#1VOLVO FOURTH QUARTER 2021 Martin Lundstedt, President and CEO Volvo Group Fourth Quarter 2021 2022-01-28#2Volvo Group Quarter highlights Net sales increased to SEK 102.4 bn, an increase of 12% adjusted for UD Trucks divestment and FX Adjusted operating income amounted to SEK 10.1 bn (10.9), corresponding to a margin of 9.8% (11.3) NET SALES SEK bn 12 months SEK 367 bn 102.4 98.6 90.4 • Operating cash flow in the Industrial Operation amounted to SEK 23.6 bn (16.7) • ROCE 25.3% (14.7) in Industrial Operation • Supply chain constraints and cost inflation headwind Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2019 Net sales restated for UD Trucks divestment Volvo Group Fourth Quarter 2021 Q3 Q4 2021 ADJUSTED OPERATING INCOME (margin)* 12 months 11.0% 10.9 10.1 9.2 (8.8%) (11.3%) (9.8%) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 *For information on adjustments, see note 7 in the quarterly report 2022-01-28 2#36 YEN 950 Volvo Group Volume development Volvo Group Fourth Quarter 2021 TRUCK DELIVERIES k units HD/MD 12 months 180 k units 47.4 46.4 Il +20% 55.8 MACHINE DELIVERIES k units 12 months 100 k units 24.7 20.4 -18% 20.2 Q4 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 Q4 2021 Q4 2019 Q1 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 2021 Deliveries restated for UD Trucks divestment 2022-01-28 3#4Volvo Group Electrification progress ORDER INTAKE, FULLY ELECTRIC VEHICLES, Q4 2021 units HD/MD/LD ORDER INTAKE, FULLY ELECTRIC VEHICLES 604 Trucks Volvo CE 454 92 Volvo Buses 61 95 Volvo Penta -3 Volvo Group, Total 604 Q4 2020 Q1 Q2 Q3 Q4 2021 Volvo Group Fourth Quarter 2021 2022-01-28 4#5Volvo Group Service sales development SERVICE SALES (incl. Financial Services) SEK bn 12 months SEK 89.7 bn +11% +9% excl. FX 23.9 23.5 21.6 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 Service sales restated for UD Trucks divestment 2021 Volvo Group Fourth Quarter 2021 → 10% TRUCKS GLOBETROTTER 14% CONSTRUCTION EQUIPMENT FHIG 기 VOLVO 19% 21% BUSES VOLVO PENTA All figures are excluding FX and are restated for the UD Trucks divestment 2022-01-28 5 LO#6Fourth Quarter 2021 EUR 6 500 VOLVO TRUCKS PELAGOS SESTRICA ZADAR 2022-01-28 6#7Trucks • Joint venture agreement for European high-performance charging network signed between Volvo Group, Daimler Truck and Traton Group • Enhanced Volvo VNR heavy-duty electric truck launched in North America - range of up to 440km (275 miles) • Volvo FH heavy-duty electric truck tested in Germany - excelled in range and energy efficiency. Volvo Group Fourth Quarter 2021 2022-01-28 7#8Trucks Market environment 0 EUROPE HD NORTH AMERICA HD 400 ست بیست 2020: 231' 2021: 277' Forecast 2022: 300' 0001 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 300 200 2020: 235' 100 100 2021: 270' Forecast 2022: 300' 0 0 0001 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 BRAZIL HD 150 100 INDIA HD+MD 450 300 CHINA HD+MD 1 800 1 350 900 50 150 2020: 67' 2021: 98' 2020: 143' 2020: 1778' 450 2021: 254' 2021: 1574' Forecast 2022: 100' Forecast 2022: 300' 0 0 Forecast 2022: 1100' 0 0001 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 0304 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 03040506070809 10 11 12 13 14 15 16 17 18 19 20 21 22 Volvo Group Fourth Quarter 2021 Market forecasts are based on current visibility, which is low. Uncertainty is significant due to inability to predict supply chain capacity and the ongoing COVID-19 pandemic. 2022-01-28 8#9Trucks HD/MD: Quarterly Orders -18% and Deliveries +20% NORTH AMERICA EUROPE 0 Orders Deliveries Orders Deliveries Q4 Q1 Q2 Q3 2019 Q4 Q1 Q2 Q3 Q4 2020 2021 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 Orders -33% Deliveries +29% Orders -12% Deliveries +18% SOUTH AMERICA ASIA AFRICA AND OCEANIA Orders Deliveries Orders Deliveries Q4 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 Q4 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 Q4 2019 Q1 Q2 Orders -16% Deliveries +41% Orders +3% Deliveries +20% Volvo Group Fourth Quarter 2021 Orders Deliveries Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 Orders -1% Deliveries -13% Figures restated for UD Trucks divestment 2022-01-28 9#10Trucks Heavy-duty truck market shares NORTH