Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — AB Volvo — Q1 2006 Earnings Presentation
26 slides from Volvo AB Class A's earnings presentation, Apr 25, 2006
Slide 1: First Quarter 2006 Press Conference
First Quarter 2006 Press Conference, April 25, 2006
Slide 2: Highlights
Press Conference Q1 2006 1 Highlights First Quarter In Focus Going Forward z Business environment z Manage product- and production - Continued strong demand in North America change-over - European market – stronger than expected z Asian strategy z Continued sales growth +15% - Volvo Aero +31%, Buses
Slide 3: Net sales, Operating income, Earnings per share
Press Conference Q1 2006 2 Net sales (SEK bn) Europe North 52% (54) America Asia 32% (28) 8% (10) South Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 America Rest of 52,3 61,1 52,5 65,3 60,2 208,6 216,4 222,9 231,2 239,1 4% (4) the world 4% (4) Quarter 12 months rolling Operating income Earnings per share (SEK M) (
Slide 4: Trucks
Press Conference Q1 2006 3 Trucks First Quarter Net sales Operating income (SEK bn) (SEK M) Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 35,9 41,1 34,9 43,4 40,5 3077 3402 2496 2742 3539 141,6 147,8 151,5 155,4 159,9 8,6% 8,3% 7,1% 6,3% 8,7% 10532 11598 12287 11717 12179 Quarter 12 mo
Slide 5: Heavy Duty Truck Market – Europe
Press Conference Q1 2006 4 Heavy Duty Truck Market Europe (EU members + Switzerland and Norway) Units, Thousands (heavy trucks) 2006 forecast 300 Modification of definition 270-280,000 In 1991 (East Germany) and in 2000 (new member states) 277 250 256 230 200 188 171 179 150 122 100 116 50 Europe 0
Slide 6: Heavy Duty Truck Market – North America
Press Conference Q1 2006 5 Heavy Duty Truck Market North America Units, Thousands (heavy trucks) 2006 forecast 350 340-350,000 329 309 300 250 255 236 200 174 199 179 150 170 134 100 122 50 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 AB Volvo 2006-04-25
Slide 7: Staffan Jufors, President of Volvo Trucks
Press Conference Q1 2006 6 Staffan Jufors President of Volvo Trucks AB Volvo 2006-04-25
Slide 8: Agenda
Press Conference Q1 2006 7 Agenda •Strategy •Product Renewal •Order Intake •Market Shares •Focused Areas AB Volvo 2006-04-25
Slide 9: Transport Solutions
Press Conference Q1 2006 8 Transport Solutions Service Offerings Extended Offerings Aftermarket Offerings tail Core Re Products AB Volvo 2006-04-25
Slide 10: The Retail Strategy
Press Conference Q1 2006 9 The Retail Strategy Europe and Selected Markets Financing Service hours • Continuous direct customer relations • Widened customer offer Parts sales Service contracts • Improved retail competence • Better partner to private dealers Truck Shop Europe Used trucks AB Volvo 200
Slide 11: Product Renewal
Press Conference Q1 2006 10 Product Renewal AB Volvo 2006-04-25
Slide 12: Volvo Trucks Orders
Press Conference Q1 2006 11 Volvo Trucks Orders • Strong global economy • New products • Pre-buy 2000 2001 2002 2003 2004 2005 2006 AB Volvo 2006-04-25
Slide 13: Market Shares
Press Conference Q1 2006 12 Market Shares Europe North America 10,0 15,7 9,7 9,4 9,3 15,2 14,8 8,6 14,5 14,5 14,3 7,8 '01 '02 '03 '04 '05 'Mar '01 '02 '03 '04 '05 'Mar 06 06 AB Volvo 2006-04-25
Slide 14: Focused Areas
Press Conference Q1 2006 13 Focused Areas • Pricing • Cost • Supply Capacity AB Volvo 2006-04-25
Slide 15: Volvo Buses
Press Conference Q1 2006 14 Volvo Buses First Quarter Net sales Operating income (SEK bn) (SEK M) Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 32 160 144 134 131 3,2 4,2 3,9 5,3 4,2 1,0% 3,8% 3,7% 2,5% 3,1% 13,4 14,0 15,0 16,6 17,6 316 371 525 470 569 Quarter 12 months rolling Quarter
Slide 16: Volvo Buses – The new city bus in India
Press Conference Q1 2006 15 Volvo Buses The new city bus in India AB Volvo 2006-04-25
Slide 17: Volvo Construction Equipment
Press Conference Q1 2006 16 Volvo Construction Equipment First Quarter Net sales Operating income (SEK bn) (SEK M) Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 7,2 9,6 7,8 10,3 9,4 558 937 521 736 829 30,0 31,2 32,4 34,8 37,0 7,8% 9,8% 6,7% 7,1% 8,9% 2104 2290 2441 2752 3023 Quarter 1
Slide 18: Volvo Construction Equipment – New skid steer loaders
Press Conference Q1 2006 17 Volvo Construction Equipment New range of Skid steer loaders – 5 models AB Volvo 2006-04-25
Slide 19: Volvo Penta
Press Conference Q1 2006 18 Volvo Penta First Quarter Net sales Operating income (SEK bn) (SEK M) Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 2,4 2,6 2,3 2,4 2,7 206 302 230 205 222 9,3 9,3 9,5 9,8 10,1 8,6% 11,5% 9,9% 8,4% 8,2% 958 953 976 943 959 Quarter 12 months rolling Quarter M
Slide 20: Volvo Penta Product News
Press Conference Q1 2006 19 Volvo Penta Product News Docking with joystick AB Volvo 2006-04-25
Slide 21: Volvo Aero
Press Conference Q1 2006 20 Volvo Aero First Quarter Net sales Operating income (SEK bn) (SEK M) Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 1,6 1,8 2,0 2,1 2,2 210 168 239 219 206 7,0 6,9 7,2 7,5 8,1 12,8% 9,4% 12,0% 10,4% 9,5% 504 491 630 836 832 Quarter 12 months rolling Quarter M
Slide 22: Volvo Aero – Important GEnx milestone
Press Conference Q1 2006 21 Volvo Aero Important GEnx milestone AB Volvo 2006-04-25
Slide 23: Volvo Financial Services
Press Conference Q1 2006 22 Volvo Financial Services First Quarter New retail financing Operating income and return on equity (SEK bn) (SEK M) Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 7,1 8,8 7,9 9,3 7,8 587 483 484 479 571 30,3 30,9 31,4 33 33,8 13,9% 14,3% 15,4% 15,3% 14,1% Quar
Slide 24: Volvo Financial Services – First Quarter isolated
Press Conference Q1 2006 23 Volvo Financial Services First Quarter - isolated New financing Penetration on new financing 2% 8% 25% 49% Volvo Renault Volvo Volvo CE Mack Trucks Trucks Buses 16% 30% 22% 14% 8% 9% AB Volvo 2006-04-25
Slide 25: Volvo Group Summary
Press Conference Q1 2006 24 Volvo Group Summary z Continued good sales growth +15% z Operating income up 20% z Acquisition of 13% in Nissan Diesel, with an option for another 6% z In focus: - Transition into a new industrial and product structure. - Asian strategy AB Volvo 2006-04-25
Slide 26: Press Conference Q1 2006
Press Conference Q1 2006 25 AB Volvo 2006-04-25