Volvo Ab Class A · OMXSTO:VOLV_A
Volvo Ab Class A — Q3 2021 Earnings Presentation
29 slides from Volvo Ab Class A's earnings presentation, Oct 21, 2021
Slide 1: Third Quarter 2021
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Slide 3: Quarter highlights
votLvao Volvo Group Quarter highlights + Net sales adjusted for UD gaycks NET SALES ADJUSTED OPERATING INCOME (margin)* divestment increased by 19% SEK bn 1 = 12 months 11.4% (+20% excluding FX) == 12 months SEK 355 bn ° + Adjusted operating income SEK 9.4 bn (7.2) corresponding to a margin of 11.0%
Slide 4: Volume development
Volvo Group Volume development Volvo Group Third Quarter 2021 votLvao TRUCK DELIVERIES k units HD/MD. === 12 months 171k units 43.8 30.8 Q3 Q4 Qi @2 Q@3 @4 Ql 2019 2020 Deliveries restated for UD Trucks divestment 40.8 Q2 Q3 2021 MACHINE DELIVERIES k units === 12 months 104 k units -9% 16.5 18.1 Q3
Slide 5: Electrification progress
votLvao Volvo Group Electrification progress ORDER INTAKE, FULLY ELECTRIC VEHICLES, Q3 2021 DELIVERIES FULLY ELECTRIC VEHICLES Q3 2021 units HD/MD/LD units HD/MD/LD 59 23 187 vucke en a Volvo CE 84 82 Volvo Buses 100 Volvo Penta 36 mT a Volvo Group, Total 434 Fully = Trucks VolvoCE Volvo Volvo ‘Full
Slide 6: Service sales development
Volvo Group Service sales development SERVICE SALES (incl. Financial Services) SEK bn === 12 months SEK 87.4 bn +9% +10% excl. FX ——___+____ 22.7 22.5 20.6 Q@3 Q4 Qi @2 @3 Q4 Qi Q@2 Q3 2019 2020 2021 Service sales restated for UD Trucks divestment Volvo Group Third Quarter 2021 votLvao > + 7 1% 13%
Slide 7: Third Quarter 2021
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Slide 8: Trucks
votLvao Trucks * Large electric orders in Europe and North America: — DFDS, Northern Europe's largest shipping and logistics company, ordered 100 Volvo FM heavy-duty electric trucks — Performance Team (a Maersk company) in California, ordered 16 Volvo VNR heavy-duty electric trucks * Volvo Autonomou
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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 10: Trucks: quarterly orders and deliveries by region
Trucks votLvao HD/MD: Quarterly orders -6% and deliveries +33% NORTH AMERICA “""Orders S™™™Deliveries Q3 Q4 Qi Q2 Q3 @4 ai a2 a3 2019 2020 2021 \ \ Orders +75% Deliveries +67% SOUTH AMERICA ™™"Orders S™™™Deliveries EUROPE Orders =—Deliveri Q3 @4 Qi Q2 Q3 @4 ai a2 a3 2019 2020 2021 \ \ Orders -34% De
Slide 11: Heavy-duty truck market shares
votLvao Trucks 42.5 Heavy-duty truck market shares NORTH AMERICA EUROPE (EU29) YTD Sept YTD Sept pre) 19.0 16.0 O5 as 15.7 707 87 8.5 3.0 Volvo Mack Volvo Renault Volvo Renault Total market share Battery electric market share BRAZIL SOUTH AFRICA AUSTRALIA YTD Sept YTD Sept YTD Sept 22.3916 187.68 17
Slide 12: y - : ‘ ; us by " ri « “12
s y - : ‘ ; us by " ri « “12 © Third Quarter 2021 P i y © eet yh 202110-21 12 ? ‘ a) t : ~ and vf : 4 ot
Slide 13: Construction Equipment
Construction Equipment * Volvo CE launched three new electric compact machines. Now offering a total of five models in Europe and three in North America * Sixteen upgraded models were launched in India meeting the new CEV 4 emission norm Volvo Group Third Quarter 2021 votLvao 2021-10-21 13
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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 15: Construction Equipment: quarterly orders and deliveries
Construction Equipment votLvao Quarterly orders -1% and deliveries -9% NORTH AMERICA "Orders == Deliveries EUROPE "Orders “Deliveries Q3 Q4 Q1 Q@2 @3 Q4 QI Q2 Q3 2019 2020 2021 f \ Orders +125% Deliveries +18% SOUTH AMERICA Orders ==Deliveries Q3 Q4 Q1 Q2 @3 Q4 Qi Q2 Q3 2019 2020 2021 \ f Orders +22
Slide 16: Buses
Buses * Orders increased by 34% * Deliveries increased by 2% * Global launch of the all-electric BZL chassi platform coupled with the Volvo Connect digital solution Volvo Group Third Quarter 2021 votLvao 2021-10-21 16
