Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — AB Volvo — Q3 2004 Earnings Presentation
15 slides from Volvo AB Class A's earnings presentation, Oct 22, 2004
Slide 1: Third Quarter 2004 Conference Call
Third Quarter 2004 Conference Call, October 22, 2004
Slide 2: Highlights
Conference Call Q3 2004 1 Highlights Third Quarter In Focus Going Forward z Strong sales growth 16% z Manage high levels of production and supply chain - High capacity utilization - Good order intake z Price management z Product renewal z Henlys resolution: - Acquisition of Prevost/Nova z Cash flow
Slide 3: Net sales, Operating income, Earnings per share
Conference Call Q3 2004 2 Net sales (SEK bn) Europe North 53% America Asia 28% 10% Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 South America Rest of 40.5 48.7 45.5 53.0 45.9 171.9 174.8 179.3 187.8 193.1 4% the world 5% Quarter 12 months rolling Operating income* Earnings per share (SEK M) (SEK) 7.0% Q3 03 Q4 03
Slide 4: Consolidated Results Third Quarter 2004
Conference Call Q3 2004 3 Consolidated Results Third Quarter 2004 SEK M 2004 2003 Net Sales 45,870 40,511 Adjusted for currency +16% Gross income 10,291 7,983 22.4% 19.7% R&D expenses (1,737) (1,683) Selling expenses (4,320) (3,960) Administrative expenses (1,212) (1,285) Other op. Income & expenses
Slide 5: Development of cash conversion cycle
Conference Call Q3 2004 4 Volvo Group Development of cash conversion cycle SEK bn Days 40 90 80 Working capital 35 80 CCC - days 70 30 58 60 25 47 50 20 40 15 30 10 20 5 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2001 2002 2003 2004 AB Volvo 04-10-22
Slide 6: Trucks
Conference Call Q3 2004 5 Trucks Third Quarter Net sales Operating income (SEK bn) (SEK M) 6.9% Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 26.9 33.2 31.2 34.9 31.3 944 1457 1476 2287 1768 114.9 117.0 120.8 126.3 130.6 3.5% 4.4% 4.7% 6.6% 5.7% 3001 3951 4900 6164 6988 Quarter 12 mont
Slide 7: Heavy Duty Truck Market Europe
Conference Call Q3 2004 6 Heavy Duty Truck Market Europe (EU members + Switzerland and Norway) 300 Units, Thousands Forecasts: (heavy trucks) 2004 2005 256 254 +5% 250 230 246 200 188 214 171 150 170 122 100 116 50 Western Europe Europe Forecast 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01
Slide 8: Heavy Duty Truck Market North America
Conference Call Q3 2004 7 Heavy Duty Truck Market North America Units, Thousands (heavy trucks) 309 Forecasts: 300 2005 +15-20% 2004 250 240 236 200 174 199 179 150 170 134 122 100 50 Forecast 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04E '05E AB Volvo 04-10-22
Slide 9: Volvo Buses
Conference Call Q3 2004 8 Volvo Buses Third Quarter Net sales Operating income* (SEK bn) (SEK M) Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 -93 -96 -47 91 -26 2.8 3.1 2.5 3.6 2.9 -3.3% -3.1% -1.8% 2.5% -0.9% 12.7 12.0 11.6 12.1 12.2 -232 -361 -325 -145 -78 Quarter 12 months rolling
Slide 10: Volvo Construction Equipment
Conference Call Q3 2004 9 Volvo Construction Equipment Third Quarter Net sales Operating income (SEK bn) (SEK M) Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 5.6 6.5 6.1 8.1 6.4 210 133 309 648 349 21.9 23.2 24.5 26.4 27.1 3.7% 2.0% 5.0% 8.0% 5.5% 728 908 1077 1300 1439 Quarter 12 mon
Slide 11: Volvo Penta
Conference Call Q3 2004 10 Volvo Penta Third Quarter Net sales Operating income (SEK bn) (SEK M) Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 153 171 188 307 207 1.8 1.9 2.2 2.6 2.1 8.5% 9.2% 8.6% 11.9% 9.7% 7.5 7.6 7.9 8.4 8.7 683 695 724 819 873 Quarter 12 months rolling Quarter Mar
Slide 12: Volvo Aero
Conference Call Q3 2004 11 Volvo Aero Third Quarter Net sales Operating income (SEK bn) (SEK M) Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 1.8 2.1 1.6 1.9 1.7 -2 -47 101 173 96 8.0 8.0 7.3 7.4 7.2 -0.1% -2.2% 6.5% 9.2% 5.8% -38 -44 63 225 323 Quarter 12 months rolling Quarter Margin
Slide 13: Volvo Financial Services
Conference Call Q3 2004 12 Volvo Financial Services Third Quarter New retail financing Operating income and return on equity (SEK bn) (SEK M) Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 6.9 8.0 6.0 8.2 7.4 242 251 281 307 343 26.1 26.9 27.0 29.1 29.6 9.0% 9.8% 10.2% 10.4% 9.7% Quarte
Slide 14: Summary
Conference Call Q3 2004 13 Volvo Group Summary z Strong sales development z Finalizing merger phase in Trucks z Henlys resolution z Significant profitability improvement AB Volvo 04-10-22
Slide 15: Conference Call Q3 2004
Conference Call Q3 2004 14 AB Volvo 04-10-22