Volvo Car Ab Class B · OMXSTO:VOLCAR_B
Volvo Car Ab Class B — Q4 2024 Earnings Presentation
31 slides from Volvo Car Ab Class B's earnings presentation, Feb 6, 2025
Slide 1: Q4 and Full Year 2024 Financial Results
Q4 AND FULL YEAR 2024 FINANCIAL RESULTS Jim Rowan, President & CEO Johan Ekdahl, CFO Anders Bell, Chief Engineering & Technology Officer
Slide 2: Solid 2024 performance despite challenging environment
Solid 2024 performance despite challenging environment Growth Market share Electrified CO2 Highest ever retail Increased market 46% Electrified Reduced CO2 per deliveries of 763K, share in Europe to 23% BEVs car by 26% + 7.7% 2.6% from 2.2% Revenue Gross margin Core EBIT Cash flow SEK 400bn 19.8% SE
Slide 3: 2024: Another strong year for product and tech
Jim 2024: 2024:strengthened product Another strong year inline-up product and tech SoP of EX90 – first ever Volvo Ramp up of EX30 with core compute SoP of EM90 SoP of XC90 EX30 ramp up EX90 EM90 XC90 Start of production and customer deliveries
Slide 4: Outgrow the premium car market
Adjusted Business Ambitions GROWTH EBIT FREE CASH FLOW (excl. JVs and Associates) Outgrow Positive 2025 the premium 7–8% Strong 2026+ car market UNTIL 2026 FY 2026 Volume CAGR from 2023 to 26 Volvo Car Group Results Presentation Q4 2024
Slide 5: Other operational and strategic developments in 2024
Other operational and strategic developments in 2024 Strategic Divestments NOVO Distributed Polestar shares to an 18% stake Took financial control of the JV with Northvolt Divesting ownership in Lynk & Co, subject to approvals Organisation Cash Management Cost Action New commercial and Aligned produ
Slide 6: Continued strong electrified performance
Continued strong electrified performance Electrified % of total volume 50-60 48 48 47 41 41 39 41 34 36 22 23 26 23 23 20 23 20 21 26 25 18 18 21 21 16 13 16 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2025 2022 2023 2024 Ambition PHEV Fully electric cars Volvo Car Group Results Presentation Q4 2024
Slide 7: Financial Update Q4 2024
Q4 2024 FINANCIAL UPDATE Volvo Car Group Results Presentation Q4 2024
Slide 8: Q4 — Key financials
Q4 — Key financials Retail sales Revenue EBIT Core/ Cash flow (k UNITS) (bn SEK) EBIT Group from operating (bn SEK/%) and investing activities (bn SEK) +1% +2% +125% -5% 200 202 109 112 6.7 14 3 6.3 3 5.4 3.9 106 109 6 6.1% 4.9% 5.6% 3.4% Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 2023 2024 2023 2024 2023 2024 2023 20
Slide 9: Q4 — Revenue walk
Q4 — Revenue walk REVENUE BRIDGE (BN SEK) +2.8 BN SEK 3.0 112.1 (+3%) 109.4 4.6 109.0 106.2 1.4 -3.2 -0.5 -0.7 -2.0 Revenue Contract Revenue Volume Sales mix Deferred Foreign Other1 Revenue Contract Revenue manufacturing and pricing revenue and exchange rates manufacturing Q4 2023 Q4 2023 Q4 2024 Q4
Slide 10: Q4 — EBIT walk
Q4 — EBIT walk EBIT BRIDGE (BN SEK) EBIT BN SEK -1.5 BN SEK -0.4 1.3 6.7 1.9 6.3 5.4 -0.3 -1.0 -0.9 3.9 -2.5 4.9% 6.1% 5.6% 3.4% Group EBIT JV & Associates Core EBIT Volume Sales mix Foreign Other1 Core EBIT JV & Associates Group EBIT and pricing exchange rates Q4 2024 Q4 2024 Q4 2023 Q4 2023 1) Inc
Slide 11: Full year — Key financials
Full year — Key financials Retail sales Revenue EBIT Core/ Cash flow (k UNITS) (bn SEK) EBIT Group from operating (bn SEK/%) and investing activities (bn SEK) +8% 0.2% +6% +10 763 399 400 27.0 1 709 22 13 25.6 22.3 19.9 377 387 6.4% 5.0% 6.8% 5.6% -9 2023 2024 2023 2024 2023 2024 2023 2024 Contract
Slide 12: Full Year — Revenue walk
Full Year — Revenue walk REVENUE BRIDGE (BN SEK) +10 BN SEK (+3%) 25.2 13.2 400.2 399.3 -6.3 4.1 387.0 -7.2 376.9 -5.7 -22.4 Revenue Contract Revenue Volume Sales mix Deferred Foreign Other1 Revenue Contract Revenue manufacturing and pricing revenue and exchange rates manufacturing 2023 2023 2024 20
Slide 13: Full Year — EBIT walk
Full Year — EBIT walk EBIT BRIDGE (BN SEK) EBIT BN SEK 2.4 BN SEK +1.5 5.8 27.0 5.6 25.6 0.6 22.3 0.1 19.9 -4.7 -5.0 5.0% 6.4% 6.7% 5.6% Group EBIT JV & Associates Core EBIT Volume Sales mix Foreign Other1 Core EBIT JV & Associates Group EBIT and pricing exchange rates 2024 2024 2023 2023 1) Includi
Slide 14: Full Year — Strong liquidity level
Full Year — Strong liquidity level Cash flow from operating and investing activities 1.1 bn SEK 14 45 89 Undrawn credit facilities Marketable securities 75 -12 Cash 32 17 7 0 10 -46 48 56 Liquidity EBITDA Net working Other Investments Financing3 Liquidity December capital1 working December 2023 capi
Slide 15: 2025
2025 Volvo Car Group Results Presentation Q4 2024
