Volvo Buses

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

Our Core Values

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

Volvo Group

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

Volvo Buses Today

• Global industrial and

commercial structure
• A broad range of new
products
• Top of the line Parts and
Services
• Customer focus

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

The complete offer

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

What is a busride?

Travel agencies

Politicians Ticket system

City planning Bus routes
Transport policies Buses Parts
The answer varies depending
Finance companies Passengers Service
who you are asking:
Laws & regulations Drivers Terminals
Traditions
Maintenance
Banks
Bus operators
Traffic planning

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

Volvo Buses - Top Ten Markets 2001

No. of buses
2000

1 745

1500

1 112

1000 934
885

600
514
500 427
339
219 209 209

0
ain
o

bia
il

l
n

ain

ay
en

ae
Gr na *
xic

az
A

Ira
rit

rw
lum
US

ed

Isr
Sp
Br
Me

tB
i
Ch

No
Sw

Co
ea

* incl. Hong Kong

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

Sales Operating Income

MSEK MSEK

17 187 16 675 550

440
15 160 384
14 286 331
241

10 582
8 527

-524

1996 1997 1998 1999 2000 2001 1996 1997 1998 1999 2000 2001

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

R&D Capital Expenditures

MSEK MSEK
618 614
576 368 363
497 320
434 276
343 199
149

1996 1997 1998 1999 2000 2001 1996 1997 1998 1999 2000 2001

Employees Percentage of Group

No. of employees Sales 2001
8 790 8 890 9 060
9%
6 228

4 220
3 760

1996 1997 1998 1999 2000 2001

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

Main OECD Bus Manufacturers

and their total worldwide production >12 tons GVW (excl. US schoolbuses)

1976 1980 1990 2000

No. of buses
Mercedes 15,090 Mercedes 20,900 Mercedes 16,830 Mercedes&Setra 24,330
Isuzu 1 6,680 Fiat 5,640 4,340 11,240
Hino 1 3,470 Leyland 4,390 Scania 3,150 Irisbus 3 7,860
Mitsubishi 1 3,450 4,330 Mitsubishi 1 3,010 MAN 4,740
Leyland 3,340 Isuzu 1 4,130 Iveco 2 2,900 Scania 4,170
Fiat 3,150 RVI 2,980 Isuzu 1 2,780 Hino 1 3,780
RVI 3,080 Hino 1 2,780 RVI 2,540 VW Brazil 3,016
MAN 2,740 Scania 2,730 Hino 1 2,270 Isuzu 1 2,130
2,570 MAN 2,490 Setra 2,240 Neoplan 2,060
Pegaso 1,980 Mitsubishi 1 2,350 MAN 1,740 Mitsubishi 1 1,880

1) Above 30 passengers 3) Incl. RVI & Iveco

2) Iveco (Fiat & Magirus)

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

Volvo Buses Sales by Business Area

1970 - 1980 - 1990 – 2000 & 2001

units
12000

10000

8000

6000

4000
Other
Asia
2000
South America
North America
0 Europe
1970 1980 1990 2000 2001

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

units / MSEK
Volvo Buses’ Development
20000
Units closed or
divested:
Shanghai -00
Vienna -99
16000 MASA -98
Nova BUS -98 Irvine -00
Carrus -98 Helsinki -01
Prévost -95 South Africa -01
12000
Prevost and Nova
Drögmöller -94
50% conslidated -01
Aabenraa -94
Roswell -02
Xian -94
8000
Steyr -90
Säffle -81 Leyland -88
Brazil -79
4000
Volume

Sales
0
70

75

80

85

90

95

00
19

19

19

19

19

19

20
Nordic Chassis European Acquisition phase Consolidation
Company growth & Complete buses phase

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

The complete offer

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

Volvo Bus Services

Volvo offers individual customer-tailored
solutions such as:

• Vehicle Control Systems

• Traffic Control Systems
• Traffic Information Systems

• Hire-purchase agreements
• Operational and financial leasing
• Insurance

• Service agreement
• Maintenance agreements

• Product training for drivers and mechanics

• Workshop advice
• Technical advice

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

Chassis

Volvo B12B
Volvo B12M

Volvo B12BLE

Volvo B7R, B7F, B10M

Volvo B10BLE, B10M Articulated

Volvo Super Olympian

Volvo B7L, B7L Articulated

Volvo B7L Double Deck

Volvo B10L CNG

B10L Articulated CNG

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

Buses and coaches

Volvo 9900 Volvo 8700 Volvo 5000, 7000

Volvo 9700 Volvo 8500LE, 8700LE

Volvo 8500 Nova Bus LFS

Prévost H, XLII MASA C10, C11, C11R

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

City Integrated Terminal

planning

Feeder
line

Bus
stop
The Mass
transit
Curitiba
Model

Safe and
weather
Bi-articulated protected
bus terminal

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

What we want What is What will happen What actually

The to happen happening within short happened

Gothenburg Central Computer

Model Planned Real time Forecast Statistics

Traffic Position Model for
Replanning

Mobile
Communication

Waiting
Internet
Passengers

Driver Phone
Local
Communication
Bus
for Opening of
Operator
Signals

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

Volvo Action Service

24 hour service
• Break Down
• Financial Assistance
• Technical Help-Desk
• Rentals & Forwarding
• VOR Delivery
• Legal Assistance

