Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — Investor Day (November 2020)
51 slides from Volvo Ab Class A's investor day presentation, Nov 5, 2020
Slide 1: Shaping the future of transportation
Shaping the future of transportation November 5, 2020
Slide 2: Strengthening the resilience over the cycle
Strengthening the resilience over the cycle Volvo Group Net cash position, Adjusted operating income and margin Industrial Operations (excl. pensions and lease liabilities) SEK bn SEK bn 01 01 Volvo Group Volvo Group Capital Markets Day, 2020 2 2020-11-05
Slide 3: Achieving industry-leading performance
Achieving industry-leading performance Volvo CE vs peers 2014-2020 Volvo Group Volvo estimate Volvo Group Capital Markets Day, 2020 3 2020-11-05
Slide 4: We continue to review performance and take action
We continue to review performance and take action Product lines, services, market areas, segments, product projects, variants, etc. Operating income Develop High frequency follow-ups Exit Volume Volvo Group Volvo Group Capital Markets Day, 2020 4 2020-11-05
Slide 5: Delivering on our financial ambitions
Delivering on our financial ambitions Continuous Gradual and Reduced Discipline investments in new consistent volatility in capital business models earnings in earnings and allocation/ by innovation and improvement cash flow investments new technologies Volvo Group Volvo Group Capital Markets Day, 2
Slide 6: Global mega trends
Global mega trends Growing global Decarbonization population and air quality Rapid Growing urbanization e-commerce New New societal technologies demands Volvo Group Volvo Group Capital Markets Day, 2020 6 2020-11-05
Slide 7: Our strategy continues to serve us and our customers well
Our strategy continues to serve us and our customers well Volvo Volvo Group Group Volvo Group Capital Markets Day, 2020 7 2020-11-05
Slide 8: Performance culture
Performance culture FIT FOR THE FUTURE • Profit and loss responsibility • Empowerment • Regionalized value-chains • Simplicity and speed • Continuous improvement Volvo Group Volvo Group Capital Markets Day, 2020 8 2020-11-05
Slide 9: The Volvo Group journey continues
The Volvo Group journey continues 1999 – 2011 2012 – 2015 2016 – 2018 2019 → ACQUISITION-DRIVEN CLOSING IMPROVED PERFORM AND GROWTH THE GAP PERFORMANCE TRANSFORM Volvo Group Volvo Group Capital Markets Day, 2020 9 2020-11-05
Slide 10: 7 revised strategic priorities
7 revised strategic priorities Transform the Volvo Group to become a leading end-to-end integrator as well as offering easy to integrate products 1 and services through strong brands. 2 Grow the service business and target selected industry verticals offering a portfolio of tailor-made solutions. Se
Slide 11: Volvo Group Volvo Group Capital Markets Day, 2020
Volvo Group Volvo Group Capital Markets Day, 2020 11 2020-11-05
Slide 12: Volvo Group Volvo Group Capital Markets Day, 2020
Volvo Group Volvo Group Capital Markets Day, 2020 12 2020-11-05
Slide 13: Ghent plant – CO2 free vehicle production in 2007
Ghent plant – CO2 free vehicle production in 2007 Ghent bild Volvo Group Volvo Group Capital Markets Day, 2020 13 2020-11-05
Slide 14: Sustainability at the heart of everything we do
Sustainability at the heart of everything we do Science-based targets Green Finance Framework TCFD reporting Paris agreement commitment Volvo Group Volvo Group Capital Markets Day, 2020 14 2020-11-05
Slide 15: Setting a clear direction
Setting a clear direction • >50% of revenues from services and solutions by 2030 • >35% electric vehicles by 2030 • Leading by example with the world’s most sustainable in-house logistics system by 2025 • Implementation of 100 transport and infrastructure solutions for our customers by 2025 Volvo Gr
Slide 16: 100% fossil free Volvo Group vehicles from 2040
100% fossil free Volvo Group vehicles from 2040 Carbon fuel Carbon neutral 100% ELECTRIC ROLLING FLEET Share of new trucks COMBUSTION ENGINE 0% 2020 2030 2040 2050 Volvo Group Volvo Group Capital Markets Day, 2020 16 2020-11-05
