VOLVO CAR GROUP results presentation Third quarter and first nine months 2018
Patrik Tolf, Deputy CFO & head of Group Finance Nils Mösko, vice president & Head of investor relations
results presentation Third quarter and first nine months 2018 Nils - - PowerPoint PPT Presentation
VOLVO CAR GROUP results presentation Third quarter and first nine months 2018 Nils Msko, vice president & Head of investor relations Patrik Tolf, Deputy CFO & head of Group Finance DISCLAIMER By accepting this document, the person to
Patrik Tolf, Deputy CFO & head of Group Finance Nils Mösko, vice president & Head of investor relations
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
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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 JULY- SEPTEMBER 2018
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VOLVO CAR GROUP RESULTS PRESENTATION JULY- SEPTEMBER 2018
3 Volvo car group
Production start in Charleston, US V60 cross country launched Polestar stand-alone AD concept revealed Retail sales +14% Net revenue +17.6% Operating income SEK 1.8bn Product launch costs, higher tariffs and license sales effects
Comparable period: July– Sep 2017 Europe is defined as EU28 + EFTA
26,307 units
34,712 units
69,318 units
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VOLVO CAR GROUP RESULTS PRESENTATION JULY- SEPTEMBER 2018
retail Sales Q3 2018
Retail sales by carline Q3 2018 Retail sales by region Q3 2018
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VOLVO CAR GROUP RESULTS PRESENTATION JULY- SEPTEMBER 2018
14% 25% 61% S V XC 45% 22% 17% 16% Europe China US Other
Retail sales q3 2018
Retail sales (units)
Q318 Q317 154,900 135,800
14%
Retail sales by carline Q3 2017 Retail sales by region Q3 2017
18% 30% 52% S XC V 47% 22% 17% 14% Europe China US Other
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VOLVO CAR GROUP RESULTS PRESENTATION JULY- SEPTEMBER 2018
Net revenue (MSEK) Retail sales (units) EBIT (MSEK)
413,500 Q317 Q318 YTD17 135,800 YTD18 472,600 154,900
+14% +14%
Q318 Q317 YTD18 YTD17 48,300 56,800 147,700 179,600
+18% +22%
Q317 Q318 YTD17 YTD18 3,700 9,700 1,900 10,400
7.6% 3.2% VOLVO CAR GROUP RESULTS PRESENTATION JULY- SEPTEMBER 2018
Net income (MSEK)
YTD17 Q317 Q318 YTD18 2,500 1,100 7,300 6,700
Investments (MSEK)
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Free cash flow (MSEK)
Q318 Q317
YTD18 YTD17
YTD17 Q317 Q318 YTD18 6,100 6,800 22,900 20,700
+11%
7.1% 5.4%
Key Financial Developments Q3 and 9 months
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MSEK
3,100
Q3 2017
Foreign exchange rates
6,200
Volume, sales mix and pricing Licences
1,800
Other Q3 2018
48,300 56,800
VOLVO CAR GROUP RESULTS PRESENTATION JULY- SEPTEMBER 2018
NET REVENUE WALK q3 2018
regions
pricing mainly driven by XC models and S90
the net revenue comparison
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MSEK
300
Foreign exchange rates Q3 2017
1,100
3,700
Volume, sales mix and pricing
1,900
Licences
Cost and Other Q3 2018
VOLVO CAR GROUP RESULTS PRESENTATION JULY- SEPTEMBER 2018
EBIT walk q3 2018
7.6% EBIT margin 3.2% EBIT margin
* Change in inventories, accounts receivables and accounts payables, ** Interest, tax and changes in other items, *** Adjusted for exchange on cash
13,600 400
2018 Q2 Liquidity
38,900
2018 Q3 Liquidity
5,100
EBITDA Financing*** 500
31,400
Investments
Working capital*
13,400 52,900 45,300
Other**
Undrawn credit facilities Marketable securities Cash
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MSEK Free cash flow MSEK -6 600
VOLVO CAR GROUP RESULTS PRESENTATION JULY- SEPTEMBER 2018
Cash Flow movements Q3 2018
mainly related to seasonal closing of European factories
production ramp up, new car models and technologies
R&D Expenses (SEKbn)
10.2 5.2% 2015 2014 5.9% 9.7 2016 5.7% 2017 4.9% 4.0% LTM Q3 2018 7.2 9.5 10.2
% of Revenue R&D expenses
Investments (SEKbn)
11.5% 2014 13.6% 8.6 4.7 5.2 4.8 12.7% 15.7% 6.1 9.2 5.5 2015 14.3% 6.4 13.1 15.0 2016 5.4 9.7 17.0 6.0 2017 10.1 LTM Q3 2018 18.6 19.4 25.6 32.7 30.5
Non capitalised R&D % of Revenue Intangible investments Tangible investments
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VOLVO CAR GROUP RESULTS PRESENTATION JULY- SEPTEMBER 2018
Note: Investments impact on cash flow; R&D expenses impact on P&L
Investments and R&D
Liquidity 31,400 13,400 500 2,100 22,400 Debt 24,500 45,300 7,400 20,800
Undrawn Credit Facilities Marketable Securities Cash & Cash Equivalents Long-term Debt Short-term Debt
MSEK Net cash position of SEK 7.4bn (Q2 2018 SEK14.4bn)
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VOLVO CAR GROUP RESULTS PRESENTATION JULY- SEPTEMBER 2018
Liquidity & debt
640 540 420 210
420 420
2018 Sep 30 2021 2020 2018 2019
3,000 2,350 5,160
2022 2023 2024
5,160
2025 2026 45,300 1,970 3,530 7,510 3,420 5,580
Liquidity Loans Bonds
MSEK
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56% 44% Bonds Loans
Funding by type
VOLVO CAR GROUP RESULTS PRESENTATION JULY- SEPTEMBER 2018
Balanced Amortisation schedule
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VOLVO CAR GROUP RESULTS PRESENTATION JULY- SEPTEMBER 2018
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VOLVO CAR GROUP RESULTS PRESENTATION JULY- SEPTEMBER 2018
2018 - outlook
Strong growth and continued strong profits Upside from renewed product portfolio Strong foundation for our longer term ambitions
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Volvo car group
Direct consumer relationships >5 million Subscription with recurring revenue 50% Pure electric cars 50% Autonomous cars 30% Naturally hedged global production Superior growth Premium OEM profitability
VOLVO CAR GROUP RESULTS PRESENTATION JULY- SEPTEMBER 2018
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PEOPLE MAKE THE DIFFERENCE
New brand going global (30%) A market leading AD/ADAS SW provider (50%)
Pioneering partnerships Embracing disruption Human-centric
Spearheading electrification My car sometimes Urban focused Fastest growing premium OEM1 Robotaxi
Truly global Strategic affiliates Direct consumer business Wholesale business
(50%)
Synergies
My car always Recurring revenues
Care by VOLVO
Volvo car group
VOLVO CAR GROUP RESULTS PRESENTATION JULY- SEPTEMBER 2018
VOLVO CAR GROUP RESULTS PRESENTATION JULY- SEPTEMBER 2018
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