How large will the proposed dividend and the proposed redemption be?
Scania’s Board of Directors proposes an unchanged regular dividend of SEK 15 per share, which is equivalent to 50.5 per cent of net income per share. The mandatory redemption, totalling SEK 7 billion, is equivalent to SEK 35 per share.

When will the dividend and the payment for the redemption shares be sent to the shareholders?
Around 14 May (dividend, SEK 15 per share) and 14 June (redemption, SEK 35 per share), respectively.

When is the last day to buy shares in order to receive the regular dividend?
Scania shares will be traded, including the right to participate in the regular dividend, until 4 May 2007.
To receive regular dividend, you need to be registered as a shareholder on the proposed record date at VPC for the share, which is 9 May 2007.

Why is Scania proposing a redemption of shares?
Scania’s robust earnings and cash flow have strengthened the company’s financial position. Under the prevailing market conditions and based on current investment plans, the company’s finances will remain strong during the coming years. This enables Scania’s Board of Directors to propose an extra distribution of capital, beyond the regular dividend, through a redemption of shares.

The proposal should be viewed as one element in Scania’s aim of achieving a more efficient capital structure and thereby maximising value for you as a shareholder. A redemption of shares is, moreover, advantageous from a tax standpoint for most shareholders.

Why doesn’t Scania invest the money in its operations instead of “distributing” it?
Even after the regular dividend and the redemption, Scania will have a sufficiently strong financial position and ample room for investing and continuing to grow.

What does a mandatory redemption of shares mean?
A mandatory redemption means that every shareholder becomes entitled to redeem shares for a cash consideration. In practice, this means that Scania pays out capital to its shareholders. The shares that are designated as redemption shares in the VPC system after completion of the share split are automatically redeemed for a predetermined cash consideration, without your having to do anything as a shareholder. It is a simple and effective way for Scania to distribute funds to its shareholders.

As a shareholder, do I need to do anything?
You do not need to do anything. Scania will automatically redeem your redemption shares for a cash consideration of SEK 35 per redemption share.

Why is the redemption procedure mandatory?
A mandatory redemption procedure is relatively simple and cost-effective, since it occurs automatically and does not require any action from the shareholders.

How many shares will I have?
After redemption has been completed, you will have four times the number of shares in Scania that you owned before the share split and redemption. All redemption shares are automatically redeemed.

What day is the record date for the share split?
The record date for the share split and entitlement to redemption shares is 22 May 2007.

As a shareholder, what options do I have?
Once the Annual General Meeting has given its approval, you can await the redemption without having to do anything. The redemption shares you receive will then be automatically redeemed for SEK 35 per share in cash. You may also choose to sell your redemption shares before the redemption procedure is completed. Trading in redemption shares will occur on the OMX Nordic Exchange Stockholm AB between 23 May and 5 June 2007.

Where can I trade in redemption shares and when?
Redemption shares will be traded on the OMX Nordic Exchange Stockholm AB. Trading will occur between 23 May and 5 June 2007.

Why will there be trading in redemption shares?
One reason is that it may be advantageous from a tax standpoint for foreign shareholders to sell their redemption shares.

When and how is the redemption amount paid?
This amount will be paid around 14 June 2007. The money will be paid in the form of a deposit in the yield account that is linked to your VP account.

What is the last day for buying shares to participate in the share split and receive redemption shares?
Scania shares will be traded including the entitlement to participate in the share split and to receive redemption shares until the end of trading on 16 May 2007. To participate in the share split and receive redemption shares, you need to be registered as a shareholder on the record date for the share split, which is proposed to be 22 May 2007.

How large will the redemption be?
The redemption will be SEK 35 per share.

What tax effects will the redemption have?
The tax effects for you as a shareholder depend on your specific situation. A bit simplified, as a Swedish shareholder you are taxed for the capital gain that arises upon redemption. In case you feel that you need to know more about the tax effects in you particular case, you should consult a tax advisor about what tax consequences may arise and how you should handle them.

• Swedish shareholders
If you are a tax resident of Sweden, a redemption share is regarded as sold upon redemption. In case a capital gain arises, you are taxed for the capital gain, in other words the portion of the redemption amount (SEK 35 per share) that exceeds your acquisition cost for the redemption share. When a Scania share is divided into five shares, of which one is a redemption share, a portion of the acquisition cost of the original share will be allocated to the Scania shares and a portion to the redemption share. Alternatively, you may calculate the acquisition cost as 20 percent of the redemption amount.

• Foreign shareholders
If you are not a tax resident of Sweden, you normally have to pay withholding tax in Sweden on the amount disbursed on the redemption of shares. This applies regardless of whether you received the redemption shares in conjunction with a share split or whether you bought the redemption shares. The tax rate is 30 percent, but is generally reduced as provided by tax treaties between Sweden and other countries.

As a foreign shareholder, you may apply to the Swedish Tax Agency for a refund of a certain portion of the withholding tax that (after any reduction under the applicable tax treaty) is levied on the amount paid on redemption. You are entitled to a refund of the withholding tax that is attributable to your acquisition cost for the redeemed shares. This acquisition cost is calculated in the same way as for Swedish shareholders, that is, by an allocation of the acquisition cost of the original share or as 20 percent of the redemption amount.

As a foreign shareholder, if you instead choose to sell your redemption shares, no Swedish withholding tax is payable on the consideration you receive from the sale.

How large will the withholding tax be?
The size of the withholding tax for foreign shareholders may vary, depending on what country the shareholder is a resident of. For more information about withholding tax, please visit the Swedish Tax Agency’s website, http://www.skatteverket.se/.