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

Global production facilities

Säffle Tampere
Borås
Turku
Aabenraa

St Claire Wroclaw
St Eustache Heilbronn
Schenedectady Save
Roswell Casablanca Xian
Mexico City Tel Aviv Shanghai

Bangalore Bangkok
Kuala Lumpur

Complete buses
Chassis Curitiba
Gaborone
Chassis,
independent
manufacturers, CKD
Body builders

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

Employees

Europe
North America 3,489
2,470
Asia Pacific
44

Africa
21
South America
204

December 2001

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

Employees
incl. joint ventures

Europe
North America 3,778
3,485
Asia Pacific
1,692

Africa
21
South America
204

December 2001

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

The Volvo Bus Offer

Infrastructure

Routes Organisation

Mobile IT
• A bus solution that makes a Control
vehicle an efficient transport system
Insurances Financing Time
tool tables
Bus
Fare Spare Service
• With constant service and system parts Chassis contract
one stop shopping Bodies
• A complete offer from one Training Fleet
Transport
supplier Ticket policies
system Management

Information Operational
system strategies

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

Volvo Buses – Journey through time

1951 – The first mid-engined The 90’s was characterized by global expansion.
chassis was introduced. A variety of acquisitions were made.

1934 – Volvo introduced a In the 70’s Volvo B10M and

brand new bus chassis – B1. Volvo B59 were introduced
and Boråsfabriken was built.

1928 – The first 1968 – Volvo Bus Division was The brand new TX-
Volvo Bus built on established as a company in its own right. platform was
a truck chasisis. introduced in 2000.

1981 – For the first time Volvo

1945 – Volvo Diesel delivered more than 4 000
Engine was introduced buses a year.

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

Bus World Market 2001

>12 tons

Europe
Total: 21,000
North America Volvo: 3,189 (12,4%)
Total: 17,134
Volvo: 2,875 (16,8%)
Asia Pacific
Total: 55,220
Volvo: 812 (1,5%)
South America >16 tons
Total: 11,454
Volvo: 1,203 (10,5%)

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

Modes of Public Transport

The World Europe

21% of all travel in Europe is
43% of all travel in the world is by by public transport Bus
Rail
public transport
(Bus 41% Rail 29%, Air* 22%)
Air*
Other modes of
Public Transport
3%

USA
14% of all travel in the USA is Bus
by public transport
Rail
(Bus 23%, Rail 2%, Air* 73%) Air*
16%

Bus & Coach

Air* 58% Rest of the World
23% Rail
63% of all travel in the rest of
the world is by public Air*
Bus
transport
(Bus 63%, Rail 16%, Air* 18%)

Source: EU Transport in Figures 2000 *excludes intercontinental flights

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

Manufacturer Consolidation - Europe

1972 1982 1992 2001
Volvo Volvo Volvo Volvo
Scania Vabis Scania Scania Scania
Daimler Benz Daimler Benz Daimler Benz Evobus
MAN MAN MAN Neoman
Magirus-Deutz Setra Setra VDL
Setra Neoplan Neoplan Van Hool
Neoplan Drögmöller Drögmöller Irisbus
Drögmöller DAF United Bus Transbus
DAF Bova Van Hool Bova
Bova Van Hool RVI
Van Hool LAG Iveco
Saviem RVI Dennis
Berliet Iveco Bova
Heuliez Inbus
Pegaso Heuliez
Fiat Pegaso
ÖAF/Gräf und Stift Steyr
Steyr Leyland
Saurer Bedford
FBW Dennis
Leyland Ford
Bedford MCW
Seddon
Dennis
Ford

Volvo Bus Corporation

Corporate Presentation - 2002
 Volvo Buses

On the move in 2050

Global Mobility will double from 1997 levels (28tr) to 53tr in 2020.
Buses share will remain stable.
Implication - fleet capacity will have to double in 20 years if
utilization rates remain similar to today

4%

20%

6%
41%
RAILWAYS 9% 9% 25%
26%
BUSES 3% 20%
35%
29%
AUTOMOBILES 43%
53%
HIGH-SPEED
TRANSPORT 54% 23%

5,5 TRILLION PKM 23,4 TRILLION PKM 53 TRILLION PKM 103 TRILLION PKM
1960 1990 2020 2050

Forecast by Schafer and Victor

Volvo Bus Corporation

Corporate Presentation - 2002