Volvo AB Class A · OMXSTO:VOLV_A

Volvo AB Class A — AB Volvo — Q4 2002 Earnings Presentation

25 slides from Volvo AB Class A's earnings presentation, Feb 7, 2003

  1. Slide 1: Fourth Quarter and Full Year 2002

    Fourth Quarter and Full Year 2002 Press Conference, February 7, 2003

  2. Slide 2: Highlights

    Press Conference Q4 2002 Highlights Fourth Quarter and Full Year In Focus Going Forward z Business environment - Low demand in N. America z Business Cycle Management - Continued downward trend in Europe z Cash flow z Strengthening the N. American Truck business - Successful Mack production transfer

  3. Slide 3: Sales by Market Area

    Press Conference Q4 2002 Sales by Market Area Fourth Quarter 2002 Fourth Quarter Full Year SEK M Split 2002 2001 Change 2002 2001 Change Western Europe 55% 25,272 25,702 -2% 92,331 93,147 -1% Eastern Europe 5% 2,382 2,429 -2% 7,437 6,383 17% North America 24% 10,800 12,454 -13% 50,206 54,630 -8% Sou

  4. Slide 4: Sales by Business Area

    Press Conference Q4 2002 Sales by Business Area Fourth Quarter 2002 Fourth Quarter Full Year SEK M Split 2002 2001 Change 2002 2001 Change Trucks 68% 31,133 32,580 -4% 118,752 116,568 2% Buses 8% 3,852 4,044 -5% 14,035 16,675 -16% Construction Equipm. 12% 5,287 4,992 6% 21,012 21,135 -1% Volvo Penta

  5. Slide 5: Operating Income by Business Area

    Press Conference Q4 2002 Operating Income by Business Area Fourth Quarter 2002 Fourth Quarter Full Year SEK M 2002 2001 2002 2001 Trucks 507 591 1,189 1,040 1) Buses 33 (231) (94) (524) Construction Equipm. (47) 136 406 891 Volvo Penta 159 128 647 658 Volvo Aero (41) 89 5 653 Financial Services 129

  6. Slide 6: Development of Cash Conversion Cycle

    Press Conference Q4 2002 Development of Cash Conversion Cycle 2001-2002, excl. Sales Finance 100 89 80 66 Inventories 60 Days 54 45 46 Customer Receivables 40 33 Trade Payables 20 0 01Q1 01Q2 01Q3 01Q4 02Q2 02Q3 02Q4 AB Volvo 2003-02-07, Slide 5

  7. Slide 7: Cash Flow Development

    Press Conference Q4 2002 Cash Flow Development Fourth Quarter 2002 6 5.0 5 Operating cash flow* 4 3 2 b SEK 1 0 -1 -2 -3 -4 Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- 2000 2000 2000 2000 2001 2001 2001 2001 2002 2002 2002 2002 * Cash-flow after net investments excluding: Investments in shares,

  8. Slide 8: Trucks

    Press Conference Q4 2002 Trucks Fourth Quarter Fourth Quarter Full Year SEK M 2002 2001 Change 2002 Change Volume (units) 42,515 42,085 1% 157,133 1% Sales 31,133 32,580 -4% 118,752 2% Operating income 507 591 -14% 1189 14% 1) Operating margin % 1.6% 1.8% (0.2) 1.0% 0.1 Highlights In Focus z High de

  9. Slide 9: Two Years of Truck Integration

    Press Conference Q4 2002 Two Years of Truck Integration Synergies on Plan – Consolidation of diesel engine program – Sharing of vehicle architecture – Brand strategy in place – Purchasing gains – Expansion of Customer Finance – Industrial restructuring – Dealer optimization in North America AB Volvo

  10. Slide 10: Trucks

    Press Conference Q4 2002 Volvo Trucks AB Volvo 2003-02-07, Slide 9

  11. Slide 11: Heavy Duty Truck Market – North America

    Press Conference Q4 2002 Heavy Duty Truck Market North America Units, Thousands (heavy trucks) 300 250 200 150 100 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 AB Volvo 2003-02-07, Slide 10

  12. Slide 12: Heavy Duty Truck Market – Western Europe

    Press Conference Q4 2002 Heavy Duty Truck Market Western Europe Units, Thousands (heavy trucks) 250 225 200 175 150 125 100 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 AB Volvo 2003-02-07, Slide 11

