Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — Investor Day (June 2019)
123 slides from Volvo Ab Class A's investor day presentation, Jun 18, 2019
Slide 1: Capital Markets Day
Capital Markets Day Gothenburg June 18, 2019
Slide 2: Perform and transform
Martin Lundstedt Perform and transform PRESIDENT AND CEO Volvo Group Capital Markets Day 2019 2 18 June 2019
Slide 3: Agenda
AGENDA Perform and transform Martin Lundstedt, President and CEO Financial performance update Jan Ytterberg, CFO Group innovation road map Lars Stenqvist, Chief Technology Officer 14:15-14:45 Break Building new businesses through new technologies Martin Lundstedt, President and CEO Tech-EXPO Volvo C
Slide 4: Volvo Group and NVIDIA partnership
Volvo Group and NVIDIA partnership Jensen Huang Founder & CEO, NVIDIA Volvo Group Capital Markets Day 2019 4 18 June 2019
Slide 5: Volvo Group and NVIDIA partnership
Volvo Group and NVIDIA partnership Creating the future of trucking Volvo Group Capital Markets Day 2019 5 18 June 2019
Slide 6: A big opportunity in a digital world
8 billion people (2030) living in a digital world. It’s a BIG opportunity for Volvo Group to achieve new growth The world faces an unprecedented infrastructure challenge. $8,000 billion is the expected worldwide investment needed by 2040 That means more than $900 billion in roads annually Bo
Slide 7: Always balancing global challenges
Always balancing global challenges Kate Raworth’s Doughnut Economics model SOCIETY AND RESOURCES Driving prosperity, in all aspects of the word, means that the impact on environment and the usage of our society’s limited resources must always be considered in our activities. Volvo Group Capital Mark
Slide 8: Our products and services are part of the solution
Our products and services are part of the solution Volvo Group Capital Markets Day 2019 8 18 June 2019
Slide 9: Driving the industry transformation
Driving the industry transformation Used ~25% of the time over ~60% of total length theoretically 5-10% of total fuel consumed the life cycle available for more cargo is used to move goods ~7% of all accidents in Europe involve trucks: ~17% for fatal accidents Volvo Group Capital Markets Day 2019 9
Slide 10: A fantastic industry in transition
A fantastic industry in transition PERFORM TRANSFORM Volvo Group Capital Markets Day 2019 10 18 June 2019
Slide 11: We are well invested with strong assets to build on
We are well invested with strong assets to build on Addressing broad spectrum of customer segments Volvo Group Capital Markets Day 2019 11 18 June 2019
Slide 12: Segment and customer knowledge
Segment and customer knowledge 10 largest industry segments Share of VG total sales1 Trend last 5 years Building & Construction 22% Mixed Cargo 14% Industrial 9% Daily Commodities 7% Consumer Goods 6% Mining & Quarry 6% Agriculture 6% Public Svc & Utilities 5% Petroleum & Chem. 4% Waste & Recycling
Slide 13: Strong assets to build on
Strong assets to build on Go to market strategy Application excellence Leveraging synergies Volvo Group Capital Markets Day 2019 13 18 June 2019
Slide 14: The Volvo Group journey continues
The Volvo Group journey continues 1999-2011 2012-2015 2016 ACQUISITION-DRIVEN TRANSFORMATION TO IMPROVED GROWTH CLOSE THE GAP PERFORMANCE Customer focus, Scale, synergies & Product renewal, brand simplicity, speed, geographical expansion positioning & cost efficiency continuous improvements, organ
Slide 15: Volvo Group
VOLVO GROUP Volvo Group Capital Markets Day 2019 15 18 June 2019
Slide 16: Improving performance: strategic priorities
Improving performance STRATEGIC PRIORITIES Reinforce Volvo as a global premium HD truck brand and regain position and 1 market shares of Renault Trucks, Mack and UD as regional high-end truck brands Capture Asia growth through JV’s and Group Trucks Asia in a separate value chain – Opportunities to
