage of electronic components and steel. It is of vital importance that you secure your supply chains, and we will together do all we can in order to help you meet our demands.

Please escalate in real time if there are any risks to your ability to deliver as per our demands.

If you have any questions, please turn to you normal contact person.

Best regards,

Scania Purchasing and Logistics, 2021-01-07

Dear Suppliers,

One big risk we have in the supply chain right now is Brexit, and the disturbances that may occur after January 1^st 2021.

Right now there is no light in the end of the tunnel regarding a trade deal. Even if negotiations are ongoing in the last minute, positions are still far apart on a few important areas between UK and the EU, and the likelihood of a no-deal remains very high.

Even if an agreement is reached in the last minute, there will be little time to make sure it enters into force in time before January 1^st 2021. We will therefore have to count on disturbances in the trade between the Kingdom and the Union.

Please make sure that you and your entire supply chain are ready for this, having all the documents, processes and material buffers needed in place in good time.

Please do not miss the 23^rd webcast, to be published within short! In this, we have a special message from one person that is very much looking forward to our joint deliveries of premium products.

If you have any questions, please turn to you normal contact person.

Best regards,

Scania Purchasing and Logistics, 2020-12-17

Dear Suppliers,

We are glad to announce that we are going for record levels in our production!

The main driver for this is of course the really strong market demand we have seen in the previous quarters, and believe will continue coming months.

We do however need to tackle the challenges in the supply chain. The automotive industry is one of complex value chains and dependencies. We are now seeing tendencies of a constraint in electronic components as well as high quality steel and other raw materials. This needs to be address, and we expect you to safeguard your own abilities as well as those of your suppliers.

We will do this together, standing side by side to ensure the coming year will be prosperous for us all!

Please do not miss the 23^rd webcast, planned to be published next week. In this, we have a special message from one person that is very much looking forward to our joint deliveries of premium products.

If you have any questions, please turn to you normal contact person.

Best regards,

Scania Purchasing and Logistics, 2020-12-10

Dear Suppliers,

Today we want to share some really good news with you!

Market development has been significantly better than expected just a couple of months ago.

As you all remember, we have had a strong increase in production volumes during the last months. We have delivered on these volumes, and the orders to you have been firm.

Having a high service level and making sure to deliver as per customer demands is of course the best way to gain confidence in the market place and new business for us all.

High order book levels in combination with strong order intake allows us to yet again increase our production volumes.

The increases are significant and affect both our production systems, in Europe as well as in Latin America. This time we will really stretch our global production to deliver on highest possible volumes.

This means we will need your strong commitment and tireless efforts in securing material availability and a production free from disturbances and disruptions.

We are facing the same challenges as you in regards to strict distance, hygiene and quarantine regulations. This is however a great possibility to recover from the financial blows suffered during the year 2020.

Next week we will publish a webcast on this topic. Do not miss it!

We urge you to closely analyse the delivery schedules sent to you, and escalate in real time if you foresee any risks in your ability to deliver as per our demands.

As usual, we are hoping for your co-operation and expect you to contact us in real time if you see any risks in your ability to deliver as per our demands.

For detailed questions and enquiries, please turn to your regular contact person.

Best regards,

Scania Purchasing and Logistics, 2020-12-03

Dear Suppliers,

The Christmas holidays are approaching, and we would like to remind you to have a close look on the production schedules sent to you to make sure you have the right information regarding parts needed for our production units. Your production and goods dispatch needs of course to be adjusted accordingly.

As you are very well aware, we are now in the summer period on the southern hemisphere, and our production in Latin America will therefore close for three weeks for their summer holidays. This is also reflected in the schedules and pick-ups for Latin America will still occur around the European holidays due to the transport lead-time.

Please make sure to utilize all available time in the coming weeks and months to ensure you produce according to our demands.

Also, make sure to take time for planned maintenance and services, as well as inspection of tools and machinery.

Please do not miss the 22nd webcast, planned to be published tomorrow Friday the 27th of November. In this, you will gain insights into our Latin American production system as well as a message from our business development team at Purchasing.

If you have any questions, please turn to you normal contact person.

Best regards,

Scania Purchasing and Logistics, 2020-11-26

Dear Suppliers,

Conditions in the production environment are dynamic. We are all affected by the impacts of Covid-19 and changing pre-conditions.

Our production plans do however stay firm, and we have a great need to rapidly supply our customers with premium products.

We urge you to have a detailed overview of our demands, and the increases that are reflected in them during the coming months. No additional increases are decided yet, but we have a steep ramp-up ahead of us. In this, we will need the help of all of you.

Please make sure you have a good plan going forward, especially around the Holiday season at the end of the year. If possible, use days when Scania has no production to build necessary buffers. This includes buffers to tackle possible Brexit-related disturbances.

Also, make sure your own suppliers are able and willing to make this journey as well.

If you have any questions, please turn to you normal contact person.

Best regards,

Scania Purchasing and Logistics, 2020-11-19

Dear Suppliers,

Due to the challenging circumstances, we are now seeing some constraints in the supply chain.

Even if there are some risks and minor disturbances, we are following the production plans and ramping up to meet our customer demands with the volumes previously announced and reflected in the plans sent to you.

We encourage you to make sure your own supply chain, production and deliveries can continue as per our demands.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing and Logistics, 2020-11-12

Dear Suppliers,

With the second wave of Covid-19 in Europe, many of you are facing constraints in your production. With that comes questions regarding future needs and volumes.