AMERICA YTD Dec EUROPE (EU29) YTD Dec 9.6 9.4 7.7 6.9 16.3 16.5 8.8 8.8 39.8 42.2 0 5.1 19.4 Volvo Mack Volvo Renault Volvo Renault Total market share Battery electric market share BRAZIL YTD Dec Volvo Group SOUTH AFRICA YTD Dec 22.2 22.2 17.216.8 Fourth Quarter 2021 Volvo Volvo Include content supplied by IHS Markit. Copyright © IHS Markit (2022). All rights reserved AUSTRALIA YTD Dec 16.4 12.9 6.6 4.5 Volvo Mack 2020 2021 2022-01-28 10#11Fourth Quarter 2021 VOLVO CONSTRUCTION EQUIPMENT 2022-01-28 11#12Construction Equipment . • First 20-ton EC230 electric excavator shipment, the latest move to accelerate the electric journey Launch of LX03, an autonomous concept wheel loader which is fully electric Volvo Group Fourth Quarter 2021 0 VOLVO VOLVO EC230 VOLVO L.Xo 01 2022-01-28 12 12#13Construction Equipment Market environment 250 200 150 100 NORTH AMERICA 50 50 0 Forecast 2022: +5% to +15% 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 EUROPE 250 200 150 100 50 0 0 Forecast 2022: 0% to +10% 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 ☑ Forecast 2022: -30% to -20% 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 SOUTH AMERICA 100 ASIA (excl. CHINA) CHINA 250 500 200 400 75 Forecast 2022: +5% to 15% 150 300 50 100 200 25 50 100 Forecast 2022: 0% to +10% 0 0 0 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 Volvo Group Fourth Quarter 2021 Market forecasts are based on current visibility, which is low. Uncertainty is significant due to inability to predict supply chain capacity and the ongoing COVID-19 pandemic. 2022-01-28 13#14Construction Equipment Quarterly Orders -24% and Deliveries -18% NORTH AMERICA EUROPE 0 Orders Deliveries Orders Deliveries Q4 Q1 Q2 Q3 2019 Q4 Q1 Q2 Q3 Q4 2020 2021 Q4 Q1 Q2 Q3 2019 Q4 2020 Orders +14% Deliveries +31% Q1 Q2 Q3 Q4 2021 Orders -12% Deliveries +24% ASIA SOUTH AMERICA AFRICA AND OCEANIA Orders Deliveries Orders Deliveries Q4 Q1 Q2 2019 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 Q4 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 Q4 Q1 Q2 2019 Orders -11% Orders +25% Volvo Group Deliveries +41% Deliveries +38% Fourth Quarter 2021 Orders Deliveries Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 Orders -37% Deliveries -36% 2022-01-28 14#15Buses . Orders in Q4 increased by 43% • Deliveries in Q4 decreased by 37% · • Order for 61 electric buses to Helsinki, Finland Managing the pandemic: - - Volumes in 2021 down 46% vs 2019 - Volvo Buses achieved an adjusted operating income of SEK 59 M for FY2021 Volvo Group Fourth Quarter 2021 0 2022-01-28 15 15#16Volvo Penta . Orders increased by 1% • Deliveries increased by 8% . Development of an advanced hybrid solution for Hurtigruten Svalbard's new sightseeing vessel • Electric terminal tractor prototype powered by Volvo Penta delivered to TICO in North America Volvo Group Fourth Quarter 2021 0 KVITBJORN 2022-01-28 16#17Financial services • Strong demand for transportation and construction services drives good portfolio performance • Record new business volume for the quarter and year. . Expansion of global parts and service financing platform with rollout in Brazil Volvo Group Fourth Quarter 2021 PENETRATION RATE, % 12 months moving 38 37 29 29 30 30 27 25 Trucks Construction Equipment Buses Volvo Group 2020 2021 2022-01-28 17#18זיון VOL 0 FOURTH QUARTER 2021 Jan Ytterberg, Executive Vice President Group Finance and CFO 100- Volvo Group Fourth Quarter 2021 2022-01-28 18#19Volvo Group Net sales per market Volvo Group Fourth Quarter 2021 NET SALES SEK bn Currency SEK +0.9 bn 2.7 1.5 102.4 5.6 4.9 90.4 -2.8 Q4 2020 Europe North South America America Asia Africa and Oceania Q4 2021 Net sales restated for UD Trucks divestment 2022-01-28 19 19#20Volvo Group Adjusted operating income contributors Volvo Group Fourth Quarter 2021 ADJUSTED OPERATING INCOME SEK bn Currency SEK +0.1bn 10.9 0.7 0.6 10.1 -0.3 -0.2 ↑ -0.7 -1.1 Q4 Gross Cash Net R&D Selling Admin Other Q4 2020 Income R&D Cap./Amo. 2021 + Price + Vehicle & service volumes + Used vehicles · Material costs - JV earnings - Industrial productivity - R&D expenses 2022-01-28 20#21Volvo Group Cash flow and financial position in Industrial Operations 12 months SEK 29.4 bn OPERATING