Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — Investor Day (November 2024)
89 slides from Volvo Ab Class A's investor day presentation, Nov 14, 2024
Slide 1: Capital Markets Day 2024
Capital Markets Day 2024 2024-11-14
Slide 2: Gearing up for growth
- Gearing up for growth — by delivering continuous solid performance — by accelerating growth through transformation — by evolving our performance culture cn TS votuLuvaod
Slide 3: Driving prosperity through transport and infrastructure solutions
Driving prosperity through transport - .. and infrastructure solutions Volvo Group Capital Markets Day 2024 2024-11-14 3
Slide 4: Road freight volumes expected to grow ~5 times 2010 to 2050
voLuvoe Road freight volumes expected to grow ~5 times 2010 to 2050 Freight volume in bn tonne km 256,433 2010 2050 (Forecast) +384% | aed 30,945 19,126 +482% 6,388 Sea freight Road freight Air freight Rail freight Volvo Group Source: Statista Capital Markets Day 2024 2024-11-14
Slide 5: Advanced logistics systems drive prosperity and GDP per capita
voLuvoe Advanced logistics systems drive prosperity and GDP per capita Logisitic Costs (Share or GDP) % Volvo Group Capital Markets Day 2024 355 Perue 30-4 P Indonesia . Augen e Brazil 25+ eVietnam ° . © Colombia 20-4 | .©~~_ ® Mexico Thailand 5 ~~~. e Chile China Ss5. 15 — India Teel ° nih @ Malays
Slide 6: Robust energy mix Energy transition
Robust energy mix Energy transition
Slide 7: EV adoption
EV adoption Total Distribution Waste Regional Long Haul Construction
Slide 8: Dynamical forces behind the speed of transformation
votuLuvad Dynamical forces behind the speed of transformation CURRENT TRANSPORT FUTURE TRANSPORT AND INFRASTRUCTURE AND INFRASTRUCTURE SOLUTIONS SOLUTIONS Volvo Group Capital Markets Day 2024 2024-11-14
Slide 9: Regulatory frameworks need to balance demand and supply
voLuvoe The regulatory frameworks need to balance between demand and supply for the transition to accelerate ORDER INTAKE, FULLY ELECTRIC VEHICLES | CO, REDUCTION REGULATIONS 100% EU27 CO, HD vehicle regulation ily (@. 1,578 1,225 i So Le 2022 Q3 2023 Q3 2024 Q3 2019 2025 2030 2035 2040 Average new
Slide 10: Electromobility adoption rate
Electromobility Product and Total cost of Infrastructure Fossil-free Supply Customer adoption rate services offering ownership incl. energy network competitiveness incentives, and peace of mind regulation and carbon targets and pricing
Slide 11: Total cost of ownership incl. incentives, regulation and carbon
Total cost of ownership incl. incentives, regulation and carbon targets and pricing
Slide 12: The industry is on a journey to learn the new economics in ZEV
voLuvoe The industry is on a journey to learn the new economics in ZEV Today’s economics are Tomorrow’s economics well known and stable will be different OEM P&L Customer P&L OEM P&L Customer P&L Over time, a balance between P&Ls of OEM’s, customers and other players in the value chain is reached Vo
Slide 13: Gartner change curve versus solar panel installations
votuLuvad Gartner change curve on common transformation cycles versus the example of solar panel installations (i - Enthusiasm Installations exceed Ukraine war speeds up forecast: governments renewable growth as buyers cut costly subsidies look to cut reliance on Russia Feed-in tariffs and strong co
Slide 14: Forecasts consistently underestimate the speed of renewables' development
voLuvoe Forecasts consistently underestimate the speed of renewables’ development Global solar electrical capacity (in gigawatts) 10,000 / 1 Potential 2023 forecast ! development 8,000 I 6,000 4,000 ‘Actual 2023 deployment 2020 forecast about 3 times greater than 2015 forecast 2,000 2015 forecast 0
