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Source : DRAUP 1 1 Volvo Account Deep Dive Analysis December 2018

Volvo Account Deep Dive Analysis - Amazon S3€¦ · Gothenburg, Sweden –Technology Center Deep Dive: Technology Leadership Technology Leadership 14 Key Executives (Including CXO

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Page 1: Volvo Account Deep Dive Analysis - Amazon S3€¦ · Gothenburg, Sweden –Technology Center Deep Dive: Technology Leadership Technology Leadership 14 Key Executives (Including CXO

Source : DRAUP

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Volvo – Account Deep Dive Analysis

December 2018

Page 2: Volvo Account Deep Dive Analysis - Amazon S3€¦ · Gothenburg, Sweden –Technology Center Deep Dive: Technology Leadership Technology Leadership 14 Key Executives (Including CXO

Source : DRAUP

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AGENDA

Volvo Overview

Highlights on Volvo overview

Last 5 years Revenue and R&D analysis

Revenue split by geography

Revenue split by business segment

Organization Structure

CXO’s and Executives

Rolodex04

Account Profile

Business & Financial Overview

Outsourcing Vendor Analysis

Globalization Footprint

Recommendations05

01

02

03

Page 3: Volvo Account Deep Dive Analysis - Amazon S3€¦ · Gothenburg, Sweden –Technology Center Deep Dive: Technology Leadership Technology Leadership 14 Key Executives (Including CXO

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Company Overview – On November 2018, Volvo Trucks signed an agreement with Branney Kalk AS in Norway to provide its first commercial autonomous solution transporting limestone from an open pit mine to a nearby port

Revenue in USD Billion R&D spend in USD Billion

Volvo Group is one of the world’s leading

manufacturers of trucks, buses, construction

equipment and marine and industrial engines to

provide driving prosperity through transport solutions.

In addition to vehicles and machines, the Volvo Group’s

offering includes various types of financing solutions,

insurance, rental services, spare parts, preventive

maintenance, service agreements, assistance

services and IT services.

About Volvo

Note – DRAUP data curated from Volvo’s financial reports published annually and updated in December, 2018

Revenue (2017):USD 334.74 Billion

R&D Spend (2017):

USD 16.1 Billion

Headquarter:Gothenburg, Sweden

Year of Establishment:1927

Revenue vs R&D spend (2013 - 17)

272.62 282.94

312.51301.91

334.74

15.1 16.7 15.4 14.6 16.1

2013 2014 2015 2016 2017

Revenue CAGR

(2013 - 2017):5.27%

R&D CAGR

(2013 - 2017):1.62%

Vehicles75%

Services21%

Financial Services4%

Revenue share by segment (2017)

Employees (2017):~1,00,000

Revenue share by Geography (2017)

43%

25%

20%

7%

5%

Europe

NorthAmerica

Asia

Africa &Oceania

SouthAmerica

Page 4: Volvo Account Deep Dive Analysis - Amazon S3€¦ · Gothenburg, Sweden –Technology Center Deep Dive: Technology Leadership Technology Leadership 14 Key Executives (Including CXO

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Volvo – Executive Leadership

Martin Lundstedt

President and Chief Executive Officer

Kerstin RenardExecutive Vice President Group Human

Resources

Andrea FuderExecutive Vice President Volvo Group Trucks

Purchasing

Sofia FrändbergExecutive Vice President Group Legal &

Compliance and General Counsel

Bruno Blin Executive Vice President Volvo Group,

President Renault Trucks

Claes NilssonExecutive Vice President Volvo Group,

President Volvo Trucks

Jan GuranderDeputy Chief Executive Officer

Melker Jernberg

Executive Vice President Volvo Group,

President Volvo Construction Equipment

Jan Ohlsson Executive Vice President Group Trucks

Operations

Joachim Rosenberg Executive Vice President Volvo Group

Chairman of UD Trucks

Martin Weissburg Executive Vice President Volvo Group and

President Mack Trucks

Lars Stenqvist Executive Vice President Group Trucks

Technology

Kina WilekeExecutive Vice President Group

Communication

Jan YtterbergExecutive Vice President Group and CFO

Note: The above analysis is based on the DRAUP’s Executive Module, updated in December, 2018.

Note: Executives mentioned above are part of Executive Leadership team as reported by the organization. Exhaustive list of all the executives will be available in Draup Platform

Page 5: Volvo Account Deep Dive Analysis - Amazon S3€¦ · Gothenburg, Sweden –Technology Center Deep Dive: Technology Leadership Technology Leadership 14 Key Executives (Including CXO

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KEY STRATEGIC PRIORITIES: Core Business Initiatives, Ecosystem Partnerships & Organizational Restructuring

Core Business Initiatives

• On 11th July 2017, Volvo Penta acquired Seven Marine, the

Swedish company to broaden Volvo Penta’s technology

platform, offering a modular, cutting-edge solution, regardless of

the energy source to deliver the desired power in the water which

extends its scope of world-leading integrated propulsion systems.

