Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — AB Volvo — Q3 2010 Earnings Presentation
28 slides from Volvo AB Class A's earnings presentation, Oct 22, 2010
Slide 1: Third Quarter 2010
Third Quarter 2010 Press Conference, October 22, 2010
Slide 2: Group Highlights
Group Highlights Third quarter – Operating income SEK 4.9 bn – Operating margin 7.7% – Cash flow negative SEK 1.9 bn Business environment – Europe: improving market conditions – Asia & South America: strong markets – North America: improving demand AB Volvo Third Quarter 2010 2
Slide 3: Volvo Group
Volvo Group Net sales Third quarter (SEK bn) 5% Eastern Europe North America 18% 11% South America 26% Asia 50% Western 32% Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Europe Quarter 49 60 59 69 64 12 Mth. rol. 237 218 221 236 251 8% Other markets Operating income (SEK M) Operating income + Increased volumes + Im
Slide 4: Trucks
Trucks Net sales Operating income SEK bn SEK M Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Quarter 30,4 37,7 36,5 41,6 41,2 Quarter -2 329 -1 316 1 444 2 478 2 700 12 Mth. rol. 155,4 138,9 138 146,1 156,9 12 Mth. rol. -9 232 -10 805 -6 979 277 5 306 Margin -7,7% -3,5% 4,0% 6,0% 6,6%
Slide 5: Net order intake
Net order intake Trucks Net order Q3-09 Q2-10 Q3-10 Change Change 60 000 intake Q3->Q3 Q2->Q3 50 000 Europe 8,189 19,054 19,434 137% 2% 40 000 North America 5,093 6,675 9,350 84% 40% 30 000 South America 5,284 4,986 6,085 15% 22% 20 000 Asia 10,079 13,367 13,047 29% -2% 10 000 Other markets 3,353 4,
Slide 6: AB Volvo Third Quarter 2010
AB Volvo Third Quarter 2010 6
Slide 7: Strategy Transport Solutions
Strategy Transport Solutions Service offerings Extended offerings Aftermarket offerings AB Volvo Third Quarter 2010 7
Slide 8: Consistent Product Development – New Volvo FMX
Consistent Product Development – New Volvo FMX AB Volvo Third Quarter 2010 8
Slide 9: Consistent Product Development – New Volvo FM
Consistent Product Development – New Volvo FM AB Volvo Third Quarter 2010 9
Slide 10: Global Deliveries Increasing
Global Deliveries Increasing – First nine months Europe North America + 32% + 49% Asia Middle East + 42% + 116% South America + 100% AB Volvo Third Quarter 2010 10
Slide 11: Heavy-duty Truck Market – Europe
Heavy-duty Truck Market – Europe1 Units, Thousands (heavy trucks) 350 300 2011: >200 250 thousand 200 150 2010: +10% 100 50 0 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 1) EU members + Switzerland and Norway Modification of definition: In 1991 (East Germany) and in
Slide 12: Heavy-duty Truck Market – North America
Heavy-duty Truck Market – North America Units, Thousands (heavy trucks) 400 350 300 2011: 250 >200 thousand 200 150 100 2010: +20-30% 50 0 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 AB Volvo Third Quarter 2010 12
Slide 13: Strong positions in Latin America and Russia
Strong positions in Latin America and Russia Russia 150’ 45’ 2000 2015 Latin America • Volvo trucks strong brand image and 130’ customer satisfaction • High demand for trucks 50’ • Industrial supply capacity – need for increased local content 2000 2015 • Continued expansion of service network AB Vol
Slide 14: Higher efficiency in manufacturing after accelerated investments during crisis
Higher efficiency in manufacturing after accelerated investments during crisis >100% increase in production pace during 2010 Efficiency program runs well – New press line and new cab welding line in Umeå – New plastic paint shop in Umeå – Cab trim assembly Gent – Driven lines implemented in Tuve – S
