Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — AB Volvo — Q4 2013 Earnings Presentation
20 slides from Volvo AB Class A's earnings presentation, February 2014
Slide 1: Volvo Group Fourth quarter 2013
rh 2 Volvo Group Fourth quarter 2013
Slide 2: AB Volvo Fourth quarter 2013
AB Volvo Fourth quarter 2013 2
Slide 3: Trucks in Q4 – Improved operating performance but more to do
TRUCKS Trucks in Q4 – Improved operating performance but more to do SALES TREND OPERATING INCOME* OPERATING MARGIN* ORDERS SEK bn SEK bn % Units 12 months 178 bn 12 months 6.8 bn 12 months 3.8% Up 12% compared with Q4 2012 Currency: -791M Book to bill: Q4 86%, YTD 107% R&D am/cap: -827M 57 4.9 8.6%
Slide 4: Pre-buy in Europe – high deliveries in Q4
TRUCKS EUROPE Pre-buy in Europe – high deliveries in Q4 Highlights in Q4 • High deliveries in Q4 despite • Production rates already lowered generation-shift and parallel for Q1 production • Market shares (full year 2013) • Soft landing post pre-buy, orders: - Volvo 16.3% (15.6) - Volvo -16% - Renaul
Slide 5: Good momentum in a stable market
TRUCKS NORTH AMERICA Good momentum in a stable market Volvo Group engines, % 86% Highlights in Q4 36% • Orders increased by 67% compared with Q4-12 03 04 05 06 07 08 09 10 11 12 13 • Continued success for Volvo Group engines and transmissions – Volvo Group transmissions, % 57% I-Shift 86% Volvo engi
Slide 6: Even stronger position in Brazil
TRUCKS SOUTH AMERICA Even stronger position in Brazil – # 1 in image and customer satisfaction Highlights in Q4 • Orders improved by 2% compared to last year and by 34% compared with Q3 • Market share improved in Brazil to 20% in 2013 (18%) • Investments by Volvo Group and independent dealers in the
Slide 7: Dongfeng cooperation in China approved by NDRC
TRUCKS ASIA Dongfeng cooperation in China approved by NDRC Highlights in Q4 • Solid demand in Japan – markets in Southeast Asia impacted by weak mining segment • Introduction of the Eicher Pro Series • Good market reception of the UD Quester - challenging production ramp-up plan in Bangkok, Thailand
Slide 8: AB Volvo Fourth quarter 2013
AB Volvo Fourth quarter 2013 8
Slide 9: Weak earnings – priority on profitability
CONSTRUCTION EQUIPMENT Weak earnings – priority on profitability SALES TREND OPERATING INCOME OPERATING MARGIN ORDERS SEK bn 12 months 53 bn SEK bn 12 months 2.6 bn % 12 months 4.9% Up 7% compared with 2012 Fx: -155 M Book to bill (Volvo): 109%, YTD 102% 16 10.2% 13 13 1.7 18’ 17’ 0.3 1.9% 0.2 2.1%
Slide 10: Markets moving side-ways
CONSTRUCTION EQUIPMENT Markets moving side-ways EUROPE NORTH AMERICA • Improving orders +15% and deliveries +16% • Deliveries up by 23% compared with Q4-12, • Stabilizing market orders down by 13% • Acquisition of Terex Hauler Business • Continued localization of products to Shippensburg, PA • Dives
Slide 11: Improving demand for general construction in China – mining remains soft
CONSTRUCTION EQUIPMENT Improving demand for general construction in China – mining remains soft CHINA REST OF ASIA • Maintained number one position • Japan is the only market showing growth in the • Chinese total market increased by 24% in Q4, mainly region – Volvo CE is not present in Japan driven
Slide 12: AB Volvo Fourth quarter 2013
AB Volvo Fourth quarter 2013 12
Slide 13: Continued weak markets for buses and marine engines
BUSES & PENTA Continued weak markets for buses and marine engines BUSES VOLVO PENTA • Operating income of SEK 50 M in a weak market • Improved profitability despite weak markets • Successful Euro 6 introduction • Inroads into new customer segments • Order for 414 city buses to New York city • Operat
Slide 14: AB Volvo Fourth quarter 2013
AB Volvo Fourth quarter 2013 14
Slide 15: Strong growth and solid profitability
CUSTOMER FINANCE Strong growth and solid profitability VFS Good portfolio growth, up 24% adjusted for currency • Operating income SEK 397 M • ROE 12.1% • Syndication of SEK 3.1 bn of the credit portfolio NEW FINANCING OPERATING INCOME SEK bn 12 months 47 bn SEK M 12 months 1,521 M 15.0 391 397 12.6
Slide 16: AB Volvo Fourth quarter 2013
AB Volvo Fourth quarter 2013 16
Slide 17: Improved profitability in Trucks and strong cash flow in Q4
VOLVO GROUP Improved profitability in Trucks and strong cash flow in Q4 OPERATING CASH FLOW* 12 months SEK bn 1.5 bn 10.7 10.3 VOLVO GROUP IN Q4 4.7 • Net sales increased by 8% to SEK 77 bn Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 • Operating income, excl. restructuring charges and write- 2011 2012 2013 down of R
Slide 18: 2013 – The year of product renewal
23 2013 – The year of product renewal months to go - Busy and costly, but successful MASSIVE PRODUCT RENEWAL New range to strengthen premium position New range to revitalize brand and recapture position Changing the game across Asia-Pacific Push in heavy-duty in India and exports VOLVO CE New Tier I
Slide 19: 2014 – The year of Efficiency
23 months to go 2014 – The year of Efficiency EFFICIENCY LEVERAGING THE NEW PRODUCT PORTFOLIO Cost efficiency • Reduce activity level group-wide • Global roll-out of the new portfolio • Reduce white-collar headcount structurally • Finalize product renewal H1-2014 • Reduce R&D and S&A costs • Improve
Slide 20: Volvo
VOLVO