AB Volvo

AB Volvo

AB Volvo

Overview
Date Founded

1927

Headquarters

Gropegårdsgatan 2,Gothenburg, Vastra Gotaland 417 15

Type of Company

Public

Employees (Worldwide)

87.1K

Industries

Trucks, Construction & Farm Machinery
Other Transportation
Automobiles
Industrial Machinery & Manufacturing

Company Description

Volvo AB engages in the design, manufacture, and market of commercial vehicles. It operates through the following segments: Trucks, Construction Equipment, Buses, Volvo Penta, Group Functions and Others, Industrial Operations, and Financial Services. The Construction Equipment segment manufactures a number of different types of equipment for construction applications and related industries. The Buses segment provides city and intercity buses, coaches and chassis. The Volvo Penta segment markets marine and industrial engines. The Volvo Financial Services segment delivers financial solution to Volvo Group customers. The company was founded by Assar-Thorvald Nathanael-Gabrielsson and Erik Gustaf Larson in 1915 and is headquartered in Göteborg, Sweden.

Executives & Employees

President, Chief Executive Officer & Director

Executive Vice President, Corporate Finance & Control

Chief Financial Officer

Executive Vice President Group Legal & Compliance & General Counsel

Group Chief Technology Officer

Executive Vice President Volvo Group & Chairman of Ud Trucks

Executive Vice President, Group Human Resources

Executive Vice President Group Communication

Executive Vice President Group Trucks Operations

Executive Vice President Volvo Group Trucks Purchasing

Board of Directors

Chief Executive Officer & President at The Hertz Corporation

Founder at Baja Corp. LLC

Chairman at DevCo Partners Oy

Chief Executive Officer at Industrivärden AB

President, Chief Executive Officer & Director at AB Volvo

Former President, Chief Executive Officer & Director at The Timken Co.

Director at Ericsson, Inc.

Senior Partner at EMERAM Capital Partners GmbH

Paths to AB Volvo
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AB Volvo
Owners & Shareholders
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Alecta is a long-term, risk-averse manager which follows a growth-and-value investment approach. Their investment philosophy emphasizes cost efficiency, capital appreciation and meeting planned withdrawals. A major part of their assets is invested in fixed-income, focusing on Sweden and Europe.The firm invests in equity across market-caps, favoring Sweden, Europe, the US and Japan. They also manage real estate investments located both in Sweden and abroad, favoring office and commercial space as well as in industrial and residential real estate.Alecta constructs diversified portfolios which they manage against benchmarks with minimal deviation. They actively manage Swedish and US equity, while European and Japanese equity is managed passively to track reference indexes in each market.

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Swedbank Robur is an active, research-based manager with a long-term outlook. Their GARP-oriented investment approach combines top-down (using proprietary macroeconomic models) and bottom-up considerations (for regions, sectors and companies). Their investment products include equity, fixed-income and balanced funds and cover all major regions, sectors and asset classes.The bulk of the firm's assets is invested in equity. Their equity portfolios are constructed primarily of Scandinavian and European stocks, focusing on large-cap companies with a proven track record, sound management and financial stability. They manage fixed-income portfolios against indexes.Swedbank Robur conducts fundamental analysis. Investment decisions are informed by in-depth research into macroeconomics, industry sectors, and companies. Research emphasizes a regional focus on Scandinavia, Europe, the US and Asia, as well as a sector focus on health care, technology, cyclicals, consumer, financials and social responsibility.Specialist investment managers are organized in teams, and regularly visit the companies in which they invest. Portfolios are subject to an in-depth follow-up process and independent risk control.

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SEB-IM is an active, GARP-oriented manager which invests globally across market-caps in fixed-income and equity, with a focus on Europe and marginally in the US. Real estate represents a small proportion of their investments. Their investment approach is influenced by their commitment to ethical, environmental and corporate governance issues.The firm's investment process starts with strategic asset allocation based on a top-down macroeconomic analysis of the factors influencing global and domestic markets. They pay particular attention to GDP growth, interest rates, inflation, Forex movements and global market trends. Next, the firm ranks sectors, listing the companies deemed most attractive. Quantitative screens help refine the investment universe. They construct portfolios through a stock-picking process where portfolio managers emphasize fundamental, bottom-up research, seeking to invest in undervalued companies with solid growth prospects.

Recent Transactions
Details Hidden

Zhejiang Geely Holding Group Co., Ltd. purchases AB Volvo from Cevian Capital AB

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AB Volvo purchases Amtek Auto Ltd. /Floby Component Plant from Amtek Auto Ltd.

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KNDS purchases Volvo Group Governmental Sales Oceania from AB Volvo

Transaction Advisors
Accountant

Advised onAB Volvo, NA KK purchase Nissan Diesel Motor Co., Ltd.

