Hans oscarsson, CFO
VOLVO CAR GROUP – FINANCIAL REPORT 2013 H1
Håkan samuelsson, President & CEO
2013 h1 highlights
� Launched the upgraded product portfolio
with six new models
� Transformation programme on track
� Cost adaptation implemented
� Operating result in line with our
expectations
� Strong performance in the Chinese market
� Industrial footprint established in China
2
Volvo cars in china
3
Beijing
Chengdu
New manufacturing plant
DaqingNew manufacturing plant
Shanghai• China Head Office• China Sales Company• China Technology Center
ZhangjiakouNew engine plant
Daqing
Zhangjiakou
ShanghaiChengdu
• Postive sales
performance
• Expanded product
portfolio
• Industrial footprint
established
macro and industry trends
4
4
Industry development (total passenger cars 000’s)
2013 h1 2012 H1 Change,%
China 8,231 7,229 13.9%
USA 7,779 7,223 7.7%
EU 20 6,290 6,731 -6.6%
of which Sweden 129 143 -9.8%
� Eurozone still affected by economic instability
� Car sales down in Europe
� Swedish car market down
� Growth in Chinese and US car market
� Aggressive incentives in all markets
2013 h1 Volvo cars sales performance
� China: Sales growth of over 34% and a sales record in June
� USA: Strong sales of XC60/S60. Sales affected by limited product portfolio and stiff competition
� Europe: Sales declined with reduced industry volumes and the effect of the model year shift
� Sweden: Volvo Cars outperformed the market and increased market share
5
Retail sales (number of cars sold) 2013 h1 2012 h1 Change,%
China 28 703 21 378 34.3%
USA 32 578 34 617 -5.9%
Europe (EU20) 109 783 123 279 -10.9%
Of which Sweden 25 385 26 296 -3.5%
Of which UK 16 769 17 262 -2.9%
Of which Germany 14 323 17 345 -17.4%
Rest of World 38 054 42 035 -9.5%
Total 209 118 221 309 -5.5%
Financial highlights
6
SEK millions
(unless otherwise stated) 2013 h1 2012 h1
Revenue 56,364 65,411
Gross Income 9,063 10,383
Operating Income -577 349
Operating Margin (%) -1.0 0.5
Net Income -778 -274
Operating & investing cash flow -1,797 -2,841
Net Revenue 2013 H1 vs 2012 h1
� Lower sales volumes
� Increased discounts
� Negative exchange rate
impact
� Market & Model Mix
positive
7
0
20 000
40 000
60 000
80 000
100 000
2013 H1 2012 H1
Revenue (msek)
56,36465,411
Operating income 2013 h1 vs 2012 h1
8
PositiveLower cost
levelsMarket MixModel Mix
NegativeVolume
Discounts Exchange
rates
-800
-600
-400
-200
0
200
400
Operating Income (msek)
-577
349
2013 H12012 H1
Cash flow 2013 h1 vs 2012 h1
� Decreased operating result
� Working capital improvements
� Continued investments in
transformation programme:
new vehicle & engine
architectures
9
-3 000
-2 500
-2 000
-1 500
-1 000
-500
0
500
1 000
Cash Flow - operating & investing (msek)
-1,797
-2,841
2013 H1 2012 H1
Financial summary 2013 H1
� Operating income of MSEK -577 in line with plan
� Lower sales volumes
� Continued stiff competition in the markets putting
pressure on margins
� Cost adaptation implemented
� Continued investments to secure transformation
programme
� Facilities from Swedish Export Credit (SEK 1,000
million) and second tranche of China Development
Bank (EUR 107 million) drawn
10
outlook 2013
� Refreshed product portfolio with strong order intake
generating higher volumes H2
� Continued focus on cost
� Launch of Drive-E
� China Sales: High volume growth and Chengdu and
Zhangjiakou start of production end of 2013
� Sales for full year projected to be in line with 2012
� July increased by 14% and August by 5%.
� January to August, a decline of 2.5% compared to last
year.
� Realistic possibilities to achieve break-even result for full
year
11
GLT Town hall presentation February 8, 2013 Security Class: Confidential 12
Q&A