Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — AB Volvo — Q4 2004 Earnings Presentation
18 slides from Volvo AB Class A's earnings presentation, Feb 10, 2005
Slide 1: Fourth Quarter 2004 Conference Call
Fourth Quarter 2004 Conference Call, February 10, 2005
Slide 2: Highlights
Conference Call Q4 2004 1 Highlights Fourth Quarter In Focus Going Forward z Strong sales growth 17% - High capacity utilization z New product launches - Record deliveries in Trucks and Penta - Renault Magnum - Volvo VT 880 z Improvement in operating income - Volvo Penta IPS - Strong development in
Slide 3: Net sales, Operating income, Earnings per share
Conference Call Q4 2004 2 Net sales (SEK bn) Europe North 54% America Asia 26% 11% Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 South 48.7 45.5 53.0 45.9 57.1 America Rest of 174.8 179.3 187.8 193.1 201.5 4% the world 5% Quarter 12 months rolling Operating income* Earnings per share (SEK M) (SEK) Q4 03 Q1 04 Q2 04
Slide 4: Consolidated Results
Conference Call Q4 2004 3 Consolidated Results Fourth Quarter 2004 SEK M Q42004 Q42003 Net Sales 57,113 48,733 Adjusted for currency and acquisitions +19% Gross income 11,993 9,317 21.0% 19.1% R&D expenses (1,850) (1,713) Selling expenses (4,962) (4,545) Administrative expenses (1,359) (1,388) Other
Slide 5: Development of cash conversion cycle
Conference Call Q4 2004 4 Volvo Group Development of cash conversion cycle SEK bn Days 40 90 80 Working capital 35 80 CCC - days 70 30 60 25 34 50 20 40 15 30 10 27 20 5 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2001 2002 2003 2004 AB Volvo 05-02-10
Slide 6: Trucks
Conference Call Q4 2004 5 Trucks Fourth Quarter Net sales Operating income (SEK bn) (SEK M) Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 33.2 31.2 34.9 31.3 39.5 1457 1476 2287 1768 3458 117.0 120.8 126.3 130.6 136.9 4.4% 4.7% 6.6% 5.7% 8.8% 3951 4900 6164 6988 8989 Quarter 12 months
Slide 7: Heavy Duty Truck Market Europe
Conference Call Q4 2004 6 Heavy Duty Truck Market Europe (EU members + Switzerland and Norway) 300 Forecast 2005 Units, Thousands (heavy trucks) up to +5% 256 250 246 200 188 214 171 150 170 122 100 116 50 Western Europe Europe Forecast 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03
Slide 8: Heavy Duty Truck Market North America
Conference Call Q4 2004 7 Heavy Duty Truck Market North America Units, Thousands (heavy trucks) Forecast 2005 309 +15-20% 300 250 255 236 200 174 199 179 150 170 134 122 100 50 Forecast 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05E AB Volvo 05-02-10
Slide 9: Volvo Buses
Conference Call Q4 2004 8 Volvo Buses Fourth Quarter Net sales Operating income* (SEK bn) (SEK M) Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 -96 -47 91 -26 167 3.1 2.5 3.6 2.9 3.6 -3.1% -1.8% 2.5% -0.9% 4.6% 12 11.6 12.1 12.2 12.7 -361 -325 -145 -78 185 Quarter 12 months rolling Qua
Slide 10: Volvo Construction Equipment
Conference Call Q4 2004 9 Volvo Construction Equipment Fourth Quarter Net sales Operating income (SEK bn) (SEK M) Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 6.5 6.1 8.1 6.4 8.0 133 309 648 349 266 23.2 24.5 26.4 27.1 28.7 2.0% 5.0% 8.0% 5.5% 3.3% 908 1077 1300 1439 1572 Quarter 12 m
Slide 11: Volvo Penta
Conference Call Q4 2004 10 Volvo Penta Fourth Quarter Net sales Operating income (SEK bn) (SEK M) Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 171 188 307 207 235 1.9 2.2 2.6 2.1 2.2 9.2% 8.6% 11.9% 9.7% 10.8% 7.6 7.9 8.4 8.7 9.1 695 724 819 873 937 Quarter 12 months rolling Quarter M
Slide 12: Volvo Aero
Conference Call Q4 2004 11 Volvo Aero Fourth Quarter Net sales Operating income (SEK bn) (SEK M) Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 2.1 1.6 1.9 1.7 1.8 -47 101 173 96 7 8 7.3 7.4 7.2 6.9 -2.2% 6.5% 9.2% 5.8% 0.4% -44 63 225 323 377 Quarter 12 months rolling Quarter Margin 12
Slide 13: Volvo Financial Services
Conference Call Q4 2004 12 Volvo Financial Services Fourth Quarter New retail financing Operating income and return on equity (SEK bn) (SEK M) Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 8.0 6.0 8.2 7.4 7.7 251 281 307 343 434 26.9 27 29.1 29.6 29.3 9.8% 10.2% 10.4% 9.7% 11.1% Quarte
Slide 14: Summary
Conference Call Q4 2004 13 Volvo Group Summary z Strong sales development z Continued profitability improvement z New product launches z Board proposal - Ordinary dividend of SEK 12.50 per share - Cancellation of treasury stocks above 5% of company shares - Renewed mandate for a buy-back program up
Slide 15: Expected impact of IFRS – Equity
Conference Call Q4 2004 14 Volvo Group Expected impact of IFRS – Equity SEK M Summarized reconciliation of shareholders' equity 040101 041231 050101 Equity under Swedish GAAP 72,420 69,409 69,409 IFRS adjustments: Capitalization and amortization of development costs and software 722 340 340 Minority
Slide 16: Expected impact of IFRS – Net profit
Conference Call Q4 2004 15 Volvo Group Expected impact of IFRS – Net profit SEK M Summarized reconciliation of net income 2004 Net income under Swedish GAAP 9,355 IFRS adjustments: Capitalization and amortization of development costs and software -382 Minority interest 40 Non-amortization of goodwil
Slide 17: Expected impact of IFRS – Net financial position
Conference Call Q4 2004 16 Volvo Group Expected impact of IFRS – Net financial position SEK bn Summarized reconciliation of net financial position, SEK Bn Volvo Group excl VFS Net financial position at December 31, 2004 under Swedish GAAP 18.7 IFRS adjustments: Post Employee benefits -0.5 Financial
Slide 18: Conference Call Q4 2004
Conference Call Q4 2004 17 AB Volvo 05-02-10