===== SIDA 1 ===== V O L V O G R O U P R E P O R T O N T H E F I R S T Q U A R T E R 2 0 2 4 Net sales amounted to SEK 131.2 billion (131.3) — — — — — — — — — — — — — — Adjusted operating income amounted to SEK 18,159 M (18,566) — — — — — — — — — — — — — — ===== SIDA 2 ===== • In Q1 2024, net sales were on the same level as in the previous year and amounted to SEK 131.2 billion (131.3). Also when adjusted for currency movements, net sales were flat. • Adjusted operating income1 amounted to SEK 18,159 M (18,566), corresponding to an adjusted operating margin of 13.8% (14.0). There were no adjustments in Q1 2024. In Q1 2023, a negative effect of SEK 1,300 M was excluded from adjusted operating income. • Reported operating income amounted to SEK 18,159 M (17,266). • Currency movements had a negative impact on operating income of SEK 346 M. • Earnings per share amounted to SEK 6.92 (6.35). • Operating cash flow in the Industrial Operations amounted to SEK 8,896 M (5,004). • Return on capital employed in the Industrial Operations amounted to 37.7% (30.3). 131.3 131.2 Q1 2023 Q2 Q3 Q4 Q1 2024 18.6 18.2 14.0% 13.8% Q1 2023 Q2 Q3 Q4 Q1 2024 30.3% 37.7% Q1 2023 Q2 Q3 Q4 Q1 2024 First quarter SEK M unless otherwise stated 2024 2023 Net sales 131,177 131,303 Adjusted operating income¹ 18,159 18,566 Adjusted operating margin, % 13.8 14.0 Operating income² 18,159 17,266 Operating margin, % 13.8 13.0 Income after financial items 18,442 16,797 Income for the period 14,103 12,934 Earnings per share, SEK 6.92 6.35 Operating cash flow in Industrial Operations 8,896 5,004 Net financial position in Industrial Operations³, SEK bn 88.7 77.7 Return on capital employed in Industrial Operations⁴, % 37.7 30.3 Return on equity in Financial Services⁴, % 13.0 11.0 Net order intake, number of trucks 48,701 60,040 Deliveries, number of trucks 55,470 61,531 Net order intake, number of construction equipment 13,851 13,342 Deliveries, number of construction equipment 14,456 14,468 1 For information on adjusted operating income, please see note 6. 2 As from 2024, elimination of internal interest income related to internal funding from Volvo Treasury AB to Financial Services is reclassified from finance net to gross income. The comparative figures in the financial statements for 2023 have been restated accordingly, impacting operating income positively with SEK 158 M in Q1 2023. The effect on key ratios is insignificant. 3 Excluding post-employment benefits and lease liabilities. 4 12 months rolling. On the cover: Volvo Trucks' new heavy-duty range. Q1 VOLVO GROUP THE FIRST QUARTER 2024 2 IN BRIEF Net sales, SEK bn Adjusted operating income, SEK bn 1 Adjusted operating margin, % Return on capital employed Industrial Operations, % 4 ===== SIDA 3 ===== During Q1 2024, demand continued to normalize at good levels across many of the Volvo Groupʼs markets. Adjusted for currency, net sales were on the same level as in Q1 2023 and amounted to SEK 131.2 billion. Invoiced price continued to increase, mainly on the back of carry-over from the price increases we gradually implemented last year. Adjusted operating income amounted to SEK 18.2 billion (18.6), which corresponds to a margin of 13.8% (14.0). Return on capital employed improved to 37.7% (30.3). We continue to prioritize quality in the business. Operating cash flow in our Industrial Operations amounted to SEK 8.9 billion (5.0), driven by the earnings and good inventory management. At the end of the quarter, we had a net financial position of SEK 88.7 billion, excluding pension and lease liabilities and before the distribution of the dividend in April. Overall, utilization of vehicles and machines remained on a good level and this supported the service business, which grew by 6% adjusted for currency. The service business is an area of priority because it contributes to improving our customersʼ productivity, strengthens our relationships and provides financial resilience for the Volvo Group. On a rolling 12 month basis we have service revenues of SEK 129 billion. In Q1, we delivered 55,470 trucks, which was 10% fewer than in the year before and net order intake declined by 19% to 48,701 trucks. In Europe, order backlogs and lead times have normalized. Through the quarter we gradually reduced production capacity in Europe and anticipate to be in balance during Q2. In North America, Mack Trucksʼ order backlogs are still extended, partly due to the strike in November, which pushed already sold production slots from 2023 into 2024. Therefore, Mack has been restrictive in slotting orders into production. In Brazil, both deliveries and order intake increased significantly. Overall, net sales in our truck business were on par with last year and amounted to SEK 89.9 billion (89.6). The adjusted operating margin increased to 14.5% (14.2). In Q1, Volvo Trucks unveiled an all-new heavy-duty truck platform for the North American market in parallel to a new heavy-duty truck range for Europe, Australia and markets in Asia and Africa. The new ranges provide significant improvements in energy efficiency and customer profitability. We also continue to develop our presence in North America and have decided to add capacity by building a new plant for cabs and final assembly for Volvo Trucks and Mack Trucks in Mexico. We plan to have the plant up and running in 2026 and it will be a strong complement to our main sites in Virginia and Pennsylvania in the US. For Construction Equipment, demand for new machines has come down in many markets, particularly in Europe. In Q1, deliveries of 14,456 machines were on the same level as in the previous year, while order intake went up by 4%. Both deliveries and order intake decreased in Europe and North America, whereas they increased in China driven by SDLG. Construction Equipmentʼs net sales decreased by 9% to SEK 22.9 billion and the adjusted operating margin declined to 16.1% (18.3). In Q1, deliveries of buses increased in Europe and North America on the back of a continued increase in travel. Net sales in Buses rose by 21% to SEK 5.2 billion. The adjusted operating margin improved to 5.0% (4.2). For Volvo Penta, end customer demand has weakened in both the marine and industrial segment. Net sales decreased by 8% to SEK 5.2 billion and the adjusted operating margin amounted to 19.1% (22.7). For Volvo Financial Services, the credit portfolio continued to perform well with low levels of overdues and credit losses. The adjusted operating income amounted to SEK 1,009 M (871). In Q1, we finalized the acquisition of the battery business from Proterra, thereby fast-forwarding our establishment of a value chain for batteries in North America. We also signed the final agreements to establish a joint venture with Westport regarding high pressure injectors, which is a technology suited for combustion engines running on carbon-neutral or zero-carbon fuels like biogas or hydrogen. Furthermore, we completed the creation of Flexis, which is a joint venture with Renault SAS and CMA CGM Group, for an all-new generation of electric vans for last mile delivery, which is an area with good growth prospects. The continued strengthening of our customersʼ competitiveness and the Volvo Groupʼs performance remain our core priorities. We are committed to driving the day-to-day performance of our business and the transformation of our industries towards safer and more sustainable solutions. Keys to maintaining good profitability over the business cycle are a strong focus on our service business, volume flexibility in the industrial system and tight cost control across the organization. At the same time, we will continue to drive R&D investments in the new technologies and services that are transforming our industries. Martin Lundstedt President and CEO Q1 VOLVO GROUP THE FIRST QUARTER 2024 3 CEO'S COMMENTS “We are committed to driving the day-to-day performance of our business and the transformation of our industries towards safer and more sustainable solutions.” Good profitability on lower volumes ===== SIDA 4 ===== Acquisition of battery business from Proterra completed On February 1, 2024, it was announced that the Volvo Group had completed the previously announced transaction whereby the Group acquired the battery business from Proterra Inc. and Proterra Operating Company Inc. The acquisition, which was made at a purchase price of SEK 2.4 billion, includes a development center for battery modules and packs in California and an assembly factory in