Volvo Ab Class A · OMXSTO:VOLV_A

Volvo Ab Class A — Q4 2019 Earnings Presentation

32 slides from Volvo Ab Class A's earnings presentation, Jan 30, 2020

  1. Slide 1: Fourth quarter 2019

    Fourth quarter 2019 Martin Lundstedt, President and CEO

  2. Slide 2: Fourth Quarter Highlights

    Volvo Group FOURTH QUARTER HIGHLIGHTS  Net sales decreased by SEK 0.4 bn, -0.4% (-5% excl. currency)  Adjusted operating income decreased to SEK 9.2 bn (10.6), corresponding to a margin of 8.8% (10.0)  Operating cash flow in the Industrial Operations of SEK 19.9 bn (15.5)  Volvo Group and Isuzu

  3. Slide 3: Volume Development in the Fourth Quarter

    Volvo Group VOLUME DEVELOPMENT IN THE FOURTH QUARTER Volvo Group Fourth quarter and full year 2019 3 2020-01-30

  4. Slide 4: Service Sales Development

    Volvo Group SERVICE SALES DEVELOPMENT Volvo Group Fourth quarter and full year 2019 4 2020-01-30

  5. Slide 5: Trucks

    Trucks

  6. Slide 6: Trucks: Market Environment

    Trucks MARKET ENVIRONMENT Volvo Group Fourth quarter and full year 2019 6 2020-01-30

  7. Slide 7: HD/MD: Quarterly Orders -10% and Deliveries -8%

    Trucks HD/MD: QUARTERLY ORDERS -10% AND DELIVERIES -8% Volvo Group Fourth quarter and full year 2019 7 2020-01-30

  8. Slide 8: Trucks: Market Shares

    Trucks MARKET SHARES HD% 2018 2019 Volvo Group Fourth quarter and full year 2019 8 2020-01-30

  9. Slide 9: Electric Heavy-Duty Construction and Regional Haul Concepts

    Trucks ELECTRIC HEAVY-DUTY CONSTRUCTION AND REGIONAL HAUL CONCEPTS  In December, Volvo Trucks released electric concept trucks for regional haul and construction operations  Aims to explore different solutions and evaluate interest in the market and in society Volvo Group Fourth quarter and full y

  10. Slide 10: Mack LR Electric in Operation with New York Department of Sanitation

    1 0 Trucks Mack LR Electric MACK LR-ELECTRIC IN OPERATION WITH NEW YORK DEPARTMENT OF SANITATION  Xx  Cc  Vv Volvo Group Fourth quarter and full year 2019 10 2020-01-30

  11. Slide 11: Volvo Group and Isuzu Motors Intends to Form Strategic Alliance

    Trucks VOLVO GROUP AND ISUZU MOTORS INTENDS TO FORM STRATEGIC ALLIANCE  A non-binding Memorandum of Understanding signed with the intent to: – form a strategic alliance within commercial vehicles – establish a global technology partnership – transfer the ownership of UD Trucks Volvo Group Fourth qu

  12. Slide 12: Construction Equipment

    Construction Equipment

  13. Slide 13: Construction Equipment: Market Environment

    Construction Equipment MARKET ENVIRONMENT Volvo Group Fourth quarter and full year 2019 13 2020-01-30

  14. Slide 14: Quarterly Orders +6% and Deliveries +4%

    Construction Equipment QUARTERLY ORDERS +6% AND DELIVERIES +4% Volvo Group Fourth quarter and full year 2019 14 2020-01-30

  15. Slide 15: Construction Equipment

    Construction Equipment  Gaining market shares in China: – Large excavators 10.6% (10.1) – Wheel loaders 24.3% (21.3)  Leick Baumschulen, the first customer to test the L25 electric compact wheel loader  The L25 electric compact wheel loader and the ECR25 electric compact excavator moves into seri

  16. Slide 16: Buses

    Buses  Orders decreased by 9% driven by the large order to Bogota, Colombia in 2018  Record order of 307 Prevost commuter buses to New York City and 157 Volvo Electric Articulated buses to Gothenburg  Deliveries increased by 6% mainly in the Nordics, Mexico and South America The largest order eve

