Kvartalsrapport Q1 2023

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===== SIDA 1 =====

Report on the 
first quarter 2023 
Volvo Group

===== SIDA 2 =====

The first quarter in brief
➣ In Q1 2023 , net sales increased by 25% to SEK 131.4 
billion ( 105.3). Adjusted for currency movements, the 
increase was 17%.
➣ Adjusted operating income1 amounted to SEK 18,409 M 
(12,681), corresponding to an adjusted operating margin 
of 14.0% (12.0). Adjusted operating income excludes a 
negative effect of SEK 1,300 M from a restructuring 
provision in Buses.
➣ Reported operating income amounted to SEK 17,109 M 
(8,556).
➣ Currency movements had a positive impact on operating 
income of SEK 1,669 M.
➣ Earnings per share amounted to SEK 6.35 (3.46).
➣ Operating cash flow in the Industrial Operations 
amounted to SEK 5,004 M (-5,400).
➣ Return on capital employed in Industrial Operations 
amounted to  30.3% (25.3).
First quarter 
SEK M unless otherwise stated 2023 2022
Net sales  131,420  105,317 
Adjusted operating income ¹  18,409  12,681 
Adjusted operating margin, %  14.0  12.0 
Operating income  17,109  8,556 
Operating margin, %  13.0  8.1 
Income after financial items  16,797  9,027 
Income for the period  12,934  7,071 
Earnings per share, SEK  6.35  3.46 
Operating cash flow in Industrial Operations  5,004  -5,400 
Net financial position in Industrial Operations, SEK bn ²  77.7  59.5 
Return on capital employed in Industrial Operations, % ³  30.3  25.3 
Return on equity in Financial Services, % ³  11.0  4.1 
Return on equity in Financial Services excluding Russian and Belarus operations, % ³  14.8  17.8 
Net order intake, number of trucks  60,040  45,594 
Deliveries, number of trucks  61,531  55,588 
Net order intake, number of construction equipment  13,342  20,683 
Deliveries, number of construction equipment  14,468  20,779 
Net sales, SEK bn Adjusted operating income, SEK bn 1 
Adjusted operating margin, %
Return on capital employed
Industrial Operations, % 3
  
105.3
131.4
Q1 2022Q2Q3Q4Q1 2023
12.7
18.4
12.0%14.0%
Q1 2022Q2Q3Q4Q1 2023
25.3%
30.3%
Q1 2022Q2Q3Q4Q1 2023
1 For information on adjusted operating income, please see note 6.
2 Excluding post-employment benefits and lease liabilities.
3 12 months rolling.
On the cover: Lineup of Mack Medium Duty Electric trucks.
                        VOLVO GROUP   — 2 —   THE FIRST QUARTER 2023

===== SIDA 3 =====

CEOʼS COMMENTS
Strong start to 2023
During Q1 2023, the Volvo Group's growth continued and our 
profitability took a step up. Sales increased in all business areas and 
in all regions. Net sales rose by 25% to SEK 131.4 billion, the 
highest so far for a first quarter. We increased the adjusted operating 
income by SEK 5.7 billion to SEK 18.4 billion, corresponding to a 
margin of 14.0% (12.0). Return on capital employed rose to 30.3% 
(25.3).
A good profitability is important for us to be able to continue to 
increase our investments in the biggest technological shift ever in 
our industries. We are in a period when we are investing battery and 
fuel cell electric vehicles as well as internal combustion engines in 
parallel. Furthermore, the proposed Euro VII emissions legislation 
will put additional pressure on our investments in research and 
development of the combustion engine. Good profitability and 
financial strength are important to be able to drive these 
investments. In Q1, Industrial Operations generated an operating 
cash flow of SEK 5.0 billion (-5.4) and at the end of the quarter had 
net cash of SEK 77.7 billion, excluding pension and leasing liabilities.
Despite a deteriorating economic outlook with high inflation and 
rising interest rates, transport volumes and infrastructure activity 
have continued to be solid in most of our markets. In combination 
with customers' need to renew aging fleets, this contributes to good 
demand for our products. The high activity levels were also reflected 
in our service sales, which grew by 13% adjusted for currency. The 
service business is a priority area because it contributes to increasing 
our customers' productivity, strengthens customer relationships and 
provides stability over the business cycle.
There is a continued pent-up need to replace aging fleets, which is 
noticeable on the truck side, where order intake rose as we gradually 
opened the order books for the second half of 2023. Overall, order 
intake rose by 32% to 60,040 trucks while we delivered 61,531 
trucks, an increase of 11% compared to the previous year. This is 
both a delivery and production record for a Q1 and the result of hard 
work across the value chain. The disturbances in the European 
supply chains have not been as extensive as in the autumn and have 
contributed to increased productivity. The North American supply 
chain, on the other hand, remains unstable, which leads to 
production disturbances. During Q1, net sales in the truck business 
grew by 29% to SEK 89.6 billion, with strong sales in all regions. 
The adjusted operating margin increased to 14.2% (12.5).
With the exception of China, activity in the construction industry has 
continued to be good in most of our markets. It is primarily driven by 
ongoing infrastructure investments and by the mining industry, 
which benefits from continued good commodity prices. Construction 
Equipmentʼs net sales increased by 11% to SEK 25.1 billion and the 
adjusted operating margin rose to 18.3% (12.4) with strong 
development for our Volvo products in North America and Europe. 
However, order intake decreased by 35% due to lower demand in 
China and weakening order intake in Europe. Seen in a longer 
perspective, the order books are large in most markets and we are 
working to shorten the long lead times.
Demand for buses has continued to improve as travel has increased 
after the pandemic. This is particularly evident for coaches in North  
America and on the service side. In Q1, net sales in Buses rose by 
40% and amounted to SEK 4.3 billion. Underlying profitability 
improved but remains low. The adjusted operating margin amounted 
to 4.2% (0.7), excluding a cost of SEK 1.3 billion to restructure the 
European operations.
"A good profitability is important for us to be able to 
continue to increase our investments in the biggest 
technological shift ever in our industries."
For Volvo Penta, demand continued to be good in both the marine 
and industrial segments. Net sales rose by 33% to SEK 5.6 billion 
and the adjusted operating margin improved to 22.7% (18.3).
For Volvo Financial Services, the credit portfolio continued to grow 
and the good activity levels at our customers in most regions was 
reflected in continued low credit losses. The adjusted operating 
income amounted to SEK 871 M (882).
Together with our business partners, we continue to work hard to 
meet our customers' needs while at the same time having a high 
degree of flexibility to quickly adapt to any changes in demand. We 
are operating from a position of strength and will continue to take 
advantage of growth opportunities in our efforts to move to fossil-
free transport and infrastructure solutions – to the benefit of our 
customers and our shareholders as well as society at large.
Martin Lundstedt
President and CEO
                        VOLVO GROUP   — 3 —   THE FIRST QUARTER 2023

===== SIDA 4 =====

FINANCIAL SUMMARY OF THE FIRST QUARTER 2023
Net sales
In Q1 2023, the Volvo Groupʼs net sales amounted to SEK 131,420 
M compared with SEK 105,317 M in the same quarter the preceding 
year. Sales increased in all business areas and in all regions.
  Adjusted for currency movements, net sales increased by 17%, of 
which vehicle sales by 18% and service sales by 13%.
Operating income
In Q1 2023, adjusted operating income amounted to SEK 18,409 M 
(12,681), corresponding to an adjusted operating margin of 14.0% 
(12.0).
  The adjusted operating income in Q1 2023  excludes a negative 
effect of SEK 1,300 M from a restructuring provision in Buses. 
Q1 2022  excluded a negative effect from provisioning of assets 
related to Russia in an amount of SEK 4,125 M. For more 
information on adjusted operating income, please see Note 6.
  Compared with Q1 2022, the higher adjusted operating income is 
mainly an effect of price realization and favorable brand and product 
mix in Construction Equipment. This was partly offset by higher 
material costs as well as increased R&D and selling expenses. 
  Currency movements, compared with Q1 2022 , had a positive 
impact of SEK 1,669 M.
   Reported operating income in Q1 2023 amounted to SEK 17,109 
M (8,556).
Net sales First quarter Change 
%SEK M 2023 2022
Net sales per geographical region
Europe  57,521  46,565  24 
North America  40,153  29,861  34 
South America  9,566  8,836  8 
Asia  16,488  14,115  17 
Africa and Oceania  7,692  5,940  30 
Total net sales  131,420  105,317  25 
Net sales per product group
Vehicles  100,732  80,035  26 
Services  30,688  25,282  21 
Total net sales  131,420  105,317  25 
Timing of revenue recognition
Revenue of vehicles and services recognized at the point of delivery  119,878  96,339  24 
Revenue of vehicles and services recognized over contract period  11,542  8,978  29 
Total net sales  131,420  105,317  25 
Consolidated Income Statement First quarter 
SEK M 2023 2022
Net sales  131,420  105,317 
Cost of sales  -96,112  -80,700 
Gross income  35,308  24,617 
Research and development expenses  -6,492  -4,583 
Selling expenses  -7,894  -6,783 
Administrative expenses  -1,663  -1,321 
Other operating income and expenses  -1,980  -3,377 
Income/loss from investments in joint ventures and associated companies  -171  -123 
Income/loss from other investments  -  127 
Operating income  17,109  8,556 
Interest income and similar credits  572  125 
Interest expenses and similar charges  -314  -328 
Other financial income and expenses  -570  674 
Income after financial items  16,797  9,027 
Income taxes  -3,863  -1,956 
Income for the period *  12,934  7,071 
* Attributable to:
Owners of AB Volvo  12,910  7,033 
Non-controlling interest  24  38 
 12,934  7,071 
Basic earnings per share, SEK  6.35  3.46 
Diluted earnings per share, SEK  6.35  3.46 
                        VOLVO GROUP   — 4 —   THE FIRST QUARTER 2023