Note: The above insights are curated through various strategic and tactical signals triggered in Draup Platform from news articles, journals and other similar sources in the last 2

years

• On 19th June 2018, Volvo appointed Jan Ytterberg, CFO and a new

member of the Volvo Group Executive Board for growing business

energy and transfers business insights into the corporate level.

• On 1st June 2018, Volvo appointed Martin Weissburg, President of Mack

Trucks and member of the Executive Board for the Volvo Group to

improve the profitability and competitiveness for the future.

• On 23rd February 2018, Volvo proposed Eric Elzvik, as new Board

member of AB Volvo for the Divisions Discrete Automation & Motion and

Automation Products.

Organisational Restructuring

Ecosystem Partnerships

• On 20th December 2018, Volvo Trucks signed an agreement with

Branney Kalk AS in Norway to provide its first commercial

autonomous solution transporting limestone by six autonomous

Volvo FH trucks on a five kilometer stretch through tunnels

between the mine itself and the crusher.

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r

KEY STRATEGIC PRIORITIES: Focus on Emerging Technologies

Note: The above insights are curated through various strategic and tactical signals triggered in Draup Platform from news articles, journals and other similar sources in the last

1 year

Focus on Emerging Technologies

• On 28th June 2018, Volvo Trucks North America, together with FedEx and the North Carolina Turnpike Authority, announced the release of an

advanced driver assistance system (ADAS) technology to conduct on-highway truck platooning consisted of three trained, professional truck drivers in

Volvo VNL tractors, each pulling double 28-foot trailers as part of ongoing research collaboration.

• On 27th June 2018, Volvo Penta unveiled a hybrid concept for its IPS propulsion system to enable zero emission running for marine vessels which is the

electric-only mode allowing entry into environmentally sensitive zones, as well as offering enhanced onboard comfort and boat handling characteristics.

• On 16th June 2018, Volvo Penta revealed a pioneering self-docking yacht technology of the rapid technical development in the field of automation within

the Volvo Group.

• On 7th May 2018, Volvo Buses launched a new version of its all-electric bus called the Volvo 7900 Electric that provides better preconditions than ever to

switch to sustainable, quiet and emission-free public transport.

• On 13th September 2018, Volvo Trucks introduced a cloud-based service, Connected Safety, which allows Volvo trucks and Volvo cars to automatically

alert each other to hazardous traffic situations.

• On 16th December 2018, Volvo Group detected an emissions control component reducing its ability to convert nitrogen oxides (NOx) as efficiently as

intended, which in turn could cause the engines or vehicles to exceed emissions limits for NOx.

• On 8th June 2017, Volvo Trucks developed a new self-steering truck which is used to transport newly harvested sugar-cane is steered with great precision

through the fields in order to avoid damaging the young plants.

Page 7: Volvo Account Deep Dive Analysis - Amazon S3€¦ · Gothenburg, Sweden –Technology Center Deep Dive: Technology Leadership Technology Leadership 14 Key Executives (Including CXO

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AGENDA

Details on Global Technology Footprint

Key buying locations

Region wise insights for global Technology centers – Headcount,

Activities and key products developed

Account Profile

Business & Financial Overview

Outsourcing Vendor Analysis

Globalization Footprint

Rolodex04

Recommendations05

01

02

03

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Summary: Volvo – Technology Globalization Footprint

Key Buying Locations Bengaluru Area(India), Brussels Area(Belgium) Chile, Gent Area(Belgium), Gothenburg(Sweden) and Lyon

Area(France) are the key buying centers that are primarily involved in the development of Automotive Electrical

Components, development of assembly equipment, development and calibration of engine control software

Key Engagements

Some of the key activities are Development of plant models for different charging standards

Development and monitoring of the vehicle validation plan

Development of assembly equipment (fixtures, hand tools, assembly line, etc) in cooperation with tooling department

Monitor the calibration and inventory of test instruments

Functional test and Homologation test for lighting system and cleaning system

Key StakeholdersJonny Salo-Premmert

CIO at Volvo Penta

Note: Analysis is based on the news articles, journals and other similar sources updated in December, 2018

Lars StenqvistCTO at Volvo Car Group

Peter GranqvistCTO & Senior Vice President

Bogdan MincicCIO at Volvo Trucks

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Global Technology Footprint of Volvo Corp

17Total Number of Technology Hotspots

14500 – 15000Total Number of Technology workforce

Installed

6Number of Buying Centers

Note: The represented data illustrates the number of centers by Geography and the bubble size is proportional to overall HC Installed in the area.

