Capital Market Day June 21, Stefan Johnsson SVP AB Volvo

Transcription

1 Capital Market Day June 21, 2006 Stefan Johnsson SVP

2 Business areas Capital Market Day 2006 Volvo Group Organized to deliver sharp customer focus and shared global strength 1 Volvo Trucks Renault Trucks Mack Trucks Volvo Buses Volvo CE Volvo Penta Volvo Aero Financial Services Business units Volvo 3P Volvo Powertrain Volvo Parts Volvo Logistics Volvo Information Technology Volvo Non Automotive Purchasing (NAP) Volvo Business Services

3 2 Objective for Business Units Centralization and harmonization to drive cost efficiency Capture bargaining power Cross learning between Business Areas In-house competence centers

4 2005 Volvo Parts Overview Customer Base 3 Employees 3,500 Warehouses globally 32 Stocked parts number >500,000 Workshops for service and parts information ~15,000 Volvo Group Net sales Mack 18% Volvo CE 11% Renault Trucks 20% Volvo Penta 6% Volvo Buses 6% Volvo Trucks 39%

5 4 Volvo Parts Business Parts Logistics A part must be available exactly where it is needed - and must get there as quick and cost efficient as possible. Product Support Development Creates value and business advantages for the business areas by developing aftermarket products to the end customer on a competitive platform. Volvo Action Service 24 hour road assistance Remanufacturing By remanufacturing engines we offer our customers a profitable solution to extend the life of their vehicles.

6 5 Volvo Parts Warehouses Eskilstuna, CW Helsinki, SW Göteborg, SW Rugby, SW Gent, CW, SW Wroclaw, SW Lyon, CW, SW Vienna, SW Bologna, SW Madrid, SW Chicago, CW Reno, SW Columbus,CW Memphis, SW Dallas, SW Mexico City, RW Toronto, SW Baltimore, CW Atlanta, CW Jacksonville, RW Moscow, RW Istanbul, RW Dubai, RW Tokyo, RW Seoul, CW Shanghai, RW Bangalore, RW Singapore, RW Lima, RW CW, Central warehouse RW, Regional warehouse SW, Support warehouse Curitiba,CW Johannesburg, RW Minto, RW

7 New Supply Chain Management Set-up Key benefits 6 Increase customer satisfaction / dealer loyalty Integrated material management Enhanced back order recovery and proactive communication with the customer Track and Trace Increase competitive advantage and speed of change Implement common best practice processes Increase sales Extended parts assortments Reduce cost Transport mode (Direct deliveries, Cross docking) Common parts Segmentation

8 Managed logistics costs 2005 Volvo Logistics Overview SEK 9.2 bn Employees 980 Volvo Group Customer Base 7 EXAMPLES Emballage transactions 42 million Number of vehicles shipped 719,000 Aviation 1% Emballage 9% External Inbound 53% Outbound 37% External customers 43% Volvo Group 57% Global Suppliers

9 Volvo Logistics Global reach 8 Seattle Irvine St Claire Goodrich Detroit Hagerstown Macungie Allentown Dublin New Jersey Asheville Greensboro Fort Valley Tulsa Boca Raton Mexico City Göteborg Eskilstuna Köping Olofström Skövde Umeå Warwick Gent Köln London Wroclaw Paris Lyon Russia Beijing Chongqing Bangalore Changwon Shanghai Current office Prospect office Curitiba Australia

10 9 Volvo Logistics Supply chain optimization Emballage Supplier Inbound Factory Outbound Dealer/end customer) Services Purchasing of transport and logistics needs Customs management

11 Volvo Logistics In focus going forward 10 Continue to grow through more business with existing customers Further global expansion, including developing the infrastructure in Asia Further integration into the industrial process

12 Volvo Information Technology 2005 Overview Customer Base 11 Sales SEK 7.1 bn Employees 4,390 Contractors 1,600 Global presence 30 sites Volvo Group End-user Services Infrastructure Services 10% External 10% Ford Motor Company / Volvo Car Corporation External ArvinMeritor customers 40% 20% Getrag Volvo & Volvo Cars private dealers Volvo Group SCA 80% Skandia Nobel Biocare Assa Abloy 40% Consulting & Application Development Maintenance, operations & support

13 Volvo Information Technology 12 The strategic IT competence center within the Volvo Group - Unique knowledge of vehicle industry operations - Driving harmonization and standardization A Global IT services provider with a complete portfolio of integrated solutions for the Volvo Group s activities Benchmarked as having world class efficiency in IT Infrastructure Services A popular place to work: high Employee Satisfaction and consistently among most attractive workplaces for IT students (Sweden)

14 Volvo Information Technology Example 13 Process and Application Commonality: Foundation for maximizing Volvo Group synergies and easy integration of acquired entities Process PD STO OTD DTR BA AP CAD PDM/DMU SALES OM BOM Supply LOG Diag VDB DEAL FI HR NAP ProjM Mack RT VTC Bus Penta VCE PT Low commonality Target commonality partly achieved Target commonality achieved 3P Aero

15 Volvo Information Technology Process and Application Commonality Example Process PD STO OTD DTR BA AP CAD PDM/DMU SALES OM BOM Supply LOG Diag VDB DEAL FI HR NAP ProjM Mack RT VTC Bus Penta VCE PT Low commonality Target commonality partly achieved Target commonality achieved 3P Aero

16 Volvo Information Technology Process and Application Commonality Example Target Process PD STO OTD DTR BA AP CAD PDM/DMU SALES OM BOM Supply LOG Diag VDB DEAL FI HR NAP ProjM Mack RT VTC Bus Penta VCE PT Low commonality Target commonality partly achieved Target commonality achieved 3P Aero

17 Volvo Information Technology In focus going forward 16 Globalization - Infrastructure in Asia - Global services, SAP, IP-communication Commonality and standardization to drive cost efficiency Develop/buy applications to support growth in Soft Products Business cycle management

18 Volvo Group Non Automotive Purchasing Overview 2005 Customer Base 17 Addresses indirect spending: SEK 21 bn Volvo Group Employees 230 Global presence 34 sites Focus areas: Professional services Packaging and MRO Facility management & services Production equipment & investments Marketing and sales

19 18 Volvo Group Non Automotive Purchasing Business scope Leverage Volvo Group purchasing power Improved cash flow due to extended payment terms Efficient purchasing by World Class processes and tools SOX compliance of the Requisition to Pay process Significant savings Improved payment terms Sharing best practices within the Volvo Group

20 19 Volvo Group Non Automotive Purchasing In focus going forward Investments have been done in IS/IT tools which are now being rolled out worldwide A strategic sourcing process is developed and will be implemented globally during 2006 Resources are now being added to increase the controlled spend

21 20 Summary Business Unit organization in place and operational Further centralization and harmonization to drive cost efficiency Support the Group s growth Improve business cycle management