Slide 1: Second Quarter 2006 Press Conference
Second Quarter 2006 Press Conference, July 21, 2006
Slide 2: Highlights
Press Conference Q2 2006 1 Highlights Second Quarter In Focus Going Forward z Business environment z Manage product- and production - European market continues to improve change-over - Continued high levels in North America z Capitalize on new products z Sales growth in all Business Areas z Profitab
Slide 3: Net sales, Operating income, Earnings per share
Press Conference Q2 2006 2 Net sales (SEK bn) Europe North 53% (51) America Asia 29% (29) 8% (10) South Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 America Rest of 61,1 52,5 65,3 60,2 65,5 216,4 222,9 231,2 239,1 243,5 5% (5) the world 5% (5) Quarter 12 months rolling Operating income Earnings per share (SEK M) (
Slide 4: Trucks
Press Conference Q2 2006 3 Trucks Second Quarter Net sales Operating income (SEK bn) (SEK M) Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 41,1 34,9 43,4 40,5 43,5 3402 2496 2742 3539 4029 147,8 151,5 155,4 159,9 162,3 8,3% 7,1% 6,3% 8,7% 9,3% 11598 12287 11717 12179 12806 Quarter 12 m
Slide 5: Heavy Duty Truck Market - Europe
Press Conference Q2 2006 4 Heavy Duty Truck Market Europe (EU members + Switzerland and Norway) Units, Thousands (heavy trucks) 2006 forecast 300 Modification of definition 280-290,000 In 1991 (East Germany) and in 2000 (new member states) 277 250 256 230 200 188 171 179 150 122 100 116 50 Europe 0
Slide 6: Heavy Duty Truck Market - North America
Press Conference Q2 2006 5 Heavy Duty Truck Market North America Units, Thousands (heavy trucks) 2006 forecast 350-360 000 350 308/329 330-340 000 308/309 300 225/236 250 200 174 150 171/171 100 122 50 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 North America excl. Exports
Slide 7: Volvo Trucks: New distribution range for Europe
Press Conference Q2 2006 6 Volvo Trucks New distribution range for Europe AB Volvo 2006-07-21
Slide 8: Renault Trucks: New distribution range
Press Conference Q2 2006 7 Renault Trucks New distribution range AB Volvo 2006-07-21
Slide 9: Volvo Buses
Press Conference Q2 2006 8 Volvo Buses Second Quarter Net sales Operating income (SEK bn) (SEK M) Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 160 144 134 131 179 4,2 3,9 5,3 4,2 4,5 3,8% 3,7% 2,5% 3,1% 4,0% 14,0 15,0 16,6 17,6 17,9 371 525 470 569 588 Quarter 12 months rolling Quarte
Slide 10: Volvo Buses: The new 7700
Press Conference Q2 2006 9 Volvo Buses The new 7700 AB Volvo 2006-07-21
Slide 11: Volvo Construction Equipment
Press Conference Q2 2006 10 Volvo Construction Equipment Second Quarter Net sales Operating income (SEK bn) (SEK M) Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 9,6 7,8 10,3 9,4 11,0 937 521 736 829 1239 31,2 32,4 34,8 37,0 38,4 9,8% 6,7% 7,1% 8,9% 11,3% 2290 2441 2752 3023 3325 Quart
Slide 12: Volvo Construction Equipment: 50,000th unit
Press Conference Q2 2006 11 Volvo Construction Equipment The 50,000th unit rolls off the Volvo CE production line AB Volvo 2006-07-21
Slide 13: Volvo Penta
Press Conference Q2 2006 12 Volvo Penta Second Quarter Net sales Operating income (SEK bn) (SEK M) Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 2,6 2,3 2,4 2,7 2,8 302 230 205 222 347 9,3 9,5 9,8 10,1 10,3 11,5% 9,9% 8,4% 8,2% 12,2% 953 976 943 959 1004 Quarter 12 months rolling Quart
Slide 14: Volvo Penta: Product news
Press Conference Q2 2006 13 Volvo Penta Product news D3-190 IPS600 D6-435 AB Volvo 2006-07-21
Slide 15: Volvo Aero
Press Conference Q2 2006 14 Volvo Aero Second Quarter Net sales Operating income (SEK bn) (SEK M) Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 1,8 2,0 2,1 2,2 1,9 168 239 219 206 150 6,9 7,2 7,5 8,1 8,2 9,4% 12,0% 10,4% 9,5% 7,9% 491 630 836 832 814 Quarter 12 months rolling Quarter M
Slide 16: Volvo Aero: Ariane ECA rocket
Press Conference Q2 2006 15 Volvo Aero Thanks to the new Ariane 5 ECA rocket, Arianespace’s order bookings have never been larger AB Volvo 2006-07-21
Slide 17: Volvo Financial Services
Press Conference Q2 2006 16 Volvo Financial Services Second Quarter New retail financing Operating income and return on equity (SEK bn) (SEK M) Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 8,8 7,9 9,3 7,8 9,6 483 484 479 571 626 31 31,4 33 33,8 34,6 14,3% 15,4% 15,3% 14,1% 15,6% Quart
Slide 18: Volvo Financial Services: Second Quarter - isolated
Press Conference Q2 2006 17 Volvo Financial Services Second Quarter - isolated New financing Penetration on new financing 5% 9% 22% 47% Volvo Renault Volvo Volvo CE Mack Trucks Trucks Buses 16% 29% 23% 15% 18% 11% AB Volvo 2006-07-21
Slide 19: Volvo Group Summary
Press Conference Q2 2006 18 Volvo Group Summary z Growth in all Business Areas z Operating margin at all-time high 10.0% z In focus: - Finalize transition into a more efficient industrial and product structure -Capitalize on a new generation of competitive products AB Volvo 2006-07-21