Slide 15: Companies taking action towards science-based targets
voLuvoe Companies taking action towards 9,530 science-based targets Volve Group 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Capital Markets Day 2024 2024-11-14 15
Slide 16: Key to decarbonization is to address Scope 3 emissions
votuLuvad Key to decarbonization is to address Scope 3 emissions Scope 3 represents ~87% of emissions among of Alliance of CEO Climate Leaders companies Alliance emissions: 20% (1.1 gigaton) 1 3% (0.7 gigaton) INDIRECT UPSTREAM DIRECT Volvo Group Capital Markets Day 2024 Fuel and energy related acti
Slide 17: Challenges and action areas to reduce scope 3 emissions
voLuvoe Challenges and action areas to reduce scope 3 emissions Five key challenges on Scope 3 downstream decarbonization Four key action areas 5 Volvo Group Capital Markets Day 2024 Energy mix dependence Control over downstream emissions Consumer/customer engagement and education Lack of standardiz
Slide 18: Low investment to decarbonize logistics
votuLuvad Low investment to decarbonize logistics Example: Automotive OEM, CO, scope 1-3 Cost or saving to remove CO, First abatement wave .. Which fund the next enables savings... abatement wave > Cost > 100% CO, Saving Source: IEA, BNEF, IRENA, BCG Volvo Group Capital Markets Day 2024 2024-11-14 1
Slide 19: EV adoption
EV adoption Total Distribution Waste Regional Long Haul Construction
Slide 20: Uncertainty in speed of transformation requires flexibility
voLuvoe Uncertainty in speed of transformation requires flexibility both on macro and micro level Vehicles Total Current + Flexibility * Agility + Maneuverability * Flexibility * Agility + Maneuverability Volvo Group Capital Markets Day 2024 Time 2024-11-14 20
Slide 21: Driving prosperity through transport and infrastructure solutions
Driving prosperity through transport - .. and infrastructure solutions Volvo Group Capital Markets Day 2024 2024-11-14 21
Slide 22: Long term ambition
LONG TERM AMBITION 0) Safe 0 Fossil free FS More productive
Slide 23: votLuvoe
votLuvoe Volvo Group Capital Markets Day 2024
Slide 24: Strategic direction: Winning today and tomorrow
votuLuvad Strategic direction: Winning today and tomorrow Volvo Group Capital Markets Day 2024 2024-11-14 24
Slide 25: Our strategic direction is in sync with our financial ambitions
votuLuvad Our strategic direction is in sync with our financial ambitions Strategic Strong positions direction in key markets with regional value chains Synergies across the Group through CAST Leadership in the transformation Value ereatiten Service business through Group rowth portfolio mgmt. 9 Con
Slide 26: Total return to shareholders since Jan 1, 2014
Volvo MSCI Index 600 Total return to shareholders, 500 including gross dividends, 400 since Jan 1, 2014: • Volvo Group: 448% 300 • MSCI World Machinery 200 Index: 321% 100 0 -100 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Slide 27: Empowered decisions closest to the customer
• Those closest to the customer are empowered to make the right decisions • Clear leadership and P&L responsibility for each brand and owners’ mentality • Leveraging partnerships to drive innovation • Driving simplicity and speed • A mindset of continuous improvements • Unleashing our full human pot
Slide 28: Our strategy is clear
vouvo EE hia lg GR erie j age eae Our strategy is clear } Bd fie 7 ‘bs We will continue to win in ICE, BEV and FCEV — regardless of the pace of transformation ... ... with the strongest product and solution lineup ever Volvo Group Capital Markets Day 2024
Slide 29: Volvo CE continues to invest with its biggest launch ever
