Post on 26-Jun-2020
CONSTRUCTION SUMMIT ISTANBULZafer Arız
Commercial Aftersales Manager Hub
MEENA, Market East
Volvo Trucks
Johan Abrahamsson
Senior Customer Finance Manager
Volvo Construction Equipment
Gökhan Kenar
Business Manager EMEA Hub South
Volvo Construction Equipment
Volvo GroupVolvo Group
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Volvo Group
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.
Construction Summit Istanbul 2019
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Volvo GroupVolvo Group
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What we do
ON THE ROAD
Our products help ensure that
people have food on the table,
can travel to their destination and
roads to drive on.
AT THE SITE
We contribute to the extraction
of some of the world’s most important
raw materials. Our engines, machines and
vehicles can be found at mining and construction
sites and in the middle of forests.
IN THE CITY
Our products are part of the daily
life. They take people to work,
distribute goods and collect
garbage. We are developing to-
morrow’s public transport solutions.
AT SEA
Our products and services are with
you, regardless of whether you are
at work on a ship or on holiday in
your pleasure boat.
Like a circulatory system, our trucks, buses, engines, construction equipment and financial services are
involved in many of the functions that most of us rely on every day.
Volvo GroupVolvo Group
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Our vision To be the most desired and successful transport solution provider in the world
Volvo GroupVolvo Group
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Strong brands
Our brand portfolio consists of Volvo, Volvo Penta, UD, Terex Trucks, Renault Trucks, Prevost,
Nova Bus, Mack and Arquus.
We partner in alliances and joint ventures with the SDLG, Eicher and Dongfeng brands.
By offering products and services under different brands, we address many different customer
and market segments in mature as well as growth markets.
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Volvo GroupVolvo Group
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The only supplier who can offer a complete solution for trucks and machines
for every work step in the construction project
• One supplier for big part of required
products in construction project
• Global presence and support
• Quality products securing safety,
high reliability and productivity
Volvo – Complete Supplier for Sustainable Transport Solutions
Volvo GroupVolvo Group
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TCO
• Flexible financial solution
• Industry-leading fuel efficiency
• Productivity of equipment
• Productivity training for operators and drivers
One Supplier
• Trucks, machines and gensets available in product portfolio
• Supply of majority of required products in construction project
• Synergies in aftermarket - support for trucks, machines and gensets
Uptime
• Service and maintenance schedules
• Availibility of spare parts
• Remote monitoring and management of equipment
• Competence and components commonality
Volvo – Complete Supplier for Sustainable Transport Solutions
Volvo GroupVolvo Group
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The Volvo Group - A Global Company
North America
Net Sales 32 %
Employees 17%
Europe
Net Sales 38%
Asia
Net Sales 18%
South America
Net Sales 6%
OtherNet Sales 6%
Employees 55%
Employees 3%Employees 6%
Employees 19%
Total January - July 2019
Net Sales: 228 BSEK
Employees: 107,300
Volvo GroupVolvo Group
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Volvo Trucks
Volvo Trucks
is the second largest heavy-duty
truck brand in the world with trucks
sold and serviced in more than 140
countries and supported by over
2.300 dealerships and workshops.
Volvo Trucks offers a range of medium
and heavy duty trucks with more than
95% of the trucks over 16 tons. The
company also provides aftermarket
products and service as well as
specific offers.
Volvo Trucks has a production structure
based on global presence. About 95%
of the company’s production capacity
is located in Sweden, Belgium, Brazil
and the USA.
Volvo GroupVolvo Group
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Volvo Trucks International Sales Area
Active in 3 markets
1 JV company
2 private importers
INDIA HUB
26 SITES
Active in 6 markets
1 market company
3 private importers
12 owned sites
SOUTHERN
AFRICA
HUB
26 SITES
128 countries 70 active
markets
11 market companies
47 private importers
VTI
455 SITES
52 OWNED
Active in 40 markets
2 market companies
29 private importers
4 owned sites
MEENA
HUB
112 SITES
Active in 4 markets
1 market company
3 private importers
CHINA HUB
49 SITES
1 market company
3 owned sitesKOREA HUB
31 SITES
Active in 6 markets
1 market company
5 private importers
10 owned sites
AUSTRALIAN
HUB
102 SITES
Active in 10 markets
4 market companies
5 private importers
23 owned sites
SOUTH
EAST
ASIA HUB
109 SITES
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Volvo GroupVolvo Group
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Volvo Construction Equipment
Volvo CE
is the world’s leading manufacturer
of articulated haulers
and one of the world’s leading
manufacturers of wheel loaders,
excavators, road construction
machines and compact equipment.
Founded in 1832 in Eskilstuna, Sweden
Volvo Construction Equipment has
grown to become one of the leaders
in the development of products and
services for the construction,
extraction, waste processing,
forestry and materials handling
sectors.
Brands Volvo, SDLG (Lingong) and
Terex Trucks.