Slide 17: Perform
Perform Volvo Group Capital Markets Day 2019 17 18 June 2019
Slide 18: Improving performance: excel on the basics
Improving performance EXCEL ON THE BASICS Agility and flexibility in production volumes Common Architecture and Shared Technology Continuous introductions Quality Brand and regionalized Volvo Production System value chains Volvo Group Capital Markets Day 2019 18 18 June 2019
Slide 19: Building resilience: service business potential
Improving performance BUILDING RESILIENCE Service business potential 2.8 INSTALLED POPULATION M TRUCKS, BUSES AND MACHINES Volvo Group Capital Markets Day 2019 19 18 June 2019
Slide 20: Drivers for service growth
Improving performance DRIVERS FOR SERVICE GROWTH SERVICE ENABLERS PARTS SALES POTENTIAL Illustrative Network Population Penetration Proprietary drivelines Availability Segment Vehicle age Service contracts Volvo Group Capital Markets Day 2019 20 18 June 2019
Slide 21: Europe: service contracts as key enabler
Improving performance EUROPE: SERVICE CONTRACTS AS A KEY ENABLER TO PARTS SALES AND WORKSHOP HOURS Volvo Group Capital Markets Day 2019 21 18 June 2019
Slide 22: North America: proprietary driveline penetration growth
Improving performance NORTH AMERICA: PROPRIETARY DRIVELINE PENETRATION GROWTH Captive Captive Parts per Engines Transmissions Vehicle in for Volvo (AMT) Operation Volvo Group Capital Markets Day 2019 22 18 June 2019
Slide 23: Stronger cycle resilience in service business
Improving performance STRONGER CYCLE RESILIENCE IN SERVICE BUSINESS Service excellence drives customer satisfaction and uptime Service business improves resilience across cycles Further service growth opportunities Volvo Group Capital Markets Day 2019 23 18 June 2019
Slide 24: Strengthened profitability per truck brand and region
Improving performance STRENGTHENED PROFITABILITY PER TRUCK BRAND AND REGION 2017 2018 NORTH AFRICA & SOUTH EUROPE ASIA WORLD AMERICA OCEANIA AMERICA 61% 16% 13% 10% TRUCKS 100% NET 45% 28% 14% 6% 7% 100% SALES Good performance Medium performance Lower performance Volvo Group Capital Markets Day 2019
Slide 25: We continue to review performance and take action
Improving performance WE CONTINUE TO REVIEW PERFORMANCE AND TAKE ACTION Product lines, services, market areas, segments, product projects, variants etc. Operating income Develop High frequency follow-ups Exit Volume Volvo Group Capital Markets Day 2019 25 18 June 2019
Slide 26: Trucks profitability among the top in the industry
Improving performance TRUCKS PROFITABILITY AMONG THE TOP IN THE INDUSTRY Volvo Group Capital Markets Day 2019 Volvo Group estimate 26 18 June 2019
Slide 27: Transform
Transform Volvo Group Capital Markets Day 2019 27 18 June 2019
Slide 28: Drivers for industry transformation
Drivers for industry transformation Used ~25% of the time over ~60% of total length theoretically 5-10% of total fuel consumed the life cycle available for more cargo is used to move goods ~7% of all accidents in Europe involve trucks: ~17% for fatal accidents Volvo Group Capital Markets Day 2019 28
Slide 29: New technologies transforming the transport system
New technologies transforming the transport system Electrification Autonomous Connectivity Volvo Group Capital Markets Day 2019 29 18 June 2019
Slide 30: Recent Volvo Group announcements
Recent Volvo Group announcements Volvo Group Capital Markets Day 2019 30 18 June 2019
Slide 31: Giant leap in productivity and sustainability
Giant leap in productivity and sustainability Autonomous Electrified Connected Volvo Group Capital Markets Day 2019 31 18 June 2019
Slide 32: Driving the industry transformation - the road ahead