CASH FLOW SEK bn OPERATING CASH FLOW SEK bn 23.6 19.9 16.7 9.4 0 Working capital (17.0 bn) 3.7 2.1 15.6 -0.3 -0.4 FINANCIAL POSITION (Excl. Pensions and lease liabilities) SEK bn 74.7 66.2 62.6 23.6 -5.1 -1.4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 Opinc. A/R Invent. A/P Other Amo. Investm Other Op. Q4 WC & 2021 Depr. Q4 2019 Q1 Q2 Q3 Q4 2020 Q1 Q2 Q3 Q4 2021 CF Q4 2021 Volvo Group Fourth Quarter 2021 2022-01-28 21#22Trucks Net sales and adjusted operating income H NET SALES SEK bn 12 months SEK 225.4 bn ADJUSTED OPERATING INCOME SEK bn 61.5 55.4 +21% (excl. FX +21%) 8.0 67.2 ↑ + Price Q4 2019 Q1 Q2 Q3 Q4 2020 Q1 Q2 Q3 Q4 2021 Q4 2020 Net sales restated for UD Trucks divestment WowthGroaper 2021 + Vehicle & service volumes + Used trucks Material costs - JV earnings - Product & market mix - R&D expenses ADJUSTED OPERATING INCOME SEK bn (margin)* 12 months 11.1% Currency SEK -0.2 bn 8.0 (13.0%) 6.9 6.2 (9.1%) 6.9 (10.3%) Q4 2021 Q4 2019 Q1 Q2 Q3 Q4 Q1 Q2 2020 Q3 Q4 2021 *For information on adjustments, see note 7 in the quarterly report 2022-01-28 22#23Construction Equipment Net sales and adjusted operating income H NET SALES SEK bn 12 months SEK 92.0 bn ADJUSTED OPERATING INCOME SEK bn +5% (excl. FX +2%) 20.8 19.7 2.3 21.8 ↑ + Product & market mix + Price + Service volumes - Material costs - Volume - Capacity utilization - R&D expenses Q4 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 Q4 2021 Q4 2020 Volvo Group Fourth Quarter 2021 2.4 Q4 2021 ADJUSTED OPERATING INCOME SEK bn (margin)* - 12 months 13,3% Currency SEK +0.2 bn 1.9 (9.8%) 2.3 (11.2%) 2.4 (11.0%) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 *For information on adjustments, see note 7 in the quarterly report 2022-01-28 23#24Buses Net sales and adjusted operating income. H NET SALES SEK bn 12 months SEK 13.7 bn ADJUSTED OPERATING INCOME SEK M -19% (excl. FX -20%) 5.8 5.1 4.2 ADJUSTED OPERATING INCOME SEK M (margin)* 12 months 0.4% Currency SEK-18 M 248 (4.3%) + Customer mix + Service earnings - 25 - Volume Materials costs Q4 Q4 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2020 2021 -25 (-0.5%) -42 (-1.0%) -42 Q4 2021 Q4 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 Volvo Group Fourth Quarter 2021 All numbers restated to exclude Nova Bus which is now included in segment 'Group Functions and other' *For information on adjustments, see note 7 in the quarterly report 2022-01-28 24#25Volvo Penta Net sales and adjusted operating income. H NET SALES SEK bn 12 months SEK 14.4 bn ADJUSTED OPERATING INCOME SEK M 3.0 3.0 +22% (excl. FX +21%) 3.6 ↑ + Engine & parts volume 330 + Product mix + Price 25 Q4 Q1 2019 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 Q4 2021 2020 Volvo Group Fourth Quarter 2021 - Material costs Industrial productivity R&D expenses Q4 2021 ADJUSTED OPERATING INCOME SEK M (margin)* 12 months 14.5% Currency SEK +20 M 174 (5.7%) 25 (0.8%) 330 (9.1%) 2020 Q4 2021 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 *For information on adjustments, see note 7 in the quarterly report 2022-01-28 25#26Financial Services Credit portfolio and profitability NEW RETAIL FINANCING SEK bn ADJUSTED OPERATING INCOME * SEK M 12 months SEK 85.1 bn 12 months SEK 3 279 M CREDIT PORTFOLIO & ROE SEK bn ROE 12 months 18.0% Currency SEK +21 M 25.8 858 170 172 24.8 21.5 152 704 521 Q4 2019 Q1 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 2021 Q4 2019 Q1 Q2 Q3 Q4 Q1 Q2 2020 Q3 Q4 2021 Volvo Group Fourth Quarter 2021 *For information on adjustments, see note 7 in the quarterly report Q4 2019 Q1 Q2 Q3 Q4 2020 Q1 Q2 Q3 Q4 2021 2022-01-28 26#27Volvo Group Full Year highlights KEY ACHIEVEMENTS IN 2021 . • Strong performance in a year with many challenges Leading the transformation towards sustainable transport solutions ROCE 25% in Industrial Operation Volvo Group Fourth Quarter 2021 NET SALES SEK bn Adjusted Operating Income margin* DIVIDEND PROPOSAL FOR 2021 11,0% • Ordinary dividend SEK 6.50 (6.00) 8,4% • Extra dividend SEK 6.50 (9.00) 367 316 2020 2021 Net sales restated for UD Trucks divestment *For information on adjustments, see note 7 in the quarterly report 2022-01-28 27 27#28VOLVO Q&A Volvo Group Fourth Quarter 2021 2022-01-28 + *+ ** 28