votLuvad Volvo CE continues to invest with its biggest launch ever! + Launch of 80 newand = + Anewrange of excavators, * Both conventional + With the new range of updated machines, articulated haulers, rigid and electric vehicles articulated haulers Volvo CE along with new services __ haulers for re
Slide 30: votuLuvad
votuLuvad gown, 2024-11-14" SO ge
Slide 31: Volvo CE moving up the ladder on sustainably powered machines
LARGE >300KW Yo SAY © Volvo CE moving up the ladder on MEDIUM sustainably powered machines ree With additional electric machines Volvo CE continue to : move up the ladder on sustainably powered machines with more products, in more segments, to new and existing customers. Leveraging Group technologie
Slide 32: Volvo CE focused strategy yields through cycle resilience
voLuvoe Volvo Construction Equipment focused strategy on GPE machines and service growth yields through cycle resilience Adjusted operating income* * Strong performance through SEK bn Margin the business cycle 20 * A focused strategy consisting 4.5% 16% of a global brand, product, ig and market mix
Slide 33: Expanding services and solutions business
voLuvoe Expanding services and solutions business to come closer to customers and build earnings resilience WHY SERVICES? GOOD TRACTION IN OUR SERVICES AND SOLUTIONS DEVELOPMENT re Strengthened customer loyalty & uptime NET SALES SEK bi Improved customer in 22 1.3 ; 0.2 15.9 performance * Net sales
Slide 34: Strengthening North American market position through dealer consolidation
voLuvoe Strengthening North American market position through strategic dealer network consolidation DEALER NETWORK CONSOLIDATION BRAND RECOGNITION in 2017, considered Volvo CE 3% as a brand to purchase Market share increase Transitioned territory 2017-2024 on average * 18 transferred dealers since 2
Slide 35: Volvo CE is driving growth from a position of strength
votL.vad Volvo Construction Equipment is driving growth from a position of strength Biggest launch ever to Leverage partnerships and Accelerate service growth, Strengthen market drive growth and market Group technologies to customer productivity and position through retail share worldwide accelerate
Slide 36: A range made for growth
votLuvaod A RANGE MADE FOR GROWTH Volvo Group Capital Markets Day 2024 2024-11-14 36
Slide 37: A new level of fuel efficiency, safety, sustainability
A NEW LEVEL OF Fuel efficiency Safety Sustainability Productivity Driver comfort
Slide 38: Fuel reductions, safety, uptime and driver comfort
votLuvaod * Fuel reductions of 10% * Superior safety, uptime and driver comfort — Volvo Group Capital Markets Day 2024
Slide 39: Most fuel-efficient truck ever
~. INe * Most fuelbefficient truck ever ‘e. —— * Camera Monitor System (CMS)——= Lan’ —— 9 Hlechric, gas-pow \ | . g ya Z “A Capital Markets Day 2024 2024-11-14
Slide 40: Volvo FH16
VOLVO FHIG. * The most powerful truck in the industry * 780 horsepowers * 3800 Nm torque i" Volvo Group Capital Markets Day 2024 ‘ WT \\\N 7
Slide 41: Volvo FM Low Entry
VOLVO FM LOW.ENTA + All-electric for all city segments * Excellent driver comfort, safety and visibility Volvo Group Capital Markets Day 2024
Slide 42: votLuvaod
votLuvaod Volvo Group Capital Markets Day 2024 2024-11-14 42
Slide 43: 2409YTD 2409YTD 2409YTD
17.6 15.4 9.7 10.8 2019 2409YTD 2019 2409YTD 17.6 18.8 22.5 23.2 2019 2409YTD 2019 2409YTD
Slide 44: Capturing the growth prospects of the transformation
voLuvo Capturing the growth prospects of the transformation Leveraging our electric leadership Our growth potential: * 4,600 trucks in 49 countries * 8 electric models in + More segments targeted with 600 km range * +120 million km in series production * Higher truck value and larger share of servic
Slide 45: Truck model specification and total offer
