Volvo Ab Class A · OMXSTO:VOLV_A

Volvo Ab Class A — FY2024 Earnings Presentation

45 slides from Volvo Ab Class A's earnings presentation, Feb 19, 2025

  1. Slide 1: Volvo Group Business Update FY2024

  2. Slide 2: Driving prosperity through transport and infrastructure solutions

    es. Drivin prosperity through transport - .. and infrastructure solutions Volvo Group. Business Update FY2024 2025-02-19 2

  3. Slide 3: Gearing up for growth

    Gearing up for growth — by delivering continuous solid performance — by accelerating growth through transformation — by evolving our performance culture votuLuvaod

  4. Slide 4: Long term ambition

    LONG TERM AMBITION 0 “Safe | 0 Fossil free ee More productive Business Update FY2024 2025-02-19

  5. Slide 5: Our strategic direction is in sync with our financial ambitions

    votuLuvad Our strategic direction is in sync with our financial ambitions Strategic Sheng pasitions Synergies across direction in key markets. Vallus creation Service business Leadership in the with regional itinewe}in erreup growth itite Crreuts transformation portfolio mgmt. through CAST value cha

  6. Slide 6: 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 Business Update FY2024

  7. Slide 7: Common Architecture and Shared Technology (CAST)

    votL.vad Common Architecture and Shared Technology (CAST) TRUCKS CONSTRUCTION JV & ALLIANCES EQUIPMENT ig Volvo Group Business Update F VOLVO PENTA 8

  8. Slide 8: Strong partnerships to accelerate the transition

    voLuvoe Strong partnerships to accelerate the transition Carbon fuel | Carbon neutral 100% Share of new trucks lIcentri INTERNAL COMBUSTION ENGINE cellcentric 0% 2040 Volvo Group Business Update FY2024 EICHER Running fleet Software defined platform JV DAIMLER TRUCK 2050 2025-02-19 votrvo 9

  9. Slide 9: Volvo Performance System

    MANUFACTURING OF CABS & TRUCKS REMANUFACTURING OF COMPONENTS PRODUCTION LOGISTICS MANUFACTURING OF COMPONENTS (ENGINES, TRANSMISSIONS, BATTERIES) SERVICE MARKET LOGISTICS VOLVO PERFORMANCE SYSTEM

  10. Slide 10: 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 Dividend, SEK/share I

  11. Slide 11: Consistent earnings improvement while investing in new technologies

    voLuvoe Consistent earnings improvement while investing in new technologies Adjusted operating income* Margin SEK bn 100 16% 12.5% 80 12% 60 8% 40 20 2:6% 4% o) 0% & ® © <x\ ES) re) yy ob o> * PN NP NM NS NW NY DP VL PP V 2S PP a a GP F GQ’ P QP oP Net sales SEKbn 273 283 313 302 335 391 432 338 372

  12. Slide 12: Services strengthening customer retention, profitability and resilience

    votuLuvad Services strengthening both customer retention, profitability and resilience VOLVO GROUP SERVICE SALES SEK bn (incl. Financial Services) 140 130 120 BB - 100 — = 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Business Update FY2024

  13. Slide 13: Continuously reviewing the Group's business portfolio

    voLuvoe Continuously reviewing the Group’s business portfolio Volvo Group Business Update FY2024 A Operating income Product lines, services, market areas, segments, product projects, business ventures, etc. © Develop @ High frequency follow-ups Exit > Revenue 2025-02-19 14

  14. Slide 14: 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

  15. Slide 15: Strong shareholder returns regardless of the speed of transformation

    voLuvoe We will generate strong shareholder returns regardless of the speed of transformation Speed of transformation (Sales CAGR) Volvo Group Business Update FY2024 ILLUSTRATIVE EBIT margin over the business cycle * The Group is geared to operate effectively anywhere between point A and B on the cu

  16. Slide 16: Volvo Group Business Update

    mn . = =< = =< Volvo Group Business Update

  17. Slide 17: Deep dive slides

    voLuvoe Deep dive slides Volvo Group Business Update FY2024 2025-02-19 18

  18. Slide 18: 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

  19. Slide 19: 19 21 23 25 03 05 07 09 11 13 15 17 19 21

    400 400 300 300 200 200 100 100 0 0 03 05 07 09 11 13 15 17 19 21 23 25 03 05 07 09 11 13 15 17 19 21 23 25 150 450 1 800 1 350 100 300 900 50 150 450 0 0 0 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 03 05 07 09 11 13 15 17 19 21 23 25 03 05 07 09 11 13 15 17 19 21 23 25

  20. Slide 20: 300 50 100 200 25 50 100 0 0 0

    200 200 150 150 100 100 50 50 0 0 100 250 500 200 400 75 150 300 50 100 200 25 50 100 0 0 0

  21. Slide 21: 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.

  22. Slide 22: A mix of products required to support CO2 reductions towards 2030

    A mix of products required to support CO2 reductions towards 2030 Heavy construction Heavy transport Energy usage Urban construction City/Regional distribution Interregional haul Yearly milage Battery Electric Fuel Cell Electric ICE (LNG/Diesel)

  23. Slide 23: Value creation through modular architecture

    votLuveaod Value creation through modular architecture SAME VEHICLE PLATFORM SAME PLANT Combustion Electric Battery Fuel cell engine driveline package package Combustion engine Battery electric Fuel cell electric Main assembly line Fuel cell Battery Combustion electric electric engine Pre-assembly s