===== SIDA 5 =====

Financial items
In Q1 2023 , interest income was SEK 572 M (125) as a 
consequence of higher interest on financial assets, whereas interest 
expenses amounted to SEK 314 M (328).
  Other financial income and expenses amounted to SEK -570 M 
(674). The change is primarily due to revaluation effects of financial 
assets and liabilities.
Income taxes
In Q1 2023, income taxes amounted to SEK 3,863 M (1,956). The 
tax rate was 23% (22).
Income for the period and earnings per share
In Q1 2023 , income for the period amounted to SEK 12,934 M 
(7,071). Earnings per share amounted to SEK 6.35 (3.46).
Operating cash flow in the Industrial Operations
During Q1 2023, operating cash flow in the Industrial Operations 
was positive in an amount of SEK 5,004 M (-5,400). Compared with 
Q1 2022, the improved operating cash flow is primarily related to a 
lower seasonal buildup of working capital of SEK 7,738 M (15,890) 
and higher operating income of SEK 16,238 M (10,241). This was 
partly off-set by higher tax payments of SEK 5,602 M (1,826). 
Operating cash flow
Industrial Operations, SEK bn
-5.4
5.0
Q1 2022Q2Q3Q4Q1 2023
Volvo Group financial position
During Q1 2023, net financial assets in the Industrial Operations, 
excluding provisions for post-employment benefits and lease 
liabilities, increased by SEK 3.8 billion resulting in a net financial 
asset position of SEK 77.7 billion on March 31, 2023. The change is 
mainly explained by a positive operating cash flow of SEK 5.0 billion.
 Including provisions for post-employment benefits and lease 
liabilities, the Industrial Operations net financial assets amounted to 
SEK 63.4 billion on March 31, 2023. During Q1 2023, 
remeasurements of defined benefit pension plans had a negative 
impact of SEK 1.0 billion. The remeasurements were primarily an 
effect of lower discount rates, partly offset by higher return on 
assets.
   During Q1 2023 a decision was made to call the final tranche (EUR 
0.6 billion) of the hybrid bond with payment date on March 10, 
2023.
   On March 31, 2023, total equity for the Volvo Group amounted to 
SEK 178.7 billion compared with SEK 166.2 billion at year-end 
2022. The equity ratio was 27.3% (26.4). On the same date the 
equity ratio in the Industrial Operations amounted to 35.8% (34.1).
Net financial position excl. post-employment benefits 
and lease liabilities
Industrial Operations, SEK bn
59.5
77.7
Q1 2022Q2Q3Q4Q1 2023
Blue-collar  53,486  51,779  52,114 
Whereof temporary employees and consultants  8,567  7,064  8,732 
White-collar  50,765  50,376  47,232 
Whereof temporary employees and consultants  7,366  7,405  6,555 
Total number of employees  104,251  102,155  99,346 
 Whereof temporary employees and consultants  15,933  14,469  15,287 
Number of employees Mar 31 
2023
Dec 31 
2022
Mar 31 
2022
Number of employees
On March 31, 2023 , the Volvo Group had 104,251 employees, 
including temporary employees and consultants, compared with 
99,346 employees on March 31 2022 . The number of blue-collar 
employees increased by 1,372 and the number of white-collar 
employees increased by 3,533. The increase in blue-collar 
employees is related to higher production levels and the increase in 
white-collar employees is related to higher development and 
transformational activities.
                        VOLVO GROUP   — 5 —   THE FIRST QUARTER 2023

===== SIDA 6 =====

IMPORTANT EVENTS FOR THE VOLVO GROUP
Tina Hultkvist resigned as CFO
On February 3, 2023, it was announced that Tina Hultkvist had 
decided to leave her role as Volvo Group Chief Financial Officer 
and member of the Executive Board. Jan Ytterberg, previously 
Volvo Group Chief Financial Officer and member of the Executive 
Board and Volvo Group senior advisor, stepped in as acting CFO.
Volvo Buses changes business model in Europe and has 
decided to close its bodybuilding factory in Wroclaw in 2024
On March 16, 2023, it was announced that Volvo Buses is 
changing its business model in Europe and will apply the same 
successful model as it has on several other markets. This means 
that Volvo Buses will focus its production on chassis and together 
with external bodybuilders offer customers in Europe a complete 
range of city and intercity buses as well as coaches for the 
premium segment. Consequently, Volvo Buses has decided to 
close its bodybuilding factory in Wroclaw, Poland, Q1 2024. 
Volvo Buses has signed a Letter of Intent regarding the 
divestment of its premises to Vargas Holding. A restructuring 
provision of SEK 1,300 M negatively impacted operating income 
in Q1 2023.
Annual General Meeting of AB Volvo
AB Volvoʼs Annual General Meeting on April 4, 2023, adopted the 
income statement and balance sheet as well as the consolidated 
income statement and the consolidated balance sheet. In 
accordance with the Boardʼs proposal, the Meeting resolved that 
an ordinary dividend of SEK 7.00 per share and an extraordinary 
dividend of SEK 7.00 per share should be paid to the 
shareholders. April 6, 2023 was decided as the record date for 
the right to receive dividends. The Board Members, Board 
Deputies and the President and CEO were discharged from 
liability for their administration during the 2022 fiscal year. Matti 
Alahuhta, Jan Carlson, Eric Elzvik, Martha Finn Brooks, Kurt Jofs, 
Martin Lundstedt, Kathryn V. Marinello, Martina Merz, Helena 
Stjernholm and Carl-Henric Svanberg were re-elected as 
members of the Board. Bo Annvik was elected as new member of 
the Board. Carl-Henric Svanberg was re-elected as Chairman of 
the Board. The follwing persons were elected as members of the 
Election Committee: Pär Boman (AB Industrivärden), Anders 
Oscarsson (AMF and AMF Funds), Magnus Billing (Alecta, 
subsequently replaced by Carina Silberg), Anders Algotsson (AFA 
Insurance) and the Chairman of the Board. The Meeting resolved 
that no fees shall be paid to the members of the Election 
Committee. The Annual General Meeting approved the Boardʼs 
remuneration report. Guidelines for remuneration to the Volvo 
Group Executive Board were adopted in accordance with the 
Boardʼs proposal. The Meeting resolved to approve the Boardʼs 
proposed adoption of a new long-term incentive plan.
Detailed information about the events is available at 
www.volvogroup.com
                        VOLVO GROUP   — 6 —   THE FIRST QUARTER 2023

===== SIDA 7 =====

BUSINESS SEGMENT OVERVIEW
Net sales First quarter Change 
%
Change 
%¹
12 months Jan-Dec
SEK M 2023 2022 rolling 2022
Trucks  89,556  69,552  29  21  330,540  310,536 
Construction Equipment  25,109  22,613  11  5  102,757  100,261 
Buses  4,267  3,051  40  29  19,799  18,583 
Volvo Penta  5,603  4,204  33  26  19,500  18,102 
Group Functions & Other  3,779  3,848  -2  -  16,307  16,376 
Eliminations  -1,195  -923  -  -  -4,427  -4,155 
Industrial Operations  127,117  102,345  24  16  484,475  459,703 
Financial Services  5,370  3,734  44  33  18,991  17,355 
Reclassifications and eliminations  -1,067  -762  -  -  -3,884  -3,579 
Volvo Group  131,420  105,317  25  17  499,582  473,479 
1  Adjusted for exchange rate fluctuations.
Adjusted operating income ¹ First quarter Change 
%
12 months Jan-Dec
SEK M 2023 2022 rolling 2022
Trucks  12,715  8,690  46  37,847  33,821 
Construction Equipment  4,587  2,810  63  15,022  13,244 
Buses  178  20  781  511  353 
Volvo Penta  1,271  769  65  3,031  2,530 
Group Functions & Other  -1,225  -488  151  -3,648  -2,911 
Eliminations  12  -3  -  26  12 
Industrial Operations  17,538  11,798  49  52,789  47,049 
Financial Services  871  882  -1  3,405  3,416 
Reclassifications and eliminations  -  1  -  2  2 
Volvo Group adjusted operating income  18,409  12,681  45  56,195  50,467 
Adjustments ¹  -1,300  -4,125  -  -1,930  -4,755 
Volvo Group operating income  17,109  8,556 100  54,265  45,712 
1 For more information on adjusted operating income, please see note 6
Adjusted operating margin First quarter 12 months Jan-Dec
% 2023 2022 rolling 2022
Trucks  14.2  12.5  11.4  10.9 
Construction Equipment  18.3  12.4  14.6  13.2 
Buses  4.2  0.7  2.6  1.9 
Volvo Penta  22.7  18.3  15.5  14.0 
Industrial Operations  13.8  11.5  10.9  10.2 
Volvo Group adjusted operating margin  14.0  12.0  11.2  10.7 
Volvo Group operating margin  13.0  8.1  10.9  9.7 
                        VOLVO GROUP   — 7 —   THE FIRST QUARTER 2023

===== SIDA 8 =====

TRUCKS
Strong growth and 
improved profitability
• In Q1, net sales increased by 29% to SEK 89,556 M
• Adjusted operating income increased to SEK 12,715 M (8,690) 
with a margin of 14.2% (12.5)
• Order intake increased by 32% and deliveries by 11%
      
Market development
During Q1 2023, demand in both Europe and North America 
continued to be on a good level for both new and used vehicles as 
well as for services on the back of customers replacing aging fleets 
and continued good transport activity.
  In Brazil, demand in Q1 declined due to a prebuy that took place in 
2022 ahead of a new emission legislation which was implemented 
on January 1, 2023.
  The Indian market continued to grow as an effect of increased 
consumption levels, pent-up demand, and increased government 
expenditure on infrastructure.
 Demand in China started to show signs of recovery with 
contribution from various regional stimulus initiatives in 
infrastructure and towards consumer consumption. 
Orders and deliveries
In Q1, the truck markets in most regions continued to be supply-
driven on the back of production capacity limitations. Net order 
intake in Q1 increased by 32% to 60,040 trucks while deliveries 
increased by 11% to 61,531 trucks.
   In Europe, order intake increased by 25% to 31,290 vehicles and 
deliveries increased by 13% to 32,850 vehicles. Volvo Trucksʼ total 
heavy-duty market share through February decreased to 17.9% 
(18.7) while the electric heavy-duty market share increased to 
50.2% (32.0). Renault Trucksʼ heavy-duty total market share 
decreased to 9.0% (9.6) and the electric heavy-duty market share 
decreased to 15.5% (18.7).
   Order intake in North America increased by 152% to 15,159 trucks 
while deliveries increased by 15% to 16,011 vehicles. Volvo Trucksʼ 
heavy-duty truck market share through March decreased to 8.7% 
(9.8). Mack Trucksʼ market share increased to 5.7% (5.3).
  In South America, order intake decreased by 29% to 5,212 trucks 
while deliveries decreased by 28% to 4,475 vehicles after the 
prebuy in 2022. Production rates have been reduced. In Brazil, Volvo 
Trucksʼ heavy-duty trucks market share through March decreased to 
21.8% (25.9).
 Order intake in Asia increased by 12% to 5,336 vehicles and 
deliveries increased by 55% to 5,742 vehicles, mainly driven by the 
Middle East.
   In Q1, order intake for fully electric trucks increased by 67% to 825 
(494) vehicles while deliveries increased by 254% to 683 (193) 
vehicles.
  Order intake for the Indian joint venture, VE Commercial Vehicles, 
increased by 15% to 20,590 vehicles while deliveries increased by 
12% to 20,017 vehicles.
  Deliveries from the Chinese joint venture, Dongfeng Commercial 
Vehicles decreased by 31% to 14,184 trucks. 
Total market development First quarter Change 
%
Full year Forecast Change vs. previous 
forecastRegistrations, number of trucks 2023 2022 2022 2023
Europe 29 ¹ heavy-duty  80,186  66,204  21  264,100  - -
Europe 30 ¹ heavy-duty  89,770  74,315  21  297,500  320,000 +20,000
North America heavy-duty (retail)  79,433  62,134  28  309,916  320,000 +20,000
Brazil heavy-duty  21,454  20,049  7  97,856  80,000 unchanged
China ² medium- and heavy-duty  197,265  227,181  -13  566,130  650,000 unchanged
India medium- and heavy-duty  117,318  101,869  15  350,797  400,000 unchanged
1 EU29 includes Norway and Switzerland but excludes UK. EU30 includes UK.
2 Previous year has been adjusted to exclude exports.
                        VOLVO GROUP   — 8 —   THE FIRST QUARTER 2023

