Volvo AB

STO:VOLV B

Earnings Call Transcript 2021-Q4

[Martin Lundstedt]

2021 was a year full of challenges, but thanks to great execution by the entire organization, we delivered continued good profitability while at the same time, taking several important steps in our efforts to lead the transition to a climate-neutral transport system. For the full year, our net sales increased to SEK 372 billion and adjusted operating income to SEK 41 billion, with a margin of 11%. And this could not have been achieved without the dedicated work of all colleagues in the group and business partners in the supply chain, but also thanks to great cooperation with our customers. And I would, therefore, like to take the opportunity to thank everyone for your fantastic efforts in a challenging year. Activity levels among our customers, all at high levels in most markets. The strong demand also means that we will continue to have an unstable situation in the supply chain going forward. But we have shown that we can handle this, thanks to great teamwork. And despite all of the challenges, we finished the year with a good result also in quarter 4. And last year, we continued to invest in R&D. We invested SEK 18 billion, and we have decided to continue to increase our R&D efforts significantly also this year. We have a wide range of electric vehicles and machines already in the markets, we have good market shares, and we see strong interest from our customers. Together, we are in a unique position to lead the transformation of our industry towards a more sustainable future. Looking forward to a challenging, but more importantly, an exciting 2022.