Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — AB Volvo — Q3 2023 Earnings Presentation
29 slides from Volvo Ab Class A's earnings presentation, Oct 18, 2023
Slide 1: Third Quarter 2023
THIRD QUARTER 2023 Martin Lundstedt President and CEO Volve Group Third quarter 2023 2023-10-18
Slide 2: Third quarter highlights
Volvo Group Third quarter highlights * Net sales increased to SEK 132.4 bn, an increase of 9% adjusted for FX * Adjusted operating income reached SEK 19.1 bn (11.9), corresponding to a margin of 14.4% (10.3) * Operating cash flow in Industrial Operations amounted to SEK 5.6 bn (14.6) * ROCE 33.7% (2
Slide 3: Volume development
votLuvao Volvo Group Volume development TRUCK DELIVERIES MACHINE DELIVERIES == 12 months 243' units +4% == 12 months 66' units ji __ \ 53.3 55.3 44.0 Q3 Q4 Qi Q2 G3 Q4 Qi Q2 Q3 G3 Q4 QI Q@2 Q3 Q4 Qt Q2 Q3 2021 2022 2023 2021 2022 2023 Volvo Group Third quarter 2023, 2023-10418 3
Slide 4: Electrification progress
Volvo Group Electrification progress Including Designwerk and Nova Bus Volvo Group Third quarter 2023, votLuvao ORDER INTAKE, FULLY ELECTRIC VEHICLES === 12 months 5,985 units 1,604 1,225 434 Q@3 Q@4 QI @2 G3 G4 Qt Q2 Q@3 2021 2022 2023 DELIVERIES, FULLY ELECTRIC VEHICLES == 12 months 4,141 units 1,
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Slide 7: Trucks news
votLuvao Trucks news * Renault Trucks taking heavy-duty electric orders since Q3 and starts serial production in Bourg-en-Bresse, France, in November * Volvo Autonomous Solutions entered a long- term collaboration with Boliden to deploy autonomous solutions * Volvo Defense entered a 7-year framework
Slide 8: Trucks news
votLuvao Trucks news * Volvo Group, Renault Group and CMA CGM Group join forces to address the growing needs of decarbonized and efficient logistics with an all-new generation of electric vans * Volvo Group, through Renault Trucks, and Renault Group have successfully worked together on light commerc
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Slide 10: Trucks: quarterly orders and deliveries
Trucks Quarterly orders -27% and deliveries +4% NORTH AMERICA s==Orders «===Deliveries Q3 Q4 Ql Q2 Q3 24 QI Q2 3 2021 2022 2023 Orders -7% Deliveries +13% SOUTH AMERICA TY F7n0r°0- ==Orders ===Deliveries votLuvao EUROPE Orders «=mDeliveries Q@3 @4 Qi @2 Q@3 Q4 QI Q2 Q@3 2021 2022 2023 Orders -35% AF
Slide 11: Includes content supplied by IHS Markit . Copyright © IHS Markit (2022). All rights
Includes content supplied by IHS Markit . Copyright © IHS Markit (2022). All rights reserved.
Slide 12: Construction Equipment news
votLuvao Construction Equipment news * The fully electric 23-ton excavator, EC230, rolled out to a range of key markets in Europe ° First electric power unit delivered to a customer in Sweden Volvo Group Third quarter 2023 2023-10-18 12
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Slide 14: Construction Equipment: orders and deliveries
votLuvao Construction Equipment Quarterly orders -27% and deliveries -21% NORTH AMERICA EUROPE irders =m Deliveries Orders <===Deliveries G3 G4 Qt Q2 G8 G4 at Q@2 @ G3 G4 Qi Q2 @3 G4 a a2 G 2021 2022 2023-2021 2022 2023 Orders +196% Orders -56% Deliveries +33% Deliveries -4% ASIA SOUTH AMERICA AFRIC
Slide 15: Buses
votLuvao Buses * Orders increased by 6% * Deliveries increased by 4% * Agreement signed with MCV to manufacture bodies for electric city buses * Electric bus orders to Warrington Borough Council and Lothian ‘ Buses in the UK , e;; Go electric with Volvo Pe Volvo Group Third quarter 2023 2023-1048 16
Slide 16: Volvo Penta
Volvo Penta * Orders decreased by 28% * Deliveries decreased by 9% * Volvo Penta continues to appoint dedicated dealers for industrial business Volvo Group Third quarter 2023 votLuvao 2023-10-18 16
