Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — AB Volvo — Q3 2009 Earnings Presentation
25 slides from Volvo AB Class A's earnings presentation, Oct 23, 2009
Slide 1: Third Quarter 2009
Third Quarter 2009 Press Conference, October 23, 2009
Slide 2: Group Highlights
Group Highlights Third quarter – Sales stabilized on low level – Operating loss SEK 3.3 bn – Cost reductions effective – Successful reduction of inventories Business environment – Europe; bottoming out and some signs of improvement – Asia; recovery under way – North America; no clear signs of recove
Slide 3: Volvo Group
Volvo Group Net sales Third quarter (SEK bn) 4% Eastern Europe North 9% South America America 18% 24% Asia 44% Western 38% Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Europe Quarter 70 78 56 54 48 12 Mth. rol. 311 305 284 258 237 7% Other markets Operating income (SEK M) Operating income - Significantly lower sal
Slide 4: Annual cost level
Annual cost level - Activities and development so far SEK bn 110 105 8 bn 100 5 bn 95 5 bn 90 3 bn 85 80 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 - Annualized run rate expected to be reduced by SEK 21 bn from the end of 2009. AB Volvo Third Quarter 2009 4
Slide 5: Volvo Group – Cash Flow
Volvo Group – Cash Flow Industrial Operations SEK bn 10 5 0 -5 -10 -15 -20 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3 Cash Flow 4,9 -6,1 1,8 -15,7 -2,9 -1,4 AB Volvo Third Quarter 2009 5
Slide 6: Working Capital
Working Capital Inventories, Volvo Group Industrial Operations SEK bn 60 • Operating cash flow; negative 55 1.4 bn in the quarter 50 13 bn • Focus on working capital 45 - Receivables - 1.6 bn - Inventories - 3.4 bn 40 - Payables + 0.7 bn 35 - Other + 2.5 bn 30 Total change - 1.8 bn Q408 Q109 Q209 Q3
Slide 7: Volvo Group – Net Financial Debt
Volvo Group – Net Financial Debt Industrial Operations Net debt, SEK bn 60,0 85.8% 50,0 40,0 69.6% 30,0 Changes in Net financial debt 20,0 - Cash Flow 1.4 bn 10,0 - Currency - 1.9 bn - Other - 0.2 bn 0,0 Q408 Q109 Q209 Q309 Pensions 9,2 9,8 10,1 9,5 Total - 0.7 bn Financial Debt 20,5 35,6 41,0 41,0
Slide 8: Volvo Group Funding
Volvo Group Funding Cash & Committed Liquidity position SEK 64.5 bn Facilities - SEK 33.5 bn in liquid assets - SEK 31 bn in undrawn Committed Facilities 70 60 - New US bond USD 750 M in October 50 Maturity structure Industrial operation 40 30 20 10 0 09Q4 10Q1 10Q2 10Q3 10Q4 11Q1 11Q2 11Q3 11Q4- 12
Slide 9: Trucks
Trucks Net sales Operating income SEK bn SEK M Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Quarter 46 54 37 34 30 Quarter 2 653 257 -2 382 -4 778 -2 329 12 Mth. rol. 207 204 190 171 155 12 Mth. rol. 16 054 12 167 5 353 -4 250 -9 232 Margin 5,7% 0,5% -6,4% -14,3% -7,7% Highlights In F
Slide 10: Heavy-duty truck market - Europe
Heavy-duty truck market - Europe (EU members + Switzerland and Norway) Units, Thousands (heavy trucks) 350 Modification of definition 329 In 1991 (East Germany) and in 2000 (new member states) 319 In 2006 (new member states) 300 256 250 200 178 229 150 ? 2009: 100 116 down >50% 50 0 90 91 92 93 94 9
Slide 11: Heavy-duty truck market – North America
Heavy-duty truck market – North America Units, Thousands (heavy trucks) 400 349 350 308 300 250 225 208 200 185 194 171 150 ? 100 122 2009: down 50 30-40% 0 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 AB Volvo Third Quarter 2009 11