Slide 15: Strong Retail Network – Service business less volatile
Strong Retail Network – Service business less volatile • Key to total transport solution • Growing truck population • Consistent expansion • Driver for profitability • Excellent relations AB Volvo Third Quarter 2010 15
Slide 16: Strengthened positions through the crisis
Strengthened positions through the crisis 1 Quality Safety Fuel Efficiency Relationships Customer Satisfaction and Image 1 AB Volvo Third Quarter 2010 16
Slide 17: Construction Equipment
Construction Equipment Net sales Operating income SEK bn SEK M Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Quarter -787 -564 1 006 2 086 1 330 Quarter 8,2 10,2 11,1 15,3 12,7 12 Mth. rol. -4 697 -4 005 -1 604 1 741 3 858 12 Mth. rol. 36,7 35,7 38,6 44,8 49,3 Margin, % -9,6% -5,6% 9,0
Slide 18: New series of SDLG-excavators
New series of SDLG-excavators Production Planning AB Volvo Third Quarter 2010 18
Slide 19: Buses
Buses Net sales Operating income SEK bn SEK M Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Quarter -91 -46 145 259 155 Quarter 4,0 5,8 5,1 5,3 4,6 12 Mth. rol. -233 -351 -111 267 513 12 Mth. rol. 18,3 18,5 19,5 20,1 20,7 Margin -2,3% -0,8% 2,9% 4,9% 3,4% Highlights In Focus z Still to
Slide 20: Buses – new products launched
Buses – new products launched 8900 Intercity Coach 9500 AB Volvo Third Quarter 2010 20
Slide 21: Volvo Penta
Volvo Penta Net sales Operating income SEK bn SEK M Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Quarter 25 7 121 312 72 Quarter 1,9 1,9 2,0 2,6 2,1 12 Mth. rol. -283 -230 -12 465 512 12 Mth. rol. 8,6 8,2 8,1 8,5 8,6 Margin 1,3% 0,4% 6,1% 11,9% 3,5% Highlights In Focus z Flat world ma
Slide 22: Volvo Penta product news
Volvo Penta product news AB Volvo Third Quarter 2010 22
Slide 23: Volvo Aero
Volvo Aero Net sales Operating income SEK bn SEK M 241 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Quarter 108 -169 152 -372 224 Quarter 1,8 2,0 1,9 2,1 1,8 12 Mth. rol. 360 50 119 -281 -165 12 Mth. rol. 8,2 7,8 7,7 7,8 7,8 Margin 6,1% -8,5% 8,0% -17,4 12,3% Highlights In Focus z Inc
Slide 24: Volvo Aero
Volvo Aero Last bolt ceremony and first lit off; important milestones for the new PW1000G engine AB Volvo Third Quarter 2010 24
Slide 25: Financial Services
Financial Services New retail financing Operating income and return on equity SEK bn SEK M Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Quarter 6,3 7,0 6,8 8,9 8,8 Quarter -3 15 14 7 48 12 Mth. rol. 33,6 28,7 28,0 29,0 31,5 ROE -3,4% -6,2% -2,8% -0,3% 0,0% Highlights In Focus z Strong
Slide 26: Financial Services
Financial Services Total managed assets Penetration on new financing (SEK bn) W Volvo Volvo Renault Mack UD Americas E Europe Asia Buses Europe CE Trucks Trucks Trucks Trucks Q3 09 43 41 11 7 Q3 09 34% 27% 32% 19% 15% 1% Q3 10 35 42 6 8 Q3 10 37% 28% 17% 19% 30% 14% AB Volvo Third Quarter 2010 26
Slide 27: Group Summary
Group Summary Earnings per share Third quarter SEK • Sales 32% higher, +33% fx-adjusted • Operating income SEK 4.9 bn, operating margin 7.7% • Cost reductions maintained • Seasonal build-up in working capital Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Quarter -1,44 -0,99 0,83 1,55 1,38 12 Mth. roll. -6,95 -7,26
Slide 28: Third Quarter 2010
VOLVO Third Quarter 2010