VOLVO CONSTRUCTION EQUIPMENT Corporate Presentation 2019 VOLVO GROUP 1
Volvo CE Corporate Presentation 2019 2 Volvo Group 2018
We are one of the world’s leading manufacturers of trucks, buses, construction equipment, and marine and industrial engines. We also provide complete solutions for financing and service.
Volvo CE Corporate Presentation 2019 3 Volvo Group 2018
We employ more than 105,000 people, have production facilities in 18 countries and sell our products in more than 190 markets.
Volvo CE Corporate Presentation 2019 4 What we do
ON THE ROAD IN THE CITY Our products are part of the daily life. Our products help ensure that They take people to work, distribute people have food on the table, can goods and collect rubbish. We are travel to their destination and have developing tomorrow’s public transport roads to drive on. solutions.
AT THE SITE AT SEA We contribute to the extraction Our products and services are with you, of some of the world’s most important raw regardless of whether you are at work on materials. Our engines, machines and vehicles a ship or on holiday with your pleasure can be found at mining and construction sites boat. and in the middle of forests.
Volvo CE Corporate Presentation 2019 5 OUR MISSION
Driving prosperity through transport solutions
Modern logistics is a prerequisite for our economic welfare: transport helps combat poverty. Transport is not an end in itself, but rather a means allowing people to access what they need, economically and socially.
Volvo CE Corporate Presentation 2019 6 OUR VISION
Be the most desired and successful transport solution provider in the world
We are in a people business. We operate in a business-to-business market, where people make the decisions. Trust and relations are as important as the total offer. By bringing together the best of everything from the offer to the relationship, we will become the customers’ preferred choice.
Volvo CE Corporate Presentation 2019 7 OUR ASPIRATIONS
Have leading customer Be the most Have industry satisfaction for all brands admired employer leading in their segments in our industry profitability
Volvo CE Corporate Presentation 2019 8 OUR VALUES
Customer success We make our customers win. Trust We trust each other. Passion We have passion for what we do. Change We change to stay ahead. Performance We are profitable to shape our future.
Volvo CE Corporate Presentation 2019 9 Volvo Group Financial performance 2014–2018 SEK bn
NET SALES OPERATING INCOME
283 313 302 333 391 5.8 23.3 20.8 29.7 34.5
14 15 16 17 18 14 15 16 17 18
Volvo CE Corporate Presentation 2019 10 Our organization Volvo Group CEO & Group Executive Board
Group Group GROUP Human Resources Finance FUNCTIONS
Group Legal & Group Communication Compliance
Group Volvo BUSINESS Renault Mack UD Volvo Volvo Volvo Trucks Asia Volvo CE Financial Arquus AREAS Trucks Trucks Trucks Trucks Buses Penta & JVs Services
Group Trucks Technology
TRUCK DIVISIONS Group Trucks Operations
Group Trucks Purchasing
Volvo CE Corporate Presentation 2019 11 VOLVO CONSTRUCTION EQUIPMENT 2
Volvo CE Corporate Presentation 2019 12 Our purpose
At Volvo Construction Equipment we are driven by the idea that through imagination, hard work and technological innovation we will lead the way towards developing a world that is cleaner, smarter and more connected. We believe in a sustainable future, and with the global construction industry as our arena, we work together with our customers to turn this belief into reality for people everywhere. Together we’re building the world we want to live in.
Watch our brand movie here
Volvo CE Corporate Presentation 2019 13 Volvo Construction Equipment Financial Performance 2014–2018 SEK bn
NET SALES OPERATING INCOME
53 51 51 66 84 0.7 2.0 2.2 7.9 12.1
14 15 16 17 18 14 15 16 17 18
Volvo CE Corporate Presentation 2019 14 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
Volvo CE Corporate Presentation 2019 15 Three brands – several products
Volvo CE Corporate Presentation 2019 16 Volvo Services
Fuel Efficiency Productivity Safety Services Services Services Solutions and + = greater brand Financial Uptime Rental experience Services Services Services for the customer
Volvo Genuine New Life Attachments Volvo Parts Services
Volvo CE Corporate Presentation 2019 17 Plant Industrial and Technology Footprint R&D
Arvika, Sweden Eskilstuna, Sweden
Changwon, Korea Motherwell, UK Braås, Sweden Hallsberg, Sweden
Shippensburg, US
Jinan, China
Hameln, Germany
Linyi, China
Konz, Germany
Shanghai, China Wroclaw, Poland
Pederneiras, Brazil Belley, France Bangalore, India
Department, Name, Document name, Security class 18 Date Our employees
Total as of January 2019 = 15,150
1514
Americas (1514)
7791 Asia (5836) 5836 Australia (9) Europe (7791)
9 These figures include temporary employees, hired services and consultants, Terex Trucks and Owned Dealers.
Volvo CE Corporate Presentation 2019 19 Volvo CE Sales Regions Volvo, SDLG and Terex Trucks EMEA China • Headquartered in • Headquartered in Eskilstuna, Sweden. Pudong Jinqiao, • 3 hubs: North, West Shanghai and South. • 2 Hubs: North and • 78 Volvo dealers (6 South. Volvo owned dealers & • 45 dealers (all 72 independent), 23 independent), 166 SDLG SDLG exclusive dealers exclusive dealers and 45 Terex Trucks • 321 dealer locations exclusive dealers • 591 dealer locations APAC Americas • Headquartered in • Headquartered in Singapore, Shippensburg, USA. • 4 hubs (hub India, hub • 2 Hubs: Hub North and Korea, hub Oceania, hub Hub Latin America South East Asia incl. • 68 Volvo dealers (3 Indonesia) Volvo owned dealers & • 41 Volvo dealers (3 65 independent), 6 Volvo owned dealers & SDLG exclusive 38 independent) and 32 dealers and 32 Terex SDLG exclusive dealers Trucks exclusive (1 owned, 29 dealers independent) • 410 dealer locations • 371 dealer locations
Update: Q1-2019
Volvo CE Corporate Presentation 2019 20 Our core values • QUALITY • SAFETY • ENVIRONMENTAL CARE
Volvo CE Corporate Presentation 2019 21 What is sustainability for us within Volvo CE?
