Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — Q2 2018 Earnings Presentation
31 slides from Volvo Ab Class A's earnings presentation, Jul 19, 2018
Slide 1: Second quarter 2018
Second quarter 2018 Martin Lundstedt, President and CEO
Slide 2: Second Quarter Highlights
Volvo Group SECOND QUARTER HIGHLIGHTS Net sales +15.8 bn, up 18% (+16% excl. currency) Adjusted operating income increased to SEK 11.5 bn (8.4) Trucks’ adjusted operating margin 11.1% (9.4) Construction Equipment’s adjusted operating margin 15.1% (13.3) Volvo Group *Adjustments, see note 7 i
Slide 3: Volume Development in the Second Quarter
Volvo Group VOLUME DEVELOPMENT IN THE SECOND QUARTER Volvo Group Second quarter 2018 3 2018-07-19
Slide 4: Service Sales Development
Volvo Group SERVICE SALES DEVELOPMENT CONSTRUCTION TRUCKS BUSES VOLVO PENTA EQUIPMENT Volvo Group Second quarter 2018 4 2018-07-19
Slide 5: Trucks
Trucks • Good demand across the globe • Stretched supply chain in North America, stabilizing in Europe • Sales start of Volvo and Renault medium-duty electric trucks in Europe in 2019 • Volvo Trucks in platooning research collaboration with FedEx and North Carolina Turnpike Authority • Volvo FH cele
Slide 6: Renault Trucks unveils second generation of electric trucks
Trucks RENAULT TRUCKS UNVEILS ITS SECOND GENERATION OF ELECTRIC TRUCKS: A COMPLETE Z.E. RANGE FROM 3.1 TO 26T TECHNICAL SPECIFICATIONS RENAULT MASTER Z.E. -Total GVW 3.1t -Real-world operating range: up to 120 km RENAULT TRUCKS D Z.E. -Total GVW: 16t -Real-world operating range: up to 300 km RENAULT
Slide 7: On-highway platooning showcase
Trucks ON-HIGHWAY PLATOONING SHOWCASE • First public on-highway platooning showcase between a truck OEM and transporter in the U.S • Volvo Trucks in platooning research collaboration with FedEx and North Carolina Turnpike Authority • Volvo’s Cooperative Adaptive Cruise Control (CACC) using wireless
Slide 8: Trucks: Market Environment
Trucks MARKET ENVIRONMENT Volvo Group Second quarter 2018 8 2018-07-19
Slide 9: HD/MD: Quarterly orders +12% and deliveries +15%
Trucks HD/MD: QUARTERLY ORDERS +12% AND DELIVERIES +15% Volvo Group Second quarter 2018 9 2018-07-19
Slide 10: Trucks Market Shares
Trucks MARKET SHARES HD% 2017 2018 Volvo Group Second quarter 2018 10 2018-07-19
Slide 11: Construction Equipment
Construction Equipment • Market growth across all regions, particularly in China • EC200D launched in Southeast Asia and India tailored for general construction class-leading fuel efficiency and reliability Volvo Group Second quarter 2018 11 2018-07-19
Slide 12: Volvo Days in Eskilstuna
Construction Equipment VOLVO DAYS IN ESKILSTUNA • First held in 1958, Volvo CE celebrated 60 years of live demonstrations at Volvo Days • Visitors from more than 70 markets • Highlights included the new Volvo R70D and R100E rigid haulers • A total of 70 machines and vehicles from Volvo CE and Volvo
Slide 13: Construction Equipment: Market Environment
Construction Equipment MARKET ENVIRONMENT Volvo Group Second quarter 2018 13 2018-07-19
Slide 14: Quarterly orders +41% and deliveries +38%
Construction Equipment QUARTERLY ORDERS +41% AND DELIVERIES +38% Volvo Group Second quarter 2018 14 2018-07-19
Slide 15: Buses
Buses • Good order intake mainly driven by North America, Asia and Nordic Region • Order intake increased by 63%, deliveries decreased by 4% • New platform for long distance coaches • Demonstration of an autonomous Volvo 7900 • City of Gothenburg ordered 30 full electric 7900 buses Volvo Group Secon
Slide 16: Volvo Penta
Volvo Penta • Sales growth continues, especially for industrial off-road engines • Orders increased by 51% with pre-buy effects ahead of new EU Stage V • Deliveries increased by 7% • Live demonstration of self-docking technology - targeting commercial launch in 2020 • Volvo Penta targets to commerci
