VOLVO CONSTRUCTION EQUIPMENT Corporate Presentation 2016
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THE VOLVO GROUP 3
Volvo Group 2016 Day in and day out, all around the year, people s decisions and basic needs create demand for transports and infrastructure solutions. Without the type of products and services the Volvo Group provides, the societies where many of us live would not function. Together we move the world. 4
The Volvo Group is one of the world s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The Volvo Group also provides complete solutions for financing and service. 5
The Volvo Group, which employs about 100,000 people, has production facilities in 18 countries and sales of products in more than 190 markets. 6
On the road In the city Off road At sea 7
Passion for customer success The majority of the Volvo Group s customers are companies within the transportation or infrastructure industries. The realibility and productivity of the products are important and in many cases crucial to our customers success and profitability. 8
The employer of choice Customer success We make our customers win. Trust We trust each other. Passion We have passion for what we do. Change We change to stay ahead. Performance We are profitable to shape our future. 9
Our Organization CEO and Group Executive Board Truck Divisions Group Functions Group Trucks Technology Group Trucks Operations Group Trucks Purchasing Business Areas Volvo Trucks UD Trucks Renault Trucks Mack Trucks Value Trucks & JV:s Volvo Construction Equipment Volvo Buses Volvo Penta Governmental Sales Volvo Financial Services Our Customers 10
Our Vision vision Be the most desired and successful transport solution provider in the world 11
Our mission Driving prosperity through transport solutions 12
Global industrial structure 13
Volvo Group 2015, SEK bn Net Sales 313 Operating income 23,3 11 12 13 14 15 11 12 13 14 15 14
Volvo Construction Equipment 2015, SEK bn Net Sales Operating income 51 2 11 12 13 14 15 11 12 13 14 15 15
VOLVO CONSTRUCTION EQUIPMENT 16
Develops, manufactures and markets equipment for construction and related industries Broad range of products and services Range of solutions in financing and used equipment Part of the Volvo Group 17
Our employees December 2015 EU Asia NAM SAM ROW Total = 13,880 * These figures exclude temporary employees, hired services and consultants. 18
Our products 19
Customer solutions Our products and services enhance the customer's experience and satisfaction and drive a greater brand experience Customer Solutions is a key contributor to Volvo CE s business FINANCIAL SERVICES Customer Solutions is the part of the organization that creates products to engage customers throughout the entire machine lifecycle USED EQUIPMENT ATTACHMENTS RENTAL BUSINESS PARTS SERVICE SOLUTIONS 20
Volvo CE organization: a global company HQ PLANTS REGIONAL SALES OFFICES HQ 21
Sales Regions Americas Volvo brand dealers: 71 Locations: 306 Sales persons: 621 Technicians: 1 803 EMEA Volvo brand dealers: 75 Locations: 589 Sales persons: 769 Technicians: 2 987 China Volvo brand dealers: 37 Locations: 271 Sales persons: 600 Technicians: 1 036 Volvo CE dealers globally Volvo Exclusive: 154 SDLG Exclusive: 188 Dual Brand (Volvo/SDLG): 58 Terex Trucks Exclusive: 111 Terex Trucks Multi Brand: 7 APAC Volvo brand dealers: 36 Locations: 358 Sales persons: 489 Technicians: 2 092 22
OUR CORE VALUES Safety first Always Our quality Environmental care 23
SAFETY FIRST ALWAYS 24
Volvo Construction Equipment is a recognized industry leader in the field of safety. We approach safety on 3 levels: PERSONAL SAFETY WORKSITE SAFETY MACHINE SAFETY By continuously improving products, tools and competence, we are step by step approaching our vision. A safe and healthy work environment People are the most important asset for Volvo Construction Equipment. Providing a safe and healthy work environment is essential to our business success. We are proactively addressing all improvement areas, contributing to the goal of being the most attractive employer in the industry! Watch our SAFETY VIDEO on YouTube 25
