Slide 1: Third quarter 2013
Volvo Group Third quarter 2013
Slide 2: AB Volvo Third quarter 2013
AB Volvo Third quarter 2013
Slide 3: Trucks Europe: Excellent reception of the new products
TRUCKS EUROPE Excellent reception of the new products – decision to optimize manufacturing Highlights in Q3 • Commercial launch of the new product ranges • Strong order situation – sold out on Euro 5, transition to Euro 6 ongoing • Production change-over to the new ranges • Decision to optimize manu
Slide 4: Trucks North America: Targeting efficiency improvements in a stable market
TRUCKS NORTH AMERICA Targeting efficiency improvements in a stable market Highlights in Q3 • Orders increased by 29% compared with Q3-12 • Improving demand for construction trucks • Introducing the XE11 fuel efficiency package • Efficiency enhancements in the Hagerstown powertrain plant SALES TREND
Slide 5: Trucks South America: Strong position in Brazil
TRUCKS SOUTH AMERICA Strong position in Brazil – introducing the new Volvo VM Highlights in Q3 • Introduction of the new Volvo VM trucks for South America • Continued strong demand in Brazil, total market up by 22% • Strong order book – sold out for 2013, good fill-rate for Q1-14 • Market share at a
Slide 6: Trucks Asia: Introducing Quester
TRUCKS ASIA Introducing Quester Highlights in Q3 • Successful introduction of the new UD Quester • Production start-up in Bangkok, Thailand • Slow start of the year in India, total market outlook revised to 225’ trucks, previously 245’ SALES TREND PRODUCTION IN BALANCE MARKET OUTLOOK MD-HD trucks SE
Slide 7: Trucks in Q3 – Operating margin reached 4.4%
TRUCKS Trucks in Q3 – Operating margin* reached 4.4% - R&D net amortization/capitalization and currency effects impacting margin by about 4% compared with Q312 SALES TREND OPERATING INCOME* OPERATING MARGIN* ORDERS SEK bn SEK bn % Units 12 months 174 bn 12 months 5.7 bn 12 months 3.3% Up 7% compared
Slide 8: 35 roadmaps and 400 main activities defined to support strategic objectives
TRUCKS 26 months to go 35 roadmaps and 400 main activities defined to support the strategic objectives Major activities in Q2 2013 • Complete renewal of Renault Trucks’ products • New Volvo FMX, Volvo FM, Volvo FE and Major activities in Q4 2012 Volvo FL • Right-sizing of UD Trucks in Japan effectiv
Slide 9: AB Volvo Third quarter 2013
AB Volvo Third quarter 2013
Slide 10: Construction Equipment: Markets moving side-ways
CONSTRUCTION EQUIPMENT Markets moving side-ways EUROPE NORTH AMERICA Stabilizing market in Europe Sales impacted by low rental renewal • Improving orders and deliveries • Total construction equipment demand stable • Improved market shares for compact equipment compared to 2012 • Divestment of the ce
Slide 11: Improving demand for general construction in China, mining activity still low across Asia
CONSTRUCTION EQUIPMENT Improving demand for general construction in China, mining activity still low across Asia CHINA REST OF ASIA Maintained number one position Mining bottoming out on low level • Chinese total market increased by 10% in the • Sales down by 18% compared with Q312 – quarter, driven
Slide 12: Low sales volumes and continued slow mining market
CONSTRUCTION EQUIPMENT Low sales volumes and continued slow mining market SALES TREND OPERATING INCOME OPERATING MARGIN ORDERS SEK bn 12 months 53 bn SEK bn 12 months 2.6 bn % 12 months 4.8% Up 2% compared with 2012 Fx: -229 M Book to bill (Volvo): 81%, YTD 100% 15 9.9% 13 12 1.4 4.5% 15’ 0.6 0.5 4.
Slide 13: AB Volvo Third quarter 2013
AB Volvo Third quarter 2013
Slide 14: Continued weak market for buses, good financial performance in Volvo Penta
BUSES & PENTA Continued weak market for buses, good financial performance in Volvo Penta BUSES VOLVO PENTA Weak market impacts profitability Increased sales and improved profitability • Low sales volumes on a weak market • Continued weak demand for marine engines • Operating loss of SEK 164 M, curre
Slide 15: AB Volvo Third quarter 2013
AB Volvo Third quarter 2013
Slide 16: Customer Finance: Higher earning assets and ROE of 12.6%
CUSTOMER FINANCE Higher earning assets and ROE of 12.6% VFS Good portfolio growth, up 7% adjusted for currency • Operating income SEK 327 M • Increased credit provisions due to non- performing loans and leases in Spain • Syndication of SEK 0.8 bn of the credit portfolio NEW FINANCING OPERATING INCOM
Slide 17: AB Volvo Third quarter 2013
AB Volvo Third quarter 2013
Slide 18: Production change-over and efficiency program
VOLVO GROUP Production change-over and efficiency program NET SALES OPERATING MARGIN* SEK bn 12 months 267 bn SEK m 12 months 3.2% 68 65 Record-high number of start-ups in production 5.1% 3.9% - parallel production of classic and new ranges Q3 Q4 Q1 Q2 Q3 High speed in implementing the Truck Str
Slide 19: VOLVO
VOLVO