Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — Q1 2021 Earnings Presentation
27 slides from Volvo Ab Class A's earnings presentation, 2021
Slide 1: Volvo Group First Quarter 2021
VOLVO VOLVO GROUP FIRST QUARTER 2021 Martin Lundstedt, President and CEO
Slide 2: First Quarter Highlights
Volvo Group FIRST QUARTER HIGHLIGHTS - Net sales increased by 3% (+13% ex. FX) - Adjusted operating income SEK 11.8 bn (7.1) corresponding to a margin of 12.6% (7.8) * Operating cash flow in the Industrial operations SEK 5.7 bn (-4.1) » ROCE 17.1% (23.9%) - Several strategic partnership established
Slide 3: Volume Development in the First Quarter
Volvo Group VOLUME DEVELOPMENT IN THE FIRST QUARTER TRUCK DELIVERIES k units HD/MD coe DM ‘= 12 months 158 k units +16% 53.0 474 Qi Q@2 Q@3 @4 Qi @2 Q@3 Q@4 ai Volvo Group Fist Quarter 2021 3 20240422 MACHINE DELIVERIES k units = 12 months 105 k units 20.2 +53% Qi Q@2 Q@3 Q4 ai Q2 Q@3 Q4 ai
Slide 4: Electrification Progress
Volvo Group ELECTRIFICATION PROGRESS Order Intake, fully electric vehicles, Q1 units HD/MD/LD Group Trucks 200 Volvo CE 78 Volvo Bus 26 Volvo Penta 4 Volvo Group, Total 308 Volvo Group Fist Quarter 2021 4 20240422 Deliveries, fully electric vehicles, Q1 units HD/MD/LD aE 4 om o 22, 9 a Fully Group V
Slide 5: Service Sales Development
Volvo Group SERVICE SALES DEVELOPMENT SERVICE SALES (incl. Financial Services) SEKbn «= 12 months SEK 91.6 bn 6% +5% excl. FX 244 23.5 Volvo Group Fist Quarter 2021 5 20240422 ai Q2 Q@3 Q4 Qi @2 Q3 @4 ai Re ro oH r : iil Wit
Slide 6: Trucks
Trucks
Slide 7: Trucks: Market Environment
Trucks MARKET ENVIRONMENT NORTH AMERICA up 400 300 - 200 - ae 100 2020: 235' Forecast 2021: 290" ) 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 2021 > 2020: 67" 125 Forecast 2021: 95° (00 01 02:03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 2021 Volvo Group Fist Quarter 2021 7 202
Slide 8: HD/MD: Quarterly Orders and Deliveries
Trucks HD/MD: QUARTERLY ORDERS 126% AND DELIVERIES 16% NORTH AMERICA Orders Ql @2 @3 Q4 QI @2 Q3 Q4 Qi Orders +369% Deliveries +22% == Deliveries “= | eS .) : “= EUROPE sole YSN Ls Orders «=m Deliveries Q1 Q2 Q3 Q4 @1 Q@2 Q3 Q4 al SOUTH AMERICA Orders _s==Deliveries Q1 Q2 Q@3 Q4 Qi Q2 Q3 Q4 ai Order
Slide 9: Trucks: Market Shares
Trucks MARKET SHARES NORTH AMERICA EUROPE (ev29) YTD Mar YIDFeb Total Fully electric 33.0 WAATA 9.1 20.0 9.1 9.0 én 0 nine ae Volvo Renault Volvo Renault BRAZIL 26.0 SOUTH AFRICA AUSTRALIA YTD Mar YTD Mar YTD Mar 19.017.8 17.0 17.6 1.5117 | Volvo a HD% | 2020 [ij 2021 Volvo Group Fist Quarter 2021 9
Slide 10: Driving Industry Electrification
Trucks / DRIVING INDUSTRY ELECTRIFICATION - Volvo Trucks’ and Renault Trucks’ offerings in the next two years could electrify close to half of truck transports in Europe - Volvo Group and Daimler Truck AG completed the creation of fuel-cell joint venture: cellcentric - Volvo Group partners with Auro
Slide 11: Construction Equipment
Construction Equipment »«
Slide 12: Construction Equipment: Market Environment
Construction Equipment MARKET ENVIRONMENT NORTH AMERICA 200 150 6 ~~ wo} £_d--- 50 Forecast 2021: +5% to +15% 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 EUROPE 250 Forecast 2021: 0% to 10% “01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 2021 SOUTH AMERICA 100 7 Forecast
Slide 13: Quarterly Orders and Deliveries
Construction Equipment QUARTERLY ORDERS 73% AND DELIVERIES 53% NORTH AMERICA Ana Z Orders == Deliveries Qi Q2 Q3 Q4 Qi Q@2 Q3 a4 al Orders = +99% Deliveries +12% EUROPE —SSns~r~_Y” Orders «=™Deliveries Qi Q2 Q3 Q4 ai Q2 Q3 a4 at Orders +87% Deliveries +30% SOUTH AMERICA —__— Orders _«==Deliveries AF
Slide 14: Buses
Buses - Orders decreased by 68% - Deliveries decreased by 26% - Largest order to date for the new Volvo 7900 S-Charge with hybrid technology Volvo Group Fist Quarter 2021 14 20240422
