Volvo Car Group – highlights Jan-Jun 2014

• Operating income (EBIT) of SEK 1,210 million

• Retail sales up by 9.5 per cent

• One of the fastest growing premium brands in Europe

• Investments in Torslanda plant increases capacity

• S60L Petrol Plug-in Hybrid unveiled at Beijing Auto Show

• Drive-E engines receive positive market response

2Date Created: 2014-08-20Issuer: Investor Relations; Jan-Jun 2014; Security Class: Proprietary

• China: Continuous growth and largest market

• Sweden: Home market with a market share of 20 per cent

• US: A challenging market with declining sales, growth plan being implemented

• Europe: Positive sales development, Germany up 7.4 per cent and the UK up 17.6 per cent

Retail sales

(number of cars sold) Jan-jun 2014 Jan-jun 2013 Change,%

China 38,555 28,703 34.3%

Sweden 30,511 25,385 20.2%

USA 29,331 32,578 -10.0%

Western Europe 87,630 80,632 8.7%

Other markets 42,986 41,820 2.8%

Total 229,013 209,118 9.5%

3Date Created: 2014-08-20Issuer: Investor Relations; Jan-Jun 2014; Security Class: Proprietary

Volvo car Group – sales performance Jan-Jun 2014

Volvo Car Group – us revival planA challenging situation for an iconic brand

Back to volume of 100 000 + cars

Drive brand awareness

- New media strategy

- New agencies

- Marketing spend up 25%

Improve product offer

- All new XC90 launch

- Drive-E engines

- New attractive specifications

Enhance retailer network

- Attractive lease offer

- Focus on used car business

- Focus on showroom traffic

Issuer: Investor Relations; Jan-Jun 2014; Security Class: Proprietary Date Created: 2014-08-20 4

Volvo Car Group – Financials jan-jun 2014

Volvo Car Group – Financial highlights jan-jun 2014

SEK millions

(unless otherwise stated) JAN-Jun 2014 Jan-Jun 2013

Revenue 64,785 56,364

Gross Income 11,000 9,063

Operating Income (EBIT) 1,210 -577

Operating Margin (%) 1.9% -1.0%

Net Income 535 -778

Operating & Investing Cash Flow -4,189 -1,797

6Date Created: 2014-08-20Issuer: Investor Relations; Jan-Jun 2014; Security Class: Proprietary

Jan-Jun 2014 Jan-Jun 2013

Revenue (msek)

64,785

56,364

PositiveSales mixVolume

7Date Created: 2014-08-20Issuer: Investor Relations; Jan-Jun 2014; Security Class: Proprietary

75,000

50,000

25,000

0

Volvo Car Group – Net Revenue Jan-Jun 2014 vs. 2013

Jan-Jun 2014 Jan-Jun 2013

Operating Income EBIT (msek)

PositiveSales mixVolume

NegativeExchange

rates

8Date Created: 2014-08-20Issuer: Investor Relations; Jan-Jun 2014; Security Class: Proprietary

2,000

1,500

1,000

500

0

-500

-1,000

1,210

-577

Volvo Car Group – EBIT Jan-jun 2014 vs. 2013

15 400

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

Cash Balance

H1 2014

13 000*

Financing

+1 600

Investing

-4 500

Operating

+300

Cash Balance

FY 2013

msek

Date Created: 2014-08-20 9Issuer: Investor Relations; Jan-Jun 2014; Security Class: Proprietary

Note. Rounded figures

* Includes exchange differences on cash and cash equivalents Sek 182m

Volvo Car Group – CASH Flow Jan-Jun 2014

• Substantial improvement versus same period 2013

• Operating income (EBIT) of SEK 1,210 million

• Continued investments according to plan

• Continued cost control

• New revolving credit facility

10Date Created: 2014-08-20Issuer: Investor Relations; Jan-Jun 2014; Security Class: Proprietary

Volvo Car Group – Financial summary Jan-jun 2014

11

• Sales up close to 10% YoY

• China sales of at least 80,000 cars

• US revival plan

• FY result in line with 2013

Date Created: 2014-08-20Issuer: Investor Relations; Jan-Jun 2014; Security Class: Proprietary

Volvo Car Group – Outlook Full Year 2014

Date Created: 2014-08-20Issuer: Investor Relations; Jan-Jun 2014; Security Class: Proprietary 12