Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — Q1 2002 Earnings Presentation
18 slides from Volvo AB Class A's earnings presentation, Apr 22, 2002
Slide 1: First Quarter 2002 Phone Conference
Volvo Group First Quarter 2002 Phone Conference April 22, 2002 AB Volvo Phone conf. Q1-2002, April 22, 2002
Slide 2: Highlights
Volvo Group Highlights 1 First Quarter In Focus Going Forward l Business conditions: Short Term - Recession in North America continues - Downward trend in Europe l Ramp-up of newly introduced products l New products introduced l Manage the cyclicality by - Volvo FH/FM Business Area - Wheel loaders E
Slide 3: Sales by Market Area
Volvo Group Sales by Market Area 2 First Quarter 2002 First Quarter SEK M Split 2002 2001 Change Western Europe 52% 21,097 23,697 -11% Eastern Europe 3% 1,318 1,199 10% North America 29% 11,738 13,441 -13% South America 3% 1,211 1,379 -12% Asia 7% 2,650 1,941 37% Others 6% 2,371 2,093 13% Total 100%
Slide 4: Sales by Business Area
Volvo Group Sales by Business Area 3 First Quarter 2002 First Quarter SEK M Split 2002 2001 Change Trucks 66% 26,558 29,121 -9% Buses 8% 3,165 3,715 -15% Construction Equipm. 11% 4,476 4,688 -5% Penta 5% 1,962 1,736 13% Aero 6% 2,485 2,607 -5% Others & Eliminations 4% 1,739 1,883 -8% Volvo Group 100
Slide 5: Operating Income by Business Area
Volvo Group Operating Income by Business Area 4 First Quarter 2002 First Quarter SEK M 2002 2001 Trucks (474) 150 Buses (94) (83) Construction Equipm. (131) 81 Penta 146 167 Aero 78 160 Financial Services 115 113 Others & Eliminations (2) (86) Restructuring costs - (1,319) Volvo Group (362) (817) l
Slide 6: Cash-Flow Development
Volvo Group 5 Cash-Flow Development First Quarter 2002 Operating cash flow* 3 2 1 b SEK 0 -1 -2 -3 Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- 2000 2000 2000 2000 2001 2001 2001 2001 2002 * Cash-flow after net investments excluding: Investments in shares, acquired & divested operations and Financial Service
Slide 7: Consolidated Results
Volvo Group Consolidated Results 6 First Quarter 2002 First Quarter SEK M 2002 2001 Change Net Sales 40,385 43,750 -8% Gross income 7,180 7,514 -4% R&D expenses (1,505) (1,394) Selling expenses (3,797) (3,378) Administrative expenses (1,277) (1,659) Other op. Income & expenses (1,094) (696) Income f
Slide 8: Reconciliation of Profit and Loss statement
Volvo Group Reconciliation of Profit and Loss statement 7 First Quarter 2002 Reported Adjustments Normalized SEK M 2002 2001 2002 2001 2002 2001 Change Sales 40,385 43,750 40,385 43,750 Operating income (362) (817) 181 1,319 (181) 502 Financial net (256) (434) (256) (434) Income after financial item
Slide 9: Trucks
Volvo Group Trucks 8 First Quarter First Quarter SEK M 2002 2001 Change Volume (units) 33,322 42,139 -21% Sales 26,558 29,121 -9% Operating income (474) 150 n.a. Operating margin % -1.8% 0.5% (2.3) Highlights In Focus l Business Environment l Secure ramp-up - North America showing signs of bottoming
Slide 10: Total Market Heavy Trucks: NAFTA Retail Sales Forecast
Volvo Group Total Market Heavy Trucks 9 NAFTA Retail Sales Forecast Units Thousands 309 300 257 250 255 200 170 150 100 98 99 '00 '01 '02 Source: Volvo Trucks; EUD, April 2, 2002 AB Volvo Phone conf. Q1-2002, April 22, 2002
Slide 11: Total Market Heavy Trucks: W. Europe Registration Forecast
Volvo Group Total Market Heavy Trucks 10 W. Europe Registration Forecast Units Thousands 246 250 237 236 200 208 150 100 98 99 '00 '01 '02 Source: Volvo Trucks; EUD, April 2, 2002 AB Volvo Phone conf. Q1-2002, April 22, 2002
Slide 12: Production Ramp-up of New Volvo FM and FH
Volvo Group Production Ramp-up 11 of New Volvo FM and FH First quarter 2002 Actual production versus planned production 2 3 4 5 6 7 8 9 10 11 12 13 Week Tuve Gent Gap vs plan AB Volvo Phone conf. Q1-2002, April 22, 2002
Slide 13: Buses
Volvo Group Volvo Buses 12 First Quarter First Quarter SEK M 2002 2001 Change Volume (units) 1,842 2,117 -13% Sales 3,165 3,715 -15% Operating income (94) (83) n.a. Operating margin % -3.0% -2.2% (0.7) Highlights In Focus l Coach sales low due to unfavourable development l Increase productivity in E
Slide 14: Construction Equipment
Volvo Group Volvo Construction Equipment 13 First Quarter First Quarter SEK M 2002 2001 Change Sales 4,476 4,688 -5% Operating income (131) 81 n.a. Operating margin % -2.9% 1.7% (4.7) Highlights In Focus l Continued soft market conditions l Return to profitability l Ramp-up and vendor supply issues
Slide 15: Penta
Volvo Group Volvo Penta 14 First Quarter First Quarter SEK M 2002 2001 Change Sales 1,962 1,736 13% Operating income 146 167 n.a. 1) Operating margin % 7.4% 9.6% (2.2) Highlights In Focus l Continued strong sales and operating income l Cash-flow l Signs of recovery in the U.S. l Cost control l Posit
Slide 16: Aero
Volvo Group Volvo Aero 15 First Quarter First Quarter SEK M 2002 2001 Change Sales 2,485 2,607 -5% Operating income 78 160 -51% Operating margin % 3.1% 6.1% (3.0) Highlights In Focus l Slow recovery in air traffic, but lower yield l Adaptation to a declining new engine market l Aircraft excess situa
Slide 17: Financial Services
Volvo Group Volvo Financial Services 16 First Quarter First Quarter SEK M 2002 2001 Change Operating income 115 113 1.8% ROE % 4.1% 5.3% -1.2% Assets, MSEK 71,323 71,588 -0.4% Equity ratio 10.3% 12.0% (1.7) Highlights In Focus l Slower growth and improved diversification l Competitive alignment, pro
Slide 18: Summary
Volvo Group Volvo Group 17 Summary l Business conditions - Recession in North America continues. Upturn? - Downward trend in Europe l Product renewal in Construction Equipment l Focus on ramp-up of new products l Focus on Cash Flow AB Volvo Phone conf. Q1-2002, April 22, 2002