volvo group investor meeting at nacv oct28 · 2020-01-15 · georgia world congress center, atlanta...

Georgia World Congress Center, Atlanta

Monday, October 28th

Volvo Group investor meeting

at North American

Commercial Vehicle Show

AGENDA

VOLVO GROUP

strategic direction

MACK TRUCKS

business update

VOLVO TRUCKS NA

business update

Q&A

AGENDA

VOLVO GROUP

strategic direction

MACK TRUCKS

business update

VOLVO TRUCKS NA

business update

Q&A

Volvo GroupVolvo Group

Volvo Group Strategic Direction Martin LundstedtPRESIDENT AND CEO

4

Investor meeting at NACV

Volvo GroupVolvo Group

5

We are well invested with strong assets to build on

Go to market strategy Leveraging synergies Application excellence

Investor meeting at NACV

Volvo GroupVolvo Group

We are well invested

with strong assets

to build on

Addressing broad

spectrum of customer

segments

6

Investor meeting at NACV

Volvo GroupVolvo Group

A fantastic industry in transition

PERFORM TRANSFORM

7

Investor meeting at NACV

Volvo GroupVolvo Group

8

Perform

Investor meeting at NACV

Volvo GroupVolvo Group

JAPAN HD

EUROPE HDBRAZIL HD

ASIA HD+MD

NORTH AMERICA HD

0

200

400

600

800

1 000

1 200

1 400

03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20

China

India

2018: 1,325’

Forecast 2019: 1,270’

Forecast 2020: 1,200’

2018: 420’

Forecast 2019: 300’

Forecast 2020: 310’

0

25

50

75

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20

2018: 48’

Forecast 2019: 45’

Forecast 2020: 45’

9

Business cycle management

0

25

50

75

100

125

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20

2018: 53’

Forecast 2019: 75’

Forecast 2020: 75’

0

100

200

300

400

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20

2018: 311’

Forecast 2019: 340’

Forecast 2020: 240’

0

100

200

300

400

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20

2018 : 322’

Forecast 2019: 320’

Forecast 2020: 275’

TRUCK MARKET ENVIRONMENT

Investor meeting at NACV

Volvo GroupVolvo Group

BUILDING RESILIENCE

Improving performance

2.8M

Service business potential

10

INSTALLED POPULATION

TRUCKS, BUSES AND MACHINES

whereof

1.0M connected

Investor meeting at NACV

Volvo GroupVolvo Group

STRENGTHENING THE RESILIENCE OVER THE CYCLE

11

Improving performance

Volvo Group service sales Volvo Group adjusted operating margin,

12m rolling SEK b.n.

SEK b.n.

Investor meeting at NACV

Volvo GroupVolvo Group

12

Pension liabilities in Q2 2019 of SEK 16.8 bn and

leasing liabilities of SEK 7.3 bn (IFRS16).

Cash position,

Industrial Operations

BUILDING RESILIENCE

Improving performance

Investor meeting at NACV

Volvo GroupVolvo Group

Transform

13

Investor meeting at NACV

Volvo Group

Transforming for the future

ELECTROMOBILITY AUTOMATION CONNECTIVITY

Volvo GroupVolvo Group

15

Investor meeting at NACV

Volvo Group

Volvo Autonomous Solutions A new Business Area with full focus on developing,

commercializing and scaling up L4 autonomous solutions

16

AGENDA

VOLVO GROUP

strategic direction

MACK TRUCKS

business update

VOLVO TRUCKS NA

business update

Q&A

MACK TRUCKS

Martin Weissburg – President

Mack LR Electric

20

Proprietary driveline penetration

91%

Captive Transmissions (AMT)

10 11 12 13 14 15 16 17 18

6.5%Mack mDRIVE

(highway)

09 10 11 12 13 14 15 16 17 18

Parts per VIO

Truck population (10 year)

167.6 %

Parts per Vehicle in Operation

CaptiveEngines

98%

Strong dealer network

Connected support

OneCall

ASIST

GuardDog

ConnectMack

Over The Air

Certified

Uptime Dealers

Mack

Connect

AGENDA

VOLVO GROUP

strategic direction

MACK TRUCKS

business update

VOLVO TRUCKS NA

business update

Q&A

Volvo Group

Peter VoorhoevePresident

• Home market

• Strong truck portfolio

• Successful strategy shift and positive turnaround

• Major investments to best serve our customers

North America: key market for Volvo Trucks

Well-received first-class product lineup…

… ready for the future with the Volvo VNR Electric

Volvo

Engines

Parts per

Vehicle in

Operation

0

20

40

60

80

100

03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

93%

0

10

20

30

40

50

60

70

80

90

100

07 08 09 10 11 12 13 14 15 16 17 18

89%

Volvo

I-Shift AMT

09 10 11 12 13 14 15 16 17 18

Parts per VIO

Truck population (10 year)

36%

121.8 %

Successful proprietary driveline penetration

$400 Million over 6 years

Major manufacturing investments

A decade of substantial dealer investments

October 28th, 2019

Meeting NA Commercial Vehicle Show

34

AGENDA

VOLVO GROUP

strategic direction

MACK TRUCKS

business update

VOLVO TRUCKS NA

business update

Q&A

Q&A