Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — AB Volvo — Q2 2023 Earnings Presentation
29 slides from Volvo Ab Class A's earnings presentation, Jul 19, 2023
Slide 1: Second Quarter 2023
SECOND QUARTER 2023 Martin Lundstedt President and CEO Volve Group Second quarter 2023 2023-07-19
Slide 2: Second quarter highlights
votLuvao Volvo Group Second quarter highlights NET SALES ADJUSTED OPERATING INCOME SEK bn SEK bn (margin)* + Net sales increased to SEK 140.8 bn, an — 12 months SEK 521 bn — = 12 months 12.3% increase of 11% adjusted for FX * Adjusted operating income reached SEK 140.8 21.7 bn (13.7), corresponding
Slide 3: Volume development
Volvo Group Volume development Volvo Group Second quarter 2023 votLuvao TRUCK DELIVERIES = 12 months 242' units 45% i Q2 Q3 Q4 Qi 2021 60. Q2 Q3 @4 Qi 2022 63.8 Q2 2023 MACHINE DELIVERIES == 12 months 69' units 30.7 -24% Q2 G3 Q4 Qi Q@2 Q3 a4 Qi a2 2021 2022 2023 2023-07-19
Slide 4: Electrification progress
Volvo Group Electrification progress Including Designwerk and Nova Bus Volvo Group Second quarter 2023 votLuvao ORDER INTAKE, FULLY ELECTRIC VEHICLES === 12 months 5,606 units 1,703 1,457 351 Q2 Q@3 Q4 QI @2 Q@ 24 At Q2 2021 2022 2023 DELIVERIES, FULLY ELECTRIC VEHICLES === 12 months 3,540 units 1,1
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Slide 7: Group news
Group news * Volvo Group and Westport agreed to establish joint venture for high pressure gas injection fuel systems * Volvo Group partners with Vattenfall to secure long-term renewable electricity for its Swedish operations Volvo Group Second quarter 2023 votLuvao 2020 Internal Combustion Engine 20
Slide 8: Trucks news
votLuvao Trucks news * First Volvo FH electric truck produced in the Ghent plant, Belgium, handed over to customer * Volvo Trucks has delivered an electric truck for heavy transport up to a total weight of 74 tonnes * Volvo Trucks has signed a letter of intent to sell 1,000 electric trucks between n
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Slide 10: Trucks
Trucks Quarterly orders -10% and deliveries +5% NORTH AMERICA =Orders s=mDeliveries Q2 Q@3 Q4 Qi Q2 Q3 4 Qt Q2 2021 2022 2023 Orders -11% Deliveries +6% SOUTH AMERICA <TFoODRe =Orders ===Deliveries votLuvao EUROPE ww Orders «=m=Deliveries Q2 Q@3 Q4 QI Q2 Q@ @4 at a2 2021 2022 2023 \ Orders -7% AFRIC
Slide 11: Includes content supplied by IHS Markit . Copyright © IHS Markit (2022). All rights
Includes content supplied by IHS Markit . Copyright © IHS Markit (2022). All rights reserved.
Slide 12: Construction Equipment news
votLuvao Construction Equipment news ¢ Full value chain business unit established for compact equipment machines and solutions * Continued global roll-out of electric machines with additional markets in Asia Volvo Group Second quarter 2023 2023-07-19 12
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Slide 14: Construction Equipment
votLuvao Construction Equipment Quarterly orders -41% and deliveries -24% NORTH AMERICA Deliveries ome Orde EUROPE Orders ====Deliveries Q2 Q3 44 Ql 2021 SOUTH AMERICA Q2 Q@3 Q4 ai Q2 2022 2023 Orders -48% Deliveries +35% eliveries == Orders Q2 @8 @4 a 2021 Q2 Q3 Q4 Qi Q2 2022 2023 Orders -39% Deliv
Slide 15: Buses
Buses * Orders increased by 23% * Deliveries decreased by 1% * Letters of intent signed with body builders to support the new business model in Europe * Orders for 189 new electric buses from Stagecoach in the UK Volvo Group Second quarter 2023 votLuvao 2023-07-19 6
Slide 16: Volvo Penta
votLuvao Volvo Penta * Orders decreased by 11% * Deliveries decreased by 3% * Volvo Penta Inboard Performance System (IPS) introduced on larger vessels and yachts Volvo Group Second quarter 2023 2023-07-19 16
