Volvo Car Ab Class B · OMXSTO:VOLCAR_B
Volvo Car Ab Class B — Q1 2025 Earnings Presentation
26 slides from Volvo Car Ab Class B's earnings presentation, Apr 29, 2025
Slide 1: Q1 2025 Financial Results
Q1 2025 FINANCIAL RESULTS Håkan Samuelsson, President & CEO Fredrik Hansson, CFO
Slide 2: A challenging external environment
A challenging external environment Tougher market Increased pricing pressure New US import tariffs environment resulting in with higher discounting creating additional weakening volumes challenges
Slide 3: Q1 — Key financials
Q1 — Key financials Retail sales Wholesales Revenue EBIT Group (k UNITS) (k UNITS) (bn SEK) (bn SEK/%) Cash flow from operating and investing activities (bn SEK) -19% +6 -6% -12% -59% 183 198 94 4.7 172 2 83 161 2 92 1.9 -6 81 5.0% 2.3% -12 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2024 2025 2024 2025 2024 2025
Slide 4: Three cornerstones for a more resilient Volvo Cars
Three cornerstones for a more resilient Volvo Cars Tailored approach for Focused on premium BEVs Launched SEK 18 bn cost each region – Greater with PHEVs as a bridge and cash action plan to China, Americas, Europe & protect profitability Rest of World Electrified share at 43% in Q1, highest among pr
Slide 5: Financial Update
VvVotLvo Q1 2025 FINANCIAL UPDATE
Slide 6: Q1 — Key financials
Q1 — Key financials Retail sales Wholesales Revenue EBIT (k UNITS) (k UNITS) (bn SEK) (bn SEK/%) Cash flow from operating and investing activities (bn SEK) -19% +6 -6% -12% -72% 183 198 94 6.8 172 2 83 161 2 4.7 92 -6 81 1.9 1.9 7.2% 5.0% 2.3% 2.3% -12 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2024 2025 2024 20
Slide 7: Q1 — Revenue walk
Q1 — Revenue walk REVENUE BRIDGE (BN SEK) -11.0 BN SEK 93.9 (-12%) 91.9 -2.0 2.0 80.9 2.0 82.9 1.6 0.4 -14.9 -0.2 Revenue Contract Revenue Volume Sales mix Used Cars Other and Foreign Revenue Contract Revenue Q1 2024 manufacturing Q1 2024 and pricing material cost1 exchange Q1 2025 manufacturing Q1
Slide 8: Q1 — EBIT walk
Q1 — EBIT walk EBIT BRIDGE (BN SEK) EBIT BN SEK -2.8 BN SEK -4.9 2.1 6.8 4.7 1.9 -3.5 1.9 0.1 1.9 -1.4 -1.9 5.0% 7.2% 2.3% 2.3% Group EBIT JV & Associates Core EBIT Volume Sales mix Other and Foreign Core EBIT JV & Associates Group EBIT Q1 2024 Q1 2024 and pricing material cost exchange rates 1 Q1 2
Slide 9: Strong liquidity level
Strong liquidity level Cash flow from operating and investing activities -6.3 bn SEK 89 Undrawn credit facilities 73 Marketable securities 32 8 Cash 1 26 0 -11 0 -4 -3 56 47 Liquidity EBITDA Net Other Investments Financing3 Liquidity December working working March 2024 capital1 capital2 2025 1) Chan
Slide 10: Three cornerstones for a more resilient Volvo Cars
Three cornerstones for a more resilient Volvo Cars Tailored approach for Focused on premium BEVs Launched SEK 18 bn cost with PHEVs as a bridge each region – Greater and cash action plan to China, Americas, Europe & protect profitability Electrified share at 43% in Rest of World Q1, highest among pr
Slide 11: SEK bn improvement plan to protect free cash flow and profitability
PROFITABILITY SEK 18 bn improvement plan to protect free cash flow and profitability SEK bn. VARIABLE COST INDIRECT SPEND CAPEX & WORKING CAP. 3+bn. 5+bn. 10+bn. Bottom line improvement ‘26 vs. ’24 (FY FY ‘26 vs. ‘24 baseline Beyond planned reductions ‘25-’26 runrate) (FY runrate) EBIT FREE CASH FLO
Slide 12: SEK bn improvement plan to protect free cash flow and profitability
PROFITABILITY SEK 18 bn improvement plan to protect free cash flow and profitability SEK bn. VARIABLE COST INDIRECT SPEND CAPEX & WORKING CAP. 3+bn. 5+bn. 10+bn. Bottom line improvement FY ‘26 vs. ‘24 baseline Beyond planned reductions ‘26 vs. ’24 (FY runrate) (FY runrate) ‘25-’26 • Acceleration of
Slide 13: Three cornerstones for a more resilient Volvo Cars