Note: Global Footprint Data curated by DRAUP and updated in December, 2018

Sweden has 41% of the total engineering workforce; Bengaluru Area(India), Brussels Area(Belgium), Chile, Gent Area(Belgium), Gothenburg(Sweden) and Lyon Area(France) are the key buying centers

Sweden

No. of Centers : 2

Head Count : 6K - 7K

France

No. of Centers : 1

Head Count : 2K - 3K

No. of Centers : 2

Head Count : 1K - 2K

USA

India

No. of Centers : 1

Head Count : 1K - 2K

Brazil

No. of Centers : 1

Head Count : 500 – 1K

Japan

No. of Centers : 1

Head Count : 500 - 1K

No. of Centers : 1

Head Count : 500 – 1K

Poland

No. of Centers : 2

Head Count : 200 – 300

Belgium

China

No. of Centers : 2

Head Count : 200 - 300

Mexico

No. of Centers : 1

Head Count : 50 – 100

Canada

No. of Centers : 1

Head Count : 50 - 100

Australia

No. of Centers : 1

Head Count : 50- 100

Chile

No. of Centers : 1

Head Count : 10- 50

Page 10: Volvo Account Deep Dive Analysis - Amazon S3€¦ · Gothenburg, Sweden –Technology Center Deep Dive: Technology Leadership Technology Leadership 14 Key Executives (Including CXO

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Gothenburg, Sweden is the major Hub for Volvo

Note: Global Footprint Data curated by DRAUP and updated in December, 2018

Note: The represented data has been collected from Draup Proprietary Global Footprint Database updated as of December, 2018.

SATELLITE

HUB

OUTPOST

Brussels Area

Curitiba Area

Quebec

Beijing Area

Shanghai Area

Lyon Area

Bengaluru Area

Gothenburg

Washington D.C. Metro Area

North Carolina Area

Wroclaw, Lower Silesian District

Ciudad Lopez Mateos Area

Gent Area

Lund

Brisbane

Chile

Japan

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Gothenburg, Sweden – Technology Center Deep Dive: Center Overview

Note: The above analysis is based on the DRAUP’s Executive Module, updated in December, 2018

Location

Gothenburg, Sweden

Technology Headcount

1400 – 1500 FTEs

Center Level

Hub; HQ

Average Salary Cost / FTE

350 K Swedish Krona / Annum

• Gothenburg, Sweden is primarily involved in the Function development and calibration of engine control

software.

• Simulations and analysis of vehicle dynamics as a part of Volvo vehicle product streams, both off-line analysis with

ADAMS/Car and real time simulations with VI Grade dynamic simulator.

• Develop the complete vehicle thermal modelling platform which includes integrated hardware and control models

of Battery, El motors, IC engine, cooling systems and climate systems.

• Development of plant models for different charging standards.

• Testing of software and calibration in cold and warm climes, high altitudes etc.

Top leaders Major Engineering Talent Profiles

Calibration

Engineer

Design

EngineerPeter Granqvist

CTO & Senior Vice President

Quality

EngineerLars Stenqvist

CTO at Volvo Car Group

Page 12: Volvo Account Deep Dive Analysis - Amazon S3€¦ · Gothenburg, Sweden –Technology Center Deep Dive: Technology Leadership Technology Leadership 14 Key Executives (Including CXO

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Gothenburg, Sweden – Technology Center Deep Dive: Technology Leadership

Technology Leadership

14 Key Executives (Including CXO and VPs)

CXO

Michael Fleiss Vice President Vehicle Hardware

Johan Larsson Vice President, Indirect Material &

Services

Note: The above analysis is based on the DRAUP’s Executive Module, updated in December, 2018.

Note: Executives mentioned above are some of the key Technology Leaders in the organization and not exhaustive. Exhaustive list will be available in Draup Platform

Anders Tylman - Mikiewicz Vice President Consumer Digital

Hans Lindh Vice President Design Operation

Jan-Erik Larsson Vice president R&D China

operations

Lars StenqvistCTO at Volvo Car Group

Peter GranqvistCTO & Senior Vice President

VP

Ödgärd Andersson

Vice President Vehicle SW &

Electronics

Sven-Erik Svensson Vice President, Vehicle

Engineering

Andreas Eriksson Vice President AE Development

Engineer

Semeese Vice President Manufacturing

Engineering

Ebba Maria Thunberg Vice President Colour & Material

Design

Cecilia Larsson Vice President R&D

Magnus Leiner Vice President, Global

Procurement SW & Electronics

Page 13: Volvo Account Deep Dive Analysis - Amazon S3€¦ · Gothenburg, Sweden –Technology Center Deep Dive: Technology Leadership Technology Leadership 14 Key Executives (Including CXO

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DETAILS

Globalization Technology Footprint (1/4)

Buying CentersLOCATIONTECHNOLOGY

HEADCOUNT

Note: Global Footprint data curated by DRAUP and updated in December, 2018. Technology Headcount includes research and product engineering talent

Gothenburg, Sweden 6000 – 6100

• Implementation of VHAL(Vehicle Hardware Abstraction Layer).

