Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — AB Volvo — Q4 2002 Earnings Presentation
19 slides from Volvo AB Class A's earnings presentation, Feb 7, 2003
Slide 1: Fourth Quarter and Full Year 2002
Fourth Quarter and Full Year 2002 Conference Call, February 7, 2003
Slide 2: Highlights
Conference Call Q4 2002 Highlights 1 Fourth Quarter and Full Year In Focus Going Forward z Business environment - Low demand in N. America z Business Cycle Management - Continued downward trend in Europe z Cash flow z Strengthening the N. American Truck business - Successful Mack production transfer
Slide 3: Sales by Market Area
Conference Call Q4 2002 Sales by Market Area 2 Fourth Quarter 2002 Fourth Quarter Full Year SEK M Split 2002 2001 Change 2002 2001 Change Western Europe 55% 25,272 25,702 -2% 92,331 93,147 -1% Eastern Europe 5% 2,382 2,429 -2% 7,437 6,383 17% North America 24% 10,800 12,454 -13% 50,206 54,630 -8% So
Slide 4: Sales by Business Area
Conference Call Q4 2002 Sales by Business Area 3 Fourth Quarter 2002 Fourth Quarter Full Year SEK M Split 2002 2001 Change 2002 2001 Change Trucks 68% 31,133 32,580 -4% 118,752 116,568 2% Buses 8% 3,852 4,044 -5% 14,035 16,675 -16% Construction Equipm. 12% 5,287 4,992 6% 21,012 21,135 -1% Volvo Pent
Slide 5: Operating Income by Business Area
Conference Call Q4 2002 Operating Income by Business Area 4 Fourth Quarter 2002 Fourth Quarter Full Year SEK M 2002 2001 2002 2001 Trucks 507 591 1,189 1,040 1) Buses 33 (231) (94) (524) Construction Equipm. (47) 136 406 891 Volvo Penta 159 128 647 658 Volvo Aero (41) 89 5 653 Financial Services 129
Slide 6: Development of Cash Conversion Cycle
Conference Call Q4 2002 5 Development of Cash Conversion Cycle 2001-2002, excl. Sales Finance Volvo Group, excl Sales Finance MSEK Cash Conversion Cycle Days 40 000 90 80 35 000 80 70 30 000 73 80 67 60 25 000 50 20 000 53 53 57 40 15 000 30 10 000 20 5 000 10 0 0 01q1 01q2 01q3 01q4 02q2 02q3 02q4
Slide 7: Cash Flow Development
Conference Call Q4 2002 Cash Flow Development 6 Fourth Quarter 2002 6 5.0 5 Operating cash flow* 4 3 2 b SEK 1 0 -1 -2 -3 -4 Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- 2000 2000 2000 2000 2001 2001 2001 2001 2002 2002 2002 2002 * Cash-flow after net investments excluding: Investments in shares,
Slide 8: Consolidated Results
Conference Call Q4 2002 Consolidated Results 7 Fourth Quarter 2002 Fourth Quarter Full Year SEK M 2002 2001 Change 2002 2001 Change Net Sales 45,877 48,633 -6% 177,080 180,615 -2% Gross income 8,279 8,312 0% 31,627 31,138 2% R&D expenses (1,656) (1,361) (5,869) (5,391) Selling expenses (4,197) (4,24
Slide 9: Reconciliation of Profit and Loss statement
Conference Call Q4 2002 Reconciliation of Profit and Loss statement 8 Fourth Quarter 2002 Fourth Quarter Reported Adjustments Normalized SEK M 2002 2001 2002 2001 2002 2001 Change Sales 45,877 48,633 45,877 48,633 -6% 1) 2) Operating income 823 (364) (13) 957 810 593 37% Financial net (86) (183) (86
Slide 10: Trucks
Conference Call Q4 2002 Trucks 9 Fourth Quarter Fourth Quarter Full Year SEK M 2002 2001 Change 2002 Change Volume (units) 42,515 42,085 1% 157,133 1% Sales 31,133 32,580 -4% 118,752 2% Operating income 507 591 -14% 1189 14% 1) Operating margin % 1.6% 1.8% (0.2) 1.0% 0.1 Highlights In Focus z High d
Slide 11: Heavy Duty Truck Market – North America
Conference Call Q4 2002 10 Heavy Duty Truck Market North America Units, Thousands (heavy trucks) 300 250 200 150 100 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 AB Volvo 2003-02-07, Slide 10
Slide 12: Heavy Duty Truck Market – Western Europe
Conference Call Q4 2002 11 Heavy Duty Truck Market Western Europe Units, Thousands (heavy trucks) 250 225 200 175 150 125 100 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 AB Volvo 2003-02-07, Slide 11
Slide 13: Volvo Buses
Conference Call Q4 2002 Volvo Buses 12 Fourth Quarter Fourth Quarter Full Year SEK M 2002 2001 Change 2002 Change Volume (units) 2,752 2,791 -1% 9,059 -9% Sales 3,852 4,044 -5% 14,035 -16% Operating income 33 (231) n.a. (94) n.a. Operating margin % 0.9% -5.7% 6.6 -0.7% 2.4 Highlights In Focus z Cont
Slide 14: Volvo Construction Equipment
Conference Call Q4 2002 Volvo Construction Equipment 13 Fourth Quarter Fourth Quarter Full Year SEK M 2002 2001 Change 2002 Change Sales 5,287 4,992 6% 21,012 -1% Operating income (47) 136 n.a 406 -54% Operating margin % -0.9% 2.7% (3.6) 1.9% (2.3) Highlights In Focus z Sales up 6% due to increased
Slide 15: Volvo Penta
Conference Call Q4 2002 Volvo Penta 14 Fourth Quarter Fourth Quarter Full Year SEK M 2002 2001 Change 2002 Change Sales 1,723 1,894 -9% 7,669 4% Operating income 159 128 na 1) 647 na 1) Operating margin % 9.2% 6.8% na 1) 8.4% na 1) Highlights In Focus z Strengthened market shares z Product renewal z
Slide 16: Volvo Aero
Conference Call Q4 2002 Volvo Aero 15 Fourth Quarter Fourth Quarter Full Year SEK M 2002 2001 Change 2002 Change Sales 2,053 3,123 -34% 8,837 -25% Operating income (41) 89 n.a. 5 -99% Operating margin % -2.0% 2.8% (4.8) 0.1% (5.4) Highlights In Focus z Air traffic lower than 2000. No recovery in sig
Slide 17: Volvo Financial Services
Conference Call Q4 2002 Volvo Financial Services 16 Fourth Quarter Fourth Quarter Full Year SEK M 2002 2001 Change 2002 Change Operating income 129 80 61% 490 51% ROE % 1) 4.8% 4.2% 0.6% 4.8% 0.6 Assets, MSEK 69,364 73,528 -5.7% 69,364 -5.7% Equity ratio 10.8% 10.3% 0.5 10.8% 0.5 Highlights In Focus
Slide 18: Volvo Group Summary
Conference Call Q4 2002 17 Volvo Group Summary z 2002 - a challenging year - Difficult business climate - Major product launches / production changeovers - Structural changes z Strong cash flow and EPS development z Proposed dividend: SEK 8.00 AB Volvo 2003-02-07, Slide 17
Slide 19: Conference Call Q4 2002
Conference Call Q4 2002 18 AB Volvo 2003-02-07, Slide 18