Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — Q1 2016 Earnings Presentation
32 slides from Volvo Ab Class A's earnings presentation, 2016
Slide 1: Volvo Group First Quarter 2016
Volvo Group FIRST QUARTER 2016 MARTIN LUNDSTEDT PRESIDENT AND CEO Volvo Group Headquarters First quarter 2016 1
Slide 2: First quarter highlights
VOLVO GROUP First quarter highlights Production adjustments in North America and Europe implemented Underlying profitability stable – operating margin* 6.2% (6.1) Product introductions in Volvo CE and Volvo Trucks New organization in Trucks with clear leadership and accountability for each b
Slide 3: Volume development
VOLVO GROUP Volume development Volume -5% Volume +2% -2,268 Volvo -2,058 Volvo -473 UD +376 SDLG +625 Renault +152 Trucks +809 Mack -1,395 Volvo Group Headquarters First quarter 2016 3
Slide 4: Service sales development
VOLVO GROUP Service sales development 12 months 65.7 bn -3% Trucks Volvo CE 16.6 Buses 14.4 Volvo Penta Volvo Group Headquarters First quarter 2016 4
Slide 5: Trucks
TRUCKS Good demand in Europe Correction in North America Strengthened product offer in Volvo Trucks Volvo Group Headquarters
Slide 6: New I-shift with crawler gears
VOLVO TRUCKS New I-shift with crawler gears - can start off from standstill with 325 tons. Volvo Group Headquarters First quarter 2016 6
Slide 7: Engines with lower fuel consumption launched in North America
VOLVO TRUCKS Engines with lower fuel consumption launched in North America Volvo Group Headquarters First quarter 2016 7
Slide 8: Platooning through Europe
TRUCKS Platooning through Europe Volvo Group Headquarters First quarter 2016 8
Slide 9: Market environment
TRUCKS Market environment EUROPE NORTH AMERICA HD HD ASIA HD+MD BRAZIL HD 2015: 751’ Forecast 2016: 750’ 2015: 278’ Forecast 2016: 330’ 2015: 90’ Forecast 2016: 90’ Volvo Group Headquarters First quarter 2016 9
Slide 10: Market shares YTD March
TRUCKS Market shares YTD March 2015 2016 % Volvo Group Headquarters First quarter 2016 10
Slide 11: Orders and deliveries
TRUCKS Orders and deliveries Orders +23% EUROPE Deliveries +16% NORTH AMERICA Orders -54% Deliveries -33% Orders -15% SOUTH AMERICA Orders -9% ASIA Deliveries +7% Deliveries -11% Orders -4% Deliveries -14% Volvo Group Headquarters First quarter 2016 11
Slide 12: Construction Equipment
CONSTRUCTION EQUIPMENT Continued uncertainty in emerging markets Market growth in Europe Continued market share growth in large machines Introducing new products at Bauma Volvo Group Headquarters 12
Slide 13: A60H - Industry's biggest articulated hauler
CONSTRUCTION EQUIPMENT A60H - Industry’s biggest articulated hauler Volvo Group Headquarters First quarter 2016 13
Slide 14: EC950E excavator - lowers cost per ton
CONSTRUCTION EQUIPMENT EC950E excavator - lowers cost per ton Volvo Group Headquarters First quarter 2016 14
Slide 15: Market environment
CONSTRUCTION EQUIPMENT Market environment Total market size is Volvo CE estimation Volvo Group Headquarters First quarter 2016 15
Slide 16: Orders and deliveries
CONSTRUCTION EQUIPMENT Orders and deliveries Orders -5% (+9% adj. for Orders -7% EUROPE product exits) Deliveries +24% NORTH AMERICA Deliveries -3% (+3% adj. for product exits) Orders -5% SOUTH AMERICA Orders -85% ASIA Deliveries +2% Deliveries -70% Orders -10% Deliveries -12% Volvo Group Headquarte
Slide 17: Buses
BUSES Positive market development in North America and in Europe. Low in Brazil. Order intake +13%, primarily in Europe Deliveries up 28% in quarter, driven by North America and Asia Order for electric bus system with electric hybrids and charging stations to Namur, Belgium Volvo Group Headq
Slide 18: Volvo Penta
VOLVO PENTA Trim and stabilization systems from Humphree Marine leisure market remains flat Net order intake decreased by 11% Good sales growth, in particular in the service sales, +7% currency-adjusted Upgraded Glass Cockpit system Broader product offering through acquisition of 80% in Hu
