Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — AB Volvo — Q4 2003 Earnings Presentation
19 slides from Volvo AB Class A's earnings presentation, Feb 3, 2004
Slide 1: Fourth Quarter 2003 Conference Call
Fourth Quarter 2003 Conference Call, February 3, 2004
Slide 2: Highlights
Conference Call Q4 2003 1 Highlights Fourth Quarter and Full Year In Focus Going Forward z Business environment improving z Develop the industrial and commercial structure in China z Strong organic growth in Q4, driven by a new product portfolio z Continue efforts to strengthen distribution channels
Slide 3: Net sales, Operating income, Earnings per share
Conference Call Q4 2003 2 Net sales (SEK bn) Europe North 60% America Asia 22% 11% Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 South America Rest of 45.9 40.9 44.6 40.5 48.7 177.1 177.6 172.9 171.9 174.8 3% the world 4% Quarter 12 months rolling Operating income Earnings per share (SEK M) (SEK) Q4 02 Q1 03 Q2 03
Slide 4: Consolidated Results
Conference Call Q4 2003 3 Consolidated Results Fourth Quarter 2003 SEK M 2003 2002 Net Sales 48,733 45,877 Currency impact, SEK bn -2.6 Gross income 9,317 8,279 19.1% 18.0% R&D expenses (1,713) (1,656) Lower capitalization -139 Selling expenses (4,545) (4,197) Administrative expenses (1,388) (1,258)
Slide 5: Development of cash conversion cycle
Conference Call Q4 2003 4 Volvo Group Development of cash conversion cycle SEK bn Days 40 90 80 Working capital 35 80 CCC - days 70 30 60 25 50 20 40 15 30 34 10 20 5 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2001 2002 2003 AB Volvo 04-02-03
Slide 6: Trucks
Conference Call Q4 2003 5 Trucks Fourth Quarter Net sales Operating income (SEK bn) (SEK M) Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 31.1 27.4 29.4 26.9 33.2 507 527 1023 944 1457 118.8 119.6 116.4 114.9 117 1.6% 1.9% 3.5% 3.5% 4.4% Quarter 12 months rolling 1189 2190 2730 3001 39
Slide 7: European Market
Conference Call Q4 2003 66 European Market Stable development at high level Units, Thousands (heavy trucks) 250 246 236 238 215 214 208 200 188 trend 172 170 150 122 116 100 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 AB Volvo 04-02-03
Slide 8: North American Market
Conference Call Q4 2003 77 North American Market Signs of improvement Units, Thousands (heavy trucks) 309 300 255 257 250 236 200 199 trend 179 179 174 170 150 154 134 122 100 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 AB Volvo 04-02-03
Slide 9: Volvo Buses
Conference Call Q4 2003 8 Volvo Buses Fourth Quarter Net sales Operating income (SEK bn) (SEK M) Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 33 -83 -89 -93 -96 3.9 3.0 3.1 2.8 3.1 0.9% -2.8% -2.9% -3.3% -3.1% 14.0 13.8 12.8 12.7 12.0 -94 -83 -223 -232 -361 Quarter 12 months rolling Q
Slide 10: Volvo Construction Equipment
Conference Call Q4 2003 9 Volvo Construction Equipment Fourth Quarter Net sales Operating income (SEK bn) (SEK M) Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 5.3 4.8 6.3 5.6 6.5 -47 140 425 210 133 21 21.3 21.4 21.9 23.2 -0.9% 2.9% 6.8% 3.7% 2.0% 406 677 638 728 908 Quarter 12 months
Slide 11: Volvo Penta
Conference Call Q4 2003 10 Volvo Penta Fourth Quarter Net sales Operating income (SEK bn) (SEK M) Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 159 159 212 153 171 1.7 1.9 2.0 1.8 1.9 9.2% 8.3% 10.4% 8.5% 9.2% 7.7 7.6 7.4 7.5 7.6 647 660 647 683 695 Quarter 12 months rolling Quarter Ma
Slide 12: Volvo Aero
Conference Call Q4 2003 11 Volvo Aero Fourth Quarter Net sales Operating income (SEK bn) (SEK M) Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 2.1 2.2 1.9 1.8 2.1 -41 -6 11 -2 -47 8.8 8.6 8.1 8.0 8.0 -2.0% -0.3% 0.6% -0.1% -2.2% 5 -79 -108 -38 -44 Quarter 12 months rolling Quarter Marg
Slide 13: Volvo Financial Services
Conference Call Q4 2003 12 Volvo Financial Services Fourth Quarter New retail financing Operating income and Return on equity (SEK bn) (SEK M) Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 7.2 5.9 6.1 6.9 8.0 129 212 221 242 251 26.3 26.5 25.7 26.1 26.9 4.8% 5.5% 6.6% 9.0% 9.8% Quarter
Slide 14: Summary: 2003 – A year of improvement
Conference Call Q4 2003 13 Volvo Group Summary 2003 – A year of improvement z Significantly improved profitability z Benefit from a strong product portfolio z Building stronger dealer network z China expansion z Strong cash flow AB Volvo 04-02-03
Slide 15: The Scania Holding: Volvo's intention
Conference Call Q4 2003 14 The Scania Holding Volvo´s intention z Volvo is involved in discussions with potential buyers of the Scania shares z Still awaiting the decision on the request for an extension of the deadline z Alternatively Volvo will transfer the Scania A-shares to a separate newly form
Slide 16: AB Volvo's holding in Scania
Conference Call Q4 2003 15 The Scania Holding AB Volvo´s holding in Scania 27,3 million A-shares 63,8 million B-shares SEK 6,2bn market value SEK 14,6bn market value At least 90% of the shares in Ainax to To be sold in the be distributed to market the shareholders of AB Volvo 63,8 M Scania B 5,8% of
Slide 17: Ainax: Newly formed company
Conference Call Q4 2003 16 Ainax Newly formed company z The assets of Ainax consist of Scania A-shares and cash. Ainax has no debt z Tuve Johannesson, chairman, and Shemaya Lévy board member. Other board member(s) to be decided. z The board of directors are authorised to decide on the sale of the Sc
Slide 18: Ainax: Financial data
Conference Call Q4 2003 17 Ainax Financial data z Ainax plan to issue 27,3 m shares corresponding to the number of Scania A-shares held z High transparency through 1:1 ratio z Shareholders of Volvo will receive 1 Ainax share per 16 Volvo shares if all shares are distributed z One class of shares in
Slide 19: Conference Call Q4 2003
Conference Call Q4 2003 18 AB Volvo 04-02-03