Greer, South Carolina. The assets as well as the skills and competence of the Proterra team are great complements to the Volvo Group's current footprint and enables the Group to accelerate its battery-electric roadmap. The transaction has no material impact on the Volvo Group's financial performance. Agreement with Westport for joint venture On March 11, 2024, it was announced that the Volvo Group had signed an agreement according to the previously announced Letter of Intent with Westport Fuel Systems Inc to establish a joint venture to accelerate the commercialization and global adoption of Westportʼs High Pressure Direct Injection fuel system technology for long-haul and off-road applications. As previously announced, Westport will contribute certain HPDI assets and opportunities, including related fixed assets, intellectual property, and business, into the joint venture. Volvo Group will acquire a 45% interest in the joint venture for approximately SEK 290 M plus up to an additional approximately SEK 460 M depending on the performance of the joint venture. It is anticipated that the joint venture will become operational following the formal closing which is expected in the second quarter of 2024, subject to certain conditions, including regulatory and government approvals. Creation of Flexis completed On March 22, 2024, it was announced that Volvo Group and Renault Group had obtained all the required regulatory approvals and had officially launched the new company Flexis SAS for the next generation fully electric and software defined vehicles. The new company, which will be based in France, will address the growing needs of decarbonized and efficient urban logistics. Volvo Group and Renault Group plan to invest EUR 300 M respectively over the next three years. The initial investment for Volvo Groupʼs share in Flexis amounted to SEK 2.4 billion. On April 3, 2024, CMA CGM Group acquired a 10% stake in Flexis and will invest up to EUR 120 M by 2026. Annual General Meeting of AB Volvo AB Volvoʼs Annual General Meeting on March 27, 2024, 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 7.50 per share and an extraordinary dividend of SEK 10.50 per share should be paid to the shareholders. April 2, 2024, 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 2023 fiscal year. Matti Alahuhta, Bo Annvik, Jan Carlson, Eric Elzvik, Martha Finn Brooks, Kurt Jofs, Martin Lundstedt, Kathryn V. Marinello, Martina Merz and Helena Stjernholm were re-elected as members of the Board. Pär Boman was elected as new member of the Board and Chairman. The auditing firm Deloitte AB was re-elected as Auditor for the period until the close of the Annual General Meeting 2025, in accordance with the Election Committeeʼs proposal and the Boardʼs and the Audit Committeeʼs recommendation. Fredrik Persson (AB Industrivärden), Anders Oscarsson (AMF and AMF Funds), Carina Silberg (Alecta), Anders Algotsson (AFA Insurance) and the Chairman of the Board were elected members of the Election Committee. The Annual General Meeting approved the Boardʼs remuneration report. Volvo Group to increase North American heavy-duty truck production capacity On April 11, 2024, Volvo Group announced that it will build a new heavy-duty truck manufacturing plant in Mexico to supplement the Groupʼs U.S. production. The plant will provide additional capacity to support the growth plans of both Volvo Trucks and Mack Trucks in the U.S. and Canadian markets and support Mack's truck sales in Mexico and Latin America. The plant is expected to be operational in 2026. The new plant will be approximately 1.7 million square feet in size, and will focus on production of heavy- duty conventional vehicles for the Volvo and Mack brands. It will be a complete conventional vehicle assembly facility including cab body-in-white production and paint. Detailed information about the events is available at www.volvogroup.com Q1 VOLVO GROUP THE FIRST QUARTER 2024 4 IMPORTANT EVENTS ===== SIDA 5 ===== Net sales In Q1 2024, the Volvo Groupʼs net sales amounted to SEK 131,177 M compared with SEK 131,303 M in the same quarter the preceding year. Sales increased in North America and South America but decreased in Europe, Asia and Africa and Oceania. Also when adjusted for currency movements, net sales were on the same level as in Q1 2023, of which vehicle sales decreased by 2% and service sales increased by 6%. Operating income In Q1 2024, adjusted operating income amounted to SEK 18,159 M (18,566), corresponding to an adjusted operating margin of 13.8% (14.0). There were no adjustments in Q1 2024. Adjusted operating income in Q1 2023 excluded a negative effect of SEK 1,300 M from a restructuring provision in Buses. For more information on adjusted operating income, please see Note 6. Compared with Q1 2023, the adjusted operating income was negatively affected by lower volumes and industrial utilization as well as higher selling, administrative and R&D expenses, which were partly offset by price realization and lower material costs. Currency movements, compared with Q1 2023, had a negative impact of SEK 346 M. Reported operating income in Q1 2024 amounted to SEK 18,159 M (17,266). Financial items In Q1 2024, interest income was SEK 885 M (572) as a consequence of higher interest rates on financial assets, whereas interest expenses amounted to SEK -364 M (-472). Other financial income and expenses amounted to SEK -238 M (-570). The change is primarily due to revaluation effects of financial assets and liabilities. Income taxes In Q1 2024, income taxes amounted to SEK -4,339 M (-3,863). The tax rate was 23.5% (23.0). Income for the period and earnings per share In Q1 2024, income for the period amounted to SEK 14,103 M (12,934). Earnings per share amounted to SEK 6.92 (6.35). Consolidated Income Statement First quarter SEK M 2024 2023 Net sales 131,177 131,303 Cost of sales -94,395 -95,837 Gross income 36,781 35,466 Research and development expenses -7,332 -6,492 Selling expenses -8,617 -7,894 Administrative expenses -1,964 -1,663 Other operating income and expenses -567 -1,980 Income/loss from investments in joint ventures and associated companies -142 -171 Income/loss from other investments – – Operating income 18,159 17,266 Interest income and similar credits 885 572 Interest expenses and similar charges -364 -472 Other financial income and expenses -238 -570 Income after financial items 18,442 16,797 Income taxes -4,339 -3,863 Income for the period * 14,103 12,934 * Attributable to: Owners of AB Volvo 14,080 12,910 Non-controlling interest 23 24 14,103 12,934 Basic earnings per share, SEK 6.92 6.35 Diluted earnings per share, SEK 6.92 6.35 Q1 VOLVO GROUP THE FIRST QUARTER 2024 5 FINANCIAL SUMMARY ===== SIDA 6 ===== Net sales First quarter Change %SEK M 2024 2023 Net sales per geographical region Europe 56,861 57,404 -1 North America 40,888 40,153 2 South America 11,428 9,566 19 Asia 14,710 16,488 -11 Africa and Oceania 7,289 7,692 -5 Total net sales 131,177 131,303 – Net sales per product group Vehicles 98,841 100,732 -2 Services 32,336 30,571 6 Total net sales 131,177 131,303 – Timing of revenue recognition Revenue of vehicles and services recognized at the point of delivery 117,799 119,878 -2 Revenue of vehicles and services recognized over contract period 13,377 11,425 17 Total net sales 131,177 131,303 – Operating cash flow in the Industrial Operations During Q1 2024 operating cash flow in the Industrial Operations was positive in an amount of SEK 8,896 M (5,004). Compared with Q1 2023, the higher operating cash flow is primarily related to the higher earnings and good inventory management. 5.0 8.9 Q1 2023 Q2 Q3 Q4 Q1 2024 Q1 VOLVO GROUP THE FIRST QUARTER 2024 6 FINANCIAL SUMMARY Operating cash flow Industrial Operations, SEK bn ===== SIDA 7 ===== Volvo Group financial position During Q1 2024, net financial assets in the Industrial Operations, excluding provisions for post-employment benefits and lease liabilities, increased by SEK 5.3 billion resulting in a net financial asset position of SEK 88.7 billion (83.4) on March 31, 2024. The change is mainly explained by a positive operating cash flow of SEK 8.9 billion, partly reduced by the acquisition of the battery business from Proterra Inc. and Proterra operating company Inc. by SEK 2.4 billion and from the investment of shares in Flexis SAS, a newly formed joint venture with Renault Group and CMA CGM Group, by SEK 2.4 billion. Currency movements increased net financial assets by SEK 1.6 billion. Including provisions for post-employment benefits and lease liabilities, the Industrial Operations net financial assets amounted to SEK 71.8 billion (66.7) on March 31, 2024. During Q1 2024, remeasurements of defined benefit pension plans had a positive impact of SEK 0.6 billion. Total assets in the Volvo Group increased by SEK 45.8 billion compared with Q1 2023 whereof SEK 22.5 billion is related to currency movements. On March 31, 2024, total equity for the Volvo Group amounted to SEK 163.9 billion compared with SEK 180.7 billion at year end 2023. The equity ratio was 22.8% (26.8). On the same date the equity ratio in the Industrial Operations amounted to 30.2% (36.2). 