Volvo Car Ab Class B · OMXSTO:VOLCAR_B
Volvo Car Ab Class B — Q2 2025 Earnings Presentation
23 slides from Volvo Car Ab Class B's earnings presentation, Jul 17, 2025
Slide 1: Q2 2025 Financial Results
Q2 2025 FINANCIAL RESULTS Håkan Samuelsson, President & CEO Fredrik Hansson, CFO Volvo Car Group Results Presentation Q2 2025
Slide 2: A challenging environment
A challenging environment Continued tough Increased pricing US and EU import tariffs market, resulting in pressure across markets impacted profitability weaker volumes Volvo Car Group Results Presentation Q2 2025
Slide 3: Three cornerstones of the turnaround plan for a more resilient Volvo Cars
Three cornerstones of the turnaround plan for a more resilient Volvo Cars Focused on premium More autonomous and SEK 18 bn cost and cash BEVs with PHEVs as a empowered regions – plan fully on track bridge China, Americas, Europe Volvo Car Group Results Presentation Q2 2025
Slide 4: Delivering on our electrification journey
ELECTRIFICATION Delivering on our electrification journey Objectives Developments EX90 • Ready for ramp-up after delays Fully electric EX30 • Fully ramped-up in Ghent in H2 2025 PHEVs as bridge ES90 • SoP in H2 2025 XC70 • First extended-range PHEV for China, SoP in Q3 EX60 • On track for SoP in 202
Slide 5: Empowering regions
REGIONALISATION Empowering regions Objectives Developments China • New governance model More local decision-making • Increased Geely synergies Americas Strengthened local accountability • New leadership in place • Best-seller XC60 to be manufactured at the Charleston plant, SoP in H2 2026 Europe • E
Slide 6: Financial Update
, 8 meee Q2 2025 FINANCIAL UPDATE
Slide 7: Q2 — Financials in brief
Q2 — Financials in brief Challenging quarter but operationally better than Q1 Strong positive cash flow, turnaround plan fully on track Non-cash items impacting bottom-line Volvo Car Group Results Presentation Q2 2025
Slide 8: Q2 impacted by one-offs: Impairment for EX90/ES90 platform and restructuring cost
Q2 impacted by one-offs: Impairment for EX90/ES90 platform and restructuring cost 1. Impairment for EX90/ES90 2. Restructuring cost • Rightsizing of assets due to lower than • Reduction of 3,000 white-collar headcounts planned lifecycle profitability • One-time restructuring cost SEK 1.4 bn in Q2 •
Slide 9: Q2 — Key financials
Q2 — Key financials Retail sales Wholesales Revenue Group EBIT Cash flow (k UNITS) (k UNITS) (bn SEK) (bn SEK/%) from operating and Adj. for impairment & restructuring investing activities (bn SEK) -12% -13% -64% +4 -8% 205 206 102 8.0 4 182 180 3 94 3 99 91 2.9 7.9% 0 3.1% Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q
Slide 10: Q2 vs. Q1 — Sequentially improved
Q2 vs. Q1 — Sequentially improved Retail sales Wholesales Revenue Group EBIT Cash flow (k UNITS) (k UNITS) (bn SEK) (bn SEK/%) from operating and Adj. for impairment & restructuring investing activities (bn SEK) +6% +12% +12% +53% +10 182 180 94 2.9 4 172 161 83 3 2 1.9 91 81 2.3% 3.1% -6 Q1 Q2 Q1 Q
Slide 11: Q2 — Revenue walk
Q2 — Revenue walk -8.2 BN SEK (-8%) 101.5 98.7 3.1 4.1 90.5 3.0 93.5 -2.7 0.2 -10.6 -4.9 Revenue Contract Revenue Volume Sales mix Used Cars Foreign Other 1 Revenue Contract Revenue Q2 2024 manufacturing Q2 2024 and pricing exchange rates Q2 2025 manufacturing Q2 2025 Excl Excl contract contract man
Slide 12: Q2 — EBIT walk