Volvo GroupVolvo Group
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Volvo Construction Equipment Sales Region EMEA
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Continental Europe
Africa, Turkey and
Middle East
EU North and Central Asian
countries
Presence in 55 countries
24 independent dealers
(14 represent SDLG)
Presence in 34 countries
3 owned dealers
31 independent dealers
Presence in 19 countries
3 owned dealers
15 independent dealers
Volvo GroupVolvo Group
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Volvo Penta
Volvo Penta is the world’s largest
producer of diesel engines for leisure
boats and a leading, independent
producer of industrial engines and
is associated with innovative and
performance-oriented products.
The company provides engines and
power systems for leisure and
commercial boats, as well as for
industrial applications such as power
generation and container trucks.
Penta has been a registered trademark
for almost 100 years and Volvo Penta
since 1935.
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Volvo GroupVolvo Group
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Volvo Financial Services
Volvo Financial Services offers
competitive financial solutions which
strengthen long term relationships with
Volvo Group customers and dealers.
As the number one provider of financial
solutions for Volvo Group product sales,
VFS delivers value to customers and
builds loyalty to the Group brands
through ease of doing business, speed
to market, and knowledge and
expertise of the industry. VFS conducts
customer financing in 44 countries
around the world.
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Volvo GroupVolvo Group
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• Project defined as biggest scale airport in
the world, aiming 200 M passengers per
year.
• Time plan for first stage 2014-2019
• 1 Mtons earthmoving per day.
• Working 24h/day with 3 shifts.
Project Details
• Reliability. (Manage overload)
• Uptime.
• Drivers.
• Parts availability.
Challenges
3 Airport Project
Volvo GroupVolvo Group
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Actions
• Product experts visited construction site before defining the tech. specification of Trucks
• VT was the only brand which could offer 3 months delivery for 10x4 tipper trucks from factory
mounting.
• 615 units tailor made VT in operation since 2014.
• Site workshop working 2 shift with 30 technicians.
• Parts availability secured by 95% with on site warehouse with auto refill system.
• Continues driver trainings provided.
Introduction to Volvo CE and Trucks Customer Finance
Istanbul, 9th October 2019
Volvo GroupVolvo Group
Volvo CE and Trucks - Customer Finance
• For the emerging markets in EMEA (Europe, Middle-East, and Africa) Customer
Financing is organized within Sales Regions in Volvo CE and Volvo Trucks
International.
• Our mission to support sales activities related to the financing needs of our
independent dealers and end customers, in markets where Volvo Financial
Services are not present.
• We structure the financing as a Supplier’s Credit with support from credit
insurance providers and financial institutions within our network, including both
international and regional banks.
• Volvo CE EMEA and VTC International arranged financing
of 700 Mn USD to dealers and customers in 2018.
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Volvo GroupVolvo Group
How does financing from Volvo CE/Trucks add value for customers?
• Through co-operation with EKN and our banks, Volvo can offer customers with financing to
attractive terms even in challenging markets
• Enhanced financial flexibility as a finance solution provided by Volvo is an alternative source of
financing, customer can keep established bank lines intact
• Security in the product being financed is enough for Volvo, no other securities required from
customer
• EKN is a stable partner and for the long-term, with a politically driven mission rather than short-
term profit maximization
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Volvo GroupVolvo Group
Supplier’s Credit from Volvo – key facts
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• Selling entity is either Volvo CE / Trucks or local independent dealer which offer deferred
payment terms to customer
• Repetitive business or specific project
• Credit tenor normally 3 to 5 years with quarterly amortizations
• Documented through a Sales Contracts and Bills of Exchange or Promissory notes
• Credit process include ordinary credit risk assessment and CSR/KYC
• No application fee charged
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Volvo GroupVolvo Group
Supplier Credit Deal Structure
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Local Dealer
Off-shore
Volvo
Local
market
Sales Contract
Equipment Title/Pledge
EKN
Buyer
Bank/SEK
Credit
Insurance
Discounting
Agreement
Payments
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Volvo GroupVolvo Group
Example of Supplier Credit Framework Offer to EPCs
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• Volvo CE and Trucks offered together a non-binding credit limit of 30 MEUR to a
European based EPC, valid for 6+6 months. Minimum drawdown of 5 MEUR.
• Buyer is the parent company in Europe and/or international subsidiary, subject to
satisfactory legal opinions, KYC and parent company guarantee.
• Making full use of the Swedish Export Credit System resulted in 100% financing +
cost competitive solution for customer:
o 85% of contract value paid over a 7 year amortizing supplier credit, backed by
EKN and funded by SEK.
o 15% down payment financed separately via SEK
• Solution can be replicated for Turkish contractors!
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Volvo GroupVolvo Group
• Volvo CE and Trucks have a long experience of providing attractive finance solutions to
customers, even in challenging markets.
• There is no application fee
• Contact your local Volvo dealer for more information
Summary
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