Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — H1 2001 Earnings Presentation
18 slides from Volvo AB Class A's earnings presentation, Jul 24, 2001
Slide 1: First Six Months 2001 Telephone conference
Volvo Group First Six Months 2001 Telephone conference July 24, 2001 AB Volvo Telekonf-Q2/010724/
Slide 2: Highlights
Volvo Group Highlights 1 Second Quarter In Focus Going Forward l Business conditions Short Term - North America continues to be weak - Downturn in Europe l Adapting to market cyclicality - Personnel reductions l Continued solid development within - Inventory corrections Penta and Aero - Focus on cas
Slide 3: Sales by Market Area
Volvo Group Sales by Market Area 2 First Six Months 2001 Percent of Second Quarter Change First Six Months Change SEK M Total 2001 2000 % 2001 % Western Europe 50 23,624 15,381 54 47,321 55 Eastern Europe 3 1,427 852 67 2,626 63 North America 33 15,354 10,573 45 28,795 46 South America 4 1,727 1,181
Slide 4: Sales by Business Area
Volvo Group Sales by Business Area 3 First Six Months 2001 Second Quarter First Six Months Percent of Total Change Change SEK M % 2001 2000 % 2001 % Global Trucks 64 30,128 15,781 91 60,090 94 Buses 11 4,915 4,556 8 8,630 3 Construction Equipm. 13 6,067 5,438 12 10,755 7 Marine & Ind. Power Sys. 4 1
Slide 5: Operating Income by Business Area
Volvo Group Operating Income by Business Area 4 First Six Months 2001 Percent of Total Second Quarter Change First Six Months Change SEK M % 2001 2000 % 2001 % Global Trucks 30 639 31 na 789 na Buses (25) 180 na (108) na Construction Equipm. 19 408 740 (45) 489 (53) Marine & Ind. Power Sys. 10 222 1
Slide 6: First Six Months 2001 Consolidated Results
Volvo Group First Six Months 2001 Consolidated Results 5 Second Quarter Change First Six Months Change SEK M 2001 2000 % 2001 2000 % Net sales 47,098 30,970 52 90,848 59,244 53 Gross income 8,211 6,064 35 15,725 11,510 37 R&D expenses (1,357)º (1,281) (2,751)¹ (2,463) Selling expenses (3,599) (2,264
Slide 7: Global Trucks
Volvo Group Volvo Global Trucks 6 First Six Months 2001 Second Quarter First Six Months SEK M 2001 2000¹ Change, % 2001 Change, % Volume (units) 39,945 47,861 (17) 82,084 (14) Sales 30,128 30,354 (1) 60,090 0 Operating income 639² 205 212 789 (49) Operating margin 2.1% 0.7% 1.4 1.3 (1.3) ROC, 12M 0.
Slide 8: Volvo Global Trucks Deliveries
Volvo Group 7 Volvo Global Trucks Deliveries January - June Change Units 2001 2000¹ % Total Europe 52,262 53,596 (2) of which: Western Europe 48,783 50,431 (3) Eastern Europe 3,479 3,165 10 North America 19,898 32,480 (39) South America 2,986 2,232 34 Asia 2,230 2,912 (23) Rest of the world 4,708 3,
Slide 9: Monthly Order Intake vs. Build Rate
Volvo Group Monthly Order Intake vs. Build Rate 8 Heavy Trucks in North America Units 40 000 Market Market situation situation first first 66 months months Industry Build Net Order Intake 35 000 •• Industry Industry build build rate rate slightly slightly above above order order intake intake 30 000
Slide 10: Global Trucks Profit Improvement Program, Phase II
Volvo Group Volvo Global Trucks 9 Profit Improvement Program, Phase II • Price management implementation - Mack, Renault V.I. , Volvo Trucks and Parts • Decisive line rate and workforce reduction program - North America and Europe • Distribution efficiency program - North America and Europe (Volvo T
Slide 11: Activity List First Days: Integration Mack / Renault V.I. / Volvo Trucks
Volvo Group Activity List First 200 Days 10 Integration Mack / Renault V.I. / Volvo Trucks First 100 days Second 100 days þ Secure Start-up Capturing þ Developed a Strategic Core Project Program • Financial, legal and operational control • North American and European Optimization þ Implement Global
Slide 12: Global Trucks Summary
Volvo Group Volvo Global Trucks 11 Summary •• Integration Integrationwork workrunning runningaccording accordingto toplan plan •• The TheNorth NorthAmerican Americanmarket marketdownturn downturnlevelling levellingoff off---- at ataalow lowlevel. level. •• Downturn DownturnininNorth NorthAmerica Ame
Slide 13: Aero
Volvo Group Volvo Aero 12 First Six Months 2001 Second Quarter First Six Months SEK M 2001 2000 Change, % 2001 Change, % Sales 3,060 2,731 12 5,667 13 Operating income 286¹ 278 3 446 15 Operating margin 9.3% 10.2% (0.9) 7.9% 0.2 ROC, 12M excl. Aero Serv. 21.5% 28.7% (7.2) 21.5% (7.2) Highlights In F
Slide 14: Construction Equipment
Volvo Group Volvo Construction Equipment 13 First Six Months 2001 Second Quarter First Six Months SEK M 2001 2000 Change, % 2001 Change, % Sales 6,067 5,438 12 10,755 7 Operating income 408¹ 740 (45) 489 (53) Operating margin 6.7% 13.6% (6.9) 4.5% (5.9) ROC, 12M 11.0% 19.2% (8.2) 11.0% (8.2) Highlig
Slide 15: Buses
Volvo Group Volvo Buses 14 First Six Months 2001 Second Quarter First Six Months SEK M 2001 2000 Change, % 2001 Change, % Volume (units) 2,727 2,778 (2) 4,844 (10) Sales 4,915 4,556 8 8,630 3 Operating income (25)¹ 180 na (108) na Operating margin (0.5%) 4.0% (4.5) (1.3%) (3.8) ROC, 12M 0.6% 6.1% (5
Slide 16: Penta
Volvo Group Volvo Penta 15 First Six Months 2001 Second Quarter First Six Months SEK M 2001 2000 Change, % 2001 Change, % Sales 1,976 1,725 15 3,712 12 Operating income 222¹ 197 13 389 30 Operating margin 11.2% 11.4% (0.2) 10.5 1.4 ROC, 12M 47.8% 39.6% 8.2 47.8% 8.2 Highlights In Focus • Strong sale
Slide 17: Financial Services
Volvo Group Volvo Financial Services 16 First Six Months 2001 Second quarter Six months SEK M 2001 2000 Change 2001 Change Operating income 63 678¹ (91%) 176 (84%) ROE 5.7% 12.4% (6.7) Assets, MSEK 70,057 58,940 19% Equity ratio 10.7% 12.8% (2.1) Highlights In focus • Stabilisation of US truck portf
Slide 18: Summary
Volvo Group Summary 17 l Business conditions - North America continues to be weak - Downturn in Europe l Cyclical adjustments l Continued solid development within Penta and Aero l MMC - Transaction completed / Payment received l Global Trucks - Integration proceeding as schedule - Product platform d