VOLVO CAR GROUP results presentation January March 2018 Patrik - - PowerPoint PPT Presentation

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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


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VOLVO CAR GROUP results presentation January – March 2018

Patrik Tolf, Deputy CFO & head of Group Finance Nils Mösko, vice president & Head of investor relations

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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 document is derived from sources that have not been independently verified. Except in the case of fraudulent misrepresentation, no responsibility or liability is accepted by Volvo Cars or by any

  • f its respective officers, employees, affiliates or agents in relation to the accuracy, completeness or sufficiency of

any information contained herein or any other written or oral information made available by Volvo Cars in connection therewith or any data which any such information generates, or for any loss whatsoever arising from or in connection with the use of or reliance on this document and any such liability is expressly disclaimed. Analyses and

  • pinions contained herein may be based on assumptions that, if altered, can change the analyses or opinions
  • expressed. This document speaks as of the date hereof and in providing this document, Volvo Cars gives no

undertaking and is under no obligation to provide the Recipient with access to any additional information or to update this document or to correct any inaccuracies in it which may become apparent. Volvo Cars’ past performance is not necessarily indicative of future results and nothing contained herein shall constitute any representation or warranty as to future performance of Volvo Cars or any security, credit, currency, rate or other market or economic measure. Nor does this document constitute a recommendation with respect to any securities.

VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018

DISCLAIMER

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SLIDE 3 VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018

Financial Summary q1 2018 BNSEK 56.8

Revenue

BNSEK 3.6

ebit

147k

units

6.4%

Ebit margin

3

mSEK -2,800

Operating & investing cash flow

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Comparable period: Jan – Mar 2017 Europe is defined as EU + EFTA

US +49.0% China +23.3% EUROPE +5.7%

Global growth +14.1%

Volvo Car Group Sales

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VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018
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Q1 2018 highlights

Complete 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

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VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018
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Financials

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key financial developments Q1 2018

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 2018

Net income (MSEK)

Q117 2,600 2,560

  • 2%

Q118

Investments (MSEK)

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Free cash flow (MSEK)

  • 2,900
  • 2,300

Q117 Q118 Q118 7,040

  • 10%

Q117 6,340

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Net revenue

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MSEK

19%

Q1 2018

  • 530

Sales Mix and Pricing 4,150 Volume 5,400 Q1 2017 47,800 Other 56,820

VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018

Income Statement

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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 carline and region

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%

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VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018
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10

MSEK

370

3%

3,620 Cost, FX and Other

  • 1,590

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 2018

ebit improvement

Income Statement

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* Change in inventories, accounts receivables and accounts payables, **Adjusted for interests and other items, *** Adjusted for exchange on cash

Investments**

  • 6,100

Working capital*

  • 3,700

47,900 29,100

2,900

15,900 Financing***

  • 3,400

EBITDA 6,900 2017 FY Liquidity 54,600 35,400 4,000 15,200 2018 Q1 Liquidity

Cash Marketable securities Undrawn credit facilities

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MSEK Free cash flow MSEK -2,900

VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018

Cash Flow movements

Cash Flow Statement

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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

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Investments and R&D

VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018
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Liquidity & debt – comfortable net cash position

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)

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VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018
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Balanced Amortisation schedule

6,900 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

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64% Loans 36% Bonds

Funding by type

VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018
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Looking ahead

VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018
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Outlook 2018

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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 2018
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Questions

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VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018
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NEW 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

Volvo Cars’ Transformation

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 2018

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Another year of strong growth

Net revenue (SEKbn)

VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2018

220 211 181 164 138 50 100 150 200 250 12.4% LTM Q1 2018 2017 2016 2015 2014

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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

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SLIDE 20 VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-DECEMBER 2017

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