  24. Slide 24: Modular architecture enables large number of applications

    ‘AGRICULTURE a GE Oe ee OE deers Be a ae oe Oe wees Ger iam 6 a Fe ee = io eee «= Modular architecture enables large number of applications = “= ee aa ee see ae ee OF tel A OR tee BE cee Gi 2 der de 2 BP 2 Om 2s A AS 1 ee 2 ee aEr 2 a cee CONSTRUCTION & MINING ew ees Cee aT RE ee aw aS Bee ee ARF Ro

  25. Slide 25: Geoflex and continued regionalization of value chains

    votuLuvad Geoflex and continued regionalization of value chains we @ Group Trucks Operations sites Volvo Group Business Update FY2024 2025-02-19 26

  26. Slide 26: Gradual backward integration in batteries

    CELL samsunc @LG Volvo Group Business Update FY2024 vVvotL.vaod MODULE woLutvo proterra SAMSUNG AkAsoL” PACK ENERGY STORAGE SYSTEM vouLuvo PROTErFRA (AKASOL” GRADUAL BACKWARD INTEGRATION 2025-02-19 27

  27. Slide 27: 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

  28. Slide 28: 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

  29. Slide 29: A range made for growth

    votLuvaod A RANGE MADE FOR GROWTH Volvo Group Business Update FY2024 2025-02-19 30

  30. Slide 30: Holistic program in place to drive growth in North America

    votuLuvad Holistic program in place to drive growth in North America SUPPLY CHAIN & COMMERCIAL AND PRODUCT PORTFOLIO MANUFACTURING DISTRIBUTION NETWORK SERVICE GROWTH PvE J New product range New factory in Mexico Strengthening and Driving service sales with + Leading fuel efficiency and * Start of p

  31. Slide 31: The formula for electromobility adoption

    voLuvoe The formula for electromobility adoption LJ = (Lx iD x Gly x Ae x ey = 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 targe

  32. Slide 32: 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

  33. Slide 33: Volvo's standard vehicle for autonomous transportation

    votLva Volvo’s standard vehicle for autonomous transportation Platform to maximize value creation for Volvo Group Virtual drivers Use cases OOo OO@o Truck brands Geographies ©9e S0S Business models Drivetrains © © Autonomy-enabled truck © oO Transport Truck Internal Battery Fuel asa asa combustion e

  34. Slide 34: Volvo Autonomous Solutions has achieved critical milestones

    vVvoLva Volvo Autonomous Solutions has achieved critical milestones eQ ) Unveiling of the Launch fleet Volvo VNL produced Autonomous Start of autonomous operations with safety driver Oo ——— Volvo Group Business Update FY2024 2025-02-19 35

  35. Slide 35: Volvo Autonomous Solutions has a clear path towards driverless launch

    votLva Volvo Autonomous Solutions has a clear path towards driverless laun 1) Unveiling of the Volvo VNL Autonomous Y Launch fleet produced Start of autonomous operations with safety driver ——___ Volvo Group Business Update FY2024 Driverless launch Removal of safety driver Industrialization of the V

  36. Slide 36: The job to be done: maximize customer value

    voLuvoe The job to be done — maximize customer value Volvo Group’s services are a key component to provide a total solution Vehicles & machines Digital services Tires & superstructure optimisation ° Uptime services avA * Productivity * Efficiency Route * Energy transition Insurance simulation Y * Sa

  37. Slide 37: 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 Business Update Q62D084 20

  38. Slide 38: 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) ~ a Volvo Group Business Update FY2024 2023-02-19 K)

  39. Slide 39: No way to leapfrog the investment phase into ZEV

    voLuvoe There is no way to leapfrog the investment phase into ZEV and we ha 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 transformation | | * ICE business fundi

  40. Slide 40: Strong credit ratings

    votLuveaod Strong credit ratings AA- /Aa3 At+/A1 A/A2 A-/ A3 BBB+ / Baal BBB / Baa2 BBB-/Baa3_ - r - > + - r 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 S&P == Moodys R&I Volvo Group 2025-02-19 a Business Update FY2024

  41. Slide 41: Total Return Volvo vs Peers

    votLuveaod Total Return Volvo vs Peers 2018 2015 2016 2017 2018 2019 2020 2021 2022 2023, 2024 Volvo (SEK) —Paccar(USD) | ——=Caterpillar (USD) Business Update FY2024 2025-02-19 42

  42. Slide 42: Total Return Volvo vs Peers

    votLuveaod Total Return Volvo vs Peers 80 oo oo oS SOLOS HS oo SS SCL HK HHS PEP SSS EES SY LEE PELI EP EEF EPP EEPEPLE IPE POE PLE I IEP OS 9 ? Volvo (SEK) Deimler Trucks EUR) ——Traton (EUR) —==IVECO (EUR) Business Update FY2024 2025-02-19 43

  43. Slide 43: Total Return Volvo vs Peers

    votLuveaod Total Return Volvo vs Peers 600 500 400 300 200 100 2014 2015 2016 2017 2018 2019 2020 2021 2022 2028 2024 Volve (SEK) —==MSCIWorld Machinery Index (SEK) Business Update FY2024 2025-02-19 44

  44. Slide 44: votL.v oo

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  45. Slide 45: Disclaimer

    vVvotL.vaod Disclaimer This presentation has been prepared by AB Volvo (publ) (the "Company” and together with its subsidiaries, the "Volvo Group") for information and background purposes only. This presentation is not, and should not be construed as, a prospectus or offering document, and has not b

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