Volvo Group THIRD QUARTER 2016 MARTIN LUNDSTEDT PRESIDENT AND CEO. Volvo Group Headquarters Third quarter

Transcription

1 Volvo Group THIRD QUARTER 2016 MARTIN LUNDSTEDT PRESIDENT AND CEO 1

2 VOLVO GROUP Third quarter highlights NET SALES SEK bn 12 months 299 bn ADJUSTED OPERATING MARGIN* 12 months 6.7% % 6.9% 7.0% Maintained profitability despite lower volumes Adjusted operating margin* 7.0% (6.9) Trucks adjusted operating margin* 8.2% (7.2) on 13% lower volumes *Adjustments: 2016: Capital gain on sale of external IT operations and EU provision (190 in 2016) 2015: Restructuring charges in efficiency program (434 in 2015) 2

3 VOLVO GROUP Volume development in the third quarter VOLUME -13% TRUCK DELIVERIES Units -6,183 MACHINE DELIVERIES Units VOLUME 0% Total Change 60,000 Total Change Volvo 22,353-3,142 UD 4, Renault Trucks 9, Mack 3,963-2,660 50,000 40,000 30,000 20,000 10,000 0,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0, Volvo 6, SDLG 2,

4 VOLVO GROUP Service sales development Trucks SERVICE SALES SEK bn +2% +1% ex FX 12 months 66.0 bn Volvo CE Buses Volvo Penta Excl FX 0 4

5 TRUCKS

6 VOLVO TRUCKS Automation in Boliden mine 6

7 VOLVO TRUCKS Awarded at IAA - Fehrenkötter test winner 2016 #1 Total cost of ownership #1 Fuel consumption #1 Overall winner 7

8 TRUCKS Market environment EUROPE NORTH AMERICA 400 HD : 302 Forecast 2016: 240 Forecast 2017: HD 2015: 270 Forecast 2016: 295 Forecast 2017: BRAZIL HD : 42 Forecast 2016: 30 Forecast 2017: ASIA HD+MD China India Japan 2015: 751 Forecast 2016: 870 Forecast 2017: : 278 Forecast 2016: 330 Forecast 2017: : 90 Forecast 2016: 90 Forecast 2017:

9 TRUCKS Market shares HD % NORTH AMERICA YTD September 12,0 9,6 Volvo EUROPE EU28 YTD August 16,0 16,7 8,0 8,0 7,3 7,8 JAPAN Volvo Mack YTD September 18,0 16,3 Renault BRAZIL UD YTD September 20,0 18,9 SOUTH AFRICA YTD August Volvo 13,4 15,0 AUSTRALIA YTD September 14,6 16,2 9,0 8,6 9,1 8,6 2,0 1,5 Volvo 9 UD Volvo Mack UD

10 TRUCKS Orders and deliveries NORTH AMERICA Orders +6% Deliveries +11% EUROPE Orders -37% Deliveries -46% Orders Orders Deliveries SOUTH AMERICA Orders Orders -4% Deliveries -3% ASIA Orders -24% Deliveries -11% AFRICA & OCEANIA Orders Orders +36% Deliveries -21% Orders 10 Deliveries Deliveries Deliveries Deliveries

11 CONSTRUCTION EQUIPMENT

12 CONSTRUCTION EQUIPMENT Innovations showcased at Xploration Forum Hybrid wheel-loader Autonomous battery-electric carrier 12

13 CONSTRUCTION EQUIPMENT Market environment EUROPE NORTH AMERICA 50 Forecast 2016: 0% to +10% Forecast 2017: -5% to +5% Forecast 2016: -10% to 0% Forecast 2017: -10% to 0% CHINA Forecast 2016: -10% to 0% Forecast 2017: 0% to +10% ASIA EXCL. CHINA Forecast 2016: -10% to 0% Forecast 2017: -5% to +5% 0 Total market size is Volvo CE estimation

14 CONSTRUCTION EQUIPMENT Orders and deliveries NORTH AMERICA Orders +6% Deliveries -24% Orders +1% Deliveries +9% EUROPE Orders Orders Deliveries SOUTH AMERICA Orders +53% Deliveries +2% Deliveries Orders Orders 14 Orders +24% Deliveries +2% ASIA Orders +69% Deliveries -6% AFRICA & OCEANIA Orders Deliveries Deliveries Deliveries

15 BUSES Order intake and deliveries decreased by 7% respectively, mainly driven by Asia and South America First order for Volvo 7900 Electric In focus at IAA fair: - Volvo Dynamic Steering - Pedestrian and Cyclist Detection - Energy efficiency focus

16 VOLVO PENTA Continued sales growth, driven by good product mix Service sales increased by 13% driven by higher marine leisure volumes Gaining new customers in off-road engine segment