Investment Advisor

Advised onAB Volvo purchases Scania AB

Legal Advisor

Advised onAB Volvo, Volvo Bussar AB purchase Henlys Group Plc /Bus Body & City Bus Mfg (2) from Henlys Group Plc

Legal Advisor

Advised onAmtek Auto Ltd. purchases Volvo AB /Floby Component Plant Ops from AB Volvo

Co-Managing Shareholder

Advised onPlatinum Equity LLC purchases Volvo Rents, Inc. from AB Volvo

Legal Advisor

Advised onAmtek Auto Ltd. purchases Volvo AB /Floby Component Plant Ops from AB Volvo

Advisors & Consultants
Legal Advisor

Founding Member at Sandberg Phoenix & von Gontard PC

Advisor

President at Mack Trucks, Inc.

Senior Advisor

Former Head, Corporate Communication & Sustainability Affairs at AB Volvo

Clients

Renault SA engages in the manufacture of vehicle. It offers passenger cars, commercial vehicles, electric vehicles, and sport vehicles. The company operates through the following brands: Renault, Dacia, Renault Samsung Motors, Alpine, and LADA. Renault was founded by Louis Renault in 1898 and is headquartered in Boulogne-Billancourt, France.

Eicher Motors Ltd. engages in the development, design, manufacture, assembly and sale of two-wheelers as well as related parts and accessories. It operates through Domestic and Overseas geographical segments. The Domestic segment includes sales and services to customers located in India. The Overseas segment includes sales and services rendered to customers located outside India. The company was founded on March 14, 1982 and is headquartered in Gurgaon, India.

Tan Chong Motor Holdings Berhad (TCMH) was incorporated in Malaysia on 14 October 1972. From its humble beginning as the distributor of small motor vehicles back in the 1950s, TCMH Group (the Group) is today one of the largest national conglomerates involved in a myriad of business activities; from the assembly and marketing of motor vehicles and auto parts manufacturing to property development as well as trading in various heavy machineries, industrial equipment and consumer products - both locally and abroad. As part of a restructuring exercise to strengthen our foothold as an industry major player; in 1998 various business interests of TCMH abroad were eventually demerged and subsequently listed on The Stock Exchange of Hong Kong Limited under the Tan Chong International Limited flagship. This was followed by the demerger of its automotive parts division, non-motor division involving cosmetics, undergarments, and the distribution of heavy machinery as well as tourism-related businesses; which was subsequently listed on the Main Board of Bursa Malaysia Berhad in 1999 under APM Automotive Holdings Berhad and Warisan TC Holdings Berhad respectively. These exercises have enabled the Group to realign its focus on motor industry business. TCMH is basically an investment holding company and the Group’s current principal activities among others are; assembly and distribution of motor vehicles, provision of after-sales services and motor related financial services such as hire purchase, an insurance agency, and leasing. On top of that, the Group is the franchise holder and exclusive distributor of Nissan passenger and light commercial vehicles as well as Renault vehicles in Malaysia, with 98 sales branches and authorized dealership outlets nationwide; supported by 91 after-sales service centres. In addition, we are also the franchise holder and exclusive distributor for trucks and buses under the UD Trucks and Silverbus brands, with 12 sales centres and 16 sales dealers, supported by 10 after-sales service centres and 36 authorised service dealers; with a market share of 15% for heavy commercial vehicles (HCV), 8% for light commercial vehicles (LCV) and 33% for buses, thus establishing us as one of the leading commercial vehicle distributors in Malaysia. The two assembly plants in Segambut (Kuala Lumpur) and Serendah (Selangor) have very close capacity; both plants together can deliver 100,000 units a year with additional shift and reasonable overtime; the Group’s vehicles sales enjoyed a market share of 11.93% for non-national cars and 5.21% for the industry-wide market as of September 2012

Key Stats and Financials As of 2017
Market Capitalization
$278B
Total Enterprise Value
$404B
Earnings Per Share
$10.33
Revenue
$335B
Net Profit
$21B
EBITDA
$46.1B
EBITDAMargin
13.78%
Total Debt
$128B
Total Equity
$109B
Enterprise Value Sales
1.21x
Enterprise Value EBITDAOperating
8.75x
TEVNet Income
19.25x
Debt TEV
0.32x
Three Year Compounded Annual Growth Rate Of Revenue
5.76%
Five Year Compounded Annual Growth Rate Of Revenue
1.97%
Investments
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IronPlanet, Inc. operates an online marketplace for buying and selling used heavy equipment and trucks. It offers construction equipment, cranes, mining equipment, oil and gas machinery, agricultural equipment, trucks and motors, attachments and parts, forestry machinery, forklifts, and quarry and aggregates. The firm also provides rental and online auction services. The company was founded by Reza Bundy Saadlou in 1999 and is headquartered in Pleasanton, CA.

