Volvo AB Class A · OMXSTO:VOLV_A
Volvo AB Class A — Q3 2002 Earnings Presentation
22 slides from Volvo AB Class A's earnings presentation, Oct 24, 2002
Slide 1: Third Quarter 2002 Press Conference
Volvo Group 0 Third Quarter 2002 Press Conference October 24, 2002 AB Volvo Press conf. Q3-2002, October 24, 2002
Slide 2: Highlights
Volvo Group Highlights 1 Third Quarter In Focus Going Forward l Business Environment Short Term - Low demand in N. America, - Delivery peak of pre-EPA’02 trucks l Finalize production transfer - Continued downward trend in Europe to New River Valley l Increased Truck earnings l Production changeover
Slide 3: Sales by Market Area
Volvo Group Sales by Market Area 2 Third Quarter 2002 Third Quarter First Nine Months SEK M Split 2002 2001 Change 2002 2001 Change Western Europe 49% 20,292 20,124 1% 67,059 67,445 -1% Eastern Europe 4% 1,791 1,328 35% 5,055 3,954 28% North America 32% 13,177 13,381 -2% 39,406 42,176 -7% South Amer
Slide 4: Volvo Group in South Asia, 2002
Volvo Group Volvo Group in South Asia, 2002 3 Changwon Xian Wuxi Shanghai Renault Trucks Volvo Trucks Volvo Buses Bangkok Volvo Penta Volvo Construction Bangalore Equipment Kulim Kuala Lumpur AB Volvo Press conf. Q3-2002, October 24, 2002
Slide 5: Sales Development in Asia
Volvo Group 4 Sales Development in Asia Annualised Sales Rate SEK Bln 13 12.6 10 7 4 99 99 00 00 00 00 01 01 01 01 02 02 02 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ Q Q Q Q Q Q Q Q Q Q Q Q Q AB Volvo Press conf. Q3-2002, October 24, 2002
Slide 6: Sales Development in China
Volvo Group Sales Development in China 5 Annualised Sales Rate SEK Bln 2 1.6 1.5 1 0.5 0 99 99 00 00 00 00 01 01 01 01 02 02 02 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ Q Q Q Q Q Q Q Q Q Q Q Q Q AB Volvo Press conf. Q3-2002, October 24, 2002
Slide 7: Sales by Business Area
Volvo Group Sales by Business Area 6 Third Quarter 2002 Third Quarter First Nine Months SEK M Split 2002 2001 Change 2002 2001 Change Trucks 69% 28,507 25,611 11% 87,619 83,988 4% Buses 7% 2,876 4,001 -28% 10,183 12,631 -19% Construction Equipm. 12% 5,061 5,388 -6% 15,725 16,143 -3% Volvo Penta 4% 1
Slide 8: Operating Income by Business Area
Volvo Group Operating Income by Business Area 7 Third Quarter 2002 Third Quarter First Nine Months SEK M 2002 2001 Change 2002 2001 Change Trucks 673 (340) n.a. 682 449 1) 52% Buses (84) (185) n.a. (127) (293) n.a. Construction Equipm. 120 266 -55% 453 755 -40% Volvo Penta 117 141 n.a. 488 530 n.a.
