FOURTH QUARTER 2017 Martin Lundstedt, President and CEO

Transcription

1 FOURTH QUARTER 2017 Martin Lundstedt, President and CEO

2 Volvo Group FOURTH QUARTER HIGHLIGHTS Net sales +11% (+16% excl. currency) Continued improved profitability for the Group - Trucks adjusted operating margin 9.5% (8.7) - Construction Equipment s adjusted operating margin 10.9% (3.8) Highest Net sales and Operating income so far for a Q4 NET SALES SEK bn months 335 bn 91.7 Q4 Q1 Q2 Q3 Q4 ADJUSTED OPERATING MARGIN* % 6.9% Q4 Q1 Q2 Q3 Q4 *Adjustments, see note 6 in Q4 report: Q4 2016: Gain on sale of real estate SEK 1,371 M Q4 2017: No adjustments 12 months 8.9% 8.0% 2

3 Volvo Group VOLUME DEVELOPMENT IN THE FOURTH QUARTER TRUCK DELIVERIES Units HD/MD 60,000 50, months 186,294 +8, % MACHINE DELIVERIES Units 12 months 64,127 +5, % Total Change Volvo 34,293 +6,359 UD 5, Renault Trucks 9, Mack 5, ,000 30,000 20,000 10,000 0,000 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0,000 Total Change Volvo 8,749 +1,880 SDLG 7,060 +3,334 3

4 Volvo Group SERVICE SALES DEVELOPMENT SERVICE SALES SEK bn +3% +8% ex FX 12 months 71.7 bn CONSTRUCTION TRUCKS BUSES VOLVO PENTA EQUIPMENT 4

5 Trucks Good demand Stretched supply chain New trucks in NA well received production change-over underway Sales start of mediumduty electric trucks in

6 Trucks GREAT RECEPTION OF THE NEW TRUCKS IN NORTH AMERICA - CHANGE-OVER IN PRODUCTION UNDERWAY Volvo VNL North America Mack Anthem North America 6

7 Trucks MARKET ENVIRONMENT NORTH AMERICA HD BRAZIL HD : 244 Forecast 2018: : 32 Forecast 2018: : ~307 Forecast 2018: China India EUROPE HD ASIA HD+MD Japan 2017: Forecast 2018: : 334 Forecast 2018: : 96 Forecast 2018:

8 Trucks MARKET SHARES HD% NORTH AMERICA EUROPE EU28, YTD NOVEMBER 16,9 16,8 JAPAN 9,9 8,3 7,8 7,3 8,0 8,6 17,0 19,0 Volvo Renault Trucks Volvo Mack UD BRAZIL 18,9 18,4 AUSTRALIA Volvo SOUTH AFRICA 14,0 15,3 8,7 10,3 16,1 15,4 Volvo 9,4 8,5 Mack 2,0 3,3 UD Volvo UD 8

9 Trucks HD/MD: ORDERS +28% AND DELIVERIES +19% NORTH AMERICA EUROPE Orders Deliveries SOUTH AMERICA Orders +84% Deliveries +28% AFRICA & OCEANIA Orders Deliveries ASIA Orders +22% Deliveries +14% Orders Deliveries Orders +100% Deliveries +33% Orders Deliveries Orders -14% Deliveries -1% Orders Deliveries Orders -16% Deliveries +24% 9

10 Construction Equipment Market growth across all regions Orders up 48% and deliveries up 49% Transformation program continues to yield result 10

11 Construction Equipment NEW RANGE OF VOLVO BRANDED RIGID HAULERS 11

12 Construction Equipment MARKET ENVIRONMENT NORTH AMERICA Forecast 2018: 0% to +10% EUROPE Forecast 2018: 0% to +10% CHINA Forecast 2018: +10% to +20% SOUTH AMERICA ASIA (excl. China) Forecast 2018: 0% to +10% Forecast 2018: 0% to +10%

13 Construction Equipment ORDERS +48% AND DELIVERIES +49% NORTH AMERICA EUROPE Orders Deliveries SOUTH AMERICA Orders +86% Deliveries +6% AFRICA & OCEANIA ASIA Orders Deliveries Orders +8% Deliveries +14% Orders Deliveries Orders +59% Deliveries +11% Orders Deliveries Orders +84% Deliveries +68% Orders Deliveries Orders +76% Deliveries +77% 13

14 Buses Mixed market development Order decrease by -28%, Order intake +34% delivery increase by 1% across regions 50 hybrid buses to Deliveries of the new 8- Singapore litre chassis platform for Asian Partnership markets to test started Largest electric autonomous order ever of complete buses in Singapore electric hybrid traffic solutions to Belgium 14

15 Volvo Penta Sales growth in both industrial and marine segments Order increase by 17%, delivery increase by 11% Good inroads into the agricultural segment Beet harvester powered by Volvo Penta 15

16 FOURTH QUARTER 2017 Jan Gurander, deputy CEO and CFO

17 Volvo Group NET SALES PER MARKET NET SALES SEK bn Currency -3.7 bn Q Europe North America South America Asia Africa & Oceania Q

18 Volvo Group ADJUSTED OPERATING INCOME PER BUSINESS AREA ADJUSTED OPERATING INCOME* SEK M 5,660* +1,042 +1, Currency -778 M ,334* Q Trucks Volvo CE Buses *Adjustments, see note 6 in Q4 report: Q4 2016: Gain on sale of real estate SEK 1,371 M Q4 2017: No adjustments Volvo Penta Financial Group ServicesFunctions & Other Q

