Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — Q4 2001 Earnings Presentation
22 slides from Volvo AB Class A's earnings presentation, Feb 8, 2002
Slide 1: Fourth Quarter and Full Year 2001 Telephone Conference
Volvo Group Fourth Quarter and Full Year 2001 Telephone conference February 8, 2002 AB Volvo Teleq4/020208/
Slide 2: Highlights
Volvo Group Highlights 1 Fourth Quarter In Focus Going Forward l Business conditions Short Term - Recession in North America continues - Downturn in Europe l Production start of FH/ FM - Slow recovery in air traffic - deliveries from end of Q1 l Cyclical adjustments and structural changes l Adapting
Slide 3: Sales by Market Area
Volvo Group Sales by Market Area 2 Fourth Quarter and Full Year 2001 Percent of Fourth Quarter Change Full Year Change SEK M Total 2001 2000 % 2001 % Western Europe 53 25,702 17,927 43 93,147 50 Eastern Europe 5 2,429 1,321 84 6,383 74 North America 26 12,454 9,091 37 54,630 44 South America 3 1,473
Slide 4: Sales by Business Area
Volvo Group Sales by Business Area 3 Fourth Quarter and Full Year 2001 Percent of Total Fourth Quarter Change Full Year Change SEK M % 2001 2000 % 2001 % Global Trucks 69 33,696 17,651 91 120,140 93 Buses 8 4,044 4,910 (18) 16,675 (3) Construction Equipm. 10 4,992 5,102 (2) 21,135 6 Penta 4 1,894 1,
Slide 5: Operating Income by Business Area
Volvo Group 4 Operating Income by Business Area Fourth Quarter Change Full Year Change SEK M 2001 2000 % 2001 % Global Trucks 591 685 (14) 1040 (26) Buses (231) 162 na (524) na Construction Equipm. 136 261 (48) 891 (44) Penta 128 63 103 658 36 Aero 89 161 (45) 653 5 Financial Services 80 151 (47) 32
Slide 6: Restructuring Costs Q4 - 2001
Volvo Group Restructuring Costs Q4 - 2001 5 Building a competitive position and adapting to market conditions Global Trucks • Early retirements in Renault Trucks SEK 507M • Peru Plant closure • Dealer restructuring (US) Buses • Roswell closure or divestment SEK 350M Construction Equipment • Redundan
Slide 7: Full Year 2001 Consolidated Results
Volvo Group Full Year 2001 Consolidated Results 6 Fourth Quarter Change Full year Change SEK M 2001 2000 % 2001 2000 % Net sales 48,633 33,237 46 180,615 120,392 50 Gross income 8,312 6,665 25 31,138 23,261 34 R&D expenses (1,361)¹ (1,291) (5,391)2 (4,876) Selling expenses (4,242) (2,611) (14,663) (
Slide 8: Full Year 2001 - Consolidated Results
Volvo Group Full Year 2001 - Consolidated Results 7 Full Year Adjustments Normalized Change SEK M 2001 2000 2001 2000 2001 2000 % Sales 180,615 120,392 180,615 120,392 50 Operating income (676) 6,668 1,013¹ (1994)² 337 4,674 Financial Net (1,190) (422) (1,190) (422) Income after fin. items (1,866) 6
Slide 9: Global Trucks
Volvo Group Volvo Global Trucks 8 Fourth Quarter and Full Year 2001 Fourth Quarter Full year 2001 SEK M 2001 2000 Change 2001 Change 1) Volume (units) 42,085 52,511 (20%) 155,311 (17%) Sales 33,696 17,651 91% 120,140 93% Operating income 591 685 (14%) 1,040 (26%) Operating margin 1.8% 3.9% (2.1) 0.9
Slide 10: Volvo, Renault and Mack Trucks Deliveries
Volvo Group Volvo, Renault and Mack Trucks 9 Deliveries Jan - Dec Change 2001 2000 % Units Total Europe 98 041 108 143 (9) of which: Western Europe 90 460 101 098 (11) Eastern Europe 7 581 7 045 8 North America 34 645 57 933 (40) South America 5 789 5 104 13 Asia 6 603 6 732 (2) Net orders : -12% Re
Slide 11: Market Development - Heavy Trucks