Slide 9: Trucks
Volvo Group Trucks 8 Third Quarter Third Quarter First Nine Months SEK M 2002 2001 Change 2002 Change Volume (units) 37,515 31,142 20% 114,618 1% Sales 28,507 25,611 11% 87,619 4% Operating income 673 (340) n.a. 682 52% 1) Operating margin % 2.4% -1.3% 3.7 0.8% 0.3 Highlights In Focus l Increased de
Slide 10: Truck Deliveries
Volvo Group Truck Deliveries 9 Third Quarter Third Quarter 2002 2001 Change Total Europe 20,338 18,993 7% Western Europe 18,212 17,550 4% Eastern Europe 2,126 1,443 47% North America 11,043 7,084 56% South America 1,423 1,420 0% Asia 2,210 1,449 53% Rest of the world 2,501 2,196 14% Total 37,515 31,
Slide 11: Total Market Heavy Trucks: W. Europe Registration Forecast
Volvo Group 10 Total Market Heavy Trucks W. Europe Registration Forecast Units Thousands 300 246 Forecast 250 237 236 215 200 208 (10)% 150 100 98 99 '00 '01 '02 '03 AB Volvo Press conf. Q3-2002, October 24, 2002
Slide 12: Total Market Heavy Trucks: North America Retail Sales Forecast
Volvo Group 11 Total Market Heavy Trucks North America Retail Sales Forecast Units Thousands 309 300 257 250 255 Forecast 200 170 172 150 1% 100 98 99 '00 '01 '02 '03 AB Volvo Press conf. Q3-2002, October 24, 2002
Slide 13: Business Environment
Volvo Group 12 Business Environment North America 30,000 25,000 Industry built 20,000 15,000 10,000 Net order intake 5,000 0 j f m a m j j a s o n d j f m a m j j a s 2001 2002 Source: ACT Publications AB Volvo Press conf. Q3-2002, October 24, 2002
Slide 14: Buses
Volvo Group Volvo Buses 13 Third Quarter Third Quarter First Nine Months SEK M 2002 2001 Change 2002 Change Volume (units) 1,894 2,318 -18% 6,307 -12% Sales 2,876 4,001 -28% 10,183 -19% Operating income (84) (185) n.a. (127) n.a. Operating margin % -2.9% -4.6% 1.7 -1.2% 1.1 Highlights In Focus l Sig
Slide 15: Construction Equipment
Volvo Group Volvo Construction Equipment 14 Third Quarter Third Quarter First Nine Months SEK M 2002 2001 Change 2002 Change Sales 5,061 5,388 -6% 15,725 -3% Operating income 120 266 -55% 453 -40% Operating margin % 2.4% 4.9% (2.5) 2.9% (1.8) Highlights In Focus l Mixed market development l Producti
Slide 16: The Volvo Backhoe Loader
Volvo Group Volvo Construction Equipment 15 The Volvo Backhoe Loader Production Started in Q3 2002 - Very well received by customers and dealers - This years production sold out AB Volvo Press conf. Q3-2002, October 24, 2002
Slide 17: Two new Compact Wheel Loaders
Volvo Group Volvo Construction Equipment 16 Two new Compact Wheel Loaders Launched in Q3 2002 AB Volvo Press conf. Q3-2002, October 24, 2002
Slide 18: Volvo Penta
Volvo Group Volvo Penta 17 Third Quarter Third Quarter First Nine Months SEK M 2002 2001 Change 2002 Change Sales 1,735 1,774 -2% 5,946 8% Operating income 117 141 na 1) 488 na 1) Operating margin % 6.7% 7.9% na 1) 8.2% na 1) Highlights In Focus l Gained market shares in declining markets l Key cust
Slide 19: Volvo Penta Telematics
Volvo Group Volvo Penta 18 Telematics Safety Service Alarm Safety Service Alarm • Today approximately 7,000 units in order • Volvo Penta revenues both on user module and on subscription AB Volvo Press conf. Q3-2002, October 24, 2002
Slide 20: Volvo Aero
Volvo Group Volvo Aero 19 Third Quarter Third Quarter First Nine Months SEK M 2002 2001 Change 2002 Change Sales 1,961 2,994 -35% 6,784 -22% Operating income (72) 118 n.a. 46 -92% Operating margin % -3.7% 3.9% (7.6) 0.7% (5.8) Highlights In Focus l Still no recovery in air traffic. Overcapacity lead
Slide 21: Volvo Financial Services
Volvo Group Volvo Financial Services 20 Third Quarter Third Quarter First Nine Months SEK M 2002 2001 Change 2002 Change Operating income 126 69 83% 361 47% ROE % 1) 3.8% (1.4) Assets, MSEK 68,702 72,614 -5.4% 68,702 -5.4% Equity ratio 10.9% 11.0% (0.1) 10.9% (0.1) Highlights In Focus l Continued gr
Slide 22: Summary
Volvo Group 21 Volvo Group Summary l Business Environment - Low demand in N. America, - Delivery peak of pre-EPA’02 trucks - Continued downward trend in Europe l Increased Truck earnings l Strengthened positions in Asia l Focus on - Production transfer to New River Valley - Manage US demand pattern