Truck Specification Features Total Parts Workshop Digital Uptime Total Financing Insurance Total model truck price Services truck price truck price + Service Contract + Service Contract + Financing
Slide 46: Index 2017 = 100
• +201% • +94% • • 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 (Index 2017 = 100)
Slide 47: Services net sales and service contract portfolio value
SERVICES NET SALES SERVICE CONTRACT PORTFOLIO VALUE • +118% +74% • 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 (Index 2017 = 100)
Slide 48: Capturing growth opportunities from a position of strength
voLuvoe Capturing growth opportunities from a position of strength ilo reuecr Maximizing the new product Capturing the growth of | Untapping the full Targeting further market range to grow market share and the transformation by potential of the growth with special total offer leveraging our leading
Slide 49: votLuvad
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Slide 50: Volvo Group Capital Markets Day 2024
folvo Group Capital Markets Day 2024 FEB 9 nti, 2024-11814) 0)
Slide 51: A regional value chain with a strong culture and leading customer satisfaction
SUPPLY CHAIN & COMMERCIAL AND PRODUCT PORTFOLIO MANUFACTURING DISTRIBUTION NETWORK SERVICE GROWTH New product range New factory in Mexico Strengthening and Driving service sales with • Leading fuel efficiency • Start of production 2026 expansion of dealer end-to-end growth plan and and feature posit
Slide 52: A regional value chain with a strong culture and leading customer satisfaction
SUPPLY CHAIN & COMMERCIAL AND PRODUCT PORTFOLIO MANUFACTURING DISTRIBUTION NETWORK SERVICE GROWTH New product range New factory in Mexico Strengthening and Driving service sales with • Leading fuel efficiency and • Start of production 2026 expansion of dealer end-to-end growth plan and feature posit
Slide 53: Capital Markets Day 2024
CAPITAL MARKETS DAY 2024 53 2024-
Slide 54: An American icon gearing up for the future
An American icon gearing up for the future THE FOUNDATION IS IN PLACE #1 Customer Strong dealer Expanded Increased Vocational Additional Satisfaction network product offer capacity solutions Business CAPITAL MARKETS DAY 2024 54
Slide 55: Driving growth in North America
Driving growth in North America INCREASING ADDRESSABLE MARKET AND TOTAL SOLUTIONS 24%* 3%* 73%* Core MACK segments: MAINTAIN LEADERSHIP POSITION Long & regional haul & medium duty: GROW FOCUS Truck Parts Uptime Digital Services Vocational Financing Insurance Mack Productivity Total Offer CUSTOMER SA
Slide 56: Additional Business Opportunities
Additional Business Opportunities IMPROVED PROFITABILITY & RESILIENCE Australia Defense Latin America Mexico CAPITAL MARKETS DAY 2024 56
Slide 57: Transport as a service and powertrain options
Transport Truck Internal Battery Fuel as a as a combustion electric cell Service Service engine
Slide 58: Volvo Autonomous Solutions has achieved critical milestones
vVvoLva Volvo Autonomous Solutions has achieved critical milestones eQ Y Unveiling of the Launch fleet Volvo VNL produced Autonomous Start of autonomous operations with safety driver Oo ——— Volvo Group Capital Markets Day 2024 2024-11-14 58
Slide 59: Clear path towards driverless launch and scaling
Volvo Autonomous Solutions has a clear path towards votLva driverless launch & scaling 1) Unveiling of the Volvo VNL Autonomous © Launch fleet produced Start of autonomous operations with safety driver ——___ Volvo Group Capital Markets Day 2024 Driverless launch Removal of safety driver Industrializ
Slide 60: Renault Trucks E-Tech 100% electric
BEWAULE TRUCKS E-TECH 100% ELECTRIC i = (| Sa 7] j : = ; i Volvo Group Capital Markets Da
Slide 61: Common Architecture and Shared Technology (CAST)