From our side, we would like to reassure you that our production plans ahead stay firm. We have a large order book, and intend to produce as per production plans sent to you. Daily plans are flexible, but the orders and resulting material need is real.

Please let us know if your ability to deliver is at risk in any way.

If you have any questions, please turn to you normal contact person.

Best regards,

Scania Purchasing and Logistics, 2020-11-05

Dear Suppliers,

We now see a more clear tendency of a second wave of Covid-19 in Europe. Several countries are taking stricter measures to prevent and control the spread.

Please let us know if your ability to deliver is at risk in any way.

Like mentioned in the 21 webcast, released last week, we will do this together and stand ready to support you when needed.

Make sure that you have access to raw material, and that your supply chain is in a condition to fulfil customer demands. In some cases, it might be wise to proactively contract short term labour services in case it is needed with short notice.

If you have any questions, please turn to you normal contact person.

Best regards,

Scania Purchasing and Logistics, 2020-10-29

Dear Suppliers,

Following the situation in the first haft of 2020, our production volumes have increased in several steps. The reason is of course a high order intake and favourable market conditions in the near term combined with the backlog built up during the production stop.

Scania has a very high level in the order book and in the coming months we have a need to produce on volumes close to all time high in Europe as well as in Latin America.

This needs to be balanced with the situation in our own production as well as at yours. The abilities of the entire supply chain together with risks and challenges ahead also need to be considered.

This will be the theme of our 21^st webcast, released within short. Do not miss the great insights and messages conveyed!

Best regards,

Scania Purchasing and Logistics, 2020-10-22

Dear Supplier,

During the last weeks, you have received information via EDI regarding our plans to produce on a high production rate till end of this year as previous communicated.

Mid-October and onwards is also the start in preparations for the Christmas period.

Please make sure that you are able to deliver according to our demand which is updated according to our production days. This demand is daily updated in our delivery schedules. We encourage you to do a thorough assessment of your abilities regarding your own production, the capabilities of your suppliers and status of inbound transports.

Scania will keep evaluating the global production situation week by week. We will keep you updated with the latest developments at the Scania Supplier Portal: https://sspacceptance.prod.aws.scania.com.

If you foresee any problems with our demands around the Christmas period, please start the dialogue with your regular contact person about a potential solution well before 2020-10-21.

Best regards,

Scania Purchasing and Logistics, 2020-10-15

Dear Suppliers,

This week we have no information requiring your immediate attention.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing and Logistics, 2020-10-08

Dear Suppliers,

The ninth round of negotiations between EU and the UK is current ongoing in Brussels this week.

No final decision has been taken, but all options are still on the table. Connected risks therefore need to be assessed, monitored and managed.

In the event of a hard Brexit, we foresee some short-term risks with the potential to disturb our ability to produce according to plan. This is mainly connected to slow handling at customs and long queues at the EU-UK border, in combination with inexperience of export procedures across all involved in the supply chain.

As trusted suppliers and business partners, we expect you to take into consideration all the potential changes in laws, regulations and export procedures induced by Brexit. This includes of course the abilities of your own suppliers and the transport network in to your production. Many of you have worked hard with this already, which is appreciated.

We will of course closely monitor the developments in this matter, and keep you informed of status and expectations from our side.

Please note that Brexit is not considered a force majeure event, neither under contracts entered into with Scania nor under applicable law.

As usual, we are hoping for your co-operation and expect you to contact us in real time if you see any risks in your ability to deliver as per our demands.

For detailed questions and enquiries, please turn to your regular contact person.

Best regards,

Scania Purchasing and Logistics, 2020-10-01

Dear Suppliers,

This week we are happy to announce that we have taken decision on yet another production volume increase.

Once again, it is the Latin American production that is subject to an increase of trucks produced.

Productions schedules have been sent to all suppliers of our Latin American facilities with start Tuesday the 22^nd of September.

Preparations for the equally challenging increase in the European production system are proceeding as planned.

As usual, we are hoping for your co-operation and expect you to contact us in real time if you see any risks in your ability to deliver as per our demands.

For detailed questions and enquiries, please turn to your regular contact person.

Best regards,

Scania Purchasing and Logistics, 2020-09-24

Dear Suppliers,

The year of 2020 has so far been dominated by the Coronavirus and its impact on the economy as well as the health and wellbeing of all those around us.

There is however a need to also take other large risks into consideration. One of those are Brexit, set for December 31^st 2020.

Seeing the development in the negotiations as well as statements by leading politicians and decision makers, Scania is seeing a need to prepare for a possible hard Brexit.

In order to make sure you are able to deliver to Scania demands, we urge you to make all necessary preparations for this event. This was done by many of you in 2019 as well.

A thorough analysis must consist of a risk assessment of your own abilities and the ones of your suppliers. Please also make sure you have the proper export documentation in place throughout the supply chain.

We are here to help you with any questions or queries that you might have. All communication channels are open, and we expect you to contact us and escalate in real time when needed.

For detailed questions and enquiries, please turn to your regular contact person.

Best regards, Scania Purchasing and Logistics, 2020-09-17

Dear Suppliers,

During your analysis of the latest productions schedules, sent to you starting last Thursday, you will have noticed that we have a big increase in production volumes.

