Slide 1: First Quarter 2003 Conference Call
First Quarter 2003 Conference Call, April 28, 2003
Slide 2: Highlights
Conference Call Q1 2003 1 Highlights First Quarter In Focus Going Forward z Uncertain business climate z Readiness to adapt to demand changes z Strong earnings improvement z Continued truck integration - Improved Truck result in Europe - Reduced losses in N. America z Cash flow - Volvo CE z Continue
Slide 3: Net sales, Operating income, Earnings per share
Conference Call Q1 2003 2 Net sales (SEK bn) Europe North 62% America Asia 23% 7% Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 South 40.4 49.3 41.5 45.9 40.9 America Rest of 177.3 179.4 179.8 177.1 177.6 2% the world 6% Quarter 12 months rolling Operating income Earnings per share (SEK M) (SEK) Q1 02 Q2 02 Q3 02 Q
Slide 4: Cash conversion cycle and cash flow development
Conference Call Q1 2003 3 Development of cash conversion cycle (Days) Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 70 53 67 51 55 Cash flow development (SEK bn) Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 -2.7 3.4 -0.6 5.0 -2.4 2.2 4.2 2.2 5.1 5.4 Quarter 12 months rolling * Cash-flow after net investments excluding: investment
Slide 5: Consolidated Results
Conference Call Q1 2003 4 Consolidated Results First Quarter 2003 First Quarter SEK M 2003 2002 Net Sales 40,931 40,385 Gross income 7,617 7,180 R&D expenses (1,769) (1,505) Selling expenses (3,597) (3,797) Administrative expenses (1,304) (1,277) Other op. Income & expenses (258) (1,094) Inc. from F
Slide 6: Trucks
Conference Call Q1 2003 5 Trucks First Quarter Net sales Operating income (SEK bn) (SEK M) Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 26.6 32.6 28.5 31.1 27.4 -474 483 673 507 527 116.7 119.2 121.3 118.8 119.6 -1.8% 1.5% 2.4% 1.6% 1.9% Quarter 12 months rolling -1,371 -1,527 766 1,1
Slide 7: Heavy Duty Truck Market – Western Europe
Conference Call Q1 2003 6 Heavy Duty Truck Market Western Europe Units, Thousands (heavy trucks) 300 250 200 150 100 50 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 AB Volvo 2003-04-28
Slide 8: Heavy Duty Truck Market – North America
Conference Call Q1 2003 7 Heavy Duty Truck Market North America Units, Thousands (heavy trucks) 350 300 250 200 150 100 50 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 AB Volvo 2003-04-28
Slide 9: Volvo Buses
Conference Call Q1 2003 8 Volvo Buses First Quarter Net sales Operating income (SEK bn) (SEK M) Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 3.2 4.1 2.9 3.9 3.0 -94 51 -84 33 -83 16.1 15.4 14.2 14 13.8 -3.0% 1.2% -2.9% 0.9% -2.8% -927 -851 -708 -94 -83 Quarter 12 months rolling Quarte
Slide 10: Volvo Construction Equipment
Conference Call Q1 2003 9 Volvo Construction Equipment First Quarter Net sales Operating income (SEK bn) (SEK M) Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 4.5 6.2 5.1 5.3 4.8 -131 464 120 -47 140 20.9 21.0 20.7 21.0 21.3 -2.9% 7.5% 2.4% -0.9% 2.9% 315 371 309 406 677 Quarter 12 mon
Slide 11: Volvo Penta
Conference Call Q1 2003 10 Volvo Penta First Quarter Net sales Operating income (SEK bn) (SEK M) Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 2.0 2.2 1.7 1.7 1.9 146 225 117 159 159 7.6 7.9 7.8 7.7 7.6 7.4% 10.0% 6.7% 9.2% 8.3% 637 640 616 647 660 Quarter 12 months rolling Quarter Mar
Slide 12: Volvo Aero
Conference Call Q1 2003 11 Volvo Aero First Quarter Net sales Operating income (SEK bn) (SEK M) Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 2.5 2.3 2.0 2.1 2.2 78 40 -72 -41 -6 11.7 10.9 9.9 8.8 8.6 3.1% 1.7% -3.7% -2.0% -0.3% 571 325 135 5 -79 Quarter 12 months rolling Quarter Margi
Slide 13: Volvo Financial Services
Conference Call Q1 2003 12 Volvo Financial Services First Quarter New financing Operating income and Return on equity (SEK bn) (SEK M) Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 5.8 6.8 6.5 7.2 5.9 115 120 126 129 212 23.7 25.2 26.5 26.3 26.5 4.1% 3.7% 3.8% 4.8% 5.5% Quarter 12 mont
Slide 14: Volvo Group Summary
Conference Call Q1 2003 13 Volvo Group Summary z Uncertain business climate z Strong earnings improvement - Improved Truck result in Europe - Reduced losses in N. America - Volvo CE z Strengthening of dealer networks - Public offer for Bilia commercial division in Europe - Mack / Volvo optimization
Slide 15: Conference Call Q1 2003
Conference Call Q1 2003 14 AB Volvo 2003-04-28