votL.vad Common Architecture and Shared Technology (CAST) BUSES He, tt] @ Z “se a yam CONSTRUCTION EQUIPMENT ~~, . Ras PE Veo ni Volvo Group Capital Markets Dé VOLVO PENTA
Slide 62: CAST components and systems in recent launches
votuLuvad CAST components and systems in recent launches E/E architecture Driver interaction Camera Monitor with base SW System Volvo Group Capital Markets Day 2024 Safety systems 2024-11-14 62
Slide 63: Clear brand distinction leveraging CAST modularity
Renault Trucks T Y) Volvo Group Capital Markets Day 2024 votuLuvad Mack Trucks . . Clear brand distinction and differentiated value propositions Leveraging CAST modularity driving earnings Platform for ICE, BEV and FCEV solutions 2024-11-14 63
Slide 64: 100% fossil-free Volvo Group vehicles from 2040
voLuvoe 100% fossil-free Volvo Group vehicles from 2040 Carbon fuel | Carbon neutral 100% Share oD of new = trucks D < < c & INTERNAL COMBUSTION ENGINE 0% 2040 2050 Volvo Group Capital Markets Day 2024 2024-11-14 64
Slide 65: Strong partnerships to accelerate the transition
voLuvoe Strong partnerships to accelerate the transition Carbon fuel | Carbon neutral 100% ° > P = x Eo Share oO £ > of new 2 3 k mol trucks 2 2 = © oe 5) h= cellcentric wx 2 INTERNAL COMBUSTION ENGINE ga Ba Of os EICHER a 0% 2040 2050 Volvo Group Capital Markets Day 2024 2024-11-14 65
Slide 66: 100% Fossil-Free 2040
Slide 67: Manufacturing, remanufacturing and production logistics
MANUFACTURING OF CABS & TRUCKS REMANUFACTURING OF COMPONENTS PRODUCTION LOGISTICS MANUFACTURING OF COMPONENTS (ENGINES, TRANSMISSIONS, BATTERIES) SERVICE MARKET LOGISTICS VOLVO PERFORMANCE SYSTEM
Slide 68: Geoflex and continued regionalization of value chains
votuLuvad Geoflex and continued regionalization of value chains we @ Group Trucks Operations sites Volvo Group Capital Markets Day 2024 2024-11-14 68
Slide 69: New factory site in Monterrey, Mexico
a = New factory site in Monterrey, Mexico
Slide 70: Resilience through mixed model assembly
votuLuvad Resilience through mixed model assembly Also for components
Slide 71: Gradual backward integration in batteries
CELL samsunc @LG Volvo Group Capital Markets Day 2024 vVvotL.vaod MODULE woLutvo PROTERRA SAMSUNG AKASOL” PACK ENERGY STORAGE SYSTEM vouLuvo 8 PROTERRA AKASOL” GRADUAL BACKWARD INTEGRATION 2024-11-14 cal
Slide 72: Volvo Group Capital Markets Day 2024
voLuLuvoao Volvo Group Capital Markets Day,2
Slide 73: Volvo Group Capital Markets Day 2024
Volvo Group _ =: 2 - Capital Markets Day 2024 See — : ease 2024-11-14-
Slide 74: >1.7 million
voLuvoe >1.7 MILLION Volvo Group Capital Markets Day 2024 2024-11-14 74
Slide 75: Vehicles, machines and digital services offering
Digital Vehicles & services machines Tires & Batteries & • superstructure optimization services • • Route • Insurance simulation • Charging Service services contracts Financing
Slide 76: Financial Services as a core part of the commercial crew
votuLuvad Financial Services as a core part of the commercial crew VOLVO FINANCIAL SERVICES CREDIT PORTFOLIO NET SEK bn Delivering Effective TCO 300 262 tailored via flexible packages for financing aso customers solutions XaaS 200 150 Reducing Understanding complexity and of customers’ key 100 uncer
Slide 77: Services strengthening customer retention, profitability and resilience
votuLuvad Services strengthening both customer retention, profitability and resilience Revenue per offering, illustrative Drive service sales towards full service potential 7 Drive = vehicle / machine market shares A > Market share Volvo Group market share 100% Volvo Group Capital Markets Day 2024 2
Slide 78: The energy transition is a great opportunity for the Group
