Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — AB Volvo — Q3 2003 Earnings Presentation
16 slides from Volvo AB Class A's earnings presentation, Oct 23, 2003
Slide 1: Third Quarter 2003 Conference Call
Third Quarter 2003 Conference Call, October 23
Slide 2: Highlights
Conference Call Q3 2003 1 Highlights Third Quarter In Focus Going Forward z Business environment improving slightly z Adapt to changes in demand z Performance improvement across the Group z Integration and optimization of - Productivity and cost efficiency - Gross margin improvement dealer networks
Slide 3: Net sales, Operating income, Earnings per share
Conference Call Q3 2003 2 Net sales (SEK bn) Europe North 57% America Asia 26% 9% Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 South America Rest of 41.5 45.9 40.9 44.6 40.5 179.8 177.1 177.6 172.9 171.9 3% the world 5% Quarter 12 months rolling Operating income Earnings per share (SEK M) (SEK) Q3 02 Q4 02 Q1 03 Q
Slide 4: Hedging policy
Conference Call Q3 2003 3 Volvo Group Hedging policy Month Hedging ratio of projected net flows: <6 50% - 80% 7-12 30% - 60% > 12 firm flows AB Volvo 03-10-23
Slide 5: Consolidated Results
Conference Call Q3 2003 4 Consolidated Results Third Quarter 2003 SEK M 2002 2003 Net Sales 41,524 40,511 Currency impact, SEK bn 2.2 Gross income 7,434 7,983 17.9% 19.7% R&D expenses (1,335) (1,683) Lower capitalization, 272 Selling expenses (3,612) (3,960) Administrative expenses (1,474) (1,285) O
Slide 6: Cash conversion cycle and cash flow development
Conference Call Q3 2003 5 Development of cash conversion cycle (Days) Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 67 51 55 49 58 Cash flow development (SEK bn) Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 -0.6 5.0 -2.4 2.8 -0.7 2.2 5.1 5.4 4.8 4.7 Quarter 12 months rolling * Cash-flow after net investments excluding: investment
Slide 7: Trucks
Conference Call Q3 2003 6 Trucks Third Quarter Net sales Operating income (SEK bn) (SEK M) Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 28.5 31.1 27.4 29.4 26.9 673 507 527 1023 944 121.3 118.8 119.6 116.4 114.9 2.4% 1.6% 1.9% 3.5% 3.5% Quarter 12 months rolling 766 1189 2190 2730 300
Slide 8: Heavy Duty Truck Market: Western Europe
Conference Call Q3 2003 7 Heavy Duty Truck Market Western Europe Units, Thousands (heavy trucks) 300 250 200 Forecast 2003: ~214,000 150 100 50 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03E '04E AB Volvo 03-10-23
Slide 9: Heavy Duty Truck Market: North America
Conference Call Q3 2003 8 Heavy Duty Truck Market North America Units, Thousands (heavy trucks) 350 300 250 200 150 Forecast 2003: ~170,000 100 50 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 AB Volvo 03-10-23
Slide 10: Volvo Buses
Conference Call Q3 2003 9 Volvo Buses Third Quarter Net sales Operating income (SEK bn) (SEK M) Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 -84 33 -83 -89 -93 2.9 3.9 3.0 3.1 2.8 -2.9% 0.9% -2.8% -2.9% -3.3% 14.2 14.0 13.8 12.8 12.7 -708 -94 -83 -223 -232 Quarter 12 months rolling Qu
Slide 11: Volvo Construction Equipment
Conference Call Q3 2003 10 Volvo Construction Equipment Third Quarter Net sales Operating income (SEK bn) (SEK M) Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 5.1 5.3 4.8 6.3 5.6 120 -47 140 425 210 20.7 21.0 21.3 21.4 21.9 2.4% -0.9% 2.9% 6.8% 3.7% 309 406 677 638 728 Quarter 12 mont
Slide 12: Volvo Penta
Conference Call Q3 2003 11 Volvo Penta Third Quarter Net sales Operating income (SEK bn) (SEK M) Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 1.7 1.7 1.9 2.0 1.8 117 159 159 212 153 7.8 7.7 7.6 7.4 7.5 6.7% 9.2% 8.3% 10.4% 8.5% 616 647 660 647 683 Quarter 12 months rolling Quarter Mar
Slide 13: Volvo Aero
Conference Call Q3 2003 12 Volvo Aero Third Quarter Net sales Operating income (SEK bn) (SEK M) Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 2.0 2.1 2.2 1.9 1.8 -72 -41 -6 11 -2 9.9 8.8 8.6 8.1 8.0 -3.7% -2.0% -0.3% 0.6% -0.1% 135 5 -79 -108 -38 Quarter 12 months rolling Quarter Margi
Slide 14: Volvo Financial Services
Conference Call Q3 2003 13 Volvo Financial Services Third Quarter New retail financing Operating income and Return on equity (SEK bn) (SEK M) Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 6.5 7.2 5.9 6.1 6.9 126 129 212 221 242 26.5 26.3 26.5 25.7 26.1 3.8% 4.8% 5.5% 6.6% 9.0% Quarter
Slide 15: Summary
Conference Call Q3 2003 14 Volvo Group Summary z Business environment improving slightly z Capitalize on product renewal z Earnings improvement across the Group AB Volvo 03-10-23
Slide 16: Conference Call Q3 2003
Conference Call Q3 2003 15 AB Volvo 03-10-23