Volvo CE Corp Pres 2011_no

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


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


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


The Volvo Group around the world

Number of employees: over 90,000


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




Core products


Soft products

core products

extended products offering

aftermarket products

services offering

SOFT PRODUCTS

PRODUCTS SERVICES


Our organization – a global company

HQ PLANTS REGIONAL SALES OFFICES HQ CUSTOMER SUPPORT HQ


Our employees

Europe 6,811Asia 4,415North America 1,151South America 647Rest of the world 19Total 13,043

December 2010


Our core values

SAFETY

ENVIRONMENTAL CAREQUALITY


Quality…What drives us

• Quality is at the heart of everything we do

• Our measure of quality is customer satisfaction


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


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…


The Volvo WayOur corporate culture

• Energy

• Passion

• Respect for the individual


CEOPat Olney

Company leadership

LegalEdvard Carleson

StrategyCarl Lockwood

Human ResourcesRichard Eyres

CorporateCommunicationsKlas Magnusson

OperationsJean-Marc des Courières

TechnologyAnders Larsson

Sales & MarketingEberhard Wedekind

FinanceRobert Dicker


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


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


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


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 Equipment vs industry products

* Road Machinery Equipment, ** Utilities


35%

36%

12%

9% 8%

***

Industry (Volvo Portfolio)**

24%

55%

3%

8%10%

*


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%


Two strong brands

• Strong global presence

• Broader customer base

• Technology synergies


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


Ground reinforcement


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



Site clean-up / repair & maintenance

Final grading

Testing & backfilling

Excavation / light & shallow utilities

Reinstatement / landscaping

Utilities

1

2 3

4 5

6

7

8


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


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

Documents

Volvo CE Corp Pres 2011_no