Volvo Car Ab Class B · OMXSTO:VOLCAR_B
Volvo Car Ab Class B — Q3 2017 Earnings Presentation
26 slides from Volvo Car Ab Class B's earnings presentation, October 2017
Slide 1: Volvo Car Group results presentation January – September 2017
VOLVO CAR GROUP results presentation January – September 2017 Patrik Tolf, Deputy CFO & head of Group Finance Nils Mösko, vice president & Head of investor relations
Slide 2: Disclaimer
DISCLAIMER By accepting this document, the person to whom it is provided (the “Recipient”) agrees to be bound by the following obligations and limitations. This document has been prepared and issued by Volvo Car AB (together with its subsidiaries, “Volvo Cars”). The information contained in this doc
Slide 3: Financial highlights first 9 months
Financial highlights first 9 months BNSEK 10.5 ebit 413,500 7.0% Ebit margin units BNSEK 149.3 Revenue BNSEK -7.5 Operating and investing cash flow VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-SEPTEMBER 2017 3
Slide 4: Sales
sales Global growth +9.0% EUROPE +6.2% US –2.7% Good growth Recovery after Delivery constraints China +29.9% continuous Strong growth Comparable period: Jan – Sept 2016 VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-SEPTEMBER 2017 Europe is defined as EU28 + EFTA 4
Slide 5: New XC40 launch
New XC40 launch New segment Full SUV line-up First Volvo car on CMA Start of production in Gent, November 2017 Care by Volvo... VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-SEPTEMBER 2017 5
Slide 6: Care By Volvo
Care By Volvo Subscription service Standardised fee New car every 24 months Flexibility to switch cars Including service package VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-SEPTEMBER 2017 6
Slide 7: Stand-alone electrified performance car company
Forms part of Volvo Cars’ electrification strategy Stand-alone electrified performance car company SEK 6.1 billion investment Volvo Cars and Geely Holding Fully consolidated VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-SEPTEMBER 2017 7
Slide 8: Lynk & Co and GV ltd.
Lynk & CO and GV ltd. Lynk & Co Investment Co Ltd GV Automobile Technology (Ningbo) Co Ltd • Jointly owned by Volvo Cars 30%, Geely • 50/50 owned by Volvo Cars and Geely Holding 20% and Geely Auto 50% Holding • Co-ordination of engineering of shared • Purchasing, manufacturing, marketing, technologi
Slide 9: Financials
Financials VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-SEPTEMBER 2017 9
Slide 10: Key financial developments January – September 2017
key financial developments January – September 2017 Retail sales (units) Net revenue (MSEK) Capex (MSEK) +9% +19% +45% 379,300 413,500 149,300 17,700 125,500 12,200 2016 2017 2016 2017 2016 2017 EBIT (MSEK) Net income (MSEK) Free cash flow (MSEK) +36% 10,500 +43% 7,700 7,300 -2,300 5,100 6.1% 7.0% E
Slide 11: Net revenue
Income Statement Net revenue MSEK +19% 8,000 149,300 3,800 12,000 125,500 Jan-Sept 2016 Volume Sales mix and pricing Other Jan-Sept 2017 VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-SEPTEMBER 2017 11
Slide 12: Revenue by carline and region
Revenue by carline and region Revenue by carline Jan-Sept 2017 Revenue by region Jan- Sept 2017 S Americas 16% 19% EMEA 53% XC 57% 27% V 28% Asia Pacific Revenue by carline FY 2016 Revenue by region FY 2016 S Americas 13% 20% 23% V EMEA 54% 64% 26% XC Asia Pacific VOLVO CAR GROUP RESULTS PRESENTATIO
Slide 13: EBIT improvement
Income Statement ebit improvement MSEK +36% 3,300 100 10,500 -600 7,700 7.0% EBIT margin 6.1% EBIT margin Jan-Sept 2016 Volume Sales mix and pricing Fixed cost and Other Jan-Sept 2017 VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-SEPTEMBER 2017 13
Slide 14: Cash Flow movements
Cash Flow Statement Cash Flow movements MSEK Free cash flow MSEK -7,500 19,300 49,300 6,000 -9,100 43,700 4,700 12,500 -17,700 3,300 -3,200 38,600 27,900 RCF Mkt sct Cash 2016 FY Liquidity EBITDA Working capital Investments* Financing** 2017 30 Sept Liquidity *Adjusted for interests and other items,
Slide 15: Investments
Balance Sheet Investments Investments (MSEK) 30,800 13.9% 15.1% 13.5% 11.5% 25,200 7,700 6,400 18,600 18,900 5,200 4,700 16,800 12,700 % Revenue 8,600 8,700 Series Intangible investments Tangible investments 4,800 5,500 6,100 6,300 Non capitalised R&D 2014 2015 2016 LTM 2017 VOLVO CAR GROUP RESULTS
Slide 16: Liquidity & debt structure as of September 30, 2017
Balance Sheet Liquidity & debt structure as of September 30, 2017 MSEK 43,700 12,500 20,800 Net cash position of SEK 8,3bn 3,300 8,300 22,900 7,700 27,900 3,100 Undrawn Revolving Credit Facility (RCF) Marketable Securities Cash & Cash Equivalents 12,100 Bonds Short-term Debt Long-term Debt Liquidity
Slide 17: Amortisation schedule as of Sept 30, 2017
Balance Sheet Amortisation schedule as of Sept 30, 2017 MSEK 43,700 6,600 1,800 4,600 3,200 3,500 3,000 4,800 Liquidity 1,200 Loans Bonds 2017 Sept 30 2017 2018 2019 2020 2021 2022 VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-SEPTEMBER 2017 17
Slide 18: Outlook 2017
Outlook 2017 Continued revenue growth Maintained strong profits Increased production capacity XC40 Start of production on CMA VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-SEPTEMBER 2017 18
Slide 19: Questions
QUESTIONS VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-SEPTEMBER 2017 19
Slide 20: Appendix 1: Working Capital and CCC days
Appendix 1: Working Capital and CCC days Change in Working capital (MSEK) 12 months rolling CCC* days 7 1 -1 -3 4 4,700 -9,100 -10,000 -3,800 Inventory Receivables Payables Jan-Sept 2016 Inventory Receivables Payables 2017 2017 total Sept 30 Sept 30 Working *CCC = Cash Conversion Cycle VOLVO CAR GRO
Slide 21: Appendix 2: Retail sales
Appendix 2: Retail sales VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-SEPTEMBER 2017 21
Slide 22: Appendix 3: Key figures
Appendix 3: Key figures VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-SEPTEMBER 2017 22
Slide 23: Appendix 4: Definitions of performance measures
Appendix 4: Definitions of performance measures VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-SEPTEMBER 2017 23
Slide 24: Appendix 5: Reconciliation tables of performance measures
Appendix 5: Reconciliation tables of performance measures VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-SEPTEMBER 2017 24
Slide 25: Appendix 5: Reconciliation tables of performance measures contd.
Appendix 5: Reconciliation tables of performance measures contd. VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-SEPTEMBER 2017 25
Slide 26: VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-SEPTEMBER 2017
VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-SEPTEMBER 2017 26