As stated in the latest Scania Production Outlook Webcast, published on the Scania Supplier Portal, we have high expectations on you as suppliers in helping us with handling this great task.

Ramping up now will mean a comeback from the crisis situation induced by the Coronavirus, and will necessitate working with your own abilities as well as the ones in your supply chain.

You are chosen as suppliers to Scania for a reason – you are amongst the best in the game! The order book is real, and we need your support in capitalizing on this high market demand.

We are here to help you with any questions or queries that you might have. All communication channels are open, and we expect you to contact us and escalate in real time when needed.

For detailed questions and enquiries, please turn to your regular contact person.

Best regards,

Scania Purchasing and Logistics, 2020-09-10

Dear Suppliers,

This week, we want to give you more information on the progress regarding our demand coming months.

The year 2020 has so far been one of changing pre-conditions, where we have all been forced to change plans times and again.

Before going into details, we would first of all like to remind you that visibility in the longer term remains somewhat blurry. Coming months, however, we see the developments described below in the business.

In general, the truck market is somewhat stronger than we anticipated a couple of months ago. This has continued during the European vacation period, where the order intake has been better than predicted. This has added to the high order book level, which is already impacting the lead time to our customers.

Furthermore, we are strong in markets geographically remote from our production units. This adds to the importance of a short lead time in the entire supply chain.

During the analysis of production schedules, sent to you starting Thursday this week, you will see that we have yet another increase in volumes coming months.

Apart from the increase for Engines and Trucks in Europe, we are glad to increase production volumes for Trucks in Latin America as well.

The favourable conditions in Latin America, with a high willingness to invest in commercial vehicles, are partly due to the currency situation. Another contributing factor is the good harvest from Brazilian agriculture, leading to strong business for related products.

We urge you to closely analyse the delivery schedules sent to you, and escalate in real time if you foresee any risks in your ability to deliver as per our request.

Please revert back your feedback to your regular contact based on latest schedule by 10^th of September 14:00 CET.

We will continue to keep you updated on the latest news and decisions and we encourage you to take part in all of our supplier communication channels. Do not miss out on the important information conveyed in the 20^th Scania Production Outlook Webcast published today!

Going forward, we are expecting your full support and commitment in delivering according to Scania demands and of course escalating in real time when needed.

For detailed questions and enquiries, please turn to your regular contact person.

Best regards, Scania Purchasing and Logistics, 2020-09-03

Dear Suppliers,

In order to meet our customers demand, we are continuously assessing the market development, monitoring the development of the order book and balancing our production accordingly. In the short to midterm view we want to capitalize on the current high market demand and a high order book, and we see this as an opportunity to recover for all of us in the commercial vehicle industry.

We will continue to keep you updated on the latest news and decisions and we encourage you to take part in all of our supplier communication channels plus keep a close eye on our delivery schedules.

Going forward, we are expecting your full support and commitment in delivering according to Scania demands and of course escalating in real time when needed.

For detailed questions and enquiries, please turn to your regular contact person.

Best regards, Scania Purchasing and Logistics, 2020-08-27

Dear Suppliers,

As stated in the previous update, sent just before the vacation period, we have been showing since the 9^th of July higher volumes to meet our customer promises for the European production units. On top of the previous letter we would like to give an update on the situation of our plants in Latin America:

The economic outlook in Brazil is currently improving due to a reduction in interest rate and updated forecast of GDP growth to a higher level. To cope with our customer needs, Scania decided to increase the basic rate in the SLA production units as of October. This is reflected in the schedules sent to you on the 11^th of August.

The world economy, and with that the demand of Scania products, is however still volatile for SEU and SLA production in general. There is a need of flexibility throughout the commercial vehicle value stream, and plans for the mid-term may be subject of change before we reach a market stability in the mid to long term.

The impact of a basic rate increase in SLA may vary on part number level, and the demand does not always increase linearly with increased production volumes. Apart from the basic rate, customer specifications and product mix affect the demand variations on the part number level.

We urge you to closely analyse the delivery schedules sent to you today or coming days, and escalate in real time if you foresee any risks in your ability to deliver as per our request.

Please revert back your feedback to your regular contact based on latest schedule by 17^th of August 14:00 CET.

Scania Purchasing and Logistics, 2020-08-14

Dear Suppliers,

The first half of this year has come to an end. With the vacation period in front of us, we are now fully focused on stopping the production in a structured way and preparing for the autumn.

This year has been full of surprises, and plans have had to be revised time and again. We thank you for your flexibility and co-operation. Demand for trucks in Europe and engines worldwide has exceeded our expectations, and the order book has passed the desired level. This is of course good news, but has also lead to increased lead times to our customers.

To keep our customer promises, Scania has decided to increase the basic rate in its European production of trucks and engines. This is reflected in the production schedules sent to you from today the 9th of July.

The world economy, and with that the demand of Scania products, is however still volatile. There is a need of flexibility throughout the commercial vehicle value stream, and plans for the mid-term may be subject of change before we reach a market stability in the mid to long term.

The impact of a basic rate increase may vary on the part number level, and the demand does not always increase linearly with increased production volumes. Apart from the basic rate, customer specifications and product mix affect the demand variations on the part number level.

We urge you to closely analyse the delivery schedules sent to you today or coming days, and escalate in real time if you foresee any risks in your ability to deliver as per our request.

