Volvo Car Ab Class B · OMXSTO:VOLCAR_B
Volvo Car Ab Class B — Q4 2023 Earnings Presentation
40 slides from Volvo Car Ab Class B's earnings presentation, Feb 1, 2024
Slide 1: Q4 and Full Year 2023 Financial Results
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS Jim Rowan, President & CEO Johan Ekdahl, CFO Björn Annwall, Chief Commercial Officer & Deputy CEO Volvo Car Group Results Presentation Q4 And Full Year 2023
Slide 2: Best core operating performance in our 97-year history
Best core operating performance in our 97-year history Record Record Record Record retail sales revenues fully electric EBIT 709k SEK 399bn share SEK 25.6bn up 15% from 2022 up 21% from 2022 16% excl JVs and vs. 11% share in 2022 associates Volvo Car Group Results Presentation Q4 And Full Year 2023
Slide 3: 2023: strong operational performance
2023: strong operational performance o A record year - sales, revenues, EBIT and fully electric (BEV) share o 16 months of consecutive growth in retail sales, with a balanced portfolio of BEV, PHEV and MHEV o Fully electric car sales increased by 70%, with increasing margins o Increased production o
Slide 4: Solid gross margins on EVs of 13%
Solid gross margins on EVs of 13% Volvo Car Group Results Presentation Q4 And Full Year 2023 Volvo Car Group Results Presentation Q4 And Full Year 2023
Slide 5: Gearing up for electrified 2024
Gearing up for electrified 2024 EM90 EX90 Volvo Car Group Results Presentation Q4 And Full Year 2023 EX30
Slide 6: EX30: small SUV with big opportunities
EX30: small SUV with big opportunities Volvo Car Group Results Presentation Q4 And Full Year 2023 Volvo Car Group Results Presentation Q3 2023
Slide 7: EM90: Strong ambitions for China premium EV market
EM90: Strong ambitions for China premium EV market Volvo Car Group Results Presentation Q4 And Full Year 2023
Slide 8: EX90: Not just a car, a paradigm shift
EX90: Not justAaparadigm EX90: car, a paradigm shift shift AI-powered core computer that enables next level Volvo Car Group Results Presentation Q4 And Full Year 2023
Slide 9: EM90 EX90 EX30
EM90 EX90 Volvo Car Group Results Presentation Q4 And Full Year 2023 EX30
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 XC40 V90 EX90 XC60 S60 C40 EX30 XC40 V60 Volvo Car Group Results Presentation Q4 And Full Year 2023
Slide 11: Strong Fully Electric (BEV) and Plug-in Hybrid sales
Strong Fully Electric (BEV) and Plug-in Hybrid sales Improving BEV margins RECHARGE % OF TOTAL VOLUME BEV GROSS MARGIN 41 41 38 39 34 34 34 31 20 23 23 25 24 26 25 23 22 15% 21 15 FY 2021 13% 14% 13% 28 26 24 18 9% 22 10 7% 23 21 6% 18 18 5% 16 16 5 13 3% 6 8 7 7 2 3 4 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 12: Fully electric share 2023
50% FULLY ELECTRIC SHARE 2023 Norway 76% 17 markets >30% and top 3 US states Costa Rica 73% Thailand 56% Iceland 54% Netherlands 52% Denmark 51% Hawaii 46% Indonesia 44% Malta 42% Singapore 39% Uruguay 37% Mauritius 37% Finland 37% Switzerland 36% Australia 35% Brazil 32% New Zealand 32% Sweden 31%
Slide 13: Fully electric and plug-in hybrid share 2023
FULLY ELECTRIC AND PLUG-IN HYBRID SHARE 2023 Indonesia 100% 17 markets >73% and top 3 US states Brazil 100% Uruguay 100% Thailand 100% Norway 99% Denmark 97% Ireland 95% Finland 91% Iceland 84% Netherlands 83% Portugal 82% Belgium 80% Costa Rica 76% France 76% Sweden 74% Mauritius 74% Switzerland 73
Slide 14: Strong sales and earnings in 2023
