Volvo Car Ab Class B · OMXSTO:VOLCAR_B
Volvo Car Ab Class B — Q3 2024 Earnings Presentation
24 slides from Volvo Car Ab Class B's earnings presentation, Oct 23, 2024
Slide 1: Q3 2024 Financial Results
Q3 2024 FINANCIAL RESULTS Jim Rowan, President & CEO Johan Ekdahl, CFO
Slide 2: Q3 – Building resilience in a turbulent world
Q3 – Building resilience in a turbulent world Growth Market Share Electrified Retail deliveries up 3% Increased market share 48% - Electrified Cars in Europe from 1.7% to 2.4% (25% - BEVs) Gross Margin Core EBIT % Cash flow 20.5% 6.2% -0.4bn SEK Volvo Car Group Results Presentation Q3 2024
Slide 3: Continued strong performance in electrification
Continued strong performance in electrification Electrified % of total volume 50-60 48 48 41 41 39 41 34 36 22 23 23 23 20 25 23 20 21 18 26 25 18 18 21 16 13 16 7 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2025 2022 2023 2024 Ambition PHEV Fully electric cars Volvo Car Group Results Presentation Q3 2024
Slide 4: Intensifying market turbulence
Intensifying market turbulence Weakening demand Retail deliveries Free Cash Flow Macroeconomic headwinds Expect minimal growth in Q4 Free cash flow expected at affecting demand in key Full year sales growth of 7-8% single digit negative SEK bn regions (from 12-15%) in 2024 (from neutral) Volvo Car G
Slide 5: Geared for profitable growth
Geared for profitable growth (SPA2) (SPA3) (SPA3) (SPA3) (SPA3) SPA2 Volvo Car Group Results Presentation Q3 2024
Slide 6: Slide 6
Slide 7: Financial Update
Q3 2024 FINANCIAL UPDATE Volvo Car Group Results Presentation Q3 2024
Slide 8: Q3 – Key financials
Q3 – Key financials Retail sales Revenue EBIT / margin Cash flow (k UNITS) (bn SEK) (bn SEK/%) from operating and investing activities Contract manufacturing (bn SEK) 6.1 +3% +1% 5.8 5.7 167 173 92 93 4.5 7 5 85 88 4.8% 6.7% 6.2% 6.2% 1.7 Q3 Q3 Q3 Q3 Q3 Q3 2023 Q3 Q3 2024 -0.4 2023 2024 2023 2024 20
Slide 9: Q3 – Revenue walk
Q3 – Revenue walk REVENUE BRIDGE (BN SEK) 5.4 92.8 92.0 +2% 5.0 2.0 87.3 -1.6 85.3 -1.6 -6.8 -1.8 Revenue Contract Revenue Q3 Volume Deferred Sales mix Foreign Other1 Revenue Q3 Contract Revenue Q3 2023 manufacturing 2023 revenue and pricing exchange 2024 manufacturing Q3 2024 Excl contract rates Ex
Slide 10: Q3 – EBIT walk
Q3 – EBIT walk EBIT BRIDGE (BN SEK) EBIT BN SEK +1.3 BN SEK -0.4 1.7 6.1 3.2 5.7 0.1 5.8 0.0 4.5 -2.4 4.8% 6.7% -1.2 6.2% 6.2% EBIT Q3 JVs & EBIT Q3 Volume Sales mix Foreign Other1 EBIT Q3 JVs & EBIT Q3 2023 Associates 2024 and pricing exchange 2024 Associates 2024 Excl JVs & rates Excl JVs & Associ
Slide 11: Q3 - Solid liquidity level
Q3 - Solid liquidity level Cash flow from operating and 67.4 63.5 investing activities -0.4 bn SEK 2.4 23.9 19.5 Undrawn credit facilities 10.3 Marketable securities -3.5 3.5 Cash 0.6 4.0 -9.6 39.9 43.0 Liquidity EBITDA Net working Other Investments Financing3 Liquidity June capital1 working Septemb
Slide 12: Investments peaking with infrastructure in place, shift to single scalable SPA3
Investments peaking with infrastructure in place and as we shift towards single scalable SPA3 architecture Today Investments (SEK bn.) Investments/Revenues (%) New Tech Manufacturing Platforms SPA2 (Gen 2) Volvo Car Group Results Presentation Q3 2024
