Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — Q1 2022 Earnings Presentation
28 slides from Volvo Ab Class A's earnings presentation, Apr 22, 2022
Slide 1: First Quarter 2022
votLuvoao FIRST QUARTER 2022 Martin Lundstedt, President and CEO Volvo Group First Quarter 2022 2022-04-22
Slide 2: Quarter highlights
Volvo Group Quarter highlights * Net sales increased to SEK 105.3 bn, an increase of 11% adjusted for UD Trucks divestment & FX + Adjusted operating income reached SEK 12.7 bn (11.8), corresponding to a margin of 12.0% (12.6) * Operating cash flow in the Industrial Operation amounted to SEK -5.4 bn
Slide 3: Volume development
votuLuvao Volvo Group Volume development TRUCK DELIVERIES MACHINE DELIVERIES. k units k units == 12 months 206 k units == 12 months 90 k units 9% +15% ie 7 z [ 3 6 48.5, a 20.2 20.8 Qi @2 Q3 Q4 Qt @2 Q3 @4 al Qi Q2 G8 Q4 Gt Q@2 G3 Q4 at 2020 2021 2022 2020 2021 2022 Deliveries restated for UD Trucks
Slide 4: Electrification progress
Volvo Group Electrification progress Volvo Group First Quarter 2022 votuLuvoao ORDER INTAKE, FULLY ELECTRIC VEHICLES == 12 months 2,118 units 729 308 140 Qt Q2 a3 Q4 at @2 @38 24 a 2020 2021 2022 DELIVERIES, FULLY ELECTRIC VEHICLES == 12 months 1,130 units 17 Ql Qa2 Q3 @4 Qt @2 @ 4 a 2020 2021 2022
Slide 5: Service sales development
Volvo Group Service sales development SERVICE SALES (incl. Financial Services) SEK bn == 12 months SEK 93.6 bn +18% +10% excl. FX l 25.3) 21.4 22.6 Qt @2 @3 Q4 Qt @2 Q3 4 al 2020 2021 2022 Service sales restated for UD Trucks divestment Volvo Group First Quarter 2022 votuLuvao YoY GROWTH % 10% 17% 2
Slide 6: Electric
i= ELECTRIC 2092-04-99 6
Slide 7: Trucks
votuLuvoao Trucks «Maersk in North America ordered 110 Volvo VNR electric ¢ Renault Trucks expands its electric offer up to 44 ton Renault Trucks T E-tech for regional distribution Volvo Group First Quarter 2022 2022-04-22
Slide 8: Trucks: Market environment
Volvo Group First Quarter 2022 Trucks Market environment votLuvoao NORTH AMERICA HD EUROPE HD 400 400 300 f\_.+ 300 = —— Ne coeos ? agonu - bo ° 200 ee fo 200 2021: 270° 400 2021: 277" — Forecast 2022: 300° Forecast 2022: 300” i) i) (0001 020304 0506 07 08091011 12131415 1617 1819202122 0001 0203040
Slide 9: Trucks: Restrictive order slotting to manage order book quality
votLuvoao Trucks: Restrictive order slotting to manage order book quality and cost inflation HD/MD: Quarterly Orders -45% and Deliveries +17% NORTH AMERICA we Orders «mmDeliveries Qi @2 Q@3 Q4 Qi @2 Q@3 Q4 Qi 2020 2021 2022 Orders -73% SOUTH AMERICA Deliveries +7% == Orders “Deliveries Qi Q@2 Q@3 Q4
Slide 10: Heavy-duty truck market shares
votLuvoao Trucks Heavy-duty truck market shares 52.2 NORTH AMERICA EUROPE (Eu29) YTD Mar YTD Mar 34.9 18.6 10.39.g 16.1 6.6 5.3 8.6 92 Volvo Mack Volvo Renault Volvo Renault Total market share Battery electric market share BRAZIL SOUTH AFRICA AUSTRALIA YTD Mar YTD Mar YTD Mar 25.9 20.9 213 17.8 lm 2
Slide 11: Construction Equipment
Slide 12: Construction Equipment
votuLuvoao Construction Equipment * Fully electric machines now also launched in Asia, with South Korea being first out with a compact excavator * Introduction of a new carbon reduction program supporting customers towards carbon-neutrality Volvo Group First Quarter 2022 2022-04-22 12
Slide 13: Construction Equipment: Market environment
250 200 Construction Equipment Market environment NORTH AMERICA ee Forecast 2022: +5% to +15% 01 0203 04 05 06 07 0809 10 11 12 13 14 15 16 17 18 192021 22 SOUTH AMERICA votLuvoao EUROPE 250 200 a y= 150 oeeo-- 100 50 7 Forecast 2022: 0% to +10% 01 02.03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
Slide 14: Construction Equipment: Restrictive order slotting
votLuvoao Construction Equipment: Restrictive order slotting to manage order book quality and cost inflation Quarterly Orders -42% and Deliveries -33% NORTH AMERICA mm Orders em Deliveries Qi @2 G8 G4 @t Q2 Q3 4 a 2020 2021 2022 Orders -65% Deliveries +3% SOUTH AMERICA === Orders «mm Deliveries Qi @
Slide 15: Buses
