Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — Q1 2002 Earnings Presentation
24 slides from Volvo AB Class A's earnings presentation, Apr 22, 2002
Slide 1: First Quarter 2002 Press Conference
Volvo Group First Quarter 2002 Press Conference April 22, 2002 AB Volvo Press conf. Q1-2002, April 22, 2002
Slide 2: Highlights
Volvo Group Highlights 1 First Quarter In Focus Going Forward l Business conditions: Short Term - Recession in North America continues - Downward trend in Europe l Ramp-up of newly introduced products l New products introduced l Manage the cyclicality by - Volvo FH/FM Business Area - Wheel loaders E
Slide 3: Sales by Market Area
Volvo Group Sales by Market Area 2 First Quarter 2002 First Quarter SEK M Split 2002 2001 Change Western Europe 52% 21,097 23,697 -11% Eastern Europe 3% 1,318 1,199 10% North America 29% 11,738 13,441 -13% South America 3% 1,211 1,379 -12% Asia 7% 2,650 1,941 37% Others 6% 2,371 2,093 13% Total 100%
Slide 4: Sales by Business Area
Volvo Group Sales by Business Area 3 First Quarter 2002 First Quarter SEK M Split 2002 2001 Change Trucks 66% 26,558 29,121 -9% Buses 8% 3,165 3,715 -15% Construction Equipm. 11% 4,476 4,688 -5% Penta 5% 1,962 1,736 13% Aero 6% 2,485 2,607 -5% Others & Eliminations 4% 1,739 1,883 -8% Volvo Group 100
Slide 5: Operating Income by Business Area
Volvo Group Operating Income by Business Area 4 First Quarter 2002 First Quarter SEK M 2002 2001 Trucks (474) 150 Buses (94) (83) Construction Equipm. (131) 81 Penta 146 167 Aero 78 160 Financial Services 115 113 Others & Eliminations (2) (86) Restructuring costs - (1,319) Volvo Group (362) (817) l
Slide 6: Trucks
Volvo Group Trucks 5 First Quarter First Quarter SEK M 2002 2001 Change Volume (units) 33,322 42,139 -21% Sales 26,558 29,121 -9% Operating income (474) 150 n.a. Operating margin % -1.8% 0.5% (2.3) Highlights In Focus l Business Environment l Secure ramp-up - North America showing signs of bottoming
Slide 7: Truck Deliveries
Volvo Group Truck Deliveries 6 First Quarter First Quarter 2002 2001 Change Total Europe 20 821 27 517 -24% Western Europe 19 341 25 883 -25% Eastern Europe 1 480 1 634 -9% North America 7 442 10 150 -27% South America 1 163 1 283 -9% Asia 1 718 1 132 52% Rest of the world 2 178 2 057 6% Total 33 32
Slide 8: Business Environment
Volvo Group Business Environment 7 North America Units 30,000 25,000 20,000 Industry build 15,000 10,000 Net order intake 5,000 0 F M A M J J A S O N D J F M A M J J A S O N D J F M 2000 2001 AB Volvo Press conf. Q1-2002, April 22, 2002
Slide 9: Total Market Heavy Trucks
Volvo Group Total Market Heavy Trucks 8 NAFTA Retail Sales Forecast Units Thousands 309 300 257 250 255 200 170 150 100 98 99 '00 '01 '02 Source: Volvo Trucks; EUD, April 2, 2002 AB Volvo Press conf. Q1-2002, April 22, 2002
Slide 10: Total Market Heavy Trucks
Volvo Group Total Market Heavy Trucks 9 W. Europe Registration Forecast Units Thousands 246 250 237 236 200 208 150 100 98 99 '00 '01 '02 Source: Volvo Trucks; EUD, April 2, 2002 AB Volvo Press conf. Q1-2002, April 22, 2002
Slide 11: Introduction of the New Volvo FM and FH
Volvo Group Introduction of the New Volvo FM and FH 10 l Very positive response from customers, dealers and press l Strong order intake (~20,000) l Price realization l First quarter volume drop due to changeover in production AB Volvo Press conf. Q1-2002, April 22, 2002