  13. Slide 13: Buses

    Press Conference Q4 2002 Volvo Buses Fourth Quarter Fourth Quarter Full Year SEK M 2002 2001 Change 2002 Change Volume (units) 2,752 2,791 -1% 9,059 -9% Sales 3,852 4,044 -5% 14,035 -16% Operating income 33 (231) n.a. (94) n.a. Operating margin % 0.9% -5.7% 6.6 -0.7% 2.4 Highlights In Focus z Contin

  14. Slide 14: Buses: Preferred supplier in Mexico

    Press Conference Q4 2002 Volvo Buses Preferred supplier for two of the major intercity coach operators in Mexico AB Volvo 2003-02-07, Slide 13

  15. Slide 15: Construction Equipment

    Press Conference Q4 2002 Volvo Construction Equipment Fourth Quarter Fourth Quarter Full Year SEK M 2002 2001 Change 2002 Change Sales 5,287 4,992 6% 21,012 -1% Operating income (47) 136 n.a 406 -54% Operating margin % -0.9% 2.7% (3.6) 1.9% (2.3) Highlights In Focus z Sales up 6% due to increased ma

  16. Slide 16: Construction Equipment Product Range

    Press Conference Q4 2002 Volvo Construction Equipment Product Range Articulated Hauler Wheel Loader Excavator Motor Grader Compact Wheel Loader Skidsteer Loader Compaction Telescopic Handler Compact Excavator Backhoe Loader AB Volvo 2003-02-07, Slide 15

  17. Slide 17: The Volvo Skidsteer Loader

    Press Conference Q4 2002 The Volvo Skidsteer Loader AB Volvo 2003-02-07, Slide 16

  18. Slide 18: Volvo Penta

    Press Conference Q4 2002 Volvo Penta Fourth Quarter Fourth Quarter Full Year SEK M 2002 2001 Change 2002 Change Sales 1,723 1,894 -9% 7,669 4% Operating income 159 128 na 1) 647 na 1) Operating margin % 9.2% 6.8% na 1) 8.4% na 1) Highlights In Focus z Strengthened market shares z Product renewal z G

  19. Slide 19: Four-blade Folding Propeller

    Press Conference Q4 2002 Four-blade Folding Propeller AB Volvo 2003-02-07, Slide 18

  20. Slide 20: Volvo Aero

    Press Conference Q4 2002 Volvo Aero Fourth Quarter Fourth Quarter Full Year SEK M 2002 2001 Change 2002 Change Sales 2,053 3,123 -34% 8,837 -25% Operating income (41) 89 n.a. 5 -99% Operating margin % -2.0% 2.8% (4.8) 0.1% (5.4) Highlights In Focus z Air traffic lower than 2000. No recovery in sight

  21. Slide 21: Volvo Aero: Agreement with Corsair

    Press Conference Q4 2002 Volvo Aero Agreement with Corsair covering overhaul of engines, worth more than SEK 400 M AB Volvo 2003-02-07, Slide 20

  22. Slide 22: Volvo Financial Services

    Press Conference Q4 2002 Volvo Financial Services Fourth Quarter Fourth Quarter Full Year SEK M 2002 2001 Change 2002 Change Operating income 129 80 61% 490 51% ROE % 1) 4.8% 4.2% 0.6% 4.8% 0.6 Assets, MSEK 69,364 73,528 -5.7% 69,364 -5.7% Equity ratio 10.8% 10.3% 0.5 10.8% 0.5 Highlights In Focus z

  23. Slide 23: Increasing Diversification

    Press Conference Q4 2002 Increasing Diversification Volvo Financial Services Volume 2001 Volume 2002 Mack Trucks Aero, Penta & Other Renault Trucks Mack Trucks Volvo Buses Renault Trucks Volvo CE Volvo Trucks Volvo Trucks Volvo Buses Volvo CE AB Volvo 2003-02-07, Slide 22

  24. Slide 24: Group Summary

    Press Conference Q4 2002 Volvo Group Summary z 2002 - a challenging year - Difficult business climate - Major product launches / production changeovers - Structural changes z Strong cash flow and EPS development z Proposed dividend: SEK 8.00 AB Volvo 2003-02-07, Slide 23

  25. Slide 25: Press Conference Q4 2002

    Press Conference Q4 2002 AB Volvo 2003-02-07, Slide 24

AB Volvo — Q4 2002 Earnings Presentation on 6ix