77.7 88.7 Q1 2023 Q2 Q3 Q4 Q1 2024 Number of employees On March 31, 2024, the Volvo Group had 104,905 employees, including temporary employees and consultants, compared with 104,251 employees on March 31, 2023. The number of blue-collar employees decreased by 1,887 and the number of white-collar employees increased by 2,541. The decrease in blue-collar employees is related to lower production levels and the increase in white-collar employees is related to higher development and transformational activities. Blue-collar 51,599 51,424 53,486 Whereof temporary employees and consultants 6,153 6,002 8,567 White-collar 53,306 52,723 50,765 Whereof temporary employees and consultants 7,510 7,410 7,366 Total number of employees 104,905 104,147 104,251 Whereof temporary employees and consultants 13,663 13,412 15,933 Number of employees Mar 31 2024 Dec 31 2023 Mar 31 2023 Q1 VOLVO GROUP THE FIRST QUARTER 2024 7 FINANCIAL SUMMARY Net financial position excl. post-employment benefits and lease liabilities Industrial Operations, SEK bn ===== SIDA 8 ===== Net sales First quarter Change % Change %¹ 12 months rolling Jan-Dec SEK M 2024 2023 2023 Trucks 89,946 89,556 0 1 373,438 373,048 Construction Equipment 22,877 25,109 -9 -8 102,749 104,981 Buses 5,173 4,267 21 19 23,329 22,423 Volvo Penta 5,168 5,603 -8 -7 20,571 21,006 Group Functions & Other 4,281 3,779 13 13 17,311 16,809 Eliminations -1,280 -1,195 – – -5,083 -4,998 Industrial Operations 126,163 127,117 -1 0 532,315 533,269 Financial Services 6,532 5,370 22 21 25,175 24,012 Reclassifications and eliminations -1,519 -1,184 – – -5,365 -5,030 Volvo Group 131,177 131,303 0 0 552,125 552,252 1 Adjusted for exchange rate fluctuations. Adjusted operating income ¹ First quarter Change % 12 months rolling Jan-Dec SEK M 2024 2023 2023 Trucks 13,073 12,715 3 55,753 55,394 Construction Equipment 3,683 4,587 -20 16,088 16,993 Buses 259 178 46 1,141 1,059 Volvo Penta 988 1,271 -22 2,947 3,230 Group Functions & Other -947 -1,225 -23 -2,672 -2,950 Eliminations -13 12 – 31 55 Industrial Operations 17,044 17,538 -3 73,288 73,782 Financial Services 1,009 871 16 3,993 3,855 Reclassifications and eliminations 106 158 -33 466 519 Volvo Group adjusted operating income 18,159 18,566 -2 77,746 78,155 Adjustments ¹ – -1,300 – -9,554 -10,854 Volvo Group operating income 18,159 17,266 5 68,193 67,301 1 For more information on adjusted operating income, please see note 6. Adjusted operating margin First quarter 12 months rolling Jan-Dec % 2024 2023 2023 Trucks 14.5 14.2 14.9 14.8 Construction Equipment 16.1 18.3 15.7 16.2 Buses 5.0 4.2 4.9 4.7 Volvo Penta 19.1 22.7 14.3 15.4 Industrial Operations 13.5 13.8 13.8 13.8 Volvo Group adjusted operating margin 13.8 14.0 14.1 14.0 Volvo Group operating margin 13.8 13.0 12.4 12.1 Q1 VOLVO GROUP THE FIRST QUARTER 2024 8 BUSINESS SEGMENT OVERVIEW ===== SIDA 9 ===== Market development During Q1, market conditions continued to normalize both in Europe and North America on the back of transport volumes and freight rates coming down from the previously very high levels. Many fleets continue their replacements, while retail customers are more in a wait-and-see mode. Utilization of the installed truck fleet remains on good levels. The Brazilian truck market was on par with Q1 2023. The mining sector and good domestic spending provided resilience to the market. In India, the truck market declined somewhat but remained on a good level mirroring positive economic sentiment with good investment levels and consumer spending. The overall Chinese market continued to improve from a low level. Demand in the construction and general cargo segments continued to be weak while demand for tractors was stronger, especially for LNG trucks. Orders and deliveries In Q1, net order intake declined by 19% to 48,701 units and deliveries decreased by 10% to 55,470 units. In Europe, order intake decreased by 20% to 25,077 trucks while deliveries decreased by 11% to 29,289 trucks. Through March, Volvo Trucksʼ total heavy-duty truck market share decreased to 17.2% (17.7) while the electric heavy-duty market share increased to 54.1% (50.2). Renault Trucksʼ total heavy-duty truck market share decreased to 8.0% (9.0) while the electric heavy-duty market share increased to 19.8% (15.5). Order intake in North America decreased by 37% to 9,620 trucks while deliveries decreased by 6% to 15,056 vehicles. Mack Trucksʼ order intake was impacted by the strike in Q4 2023 as already sold production slots were moved from 2023 into 2024 and by Mack Trucks having been restrictive in order slotting because of long lead times. Volvo Trucksʼ heavy-duty truck market share increased to 9.1% (8.7) while Mack Trucksʼ market share declined somewhat to 5.3% (5.7). In South America, order intake increased by 52% to 7,898 trucks while deliveries increased by 15% to 5,154 vehicles compared with the weak development in Q1 2023. In Brazil, Volvo Trucksʼ heavy-duty truck market share remained strong and came in on 22.3% (21.8). Order intake in Asia decreased by 23% to 4,115 vehicles while deliveries decreased by 35% to 3,717 vehicles. Order intake for fully electric trucks declined by 23% to 638 vehicles while deliveries increased by 32% to 907 vehicles. The market for electric trucks is still driven by early adopters. A broader adoption is dependent on several factors, including the expansion of necessary infrastructure such as charging. Order intake in the Indian joint venture, VE Commercial Vehicles, decreased by 10% to 18,611 vehicles and deliveries decreased by 3% to 19,328 vehicles. Deliveries from the Chinese joint venture, Dongfeng Commercial Vehicles, increased by 61% to 22,850 trucks. Total market development First quarter Change % Full year 2023 Forecast 2024 Change vs. previous forecastRegistrations, number of trucks 2024 2023 Europe 29 ¹ heavy-duty 73,702 80,186 -8 304,360 – – Europe 30 ¹ heavy-duty 82,530 89,770 -8 341,892 280,000 unchanged North America heavy-duty (retail) 71,329 79,433 -10 330,792 290,000 unchanged Brazil heavy-duty 20,951 21,454 -2 82,070 95,000 +5,000 China ² medium- and heavy-duty 222,454 197,265 13 717,272 800,000 unchanged India medium- and heavy-duty 103,695 117,318 -12 383,654 390,000 -35,000 1 EU29 includes Norway and Switzerland but excludes UK. EU30 includes UK. 2 Previous year has been adjusted to exclude exports. Q1 VOLVO GROUP THE FIRST QUARTER 2024 9 TRUCKS Stable sales and higher margin on lower volumes • In Q1, net sales amounted to SEK 89,946 M, on par with the prior year • Adjusted operating income rose to SEK 13,073 M (12,715) with a margin of 14.5% (14.2) • Deliveries decreased by 10% and net order intake decreased by 19% ===== SIDA 10 ===== Net order intake First quarter Change %Number of trucks 2024 2023 Europe 25,077 31,290 -20 Heavy- and medium-duty 19,976 26,055 -23 Light-duty 5,101 5,235 -3 North America 9,620 15,159 -37 South America 7,898 5,212 52 Asia 4,115 5,336 -23 Africa and Oceania 1,991 3,043 -35 Total order intake 48,701 60,040 -19 Heavy-duty (>16 tons) 40,211 49,901 -19 Medium-duty (7-16 tons) 3,269 4,831 -32 Light-duty (<7 tons) 5,221 5,308 -2 Total order intake 48,701 60,040 -19 Volvo 31,067 35,956 -14 Renault Trucks 14,823 15,741 -6 Heavy- and medium-duty 9,602 10,433 -8 Light-duty 5,221 5,308 -2 Mack 2,765 7,933 -65 Other brands 46 410 -89 Total order intake 48,701 60,040 -19 Non-consolidated operations VE Commercial Vehicles (Eicher) 18,611 20,590 -10 Deliveries First quarter Change %Number of trucks 2024 2023 Europe 29,289 32,850 -11 Heavy- and medium-duty 22,559 26,702 -16 Light-duty 6,730 6,148 9 North America 15,056 16,011 -6 South America 5,154 4,475 15 Asia 3,717 5,742 -35 Africa and Oceania 2,254 2,453 -8 Total deliveries 55,470 61,531 -10 Heavy-duty (>16 tons) 44,431 50,684 -12 Medium-duty (7-16 tons) 4,270 4,604 -7 