Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — AB Volvo — Volvo Investor Day - Pithampur, India 2012
15 slides from Volvo Ab Class A's conference presentation, Mar 28, 2012
Slide 1: Volvo Group
Volvo Group Philippe Divry – SVP Truck Joint Ventures India AB Volvo March 28, 2012 1
Slide 2: Volvo Group
Volvo Group Renault Renault UD Mack Eicher Revenues 2011: SEK 310 bn INR 2,200 bn Construction Financial Buses equipment Volvo Penta Volvo Aero services Construction equipment 20% Buses Trucks 7% 65% AB Volvo Volvo Investor Day - Pithampur, India March 28 2
Slide 3: Successful inroads into new markets
Successful inroads into new markets 1998 2011 7% Eastern Europe 31% North 3% America 21% 11% South America 6% 17% 48% 5% 24% Asia Western 31% 52% 3% Europe 6% Other markets ~100 bn SEK ~310 bn SEK Organic growth Acquisitions and JVs Strong brand and distribution Samsung Heavy Lingong, China in Easte
Slide 4: Global Positions
Global Positions Trucks Marine diesel engines 2 * 1 in Europe 1 Buses Heavy duty diesel engines 2 1 Construction Equipment Aerospace components Leading 3 independent provider * Among Western manufacturers AB Volvo Volvo Investor Day - Pithampur, India March 28 4
Slide 5: Volvo in Asia: Strong growth – a significant part of the Group’s business
Volvo in Asia Strong growth – a significant part of the Group’s business 24% of Group sales Net sales Korea SEK, bn China SEK 73 bn Japan INR 500 bn India Thailand Philippines SEK 11 bn Malaysia INR 75 bn Singapore 2001 2006 2011 2016 AB Volvo Volvo Investor Day - Pithampur, India March 28 5
Slide 6: Asian Truck markets – a huge potential
Asian Truck markets – a huge potential 3 Market Segments India China Total market: 237 000 Total market: ~900 000 Total HD-truck markets Local Local 2011 European European Japanese Indonesia Korea Total market: 20 000 Total market: ~12 000 Japanese European European Local Thailand Taiwan Malaysia To
Slide 7: Volvo in Asia – a two-stage development
Volvo in Asia – a two-stage development European Niche markets 2005 European products Acquisitions and partnerships - UD Trucks Japan 2005 - Dongfeng Nissan Diesel “DND” China - Eicher India - SDLG China AB Volvo Volvo Investor Day - Pithampur, India March 28 7
Slide 8: Volvo Group in Asia
Volvo Group in Asia - Infrastructure in place to capture growth 20,000 employees Korea Wholly owned operations & partnerships China Japan Strong market shares India Multiple Brands Thailand Philippines Localized production & Export opportunities Malaysia Singapore Engineering capability for both vol
Slide 9: The Volvo Group in India
The Volvo Group in India Wholly owned operations VECV Joint Venture AB Volvo Volvo Investor Day - Pithampur, India March 28 9
Slide 10: Wholly owned operations
Wholly owned operations A strong foothold in India Market presence Sales, SEK bn SEK 2.5 bn INR 17 bn 3,000 employees Sourcing & Competence hub SEK 0.5 bn INR 3.4 bn 2001 2011 AB Volvo Volvo Investor Day - Pithampur, India March 28 10
Slide 11: VECV – adding value to the Volvo Group
VECV – adding value to the Volvo Group Efficient way of addressing the local volume segment in India and other emerging markets Strong partner adding market presence, competence in frugal engineering and speed to market Combination of frugal approach and selective introduction of Volvo technology –
Slide 12: Cooperation projects Volvo Group – VECV
Cooperation projects Volvo Group – VECV Mutually beneficial Medium Duty Engine Products Cost effective vehicle platforms Engine development & test lab Know-how Quality & Productivity Design to cost Purchasing synergies Business Distribution and aftermarket Volvo sourcing from VECV AB
Slide 13: New medium duty engine platform with industrial base in Asia
New medium duty engine platform with industrial base in Asia 30 000 European engines, final assembly (EU6) Lyon 25 000 Japanese engines, machining and final assembly Ageo Pithampur Sourcing, Machining, Assembly 100 000 long blocks 70 000 Asian engines, final assembly VECV plant in Pithampur, India A
Slide 14: Investing for modernizing market segments
Investing for modernizing market segments - High quality & fuel efficiency - New feature/price balance Price Premium - Niche - Developed, sourced & produced in Asia - Full product range Upgrades - construction Growing - haulage Middle-market - mining - For Asia & emerging markets Mass-market - Renew
Slide 15: “Geared for future profitable growth”
Conclusions Volvo Group has built a strong position in India - Wholly owned operations - Partnership with VECV Participate in the Indian volume market and Export base to other markets Strong profitable growth in VECV since 2008 India as global competence hub for the Volvo Group New product range for
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