• Development and calibration of engine control software.

• Development of plant models for different charging standards.

Lyon Area, France 2500 – 3000

• Development of non metallic technology includes weathering and ageing, corrosion resistance, mechanical tests

functional fluids biomaterials and glazing polymers.

• Development and monitoring of the vehicle validation plan.

Bengaluru Area, India 1400 – 1500• Development of Automotive Electrical Components.

• Define milestones for Vehicle Connectivity software test plan.

Greensboro/Winston-

Salem, North Carolina

Area, United States

1200 – 1250

• Define layout inspections on parts and tooling used in fabrication and assembly.

• Develop motion control algorithms.

• Implementation and industrialization of wiring harness designs.

Curitiba Area, Brazil 800 – 1000

• Implementation of documents such as drawings, technical regulations, CAD models, installation documentation and

product structure.

• Development of both electrical and mechanical designs of harnesses taking interfaces requirements, physical constraints

and final product dynamics aspects.

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DETAILS

Globalization Technology Footprint (2/4)

Buying CentersLOCATIONTECHNOLOGY

HEADCOUNT

Note: Global Footprint data curated by DRAUP and updated in December, 2018. Technology Headcount includes research and product engineering talent

Japan 700 – 800 • Supervision of activities for handling of ELV Recycle Law-Related System.

• Investigation of vehicle incidents such as vehicle fire, vehicle accidents.

Wroclaw, Lower Silesian

District, Poland500 – 600

• Construction of design buses and quickly solve problems occurring on the production line.

• Troubleshooting of complex problems in lab/rig and truck environment.

Washington D.C. Metro

Area, United States400 – 500

• Specification of corrosion protection including galvanizing and e-coat, paint priming, paint, sealants, anti- vibration

materials, insulation, heat shielding, grommets, plugs, baffles etc.

• Design tools and fixtures to support manufacturing cells.

Shanghai Area, China 150 – 200

• Functional test and Homologation test for lighting system and cleaning system, including road test and wind tunnel test.

• Define high voltage system related testing( commissioning test leader, trouble shooting, electric drive testing, hot/cold

expedition coordinator, HV safety certification...)

• Design of Body & comfort electronics.

Gent Area, Belgium 150 – 200 • Development and implementation of a bumper assembly line with 4000 sqm and line speed of 30JPH.

• Development of assembly equipment (fixtures, hand tools, assembly line, etc) in cooperation with tooling department.

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DETAILS

Globalization Technology Footprint (3/4)

Buying CentersLOCATIONTECHNOLOGY

HEADCOUNT

Note: Global Footprint data curated by DRAUP and updated in December, 2018. Technology Headcount includes research and product engineering talent

Brussels Area, Belgium 100 – 150 • Define production techniques within a certain part of the assembly plant.

• Monitor the calibration and inventory of test instruments.

Ciudad Lopez Mateos

Area, Mexico50 – 80

• Inspections of tools and services for analysis, such as Care Track, Volvo oil analysis and MATRIS analysis, to monitor

your machine.

Beijing Area, China 50 – 70

• Define Vehicle nameplate and Engine code punching management on FE and Renault D models.

• Design fabrication engineering Process and Layout to achieve sound LOB, line investment, jig & fixture drawing and

improvement.

Quebec, Canada 50 – 60

• Diagonization and repair of Electrical, HVAC, Suspension, Pneumatic and Brake Systems.

• Demonstration of the vehicle station by station according to the industrial swings.

• Development of the homologation program for new vehicles.

Brisbane, Australia 50 – 60

• Design Volvo tools which offers Genuine Volvo Parts that minimise disruption, most profitable and to maintain the truck

in optimal condition.

• Design of Automotive exhaust components.

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DETAILS

Globalization Technology Footprint (4/4)

Buying CentersLOCATIONTECHNOLOGY

HEADCOUNT

Note: Global Footprint data curated by DRAUP and updated in December, 2018. Technology Headcount includes research and product engineering talent

Lund, Sweden 30 – 40

• Define Active Safety & Vehicle Dynamic Functions with cloud based safety systems and automated driving.

• Support the vehicle fleet with fault tracing.

• Development of a model for real-time routing for electric delivery trucks with a solution method such as dynamic

programming or another suitable approach.

