volvo ce corp pres 2011_no
DESCRIPTION
Volvo Construction Equipment Annual Report 2011TRANSCRIPT
Volvo Construction EquipmentCOMPANY PRESENTATION 2011
Volvo Construction EquipmentCompany presentation2 March 2011
Volvo Construction Equipment
• Develops, manufactures and markets equipment for construction and related industries
• Has a broad range of products and services
• Is part of the Volvo Group
Volvo Construction EquipmentCompany presentation3 March 2011
The Volvo Group
• Is one of the world's leading suppliers of transport solutions for commercial use
• Also offers complete solutions for financing and service
Volvo Construction EquipmentCompany presentation4 March 2011
MACK TRUCKSRENAULTTRUCKS UD TRUCKS VOLVO BUSES
VOLVO CONSTRUCTION
EQUIPMENT
VOLVO PENTA VOLVO AERO VOLVO FINANCIALSERVICESVOLVO TRUCKS
Organization
VOLVO 3P
VOLVO POWERTRAIN
VOLVO PARTS
VOLVO LOGISTICS
VOLVO INFORMATION TECHNOLOGY
VOLVO GROUP REAL ESTATE – VOLVO BUSINESS SERVICES
VOLVO TECHNOLOGY
VOLVO GROUP
EICHER
Volvo Construction EquipmentCompany presentation5 March 2011
The Volvo Group around the world
Number of employees: over 90,000
Volvo Construction EquipmentCompany presentation6 March 2011
Volvo Construction Equipment An important contributor to the Volvo Group
Operating incomeTotal: SEK 18 bn (US$ 2.5 bn)
SalesTotal: SEK 264.7 bn (US$ 37.1 bn)
63%Trucks
8%Buses
20%Volvo CE
3%Volvo Penta
3%Volvo Aero
3%Financial Services
Bus
es
Vol
vo C
E
Vol
vo P
enta
Vol
vo A
ero
Fina
ncia
l Ser
vice
s
Oth
er
Truc
ks
56% 34% 3%4% 2% 1% 0%
1110
9876543210
-153.8 bn
Volvo Construction EquipmentCompany presentation7 March 2011
Volvo Construction Equipment
Volvo Construction EquipmentCompany presentation8 March 2011
Core products
Volvo Construction EquipmentCompany presentation9 March 2011
Soft products
core products
extended products offering
aftermarket products
services offering
SOFT PRODUCTS
PRODUCTS SERVICES
Volvo Construction EquipmentCompany presentation10 March 2011
Our organization – a global company
HQ PLANTS REGIONAL SALES OFFICES HQ CUSTOMER SUPPORT HQ
Volvo Construction EquipmentCompany presentation11 March 2011
Our employees
Europe 6,811Asia 4,415North America 1,151South America 647Rest of the world 19Total 13,043
December 2010
Volvo Construction EquipmentCompany presentation12 March 2011
Our core values
SAFETY
ENVIRONMENTAL CAREQUALITY
Volvo Construction EquipmentCompany presentation13 March 2011
Quality…What drives us
• Quality is at the heart of everything we do
• Our measure of quality is customer satisfaction
Volvo Construction EquipmentCompany presentation14 March 2011
Safety…Caring about people
• We look at safety in 3 ways: people, worksites and machines
• We designed the Volvo Care Cab for safety, comfort and control
Volvo Construction EquipmentCompany presentation15 March 2011
Environment…Ours to protect
• “We are part of the problem –but we are also part of the solution.” (Volvo Group’s CEO, 1972)
• We have a multi-faceted approach: energy efficiency, reduced emissions, sustainability…
Volvo Construction EquipmentCompany presentation16 March 2011
The Volvo WayOur corporate culture
• Energy
• Passion
• Respect for the individual
Volvo Construction EquipmentCompany presentation17 March 2011
CEOPat Olney
Company leadership
LegalEdvard Carleson
StrategyCarl Lockwood
Human ResourcesRichard Eyres
CorporateCommunicationsKlas Magnusson
OperationsJean-Marc des Courières
TechnologyAnders Larsson
Sales & MarketingEberhard Wedekind
FinanceRobert Dicker
Volvo Construction EquipmentCompany presentation18 March 2011
R&D Plant
Arvika, Sweden
Eskilstuna, Sweden
Wroclaw, Poland
Bangalore, IndiaHameln, Germany Konz, Germany
Hallsberg, Sweden
Braås, Sweden
Tultitlán,Mexico
Shanghai, China
Changwon, Korea
Shippensburg, US Jinan, ChinaLinyi, China