Slide 17: Volvo Group Volvo Group Capital Markets Day, 2020
Volvo Group Volvo Group Capital Markets Day, 2020 17 2020-11-05
Slide 18: Addressing a broad spectrum of customer segments
Addressing a broad spectrum of customer segments Volvo Group Volvo Group Capital Markets Day, 2020 18 2020-11-05
Slide 19: Volvo electric truck range
Volvo FE Electric Volvo FM Electric Volvo FH Electric Volvo VNR Electric Volvo FMX Electric Volvo FL Electric Volvo Volvo Group Group Volvo Group Capital Markets Day, 2020 19 2020-11-05
Slide 20: Electric vehicles and operational efficiency services
Electric vehicles Operational efficiency services Maintenance & repair Charging solutions Volvo Financial Services
Slide 21: Gradual roll-out of electric ecosystems
Gradual roll-out of electric ecosystems Electric vehicles Charging solutions Financing Maintenance & repair Operational efficiency services Volvo Group Volvo Group Capital Markets Day, 2020 21 2020-11-05
Slide 22: Marty
Marty Volvo Volvo Group Group Volvo Group Capital Markets Day, 2020 22 2020-11-05
Slide 23: Customer requirements: Safety, Productivity, Sustainability
Customer requirements • Safety • Productivity • Sustainability Volvo Volvo Group Group Volvo Group Capital Markets Day, 2020 23 2020-11-05
Slide 24: Winning formula: Group technology platform and continued segment leadership
Duty Cycle/ Charging Maintenance Route Infrastructure Planning Electric Charging Operations Vehicle Cycle Financing/ Training Residual Value Winning formula: Group technology platform and continued segment leadership Volvo Volvo Group Group Volvo Group Capital Markets Day, 2020 24 2020-11-05
Slide 25: Volvo CE electrification roadmap
Volvo CE electrification roadmap Volvo Volvo Group Group Volvo Group Capital Markets Day, 2020 25 2020-11-05
Slide 26: Unlocking customer value with connectivity
Unlocking customer value with connectivity Volvo Group Volvo Group Capital Markets Day, 2020 26 2020-11-05
Slide 27: A new business model
A new business model Value sharing by maximizing capacity
Slide 28: Autonomous, Electrified, Connected
AUTONOMOUS ELECTRIFIED CONNECTED Safe Fossil free Productive Volvo Group
Slide 29: Our business model – Transport as a Service
Our business model – Transport as a Service Virtual Machines Driver Cloud A Infrastructure TARA SOLUTION Volvo Operations $ Payment Solutions Service & Volvo Volvo Group Group Maintenance Volvo Group Capital Markets Day, 2020 29 2020-11-05
Slide 30: Go-to-market focusing on three strategic customer segments
Go-to-market focusing on three strategic customer segments Quarry & Aggregates Electric confined 2020 2021 2022 2023 2024 2025 Ports & Logistics centers 2020 2021 2022 2023 2024 2025 Hub-to-Hub Highway 2020 2021 2022 2023 2024 2025 First commercial solution Volvo Volvo Group Group Volvo Group Capita
Slide 31: The Great Shift to electrification
ILLUSTRATIVE The Great Shift to electrification EV share of market % • Segment by segment • Market by market • Region by region Total Distribution Waste Regional Long Haul Construction Volvo Group Volvo Group Capital Markets Day, 2020 31 2020-11-05
Slide 32: 100% fossil free Volvo Group vehicles from 2040
100% fossil free Volvo Group vehicles from 2040 Carbon fuel Carbon neutral 100% BATTERY ELECTRIC Carbon neutral electricity ROLLING FLEET Share of FC share? new trucks FUEL CELL ELECTRIC Carbon neutral hydrogen Combustion engine ICE share? BioLNG Bio fuels, hydrogen 0% 2020 2030 2040 2050 Volvo Grou
Slide 33: Modular architecture approach
Modular architecture approach Volvo Group Volvo Group Capital Markets Day, 2020 33 2020-11-05
Slide 34: CAST – a modular R&D approach
CAST – a modular R&D approach Combustion engine Battery electric Fuel cell electric Volvo Group Volvo Group Capital Markets Day, 2020 34 2020-11-05
Slide 35: Lars
Lars Volvo Group Volvo Group Capital Markets Day, 2020 35 2020-11-05
Slide 36: Technology leadership, economy of scale, society push, infrastructure roll-out