Please revert back your feedback to your regular contact based on latest schedule by 13th of July 14:00 CET.

We wish you a nice summer, and are looking forward to continuing our excellent co-operation when we are back in mid-August.

Scania Purchasing and Logistics, 2020-07-09

Dear Suppliers,

This week we have no information requiring your immediate attention.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing and Logistics, 2020-07-02

Dear Suppliers,

We have now sent out production schedules reflecting the increase in operational rate for parts of our production system during coming twelve months. The increases are mainly for Trucks in Europe and Engines globally.

If you see potential deviations in the plans, please turn to your contact person at Material Planning.

Please make production plans according to the volume communicated. If you see any risks to your ability to deliver to Scania, please let us know as soon as possible.

Scania Purchasing and Logistics, 2020-06-25

Dear Suppliers,

The Corona crisis has left no one untouched, with Scania and you as our suppliers as no exception.

After re-starting production at Scania, the ramp up was followed by the ongoing front loading, meant to decrease the backlog and customer lead time. This is proceeding as planned.

We are seeing an increased demand for Trucks, especially in the markets served by our European production system. There is also an increased global demand for industrial and marine engines.

Going forward, we are counting on your support in reaching a new normal situation. We are aiming for higher volumes during autumn and next year, which will be reflected in the production schedules coming days.

If you see any risks to your ability to deliver to Scania, please let us know as soon as possible.

Scania Purchasing and Logistics, 2020-06-18

Dear Suppliers,

Our weekly evaluation is still ongoing and it shows that we have a good supply chain capability in the coming weeks. A work in which you have had a great part, and we thank you for the commitment and co-operation in these challenging times!

Due to an error in our EDI schedules send from Scania Transmission (DT), we’ve had challenges showing the right figures towards you as supplier. Due to these changes you will see an increase on short notice as of week 25/26.

All other Scania plants are not affected by this error. For all Scania plants we’ve finalized the summer holiday preparations resulting in correct schedules.

Please note, any closure from you as supplier outside one of the Scania units closure will create a peak before your closure.

Therefor we request you to verify the latest schedule from all plants including Latin America and refer back to your regular contact at Scania in case of any (potential) risks latest Monday June 15^th 12:00.

To summarize:

• Corrected schedules for Scania Transmission as of June 11^th,
• Holiday preparations finalized,
• Please verify the schedules from the 11^th of June,
• Escalate in case of any (potential) risks towards Scania latest June 15^th 12:00.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing and Logistics, 2020-06-11

Dear Suppliers,

First of all, we would like to thank all of you, who have done your best in this special and very different period of time.

Together we have carried out both an unplanned close-down and a start-up of our entire production worldwide, something that has never happened before. Both activities were done in a controlled manner and were successful only thanks to excellent co-operation with and support from you.

We are now ready to take the next step and run full speed in the European production system starting next week. Together with all of you, we hope to succeed in this challenge as well.

Latin American market demand remains sluggish, and measures are taken to ensure a continuity in this important region as well.

The pre-requisites for running an industrial operation still varies greatly within and between countries. We therefore once again urge you to make sure not only you yourselves, but your entire supply chain has the capabilities to ensure your deliveries as per our demand.

If you see any risks to your ability to deliver to Scania, please let us know as soon as possible.

Scania Purchasing and Logistics, 2020-05-28

Dear Suppliers,

After a successful start-up of our global production, we will continue with our ramp up as planned. During the last days, you have received information about Scania’s plans to increase the European production volume of trucks during mid-June to mid-July.

The period of mid-July onwards is also the start of the Summer period. Scania will start the preparations to analyse and stabilize our supply chain around the Summer period.

Please make sure that you are able to deliver according to our demand. This demand is daily updated in our delivery schedules. We encourage you to do a thorough assessment of your abilities regarding your own production, the capabilities of your suppliers and status of inbound transports.

Scania will keep evaluating the global production situation week by week. We will keep you updated with the latest developments at the Scania Supplier Portal.

If you foresee any problems with our demands around the Summer period, please escalate this to your regular contact persons before 29-05-2020.

Starting next week, this channel will be updated once per week on Thursdays.

Scania Purchasing and Logistics, 2020-05-20

Dear Suppliers,

After the successful ramp up of our production, we are preparing for higher output from June onwards. This is of course reflected in the call offs you receive.

Even if the situation is stabilizing or improving in many countries, there are still question marks and strict regulations ongoing in others. This may limit your own capacity, or that of your supply chain.

If you are at all hesitant about your ability to deliver according to our demands, please let us know as soon as possible.

Scania Purchasing and Logistics, 2020-05-19

Dear Suppliers,

We are seeing a stabilizing situation now that we are starting to leave the most acute phase of the Corona-crisis.

This channel, the Daily Supplier Information, was created to provide you with critical updates in a time where conditions and facts were changing by the minute.

As we proceed on our way to a new normal situation, the decision has been taken to decrease the frequency of these updates. Going forward, this channel will be updated twice per week on Tuesdays and Thursdays.

We are eager to keeping up the great co-operation and communication built up over the years, and hope to continue the excellent collaboration.

Scania Purchasing and Logistics, 2020-05-18

Dear Suppliers,

We have more clarity on the planning of the increased operational rate in mid-June to mid-July.

The decision has been taken that our chassi end-assemblies in France and the Netherlands will be open for production during cw 29.