Our vision ZERO ACCIDENTS WITH VOLVO PRODUCTS 26
OUR QUALITY 27
Volvo Construction Equipment s commitment to quality starts by our vision is to be the model of excellence and care. Delivering a total quality experience to Fleet Owners, Operational Managers as well as those who operate our machines is key. Watch our QUALITY VIDEO on YouTube 28
Our vision TO DELIVER THE NUMBER ONE TOTAL QUALITY EXPERIENCE 29
ENVIRONMENTAL CARE 30
In 1972 Pehr G Gyllenhammar, former President and CEO, stated We are part of the problem but also part of the solution, and this is still valid. 2015-2020 Climate Savers partnership with the World Wide Fund for Nature (WWF) addresses e.g.: Increased machine fuel efficiency through improvements of existing products and advanced technologies Production site energy efficiency Customer site efficiency enhancements by improved operator behavior and machine utilization Hosting of the Construction Climate Challenge (CCC) program. Watch Volvo CE President Martin Weissburg introducing the CCC on YouTube 31
Volvo CE is part of Volvo Group s WWF Climate Savers partnership. We are committed to be a climate leader within the global construction equipment industry. Our vision TO BECOME THE WORLD LEADER IN SUSTAINABLE TRANSPORT SOLUTIONS 32
BACK-UP SLIDES 33
Company leadership Martin Weissburg President Anders Larsson Technology (acting) Jean-Marc des Courieres Operations Tomas Kuta Sales Thomas Bitter Marketing & Product Portfolio Image mssing Bill Law Corporate Communication Diana Niu Human Resources Edvard Carleson Legal Carl Lockwood Strategy Philippe Henriette Finance Jonas Jademyr Core Values Anders Larsson Volvo CE Investment China and Lingong Integration Office 34
Industrial footprint Plant R&D Motherwell, Scotland Braås, Sweden Arvika, Sweden Kaluga, Russia Changwon, Korea Shippensburg, US Hallsberg, Sweden Eskilstuna, Sweden Wrocław, Poland Pyeongtaek, Korea Pederneiras, Brazil Jinan, China Linyi, China Pederneiras, Brazil Linyi, China Hameln, Germany Konz, Germany Belley, France Bangalore, India Shanghai, China 35 Internal use only
Volvo CE Customer types and industry segments Customer Types* Industry Segments* Contractor (Projects) 62% Rental Provider 19% Recycling & Waste; 4% Agriculture & Landscaping; 8% Forestry; 2% Utilities; 2% Oil & Gas; 1% Material Handling; 3% Demolition; 1% Building; 31% Mining; 6% Producer (Site Dependent) 11% Quarries & Aggregates; 7% Other 4% Governmental 4% Road Construction; 17% Heavy Infrastructure; 18% * As of December 2015 36
The growth of our portfolio Machine volumes 90 000 80 000 70 000 60 000 50 000 40 000 30 000 Terex Trucks (2015) Ingersoll-Rand (2007) Lingong (2006) Skat Trak (2003) Backhoe Loaders (2002) Samsung (1998) Champion (1997) PelJob (1995) Akerman (1991) Zettelmeyer (1990) Wheel Loaders Articulated Haulers 20 000 10 000 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 37
Customer Offer The evolution of our company Financial Services Attachments Used Equipment Services Solutions Rental Business Parts 1991 2007 1997 2003 Total solutions provider 2002 1990 1991 1996 2006 1966 Multi-Specialist 1954 Specialist Time 38
Volvo CE vs. Industry: Share by Machine Range Industry (Volvo CE Portfolio)* Volvo Construction Equipment* 47% Excavators 23% Loaders 40% Excavators 35% Loaders 13% Utilities 9% Road 8% Haulers 16% Haulers 7% Road 2% Utilities * As of December 2015 39
Volvo CE vs. Industry: Share by Region Industry (Volvo CE Portfolio)* Volvo Construction Equipment* RoW 11% Europe 17% RoW 13% Asia Excl. China 16% Asia Excl. China 13% Europe 34% China 13% Latin America 5% North America 38% China 14% Latin America 5% North America 21% * As of end of December 2015 40
Three distinct construction brands Complementary offer Broader customer base 41 Internal use only
Quarry & Aggregates 42
Building 43
Utilities 44
Road construction 45
Oil & Gas 46
Demolition 47
Waste & Recycling 48
Forestry 49
Mining 50