Volvo Ab Class A · OMXSTO:VOLV_A

Volvo Ab Class A — AB Volvo — Q4 2024 Earnings Presentation

29 slides from Volvo Ab Class A's earnings presentation, Jan 29, 2025

  1. Slide 1: Fourth Quarter 2024

    voLuvoe FOURTH QUARTER 2024 Martin Lundstedt President and CEO Volvo Group Fourth quarter 2024 2025-01-29

  2. Slide 2: Fourth quarter highlights

    VOLVO GROUP votLuveaod Fourth quarter highlights + Net sales amounted to SEK 138.4 bn (148.0) with SEK -1.1 bn impact from FX * Adjusted operating income reached SEK 14.0 bn (18.5), corresponding to a margin of 10.1% (12.4) * Operating cash flow in Industrial Operations amounted to SEK 24.3 bn (22.7

  3. Slide 3: Volume development

    VOLVO GROUP votLuveaod Volume development Volvo Group Fourth quarter 2024 TRUCK DELIVERIES == 12 months 219' units 1% 6 (isfy 5.6 58.7 Q4 Qi @2 Q@3 Q4 Qi Q@2 @3 Q4 2022 2023 2024 MACHINE DELIVERIES —— 12 months 56' units 20.9 -5% 15.4 14.6 a4 Q1 Q@2 Q@3 Q4 QI Q@2 @3 4 2022 2023 2024 2025-01-29

  4. Slide 4: Electrification progress

    VOLVO GROUP votLuveaod Electrification progress Volvo Group Fourth quarter 2024 ORDER INTAKE, FULLY ELECTRIC VEHICLES == 12 months 6,244 units +62% 2,253 1,391 Q4 Qi Q2 @3 Q4 Qt @2 G3 a4 2022 2023 2024 DELIVERIES, FULLY ELECTRIC VEHICLES =< 12 months 6,443 units +11% 1,934 1,741 886 Q4 QI Q@2 Q@3 G4

  5. Slide 5: 400. 200. 000. 800. 0 250 600. 000 200 150 400. 000 100 200.

    1 400. 000 500 450 1 200. 000 400 1 000. 000 350 300 800. 000 250 600. 000 200 150 400. 000 100 200. 000 50 0. 000 0

  6. Slide 6: 350. 300. 250. 200. . 000 50 100. 000 30 50. 000 10 0.

    350. 000 15 0 13 0 300. 000 11 0 250. 000 90 200. 000 70 150. 000 50 100. 000 30 50. 000 10 0. 000 -10

  7. Slide 7: Capital Markets Day and Daimler Truck joint venture

    • Volvo Group Capital Markets Day was held in Virginia in November - Gearing up for growth • Volvo Group and Daimler Truck have signed a binding agreement to establish a joint venture to develop a software-defined vehicle platform

  8. Slide 8: Trucks news

    votLuveaod Trucks news * Volvo Autonomous Solutions started autonomous operations for DHL in Texas * Volvo Trucks and Renault Trucks awarded first, second and third position in Euro NCAP safety ranking Volvo Group Fourth quarter 2024 2025-01-29 8

  9. Slide 9: Trucks market environment

    votLuveaod TRUCKS Market environment NORTH AMERICA HD EUROPE HD 400 400 300 300 — 200 = 200 100 2024: 304’ 700 2024: 313° ° Forecast 2025: 300’ ° Forecast 2025: 290° 03 05 07 09 11 13 15 17 #19 21 23 25 03 05 O7 09 11 13 15 17 19 21 23 25 BRAZIL HD INDIA HD+MD CHINA HD+MD 150 450 4,800 1,350 400 300

  10. Slide 10: Trucks book to bill

    TRUCKS — MEDIUM- AND HEAVY-DUTY Book to bill votLuveaod Medium- and heavy-duty trucks book to bill 106%in the quarter and 93%12 months rolling NORTH AMERICA EUROPE \ 124 102 ~ ~7 95 === Book to Bill, % —— Baseline, 100% Q4 Qi Q2 Q3 Q4 ai a2 Q3 a4 Q4 Qi Q2 a3 Q4 Qi a2 Q3 a4 = © 800k to Bill 12M, % 20

  11. Slide 11: Includes content supplied by IHS Markit . Copyright © IHS Markit (2022). All rights

    Includes content supplied by IHS Markit . Copyright © IHS Markit (2022). All rights reserved.

  12. Slide 12: Volvo Construction Equipment product portfolio overhaul

    • In Q4, Volvo Construction Equipment continued its largest product portfolio overhaul in decades, including new excavators in Europe and Asia. • In January, an updated range of the industry-leading articulated haulers was launched, including one completely new model, the A50.

  13. Slide 13: Construction Equipment market environment

    CONSTRUCTION EQUIPMENT votLuveaod Market environment NORTH AMERICA EUROPE . 200 200 3 150 “> 150 \ 100 f-o=o = 400 ¢ ~ 50 50 2024 YTD Nov: -8% 2024 YTD Nov: -25% ry ° Forecast 2025: -10% to 0% ° Forecast 2025: -5% to +5% 03 05 07 09 1 13 15 17 19 21 23 25 03 05 07 09 1 13 15 17 19 21 23 25 SOUTH AME

  14. Slide 14: Construction Equipment book to bill

    CONSTRUCTION EQUIPMENT Book to bill Construction equipment book to bill 105% in the quarter and 95% 12 months rolling votLuveaod NORTH AMERICA Q4 Q1 Q2 Q3 Q4 QI Q2 Q3 a4 2022 2023 2024 EUROPE Q4 Q1 Q2 Q3 Q4 QI Q2 Q3 a4 2022 2023 2024 ), 3 \ a = Book to Bill, % —— Baseline, 100% = © Book to Bill 12M,

