Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — Investor Day (June 2003)
28 slides from Volvo Ab Class A's investor day presentation, Jun 4, 2003
Slide 1: Leif Johansson, President and CEO
Leif Johansson President and CEO
Slide 2: Volvo Group Capital Market Days - Wednesday June 4th
Capital Market Days June 4-5, 2003 Volvo Group Capital Market Days Wednesday June 4th 12.00 12.00 Lunch Lunch 13.00 13.00 Volvo VolvoGroup Group Leif LeifJohansson Johansson Financial FinancialTargets Targets Stefan StefanJohnsson Johnsson Question Question&&Answer AnswerSession Session Volvo VolvoT
Slide 3: Volvo Group Capital Market Days - Thursday June 5th
Capital Market Days June 4-5, 2003 Volvo Group Capital Market Days Thursday June 5th 07.20 07.20 Departure Departurefrom fromHotel HotelScandinavia, Scandinavia,Gothenburg Gothenburg 09.45 09.45 Arrival Arrivalin inSkövde Skövdeand andIntroduction Introduction Lars-Göran Lars-GöranMoberg Moberg 10.0
Slide 4: Volvo Group
Capital Market Days June 4-5, 2003 Volvo Group AB Volvo 2003-06-12, Slide 3
Slide 5: Strategic Position, Business Update, Two Years of Truck Integration, Opportunities
Capital Market Days June 4-5, 2003 Strategic Position Business Update Two Years of Truck Integration Opportunities AB Volvo 2003-06-12, Slide 4
Slide 6: Strong Positions in all Business Areas
Capital Market Days June 4-5, 2003 Strong Positions in all Business Areas DCX Mercedes + Setra Caterpillar FAW Volvo Bus Komatsu Volvo Group IRIS Bus Case & New Holland Dongfeng Motors Neoman Volvo CE Paccar > 16 ton Scania > 12 ton Deere Brunswick Volvo Powertrain Volvo Aero Volvo Penta DC Powersys
Slide 7: Volvo Group Growth
Capital Market Days June 4-5, 2003 Volvo Group Growth over a business cycle 2002 Sales: SEK177 bn 1992 Sales: SEK 44 bn AB Volvo 2003-06-12, Slide 6
Slide 8: Significant Market Share Gains
Capital Market Days June 4-5, 2003 Significant Market Share Gains 1992-2002 Trucks >16 t Europe 12% 27% Trucks Class 8 North America 11,3% 20,7% Buses Europe 11,6% 15% Marine Leisure Europe (-93) 44% 52% Excavators Globally (-95) 1,7% 6% AB Volvo 2003-06-12, Slide 7
Slide 9: Global Truck Market Positions
Capital Market Days June 4-5, 2003 Global Truck Market Positions Heavy Duty Vehicles - 2002 1,000 units DCX 142 FAW 125 Volvo Group 119 DFM 85 Paccar 79 Scania 41 MAN 41 Iveco 34 Intern'l 31 AB Volvo 2003-06-12, Slide 8
Slide 10: Business Environment
Capital Market Days June 4-5, 2003 Business Environment • Trucks North America 1999-2002 - 42% • Trucks Europe 2000-2002 -13% • Aircraft Deliveries “9.11” - 2003 -33% • European Coach Market 1999-2002 -20% • Heavy Construction Equipment North America -30% 1999-2003 AB Volvo 2003-06-12, Slide 9
Slide 11: Maintained Dividend in a Cyclical Downturn
Capital Market Days June 4-5, 2003 Maintained Dividend in a Cyclical Downturn (SEK bn) Dividend (SEK) Operating Income Cash flow & Direct Return % 5.1 8 5.6 2,8 1998 2002 1998 2002 1998 2002 AB Volvo 2003-06-12, Slide 10
Slide 12: Net sales, Operating income, Earnings per share
Capital Market Days June 4-5, 2003 Net sales (SEK bn) Europe North 62% America Asia 23% 7% Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 South 40,4 49,3 41,5 45,9 40,9 America Rest of 177,3 179,4 179,8 177,1 177,6 2% the world 6% Quarter 12 months rolling Operating income Earnings per share (SEK M) (SEK) Q1 02 Q2 0
Slide 13: Business Area Highlights - Volvo Buses & Volvo Aero
Capital Market Days June 4-5, 2003 Business Area Highlights Volvo Buses & Volvo Aero The tourist coach market remains Continued weak air traffic weak New after market contracts Improvements in N. America Adaptation to a declining market Internal productivity and cost management AB Volvo 2003-06-12,