Chile 10 – 20• Design of tools to drive up productivity and profitability in urban fleets and drive down the emission of pollutants.

• Development of exclusive and innovative methodology based on the reality and needs of truck drivers.

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AGENDA

Outsourcing Vendor’s deals analysis

Total headcount outsourced to service providers

Key vendors working with Volvo

Key Opportunity areas to target

Account Profile

Business & Financial Overview

Outsourcing Vendor Analysis

Globalization Footprint

Rolodex04

Recommendations05

01

02

03

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Summary: Technology Services Outsourcing

Key partners

Key Activities

PES is highly outsourced segment with 75% of the total outsourcing size

Major workloads across PES are around the below listed areas Development of application software for ECU (Electronic Control Unit) and BBM (Body Builder Module) with new architecture

(AUTOSAR) of the trucks

Development of software for an ECU (Electronic Control Unit) HIOM (Hybrid Input Output Module)

Design and manufacturing of custom HYDRAULIC CYLINDERS such as Double Acting, Single Acting and Truck hydraulics

Design of Automotive exhaust components

Design and Development of Rear Heat Shield under muffler

Note: Analysis is based on the news articles, journals and other similar sources updated in December, 2018

Key Opportunity Areas Vendors should target on Electromobility and Automation technology related engagements with Volvo

AF Group is the major vendor for Volvo in Product Engineering Services Segment which are involved in the Design of

HVAC for Buses, Design of Tools for Heavy Vehicles Assembly Line

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Vendor Analysis – AF Group is the major outsourcing partner for Volvo

5000 – 5500Workforce split across

Outsourcing Partners27 Active Outsourcing Partners

Note - Above analysis is based on the DRAUP’s proprietary Outsourcing module, updated in December, 2018. The above Outsourcing data are only represented for Volvo.

Note - ADM – Application Development & Maintenance, IMS – Infrastructure Management Services, CSI – Consulting & System Integration, PES –Product Engineering Services

Top Outsourcing Partners

Bengaluru Area, India

Chennai Area, India

Gothenburg, Sweden

Greensboro/Winston-Salem, North

Carolina Area, United States

Kreisfreie Stadt Aachen Area, Germany

Lyon Area, France

Mumbai Area, India

Mysuru Area, India

National Capital Region, India

Pune Area, India

Stuttgart Area, Germany

Uddevalla, Sweden

Bengaluru Area, India

Brussels Area, Belgium

Chile

Gent Area, Belgium

Gothenburg, Sweden

Lyon Area, France

Key Buying LocationsKey Provider Locations Outsourcing Intensity by Sub vertical

PES75%

IMS14%

ADM6%

CSI5%

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Key Vendor Engagements Snapshot (1/3)

Note - Above analysis is based on the DRAUP’s proprietary Outsourcing module, updated in December, 2018.Outsourcing details mentioned above are only some of the ongoing projects and not exhaustive.

Note – Outsourcing analysis is based on curation and analysis of deals data from various secondary sources followed by computation through Machine Learning models and manual effort. Deals are then

tagged to Draup’s Predefined Sub service segments and HC estimation is a result of estimation models based on aggregation of data collected from various secondary sources

PES :

• Design of HVAC for Buses.

• Design of Tools for Heavy Vehicles Assembly Line.

• Verification and Analysis of Electric Propulsion System for Cars.

• Development of simulated heat testing methodology/equipment.

• Design of Components used in Wheel Suspension and Chassis.

• Development of EGR Pipes and Mixers in Trucks.

PES, 100%

Split of Workforce by Sub Segment

Key Delivery Locations

Sweden(Gothenburg,

Uddevalla)

IMS :

• Configuration and management of standard Linux file system (VMDK, NFS, ISCSI).

• Administration of Juniper NSM, Juniper SRX/ISG(Firewall),Pulse Secure(SSLVPN),Blue Coat Proxy, AS Load Balancer, Palo Alto, Cisco

switched and routers devices.

CSI :

• Administration of SAP Business Objects and Business Intelligence.

• Define SAP enterprise Business Intelligence Business object tool used to generate strategic reports for decision making.

ADM :

• Development of Project management internal application.

• Development of Site provisioning tool used for order management.

PES :

• Analysis of chassis structure and vehicle variant combination through Volvo PDM tools.

• Validation of the functionalities in instrument cluster (IC).

IMS, 81% CSI, 11%

ADM, 6% PES, 2%

Split of Workforce by Sub Segment

Key Delivery Locations

India(Bengaluru Area,

Chennai Area, National

Capital Region)

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Key Vendor Engagements Snapshot (2/3)

PES :

• Development of Seat recliner concept development.

