===== 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