Light-duty (<7 tons) 6,769 6,243 8 Total deliveries 55,470 61,531 -10 Volvo 31,954 35,789 -11 Renault Trucks 15,836 17,496 -9 Heavy- and medium-duty 9,067 11,253 -19 Light-duty 6,769 6,243 8 Mack 7,467 7,958 -6 Other brands 213 288 -26 Total deliveries 55,470 61,531 -10 Non-consolidated operations VE Commercial Vehicles (Eicher) 19,328 20,017 -3 Dongfeng Commercial Vehicle Company (Dongfeng Trucks) 22,850 14,184 61 Q1 VOLVO GROUP THE FIRST QUARTER 2024 10 TRUCKS ===== SIDA 11 ===== Net order intake and deliveries of fully electric trucks First quarter Change %Number of trucks 2024 2023 Volvo 306 486 -37 Renault Trucks 319 324 -2 Heavy- and medium-duty 172 174 -1 Light-duty 147 150 -2 Mack 13 15 -13 Total order intake of fully electric trucks 638 825 -23 Volvo 520 350 49 Renault Trucks 358 331 8 Heavy- and medium-duty 202 128 58 Light-duty 156 203 -23 Mack 29 2 1,350 Total deliveries of fully electric trucks 907 683 33 Net sales and operating income First quarter Change %SEK M 2024 2023 Net sales per geographical region Europe 43,425 42,676 2 North America 27,237 27,607 -1 South America 8,712 7,224 21 Asia 5,976 7,533 -21 Africa and Oceania 4,594 4,516 2 Total net sales 89,946 89,556 – Net sales per product group Vehicles 71,584 71,754 – Services 18,361 17,802 3 Total net sales 89,946 89,556 – Timing of revenue recognition Revenue of vehicles and services recognized at the point of delivery 84,078 84,395 – Revenue of vehicles and services recognized over contract period 5,868 5,161 14 Total net sales 89,946 89,556 – Adjusted operating income ¹ 13,073 12,715 3 Adjustments – 139 – Operating income 13,073 12,854 2 Adjusted operating margin, % 14.5 14.2 Operating margin, % 14.5 14.4 1 For more information on adjusted operating income, please see note 6. Net sales and operating income In Q1 2024, the truck operationʼs net sales amounted to SEK 89,946 M, which was on the same level as in Q1 2023. Excluding currency effects, net sales increased by 1% with sales of vehicles being flat and sales of services increasing by 3%. In Q1 2024, adjusted operating income increased to SEK 13,073 M (12,715), corresponding to an adjusted operating margin of 14.5% (14.2). There were no adjustments in Q1 2024. Adjusted operating income in Q1 2023 excluded a positive effect of SEK 139 M. For more information on adjusted operating income, see note 6. Compared with Q1 2023 the higher adjusted operating income is an effect of price realization and lower material costs, which were partly offset by lower volumes and industrial utilization as well as higher R&D and selling expenses. Compared with Q1 2023, currency movements had a negative impact of SEK 364 M. Reported operating income amounted to SEK 13,073 M (12,854). Important events In January, Volvo Trucks unveiled an all-new heavy-duty product platform for the North American market in parallel to the new Volvo Aero heavy-duty truck range for Europe, Australia and markets in Asia and Africa. These new energy-efficient models drive productivity and profitability for customers. In March, Volvo Group, Renault Group and CMA CGM Group completed the creation of a joint venture, Flexis SAS, for an all- new generation of electric vans for urban logistics. On April 11, 2024, Volvo Group announced that it will build a new heavy-duty truck manufacturing plant in Mexico to supplement the Groupʼs U.S. production. For more information on the latter two events, please see Important events on page 4. Q1 VOLVO GROUP THE FIRST QUARTER 2024 11 TRUCKS ===== SIDA 12 ===== Market development In Q1, the total machine market was flat or negative in most regions. In Asia outside of China it was on par with the prior year, while it declined in Europe, North America and China. In South America the market increased somewhat. The North American market softened in Q1, due to a continued deferral of rental fleet replacement, as interest rates and inflation remain high. In Europe, the market decline accelerated driven by weakening business confidence and cautiousness among end customers. The South American market grew driven by increased demand in Brazil, Chile and Colombia as there were signs of recovery in various industry segments. In China, market demand continued to decline due to low investment levels and an overall slow economic activity. Other Asian markets were flat overall, with increased demand in India and a slowdown in Indonesia and Japan. Demand in the Middle East and Africa grew. Orders and deliveries In Q1, net order intake increased by 4%. The increase was driven by SDLG and China due to low order intake in Q1 2023 following a prebuy in Q4 2022 in connection with changes to the Chinese emissions regulations. Order intake for the Volvo brand decreased in line with the overall market development in Europe and North America. Orders in South America increased from a low level driven by signs of a recovery in Brazil. Deliveries in Q1 were on par with last year as the lower market demand in Europe and North America was offset by China that increased from very low levels. Total market development Year-to-date February Forecast Previous forecast Change in % measured in units 2024 2024 2024 Europe -22 -20% to -10% -20% to -10% North America -6 -10% to 0% -10% to 0% South America 4 0% to +10% 0% to +10% Asia excl. China -1 -15% to -5% -15% to -5% China -22 -10% to 0% -10% to 0% Net order intake First quarter Change %Number of construction equipment 2024 2023 Europe 2,677 3,226 -17 North America 1,446 2,596 -44 South America 662 478 38 Asia 8,415 6,404 31 Africa and Oceania 651 638 2 Total orders 13,851 13,342 4 Large and medium construction equipment 9,901 10,049 -1 Compact construction equipment 3,950 3,293 20 Of which fully electric 199 259 -23 Total orders 13,851 13,342 4 Of which: Volvo 7,083 9,161 -23 SDLG 6,712 4,114 63 Of which in China 5,534 2,846 94 Q1 VOLVO GROUP THE FIRST QUARTER 2024 12 CONSTRUCTION EQUIPMENT Earnings impacted by lower volumes in Europe and North America • In Q1, deliveries were on the same level as the prior year, whereas order intake increased by 4%, driven by China from low levels • Adjusted and reported operating income of SEK 3,683 M (4,587), with a margin of 16.1% (18.3) • Service sales decreased by 3%, adjusted for currency ===== SIDA 13 ===== Deliveries First quarter Change %Number of construction equipment 2024 2023 Europe 3,050 4,384 -30 North America 1,746 2,334 -25 South America 370 398 -7 Asia 8,650 6,370 36 Africa and Oceania 640 982 -35 Total deliveries 14,456 14,468 – Large and medium construction equipment 10,593 10,665 -1 Compact construction equipment 3,863 3,803 2 Of which fully electric 232 202 15 Total deliveries 14,456 14,468 – Of which: Volvo 7,688 10,287 -25 SDLG 6,712 4,114 63 Of which in China 5,534 2,846 94 Net sales and operating income First quarter Change %SEK M 2024 2023 Net sales per geographical region Europe 7,177 8,610 -17 North America 6,425 6,537 -2 South America 759 758 – Asia 6,925 7,098 -2 Africa and Oceania 1,589 2,106 -25 Total net sales 22,877 25,109 -9 Net sales per product group Construction equipment 19,092 21,188 -10 Services 3,784 3,921 -3 Total net sales 22,877 25,109 -9 Timing of revenue recognition Revenue of vehicles and services recognized at the point of delivery 22,065 24,469 -10 Revenue of vehicles and services recognized over contract period 811 640 27 Total net sales 22,877 25,109 -9 Adjusted operating income ¹ 3,683 4,587 -20 Adjustments – – – Operating income 3,683 4,587 -20 Adjusted operating margin, % 16.1 18.3 Operating margin, % 16.1 18.3 1 For more information on adjusted operating income, please see note 6. Net sales and operating income In Q1 2024, net sales amounted to SEK 22,877 M (25,109). Adjusted for currency movements net sales decreased by 8%, of which net sales of machines decreased by 9% and service sales decreased by 3%. Both adjusted and reported operating income amounted to SEK 3,683 M (4,587), corresponding to an operating margin of 16.1% (18.3). For more information on adjusted operating income, please see note 6. Compared with Q1 2023, a negative brand and market mix was partly offset by price realization and lower material costs. Currency movements had a negative impact of SEK 24 M. Important events In Q1, Volvo Construction Equipment (Volvo CE) introduced the grid-connected EW240 Electric Material Handler, the latest addition to its range of zero exhaust emission machines. The wheeled excavator is available to select customers, initially in Europe. Q1 