• Creation of parametric Master sections over various BIW area, Door Packaging, Latch rod and Bowden cable proposals and packaging,

Glass guide rails and glass adapter, Dynamic seals over cars(Primary seal, Secondary seal, Margin seal, Waist Seals concept brackets for

Seat mountings.

PES, 100%

Split of Workforce by Sub Segment

Key Delivery Locations

Gothenburg, Sweden

Note - Above analysis is based on the DRAUP’s proprietary Outsourcing module, updated in December, 2018.Outsourcing details mentioned above are only some of the ongoing projects and not exhaustive.

Note – Outsourcing analysis is based on curation and analysis of deals data from various secondary sources followed by computation through Machine Learning models and manual effort. Deals are then

tagged to Draup’s Predefined Sub service segments and HC estimation is a result of estimation models based on aggregation of data collected from various secondary sources

PES :

• Design and Development of Front Suspension and related components.

• Design and Development of Vehicle wiring Harness.

• Fatigue Analysis of complete Chassis and Body Structure.

PES, 100%

Split of Workforce by Sub Segment

Key Delivery Locations

Bengaluru Area, India,

Gothenburg, Sweden

PES :

• Development of new feature for Instrument Cluster.

• Development of Embedded control units.

PES, 100%

Split of Workforce by Sub Segment

Key Delivery Locations

Lyon Area, France,

Gothenburg, Sweden,

Stuttgart Area, Germany

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Key Vendor Engagements Snapshot (3/3)

Note - Above analysis is based on the DRAUP’s proprietary Outsourcing module, updated in December, 2018.Outsourcing details mentioned above are only some of the ongoing projects and not exhaustive.

Note – Outsourcing analysis is based on curation and analysis of deals data from various secondary sources followed by computation through Machine Learning models and manual effort. Deals are then

tagged to Draup’s Predefined Sub service segments and HC estimation is a result of estimation models based on aggregation of data collected from various secondary sources

PES :

• Development of Powertrain and Crankshaft.

• Implantation of additional hydrostatic System.

PES, 100%

Split of Workforce by Sub Segment

Key Delivery Locations

Gothenburg, Sweden,

Lyon Area, France

PES :

• Performance and Consumption Simulation of Hybrid and Electric Vehicles.

• Development of 3D Design.

• Production of Models and Drawings for Brackets, Hose Routing, Hydraulic Piping.

PES, 100%

Split of Workforce by Sub Segment

Key Delivery Locations

Lyon Area, France,

Gothenburg, Sweden

PES :

• Development of Black Trim components.

PES, 100%

Split of Workforce by Sub Segment

Key Delivery Locations

Gothenburg, Sweden

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AGENDA

Key Technology Stakeholders

Key Technology stakeholders & Leadership

Account Profile

Business & Financial Overview

Outsourcing Vendor Analysis

Globalization Footprint

Rolodex04

Recommendations05

01

02

03

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Volvo – Technology Leadership

Maximilian Missoni Vice President Exterior Design

Ödgärd Andersson Vice President Vehicle SW & Electronics

Linn Fortgens VP, Head of Investor Relations at Volvo Car

Corporation

Semeese (L.) Vice President Manufacturing Engineering

Michael Fleiss Vice President Vehicle Hardware

Johan Larsson Vice President, Global Procurement - Indirect

Material & Services

Jan-Erik Larsson Vice president R&D China operations

Anders Tylman-Mikiewicz Vice President Consumer Digital

Kajsa Dahlberg Gardiner VP Digital Delivery Care by Volvo

Note: The above analysis is based on the DRAUP’s Executive Module, updated in December, 2018.

Note: Executives mentioned above are some of the key Technology Leaders in the organization and not exhaustive. Exhaustive list will be available in Draup Platform

Frej Bergnehr Vice President of Global HR Delivery &

Development

Mats Andersson Vice President, Propulsion Power Systems

Engineering

Ebba Maria Thunberg Vice President Colour & Material Design

Lars Stenqvist

CTO at Volvo Group

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AGENDA

Key Opportunities

Electromobility

Automation

Yacht Technology

Connected Cars

LiDAR Technology

Account Profile

Business & Financial Overview

Outsourcing Vendor Analysis

Globalization Footprint

Rolodex04

Recommendations05

01

02

03

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By analysing Volvo focus, DRAUP has identified the following key opportunity areas (1/2)

Strategic Key Opportunity Segments

Note - Above analysis is based on the DRAUP’s proprietary services module, updated in December, 2018.

Automation

• In future Volvo decides to use the concept of

Platooning that reduce CO2 emissions and

saves up to 15% of truck’s fuel

consumption involving Volvo trucks together

with trucks from other brands.

• In case of Brazilian sugar cane farmer’s

crops, using an automated function the truck

follows the harvesters footsteps saving

thousand of dollars and the driver accelerates

and brakes is supported by automatic

steering.

