Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — AB Volvo — Q1 2024 Earnings Presentation
30 slides from Volvo Ab Class A's earnings presentation, Apr 17, 2024
Slide 1: First Quarter 2024 - Martin Lundstedt
Slide 2: First Quarter 2024 - Mats Backman
VOLVO GROUP votLvao First quarter highlights * Net sales amounted to SEK 131.2 bn, no impact from FX + Adjusted operating income reached SEK 18.2 bn (18.6), corresponding to a margin of 13.8% (14.1) * Operating cash flow in Industrial Operations amounted to SEK 8.9 bn (5.0) * Net cash position in In
Slide 3: VOLVO GROUP
VOLVO GROUP votLvao Volume development Volvo Group First quarter 2024 TRUCK DELIVERIES <== 12 months 240' units 10% h 5 55.5 Qi Q2 Q@3 Q4 Qi Q@2 G3 a4 al 2022 2023 2024 MACHINE DELIVERIES === 12 months 60' units 20.8 14.5 Qi @2 Q3 Q4 QI Q2 Q3 Q4 ai 2022 2023 2024 2024-04-17
Slide 4: First quarter highlights
VOLVO GROUP votLvao Electrification progress Volvo Group First quarter 2024 ORDER INTAKE, FULLY ELECTRIC VEHICLES «== 12 months 5,680 units -18% 979. 729 Qi @2 Q3 @4 Qi @2 @3 @4 a 2022 2023 2024 DELIVERIES, FULLY ELECTRIC VEHICLES == 12 months 5,317 units +33% 1281 961 357 Qi Q2 Q@8 Q4 Qt @2 @8 4 a
Slide 5: Volume development
1400 , 00 50 0 45 0 1200 , 00 40 0 1000 , 00 35 0 30 0 80 0, 00 25 0 60 0, 00 20 0 15 0 40 0, 00 10 0 20 0, 00 50 0,000 0
Slide 6: Electrification progress
35 0, 00 150 130 30 0, 00 110 25 0, 00 90 20 0, 00 70 15 0, 00 50 10 0, 00 30 50 , 00 0 10 0,000 -1 0
Slide 7: Group news
Group news Volvo Group First quarter 2024 votLvao * Acquisition of battery business from Proterra completed * Agreement with Westport for joint venture * Annual General Meeting of AB Volvo 2024-04-17 7
Slide 8: votLvao
votLvao Trucks news * Volvo Trucks unveiled an all-new heavy-duty Volvo VNL product family for North American market * Volvo Group will add North _ American heavy-truck capacity * The all-new Volvo Aero heavy- duty truck range launched Volvo Group First quarter 2024 2024-04-17 8
Slide 9: Group news
votLvao Trucks news * Volvo Group, Renault Group and CMA CGM Group completed creation of Flexis SAS, a joint venture for fully electric software defined urban applications Volvo Group First quarter 2024 2024-04-17 9
Slide 10: Trucks news
TRUCKS votLvao Market environment NORTH AMERICA HD EUROPE HD 400 400 300 300 = _ -\--= 200 j}=f— 200 woo 2023: 330° 100 2023: 340° ° Forecast 2024: 290’ ° Forecast 2024: 280’ 02 04 06 08 10 12 14 16 18 20 22 24 02 04 06 08 10 12 14 16 18 20 22 24 BRAZIL HD INDIA HD+MD CHINA HD+MD 150 450 1,800 1,350
Slide 11: Trucks news
TRUCKS Book to bill votLvao Trucks book to bill 88% in the quarter and 81% 12 months rolling NORTH AMERICA EUROPE 74 Qi Q2 Q@3 Q4 Qi @2 Q3 4 Qi 2022 2023 2024 Qi Q@2 Q@3 Q4 Qi @2 Q3 4 Qi 2022 2023 2024 -) = Book to Bill, % —— Baseline, 100% = = Book to Bill 12M, % SOUTH AMERICA Qi Q2 Q@3 Q4 Qt Q2 Q@
Slide 12: Trucks market environment
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Slide 13: Trucks book to bill
Construction Equipment news * Introduction of the electric and grid connected EW240 material handler Volvo Group First quarter 2024 vVvoLlLv 2024-04-17 13
Slide 14: IHS Markit content notice
CONSTRUCTION EQUIPMENT votLvao Market environment NORTH AMERICA EUROPE 250 250 200 200 150 150 100 100 50 50 } Forecast 2024: -10% to 0% 5 Forecast 2024: -20% to-10% 04 06 08 10 12 14 16 18 20 22 24 04 06 08 10 12 14 16 18 20 22 24 SOUTH AMERICA ASIA (excl, CHINA) 400 250 —s— 75 200 ste Forecast 202
Slide 15: Construction Equipment news
CONSTRUCTION EQUIPMENT Book to bill Construction equipment book to bill 96% in the quarter and 82% 12 months rolling votLvao NORTH AMERICA . . _ 83 Qi Q@2 Q@3 Q4 Qi @2 Q3 4 Qi 2022 2023 2024 EUROPE Qi Q@2 Q@3 Q4 Qi @2 Q@3 Q4 Qi 2022 2023 2024 . so \ & — Base line, 100% = Book to Bill, % = = Book to
Slide 16: Construction Equipment market environment