Volvo Group Market Development - Heavy Trucks 10 Western Europe Units Thousands 246 250 237 Registrations 236 200 208 150 100 98 99 '00 '01 '02 AB Volvo Teleq4/020208/
Slide 12: Market Development - Class 8
Volvo Group Market Development - Class 8 11 NAFTA Units Thousands 309 300 Retail sales 257 250 255 200 170 150 100 98 99 '00 '01 '02 AB Volvo Teleq4/020208/
Slide 13: Integration Volvo Trucks / Renault V.I. / Mack
Volvo Group Integration Volvo Trucks / Renault V.I. / Mack 12 First Year • Key decisions: - Vehicle / Engine Plans - Industrial restructuring in North America • First years synergies - on track and contributing positively • New organization structure for trucks - Based on distinct and powerful brand
Slide 14: Product Launches 2001
Volvo Group Product Launches 2001 13 Volvo Renault V.I. Mack FH/FM Magnum Granite The new Volvo FH The new Magnum The new construction truck with with: with: • New exterior & interior design • New standard cab • Conventional chassis • Cab exterior and interior layouts • Front axle forward - Bumper w
Slide 15: Construction Equipment
Volvo Group Volvo Construction Equipment 14 Fourth Quarter and Full Year 2001 Fourth Quarter Full Year SEK M 2001 2000 Change, % 2001 Change, % Sales 4,992 5,102 (2) 21,135 6 Operating income 136 261 (48) 891 (44) Operating margin 2.7% 5.1% (2.4) 4.2% (3.8) ROC, 12M 8.6% 16.2% (7.6) 8.6% (7.6) Highl
Slide 16: Volvo Compact Line-Up
Volvo Group 15 Volvo Compact Line-Up AB Volvo Teleq4/020208/
Slide 17: Compact Equipment Markets
Source: Off-Highway Research Volvo Group Compact Equipment Markets 16 ( %, Units 2000 ) 1% 23% 8% • Volvo CE has through recent North American 11% acquisitions and internal Market 2000: development anchored the 125,000 Units compact equipment business 57% • Full product range key for 10% dealer comm
Slide 18: Buses
Volvo Group Volvo Buses 17 Fourth Quarter and Full Year 2001 Fourth Quarter Full Year SEK M 2001 2000 Change, % 2001 Change, % Volume (units) 2,791 2,975 (6) 9,953 (10) Sales 4,044 4,910 (18) 16,675 (3) Operating income (231) 162 na (524) na Operating margin (5.7)% 3.3% (9.0) (3.1)% (5.7) ROC, 12M (
Slide 19: Penta
Volvo Group Volvo Penta 18 Fourth Quarter and Full Year 2001 Fourth Quarter Full Year SEK M 2001 2000 Change, % 2001 Change, % Sales 1,894 1,679 13 7,380 12 Operating income 128 63 103 658 36 Operating margin 6.8% 3.8% 3.0 8.9% 1.6 ROC, 12M 57.9% 43.3% 14.6 57.9% 14.6 Highlights In Focus • Increased
Slide 20: Aero
Volvo Group Volvo Aero 19 Fourth Quarter and Full Year 2001 Fourth Quarter Full Year SEK M 2001 2000 Change, % 2001 Change, % Sales 3,123 2,882 8 11,784 10 Operating income 89 161 (45) 653 5 Operating margin 2,8% 5,6% (2.8) 5.5% (0.3) ROC, 12M excl. Aero Serv. 20,5% 25,2% (4.7) 20,5% (4.7) Highlight
Slide 21: Financial Services
Volvo Group Volvo Financial Services 20 Fourth Quarter and Full Year 2001 Fourth Quarter Full Year SEK M 2001 2000 Change, % 2001 Change,% Operating income 80 151 (47) 325 (78) ROE 4.2% 14.1% (9.9) 4.2% (9.9) Assets, MSEK 73,528 66,522 11 73,528 11 Equity ratio 10.3 11.5 (1.2) 10.3% (1.2) Highlights
Slide 22: Summary
Volvo Group Summary 21 • Business conditions - Continued recession in North America - Downturn in Europe • Adaptation to the business cycle - Employees reduced by 5,700 - Temporaries and consultants reduced by 1,400 • Positive effect from synergies • Strong cash flow in Q4 • Extensive product renewa