Volvo Car AB Class B · OMXSTO:VOLCAR_B
Volvo Car AB Class B — Volvo Cars — Investor Presentation (June 2023)
14 slides from Volvo Car AB Class B's investor presentation, June 2023
Slide 1: Financials
votLuvo Financials Johan Ekdahl & Fredrik Hansson
Slide 2: Mid-decade Business Ambitions
Mid-decade Business Ambitions 8-10% 50% 12M 40% 50% EBIT margin fully electric sales units COz reduction per car direct/online sales
Slide 3: Current trading
Current trading Sound performance in an unstable environment Retail sales Revenue EBIT / margin (k units) (bn SEK) (bn SEK/%) +2% +6% 630 352 22.3 615 eat) 21.4 17.9 18.3 6.1% 5.2% 2022 2023 Q1LTM 2022 2023 Q1LTM 2022 2022excl, 2023 2023 Q1LTM JIV& QiLTM excl. IV& associates associates Cash flow fro
Slide 4: Absorbing and offsetting costs
Absorbing and offsetting costs 3.9% 3.5% —= *£F -0.8% : RDs:705k = |. (AR SSS Te 0.6% RDs: 615k — SOS Yom ____. 56% -1.9% 5.3% 1.0% 5.4% 1.1% 2019 Volume Mix & Variable Raw materials Semi-conspot- Premium Indirect FX Other 2022 (excl. JVs & effect pricing cost buys freights cost (excl.JVs & Associat
Slide 5: Reaching 8-10% EBIT
Reaching 8—10% EBIT Today Price/cost Cost of electrification Cost efficiencies Growth leverage Commercial Income from affiliates Mid-decade normalization & synergies on indirect cost transformation (Polestar and Lynk&Co) ambition
Slide 6: Cost of electrification
Cost of electrification 1. Early generation BEVs hamper margins — unlocked with Gen. 3 Evolution of BEV — ICE cost parity — Illustrative Cost / KWH nN Generation 1 Generation 2 Generation 3 (BEV — ICE Cost parity) Time
Slide 7: Cost efficiencies & synergies
Cost efficiencies & synergies 2. Significant cost efficiencies from new technology in pipeline — examples Battery pack (cell-to-body) e-drives (gen. 3) -30% -40% Mega casting (rear floor) -35% In-house developed Cellto-Body concept Holistically optimized in-house designed and built + Higher pack den
Slide 8: Cost efficiencies & synergies
Cost efficiencies & synergies 2. We are deploying additional measures to achieve operational leverage and enable continuous transformation Culture Competence Continue culture journey to embrace Make room for our critical talents that transformation and enable flexibility are key for the future Costs
Slide 9: Cost efficiencies & synergies
Cost efficiencies & synergies EX30 small in size, but large in synergies Fa
Slide 10: Growth leverage on indirect cost
Growth leverage on indirect cost 3. Growth leverage from expanding addressable market Non-BEVs BEVs Large Medium Small Maintained, but largely refreshed At least 1 new BEV per year towards mid-decade
Slide 11: Commercial transformation
Commercial transformation 4. A competitive go-to-market setup Key benefits Scalable and consistent Optimise marketing, sales, consumer experience inventory, capital and distribution cost across entire system * Inline with country specific franchise laws Responsibility for digital infrastructure, dir
Slide 12: Commercial transformation
Commercial transformation 4. A competitive go-to-market setup Illustrative EBIT impact of ‘flips’ - UK example National Agent Acquisition National stock Used and Pure flip EBIT pricing compensation vs cost -cost of service impact dealer margin capital business
Slide 13: Direct/Online sales today
Slide 14: Mid-decade Business Ambitions
Mid-decade Business Ambitions 8-10% 50% 12M 40% 50% EBIT margin fully electric sales units COz reduction per car direct/online sales