VOLVO CAR GROUP results presentation January – March 2018
Patrik Tolf, Deputy CFO & head of Group Finance Nils Mösko, vice president & Head of investor relations
VOLVO CAR GROUP results presentation January March 2018 Patrik - - PowerPoint PPT Presentation
VOLVO CAR GROUP results presentation January March 2018 Patrik Tolf, Deputy CFO & head of Group Finance Nils Msko, vice president & Head of investor relations DISCLAIMER By accepting this document, the person to whom it is
Patrik Tolf, Deputy CFO & head of Group Finance Nils Mösko, vice president & Head of investor relations
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VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 20182
Revenue
ebit
units
Ebit margin
3
Operating & investing cash flow
Comparable period: Jan – Mar 2017 Europe is defined as EU + EFTA
US +49.0% China +23.3% EUROPE +5.7%
4
VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018Complete SUV line up XC40 sales start a success – 6,200 cars sold and 24,000 orders XC60 named World Car of the Year 2018 New V60 – launched in February Lynk & Co cars – to be produced in Ghent Named one of the World’s Most Ethical Companies – for the second time First climate neutral manufacturing plant – renewable heating in Skövde
5
VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 20186
Net revenue (MSEK) Retail sales (units) EBIT (MSEK)
Q118
14%
129,150 Q117 147,400 Q118 56,820 47,800 Q117
19%
3,500 Q117 3,620 Q118
3%
7.3%
EBIT margin
6.4%
EBIT margin
VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018Net income (MSEK)
Q117 2,600 2,560
Q118
Investments (MSEK)
7Free cash flow (MSEK)
Q117 Q118 Q118 7,040
Q117 6,340
8
MSEK
19%
Q1 2018
Sales Mix and Pricing 4,150 Volume 5,400 Q1 2017 47,800 Other 56,820
VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018Income Statement
XC 47% V 35% S 18% Other 12% US 14% China 20% Europe 54%
Retail sales by carline Q1 2018 Retail sales by carline Q1 2017
Retail sales by region Q1 2018 Retail sales by region Q1 2017
Other 13% US
11%
China 18% Europe 58% XC 47% V 38% S 15%
9
VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 201810
MSEK
370
3%
3,620 Cost, FX and Other
Sales Mix and Pricing Volume 1,340 Q1 2017 3,500 Q1 2018
7.3%
EBIT margin
6.4%
EBIT margin
VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018Income Statement
* Change in inventories, accounts receivables and accounts payables, **Adjusted for interests and other items, *** Adjusted for exchange on cash
Investments**
Working capital*
47,900 29,100
2,900
15,900 Financing***
EBITDA 6,900 2017 FY Liquidity 54,600 35,400 4,000 15,200 2018 Q1 Liquidity
Cash Marketable securities Undrawn credit facilities
11
MSEK Free cash flow MSEK -2,900
VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018Cash Flow Statement
R&D Expenses (SEKbn)
2 4 6 8 10 12 10.2 4.8% 2016 LTM Q1 2018 9.6 2017 4.4% 10.2 5.6% 2015 8.8 5.4% 2014 7.2 5.2%
R&D expenses % of Revenue
Investments (SEKbn)
31.7 5.4 LTM 2018 Q1 16.3 10.0 2017 14.4% 6.1 25.2 2016 15.3% 9.7 16.6 6.0 32.3 4.7 11.5% 2014 18.9 5.5 8.7 12.7 6.4 13.9% 2015 18.6 4.8 8.6 5.2 13.6%
Intangible investments Tangible investments Non capitalised R&D % of Revenue
12
26,300 Debt 21,600 6,700
1,700
13,200 Liquidity 47,900 29,100 2,900 15,900 10,400
Short-term Debt Bonds Long-term Debt Cash & Cash Equivalents Marketable Securities Undrawn Credit Facilities
MSEK Net cash position of SEK 10.4bn (2017 SEK12.5bn)
13
VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 20186,900 5,100 1,800 2020 3,000 2019 1,500 2018 2025 5,100 2022 3,000 2021 1,100 2017 Dec 31 47,900
Bonds Loans Liquidity
MSEK
14
64% Loans 36% Bonds
Funding by type
VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 201815
16
Further sales progress - complete SUV line up New disruptive business opportunities Complete product portfolio renewal Truly global manufacturing footprint Continued strong growth and improved profits
VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 201817
VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018NEW ERA AS AN INDEPENDENT, STANDALONE COMPANY UNDER GEELY OWNERSHIP
Zhejiang Geely Holding Group acquires Volvo Cars 2010 2013 Volvo Cars unveils the all-new XC90, the first product on the SPA platform 2014 Volvo Cars achieves new record unit sales of 503k and improved profitability 2015 Further footprint optimisation, new plant in US Initiation of strategic repositioning Commencement of the largest investment programme in the Company’s history 2011
2010 – 2015 PHASE I “STRATEGIC TRANSFORMATION” 2016-2020E PHASE II “PROFITABLE GROWTH”
Introduces new generation powertrains 2016 Volvo Cars another record year of sales 534k and earnings SEK 11bn Enters into the debt capital markets Launch Polestar – pure progressive performance Launch new XC60 and XC40 (new segment entry) 2017 First OEM to commit to fully electrified fleet New ways to consumers: Care By Volvo subscription based ownership 30% stake in Lynk & Co
6.9% 2013 9.0 7.4% 2012 12.1% LTM Q1 2018 2017 26.2 8.1 6.5% 16.0 9.8% 2014 9.5 26.7 12.4% 2016 21.5 11.9% 2015
EBITDA margin, % EBITDA, MSEK
VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 201818
Net revenue (SEKbn)
VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018220 211 181 164 138 50 100 150 200 250 12.4% LTM Q1 2018 2017 2016 2015 2014
19
Net Revenue CAGR
10 20 30 40 31.7 10.0 5.4 16.3 LTM 2018 Q1 2017 32.3 6.0 16.6 9.7 2016 25.2 6.1 12.7 6.4 2015 18.9 5.5 8.7 4.7 2014 18.6 4.8 8.6 5.2 Non capitalised R&D Tangible investments Intangible investments
Investments (SEKbn) Retail sales (Thousand)
CAGR
572 572 534 503 466 200 400 600 5.3% LTM Q1 2018 2017 2016 2015 2014
Retail sales
EBIT (SEKbn)
5 10 15 +44% LTM Q1 2018 14.2
6.5%
2017 14.1
6.7%
2016 11.0
6.1%
2015 6.6
4.0%
2014 2.1
1.5%
EBIT % margin CAGR
20