Volvo AB Class A · OMXSTO:VOLV_A

Volvo AB Class A — AB Volvo — Q1 2011 Earnings Presentation

25 slides from Volvo AB Class A's earnings presentation, Apr 27, 2011

  1. Slide 1: First Quarter 2011 Press Conference

    First Quarter 2011 Press Conference April 27, 2011

  2. Slide 2: Group Highlights

    Group Highlights First quarter • Operating income SEK 6.5 bn • Operating margin 9.1% • Cash flow negative SEK 4 bn Business environment • Europe: improving market conditions • Asia: strong outside Japan • South America: strong market • North America: significant improvement in demand AB Volvo First

  3. Slide 3: Volvo Group

    Volvo Group Net sales First quarter, 2011 (SEK bn) North 6% Eastern Europe America South America 18% 10% 48% Western 26% Asia Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 34% Europe Quarter 59 69 64 73 72 12 Mth. rol. 221 236 251 265 278 6% Other markets Operating income (SEK M) Sales + Increased sales of new prod

  4. Slide 4: Trucks

    Trucks Net sales Operating income SEK bn SEK M Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Quarter 1 444 2 478 2 700 3 490 4 286 Quarter 37 42 41 48 46 12 Mth. rol. 138 146 157 167 176 12 Mth. rol. -6 979 277 5 306 10 112 12 954 Margin 4,0% 6,0% 6,6% 7,3% 9,4% Highlights In Focus  I

  5. Slide 5: Mack Granite Medium Heavy Duty

    Mack Granite Medium Heavy Duty AB Volvo First Quarter 2011 5

  6. Slide 6: Heavy-duty truck market - Europe

    Heavy-duty truck market - Europe (EU members + Switzerland & Norway) Thousands (heavy trucks) Modification of definition 350 In 1991 (East Germany) and in 2000 (new member states) In 2006 (new member states) 300 2011F: 250 230-240’ 200 2010A: 150 179’ 100 50 0 90 91 92 93 94 95 96 97 98 99 '00 '01 '

  7. Slide 7: Heavy-duty truck market – North America

    Heavy-duty truck market – North America Thousands (heavy trucks) 400 350 300 2011F: 250 230-240’ 200 150 2010A: 100 142’ 50 0 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 AB Volvo First Quarter 2011 7

  8. Slide 8: Volvo Construction Equipment

    Volvo Construction Equipment Olof Persson President & CEO Volvo Construction Equipment AB Volvo First Quarter 2011 8

  9. Slide 9: Construction Equipment

    Construction Equipment Net sales Operating income SEK bn SEK M Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Quarter 1 006 2 086 1 330 1 758 1 708 Quarter 11 15 13 15 16 12 Mth. rol. -1 604 1 741 3 858 6 180 6 882 12 Mth. rol. 39 45 49 54 58 Margin, % 9,0% 13,6% 10,5% 12,0% 10,8% Highl

  10. Slide 10: Successfully executing on the BRIC strategy

    Successfully executing on the BRIC strategy More than 2 bn in investments Rapid growth and high profitability SEK 260 M invested in Volvo’s world class Shanghai facility since 2003 SEK 270 M investment in Jinan, China Volvo technology center SEK 350 M invested in Linyi, China excavator production fa

  11. Slide 11: Number 1 in China

    Number 1 in China Wheel loaders and Excavators, invoiced units # 1 position in Q1: 44,703 10.2% market share 37,754 * 12-months rolling '02 '03 '04 '05 '06 '07 '08 '09 '10 '11* es 4320 7875 10597 12283 15937 21310 23300 23567 37754 44703 AB Volvo First Quarter 2011 11

  12. Slide 12: Strengthened commitment to North American market

    Strengthened commitment to North American market USD 100 M investment Existing production: Added production: Starting production of Volvo wheel loaders, excavators 50 models 16 models and articulated haulers in addition to road machinery in North America • Reduced lead times to customers • Improved

