Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — Q2 2019 Earnings Presentation
31 slides from Volvo Ab Class A's earnings presentation, Jul 18, 2019
Slide 1: Second quarter 2019
Second quarter 2019 Martin Lundstedt, President and CEO
Slide 2: Second quarter highlights
Volvo Group SECOND QUARTER HIGHLIGHTS Net sales +SEK 17 bn, up 16% (+11% excl. currency) Adjusted operating income increased to SEK 15.1 bn (11.5), corresponding to a margin of 12.5% (11.1) Operating cash flow in the Industrial Operations SEK 13.9 (8.3) bn Volvo Group Second quarter 2019 2 201
Slide 3: Volume development in the second quarter
Volvo Group VOLUME DEVELOPMENT IN THE SECOND QUARTER Volvo Group Second quarter 2019 3 2019-07-18
Slide 4: Service sales development
Volvo Group SERVICE SALES DEVELOPMENT Volvo Group Second quarter 2019 4 2019-07-18
Slide 5: Trucks
Trucks
Slide 6: Trucks: Market environment
Trucks MARKET ENVIRONMENT Volvo Group Second quarter 2019 6 2019-07-18
Slide 7: HD/MD: Quarterly orders -20% and deliveries +9%
Trucks HD/MD: QUARTERLY ORDERS -20% AND DELIVERIES +9% Volvo Group Second quarter 2019 7 2019-07-18
Slide 8: Trucks: Market shares
Trucks MARKET SHARES Volvo Group Second quarter 2019 8 2019-07-18
Slide 9: Volvo Group and Samsung SDI enter strategic alliance for electromobility
Volvo Group and Samsung SDI enter strategic alliance for electromobility Joint development of battery packs specifically developed for Volvo Group’s truck applications Samsung SDI intends to provide battery cells and modules to meet demand for Volvo Group’s electric trucks Volvo Group intends
Slide 10: Volvo Group and NVIDIA partnership
Volvo Group and NVIDIA partnership Creating the future of trucking Volvo Group Second quarter 2019 10 2019-07-18
Slide 11: Vera's first assignment
Trucks VERA’S FIRST ASSIGNMENT Volvo Trucks presents an autonomous transport between a logistics centre and port The assignment is a result of a collaboration between Volvo Trucks and DFDS This is a first step towards implementing Vera in a real transport assignment on pre-defined public roads
Slide 12: Renault Trucks delivers full electric truck
Trucks RENAULT TRUCKS DELIVERS FULL ELECTRIC TRUCK Renault Trucks delivers its first D Wide Z.E. to Lyon metropole A 26-tonne D Wide Z.E. in refuse application Commercial launch end of 2019 Volvo Group Second quarter 2019 12 2019-07-18
Slide 13: Construction Equipment
Construction Equipment
Slide 14: Construction Equipment: Market environment
Construction Equipment MARKET ENVIRONMENT Volvo Group Second quarter 2019 14 2019-07-18
Slide 15: Quarterly orders +6% and deliveries +12%
Construction Equipment QUARTERLY ORDERS +6% AND DELIVERIES +12% Volvo Group Second quarter 2019 15 2019-07-18
Slide 16: Construction Equipment: SDLG cooperation and electric machines
Construction Equipment Volvo Construction Equipment and SDLG takes next cooperation step in China to accelerate growth First electric compact machines launched at Bauma now delivered to customers Volvo Group Second quarter 2019 16 2019-07-18
Slide 17: Buses
Buses Order intake decreased by 39% mainly due to major tenders in 2018 for Europe and North America Deliveries increased by 20% mainly due to high deliveries in Americas Break-through in Middle East: – Frame agreement on 373 city buses to Dubai with planned deliveries through Q2 2020 – Frame
Slide 18: Volvo Penta
Volvo Penta Order intake decreased by 41% mainly due to Stage V engine pre-buy in 2018 Deliveries decreased by 12% mainly due to Stage V pre-deliveries News during Q2: – new generation D4/D6 propulsion packages launched – new D8 marine and industrial application showcased – new electric test v
Slide 19: Financial Services
Financial Services Penetration slightly lower on weaker performance in parts of Europe – Strong price and credit discipline – Market mix Finance company license awarded in Korea Volvo Group Second quarter 2019 19 2019-07-18
Slide 20: Second quarter 2019 – Jan Ytterberg, CFO
Second quarter 2019 Jan Ytterberg, CFO
Slide 21: Net sales per market
Volvo Group NET SALES PER MARKET Volvo Group Second quarter 2019 21 2019-07-18
Slide 22: Adjusted operating income contributors
Volvo Group ADJUSTED OPERATING INCOME CONTRIBUTORS Volvo Group Second quarter 2019 22 2019-07-18
Slide 23: Cash flow – Industrial Operations
Volvo Group – Industrial Operations CASH FLOW Volvo Group Second quarter 2019 23 2019-07-18
Slide 24: Net financial position – Industrial Operations
Volvo Group – Industrial Operations NET FINANCIAL POSITION Volvo Group Second quarter 2019 24 2019-07-18
Slide 25: Trucks: Net sales and adjusted operating income
Trucks NET SALES AND ADJUSTED OPERATING INCOME Volvo Group Second quarter 2019 25 2019-07-18
Slide 26: Construction Equipment: Net sales and adjusted operating income
Construction Equipment NET SALES AND ADJUSTED OPERATING INCOME Volvo Group Second quarter 2019 26 2019-07-18
Slide 27: Buses: Net sales and adjusted operating income
Buses NET SALES & ADJUSTED OPERATING INCOME Net sales currency-adjusted +22%: o Vehicle +25% o Services +5% Adjusted operating income: + Vehicles sales - Market mix - Industrial efficiency Volvo Group Second quarter 2019 27 2019-07-18
Slide 28: Volvo Penta: Net sales and adjusted operating income
Volvo Penta NET SALES & ADJUSTED OPERATING INCOME Net sales currency-adjusted -1%: o Engines -1% o Services +1% Adjusted operating income: + Product mix - Volumes - R&D Volvo Group Second quarter 2019 28 2019-07-18
Slide 29: Financial Services: Credit portfolio and profitability
Financial Services CREDIT PORTFOLIO AND PROFITABILITY Volvo Group Second First quarter quarter 2019 2019 29 2019-07-18
Slide 30: Second quarter highlights
Volvo Group SECOND QUARTER HIGHLIGHTS Net sales +SEK 17 bn, up 16% (+11% excl. currency) Adjusted operating income increased to SEK 15.1 bn (11.5), corresponding to a margin of 12.5% (11.1) Operating cash flow in the Industrial Operations SEK 13.9 (8.3) bn Volvo Group Second quarter 2019 30 20
Slide 31: Q&A
Q&A Volvo Group investor meeting at North American Commercial Vehicle Show Georgia World Congress Center, Atlanta Monday, October 28th