Slide 15: Penta
Volvo Penta - Orders increased by 27% - Deliveries increased by 7% - Volvo Penta and TICO co-develops fully-electric terminal truck prototypes TICO - the largest terminal tractor fleet owner Frat Quant 2021 and operator in North America 15 20210422 Volvo Group
Slide 16: Financial Services
Financial Services PENETRATION RATE, % 12 months moving - Record new business volume for a Q1 39 - Continued penetration improvement ~ 31 29 29 26 19 () 2020 Hl 2021 - Stable portfolio performance 25 Trucks Volvo CE Buses Volvo Group Volvo Group Fist Quarter 2021 16 20240422
Slide 17: Volvo Group First Quarter 2021 - CFO
VOLVO VOLVO GROUP FIRST QUARTER 2021 Jan Ytterberg, CFO
Slide 18: Net Sales per Market
Volvo Group NET SALES PER MARKET NET SALES > Currency SEK-9.7 bn SEK bn | | | -0.2 91.4 cho Ro Q12020 Europe North South Asia Africa Q12021 America America and Oceania Volvo Group Fist Quarter 2021 18 20240422
Slide 19: Adjusted Operating Income Contributors
Volvo Group ADJUSTED OPERATING INCOME CONTRIBUTORS ADJUSTED OPERATING INCOME* > currency SEK-1.1 bn SEKM 721 (11,821 + Vehicle volumes + Industrial capacity utilization + Cost execution + Service earnings 1,225 161 781-263 2,056 —_——— 740 Q12020 Gross Cash NetR&D Selling Admin Other Q12021 Income R&
Slide 20: Cash Flow and Financial Position
Volvo Group — Industrial Operations CASH FLOW AND FINANCIAL POSITION OPERATING CASH FLOW OPERATING CASH FLOW SEK bn = 12 months SEK 28.3 bn SEK bn Working capital (-3.2 bn) -—t—_ NA -49 t aaa | i -6.4 i | 57 3.9 5.7 2.8 m= |i Operating Receiv. Inventory Payab. ces as iewestm. Otter Opestiog “44 heen
Slide 21: Trucks: Net Sales and Adjusted Operating Income
Trucks NET SALES AND ADJUSTED OPERATING INCOME NET SALES 12 months SEK 208.6 bn ADJUSTED OPERATING INCOME* ADJUSTED OPERATING INCOME SEK bn SEK bn SEK bn (margin)* = 12 months 10.0% H% Currency SEK -0.4 bn CH al) + Vehicle volumes + Cost execution 7.5 7.5 + Industrial capacity utilization 8. (12.8%)
Slide 22: Construction Equipment: Net Sales and Adjusted Operating Income
Construction Equipment NET SALES AND ADJUSTED OPERATING INCOME NET SALES SEK bn 24,2 = 12 months SEK 86.0 bn 20.1 +23% (excl. FX +34%) 24.7 Q1 Q2 Q3 Q4 Q1 Q@2 Q@3 a4 al Volvo Group Fist Quarter 2021 22 20240422 ADJUSTED OPERATING INCOME* SEK bn ADJUSTED OPERATING INCOME SEK bn (margin)* = 12 months
Slide 23: Buses: Net Sales and Adjusted Operating Income
Buses NET SALES AND ADJUSTED OPERATING INCOME NET SALES ADJUSTED OPERATING INCOME* ADJUSTED OPERATING INCOME 12 months SEK 18.2 bn SEKM SEK M (margin)* SEK bn - Amarsio} = 12 months -2.1% Currency SEK +34 M -31% (excl. FX -24%) + Cost execution 294 “129 1 (4.3%) 8 5.2 - Vehicle volumes one - Industr
Slide 24: Penta: Net Sales and Adjusted Operating Income
Volvo Penta NET SALES AND ADJUSTED OPERATING INCOME NET SALES ADJUSTED OPERATING INCOME* ADJUSTED OPERATING INCOME SEK bn = 12 months SEK 12.0 bn SEKM SEK M (margin)* = 12 months 13.2% +2% pre Currency SEK -99 M (excl. FX +9%) + Service earnings 509 + Cost execution + Engine volumes ] - Mix | Q1 Q2
Slide 25: Credit Portfolio and Profitability
Financial Services CREDIT PORTFOLIO AND PROFITABILITY NEW RETAIL FINANCING ADJUSTED OPERATING INCOME* SEK bn SEKM = 12 months SEK 74.8 bn = 12 months SEK 1,683 M Currency SEK -115 M 18.2 17.5 15.9 Q1 Q2 Q3 Q4 QI Q2 Q3 Q4 al Q1 Q2 Q3 Q4 Q1 G2 Q@3 a4 ai * For information on adjustments, see note 7 in
Slide 26: First Quarter Highlights
Volvo Group FIRST QUARTER HIGHLIGHTS - Net sales increased by 3% (+13% ex. FX) - Adjusted operating income SEK 11.8 bn (7.1) corresponding to a margin of 12.6% (7.8) * Operating cash flow in the Industrial operations SEK 5.7 bn (-4.1) » ROCE 17.1% (23.9%) - Several strategic partnership established
Slide 27: Volvo Group Capital Markets Day November 1, 2021
VOLVO VOLVO GROUP Volvo Group Capital Markets Day November 11, 2021