Slide 12: Net order intake – positive trend
Net order intake – positive trend Trucks Net order intake Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Change 60000 Q3-Q2 Europe 115 -1,549 7,494 8,980 8,189 -9% 50000 North America 7,578 4,037 2,869 3,257 5,093 56% 40000 South America 5,096 1,087 1,731 2,998 5,284 76% 30000 Asia 14,607 7,868 5,712 7,884 10,079 28
Slide 13: Renault Premium Optifuel
Renault Premium Optifuel AB Volvo Third Quarter 2009 13
Slide 14: Construction Equipment
Construction Equipment Net sales Operating income SEK bn SEK M Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Quarter 134 -1 256 -1 395 -1 259 -787 Quarter 13,2 11,2 8,2 9,2 8,2 12 Mth. rol. 4 099 1 808 -888 -3 776 -4 697 12 Mth. rol. 60,6 56,3 49,3 41,8 36,7 Margin, % 1,0% -11,2 -17,1
Slide 15: Construction Equipment
Construction Equipment New Volvo 8820 pavers in Beijing AB Volvo Third Quarter 2009 15
Slide 16: Buses
Buses Net sales Operating income SEK bn SEK M Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Quarter -72 72 -95 -118 -91 Quarter 3,8 5,6 4,0 4,7 4,0 12 Mth. rol. -56 -77 -50 -214 -232 12 Mth. rol. 16,9 17,4 17,7 18,1 18,3 Margin -1,9% 1,3% -2,4% -2,5% -2,3% Highlights In Focus z Bus mar
Slide 17: Buses
Buses BRT, Bi-articulated buses to Transmilenio in Bogota and Sao Paolo AB Volvo Third Quarter 2009 17
Slide 18: Volvo Penta
Volvo Penta Net sales Operating income SEK bn SEK M Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Quarter 198 -46 -97 -165 25 Quarter 2,7 2,4 2,0 2,3 1,9 12 Mth. rol. 1 152 928 513 -110 -283 12 Mth. rol. 12,0 11,5 10,4 9,3 8,6 Margin 7,4% -2,0% -4,8% -7,3% 1,3% Highlights In Focus z We
Slide 19: Volvo Penta Product News
Volvo Penta Product News New industrial engines on Group diesel platform D13 (TAD1345VE) AB Volvo Third Quarter 2009 19
Slide 20: Volvo Aero
Volvo Aero Net sales Operating income SEK bn SEK M Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Quarter 78 141 83 28 108 Quarter 1,7 2,4 2,0 2,0 1,8 12 Mth. rol. 414 359 306 330 360 12 Mth. rol. 7,2 7,6 7,8 8,1 8,2 Margin 4,7% 5,9% 4,1% 1,4% 6,1% Highlights In Focus z Airlines face ma
Slide 21: Volvo Aero
Volvo Aero Important contract on 100 MRJ aircraft with PW1000G engine AB Volvo Third Quarter 2009 21
Slide 22: Financial Services
Financial Services New retail financing Operating income and return on equity SEK bn SEK M Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q3 08 Q4 08 Q1 09 Q2 09 Q2 09 Quarter 10,9 11,9 7,5 7,9 6,3 Quarter 391 238 -396 -296 -3 12 Mth. rol. 44,8 44,5 42,1 38,2 33,6 ROE 13,9% 12,6% 5,0% -0,5% -3,4% Highlights In Focus
Slide 23: Financial Services
Financial Services Total managed assets Penetration on new financing (SEK bn) Volvo Volvo Renault Mack Buses W Europe Americas E Europe Asia CE Trucks Trucks Trucks Q308 49 42 13 2 Q308 37% 31% 13% 21% 20% Q309 43 41 11 7 Q309 34% 27% 32% 19% 15% AB Volvo Third Quarter 2009 23
Slide 24: Group Summary
Group Summary Earnings per share Third quarter SEK • Sales 31% lower than Q3-08, -39% adjusted for currency • Operating loss reduced • Successful reduction of inventories: SEK 3.4 bn • Operating cash flow – positive trend Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 • Net debt development stabilized Quarter 0,98 -
Slide 25: Third Quarter 2009
VOLVO Third Quarter 2009