===== SIDA 9 =====

Net order intake First quarter Change 
%Number of trucks 2023 2022
Europe  31,290  24,984  25 
   Heavy- and medium-duty  26,055  19,631  33 
   Light-duty  5,235  5,353  -2 
North America  15,159  6,017  152 
South America  5,212  7,354  -29 
Asia  5,336  4,766  12 
Africa and Oceania  3,043  2,473  23 
Total order intake  60,040  45,594  32 
Heavy-duty (>16 tons)  49,901  36,861  35 
Medium-duty (7-16 tons)  4,831  3,272  48 
Light-duty (<7 tons)  5,308  5,461  -3 
Total order intake  60,040  45,594  32 
Volvo  35,956  27,157  32 
Renault Trucks  15,741  16,141  -2 
   Heavy- and medium-duty  10,433  10,680  -2 
   Light-duty  5,308  5,461  -3 
Mack  7,933  2,031  291 
Other brands  410  265  55 
Total order intake  60,040  45,594  32 
Non-consolidated operations
VE Commercial Vehicles (Eicher)  20,590  17,886  15 
Deliveries First quarter Change 
%Number of trucks 2023 2022
Europe  32,850  29,089  13 
Heavy- and medium-duty  26,702  24,276  10 
Light-duty  6,148  4,813  28 
North America  16,011  13,908  15 
South America  4,475  6,245  -28 
Asia  5,742  3,697  55 
Africa and Oceania  2,453  2,649  -7 
Total deliveries  61,531  55,588  11 
Heavy-duty (>16 tons)  50,684  46,889  8 
Medium-duty (7-16 tons)  4,604  3,818  21 
Light-duty (<7 tons)  6,243  4,881  28 
Total deliveries  61,531  55,588  11 
Volvo  35,789  33,861  6 
Renault Trucks  17,496  14,740  19 
Heavy- and medium-duty  11,253  9,859  14 
Light-duty  6,243  4,881  28 
Mack  7,958  6,518  22 
Other brands  288  469  -39 
Total deliveries  61,531  55,588  11 
Non-consolidated operations
VE Commercial Vehicles (Eicher)  20,017  17,860  12 
Dongfeng Commercial Vehicle Company (Dongfeng Trucks)  14,184  20,561  -31 
                        VOLVO GROUP   — 9 —   THE FIRST QUARTER 2023

===== SIDA 10 =====

Net sales and operating income First quarter Change 
%SEK M 2023 2022
Net sales per geographical region
Europe  42,676  33,499  27 
North America  27,607  20,580  34 
South America  7,224  6,781  7 
Asia  7,533  4,797  57 
Africa and Oceania  4,516  3,895  16 
Total net sales  89,556  69,552  29 
Net sales per product group
Vehicles  71,754  54,467  32 
Services  17,802  15,085  18 
Total net sales  89,556  69,552  29 
Timing of revenue recognition
Revenue of vehicles and services recognized at the point of delivery  84,395  65,017  30 
Revenue of vehicles and services recognized over contract period  5,161  4,535  14 
Total net sales  89,556  69,552  29 
Adjusted operating income ¹  12,715  8,690  46 
Adjustments  139  -1,447  - 
Operating income  12,854  7,243  77 
Adjusted operating margin, %  14.2  12.5 
Operating margin, %  14.4  10.4 
1 For more information on adjusted operating income, please see note 6.
Net sales and operating income
In Q1 2023, the truck operationʼs net sales amounted to SEK 
89,556 M, which was 29% higher than in Q1 2022. Excluding 
currency effects, net sales increased by 21% with sales of vehicles 
increasing by 24% and sales of services by 10%.
 Adjusted operating income increased to SEK 12,715 (8,690), 
corresponding to an adjusted operating margin of 14.2% (12.5). 
Adjusted operating income excludes a positive effect of SEK 139 M 
related to a decrease of the provision announced in 2018 for the 
premature degradation of an emission control component. In Q1 
2022, adjusted operating income excluded a negative effect of SEK 
1,447 M primarily from provisioning of inventories and receivables 
related to Russia. For more information on adjusted operating 
income, see Note 6.
  Compared with Q1 2022, the higher adjusted operating income is 
an effect of price realization and increased volumes. Earnings were 
negatively impacted by higher material costs as well as increased 
R&D and selling expenses. Compared with Q1 2022, currency 
movements had a positive impact of SEK 850 M. 
   Reported operating income amounted to SEK 12,854 M (7,243).
Important events
In Q1, Volvo Trucks started production of heavy-duty, rigid electric 
trucks in the Tuve plant in Sweden.
  Volvo Trucks and mining company Boliden started a collaboration 
project around the usage of electric trucks for underground mining 
(see photo on page 8).
  Mack Trucks launched fully electric medium-duty trucks for North 
America.
 The existing technology cooperation with Isuzu Motors was 
extended to also include Isuzu branded vehicles.
Net order intake of fully electric trucks First quarter Change 
%Number of trucks 2023 2022
Volvo  486  202  141 
Renault Trucks  324  292  11 
Heavy- and medium-duty  174  138  26 
Light-duty  150  154  -3 
Mack  15  -  - 
Total order intake  825  494  67 
Deliveries of fully electric trucks First quarter Change 
%Number of trucks 2023 2022
Volvo  350  61  474 
Renault Trucks  331  130  155 
Heavy- and medium-duty  128  82  56 
Light-duty  203  48  323 
Mack  2  2  - 
Total deliveries  683  193  254 
                        VOLVO GROUP   — 10 —   THE FIRST QUARTER 2023

===== SIDA 11 =====

CONSTRUCTION EQUIPMENT
Strong earnings and margin
• In Q1, net sales increased by 11% to SEK 25,109 M
• Adjusted operating income amounted to SEK 4,587 M (2,810), 
with a margin of 18.3% (12.4)
• Service sales flat, adjusted for currency
Market development
Overall, demand in major markets outside China remained stable in 
Q1, with growth in Europe and North America while facing 
corrections in Asia and Latin America.
   In the North American market demand continued to be good, with 
many large infrastructure projects and strong commercial 
construction more than offsetting a weakness in residential 
construction amid high interest rates.
   In Europe, the market grew as construction activities remained on 
good levels. Market growth was also positively influenced by rental 
fleet replacements.
   In South America, investment levels slowed down in Brazil due to 
lower business confidence among customers.
   The Chinese market had a significant negative correction due to the 
pre-buy effect related to the emissions regulations change at the end 
of last year, in addition to low economic activity.
  Development in other Asian markets was flat due to a weaker 
economic outlook in key markets such as Korea and Thailand, which 
was offset by Indonesia, where demand remained stable with good 
demand for commodities.
Orders and deliveries
In Q1, net order intake declined by 35%. The lower order intake was 
heavily impacted by low order intake in China after the prebuy in Q4 
as well as by more cautiousness among customers and dealers in 
Europe. Order intake in North America increased significantly driven 
by a favorable market outlook.
  In Q1, deliveries decreased by 30% as a consequence of lower 
deliveries in China and a slowdown in Brazil. Deliveries in Europe 
increased when excluding the effect of the stopped sales in Russia. 
The increase in North America was supported by favorable market 
conditions.
Total market development Year-to-date 
February Forecast Previous forecast
Change in % measured in units 2023 2023 2023
Europe  5 -5% to +5% -5% to +5%
North America  10 -5% to +5% -5% to +5%
South America  -31 -20% to -10% -10% to 0%
Asia excl. China  1 -5% to +5% 0% to +10%
China  -35 -15% to -5% -15% to -5%
Net order intake First quarter 
Change %Number of construction equipment 2023 2022
Europe  3,226  5,149  -37 
North America  2,596  1,254  107 
South America  478  685  -30 
Asia  6,404  12,854  -50 
Africa and Oceania  638  741  -14 
Total orders  13,342  20,683  -35 
Large and medium construction equipment  10,049  15,075  -33 
Compact construction equipment  3,293  5,608  -41 
Of which fully electric  259  141  84 
Total orders  13,342  20,683  -35 
Of which:
Volvo  9,161  9,376  -2 
SDLG  4,114  11,261  -63 
Of which in China  2,846  9,183  -69 
                        VOLVO GROUP   — 11 —   THE FIRST QUARTER 2023

===== SIDA 12 =====

Deliveries First quarter Change 
%Number of construction equipment 2023 2022
Europe  4,384  4,815  -9 
North America  2,334  1,735  35 
South America  398  951  -58 
Asia  6,370  12,698  -50 
Africa and Oceania  982  580  69 
Total deliveries  14,468  20,779  -30 
Large and medium construction equipment  10,665  15,215  -30 
Compact construction equipment  3,803  5,564  -32 
Of which fully electric  202  113  79 
Total deliveries  14,468  20,779  -30 
Of which:
Volvo  10,287  9,472  9 
SDLG  4,114  11,261  -63 
Of which in China  2,846  9,183  -69 
Net sales and operating income First quarter Change 
%SEK M 2023 2022
Net sales per geographical region
Europe  8,610  7,388  17 
North America  6,537  4,762  37 
South America  758  1,090  -30 
Asia  7,098  8,128  -13 
Africa and Oceania  2,106  1,244  69 
Total net sales  25,109  22,613  11 
Net sales per product group
Construction equipment  21,188  18,983  12 
Services  3,921  3,630  8 
Total net sales  25,109  22,613  11 
Timing of revenue recognition
Revenue of vehicles and services recognized at the point of delivery  24,469  22,017  11 
Revenue of vehicles and services recognized over contract period  640  596  7 
Total net sales  25,109  22,613  11 
Adjusted operating income ¹  4,587  2,810  63 
Adjustments  -  -106  - 
Operating income  4,587  2,703  70 
Adjusted operating margin, %  18.3  12.4 
Operating margin, %  18.3  12.0 
1 For more information on adjusted operating income, please see note 6.
Net sales and operating income
In Q1 2023 , net sales increased by 11% to SEK 25,109 M 
(22,613). Adjusted for currency movements net sales increased 
by 5%, of which net sales of machines increased by 5% and 
service sales  by 1%.
   Adjusted operating income amounted to SEK 4,587 M (2,810), 
corresponding to an operating margin of 18.3% (12.4). Operating 
income was positively impacted by a favorable brand and product 
mix, and price realization, which were partly offset by lower 
volumes and increased material costs and R&D expenses. 
Compared with Q1 2022 , currency movements had a positive 
impact of SEK 589 M.
   Reported operating income amounted to SEK 4,587 M (2,703).
Important events 
In Q1, Volvo CE made several introductions of sustainable power 
solutions and new service offerings. Among them was a solution 
in Europe to convert the L120 wheel loader to electric – fulfilling 
market appetite for more sustainable solutions in the mid-size 
range (see photo on page 11). The introduction of electric 
products in new markets continued with the launch of the fully 
electric EC55 excavator in India.
  In conjunction with the ConExpo show in Las Vegas in March, 
Volvo CE launched a range of new service offerings in North 
America, including Connected Map, Task Manager and Global 
Load Out solutions, all designed to increased connectivity, 
productivity and sustainability in work site operations. Also at 
ConExpo, the first fossil-free articulated hauler in North America 
was handed over to a customer.
  Volvo CE also announced a SEK 80 M investment in battery 
pack production at its excavator plant in Changwon, South Korea.
                        VOLVO GROUP   — 12 —   THE FIRST QUARTER 2023