Slide 17: Volvo Penta
votLvao Volvo Penta * Orders increased by 34% * Deliveries increased by 6% * Serial production of the 6O0OV electric driveline started for both on-land and at-sea applications * Electric hybrid propulsion system co-developed with Danfoss being tested on a crew vessel Volvo Group Third Quarter 2021 2
Slide 18: Financial services
Financial services * Increased business volumes * Stable penetration rate * Good portfolio performance * Supporting the Group’s electromobility transition with higher penetration levels on electric products Volvo Group Third Quarter 2021 votLvao PENETRATION RATE, % 12 months moving 36 38 28 29 30 30
Slide 19: Third Quarter 2021
Volvo Group ia = Third Quarter 2021 2021-10-21 So ee = ee 19
Slide 20: Net sales per market
Volvo Group Net sales per market Volvo Group Third Quarter 2021 votLvao NET SALES SEK bn Currency SEK -0.6 bn 5.4 330 _ 1W2 85.3 a = al m5 2 = 15 Q3 2020 = Europe North South Asia Africaand Q3 2021 America America Oceania Net sales restated for UD Trucks divestment 2021-10-21 20
Slide 21: Adjusted operating income contributors
votLvao Volvo Group Adjusted operating income contributors ADJUSTED OPERATING INCOME SEK bn Currency SEK +0.1 bn -— 9.4 -0.4 72 Q3 Gross Cash Net R&D Selling Admin Other Q3 2020 Income R&D Cap./Amo, 2021 Volvo Group Third Quarter 2021 + Price + Vehicle & service volumes + Mix in Volvo CE - Raw mater
Slide 22: Cash flow and financial position
Volvo Group Cash flow and financial position OPERATING CASH FLOW SEK bn === 12 months SEK 22.5 bn 18 | ~ | 5.7 Q3 Q4 Q1 Q@2 G3 Q4 Qi Q2 Q3 2019 2020 2021 Volvo Group Third Quarter 2021 votLvao OPERATING CASH FLOW SEK bn Working capital (-13.4 bn) if \ 17 8.6 -2.2 az 124 0.6 32 44 87 Opine. A/R Inven
Slide 23: Trucks: Net sales and adjusted operating income
Trucks votLvao Net sales and adjusted operating income NET SALES SEK bn == 12 months SEK 213.7 bn +26% (excl. FF +27%) 57.2 i 53.4 Q3 Q4 Qi @2 Q@3 Q4 QI Q2 Q3 2019 2020 2021 Net sales restated for UD Trucks divestment Volvo Group Third Quarter 2021 ADJUSTED OPERATING INCOME SEK bn + Price vt + Vehic
Slide 24: 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 == 12 months 11.8% Currency SEK 0.0 bn SEKbn == 12 months SEK 91.0 bn SEK bn SEK bn (margin)* +11% (excl. FX +11%) j r 1 + Product and 26 ae market mix 19.6 79 17.6 +
Slide 25: Buses: Net sales and adjusted operating income
votLvao Buses Net sales and adjusted operating income NET SALES ADJUSTED OPERATING INCOME SEKbn ===" 12 months SEK 20.2 bn SEKM +2% (excl. FX +2%) 240 an + Service earnings - Capacity utilization NP - Production disturbances - Market mix 42 Q3 Q4 Qi Q@2 Q@3 Q4 Qi Q2 Q3 | 2019 2020 2021 Q3 2020 Q3 20
Slide 26: Volvo Penta: Net sales and adjusted operating income
Volvo Penta votLvao Net sales and adjusted operating income NET SALES SEK bn == 12 months SEK 13.8 bn 412% (excl. FX +13%) 3.2 31 Q3 Q4 Qi @2 @3 Q4 QI Q2 Q3 2019 2020 2021 Volvo Group Third Quarter 2021 ADJUSTED OPERATING INCOME SEKM 570 + Higher sales 501 - Industrial productivity (supply chain con
Slide 27: Financial Services: Credit portfolio and profitability
Financial Services Credit portfolio and profitability NEW RETAIL FINANCING SEK bn == 42 months SEK 80.7 bn i ae 20 19.3 17.9 Q3 Q4 Qi Q@2 Q@3 Q4 QI Q2 Q3 2019 2020 2021 0 Volvo Group Third Quarter 2021 votLvao ADJUSTED OPERATING INCOME SEKM <== 12 months SEK 2 942 M Currency SEK -6 M 774 826 423 Q3
Slide 28: Quarter highlights
votLvao Volvo Group Quarter highlights + Net sales adjusted for UD gaycks NET SALES ADJUSTED OPERATING INCOME (margin)* divestment increased by 19% SEK bn 1 = 12 months 11.4% (+20% excluding FX) == 12 months SEK 355 bn ° + Adjusted operating income SEK 9.4 bn (7.2) corresponding to a margin of 11.0%
Slide 29: Third Quarter 2021
SS Third Quarker2021—— 2021-10-21