VOLVO CAR GROUP results presentation January December 2016

Transcription

1 VOLVO CAR GROUP results presentation January December Håkan Samuelsson, president & CEO Hans oscarsson, senior vice president & CFO

2 DISCLAIMER 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. 2

3 performance 11 BN 534,000 ebit 180 BN Net revenue 6.1% Ebit margin 3rd consecutive year of record sales 6,5 BN Operating and investing cash flow +3,000 Employees CURRENCY: SEK

4 Retail sales US +18.1% Turnaround ConfirmeD Global growth 6.2% EUROPE +2.7% Profitable Growth China +11.5% Regained momentum 4

5 Operations 90 Series completed Torslanda Ramp up S90 daqing CMA Luqiao Charleston plant

6 Capital markets Private Placement Sek 5 bn two bonds Sek 8 bn Two ratings

7 Finance

8 Overview of key financial developments Retail sales (units) Net revenue (SEKbn) +6% 503, , , % 180,672 EBIT (SEKbn) Net income (SEKbn) +66% 11, % 7,460 6, % EBIT margin 6.1% EBIT margin 4,476 7

9 Financial statements Income statement Income statement msek Net Revenue 180, ,043 Cost of Sales -143, ,238 Gross Income 35,805 38,805 EBIT 11,014 6,620 Net Income 7,460 4,476 Cash flow statement msek Operating activities 26,861 22,576 Investing activities -20,346-15,342 Cash flow from operating and investing activities 6,515 7,234 Financing activities 5,792 1,445 Total cash flow 12,307 8,679 msek Balance sheet Intangible assets, Property, plant & equipment etc. Inventories, Accounts receivable, Cash & cash equivalents etc. 82,075 68,317 79,338 64,000 Total assets 161, ,317 Equity 43,310 34,635 Long term liabilities to credit institutions and provisions for pensions etc. Short term liabilities to credit institutions, Accounts payable and short term provisions etc. 41,979 30,473 76,124 67,209 Total Equity & Liabilities 161, ,317 9

10 Income Statement Net revenue strong growth MSEK +10% 11,810-3, ,672 8, ,043 Volume Sales Mix Exchange & Other 10

11 Income Statement Revenue by Carline and Market Revenue by carline 23% V Revenue by market Western Europe 36% XC 64% 13% S Other markets 17% 13% Sweden 17% US 18% China 11

12 Income Statement ebit significant improvement MSEK +66% 2,255 5,240-3,101 11,014 6, % EBIT margin 6.1% EBIT margin Volume Sales Mix Exchange, Cost & Other 12

13 Financial statements Cash flow Statement Income statement msek Net Revenue 180, ,043 Cost of Sales -143, ,238 Gross Income 35,805 38,805 EBIT 11,014 6,620 Net Income 7,460 4,476 Cash flow statement msek Operating activities 26,861 22,576 Investing activities -20,346-15,342 Cash flow from operating and investing activities 6,515 7,234 Financing activities 5,792 1,445 Total cash flow 12,307 8,679 msek Balance sheet Intangible assets, Property, plant & equipment etc. Inventories, Accounts receivable, Cash & cash equivalents etc. 82,075 68,317 79,338 64,000 Total assets 161, ,317 Equity 43,310 34,635 Long term liabilities to credit institutions and provisions for pensions etc. Short term liabilities to credit institutions, Accounts payable and short term provisions etc. 41,979 30,473 76,124 67,209 Total Equity & Liabilities 161, ,317 13

14 Cash Flow Statement Cash Flow MSEK Free cash flow 6,500 MSEK RCF Mkt sct Cash Liquidity EBITDA Working capital Provisions Other items* Investments Financing Exchange on cash Liquidity *Adjusted for interests and other items 14

15 Cash Flow Statement Working Capital and CCC days Change in Working capital (MSEK) 4,500 YTD CCC* days 3-4 4, Inventory 730 Receivables Payables WC Inventory -6 Receivables Payables *CCC = Cash Conversion Cycle 15

16 Financial statements balance sheet Income statement msek Net Revenue 180, ,043 Cost of Sales -143, ,238 Gross Income 35,805 38,805 EBIT 11,014 6,620 Net Income 7,460 4,476 Cash flow statement msek Operating activities 26,861 22,576 Investing activities -20,346-15,342 Cash flow from operating and investing activities 6,515 7,234 Financing activities 5,792 1,445 Total cash flow 12,307 8,679 msek Balance sheet Intangible assets, Property, plant & equipment etc. Inventories, Accounts receivable, Cash & cash equivalents etc. 82,075 68,317 79,338 64,000 Total assets 161, ,317 Equity 43,310 34,635 Long term liabilities to credit institutions and provisions for pensions etc. Short term liabilities to credit institutions, Accounts payable and short term provisions etc. 41,979 30,473 76,124 67,209 Total Equity & Liabilities 161, ,317 16

17 Balance Sheet Investments Investments (BNSEK) 13,5% 13,4% 11,4% % Revenue Intangible investments Non capitalised R&D Tangible investments

18 Balance Sheet Liquidity & debt structure as of December 31, MSEK 49,728 6,355 4,738 25,306 18,951 Net cash position of SEK19bn 10.5% of net revenue 24,422 38,635 Liquidity 7,699 2,813 13,910 Debt Undrawn Revolving Credit Facility (RCF) Marketable Securities Cash & Cash Equivalents Bonds Short-term Debt Long-term Debt 18

19 Balance Sheet Amortisation schedule MSEK 43,373 Liquidity Loans Bonds 6,737 2,813 3,266 3,609 4,766 1,961 4,777 3,

20 Transformation continues Roll out of new cars and continued growth Commercialisation of new technologies 20

21 Autonomous Driving Software Zenuity Hardware Uber People Drive me 21

22 electrification All models in Twin engine variant Pure electric car M electrified cars by

23 Digital Experience & Connectivity Service Mobility solutions Per Mile new business unit Per month Care BY Volvo New Chief digital Officer Atif Rafiq Development Centre Mountain view, California 23

24 Outlook 2017 New volume and revenue record foreseen Continued industrial transformation New XC60 New XC40 Maintained strong profit level 90 years anniversary 24

25 Q&A 25

26 26

27 Appendix 1: Retail sales 27

28 Appendix 2: Key figures extended version Key figures Q4 Q4 Full year Full year Full year vs Full year Retail sales (units) 155, , , , % Net revenue (MSEK) 55,940 52, , , % Research and development expenses (MSEK) -2,038-2,484-9,374-8, % Operating income, EBIT (MSEK) 3,355 3,684 11,014 6,620 4,394 MSEK Net income (MSEK) 2,349 2,938 7,460 4,476 3,018 MSEK EBITDA (MSEK) 6,035 6,201 21,541 16,019 5,522 MSEK Cash flow from operating and investing activities (MSEK) 8,769 9,476 6,515 7, MSEK EBIT margin (%) bps EBITDA margin (%) bps Capex & R&D spend (MSEK) 17,665 14, % Capex & R&D spend against net revenue (%) bps Equity ratio (%) bps Net debt/net cash (net cash if negative) (MSEK) -18,873-7,721-11,152 28

29 Appendix 3: 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. 29

30 Appendix 4: Reconciliation tables of performance measures 30

31 31