Driving the industry transformation - THE ROAD AHEAD ”Provide me the “Optimize my right transport Supply Chain” capacity when I need it” ”Maximize the use Platform of my fleet” solutions ”Maximize the use Mobility of my vehicle” services ”Keep my vehicle Fleet 6. available” productivity “Help me mai
Slide 33: Accelerating execution of new technologies and business models
Accelerating execution of new technologies and business models - moving from pilots to commercialization Volvo Group 33
Slide 34: Financial performance update
Jan Ytterberg Financial performance update CFO Volvo Group Capital Markets Day 2019 34 18 June 2019
Slide 35: What we want to achieve
What we want to achieve IMPROVE PERFORMANCE AND INVEST FOR THE FUTURE Transformation investments Perform today Shareholder returns Volvo Group Capital Markets Day 2019 35 18 June 2019
Slide 36: What we want to achieve
What we want to achieve IMPROVE PERFORMANCE AND INVEST FOR THE FUTURE Continuous Gradual and Reduced Discipline investments in new consistent volatility in capital business models earnings in earnings and allocation/ by innovation and improvement cash flow investments new technologies Volvo Group Ca
Slide 37: Financial targets
Financial targets >10% Operating margin over a business cycle Net Industrial Operations, excluding pensions cash & leasing liabilities 12-15% RoE in Financial Services Volvo Group Capital Markets Day 2019 37 18 June 2019
Slide 38: Net cash
Net Industrial Operations, excluding STATUS cash pensions & leasing liabilities Volvo Group Pension liabilities in Q1 2019 of SEK 16.1 bn and Capital Markets Day 2019 leasing liabilities of SEK 6.2 bn (IFRS16). 38 18 June 2019
Slide 39: Improving credit rating
Improving credit rating LONG TERM RATING DEVELOPMENT Volvo Group Capital Markets Day 2019 39 18 June 2019
Slide 40: RoE in Financial Services
12-15% RoE in Financial Services STATUS Volvo Group Capital Markets Day 2019 40 18 June 2019
Slide 41: Operating margin over a business cycle
>10% Operating margin over a business cycle STATUS: More to do! • Excel on the basics • Building resilience Volvo Group Capital Markets Day 2019 41 18 June 2019
Slide 42: Excel on the basics
Excel on the basics CONTINUOUS IMPROVEMENTS IN FOCUS Continuous operational improvements Continuous portfolio review Develop Product mix Operating – More construction trucks and large machines income High frequency – Continuous product renewals follow-ups Service sales Exit – Vehicle population
Slide 43: Building resilience
Building resilience ADDRESSING SALES AND COST Increasing service sales – Building vehicle population – Parts and service contracts Cost improvements – Increased flexibility in supply chain • manning • leveraging industrial structure – Sales & order planning on top management’s agenda – Flexibili
Slide 44: Growing service sales improving opex absorption
Building resilience GROWING SERVICE SALES IMPROVING OPEX ABSORPTION IN INDUSTRIAL OPERATIONS Volvo Group Capital Markets Day 2019 44 18 June 2019
Slide 45: North American truck business performing in weak market
Building resilience NORTH AMERICAN TRUCK BUSINESS PERFORMING ALSO IN WEAK MARKET CONDITIONS Truck deliveries and margin • Global deliveries -8% • North America deliveries -39% • Adjusted op. margin:+1.1pp. Volvo Group Capital Markets Day 2019 45 18 June 2019
Slide 46: Higher cash returns to shareholders
Improving financial performance HIGHER CASH RETURNS TO SHAREHOLDERS Volvo Group Capital Markets Day 2019 46 18 June 2019
Slide 47: Group innovation road map
Lars Stenqvist Group innovation road map CHIEF TECHNOLOGY OFFICER Volvo Group Capital Markets Day 2019 47 18 June 2019
Slide 48: Volvo Group Capital Markets Day 2019 48 18 June 2019
Volvo Group Capital Markets Day 2019 48 18 June 2019
