Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — Q4 2021 Earnings Presentation
28 slides from Volvo Ab Class A's earnings presentation, Jan 28, 2022
Slide 1: Fourth Quarter 2021
Slide 2: Quarter highlights
Volvo Group Quarter highlights * Net sales increased to SEK 102.4 bn, an increase of 12% adjusted for UD Trucks divestment and FX + Adjusted operating income amounted to SEK 10.1 bn (10.9), corresponding to a margin of 9.8% (11.3) * Operating cash flow in the Industrial Operation amounted to SEK 23.
Slide 3: Volume development
Volvo Group Volume development Volvo Group Fourth Quarter 2021 votLvao TRUCK DELIVERIES k units HD/MD === 12 months 180 k units 55.8) 474 46.4 Q4 Qi Q2 Q3 G4 Qi Q2 Q3 a4 2019 2020 2021 Deliveries restated for UD Trucks divestment MACHINE DELIVERIES k units === 12 months 100 k units 18% it Q4 Qi Q@2
Slide 4: Electrification progress
Volvo Group Electrification progress ORDER INTAKE, FULLY ELECTRIC VEHICLES, Q4 2021 units HD/MD/LD Trucks 454 Volvo CE 92 Volvo Buses 61 Volvo Penta -3 Volvo Group, Total 604 Volvo Group Fourth Quarter 2021 votLvao ORDER INTAKE, FULLY ELECTRIC VEHICLES 604 | L : | Q4 Qi Q2 Q3 Q4 2020 2021 2022-01-28
Slide 5: Service sales development
Volvo Group Service sales development SERVICE SALES (incl. Financial Services) SEK bn == 12 months SEK 89.7 bn 411% +9% excl. FX -—__+______ 23.5 ! 23.9! 21.6 Q4 Q1 Q2 Q3 Q4 Qi Q2 Q3 Q4 2019 2020 2021 Service sales restated for UD Trucks divestment Volvo Group Fourth Quarter 2021 votLvao 7 Fa A /\ 1
Slide 6: = / - = wom cae
= / - = wom cae Fourth Quarter 2021 gta — — = = Spe. 2022-01-28 6
Slide 7: Trucks
votLvao Trucks + Joint venture agreement for European high-performance charging network signed between Volvo Group, Daimler Truck and Traton Group * Enhanced Volvo VNR heavy-duty electric truck launched in North America - range of up to 440km (275 miles) * Volvo FH heavy-duty electric truck tested i
Slide 8: 08 09 10 11 12 13 14 15 16 17 18 19 20 21
400 400 300 300 200 200 100 100 0 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 150 100 50 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22
Slide 9: Trucks: Quarterly Orders and Deliveries by Region
Trucks HD/MD: Quarterly Orders -18% and Deliveries +20% NORTH AMERICA vVot.Lu vo EUROPE Orders ==—=Deliveries Orders ===Deliveries Q4 Qt Q@2 Q@3 G4 Qi Q2 Q@3 a4 Q4 Qi @2 Q3 @4 QI Q@2 G3 4 2019 2020 2021 2019 2020 2021 Orders -38% Orders 12% iveri 9 SOUTH AMERICA Deliveries +29% Orders ===Deliveries
Slide 10: Include content supplied by IHS Markit . Copyright © IHS Markit (2022). All rights
Include content supplied by IHS Markit . Copyright © IHS Markit (2022). All rights reserved
Slide 11: Fourth Quarter 2021
» Fourth Quarter 2021 ,
Slide 12: Construction Equipment
Construction Equipment * First 20-ton EC230 electric excavator shipment, the latest move to accelerate the electric journey * Launch of LXO3, an autonomous concept wheel loader which is fully electric Volvo Group Fourth Quarter 2021 votLvao 2022-01-28 12
Slide 13: 07 08 09 10 11 12 13 14 15 16 17 18 19 20
250 250 200 200 150 150 100 100 50 50 0 0 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 100 250 500 200 400 75 150 300 50 100 200 25 50 100 0 0 0 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 01
Slide 14: Construction Equipment: Quarterly Orders and Deliveries
votLvao Construction Equipment Quarterly Orders -24% and Deliveries -18% NORTH AMERICA EUROPE ==Orders s==Deliveries ==Orders ===Deliveries Q4 Qt @2 @3 Q4 ai @2 Q@3 a4 Q4 Qi Q2 Q@3 Q@4 Qt Q2 Q3 a4 2019 2020 2021 2019 2020 2021 Orders +14% Orders -12% Deliveries +31% Deliveries +24% ASIA SOUTH AMERIC
Slide 15: Buses
Buses * Orders in Q4 increased by 43% * Deliveries in Q4 decreased by 37% * Order for 61 electric buses to Helsinki, Finland * Managing the pandemic: — Volumes in 2021 down 46% vs 2019 — Volvo Buses achieved an adjusted operating income of SEK 59 M for FY2021 Volvo Group Fourth Quarter 2021 votLvao
