Volvo Group Purchasing

Supplier days Russia June 2017

1 2018-08-30

VOLVO GROUP PURCHASING

Round table for automotive suppliers in Kaluga

Volvo Group Purchasing

The Volvo Group is one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The Volvo Group also provides complete solutions for financing and service.

Volvo Group Purchasing

Our mission

Driving prosperity through

transport solutions

Driving prosperity through

transport solutions

Our mission

Volvo Group Purchasing

Be the most desired

and successful transport solution

provider in the world

Our vision

Volvo Group Purchasing

The Volvo Group, which employs about 95,000 people, has production facilities in 18 countries and sales of products in more than 190 markets.

Kaluga Plant

August 2018

Volvo Group Purchasing

• GTO Europe & Brazil Manufacturing Plant

• Designed capacity - 15 000 trucks/year

• Total area of 40 000 m²

• For local (Russia, Kazakhstan, Belarus) and export

markets

• Multi brand: Volvo & Renault

• Multi process: welding, paint and assembly

• 648 employees :

575 Blue Collars (o/w 15% women)

73 White Collars (o/w 50% women)

49% with less than 1 year seniority

WHO WE ARE

Volvo Group Purchasing

Shaping the Volvo Group Production Cluster in Kaluga

2007 Investment Agreement on Truck Plant construction

2009 Inauguration of Truck Plant

2009 Volvo Group Truck Center open

2012 Custom & Logistics Terminal at Plant Territory open

2013 Volvo CE Plant inaugurated

2014 Cab Factory launched

Total Investments over 300 Mln Euro

Volvo Group Purchasing

Key milestones of the plant

20 000th Volvo

10 000th Volvo

7 months stop

Volvo Group Purchasing

Total new heavy trucks market, 2000- 6m 2018

Sources: TDDB, AEB, Registrations, own data.

96 165

101 177

35 238

30 842

58 841

73 106

103 595

93 221

54 967

35 749

60 884

28 312

60 129

Volvo Group Purchasing

New heavy truck market, 2000- 6m 20187 brands, Sources: 2005-2007 TDDB and Import; 2008-2018 AEB and Registrations

DAF 11,3%

Iveco 4,0%

MAN 17,7%

MB 15,5%

Renault 4,1%

Scania 21,4%

Volvo 26,0%

Volvo Group Purchasing

Production Volumes

Volvo Trucks 1868

Renault Trucks 5

2014

2015

Volvo Trucks 391

Renault Trucks 0

2016

Volvo Trucks 1274

Renault Trucks 0

2017

Volvo Trucks 4668

Renault Trucks 0

People

481

256

346

648

Volvo Group Purchasing

Yekaterinburg

St-Petersburg

Kaluga

Moscow

Orel

Kaliningrad

PetrozavodskArkhangelsk

TverSmolensk

Bryansk

N.Novgorod

Syktyvkar

PermBelgorodVoronezh Kazan

Rostov-on-Don

Volgograd SaratovTogliatti

Samara

UfaKrasnodar

Nevinnomyssk

MinVody

ChelyabinskTyumen

Surgut

Omsk

Novosibirsk

Novokuznetsk

Krasnoyarsk

ChitaUlan-Ude

Vladivostok

N. Chelny

Ulyanovsk

Barnaul

Novy Urengoy

Khabarovsk

V. Novgorod

Cherepovets

Sochi

AbakanBlagoveshensk

Moscow

St. Petersburg

Ekaterinburg

Irkutsk

Yaroslavl

Volvo Group Trucks Service Network in Russia№1 in geographical coverage among Big 7

Novorossiysk

Murmansk

KemerovoMakhachkala

Vologda

Borovichi

Kirov

Magadan

Volvo own Truck Center 3

Dual Brand Private WS 67

Volvo mono-brand Private WS 1

Renault mono-brand Private WS 3 (to become Dual Brand in 2017)

Kaluga

Penza

Volvo Group Purchasing

The most updated truck range in the industry

Volvo Trucks models FH, FM, FMX, FL, FE

Renault Trucks models T, K, C, D

Volvo Group Purchasing

Sourcing strategy for Russia

Support Volvo Group localization strategy

Develop Business together

Long term Business relationship

Positive approach on extending Business scope

Ongoing Pre Study to identify Suppliers / Parts for STEP 3 Plan

Volvo Group Purchasing

Thank you