Volvo Car Ab Class B · OMXSTO:VOLCAR_B
Volvo Car Ab Class B — Q1 2024 Earnings Presentation
31 slides from Volvo Car Ab Class B's earnings presentation, Feb 24, 2024
Slide 1: Q1 2024 Financial Results
Q1 2024 FINANCIAL RESULTS Jim Rowan, President & CEO Johan Ekdahl, CFO Björn Annwall, Chief Commercial Officer & Deputy CEO Volvo Car Group Results Presentation Q1 2024
Slide 2: Q1 – strong business performance with continued momentum
Q1 – strong business performance with continued momentum o Retail sales up 12% vs Q1, 2023, with EX30 ramping up o New sales record in March with 78,970 cars sold, up 25% year-on-year o Solid EBIT margins, excluding JVs & associates, at 7.2% vs 6.6% in Q1, 2023 o Improving gross margins on fully ele
Slide 3: Q1 – Key financials
Q1 – Key financials Retail sales Revenue EBIT / margin Cash flow (k UNITS) (bn SEK) (bn SEK/%) from operating and investing activities (bn SEK) +8% 6.8 +12% -2% 6.3 183 96 94 5.1 163 4.7 5.3% 6.6% 5.0% 7.2% -12 Q1 Q1 Q1 Q1 Q1 Q1 2023 Q1 Q1 2024 -17 2023 2024 2023 2024 2023 excl. JV 2024 excl. JV Q1
Slide 4: EX30 Awards
EX30 AWARDS Volvo Car Group Results Presentation Q1 2024
Slide 5: Balanced portfolio towards electrification
Balanced portfolio towards electrification ELECTRIFIED % OF TOTAL VOLUME BEV GROSS MARGIN 41 41 41 39 38 34 34 20 31 16% 23 23 20 15% 25 23 22 15 14% 13% 21 26 9% 24 10 18 7% 6% 21 5% 18 18 16 16 5 3% 13 8 7 7 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2023 2024 2022 2023 2024 PHEV
Slide 6: Geared for premium growth with balanced portfolio
Geared for premium growth with balanced portfolio Strong 2024 product line-up Plug-in and mild-hybrids Fully electric S90 EM90 XC90 EX40 V90 EX90 XC60 S60 EC40 EX30 XC40 V60 Volvo Car Group Results Presentation Q1 2024
Slide 7: Balanced global commercial footprint
Balanced global commercial footprint ~90 RETAIL DELIVERIES (%) COUNTRIES ~2,200 Europe RETAIL LOCATIONS ~ 45% ~2,500 China USA & SERVICE LOCATIONS ~ 20% Canada Asia ~ 20% Pacific, Latam & MEA >10m ~ 15% CAR PARC (ALL CARS) >1m CAR PARC (PHEV AND BEV) Volvo Car Group Results Presentation Q1 2024
Slide 8: Fully electric and plug-in hybrid share Q1 2024
Fully electric and plug-in hybrid share Q1 2024 18 markets >80% vs. 15 markets in Q4 Thailand 100% Uruguay 100% Iceland 100% Ireland 100% Colombia 100% Brazil 100% Indonesia 100% Lebanon 100% Denmark 100% Norway 99% Puerto Rico 97% Finland 95% Costa Rica 92% France 89% Mauritius 87% Netherlands 87%
Slide 9: Fully electric share Q1 2024
Fully electric share Q1 2024 50% 19 markets >40% vs. 13 markets in Q4 Norway 94% Denmark 86% Thailand 75% Montenegro 75% Puerto Rico 74% Malta 72% Costa Rica 68% Netherlands 65% France 63% Uruguay 62% Iceland 59% Singapore 55% Mexico 55% Mauritius 55% Ireland 44% Finland 44% Colombia 44% Belgium 43%
Slide 10: Geared for premium growth with balanced portfolio
Geared for premium growth with balanced portfolio Strong 2024 product line-up Plug-in and mild-hybrids Fully electric S90 EM90 XC90 EX40 V90 EX90 XC60 S60 EC40 EX30 XC40 V60 Volvo Car Group Results Presentation Q1 2024
Slide 11: Financial Update
Q1 2024 FINANCIAL UPDATE
Slide 12: Q1 – Key financials
Q1 – Key financials Retail sales Revenue EBIT / margin Cash flow (k UNITS) (bn SEK) (bn SEK/%) from operating and investing activities (bn SEK) +8% 6.8 +12% -2% 6.3 183 96 94 5.1 163 4.7 5.3% 6.6% 5.0% 7.2% -12 Q1 Q1 Q1 Q1 Q1 Q1 2023 Q1 Q1 2024 -17 2023 2024 2023 2024 2023 excl. JV 2024 excl. JV Q1
Slide 13: Q1 – Revenues weighed down by contract manufacturing
Q1 – Revenues weighed down by contract manufacturing REVENUE BRIDGE (BN SEK) -2% 4.5 95.7 -1.9 2.0 93.9 -2.1 -4.3 Revenue Volume Sales mix Foreign Contract Other1 Revenue 2023 Q1 and pricing exchange rates manufacturing 2024 Q1 1) including used cars, parts and accessories. Volvo Car Group Results P
Slide 14: Q1 - Solid underlying EBIT
Q1 - Solid underlying EBIT EBIT BRIDGE (BN SEK) BN SEK 0.5 1.1 1.0 6.8 1.2 6.3 0.4 5.1 -2.0 4.7 -2.1 5.3% 6.6% 7.2% 5.0% EBIT 2023 Q1 JV & EBIT 2023 Volume Sales mix Foreign Other1 EBIT 2024 JV & EBIT 2024 Q1 Associates Q1 Excl Jv & and pricing exchange Q1 Excl JV & Associates Associates rates Assoc
Slide 15: Q1 - BEV margins
Q1 - BEV margins 2024 2023 2023 Q1 Q4 FY BEV Non-BEV BEV Non-BEV BEV Non-BEV Retail Deliveries (k units) 38 145 33 167 113 595 Revenue per Car (k SEK/unit) 1) 416 428 464 441 465 440 Gross Income per Car (k SEK/unit) 1) 67 107 62 115 40 103 Gross Margin (%) 1) 3) 16 25 13 26 9 23 BEV Common Non-BEV
Slide 16: Q1 - Solid liquidity level
