Volvo Car Ab Class B · OMXSTO:VOLCAR_B
Volvo Car Ab Class B — Q1 2023 Earnings Presentation
26 slides from Volvo Car Ab Class B's earnings presentation, Feb 27, 2023
Slide 1: Q1 2023 Financial Results
Q1 2023 F I N A N C I A L R E S U LT S Jim Rowan, President & CEO Johan Ekdahl, CFO
Slide 2: Q1 – Performing and transforming
Q1 – Performing and transforming • Fully electric share of sales at 18% versus 8% in Q1, 2022 • Double-digit growth in retail sales of 10% • Manufacturing output up 7% despite high comparable base • Productivity and efficiency drive is gathering momentum • Improved earnings in the quarter • New Tech
Slide 3: Volvo EX90 receives strong customer response
Volvo EX90 receives strong customer response Volvo Car Group Results Presentation Q1 2023
Slide 4: Key financials
Key financials Retail sales Revenue EBIT / margin (k UNITS) (bn SEK) (bn SEK/%) +10% +29% 163 96 6.0 6.3 148 5.9 74 5.1 8.1% 7.9% 5.3% 6.6% Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2022 2023 2022 2023 2022 2022 2023 2023 excl. JV & excl. JV & associates associates Volvo Car Group Results Presentation Q1 2023
Slide 5: 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% EBIT CO2 REDUCTION UNITS MARGIN PER CAR 50% ONLINE SALES
Slide 6: Validation of our electrification strategy
Validation of our electrification strategy – Share of Recharge stable at high levels RECHARGE % OF TOTAL VOLUME CO2 reduction (tons/car) 41 41 60 55 54 34 34 52 31 50 50 23 23 44 25 26 25 24 40 22 33 28 26 17 24 30 ambition 13 18 23 21 22 20 20 18 18 10 6 8 7 7 2 2 3 4 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 7: Share of fully electric and plug-in hybrid cars in Q1
votLvoao SHARE OF FULLY ELECTRIC AND PLUG-IN HYBRID CARS IN Q1 Brazil, Uruguay, Thailand and Indonesia Se 100% Norway GD 99% Denmark GD 93% Ireland SEED 91% France SD 87% Netherlands Q1 2023
Slide 8: Share of fully electric cars in Q1
votLvoao SHARE OF FULLY ELECTRIC CARS IN Q1 Norway SD 86% Trinidad and Tobago [eee 607%, Costa Rica a 57°, © efe Thailand o EEE 55%, ©, Iceland C) Q GED 54% Mauritius GED 53% ©. Netherlands GED 49% O Indonesia GD 45% Denmark GED 41% Switzerland GED 40% Sweden GED 39% Q1 2023
Slide 9: Q1 Financial Update
Q1 FINANCIAL UPDATE Volvo Car Group Results Presentation Q1 2023
Slide 10: Q1 – Key financials
Q1 – Key financials Retail sales Revenue EBIT / margin Cash flow (k UNITS) (bn SEK) (bn SEK/%) from operating and investing activities (bn SEK) +10% +29% 163 96 6.0 6.3 148 5.9 74 5.1 8.1% 7.9% 5.3% 6.6% -12 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 -17 2022 2023 2022 2023 2022 2022 2023 2023 Q1 Q1 excl. JV & excl. J
Slide 11: Q1 – Solid revenue growth
Q1 – Solid revenue growth REVENUE BRIDGE (BN SEK) + Volume +29% + Favourable product mix 2.7 0.2 95.7 5.3 + Strong price realisation 4.2 9.0 + Foreign Exchange 74.3 + Sales of parts & accessories + Polestar contract manufacturing Revenue Volume Sales mix Foreign JV contract Other1 Revenue - Licenses
Slide 12: Q1 – EBIT negatively impacted by higher material costs
Q1 – EBIT negatively impacted by higher material costs EBIT BRIDGE (BN SEK) BN SEK -0.9 + Volume 1.2 + Favourable mix and 0.9 price realisation 2.9 + Parts & Accessories + Foreign exchange rates 6.0 6.3 5.9 -4.6 5.1 -0.2 -1.2 8.1% 7.9% 6.6% 5.3% - Increased raw material costs & freights EBIT JV & EB
Slide 13: BEV margins
