Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — AB Volvo — Q1 2023 Earnings Presentation
27 slides from Volvo Ab Class A's earnings presentation, Apr 20, 2023
Slide 1: First Quarter 2023
FIRST QUARTER 2023 Martin Lundstedt President and CEO Volve Group First quarter 2023 2023-04-20
Slide 2: First quarter highlights
votLuvao Volvo Group First quarter highlights NET SALES ADJUSTED OPERATING INCOME SEK bn SEK bn (margin)* * Net sales increased to SEK 131.4 bn, an — 12 months SEK 500 bn — 12 months 11.2% increase of 17% adjusted for FX 18.4 14.09 * Adjusted operating income reached SEK 1314 ( 7) 18.4 bn (12.7), co
Slide 3: Volume development
Volvo Group Volume development Volvo Group First quarter 2023 votLuvao TRUCK DELIVERIES == 12 months 239" units 41% 48.5 Qi Q@2 Q@3 Q4 Qi @2 @3 Q4 Qi 2021 2022 2023 Deliveries restated for UD Trucks divestment MACHINE DELIVERIES == 12 months 75' units -30% h 31.0 f 1 >a Qi @2 Q@3 Q4 Qi Q2 Q@3 @4 Qi
Slide 4: Electrification progress
Volvo Group Electrification progress Including Designwerk and Nova Bus Volvo Group First quarter 2023 votLuvao ORDER INTAKE, FULLY ELECTRIC VEHICLES == 12 months 5,360 units 1,197 729 308 Qi Q@2 Q@3 @4 Qi @2 @ @4 a 2021 2022 2023 DELIVERIES, FULLY ELECTRIC VEHICLES === 12 months 2,798 units 61 357 1
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Slide 7: Trucks
votLuvao Trucks * Volvo Trucks started production of heavy-duty rigid electric trucks * Volvo Trucks and Boliden collaborate on deployment of underground electric trucks for mining * Mack Trucks launched medium-duty electric models for North America * The existing technology cooperation with Isuzu G
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Slide 9: Trucks: quarterly orders +32% and deliveries +11%
Trucks Quarterly orders +32% and deliveries +11% NORTH AMERICA ss=Orders «=m=Deliveries Qi @2 @3 @4 Ql 2021 2022 2023 Orders +152% Deliveries +15% Q2 Q3 Q@4 Ql SOUTH AMERICA - T_ ae =Orders «==Deliveries Qi Q@2 Q3 Q4 Ql 2021 2022 Q2 @3 Q4 Qi 2023 orders -29% Deliveries -28% Volvo Group First quarter
Slide 10: Includes content supplied by IHS Markit . Copyright © IHS Markit (2022). All rights
Includes content supplied by IHS Markit . Copyright © IHS Markit (2022). All rights reserved.
Slide 11: Construction Equipment
votLuvao Construction Equipment * New midsized wheel loader with electric conversion * Investment in battery pack production at the excavator plant in South Korea * Good customer reception to product launches at ConExpo * Electric machine orders increased 84% and deliveries increased 79% Volvo Group
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Slide 13: Construction Equipment: quarterly orders -35% and deliveries -30%
votLuvao Construction Equipment Quarterly orders -35% and deliveries -30% NORTH*AMERICA EUROPE ==Orders iveries Orders —==Deliveries Qi Q2 Q@3 Q4 Qi Q@2 Q@3 4 Qi Qi Q@2 Q@3 Q4 Qi Q2 Q3 Q4 Qi 2021 2022 2023 2021 2022 2023 Orders +107% Orders -37% Deliveries +35% Deliveries -9% SOUTH AMERICA AFRICA AN
Slide 14: Buses
votLuvao Buses . Orders increased by 4% . Deliveries increased by 25% . New business model in Europe: » Focus inhouse resources on chassis » Use external body builders . Prevost launched an all-new version of its H3-45 coach model which is more aerodynamic and up to 12% more fuel efficient Volvo Gro
Slide 15: Volvo Penta
votLuvao Volvo Penta * Orders decreased by 6% * Deliveries increased by 11% * Volvo Penta has expanded its genset range and launched its most powerful engine, D17 * To accelerate entry into the utility sector Volvo Penta acquired a minority stake in Utility Innovation Group in the US Volvo Group Fir
