Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — AB Volvo — Q2 2009 Earnings Presentation
26 slides from Volvo AB Class A's earnings presentation, Jul 21, 2009
Slide 1: Second Quarter 2009 Press Conference
Second Quarter 2009 Press Conference, July 21, 2009
Slide 2: Group Highlights
Group Highlights Second quarter – Sales stabilized on low level - 33% compared with Q2-08, -45% adjusted for currency - 4% compared with Q1-09, 0% adjusted for currency – Operating loss SEK 6.9 bn – Adjustment of production capacity – Successful reduction of inventories Business environment – Europe
Slide 3: Volvo Group
Volvo Group Net sales Second quarter (SEK bn) Sales stabilizing in the second quarter Change Change Q209-Q109 Q209-Q208 Europe -5% -44% North America -8% -29% Asia +24 -14% Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 South America -8% -25% Quarter 80 70 78 56 54 12 Mth. rol. 310 311 305 284 258 Other markets +5%
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 Second 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 Cash Flow 4,9 -6,1 1,8 -15,7 -2,9 AB Volvo Second Quarter 2009 5
Slide 6: Working Capital
Working Capital Inventories, • Industrial operating cash flow; SEK bn 56 negative 2.9 bn in the quarter 54 • Focus on working capital 52 - Receivables - 1.6 bn 50 5.8 bn - Inventories - 5.8 bn 48 - Payables + 4.0 bn 46 - Other + 0.8 bn 44 Total change - 2.6 bn 42 Q109 Q209 Currency & 2,0 reclassific
Slide 7: Volvo Group – Net Financial Debt
Volvo Group – Net Financial Debt Industrial Operations Net debt, Changes in Net financial Debt SEK bn - Cash Flow 2.9 bn 60,0 80.7% of - Currency - 2.1 bn Equity Operations 0.8 bn 50,0 63.2% of 64.8% of - Dividend 4.1 bn 40,0 Equity Equity - UAW 0.9 bn 30,0 49.6% of Total change 5.8 bn Equity 20,0 1
Slide 8: Volvo Group Funding
Volvo Group Funding Industrial Operations Cash & Committed Liquidity position SEK 63.5 bn Facilities - SEK 32.5 bn in liquid assets - SEK 31 bn in undrawn Committed Facilities 70 60 50 Maturity Structure 40 30 20 10 0 09Q3 09Q4 10Q1 10Q2 10Q3 10Q4 11Q1 11Q2 11Q3- 12Q3- 13Q3- 14Q3- 15Q3- 12Q2 13Q2 14
Slide 9: Trucks
Trucks Net sales Operating income SEK bn SEK M Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Quarter 53 46 54 37 34 Quarter 4 825 2 653 257 -2 382 -4 778 12 Mth. rol. 206 207 204 190 171 12 Mth. rol. 16 908 16 054 12 167 5 353 -4 250 Margin 9,2% 5,7% 0,5% -6,4% -14,3% Highlights In Foc
Slide 10: Heavy-duty truck market - Europe
Heavy-duty truck market - Europe (EU members + Switzerland and Norway) Units, Thousands (heavy trucks) Modification of definition 350 329 In 1991 (East Germany) and in 2000 (new member states) 319 In 2006 (new member states) 300 256 300 250 200 178 229 2009: down >50% 150 ? 100 116 50 0 90 91 92 93
Slide 11: Heavy-duty truck market – North America
Heavy-duty truck market – North America Units, Thousands (heavy trucks) 400 349 350 308 300 250 225 208 200 194 2009: 171 185 150 down 30-40% 100 122 ? 50 0 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 AB Volvo Second Quarter 2009 11
Slide 12: Net order intake – positive trend
Net order intake – positive trend Trucks Net order intake Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Change Q2-Q1 60000 Europe 21,948 115 -1,549 7,494 8,980 20% 50000 North America 5,693 7,578 4,037 2,869 3,257 14% 40000 South America 4,382 5,096 1,087 1,731 2,998 73% 30000 Asia 18,110 14,607 7,868 5,712 7,884 3
