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
Slide 1: Volvo Group First quarter 2014
Volvo Group First quarter 2014 OLOF PERSSON, CEO AB Volvo
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
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
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
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
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
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
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
Slide 9: Volvo Group - Jan Gurander, CFO
Volvo Group First quarter 2014 JAN GURANDER, CFO AB Volvo
Slide 10: First quarter summary
VOLVO GROUP First quarter summary AB Volvo First quarter, 2014 10
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
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
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
Slide 14: Buses and Volvo Penta
BUSES VOLVO PENTA AB Volvo * Excluding restructuring charges First quarter 2014 14
Slide 15: Customer Finance: Strong new business volume
CUSTOMER FINANCE Strong new business volume AB Volvo First quarter 2014 15
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
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
Slide 18: Seasonally weak cash flow
VOLVO GROUP Seasonally weak cash flow AB Volvo First quarter 2014 18
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