Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — AB Volvo — Q1 2004 Earnings Presentation
18 slides from Volvo AB Class A's earnings presentation, Apr 23, 2004
Slide 1: First Quarter 2004 Press Conference
First Quarter 2004 Press Conference, April 23, 2004
Slide 2: Highlights
Press Conference Q1 2004 1 Highlights First Quarter In Focus Going Forward z Business environment improving globally: z Develop the industrial and commercial structure in China - Strong recovery in North America - Increasing demand in Western Europe z Buses - Strong development in growth markets z U
Slide 3: Net sales, Operating income, Earnings per share
Press Conference Q1 2004 2 Net sales (SEK bn) Europe North 59% America Asia 23% 10% Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 South America Rest of 40.9 44.6 40.5 48.7 45.5 177.6 172.9 171.9 174.8 179.3 3% the world 5% Quarter 12 months rolling Operating income* Earnings per share (SEK M) (SEK) Q1 03 Q2 03 Q3 0
Slide 4: Development of cash conversion cycle
Press Conference Q1 2004 3 Volvo Group Development of cash conversion cycle SEK bn Days 40 90 80 Working capital 35 80 CCC - days 70 30 60 25 55 50 20 40 15 43 30 10 20 5 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2001 2002 2003 2004 AB Volvo 04-04-23
Slide 5: Trucks
Press Conference Q1 2004 4 Trucks First Quarter Net sales Operating income (SEK bn) (SEK M) Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 27.4 29.4 26.9 33.2 31.2 527 1023 944 1457 1476 119.6 116.4 114.9 117 120.8 1.9% 3.5% 3.5% 4.4% 4.7% Quarter 12 months rolling 2190 2730 3001 3951 4
Slide 6: Heavy Duty Truck Market
Press Conference Q1 2004 5 Heavy Duty Truck Market Western Europe Units, Thousands (heavy trucks) 300 Forecast: + 5-6% 250 200 150 100 50 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04E AB Volvo 04-04-23
Slide 7: Volvo Trucks
Press Conference Q1 2004 6 Volvo Trucks Inauguration of Chinese truck plant AB Volvo 04-04-23
Slide 8: Volvo Buses
Press Conference Q1 2004 7 Volvo Buses First Quarter Net sales Operating income* (SEK bn) (SEK M) Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 -83 -89 -93 -96 -47 3.0 3.1 2.8 3.1 2.5 -2.8% -2.9% -3.3% -3.1% -1.8% 13.8 12.8 12.7 12 11.6 -83 -223 -232 -361 -325 Quarter 12 months rolling
Slide 9: Volvo Buses
Press Conference Q1 2004 8 Volvo Buses Three new coaches launched by Silver Bus AB Volvo 04-04-23
Slide 10: Volvo Construction Equipment
Press Conference Q1 2004 9 Volvo Construction Equipment First Quarter Net sales Operating income (SEK bn) (SEK M) Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 4.8 6.3 5.6 6.5 6.1 140 425 210 133 309 21.3 21.4 21.9 23.2 24.5 2.9% 6.8% 3.7% 2.0% 5.0% 677 638 728 908 1077 Quarter 12 mont
Slide 11: Volvo Construction Equipment
Press Conference Q1 2004 10 Volvo Construction Equipment Broadening backhoe loader range - BL60 AB Volvo 04-04-23
Slide 12: Volvo Penta
Press Conference Q1 2004 11 Volvo Penta First Quarter Net sales Operating income (SEK bn) (SEK M) Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 159 212 153 171 188 1.9 2.0 1.8 1.9 2.2 8.3% 10.4% 8.5% 9.2% 8.6% 7.6 7.4 7.5 7.6 7.9 660 647 683 695 724 Quarter 12 months rolling Quarter Ma
Slide 13: Volvo Penta
Press Conference Q1 2004 12 Volvo Penta New industrial engines D16 D9 D7 AB Volvo 04-04-23
Slide 14: Volvo Aero
Press Conference Q1 2004 13 Volvo Aero First Quarter Net sales Operating income (SEK bn) (SEK M) Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 2.2 1.9 1.8 2.1 1.6 -6 11 -2 -47 101 8.6 8.1 8 8 7.3 -0.3% 0.6% -0.1% -2.2% 6.5% -79 -108 -38 -44 63 Quarter 12 months rolling Quarter Margin 1
Slide 15: Volvo Aero
Press Conference Q1 2004 14 Volvo Aero Agreement to sell British Airways’ surplus stock of spare parts AB Volvo 04-04-23
Slide 16: Volvo Financial Services
Press Conference Q1 2004 15 Volvo Financial Services First Quarter New retail financing Operating income and return on equity (SEK bn) (SEK M) Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 5.9 6.1 6.9 8.0 6.0 212 221 242 251 281 26.5 25.7 26.1 26.9 27.0 5.5% 6.6% 9.0% 9.8% 10.2% Quarte
Slide 17: Volvo Financial Services
Press Conference Q1 2004 16 Volvo Financial Services First Quarter - isolated New financing Penetration on new financing 18% 53% 7% Volvo Renault Volvo 19% Mack Volvo CE Trucks Trucks Buses 3% 26% 16% 12% 34% 10% AB Volvo 04-04-23
Slide 18: Summary
Press Conference Q1 2004 17 Volvo Group Summary z Business environment improving globally z Continued top-line growth z Expansion in China z Up-turn management AB Volvo 04-04-23