Presentation Outline. Market Development Growth Strategy Company Evolution Summary. Capital Market Day, NY

Transcription

1 Presentation Outline Market Development Growth Strategy Company Evolution Summary Helsham, 14 January 2003, Slide 1

2 Market Construction Equipment by Region General Purpose Equipment 46,000 46,000 42,000 W-Europe 42,000 38,000 38,000 34,000 34,000 30,000 30,000 26,000 22,000 N. America 26,000 22,000 18,000 14, * Incl. Excavators, Wheel Loaders, Articulated Haulers and Motor Graders 12 month moving rates November 2002 Helsham, 14 January 2003, Slide 2 Int l Region excl. JP Japan 18,000 14,000

3 Market Construction Equipment by Region Compact Equipment* 120,000 N. America 120, , ,000 80,000 60,000 W Europe 80,000 60,000 40,000 Japan 40,000 20,000 Int l Region excl. Japan 20, * Incl. Compact Excavators, Compact Wheel Loaders, Backhoe Loaders and Skid Steer Loaders 12 month moving rates November 2002 Helsham, 14 January 2003, Slide 3

4 Helsham, 14 January 2003, Slide 4 Growth Strategy Superior execution with focus on quality Product expansion expansion Solutions provider Customer satisfaction Geographic Geographic expansion expansion Brand management Channels Channels to to market market Customer Customer segment segment expansion expansion Product

5 Growth Strategy A Single, Distinct Brand One Brand 2 Channels Global Reach Capable & Financially Stable Channels: Independent Dealers Rental Global Within a competitive cost structure Solutions Provider Comprehensive product range Segment / Key Account approach Superior & Consistent Customer Support Helsham, 14 January 2003, Slide 5

6 Growth Strategy - Rental Volvo Rental Partner Owner runs Rental Business Owns Fleet Employs staff Income Source: Rental fees Sales of used equipment Volvo FS Approve financing Finance: Fleet Lease hold Delivery vehicles Working capital Joint Tasks: Select Rental Partner Monitor Rental Partners Volvo CE Define & implement Business Model Manage Brand Offer Fleet Management Services Provide obligatory Rental software Income Source: Rental royalties Margin of Volvo products Spare parts,... Helsham, 14 January 2003, Slide 6

7 Growth Strategy - Products Articulated Hauler Wheel Loader Excavator Motor Grader Compact Wheel Loader Skidsteer Loader Compaction Compact Excavator Backhoe Loader Telescopic Handler Helsham, 14 January 2003, Slide 7

8 Growth Strategy - China Phase 1 - Starting 2002 Open plant - start with excavators Open service training center Stock parts warehouse Open demo site Appoint dealers (13 to-date) Phase 2 - Growing dealers supported by 7 Volvo CE branches Local manufacture of other Volvo CE products Helsham, 14 January 2003, Slide 8

9 Growth Strategy - China Changwon Shanghai Helsham, 14 January 2003, Slide 9

10 Company Evolution Business Cycle Management Profitable Growth Consolidation & Restructuring Profitable Growth Acquisitions Pel Job Champion Samsung Industrial restructuring Eslöv Asheville fabrication Product lines Excavators Rigid haulers Dealer restructuring (520 -> ~160) One brand (from 5) One company vision Product range expansion backhoe loader skidsteer loader telescopic handler compaction Extensive product renewal Rental channel development Break-even point reduction profitable in downturn flexible for upturn Industrial restructuring Wheel loaders Articulated haulers China Helsham, 14 January 2003, Slide 10

11 Capital Market Day, NY Local Geographic Coverage Global Company Evolution One product Helsham, 14 January 2003, Slide 11 Product Range Full product line

12 Summary Tough business environment In focus: - New Products / Acquisitions - Volvo CE Rental - Dealer development - Cost control - China - Brand development - One company vision Helsham, 14 January 2003, Slide 12