Economic sustainability To offer competitive and financially healthy products and services, enabling investments for the future. Economic sustainability Environmental sustainability To limit emissions and use of natural resources in all phases of the product lifecycle.
Social sustainability Environmental Social To care for people’s health and wellbeing in all parts of sustainability sustainability the value chain and to contribute to a sustainable development of the society.
To live our Purpose: To adopt a sustainable mindset across the value chain to deliver clean, productive and innovative products and services to customers – and a better world to society.
Volvo CE Corporate Presentation 2019 22 Building a sustainable culture – Building Tomorrow!
Our purpose We want to is all about influence creating a better others to make place to live for We should We will lead changes that will future generations. deliver clean, the way benefit everyone. productive and towards developing Our future innovative products a world that is products and and services. cleaner, smarter, services will play an and more connected. important part in building a sustainable society.
Volvo CE Corporate Presentation 2019 23 Innovation is in our DNA
ELECTROMOBILITY AUTOMATION CONNECTIVITY
CPG Innovations Communications, Confidential 24 Electromobility Fully electric machines
Volvo CE Corporate Presentation 2019 25 Electromobility Hybrid machines
Volvo CE Corporate Presentation 2019 26 Automation
Volvo CE Corporate Presentation 2019 27 Connectivity
Volvo CE Corporate Presentation 2019 28 Automation
Volvo CE Corporate Presentation 2019 29 Volvo CE Corporate Presentation 2018 30 USAGE OF OUR MACHINES in different segments 3
Volvo CE Corporate Presentation 2019 31 Quarry & aggregates
Volvo CE Corporate Presentation 2019 32 Building
Volvo CE Corporate Presentation 2019 33 Utilities
Volvo CE Corporate Presentation 2019 34 Road construction
Volvo CE Corporate Presentation 2019 35 Oil & gas
Volvo CE Corporate Presentation 2019 36 Demolition
Volvo CE Corporate Presentation 2019 37 Waste & recycling
Volvo CE Corporate Presentation 2019 38 Forestry
Volvo CE Corporate Presentation 2019 39 Mining
Volvo CE Corporate Presentation 2019 40
EXTRA SLIDES 4
Volvo CE Corporate Presentation 2019 42 Volvo CE Executive Management Team
Corporate Communications Sales Operations Bill Law Tomas Kuta Jean-Marc des Courières
President Marketing & Product Portfolio Legal Finance Melker Jernberg TBC Edvard Carleson Philippe Henriette
Human Resources Technology Purchasing Ann-Sofie Räftegård* Thomas Bitter Peter Jordansson
*From 1st Oct 2019
Volvo CE Corporate Presentation 2019 43 Volvo CE Customer types and Industry segments
Customer Types* Industry Segments* Material Oil & Gas Governmental Handling 1%Utilities Other 2% Recycling & Forestry Demolition 4% 3% 1% Waste 2% 1% 4% Producer (Site Agriculture & Heavy Dependent) Landscaping Infrastructure 10% 4% 22%
Rental Provider 11% Road Management 12%
Quarries & Building 22% Contractor Aggregates (Projects) 74% 13% Mining 15% * As of December 2018
Volvo CE Corporate Presentation 2019 44 The growth of Volvo CE Machine volumes 90.000 Terex Trucks 80.000 Ingersoll-Rand (2007) Lingong (2006) 70.000 Skat Trak (2003) Backhoe Loaders (2002) 60.000 Samsung (1998) 50.000 Champion (1997) PelJob (1995) 40.000 Zettelmeyer (1990) Wheel Loaders 30.000 Articulated Haulers
20.000
10.000
0
Volvo CE Corporate Presentation 2019 45 The evolution of Volvo CE
Please find a video about our history here
Volvo CE Corporate Presentation 2019 46 Volvo CE vs industry Share by machine range
Industry (Volvo CE Portfolio)* Volvo Construction Equipment*
14% 6% 0% 5%
32% 13% 48% 61% 7% 61% Excavators 50% Excavators 7% Haulers 14% 14% Haulers 13% Loaders 29% Loaders 5% Road 6% Road 14% Utilities 0% Utilities * As of December 2018
Volvo CE Corporate Presentation 2019 47 Volvo CE vs industry Share by region
Industry (Volvo CE Portfolio)* Volvo Construction Equipment*
RoW Asia Asia RoW 4% Europe 6% Excl. 19% Excl. China China Europe 18% 13% 32%
China North China 26% America 31% North Latin 31% America America Latin 15% 2% America 3% * As of end of December 2018
Volvo CE Corporate Presentation 2019 48 Global industrial structure
Volvo CE Corporate Presentation 2019 49