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Lamera AB develops ultra-light metal composites. It engages in developing, producing, and marketing light stainless steel for energy absorption systems. The firm builds on Hybrix composite technology, which is a ultra light, thin, and formable metal sandwich material. The company was founded by Anders Samuel Axelsson and Mattias Grufberg on December 23, 2004 and is headquartered in Vastra Frolunda, Sweden.

Investors
Details Hidden

Former Executive Vice President-Corporate Strategy at AB Volvo

Details Hidden

Executive Vice President Volvo Group & Chairman of Ud Trucks at AB Volvo

Details Hidden

Former Senior Vice President-Public & Environmental Affairs at AB Volvo

Suppliers
Actuant Corp. Industrial Machinery & Manufacturing | Menomonee Falls, WI

Actuant Corp. is a diversified industrial company, which engages in the designing, manufacturing, and distribution of a broad range of industrial products and systems to various end markets. It operates through three segments: Industrial, Energy, and Engineered Solutions. The Industrial segment designs, manufactures, and distributes branded hydraulic and mechanical tools to the maintenance, industrial, infrastructure, and production automation markets. The Energy segment provides joint integrity products and services, as well as umbilical, rope and cable solutions to the global oil and gas, power generation, and markets. The Engineered Solutions segment is a designer and assembler of system critical position and motion control systems and other industrial products to various vehicle and other niche markets. The company was founded in 1910 and is headquartered in Menomonee Falls, WI.

Cummins, Inc. Oil & Gas | Columbus, IN

Cummins, Inc. engages in the design, manufacture, sale and service of diesel and natural gas engines and related technologies, including fuel systems, controls, air handing, filtration, emission, solutions and electrical power generation systems. It operates through the following segments: Engine, Distribution, Components and Power Generation. The Engine segment manufactures and markets a range of diesel and natural gas powered engines under the Cummins brand name, for the heavy- and medium-duty truck, bus, recreational vehicle, light-duty automotive, agricultural, construction, mining, marine, oil and gas, rail and governmental equipment markets. The Distribution segment consists of parts, engines, power generation and service, which service and distributes range of its products and services. The Components segment supplies products which complement its Engine and Power Systems segment, including aftertreatment systems, turbochargers, filtration products and fuel systems for commercial diesel applications. The Power Generation segment designs and manufactures most of the components that make up power generation systems, including controls, alternators, transfer switches and switchgear. Cummins was founded by Clessie Lyle Cummins and William Glanton Irwin on February 3, 1919 and is headquartered in Columbus, IN.

Perceptron, Inc. Industrial Machinery & Manufacturing | Plymouth, MI

Perceptron, Inc. engages in the development, production, and trade of automated industrial metrology products and solutions. It operates through the following geographical segments: Americas, Europe, and Asia. It offers 3D machine vision solutions, robot guidance, coordinate measuring machines, laser scanning, and advanced analysis software. The company was founded by Dwight D. Carlson and James K. West in 1981 and is headquartered in Plymouth, MI.

Competitors
Caterpillar, Inc. Trucks, Construction & Farm Machinery - Deerfield, IL

For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. With 2011 sales and revenues of $60.138 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services and Progress Rail Services.

PACCAR, Inc. Trucks, Construction & Farm Machinery - Bellevue, WA

PACCAR, Inc. is a global technology company, which engages in the design and manufacture of light, medium, and heavy-duty trucks. It operates through the following segments: Truck, Parts, Financial Services, and Other. The Truck segment designs and manufactures heavy, medium, and light duty diesel trucks which are marketed under the Kenworth, Peterbilt, and DAF brands. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment provides finance and leasing products; and services provided to truck customers and dealers. The Other segment covers the manufacturing and marketing of industrial winches. The company was founded by William Pigott Sr. in 1905 and is headquartered in Bellevue, WA.

Daimler AG Automobiles - Stuttgart, BW

Daimler AG is one of the world’s most successful automotive companies. With its divisions Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services, the Daimler Group is one of the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles with a global reach. Daimler Financial Services provides financing, leasing, fleet management, insurance and innovative mobility services. The company’s founders, Gottlieb Daimler and Carl Benz, made history with the invention of the automobile in the year 1886. As a pioneer of automotive engineering, Daimler continues to shape the future of mobility today: The Group’s focus is on innovative and green technologies as well as on safe and superior automobiles that appeal to and fascinate its customers. For many years now, Daimler has been investing continually in the development of alternative drive systems with the goal of making emission-free driving possible in the long term. So in addition to vehicles with hybrid drive, Daimler now has the broadest range of locally emission-free electric vehicles powered by batteries and fuel cells. This is just one example of how Daimler willingly accepts the challenge of meeting its responsibility towards society and the environment.