Volvofinans Bank

We are The Mobility Bank

Vision: The Mobility Bank We are building the future platform for

a flexible and mobile car use

Mission: Zero Friction We make it easier for our customers

and partners

Customer promise: A smarter car economy With future payments we create

unbeatable customer journeys

GREAT Our five internal values in Swedish

abbreviating GREAT. (Happiness,result, comittment, responsibility,together)

2020-03-02

* Our target image

*

Owners and board of directors3

Chairman: Urmas KruusvalVice Chairman: Synnöve TryggAnn Hellenius Per Avander

Björn Rentzhog

Jonas Estéen (deputy)Janola Gustafsson (deputy)

Elisbeth MosséenKristian Elvefors

Anders Gustafsson (deputy)Pascal Bellemans (deputy)

INDEPENDENT

VOLVO PERSONVAGNAR AB AB VOLVERKINVEST

VOLVOFINANS BANK AB

50 %50 %

The Swedish Volvo Dealers

59 companies

240 Sales Outlets

270 Service and Repair shops

9,000 Employees

Turnover, SEK 52 bn

Total profit, SEK 1,8 bn (forecast)

*Forecast

44 000

46 000

48 000

50 000

52 000

54 000

56 000

2019* 2018 2017 2016 2015

Turnover (SEK m)

1 4501 5001 5501 6001 6501 7001 7501 8001 850

2019* 2018 2017 2016 2015

Profit(SEK m)

Business Areas Cars, Fleet, Trucks

Sales finance Cars

Number of contracts: 202 800

Total volume: 26 300

Loans: 46%

Leases: 54%

Polestar + Volvofinans Bank

Pure, progressive, performance is the focus of Polestar.

And that doesn't just apply to the cars. This applies to the entire strategy. That's why we offer financing options designed to remove all the hassle of traditional car ownership, so you can focus on the important thing: enjoying a Polestar.

Cars – Cards and CarPay

Volvo Card, CarPay Card and Renault Card

Average number of active accounts: 420 600

Total volume: 1 800 MSEK

Average number of credit customers: 86 900

Total sales Volvo Card: 15 000 MSEK

CarPay app downloads: 500 000

Mobile Payments

Apple Pay

Samsung Pay

CarPay – Tanka and service/repair at

Swedish Volvo Dealers

Number of financing contracts: 35 437

Number of administered contracts: 47 588

Total volume: 7 400 MSEK

Operational leases: 69%

Financial leases: 31%

Trucks

Numbers of contracts: 6 490

Total volume: 4 200 MSEK

Loans: 77%

Leases 23%

Revenues – main factors 2019

Number of contracts

Price on new cars (financed amount)

Price on used cars (residual values) Stibor

Interest margin lending

Liquidity reserve

Interest margin funding Fuel price

Fuel volumes

Lending to credit card customers

Registration of new cars in Sweden379 393

353 729356 036

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 00019

8019

8119

8219

8319

8419

8519

8619

8719

8819

8919

9019

9119

9219

9319

9419

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

1120

1220

1320

1420

1520

1620

1720

1820

19

Registration of new heavy trucks in Sweden

61986205

6641

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Lending volumes (SEK m)

15 816

24 270

2 0663 365

4 884

7 380

0

5 000

10 000

15 000

20 000

25 000

2014 2015 2016 2017 2018 2019

Loan and Leasing

CARS TRUCKS FLEET

+53%2014-2019

+51%2014-2019

+63%2014-2019

25 2422

2325 24 24 25

27

31

3537 38

0

5

10

15

20

25

30

35

40

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Lending volumes total (SEK bn)+58%

2014-2019

13

6

2224

38

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

Lending – 60 yearSEK bn

Revenues (SEK m)

878

971

1088

0

200

400

600

800

1 000

1 200

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

C/I – Ratio** Excluding changes in residual value reserveand credit risk reserve

0,530,48

0,46 0,46 0,44

0,53 0,53

0,00

0,10

0,20

0,30

0,40

0,50

0,60

2013 2014 2015 2016 2017 2018 2019

Operating profit (SEK m)

408

502 516

0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Share of operating profit YE 2019

63%

4%

33%

Cars Trucks Fleet

Operating profit – 60 year

148

502

304

231

408

516

0

100

200

300

400

500

SEK m

Return on Equity

6,8%

8,1%8,9% 8,7% 8,8%

10,1%10,7%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

2013 2014 2015 2016 2017 2018 2019

Funding facilities December 31 2019

Facility (SEK M) Framework Utilised 181231

NCP-programme 8 000 300 200MTN-programme 20 000 12 792 15 350Short-term banks 2 450 0 0Long-term banks 3 593 1 593 2 083Deposits - 21 217 18 218

Total 35 902 35 851

37%

4%

59%

Sources of funds - Utilised excl Equity

Market Borrowing

Bank

Deposits

Volvofinans Bank Savings Account

Year end: 20 090 MSEK (+20%)

Year end: 87 500 saving customers (+18%)

High degree of relationship customers, 87% of savingsvolume

Very high inflow during Q1 2019

Maturity profile MTN bonds

650

350600

500

800

300

3150

3350

2650

500

0

500

1000

1500

2000

2500

3000

3500

4000

feb-20 mar-20 apr-20 maj-20 jun-20 jul-20 aug-20 sep-20 okt-20 nov-20 dec-20 2021 2022 2023 2024 2025

2020-01-31

Green Bonds

Revised framework in 2019

Exclusion of ethanol hybrids and gashybrids

Introduced a limit value for CO2emissions

Maximum 70 gram WLTP (from 2020)

The new framework resulted in anupgrade of Cicero to Medium Green

Steady growth of Green Loan Portfolio (2.3 bn, Sep -19)

Green Bond Investor Report

Rating Moodys Investors Service

“Moodys affirms Volvofinans Bank’s A3 rating as stableoutlook” – 26 Feb, 2019

“Moodys announces completion of a periodic review ofratings of Volvofinans Bank” – 8 Nov, 2019

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2020-03-02

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