Volvo Car Ab Class B · OMXSTO:VOLCAR_B
Volvo Car Ab Class B — Q2 2023 Earnings Presentation
24 slides from Volvo Car Ab Class B's earnings presentation, Jul 20, 2023
Slide 1: Q2 2023 Financial Results
Q2 2023 F I N A N C I A L R ES U LT S Jim Rowan, President & CEO Johan Ekdahl, CFO Volvo Car Group Results Presentation Q2 2023
Slide 2: Q2 – Full speed ahead in transformation with solid underlying business performance
Q2 – Full speed ahead in transformation with solid underlying business performance • Share of fully electric cars at 16% vs 7% in Q2, 2022 with sales up 178% • Retail sales up 25% vs Q2, 2022 • Production volumes up 50% vs Q2, 2022 • Stable order book and maintained premium pricing • Underlying EBIT
Slide 3: Q2 - Key financials
Q2 - Key financials Retail sales Revenue EBIT / margin (k UNITS) (bn SEK) (bn SEK/%) 10,8 +25% +43% 179 102 15.1% 7,31 143 7.2% 71 4.6 5.0 4,91 6.4 6.9% 6.5% 4.9% 6.3% Q2 Q2 Q2 Q2 Q2 Q2 2022 Q2 Q2 2023 2022 2023 2022 2023 2022 excl. JV 2023 excl. JV & associates & associates 1 Excluding non-recurrin
Slide 4: Despite multiple headwinds – still tracking towards mid-decade business ambitions
Despite multiple headwinds – still tracking towards mid-decade business ambitions 50% FULLY ELECTRIC SALES 1.2M 8-10% 40% UNITS RUN EBIT CO2 REDUCTION RATE MARGIN PER CAR 50% ONLINE SALES Volvo Car Group Results Presentation Q2 2023
Slide 5: Share of fully electric and plug-in hybrid cars in Q2
SHARE OF FULLY ELECTRIC AND PLUG-IN HYBRID CARS IN Q2 Indonesia, Brazil, Uruguay, Thailand 100% Norway 99% Denmark 96% Ireland 95% Finland 88% Belgium 86% Netherlands 85% Costa Rica 82% Sweden 78% Portugal, Greece 76% France 74% Volvo Car Group Results Presentation Q2 2023 Q2 2023
Slide 6: Share of fully electric cars in Q2
SHARE OF FULLY ELECTRIC CARS IN Q2 Costa Rica 82% Norway 81% Indonesia 58% Netherlands 50% Singapore 46% Denmark 41% Thailand 40% Uruguay, Malta 38% Finland, Iceland 37% Brazil, Ireland 36% Switzerland, Australia 34% Volvo Car Group Results Presentation Q2 2023 Q2 2023
Slide 7: Q2 Financial Update
Q2 FINANCIAL UPDATE Volvo Car Group Results Presentation Q2 2023
Slide 8: Q2 – Key financials
Q2 – Key financials Retail sales Revenue EBIT / margin Cash flow (k UNITS) (bn SEK) (bn SEK/%) from operating and investing activities (bn SEK) +25% +43% 10,8 1 179 102 143 15.1% 7,31 71 7.2% 4,6 5,0 6,4 4,91 6.9% 6.5% 4.9% 6.3% Q2 Q2 Q2 Q2 -6 2022 2023 2022 2023 Q2 Q2 2022 Q2 Q2 2023 Q2 Q2 2022 exc
Slide 9: Continued strong revenue growth
Continued strong revenue growth REVENUE BRIDGE (BN SEK) +43% 2.6 102.2 5.1 3.7 + Volume 20.0 -0.5 + Foreign Exchange 71.3 + Sales of parts & accessories + Polestar contract manufacturing Revenue Volume Sales mix Foreign JV contract Other1 Revenue 2022 Q2 and pricing exchange rates manufacturing 2023
Slide 10: Solid underlying EBIT impacted by restructuring costs
Solid underlying EBIT impacted by restructuring costs EBIT BRIDGE (BN SEK) BN SEK -5.8 BN SEK +2.7 + Volume 10.8 5.9 0.9 + Parts & Accessories + Foreign exchange rates -1.8 7.3 6.4 -2.3 4.6 -0.9 5.0 -6.2 -1.4 - Increased raw material 15.1% 6.5% 7.2% 6.3% 4.9% costs & freights - Normalisation of mix
Slide 11: BEV margins
BEV margins 2023 2023 2022 Q2 Q1 FY BEV Non-BEV BEV Non-BEV BEV Non-BEV Retail Deliveries (k units) 29 150 30 133 67 548 Revenue per Car (k SEK/unit) 1) 430 417 456 447 449 415 Gross Income per Car (k SEK/unit) 1) 11 89 34 104 37 89 Gross Margin (%) 1) 3) 3 21 7 23 8 21 BEV Common Non-BEV BEV Common
Slide 12: Solid liquidity level Q2