Slide 13: Trucks
Trucks Volvo Trucks Renault Trucks z Adapting production capacity z Short-term weeks implemented for both z New products launched blue and white collar employees z Building customer relationships z Focus on reduction of inventories z Secure cash flow z Further reduction of production rates Mack Truc
Slide 14: Volvo Trucks' first US'10 production truck drives off assembly line
Volvo Trucks’ first US’10 production truck drives off assembly line at New River Valley plant AB Volvo Second Quarter 2009 14
Slide 15: Construction Equipment
Construction Equipment Net sales Operating income SEK bn SEK M Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Quarter 1 629 134 -1 256 -1 395 -1 259 Quarter 16,7 13,2 11,2 8,2 9,2 12 Mth. rol. 4 804 4 099 1 808 -888 -3 776 12 Mth. rol. 60,3 60,6 56,3 49,3 41,8 Margin, % 9,7% 1,0% -11,2
Slide 16: Construction Equipment
Construction Equipment Fuel efficiency • …through engine technology • …through hybrids • …through design • …through operation = Customer Productivity and Profitability AB Volvo Second Quarter 2009 16
Slide 17: Buses
Buses Net sales Operating income SEK bn SEK M Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Quarter 46 -72 72 -95 -118 Quarter 4,3 3,8 5,6 4,0 4,7 12 Mth. rol. -57 -56 -77 -50 -214 12 Mth. rol. 16,7 16,9 17,4 17,7 18,1 Margin 1,1% -1,9% 1,3% -2,4% -2,5% Highlights In Focus z Continued
Slide 18: Buses
Buses Nova articulated version AB Volvo Second Quarter 2009 18
Slide 19: Volvo Penta
Volvo Penta Net sales Operating income SEK bn SEK M Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Quarter 458 198 -46 -97 -165 Quarter 3,3 2,7 2,4 2,0 2,3 12 Mth. rol. 1 212 1 152 928 513 -110 12 Mth. rol. 12,0 12,0 11,5 10,4 9,3 Margin 13,8% 7,4% -2,0% -4,8% -7,3% Highlights In Focus
Slide 20: Volvo Penta Product News
Volvo Penta Product News D13 New D3 AB Volvo Second Quarter 2009 20
Slide 21: Volvo Aero
Volvo Aero Net sales Operating income SEK bn SEK M Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Quarter 4 78 141 83 28 Quarter 1,7 1,7 2,4 2,0 2,0 12 Mth. rol. 484 414 359 306 330 12 Mth. rol. 7,4 7,2 7,6 7,8 8,1 Margin 0,2% 4,7% 5,9% 4,1% 1,4% Highlights In Focus z Airline industry u
Slide 22: Volvo Aero
Volvo Aero Swedish government's decision on European launch-vehicle program paves the way for important contract within space propulsion AB Volvo Second Quarter 2009 22
Slide 23: Financial Services
Financial Services New retail financing Operating income and return on equity SEK bn SEK M Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Quarter 11,8 10,9 11,9 7,5 7,9 Quarter 387 391 238 -396 -296 12 Mth. rol. 43,7 44,8 44,5 42,1 38,2 ROE 15,4% 13,9% 12,6% 5,0% -0,5% Highlights In Foc
Slide 24: Financial Services
Financial Services Total managed assets Penetration on new financing Managed assets in: (SEK bn) Volvo Aero & Volvo Penta (SEK M) W North Internati Volvo Volvo Renault Mack Asia Buses Europe America onal CE Trucks Trucks Trucks Volvo Aero Volvo Penta Q208 48 39 12 2 Q208 37% 28% 12% 16% 14% Q208 978
Slide 25: Group Summary
Group Summary Earnings per share Second quarter SEK • Sales 45% lower than Q2-08 but flat compared with the first quarter 2009 • Significant production cut backs • Operating loss • Successful reduction of inventories: SEK 5.8 bn • Operating Cash Flow improved by SEK Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 12.
Slide 26: Second Quarter 2009
VOLVO Second Quarter 2009