Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — AB Volvo — Q1 2004 Earnings Presentation
15 slides from Volvo AB Class A's earnings presentation, Apr 23, 2004
Slide 1: First Quarter 2004 Conference Call
First Quarter 2004 Conference Call, April 23, 2004
Slide 2: Highlights
Conference Call Q1 2004 1 Highlights First Quarter In Focus Going Forward z Business environment improving globally: z Develop the industrial and commercial structure in China - Strong recovery in North America - Increasing demand in Western Europe z Buses - Strong development in growth markets z Up
Slide 3: Net sales, Operating income, Earnings per share
Conference Call Q1 2004 2 Net sales (SEK bn) Europe North 59% America Asia 23% 10% Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 South America Rest of 40.9 44.6 40.5 48.7 45.5 177.6 172.9 171.9 174.8 179.3 3% the world 5% Quarter 12 months rolling Operating income* Earnings per share (SEK M) (SEK) Q1 03 Q2 03 Q3 03
Slide 4: Consolidated Results
Conference Call Q1 2004 3 Consolidated Results First Quarter 2004 SEK M 2004 2003 Net Sales 45,489 40,931 Adjusted for currency +16% Gross income 9,447 7,617 20.8% 18.6% R&D expenses (1,779) (1,769) Selling expenses (4,248) (3,597) Administrative expenses (1,318) (1,304) Other op. Income & expenses
Slide 5: Development of cash conversion cycle
Conference Call Q1 2004 4 Volvo Group Development of cash conversion cycle SEK bn Days 40 90 80 Working capital 35 80 CCC - days 70 30 60 25 55 50 20 40 15 43 30 10 20 5 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2001 2002 2003 2004 AB Volvo 04-04-23
Slide 6: Trucks
Conference Call Q1 2004 5 Trucks First Quarter Net sales Operating income (SEK bn) (SEK M) Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 27.4 29.4 26.9 33.2 31.2 527 1023 944 1457 1476 119.6 116.4 114.9 117 120.8 1.9% 3.5% 3.5% 4.4% 4.7% Quarter 12 months rolling 2190 2730 3001 3951 49
Slide 7: Heavy Duty Truck Market: Western Europe
Conference Call Q1 2004 6 Heavy Duty Truck Market Western Europe Units, Thousands (heavy trucks) 300 Forecast: + 5-6% 250 200 150 100 50 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04E AB Volvo 04-04-23
Slide 8: Heavy Duty Truck Market: North America
Conference Call Q1 2004 7 Heavy Duty Truck Market North America Units, Thousands (heavy trucks) 350 300 Forecast 2004: 250 230-240,000 200 150 100 50 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 AB Volvo 04-04-23
Slide 9: Volvo Buses
Conference Call Q1 2004 8 Volvo Buses First Quarter Net sales Operating income* (SEK bn) (SEK M) Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 -83 -89 -93 -96 -47 3.0 3.1 2.8 3.1 2.5 -2.8% -2.9% -3.3% -3.1% -1.8% 13.8 12.8 12.7 12 11.6 -83 -223 -232 -361 -325 Quarter 12 months rolling
Slide 10: Volvo Construction Equipment
Conference Call Q1 2004 9 Volvo Construction Equipment First Quarter Net sales Operating income (SEK bn) (SEK M) Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 4.8 6.3 5.6 6.5 6.1 140 425 210 133 309 21.3 21.4 21.9 23.2 24.5 2.9% 6.8% 3.7% 2.0% 5.0% 677 638 728 908 1077 Quarter 12 month
Slide 11: Volvo Penta
Conference Call Q1 2004 10 Volvo Penta First Quarter Net sales Operating income (SEK bn) (SEK M) Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 159 212 153 171 188 1.9 2.0 1.8 1.9 2.2 8.3% 10.4% 8.5% 9.2% 8.6% 7.6 7.4 7.5 7.6 7.9 660 647 683 695 724 Quarter 12 months rolling Quarter Mar
Slide 12: Volvo Aero
Conference Call Q1 2004 11 Volvo Aero First Quarter Net sales Operating income (SEK bn) (SEK M) Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 2.2 1.9 1.8 2.1 1.6 -6 11 -2 -47 101 8.6 8.1 8 8 7.3 -0.3% 0.6% -0.1% -2.2% 6.5% -79 -108 -38 -44 63 Quarter 12 months rolling Quarter Margin 12
Slide 13: Volvo Financial Services
Conference Call Q1 2004 12 Volvo Financial Services First Quarter New retail financing Operating income and return on equity (SEK bn) (SEK M) Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 5.9 6.1 6.9 8.0 6.0 212 221 242 251 281 26.5 25.7 26.1 26.9 27.0 5.5% 6.6% 9.0% 9.8% 10.2% Quarter
Slide 14: Summary
Conference Call Q1 2004 13 Volvo Group Summary z Business environment improving globally z Continued top-line growth z Expansion in China z Up-turn management AB Volvo 04-04-23
Slide 15: Conference Call Q1 2004
Conference Call Q1 2004 14 AB Volvo 04-04-23