Slide 49: Growing transports more sustainable with new technology
Growing transports Growing transports- more - more sustainable sustainable withwith newnew technology technology Volvo Group Capital Markets Day 2019 49 18 June 2019
Slide 50: Electrification has started in all product areas
Electrification has started in all product areas Volvo Buses Trucks Volvo CE Volvo Penta Volvo Group Capital Markets Day 2019 50 18 June 2019
Slide 51: Modular electrification approach
Modular electrification approach COMMON ARCHITECTURE AND SHARED TECHNOLOGIES (CAST) Volvo Group Capital Markets Day 2019 51 18 June 2019
Slide 52: Three phases of battery electric vehicle adoption
Three phases of battery electric vehicle adoption Early Elevated Broad adoption adoption adoption Image Financial Viability Financial viability Image driven Selected segments & Wide spread customers markets Volvo Group Capital Markets Day 2019 52 18 June 2019
Slide 53: Battery price/performance will improve
Battery price/performance will improve Battery pack cost Cell energy density €/kWh kWh/kg Volvo Group Capital Markets Day 2019 53 18 June 2019
Slide 54: Infrastructure development needed for fast deployment
Infrastructure development needed for fast deployment Volvo Group Capital Markets Day 2019 54 18 June 2019
Slide 55: Electric driveline can be used with different energy sources
Electric driveline can be used with different energy sources Volvo Group Capital Markets Day 2019 55 18 June 2019
Slide 56: The combustion engine will be needed for a foreseeable future
The combustion engine will be needed for a foreseeable future Volvo Group Capital Markets Day 2019 56 18 June 2019
Slide 57: Supported by the versatility of the combustion engine
Supported by the versatility of the combustion engine ALTERNATIVE FUELS HYBRIDIZATION Volvo Group Capital Markets Day 2019 57 18 June 2019
Slide 58: High potential with autonomous solutions
High potential with autonomous solutions Energy Safety Productivity efficiency Volvo Group Capital Markets Day 2019 58 18 June 2019
Slide 59: Driver assist with Volvo Dynamic Steering
Driver assist with Volvo Dynamic Steering REMOTE CONTROL LANE KEEPING ASSIST STABILITY ASSIST Volvo Group Capital Markets Day 2019 59 18 June 2019
Slide 60: High efficiency potential with fully autonomous vehicles
High efficiency potential with fully autonomous vehicles TCO: Total cost of ownership Volvo Group Capital Markets Day 2019 60 18 June 2019
Slide 61: Volvo Group Capital Markets Day 2019 61 18 June 2019
Volvo Group Capital Markets Day 2019 61 18 June 2019
Slide 62: Volvo Group & NVIDIA - industry leading partners
Volvo Group & NVIDIA - industry leading partners Self Driving Lidar Radar Camera Software system system system Perception sensor system and ECUs Self driving ECUs software Automated Driving System Autonomous Transport Mission Redundant Base Vehicle (ADS) c Management System (ATMMS) Volvo Group Capit
Slide 63: Huge potential with growing digitalization
Huge potential with growing digitalization Volvo Group Capital Markets Day 2019 63 18 June 2019
Slide 64: Strengthen our service business with connected solutions
Strengthen our service business with connected solutions Service business potential Volvo Group Capital Markets Day 2019 64 18 June 2019
Slide 65: J¨j Volvo Group Capital Markets Day 2019
J¨j Volvo Group Capital Markets Day 2019 65 18 June 2019
Slide 66: Building revenue streams with connected solutions
Building revenue streams with connected solutions Volvo Group Capital Markets Day 2019 66 18 June 2019
Slide 67: Data analytics, AI and machine learning strengthen R&D
Data analytics, AI and machine learning are strengthening our R&D capabilities Volvo Group Capital Markets Day 2019 67 18 June 2019
Slide 68: New agile ways of working – innovation labs and partners