This will be reflected in productions schedules on next Friday, May 22^nd, at latest. That will significantly increase granularity of the call offs.

We urge you to also take part of the information in our 18^th Production Outlook Webcast, published at the Scania Supplier Portal.

In this edition, we go through the current situation in our production and supply chain. We also have a brief look at our plans for the near future.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing and Logistics, 2020-05-15

Dear Suppliers,

We have now sent out production schedules reflecting the increase in operational rate during mid-June to mid-July.

As previously communicated, the distribution at the end of the period is not yet set. This means you will see a large batch of orders for the end of the period.

The overall volume is real and represent the amount of vehicles planned to be produced, but the distribution and exact product mix for the last weeks is not yet reflected.

If you see potential deviations in the plans, please turn to your contact person at Material Planning.

During next week, you will receive a more granular and better distributed volume forecast.

To summarize – please make production plans according to the total volume, and we will correct the distribution during next week.

Do not miss the 18th Scania Production Outlook Webcast, released in a couple of hours!

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-05-14

Dear Suppliers,

Today we have no information requiring your immediate attention.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-05-13

Dear Suppliers,

Starting today we will begin to send out updated production schedules. These will reflect the previously communicated short term increase in operational production rate.

Please pay close attention to the details in the call offs, and make sure you are able to deliver according to these. This is very important, as this is Scanias way to secure customer orders according to our promises. It is also a great way to increase the global economic activity, and our as well your cash flow and earnings.

If you are in any way hesitant regarding your ability to deliver according to our demands, please do not hesitate to contact us as soon as possible.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-05-12

Dear Suppliers,

Being part of the Automotive ecosystem means you are bringing value to people and societies round the clock, every day of the year. Together we are responsible for products and services that keep up the flow of people and goods, ensuring vital functions and in the end making sure the wheels of the global economy can keep rolling.

Seeing our increased demand coming months, we urge you to make a  thorough analysis of your ability to deliver according to our demand. Please make sure your own production, your suppliers and inbound transports are all set for the challenge. Do not hesitate to contact us  with any escalations or issues requiring our support or information.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-05-11

Dear Suppliers,

During the last days, you have received information about our plans to increase the European production volume of trucks during mid-June to mid-July. First of all, we would like to thank you for your invaluable input in the assessment of the supply chain capability in this proposal!

A decision has now been taken in this matter, and we are happy and proud to announce that we have a GO!

This will mean a volume increase of around 25 % during five weeks. The impact on part number level will of course vary. Latin American suppliers delivering to the European system need to pay special attention to the different demands on the two continents.

Starting Tuesday and latest Wednesday next week, you will receive updated production schedules that reflect this decision. The volume for the end of the period will be shown as a large batch, but will be updated and refined with exact dates the following days.

We urge you to make all preparations necessary to deliver according to this new information. If needed, please escalate as soon as possible.

We are looking forward to a great co-operation and your full support!

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-05-08

Dear Suppliers,

We want to thank you for your support in our assessment of the possibilities to have a higher operational rate in production during mid-June to mid-July.

This can of course only be done with the support of the entire supply chain.

Some of you may have been contacted with specific questions. If you have not yet been able to answer these, we urge you to make sure to let know your input as soon as possible.

We hope for good news, and will of course let you know as soon as a decision is taken in the matter.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-05-07

Dear Suppliers,

The re-start of our production is going as planned. The ramp up will go on as planned, and we see that we will have high volumes in Europe for June onwards. Latin American market demand remain sluggish.

Please make sure that you are able to deliver according to our demand. We encourage you to do a thorough assessment of your abilities regarding your own production, the capabilities of your suppliers and status of inbound transports.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-05-06

Dear Suppliers,

The Corona crisis has had a huge impact on daily life and all of our societies, leading to a significant blow to global economy and the demand of our products.

With a stabilizing situation and re-start of our production, we see a demand exceeding the levels we expected some weeks ago.

We need to cope with a big backlog, large order book and long lead times. Several alternatives are assessed in regards to this. Together with a higher operational rate during a couple of weeks in the summer, which has been previously communicated, we are also looking at what can be done regarding the summer vacation in Europe.

If and when changes to the summer vacation becomes a viable option to Scania, we will of course involve you in the assessment of such an idea. We will continue to keep you updated with the latest development.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-05-05

Dear Suppliers,

The Corona pandemic has had an immense impact on all of our societies, and has led to a standstill in worldwide automotive production.

Scania is proud to have been able to be one of the last OEMs to close, and one of the first to re-start, our global production. This is of course a consequence of the great support we have from you, our suppliers and valued business partners.

Our ramp-up is going according to plan, and the demand is high in the short- to mid-term. To cope with this demand, leading to a big backlog of customer orders and increased lead times, we now propose a higher than planned volume output of trucks during the weeks cw 25 until cw 28 2020. If this becomes reality, new delivery schedules will be sent our duringcw 20 and 21. This means increased deliveries of parts to these higher volumes will startcw 22.

During this period, the demand will be increased by around 25 % on average for truck components. The effect will of course vary on part number level. A detailed analysis is ongoing and you will, during the coming days, be contacted by a representative from Scania Purchasing in cases where we see a significant increase on the part number level.

It is of outmost importance that you thoroughly investigate your entire supply chain, ability to produce and deliver according to this.