Slide 17: Financial Services
votLuvao Financial Services * Record business volume for a second quarter * Penetration stable in competitive environment * Stable portfolio performance Volvo Group Second quarter 2023 NEW RETAIL FINANCING & PENETRATION RATE* SEK bn == Penetration rate 12 months 27% 29.2 26. 20.0 Q2 Q3 Q4 Qi Q@2 Q3
Slide 18: Second Quarter 2023
SECOND QUARTER 2023 Jan Ytterberg Acting CFO and Executive Vice President Group Finance Volve Group Second quarter 2023 2023-07-19
Slide 19: Net sales per market
votLuvao Volvo Group Net sales per market NET SALES SEK bn Currency SEK +8.2 bn 16 21 140.8 Q2 Europe North South Asia Africa Q2 2022 America America and 2023 Oceania Volvo Group Second quarter 2023 2023-07-19 19
Slide 20: Adjusted operating income contributors
votLuvao Volvo Group Adjusted operating income contributors | ADJUSTED OPERATING INCOME SEK bn Currency SEK +0.8 bn 10.2 ~ + Price realization a . 0.9 217 + Brand and product mix 12-04 ———— As -0.4 - Material costs L - R&D expenses - Production efficiency Q2 Gross Cash NetR&D Selling Admin Other Q2
Slide 21: Cash flow, financial position and ROCE in Industrial Operations
Volvo Group votLuvao Cash flow, financial position and ROCE in Industrial Operations OPERATING CASH FLOW SEK bn == 12 months SEK 51.1 bn 12.6 P i i | Q2 Q3 @4 QI @2 Q3 G4 at a2 2021 2022 2023 Volvo Group Second quarter 2023 ROCE FINANCIAL POSITION % 12 months (Excl. pensions and lease liabilities) S
Slide 22: Trucks: Net sales and adjusted operating income
Trucks votLuvao Net sales and adjusted operating income NET SALES ==12 months SEK 346 bn SEK bn +19% (excl. FX +12%) ji — 93.7 78.6 51.9 a2 @3 @4 at a2 a8 a4 a a@ 2021 2022 2023 Volvo Group Second quarter 2023 ADJUSTED OPERATING INCOME SEK bn 14.9 vt + Price realization 9.6 - Material costs - R&D ex
Slide 23: Construction Equipment: Net sales and adjusted operating income
votLuvao Construction Equipment Net sales and adjusted operating income NETSALES == 12 months SEK 106 bn SEK bn +12% (excl. FX +7%) 29.0 25.8 25.8 Q2 Q@3 @4 QI Q2 GQ Q4 at Q2 2021 2022 2023 Volvo Group Second quarter 2023 ADJUSTED OPERATING INCOME SEK bn + Brand & product mix 5.4 + Price realization
Slide 24: Buses: Net sales and adjusted operating income
Buses votLuvao Net sales and adjusted operating income NET SALES == 12 months SEK 21 bn SEK bn +34% (excl. FX +26%) : A , if i} 4 3.8 41 Q2 Q3 Q4 QI Q2 Q3 Q4 Qi Q2 2021 2022 2023 All numbers restated to exclude Nova Bus which is now included in segment ‘Group Functions and other’ Volvo Group Second
Slide 25: Volvo Penta: Net sales and adjusted operating income
votLuvao Volvo Penta Net sales and adjusted operating income NET SALES —=12 months SEK 20 bn ADJUSTED OPERATING INCOME ADJUSTED OPERATING INCOME SEK bn SEKM SEK M (margin}* <= 12 months 15.4% +18% 804 Currency SEK +145 M (excl. FX +11%) ; J 1 699 804 9 5.4 an + Price realization (14.8%) 46 + Mix (15
Slide 26: Financial Services: Credit portfolio and profitability
votLuvao Financial Services Credit portfolio and profitability CREDIT PORTFOLIO & ROE* SEK bn 5 === ROE 12 months 13.9% 192 153 Q2 Q@3 Q4 Qi Q2 Q3 Q4 Qi 2021 2022 Volvo Group Second quarter 2023 252 Q2 2023 ADJUSTED OPERATING INCOME* SEKM 916 809 a Portfolio growth lL Spread compression Q2 Q2 2022 2
Slide 27: Second quarter highlights
votLuvao Volvo Group Second quarter highlights NET SALES ADJUSTED OPERATING INCOME SEK bn SEK bn (margin)* * Net sales increased to SEK 140.8 bn, an — 12 months SEK 521 bn — = 12 months 12.3% increase of 11% adjusted for FX 21.7 15.49 * Adjusted operating income reached SEK 140.8 (15.4%) 21.7 bn (13
Slide 28: Volvo Group
Volvo Group Second quarter 2023
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