Q1 - Solid liquidity level Cash flow from operating and investing activities -12bn SEK 75 Undrawn credit facilities 66 Marketable securities 17 10 Cash 20 10 11 0 10 -22 -11 48 36 Liquidity EBITDA Net working Other Investments Financing3 Liquidity December capital1 working March 2023 capital2 2024 1
Slide 17: Positioned capital allocation for future success
Phase 1 Phase 2 Positioned capital allocation for future success Today Investment (BN SEK) New Tech Cell to body NOVO Mega casting Investments E-motor /Revenues (%) Manufacturing Daqing Factory Taizhou Factory Charleston Factory Kosice Factory Platforms CMA (Gen 1) SEA SPA1 SPA2 (Gen 2) SPA3 (Gen 3)
Slide 18: Financial Summary of Q1
Financial Summary of Q1 o Solid core EBIT margin of 7.2% o Improving gross margins on fully electric cars to 16% o Free cash flows according to plan, and on track towards neutral in 2024 o Strong balance sheet and liquidity levels Volvo Car Group Results Presentation Q1 2024
Slide 19: Financial profile for 2024
Financial profile for 2024 o Increasing R&D amortisations and lower R&D capitalisation effects during 2024 o Investments in 2024-25 will go into new platforms, technology and capacity o Free cash flows to improve in coming quarters and expect cash flow in 2024-25 to be neutral o Strong positive free
Slide 20: Looking ahead
Looking ahead o Strong balanced lineup of premium cars – BEV, PHEV and MHEV o Ramping up deliveries of EX30 and EM90 o Set to introduce paradigm shift in tech with start of production of EX90 during H1, 2024 o Remain focused on streamlining cost base and capital allocation o Continue to prioritise v
Slide 21: Balanced approach geared for success
Balanced approach geared for success • Products – cars in different sizes and segments: 30, 40, 60 and 90 range, SUVs, sedans, wagons and MPV • Propulsion – mixed portfolio of mild hybrids, plug-in electric hybrids and fully electric cars • Production – diversified manufacturing facilities in every
Slide 22: Ambitions
Ambitions 2025 2025 2026 2026 50% 40% 550-600 Above 8% FULLY CO2 REDUCTION REVENUE EBIT MARGIN ELECTRIC (excl. JVs & associates) PER CAR (SEK BN) SALES Volvo Car Group Results Presentation Q4 And Full Year 2023
Slide 23: Capital Markets Day
Capital Markets Day o 5 September in Gothenburg, Sweden o Onsite recorded session o Focus is to outline our strategic transformation, as well as the journey towards our financial ambitions o investors.volvocars.com/CMD24 Volvo Car Group Results Presentation Q1 2024
Slide 24: Q&A
Q&A Volvo Car Group Results Presentation Q1 2024
Slide 25: EBIT development
EBIT development E B IT developm ent, M S E K 8,423 6,038 10,801 6,315 6,428 6,148 6,677 6,795 5,528 5,714 5,668 4,316 3,887 5,877 3,513 5,100 4,993 5,388 4,706 4,815 4,612 4,458 3,329 3,708 3,443 2,050 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q
Slide 26: Strong net cash and prudent maturity profile
Strong net cash and prudent maturity profile 65.9 MATURITY PROFILE AND SPLIT (BN SEK) 19.8 Net cash 11% 7% 14.8 10.0 31.2 41% 42% 7.6 6.9 6.3 36.1 0.7 6.1 1.0 0.1 6.9 2.5 5.8 5.7 5.8 1.4 0.5 0.4 Loans 1.5 0.2 0.4 0.4 0.4 Bonds Liquidity 2024 2025 2026 2027 2028 2029 2030 Green bond March 2024 Loans
Slide 27: Quarterly performance 2020-2023
Quarterly performance 2020-2023 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 (MSEK) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Revenue 56,517 55,242 65,763 85,311 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
Slide 28: Financial net, tax and earnings per share
Financial net, tax and earnings per share Jan-March Jan-March MSEK 2024 2023 Operating income 4,706 5,100 Interest income and similar credits 681 499 Interest expenses and similar charges -444 -200 Other financial income and expenses 155 -15 Income/(loss) before tax 5,098 5,384 Income tax -1,511 -1,
Slide 29: New company volume record in 2023
New company volume record in 2023 15% 705 699 709 CAGR 662 642 9% 615 572 534 294 295 503 341 288 466 318 247 299 291 242 282 172 170 155 167 162 131 91 114 84 82 122 129 98 108 110 102 56 70 83 82 84 95 101 97 111 103 115 70 70 77 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Europe China US Ot
Slide 30: Retail sales, revenue, R&D, capex, EBITDA and cash flow
RETAIL SALES (K UNITS) REVENUE (BN SEK) +11% +15% +21% 705 661 699 709 +14% 399 642 615 SUV 330 572 253 274 263 282 359 445 Estate 209 273 469 525 462 538 Sedan 198 185 161 47 94 77 1 45 Coupe 89 101 98 99 98 96 24 82 37 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 RESEARCH
Slide 31: Volvo Car Group
voLwvwv oO VOLVO CAR GROUP