Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — AB Volvo — Q4 2023 Earnings Presentation
31 slides from Volvo Ab Class A's earnings presentation, Jan 26, 2024
Slide 1: Fourth Quarter 2023
FOURTH QUARTER 2023 Martin Lundstedt President and CEO
Slide 2: Fourth quarter highlights
Volvo Group Fourth quarter highlights * Net sales increased to SEK 148.1 bn, an increase of 8% adjusted for FX * Adjusted operating income reached SEK 18.4 bn (12.2), corresponding to a margin of 12.4% (9.1) * Operating cash flow in Industrial Operations amounted to SEK 22.7 bn (18.9) * Net cash pos
Slide 3: Volume development
Volvo Group Volume development Volvo Group Fourth quarter 2023 votLuvaod TRUCK DELIVERIES == 12months 246' units 4.4% ] 62.8 65.6 60.4 Q4 ai Q2 Q@3 G4 Qt Q2 Q@3 a4 2021 2022 2023 MACHINE DELIVERIES == 12 months 60' units -27% 2 20.9 15.4 Q4 Qi Q@2 G3 @4 Qt @2 Q3 a4 2021 2022 2023 2024-01-26
Slide 4: Electrification progress
Volvo Group Electrification progress Including Designwerk and Nova Bus Volvo Group Fourth quarter 2023 votLuvaod ORDER INTAKE, FULLY ELECTRIC VEHICLES === 12 months 5,895 units 1,481 Q4 Qi Q@2 Q@3 G4 @t @2 Q@3 a4 2021 2022 2023 DELIVERIES, FULLY ELECTRIC VEHICLES === 12 months 4,996 units 1,741 886
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Slide 7: Group news
votLuvaod Group news * Volvo Group to acquire the battery business from Proterra * First step in creating a battery value chain in North America and adds to Volvo Group battery capabilities * Option agreement to divest Arquus Volvo Group Fourth quarter 2023 2024-01-26
Slide 8: Trucks news
votLuvaod Trucks news * Volvo Trucks in North America launches an all-new Volvo VNL heavy-duty truck range Volvo Group Fourth quarter 2023 2024-01-26 8
Slide 9: Slide 9
Slide 10: Trucks news
votLuvaod Trucks news * Volvo FH electric awarded Truck of the Year 2024 in Europe * Volvo Trucks starts electric heavy-duty truck sales in Latin America * New designs and enhanced safety features for the Renault Trucks and Volvo Trucks urban ranges Volvo Group Fourth quarter 2023 2024-01-26 "
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Slide 12: Trucks: quarterly orders and deliveries
Trucks Quarterly orders -9% and deliveries +4% NORTH AMERICA s==Orders «===Deliveries Q4 Qi Q@2 Q8 Q4 Qt Q2 8 4 2021 2022 2023 Orders +19% Deliveries -3% SOUTH AMERICA FYrQ— ==Orders ===Deliveries votLuvaod EUROPE Orders «=mDeliveries Q@4 Qi Q@2 Q@3 Q4 Qt @2 @ a4 2021 2022 2023 Orders -24% AFRICA AN
Slide 13: IHS Markit content notice
Includes content supplied by IHS Markit . Copyright © IHS Markit (2022). All rights reserved.
Slide 14: Construction Equipment news
votLuvaod Construction Equipment news * Volvo Construction Equipment will divest ABG Paver Business * Launch of several electric models in the Indian market at ExCon trade show Volvo Group Fourth quarter 2023 2024-01-26 6
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Slide 16: Construction Equipment: quarterly orders and deliveries
votLuvaod Construction Equipment Quarterly orders -26% and deliveries -27% NORTH AMERICA EUROPE Orders =emDeliveries Orders Deliveries Q4 QI G2 G3 Q4 a Q2 a3 a4 Q4 Qi Q2 Q3 G4 QI Q2 3 a4 2021 2022 2023 © 2021 2022 2023 Orders +173% Orders -9% Deliveries +0% Deliveries -4% ASIA SOUTH AMERICA AFRICA A
Slide 17: Buses
votLuvaod Buses * Orders increased by 12% * Deliveries decreased by 15% * Volvo Buses secured the first order for electric city buses with bodies built by MCV * Prevost takes its largest order to date in the US Volvo Group Fourth quarter 2023 2024-01-26 18
Slide 18: Volvo Penta
Volvo Penta * Orders increased by 1% * Deliveries decreased by 8% * Volvo Penta provided sub-system to battery energy storage solutions with TechnoGen in Italy Volvo Group Fourth quarter 2023 votLuvaod 2024-01-26 19
