Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — AB Volvo — Q1 2009 Earnings Presentation
26 slides from Volvo AB Class A's earnings presentation, Apr 24, 2009
Slide 1: First Quarter 2009 Press Conference
First Quarter 2009 Press Conference, April 24, 2009
Slide 2: Group Highlights
Group Highlights First quarter – Rapid decline in sales, - 27%, -42% adjusted for currency – Operating loss SEK 4,528 M – Adjustment of production capacity – SEK 16.6 bn decrease in trade payables – Secured funding of SEK 30 bn Business environment – Western Europe; demand on very low levels – Easte
Slide 3: Volvo Group
Volvo Group Net sales First quarter (SEK bn) Sales, down 27%, -42% adjusted for currency - Europe -38% - North America -11% - Asia -28% - South America -12% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Quarter 77 80 70 78 56 12 Mth. rol. 301 310 311 305 284 Operating income - Lower volumes Operating income - Under
Slide 4: Volvo Group – Sales growth year over year
Volvo Group Sales growth year over year (%) 30% 20% 10% 0% -10% -20% - 27% -30% Fx -40% - 42% -50% Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 FX -15% Sales growth -3% 5% 13% 25% 26% 13% 2% -9% -27% AB Volvo First Quarter 2009 4
Slide 5: Workforce related cost
Workforce related cost Annualized quarterly development Lay-offs: billion SEK 60 • 20,757 employees/consultants noticed in 2008 and 2009; - 5,835 left in 2008 55 - 5,439 left in Q1-09 50 • 9,969 in Sweden 2,613 in France 2,544 in the US 45 5,631 in other countries 20,757 in total 40 Annualized reduc
Slide 6: Working Capital
Working Capital Trade payables, SEK bn • Industrial operating cash flow; 60 negative 15.7 bn in the quarter 50 • Focus on working capital 16.6 - Receivables - 6.1 bn 40 bn - Inventories - 1.5 bn - Payables + 16.6 bn 30 - Other + 2.4 bn 20 Total change +11.4 bn 10 0 Q408 Q109 AB Volvo First Quarter 2
Slide 7: Volvo Group – Net Financial Debt
Volvo Group – Net Financial Debt Industrial Operations Net debt, SEK bn 50,0 63.2% of 45,0 Equity 40,0 39.7% of 49.6% of 35,0 Equity Equity 30,0 25,0 27.4% of 20,0 Equity 15,0 10,0 5,0 0,0 Q408 Q109 Pensions 9,2 9,7 Financial Debt 20,5 35,6 AB Volvo First Quarter 2009 7
Slide 8: Volvo Group Funding
Volvo Group Funding Industrial Operations Q1-09 Cash & Committed Maturity Structure 2009 Facilities 30000 Funding Activities 2009 25000 z Good liquidity 20000 15000 z Funding for 2009 secured 10000 in Q1 5000 z Revolving Credit Facility EUR 0 775 M signed in April 1 1 1 1 1 2 3 4 1 2- h Q Q Q Q Q Q
Slide 9: Trucks
Trucks Net sales Operating income SEK bn SEK M Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Quarter 50,8 52,6 46,2 54,1 37,4 Quarter 4 432 4 825 2 653 257 -2 382 12 Mth. rol. 200 206 207 204 190 12 Mth. rol. 15 914 16 908 16 054 12 167 5 353 Margin 8,7% 9,2% 5,7% 0,5% -6,4% Highlights
Slide 10: Trucks – Net order intake
Trucks – Net order intake 1 Net order intake Q1-09 Q4-08 Change Q1-09 Q1-08 Change Europe 7,494 -1,549 NA 7,494 26,270 -71% North America 2,869 4,037 -29% 2,869 5,680 -49% South America 1,731 1,087 59% 1,731 3,482 -50% Asia 5,712 7,868 -27% 5,712 19,260 -70% Other markets 2,377 2,235 6% 2,377 3,772
Slide 11: Heavy-duty truck market - Europe
Heavy-duty truck market - Europe (EU members + Switzerland and Norway) Units, Thousands (heavy trucks) Modification of definition 350 329 In 1991 (East Germany) and in 2000 (new member states) 319 In 2006 (new member states) 300 256 300 250 200 178 229 2009: down >50% 150 ? 100 116 50 0 90 91 92 93
