Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — AB Volvo — Q3 2011 Earnings Presentation
23 slides from Volvo AB Class A's earnings presentation, 2011
Slide 1: AB Volvo Third Quarter 2011
VOLVOGROUP ~e THIRD QUARTER =
Slide 2: Sales by region
Sales by region MARKET DEVELOPMENT VOLVO GROUP SALES Q3 SEK bn % South America 15% growth, 22% excl currency 73 North America 4% 3% 29% 13 20 Asia 64 25% 60% 9% 24 30 7 7 Eastern Europe Western Europe Other markets AB Volvo Third quarter 2011 2
Slide 3: Sales trend
Sales trend SALES TREND SALES BRIDGE SEK bn SEK bn SEK 297 bn 12 months rolling 73 73 6% -22% 4% 12% 64 18% 48 64 16% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 09 09 10 10 10 10 11 11 11 AB Volvo Third quarter 2011 3
Slide 4: Operating income
Operating income OPERATING INCOME OPERATIONAL PERFORMANCE SEK bn SEK bn SEK 25.5 bn 12 months rolling 0.1 0.2 0 0.5 0.1 0.1 1.8 -0.2 -0.7 5.8 -0.0 0 -0.4 5.8 4.9 4.9 -1.8 -0.5 Fx-effect -3.3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 09 09 10 10 10 10 11 11 11 AB Volvo Third quarter 2011 4
Slide 5: Financial highlights – Operating capital
Financial highlights – Operating capital OPERATING CASH ROC CASH FLOW CONVERSION CYCLE % SEK bn Days 28% 73 SEK 18.5 bn 11% 12 months rolling 2.2 22 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 - 1.4 - 1.9 09 09 10 10 10 10 11 11 11 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 09 09 10 10 10 10 11 11 11 09 0
Slide 6: Trucks – Sales trend
Trucks – Sales trend SALES TREND SALES BRIDGE SEK bn SEK bn SEK 191 bn 12 months rolling 16% growth, 22% excl currency 48 48 0% 1% 31% 41 29% 41 18% 30 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 09 09 10 10 10 10 11 11 11 AB Volvo Third quarter 2011 6
Slide 7: Trucks – Operating income
Trucks – Operating income OPERATING INCOME OPERATING MARGIN SEK bn % SEK 17 bn 12 months rolling 8.3% 6.6% 4.0 2.7 -7.7% -2.3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 09 09 10 10 10 10 11 11 11 09 09 10 10 10 10 11 11 11 AB Volvo Third quarter 2011 7
Slide 8: Financial highlights – Volvo CE
Financial highlights – Volvo CE SALES TREND SALES BRIDGE SEK bn SEK bn SEK 63 bn 12 months rolling 18% growth, 27% excl currency 15 42% 15 13 1% 14% 13 26% 20% 8 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 09 09 10 10 10 10 11 11 11 AB Volvo Third quarter 2011 8
Slide 9: Volvo CE – Operating income
Volvo CE – Operating income OPERATING INCOME OPERATING MARGIN SEK bn % SEK 6.8 bn 12 months rolling 10.5% 9.4% 1.3 1.4 -9.6% -0.8 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 09 09 10 10 10 10 11 11 11 09 09 10 10 10 10 11 11 11 AB Volvo Third quarter 2011 9
Slide 10: Operating leverage
Operating leverage OPERATING OPERATING OPERATING NET SALES MARGIN LEVERAGE LEVERAGE FX-ADJ INCOME VOLVO GROUP INDUSTRIAL OPERATIONS 72 bn 5.5 bn 7.7% 7% 18% TRUCKS 48 bn 4.0 bn 8.3% 19% 19% VOLVO CE 15 bn 1.4 bn 9.4% 3% 14% BUSES 5.2 bn 0.2 bn 3.6% 5% 8% VOLVO PENTA 2.2 bn 0.2 bn 9.5% 112% 62% VOLVO
Slide 11: Strong third quarter
Strong third quarter - from a historical perspective SALES OPERATING INCOME OPERATING MARGIN CASH FLOW Q3 Q3 Q3 Q3 2011 (73 bn) 2011 (5.8 bn) 2011 (7.9%) 2011 (2.2 bn) 2008 2007 2007 2007 2007 2010 2010 2006 2010 2006 2006 2009 2006 2008 2008 2010 2009 2009 2009 2008 AB Volvo Third quarter 2011 11
Slide 12: Order intake & deliveries – Trucks
Order intake & deliveries – Trucks ORDERS ORDERS AND DELIVERIES Book to bill: 1.1 Q2-11 Q3-10 Q3-11 YoY Europe 24,623 19,434 22,257 +15% 60 North America 15,314 9,350 11,898 +27% South America 6,597 6,085 8,063 +33% 55 Asia 13,724 13,047 13,772 +6% Other markets 4,748 2,953 3,985 +35% Total 65,006 5
Slide 13: Market development - Trucks
Market development - Trucks Units, thousands 400 Market forecasts 2011 2012 Europe 240,000 - 10% 350 North America 210,000 + 20% Brazil 120,000 - 10% Japan 25,000 + 20% 300 250 North America +20% 200 Europe - 10% 150 100 Brazil - 10% 50 Japan +20% 0 95 96 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07 '08
Slide 14: Market development - VCE
Market development - VCE Units, thousands 450 Market forecasts 2011 2012 China +0-10% 400 Europe + 20-25% + 10-20% North America + 35-40% +15-25% South America + 15-20% +0-10% 350 Asia, excl China + 20-25% +10-20% China + 5-10% +0-10% 300 250 Asia, ex China 200 +10-20% 150 Europe +10-20% N America +
Slide 15: Summary
Summary Historically good Q3 - Growth - Profitability - Cash flow Macro-economic uncertainty with low visibility Geographical footprint balancing AB Volvo Third quarter 2011 15
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Slide 17: Appendix
APPENDIX AB Volvo VOLVO
Slide 18: Guidance
Guidance Market forecast Capex 2011 ~10 bn Trucks 2011 2012 - Europe 240,000 - 10% Tax rate 2011 ~30% - North America 210,000 + 20% - Brazil 120,000 - 10% - Japan 25,000 + 20% CE 2011 2012 - Europe + 20-25% + 10-20% - North America + 35-40% + 15-25% - South America + 15-20% + 0-10% - Asia, ex China
Slide 19: Currency effects – On operating income
Currency effects – On operating income SEK M Q3-11 vs Q3-10 Trucks -502 Volvo CE -400 Buses -46 Volvo Penta -4 Volvo Aero -213 Other -680 Volvo Group -1,845 AB Volvo Third quarter 2011 19
Slide 20: Currency impact on operating income
Currency impact on operating income Business Areas Q3 2011 Q3 2010 Change Spot rates, net flows - 1088 Realized hedging contracts -18 +57 -75 Comments Revaluation of receivables +62 -376 +438 No hedge accounting & payables Hedging firm flows Unrealized gains and losses -378 +598 -976 on hedging
Slide 21: Currency impact on operating income
Currency impact on operating income Business Areas Q3 2011 Q2 2011 Change Spot rates, net flows +261 Realized hedging contracts -18 +211 -229 Comments Revaluation of receivables +62 +166 -104 No hedge accounting & payables Hedging firm flows Unrealized gains and losses -378 -101 -277 on hedging
Slide 22: Upcoming events
Upcoming events CAPITAL MARKET DAY November 8 Stockholm Q4-REPORT February 3 Stockholm AGM April 4 Göteborg www.volvogroup.com/IR AB Volvo Third quarter 2011 22
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