Slide 12: Production Ramp-up of New Volvo FM and FH
Volvo Group Production Ramp-up 11 of New Volvo FM and FH First quarter 2002 Actual production versus planned production 2 3 4 5 6 7 8 9 10 11 12 13 Week Tuve Gent Gap vs plan AB Volvo Press conf. Q1-2002, April 22, 2002
Slide 13: Customer Value of Decreased Fuel Consumption
Volvo Group Customer Value of Decreased 12 Fuel Consumption 5 years ownership Euro Distribution FM9 Long distance FH12 Fuel 60,000 180,000 consumption km/year km/year improvement 1% ~ 500 ~ 1,800 2% ~ 1,000 ~ 3,600 3% ~ 1,500 ~ 5,400 AB Volvo Press conf. Q1-2002, April 22, 2002
Slide 14: Customer Benefits
Volvo Group 13 Customer Benefits • Driver productivity • Fuel efficiency • Safety • Increased up-time • Customer adopted chassis solutions AB Volvo Press conf. Q1-2002, April 22, 2002
Slide 15: Volvo Buses
Volvo Group Volvo Buses 14 First Quarter First Quarter SEK M 2002 2001 Change Volume (units) 1,842 2,117 -13% Sales 3,165 3,715 -15% Operating income (94) (83) n.a. Operating margin % -3.0% -2.2% (0.7) Highlights In Focus l Coach sales low due to unfavourable development l Increase productivity in E
Slide 16: Volvo Construction Equipment
Volvo Group Volvo Construction Equipment 15 First Quarter First Quarter SEK M 2002 2001 Change Sales 4,476 4,688 -5% Operating income (131) 81 n.a. Operating margin % -2.9% 1.7% (4.7) Highlights In Focus l Continued soft market conditions l Return to profitability l Ramp-up and vendor supply issues
Slide 17: New Heavy Construction Equipment
Volvo Group New Heavy Construction Equipment 16 Excavators B - series Wheel Loaders E - series Articulated Haulers D - series AB Volvo Press conf. Q1-2002, April 22, 2002
Slide 18: Product Range Extension
Volvo Group Product Range Extension 17 AB Volvo Press conf. Q1-2002, April 22, 2002
Slide 19: Volvo Penta
Volvo Group Volvo Penta 18 First Quarter First Quarter SEK M 2002 2001 Change Sales 1,962 1,736 13% Operating income 146 167 n.a. 1) Operating margin % 7.4% 9.6% (2.2) Highlights In Focus l Continued strong sales and operating income l Cash-flow l Signs of recovery in the U.S. l Cost control l Posit
Slide 20: Ocean Series
Volvo Group Ocean Series 19 AB Volvo Press conf. Q1-2002, April 22, 2002
Slide 21: Volvo Aero
Volvo Group Volvo Aero 20 First Quarter First Quarter SEK M 2002 2001 Change Sales 2,485 2,607 -5% Operating income 78 160 -51% Operating margin % 3.1% 6.1% (3.0) Highlights In Focus l Slow recovery in air traffic, but lower yield l Adaptation to a declining new engine market l Aircraft excess situa
Slide 22: Major overhaul order received from Aeroflot
Volvo Group Major overhaul order 21 received from Aeroflot AB Volvo Press conf. Q1-2002, April 22, 2002
Slide 23: Volvo Financial Services
Volvo Group Volvo Financial Services 22 First Quarter First Quarter SEK M 2002 2001 Change Operating income 115 113 1.8% ROE % 4.1% 5.3% -1.2% Assets, MSEK 71,323 71,588 -0.4% Equity ratio 10.3% 12.0% (1.7) Highlights In Focus l Slower growth and improved diversification l Competitive alignment, pro
Slide 24: Group Summary
Volvo Group Volvo Group 23 Summary l Business conditions - Recession in North America continues. Upturn? - Downward trend in Europe l Product renewal in Construction Equipment l Focus on ramp-up of new products l Focus on Cash Flow AB Volvo Press conf. Q1-2002, April 22, 2002