2Mii Financial Report
Total Page:16
File Type:pdf, Size:1020Kb
Volvo car corporation IN brief • Profitable in 2011 • Strong sales performance • New technological future unveiled • New corporate strategy launched Key figures 2011 2011 2011 H1 H2 Fy Revenue, BSEK 63 63 126 Retail sales, 000 231 218 449 2011 Financial Report EBIT, MSEK 1,529 107 1,636 VOLVO CAR CORPORATION FY 2011 I CONTENT CEO’s comments ..............................................................1 Business overview .............................................................2 Market development ..........................................................4 Focus China ........................................................................5 Financial summary .............................................................6 Income statement ...............................................................7 Balance sheet .....................................................................8 Cash flow, Key Ratios .......................................................9 VOLVOVOLVO CAR CAR CORPORATION CORPORATION FY 2011 Ceo’s comments pRofitaBlE In 2011 “ Our sales situation is positive and we have started the journey of turn- ing the company into a successful luxury car brand.” For 2011, we recorded an EBIT of 1,636* MSEK for Volvo Car regions, with China demonstrating an increase of 54.4 per cent over Corporation – a result in line with our expectations. Retail sales 2010. Most importantly, market shares improved in all major markets in 2011 increased by 20.3 per cent to 449,255 units over full compared to prior year, demonstrating the strength of our new brand year 2010, an improvement of 75,730 units. positioning and the success of our XC60, S60 and V60. This is the first Financial Report issued by Volvo Car Corporation. As a dESIgnEd aRound you stand alone company we are now able to provide increased transpar- 2011 saw the launch of our new corporate strategy. Scandinavian ency around our business and the financial results. We will provide design and a new concept of luxury will be key in realizing the trans- two financial reports annually - one containing full year results and formation of the company. In 2011, we launched Concept You at the one interim report with results for the first six months of the year. Frankfurt Motorshow giving a first indication of what the new Volvo is Overall, I’m pleased looking back on our achievements during all about. Moving into 2012, at the Geneva motor show in March we 2011. Our sales situation is positive and we have started the journey launched the all-new Volvo V40. The car is the first new model that of turning the company into a successful luxury car brand. At the is fully developed according to our human-centric, Designed around same time, we remain exposed to external factors and need to main- you concept. Charged with an outstanding set of high-tech features tain focus in implementing our plans to secure sustainable profitability it definitely will give our toughest competitors a headache and it will for the future. be an important car in achieving our volume ambitions in Europe with targets of around 90 000 sales annually. In terms of environmental STRong pRoduCT and MaRKET MIx performance, we will be class leading with carbon dioxide emissions The EBIT-result of 1,636 MSEK for 2011 is affected by a strong at only 94 g/km. product and market mix contributing to a revenue of 125.5 BSEK. Profitability is affected by increased research & development costs SuCCESSFul yEaR In ChIna and industrial capacity to support expansion plans and the new prod- The expansion plans in China progressed significantly during 2011. uct strategy. Additionally, unfavourable exchange rates and higher raw The organization has grown from a sales company into a full opera- material prices affected bottom line results negatively. tion, and construction has started for the first Volvo plant in China in We will continue to be exposed to external factors and the uncertain- Chengdu. Sales are growing as expected and the dealer network is ties primarily in the European market and we will now need to balance expanding according to plan. Overall, we are on track to achieve our our efforts carefully to maintain the transformation pace in the company. long term objective of 200 000 sales in the Chinese market. STRong SalES pERFoRManCE Despite some turbulence in the markets, we’ve had a very good year Stefan Jacoby from a sales perspective. Significant growth was recorded in all sales President and CEO, Volvo Car Corporation * As of 2012, Volvo Car Corporation will extend it’s external financial reporting for the Group and fully align to IFRS – please refer to definitions under accounting principles on the back cover. Note that any prior communications of results are not