CONSTRUCTION SUMMIT ISTANBUL - prod5.assets-cdn.ioConstruction Summit Istanbul 2019 09-10-2019 The...

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 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

09-10-2019


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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.


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Our vision To be the most desired and successful transport solution provider in the world


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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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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


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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



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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


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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.


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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 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.


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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)


3 owned dealers



3 owned dealers



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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 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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• 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


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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 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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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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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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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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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 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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