Slide 17: Financial Services
votLuvao Financial Services * Record business volume for a third quarter * Portfolio growth across most key markets * Portfolio performance continues to be good Volvo Group Third quarter 2023, NEW RETAIL FINANCING & PENETRATION RATE* SEK bn == Penetration rate 12 months 27% 29.2 24.8 19.0 a3 Q4 Qt @
Slide 18: Third Quarter 2023
voLuvoe THIRD QUARTER 2023 Jan Ytterberg Volve Group Third quarter 2023 2023-10-18
Slide 19: Net sales per market
votLuvao Volvo Group Net sales per market NET SALES SEK bn Currency SEK +6.8 bn 67 0.0 14 132.4 10.0 — _ : 14.9 pee 07 Q3 2022 Europe North South Asia Africa and Q3 2023 America America Oceania Volvo Group Third quarter 2023 2023-1048 19
Slide 20: Adjusted operating income contributors
votLuvao Volvo Group Adjusted operating income contributors ADJUSTED OPERATING INCOME SEK bn Currency SEK +1,2 bn ~ + Price realization 9.3 120 -0.3 - Production costs Ny - Selling expenses - R&D expenses Q3 Gross Cash NetR&D Selling Admin Other Q3 2022 Income R&D Cap./Amo. 2023 Volvo Group Third qu
Slide 21: Cash flow, financial position and ROCE in Industrial Operations
Volvo Group votLuvao Cash flow, financial position and ROCE in Industrial Operations OPERATING CASH FLOW SEK bn == 12 months SEK 42.1 bn -5.7 Q@3 G4 Qi Q2 @3 Q4 at @2 Q3 2021 2022 2023 Volvo Group Third quarter 2023 ROCE FINANCIAL POSITION % 12 months (Excl. pensions and lease liabilities) SEK bn 33
Slide 22: Trucks: net sales and adjusted operating income
Trucks votLuvao Net sales and adjusted operating income NET SALES ==12 months SEK 360 bn SEK bn 420% (excl. FX +13%) f ——7F 89.8 75.1 53.4 a3 a4) at 2B Hs Rs 2021 2022 2023 Volvo Group Third quarter 2023, ADJUSTED OPERATING INCOME SEK bn 14.0 vt + Price realization - Production costs » J - R&D expen
Slide 23: Construction Equipment: net sales and adjusted operating income
votLuvao Construction Equipment Net sales and adjusted operating income NET SALES == 12 months SEK 106 bn SEK bn +0% (excl. FX -4%) 24.3 4.2 19.6 Q3 Q4 Qi Q2 Q3 Q4 Qi Q2 Qs 2021 2022 2023 Volvo Group Third quarter 2023, ADJUSTED OPERATING INCOME SEK bn 3.8 3.7 + Price realization + Brand & market mi
Slide 24: Buses: net sales and adjusted operating income
Buses votLuvao Net sales and adjusted operating income NET SALES == 12 months SEK 22 bn SEK bn 412% (excl. FX +6%) / i 1 5.4 4.8 3.3 Q3 Q4 QI G2 Q3 Q4 Qi Q2 Q3 2021 2022 2023 All numbers restated to exclude Nova Bus which is now included in segment ‘Group Functions and other’ Volvo Group Third quart
Slide 25: Volvo Penta: net sales and adjusted operating income
Volvo Penta votLuvao Net sales and adjusted operating income NETSALES ==12 months SEK 21 bn SEK bn +11% (excl. Fx +5%) 5.0 45 3.4 Q3 Q4 Qi Q2 Q3 G4 Qi Q2 Q3 2021 2022 2023 Volvo Group Third quarter 2023, ADJUSTED OPERATING INCOME SEKM 790 593 + Price realization + Product mix - Material costs AP - P
Slide 26: Financial Services: credit portfolio and profitability
votLuvao Financial Services Credit portfolio and profitability CREDIT PORTFOLIO & ROE* SEKbn ROE 12 months 14.1% 157 Q3 Q4 Gi G2 @3 @4 Q1 G2 2021 2022 Volvo Group Third quarter 2023, 255 Q3 2023 ADJUSTED OPERATING INCOME* SEKM 1,062 836 Av Portfolio growth Ny - Spread compression Qs Q3 2022 2023 *Al
Slide 27: Third quarter highlights
Volvo Group Third quarter highlights * Net sales increased to SEK 132.4 bn, an increase of 9% adjusted for FX * Adjusted operating income reached SEK 19.1 bn (11.9), corresponding to a margin of 14.4% (10.3) * Operating cash flow in Industrial Operations amounted to SEK 5.6 bn (14.6) * ROCE 33.7% (2
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