Slide 19: Financial Services
votLuvaod Financial Services NEW RETAIL FINANCING & PENETRATION RATE* SEK bn == Penetration rate 12 months 27 % * Record business volume * Stable portfolio performance 34.5 * Usage-based leasing product for Mack MD 24.9 Electric models Q4 Qt @2 @3 G4 Ql Q2 a3 a4 2021 2022 2023 *All figures exclude a
Slide 20: Fourth Quarter 2023: Chief Financial Officer
voLuvoe FOURTH QUARTER 2023 Mats Backman Chief Financial Officer Volve Group Fourth quarter 2023 2024-01-26
Slide 21: Net sales per market
votLuvaod Volvo Group Net sales per market NET SALES SEK bn Currency SEK +2.6 bn 330 18 148.1 15° 23 Q4 2022 Europe North South Asia Africaand Q4 2023 America America Oceania Volvo Group Fourth quarter 2023 2024-01-26 22
Slide 22: Adjusted operating income contributors
votLuvaod Volvo Group Adjusted operating income contributors ADJUSTED OPERATING INCOME SEK bn Currency SEK +1.1 bn ~ + Price realization 8.2 0.2 — rr 18.4 -0.3 08 04 “O6 . - Strike impact 12,2 — Ay - JV performance Q4 Gross Cash NetR&D Selling Admin Other Q4 2022 Income R&D Cap./Amo. 2023 Volvo Grou
Slide 23: Cash flow, financial position and ROCE in Industrial Operations
Volvo Group votLuvaod Cash flow, financial position and ROCE in Industrial Operations OPERATING CASH FLOW SEK bn == 12 months SEK 45.8 bn 23. 22,7 18,9 | | lJ a lJ a | Q4 Qi @2 Q3 G4 Qi Q@2 @3 a4 2021 2022 2023 Volvo Group Fourth quarter 2023 ROCE FINANCIAL POSITION % 12 months (Excl. pensions and l
Slide 24: Trucks: net sales and adjusted operating income
Trucks votLuvaod Net sales and adjusted operating income NET SALES ==12 months SEK 373 bn SEK bn +14% (excl. FX +12%) f ——7F 99.9 87. 67.2 a4 ai @2 a8 a at a2 a a4 2021 2022 2023 Volvo Group Fourth quarter 2023 ADJUSTED OPERATING INCOME SEK bn vt + Price realization 13.7 + Volume wy - Strike impact
Slide 25: Construction Equipment: net sales and adjusted operating income
votLuvaod Construction Equipment Net sales and adjusted operating income ADJUSTED OPERATING INCOME wer on TES 12 months SEK 705 bn awedias OPERATING INCOME SEK bn (margin)* —= 12 months 16.2% Currency SEK 0.0 bn 4% (excl. FX -4%) : 3.3 7 ' 3.1 + Brand & market mix 26.6 + Price realization _ 7 3.3 21
Slide 26: Buses: net sales and adjusted operating income
Buses votLuvaod Net sales and adjusted operating income NET SALES == 12 months SEK 22 bn SEK bn +10% (excl. FX +8%) f 1 7.3 6.7 4.2 Q4 Qi Q2 @3 G4 Qi @2 Q3 a4 2021 2022 2023 All numbers restated to exclude Nova Bus which is now included in segment ‘Group Functions and other’ Volvo Group Fourth quart
Slide 27: Volvo Penta: net sales and adjusted operating income
Volvo Penta votLuvaod Net sales and adjusted operating income NETSALES ==12 months SEK 21 bn SEK bn +4% (excl. Fx +2%) 5.0 4.8 3.6 Q4 Qi Q2 Q3 @4 Qi Q2 Q3 a4 2021 2022 2023 Volvo Group Fourth quarter 2023 ADJUSTED OPERATING INCOME SEKM 468 365 ~ + Price realization - Material costs - Production cost
Slide 28: Financial Services: credit portfolio and profitability
Financial Services votLuvaod Credit portfolio and profitability CREDIT PORTFOLIO & ROE* SEKbn ROE 12 months 13.9% 254 215 166 Q4 Q1 Q@2 @3 @Q4 Qt Q2 Q3 Q4 2021 2022 2023 Volvo Group Fourth quarter 2023 ADJUSTED OPERATING INCOME* SEKM 1005 834 ™ Portfolio growth JL Spread compression Q4 a4 2022 2023
Slide 29: Full year 2023 highlights
votLuvaod Volvo Group Full year 2023 highlights Sales growth to SEK 553 bn — Vehicle sales growth + 17% — Service sales growth +16% Adj. operating income growth + 54% to SEK 78 bn Operating cash flow (lO) +30% to SEK 46 bn EPS +52% to 24.50 SEK ROCE +9ppt to 37% Proposed ordinary dividend of SEK 7.5
Slide 30: Save the date: Capital Markets Day November 2024
vVotuwvo Save the date CAPITAL MARKETS DAY 14 NOVEMBER 2024 New River Valley, Virginia
Slide 31: Volvo
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