VOLVO GROUP THE FIRST QUARTER 2024 13 CONSTRUCTION EQUIPMENT ===== SIDA 14 ===== In Q1, demand for buses continued to improve in many markets, with a particularly strong development for coaches. Following a high order book at the start of Q1 as well as a consequence of the ongoing transformation in Europe, net order intake decreased by 52% compared with Q1 2023. At the end of Q1, the order book was nonetheless higher compared with the prior year. The transition towards electric vehicles in city traffic continues and orders for 45 electric buses were confirmed in Q1. Deliveries increased by 10% to 1,301 units, from a good development in a majority of the bus markets, particularly in Mexico. In Q1, net sales increased by 21% to SEK 5,173 M (4,267). Adjusted for currency, net sales increased by 19%, whereof vehicle sales increased by 24% and service sales by 7%. Adjusted operating income amounted to SEK 259 M (178), corresponding to an adjusted operating margin of 5.0% (4.2). There were no adjustments in Q1 2024. Adjusted operating income in Q1 2023 excluded negative effects in a total of SEK 1,439 M. For more information on adjusted operating income, please see note 6. Price realization and lower material costs had a positive impact, whereas lower industrial utilization due to the wind-down of the complete bus factory in Poland had a negative impact. Compared with Q1 2023, currency movements had a positive impact of SEK 48 M. Reported operating income amounted to SEK 259 M (-1,261). In Q1, the wind-down of the complete bus production in Poland was finalized. This has been a critical step in the transformation to offer customers in Europe a complete range of products together with external bodybuilders. In March, Volvo Buses launched the Volvo BZR Electric, which is a new global electromobility platform for city, intercity and commuter operations. Net order intake and deliveries ¹ First quarter Change %Number of buses 2024 2023 Total orders 874 1,839 -52 Of which fully electric 45 48 -6 Of which hybrids – 3 – Total deliveries 1,301 1,184 10 Of which fully electric 74 34 118 Of which hybrids 26 44 -41 Net sales and operating income First quarter Change %SEK M 2024 2023 Net sales per geographical region Europe 1,564 1,340 17 North America 2,396 1,745 37 South America 403 300 34 Asia 296 365 -19 Africa and Oceania 514 516 – Total net sales 5,173 4,267 21 Net sales per product group Vehicles 3,794 2,986 27 Services 1,378 1,280 8 Total net sales 5,173 4,267 21 Timing of revenue recognition Revenue of vehicles and services recognized at the point of delivery 4,929 4,064 21 Revenue of vehicles and services recognized over contract period 244 203 20 Total net sales 5,173 4,267 21 Adjusted operating income ¹ 259 178 46 Adjustments – -1,439 – Operating income 259 -1,261 – Adjusted operating margin, % 5.0 4.2 Operating margin, % 5.0 -29.6 1 For more information on adjusted operating income, please see note 6. Q1 VOLVO GROUP THE FIRST QUARTER 2024 14 BUSES • In Q1, deliveries increased by 10% while net order intake decreased by 52% • Adjusted operating income improved to SEK 259 M (178) with a margin of 5.0% (4.2) • Service sales increased by 7% adjusted for currency Improved profitability ===== SIDA 15 ===== In Q1, demand in most of Volvo Pentaʼs markets declined, especially the market for smaller power boats. However, the marine commercial market showed resilience and the market for crew transfer vessels continued to grow. On the industrial market, demand for engines for power generation applications declined, especially in Europe. Demand was also affected by a prebuy in 2023 for a previous engine range that is being phased out. The off-highway markets in construction, mining, and material handling faced lower demand while agriculture held up better. In Q1, net order intake was affected by the weakening demand and decreased by 33% to 9,050 units compared with Q1 2023. Deliveries decreased by 18% to 10,435 units. Net sales decreased by 8% to SEK 5,168 M (5,603). Adjusted for currency movements, net sales decreased by 7%, of which sales of engines decreased by 9% and sales of services by 1%. Both adjusted and reported operating income amounted to SEK 988 M (1,271), corresponding to an operating margin of 19.1% (22.7). For more information on adjusted operating income, please see note 6. Price realization contributed positively to the result, but this was offset by lower volumes, increased selling and administrative expenses as well as lower industrial utilization. Compared with Q1 2023, the currency impact on operating income was positive in an amount of SEK 11 M. In Q1, Volvo Penta unveiled its intelligent technology and propulsion solution for superyachts and commercial vessels – the IPS Professional Platform. The technology builds on Volvo Pentaʼs Inboard Performance System and Electronic Vessel Control, with enhancements to accommodate larger vessels. Net order intake and deliveries First quarter Change %Number of Engines 2024 2023 Total orders 9,050 13,489 -33 Of which fully electric 43 21 105 Total deliveries 10,435 12,727 -18 Of which fully electric 44 20 120 Net sales and operating income First quarter Change %SEK M 2024 2023 Net sales per geographical region Europe 2,624 2,973 -12 North America 874 1,043 -16 South America 226 164 38 Asia 1,125 1,067 5 Africa and Oceania 319 356 -10 Total net sales 5,168 5,603 -8 Net sales per product group Engines 3,861 4,256 -9 Services 1,306 1,347 -3 Total net sales 5,168 5,603 -8 Timing of revenue recognition Revenue of vehicles and services recognized at the point of delivery 5,156 5,603 -8 Revenue of vehicles and services recognized over contract period 11 – – Total net sales 5,168 5,603 -8 Adjusted operating income ¹ 988 1,271 -22 Adjustments – – – Operating income 988 1,271 -22 Adjusted operating margin, % 19.1 22.7 Operating margin, % 19.1 22.7 1 For more information on adjusted operating income, please see note 6. Q1 VOLVO GROUP THE FIRST QUARTER 2024 15 VOLVO PENTA Declining sales in a softening market • In Q1, deliveries decreased by 18% and order intake decreased by 33% • Adjusted and reported operating income of SEK 988 M (1,271) with a margin of 19.1% (22.7) • Continued focus on large yachts and commercial vessels ===== SIDA 16 ===== In Q1 2024, the credit portfolio increased by 16% compared with Q1 2023, adjusted for currency. Overall portfolio performance continues to be good, with customer overdues and defaults at relatively low levels historically, although a return to average business cycle conditions in some markets is visible. Penetration levels in the quarter improved compared to Q1, 2023, however the financing of new products slowed down reflecting the normalization of demand for Group products. In Q1 2024, new business volume decreased by 5%, when adjusted for currency. In Q1, both adjusted and reported operating income increased to SEK 1,009 M (871). For more information on adjusted operating income, please see note 6. The increase in operating income was primarily a result of continued profitable portfolio growth, which was partly offset by higher selling expenses and increased credit provisions. Currency movements had a positive impact of SEK 50 M compared with Q1 2023. Return on equity increased to 13.0% (11.0). Financial Services First quarter SEK M unless otherwise stated 2024 2023 Number of financed units, 12 months rolling 66,258 67,727 Total penetration rate, 12 months rolling, % ¹ 27 27 New retail financing volume, SEK billion 24.0 25.1 Credit portfolio net, SEK billion 270 227 Credit provision expenses ² 248 160 Adjusted operating income ³ 1,009 871 Adjustments ³ – – Operating income 1,009 871 Credit reserves ², % of credit portfolio 1.35 2.88 Return on equity ², 12 months rolling, % 13.0 11.0 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 2023 included Russian and Belarus operations, which were divested in Q3 2023. 