17 Volvo Group THIRD QUARTER 2016 JAN GURANDER DEPUTY CEO AND CFO 17

18 VOLVO GROUP Net sales per market NET SALES SEK bn Europe Currency +0.3 bn -6.8 North America South America Asia Africa & Oceania 2016

19 VOLVO GROUP Adjusted operating income per business area ADJUSTED OPERATING INCOME* SEK M ,087* Currency -45 M ,846* 2015 Trucks Volvo CE Buses *Adjustments: 2016: EU provision (190) 2015: Restructuring charges in efficiency program (434) Volvo Penta Financial Services Group Functions & Other

20 VOLVO GROUP Adjusted operating income contributors + Market mix high volumes in Europe + Lower S&A expenses + Lower material cost + Service business + Higher R&D capitalization ADJUSTED OPERATING INCOME* SEK M 5,087* -1, Currency - 45 M ,846* Lower volumes and capacity utilization 2015 Gross income Cash R&D R&D capitaliz. Selling Admin. Other 2016 *Adjustments: 2016: EU provision (190) 2015: Restructuring charges in efficiency program (434) 20

21 VOLVO GROUP INDUSTRIAL OPERATIONS Cash flow OPERATING CASH FLOW SEK bn 12 months SEK 13.3 bn INVESTMENTS IN PPE SEK bn 12 months SEK 5.5 bn CASH FLOW EFFECT FROM CHANGES IN WORKING CAPITAL SEK bn Accounts receivable Inventories Trade payables Other Total change 21

22 TRUCKS Net sales NET SALES SEK bn 12 months bn -9% Delivered trucks -13%: - North America -46% - Europe +11% Net sales currency-adjusted -10%: - vehicles -13% - service -1%

23 TRUCKS Adjusted operating income ADJUSTED OPERATING INCOME* SEK bn 12 months 17.1 bn Currency 189 M ADJUSTED OPERATING INCOME SEK M 3,615* + Positive market mix high volumes in Europe + Lower S&A expenses + Lower material cost + Service business + Higher R&D capitalization 3,756* ADJUSTED OPERATING MARGIN* % 12 months 8.5% 8.2% 7.2% 4.9% - Lower volumes and capacity utilization in NA *Adjustments: 2016: EU provision (190 in 2016) 2015: Restructuring charges in efficiency program (368 in 2015), arbitration case and capital gain on Eicher shares 2014:Restructuring charges in efficiency program, EU provision and gain on real estate sale 23

24 CONSTRUCTION EQUIPMENT Net sales NET SALES SEK bn 12 months 48.6 bn -3% Delivered machines 0%: -Volvo-4% -SDLG +10% Net sales currency-adjusted -2%: - machines -2% - service -1%

25 CONSTRUCTION EQUIPMENT Adjusted operating income ADJUSTED OPERATING INCOME* SEK M 12 months 1,561 M Currency -104 M ADJUSTED OPERATING INCOME SEK M 576* Lower credit losses China ADJUSTED OPERATING MARGIN* % 12 months 3.2% - Negative product mix - Currency 5.1% 4.8% 5.2% *Excluding restructuring charges in efficiency program for comparison periods

26 BUSES Net sales & adjusted operating income NET SALES SEK bn months 24.7 bn Net sales currency-adjusted 0% - vehicles -1% - service +1% Adjusted operating income: + lower costs - lower volumes - currency - product & market mix Adjusted operating margin* 4.3% (6.1) ADJUSTED OPERATING INCOME* SEK M 12 months 897 M Currency -138 M * Excluding restructuring charges in efficiency program for comparison periods

27 VOLVO PENTA Net sales & adjusted operating income NET SALES SEK bn months 9.7 bn Net sales currency-adjusted +5% - engines +1% - service +14% Adjusted operating income: + favorable product mix Adjusted operating margin* 14.5% (13.5) ADJUSTED OPERATING INCOME* SEK M 12 months 1,253 M Currency 16 M * Excluding restructuring charges in efficiency program for comparison periods

28 FINANCIAL SERVICES New financing and profitability NEW FINANCING SEK bn 12 months 53.9 bn ADJUSTED OPERATING INCOME* SEK M 12 months 2,053 M ROE* 12 months, % 11.8% 13.4% 13.3% * Excluding restructuring charges in efficiency program for comparison periods

29 VOLVO GROUP Third quarter highlights NET SALES SEK bn 12 months 299 bn ADJUSTED OPERATING MARGIN* 12 months 6.7% % 6.9% 7.0% Maintained profitability despite lower volumes Adjusted operating margin* 7.0% (6.9) Trucks adjusted operating margin* 8.2% (7.2) on 13% lower volumes *Adjustments: 2016: Capital gain on sale of external IT operations and EU provision (190 in 2016) 2015: Restructuring charges in efficiency program (434 in 2015) 29

30 Volvo Group THIRD QUARTER