Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — AB Volvo — Q2 2002 Earnings Presentation
19 slides from Volvo AB Class A's earnings presentation, Jul 23, 2002
Slide 1: Second Quarter 2002 Phone Conference
Volvo Group Second Quarter 2002 Phone Conference July 23, 2002 AB Volvo Press conf. Q2-2002, July 23, 2002
Slide 2: Highlights
Volvo Group Highlights 1 Second Quarter In Focus Going Forward l Business Environment Short Term - Low demand in N. America - Downward trend in W. Europe, though l Manage Winnsboro production transfer from a high level - Strong development in Asia and E. Europe l Introduction of new US truck program
Slide 3: Sales by Market Area
Volvo Group Sales by Market Area 2 Second Quarter 2002 Second Quarter First Six Months SEK M Split 2002 2001 Change 2002 2001 Change Western Europe 52% 25,670 23,624 9% 46,767 47,321 -1% Eastern Europe 4% 1,946 1,427 36% 3,264 2,626 24% North America 29% 14,491 15,354 -6% 26,229 28,795 -9% South Ame
Slide 4: Sales by Business Area
Volvo Group Sales by Business Area 3 Second Quarter 2002 Second Quarter First Six Months SEK M Split 2002 2001 Change 2002 2001 Change Trucks 66% 32,554 29,256 11% 59,112 58,377 1% Buses 8% 4,142 4,915 -16% 7,307 8,630 -15% Construction Equipm. 13% 6,188 6,067 2% 10,664 10,755 -1% Volvo Penta 5% 2,2
Slide 5: Operating Income by Business Area
Volvo Group Operating Income by Business Area 4 Second Quarter 2002 Second Quarter First Six Months SEK M 2002 2001 Change 2002 2001 Change Trucks 483 639 1) -24% 9 789 -99% Buses 51 (25) n.a. (43) (108) n.a. Construction Equipm. 464 408 14% 333 489 -32% Volvo Penta 225 222 na 371 389 na Volvo Aero
Slide 6: Cash-Flow Development
Volvo Group 5 Cash-Flow Development Second Quarter 2002 4 3.4 Operating cash flow* 3 2 1 b SEK 0 -1 -2 -3 -4 00 00 00 00 01 01 01 01 02 02 20 20 20 20 20 20 20 20 20 20 1- 2- 3- 4- 1- 2- 3- 4- 1- 2- Q Q Q Q Q Q Q Q Q Q * Cash-flow after net investments excluding: Investments in shares, acquired & di
Slide 7: Consolidated Results
Volvo Group Consolidated Results 6 Second Quarter 2002 Second Quarter First Six Months SEK M 2002 2001 Change 2002 2001 Change Net Sales 49,294 47,098 5% 89,679 90,848 -1% Gross income 8,734 8,211 6% 15,914 15,725 1% R&D expenses (1,373) (1,357) (2,878) (2,751) Selling expenses (3,787) (3,599) (7,58
Slide 8: Reconciliation of Profit and Loss statement
Volvo Group Reconciliation of Profit and Loss statement 7 Second Quarter 2002 First Six Months Reported Adjustments Normalized SEK M 2002 2001 2002 2001 2002 2001 Change Sales 49,294 47,098 49,294 47,098 Operating income 1,559 2,123 20 1) (1,103)2) 1,579 1,020 Financial net (249) (311) (249) (311) I
Slide 9: Trucks
Volvo Group Trucks 8 Second Quarter Second Quarter First Six Months SEK M 2002 2001 Change 2002 Change Volume (units) 43,781 39,945 10% 77,103 -6% Sales 32,554 29,256 11% 59,112 1% Operating income 483 639 1) -24% 9 -99% Operating margin % 1.5% 2.2% (0.7) 0.0 (1.4) Highlights In Focus l Successful p
Slide 10: Total Market Heavy Trucks: W. Europe Registration Forecast
Volvo Group 9 Total Market Heavy Trucks W. Europe Registration Forecast Units Thousands 300 246 Forecast 250 237 236 215 200 208 (10)% 150 100 98 99 '00 '01 '02 '03 AB Volvo Press conf. Q2-2002, July 23, 2002
Slide 11: Total Market Heavy Trucks: NAFTA Retail Sales Forecast
Volvo Group 10 Total Market Heavy Trucks NAFTA Retail Sales Forecast Units Thousands 309 300 257 250 255 Forecast 200 170 167 150 (2)% 100 98 99 '00 '01 '02 '03 AB Volvo Press conf. Q2-2002, July 23, 2002
Slide 12: Buses
Volvo Group Volvo Buses 11 Second Quarter Second Quarter First Six Months SEK M 2002 2001 Change 2002 Change Volume (units) 2,571 2,727 -6% 4,413 -9% Sales 4,142 4,915 -16% 7,307 -15% Operating income 51 (25) n.a. (43) n.a. Operating margin % 1.2% -0.5% 1.7 (0.6) 0.7 Highlights In Focus l Progress i
Slide 13: Construction Equipment
Volvo Group Volvo Construction Equipment 12 Second Quarter Second Quarter First Six Months SEK M 2002 2001 Change 2002 Change Sales 6,188 6,067 2% 10,664 -1% Operating income 464 408 14% 333 -32% Operating margin % 7.5% 6.7% 0.8 3.1 -1.4 Highlights In Focus l Continued soft market l Manage launch of
Slide 14: Penta
Volvo Group Volvo Penta 13 Second Quarter Second Quarter First Six Months SEK M 2002 2001 Change 2002 Change Sales 2,249 1,976 14% 4,211 13% Operating income 225 222 na 1) 371 na 1) Operating margin % 10.0% 11.2% na 1) 8.8 na 1) Highlights In Focus l Business in order l World market trends l Strong
Slide 15: Aero
Volvo Group Volvo Aero 14 Second Quarter Second Quarter First Six Months SEK M 2002 2001 Change 2002 Change Sales 2,338 3,060 -24% 4,823 -15% Operating income 40 286 -86% 118 -74% Operating margin % 1.7% 9.3% (7.6) 2.4 (5.5) Highlights In Focus l Slow recovery in air traffic, but lower yield l Adapt
Slide 16: Financial Services
Volvo Group Volvo Financial Services 15 Second Quarter Second Quarter First Six Months SEK M 2002 2001 Change 2002 Change Operating income 120 63 90.5% 235 34% ROE % 1) 3.7% (2.0) Assets, MSEK 68,683 70,057 -2.0% 68,683 -2.0% Equity ratio 10.7% 0.0 Highlights In Focus l Increase in retail finance vo
Slide 17: Finance Volume and Penetration
Volvo Group Finance Volume and Penetration 16 2001 Volume YTD 2002 Volume YTD Volvo Trucks Volvo CE Volvo Buses Renault Trucks Mack Trucks Aero, Penta & Other Finance penetration 35% 30% YTD 2001 25% YTD 2002 20% 15% 10% 5% 0% Volvo Trucks Volvo CE Volvo Buses Renault Trucks Mack Trucks AB Volvo Pre
Slide 18: Summary
Volvo Group 17 Volvo Group Summary l Business Environment - Low demand in N. America - Downward trend in W. Europe - Strong development in Asia and E. Europe l Successful product introduction l Improved results in Trucks and Construction Equipment, progress in Buses l Significantly improved cash flo
Slide 19: Volvo Group
Volvo Group AB Volvo Press conf. Q2-2002, July 23, 2002