Hans oscarsson, CFO

VOLVO CAR GROUP – FINANCIAL REPORT 2013 H1

Håkan samuelsson, President & CEO

2013 h1 highlights

� Launched the upgraded product portfolio

with six new models

� Transformation programme on track

� Cost adaptation implemented

� Operating result in line with our

expectations

� Strong performance in the Chinese market

� Industrial footprint established in China

2

Volvo cars in china

3

Beijing

Chengdu

New manufacturing plant

DaqingNew manufacturing plant

Shanghai• China Head Office• China Sales Company• China Technology Center

ZhangjiakouNew engine plant

Daqing

Zhangjiakou

ShanghaiChengdu

• Postive sales

performance

• Expanded product

portfolio

• Industrial footprint

established

macro and industry trends

4

4

Industry development (total passenger cars 000’s)

2013 h1 2012 H1 Change,%

China 8,231 7,229 13.9%

USA 7,779 7,223 7.7%

EU 20 6,290 6,731 -6.6%

of which Sweden 129 143 -9.8%

� Eurozone still affected by economic instability

� Car sales down in Europe

� Swedish car market down

� Growth in Chinese and US car market

� Aggressive incentives in all markets

2013 h1 Volvo cars sales performance

� China: Sales growth of over 34% and a sales record in June

� USA: Strong sales of XC60/S60. Sales affected by limited product portfolio and stiff competition

� Europe: Sales declined with reduced industry volumes and the effect of the model year shift

� Sweden: Volvo Cars outperformed the market and increased market share

5

Retail sales (number of cars sold) 2013 h1 2012 h1 Change,%

China 28 703 21 378 34.3%

USA 32 578 34 617 -5.9%

Europe (EU20) 109 783 123 279 -10.9%

Of which Sweden 25 385 26 296 -3.5%

Of which UK 16 769 17 262 -2.9%

Of which Germany 14 323 17 345 -17.4%

Rest of World 38 054 42 035 -9.5%

Total 209 118 221 309 -5.5%

Financial highlights

6

SEK millions

(unless otherwise stated) 2013 h1 2012 h1

Revenue 56,364 65,411

Gross Income 9,063 10,383

Operating Income -577 349

Operating Margin (%) -1.0 0.5

Net Income -778 -274

Operating & investing cash flow -1,797 -2,841

Net Revenue 2013 H1 vs 2012 h1

� Lower sales volumes

� Increased discounts

� Negative exchange rate

impact

� Market & Model Mix

positive

7

0

20 000

40 000

60 000

80 000

100 000

2013 H1 2012 H1

Revenue (msek)

56,36465,411

Operating income 2013 h1 vs 2012 h1

8

PositiveLower cost

levelsMarket MixModel Mix

NegativeVolume

Discounts Exchange

rates

-800

-600

-400

-200

0

200

400

Operating Income (msek)

-577

349

2013 H12012 H1

Cash flow 2013 h1 vs 2012 h1

� Decreased operating result

� Working capital improvements

� Continued investments in

transformation programme:

new vehicle & engine

architectures

9

-3 000

-2 500

-2 000

-1 500

-1 000

-500

0

500

1 000

Cash Flow - operating & investing (msek)

-1,797

-2,841

2013 H1 2012 H1

Financial summary 2013 H1

� Operating income of MSEK -577 in line with plan

� Lower sales volumes

� Continued stiff competition in the markets putting

pressure on margins

� Cost adaptation implemented

� Continued investments to secure transformation

programme

� Facilities from Swedish Export Credit (SEK 1,000

million) and second tranche of China Development

Bank (EUR 107 million) drawn

10

outlook 2013

� Refreshed product portfolio with strong order intake

generating higher volumes H2

� Continued focus on cost

� Launch of Drive-E

� China Sales: High volume growth and Chengdu and

Zhangjiakou start of production end of 2013

� Sales for full year projected to be in line with 2012

� July increased by 14% and August by 5%.

� January to August, a decline of 2.5% compared to last

year.

� Realistic possibilities to achieve break-even result for full

year

11

GLT Town hall presentation February 8, 2013 Security Class: Confidential 12

Q&A