Slide 13: Financial Summary
Financial Summary o Core EBIT of SEK 5.7 bn and core EBIT margin of 6.2% o Stable gross margins of 20.5% o Neutral free cash flow in Q3 o Solid balance sheet and liquidity levels o As of Q2, Polestar earnings are no longer reflected in group EBIT Volvo Car Group Results Presentation Q3 2024
Slide 14: Looking ahead
Looking ahead Headwinds Value Creation Growth Industry likely to remain Protecting future cash Expect minimal volume under pressure flows by doing strategic growth in Q4 investments now FY 2024 sales growth of 7-8% Free Cash Flow Products Technology 2024 – Single digit Balanced portfolio of BEVs, Vo
Slide 15: Q&A
Q&A Volvo Car Group Results Presentation Q3 2024
Slide 16: Disclaimer
Disclaimer • By accessing this document, the person to whom it connection with the use of or reliance on this is provided (the “Recipient”) agrees to be bound by document and any such liability is expressly the following obligations and limitations. disclaimed. Analyses and opinions contained • This
Slide 17: Outgrow the premium car market
Ambitions GROWTH EBIT FREE CASH FLOW (excl. JVs and Associates) Outgrow Neutral 2025 the premium 7–8% Strong 2026+ car market UNTIL 2026 FY 2026 *Volume CAGR 2023-26
Slide 18: Electrified Ambitions
50–60% Ambitions 90–100% Electrified Electrified 2025 2030 30–35% 65–75% CO2 reduction per car CO2 reduction per car
Slide 19: EBIT development
EBIT development EBIT development, MSEK 8,423 8,216 6,038 10,801 6,315 6,428 6,677 6,795 5,710 5,528 5,714 5,668 6,148 4,316 3,887 7,969 5,877 3,513 5,100 5,388 5,790 4,993 4,458 4,706 4,815 3,708 4,612 3,443 3,329 2,050 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023
Slide 20: Strong net cash and prudent maturity profile
Strong net cash and prudent maturity profile 67.4 MATURITY PROFILE AND SPLIT (BN SEK) 23.9 Net cash 14.5 11% 6% 0.6 19% 29.0 7.0 6.7 6.2 0.8 6.0 0.1 43.0 5.6 63% 5.7 5.6 5.6 2.4 0.5 Loans 1.5 0.4 0.3 1.4 0.0 0.0 Bonds 0.2 0.4 0.4 0.4 Green bond Liquidity 2024 2025 2026 2027 2028 2029 2030 2031 2032
Slide 21: Quarterly performance 2020-2024
Quarterly performance 2020-2024 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 (MSEK) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenue 56,517 55,242 65,763 85,311 68,593 72,538 60,838 80,076 74,269 71,300 79,329 105,247 95,705 102,152 9
Slide 22: Financial net, tax and earnings per share
Financial net, tax and earnings per share Jul-Sep Jul-Sep MSEK 2024 2023 Operating income 5,790 4,458 Interest income and similar credits 479 658 Interest expenses and similar charges -385 -290 Other financial income and expenses 170 -104 Income before tax 6,054 4,722 Income tax -1,698 -1,503 Income
Slide 23: Retail sales, revenue, R&D, capex, EBITDA and operating cash flow
RETAIL SALES (K UNITS) REVENUE (BN SEK) 705 661 699 709 399 642 615 SUV 330 572 253 274 263 282 359 445 Estate 209 273 469 525 462 538 Sedan 198 185 161 47 94 77 1 45 Coupe 89 101 98 99 98 96 24 82 37 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 RESEARCH AND DEVELOPMENT (BN
Slide 24: Volvo
VOLVO