19 Volvo Group ADJUSTED OPERATING INCOME CONTRIBUTORS ADJUSTED OPERATING INCOME* SEK M +1, ,660* Currency -778 M ,334* Truck and construction volumes - Higher selling and admin. cost - R&D - Stretched supply chain Q Gross income Cash R&D R&D capitalization *Adjustments, see note 6 in Q4 report: Q4 2016: Gain on sale of real estate SEK 1,371 M Q4 2017: No adjustments Selling Admin. Other Q

20 Volvo Group Industrial Operations CASH FLOW OPERATING CASH FLOW SEK bn 12 months SEK 28.4 bn INVESTMENTS IN PPE SEK bn 12 months SEK 5.7 bn CASH FLOW EFFECT FROM CHANGES IN WORKING CAPITAL SEK bn Accounts receivable Inventories Trade payables Other Total change 20

21 Trucks NET SALES NET SALES SEK bn 12 months bn +12% Delivered HD/MD trucks +19%: - North America +28% - Europe +14% Net sales currencyadjusted +16%: - vehicles +18% - services +9% Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 21

22 Trucks ADJUSTED OPERATING INCOME ADJUSTED OPERATING INCOME* SEK M ADJUSTED OPERATING INCOME* SEK bn 12 months 20.4 bn Currency -377 M ,754 + Higher volumes 5,796 ADJUSTED OPERATING MARGIN* 12 months 9.4% % 8.7% 9.5% 7.9% - Selling cost - Higher R&D cost - Stretched supply chain *Adjustments, see note 6 in Q4 report: Q4 2016: Gain on sale of real estate SEK 71 M Q4 2017: No adjustments Q Q

23 Construction Equipment NET SALES NET SALES SEK bn months 66.5 bn +28% 16.7 Delivered machines +49%: - Volvo +27% - SDLG +89% - large and medium +51% - compact +41% Net sales currencyadjusted +34%: - machines +39% - services +11% Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 23

24 Construction Equipment ADJUSTED OPERATING INCOME ADJUSTED OPERATING INCOME* SEK M 12 months 7,917 M Currency -324 M ADJUSTED OPERATING INCOME* SEK M 1,816 ADJUSTED OPERATING MARGIN* % 12 months 11.9% 10.9% 1,816 + Higher volumes Capacity utilization 3.8% % Q Q *Adjustments, see note 6 in Q4 report: Q4 2016: No adjustments Q4 2017: No adjustments 24

25 Buses NET SALES & ADJUSTED OPERATING INCOME NET SALES SEK bn months 26.1 bn 7.0 ADJUSTED OPERATING INCOME* SEK M 12 months 928 M Currency -89 M Net sales currencyadjusted -8%: - vehicles -11% - services +8% Adjusted operating income: + service sales + operational efficiency - S&A *Adjustments, see note 6 in Q4 report: Q4 2016: Gain on sale of real estate SEK 41 M Q4 2017: No adjustments Adjusted operating margin* 4.1% (3.3) 25

26 Volvo Penta NET SALES & ADJUSTED OPERATING INCOME NET SALES SEK bn 12 months 11.1 bn ADJUSTED OPERATING INCOME* SEK M 12 months 1,439 M Currency -30 M Net sales currencyadjusted +14%: - engines +17% - services +6% *Adjustments, see note 6 in Q4 report: Q4 2016: No adjustments Q4 2017: No adjustments 187 Adjusted operating income: + Higher sales + Product mix Adjusted operating margin* 7.0% (6.5) 26

27 Financial Services NEW FINANCING AND PROFITABILITY ADJUSTED OPERATING INCOME* SEK M 12 months 2,192 M NEW FINANCING SEK bn 12 months 57.9 bn ROE 1 12 months, % % 13.7% 14.3% 1) Excluding positive revaluation effect in Q of SEK 897 M related to new tax rates in USA. Reported ROE including revaluation effect was 22.6%. 27

28 Full Year 2017

29 Volvo Group ADJUSTED OPERATING INCOME FY2017 ADJUSTED OPERATING INCOME* SEK M +9, ,715 21,094* Currency -362 M ,681 29,928* + Higher volumes in Volvo CE + Higher truck volumes + Higher service sales + JV profitability - Higher S&A expenses - R&D - Stretched supply chain FY2016 Gross income Cash R&D 29 R&D capitalization Selling Admin. Other FY2017 *Adjustments, see note 6 in Q4 report: 2016: Gain on sale of IT operation 885, Provision for EU investigation -2,524, Gain on sale of real estate SEK 1,371 M 2017: Capital gain on sale of shares in Deutz SEK 400 M

30 Volvo Group FY2017 HIGHLIGHTS Highest Net sales and EBIT so far: - Net sales: SEK 335 bn - EBIT: SEK 30 bn NET SALES SEK bn 335 ADJUSTED OPERATING MARGIN* % 8.9% Operating cash flow: SEK 28 bn % Net cash position: SEK 26 bn Proposed dividend of SEK 4.25 (3.25) *Adjustments, see note 6 in Q4 report 2017 and 2016 annual report. 30

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