VOLVO CAR GROUP – FINANCIAL REPORT jan-dec 2013

HÅKAN SAMUELSSON, PRESIDENT & CEO HANS OSCARSSON, CFO

Volvo Car Group – highlights 2013

• Full-year operating income of 1,919 MSEK

• Strong performance in the Chinese market

• Launch of six renewed models and Drive-E

• Cost control

• Retail sales flat

• Industrial footprint established in China

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Industry trends 2013

3

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Industry development* (total passenger cars 000’s)

2013 2012 Change,%

China 17,145 14,972 14.5%

USA 15,520 14,313 8.4%

EU 20 12,004 12,265 -2.1%

of which Sweden

270 280 -3.7%

• Growth in Chinese and US car market

• Car sales declined in Europe

• Swedish car market declined

*Preliminary figures

Volvo car Group – sales performance 2013

• China: Significant growth and increased market share

• USA: Sales decline also due to limited product portfolio

• Europe: Market share flat in a slightly decreasing market

• Sweden: Increased market share and thereby securing position as market leader

Retail sales (number of cars sold)

2013 2012 Change,%

China 61,146 41,989 45.6%

USA 61,233 68,079 -10.1%

Europe (EU20) 226,095 227,027 -0.4%

Of which Sweden 52,260 51,832 0.8%

Rest of World 79,366 84,856 -6.5%

Total 427,840 421,951 1.4%

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Volvo Car Group – Financial highlights 2013

SEK millions

(unless otherwise stated) 2013 2012

Revenue 122,245 124,547

Gross Income 20,311 19,947

Operating Income (EBIT) 1,919 66

Operating Margin (%) 1.6% 0.1%

Net Income 960 -542

Operating & Investing Cash Flow 21 -4,929

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Volvo Car Group – Net Revenue 2013 vs. 2012

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

2013 2012

Revenue (msek)

122,245 124,547PositiveSales mix

NegativeVolume

Exchange rates

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Volvo Car Group – Operating income 2013 vs. 2012

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PositiveSales mixLower cost

levels

NegativeVolume

Exchange rates

0

500

1 000

1 500

2 000

2 500

Operating income (EBIT) (msek)

1,919

66

2013 2012

Volvo Car Group – Cash flow 2013 vs. 2012

-6 000

-5 000

-4 000

-3 000

-2 000

-1 000

0

1 000

Cash Flow - operating & investing (msek)

21

-4,929

2013

2012

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• Increased operating income

• Continued investments in

transformation programme

Volvo Car Group – Financial summary 2013

• Result – a turnaround from the half year loss

• Operating income (EBIT) of SEK 1,919 million

• Positive sales mix as well as cost focus

• Continued investments to safeguard

transformation journey

• Financing in place

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Volvo Car Group – Outlook 2014

• Stay in black and sales growth

• Turnaround in US

• Launch of the all new XC90 on SPA

• Our transformation plan is working

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