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Volvo Group presentationDriving prosperity through transport solutions

OUR MISSIONDriving prosperity throughtransport solutionsModern logistics is a prerequisitefor our economic welfare:transport helps combat poverty.Transport is not an end in itself,but rather a means allowing peopleto access what they need,economically and socially.Volvo GroupCompany presentation2 2019 Q1

OUR VISIONBe the most desiredand successful transportsolution provider in the worldWe are in a people business. We operatein a business-to-business market, where peoplemake the decisions. Trust and relations are asimportant as the total offer.By bringing together the best of everything fromthe offer to the relationship, we will become thecustomers’ preferred choice.Volvo GroupCompany presentation3 2019 Q1

OUR ASPIRATIONSHave leading customersatisfaction for all brandsin their segmentsVolvo GroupCompany presentation4 2019 Q1Be the mostadmired employerin our industryHave industryleading profitability

OUR VALUESCustomer successWe make our customers win.TrustWe trust each other.PassionWe have passion for what we do.ChangeWe change to stay ahead.PerformanceWe are profitable to shape our future.Volvo GroupCompany presentation5 2019 Q1

Volvo GroupWe are one of the world’s leading manufacturers of trucks, buses, construction equipment andmarine and industrial engines.We also provide complete solutions for financing and service.Volvo GroupCompany presentation6 2019 Q1

Volvo GroupWe employ almost 100.000 PEOPLE,have production facilities in 18 COUNTRIESand sell our products in more than 190 MARKETS.Volvo GroupCompany presentation7 2019 Q1

Number of employeesNorth America17.845Europe49.694Asia16.888South America5.228Volvo GroupCompany presentation8 2019 Q1Africa & Oceania2.474

What we doLike a circulatory system, our trucks, buses, engines, construction equipment and financial services areinvolved in many of the functions that most of us rely on every day.ON THE ROADOur products help ensure thatpeople have food on the table,can travel to their destination androads to drive on.IN THE CITYOur products are part of the dailylife. They take people to work,distribute goods and collectgarbage. We are developing tomorrow’s public transport solutions.AT THE SITEWe contribute to the extractionof some of the world’s most importantraw materials. Our engines, machines andvehicles can be found at mining and constructionsites and in the middle of forests.AT SEAOur products and services are withyou, regardless of whether you areat work on a ship or on holiday inyour pleasure boat.FIRST CLASS SERVICEIn addition to vehicles and machines, the Volvo Group’s offering includes services such as insurance, rentalservices, spare parts, preventive maintenance, service agreements, assistance services and IT services.Volvo GroupCompany presentation9 2019 Q1

Strong brandsOur 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 customerand market segments in mature as well as growth markets.Volvo GroupCompany presentation10 2019 Q1

Our organizationVolvo Group CEO& Group Executive BoardBUSINESSAREASRenaultTrucksMackTrucksGroup Trucks TechnologyTRUCKDIVISIONSGroup Trucks OperationsGroup Trucks PurchasingVolvo GroupCompany presentation11 2019 Q1Deputy CEOGroup ITGroup Human ResourcesGroup FinanceGroup CommunicationGroup Legal & ComplianceUD Trucks& sArquus

We comprise ten business areasVolvo TrucksVolvo BusesVolvo GroupCompany presentation12 2019 Q1UD Trucks& JVsRenault TrucksMack TrucksVolvoConstructionEquipmentVolvo PentaVolvo FinancialServicesVolvoAutonomousSolutionsArquus

Volvo TrucksVolvo Trucksis the second largest heavy-duty truckbrand in the world with trucks sold andserviced in more than 140 countries andsupported by over 2.300 dealershipsand workshops. Volvo Trucks offers arange of medium and heavy duty truckswith more than 95% of the trucks over16 tons. The company also providesaftermarket products and service aswell as specific offers.Volvo Trucks has a production structurebased on global presence. About 95%of the company’s production capacity islocated in Sweden, Belgium, Brazil andthe USA.Volvo GroupCompany presentation13 2019 Q1

UD Trucks & JVsUD Trucks & JVsoffers a range of medium and heavyduty trucks, and special vehicles.As one of the leading Japanesetruck brands, UD Trucks wasestablished in Japan in 1935.Today, UD Trucks & JVs conductssales and services in more than64 countries through a worldwidenetwork of over 233 dealers.UD Trucks & JVs is also responsiblefor the collaboration with theVolvo Group joint-venture partnersDongfeng Commercial Vehicles andVolvo Eicher Commercial Vehicles.Volvo GroupCompany presentation14 2019 Q1

Renault TrucksSince 1894, RenaultTrucks has offered all types ofcommercial vehicles, ranging from lighttrucks for urban distribution services tospecially designed and heavy trucks forlong-haul operations.Active in over 100 countries, RenaultTrucks builds and maintains closerelationships with customers and driversvia a dealership network comprisingover 1.500 service outlets. The designand assembly of Renault Trucksvehicles, as well as the production ofmost components, is carried out inFrance.Volvo GroupCompany presentation15 2019 Q1

Mack TrucksMack Trucks is oneof North America’slargest manufacturers of heavy-dutytrucks, engines and transmissions.Founded in 1900, Mack trucks are soldand serviced in more than 45 countriesworldwide. Every Mack truck built forthe North American market isassembled at its Mack Lehigh ValleyOperations facility in Macungie. Enginesand transmissions for the NorthAmerican market are built at itspowertrain facility in Hagerstown.Mack Trucks is recognized around theworld as “The American Truck You CanCount On”.Volvo GroupCompany presentation16 2019 Q1