3 For more information on adjustments, please see note 6. Q1 VOLVO GROUP THE FIRST QUARTER 2024 16 FINANCIAL SERVICES Solid earnings and stable portfolio performance • In Q1, new business volume decreased by 5%, adjusted for currency • Stable portfolio performance • Both adjusted and reported operating income amounted to SEK 1,009 M (871) ===== SIDA 17 ===== CONSOLIDATED INCOME STATEMENT - FIRST QUARTER Industrial Operations Financial Services Eliminations Volvo Group SEK M 2024 2023 2024 2023 2024 2023 2024 2023 Net sales¹ 126,163 127,117 6,532 5,370 -1,519 -1,184 131,177 131,303 Cost of sales¹ -91,567 -93,602 -4,453 -3,577 1,625 1,342 -94,395 -95,837 Gross income 34,596 33,516 2,079 1,793 106 158 36,781 35,466 Research and development expenses -7,332 -6,492 – – – – -7,332 -6,492 Selling expenses -7,778 -7,114 -839 -780 – – -8,617 -7,894 Administrative expenses -1,960 -1,659 -4 -3 – – -1,964 -1,663 Other operating income and expenses -340 -1,841 -227 -139 – – -567 -1,980 Income/loss from investments in joint ventures and associated companies -142 -171 – – – – -142 -171 Income/loss from other investments – – – – – – – – Operating income 17,044 16,238 1,009 871 106 158 18,159 17,266 Interest income and similar credits 991 729 – – -106 -158 885 572 Interest expenses and similar charges¹ -364 -472 – – – – -364 -472 Other financial income and expenses -238 -570 – – – – -238 -570 Income after financial items 17,433 15,926 1,009 871 – – 18,442 16,797 Income taxes -4,047 -3,614 -293 -249 – – -4,339 -3,863 Income for the period * 13,387 12,312 716 622 – – 14,103 12,934 * Attributable to: Owners of AB Volvo 14,080 12,910 Non-controlling interest 23 24 14,103 12,934 Basic earnings per share, SEK 6.92 6.35 Diluted earnings per share, SEK 6.92 6.35 Key ratios, % Gross margin 27.4 26.4 28.0 26.9 Research and development expenses as % of net sales 5.8 5.1 5.6 4.9 Selling expenses as % of net sales 6.2 5.6 6.6 6.0 Administrative expenses as % of net sales 1.6 1.3 1.5 1.3 Operating margin 13.5 12.8 13.8 13.0 1 As from 2024, elimination of internal interest income related to internal funding from Volvo Treasury AB to Financial Services is reclassified from finance net to gross income. The comparative figures in the financial statements for 2023 have been restated accordingly, impacting operating income positively with SEK 158 M in Q1, 2023. The effect on key ratios is insignificant. CONSOLIDATED OTHER COMPREHENSIVE INCOME - FIRST QUARTER SEK M 2024 2023 Income for the period 14,103 12,934 Items that will not be reclassified to income statement: Remeasurements of defined benefit pension plans 453 -744 Remeasurements of holding of shares at fair value -7 1 Items that may be reclassified subsequently to income statement: Exchange differences on translation of foreign operations 4,282 69 Share of OCI related to joint ventures and associated companies 756 116 Accumulated exchange differences reversed to income – – Other comprehensive income, net of income taxes 5,485 -558 Total comprehensive income for the period * 19,588 12,376 * Attributable to: Owners of AB Volvo 19,437 12,341 Non-controlling interest 151 36 19,588 12,376 Q1 VOLVO GROUP THE FIRST QUARTER 2024 17 FINANCIAL STATEMENTS ===== SIDA 18 ===== CONSOLIDATED BALANCE SHEET Industrial Operations Financial Services Eliminations Volvo Group SEK M Mar 31 2024 Dec 31 2023 Mar 31 2024 Dec 31 2023 Mar 31 2024 Dec 31 2023 Mar 31 2024 Dec 31 2023 Assets Non-current assets Intangible assets 43,554 42,378 144 135 – – 43,697 42,512 Tangible assets Property, plant and equipment 72,665 68,393 58 56 – – 72,723 68,449 Assets under operating leases 35,451 35,154 22,028 21,318 -15,780 -14,562 41,699 41,910 Financial assets Investments in joint ventures and associated companies 22,714 19,158 – – – – 22,714 19,158 Other shares and participations 1,125 862 19 18 – – 1,144 881 Non-current customer-financing receivables 1,655 1,605 127,373 121,987 -1,968 -1,954 127,061 121,638 Net pension assets 2,092 2,039 – – – – 2,092 2,039 Non-current interest-bearing receivables 2,860 3,405 – 950 -210 -950 2,650 3,405 Other non-current receivables 6,603 6,431 307 283 -210 -197 6,699 6,518 Deferred tax assets 15,516 14,142 2,143 2,044 – – 17,659 16,186 Total non-current assets 204,234 193,566 152,071 146,791 -18,168 -17,662 338,137 322,695 Current assets Inventories 86,188 75,958 1,066 904 – – 87,254 76,863 Current receivables Customer-financing receivables 1,046 1,027 120,722 110,822 -1,406 -1,284 120,362 110,565 Tax assets 2,608 1,329 492 895 – – 3,100 2,223 Interest-bearing receivables 2,498 2,784 – – -19 -19 2,479 2,765 Internal funding 6,435 10,680 – – -6,435 -10,680 – – Accounts receivable 43,453 41,383 1,787 1,827 – – 45,240 43,210 Other receivables 22,352 22,173 2,948 3,283 -4,988 -5,084 20,311 20,372 Marketable securities 179 89 – – – – 179 89 Cash and cash equivalents 87,555 78,858 4,592 5,785 -884 -1,318 91,263 83,326 Assets held for sale 11,540 11,960 – – – – 11,540 11,960 Total current assets 263,855 246,241 131,607 123,516 -13,732 -18,384 381,729 351,373 Total assets 468,089 439,807 283,678 270,307 -31,900 -36,046 719,866 674,068 Equity and liabilities Equity attributable to owners of AB Volvo 138,054 156,171 22,698 21,620 – – 160,753 177,791 Non-controlling interest 3,100 2,948 – – – – 3,100 2,948 Total equity 141,154 159,119 22,698 21,620 – – 163,852 180,739 Non-current provisions Provisions for post-employment benefits 10,742 11,138 81 81 – – 10,823 11,219 Other provisions 14,106 12,902 76 76 – – 14,182 12,979 Non-current liabilities Bond loans 107,765 96,970 – – – – 107,765 96,970 Other loans 24,065 23,779 19,085 19,352 -1,632 -1,599 41,518 41,532 Internal funding -120,225 -109,059 115,868 112,231 4,357 -3,173 – – Deferred tax liabilities 2,717 2,486 2,219 2,238 – – 4,936 4,725 Other liabilities 51,453 49,600 1,766 1,701 -10,746 -9,759 42,473 41,542 Current provisions 19,537 19,609 37 14 – – 19,574 19,623 Current liabilities Bond loans 52,676 46,641 – – – – 52,676 46,641 Other loans 40,984 40,804 11,546 11,861 -1,023 -1,017 51,507 51,648 Internal funding -86,624 -79,494 99,376 89,985 -12,752 -10,491 – – Trade payables 85,322 81,883 1,173 1,103 – – 86,495 82,987 Tax liabilities 4,428 4,140 670 947 – – 5,098 5,087 Other liabilities 111,202 71,130 9,082 9,095 -10,104 -10,007 110,180 70,218 Liabilities held for sale 8,787 8,157 – – – – 8,787 8,157 Total equity and liabilities 468,089 439,807 283,678 270,307 -31,900 -36,046 719,866 674,068 Key ratios, % Equity ratio 30.2 36.2 8.0 8.0 22.8 26.8 Equity attributable to owners of AB Volvo, per share in SEK 79.1 87.4 Return on operating capital ¹ 75.2 71.3 Return on capital employed ¹ 37.7 36.7 Return on equity ¹ 13.0 13.0 29.4 28.7 1 12 months rolling. Q1 VOLVO GROUP THE FIRST QUARTER 2024 18 FINANCIAL STATEMENTS ===== SIDA 19 ===== Net financial position excl. post-employment benefits and lease liabilities Industrial Operations Volvo Group SEK bn Mar 31 2024 Dec 31 2023 Mar 31 2024 Dec 31 2023 Non-current interest-bearing assets Non-current customer-financing receivables – – 127.1 121.6 Non-current interest-bearing receivables 2.9 3.4 2.6 3.4 Current interest-bearing assets Customer-financing receivables – – 120.4 110.6 Interest-bearing receivables 2.5 2.8 2.5 2.8 Internal funding 6.4 10.7 – – Marketable securities 0.2 0.1 0.2 0.1 Cash and cash equivalents 87.6 78.9 91.3 83.3 Assets held for sale – – – – Total interest-bearing financial assets 99.5 95.8 344.0 321.8 Non-current interest-bearing liabilities Bond loans -107.8 -97.0 -107.8 -97.0 Other loans -18.4 -18.4 -35.9 -36.2 Internal funding 120.2 109.1 – – Current interest-bearing liabilities Bond loans -52.7 -46.6 -52.7 -46.6 Other loans -38.9 -38.9 -49.4 -49.8 Internal funding 86.6 79.5 – – Liabilities held for sale – – – – Total interest-bearing financial liabilities excl. lease liabilities -10.8 -12.4 -245.7 -229.6 Net financial position excl. post-employment benefits and lease liabilities 88.7 83.4 98.3 92.2 Provisions for post-employment benefits and lease liabilities, net Industrial Operations Volvo Group SEK bn Mar 31 2024 Dec 31 2023 Mar 31 2024 Dec 31 2023 Non-current lease liabilities -5.7 -5.3 -5.7 -5.3 Current lease liabilities -2.1 -1.9 -2.1 -1.9 Provisions for post-employment benefits, net -8.7 -9.1 -8.7 -9.2 Liabilities held for sale -0.4 -0.4 -0.4 -0.4 Provisions for post-employment benefits and lease liabilities, net -16.9 -16.7 -16.9 -16.8 Net financial position incl. post-employment benefits and lease liabilities Industrial Operations Volvo Group SEK bn Mar 31 2024 Dec 31 2023 Mar 31 2024 Dec 31 2023 Net financial position excl. post-employment benefits and lease liabilities 88.7 83.4 98.3 92.2 Provisions for post-employment benefits and lease liabilities, net -16.9 -16.7 -16.9 -16.8 Net financial position incl. post-employment benefits and lease liabilities 71.8 66.7 81.4 75.4 Q1 VOLVO GROUP THE FIRST QUARTER 2024 19 FINANCIAL STATEMENTS ===== SIDA 20 ===== Changes in net financial position, industrial operations First quarter SEK bn 2024 Net financial position excl. post-employment benefits and lease