New agile ways of working – innovation labs and partners Volvo Group Capital Markets Day 2019 68 18 June 2019
Slide 69: Volvo Group Capital Markets Day 2019 69 18 June 2019
Volvo Group Capital Markets Day 2019 69 18 June 2019
Slide 70: Agenda
AGENDA Perform and transform Martin Lundstedt, President and CEO Financial performance update Jan Ytterberg, CFO Group innovation road map Lars Stenqvist, Chief Technology Officer 14:15-14:45 Break Building new businesses through new technologies Martin Lundstedt, President and CEO Tech-EXPO Volvo C
Slide 71: Building new businesses through new technologies
Martin Lundstedt Building new businesses through PRESIDENT AND CEO new technologies Volvo Group Capital Markets Day 2019 71 18 June 2019
Slide 72: Building new businesses through new technologies: key principles
Building new businesses through new technologies KEY PRINCIPLES Application knowledge Best partnerships in the industry CAST for new technologies Iterative development with customers Commercial pilot approach Speed in time to market Volvo Group Capital Markets Day 2019 72 18 June 2019
Slide 73: Case study Electric city buses
Case study Electric city buses Jan Kilström CEO Keolis Sweden & Håkan Agnevall President Volvo Buses Volvo Group Capital Markets Day 2019 73 18 June 2019
Slide 74: Volvo Group Capital Markets Day 2019 74 18 June 2019
Volvo Group Capital Markets Day 2019 74 18 June 2019
Slide 75: Volvo Group Capital Markets Day 2019 75 18 June 2019
Volvo Group Capital Markets Day 2019 75 18 June 2019
Slide 76: Volvo Group Capital Markets Day 2019 76 18 June 2019
Volvo Group Capital Markets Day 2019 76 18 June 2019
Slide 77: Volvo Group Capital Markets Day 2019 77 18 June 2019
Volvo Group Capital Markets Day 2019 77 18 June 2019
Slide 78: Volvo Group Capital Markets Day 2019 78 18 June 2019
Volvo Group Capital Markets Day 2019 78 18 June 2019
Slide 79: Case study Vera
Case study Vera Mikael Karlsson Vice President, Autonomous Solutions, Volvo Trucks Volvo Group Capital Markets Day 2019 79 18 June 2019
Slide 80: Operation in a pre-defined 10 km loop
Operation in a pre-defined 10 km loop Gate Gate Logistics centre Public road Port area Container terminal Volvo Group Capital Markets Day 2019 80 18 June 2019
Slide 81: Driving prosperity through collaboration
Driving prosperity through collaboration Volvo Group Capital Markets Day 2019 81 18 June 2019
Slide 82: Vehicle, control tower and cloud solutions
Vehicle Infrastructure Control tower Payment solutions and cloud solutions Operations Maintenance & Repair Volvo Group Capital Markets Day 2019 82 18 June 2019
Slide 83: Case study Electric Site
Case study Electric Site Gustaf Werner Head of Nordics, Skanska Industrial Solutions & Per-Erik Lindström Senior Vice President, Volvo Trucks Volvo Group Capital Markets Day 2019 83 18 June 2019
Slide 84: The classic quarry approach
CO2 THE CLASSIC QUARRY APPROCH emissions Diesel 3x40 tonne rigid consumption trucks (diesel) Mobile crusher 70 tonne (diesel) excavator (diesel) Safety 50 tonne wheel Noisy loader (diesel) environment
Slide 85: The electric site way
THE ELECTRIC SITE WAY 8 electric & Reduced CO2 autonomous emissions Reduced diesel Dump Trucks HX2 consumption Cable electric Excavator EX1 Cable electric Direct loading Increased Crusher safety Cable electric Hybrid Wheel Better work Belt Conveyor Loader LX1 environment
Slide 86: The Electric Site: results of pilot test
THE ELECTRIC SITE Results of pilot test - November 21, 2018 Volvo Group Capital Markets Day 2019 86 18 June 2019
Slide 87: The journey continues
The journey continues Breaking Electric site Explore and learn Ramp up with into pieces… from partnerships customers in different (HX, EX, LX) and research applications & segments… Volvo Group Capital Markets Day 2019 87 18 June 2019
