Volvo AB Class A · OMXSTO:VOLV_A

Volvo AB Class A — AB Volvo — Q1 2014 Earnings Presentation

19 slides from Volvo AB Class A's earnings presentation, 2014

  1. Slide 1: Volvo Group First quarter 2014

    Volvo Group First quarter 2014 OLOF PERSSON, CEO AB Volvo

  2. Slide 2: Higher volumes and operational improvement

    VOLVO GROUP Higher volumes and operational improvement • Gaining market shares in Trucks – positive momentum continues • Positive price realization • Structural reduction of white collar employees and consultants under-way • Effects from the strategic program start to translate into operational impr

  3. Slide 3: Trucks Europe: Transitioning to Euro VI

    TRUCKS EUROPE Transitioning to Euro VI • Smooth transition from Euro V to VI, market developing as expected • Good reception of the new product ranges with good pricing • Euro VI technology well received • Smooth adaptation to lower volumes in production – well balanced for Q2 • Combined market shar

  4. Slide 4: Growing momentum in US truck demand

    TRUCKS NORTH AMERICA Growing momentum in US truck demand • Market outlook increased to 260,000 for 2014 • Increasing production end of Q2 • New Mack brand identity launched at the CONEXPO • Market shares for Mack and Volvo improved to 18.5% (14.8%) in North America AB Volvo First quarter, 2014 4

  5. Slide 5: Slowing momentum in Brazil

    TRUCKS SOUTH AMERICA Slowing momentum in Brazil • Market outlook revised to 90,000 for 2014 – still historically a good level • Continued good momentum in the after-market business • Adapting production to lower demand during Q2 • Market shares in Brazil improved to 21.4% (17.7%) AB Volvo First quar

  6. Slide 6: Strong demand in Japan

    TRUCKS ASIA Strong demand in Japan • Strong market in Japan – outlook raised slightly • Mining still slow across the region • Positive customer reception of UD Quester & Eicher Pro Series • Market shares in Japan increased to 18.4% (18.0%) AB Volvo First quarter, 2014 6

  7. Slide 7: Construction Equipment: Moderate growth in mature markets

    VOLVO CONSTRUCTION EQUIPMENT Moderate growth in mature markets • Moderate growth in mature markets, weaker development in emerging markets • Seasonal volume increase compared to Q4 • Transitioning to Tier IV final • Structural reduction of blue-collar workforce in Europe • Mining still slow AB Volvo

  8. Slide 8: Buses and Volvo Penta

    BUSES VOLVO PENTA • Global bus market continues on a low level • Demand for marine leisure engines bottoming out on low level • Deliveries decreased by 3% • Continued weak demand for industrial • Transitioning from Euro V to Euro VI engines • Orders for 180 buses to Australia • Inroads into new cust

  9. Slide 9: Volvo Group - Jan Gurander, CFO

    Volvo Group First quarter 2014 JAN GURANDER, CFO AB Volvo

  10. Slide 10: First quarter summary

    VOLVO GROUP First quarter summary AB Volvo First quarter, 2014 10

  11. Slide 11: Improving performance in Q1

    VOLVO GROUP Improving performance in Q1 + Higher volumes + Higher capacity utilization + Price realization + Lower R&D spending + Lower selling expenses - Negative currency effect - Higher net R&D amortization AB Volvo First quarter, 2014 11

  12. Slide 12: Well managed adaptation to lower volumes in Europe

    TRUCKS Well managed adaptation to lower volumes in Europe AB Volvo * Excluding restructuring charges First quarter 2014 12

  13. Slide 13: Improved earnings on the back of higher volumes

    VOLVO CE Improved earnings on the back of higher volumes AB Volvo * Excluding restructuring charges First quarter 2014 13

  14. Slide 14: Buses and Volvo Penta

    BUSES VOLVO PENTA AB Volvo * Excluding restructuring charges First quarter 2014 14

  15. Slide 15: Customer Finance: Strong new business volume

    CUSTOMER FINANCE Strong new business volume AB Volvo First quarter 2014 15

  16. Slide 16: Reduction of white-collar employees and consultants according to plan

    VOLVO GROUP Reduction of white-collar employees and consultants according to plan  To be implemented mainly in 2014  900 net white collar reduction achieved group wide up until Q1 2014  Activities launched in Sweden and Japan – negotiations under-way in France AB Volvo First quarter, 2014 16

  17. Slide 17: Strategic program starts having an effect on operating expenses

    VOLVO GROUP Strategic program starts having an effect on operating expenses AB Volvo First quarter 2014 17

  18. Slide 18: Seasonally weak cash flow

    VOLVO GROUP Seasonally weak cash flow AB Volvo First quarter 2014 18

  19. Slide 19: 2014 - The year of efficiency

    20 months to go STRATEGIC PROGRAM 2012-2015 2014 – THE YEAR OF EFFICIENCY ACTIVITIES NOW START TO SHOW RESULTS Cash R&D reduction - 200 M SEK Selling cost reduction - 100 M SEK IS/IT cost reduction - 100 M SEK ACTIONS IMPLEMENTED IN Q1  White collar reduction of 900 employees out of the 4,400  Leg

AB Volvo — Q1 2014 Earnings Presentation on 6ix