votuLuvad The energy transition is a great opportunity for the Group Charging services Battery Energy Storage System e-Mobility Service Provider (BESS) (eMSP) Volvo Group Capital Markets Day 2024 2024-11-14 78
Slide 79: Services strengthening customer retention, profitability and resilience
votuLuvad Services strengthening both customer retention, profitability and resilience VOLVO GROUP SERVICE SALES (incl. Financial Services) SEK bn 140 130 120 _ -- 100 Deer B80 71 - ~ 60 ~ 40 20 0 2016 2017 2018 2019 2020 2021 2022 2023 24Q312m Volvo Group Capital Markets Day 2024 2024-11-14 79
Slide 80: Disciplined capital allocation balancing shareholder return
votuLuvad Disciplined capital allocation balancing shareholder return while future proofing the Group STRONG FINANCIAL POSITION AND FORWARD-LEANING INVESTMENTS RETURN ON CAPITAL EMPLOYED INTO TECHNOLOGY AND INNOVATION ATTRACTIVE SHAREHOLDER RETURN Net cash position, SEK bn ROCE "a Dividend, SEK/shar
Slide 81: Consistent earnings improvement while investing in new technologies
voLuvoe Consistent earnings improvement while investing in new technologies Adjusted operating income* Margin SEK bn 100 169 13.1 ” 80 12% 60 8% 40 20 2.6% 4% 0) 0% 2 OO KL WD 0 gD D oh OP PP AP a PPP gPY oP” oP" oP” nee v Net sales SEKbn 273 283 313 302 335 391 432 338 372 473 552 536 Volvo Group C
Slide 82: Continuously reviewing the Group's business portfolio
voLuvoe Continuously reviewing the Group’s business portfolio Volvo Group Capital Markets Day 2024 A Operating income Product lines, services, market areas, segments, product projects, business ventures, etc. © Develop @ High frequency follow-ups Exit > Revenue 2024-11-14 82
Slide 83: Driving performance improvements across truck brands and JVs
votuLuvad Driving performance improvements across truck brands and JV’s while investing into tomorrow’s value chain and technologies Africa & South Oceania America World Volvo Trucks Renault Trucks || 10% Mack Trucks Truck JVs Transformational ventures Truck segment Volvo Group Adjusted operating ma
Slide 84: Truck segment carrying the way for tomorrow's business
votuLuvad Truck segment carrying the way for tomorrow’s business Africa & South Europe North America Asia Oceania America World oo Be Transformational ventures Vowvo Trucks - « Volvo Autonomous Solutions * Volvo Energy (BEV) * Milence (BEV) L_| * Proterra (BEV) + Flexis (BEV) ~< * Cellcentric (FCEV)
Slide 85: No way to leapfrog the investment phase into ZEV
voLuvoe There is no way to leapfrog the investment phase into ZEV and we have a first mover advantage Current view, illustrative Investments Volumes Revenue per unit * Continued large investments in ICE to have the best offer on the market ¢ Flexible industrial system to manage ICE the transformatio
Slide 86: Strong shareholder returns regardless of speed of transformation
voLuvoe We will generate strong shareholder returns regardless of the speed of transformation Speed of transformation (Sales CAGR) Volvo Group Capital Markets Day 2024 ILLUSTRATIVE EBIT margin over the business cycle * The Group is geared to operate effectively anywhere between point A and B on the
Slide 87: Gearing up for growth
- Gearing up for growth — by delivering continuous solid performance — by accelerating growth through transformation — by evolving our performance culture cn TS votuLuvaod
Slide 88: Gearing up for growth
Gearing up for growth BY DELIVERING CONTINUOUS SOLID PERFORMANCE Broad customer base with long standing relations BY ACCELERATING GROWTH THROUGH TRANSFORMATION BY EVOLVING OUR PERFORMANCE CULTURE We are committed to win in A strong culture and a ICE, BEV and FCEV winning team * Leading market positi
Slide 89: votL.v oo
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