Electromobility

• Volvo presently focuses on Electric

vehicles will significantly lower carbon

emissions, noise and other emissions

and to be the preferred choice for most

applications.

• In October 2018, Volvo Buses launched

a new version of its all-electric bus, the

Volvo 7900 Electric that will be the base

for the electrification of trucks, construction

equipment and other industrial and marine

applications.

• Volvo is already in the future with its

offering of hybrid buses, fully electric

buses and complete transport

solutions including charging

infrastructure.

Yacht Technology

• Volvo currently aimed at autonomous

technology to make waves in the yachting

world.

• Volvo Penta unveiled the self-docking system

where a 68 ft yacht slipped between two of

Volvo's Ocean Race 65 racing vessels that

allows sensors and computer controls capable

of changing wind and water conditions,

tweaking power and steering of Volvo's IPS

drive to ensure the yacht is berthed safely.

• In future the autonomous system will be

designed in such a way that can be paused at

any time to hold the yacht in position.

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By analysing Volvo focus, DRAUP has identified the following key opportunity areas (2/2)

Strategic Key Opportunity Segments

Note - Above analysis is based on the DRAUP’s proprietary services module, updated in December, 2018.

LiDAR Technology

• Volvo Cars announces partnership with

Luminar and introduced LiDAR a sensor

technology that can detect objects over a

range of up to 250 meters.

• LiDAR technology includes a type of sensor

that uses pulsed laser signals to detect

objects and is a crucial element in creating

safe autonomous vehicles.

• Volvo in future aims to create safe

autonomous cars by using autonomous

technology.

Connected Cars

• Volvo is now focusing on highly scalable and

global platform called Connected Vehicles

Cloud to provide digital vehicle services and

connected services.

• Ericsson and Volvo signed a five-year

connected cars deal offering Cloud services to

the vehicles.

• This platform enables wide range of features in

the field of telematics, infotainment,

navigation, automation, and fleet

management by removing complexity in areas

such as data legislation and storage

management and improving services latency.

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ADM, 64%

ADM, 100%

ADM, 100%

ADM, 32%

ADM, 55%

ADM, 42%

CSI, 17%

CSI, 63%

CSI, 45%

CSI, 58%

IMS, 36%

PES, 100%

PES, 100%

PES, 100%

PES, 100%

PES, 100%

PES, 83%

PES, 100%

PES, 100%

PES, 100%

PES, 5%

PES, 100%

AXISCADES

Tarang Software Technologies

GlobalEdge Software

Automotive Robotics

L&T TS

Wipro

KPIT

Infosys

CGI Group Inc.

TCS

Etteplan

FEV

Tech Mahindra

Mindtree

Capgemini

Assystem

Note - Above analysis is based on the DRAUP’s proprietary Outsourcing module, updated in December, 2018.

Appendix: Service providers having outsourcing workforce of less than 3% of Volvo total outsourcing size

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Appendix: Inclusions and Definitions of “Sub – Service Segments”

Note - Above analysis is based on the DRAUP’s proprietary services module, updated in December, 2018.

Application Development & Maintenance (ADM)

Application DevelopmentInvolves Defining, designing, and building applications tailored to meet client business requirements.

Services include Solution development, application whitelisting, application control, application security,

risk mitigation

Testing Services

Software testing involves the execution of a software component or system component and evaluate it

against one or more properties of interest to ensure its smooth functioning and capability of seamless

integration across various technologies. Services include Software testing, Mobile testing, Cloud based

testing, functional testing, engineering testing, user acceptance testing (UAT), non-functional testing,

Model testing

Application ModernizationModernization services help modernize legacy systems to enhance flexibility, mitigate risk, minimize

disruption, and lower costs. Application Rationalization, Re-hosting, application re-engineering, Field

Remediation, Data migration, Re-structuring of applications

Application Maintenance

Application Maintenance helps clients with proper maintenance of the existing applications across areas

of application operations management, support, updation and availability. Services include Pro-active

maintenance, TCO Reduction, Alignment with industry standards, corrective maintenance, SLA

Management, Knowledge management

Custom Application Development Custom build application development services for an end client

Mobile ServicesUse of Mobile medium by enterprises through building innovation mobile solutions to target customers by

offering bundled services. End-to-end solutions and services to help companies capture insight from

mobile devices to fuel innovation.

Product Engineering Services (PES)

Product Engineering ServicesServices to design and deliver a new wave of intelligent products with an aim to undergo process of

innovation, re-engineering, process optimization, localization, customization and cost rationalization

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Appendix: Inclusions and Definitions of “Sub – Service Segments”

Note - Above analysis is based on the DRAUP’s proprietary services module, updated in December, 2018.