  15. Slide 15: Volvo Buses electric bus order

    • In Q4, Volvo Buses received order for 46 electric buses from Transdev in the Netherlands • Book to bill 76% in the quarter and 84% 12 months rolling

  16. Slide 16: Volvo Penta Assisted Docking and book to bill

    • Volvo Penta revealed the expansion of its Assisted Docking system to boats with DPI drives • Data centers driving demand for power generation gensets • Book to bill 136% in the quarter and 94% 12 months rolling

  17. Slide 17: Financial Services

    votLuveaod Financial Services * Continued portfolio growth * Penetration levels trending upwards * Solid portfolio performance and good earnings Volvo Group Fourth quarter 2024 NEW RETAIL FINANCING & PENETRATION RATE* SEK bn == Penetration rate 12 months 29% 34.5 35.6 30.8 | _ || Q4 Qi @2 @3 @4 Qi Q

  18. Slide 18: Fourth quarter 2024 - Mats Backman, CFO

    FOURTH QUARTER 2024 Mats Backman EVP and CFO

  19. Slide 19: Net sales per market

    VOLVO GROUP votLuveaod Net sales per market Volvo Group Fourth quarter 2024 NET SALES SEK bn 148.0 “wm 8 138.4 -9.6 14 Q4 2023 Europe North South Asia America America Africa Q42024 FX and excl FX Oceania Q4 2024 2025-01-29 19

  20. Slide 20: Adjusted operating income contributors

    votLuveaod VOLVO GROUP Adjusted operating income contributors ADJUSTED OPERATING INCOME SEK bn 18.5 ay + Service price realization - 03 144 14.0 + Material cost 3.4 Mm__°? “1.4 -0.1 -0.0 -0.0 Volume Brand & product mix R&D expenses \ Q4 Gross Cash NetR&DSelling Admin Other Q4 FX a4 2023 Income R&D C

  21. Slide 21: Cash flow, net financial position and ROCE

    VOLVO GROUP votLuveaod Cash flow, net financial position and ROCE in Industrial Operations OPERATING CASH FLOW SEK bn == 12 months SEK 45.3 bn Volvo Group Fourth quarter 2024 ROCE % 12 months 36.7% 35.8% 27.4% Q4 Qi Q2 Q3 Q4 Qt Q2 a3 a4 2022 2023 2024 NET FINANCIAL POSITION (Excl. pensions and lease

  22. Slide 22: Trucks net sales and adjusted operating income

    Trucks votLuveaod Net sales and adjusted operating income NETSALES = ==12 months SEK 361 bn SEK bn A% (excl. x -4%) 99.9 5.5 87.3 a4 ai a2 a3 a4 a a2 a3 a4 2022 2023 2024 Volvo Group Fourth quarter 2024 ADJUSTED OPERATING INCOME SEK bn + Service price realization ~ + Material cost 13.7 + JV performa

  23. Slide 23: Construction Equipment net sales and adjusted operating income

    votLuveaod Construction Equipment Net sales and adjusted operating income NETSALES == 12 months SEK 88 bn SEK bn 16% (excl. FX -17%) 27.6 26.6 22.2 Q4 Qi Q2 Q3 Q4 Qi Q2 Q3 Q4 2022 2023 2024 Volvo Group Fourth quarter 2024 ADJUSTED OPERATING INCOME SEK bn 3.3 ~ + R&D expenses 2.6 - Brand & product mi

  24. Slide 24: Buses net sales and adjusted operating income

    Buses votLuveaod Net sales and adjusted operating income NETSALES = —=12 months SEK 25 bn SEK bn -10% (excl. FX-10%) h , { \ 7.3 67 6.6 Q4 Qi Q2 Q@3 @4 at a2 a3 a4 2022 2023 2024 All numbers restated to exclude Nova Bus which is now included in segment ‘Group Functions and other’ Volvo Group Fourth

  25. Slide 25: Volvo Penta net sales and adjusted operating income

    Volvo Penta votLuveaod Net sales and adjusted operating income NETSALES === 12 months SEK 20 bn SEK bn 5% (excl. x -5%) 5.0 4.8 48 Q4 Qt Q@2 @3 Q4 Qi Q2 @3 Q4 2022 2023 2024 Volvo Group Fourth quarter 2024 ADJUSTED OPERATING INCOME SEKM 583 ~ + Product & market mix + Price realization 365 NP - Volum

  26. Slide 26: Financial Services credit portfolio and profitability

    votLuveaod Financial Services Credit portfolio and profitability CREDIT PORTFOLIO & ROE* ADJUSTED OPERATING INCOME* SEK bn == ROE 12 months 13.0% SEKM 280 254 215 1,005 ~ + Portfolio growth - Credit provisions - Operating expenses 1012 Q4 Qi Q2 Q@3 Q4 ai a2 a3 a4 a4 2022 2023 2024 2023 Volvo Group F

  27. Slide 27: Full year 2024 highlights

    votLuveaod Volvo Group Full year 2024 highlights * Net sales amounted to SEK 527 bn (552) — Vehicle sales decline -5% FX adjusted — Service sales growth +4% FX adjusted * Gross income margin 27.3% (27.0) * Adj. operating income amounted to SEK 66 bn (78) Reported operating income amounted to SEK 67

  28. Slide 28: i = = =x = =x

    i = = =x = =x Volvo Group Fourth quarter 2024

  29. Slide 29: voLvwv o

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AB Volvo — Q4 2024 Earnings Presentation on 6ix