VOLVO CAR GROUP results presentation second quarter 2018
Patrik Tolf, Deputy CFO & head of Group Finance Hans Oscarsson, Senior vice president finance & CFO Nils Mösko, vice president & Head of investor relations
results presentation second quarter 2018 Hans Oscarsson, Senior - - PowerPoint PPT Presentation
VOLVO CAR GROUP results presentation second quarter 2018 Hans Oscarsson, Senior vice president finance & CFO Patrik Tolf, Deputy CFO & head of Group Finance Nils Msko, vice president & Head of investor relations DISCLAIMER By
Patrik Tolf, Deputy CFO & head of Group Finance Hans Oscarsson, Senior vice president finance & CFO Nils Mösko, vice president & Head of investor relations
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VOLVO CAR GROUP RESULTS PRESENTATION APRIL-JUNE 20182
(+27%) Revenue
(+29%) ebit
Ebit margin
3
(+15%) units
Operating & investing cash flow
VOLVO CAR GROUP RESULTS PRESENTATION APRIL-JUNE 2018Comparable period: April – June 2017 Europe is defined as EU + EFTA
US +34%
27,539 units
China +15%
32,712 units
EUROPE +6%
85,036 units
170,232 units Suv share 55%
4
VOLVO CAR GROUP RESULTS PRESENTATION APRIL-JUNE 2018 US plant inaugurated –global structure completed New S60 launched – SPA completed XC40 capacity increase
5
VOLVO CAR GROUP RESULTS PRESENTATION APRIL-JUNE 20185
6
VOLVO CAR GROUP RESULTS PRESENTATION APRIL-JUNE 2018Net revenue (MSEK) Retail sales (units) EBIT (MSEK)
14% 15%
YTD18 317,700 YTD17 277,700 Q218 170,200 Q217 148,500
24% 27%
YTD18 122,900 YTD17 99,400 Q218 66,000 Q217 52,000 3,290
15% 29%
YTD18 7,840 YTD17 6,800 Q218 4,250 Q217
6.3% EBIT margin 6.4% EBIT margin VOLVO CAR GROUP RESULTS PRESENTATION APRIL-JUNE 2018Net income (MSEK)
18% 40%
YTD18 5,600 YTD17 4,750 Q218 3,000 Q217 2,140
Investments (MSEK)
7Free cash flow (MSEK)
900
YTD18 YTD17 Q218 3,700 Q217 9,650
13,900 YTD18 16,800 Q218 YTD17 7,430 Q217
6.8% EBIT margin 6.4% EBIT margin8
MSEK
Other 2,600 Sales Mix and Pricing 3,600 Volume 7,800 Q2 2017 52,000 Q2 2018 66,000
+27%
VOLVO CAR GROUP RESULTS PRESENTATION APRIL-JUNE 2018XC 55% V 29% S 16% Other 15% US 16% China 19% Europe 50%
Retail sales by carline Q2 2018 Retail sales by carline Q2 2017
Retail sales by region Q2 2018 Retail sales by region Q2 2017
Other 13% US
14%
China 19% Europe 54% XC 47% V 37% S 16%
9
VOLVO CAR GROUP RESULTS PRESENTATION APRIL-JUNE 201810
2016 3,290 2017 4,250
Volume increase Sales mix positive Cost & Other
6.3%
EBIT margin
6.4%
EBIT margin
+29%
MSEK
* Change in inventories, accounts receivables and accounts payables, **Adjusted for interests and other items, *** Adjusted for exchange on cash
2,800 15,900 47,800 29,100 7,600 2018 Q1 Liquidity
EBITDA
Working capital* 6,100 Investments** 13,600 Financing*** 38,900
400
52,900 2018 Q2 Liquidity
Undrawn credit facilities Cash Marketable securities
11
MSEK Free cash flow MSEK 3,700
VOLVO CAR GROUP RESULTS PRESENTATION APRIL-JUNE 2018Net cash position of SEK 14.4bn (Q1 2018 SEK10.4bn)
R&D Expenses (SEKbn)
2 4 6 8 10 12 LTM Q2 2018 9.5 4.1% 2017 10.2 4.9% 2016 10.2 5.7% 2015 8.8 5.4% 2014 7.2 5.2%
R&D expenses % of Revenue
Investments (SEKbn)
32.7 6.0 17.0 9.7 15.7% 2016 25.6 6.1 13.1 6.4 14.3% 2015 18.9 5.5 8.7 4.7 11.5% 2014 18.6 4.8 8.6 5.2 13.6% 5.3 14.7 9.8 LTM Q2 2018 29.8 2017 12.8%
Non capitalised R&D Intangible investments Tangible investments % of Revenue
12
14,400 28,000 Debt 24,900
22,700
2,200 Liquidity 52,900 38,900 400 13,600
Long-term Debt Short-term Debt Cash & Cash Equivalents Marketable Securities Undrawn Credit Facilities
MSEK Net cash position of SEK 14.4bn (Q1 2018 SEK10.4bn)
13
VOLVO CAR GROUP RESULTS PRESENTATION APRIL-JUNE 2018210 420 420 750
420 420
2021 7,600
5,230 2,370
2020 3,540 2019 1,560 2018 2018 June 30 52,900 2026 2025 5,650
5,230
2024 2023 2022 3,420
3,000 Bonds Loans Liquidity
MSEK
14
Loans 43% Bonds 57%
Funding by type
VOLVO CAR GROUP RESULTS PRESENTATION APRIL-JUNE 201815
16
Continued strong growth and maintained strong profits Upside from renewed product portfolio Strong foundation for our longer term ambitions
VOLVO CAR GROUP RESULTS PRESENTATION APRIL-JUNE 201817
VOLVO CAR GROUP RESULTS PRESENTATION APRIL-JUNE 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 12.0% LTM Q2 2018 2017 26.2 8.1 6.5% 16.0 9.8% 2014 9.5 27.9 12.5% 2016 21.5 12.0% 2015
EBITDA margin, % EBITDA, MSEK
VOLVO CAR GROUP RESULTS PRESENTATION APRIL-JUNE 201818
Net revenue (SEKbn)
VOLVO CAR GROUP RESULTS PRESENTATION APRIL-JUNE 2018232 211 179 164 138 50 100 150 200 250 13.9% LTM Q2 2018 2017 2016 2015 2014
19
Net Revenue CAGR
10 20 30 40 29.8 9.8 5.3 14.7 LTM Q2 2018 2017 32.7 6.0 17.0 9.7 2016 25.6 6.1 13.1 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
612 572 534 503 466 200 400 600 800 7.1% LTM Q2 2018 2017 2016 2015 2014
Retail sales
EBIT (SEKbn)
5 10 15 20 +44% LTM Q2 2018 15.1
6.5%
2017 14.1
6.7%
2016 11.0
6.2%
2015 6.6
4.0%
2014 2.1
1.5%
EBIT % margin CAGR
20