===== SIDA 13 =====

BUSES
Higher volumes and improved 
profitability
• In Q1, deliveries increased by 25%
• Adjusted operating income increased to SEK 178 M (20) 
with a margin of 4.2% (0.7)
• Restructuring of the European business 
In Q1, global demand for new buses continued to improve, 
particularly for coaches. Demand for city buses was more stable, 
with a continued increase in requests for electric buses.
  Compared with Q1 2022, net order intake increased by 4% to 
1,839 units, primarily supported by significant coach orders in North 
America. Important orders were received in Mexico for the recently 
introduced EU6 coach.
   Deliveries increased by 25% to 1,184 units, with higher deliveries 
in North America, the Middle East and Africa.
  In Q1, net sales increased by 40% to SEK 4,267 M (3,051). 
Adjusted for currency, net sales increased by 29%, whereof vehicle 
sales increased by 32% and service sales by 23%.
 Adjusted operating income amounted to SEK 178 M (20), 
corresponding to an adjusted operating margin of 4.2% (0.7). 
Adjusted operating income excludes a negative effect of SEK 1,300 
M relating to a provision for the restructuring of the European bus
business and a negative effect of SEK 139 M related to an increase 
of the provision announced in 2018 for the premature degradation of 
an emission control component. For more information regarding the 
restructuring, see page 6.
   Compared with Q1 2022, the higher adjusted operating income is 
an effect of price realization and a positive mix, whereas increased 
material costs and R&D expenses impacted negatively. Compared 
with Q1 2022, currency movements had a positive impact of SEK 
112 M. Reported operating income amounted to SEK -1,261 M (20).
   In January, Prevost launched an all new version of its coach H3-45, 
pictued above. The redesigned coach, with a new aerodynamic 
shape, makes it up to 12% more fuel efficient and the completely 
new interior provides and enhanced environment for drivers and 
passengers.
Net order intake and deliveries ¹ First quarter Change 
%Number of buses 2023 2022
Total orders  1,839  1,764  4 
Of which fully electric  48  52  -8 
Of which hybrids  3  12  -75 
Total deliveries  1,184  947  25 
Of which fully electric  34  31  10 
Of which hybrids  44  3  1,367 
Net sales and operating income First quarter Change 
%SEK M 2023 2022
Net sales per geographical region
Europe  1,340  997  34 
North America  1,745  1,243  40 
South America  300  247  21 
Asia  365  247  48 
Africa and Oceania  516  316  63 
Total net sales  4,267  3,051  40 
Net sales per product group
Vehicles  2,986  2,082  43 
Services  1,280  969  32 
Total net sales  4,267  3,051  40 
Timing of revenue recognition
Revenue of vehicles and services recognized at the point of delivery  4,064  2,893  40 
Revenue of vehicles and services recognized over contract period  203  157  29 
Total net sales  4,267  3,051  40 
Adjusted operating income ¹  178  20  781 
Adjustments  -1,439  -  - 
Operating income  -1,261  20  - 
Adjusted operating margin, %  4.2  0.7 
Operating margin, %  -29.6  0.7 
1 For more information on adjusted operating income, please see note 6.
                        VOLVO GROUP   — 13 —   THE FIRST QUARTER 2023

===== SIDA 14 =====

VOLVO PENTA
Strong sales and operating income
• In Q1, deliveries increased by 11% and net sales by 33%
• Adjusted operating income increased to SEK 1,271 M (769)
• Several innovative launches in both the industrial and the 
marine segment
       
In Q1, demand within marine leisure showed a slight decline mainly 
caused by weakening demand for smaller boats. In the marine 
commercial segment demand was strong for supply and patrol 
vessel propulsion. Power generation was particularly strong while 
construction showed a slight decrease. Material handling showed 
signs of declining demand while demand from mining and 
agriculture remained on high levels.
   Net order intake decreased by 6% to 13,489 units while deliveries 
increased by 11% to 12,727 units. Supply limitations and long lead 
times continued to affect order booking negatively. 
   Net sales increased by 33% to SEK 5,603 M (4,204). Adjusted for 
currency movements, net sales increased by 26%, of which sales of 
engines increased by 31% and sales of services by 11%.
  Adjusted operating income amounted to SEK 1,271 M (769), 
corresponding to an operating margin of 22.7% (18.3). Earnings
were positively impacted by a favorable product mix, price realization
 and engine volumes, which were partly offset by increased material 
costs and R&D expenses. Compared with Q1 2022, the currency 
impact was positive in an amount of SEK 198 M. Reported operating 
income amounted to SEK 1,271 M (767).
   Volvo Pentaʼs Joystick Docking won the Innovation Award at the 
Miami International Boat Show. The Twin Forward Drive, Dynamic 
Positioning System for twin V6 and V8 propulsion packages, and the 
refined Water Sport Control were launched to further enhance the 
boating experience.
   Volvo Penta strengthened its power generation portfolio with its 
most powerful engine, the D17 and introduced its modular and 
scalable subsystem intended for integration into customersʼ battery 
energy storage solutions.
  To accelerate entry into the utility sector Volvo Penta acquired a 
minority stake in Utility Innovation Group (see photo of Battery 
Energy Storage System above). 
Net order intake and deliveries First quarter Change 
%Number of Engines 2023 2022
Total orders  13,489  14,315  -6 
Of which fully electric  21  18  17 
Total deliveries  12,727  11,514  11 
Of which fully electric  20  6  233 
Net sales and operating income First quarter Change 
%SEK M 2023 2022
Net sales per geographical region
Europe  2,973  2,344  27 
North America  1,043  778  34 
South America  164  143  14 
Asia  1,067  700  52 
Africa and Oceania  356  239  49 
Total net sales  5,603  4,204  33 
Net sales per product group
Engines  4,256  3,058  39 
Services  1,347  1,146  18 
Total net sales  5,603  4,204  33 
Timing of revenue recognition
Revenue of vehicles and services recognized at the point of delivery  5,603  4,204  33 
Revenue of vehicles and services recognized over contract period  -  -  - 
Total net sales  5,603  4,204  33 
Adjusted operating income ¹  1,271  769  65 
Adjustments  -  -3  - 
Operating income  1,271  767  66 
Adjusted operating margin, %  22.7  18.3 
Operating margin, %  22.7  18.2 
1 For more information on adjusted operating income, please see note 6.
                        VOLVO GROUP   — 14 —   THE FIRST QUARTER 2023

===== SIDA 15 =====

FINANCIAL SERVICES
Good portfolio growth and stable 
performance
• In Q1, new business volume increased 9%, adjusted for 
currency 
• Adjusted operating income of SEK 871 M (882)
• Good portfolio performance
In Q1 2023, customer activity levels and demand for transportation 
and construction services continued to be high, resulting in 
continued good portfolio performance in most parts of the world.
  When adjusted for currency, new business volume excluding Russia 
and Belarus was up by 9% compared with Q1 2022 primarily due to 
higher sales of Group products. Penetration declined in a 
competitive environment. Overall, the credit portfolio grew by 18% 
compared with Q1 2022, adjusted for currency.
   In Q1, adjusted operating income was in line with prior year at SEK 
871 M (882) as profitable portfolio growth was offset by spread 
compression from prior year financing volumes, higher selling 
expenses and credit provisions. Currency movements had a positive 
impact of SEK 42 M compared with Q1 2022.
  Reported operating income improved to SEK 871 M from SEK 
-1,686 M in Q1 2022, which included expenses of SEK -2,568 M 
primarily related to Russia.
  Excluding Russia and Belarus, return on shareholdersʼ equity 
amounted to 14.8% (17.8).
Financial Services First quarter 
SEK M unless otherwise stated 2023 2022
Number of financed units, 12 months rolling  67,727  69,902 
Total penetration rate, 12 months rolling, % ¹  27  31 
New retail financing volume, SEK billion  25.1  22.3 
Credit portfolio net, SEK billion  227  179 
Credit portfolio net excluding Russian and Belarus operations, SEK billion  227  176 
Credit provision expenses  160  3,033 
Credit provision expenses excluding Russian and Belarus operations  126  67 
Adjusted operating income ²  871  882 
Adjustments ²  -  -2,568 
Operating income  871  -1,686 
Credit reserves, % of credit portfolio  2.88  3.38 
Credit reserves, % of credit portfolio excluding Russian and Belarus operations  1.54  1.84 
Return on equity, 12 months rolling, %  11.0  4.1 
Return on equity excluding Russian and Belarus operations, 12 months rolling, % ²  14.8  17.8 
1 Share of unit sales financed by Volvo Financial Services in relation to the total number of units sold by the Volvo Group in markets where financial services are 
offered. 
2 For more information on adjustments, please see note 6.
                        VOLVO GROUP   — 15 —   THE FIRST QUARTER 2023

===== SIDA 16 =====

CONSOLIDATED INCOME STATEMENT FIRST QUARTER 
Industrial 
Operations Financial Services Eliminations Volvo Group
SEK M 2023 2022 2023 2022 2023 2022 2023 2022
Net sales  127,117  102,345  5,370  3,734  -1,067  -762  131,420  105,317 
Cost of sales  -93,602  -79,327  -3,577  -2,135  1,067  763  -96,112  -80,700 
Gross income  33,516  23,018  1,793  1,599  -  1  35,308  24,617 
Research and development expenses  -6,492  -4,583  -  -  -  -  -6,492  -4,583 
Selling expenses  -7,114  -6,124  -780  -659  -  -  -7,894  -6,783 
Administrative expenses  -1,659  -1,318  -3  -3  -  -  -1,663  -1,321 
Other operating income and expenses  -1,841  -754  -139  -2,623  -  -  -1,980  -3,377 
Income/loss from investments in joint ventures and 
associated companies
 -171  -123  -  -  -  -  -171  -123 
Income/loss from other investments  -  127  -  -  -  -  -  127 
Operating income  16,238  10,241  871  -1,686  -  1  17,109  8,556 
Interest income and similar credits  729  139  -  -  -158  -14  572  125 
Interest expenses and similar charges  -472  -343  -  -  158  14  -314  -328 
Other financial income and expenses  -570  674  -  -  -  -  -570  674 
Income after financial items  15,926  10,712  871  -1,686  -  1  16,797  9,027 
Income taxes  -3,614  -2,243  -249  287  -  -  -3,863  -1,956 
Income for the period *  12,312  8,469  622  -1,399  -  -  12,934  7,071 
* Attributable to:
Owners of AB Volvo  12,910  7,033 
Non-controlling interest  24  38 
 12,934  7,071 
Basic earnings per share, SEK  6.35  3.46 
Diluted earnings per share, SEK  6.35  3.46 
Key ratios, %
Gross margin  26.4  22.5  26.9  23.4 
Research and development expenses as % of net sales  5.1  4.5  4.9  4.4 
Selling expenses as % of net sales  5.6  6.0  6.0  6.4 
Administrative expenses as % of net sales  1.3  1.3  1.3  1.3 
Operating margin  12.8  10.0  13.0  8.1 
CONSOLIDATED OTHER COMPREHENSIVE INCOME FIRST QUARTER 
SEK M 2023 2022
Income for the period  12,934  7,071 
Items that will not be reclassified to income statement:
Remeasurements of defined benefit pension plans  -744  3,060 
Remeasurements of holding of shares at fair value  1  -25 
Items that may be reclassified subsequently to income statement:
Exchange differences on translation of foreign operations  69  3,023 
Share of OCI related to joint ventures and associated companies  116  386 
Accumulated translation difference reversed to income  -  - 
Other comprehensive income, net of income taxes  -558  6,444 
Total comprehensive income for the period *  12,376  13,515 
* Attributable to:
Owners of AB Volvo  12,341  13,387 
Non-controlling interest  36  128 
 12,376  13,515 
                        VOLVO GROUP   — 16 —   THE FIRST QUARTER 2023