Slide 12: Heavy-duty truck market – North America
Heavy-duty truck market – North America Units, Thousands (heavy trucks) 400 349 350 308 300 250 225 208 200 194 2009: 171 185 150 down 30-40% 100 122 ? 50 0 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 AB Volvo First Quarter 2009 12
Slide 13: Trucks
Trucks Volvo Trucks Renault Trucks z Adapting production capacity z Short-term weeks implemented for both z New products launched blue and white collar employees - New Euro V engines – More power less z Further adjustment of production rates fuel and emissions - World’s strongest truck – FH16 700hp
Slide 14: New Euro V engines introduced
New Euro V engines introduced Much cleaner – more power, less fuel AB Volvo First Quarter 2009 14
Slide 15: Construction Equipment
Construction Equipment Net sales Operating income SEK bn SEK M Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Quarter 1 301 1 629 134 -1 256 -1 395 Quarter 15,1 16,7 13,2 11,2 8,2 12 Mth. rol. 4 573 4 804 4 099 1 808 -888 12 Mth. rol. 58 60 61 56 49 Margin, % 8,6% 9,7% 1,0% -11,2 -17,1
Slide 16: Construction Equipment
Construction Equipment The new Volvo ECR305CL AB Volvo First Quarter 2009 16
Slide 17: Buses
Buses Net sales Operating income SEK bn SEK M Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Quarter -122 46 -72 72 -95 Quarter 3,6 4,3 3,8 5,6 4,0 12 Mth. rol. 19 -57 -56 -77 -50 12 Mth. rol. 16,5 16,7 16,9 17,4 17,7 Margin -3,3% 1,1% -1,9% 1,3% -2,4% Highlights In Focus z Bus market m
Slide 18: Buses
Buses Automotive Technology Award Volvo 9400 6x2 in India AB Volvo First Quarter 2009 18
Slide 19: Volvo Penta
Volvo Penta Net sales Operating income SEK bn SEK M Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Quarter 318 458 198 -46 -97 Quarter 3,2 3,3 2,7 2,4 2,0 12 Mth. rol. 1 198 1 212 1 152 928 513 12 Mth. rol. 11,9 12 12 11,5 10,4 Margin 10,1% 13,8% 7,4% -2,0% -4,8% Highlights In Focus z S
Slide 20: Volvo Penta Product News
Volvo Penta Product News AB Volvo First Quarter 2009 20
Slide 21: Volvo Aero
Volvo Aero Net sales Operating income SEK bn SEK M Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Quarter 136 4 78 141 83 Quarter 1,9 1,7 1,7 2,4 2,0 12 Mth. rol. 573 484 414 359 306 12 Mth. rol. 7,6 7,4 7,2 7,6 7,8 Margin 7,3% 0,2% 4,7% 5,9% 4,1% Highlights In Focus • Decreasing air tr
Slide 22: Volvo Aero
Volvo Aero Lufthansa – launch customer for Bombardier Cseries aircraft AB Volvo First Quarter 2009 22
Slide 23: Financial Services
Financial Services New retail financing Operating income and return on equity SEK bn SEK M Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Quarter 9,9 11,8 10,9 11,9 7,5 Quarter 381 387 391 238 -396 12 Mth. rol. 42,6 43,7 44,8 44,5 42,1 ROE 16,2% 15,4% 13,9% 12,6% 5,0% Highlights In Focu
Slide 24: Financial Services
Financial Services Total managed assets Penetration on new financing Managed assets in: (SEK bn) Volvo Aero & Volvo Penta (SEK M) North Volvo Volvo Renault Mack W Europe International Buses America CE Trucks Trucks Trucks Volvo Aero Volvo Penta Q108 45 36 13 Q108 31% 27% 9% 15% 17% Q108 973 154 Q109
Slide 25: Group Summary
Group Summary Earnings per share SEK First quarter • Sales down 27%, -42% adjusted for FX • Significant production cut backs • Operating loss • Substantial decrease in trade payables • Negative cash flow Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 • Good liquidity position Quarter 2,07 2,53 0,98 -0,67 -2,09 12 Mt
Slide 26: First Quarter 2009
VOLVO First Quarter 2009