Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — AB Volvo — Q2 2013 Earnings Presentation
20 slides from Volvo AB Class A's earnings presentation, 2013
Slide 1: Second quarter 2013
Second quarter 2013 AB Volvo 1
Slide 2: AB Volvo
AB Volvo 2
Slide 3: Trucks Europe: Excellent reception of the new products
TRUCKS EUROPE Excellent reception of the new products – continued strong orders Highlights in Q2 • Complete renewal of Renault Trucks’ product ranges, introduction of Volvo FMX, Volvo FM, Volvo FL and Volvo FE • Production ramp-up of the new Volvo FH • Improved capacity utilization SALES TREND STRON
Slide 4: Massive product renewal, 12 models launched in Q2
Massive product renewal, 12 models launched in Q2 New Volvo FL, Volvo FMX, Volvo FM & Volvo FE New long-distance T-range, new C & K ranges of construction trucks and the new D-range of distribution trucks Production ramp-up, H2 2013 – Delivery volumes in 2014 Completely new range of Renault truc
Slide 5: Trucks North America: Significant step-up in production output versus Q1
TRUCKS NORTH AMERICA Significant step-up in production output versus Q1 Highlights in Q2 • Deliveries up by 73% compared with Q1-13 • Orders increased by 39% compared with Q2-12 • Decision to commercialize DME-powered trucks • Adjusting production rates in Q3 SALES TREND INCREASED PRODUCTION VS Q1 M
Slide 6: Trucks South America: Strong position in Brazil
TRUCKS SOUTH AMERICA Strong position in Brazil – investing in the after-market Highlights in Q2 • Orders up 38% in South America • Market share in Brazil increased by 1% through June compared to FY2012 with positive price realization • 350 new service bays in 2013 in Brazil SALES TREND STRONG ORDERS
Slide 7: Trucks Asia: Preparations for third-quarter launch of new UD range
TRUCKS ASIA Preparations for the third-quarter launch of the new UD heavy-duty truck range Highlights in Q2 • Commercial launch of the new UD truck range in South-east Asia in August, gradual production ramp-up in Bangkok in H2-13 • Slow start of the year in India, total market outlook revised to 24
Slide 8: Trucks in Q2 – Operating margin of 4%
TRUCKS Trucks in Q2 – Operating margin of 4% - sequential leverage of 28%* from increased volumes SALES TREND OPERATING INCOME OPERATING MARGIN ORDERS SEK bn SEK bn % Units 12 months 174 bn 12 months 4.8 bn 12 months 2.7% Up 16% compared with Q2 2012 Fx: -864 M Book to bill: Q2 108%, ytd 130% 5.1 10
Slide 9: Roadmaps and main activities defined to support strategic objectives
TRUCKS 29 35 roadmaps and 400 main activities defined months to go to support the strategic objectives Major activities in Q1 2013 • Agreement to acquire 45% of DFCV in China Major activities in Q3 2012 • Study initiated to optimize the European truck plant footprint • Launch of the new generation V
Slide 10: AB Volvo
AB Volvo 10
Slide 11: Construction Equipment: SDLG to be introduced in the US
CONSTRUCTION EQUIPMENT SDLG to be introduced in the US SDLG LG959 EUROPE NORTH AMERICA Slow first six months, orders improving SDLG enters the US • Total market in France, the UK and Germany • Introduction of SDLG-products into the US continue to be weak market - two mid-size wheel loader models to
Slide 12: Chinese market bottoming out
CONSTRUCTION EQUIPMENT Chinese market bottoming out CHINA REST OF ASIA Stabilizing market in China Mining bottoming out • Chinese total market increased by 4% in the • Sales down by 21% compared with Q2-12 – quarter, driven by compact segment mainly due to lower demand in mining • Inventories in bal
Slide 13: Earnings recovery despite slow mining segment
CONSTRUCTION EQUIPMENT Earnings recovery despite slow mining segment SALES TREND OPERATING INCOME OPERATING MARGIN ORDERS SEK bn 12 months 54 bn SEK bn 12 months 2.7 bn % 12 months 4.9% Up 3% compared with 2012 20 2.7 17 Fx: -276 M 11.3% 13.9% Book to bill (Volvo): 99% 16 1.9 22’ 8.3% 1.3 22’ Q2 Q3
Slide 14: AB Volvo
AB Volvo 14
Slide 15: Buses & Penta: Continued tough market for buses, good performance in Volvo Penta
BUSES & PENTA Continued tough market for buses, good financial performance in Volvo Penta BUSES VOLVO PENTA Breakeven in spite of low market volumes Good financial performance • Low sales volumes on a weak market • Market demand still weak • Operating income SEK 11 M • Strengthened product portfolio
Slide 16: AB Volvo
AB Volvo 16
Slide 17: Customer Finance: Good profitability – 13% return on equity
CUSTOMER FINANCE Good profitability – 13% return on equity in Q2 VFS Good portfolio performance • Operating income SEK 416 M • Stable delinquencies • SEK 103 bn of assets in the credit portfolio • Syndication of SEK 2.1 bn of the credit portfolio NEW FINANCING OPERATING INCOME SEK bn 12 months 44 bn
Slide 18: AB Volvo
AB Volvo 18
Slide 19: Volvo Group: Improved sales and profitability sequentially
VOLVO GROUP Improved sales and profitability sequentially NET SALES OPERATING MARGIN SEK bn 12 months 270 bn SEK m 12 months 2.9% 83 Sales improved by 25% compared with Q1 9.3% 73 Operating income recovered to SEK 3,262 M despite: 4.5% - negative currency effects - increase of warranty reserve Q
Slide 20: Volvo
VOLVO