  17. Slide 17: Volvo Penta

    Volvo Penta  Order intake on par with last year  Deliveries decreased by 37% mainly due to strong pre-buy of industrial off-road engines in 2018  Volvo Penta revealed new D8 and D13 power generation engines to meet EU Stage V regulations Volvo Group Fourth quarter and full year 2019 17 2020-01-30

  18. Slide 18: Financial Services

    Financial Services  Record quarterly new business volume  Improved penetration  Fully integrated commercial offer at Fenatran trade show in Brazil Volvo Group Fourth quarter and full year 2019 18 2020-01-30

  19. Slide 19: Fourth quarter 2019: Jan Ytterberg, CFO

    Fourth quarter 2019 Jan Ytterberg, CFO

  20. Slide 20: Net Sales per Market

    Volvo Group NET SALES PER MARKET Volvo Group Fourth quarter and full year 2019 20 2020-01-30

  21. Slide 21: Adjusted Operating Income Contributors

    Volvo Group ADJUSTED OPERATING INCOME CONTRIBUTORS + Service earnings + JV income + Capital gain from sales of real estate - Vehicle volumes - R&D costs - Mix - Strike and costs connected to new union contract Volvo Group Fourth quarter and full year 2019 21 2020-01-30

  22. Slide 22: Industrial Operations: Cash Flow

    Volvo Group – Industrial Operations CASH FLOW Volvo Group Fourth quarter and full year 2019 22 2020-01-30

  23. Slide 23: Industrial Operations: Net Financial Position

    Volvo Group – Industrial Operations NET FINANCIAL POSITION Volvo Group Fourth quarter and full year 2019 23 2020-01-30

  24. Slide 24: Trucks: Net Sales and Adjusted Operating Income

    Trucks NET SALES AND ADJUSTED OPERATING INCOME Volvo Group Fourth quarter and full year 2019 24 2020-01-30

  25. Slide 25: Construction Equipment: Net Sales and Adjusted Operating Income

    Construction Equipment NET SALES AND ADJUSTED OPERATING INCOME Volvo Group Fourth quarter and full year 2019 25 2020-01-30

  26. Slide 26: Buses: Net Sales & Adjusted Operating Income

    Buses NET SALES & ADJUSTED OPERATING INCOME  Net sales currency-adjusted -3%: o Vehicles -6% o Services +9%  Adjusted operating income: + Vehicles volumes and mix - Capacity utilization and S&A *Adjustments, see note 7 in Q4 report: Volvo Group Q4 2018: Significant one-time item of SEK -190 M Four

  27. Slide 27: Volvo Penta: Net Sales & Adjusted Operating Income

    Volvo Penta NET SALES & ADJUSTED OPERATING INCOME  Net sales currency-adjusted -23%: o Engines -30% o Services +5%  Adjusted operating income: - Lower volumes - R&D expenses - Selling expenses Volvo Group *Adjustments, see note 7 in Q4 report: Fourth quarter and full year 2019 Q4 2018: No adjustme

  28. Slide 28: Financial Services: Credit Portfolio and Profitability

    Financial Services CREDIT PORTFOLIO AND PROFITABILITY Volvo Group Fourth quarter and full year 2019 28 2020-01-30

  29. Slide 29: Full year 2019

    Full year 2019

  30. Slide 30: Adjusted Operating Income FY2019

    Volvo Group ADJUSTED OPERATING INCOME FY2019 + Improved prices and mix for new vehicles + Service earnings - R&D expenses - Selling expenses Volvo Group Fourth quarter and full year 2019 30 2020-01-30

  31. Slide 31: FY2019 Highlights

    Volvo Group FY2019 HIGHLIGHTS Volvo Group Fourth quarter and full year 2019 31 2020-01-30

  32. Slide 32: Volvo Group

    VOLVO VOLVO GROUP

Volvo Group — Q4 2019 Earnings Presentation on 6ix