Please contact your regular contact person at Scania Purchasing no later than 2020-05-05 if you foresee any problems with increasing deliveries to Scania with 25% compared to current EDI schedules.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing 2020-05-04

Dear Suppliers,

After an initially successful start-up of our global production it is now time to look forward and go into post-crisis mode. While the long term outlook is still volatile, we have a fairly good understanding of the demand and supply situation regarding the short- to mid-term.

We have experienced some disturbances due to some unforeseen, not Corona-related, events in the supply chain. Previously communicated suggestion regarding a more aggressive ramp-up during May will therefore not be realised.

Scania is however strongly committed to volumes communicated June onwards, and we are seeing a stronger than expected demand coming months. A plan to cope with this increase is currently under construction. You will, as important business partners, of course be involved in this in the coming days and weeks.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-04-30

Dear Suppliers,

Scania remains committed to the production plan set up in co-operation with all of you. We will ramp up the production during April and May, and are striving to get back to a normal situation as soon as possible. The demand and supply sides both support this ambition.

Please continue to follow our call offs and make sure you are able to deliver according to them.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-04-29

Dear Suppliers,

Today we have no information requiring your immediate attention.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-04-28

Dear Suppliers,

All of our industrial operations in the European and Latin American production system will be up and running this week. The ramp-up is going as planned, and we are glad to be part of setting the global automotive industry in motion again.

Governmental regulations are easing in many countries, enabling a resumption of industrial operations. Many of you are in the re-start phase or planning for a start in the coming days. We encourage you to ensure that you are able to deliver according to our demands.

If you know of any constraints in, or risk to, your ability to deliver, please let us know as soon as possible.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-04-27

Dear Suppliers,

The first week of our re-start of production has progressed according to plan. Next week we plan to have all production units in Europe and Latin America running again.

Making long term forecasts is still difficult, but we do however see a strong demand in the short- to mid-term. We are counting on your support to be able to deliver to our customers, bearing in mind that our products are vital to the function of society. As you re-start and plan for the coming weeks and months, we ask you to make plans that are flexible and open to a hopefully brighter market situation.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-04-24

Dear Suppliers,

The start-up of our European production is progressing as planned.

Next week, our Latin American production system will also re-start operations.

Please make sure that you are ready to deliver as per request to all our production sites and aftermarket operations.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-04-23

Dear Suppliers,

The ramp up of our European production is proceeding as planned. The preparation work done together with you has paid off. Thank you for that!

We are also seeing a higher than expected customer demand for our products. The market is still very volatile, but the signals we are getting for the mid- to long term are positive.

With both a successful ramp and a high demand in mind, Scania proposes a more aggressive ramp up of the production during cw 20-22. This will of course be evaluated in close co-operation with you. Information will be continuously shared and updated.

You will receive updated delivery schedules starting tomorrow and Tuesday morning 2020-04-28 at latest. Please pay close attention to these and escalate in real time if needed.

As you are also getting back and re-starting your operations, we ask you to continue with engineering and R&D efforts to maintain momentum in all development projects. These will be of outmost importance going forward.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-04-22

Dear Suppliers,

This week we are beginning to re-start our plants in Europe. Some were started yesterday, and others will follow today and coming days. All according to previously communicated plans.

We hope that this marks the end of the productions stops at Scania and your operations. Together we hope to get the wheels rolling according to customer orders and ramp up as smooth and swift as possible.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-04-21

Dear Suppliers,

We are glad to be able to start up our European production this week. Our analysis, done in close co-operation with You, shows that the supply chain is ready for this modest re-start.

Please make sure to continuously take part of information in this channel and others. Pay special attention to production schedules, as these may be subject to change due to volatility in the business environment around the world.

We are really looking forward to be able to get the wheels rolling again, and eager to continue our excellent co-operation and communication with You.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-04-20

Dear Suppliers,

We have detected that some orders in our packaging system Embasy are not correct, and created to target outdated production plans. To avoid emptying our packaging pools, we need to delete orders created before 2020-04-03.

If You have any questions related to this, please contact packaging.planning@scania.com or call +46 8 553 714 44 if urgent during office hours.

We will plan orders created after 2020-04-03 as usual, with some delays due to the situation in Europe.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-04-17

Dear Suppliers,

Today we have no information requiring Your immediate attention.

As we will soon start up our European production again, You are requested to focus all Your attention on securing Your ability to deliver as per our requests.

For detailed inquiries, please turn to Your regular contact persons.

Scania Purchasing, 2020-04-16

Dear Suppliers,

Scania remains committed in our attempt to re-start the European production 2020-04-20. The Latin American production will follow one week after.

Minor details in the plan have been updated. You are asked to thoroughly review all production schedules received.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-04-15

Dear Suppliers,

Restrictions imposed by local, regional and federal governments due to the Corona virus have been changed and/or prolonged in some countries during the last few days.

Please assess Your ability to deliver as per Scania demands. If Your plans or capabilities are affected, please let us know as soon as possible.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-04-14

Dear Suppliers,

Today members of Scanias Executive Board has a message for all of you in an extra webcast.

The video will be uploaded to the Scania Supplier Portal, SSP, within hours. Please take part of the message!

For detailed inquiries, please turn to your regular contact persons.

Wishing You all a Happy Easter!

Scania Purchasing, 2020-04-09

2020-04-08

Dear Suppliers,

Today, we are happy to be able to give You some good news just before Easter!