Belley, France
Pederneiras, Brazil
A global manufacturer
Volvo Construction EquipmentCompany presentation19 March 2011
Industry Segments Customer Types
Heavy Infrastructure
34%
Road Construction
15%
Utilities2%
Building7%
Demolition1%
Recycling Industry
3%
Industrial Material Handling
4%
Forestry Industry
2%
Agriculture & Landscaping
6%
Mining15%
Quarries & Aggregates
10%
Energy related Industry (Oil &
Gas)1%
Contractors59%Producers (Site
Dependent)27%
Rental12%
Public Authorities
2%
Industry segments and customer types
Volvo Construction EquipmentCompany presentation20 March 2011
The growth of our company
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Ingersoll-Rand (2007)
Lingong (2006)
Skat Trak (2003)
Backhoe Loaders (2002)
Samsung (1998)
Champion (1997)
Pel-Job (1996)
Åkerman (1991)
Zettelmeyer (1990)
Volvo (historical base)
Machine Volumes
Volvo Construction EquipmentCompany presentation21 March 2011
The evolution of our company
1954
1966
19961991
2002
1997
1991
2003
2007
2006
Specialist
Multi-Specialist
Total Solution Provider
MachinesServices
AttachmentsParts
Cus
tom
er O
ffer
Time
1990
Volvo Construction EquipmentCompany presentation22 March 2011
Volvo Construction Equipment vs industry products
* Road Machinery Equipment, ** Utilities
Volvo Construction Equipment
35%
36%
12%
9% 8%
***
Industry (Volvo Portfolio)**
24%
55%
3%
8%10%
*
Volvo Construction EquipmentCompany presentation23 March 2011
Volvo Construction Equipment vs industry geography
Volvo Construction EquipmentIndustry (Volvo Portfolio)
Europe12%
China42%
Rest of the world 10%
Asia excl. China14%
Latin America 6%
North America16%
Europe 30%
China 29%
Rest of the world 5%
Asia excl. China 16%
Latin America 8%
North America 12%
Volvo Construction EquipmentCompany presentation24 March 2011
Two strong brands
• Strong global presence
• Broader customer base
• Technology synergies
Volvo Construction EquipmentCompany presentation25 March 2011
Quarry and Aggregates Site establishment Distribution
Exploitation Maintenance
Processing Reclamation
Investigation & planning
Harvesting /off-road transport
Equipment transport
Preparing access
Drilling, charging & blasting Loading / transport –
face to crusher
Digging / primary loading
Digging / Oversized stone handling
Stripping / removal of overburden Site
maintenance
Crushing & screening
Rehandling / stockpiling
Loading for distribution
Site reclamation / reinstatement
4
32
1
5
9
7
6
8
13
14
10
11
12
Volvo Construction EquipmentCompany presentation26 March 2011
Ground reinforcement
Investigation & planning
Forest harvesting / removal of overburden
Mass excavation
Deep utilities
Building
Foundations
Site clean-up / repair & maintenance
Reinstatement / landscaping
Building
1
2
3
4
5
6
7
8
9
Volvo Construction EquipmentCompany presentation27 March 2011
Investigation & planning
Site clean-up / repair & maintenance
Final grading
Testing & backfilling
Excavation / light & shallow utilities
Reinstatement / landscaping
Utilities
1
2 3
4 5
6
7
8
Volvo Construction EquipmentCompany presentation28 March 2011
Land clearing
Light & shallow utilities
Kerb & guttering
Maintenance & rehabilitation
Underground utilities / drainage /
ground reinforcements Construction of road base
Road pavement
Mass excavation
Project completion / landscaping
Road construction1
2
34
5
6
7
8
9
Volvo Construction EquipmentCompany presentation29 March 2011
Opening / clearing the right of way
Material delivery Pipe
unloading
Bending & set-up
Preparing the pipe bed
Stringing
Trenching
Tie-insLowering in
Bevelling / welding
Equipment delivery
Reinstatement & restoration /
planting
Pipe induction heating & coating (PIH)
Oil and gas
1a
2
3
4
5 6
7 8
9
10
11
1b
1213
17 18
Backfilling & testing
Grooming16
14 15