volvo car group results presentation january – june 2017/media/files/v/volvo-cars-ir/result… ·...

VOLVO CAR GROUP

results presentation

January – September 2017

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

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-SEPTEMBER 2017

DISCLAIMER

2


Financial highlights first 9 months

BNSEK 149.3 Revenue

BNSEK 10.5 ebit 413,500

units7.0%Ebit margin

BNSEK -7.5Operating and investing cash flow

3


Comparable period: Jan – Sept 2016

Europe is defined as EU28 + EFTA

US –2.7%Recovery after Delivery

constraintsChina +29.9%

continuous Strong growth

EUROPE +6.2%Good growth

Global growth +9.0%

sales

4


New XC40 launch

5

New segment

Full SUV line-up

First Volvo car on CMA

Start of production in Gent, November 2017

Care by Volvo...


Care By Volvo

6

Subscription service

Standardised fee

New car every 24 months

Flexibility to switch cars

Including service package

VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-SEPTEMBER 2017 7

Forms part of Volvo Cars’ electrification strategy

Stand-alone electrified performance car company

SEK 6.1 billion investment Volvo Cars and GeelyHolding

Fully consolidated

Lynk & CO and GV ltd.


Lynk & Co Investment Co Ltd

• Jointly owned by Volvo Cars 30%, Geely

Holding 20% and Geely Auto 50%

• Purchasing, manufacturing, marketing,

distribution and after sales service for

Lynk & Co

GV Automobile Technology (Ningbo) Co Ltd

• 50/50 owned by Volvo Cars and Geely

Holding

• Co-ordination of engineering of shared

technologies and common sourcing

• Industrial synergies and economies of scale

8

Financials


key financial developments January – September 2017

Net revenue (MSEK)Retail sales (units)

EBIT (MSEK)

379,300

+9%

2017

413,500

2016

+19%

2017

149,300

2016

125,500

+36%

2017

10,500

2016

7,700

6.1%EBIT margin

7.0% EBIT margin


Net income (MSEK)

2017

+43%

5,100

7,300

2016

Capex (MSEK)

10

Free cash flow (MSEK)

2017

-2,300

-7,500

2016

+45%

2017

17,700

2016

12,200

Net revenue

MSEK

Sales mix and pricing

+19%

8,000

Other

149,300

Jan-Sept 2017

3,800

Volume

12,000

Jan-Sept 2016

125,500

Income Statement



27%XC 57%V

16%

S

53%

19%

Americas

28%Asia Pacific

EMEA

Revenue by carline Jan-Sept 2017 Revenue by region Jan- Sept 2017

Revenue by carline and region

Revenue by carline FY 2016 Revenue by region FY 2016

54%

20%

Americas

26%

Asia Pacific

EMEA23%

XC64%

V

13%

S

12

ebit improvement

MSEK

100

Sales mix and pricing

3,300

Volume Fixed cost and Other

-600

10,500

Jan-Sept 2016

+36%

Jan-Sept 2017

7,700

6.1% EBIT

margin

7.0%EBIT

margin

Income Statement


Cash Flow movements


*Adjusted for interests and other items, ** Adjusted for exchange on cash

Cash Flow Statement

MSEK Free cash flow MSEK -7,500

Financing**

-3,200

Investments*

-17,700

Working capital

-9,100

EBITDA

19,300

2016 FY Liquidity

49,300

38,600

4,700

2017 30 Sept

Liquidity

43,700

27,900

3,300

6,000

12,500

Cash

Mkt sct

RCF

14

Investments


LTM 2017

30,800

6,300

16,800

7,700

15.1%

2016

18,600

4,800

8,600

5,200

13.5%

25,200

6,100

12,700

6,400

13.9%

2015

18,900

5,500

8,700

4,700

11.5%

2014

Non capitalised R&D

Tangible investments

Intangible investments

Series

% Revenue

Investments (MSEK)

Balance Sheet

15

Liquidity & debt structure as of September 30, 2017


20,800

Debt

22,900

12,100

3,100

7,700

Liquidity

43,700

27,900

3,300

12,500

8,300

Short-term Debt

Bonds

Long-term Debt

Cash & Cash Equivalents

Marketable Securities

Undrawn Revolving Credit Facility (RCF)

MSEK

Balance Sheet

Net cash position of SEK 8,3bn

16

Amortisation schedule as of Sept 30, 2017


2022

3,000

2021

6,600

4,800

1,800

2020

4,600

2019

3,500

2018

3,200

2017

1,200

2017 Sept 30

43,700

Loans

Bonds

Liquidity

Balance Sheet

MSEK

17

Outlook 2017

Continued revenue growth

Maintained strong profits

Increased production capacity

XC40 Start of production on CMA



QUESTIONS

19


Jan-Sept

2017 total

Working

Capital

-9,100

Payables

4,700

Receivables

-3,800

Inventory

-10,000

4

7 1

2017

Sept 30

Payables

-3

Receivables

-1

Inventory2016

Sept 30

*CCC = Cash Conversion Cycle

Change in Working capital (MSEK) 12 months rolling CCC* days

Appendix 1:

Working Capital and CCC days

20

Appendix 2:

Retail sales


Appendix 3:

Key figures


Appendix 4:

Definitions of performance measures


Appendix 5:

Reconciliation tables of performance measures


Appendix 5:

Reconciliation tables of performance measures contd.


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