Strong sales and earnings in 2023 24 sales companies with record earnings 10 sales companies with record unit sales US Germany Italy Canada Belgium Canada Greece Poland Brazil Poland Mexico Czech Republic Portugal Mexico Czech Republic Brazil Hungary Spain Australia Hungary South Korea Austria Switz
Slide 15: Q4 2023 Financial Update
Q 4 2 02 3 F INA NCIA L U P D A TE
Slide 16: Q4 – Key financials
Q4 – Key financials Retail sales Revenue EBIT / margin Cash flow (k UNITS) (bn SEK) (bn SEK/%) from operating and investing activities (bn SEK) +72% 6.7 +7% +4% 5.4 200 105 109 186 3.9 3.4 9 6 3.3% 3.7% 4.9% 6.1% Q4 Q4 Q4 Q4 Q4 Q4 2022 Q4 Q4 2023 Q4 Q4 2022 2023 2022 2023 2022 excl. JV 2023 excl. JV
Slide 17: Q4 - Solid underlying EBIT
Q4 - Solid underlying EBIT EBIT BRIDGE (BN SEK) BN SEK 1.9 BN SEK 2.8 1.5 6.7 0.9 5.4 1.1 -0.6 -1.3 0.4 3.9 3.4 3.3% 3.7% 6.1% 4.9% EBIT 2022 Q4 JV & EBIT 2022 Volume Sales mix Foreign Other1 EBIT 2023 JV & EBIT 2023 Q4 Associates Q4 Excl Jv & and pricing exchange Q4 Excl JV & Associates Associates
Slide 18: Q4 - BEV margins
Q4 - BEV margins 2023 2023 2023 2022 Q4 Q3 FY FY BEV Non-BEV BEV Non-BEV BEV Non-BEV BEV Non-BEV Retail Deliveries (k units) 33 167 21 146 113 595 67 548 1) Revenue per Car (k SEK/unit) 464 441 494 433 465 440 449 415 Gross Income per Car (k 62 115 46 97 40 103 37 89 SEK/unit) 1) Gross Margin (%) 1)
Slide 19: FY 2023 Financial Update
FY 2 0 2 3 F INA NCIA L U P D A TE
Slide 20: FY – Key financials
FY – Key financials Retail sales Revenue EBIT / margin Cash flow (k UNITS) (bn SEK) (bn SEK/%) from operating and investing activities (bn SEK) +43% 25.6 +15% +21% 22.3 709 399 19.9 615 17.9 330 2 6.8% 5.4% 5.0% 6.4% -6 -6 -9 FY FY FY FY FY FY 2022 FY FY 2023 FY FY FY FY 2022 2023 2022 2023 2022 exc
Slide 21: FY - Record revenue in 2023
FY - Record revenue in 2023 REVENUE BRIDGE (BN SEK) +21% 14.3 1.8 6.7 399.3 41.8 4.7 330.1 Revenue Volume Sales mix Foreign Contract Other1 Revenue FY 2022 and pricing exchange rates manufacturing FY 2023 1) Including used cars, earned emissions credits, parts and accessories.. Volvo Car Group Resul
Slide 22: FY – Strong underlying EBIT
FY – Strong underlying EBIT EBIT BRIDGE (BN SEK) BN SEK -2.4 BN SEK 7.7 12.3 1.8 -0.5 25.6 22.3 -5.9 19.9 17.9 -5.6 -4.4 6.8% 5.4% 6.4% 5.0% EBIT JV & EBIT FY 2022 Volume Sales mix Foreign Other1 EBIT FY 2023 JV & EBIT FY 2022 Associates Excl JV & and pricing exchange Excl JV & Associates FY 2023 As
Slide 23: 2023 - Solid liquidity level despite high investments
2023 - Solid liquidity level despite high investments Cash flow from operating and investing activities -9.0bn SEK 15 Undrawn credit facilities 37 Marketable securities 84 Cash -10 75 17 3 17 -52 10 -7 64 48 Liquidity EBITDA Net working Other Investments Financing3 Liquidity December capital1 workin
Slide 24: Clarified Ambitions
CLA R IF IED A M B ITIONS
Slide 25: Clarified ambitions
Clarified 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 26: Strong growth trajectory
Strong growth trajectory Revenue, bn SEK +11-15% 550-600 399 330 274 282 253 263 211 164 181 138 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ... 2026 Covid and semi-shortage years Volvo Car Group Results Presentation Q4 And Full Year 2023
Slide 27: 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 Investments • Mega casting • E-motor /Revenues • AI Safety (%) Manufacturing • Daqing Factory • Taizhou Factory • Charleston Factory • Kosice Factory Platforms • CMA (Gen 1) • SE
Slide 28: Volvo Cars and Polestar