Volvo Construction EquipmentVolvo CE is the world’s leadingmanufacturer of articulated haulersand one of the world’s leadingmanufacturers of wheel loaders,excavators, road constructionmachines and compact equipment.Founded in 1832 in Eskilstuna, SwedenVolvo Construction Equipment hasgrown to become one of the leadersin the development of products andservices for the construction, extraction,waste processing, forestry andmaterials handling sectors.Brands Volvo, SDLG (Lingong) andTerex Trucks.Volvo GroupCompany presentation17 2019 Q1

Volvo BusesVolvo Buses is a leader in thedevelopment of sustainable transportsolutions for public transport and is oneof the world’s largest manufacturers ofbuses, coaches and bus chassis.The product range includes city buses,intercity buses and coaches as well ascomplete transport systems, financialservices and services for vehicle andtraffic information. Volvo Buses hassales in 85 countries and a globalservice network, with more than 1.500dealerships and workshops. BrandsVolvo, Prevost, Nova Bus and UD Bus.Volvo GroupCompany presentation18 2019 Q1

Volvo PentaVolvo Penta is the world’s largestproducer of diesel engines for leisureboats and a leading, independentproducer of industrial engines andis associated with innovative andperformance-oriented products.The company provides engines andpower systems for leisure andcommercial boats, as well as forindustrial applications such as powergeneration and container trucks.Penta has been a registered trademarkfor almost 100 years and Volvo Pentasince 1935.Volvo GroupCompany presentation19 2019 Q1

Volvo Financial ServicesVolvo Financial Services offerscompetitive financial solutions whichstrengthen long term relationships withVolvo Group customers and dealers.As the number one provider of financialsolutions for Volvo Group product sales,VFS delivers value to customers andbuilds loyalty to the Group brandsthrough ease of doing business, speedto market, and knowledge and expertiseof the industry. VFS conducts customerfinancing in 44 countries around theworld.Volvo GroupCompany presentation20 2019 Q1

Volvo Autonomous SolutionsVolvo Autonomous Solutionsaccelerates the development,commercialization and sales ofautonomous transport solutions.This enables Volvo Group to offerthe best possible solutions tocustomers, as a complement totoday’s products and services.Volvo GroupCompany presentation21 2019 Q1

ArquusArquus manufactures vehiclesadapted for operations in internationalprojects to Governments andorganizations worldwide.Volvo GroupCompany presentation22 2019 Q1

Our Truck divisionsWe combine the best of two worlds: synergies by having global organizations for productdevelopment, manufacturing, and purchasing.This is organized in our three truck divisions:GROUP TRUCKS TECHNOLOGYVolvo GroupCompany presentation23 2019 Q1GROUP TRUCKS OPERATIONSGROUP TRUCKS PURCHASING

Group Trucks TechnologyOur organization forresearch and productdevelopment of completevehicles, powertrain,components and serviceoffering.Volvo GroupCompany presentation24 2019 Q1

Group Trucks OperationsOur organization for manufacturing of cabsand trucks for the Volvo, Renault Trucks, Mackand UD Trucks brands as well as productionof the Group’s engines and transmissions.Spare part supply to the Group’s customersand logistics operations.Volvo GroupCompany presentation25 2019 Q1

Group Trucks PurchasingOur organization for the purchase of automotiveproducts and parts including aftermarket, for alltruck brands in Volvo Group Trucks.The organization also covers the IndirectProducts & Services (IPS) Purchasing.Volvo GroupCompany presentation26 2019 Q1

PartnershipsIN CHINA:Dongfeng Commercial Vehicles (DFCV)together with Dongfeng Motor GroupCompany Ltd.Shangdong Lingong Construction MachineryCo Ltd (SDLG)IN INDIA:Volvo Eicher Commercial vehicles (VECV)together with Eicher Motors Ltd.Volvo GroupCompany presentation27 2019 Q1

Our historySince 1927, Volvo has developed from asmall local industry to one of the leadingsuppliers of commercial transportsolutions providing products such astrucks, buses, construction equipment,and drive systems for marine andindustrial applications.Volvo GroupCompany presentation28 2019 Q1

Our history192719591999200120042007-200820152018THE STARTVolvo is founded byAssar Gabrielssonand Gustaf Larson.The first car rolls offthe production linethis year, the firsttruck a year laterand the first buswas launched in1934.LIFE SAVERVolvo pioneered the3-point safety beltthat becomes aninternational lifesaver.NEW FOCUSVolvo Cars is soldto the Ford MotorCompany. A newGroup, focusing onthe commercialautomotive industry,was created.AUTOMATEDTRANSMISSIONThe Volvo Groupacquired RenaultTrucks and MackTrucks.Volvo Truckslaunches arevolutionary newautomatedtransmission, IShift, which was ahuge success. Itcalculates severalparameters todetermine the bestshift option.BETTEREFFICIENCYVolvo Penta IPS,InboardPerformanceSystem, isintroduced. IPSdelivering around35 % betterefficiency atcruising speed thaninboard shafts.ASIA IS GROWINGVolvo Groupacquires UD Trucksin Japan and VolvoCE also completedthe acquisition ofthe shares inLingong, a largeproducer ofconstructionequipment in China,SDLG.In India the Groupset up a jointventure, VECV, VECommercialVehicles Ltd, withthe company,Eicher Motors, inPithampur.ELECTRIFIEDBUSESTogether withpartners in differentsectors, VolvoBuses developbuses andinfrastructure, onthe way to anelectrified busnetwork inGothenburg.A partnershipagreement wassigned with theChinese ND ELECTRICThe Volvo Groupcontinues itsfar-reaching driveto develop nextgeneration transportsolutions. The latestexample is Vera, asystem in whichautonomous electricvehicles arecoordinated toensure as efficient,and safe goodstransport aspossible.Volvo GroupCompany presentation29 2019 Q1