liabilities at the end of previous period 83.4 Operating cash flow 8.9 Investments and divestments of shares, net -2.9 Acquired and divested operations, net -2.3 Capital injections to/from Financial Services 0.4 Currency effect 1.6 Dividend to owners of AB Volvo – Dividend to non-controlling interest – Other changes -0.4 Net financial position excl. post-employment benefits and lease liabilities at the end of period 88.7 Provisions for post-employment benefits and lease liabilities at the end of previous period -16.7 Pension payments, included in operating cash flow 0.6 Remeasurements of defined post-employment benefits 0.6 Service costs and other pension costs -0.3 Investments, remeasurements and amortizations of lease contracts -0.1 Currency effect -0.5 Other changes -0.3 Provisions for post-employment benefits and lease liabilities at the end of period -16.9 Net financial position incl. post-employment benefits and lease liabilities at the end of period 71.8 CHANGES IN CONSOLIDATED EQUITY SEK M Equity attributable to owners of AB Volvo Non-controlling interest Total equity Balance as of December 31, 2022 162,717 3,519 166,236 Income for the period 49,825 107 49,932 Other comprehensive income for the period -6,094 -191 -6,285 Total comprehensive income for the period 43,731 -84 43,647 Dividend -28,468 -457 -28,926 Changes in non-controlling interests – -29 -29 Other changes -189 – -189 Transactions with shareholders -28,658 -486 -29,143 Balance as of December 31, 2023 177,791 2,948 180,739 Income for the period 14,080 23 14,103 Other comprehensive income for the period 5,357 128 5,485 Total comprehensive income for the period 19,437 151 19,588 Dividend -36,602 – -36,602 Changes in non-controlling interests – – – Other changes 127 – 127 Transactions with shareholders -36,475 – -36,475 Balance as of March 31, 2024 160,753 3,100 163,852 Q1 VOLVO GROUP THE FIRST QUARTER 2024 20 FINANCIAL STATEMENTS ===== SIDA 21 ===== CONSOLIDATED CASH FLOW STATEMENT - FIRST QUARTER Industrial Operations Financial Services Eliminations Volvo Group SEK M 2024 2023 2024 2023 2024 2023 2024 2023 Operating activities Operating income 17,044 16,238 1,009 871 106 158 18,159 17,266 Amortization intangible assets 770 740 6 8 – – 776 748 Depreciation tangible assets 2,132 2,068 7 5 – – 2,138 2,073 Depreciation leasing vehicles 972 1,075 1,280 1,212 – – 2,252 2,287 Other non-cash items 365 1,859 213 229 – -1 578 2,087 Total change in working capital whereof -3,818 -7,738 -6,034 -11,355 -104 -263 -9,956 -19,356 Change in accounts receivables 953 13 52 -125 – – 1,005 -112 Change in customer-financing receivables 31 59 -5,099 -11,102 -61 -198 -5,128 -11,241 Change in inventories -6,117 -9,206 -138 54 – – -6,255 -9,152 Change in trade payables 1,150 1,899 31 7 – – 1,181 1,907 Change in vehicles on operating lease and assets for service solutions¹ -63 -180 -1,108 -689 48 12 -1,123 -858 Other changes in working capital 227 -324 229 500 -91 -77 364 99 Dividends received from joint ventures and associated companies – – – – – – – – Interest and similar items received 994 724 – – -106 -158 888 567 Interest and similar items paid -267 -620 – – -27 21 -294 -599 Other financial items -138 -27 – – – – -138 -27 Income taxes paid -5,588 -5,602 -300 -285 – – -5,888 -5,888 Cash flow from operating activities 12,465 8,717 -3,818 -9,315 -131 -243 8,516 -841 Investing activities Investments in intangible assets -1,135 -1,315 -11 -8 – – -1,146 -1,324 Investments in tangible assets -2,511 -2,463 -1 -3 – – -2,512 -2,466 Disposals of in-/tangible assets 77 65 2 1 – – 79 66 Operating cash flow 8,896 5,004 -3,828 -9,326 -131 -243 4,937 -4,565 Investments of shares -2,940 -673 Divestment of shares 2 – Acquired operations -2,448 -9 Divested operations 170 196 Interest-bearing receivables incl. marketable securities -292 -76 Cash flow after net investments -570 -5,127 Financing activities New borrowings 62,761 44,727 Repayments of borrowings -56,332 -39,524 Dividend to owners of AB Volvo – – Dividend to non-controlling interest – – Other 41 3 Change in cash and cash equivalents excl. exchange rate changes 5,901 80 Effect of exchange rate changes on cash and cash equivalents 2,036 212 Change in cash and cash equivalents 7,936 292 Cash and cash equivalents, beginning of quarter 83,326 83,886 Cash and cash equivalents, end of quarter 91,263 84,178 1 As from 2024, change in vehicles on operating lease and assets for service solutions is presented separately in the cash flow statement. The comparative figures for 2023 have been restated. Q1 VOLVO GROUP THE FIRST QUARTER 2024 21 FINANCIAL STATEMENTS ===== SIDA 22 ===== Income Statements, Volvo Group SEK M unless otherwise stated 1/2024 4/2023 3/2023 2/2023 1/2023 Net sales 131,177 147,988 132,275 140,685 131,303 Cost of sales -94,395 -109,188 -95,751 -101,637 -95,837 Gross income 36,781 38,800 36,524 39,048 35,466 Research and development expenses -7,332 -7,029 -6,305 -6,819 -6,492 Selling expenses -8,617 -9,249 -8,202 -8,329 -7,894 Administrative expenses -1,964 -2,149 -1,686 -1,858 -1,663 Other operating income and expenses -567 -2,247 -1,180 -6,873 -1,980 Income/loss from investments in Joint Ventures and associated companies -142 -1,154 -665 -578 -171 Income/loss from other investments – 10 -22 -2 – Operating income 18,159 16,982 18,464 14,589 17,266 Interest income and similar credits 885 890 656 572 572 Interest expenses and similar charges -364 -406 -417 -390 -472 Other financial income and expenses -238 -582 -67 -362 -570 Income after financial items 18,442 16,884 18,636 14,409 16,797 Income taxes -4,339 -4,798 -4,543 -3,591 -3,863 Income for the period * 14,103 12,086 14,093 10,819 12,934 * Attributable to: Owners of AB Volvo 14,080 12,053 14,092 10,770 12,910 Non-controlling interest 23 33 1 49 24 14,103 12,086 14,093 10,819 12,934 Key ratios, Volvo Group, % Gross margin 28.0 26.1 27.5 27.6 26.9 Research and development expenses as % of net sales 5.6 4.7 4.8 4.8 4.9 Selling expenses as % of net sales 6.6 6.2 6.2 5.9 6.0 Administrative expenses as % of net sales 1.5 1.5 1.3 1.3 1.3 Operating margin 13.8 11.4 13.8 10.3 13.0 Key ratios, Industrial Operations, % Gross margin 27.4 25.7 27.0 27.3 26.4 Research and development expenses as % of net sales 5.8 4.9 5.0 5.0 5.1 Selling expenses as % of net sales 6.2 5.9 5.8 5.5 5.6 Administrative expenses as % of net sales 1.6 1.5 1.3 1.4 1.3 Operating margin 13.5 11.1 13.7 10.0 12.8 EBITDA margin, Industrial Operations Operating income Industrial Operations 17,044 15,887 17,393 13,545 16,238 Product and software development, amortization 736 781 704 709 696 Other intangible assets, amortization 34 40 39 38 44 Tangible assets, depreciation 3,103 3,407 3,314 3,259 3,143 Total depreciation and amortization 3,873 4,228 4,057 4,006 3,883 Operating income before depreciation and amortization (EBITDA) 20,917 20,115 21,450 17,551 20,121 EBITDA margin, % 16.6 14.1 16.9 12.9 15.8 Net capitalization of research and development Capitalization 1,101 1,314 1,022 1,166 1,208 Amortization -701 -696 -665 -670 -657 Net capitalization and amortization 400 617 357 496 551 Return on operating capital in Industrial Operations, % ¹ 75.2 71.3 66.0 58.4 57.0 Return on capital employed in Industrial Operations, % ¹ 37.7 36.7 33.7 30.2 30.3 1 12 months rolling. Q1 VOLVO GROUP THE FIRST QUARTER 2024 22 QUARTERLY FIGURES ===== SIDA 23 ===== Net sales SEK M 1/2024 4/2023 3/2023 2/2023 1/2023 Trucks 89,946 99,896 89,848 93,748 89,556 Construction Equipment 22,877 26,578 24,296 28,999 25,109 Buses 5,173 7,336 5,386 5,434 4,267 Volvo Penta 5,168 5,031 4,956 5,416 5,603 Group Functions & Other 4,281 5,448 3,954 3,629 3,779 Eliminations -1,280 -1,348 -1,219 -1,236 -1,195 Industrial Operations 126,163 142,941 127,220 135,991 127,117 Financial Services 6,532 6,542 6,249 5,851 5,370 Eliminations -1,519 -1,495 -1,195 -1,156 -1,184 Volvo Group 131,177 147,988 132,275 140,685 131,303 Operating income SEK M 1/2024 4/2023 3/2023 2/2023 1/2023 Trucks 13,073 13,691 13,397 8,950 12,854 Construction Equipment 3,683 2,710 3,733 5,353 4,587 Buses 259 323 340 219 -1,261 Volvo Penta 988 365 790 804 1,271 Group Functions & Other -947 -1,232 -878 -1,783 -1,225 Eliminations -13 30 11 3 12 Industrial Operations 17,044 15,887 17,393 13,545 16,238 Financial Services 1,009 1,005 927 916 871 Eliminations 106 90 144 128 158 Volvo Group 18,159 16,982 18,464 14,589 17,266 Adjusted operating income ¹ SEK M 1/2024 4/2023 3/2023 2/2023 1/2023 Trucks 13,073 13,691 14,038 14,950 12,715 Construction