Slide 16: 2025: A year of transition for the industry
2025: A year of transition for the industry Weak demand situation to Local China brands Uncertainties created by Cost of BEV transition and persist due to macro dominating the market, trade tariffs, roll back of software related economic challenges leading to intense incentives and regulatory challe
Slide 17: Entering 2025 from solid position
Entering 2025 from solid position Retail Deliveries Gross Margin Core EBIT Thousand Cars % BN SEK 763 20 709 27 615 19 26 18 20 2022 2023 2024 2022 2023 2024 2022 2023 2024 Volvo Car Group Results Presentation Q4 2024
Slide 18: 2025: a challenging and transition year towards long-term ambitions
2025: a challenging and transition year towards long-term ambitions • Anticipate market not to grow at the rate of previous years, coupled to high likelihood of increased discounts across the industry. • As a result, it will be challenging to reach the volumes and profitability level we achieved in
Slide 19: 2025 – Year of execution that takes us to our 2026 ambitions
2025 – Year of execution that takes us to our 2026 ambitions 5 new & refreshed products: • Further harnessing of core Start of EX30 production • EX30 Cross Country compute tech with second in Ghent (EU) in the first • ES90 SPA2 car (ES90) half and full ramp up during • Long-range PHEV for China seco
Slide 20: Investments peaking with infrastructure in place, shift to SPA3
Investments peaking with infrastructure in place and as we shift towards single scalable SPA3 architecture Investments (SEK bn.) Investments/Revenues (%) Today Cell-to-body New Tech Mega casting E-motor Košice factory Manufacturing Daqing factory Charleston factory Taizhou factory Ghent (EX30) SEA (
Slide 21: Investments peaking with infrastructure in place, shift to SPA3
Investments peaking with infrastructure in place and as we shift towards single scalable SPA3 architecture Investments (SEK bn.) Investments/Revenues (%) Today New Tech Manufacturing Platforms Products ... X4 X5 X5 Volvo Car Group Results Presentation Q4 2024 For illustrative purpose
Slide 22: Geared for profitable growth
Geared for profitable growth Volvo Car Group Results Presentation Q4 2024
Slide 23: Outgrow the premium car market: 2026 Ambitions
2026 Ambitions GROWTH EBIT FREE CASH FLOW (excl. JVs and Associates) Outgrow Positive 2025 the premium 7–8% Strong 2026+ car market UNTIL 2026 FY 2026 Volume CAGR from 2023 to 26 Volvo Car Group Results Presentation Q4 2024
Slide 24: Q&A
Q&A Volvo Car Group Results Presentation Q4 2024
Slide 25: Disclaimer
Disclaimer • By accessing this document, the person to whom it connection with the use of or reliance on this is provided (the “Recipient”) agrees to be bound by document and any such liability is expressly the following obligations and limitations. disclaimed. Analyses and opinions contained • This
Slide 26: EBIT development
Johan EBIT development Volvo excl. JVs & Associates EBIT development, MSEK Volvo Car Group 10,801 8,423 8,216 6,315 6,428 6,677 6,795 6,318 5,714 6,038 6,148 5,710 5,528 5,668 7,969 4,316 3,887 5,877 3,513 5,388 5,790 5,100 4,993 4,706 4,815 4,612 4,458 3,329 3,708 3,443 3,852 2,050 Q1 2021 Q2 2021
Slide 27: Strong net cash and prudent maturity profile
Strong net cash and prudent maturity profile MATURITY PROFILE AND SPLIT (BN SEK) 88.5 32.2 Net cash 5% 0.0 27.1 12% 20% 29.3 7.2 6.8 6.3 6.1 0.9 0.1 56.4 5.7 5.7 2.4 5.7 5.7 64% 0.5 Loans 1.5 0.4 1.5 0.1 0.0 Bonds 0.2 0.4 0.4 0.4 Liquidity 2025 2026 2027 2028 2029 2030 2031 2032 Green bond December
Slide 28: Quarterly performance 2020-2024
Quarterly performance 2020-2024 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 MSEK Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue 56,517 55,242 65,763 85,311 68,593 72,538 60,838 80,076 74,269 71,300 79,329 105,247 95,705 102
Slide 29: Financial net, tax and earnings per share
Financial net, tax and earnings per share Oct-Dec Oct-Dec MSEK 2024 2023 Operating income 3,853 5,388 Interest income and similar credits 440 740 Interest expenses and similar charges -324 -190 Other financial income and expenses -224 -557 Income before tax 3 745 5,381 Income tax -1,408 -2,049 Incom
Slide 30: Retail sales, revenue and cash flow history
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 198 185 98 96 82 89 84 MPV 161 94 77 47 45 44 2017 2018 2019 2020 2021 2022 2023 2024 2017 2018 2019 2020 2021 2022 2023 2024 RESEA
Slide 31: votLvo
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