volvo car group results presentation january march 2017/media/files/v/volvo-cars-ir/... · volvo...

VOLVO CAR GROUP

results presentation

January – march 2017

Patrik Tolf, deputy CFO and Head of Group Finance Nils Mösko, Vice president and 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 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-DECEMBER 2016 2

DISCLAIMER

Performance Jan – March 2017

47.6 BNNet revenue

3.5 BNebit

129,000retail sales7.3%

Ebit margin

VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2017 CURRENCY: SEK

-2.3 BNOperating and investing cash flow

Americas -13.8%Model

ramp-up

Asia pacific +16.0%strong

momentum

emea +9.2%robust

Growth

Global growth +7.1%

VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2017 4

Retail sales, Jan – March 2017*

*Comparable period: Jan – March 2016

Operations, Jan – March 2017

VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2017

New xc60 revealedRamp up of S90 in daqing

& V90 in torslanda

5


Financials

6

Overview of key financial developments, Jan – March 2017

7

Net revenue (SEKbn)

Net income (SEKbn)

Wholesale (units)

+9%

2017 Q1

139,052

2016 Q1

127,966 42,02747,592

2017 Q12016 Q1

+13%

EBIT (SEKbn)

3,145

2016 Q1

+11%

3,491

2017 Q1 2017 Q1

+26%

2,0692,606

2016 Q1


Financial statements – Income statement

msek Q1

2017

Q1

2016

Net Revenue 47,592 42,027

Cost of Sales -36,953 -32,313

Gross Income 10,639 9,714

EBIT 3,491 3,145

Net Income 2,606 2,069

msek Q1

2017

Q1

2016

Intangible assets, Property, plant & equipment etc.

85,591 82,075

Inventories, Accounts receivable, Cash & cash equivalents etc.

81,953 79,338

Total assets 167,544 161,413

Equity 46,504 43,310

Long term liabilities to credit institutions and provisions for

pensions etc.39,886 41,979

Short term liabilities to credit institutions, Accounts payable and short term provisions etc.

81,154 76,124

Total Equity & Liabilities 167,544 161,413

msek Q1

2017

Q1

2016

Operating activities 3,019 3,232

Investing activities -5,323 -3,555

Cash flow from operating and

investing activities-2,304 -323

Financing activities, net

2,871 1,515

Total cash flow 567 1,192

Income statement Balance sheetCash flow statement

8VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-MARCH 2017

Net revenue strong growth, Jan – March 2017

9

MSEK

+13%

2017 Q1

47,592

Other

1,405

Sales Mix

1,540

Volume

2,620

2016 Q1

42,027

Income Statement


ebit improvement, Jan – March 2017

10

MSEK

566

660

+11%

3,491

Fixed cost,

Exchange and Other

-880

2017 Q1

3,145

2016 Q1 Sales MixVolume

7.5% EBIT

margin

7.3%EBIT

margin

Income Statement


Financial statements – cash flow statement

msek Q1

2017

Q1

2016


Cost of Sales -36,953 -32,313


EBIT 3,491 3,145


msek Q1

2017

Q1

2016


85,591 82,075


81,953 79,338

Total assets 167,544 161,413

Equity 46,504 43,310




81,154 76,124


msek Q1

2017

Q1

2016






2,871 1,515




12

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


Cash Flow, Jan – March 2017Cash Flow Statement

MSEK

Free cash flow SEK -2 304 million

43,373

4,738

EBITDA Other items*

6,361

38,635

2016 FY

Liquidity

-2,870

Working capital

-472

Investments

-5,323

Financing**

2,843

39,174

1,666

2017 Q1

Liquidity

40,840

Cash

Mkt sct

Financial statements – balance sheet

msek Q1

2017

Q1

2016


Cost of Sales -36,953 -32,313


EBIT 3,491 3,145


msek Q1

2017

Q1

2016


85,591 82,075


81,953 79,338

Total assets 167,544 161,413

Equity 46,504 43,310




81,154 76,124


msek Q1

2017

Q1

2016






2,871 1,515




Liquidity & debt structure as of March 31, 2017

14

23,001

Debt

24,138

13,683

2,776

7,679

Liquidity

47,139

39,174

1,666

6,299

16,702

Short-term Debt

Bonds

Long-term Debt

Cash & Cash Equivalents

Marketable Securities

Undrawn Revolving Credit Facility (RCF)

MSEK

Balance Sheet


Net cash position of SEK17bn

Investments as of Dec 31, 2016

15

9 913

5 5

55 5

6

2016

24

13,4%

2015

19

11,4%

2014

19

13,5%

Tangible investments

% Revenue

Intangible investments

Non capitalised R&D

Investments (BNSEK)

Balance Sheet


Amortisation schedule as of Dec 31, 2016

16

2021

6,737

4,777

1,961

2020

43,373

3,266

2017

2,813

2016 2022

3,000

4,766

2019

3,609

2018

Bonds

Loans

Liquidity

Balance Sheet


MSEK


Outlook and focus 2017

Continued industrial transformation

Maintained strong profit level Launch of New XC40

Electrification & AD

Sales growth New XC60 ramp-up

18

Q&A


19

XC 53%

V30%

S

16%

EMEA

27%Asia Pacific

18%

Americas

55%

Revenue by carline Revenue by region


Appendix 1:

Revenue by carline and region

20

2017

Q1 WC

-2,539

Payables

2,184

Receivables

-76

Inventory

-4,647

6

15

2017 Q1Payables

-3

Receivables

-1

Inventory

-5

2016 Q1

*CCC = Cash Conversion Cycle

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


Appendix 2:

Working Capital and CCC DAys

Appendix 3:

Retail sales


Appendix 4:

Key figures – extended version

Key figures Q1 2017 Q1 2016

Q12017

vs Q1 2016

Retail sales (units) 129,148 120,591 7.1%

Wholesale (units) 139,052 127,966 8.7%

Net revenue (MSEK) 47,592 42,027 13.2%

Research and development expenses (MSEK) -2,672 -2,413 10.7%

Operating income, EBIT (MSEK) 3,491 3,145 11.0%

Net income (MSEK) 2,606 2,069 26.0%

EBITDA (MSEK) 6,361 5,588 13.8%

Cash flow from operating and investing activities (MSEK) -2,304 -323 -1,981MSEK

EBIT margin (%) 7.3 7.5 -0.2bps

EBITDA margin (%) 13.4 13.3 0.1bps

Equity ratio (%) 27.8 26.8 0.9bps

Net debt/net cash (net cash if negative) (MSEK) -16,608 -18,873 2,265


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.


Appendix 6:

Reconciliation tables of performance measures


25VOLVO CAR GROUP RESULTS PRESENTATION JANUARY-DECEMBER 2016

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