Volvo Ab Class A · OMXSTO:VOLV_A

Volvo Ab Class A — AB Volvo — Q2 2004 Earnings Presentation

23 slides from Volvo Ab Class A's earnings presentation, Jul 21, 2004

1. Slide 1: Second Quarter 2004 Press Conference

   Second Quarter 2004 Press Conference, July 21, 2004

2. Slide 2: Highlights

   Press Conference Q2 2004 1 Highlights Second Quarter In Focus Going Forward z Good business environment in all markets z Henlys Group z Upturn management z Continued sales growth +19% z Continued focus on z Strong improvement in operating income capital management in all Business Areas: z Repurchase

3. Slide 3: Net sales, Operating income, Earnings per share

   Press Conference Q2 2004 2 Net sales (SEK bn) Europe North 58% America Asia 25% 10% Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 South 44.6 40.5 48.7 45.5 53.0 America Rest of 172.9 171.9 174.8 179.3 187.8 3% the world 4% Quarter 12 months rolling Operating income* Earnings per share (SEK M) (SEK) Q2 03 Q3 03 Q4 0

4. Slide 4: Development of cash conversion cycle

   Press Conference Q2 2004 3 Volvo Group Development of cash conversion cycle SEK bn Days 40 90 80 Working capital 35 80 CCC - days 70 30 60 25 50 20 49 40 15 34 30 10 20 5 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2001 2002 2003 2004 AB Volvo 04-07-21

5. Slide 5: Trucks

   Press Conference Q2 2004 4 Trucks Second Quarter Net sales Operating income (SEK bn) (SEK M) Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 29.4 26.9 33.2 31.2 34.9 1023 944 1457 1476 2287 116.4 114.9 117.0 120.8 126.3 3.5% 3.5% 4.4% 4.7% 6.6% 2730 3001 3951 4900 6164 Quarter 12 months

6. Slide 6: Heavy Duty Truck Market – Europe

   Press Conference Q2 2004 5 Heavy Duty Truck Market Europe 25 Units, Thousands (heavy trucks) 300 256 Forecast: 250 250 230 246 200 188 214 171 150 170 122 100 116 50 Western Europe Europe 25 Forecast 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04E AB Volvo 04-07-21

7. Slide 7: Heavy Duty Truck Market – North America

   Press Conference Q2 2004 6 Heavy Duty Truck Market North America Units, Thousands (heavy trucks) 309 300 Forecast: 250 236 230-240 200 174 199 179 150 170 134 122 100 50 Forecast 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04E AB Volvo 04-07-21

8. Slide 8: Renault Trucks

   Press Conference Q2 2004 7 Renault Trucks New Renault Mascott AB Volvo 04-07-21

9. Slide 9: Mack

   Press Conference Q2 2004 8 Mack New chassis – AdvantageTM Mack Vision 60 Midrise Tanker Mack Vision 60 Midrise Van AB Volvo 04-07-21

10. Slide 10: Volvo Trucks

    Press Conference Q2 2004 9 Volvo Trucks All-time-high deliveries AB Volvo 04-07-21

11. Slide 11: Volvo Buses

    Press Conference Q2 2004 10 Volvo Buses Second Quarter Net sales Operating income* (SEK bn) (SEK M) Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 -89 -93 -96 -47 91 3.1 2.8 3.1 2.5 3.6 -2.9% -3.3% -3.1% -1.8% 2.5% 12.8 12.7 12.0 11.6 12.1 -223 -232 -361 -325 -145 Quarter 12 months roll

12. Slide 12: Volvo Buses

    Press Conference Q2 2004 11 Volvo Buses 150 Volvo 7700 sold to Budapest AB Volvo 04-07-21

13. Slide 13: Volvo Construction Equipment

    Press Conference Q2 2004 12 Volvo Construction Equipment Second Quarter Net sales Operating income (SEK bn) (SEK M) Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 6.3 5.6 6.5 6.1 8.1 425 210 133 309 648 21.4 21.9 23.2 24.5 26.4 6.8% 3.7% 2.0% 5.0% 8.0% 638 728 908 1077 1300 Quarter 12 m

14. Slide 14: Volvo Construction Equipment

    Press Conference Q2 2004 13 Volvo Construction Equipment Competitive products with Volvo engines AB Volvo 04-07-21

15. Slide 15: Volvo Penta

    Press Conference Q2 2004 14 Volvo Penta Second Quarter Net sales Operating income (SEK bn) (SEK M) Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 212 153 171 188 307 2.0 1.8 1.9 2.2 2.6 10.4% 8.5% 9.2% 8.6% 11.9% 7.4 7.5 7.6 7.9 8.4 647 683 695 724 819 Quarter 12 months rolling Quarter

16. Slide 16: Volvo Penta

    Press Conference Q2 2004 15 Volvo Penta New marine engine range D9-500/575 D6-350 D4-260 AB Volvo 04-07-21

17. Slide 17: Volvo Aero

    Press Conference Q2 2004 16 Volvo Aero Air traffic at all-time-high AB Volvo 04-07-21

18. Slide 18: Volvo Aero

    Press Conference Q2 2004 17 Volvo Aero Second Quarter Net sales Operating income (SEK bn) (SEK M) Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 1.9 1.8 2.1 1.6 1.9 11 -2 -47 101 173 8.1 8.0 8.0 7.3 7.4 0.6% -0.1% -2.2% 6.5% 9.2% -108 -38 -44 63 225 Quarter 12 months rolling Quarter Mar

19. Slide 19: Volvo Financial Services

    Press Conference Q2 2004 18 Volvo Financial Services Second Quarter New retail financing Operating income and return on equity (SEK bn) (SEK M) Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 6.1 6.9 8.0 6.0 8.2 221 242 251 281 307 25.7 26.1 26.9 27.0 29.1 6.6% 9.0% 9.8% 10.2% 10.4% Quar

20. Slide 20: Volvo Financial Services

    Press Conference Q2 2004 19 Volvo Financial Services Second Quarter - isolated New financing Penetration on new financing 17% 8% 50% 20% Volvo Renault Volvo Mack Volvo CE Trucks Trucks Buses 5% 27% 17% 12% 35% 18% AB Volvo 04-07-21

21. Slide 21: Summary

    Press Conference Q2 2004 20 Volvo Group Summary z Efficiency, new products and scale pays off z Improved cash flow z Strong EPS development z Good business environment in all markets z Upturn management AB Volvo 04-07-21

22. Slide 22: Press Conference Q2 2004

    Press Conference Q2 2004 21 AB Volvo 04-07-21

23. Slide 23: Press Conference Q2 2004

    Press Conference Q2 2004 22 AB Volvo 04-07-21

AB Volvo — Q2 2004 Earnings Presentation on 6ix