volvo car group results presentation january – june 2017/media/files/v/...investments as of dec...
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VOLVO CAR GROUP
results presentation
January – June 2017
Hans Oscarsson, Senior vice president & CFOHåkan Samuelsson, president & CEO
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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 of 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 opinions 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-JUNE 2017 2
DISCLAIMER
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VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-JUNE 2017
Strong Growth in h1
BNSEK 99.1 +18% revenue
BNSEK 6.8 ebit 278,000
units6.8%Ebit margin
BNSEK -3.1Operating and investing cash flow
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VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-JUNE 2017 *Comparable period: Jan – June 2016
Americas -4.9%Delivery constraints Asia pacific +22.6%
Strong growth
emea +6.6%Good momentum
Global growth +8.2%
sales
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VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-JUNE 2017
New XC60 rolled out
24,500 orders 6,000 built
Ramp up completed Q4
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Committed to Electrification
VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-JUNE 2017
P – Pure T – twin engine B – Brake recovery
Five fully electric cars 2019-2021
All other new models launched
from 2019 will be hybrids
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VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-JUNE 2017
Pure Progressive Performance
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VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-JUNE 2017
ZENUITY
Joint venture with Autoliv
NVIDIA partnership
400 employees
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Connectivity
VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-JUNE 2017
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VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-JUNE 2017
Component and technology sharing
Electrification partnership
Synergies from Common sourcing
Volvo minority ownership in lynK & co
Sharing architectures
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Financials
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key financialS
VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-JUNE 2017
12
Revenue (MSEK)
Net income (MSEK)
Sales (units)
+8%
2017 H1
277,650
2016 H1
256,55084,200
99,100
2017 H12016 H1
+18%
EBIT (MSEK)
5,600
2016 H1
+21%
6,800
2017 H1 2017 H1
+25%
3,8004,750
2016 H1
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Net revenue growth
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MSEK
8,300
2016 H1
84,200
Other
4,350
Sales mix and pricing
2,200
Volume
+18%
2017 H1
99,050
Income statement
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Ebit improvement
VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-JUNE 2017 14
MSEK
-400
Volume
2,200
2016 H1
5,600
+21%
2017 H1
6,800
Fixed cost and other
-600
Sales mix and pricing
Income statement
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Cash Flow movements
VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-JUNE 2017 15
*Adjusted for interests and other items, ** Adjusted for exchange on cash
Cash Flow Statement
MSEK Free cash flow MSEK -3,200
2017 H1 Liquidity
36,250
33,800
2,450
Financing**
-1,700
Investments*
-12,800
Working capital
-3,100
EBITDA
12,700
2016 FY Liquidity
43,450
38,700
4,750
Mkt sct
Cash
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Liquidity & debt structure as of JUNE 30, 2017
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25,150
Debt
23,000
12,300
3,000
7,700
Liquidity
48,150
33,800
2,450
11,900
13,250
Short-term Debt
Bonds
Long-term Debt
Cash & Cash Equivalents
Marketable Securities
Undrawn Revolving Credit Facility (RCF)
MSEK
Balance Sheet
Net cash position of SEK13bn
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Investments as of Dec 31, 2016
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2015
18,700
8,700
5,300
4,700
2016
5,200
13.5% 24,200
12,700
5,100
6,400
13.4%
11.4%
2014
18,500
8,600
4,700
Tangible investments
Non capitalised R&D
Intangible investments
% Revenue
Investments (MSEK)
Balance Sheet
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Amortisation schedule as of Dec 31, 2016
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2022
3,000
2021
2,813
2016
4,766
2019
1,961
2020
43,373
6,737
4,777
3,609
2018
3,266
2017
Liquidity
Loans
Bonds
Balance Sheet
MSEK
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Outlook 2017
Increased production capacity
Maintained strong profitability
Launch of the XC40 – 3rd SUV
Continued growth
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VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-JUNE 2017 20
QUESTIONS
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XC 55%
V29%
S
16%
EMEA
28%Asia Pacific
18%
Americas
54%
Revenue by carline Revenue by region
Appendix 1:
Revenue by carline and region
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VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-JUNE 2017 22
2017
H1 WC
-3,085
Payables
6,401
Receivables
-2,136
Inventory
-7,3502
10
2017 H1Payables
-2
Receivables
-3
Inventory
-4
2016 H1
*CCC = Cash Conversion Cycle
Change in Working capital (MSEK) 12 months rolling CCC* days
Appendix 2:
Working Capital and CCC DAys
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Appendix 3:
Retail sales
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Appendix 4:
Key figures – extended version
Key figures H1 2017 H1 2016
H12017
vs H1 2016
Retail sales (units) 277,641 256,563 8.2%
Wholesale (units) 288,074 258,046 11.6%
Net revenue (MSEK) 99,060 84,202 17.6%
Research and development expenses (MSEK) -5,602 -4,757 17.8%
Operating income, EBIT (MSEK) 6,776 5,592 21.2%
Net income (MSEK) 4,749 3,784 25.5%
EBITDA (MSEK) 12,724 10,739 18.5%
Cash flow from operating and investing activities (MSEK) -3,146 -3,175 29MSEK
EBIT margin (%) 6.8 6.6 0.2bps
EBITDA margin (%) 12.8 12.8 -
Equity ratio (%) 27.6 26.8 0.8bps
Net cash (MSEK) 13,122 18,873 -5,751
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Appendix 5:
Definitions of performance measures
Performance measures disclosed in the presentation are those that are deemed to give the most true and fair, as well as relevant view of Volvo Car Group’s financial performance for
a reader of the presentation.
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Appendix 6:
Reconciliation tables of performance measures
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