Slide 19: Volvo Group First Quarter 2016 - CFO
Volvo Group FIRST QUARTER 2016 JAN GURANDER DEPUTY CEO AND CFO Volvo Group Headquarters First quarter 2016 19
Slide 20: Net sales per market
VOLVO GROUP Net sales per market NET SALES Currency -0.9 bn SEK bn Volvo Group Headquarters First quarter 2016 20
Slide 21: Operating income per business area
VOLVO GROUP Operating income per business area OPERATING INCOME Currency -417 M SEK M Volvo Group Headquarters *Q1 2015: Excluding restructuring charges in efficiency program (-229) First quarter 2016 and capital gain on sale of shares in Eicher Motors Ltd. (2,471) Q1 2016: Excluding capital gain on
Slide 22: Operating income bridge
VOLVO GROUP Operating income bridge OPERATING INCOME* SEK M Currency - 417 M + Higher R&D capitalization + Lower selling and admin expenses + Europe earnings - Lower volumes - Safety campaigns - Production cuts in North America - Currency Volvo Group Headquarters *Q1 2015: Excluding restructuring ch
Slide 23: Cash flow
VOLVO GROUP – INDUSTRIAL OPERATIONS Cash flow OPERATING CASH FLOW INVESTMENTS IN PPE SEK bn SEK bn 12 months SEK 9.5 bn 12 months SEK 5.9 bn 1.0 1.0 Volvo Group Headquarters First quarter 2016 23
Slide 24: Trucks net sales
TRUCKS Net sales NET SALES 12 months 210.4 bn SEK bn -7% 51.7 48.0 43.8 Delivered trucks -5%: - North America -33% - Europe +16% Net sales currency-adjusted - vehicles -5% 2014 2015 2016 - service 0% Volvo Group Headquarters First quarter 2016 24
Slide 25: Trucks operating income
TRUCKS Operating income + Europe 3,741 3,775* + Lower S&A expenses + Higher R&D capitalization - Lower volumes - Production adjustment NA - Safety campaigns - Currency SEK -340 M Q1 2015 Q1 2016 Volvo Group Headquarters *2014:Excluding restructuring charges in efficiency program, EU provision and ga
Slide 26: Construction Equipment net sales
CONSTRUCTION CONSTRUCTION EQUIPMENT EQUIPMENT Net salesVCE Heading Explanation sales Explanation op inc Event in the quarter Delivered machines +2%: Event in the quarter - Volvo -6% - SDLG +16% Net sales currency-adjusted: - machines 0% - service -1% Volvo Group Headquarters First quarte
Slide 27: Construction Equipment operating income
CONSTRUCTION EQUIPMENT Operating income OPERATING INCOME SEK M 352* 341 + Reduced operating expenses - Brand/product mix - Currency SEK -49 M Q1 2015 Q1 2016 Volvo Group Headquarters *Excluding restructuring charges in efficiency program for comparison periods 2014-2015 First quarter 2016 27
Slide 28: Buses net sales and operating income
BUSES Net sales and operating income Net sales currency-adjusted +14% - vehicles +16% - service +6% Operating income: + higher volumes - currency -141 Operating margin 1.1% (2.2) Volvo Group Headquarters * Excluding restructuring charges in efficiency program for comparison periods 2014-2015 F
Slide 29: Volvo Penta net sales and operating income
VOLVO PENTA Net sales and operating income Net sales currency-adjusted +6% - engines +6% - service +7% Operating income: + higher sales + product and market mix + lower operating expenses Operating margin 15.6% (13.0) Volvo Group Headquarters * Excluding restructuring charges in efficiency pro
Slide 30: Financial Services new financing and profitability
FINANCIAL SERVICES New financing and profitability 2016 Volvo Group Headquarters * Excluding restructuring charges in efficiency program for comparison periods 2014-2015 First quarter 2016 30
Slide 31: Summary
VOLVO GROUP Summary Production adjustments in North America and Europe implemented Underlying profitability stable – operating margin* 6.2% (6.1) Product introductions in Volvo CE and Volvo Trucks New organization in Trucks with clear leadership and accountability for each brand Volvo Group
Slide 32: Volvo Group First Quarter 2016
Volvo Group FIRST QUARTER 2016 Volvo Group Headquarters First quarter 2016 32