Slide 88: Case study Brønnøy Kalk
Case study Brönnöy Kalk Raymond Langfjord Managing Director Brönnöy Kalk & Sasko Cuklev Director Autonomous Solutions, Volvo Trucks Volvo Group Capital Markets Day 2019 88 18 June 2019
Slide 89: Breaking new ground
Breaking new ground Volvo Group Capital Markets Day 2019 89 18 June 2019
Slide 90: Our pilot approach – true partnership in real applications
Our pilot approach – true partnership in real applications Volvo Group Capital Markets Day 2019 90 18 June 2019
Slide 91: Brønnøy Kalk
Brønnøy Kalk Volvo Group Capital Markets Day 2019 91 18 June 2019
Slide 92: Going autonomous in a tough global market
“Going autonomous will greatly increase our competitiveness in a tough global market” Volvo Group Capital Markets Day 2019 92 18 June 2019
Slide 93: A relation built on trust
A relation built on trust Volvo Group Capital Markets Day 2019 93 18 June 2019
Slide 94: Building tomorrow
Melker Jernberg Building tomorrow President Volvo Construction Equipment Volvo Group Capital Markets Day 2019 94 18 June 2019
Slide 95: Strong line of products and services
STRONG LINE OF PRODUCTS AND SERVICES
Slide 96: Financial performance 2014–Q1 2019
Improving performance FINANCIAL PERFORMANCE 2014–Q1 2019 SEK bn Volvo Group Capital Markets Day 2019 96 18 June 2019
Slide 97: Profitability in Volvo CE well balanced
Improving performance PROFITABILITY IN VOLVO CE WELL BALANCED 2018 Volvo Group Capital Markets Day 2019 97 18 June 2019
Slide 98: Our history defines who we are today
Our history defines who we are today 1998–2006 2007–2012 2013–2017 2018– Industry consolidation Emerging market growth Transformation Strategic Priorities ACQUISITIONS DUAL BRAND STRATEGY MARKET DOWNTURN PURPOSE DRIVEN “One company vision” “Two brands. One goal.” “Higher performance” “Building Tomor
Slide 99: Volvo CE – strategic priorities
Volvo CE – 7 strategic priorities People & Culture Products China Distribution Profitability Technology Purpose Volvo Group
Slide 100: Volvo CE – strategic priorities
Volvo CE – 7 strategic priorities People & Culture Products China Distribution Profitability Technology Purpose Volvo Group
Slide 101: Taking a larger share of the excavator market
Taking a larger share of the excavator market Global market for construction equipment Potential to grow global Excavator market position Volvo Group Capital Markets Day 2019 101 18 June 2019
Slide 102: Strong line-up introduced to capitalize on excavator segments
Strong line-up introduced to capitalize on excavator segment opportunities New EC200E High Reach Demolition Hybrid Active Control Volvo Group Capital Markets Day 2019 102 18 June 2019
Slide 103: Volvo CE growth in the 20 ton range – new EC200E
VOLVO CE GROWTH IN THE 20 TON • 20 ton market is RANGE - NEW EC200E EXCAVATOR biggest volume size for excavators. • 20 ton size are not EC140E EC160E EC180E EC200E EC220E EC250E EC300E pushed to its limit • Machine fits medium/light duty applications • Launch of attractive 20T offering • Good fit fo
Slide 104: Volvo CE – strategic priorities
Volvo CE – 7 strategic priorities People & Culture Products China Distribution Profitability Technology Purpose Volvo Group
Slide 105: Successful growth of both Volvo CE and SDLG in China
Successful growth of both Volvo CE and SDLG in China Volvo dealers: 47 Locations: 405 SDLG dealers: 113 Locations: 820 Shanghai plant Linyi plant Volvo Group Capital Markets Day 2019 105 18 June 2019
Slide 106: Volvo CE and SDLG take next step in China
Volvo CE and SDLG take next step in China Maintain leading SDLG wheel loaders position Wheel Loaders, full range Reinforce Volvo excavator position Excavators > 15 ton Volvo Group Capital Markets Day 2019 106 18 June 2019
Slide 107: Volvo CE – strategic priorities