===== SIDA 17 =====

CONSOLIDATED BALANCE SHEET
Industrial 
Operations Financial Services Eliminations Volvo Group
SEK M
Mar 31 
2023
Dec 31 
2022
Mar 31 
2023
Dec 31 
2022
Mar 31 
2023
Dec 31 
2022
Mar 31 
2023
Dec 31 
2022
Assets
Non-current assets
Intangible assets  42,128  41,471  73  73  -  -  42,202  41,544 
Tangible assets
Property, plant and equipment  64,245  63,112  49  50  -  -  64,294  63,162 
Assets under operating leases  34,072  34,109  20,882  21,372  -12,155  -11,963  42,799  43,518 
Financial assets
Investments in Joint Ventures and associated companies  21,984  21,583  -  -  -  -  21,984  21,583 
Other shares and participations  820  587  19  18  -  -  839  605 
Non-current customer-financing receivables  1,819  1,903  108,607  105,536  -2,227  -2,375  108,200  105,064 
Net pension assets  2,394  2,722  1  5  -  -  2,396  2,727 
Non-current interest-bearing receivables  7,613  7,227  5  1,153  -5,095  -6,578  2,523  1,803 
Other non-current receivables  10,288  10,997  239  227  -201  -202  10,326  11,022 
Deferred tax assets  13,516  12,219  2,083  1,969  -  -  15,599  14,189 
Total non-current assets  198,879  195,931  131,959  130,404  -19,678  -21,118  311,160  305,217 
Current assets
Inventories  84,503  75,382  249  307  -  -  84,751  75,689 
Current receivables
Customer-financing receivables  1,132  1,128  97,702  89,145  -1,330  -1,409  97,504  88,864 
Tax assets  2,037  1,489  306  570  -  -  2,343  2,059 
Interest-bearing receivables  5,016  5,690  1,098  -  -1,124  -27  4,991  5,663 
Internal funding  6,565  7,991  -  -  -6,565  -7,991  -  - 
Accounts receivable  47,179  46,672  1,635  1,548  -  -  48,814  48,220 
Other receivables  22,515  21,390  3,511  3,302  -5,685  -5,319  20,341  19,373 
Marketable securities  91  93  -  -  -  -  91  93 
Cash and cash equivalents  75,340  76,005  9,764  9,688  -925  -1,806  84,178  83,886 
Assets held for sale  247  -  -  -  -  -  247  - 
Total current assets  244,626  235,840  114,265  104,560  -15,629  -16,553  343,261  323,847 
Total assets  443,505  431,771  246,224  234,964  -35,307  -37,671  654,422  629,064 
Equity and liabilities
Equity attributable to owners of AB Volvo  155,395  143,921  19,700  18,796  -  -  175,095  162,717 
Non-controlling interest  3,556  3,519  -  -  -  -  3,556  3,519 
Total equity  158,951  147,439  19,700  18,796  -  -  178,651  166,236 
Non-current provisions
Provisions for post-employment benefits  9,615  8,690  56  55  -  -  9,671  8,745 
Other provisions  12,749  12,330  79  66  -  -  12,828  12,396 
Non-current liabilities
Bond loans  101,136  102,887  -  -  -  -  101,136  102,887 
Other loans  25,070  25,446  11,922  12,325  -1,941  -2,086  35,051  35,684 
Internal funding  -114,152  -110,254  99,873  98,310  14,279  11,944  -  - 
Deferred tax liabilities  2,956  3,060  2,280  2,412  -  -  5,235  5,472 
Other liabilities  52,020  51,351  1,518  1,467  -7,693  -7,270  45,845  45,549 
Current provisions  13,748  13,095  21  24  -  -  13,769  13,119 
Current liabilities
Bond loans  41,379  37,794  -  -  -  -  41,379  37,794 
Other loans  30,052  24,666  11,559  11,163  -1,202  -1,247  40,409  34,583 
Internal funding   -59,523  -50,804  88,012  79,677  -28,489  -28,873  -  - 
Trade payables  91,206  89,174  1,025  1,003  -  -  92,231  90,177 
Tax liabilities  5,881  6,147  629  760  -  -  6,510  6,907 
Other liabilities  72,416  70,749  9,550  8,906  -10,262  -10,138  71,705  69,517 
Liabilities held for sale  -  -  -  -  -  -  -  - 
Total equity and liabilities  443,505  431,771  246,224  234,964  -35,307  -37,671  654,422  629,064 
Key ratios, %
Equity ratio  35.8  34.1  8.0  8.0  27.3  26.4 
Equity attributable to owners of AB Volvo, per share in SEK  86.1  80.0 
Return on operating capital ¹  57.0  50.8 
Return on capital employed ¹  30.3  27.4 
Return on equity ¹  11.0  -0.3  23.6  20.7 
1 12 months rolling.
                        VOLVO GROUP   — 17 —   THE FIRST QUARTER 2023

===== SIDA 18 =====

CONSOLIDATED CASH FLOW STATEMENT FIRST QUARTER 
Industrial 
Operations Financial Services Eliminations Volvo Group
SEK M 2023 2022 2023 2022 2023 2022 2023 2022
Operating activities
Operating income  16,238  10,241  871  -1,686  -  1  17,109  8,556 
Amortization intangible assets  740  700  8  9  -  -  748  709 
Depreciation tangible assets  2,068  1,860  5  6  -  -  2,073  1,866 
Depreciation leasing vehicles  1,075  1,183  1,212  1,127  -  -  2,287  2,310 
Other non-cash items  1,859  1,829  229  2,963  -1  -15  2,087  4,777 
Total change in working capital whereof  -7,738  -15,890  -10,665  -4,350  -289  -20  -18,693  -20,260 
Change in accounts receivables  13  -1,274  -125  -6  -  -  -112  -1,280 
Change in customer-financing receivables  59  4  -11,102  -5,160  -198  17  -11,241  -5,139 
Change in inventories  -9,496  -7,765  54  -32  -  -  -9,442  -7,797 
Change in trade payables  1,899  -5,428  7  -9  -  -  1,907  -5,437 
Other changes in working capital  -214  -1,426  500  857  -92  -37  195  -606 
Dividends received from joint ventures and associated 
companies
 -  -  -  -  -  -  -  - 
Interest and similar items received  724  108  -  -  -158  6  567  114 
Interest and similar items paid  -620  -423  -  -  178  9  -441  -414 
Other financial items  -27  77  -  -  -  -  -27  77 
Income taxes paid  -5,602  -1,826  -285  -276  -  -  -5,888  -2,102 
Cash flow from operating activities  8,717  -2,140  -8,626  -2,208  -270  -20  -178  -4,368 
Investing activities
Investments in intangible assets  -1,315  -1,345  -8  -4  -  -  -1,324  -1,348 
Investments in tangible assets  -2,463  -1,947  -3  -1  -  -  -2,466  -1,948 
Investment in leasing vehicles  -  -1  -1,917  -2,117  28  4  -1,888  -2,113 
Disposals of in-/tangible assets and leasing vehicles  65  32  1,228  1,391  -2  -3  1,291  1,420 
Operating cash flow  5,004  -5,400  -9,326  -2,939  -243  -18  -4,565  -8,357 
Investments of shares  -673  -525 
Divestment of shares  -  157 
Acquired operations  -9  - 
Divested operations  196  153 
Interest-bearing receivables incl. marketable securities  -76  -381 
Cash flow after net investments  -5,127  -8,952 
Financing activities
New borrowings ¹  44,727  49,163 
Repayments of borrowings ¹  -39,524  -29,793 
Dividend to owners of AB Volvo  -  - 
Dividend to non-controlling interest  -  - 
Other  3  37 
Change in cash and cash equivalents excl. translation 
differences
 80  10,455 
Translation difference on cash and cash equivalents  212  808 
Change in cash and cash equivalents  292  11,263 
Cash and cash equivalents, beginning of quarter  83,886  62,126 
Cash and cash equivalents, end of quarter  84,178  73,388 
1 The comparative figures are restated due to a reclassification between new borrowings and repayments of borrowings.
                        VOLVO GROUP   — 18 —   THE FIRST QUARTER 2023

===== SIDA 19 =====

CONSOLIDATED NET FINANCIAL POSITION
Net financial position excl. post-employment benefits and lease liabilities Industrial 
Operations Volvo Group
SEK bn Mar 31 
2023
Dec 31 
2022
Mar 31 
2023
Dec 31 
2022
Non-current interest-bearing assets
Non-current customer-financing receivables  -  -  108.2  105.1 
Non-current interest-bearing receivables  7.6  7.2  2.5  1.8 
Current interest-bearing assets
Customer-financing receivables  -  -  97.5  88.9 
Interest-bearing receivables  5.0  5.7  5.0  5.7 
Internal funding  6.6  8.0  -  - 
Marketable securities  0.1  0.1  0.1  0.1 
Cash and cash equivalents  75.3  76.0  84.2  83.9 
Total interest-bearing financial assets  94.6  97.0  297.5  285.4 
Non-current interest-bearing liabilities
Bond loans  -101.1  -102.9  -101.1  -102.9 
Other loans  -20.0  -20.6  -30.0  -30.9 
Internal funding  114.2  110.3  -  - 
Current interest-bearing liabilities
Bond loans  -41.4  -37.8  -41.4  -37.8 
Other loans  -28.1  -22.9  -38.5  -32.8 
Internal funding  59.5  50.8  -  - 
Total interest-bearing financial liabilities excl. lease liabilities  -16.9  -23.1  -211.0  -204.4 
Net financial position excl. post-employment benefits and lease liabilities  77.7  73.9  86.5  81.0 
Provisions for post-employment benefits and lease liabilities, net Industrial 
Operations Volvo Group
SEK bn
Mar 31 
2023
Dec 31 
2022
Mar 31 
2023
Dec 31 
2022
Non-current lease liabilities  -5.1  -4.8  -5.0  -4.8 
Current lease liabilities  -1.9  -1.8  -1.9  -1.8 
Provisions for post-employment benefits, net  -7.2  -6.0  -7.3  -6.0 
Provisions for post-employment benefits and lease liabilities, net  -14.2  -12.6  -14.2  -12.6 
Net financial position incl. post-employment benefits and lease liabilities Industrial 
Operations Volvo Group
SEK bn
Mar 31 
2023
Dec 31 
2022
Mar 31 
2023
Dec 31 
2022
Net financial position excl. post-employment benefits and lease liabilities  77.7  73.9  86.5  81.0 
Provisions for post-employment benefits and lease liabilities, net  -14.2  -12.6  -14.2  -12.6 
Net financial position incl. post-employment benefits and lease liabilities  63.4  61.3  72.3  68.4 
                        VOLVO GROUP   — 19 —   THE FIRST QUARTER 2023