Solid liquidity level Q2 Cash flow from operating and investing activities 0.7 bn SEK 69 67 11 Undrawn credit facilities Marketable securities 9 Cash 18 17 -3 1 0 0 -16 52 50 Liquidity EBITDA Net working Other Investments Financing3 Liquidity March capital1 working June 2023 capital2 2023 1) Change
Slide 13: Summary
Summary • Order book remains robust, including EX30 and EX90 pre-orders • Production output continuously improving • Effect of lower raw material prices to accelerate in second half 2023 • Global cost efficiency measures developing as planned • Retail deliveries on track – solid double-digit growth
Slide 14: Q&A
Q&A Volvo Car Group Results Presentation Q2 2023
Slide 15: Disclaimer
Disclaimer • By accessing this document, the person to whom it such liability is expressly disclaimed. Analyses and is provided (the “Recipient”) agrees to be bound by opinions contained herein may be based on the following obligations and limitations. assumptions that, if altered, can change the an
Slide 16: Appendix
APPENDIX Volvo Car Group Results Presentation Q2 2023
Slide 17: Validation of our electrification strategy – share of Recharge stable at high levels
Validation of our electrification strategy – share of Recharge stable at high levels RECHARGE % OF TOTAL VOLUME CO2 reduction (tons/car) 41 41 39 60 55 54 34 34 52 31 50 50 45 23 23 25 26 25 23 24 40 33 28 26 24 30 ambition 18 23 21 22 20 18 18 16 10 6 8 7 7 2 3 4 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 201
Slide 18: EBIT development
EBIT development EBIT development, MSEK 8,423 6,038 10,801 5,714 6,315 6,428 5,528 5,668 4,316 3,887 5,877 3,513 5,100 4,993 4,815 3,708 4,612 3,443 3,329 2,050 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 EBIT margin development, % Volvo excl. JV & Associates 12.3
Slide 19: Strong net cash and prudent maturity profile
Strong net cash and prudent maturity profile 69.4 MATURITY PROFILE AND SPLIT (BN SEK) 17.7 Net cash 0.0 21.9 7.8 29.8 9% 0.7 6.6 3% 6.0 5.9 0.7 0.1 51.7 45% 43% 7.1 5.9 5.9 2.0 0.5 1.0 0.5 1.5 Liquidity 2023 2024 2025 2026 2027 2028 2029 2030 June 2023 Loans Undrawn credit facilities Cash & cash equ
Slide 20: Quarterly performance 2020-2023
Quarterly performance 2020-2023 (MSEK) 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 Revenue 56,517 55,242 65,763 85,311 68,593 72,538 60,838 80,076 74,269 71,300 79,329 105,247 95,705 102,152 Cost of sales -46,762 -47,718 -52,913 -69
Slide 21: Financial net, tax and earnings per share
Financial net, tax and earnings per share Apr-Jun Apr-Jun MSEK 2023 2022 Operating income 4,993 10,801 Interest income and similar credits 598 139 Interest expenses and similar charges -192 -212 Other financial income and expenses -26 -729 Income/(loss) before tax 5,373 9,999 Income tax -1,833 -1,02
Slide 22: Supply restraints hindered the volume growth
Supply restraints hindered the volume growth -12% 705 699 CAGR 662 642 9% 615 572 534 294 503 341 288 466 318 247 299 291 282 242 172 155 167 162 131 114 91 84 82 122 98 108 110 102 56 83 82 70 95 101 97 111 103 84 70 70 77 2014 2015 2016 2017 2018 2019 2020 2021 2022 Europe China US Other Volvo Car
Slide 23: Retail sales, revenue, R&D, capex, EBITDA and operating cash flow
RETAIL SALES (K UNITS) REVENUE (BN SEK) +11% -12% +17% +14% 642 705 661 699 330 572 615 274 263 282 253 SUV 209 273 359 445 525 469 462 Estate 198 185 161 94 77 47 Sedan 101 98 99 98 96 82 1 24 Coupe 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 RESEARCH AND DEVELOPMENT (BN SEK) CAPITA
Slide 24: Volvo Car Group
votxLw oO VOLVO CAR GROUP