Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — AB Volvo — Q4 2004 Earnings Presentation
31 slides from Volvo AB Class A's earnings presentation, Feb 10, 2005
Slide 1: Fourth Quarter 2004 Press Conference
Fourth Quarter 2004 Press Conference, February 10, 2005
Slide 2: Highlights
Press Conference 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
Press Conference 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 0
Slide 4: Trucks
Press Conference Q4 2004 3 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 5: Heavy Duty Truck Market Europe
Press Conference Q4 2004 4 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 6: Heavy Duty Truck Market North America
Press Conference Q4 2004 5 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 7: Renault Trucks: New Renault Magnum
Press Conference Q4 2004 6 Renault Trucks New Renault Magnum AB Volvo 05-02-10
Slide 8: Volvo Trucks: New Volvo VT and 16L engine
Press Conference Q4 2004 7 Volvo Trucks New Volvo VT 880 and 16L engine AB Volvo 05-02-10
Slide 9: Volvo Buses
Press Conference 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 Qu
Slide 10: Volvo Buses: 1,667 buses to Santiago
Press Conference Q4 2004 9 Volvo Buses 1,667 buses to Santiago AB Volvo 05-02-10
Slide 11: Sales by Region 2004
Press Conference Q4 2004 Sales by Region 2004 10 AB Volvo 05-02-10
Slide 12: Main OECD Bus Manufacturers
Press Conference Q4 2004 11 Main OECD Bus Manufacturers and their total worldwide production >12 tons GVW (excl. US schoolbuses) AB Volvo 05-02-10
Slide 13: Volvo Bus Global Range
Press Conference Q4 2004 Volvo Bus Global Range 12 Bus Rapid Transport solution AB Volvo 05-02-10
Slide 14: Volvo Bus BRT Experience
Press Conference Q4 2004 13 Volvo Bus BRT Experience 05-02-10
Slide 15: Volvo Bus Turnaround Program Highlights
Press Conference Q4 2004 14 Volvo Bus Turnaround Program Highlights Key strategies • Customer Focus • Breakeven Management • Product Commonality Special focus areas • Europe Turnaround Program • Acquisition of Nova/Prevost 100% AB Volvo 05-02-10
Slide 16: Press Conference Q4 2004
Press Conference Q4 2004 15 AB Volvo 05-02-10
Slide 17: Volvo Bus Turnaround Program: Breakeven Management
Press Conference Q4 2004 16 Volvo Bus Turnaround Program Breakeven Management • New company structure • One Industrial system • Product commonality • Capital management AB Volvo 05-02-10
Slide 18: Volvo Bus Turnaround Program
Press Conference Q4 2004 17 Volvo Bus Turnaround Program AB Volvo 05-02-10
Slide 19: Volvo Bus Turnaround Program: Product Commonality
Press Conference Q4 2004 18 Volvo Bus Turnaround Program Product Commonality Brake system Electrical system Engine system Body components Chassi platform AB Volvo 05-02-10
Slide 20: Focus 2005
Press Conference Q4 2004 19 Focus 2005 • Towards next level of profitability • Execute key strategies • Price management • Mexico turnaround • China development • Euro IV/V development AB Volvo 05-02-10
Slide 21: Volvo Construction Equipment
Press Conference Q4 2004 20 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
Slide 22: Volvo Construction Equipment: New ton excavator
Press Conference Q4 2004 21 Volvo Construction Equipment New 70 ton excavator presented AB Volvo 05-02-10
Slide 23: Volvo Penta
Press Conference Q4 2004 22 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
Slide 24: Volvo Penta IPS – new drive system
Press Conference Q4 2004 23 Volvo Penta Volvo Penta IPS – new drive system AB Volvo 05-02-10
Slide 25: Volvo Aero
Press Conference Q4 2004 24 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 1
Slide 26: Volvo Aero: Participation in GEnx engine
Press Conference Q4 2004 25 Volvo Aero Participation in GEnx engine GEnx to power: - Airbus A350 - Boeing 787 AB Volvo 05-02-10
Slide 27: Volvo Financial Services
Press Conference Q4 2004 26 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% Quart
Slide 28: Volvo Financial Services: Fourth Quarter isolated
Press Conference Q4 2004 27 Volvo Financial Services Fourth Quarter - isolated New financing Penetration on new financing 16% 7% 52% 21% Volvo Renault Volvo Volvo CE Mack 1%* 3% Trucks Trucks Buses 35% 28% 14% 12% 8% AB Volvo 05-02-10
Slide 29: Volvo Group Summary
Press Conference Q4 2004 28 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 30: Press Conference Q4 2004
Press Conference Q4 2004 29 AB Volvo 05-02-10
Slide 31: Press Conference Q4 2004
Press Conference Q4 2004 30 AB Volvo 05-02-10