Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — Investor Day (September 2012)
16 slides from Volvo Ab Class A's investor day presentation, September 2012
Slide 1: The Volvo Group Capital Market Day, September 2012
_ THE VOLVO GROUP capital market day September, 2012
Slide 2: Volvo Group Headquarters
Volvo Group Headquarters
Slide 3: Intense work during the first year to transform the Group
Intense work during the first year to transform the Group from to Business Areas & Business Units One Group Quarterly pace Weekly pace Brand by brand Brand portfolio Local processes Global processes Shared accountability within matrix Clear accountability and metrics Volvo Group Headquarters Capital
Slide 4: One year of preparations to have the base in place for execution 2013-2015
One year of preparations to have the base in place for execution 2013-2015 Revised corporate vision New financial targets New incentive program – aligned with financial targets New management team New organization – 450 managers appointed New process oriented workflow New corporate gov
Slide 5: Nine months of high management involvement to develop the future truck strategy
Nine months of high management involvement to develop the future truck strategy – to get it right and get buy-in Jan Feb Mar April May June Jul Aug Sept New Truck Executive Extended Truck management Management Team Executive Management Team in place INVOLVEMENT COMMITMENT ENGAGEMENT Volvo Group Head
Slide 6: Next step – new strategy developed to utilize the full potential
Next step – new strategy developed to utilize the full potential Drive organic revenue growth Improve profitability Volvo Group Headquarters Capital market day 2012 6
Slide 7: Key focus areas to support organic growth and profitability improvement
Key focus areas to support organic growth and profitability improvement Volvo Group Headquarters Capital market day 2012 7
Slide 8: Delivering our full potential
Group Trucks’ strategic objectives 2013-2015 Delivering our full potential Volvo Group Headquarters Capital market day 2012 8
Slide 9: Delivering our full potential: Drive revenue growth
Group Trucks’ strategic objectives 2013-2015 Delivering our full potential Drive revenue growth Volvo Group Headquarters Capital market day 2012 9
Slide 10: Delivering our full potential: Drive profitability
Group Trucks’ strategic objectives 2013-2015 Delivering our full potential 5. Build high performing Driveglobal profitability teams Volvo Group Headquarters Capital market day 2012 10
Slide 11: Targets on Trucks to secure profitability improvement
Targets on Trucks to secure profitability improvement Base – Group Trucks’ sales of SEK ~200 billion GROUP TRUCKS’ Expected impact Strategic objectives on Trucks’ Roadmap examples operating margin Increase vehicle gross profit margin ~2% points • Coordinated brand and product positioning per region
Slide 12: Targets to secure 3 percentage points on operating margin improvement for the Group
Targets to secure 3 percentage points on operating margin improvement for the Group Base – Group sales of SEK ~300 billion GROUP Expected impact Roadmap examples Strategic objectives on Group operating margin Trucks’ impact on Group ~4.0% points Business Areas: ~0.5% points Volvo CE, Buses, Volvo Pe
Slide 13: Execution with accountability and stringent follow-up
Execution with accountability and stringent follow-up Key focus Strategic Targets & Activity areas objectives Roadmaps Plans #5 #20 >100 >1,000 Monthly follow-up in management teams to ensure speed and execution Volvo Group Headquarters Capital market day 2012 13
Slide 14: Openness and full disclosure to secure employee understanding and involvement
Openness and full disclosure to secure employee understanding and involvement 120 top truck executives fully aligned and committed Roll-out starting Sep 25 to: - 80,000 employees - Shareholders Göteborg September 13-14, 2012 Volvo Group Headquarters Capital market day 2012 14
Slide 15: Volvo Group Headquarters Capital market day 2012
Volvo Group Headquarters Capital market day 2012 15
Slide 16: Q&A
VOLVO Q&A