Volvo CE – 7 strategic priorities People & Culture Products China Distribution Profitability Technology Purpose Volvo Group
Slide 108: Distribution is key to get closer to the customers
Distribution is key to get closer to the customers Region EMEA Owned 6 Independent 72 Total 78 Region Americas Owned 3 Region China Independent 65 Owned 0 Total 68 Independent 47 Total 47 235 Dealers Region APAC Owned 3 ~1,500 Independent 39 Locations Total 42 Volvo Group Capital Markets Day 2019 10
Slide 109: Distribution improvement program in North America
Distribution improvement program in North America driving market share gains New Dealer Territories - Market Share Trends 44 2 6,063 501 1,424 233 DEALERS Volvo Group MARKETS DEALER DEALER DEALER SERVICE DEALER SERVICE SERVED EMPLOYEES SALESPEOPLE TECHNICIANS OUTLETS
Slide 110: Volvo CE – strategic priorities
Volvo CE – 7 strategic priorities People & Culture Products China Distribution Profitability Technology Purpose Volvo Group
Slide 111: Greater potential to create added value with solutions growth
Greater potential to create added value for our customers with solutions growth Solutions for the customer Fuel Efficiency Safety Productivity Services Services Services = + Financial Uptime Rental Services Services Services Volvo Genuine New Life Attachments Volvo Parts Services Enablers: Connected
Slide 112: Service growth driving resilience over the business cycle
Service growth driving resilience over the business cycle Service Parts sales/ agreements penetration Machine Uptime Population Volvo Group Capital Markets Day 2019 112 18 June 2019
Slide 113: Service growth driving resilience over the business cycle
Service growth driving resilience over the business cycle Service Parts sales/ agreements penetration Machine Uptime Population Volvo Group Capital Markets Day 2019 113 18 June 2019
Slide 114: Service growth driving resilience over the business cycle
Service growth driving resilience over the business cycle Service Parts sales/ agreements penetration Machine Uptime Population Volvo Group Capital Markets Day 2019 114 18 June 2019
Slide 115: Service growth driving resilience over the business cycle
Service growth driving resilience over the business cycle • Uptime centers – to fully utilize connectivity and support customers in the best way Service Parts sales/ agreements penetration • Volvo ACTIVE CARE – monitor machines proactively • Connected vehicles in Volvo CE, 140,000 units Machine Upti
Slide 116: Service growth driving resilience over the business cycle
Service growth driving resilience over the business cycle Service Parts sales/ agreements penetration Machine Uptime Population Volvo Group Capital Markets Day 2019 116 18 June 2019
Slide 117: Volvo CE – strategic priorities
Volvo CE – 7 strategic priorities People & Culture Products China Distribution Profitability Technology Purpose Volvo Group
Slide 118: Transforming for the future
Transforming for the future ELECTROMOBILITY AUTOMATION CONNECTIVITY Volvo Group
Slide 119: We continue to review performance and take action
Improving performance WE CONTINUE TO REVIEW PERFORMANCE AND TAKE ACTION Product lines, services, market areas, segments, product projects, variants etc. Operating income Develop High frequency follow-ups Exit Volume Volvo Group Capital Markets Day 2019 119 18 June 2019
Slide 120: Compact equipment range
Compact equipment range Volvo Group Capital Markets Day 2019 120 18 June 2019
Slide 121: Taking industry leadership in electromobility
Taking industry leadership in electromobility Volvo Group Capital Markets Day 2019 121 18 June 2019
Slide 122: Volvo Group
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Slide 123: Capital Markets Day
Capital Markets Day Gothenburg June 18, 2019