Consulting & System Integration (CSI)

Advisory Services

Consulting and advisory services that enables an organization to across business process transformation

to improve performance, increase effectiveness, reduce costs and improve resilience. Services mainly

involve business advisory, business and functional transformation, IT consulting and risk and compliance

services

Package Software ConsultingIT Consulting and Advisory services across enterprise level package software solutions. Services to

evaluate which package solutions would solve an enterprise wide work area and also evaluating its

integration capabilities across the current application stack used by an organization

System Integration Services

Integration, implementation or deployment of a software solution/hardware for an enterprise and ensuring

its proper functioning in line with its integration with various other solutions or hardware currently in use

by the enterprise. Services include Cloud Integration, Data Integration, EAI (enterprise application

integration), Integrated Communication, Network Integration, Integrated Security Software, Service-

oriented architecture, etc.

Application Portfolio Optimization

Application Portfolio Optimization services help companies ensure that their portfolio of IT projects,

applications and infrastructure are providing cost-effective benefits to the organization. Aim is to identify

disparate applications and ensure ways to integrate them into a core enterprise solution. Services include

mapping application to business functions and its importance, cost management analysis, dependency

mapping of an application, etc.

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Appendix: Inclusions and Definitions of “Sub – Service Segments”

Note - Above analysis is based on the DRAUP’s proprietary services module, updated in December, 2018.

Infrastructure Management Services (IMS)

Server, Network, Desktop

Management

IT Infrastructure Management Services (IMS) offers a suite of reliable, responsive, flexible and proven

infrastructure services and solutions that deliver differentiated value across management of an enterprise

hardware components such as Servers, Network, Desktops. Its aims to maintain and manage a client's IT

applications and systems and ensure 24/7 availability

Datacenter ManagementDesign and management of data centers across heterogeneous platforms. Services include Server / OS

management, Database Management, Middleware management, Storage and Backup management,

Production Operations, Mainframe Services, Hosting, etc.

Disaster ManagementUse of services and solutions to ensure the presence of a holistic, proactive and technology-driven

strategy for multi-disaster management. Services can be across enterprise data, backup, IT systems, Real

time monitoring of IT solutions and hardware, etc.

Remote Infrastructure ManagementRemotely managing information technology (IT) infrastructure such as workstations (desktops, laptops,

notebooks, etc.), servers, network devices, storage devices, IT security devices, etc. of a company

High End Technical SupportHigh level product and services support provided by qualified engineers. Services Tech support services,

Remote Diagnostic Services, Set-up and Configuration, Patch Management, Service pack and Database

Upgrades, Warranty Management/ RMA, Engineer Dispatch Management

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Appendix: Inclusions and Definitions of “Sub – Service Segments”

Note - Above analysis is based on the DRAUP’s proprietary services module, updated in December, 2018.

Reporting & Analytics

Reporting & DashboardApplications enabling tracking and monitoring the health of an organization or department by reporting

on certain KPIs, business metrics, and analytics. Reporting & dashboards are majorly used to

summarize information thereby providing a glance into enterprise's business performance

BI / Analytics

BI / Analytics encompasses a wide variety of tools, applications and methodologies that enable

organizations to collect data from internal systems and external sources, prepare it for analysis, develop

and run queries against the data. It enables discovery, interpretation, and communication of meaningful

patterns in data to help relevant stakeholders to make more informed business decisions.

Data QualityData Quality services enables delivery of clean, trusted data to ensure enterprises meet their projects

and business objectives. Such applications and services enable effective data extraction, transformation

and loading along with superior data management.

Digital Services

SocialEnd-to-end solutions and services to help companies capture insight from social media engagements to

fuel innovation.

Advanced AnalyticsHigh-end Advance Analytics solutions being leveraged which enable an organization to run analysis on

their customer data and enables Predictive and Prescriptive analysis. Such solutions can be SAS

Analytics, SAP, etc.

Internet-of-Things (IoT)Solutions and platforms which enable an enterprise to transfer and run data over a network through web

of inter-connected devices and technologies such as mobile, sensors, database, CRM etc.

Machine Learning (ML) / Cognitive

Computing (CC) / Artificial

Intelligence (AI)

Use of Artificial Intelligence solutions and services by an enterprise solving a particular business function.

Example might be use of IBM Watson by an enterprise. Also includes Enterprises leveraging solutions

which studies various patterns and computational learning and processes a particular task based on the

identification of a particular pattern. Enables a particular task to be done without any human intervention

Robotics Process Automation (RPA)

Robotic process automation (RPA) is the application of technology that allows employees in a company

to configure computer software or a “robot” to capture and interpret existing applications for processing a

transaction, manipulating data, triggering responses and communicating with other digital systems

automatically