  13. Slide 13: >50 new models available to customers in 2011

    >50 new models available to customers in 2011 F-Series G-Series C-Series Pipe layers New Graders Aftermarket Products New Pavers B-Series D-Series New Compactors and Services AB Volvo First Quarter 2011 13

  14. Slide 14: Tier 4i / Stage IIIB products open for business

    Tier 4i / Stage IIIB products open for business - Heavy applications PM (g/kWh) Tier 3 Tier 2 2006 2001  Production ramp-up & customer 0.20 deliveries currently underway 0.15  Fuel efficiency gains vary on application  Achieving quality targets (MTBF) 0.10  Volvo Group is leader Tier 4i in this

  15. Slide 15: Total world market development

    Total world market development -12M rolling trend, including domestic chinese manufacturers 2011 Market developments forecasts 400,000 Europe + 10-20% North America + 25-35% China South America 350,000 + 5-15% Asia + 10-20% China + 20-30% 300,000 250,000 Europe N. America 200,000 150,000 Asia ex.CN

  16. Slide 16: Well positioned to capitalize on market expansion

    Well positioned to capitalize on market expansion • Continue to execute strategy • Continue to capitalize on Lingong and Road Machinery investments • BRIC market focus and development • Continue to develop distribution • Maintain high flexibility in production system • Continue to launch new fuel ef

  17. Slide 17: Buses

    Buses Net sales Operating income SEK bn SEK M Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Quarter 145 259 155 221 281 Quarter 5,1 5,3 4,6 5,6 4,9 12 Mth. rol. -111 267 513 780 916 12 Mth. rol. 19,5 20,1 20,7 20,5 20,3 Margin 2,9% 4,9% 3,4% 3,9% 5,8% Highlights In Focus  Still challe

  18. Slide 18: New contracts to New York & Brazil

    New contracts to New York & Brazil AB Volvo First Quarter 2011 18

  19. Slide 19: Volvo Penta

    Volvo Penta Net sales Operating income SEK bn SEK M Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Quarter 121 312 72 73 164 Quarter 2,0 2,6 2,1 2,0 2,1 12 Mth. rol. -12 465 512 578 621 12 Mth. rol. 8,1 8,5 8,6 8,7 8,9 Margin 6,1% 11,9% 3,5% 3,6% 7,6% Highlights In Focus  Strong demand

  20. Slide 20: Volvo Penta product news

    Volvo Penta product news Agreement with Garmin on joint development of instrumentation, navigation and communication equipment for boats AB Volvo First Quarter 2011 20

  21. Slide 21: Volvo Aero

    Volvo Aero Net sales Operating income SEK bn SEK M 241 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 152 -372 224 282 28 Quarter Quarter 1,9 2,1 1,8 1,9 1,6 12 Mth. rol. 119 -281 -165 286 162 12 Mth. rol. 7,7 7,8 7,8 7,7 7,4 Margin 8,0% -17,4 12,3% 15,2% 1,7% Highlights In Focus  Stab

  22. Slide 22: Volvo Aero

    Volvo Aero Successful first flight for Boeing 747-8 Intercontinental with GEnx engines AB Volvo First Quarter 2011 22

  23. Slide 23: Financial Services

    Financial Services New financing Operating income and return on equity SEK bn SEK M Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Quarter 6,8 8,9 8,8 10,7 9,4 Quarter 14 7 48 98 179 12 Mth. rol. 28,0 29,0 31,5 35,1 37,8 ROE -2,8% -0,3% 0,0% 0,4% 2,1% Highlights In Focus  Improved port

  24. Slide 24: Group Summary

    Group Summary Earnings per share First quarter SEK  Sales 22% higher, +33% fx-adjusted  Operating income SEK 6.5 bn  Operating margin 9.1%  Cost reductions maintained  Operating Cash flow negative SEK 4.0 bn – reflecting normal seasonality Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Quarter 0,83 1,55 1,38 1,

  25. Slide 25: First Quarter 2011

    VOLVO First Quarter 2011

AB Volvo — Q1 2011 Earnings Presentation on 6ix