BEV margins 2023 2022 2022 Q1 Q4 FY BEV Non-BEV BEV Non-BEV BEV Non-BEV Retail Deliveries (k units) 30 133 34 152 67 548 Revenue per Car (k SEK/unit) 1) 456 447 458 434 449 415 1) Gross Income per Car (k SEK/unit) 34 104 29 96 37 89 1) 3) Gross Margin (%) 7 23 6 22 8 21 BEV Common Non-BEV BEV Common
Slide 14: Solid liquidity level
Solid liquidity level Cash flow from operating and investing activities -17 bn SEK 84 Undrawn credit facilities 17 9 Marketable securities 67 Cash 3 -9 -3 17 4 0 -15 64 50 Of which approx. half related to structural cash transactions in Q1 Liquidity EBITDA Net working Other Investments Financing3 Li
Slide 15: Capital market update
Add new design Capital Capital market market update update • 8th June • Virtual session • Focus is to outline our strategic transformation, as well as the journey to higher profitability • 8th June • Virtual only session • Focus on small SUV, walk to higher profitability and direct sales Volvo Car G
Slide 16: Summary
Summary • Order book remains strong • Production has improved • Raw material costs, while still elevated, are trending in the right direction • Cost efficiencies and resource optimization started to materialise • Further targeted cost actions are being evaluated, to help counterbalance the likelihoo
Slide 17: Q&A
Q&A Volvo Car Group Results Presentation Q1 2023
Slide 18: Disclaimer
Disclaimer By accessing this document, the person to whom it is on this document and any such liability is expressly provided (the “Recipient”) agrees to be bound by the disclaimed. Analyses and opinions contained herein following obligations and limitations. may be based on assumptions that, if alt
Slide 19: Appendix
APPENDIX Volvo Car Group Results Presentation Q1 2023
Slide 20: EBIT development
EBIT development EBIT development, MSEK 8,423 6,038 10,801 5,714 5,668 6,315 5,528 4,316 3,887 5,877 3,513 5,100 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 EBIT margin development, % Volvo excl. JV & Associates 12.3 15.1 Volvo Car Grou
Slide 21: Strong net cash and prudent maturity profile
Strong net cash and prudent maturity profile 67.2 MATURITY PROFILE AND SPLIT (BN SEK) 16.9 Net cash 0.0 20.7 7.7 29.7 12% 1.0 3% 6.3 5.7 5.6 0.7 0.1 50.3 43% 42% 6.8 5.6 5.6 2.0 1.3 0.5 1.0 1.5 Liquidity 2023 2024 2025 2026 2027 2028 2029 2030 March 2023 Loans Undrawn credit facilities Cash & cash e
Slide 22: 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 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 Cost of sales -46,762 -47,718 -52,913 -69,487 -54,439 -56
Slide 23: Financial net, tax and earnings per share
Financial net, tax and earnings per share Jan-Mar Jan-Mar MSEK 2023 2022 Operating income 5,100 6,038 Interest income and similar credits 499 165 Interest expenses and similar charges -200 -205 Other financial income and expenses -15 -215 Income/(loss) before tax 5,384 5,783 Income tax -1,409 -1,280
Slide 24: 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 25: Retail sales, revenue, R&D, capex, EBITDA and operating cash flow
RETAIL SALES (K UNITS) REVENUE (BN SEK) -12% +17% +11% +14% 705 661 699 330 642 615 282 572 253 274 263 SUV 445 209 273 359 469 525 Estate 462 Sedan 198 185 161 94 77 47 Coupe 101 98 99 98 82 1 96 24 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 RESEARCH AND DEVELOPMENT (BN SEK) CAPITA
Slide 26: Volvo Car Group
voxLw oOo VOLVO CAR GROUP