Volvo Cars and Polestar • Polestar is entering an exciting phase with a strengthened business plan and positioned for future growth. • Volvo Cars focus is on developing and concentrating our resources on our own ambitious journey. • Volvo Cars is evaluating a potential adjustment to its shareholding
Slide 29: 2024: growing faster than the market
2024: growing faster than the market • Strong balanced lineup of premium cars – BEV, PHEV and MHEV • Higher volume growth rate than the 15% in 2023 • Fully electric car share to be considerably higher than 2023 • Higher BEV gross margins than in 2023, driven by three new cars • Ramp-up of EX30 produ
Slide 30: Summary
Summary • Record year in 2023 • Positions us for record revenue in 2024 • 11-15% CAGR revenue growth to 2026 • Three new models in full production in different market segments in H1, 2024 • Capital allocation fully focused on Volvo Cars’ core operations • Delivering differentiated tech stack for Vol
Slide 31: VvVoLvo
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Slide 32: Disclaimer
Disclaimer • By accessing this document, the person to whom it such liability is expressly disclaimed. Analyses and is provided (the “Recipient”) agrees to be bound by opinions contained herein may be based on the following obligations and limitations. assumptions that, if altered, can change the an
Slide 33: 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 5,528 5,714 5,668 4,316 3,887 5,877 3,513 5,100 4,993 5,388 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 Volvo excl. J
Slide 34: Strong net cash and prudent maturity profile
Strong net cash and prudent maturity profile 75.0 MATURITY PROFILE AND SPLIT (BN SEK) 17.2 Net cash 11% 8% 27.5 9.9 30.3 40% 41% 7.6 0.9 6.3 5.7 47.9 5.5 0.7 0.1 3.2 6.7 5.6 2.0 5.5 Loans 0.5 1.5 Bonds Liquidity 2024 2025 2026 2027 2028 2029 2030 Dec 2023 Green bond Loans GFF Undrawn credit faciliti
Slide 35: Quarterly performance 2020-2023
Quarterly performance 2020-2023 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 (MSEK) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 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 Cost of sa
Slide 36: Financial net, tax and earnings per share
Financial net, tax and earnings per share Oct-Dec Oct-Dec MSEK 2023 2022 Operating income 5,388 3,443 Interest income and similar credits 740 337 Interest expenses and similar charges -190 -228 Other financial income and expenses -557 -436 Income/(loss) before tax 5,381 3,116 Income tax -2,049 -259
Slide 37: Continued to be on track with CO2 reduction target
Continued to be on track with CO2 reduction target CO2 reduction (tons/car) 60 55 54 52 50 50 44 40 33 30 ambition 20 10 0 2018 2019 2020 2021 2022 2023 ... Mid- decade 20% 40% 37 Volvo Car Group Results Presentation Q4 And Full Year 2023
Slide 38: New company volume record in 2023
New company volume record in 2023 15% 705 699 709 CAGR 662 642 9% 615 572 534 294 295 503 341 288 466 318 247 299 291 282 242 172 170 155 167 162 131 114 91 84 82 122 129 98 108 110 102 56 70 83 82 95 101 97 111 103 115 84 70 70 77 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Europe China US Ot
Slide 39: Retail sales, revenue and EBITDA
RETAIL SALES (K UNITS) REVENUE (BN SEK) +11% +15% +21% 705 661 699 709 +14% 399 642 615 330 572 SUV 253 274 263 282 273 359 445 469 525 538 209 462 Estate 198 185 161 47 Sedan 94 77 1 45 89 101 98 99 98 96 24 82 37 Coupe 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 RESEARCH
Slide 40: Volvo Car Group
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