Slide 1: Fourth Quarter and Full Year 2000
Volvo Group Fourth Quarter and Full Year 2000 Telephone conference February 1, 2001 AB Volvo Telekonf-Q4/010201/
Slide 2: Highlights
Volvo Group Highlights 1 Fourth Quarter In Focus going forward l Continued downturn in North America l Renault and Mack integration Slight sales increase in Europe Substantial increase in all other markets l Capitalize on new products l Operating income down 21% l Quick adaptation to market changes
Slide 3: Volvo Group incl. Renault / Mack
Volvo Group Volvo Group incl. Renault / Mack 2 Pro forma 1999 Sales Operating income Volvo Volvo Volvo Penta Volvo Penta Aero 3% Volvo Aero 3% Volvo 6% Buses 7% Buses 3% 9% Volvo Volvo Volvo Volvo Construction Trucks Construction Equipment Trucks Equipment 40% 20% 45% 11% Renault V.I./Mack Renault V
Slide 4: Group Organization
Volvo Group Volvo Group Organization 3 Board Board CEO CEO Corporate Corporate functions functions Marine Marine&& Business Global Global Bus Bus Construction Construction Industrial Industrial Areas Aero Aero Finance Finance Trucks Trucks &&Coach Coach Equipment Equipment Power Power Systems System
Slide 5: Global Powertrain
Volvo Group Global Powertrain 4 Global Powertrain Lars-Göran Moberg Powertrain Systems and Components (Engines, Transmissions, Axles) AB Volvo Telekonf-Q4/010201/
Slide 6: Sales by Market Area
Volvo Group Sales by Market Area 5 2000 Percent of Fourth Quarter Change Full Year Change MSEK Volvo´s sales 2000 1999 % 2000 % Western Europe 54 19,401 19,116 1 68,182 3 Eastern Europe 4 1,408 888 59 3,933 36 North America 28 10,046 11,333 (11) 40,655 (5) South America 4 1,318 1,123 17 5,182 31 Asi
Slide 7: Sales by Business Area
Volvo Group Sales by Business Area 6 2000 Percent of Total Fourth Quarter Change Full Year Change SEK M % 2000 1999 % 2000 % Trucks 49 17,651 18,040 (2) 62,196 (1) Buses 14 4,910 4,390 12 17,187 17 Construction Equipm. 14 5,102 4,788 7 19,993 6 Marine & Ind. Power Sys. 5 1,679 1,591 6 6,599 15 Aero
Slide 8: Operating Income by Business Area
Volvo Group Operating Income by Business Area 7 2000 Percent of Total Fourth Quarter Change Full Year Change SEK M % 2000 1999 % 2000 % Trucks 41 685 1,116 (39) 1,414 (56) Buses 10 162 156 4 440 96 Construction Equipm. 15 261 353 (26) 1,594 (7) Marine & Ind. Power Sys. 4 63 49 29 484 54 Aero 9 161 1
Slide 9: Full Year 2000 Consolidated Results
Volvo Group 8 Full Year 2000 Consolidated Results Fourth Quarter Change Full Year Change SEK M 2000 1999 % 2000 1999 % Sales 35,932 35,213 2 130,070 125,019 4 Operating income 1,689 2,125 (21) 6,154 33,421 (82) Inc. ass. comp. & oth. inv. (19) 61 514 737 Interest net (237) 138 (257) 307 Other financ
Slide 10: Trucks
Volvo Group Volvo Trucks 9 Fourth Quarter 2000 Fourth Quarter Full Year SEK M 2000 1999 Change 2000 Change Volume (units) 23,139 23,981 (4%) 81,830 (4%) Sales 17,651 18,040 (2%) 62,196 (1%) Operating income 685 1,116 (39%) 1,414 (56%) Operating margin 3.9% 6.2% (2.3) 2.3% (2.9) ROC, 12M 9.7% 30.2% (
Slide 11: Monthly Order Intake vs. Build Rate in North America
