Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — Q3 2019 Earnings Presentation
30 slides from Volvo Ab Class A's earnings presentation, Oct 18, 2019
Slide 1: Third quarter 2019
Third quarter 2019 Martin Lundstedt, President and CEO
Slide 2: Third quarter highlights
Volvo Group THIRD QUARTER HIGHLIGHTS Net sales increased by SEK 6.4 bn, up 7% (+2% excl. currency) Adjusted operating income increased to SEK 10.9 bn (10.2), corresponding to a margin of 11.0% (11.1) Operating cash flow in the Industrial Operations of SEK 1.8 bn (1.3) *Adjustments, see note 7
Slide 3: Volume development in the third quarter
Volvo Group VOLUME DEVELOPMENT IN THE THIRD QUARTER Volvo Group Third quarter 2019 3 2019-10-18
Slide 4: Service sales development
Volvo Group SERVICE SALES DEVELOPMENT TRUCKS CONSTRUCTION BUSES VOLVO PENTA EQUIPMENT Ex FX: +1% +2% +9% +0% Volvo Group Third quarter 2019 4 2019-10-18
Slide 5: Third quarter 2019
Volvo Group Third quarter 2019 5 2019-10-18
Slide 6: Autonomous Solutions
Volvo Autonomous Solutions A new Business Area with full focus on developing, commercializing and scaling up L4 autonomous solutions Volvo Group 6
Slide 7: Trucks
Trucks
Slide 8: Trucks: Market environment
Trucks MARKET ENVIRONMENT Volvo Group Third quarter 2019 8 2019-10-18
Slide 9: HD/MD: Quarterly orders -45% and deliveries +0.1%
Trucks HD/MD: QUARTERLY ORDERS -45% AND DELIVERIES +0.1% Volvo Group Third quarter 2019 9 2019-10-18
Slide 10: Trucks: Market shares
Trucks MARKET SHARES Volvo Group Third quarter 2019 10 2019-10-18
Slide 11: Product news in North America
Trucks PRODUCT NEWS IN NORTH AMERICA Volvo Trucks showed the Volvo VNR Electric in North America. Limited commercial production will start in 2020 Volvo Trucks announced the introduction of the Volvo Dynamic Steering system in North America Volvo Group Third quarter 2019 11 2019-10-18
Slide 12: Construction Equipment
Construction Equipment
Slide 13: Construction Equipment: Market environment
Construction Equipment MARKET ENVIRONMENT Volvo Group Third quarter 2019 13 2019-10-18
Slide 14: Quarterly orders -9% and deliveries -2%
Construction Equipment QUARTERLY ORDERS -9% AND DELIVERIES -2% Volvo Group Third quarter 2019 14 2019-10-18
Slide 15: Construction Equipment highlights
Construction Equipment First commercial pilot agreement for autonomous battery-electric load carriers signed with Harsco in Sweden Investments in R&D and customer demo area for electric and autonomous machines in Eskilstuna, Sweden Volvo Group Third quarter 2019 15 2019-10-18
Slide 16: Buses
Buses Order intake decreased by 32% mainly due to lower market demand in India, Asia and UK. Deliveries increased by 20% mainly driven by higher volumes in South America, Mexico and the Nordic region Break through order of 129 Volvo Euro VI buses to Mexico City which is investing in a more sus
Slide 17: Volvo Penta
Volvo Penta Order intake decreased by 16% mainly due to the pre-buy of industrial engines in 2018 Deliveries decreased by 12% mainly due to pre-buy of industrial engines in 2018 Volvo Penta and Fountaine-Pajot showcased an electric sailing catamaran concept Volvo Group Third quarter 2019 17 20
Slide 18: Financial Services
Financial Services A gradual improvement in penetration during the year driven by Europe, South America and Asia The first Renault Master Z.E. electric financed during the quarter Strong start of operations in Korea Volvo Group Third quarter 2019 18 2019-10-18
Slide 19: Third quarter 2019 - CFO
Third quarter 2019 Jan Ytterberg, CFO
Slide 20: Net sales per market
Volvo Group NET SALES PER MARKET Volvo Group Third quarter 2019 20 2019-10-18
Slide 21: Adjusted operating income contributors
Volvo Group ADJUSTED OPERATING INCOME CONTRIBUTORS + Price + Product cost - R&D - Mix - Selling expenses *Adjustments, see note 7 in Q3 report: Q3 2018: No adjustments Q3 2019: No adjustments Volvo Group Third quarter 2019 21 2019-10-18
Slide 22: Cash flow
Volvo Group – Industrial Operations CASH FLOW Volvo Group Third quarter 2019 22 2019-10-18
Slide 23: Net financial position
Volvo Group – Industrial Operations NET FINANCIAL POSITION Volvo Group Third quarter 2019 23 2019-10-18
Slide 24: Trucks: Net sales and adjusted operating income
Trucks NET SALES AND ADJUSTED OPERATING INCOME Volvo Group Third quarter 2019 24 2019-10-18
Slide 25: Construction Equipment: Net sales and adjusted operating income
Construction Equipment NET SALES AND ADJUSTED OPERATING INCOME Volvo Group Third quarter 2019 25 2019-10-18
Slide 26: Buses: Net sales & adjusted operating income
Buses NET SALES & ADJUSTED OPERATING INCOME Net sales currency-adjusted +28%: o Vehicles +33% o Services +9% Adjusted operating income: + Vehicles and service volumes - Selling expenses *Adjustments, see note 7 in Q3 report: Volvo Group Q3 2018: No adjustments Third quarter 2019 Q3 2019: No adju
Slide 27: Volvo Penta: Net sales & adjusted operating income
Volvo Penta NET SALES & ADJUSTED OPERATING INCOME Net sales currency-adjusted -5%: o Engines -7% o Services 0% Adjusted operating income: - Lower volumes - R&D - Selling expenses Volvo Group *Adjustments, see note 7 in Q3 report: Third quarter 2019 Q3 2018: No adjustments 27 2019-10-18 Q3 2019:
Slide 28: Credit portfolio and profitability
Financial Services CREDIT PORTFOLIO AND PROFITABILITY Volvo Group Third quarter 2019 28 2019-10-18
Slide 29: Third quarter highlights
Volvo Group THIRD QUARTER HIGHLIGHTS Net sales increased by SEK 6.4 bn, up 7% (+2% excl. currency) Adjusted operating income increased to SEK 10.9 bn (10.2), corresponding to a margin of 11.0% (11.1) Operating cash flow in the Industrial Operations SEK 1.8 bn (1.3) *Adjustments, see note 7 in
Slide 30: Volvo Group
VOLVO VOLVO GROUP