As earlier mentioned, Scania has made a thorough assessment of our ability to start up production. A work in which You have had a great part, and we thank You for the commitment and co-operation in these challenging times!

Our evaluation shows that we have a good supply chain capability in the coming weeks. The decision has therefore been taken to, as earlier proposed, start up the European production on 2020-04-20 however the assessment show some challenges for our Latin America production and hence the restart of our Latin American production has been re-scheduled to 2020-04-27.

We ask You to make all preparations necessary to follow this plan. For Europe, You have received productions schedules that show a ramp up of the production in April and May. Please follow these, and rest assured that this plan is fixed from our side. Latin American production demand will, due to their prolongation of the production stop, be updated 2020-04-09.

We strongly believe that transparency is the key to success for us to be able to handle this situation in the best way together. As You are very well aware, we are now in a situation where predictions of the future are very hard to make. June onwards offers low visibility in demand and capacity. Therefore, we have implemented a decision structure where coming volumes are planned every week instead of monthly.

Strategic product development projects at Scania continue as planned, and we ask you to make sure Your R&D, engineering and other departments concerned follow the plans already set up.

Apart from the daily communication, which we strongly encourage You to keep up, You will receive a letter from Scania Logistics and a phone call from the Purchasing department during next week. We also encourage You to regularly visit the Scania Supplier Portal (SSP) for daily updates on the situation. Finally, we will soon launch an extra webcast in which representatives from the Scania Executive Board will give You their views on the situation.

If You have any hesitations about Your ability to fulfil set requirements, please escalate through established channels as soon as possible.

So, to summarize the situation:

• European production re-starts 2020-04-20
• Latin American production stopped until 2020-04-27
• Production schedules for April and May to be followed
• June onwards offer low visibility
• Plan for product development projects to be followed

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-04-08

Dear Suppliers,

Today we have no information requiring your immediate attention.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-04-07

Dear Suppliers,

Today we have no information requiring your immediate attention.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-04-06

Dear Suppliers,

Scania is now in the midst of preparing for a smooth and swift ramp up in order to return production to normal situation. Our ability to start up as per earlier mentioned is being assessed.

One great part in this has been contacting You in order to gather information. That is now being consolidated and analysed to get an overview of the current supply chain situation.

As part of this work, You may be contacted again for clarifications or additional information. Please keep up the excellent co-operation we have throughout this process.

You should by now have received updated production schedules. Please take part of these and make all necessary preparations to be able to deliver according to plan.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-04-03

Dear Suppliers,

Scania now has a more detailed plan for the ramp up of our global production system. We are currently in the process of sending You detailed production schedules. Please take part of these and read through carefully.

As You go through the plans You will find that our PRU:s have different start up dates and weekly schedules for the first weeks. This is reflected in the call-offs. In order to make the transition as smooth as possible, we will start with a significantly lower takt than before the production stop during the first days.

We encourage You to assess the capability of Your suppliers to start up as part of Your own ramp up plans.

In case You see that You are not able to deliver to our demands on time and with expected capacity, please escalate as soon as possible.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-04-02

Dear Suppliers,

Yesterday we informed that the re-start of our European production has been postponed until 2020-04-20.

In order to prevent call offs and pickup dates for previously planned production cw 16 (2020-04-14 until 2020-04-17), the delivery schedules have been updated. For the time being, we ask you to focus only on the fact that there will be no production before 2020-04-20, and not on the details in the updated production plans. These will be updated in the coming days to better reflect Scanias ramp up plan, which is meant to ensure a smooth start up for You as well as for us.

Please note that we will have call offs and pickups during weeks 15-16 in order to secure production start for European production at 2020-04-20.

The Latin American production will, as previously informed, resume operations starting 2020-04-13. Please keep deliveries from Scania Latin America according to schedules, since NBF (North Bound Flow) and aftersales operations are up and running.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-04-01

Dear Suppliers,

Due to recent developments, we have to postpone the re-start of our production one week. New planned date for production start-up is now 2020-04-20.

As before, we will continue to monitor the situation in real time. Decisions will be taken as needed as we proceed. As always, Your input is invaluable in this work.

New delivery schedules will be visible in the system as from April 1^st. Please change Your production and delivery plans accordingly. If You are not able to deliver according to our request, please notify us as soon as possible.

Keeping in mind the vital transports and energy generation that our products make possible, please continue to keep up deliveries to our aftermarket operations.

For detailed inquiries, please turn to your regular contact persons at Material Planning and Purchasing.

Scania Purchasing, 2020-03-31

Dear Suppliers,

The work for preparing the production start-up is continuing and you are already in contact or you will soon be contacted by personnel from the Purchasing department. Please be aware of and prioritise this work so that we are able to make an assessment of our ability to start.

For detailed inquiries, please turn to your regular contact persons.

Scania Purchasing, 2020-03-30

Dear Suppliers,

During the production close down, 2020-03-25 to 2020-04-14, some goods receptions will be open for unloading but possibly with limited time slots and changed opening hours.

For automotive parts, please stay in touch with your regular contact person at Material Planning.

For deliveries of non-automotive products scheduled during the shutdown we ask you to, before delivery, contact the Scania reference person stated on the purchase order to verify that the appointed goods reception is open on planned date and time.

Scania is preparing for restart and we need your input to this. You will be contacted by personnel from the Purchasing department starting as from today.