Buses * The global Volvo BZR Electric for city and coach applications was launched in March * In Q1, the wind-down of the complete bus production in Poland was finalized * Book to bill 67% in the quarter and 105% 12-months rolling Volvo Group First quarter 2024 2024-04-17 16
Slide 17: Construction Equipment book to bill
Volvo Penta * The IPS Professional Platform for superyachts and commercial vessels was launched in Q1 * Book to bill 87% in the quarter and 84% 12-months rolling Volvo Group First quarter 2024 votLvao 2024-04-17 7
Slide 18: Buses
Financial Services * Portfolio growth across most markets * Penetration levels stable * Solid earnings and stable portfolio performance Volvo Group First quarter 2024 votLvao NEW RETAIL FINANCING & PENETRATION RATE* SEK bn —— Penetration rate 12 months 27 % Qi @2 Q@3 @4 at @2 Q@3 4 ai 2022 2023 2024
Slide 19: Volvo Penta
Slide 20: Financial Services
votLvao VOLVO GROUP Net sales per market 131.2 America America Volvo Group First quarter 2024 and excl FX Oceania NET SALES SEK bn 131.3 0.8 1.6 131.4 a1 -1.0 -0.1 -0.3 Q12023 Europe North South Asia Africa Q12024 FX Q12024 2024-04-17 20
Slide 21: votLvao
votLvao VOLVO GROUP Adjusted operating income contributors ADJUSTED OPERATING INCOME SEK bn ~ + Price realization + Material cost Volume Industrial utilization S&A expenses R&D expenses — Q1 Gross. Cash Net R&D Selling Admin Other Q1 FX a 2023 Income R&D Cap./Amo. 2024 2024 exel FX Volvo Group First
Slide 22: Net sales per market
VOLVO GROUP Cash flow, financial position and ROCE votLvao in Industrial Operations OPERATING CASH FLOW SEKbn =< 12 months SEK 49,7 bn 8.9 5.0 | 5.4 a a2 a3 a4 at a2 a3 a4 a 2022 2023 2024 Volvo Group First quarter 2024 ROCE % 12 months 37.7% 30.3% 25.3% ai a2 @3 a4 a1 a2 a3 a4 at 2022 2023 2024 FIN
Slide 23: Adjusted operating income contributors
Trucks votLvao Net sales and adjusted operating income NETSALES = ===12 months SEK 373 bn SEK bn +0% (excl. FX +1%) A , 89.9 89.6. 69.6 a a2 a3 @4 a @2 a3 a4 at 2022 2023 2024 Volvo Group First quarter 2024 ADJUSTED OPERATING INCOME SEK bn 7 ~ + Price realization 134 . + Material cost - Volume Ny -
Slide 24: Cash flow, financial position and ROCE
votLvao Construction Equipment Net sales and adjusted operating income NETSALES == 12 months SEK 103 bn SEK bn 9% (excl. FX -8%) Ql @2 @3 @4 Qt Q@2 Q@3 @4 a 2022 2023 2024 Volvo Group First quarter 2024 ADJUSTED OPERATING INCOME SEK bn 46 + Price realization + Material cost 3.7 Ny - Brand & market m
Slide 25: Trucks: net sales and adjusted operating income
Buses votLvao Net sales and adjusted operating income NETSALES === 12 months SEK 23 bn SEK bn +21% (excl. FX +19%) \ 5.2 Ql @2 Q@3 Q4 Qi @2 @3 a4 Ql 2022 2023 2024 All numbers restated to exclude Nova Bus which is now included in segment ‘Group Functions and other’ Volvo Group First quarter 2024 ADJ
Slide 26: Construction Equipment: net sales and adjusted operating income
votLvao Volvo Penta Net sales and adjusted operating income NET SALES <= 12 months SEK 21 bn ADJUSTED OPERATING INCOME ADJUSTED OPERATING INCOME SEK bn SEKM SEK M (margin)* © == 12 months 14.3% -8% Currency SEK +11M (excl. FX-7%) 1271 1271 988 f 1 769 (22.7%) (19.1%) 5.6 A, 1"7o, 5.2 (18.3%) ~ + Pri
Slide 27: Buses: net sales and adjusted operating income
votLvao Financial Services Credit portfolio and profitability CREDIT PORTFOLIO & ROE* SEK bn ROE 12 months 13.7% 270 227 176 Qi Q@2 Q@3 @4 Qt Q2 Q3 Q4 ai 2022 2023 2024 Volvo Group First quarter 2024 ADJUSTED OPERATING INCOME* SEKM 871 ™ Portfolio growth - Selling expenses - Credit provisions 1,009
Slide 28: Volvo Penta: net sales and adjusted operating income
VOLVO GROUP votLvao First quarter highlights * Net sales amounted to SEK 131.2 bn, no impact from FX + Adjusted operating income reached SEK 18.2 bn (18.6), corresponding to a margin of 13.8% (14.1) * Operating cash flow in Industrial Operations amounted to SEK 8.9 bn (5.0) * Net cash position in In
Slide 29: Financial Services: credit portfolio and profitability
New River Valley, Virginia 29
Slide 30: First quarter highlights