Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — Volvo Financial Services — Investor Day (November 2010)
11 slides from Volvo Ab Class A's investor day presentation, Nov 2, 2010
Slide 1: Financial Services 2010 Investor Day
Financial Services 2010 Investor Day
Slide 2: Volvo Financial Services at a Glance
Volvo Financial Services at a Glance Global presence As of September 30 New retail financing SEK 24.5 bn Managed assets SEK 90.9 bn Employees 1,230 Portfolio (in units) 180,100 Portfolio Contract volume by vehicle segment (in units) Other 400 UD Trucks Construction Eq. 1,800 26,300 Renault Trucks Bu
Slide 3: Our Value Proposition
Our Value Proposition • Our focus is exclusively on the Volvo Group’s brands and segments • In close relationship with the Group’s brands, we develop integrated services meeting the needs of our customers and dealers • We strengthen the customer retention and loyalty to the brands of the Volvo Group
Slide 4: Integrated Commercial Offer
Integrated Commercial Offer Mack Volvo Renault Trucks Trucks Trucks Volvo Volvo Construction Buses Business Business Areas Areas Dealers Dealers Customers Customers Equipment Volvo Volvo Aero UD Trucks Penta Volvo Financial Services Investor Day - November 2, 2010 4
Slide 5: Branded Finance Products
Branded Finance Products Volvo Financial Services Investor Day - November 2, 2010 5
Slide 6: Operating Models
Operating Models Efficient and Effective Use of Volvo Group Capital • Ability to protect Volvo Group assets • External Risks: political, financial 1. In-country (local) operations systems, etc. 2. Cross-border financing and • Scale (unit sales): current and future potential leasing • Funding: availa
Slide 7: Customer Offering
Customer Offering Operational Operational Finance Finance Installment Installment Lease* Lease* Lease Lease Credit Credit (11.3%) (11.3%) (37.2%) (37.2%) (35.4%) (35.4%) Insurance Insurance Dealer Dealer /Service /Service Receivables Receivables Financing Financing Contracts Contracts Management Man
Slide 8: Q3 Results
Q3 Results New retail financing Operating income and return on equity SEK bn SEK M Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Quarter 6.3 7.0 6.8 8.9 8.8 Quarter -3 15 14 7 48 12 Mth. rol. 33.6 28.7 28.0 29.0 31.5 ROE -3.4% -6.2% -2.8% -0.3% 0.0% Highlights In Focus z Strong North A
Slide 9: Regional Performance
Regional Performance Positive trends continue Americas: Western Europe: • US portfolio quality back to pre-crisis levels • Risk-related KPI’s steadily improving; still far from 2007/2008 levels • Latin America and Canada portfolios continue to perform well • Demand for used equipment getting stronge
Slide 10: BRIC Focus
BRIC Focus Significant Growth Markets for the Volvo Group Brazil: China: • Local finance company in operation > 15 • Local finance company established in 2006 years • Strong volume in construction equipment • Managed assets up 30% over the last year • Portfolio performing well with low • 4 BSEK port
Slide 11: Conclusion & Key Messages
CONCLUSION & KEY MESSAGES • VFS as part of the Volvo Group integrated commercial offer • We are well positioned to support Volvo Group growth in all key markets • Positive trends continue in our portfolio as we emerge from the severe economic downturn • We are preparing now for future downturns in t
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