Volvo Car Ab Class B · OMXSTO:VOLCAR_B
Volvo Car Ab Class B — Q3 2023 Earnings Presentation
23 slides from Volvo Car Ab Class B's earnings presentation, Oct 26, 2023
Slide 1: Q3 2023 Financial Results
Q3 2023 FINANCIAL RESULTS Jim Rowan, President & CEO Johan Ekdahl, CFO
Slide 2: Q3 – Momentum continues while performing and transforming
Q3 – Momentum continues while performing and transforming • Share of fully electric cars at 13% vs 7% in Q3 2022, with sales up 111% • Improved margins on fully electric cars at 9% vs 3% in Q2 • Retail sales up 22% vs Q3, 2022 • Production volumes up 16% vs Q3, 2022 • Continued solid underlying EBIT
Slide 3: Q3 - Key financials
Q3 - Key financials Retail sales Revenue EBIT / margin (k UNITS) (bn SEK) (bn SEK/%) 6.1 +22% +16% 167 92 4.5 138 79 3.5 2.1 2.6% 4.4% 4.8% 6.7% Q3 Q3 Q3 Q3 Q3 Q3 2022 Q3 Q3 2023 2022 2023 2022 2023 2022 excl. JV 2023 excl. JV & & associates associates Volvo Car Group Results Presentation Q3 2023
Slide 4: Fewer headwinds – tracking towards mid-decade business ambitions
Fewer headwinds – tracking towards mid-decade business ambitions 50% FULLY ELECTRIC SALES 1.2M 8-10% 40% EBIT CO2 REDUCTION UNITS MARGIN PER CAR RUN RATE 50% ONLINE SALES Volvo Car Group Results Presentation Q3 2023
Slide 5: 3 new BEVs soon on the roads while share of BEVs temporarily lower
3 new BEVs soon on the roads while share of BEVs temporarily lower RECHARGE % OF TOTAL VOLUME 41 41 CO2 reduction (tons/car) 39 60 55 54 34 34 34 52 50 31 50 23 23 44 25 24 26 25 23 40 21 33 28 26 24 30 ambition 18 23 21 22 20 18 18 16 13 10 6 8 7 7 2 3 4 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019
Slide 6: Share of fully electric and plug-in hybrid cars in Q3
SHARE OF FULLY ELECTRIC AND PLUG-IN HYBRID CARS IN Q3 Indonesia, Brazil, Uruguay, Thailand, Ireland 100% Norway 99% Denmark 97% Finland 94% Portugal, Iceland, Belgium 87% Netherlands, Greece 82% Mauritius 80% Switzerland, Sweden 74% France 72% Costa Rica 71% Malaysia 68% Q3 2023 Volvo Car Group Resu
Slide 7: Share of fully electric cars in Q3
SHARE OF FULLY ELECTRIC CARS IN Q3 Norway 74% Costa Rica 67% Iceland 64% Denmark 60% Thailand 50% Netherlands 48% Singapore 47% Indonesia 45% Switzerland, Australia 38% Austria 33% Mauritius, Belgium 30% India 29% Sweden 27% Q3 2023 Volvo Car Group Results Presentation Q3 2023
Slide 8: Q3 Financial Update
Q3 FINANCIAL UPDATE Volvo Car Group Results Presentation Q3 2023
Slide 9: Q3 – Key financials
Q3 – Key financials Retail sales Revenue EBIT / margin Cash flow (k UNITS) (bn SEK) (bn SEK/%) from operating and investing activities (bn SEK) 6.1 +22% +16% 167 92 4.5 138 79 3.5 3 2.1 2 2.6% 4.4% 4.8% 6.7% Q3 Q3 Q3 Q3 Q3 Q3 2022 Q3 Q3 2023 Q3 Q3 2022 2023 2022 2023 2022 excl. JV 2023 excl. JV 2022
Slide 10: Continued solid revenue growth
Continued solid revenue growth REVENUE BRIDGE (BN SEK) +16% 2.2 92.0 2.3 8.9 -0.2 + Volume -0.4 79.3 + Foreign Exchange + Sales of parts & accessories - Polestar contract manufacturing (volumes) - Mix & price normalisation Revenue Volume Sales mix Foreign JV contract Other1 Revenue 2022 Q3 and prici
Slide 11: Solid underlying EBIT
Solid underlying EBIT EBIT BRIDGE (BN SEK) BN SEK 2.4 BN SEK 2.6 + Volume 2.4 0.4 6.1 + Parts & Accessories 0.3 + Foreign exchange rates -0.5 4.5 + Raw materials 1.5 3.5 -1.7 +Freights + Spot-buys 2.1 2.6% 4.4% 6.7% 4.8% - Higher BEV share - Mix & price normalisation EBIT 2022 Q3 JV & EBIT 2022 Volu