Volvo Group Monthly Order Intake vs. Build Rate in North America 10 Units 40000 Industry Build Net Order Intake 35000 30000 • Volvo has been quick to 25000 respond to market decline 20000 • Industry build rate in line with demand in Q1? 15000 • Market expected 10000 to decrease further in Q1 5000 0
Slide 12: Deliveries
Volvo Group 11 Deliveries Units January-December Change 1999 2000 % Total Europe 42 527 46 143 +9 of which: Western Europe 39 625 42 054 +6 Eastern Europe 2 902 4 089 +41 North America 34 303 23 610 (31) South America 3 901 4 534 +16 Asia 2 723 5 556 +104 Rest of the world 1 633 1 987 +22 Total 85 0
Slide 13: Global Trucks
Volvo Group Volvo Global Trucks 12 • Secure Start-up done - financial, legal and operational control • Implement Global Organization and Processes done - global organization of 3P and Powertrain - brand organization of Volvo-, Renault- and Mack trucks • Establish Business Plan and Budgets in process
Slide 14: Summary - Trucks
Volvo Group 13 Summary - Trucks • Volvo Trucks Turnaround program has contributed well in Q4 • Strong growth in all markets except North America. Deliveries in Europe all time high in Q4 • Volvo Global Trucks up and running AB Volvo Telekonf-Q4/010201/
Slide 15: Construction Equipment
Volvo Group Volvo Construction Equipment 14 Fourth Quarter 2000 Fourth Quarter Full Year SEK M 2000 1999 Change 2000 Change Sales 5,102 4,788 7% 19,993 6% Operating income 261 353 (26%) 1,594 (7%) Operating margin 5.1% 7.4% (2.3) 8.0% (1.1) ROC, 12M 16.2% 19.1% (2.9) 16.2% (2.9) Major Factors Fourth
Slide 16: Buses
Volvo Group Volvo Buses 15 Fourth Quarter 2000 Fourth Quarter Full Year SEK M 2000 1999 Change 2000 Change Volume (units) 2,975 2,905 2% 11,015 16% Sales 4,910 4,390 12% 17,187 17% Operating income 162 156 4% 440 96% Operating margin 3.3% 3.6% (0.3) 2.6% 1.1 ROC, 12M 6.3% 3.9% 2.4 6.3% 2.4 Major Fac
Slide 17: Penta
Volvo Group Volvo Penta 16 Fourth Quarter 2000 Fourth Quarter Full Year SEK M 2000 1999 Change 2000 Change Sales 1,679 1,591 6% 6,599 15% Operating income 63 49 29% 484 54% Operating margin 3.8% 3.1% 0.7 7.3% 1.8 ROC, 12M 43.3% 26.0% 17.3 43.3% 17.3 Major Factors Fourth Quarter Constraints In Focus
Slide 18: Aero
Volvo Group Volvo Aero 17 Fourth Quarter 2000 Fourth Quarter Full Year SEK M 2000 1999 Change 2000 Change Sales 2,882 2,842 1% 10,713 8% Operating income 161 190 (15%) 621 6% Operating margin 5.6% 6.7% (1.1) 5.8% (0.1) ROC, 12M, excl. AGES 25.2% 19.2% 6.0 25.2% 6.0 Major Factors Fourth Quarter Const
Slide 19: Finance
Volvo Group Volvo Finance 18 Fourth Quarter 2000 Fourth Quarter Full Year SEK M 2000 1999 Change 2000 Change Operating income 127 335 (62%) 1,396* 43% Op. Income (excl. non recurr.) 127 151 (16%) 748 1% ROE (excl.non recurring) 14.1% 11.0% 3.1 Assets, MSEK 66,522 56,477 18% Equity ratio 11.5% 12.1%
Slide 20: Summary
Volvo Group Summary 19 • Renault and Mack deal approved - Volvo Global Trucks integration on track • New organization implemented • Continued downturn in North America and Europe is levelling out • Volvo Trucks Turnaround program paying off • Strong new product program AB Volvo Telekonf-Q4/010201/