Volvo Construction Equipment CORPORATE PRESENTATION 2014
The Volvo Group
The Volvo Group is one of the world s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The Volvo Group also provides complete solutions for financing and service. 4 March 2014
The Volvo Group, which employs about 110,000 people, has production facilities in 18 countries and sales of products in more than 190 markets. 5 March 2014
The Volvo Group s vision is to become the world leader in sustainable transport solutions by creating value for customers in selected segments pioneering products and services for the transport and infrastructure industries driving quality, safety and environmental care working with energy, passion and respect for the individual 6 March 2014
We work with energy, passion and respect for the individual. The Volvo Way is a guide for our behavior as leaders and team members. 7 March 2014
Global Operations Sales and Employees North America Net Sales 23% 16,397 Europe Net Sales 39% 52,334 Asia Net Sales 20% 17,953 South America Net Sales 11% 6,275 Other Net Sales 7% 2,574 Net Sales 2013: SEK 273 bn Regular employees 31 Dec 2013: 95,533 8 March 2014
Volvo Group financial performance 2009-2013 SEK bn Net Sales Operating income 273 7 09 10 11 12 13 09 10 11 12 13 9 March 2014
Volvo Group Organization Group Trucks Sales & Marketing EMEA Group Trucks Sales & Marketing Americas Group Trucks Sales & Marketing and JVs APAC Group Trucks Operations Group Trucks Technology Construction Equipment Business Areas Volvo Financial Services 10 March 2014
Restructuring and destocking in a weak economic environment VOLVO GROUP NET SALES OPERATING INCOME MARGIN VOLVO GROUP 270 bn 17,622 M 5.8% TRUCKS 178 bn 6,824 M 3.8% VOLVO CE 53.4 bn 2,592 M 4.9% BUSES 16.7 bn (190) M (1.1)% VOLVO PENTA 7.5 bn 626 M 8.3% FINANCIAL SERVICES 46.6 bn 1,492 M 12m ROE 12.5% 11 March 2014
Volvo Construction Equipment
Develops, manufactures and markets equipment for construction and related industries Broad range of products and services Range of solutions in financing and used equipment Part of the Volvo Group 13 March 2014
Our employees January 2014 EU Asia NAM SAM ROW 7316 5380 1135 844 25 Total = 14,700 * These figures exclude temporary employees, hired services and consultants. 14 March 2014
Core products 15 March 2014
Customer solutions Our products and services enhance the customer's experience and satisfaction and drive a greater brand experience Customer Solutions is the part of the organization that creates products to engage customers throughout the entire machine lifecycle Customer Solutions is a key contributor to Volvo CE s business USED EQUIPMENT FINANCIAL SERVICES ATTACHMENTS RENTAL BUSINESS UPTIME SERVICES PARTS FLEET SERVICES & TELEMATICS 16 March 2014
Volvo CE organization: a global company HQ PLANTS REGIONAL SALES OFFICES HQ 17 March 2014
Corporate Core Values 18 March 2014
Safety 19 March 2014
Safety first. Always is a recognized industry leader in the field of safety. We approach safety on 3 levels: PERSONAL SAFETY WORKSITE SAFETY MACHINE SAFETY By continuously improving products, tools and competence, we are step by step approaching our vision. A safe and healthy work environment People are the most important asset for Volvo Construction Equipment. Providing a safe and healthy work environment is essential to our business success. We are proactively addressing all improvement areas, contributing to the goal of being the most attractive employer in the industry! Watch our SAFETY VIDEO on YouTube OUR VISION Zero accidents with Volvo Products 20 March 2014
21 March 2014 Quality
Our Quality s commitment to quality starts by our vision is to be the model of excellence and care. Delivering a total quality experience to Fleet Owners, Operational Managers as well as those who operate our machines is key. Watch our QUALITY VIDEO on YouTube OUR VISION To deliver the number one Total Quality Experience 22 March 2014
Environmental Care 23 March 2014
Environmental care Environmental Care has always been one of the top priorities for Volvo Construction Equipment. In 1972 Pehr G Gyllenhammar, former President and CEO, stated We are part of the problem but also part of the solution, and this is still valid. is leading the way in environmental development through e.g. fuel efficiency product innovations and energy efficient/ CO2-neutral sites. As an example, In 2013, Volvo Construction Equipment s site in Braås, Sweden became the first construction equipment production facility in the world to be powered entirely by renewable energy. OUR VISION To become the world leader in sustainable transport solutions Watch our ENVIRONMENT VIDEO on YouTube 24 March 2014
Key data Total 2013 sales: 70,786 units Sales, SEK bn Operating Income, SEK bn 65 63,558 55 57 54 53,437 28 35 40 34 1,1 2,3 3,5 4 1,4 6,2 6,7 5,8 2,592 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013-5,2 25 March 2014
26 March 2014
Back-up slides 27 March 2014
Company leadership 28 March 2014
A global manufacturer Braås, Sweden Arvika, Sweden Shippensburg, US Hallsberg, Sweden Eskilstuna, Sweden Belley, France Kaluga, Russia Jinan, China Linyi, China Pederneiras, Brazil Linyi, China Pederneiras, Brazil Wroclaw, Poland Shanghai, China Hameln, Germany Konz, Germany Bangalore, India Changwon, Korea R&D Plant z 29 March 2014
Volvo CE Customer types and industry segments Customer Types* Industry Segments* * As of end of December 2013 30 March 2014
The growth of Volvo CE Machine volumes 31 March 2014
The evolution of our company Financial Services Used Equipment Attachments Customer Offer Rental Business Services Solutions Parts 1991 2007 1997 2003 Total solutions provider 2002 1990 1991 1996 2006 1966 Multi-Specialist 1954 Specialist Time 32 March 2014
Volvo CE vs. Industry: Share by Machine Range Industry (Volvo CE Portfolio)* * * As of end of December 2013 33 March 2014
Volvo CE vs. Industry: Share by Region Industry (Volvo CE Portfolio)* * * As of end of December 2013 34 March 2014
Three distinct brands Complementary offer Broader customer base 35 March 2014
Quarry & Aggregates Department, Name, Document name, Security Class 36 March 2014
Building Department, Name, Document name, Security Class 37 March 2014
Utilities Department, Name, Document name, Security Class 38 March 2014
Road construction Department, Name, Document name, Security Class 39 March 2014
Oil & Gas Department, Name, Document name, Security Class 40 March 2014
Demolition Department, Name, Document name, Security Class 41 March 2014
Waste & Recycling Department, Name, Document name, Security Class 42 March 2014
Forestry Department, Name, Document name, Security Class 43 March 2014