fully comparable as a consequence of these changes. VOLVO CAR CORPORATION FY 2011 1 Business overview HighlIghts oF 2011 SPA – lEadIng In FuEl EFFICIEnCy and ExCEllEnT cooperation has been announced between Volvo Car Corporation and dRIVIng dynaMICS Siemens to jointly advance the technical development of electric cars. With its new ownership, Volvo Car Corporation has revealed that The focus is on the joint development of electrical drive technology, major investments will be made in new products and the industrial power electronics and charging technology as well as the integration system in the coming years. This intensive phase of investments of those systems into Volvo C30 Electric vehicles. within Research and Development will lay the foundation for the company’s long term competitiveness. The basis for future Volvo nEw STand-alonE oRganISaTIon cars has been defined with the announcement of a Scalable Product As a stand-alone company and with a new corporate strategy it has Architecture. Together with a new engine and electrification strategy, been essential to realign parts of the organisation in order to properly this will provide technologies that will make Volvo Car Corporation’s support Volvo Car Corporation’s ambitious growth strategy. Several products leaders in fuel efficiency. new globally experienced members have been recruited to the Execu- Scalable Product Architecture (SPA) in principle means that most tive Management Team to secure the execution of the new business Volvo models can be built on the same production line irrespective plan and profitable growth. Marketing, Sales and Customer Service of vehicle size and complexity. When the first model built on SPA is has undergone important restructuring. At Research & Development launched in 2014 - the new XC90 - about 90 per cent of its compo- major recruiting of engineers was initiated - Volvo Car Corporation’s nents will be new and unique. In addition to the industrial benefits of aggressive product plan for the future has created a need to recruit common vehicle architecture there are also significant product related up to 1,200 people, mainly engineers in Gothenburg. A large part of advantages in terms of weight, electrification, driving dynamics and the additional workforce was in place by the end of 2011. design proportions. V40 launCh - 90 000 SalES annually dESIgnEd aRound you - IT’S all aBouT ThE CuSToMER Moving into 2012, the all-new V40 is ready to overtake the competi- A new global corporate and brand strategy - “Designed Around You” tion in the Premium Hatchback class with sharpened features and - is an important part of Volvo Car Corporation’s global revitalisation characteristics from larger Volvos wrapped in a sleek, compact pack- plan. The strategy points out the direction of Volvo’s future brand age. The all-new Volvo V40 features a class-leading safety and driver development, and the key word is human. It summarizes the brand’s support package, including Volvo Car Corporation’s groundbreaking approach to understanding people, providing a more uncomplicated Pedestrian Detection with Full Auto Brake and several other new fea- luxury experience while at the same time linking the brand to the tures. The City Safety low-speed collision avoidance system has been heritage of building safe and dependable cars. Objectives for 2020 further developed and it now operates at speeds up to 50 km/h. include sales volumes above 800,000 cars, top tier luxury brand Volvo Car Corporation expects to sell 90,000 units per year of the perception, and industry leading Return on Invested Capital. all-new Volvo V40. A massive 85 per cent of the total volume will go to European customers. Production of the all-new Volvo V40 starts VolVo CaR CoRpoRaTIon and SIEMEnS launCh ElECTRIC in May 2012. The car will be built in Volvo Car Corporation’s plant in MoBIlITy paRTnERShIp Ghent, Belgium. Volvo Car Corporation is poised to take the lead in developing green technologies to secure sustainable mobility for the future. A strategic 2011 – a yEaR oF TRanSFoRMaTIon • SPA - Scalable Product Architecture announced as new technology base • Designed Around You - a new human centric corporate and brand strategy • Electrification strategy taken one step further with Siemens partnership • New organisation and Executive Management Team Q1 2012 - Launch of all new Volvo V40 in Geneva 2 VOLVO CAR CORPORATION FY 2011 The Concept You was revealed at the Frankfurt Motorshow in September and sets the new design direction and Scandinavian Luxury of Volvo Car Corpration. EMPLoYEES* AVERAGE CARBON DIOXIDE EMISSIONS FOR THE EU CAR FLEET Numbers g/km 30,000 200 190 25,000 24,384 190 22,732 21,512 182 19,650 19,494 20,000 180 173 15,000 170 10,000 160 157 5,000 151 0 0 2007 2008 2009 2010 2011 2007 2008 2009 2010