Slide 16: Financial Services
Financial Services * Good growth in new business volumes * Penetration trending down due to continued competitive environment * Stable portfolio performance Volvo Group First quarter 2023 votLuvao NEW RETAIL FINANCING & PENETRATION RATE* SEK bn == Penetration rate 12 months 27 % ee 21.6 17.3 Qi Q@2
Slide 17: First Quarter 2023
FIRST QUARTER 2023 Jan Ytterberg Acting CFO and Executive Vice President Group Finance Volve Group First quarter 2023 2023-04-20
Slide 18: Net sales per market
votLuvao Volvo Group Net sales per market NET SALES SEK bn Currency SEK +8.5 bn 10.3 oO7 24 Q12022 Europe North South Asia Africaand Q12023 America America Oceania Volvo Group First quarter 2023 2023-04-20 18
Slide 19: Adjusted operating income contributors
votLuvao Volvo Group Adjusted operating income contributors | ADJUSTED OPERATING INCOME SEK bn Currency SEK +1.7 bn 9.6 Q12022 Gross Cash NetR&D Selling Admin Other Q12023 Income R&D Cap,/Amo. Volvo Group First quarter 2023 ~ \ + Price realization + Brand and product mix in Construction Equipment -
Slide 20: Cash flow, financial position and ROCE in Industrial Operations
Volvo Group votLuvao Cash flow, financial position and ROCE in Industrial Operations OPERATING CASH FLOW SEK bn == 12 months SEK 45.7 bn 57 5,0 | | ] I r o sf 5.4 Qi @2 @3 Q4 Qi @2 @3 @4 ai 2021 2022 2023 Volvo Group First quarter 2023 ROCE % 12 months FINANCIAL POSITION (Excl. pensions and lease li
Slide 21: Trucks: net sales and adjusted operating income
Trucks votLuvao Net sales and adjusted operating income NET SALES ==12 months SEK 331 bn SEK bn 429% (excl. FX +21%) J | 89.6 69.6 52.9 a a2 @8 a4 ai @2 @ @ at 2021 2022 2023 Net sales restated for UD Trucks divestment Volvo Group First quarter 2023 ADJUSTED OPERATING INCOME SEK bn . oo 12.7 vt + Pr
Slide 22: Construction Equipment: net sales and adjusted operating income
votLuvao Construction Equipment Net sales and adjusted operating income NET SALES == 12 months SEK 103 bn SEK bn +11% (excl. FX +5%) -—4—\_, 24.7 22.6 25.1 Qi @2 @3 @4 Qt Q@2 Q@3 a4 a 2021 2022 2023 Volvo Group First quarter 2023 ADJUSTED OPERATING INCOME SEK bn 4. + Brand & product mix 6 + Price re
Slide 23: Buses: net sales and adjusted operating income
Buses votLuvao Net sales and adjusted operating income NET SALES == 12 months SEK 20 bn SEK bn +40% (excl. FX +29%) if }__ ] 4.3 2.4 Qi Q2 Q3 G4 QI Q2 Q3 4 Ql 2021 2022 2023 All numbers restated to exclude Nova Bus which is now included in segment ‘Group Functions and other’ Volvo Group First quarte
Slide 24: Volvo Penta: net sales and adjusted operating income
Volvo Penta votLuvao Net sales and adjusted operating income NETSALES == 12 months SEK 20 bn ADJUSTED OPERATING INCOME ADJUSTED OPERATING INCOME SEK bn SEKM SEK M (margin)* === 12 months 15.5% 433% 4,271 Currency SEK +198 M (excl. FX +26%) 1,271 r A ais nv 769 (22.7%) . ix an + Price realization 648
Slide 25: Financial Services: credit portfolio and profitability
Financial Services votLuvao Credit portfolio and profitability CREDIT PORTFOLIO & ROE* SEK bn OE 12 months 14.8% 297 158 ai a2 a3 a4 ai a2 a3 a4 a 2021 2022 2023 Volvo Group First quarter 2023 ADJUSTED OPERATING INCOME* SEKM 872 806 ~ + Portfolio growth NP - Spread compression Qi Qi 2022 2023 *All f
Slide 26: First quarter highlights
votLuvao Volvo Group First quarter highlights NET SALES ADJUSTED OPERATING INCOME SEK bn SEK bn (margin)* * Net sales increased to SEK 131.4 bn, an — 12 months SEK 500 bn — 12 months 11.2% increase of 16.8% adjusted for FX 18.4 14.09 * Adjusted operating income reached SEK 131.4 { i) 18.4 bn (12.7),
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