===== SIDA 20 =====

CHANGES IN NET FINANCIAL POSITION, INDUSTRIAL OPERATIONS
First quarter 
SEK bn 2023
Net financial position excl. post-employment benefits and lease liabilities at the end of previous period  73.9 
Operating cash flow  5.0 
Investments and divestments of shares, net  -0.7 
Acquired and divested operations, net  0.2 
Capital injections to/from Financial Services  -0.4 
Currency effect  0.4 
Dividend to owners of AB Volvo  - 
Dividend to non-controlling interest  - 
Other changes  -0.7 
Net financial position excl. post-employment benefits and lease liabilities at the end of period  77.7 
Provisions for post-employment benefits and lease liabilities at the end of previous period  -12.6 
Pension payments, included in operating cash flow  0.1 
Remeasurements of defined post-employment benefits  -1.0 
Service costs and other pension costs  -0.3 
Investments, remeasurements and amortizations of lease contracts  -0.4 
Currency effect  - 
Other changes  -0.1 
Provisions for post-employment benefits and lease liabilities at the end of period  -14.2 
Net financial position incl. post-employment benefits and lease liabilities at the end of period  63.4 
CHANGES IN CONSOLIDATED EQUITY
SEK M
Equity 
attributable to 
owners of AB 
Volvo
Non-controlling 
interest Total equity
Balance as of December 31, 2021  141,045  3,073  144,118 
Income for the period  32,722  247  32,969 
Other comprehensive income for the period  15,417  179  15,596 
Total comprehensive income for the period  48,140  425  48,565 
Dividend  -26,435  -19  -26,454 
Changes in non-controlling interests  -  40  40 
Other changes  -33  -  -33 
Transactions with shareholders  -26,468  20  -26,447 
Balance as of December 31, 2022  162,717  3,519  166,236 
Income for the period  12,910  24  12,934 
Other comprehensive income for the period  -570  12  -558 
Total comprehensive income for the period  12,341  36  12,376 
Dividend  -  -  - 
Changes in non-controlling interests  -  2  2 
Other changes  38  -  37 
Transactions with shareholders  38  2  39 
Balance as of March 31, 2023  175,095  3,556  178,651 
                        VOLVO GROUP   — 20 —   THE FIRST QUARTER 2023

===== SIDA 21 =====

QUARTERLY FIGURES
Income Statements, Volvo Group
SEK M unless otherwise stated 1/2023 4/2022 3/2022 2/2022 1/2022
Net sales  131,420  134,302  114,917  118,943  105,317 
Cost of sales  -96,112  -103,227  -87,594  -90,221  -80,700 
Gross income  35,308  31,076  27,324  28,721  24,617 
Research and development expenses  -6,492  -6,893  -5,595  -5,454  -4,583 
Selling expenses  -7,894  -8,239  -7,046  -6,977  -6,783 
Administrative expenses  -1,663  -1,744  -1,383  -1,432  -1,321 
Other operating income and expenses  -1,980  -2,292  -896  -809  -3,377 
Income/loss from investments in Joint Ventures and associated companies  -171  -351  -536  -323  -123 
Income/loss from other investments  -  -15  1  19  127 
Operating income  17,109  11,541  11,869  13,745  8,556 
Interest income and similar credits  572  453  247  182  125 
Interest expenses and similar charges  -314  -338  -262  -277  -328 
Other financial income and expenses  -570  -1,237  -96  222  674 
Income after financial items  16,797  10,420  11,758  13,873  9,027 
Income taxes  -3,863  -3,730  -3,071  -3,352  -1,956 
Income for the period *  12,934  6,690  8,687  10,520  7,071 
* Attributable to:
Owners of AB Volvo  12,910  6,620  8,627  10,443  7,033 
Non-controlling interest  24  70  61  78  38 
 12,934  6,690  8,687  10,520  7,071 
Key ratios, Volvo Group, %
Gross margin  26.9  23.1  23.8  24.1  23.4 
Research and development expenses as % of net sales  4.9  5.1  4.9  4.6  4.4 
Selling expenses as % of net sales  6.0  6.1  6.1  5.9  6.4 
Administrative expenses as % of net sales  1.3  1.3  1.2  1.2  1.3 
Operating margin  13.0  8.6  10.3  11.6  8.1 
Key ratios, Industrial Operations, %
Gross margin  26.4  22.5  23.0  23.4  22.5 
Research and development expenses as % of net sales  5.1  5.3  5.0  4.7  4.5 
Selling expenses as % of net sales  5.6  5.7  5.7  5.4  6.0 
Administrative expenses as % of net sales  1.3  1.3  1.2  1.2  1.3 
Operating margin  12.8  8.2  9.9  11.2  10.0 
EBITDA margin, Industrial Operations
Operating income Industrial Operations  16,238  10,678  10,990  12,953  10,241 
Product and software development, amortization  696  723  712  697  667 
Other intangible assets, amortization  44  33  27  26  33 
Tangible assets, depreciation  3,143  3,784  3,090  3,093  3,043 
Total depreciation and amortization  3,883  4,541  3,828  3,816  3,743 
Operating income before depreciation and amortization (EBITDA)  20,121  15,219  14,818  16,769  13,984 
EBITDA margin, %  15.8  11.7  13.3  14.5  13.7 
Net capitalization of research and development
Capitalization  1,208  1,114  972  1,296  1,324 
Amortization  -657  -677  -673  -658  -628 
Net capitalization and amortization  551  438  300  638  696 
Return on operating capital in Industrial Operations, % ¹  57.0  50.8  50.1  50.6  50.7 
Return on capital employed in Industrial Operations, % ¹  30.3  27.4  27.4  26.8  25.3 
1  12 months rolling.
                        VOLVO GROUP   — 21 —   THE FIRST QUARTER 2023

===== SIDA 22 =====

QUARTERLY FIGURES
Net sales
SEK M 1/2023 4/2022 3/2022 2/2022 1/2022
Trucks  89,556  87,303  75,078  78,603  69,552 
Construction Equipment  25,109  27,596  24,238  25,814  22,613 
Buses  4,267  6,654  4,817  4,062  3,051 
Volvo Penta  5,603  4,849  4,451  4,597  4,204 
Group Functions & Other  3,779  4,985  3,793  3,750  3,848 
Eliminations  -1,195  -1,175  -950  -1,106  -923 
Industrial Operations  127,117  130,212  111,427  115,719  102,345 
Financial Services  5,370  5,124  4,430  4,067  3,734 
Reclassifications and eliminations  -1,067  -1,033  -940  -844  -762 
Volvo Group  131,420  134,301  114,917  118,943  105,317 
Operating income
SEK M 1/2023 4/2022 3/2022 2/2022 1/2022
Trucks  12,854  7,644  7,539  9,551  7,243 
Construction Equipment  4,587  3,093  3,541  3,568  2,703 
Buses  -1,261  228  99  7  20 
Volvo Penta  1,271  468  593  699  767 
Group Functions & Other  -1,225  -754  -778  -890  -489 
Eliminations  12  -1  -4  19  -3 
Industrial Operations  16,238  10,678  10,990  12,953  10,241 
Financial Services  871  863  879  792  -1,686 
Reclassifications and eliminations  -  1  1  -  1 
Volvo Group  17,109  11,541  11,869  13,745  8,556 
Adjusted operating income ¹
SEK M 1/2023 4/2022 3/2022 2/2022 1/2022
Trucks  12,715  8,274  7,307  9,551  8,690 
Construction Equipment  4,587  3,093  3,773  3,568  2,810 
Buses  178  228  99  7  20 
Volvo Penta  1,271  468  593  699  769 
Group Functions & Other  -1,225  -754  -778  -890  -488 
Eliminations  12  -1  -4  19  -3 
Industrial Operations  17,538  11,308  10,990  12,953  11,798 
Financial Services  871  863  879  792  882 
Reclassifications and eliminations  -  1  1  -  1 
Volvo Group adjusted operating income  18,409  12,171  11,869  13,745  12,681 
1 For more information on adjusted operating income, please see note 6.
Operating margin
% 1/2023 4/2022 3/2022 2/2022 1/2022
Trucks  14.4  8.8  10.0  12.2  10.4 
Construction Equipment  18.3  11.2  14.6  13.8  12.0 
Buses  -29.6  3.4  2.0  0.2  0.7 
Volvo Penta  22.7  9.7  13.3  15.2  18.2 
Industrial Operations  12.8  8.2  9.9  11.2  10.0 
Volvo Group  13.0  8.6  10.3  11.6  8.1 
Adjusted operating margin
% 1/2023 4/2022 3/2022 2/2022 1/2022
Trucks  14.2  9.5  9.7  12.2  12.5 
Construction Equipment  18.3  11.2  15.6  13.8  12.4 
Buses  4.2  3.4  2.0  0.2  0.7 
Volvo Penta  22.7  9.7  13.3  15.2  18.3 
Industrial Operations  13.8  8.7  9.9  11.2  11.5 
Volvo Group adjusted operating margin  14.0  9.1  10.3  11.6  12.0 
                        VOLVO GROUP   — 22 —   THE FIRST QUARTER 2023