Slide 17: Financial Services
Financial Services • Strong volume led by North America, Europe and China • Parts financing program reaches new high in North America • Bus Rapid Transport system investments in city of Curitiba financed by VFS • VFS opens captive financing in Slovenia Volvo Group Second quarter 2018 17 2018-07-19
Slide 18: Second quarter 2018 - Jan Gurander, Deputy CEO and CFO
Second quarter 2018 Jan Gurander, Deputy CEO and CFO
Slide 19: Net Sales per Market
Volvo Group NET SALES PER MARKET Volvo Group Second quarter 2018 19 2018-07-19
Slide 20: Adjusted Operating Income per Business Area
Volvo Group ADJUSTED OPERATING INCOME PER BUSINESS AREA *Adjustments, see note 7 in Q2 report: Q2 2017: No adjustments Q2 2018: Significant one-time item of 818 MSEK Volvo Group Second quarter 2018 20 2018-07-19
Slide 21: Adjusted Operating Income Contributors
Volvo Group ADJUSTED OPERATING INCOME CONTRIBUTORS + Vehicle volumes + Service sales + Capacity utilization + R&D capitalization - Selling & admin expenses - Cash R&D - Stretched supply chain *Adjustments, see note 7 in Q2 report: Q2 2017: No adjustments Q2 2018: Significant one-time item of 818 MSE
Slide 22: Volvo Group – Industrial Operations: Cash Flow
Volvo Group – Industrial Operations CASH FLOW Volvo Group Second quarter 2018 22 2018-07-19
Slide 23: Trucks: Net Sales
Trucks NET SALES • Delivered HD/MD trucks +15%: - North America +32% - Europe +3% • Net sales currency-adjusted +14%: - Vehicles +16% - Services +10% Volvo Group Second quarter 2018 23 2018-07-19
Slide 24: Trucks: Adjusted Operating Income
Trucks ADJUSTED OPERATING INCOME Volvo Group Second quarter 2018 24 2018-07-19
Slide 25: Construction Equipment: Net Sales
Construction Equipment NET SALES • Delivered machines +38%: - Volvo +19% - SDLG +66% - Large and medium +40% - Compact +31% • Net sales currency-adjusted +30%: - Machines +33% - Services +9% Volvo Group Second quarter 2018 25 2018-07-19
Slide 26: Construction Equipment: Adjusted Operating Income
Construction Equipment ADJUSTED OPERATING INCOME *Adjustments, see note 7 in Q2 report: *Adjustments, see note 7 in Q2 report: Q2 2017: No adjustments Q2 2017: No adjustments Q2 2018: Significant one-time item of 818 MSEK Q2 2018: Significant one-time item of 818 MSEK Volvo Group Second quarter 2018
Slide 27: Buses: Net Sales & Adjusted Operating Income
Buses NET SALES & ADJUSTED OPERATING INCOME • Net sales currency-adjusted -2%: - Vehicles -5% - Services +12% • Adjusted operating income: + Service sales + Product mix - Lower volumes - R&D expenses • Adjusted operating margin* 3.8% (4.6) *Adjustments, see note 7 in Q2 report: Volvo Group Q2 2017:
Slide 28: Volvo Penta: Net Sales & Adjusted Operating Income
Volvo Penta NET SALES & ADJUSTED OPERATING INCOME • Net sales currency-adjusted +12%: - Engines +13% - Services +9% • Adjusted operating income: + Higher sales + Product mix + R&D capitalization • Adjusted operating margin* 19.9% (15.5) *Adjustments, see note 7 in Q2 report: Volvo Group Q2 2017: No
Slide 29: Financial Services: Credit Portfolio and Profitability
Financial Services CREDIT PORTFOLIO AND PROFITABILITY *Adjustments, see note 7 in Q1 report: 1) Excluding positive revaluation effect in Q4 2017 of SEK 897 Q2 2017: No adjustments M related to new tax rates in USA. Reported ROE including Q2 2018: No adjustments revaluation effect was 23.0% in Q2 201
Slide 30: Second Quarter Highlights
Volvo Group SECOND QUARTER HIGHLIGHTS Net sales +15.8 bn, up 18% (+16% excl. currency) Adjusted operating income increased to SEK 11.5 bn (8.4) Trucks’ adjusted operating margin 11.1% (9.4) Construction Equipment’s adjusted operating margin 15.1% (13.3) Volvo Group *Adjustments, see note 7 i
Slide 31: Volvo Group
VOLVO VOLVO GROUP