Thank you!

Scania Purchasing, 2020-03-27

Dear Suppliers,

Starting next week, 2020-03-30, Scania in Sweden will start short-term work allowance. This means that our white collar employees will work 40 % of their normal working hours.

For Scania Purchasing, this will mean that purchasers are here Tuesdays and Wednesdays as a general rule. We will of course have people here every day to handle urgent cases.

Material Planning will be fully operational as usual, but with reduced work force.

Please don’t hesitate to take contact through normal channels! You will be referred to another contact person if needed.

Thank you!

Scania Purchasing, 2020-03-26

Dear Suppliers,

We are rapidly entering a new reality, where many of You either have or are planning to close down production. As you know this is, with some exceptions, the case for Scania as well.

In todays letter, we would like to further emphasise the great importance of working spare parts flows. We are already experiencing some difficulties getting parts to our after market operations, and fear this will accelerate in the near future.

As you are very well aware, Your products are not only used to build vehicles and engines but are also essential in the continuous operation of these. To keep our societies going, it is absolutely necessary to have parts ready and available when needed.

Please make sure to continue to take part of daily delivery schedules and call-offs. In case You are not able to deliver as requested, we ask You to escalate through established channels in real time.

In case regulatory limitations are keeping You from producing or delivering critical parts, please let the proper authorities know that the production is system critical. This might be a help in getting support as well as permissions to carry on with Your necessary work.

Thank you!

Scania Purchasing, 2020-03-25

Dear Suppliers,

The unpredictable and unnormal situation in industrial production and supply chain induced by the Corona crisis has led to challenges for all of us. We would like to thank You all for taking Your responsibility and keeping up an excellent co-operation during these hard times!

We are, apart from our owners and employees, very much concerned with the challenges of our valued business partners and the societies of which we are part. We strive to be an excellent business partner and responsible corporate citizen.

Please bear in mind that the transport system, which we are all part of, is vital to keep our societies running. Transport of medicines, blue light services and public transport are some of the important operations in which Your and our products play an important part. We must all make sure to do what we can to keep the products, that make these deliveries possible, function at all times. And not to forget the Scania engines providing with stand-by electric power generation.

We ask you to keep on delivering according to updated delivery schedules and call-offs, to help us maintain a leading service and repair organization. This is very important for us to enable our customers to fulfil their critical operations. We are all part of this vital eco-system.

As always, You are encouraged to keep in touch with Scania and keep up the excellent co-operation. Thank You!

Scania Purchasing, 2020-03-24

Dear Suppliers,

As per letter dated 2020-03-18, we now introduce our daily news letter. This will be published on Scania Supplier Portal every working day at 14:00 CET.

The purpose of the daily news update is to keep You, as part of the Scaniafamily, up to date with critical information. As You all know, the Corona virus has led to a business environment and a situation where Scanias as well as Your pre-conditions change by the hour.

As communicated last week, our production in Latin America will now also stop temporarily. Earlier, the plan was to put operations on hold starting 2020-03-30. This has now been revised, and the production will come to a stop already today, 2020-03-23. You will receive updated delivery schedules in accordance to this. Please observe changes, and how this affects You.

For detailed inquiries, please contact your normal contact person.

If You have any feedback on this material, or suggestions what You would like us to publish in the future, please don’t hesitate to give us Your feedback!

Scania Purchasing, 2020-03-23

Dear Valued Business Partner,

The global spread of the Coronavirus is growing and is affecting all of us. Together we have, so far, managed to maintain deliveries due to excellent collaboration with our suppliers, but we have now reached a situation where we are forced to put our production in Europe and Latin America on hold, according to the plan already informed.

• Planned stop Scania European production from 2020-03-25 with the ambition to start up again 2020-04-14. • Planned stop Scania Latin America production from 2020-03-30 with the ambition to start up again 2020-04-13.

Due to the current and escalating situation, numerous of our suppliers have informed us that they have been forced to stop production and that they cannot deliver to us anymore or in accordance with the orders.

As a result of these unforeseeable external events which has caused component shortages and major disruptions in the supplier and logistics chain, we are forced to suspend orders (making payments and taking deliveries) due to Force Majeure.

Part of our production and the after-sales operation will however remain operational. Some of our suppliers may therefore be asked to continue deliveries to some extent in accordance with our updated call-offs.

In this critical situation, where the pre-requisites for us all change day to day, we find it crucial to give you important and up to date information every day. We will therefore, with start Monday 2020-03-23, update Scania Supplier Portal (SSP) with relevant information on a daily basis. The information will be available from 14:00 CET every day. We kindly ask you to take part of this information.

Our special task force is actively monitoring and evaluating the situation. We are sure of your understanding and full cooperation. We need to set the plans to be able to start production and deliveries again on short notice so that we together can come to a “normal” situation as fast as possible and hence we ask you to start looking into this.

Finally, we would like to thank you for helping Scania to take social responsibility by continue producing parts and spare parts to our production and aftersales ensuring parts for Scania’s trucks, buses and engines. Our common efforts continue to be of the utmost importance in order to secure deliveries of food and medical supplies as well as enabling key staff in society to reach their workplaces, not forgetting supplying hospitals with gensets for emergency power in case of electricity cuts.

Yours Sincerely, Anders Williamsson Executive Vice President, Scania Purchasing