===== SIDA 23 =====

QUARTERLY FIGURES
Share data
1/2023 4/2022 3/2022 2/2022 1/2022
Earnings per share, SEK ¹  6.35  3.26  4.24  5.14  3.46 
Earnings per share, SEK ¹, 12 months rolling  18.98  16.09  16.77  15.99  15.23 
Diluted earnings per share, SEK  6.35  3.26  4.24  5.14  3.46 
Number of outstanding shares in millions  2,033  2,033  2,033  2,033  2,033 
Average number of shares before dilution in millions  2,033  2,033  2,033  2,033  2,033 
Average number of shares after dilution in millions  2,033  2,033  2,033  2,033  2,033 
Number of own shares in millions  -  -  -  -  - 
Average number of own shares in millions  -  -  -  -  - 
1 Earnings per share are calculated as Income for the period (excl. Non-controlling interest) divided by the weighted average number of shares outstanding during 
the period.
_________________________________________________________________
NOTE 1 | ACCOUNTING POLICIES
The Volvo Group applies International Financial Reporting Standards 
(IFRS) as endorsed by the EU. The accounting policies and 
definitions are consistently applied with those described in the Volvo 
Group Annual Report 2022 (available at www.volvogroup.com). As 
from January 1, 2023, a new long-term incentive plan has been 
adopted by the Annual General Meeting. The plan is accounted for in 
accordance with IFRS 2 Share-based payments. There are no other 
new accounting policies applicable from 2023 that materially affects 
the Volvo Group.
  This interim report has been prepared in accordance with IAS 34 
Interim Financial Reporting and the Swedish Annual Accounts Act. 
The Parent Company applies the Swedish Annual Accounts Act and 
RFR 2 Reporting for legal entities.
_________________________________________________________________
NOTE 2 | RISKS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
Each of the Volvo Groupʼs Business Areas and Truck Divisions 
monitors and manages risks in its operations. In addition, the Volvo 
Group utilizes a centralized Enterprise Risk Management (ERM) 
reporting process, which is a systematic and structured framework 
for reporting and reviewing risk assessments and mitigations as well 
as for follow-up on identified risks. 
   The ERM process classifies Volvo Group risks into five categories:
Macro and market related risks  – such as the cyclical nature of the 
commercial vehicles industry, intense competition, extensive 
government regulations, political instability and security;
Operational risks – such as transformation and technology risk, new 
business models, risks related to industrial operations, reliance on 
suppliers and scarce materials, cost inflation and price increases, 
cybersecurity and IT infrastructure, strategic transactions such as 
mergers and acquisitions, partnerships and divestments as well as 
residual value commitments; 
Climate and people risks  – such as pandemics, climate and risk 
related to people and culture as well as human rights;
Compliance risks  – such as non-compliance with data protection 
laws, protection and maintenance of intangible assets, legal 
proceedings and corruption and non-compliance with competition 
law; and
Financial risks  – such as insurance coverage, credit risk, pension 
commitments, interest level and currency fluctuations, liquidity risks, 
as well as impairment on goodwill and other intangible assets.
  For a more elaborate description of these risks, please refer to the 
Risk Management section on pages 68-73 in the Volvo Group 
Annual Report 2022.
Risk updates
Short-term risks, when applicable, are also described in the 
respective segment section of this report.
Update on supply situation and inflationary pressure
Our ability to deliver according to market demand depends 
significantly on obtaining a timely and adequate supply of materials, 
components and other vital services, as well as on our ability to 
properly utilize the capacity in the Groupʼs different production and 
services facilities. At present, our supply chain and industrial system 
are strained in many areas due to e.g. shortages of labor, materials 
and components, and transport services. Further strains on the 
supply chain may also evolve from other events, including financial 
distress of suppliers and consequences of the war in Ukraine. There 
might be supply chain disturbances and stoppages in production 
going forward. Such disturbances could lead to higher costs and 
interruptions in production and delivery of Group products and 
services, that could have a material negative impact on the Groupʼs 
financial performance.
  The Group might experience higher input costs from increased 
prices on e.g. purchased material, freight and energy as well as 
higher labor costs. If the Group is unable to compensate for the 
higher input costs through increased prices on products and services 
sold, this could have a negative impact on the Groupʼs financial 
performance
Accounts receivable
Due to the prevailing business model in the construction equipment 
industry in China, with long payment terms to customers, a 
substantial part of the Volvo Groupʼs accounts receivable is related 
to customers in this market. The weakened Chinese construction 
equipment market is currently impacting customersʼ and dealersʼ 
profitability negatively. This might affect their ability to honor their 
obligations to the Group and may consequently have a material 
adverse effect on the Groupʼs financial result and position.
                        VOLVO GROUP   — 23 —   THE FIRST QUARTER 2023

===== SIDA 24 =====

Detected premature degradation of emissions control component
As previously communicated, the Volvo Group has detected that an 
emissions control component used in certain markets and models, 
may degrade more quickly than expected, affecting the vehicles 
emission performance negatively. The Volvo Group made a provision 
of SEK 7 billion impacting the operating income in Q4 2018, relating 
to the estimated costs to address the issue. Negative cash flow 
effects started in 2019 and will continue in the coming years. The 
Volvo Group will continuously assess the size of the provision as the 
matter develops.
Financial impact from the war in Ukraine
In Q1 2022, the Volvo Group reported that out of the Group's total 
assets related to Russia of approximately SEK 9 billion, SEK 4.1 
billion had been provisioned for and impacting operating income 
negatively in Q1 2022. As of the end of this quarter, the Groupʼs total 
exposure for additional impairment needs related to Russia largely 
remains unchanged. In 2021, approximately 3% of the Groupʼs net 
sales were attributable to Russia.
  The Group follows developments closely, but the situation with 
rapid and sometimes unpredictable changes may persist. No 
predictions can hence be made on the full impact from the war and 
ensuing sanctions on Groupʼs assets in the region or on the general 
economic development. Further write-downs of the Groupʼs assets 
related to Russia may be necessary in the coming periods, which 
could have a materially adverse effect on the Groupʼs financial result, 
cash flow and financial position.
Contingent liabilities and contingent assets
The reported amounts for contingent liabilities reflect a part of Volvo 
Groupʼs risk exposure. Total contingent liabilities as of March 31, 
2023, amounted to SEK 17.3 billion, an decrease of SEK 0.9 billion 
compared to December 31, 2022 . The gross exposure of SEK 17.3 
billion is partly reduced by counter guarantees and collaterals.
Legal proceedings
Starting in January 2011, the Volvo Group, together with a number of 
other truck manufacturers, was investigated by the European 
Commission in relation to a possible violation of EU antitrust rules. In 
July 2016 the European Commission adopted a settlement decision 
against the Volvo Group and other truck manufacturers finding that 
they were involved in an antitrust infringement which, in the case of 
the Volvo Group, covered a 14-year period from 1997 to 2011. The 
Volvo Group paid a monetary fine of EUR 670 million.
  Following the adoption of the European Commissionʼs settlement 
decision, the Volvo Group has received and is defending itself 
against a significant number of private damages claims brought by 
customers and other third parties alleging that they suffered loss, 
directly or indirectly, by reason of the conduct covered in the 
decision. The claims relate primarily to Volvo Group trucks sold 
during the 14-year period of the infringement and, in some cases, to 
trucks sold in certain periods after the infringement ended. Some 
claims have also been made against the Volvo Group that relate to 
trucks sold by other manufacturers. The truck manufacturers subject 
to the 2016 settlement decision are, in most countries, jointly and 
severally liable for any losses arising from the infringement.
  In the region of 3,000 claims are being brought in over 20 
countries (including EU Member States, the United Kingdom, 
Norway and Israel) by large numbers of claimants either acting 
individually or as part of a wider group or class of claimants. Further 
claims may be commenced. The litigation in many countries can be 
expected to run for several years.
  Several hundred thousand trucks sold by the Volvo Group are 
currently subject to claims against it or other truck manufacturers, 
with claimants alleging that the infringement resulted in an increase 
in the prices paid for Volvo Group trucks which directly or indirectly 
caused them loss.
  The Volvo Group maintains its firm view that no damage was 
caused to its customers or any third party by the conduct set out in 
the settlement decision, and in fact, the Commission did not assess 
any potential effects on the market. The transaction prices our 
customers paid for their trucks were unaffected by the infringement 
and were the outcome of individual negotiations across all elements 
of their purchasing requirements, including not only the prices for 
new trucks but also (where relevant) associated products and 
services sold together with new trucks such as service contracts, 
financing, buy-back guarantees etc.
  Litigation developments so far have been mixed with some adverse 
developments, although uncertainty remains high and it is inherent in 
complex litigation that outlooks and risks fluctuate over time. 
  At this stage it is not possible to make a reliable estimate of the 
total liability that could arise from such proceedings given the 
complexity of the claims and the different (and in some cases 
relatively early) stages to which national proceedings have 
progressed. However, the litigation is substantial in scale and any 
adverse outcome or outcomes of some or all of the litigation, 
depending on the nature and extent of such outcomes, may have a 
material negative impact on the Volvo Groupʼs financial results, cash 
flows and financial position. The Volvo Group has recognized costs, 
besides legal fees to advisors, which relate to certain limited aspects 
of the litigation that are currently possible to estimate and where an 
outflow of resources is probable. This is Volvo Group's current 
assessment, which may change depending on the progress of the 
litigation.
                        VOLVO GROUP   — 24 —   THE FIRST QUARTER 2023

===== SIDA 25 =====

NOTE 3 | ACQUISITIONS AND DIVESTMENTS
The Volvo Group has not made any acquisitions or divestments of 
operations during Q1 that have had a material impact on the financial 
statements. 
Assets held for sale amounted to net SEK 247 M (-) as of March 31, 
2023 mainly related to planned property divestments.
_________________________________________________________________
NOTE 4 | CURRENCY AND FINANCIAL INSTRUMENTS
Fair value of financial instruments
Valuation principles and classifications of Volvo Group financial 
instruments, as described in Volvo Group Annual Report 2022 Note 
30, have been consistently applied throughout the reporting period. 
Financial instruments in the Volvo Group reported at fair value 
through profit and loss consist mainly of interest and currency 
derivatives. Derivatives with positive fair values amounted to SEK 
6.5 billion (6.3) and derivatives with negative fair values amounted to 
SEK 8.8 billion (9.0) as of March 31, 2023.
The derivatives are accounted for on gross basis. Financial liabilities 
valued at amortized cost, reported as current and non-current bond 
loans and other loans, amounted to SEK 212.2 billion (205.0) in 
reported carrying value with a fair value of SEK 208.5 billion (201.3). 
In the Volvo Group consolidated financial position, financial liabilities 
include loan-related derivatives with negative fair values amounting 
to SEK 5.8 billion (5.9).
Currency effect on operating income, Volvo Group Compared to first quarter 2022
SEK M
First quarter 
2023
First quarter 
2022 Change
Net flow in foreign currency  413 
Realized and unrealized gains and losses on derivatives  -1  -  -1 
Unrealized gains and losses on receivables and liabilities in foreign currency  241  -62  303 
Translation effect on operating income in foreign subsidiaries  954 
Total currency effect on operating income, Volvo Group 1,669
Applicable currency rates Quarterly exchange rates Close rates
First quarter 
2023
First quarter 
2022
Mar 31 Mar 31
2023 2022
BRL  2.01  1.79  2.03  1.94 
CNY  1.52  1.47  1.51  1.46 
EUR  11.20  10.48  11.28  10.34 
GBP  12.68  12.53  12.81  12.17 
KRW  0.0082  0.0078  0.0079  0.0076 
USD  10.43  9.34  10.35  9.26 
__________________________________________________________________________________________________
NOTE 5 | TRANSACTIONS WITH RELATED PARTIES
Sales of goods, services 
and other income
Purchases of goods, services 
and other expenses
SEK M 
First quarter 
2023
First quarter 
2022
First quarter 
2023
First quarter 
2022
Associated companies  513  175  52  23 
Joint ventures  391  382  325  314 
 
Receivables Payables 
Mar 31 Dec 31 Mar 31 Dec 31
SEK M 2023 2022 2023 2022
Associated companies  325  113  52  63 
Joint ventures  396  472  88  122 
                        VOLVO GROUP   — 25 —   THE FIRST QUARTER 2023