Technology Economy Society Infrastructure leadership of scale push roll-out Volvo Group Volvo Group Capital Markets Day, 2020 Page: 2020-11-05 36
Slide 37: Volvo Group Volvo Group Capital Markets Day, 2020
Volvo Group Volvo Group Capital Markets Day, 2020 37 2020-11-05
Slide 38: Diesel engine, electric drive-line, battery and fuel cell packages
Diesel Electric Battery Fuel cell engine drive-line package package Fuel cell Battery Diesel electric electric Pre-assembly stations Volvo Volvo Group Group Trucks Operations
Slide 39: 2020 Electric production roll-out
2020 Electric production roll-out Volvo Group Volvo Group Capital Markets Day, 2020 39 2020-11-05
Slide 40: 2022 Electric production roll-out
2022 Electric production roll-out Volvo Group Volvo Group Capital Markets Day, 2020 40 2020-11-05
Slide 41: 2025 Electric production roll-out
2025 Electric production roll-out Volvo Group Volvo Group Capital Markets Day, 2020 41 2020-11-05
Slide 42: Volume ramp-up according to demand
ILLUSTRATIVE Volume ramp-up according to demand EV share of market % Total Distribution Waste Regional Long Haul Construction Volvo Volvo Group Group Volvo Group Capital Markets Day, 2020 42 2020-11-05
Slide 43: Leading the transformation towards fossil free transports
Leading the transformation towards fossil free transports Admin Repair & Fuel maintenance DISTRIBUTION France M I N I N G Indonesia CONSTRUCTION US Vehicle LONG-HAULAGE Europe Driver Volvo Group Trucks Operations Volvo Group Capital Markets Day, 2020 43 2020-11-05
Slide 44: The transformation will accelerate now!
The transformation will accelerate now! Great opportunity in Nordic food retail – distribution example Logistics cost CO2 from logistics Food retailer Food retailer Logistics cost Other cost Logistics CO2 Other CO2 Transport cost ~6% CO2 from transports is of total costs around 30% Electric CO2 solu
Slide 45: End customer choice will be simple
Diesel carried milk Electric carried milk 1.00 EUR 1.01 EUR Transport CO2 -100% End customer choice will be simple Volvo Volvo Group Group Volvo Group Capital Markets Day, 2020 45 2020-11-05
Slide 46: Shift in mix for transport cost
Shift in mix for transport cost NORDIC FOOD RETAIL – DISTRIBUTION EXAMPLE Diesel Logistics cost Battery electric Food retailer Logistics cost Other cost Vehicle Repair and maintenance Financing and insurance Fuel or electricity Transporter profit Battery Driver + admin + others
Slide 47: Volvo Group has the assets to create the most competitive solution for the customer
Volvo Group has the assets to create the most competitive solution for the customer Battery electric VEHICLE REPAIR & MAINTENANCE + BATTERY SYSTEMS FINANCING & INSURANCE + EQUIPMENT-as-a-SERVICE ✓ Uptime ✓ Safe ✓ CO2 free ✓ Cost / km ✓ Productive ✓ Piece of mind Volvo Group Volvo Group Capital Marke
Slide 48: Volvo Group has the assets to create the most competitive solution for the customer
Volvo Group has the assets to create the most competitive solution for the customer VEHICLE REPAIR & MAINTENANCE Battery electric ✓ Application excellence ✓ Service network density 24/7 ✓ Tailor-made for productivity and ✓ Service and uptime contracts uptime ✓ Connected solutions ✓ Modular product s
Slide 49: Step change in our life-cycle revenues
Step change in our life-cycle revenues Diesel Battery electric Life-cycle revenue per unit increases with >50% Volvo Group Volvo Group Capital Markets Day, 2020 49 2020-11-05
Slide 50: Opportunity of a century!
Opportunity of a century! • Step change in market share • Higher life cycle revenue per unit >1.5x for electric vehicles GROWTH > 5x for autonomous Step solutions change • >35% electric vehicle sales in market by 2030 share • Underlying transport demand • EV gives step change in service contract pen
Slide 51: Opportunity of a century!
Opportunity of a century! Stronger growth and resilience Volvo Group Volvo Group Capital Markets Day, 2020 51 2020-11-05