Targets to secure improved Group profitability

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The targets for the strategy period 2013–2015 was announced in autumn 2012. The overall target is that the strategy shall contribute to an improvement of the operating income of SEK 9 billion, corresponding to an operating margin improvement of 3 percentage points for the Group as a whole. The calculation below is based on Group sales of SEK 300 billion and truck sales of SEK 200 billion. The truck operation has the greatest impact on profitability.

Strategic objectives EXPECTED IMPACT ON GROUP OPERATING MARGIN
Trucks' impact on Group + app. 4.0 percentage points
Business Areas:
Volvo CE, Volvo Buses, Volvo Penta, Governmental Sales, Volvo Financial Services
+ app. 0.5 percentage points
IT cost at 2% of total Group costs + app. 0.5 percentage points
= app. 5.0 percentage points
- app. 2.0 percentage points in headwind factor
Targeted net improvement = app. 3 percentage points
3
percentage points