Three cornerstones for a more resilient Volvo Cars Tailored approach for Focused on premium BEVs Launched SEK 18 bn cost each region – Greater with PHEVs as a bridge and cash action plan to China, Americas, Europe & protect profitability Rest of World Electrified share at 43% in Q1, highest among pr
Slide 14: Adapting to a more regionalised world
REGIONALISATION Adapting to a more regionalised world EUROPE GREATER CHINA AMERICAS • Started EX30 • First extended-range • Created new region production in Ghent as PHEV to be launched in Americas with US, planned China this year Canada, Latin America • EX30 ramp up in the • Looking to give larger
Slide 15: Electrification: BEVs fastest growing segment globally
ELECTRIFICATION BEVs fastest growing segment globally Volvo Cars leading in electrification • Electrified share at 43%, highest among peers Market growth Jan-Feb 2025 • BEV share at 19% Non-BEV New products in the pipeline BEV China +41% -15% • New extended range PHEV in China • All new EX60 coming
Slide 16: Summary
Summary 2025 will be challenging SEK 18 bn package to protect free cash flow and profitability No financial guidance for 2025 and 2026 Strategy for profitable growth remains
Slide 17: Volvo EX90 – World Luxury Car of the year 2025
Volvo EX90 – World Luxury Car of the year 2025 17
Slide 18: Q&A
Q&A
Slide 19: Disclaimer
Disclaimer • By accessing this document, the person to whom it is disclaimed. Analyses and opinions contained herein may provided (the “Recipient”) agrees to be bound by the be based on assumptions that, if altered, can change the following obligations and limitations. analyses or opinions expressed
Slide 20: Investments peaking with infrastructure in place, shift to SPA3 architecture
Investments peaking with infrastructure in place and as we shift towards single scalable SPA3 architecture Previous Investments (SEK bn.) Today Revised Investments (SEK bn.) Revised investments/Revenues (%) Cell-to-body New Tech Mega casting E-motor Košice factory Manufacturing Daqing factory Charle
Slide 21: EBIT development
EBIT development Volvo excl. JVs & Associates EBIT development, MSEK Volvo Car Group 10,801 8,423 8,216 6,315 6,428 6,677 6,795 6,318 5,714 6,038 6,148 5,710 5,528 5,668 7,969 4,316 3,887 5,877 3,513 5,388 5,790 5,100 4,993 4,706 4,815 4,612 4,458 1,874 3,329 3,708 3,443 3,852 2,050 1,939 Q1 Q2 Q3 Q
Slide 22: Strong net cash and prudent maturity profile
Strong net cash and prudent maturity profile MATURITY PROFILE AND SPLIT (BN SEK) 72.8 25.7 Net cash 5% 0.0 20.1 29% 27.1 7.5 6.4 5.9 0.1 47.2 5.4 66% 5.4 2.6 5.4 0.7 1.0 Loans 0.8 1.5 0.7 0.7 0.6 0.6 2.1 0.3 0.6 0.2 1.0 Green bond 0.4 0.4 Liquidity 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2
Slide 23: Quarterly performance 2021-2025
Quarterly performance 2021-2025 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 2025 MSEK Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Revenue 68,593 72,538 60,838 80,076 74,269 71,300 79,329 105,247 95,705 102,152 92,045 109,441 93,878 101,454 92,783 112,119 82
Slide 24: Financial net, tax and earnings per share
Financial net, tax and earnings per share Jan-Mar Jan-Mar MSEK 2025 2024 Operating income 1,939 4,706 Interest income and similar credits 463 681 Interest expenses and similar charges -232 -444 Other financial income and expenses -699 155 Income before tax 1,471 5,098 Income tax -496 -1,511 Income t
Slide 25: Retail sales, revenue, EBITDA, R&D, capex and cash flow 2017-2024
RETAIL SALES (K UNITS) REVENUE (BN SEK) 763 399 400 705 661 699 709 SUV 642 615 330 572 Sedan 274 282 253 263 273 359 445 525 538 613 Estate 209 469 462 101 98 99 Coupe 198 185 98 96 82 89 84 MPV 161 94 77 47 45 44 2017 2018 2019 2020 2021 2022 2023 2024 2017 2018 2019 2020 2021 2022 2023 2024 RESEA
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