===== SIDA 26 =====

NOTE 6 | RECONCILIATION OF ADJUSTED OPERATING INCOME
Adjusted operating income
SEK M 1/2023 4/2022 3/2022 2/2022 1/2022
Trucks 12,715 8,274 7,307 9,551 8,690
Construction Equipment 4,587 3,093 3,773 3,568 2,810
Buses 178 228 99 7 20
Volvo Penta 1,271 468 593 699 769
Group Functions & Other -1,225 -754 -778 -890 -488
Eliminations 12 -1 -4 19 -3
Industrial Operations 17,538 11,308 10,990 12,953 11,798
Financial Services 871 863 879 792 882
Reclassifications and eliminations - 1 1 - 1
Volvo Group adjusted operating income 18,409 12,171 11,869 13,745 12,681
Adjustments
SEK M 1/2023 4/2022 3/2022 2/2022 1/2022
Adjustment items (segment)
Restructuring charges relating to the European bus operation (Buses)  -1,300  -  -  -  - 
Previously announced provision for premature degradation of an emission control 
component
Trucks  139  -  -  -  - 
Buses  -139  -  -  -  - 
Costs relating to claims arising from the European Commissionʼs 2016 antitrust settlement 
decision (Trucks)
 -  -630  -  -  - 
Financial impact related to Russia:
Trucks  -  -  232  -  -1,447 
Construction Equipment  -  -  -232  -  -106 
Volvo Penta  -  -  -  -  -3 
Group Functions & Other  -  -  -  -  -1 
Financial Services  -  -  -  -  -2,568 
Total adjustments
Trucks  139  -630  232  -  -1,447 
Construction Equipment  -  -  -232  -  -106 
Buses  -1,439  -  -  -  - 
Volvo Penta  -  -  -  -  -3 
Group Functions & Other  -  -  -  -  -1 
Industrial Operations  -1,300  -630  -  -  -1,557 
Financial Services  -  -  -  -  -2,568 
Reclassifications and eliminations  -  -  -  -  - 
Volvo Group  -1,300  -630  -  -  -4,125 
Operating income
SEK M 1/2023 4/2022 3/2022 2/2022 1/2022
Trucks  12,854  7,644  7,539  9,551  7,243 
Construction Equipment  4,587  3,093  3,541  3,568  2,703 
Buses  -1,261  228  99  7  20 
Volvo Penta  1,271  468  593  699  767 
Group Functions & Other  -1,225  -754  -778  -890  -489 
Eliminations  12  -1  -4  19  -3 
Industrial Operations  16,238  10,678  10,990  12,953  10,241 
Financial Services  871  863  879  792  -1,686 
Reclassifications and eliminations  -  1  1  -  1 
Volvo Group  17,109  11,541  11,869  13,745  8,556 
For reconciliation of other key ratios, see www.volvogroup.com
                        VOLVO GROUP   — 26 —   THE FIRST QUARTER 2023

===== SIDA 27 =====

PARENT COMPANY
Income from investments in group companies for the first quarter  
includes additional payment of earnout from divestment of UD 
Trucks amounting to SEK 49 M. The first quarter previous year 
included dividends of SEK 3,814 M.
Financial net debt amounted to SEK 3,978 M (22,213) at the end of 
the first quarter .
Income statement First quarter 
SEK M 2023 2022
Net sales¹  70  65 
Cost of sales¹  -70  -65 
Gross income  -  - 
Operating expenses¹  -368  -303 
Operating income (loss)  -368  -303 
Income from investments in group companies  49  3,814 
Income from investments in joint ventures and associated companies  -  - 
Income from investments, other shares and participations  -  - 
Interest income and expenses  -160  -71 
Other financial income and expenses  -54  22 
Income after financial items  -533  3,462 
Appropriations  -  - 
Income taxes  91  60 
Income for the period  -442  3,522 
1 Of net sales in the first quarter, SEK 67 M (61) pertained to group companies, while purchases from group companies amounted to SEK 106 M (80).
Other comprehensive income
Income for the period  -442  3,522 
Other comprehensive income, net of income taxes  -  - 
Total comprehensive income for the period  -442  3,522 
                        VOLVO GROUP   — 27 —   THE FIRST QUARTER 2023

===== SIDA 28 =====

Balance sheet
SEK M
Mar 31 
2023
Dec 31 
2022
Assets
Non-current assets
Tangible assets  7  7 
Financial assets
   Shares and participations in group companies  70,987  70,987 
   Investments in joint ventures and associated companies  8,946  8,946 
   Other shares and participations  2  2 
   Other long-term receivables  438  593 
   Deferred tax assets  307  217 
Total non-current assets  80,687  80,752 
Current assets
Current receivables from group companies  146  29,316 
Other current receivables  304  251 
Tax assets  605  - 
Total current assets  1,055  29,567 
Total assets  81,742  110,319 
Equity and liabilities
Equity
   Restricted equity  9,899  9,899 
   Unrestricted equity  59,062  59,504 
Total Equity  68,961  69,403 
Untaxed reserves  7,500  7,500 
Provisions  257  259 
Non-current liabilities¹  480  405 
Current liabilities²  4,544  32,752 
Total equity and liabilities  81,742  110,319 
1 Of which SEK 475 M (400) pertains to group companies.
2 Of which SEK 3,843 M (28,819) pertains to group companies.
Events after the balance sheet date
For important events, please see page 6. No other significant events have occurred after the end of the first quarter 2023 that are expected to 
have a material effect on the Volvo Group.
Gothenburg, April 20, 2023
AB Volvo (publ)
Martin Lundstedt
President and CEO
This report has not been reviewed by AB Volvoʼs auditors.
                        VOLVO GROUP   — 28 —   THE FIRST QUARTER 2023

===== SIDA 29 =====

NET ORDER INTAKE
Net order intake of trucks First quarter Change 
%Number of trucks 2023 2022
Net order intake 
Europe  31,290  24,984  25 
Heavy- and medium-duty  26,055  19,631  33 
Light-duty  5,235  5,353  -2 
North America  15,159  6,017  152 
South America  5,212  7,354  -29 
Asia  5,336  4,766  12 
Africa and Oceania  3,043  2,473  23 
Total order intake  60,040  45,594  32 
Heavy-duty (>16 tons)  49,901  36,861  35 
Medium-duty (7-16 tons)  4,831  3,272  48 
Light-duty (<7 tons)  5,308  5,461  -3 
Total order intake  60,040  45,594  32 
Net order intake of trucks by brand
Volvo
Europe  17,367  10,937  59 
North America  7,554  4,220  79 
South America  4,924  7,020  -30 
Asia  4,232  3,357  26 
Africa and Oceania  1,879  1,623  16 
Total Volvo  35,956  27,157  32 
Heavy-duty (>16 tons)  34,742  25,816  35 
Medium-duty (7-16 tons)  1,214  1,341  -9 
Total Volvo  35,956  27,157  32 
Renault Trucks
Europe  13,923  14,047  -1 
Heavy- and medium-duty  8,688  8,694  - 
Light-duty  5,235  5,353  -2 
North America  50  65  -23 
South America  127  116  9 
Asia  1,104  1,409  -22 
Africa and Oceania  537  504  7 
Total Renault Trucks  15,741  16,141  -2 
Heavy-duty (>16 tons)  8,528  9,065  -6 
Medium-duty (7-16 tons)  1,905  1,615  18 
Light-duty (<7 tons)  5,308  5,461  -3 
Total Renault Trucks  15,741  16,141  -2 
Mack
North America  7,555  1,732  336 
South America  149  172  -13 
Africa and Oceania  229  127  80 
Total Mack  7,933  2,031  291 
Heavy-duty (>16 tons)  6,268  1,816  245 
Medium-duty (7-16 tons)  1,665  215  674 
Total Mack  7,933  2,031  291 
                        VOLVO GROUP   — 29 —   THE FIRST QUARTER 2023

===== SIDA 30 =====

DELIVERIES
Deliveries of trucks First quarter Change 
%Number of trucks 2023 2022
Deliveries
Europe  32,850  29,089  13 
Heavy- and medium-duty  26,702  24,276  10 
Light-duty  6,148  4,813  28 
North America  16,011  13,908  15 
South America  4,475  6,245  -28 
Asia  5,742  3,697  55 
Africa and Oceania  2,453  2,649  -7 
Total deliveries  61,531  55,588  11 
Heavy-duty (>16 tons)  50,684  46,889  8 
Medium-duty (7-16 tons)  4,604  3,818  21 
Light-duty (<7 tons)  6,243  4,881  28 
Total deliveries  61,531  55,588  11 
Deliveries of trucks by brand
Volvo
Europe  17,189  15,638  10 
North America  8,306  7,640  9 
South America  4,297  6,030  -29 
Asia  4,449  2,913  53 
Africa and Oceania  1,548  1,640  -6 
Total Volvo  35,789  33,861  6 
Heavy-duty (>16 tons)  34,705  33,050  5 
Medium-duty (7-16 tons)  1,084  811  34 
Total Volvo  35,789  33,861  6 
Renault Trucks
Europe  15,661  13,451  16 
Heavy- and medium-duty  9,513  8,638  10 
Light-duty  6,148  4,813  28 
North America  50  23  117 
South America  81  128  -37 
Asia  1,293  784  65 
Africa and Oceania  411  354  16 
Total Renault Trucks  17,496  14,740  19 
Heavy-duty (>16 tons)  9,345  8,252  13 
Medium-duty (7-16 tons)  1,908  1,607  19 
Light-duty (<7 tons)  6,243  4,881  28 
Total Renault Trucks  17,496  14,740  19 
Mack
North America  7,655  6,245  23 
South America  83  78  6 
Africa and Oceania  220  195  13 
Total Mack  7,958  6,518  22 
Heavy-duty (>16 tons)  6,388  5,211  23 
Medium-duty (7-16 tons)  1,570  1,307  20 
Total Mack  7,958  6,518  22 
                        VOLVO GROUP   — 30 —   THE FIRST QUARTER 2023

===== SIDA 31 =====

This report contains forward-looking statements that reflect the Board of Directorsʼ and managementʼs current views with respect to certain 
future events and potential financial performance. Forward-looking statements are subject to risks and uncertainties. Results could differ 
materially from forward-looking statements as a result of, among other factors, (i) changes in economic, market and competitive conditions, 
(ii) success of business initiatives, (iii) changes in the regulatory environment and other government actions, (iv) fluctuations in exchange 
rates and (v) business risk management.
   This report is based solely on the circumstances at the date of publication and except to the extent required under applicable law, AB Volvo 
is under no obligation to update the information, opinions or forward-looking statements in this report.
                        VOLVO GROUP   — 31 —   THE FIRST QUARTER 2023

===== SIDA 32 =====

Financial calendar
Report on the second quarter 2023 July 19 2023
Report on the third quarter 2023 October 18 2023
Contacts
Media relations:
Claes Eliasson +46 765 53 72 29
Investor Relations:
Christer Johansson +46 739 02 25 22
Johan Bartler +46 739 02 21 93
Anders Christensson +46 765 53 59 66
Aktiebolaget Volvo (publ)
556012–5790
Investor Relations, VGHQ
SE-405 08 Göteborg, Sweden
Tel +46 31 66 00 00
www.volvogroup.com
                        VOLVO GROUP   — 32 —   THE FIRST QUARTER 2023