key events H1 2015

US New plant in South Carolina announced

Sweden Three shifts in Torslanda, 1,500 new jobs
added
New regional structure

Consolidation of the Chinese industrial entities

All-new XC90
All-new XC90 excellent start

Positive impact on profitability

Delivery to customers

VOLVO CAR GROUP; JAN-JUN 2015

performance H1 2015 strong Ebit

Sales slightly up
Strong performance in Sweden and Western Europe
US stabilizes

China slowing down

Improved Operating Income (EBIT) up to MSEK

1,660 (968)
Good Cash Flow management

VOLVO CAR GROUP; JAN-JUN 2015

Chinese entities consolidated

The Chinese industrial entities have been
incorporated into Volvo Car Group and are
fully consolidated from January 1, 2015
Reflects Volvo Cars global operations
Only OEM to consolidate
Volvo Cars increased its ownership up to 50%
Purchase price of BSEK 2.2

VOLVO CAR GROUP; JAN-JUN 2015

Financials h1 2015

VOLVO CAR GROUP; JAN-JUN 2015

sales slight improvement

Retail sales
(number of cars sold)

H1 2015

H1 2014

Change,%

Western Europe (excl. Sweden)

93,398

87,630

6.6

China

38,292

38,751

-1.2

Sweden

32,460

30,511

6.4

U.S.

29,367

29,331

0.1

Other markets

38,767

42,790

-9.4

232,284

229,013

1.4

Total

VOLVO CAR GROUP; JAN-JUN 2015

Financial highlights H1 2015

SEK millions

H1 2015

H1 2014

Revenue

75,215

66,985

Gross Income

16,096

11,247

1,660

968

2.2

1.4

877

265

-1,044

-5,504

Operating Income (EBIT)

Operating Margin (%)

Net Income

Operating & Investing Cash Flow*

*Adjusted for investments in marketable securities
VOLVO CAR GROUP; JAN-JUN 2015

EBIT Improvement driven by sales mix

2,500

1,060
-658

2,000

1,660
1,500
1,000

968

290

H1 2014 EBIT

Volume

500

msek
VOLVO CAR GROUP; JAN-JUN 2015

Sales Mix

Margin,
Exchange, Fixed
Cost and Other

H1 2015 EBIT

CASH Flow good management

25,000
7,765

20,000

291

21,127

Exchange
on Cash

Cash Balance
& Marketable
Securities H1
2015

-8,130

659

17,002

3,540

15,000

10,000
5,000
0

msek

Cash Balance
& Marketable
Securities
FY2014
VOLVO CAR GROUP; JAN-JUN 2015

Operating

Investing

Marketable
Securities

Financing

Summary Financials h1 2015

Slight increase in Revenue
Profitability improved
EBIT Margin up from 1.4% to 2.2%
Operating Income increased from MSEK 968 to
MSEK 1,660

Good Cash Flow management for operating

and investing activities
VOLVO CAR GROUP; JAN-JUN 2015

10

2015 Outlook momentum continues

Sales growth close to 500,000 units
Return to growth in the U.S.
Positive impact from the XC90
Substantial improvements in profitability

VOLVO CAR GROUP; JAN-JUN 2015

11

Q&A

VOLVO CAR GROUP; JAN-JUN 2015

13