Buses * Orders in Q1 increased by 146% * Deliveries in Q1 decreased by 2% * Order of 566 buses for Santiago Volvo Group First Quarter 2022 votuLuvoao 2022-04-22 6
Slide 16: Volvo Penta
votuLuvao Volvo Penta * Orders decreased by 1% + Deliveries increased by 8% * Sea testing ongoing on the advanced hybrid solution on Hurtigruten Svalbard’s sightseeing vessel Volvo Group First Quarter 2022 2022-04-22 16
Slide 17: Financial services
Financial services * Consistent growth in new retail financing volumes * Continuous improvement in finance penetration across the business areas * Volvo Pay launched for Volvo Trucks customers in selected European markets Volvo Group First Quarter 2022 votuLuvoao NEW RETAIL FINANCING & PENETRATION R
Slide 18: First Quarter 2022 - CFO
votLuvoao FIRST QUARTER 2022 Tina Hultkvist, Executive Vice President Group Finance and CFO Volvo Group First Quarter 2022 2022-04-22
Slide 19: Net sales per market
votuLuvoao Volvo Group Net sales per market NET SALES 47. SEK bn Currency SEK +7.1 bn 55 3.3 == 1.2 - 105.3 = -2.6 Q12021 Europe North South Asia Africa and Q1 2022 America America Oceania Net sales restated for UD Trucks divestment Volvo Group First Quarter 2022 2022-04-22 19
Slide 20: Adjusted operating income contributors
votuLuvoao Volvo Group Adjusted operating income contributors ADJUSTED OPERATING INCOME SEK bn 07 ee -0.1 -0.8 Currency SEK #1.3 bn Q12021 Gross Cash R&D Net R&D Selling Income Cap,/Amo. Volvo Group First Quarter 2022 + Price realization + Vehicle and service volumes - Material costs - Freight costs
Slide 21: Cash flow and financial position in Industrial Operations
votuLuvoao Volvo Group Cash flow and financial position in Industrial Operations OPERATING CASH FLOW OPERATING CASH FLOW FINANCIAL POSITION SEK bn —= 12 months SEK 18.4 bn SEK bn (Excl. Pensions and lease liabilities) Working capital (-15.9 bn) SEK bn it 10,2 - : | = aug 74.8 57.8 59.5 ai a 44 54 Op
Slide 22: Trucks: Net sales and adjusted operating income
Trucks votuLuvoao Net sales and adjusted operating income NETSALES = —. 19 months SEK 242.1 bn SEK bn +31% (excl. FX 28%) f 69.6 52.4 52.9 al a2 a8 a4 a @2 a a a 2020 2021 2022 Net sales restated for UD Trucks divestment Volvo Group First Quarter 2022 ADJUSTED OPERATING INCOME SEK bn 87 78 + + Price
Slide 23: Construction Equipment: Net sales and adjusted operating income
votuLuvoao Construction Equipment Net sales and adjusted operating income NET SALES ADJUSTED OPERATING INCOME piety neha ha renh SEKbn = 12 months SEK 89.9 bn SEK bn SEK bn (margin) —= 12 months 12,5% 9% Currency SEK +0.3 bn (excl. FX -16%) 38 —_ 3.8 + + Price realization (15.4%) a + Servi . Service
Slide 24: Buses: Net sales and adjusted operating income
votuLuvoao Buses Net sales and adjusted operating income NET SALES ADJUSTED OPERATING INCOME ADJUSTED OPERATING INCOME SEKbn =~ 12 months SEK 14.3 bn SEKM SEK M (margin)* — 12 months 0.7% Currency SEK +49 M +28% 20 (excl. FX +20%) + Service volumes + Customer mix aly - Materials costs -15 a a SI OCS
Slide 25: Volvo Penta: Net sales and adjusted operating income
Volvo Penta votuLuvoao Net sales and adjusted operating income NET SALES SEKbn == 12 months SEK 15.2 bn 3.3 Q@i @2 a3 @4 a 2020 Volvo Group First Quarter 2022 (excl. FX +18%) Q@2 a3 @4 a ADJUSTED OPERATING INCOME SEKM 769 643 + Engine & service volume + Price realization - Material costs - Freight c
Slide 26: Financial Services: Credit portfolio and profitability
Financial Services Credit portfolio and profitability CREDIT PORTFOLIO & ROE* ea * ROE 12 months 18.7% 175 79 162 Qi a2 @3 @4 Qt @2 @3 @4 a 2020 2021 2022 Volvo Group First Quarter 2022 votuLuvoao ADJUSTED OPERATING INCOME SEKM + Portfolio growth 682 + Credit provisions Ny - Selling and admin 882 a
Slide 27: Net sales SEK 105.3 bn
* Net sales SEK 105.3 bn * Record truck deliveries for a Q1 * Adjusted operating margin 12.0% ROCE 25.3% (Industrial Operations) ¢ Volvo Group First Quarter 2022 2022-04-22
Slide 28: Volvo Group Capital Markets Day 2022
votLuvoaoe Volvo Group Capital Markets Day 2022 June 22 vv #VolvoGroupbCMD @VolvoGroup