Q2 — EBIT walk EBIT BN SEK -5.1 8.0 7.9% -2.5 0.8 2.9 -3.0 -0.5 3.1% -13.0% -12.9 -10.0 Group EBIT Volume Sales mix Foreign Group EBIT Impairment Group EBIT Q2 2024 and pricing exchange rates Other¹ adj. EX90/ES90 & Q2 2025 Q2 2025² restructuring costs 1) Including emission credits, used cars, capit
Slide 13: Strong liquidity level for Q2
Strong liquidity level for Q2: 9 bn improvement from strong free cash flow and new 5 bn bond Cash flow from operating and investing activities 4.2 bn SEK 82 73 Undrawn credit facilities 11 26 Marketable securities 26 0 5 Cash 8 0 0 -14 56 47 Liquidity EBITDA Net working Other Investments Financing³
Slide 14: SEK 18 bn cost and cash plan fully on track
PROFITABILITY SEK 18 bn cost and cash plan fully on track Targets announced in Q1 Developments Variable cost Variable cost SEK -3 bn vs 2024 • Global joint procurement activities with Geely Indirect spend Indirect spend SEK -5 bn vs 2024 • Implementing 3,000 planned headcount reduction, of which to
Slide 15: Summary
Summary 1. Turnaround plan 2. Revenue and 3. Profitability 4. Significantly fully on track volume under excluding one-offs improved free pressure slightly better than cash flow Q1 Volvo Car Group Results Presentation Q2 2025
Slide 16: Q&A
Q&A Volvo Car Group Results Presentation Q2 2025
Slide 17: Disclaimer
Disclaimer • By accessing this document, the person to whom connection with the use of or reliance on this it is provided (the “Recipient”) agrees to be bound document and any such liability is expressly by the following obligations and limitations. disclaimed. Analyses and opinions contained • This
Slide 18: EBIT development
EBIT development Volvo excl. JVs & Associates EBIT development, MSEK Volvo Car Group 8,423 10,801 8,216 6,677 6,795 5,710 5,714 5,668 6,038 6,315 6,428 6,148 6,318 4,316 3,513 3,887 5,528 7,969 1,874 5,877 4,612 5,100 4,993 4,458 5,388 4,706 5,790 4,815 3,708 3,443 3,852 3,329 1,939 2,050 -9,995 -10
Slide 19: Strong net cash and prudent maturity profile
Strong net cash and prudent maturity profile MATURITY PROFILE AND SPLIT (BN SEK) 82.3 Net cash 23.4 26.0 32.8 4% 0.0 24% 56.2 72% 6.1 6.5 6.6 7.6 Loans 2.8 1.5 0.1 5.6 5.6 0.6 0.5 0.2 0.9 0.4 0.4 5.6 1.0 5.6 1.0 0.7 0.6 0.6 0.6 0.3 Green bond 0.3 2.0 0.0 Loans GFF Liquidity 2025 2026 2027 2028 2029
Slide 20: Quarterly performance 2021-2025
Quarterly performance 2021-2025 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 2025 2025 MSEK Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Revenue 72,538 60,838 80,076 74,269 71,300 79,329 105,247 95,705 102,152 92,045 109,441 93,878 101,454 92,783 112,119 82,948 93
Slide 21: Financial net, tax and earnings per share
Financial net, tax and earnings per share Apr – Jun Apr – Jun MSEK 2025 2025 Operating income -9 955 7 969 Interest income and similar credits 474 590 Interest expenses and similar charges -279 -602 Other financial income and expenses -302 -135 Income before tax -10 062 7 822 Income tax 1 958 -2 168
Slide 22: Retail sales, revenue, R&D, capex, EBITDA and operating cash flow
RETAIL SALES (K UNITS) REVENUE (BN SEK) 763 399 400 705 661 699 709 SUV 642 615 330 572 Sedan 274 282 253 263 273 359 445 525 538 613 Estate 209 469 462 101 98 99 Coupe 198 98 96 82 89 84 MPV 185 161 94 77 47 45 44 2017 2018 2019 2020 2021 2022 2023 2024 2017 2018 2019 2020 2021 2022 2023 2024 RESEA
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