Slide 16: Volvo Penta
votLvao Volvo Penta * Orders increased by 1% * Deliveries increased by 8% * Development of an advanced hybrid solution for Hurtigruten Svalbard’s new sightseeing vessel * Electric terminal tractor prototype powered by Volvo Penta delivered to TICO in North America Volvo Group Fourth Quarter 2021 202
Slide 17: Financial services
votLvao Financial services * Strong demand for transportation and construction services drives good portfolio performance * Record new business volume for the quarter and year * Expansion of global parts and service financing platform with rollout in Brazil Volvo Group Fourth Quarter 2021 PENETRATIO
Slide 18: Volvo Group
Volvo Group ia = Fourth Quarter 2021 2022-01-28 So ee = ee 18
Slide 19: Net sales per market
votLvao Volvo Group Net sales per market NET SALES EK +0.! SEK bn Currency S| 0.9 bn j Sly Uh iit ns o7 stone 49 =—" —" —_ a 90.4 = 2.8 Q4 2020 Europe North South Asia Africa Q42021 America America and Oceania Net sales restated for UD Trucks divestment Volvo Group Fourth Quarter 2021 2022-01-28 19
Slide 20: Adjusted operating income contributors
votLvao Volvo Group Adjusted operating income contributors ADJUSTED OPERATING INCOME SEK bn Currency SEK +0.1 bn 10.9 0.6 O7 101 eh: een — 03 Mh... 02 — AA “07 Q4 Gross Cash NetR&DSelling Admin Other @Q4 2020 Income R&D Cap./Amo. 2021 Volvo Group Fourth Quarter 2021 ~ \ + Price + Vehicle & service v
Slide 21: Cash flow and financial position in Industrial Operations
Volvo Group votLvao Cash flow and financial position in Industrial Operations OPERATING CASH FLOW SEK bn —— 12 months SEK 29.4 bn 3.6 19.9 Q4 QI Q2 Q3 Q4 QI Q2 Q3 a4 2019 2020 2021 Volvo Group Fourth Quarter 2021 OPERATING CASH FLOW SEK bn Working capital (17.0 bn) Opinc. A/R Invent. A/P Other Amo.
Slide 22: Trucks: Net sales and adjusted operating income
Trucks votLvao Net sales and adjusted operating income NETSALES = — 12 months SEK 225.4 bn SEK bn +21% (excl. FX +21%) —__+—_ ! 67.2 61.5 55.4 a4 ai Qa2 @3 @4 a Q2. @3 a4 2019 2020 2021 Net sales restated for UD Trucks divestment VolrthGioarter 2021 ADJUSTED OPERATING INCOME ADJUSTED OPERATING INCOM
Slide 23: Construction Equipment: Net sales and adjusted operating income
votLvao Construction Equipment Net sales and adjusted operating income NET SALES ADJUSTED OPERATING INCOME ADJUSTED OPERATING INCOME SEKbn “= 12 months SEK 92.0 bn SEK bn SEK bn (margin) —= 12 months 13,3% +5% Currency SEK +0.2 bn (excl. FX +2%) ; : + Product & market mix a 2.3 + Price 24 19.7 20.8
Slide 24: Buses: Net sales and adjusted operating income
votLvao Buses Net sales and adjusted operating income NET SALES ADJUSTED OPERATING INCOME ADJUSTED OPERATING INCOME SEK bn == 12 months SEK 13.7 bn SEKM SEK M (margin)* —= 12 months 0.4% Currency SEK -18 M 248 (4.3%) -19% (excl. FX -20%) 5.8 Ba an + Customer mix + Service earnings - Volume - Materia
Slide 25: Volvo Penta: Net sales and adjusted operating income
votLvao Volvo Penta Net sales and adjusted operating income NET SALES ADJUSTED OPERATING INCOME ADJUSTED OPERATING INCOME SEKbn = 12 months SEK 14.4 bn SEKM SEK M (margin)* <= 12 months 14.5% +22% Currency SEK +20 M (excl. FX +21%) -——_——_, ne + Product mix 3.6 + Engine & parts volume an 330 + Price
Slide 26: Financial Services: Credit portfolio and profitability
Financial Services Credit portfolio and profitability NEW RETAIL FINANCING SEKbn == 12 months SEK 85.1 bn 25.8 2G 21.5 Q4 Qi Q2 Q3 Q4 Qi Q2 Q3 Q4 2019 2020 2021 Volvo Group Fourth Quarter 2021 votLvao ADJUSTED OPERATING INCOME * SEKM <== 12 months SEK 3 279M Currency SEK +21M 858 704 521 Q4 Qt Q2 Q3
Slide 27: Full Year highlights
votLvao Volvo Group Full Year highlights KEY ACHIEVEMENTS IN 2021 NET SALES — Agjusted Operating Income margin* DIVIDEND PROPOSAL FOR 2021 SEK bn * Strong performance in a year with 11,0% * Ordinary dividend SEK 6.50 (6.00) many challenges * Leading the transformation towards * Extra dividend SEK 6.
Slide 28: 2022-01-28
2022-01-28