Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — AB Volvo — Shareholder Meeting (2013)
16 slides from Volvo Ab Class A's shareholder meeting presentation, 2013
Slide 1: Volvo Group Årsstämma 2013
1VOLVO GROUP ÅRSSTÄMMA 2013 AB VOLVO
Slide 2: We have the products but not world class efficiency
We have the products but not world class efficiency Structured brand portfolio HEADING FOR THE CUSTOMER Competitive product portfolio New process-driven HEADING FOR EFFICIENCY organization AB VOLVO ÅRSSTÄMMA 2013
Slide 3: GROUP ÅRSSTÄMMA 2013 AB VOLVO 3 VOLVO
3VOLVO GROUP ÅRSSTÄMMA 2013 AB VOLVO
Slide 4: GROUP ÅRSSTÄMMA 2013 AB VOLVO 4 VOLVO
4VOLVO GROUP ÅRSSTÄMMA 2013 AB VOLVO
Slide 5: Group Trucks strategic objectives 2013-2015 communicated internally and externally
Group Trucks strategic objectives 2013-2015 communicated internally and externally 5VOLVO GROUP ÅRSSTÄMMA 2013 AB VOLVO
Slide 6: Financial summary of Strategy 2013-2015
Financial summary of Strategy 2013-2015 GROUP TRUCKS GROUP SEK ~200 bn SEK ~300 bn GROUP TRUCKS’ Expected GROUP Expected impact Strategic objectives impact on Strategic objectives on Group Trucks’ operating margin operating margin 1.1 Increase vehicle gross profit ~2% points Trucks’ impact on Group
Slide 7: Good traction to improve gross profit margin
Good traction to improve gross profit margin ACTIVITIES • Further improve gross profit margin improvement on new Volvo Trucks range realized • Revitalize and regain position for Renault Trucks • Increase captive components in North America • Implement common sales process, including common CRM syste
Slide 8: Several decisions taken and activities initiated to reduce product cost
Several decisions taken and activities initiated to reduce product cost ACTIVITIES Structural Operational • EMEA industrial footprint • Productivity – lift the laggards • Japan right-sizing • Quality – design and manufacturing • Parts distribution optimization • R&D efforts to reduce product cost •
Slide 9: Efficiency efforts progressing in parallel with massive product launches
Efficiency efforts progressing in parallell with massive product launches ACTIVITIES • Optimize activity level related to product renewal • Strengthen retail excellence in Japan • Reduce process & IT costs • Develop flexibility in manpower/resource management • Optimize distribution and support func
Slide 10: Strengthen retail expertise and service culture
Strengthen retail expertise and service culture ACTIVITIES • Increase penetration of service agreements • Selectively implement service network – higher population/workshop • Strengthen workshop productivity & efficiency • Capture aftermarket business also on older trucks SPECIAL ATTENTION ON • Rein
Slide 11: Cash R&D is declining
Cash R&D is declining ACTIVITIES • Site structure optimization • Improve methods and processes to reduce project costs • Capitalize on common architecture and shared technology (CAST) for future development and balance • Project portfolio prioritization SPECIAL ATTENTION ON • Reduce product plan sco
Slide 12: Continued high running cost to phase-out old systems
Continued high running cost to phase-out old systems ACTIVITIES • Implement Group-wide solutions by firm application portfolio management • Clean-up portfolios to reduce cost of ownership • Increase efficiency in projects to free up investment capacity by firm project portfolio management • Standard
Slide 13: Anticipated timing of financial effect and restructuring charges
Anticipated timing of financial effect and restructuring charges related to implementation of strategy 2013-2015 Group total Accumulated financial effect ambition Accumulated restructuring charges excl. restructuring charges (estimated) SEK bn SEK bn 9 9 Industrial Staff GP-margin + Staff reduction
Slide 14: Volvo Group Attitude Survey
Volvo Group Attitude Survey + Good understanding of Strategic Objectives and direction + Improved accountability and follow-up - Still need to improve process culture and coordination 14AB VOLVO ÅRSSTÄMMA 2013
Slide 15: Need to catch up in cost efficiency!
Need to catch up in cost efficiency! VOLVO 15 GROUP ÅRSSTÄMMA 2013 AB VOLVO
Slide 16: AB Volvo Årsstämma 2013
this is the real game changer