Slide 12: BEV margins
BEV margins 2023 2023 2022 Q3 Q2 FY BEV Non-BEV BEV Non-BEV BEV Non-BEV Retail Deliveries (k units) 21 146 29 150 67 548 Revenue per Car (k SEK/unit) 1) 494 433 430 417 449 415 Gross Income per Car (k SEK/unit) 1) 46 97 11 89 37 89 Gross Margin (%) 1) 3) 9 22 3 21 8 21 BEV Common Non-BEV BEV Common
Slide 13: Solid liquidity level Q3
Solid liquidity level Q3 Cash flow from operating and investing activities 1.7 bn SEK 69 70 Undrawn credit facilities 3 Marketable securities 9 17 18 Cash -1 9 -8 0 0 -1 53 52 Liquidity EBITDA Net working Other Investments Financing3 Liquidity June capital1 working September 2023 capital2 2023 1) Ch
Slide 14: Summary
Summary • Order book remains stable • Retail deliveries on track – solid double-digit growth expected in 2023 • 2023 fully electric car share to be higher than 2022 share • EX30 first deliveries in Q4 with retail sales & production ramping up in Q1, 2024 • EX30 has won 2 major industry awards • Cont
Slide 15: Q&A
Q&A Volvo Car Group Results Presentation Q3 2023
Slide 16: Disclaimer
Disclaimer • By accessing this document, the person to whom it such liability is expressly disclaimed. Analyses and is provided (the “Recipient”) agrees to be bound by opinions contained herein may be based on the following obligations and limitations. assumptions that, if altered, can change the an
Slide 17: EBIT development
EBIT development EBIT development, MSEK 8,423 6,038 10,801 5,714 6,315 6,428 6,148 5,528 5,668 4,316 3,887 5,877 3,513 5,100 4,993 4,458 4,815 3,708 4,612 3,443 3,329 2,050 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 EBIT margin development, % Volvo excl.
Slide 18: Strong net cash and prudent maturity profile
Strong net cash and prudent maturity profile 70.1 MATURITY PROFILE AND SPLIT (BN SEK) 17.3 Net cash 0.0 23.5 7.5 29.2 9% 0.6 6.4 5.9 3% 0.6 5.7 0.1 52.8 44% 43% 6.9 5.8 5.8 1.9 0.4 1.0 0.8 1.5 Liquidity 2023 2024 2025 2026 2027 2028 2029 2030 Sep 2023 Loans Undrawn credit facilities Cash & cash equi
Slide 19: Quarterly performance 2020-2023
Quarterly performance 2020-2023 (MSEK) 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 Revenue 56,517 55,242 65,763 85,311 68,593 72,538 60,838 80,076 74,269 71,300 79,329 105,247 95,705 102,152 92,045 Cost of sales -46,762 -47,
Slide 20: Financial net, tax and earnings per share
Financial net, tax and earnings per share July-Sep July-Sep MSEK 2023 2022 Operating income 4,458 2,050 Interest income and similar credits 658 211 Interest expenses and similar charges -190 -192 Other financial income and expenses -204 -152 Income/(loss) before tax 4,722 1,917 Income tax -1,503 -1,
Slide 21: Supply restraints hindered the volume growth
Supply restraints hindered the volume growth -12% 705 699 CAGR 662 642 9% 615 572 534 294 503 341 288 466 318 247 299 291 282 242 172 155 167 162 131 114 91 84 82 122 98 108 110 102 56 83 82 70 95 101 97 111 103 84 70 70 77 2014 2015 2016 2017 2018 2019 2020 2021 2022 Europe China US Other Volvo Car
Slide 22: Retail sales, revenue, capex, R&D, EBITDA and operating cash flow
RETAIL SALES (K UNITS) REVENUE (BN SEK) +11% -12% +17% +14% 642 705 661 699 330 572 615 274 263 282 253 SUV 209 273 359 445 525 469 462 Estate 198 185 161 Sedan 94 77 47 101 98 99 98 96 82 1 24 Coupe 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 RESEARCH AND DEVELOPMENT (BN SEK) CAPITA
Slide 23: Volvo Car Group
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