Slide 14: Business Area Highlights - Volvo Penta
Capital Market Days June 4-5, 2003 Business Area Highlights Volvo Penta Call center Safety Service Alarm Strong market position through product renewal Strong sales development for marine leisure in Europe and N. America Industrial engines in Asia at all-time high AB Volvo 2003-06-12, Slide 13
Slide 15: Two Years of Truck Integration
Capital Market Days June 4-5, 2003 Two Years of Truck Integration 9 Consolidation of diesel engine program 9 Sharing of vehicle architecture 9 Brand strategy in place 9 Purchasing gains 9 Expansion of Customer Finance 9 Industrial restructuring 9 Dealer optimization in North America AB Volvo 2003-06
Slide 16: 2000th Mack at New River Valley
Capital Market Days June 4-5, 2003 2000th Mack at New River Valley AB Volvo 2003-06-12, Slide 15
Slide 17: Dealer Optimization North America
Capital Market Days June 4-5, 2003 Dealer Optimization North America Volvo Mack Parts & Service AB Volvo 2003-06-12, Slide 16
Slide 18: Volvo Financial Services
Capital Market Days June 4-5, 2003 Volvo Financial Services AB Volvo 2003-06-12, Slide 17
Slide 19: Renault Trucks
Capital Market Days June 4-5, 2003 Renault Trucks Positive Development and Contributing AB Volvo 2003-06-12, Slide 18
Slide 20: Mack, Renault Trucks & Volvo Trucks Shared Architecture
Capital Market Days June 4-5, 2003 Mack, Renault Trucks & Volvo Trucks Shared Architecture AB Volvo 2003-06-12, Slide 19
Slide 21: Product Development with Customer Focus
Capital Market Days June 4-5, 2003 Product Development with Customer Focus Market and Customers • Market and Customer • Customer Offer Commitment • Marketing and Market & Customer Focus • Brand Definition Communication Powertrain Product Boards 3P Cost and Synergies Technological Leadership AB Volvo
Slide 22: Global HD Diesel Engine Positions
Capital Market Days June 4-5, 2003 Global HD Diesel Engine Positions* Vovlo Group 123,300 DCX 109,500 Caterpillar 86,000 Cummins 68,700 MAN 51,300 Scania 48,400 Hyundai 45,500 * Engine Production 2002, 9 - 18 liters (excluding licensees / JV’s) KamAZ 34,600 Source Competitors: Power Systems Research
Slide 23: MD/HD Engine Consolidation
Capital Market Days June 4-5, 2003 MD/HD Engine Consolidation D16 E9 16 ISX N14 S60 Heavy 12/13 S60 Duty D12 TD120 ETech 11 Engine dCi11 ISM 9-16 F3-10 9 Liters D10 ISL S50 ISC D7 S40 1013-6 Medium TD70 7 2012-6 F2 -6L ISB 6 Duty D6 Engines 1013-4 F2 -4L ISB 4 1004 5 5-7 Liters 2012-4 18 2 AB Volvo
Slide 24: Competitive Advantages through Synergies Achieved
Capital Market Days June 4-5, 2003 Competitive Advantages through Synergies Achieved 3P Powertrain Parts Information Technology, Logistics and Others AB Volvo 2003-06-12, Slide 23
Slide 25: Engine Penetration
Capital Market Days June 4-5, 2003 Engine Penetration North America 99% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100 80 60 44% 40 36% 35% 26% 20 18% 19% 20% 17% 10% 12% 13% 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Q103 Volvo Mack AB Volvo 2003-06-12, Slide 24
Slide 26: Emerging Markets
Capital Market Days June 4-5, 2003 Emerging Markets AB Volvo 2003-06-12, Slide 25
Slide 27: Strong Product Renewal
Capital Market Days June 4-5, 2003 Strong Product Renewal AB Volvo 2003-06-12, Slide 26
Slide 28: Summary
Capital Market Days June 4-5, 2003 Summary •• Shared SharedArchitecture Architecture •• Commercial Commercialstructure structurein inChina Chinaand and strategic strategicpositions positionsin inEastern EasternEurope Europe •• Closer Closerto tocustomers customersat atlower lowercost cost AB Volvo 2