Equipment 3,683 3,320 3,733 5,353 4,587 Buses 259 323 340 219 178 Volvo Penta 988 365 790 804 1,271 Group Functions & Other -947 -352 -860 -513 -1,225 Eliminations -13 30 11 3 12 Industrial Operations 17,044 17,377 18,051 20,815 17,538 Financial Services 1,009 1,005 1,062 916 871 Eliminations 106 90 144 128 158 Volvo Group adjusted operating income 18,159 18,472 19,258 21,859 18,566 1 For more information on adjusted operating income, please see note 6. Q1 VOLVO GROUP THE FIRST QUARTER 2024 23 QUARTERLY FIGURES ===== SIDA 24 ===== Operating margin % 1/2024 4/2023 3/2023 2/2023 1/2023 Trucks 14.5 13.7 14.9 9.5 14.4 Construction Equipment 16.1 10.2 15.4 18.5 18.3 Buses 5.0 4.4 6.3 4.0 -29.6 Volvo Penta 19.1 7.3 15.9 14.8 22.7 Industrial Operations 13.5 11.1 13.7 10.0 12.8 Volvo Group 13.8 11.4 13.8 10.3 13.0 Adjusted operating margin % 1/2024 4/2023 3/2023 2/2023 1/2023 Trucks 14.5 13.7 15.6 15.9 14.2 Construction Equipment 16.1 12.5 15.4 18.5 18.3 Buses 5.0 4.4 6.3 4.0 4.2 Volvo Penta 19.1 7.3 15.9 14.8 22.7 Industrial Operations 13.5 12.2 14.2 15.3 13.8 Volvo Group adjusted operating margin 13.8 12.4 14.4 15.4 14.0 Share data 1/2024 4/2023 3/2023 2/2023 1/2023 Earnings per share, SEK ¹ 6.92 5.93 6.93 5.30 6.35 Earnings per share, SEK ¹, 12 months rolling 25.07 24.50 21.84 19.15 18.98 Diluted earnings per share, SEK 6.92 5.93 6.93 5.30 6.35 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. Q1 VOLVO GROUP THE FIRST QUARTER 2024 24 QUARTERLY FIGURES ===== SIDA 25 ===== 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 2023 (available at www.volvogroup.com). There are no new accounting policies applicable from 2024 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 cyclical nature of the commercial vehicles industry, intense competition, extensive government regulations, political and social uncertainty; Operational risks – such as transformation and technology risk, new business models, risks related to industrial operations including supply chain, reliance on suppliers and materials, cost inflation and price increases, information security and digital infrastructure, strategic transactions such as mergers and acquisitions, partnerships and divestments as well as residual value commitments; Climate and people risks – such as climate, people and culture as well as human rights; Compliance risks – such as data protection laws, protection and maintenance of intangible assets, legal proceedings and corruption and competition law; and Financial risks – such as insurance coverage, credit risk, pension commitments, interest-rates and currency fluctuations, liquidity risk, 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 82-88 in the Volvo Group Annual Report 2023. 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 and other geopolitical events. 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. 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. As of year-end 2023, approximately half of the initial provision had been utilized. The Volvo Group will continuously assess the size of the provision as the matter develops. Contingent liabilities The reported amounts for contingent liabilities reflect a part of Volvo Groupʼs risk exposure. Total contingent liabilities as of March 31, 2024, amounted to SEK 16.1 billion, an increase of SEK 0.2 billion compared with December 31, 2023. The gross exposure of SEK 16.1 billion is partly reduced by counter guarantees and collaterals. Q1 VOLVO GROUP THE FIRST QUARTER 2024 25 NOTES ===== SIDA 26 ===== 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 European Commission did not assess any potential effects of the infringement on the market. The Volvo Group considers that 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 outcomes, although uncertainty regarding ultimate exposure to the litigation 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. In light of progress in litigations and current risks, the Volvo Group has in Q2 2023 recognized a cost of SEK 6 billion, besides legal fees to advisors, which relate to 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 as the litigation progresses. NOTE 3 | ACQUISITIONS AND DIVESTMENTS Acquisitions and divestments In February, the Volvo Group acquired the battery business from Proterra Inc. and Proterra Operating Company Inc. The acquisition was made at a purchase price of SEK 2.4 billion, including an adjustment for inventory levels at closing. In March, the Volvo Group and Renault Group completed the creation of Flexis, a joint venture with the purpose to offer an all-new generation of electric vans. The initial investment for Volvo Groupʼs share in Flexis amounted to SEK 2.4 billion. The Volvo Group has not completed any other acquisitions or divestments of operations during the first quarter that have had a material impact on the financial statements. Assets and liabilities held for sale Assets and liabilities held for sale amounted to net SEK 2,753 M (3,803) as of March 31, 2024. It relates to the planned divestments of Arquus to John Cockerill Defense, Volvo Construction Equipmentʼs ABG paver business to Ammann Group, and property divestments. Q1 VOLVO GROUP THE FIRST QUARTER 2024 26 NOTES ===== SIDA 27 ===== NOTE 4 | CURRENCY AND FINANCIAL INSTRUMENTS Valuation principles and classifications of Volvo Group financial instruments, as described in Volvo Group Annual Report 2023 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 5.8 billion (6.9) and derivatives with negative fair values amounted to SEK 5.7 billion (5.8) as of March 31, 2024. The derivatives are accounted for on gross basis. Financial liabilities valued at amortized cost, reported as non- current and current bond loans and other loans, amounted to SEK 249.8 billion (233.5) in reported carrying value with a fair value of SEK 247.6 billion (232.8). In the Volvo Group consolidated financial position, financial liabilities include loan-related derivatives with negative fair values amounting to SEK 3.6 billion (3.3). Currency effect on operating income, Volvo Group Compared to first quarter 2023 SEK M First quarter 2024 First quarter 2023 Change Net flow in foreign currency -19 Realized and unrealized gains and losses on derivatives 2 -1 3 Unrealized gains and losses on receivables and liabilities in foreign currency -81 241 -323 Translation effect on operating income in foreign subsidiaries -7 Total currency effect on operating income, Volvo Group -346 Applicable currency rates Quarterly exchange rates Close rates First quarter 2024 First quarter 2023 Mar 31 Mar 31 2024 2023 BRL 2.10 2.01 2.13 2.03 CNY 1.44 1.52 1.47 1.51 EUR 11.28 11.20 11.49 11.28 GBP 13.17 12.68 13.41 12.81 KRW 0.0078 0.0082 0.0079 0.0079 USD 10.38 10.43 10.62 10.35 NOTE 5 | TRANSACTIONS WITH RELATED PARTIES Sales of goods, services and other income Purchases of goods, services and other expenses SEK M First quarter 2024 First quarter 2023 First quarter 2024 First quarter 2023 Associated companies 503 513 53 52 Joint ventures 880 391 311 325 Receivables Payables Mar 31 Dec 31 Mar 31 Dec 31 SEK M 2024 2023 2024 2023 Associated companies 513 259 75 106 Joint ventures 517 535 117 85 Q1 VOLVO GROUP THE FIRST QUARTER 2024 27 NOTES ===== SIDA 28 ===== NOTE 6 | RECONCILIATION OF ADJUSTED OPERATING INCOME Adjusted operating income SEK M 1/2024 4/2023 3/2023 2/2023 1/2023 Trucks 13,073 13,691 14,038 14,950 12,715 Construction Equipment 3,683 3,320 3,733 5,353 4,587 Buses 259 323 340 219 178 Volvo Penta 988 365 790 804 1,271 Group Functions & Other -947 -352 -860 -513 -1,225 Eliminations -13 30 11 3 12 Industrial Operations 17,044 17,377 18,051 20,815 17,538 Financial Services 1,009 1,005 1,062 916 871 Eliminations 106 90 144 128 158 Volvo Group adjusted operating income¹ 18,159 18,472 19,258 21,859 18,566 Adjustments SEK M 1/2024 4/2023 3/2023 2/2023 1/2023 Adjustment items (segment) Financial impact related to the planned divestment of Arquus (Group Functions & Other) – -880 – – – Financial impact related to the planned divestment of the ABG paver business (Construction Equipment) – -610 – – – Financial impact related to Russia: Trucks – – -640 – – Group Functions & Other – – -18 – – Financial Services – – -136 – – Costs relating to claims arising from the European Commissionʼs 2016 antitrust settlement decision (Trucks) – – – -6,000 – Restructuring charges relating to the US bus production for Nova Bus (Group Functions & Other) – – – -1,270 – 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 Total adjustments Trucks – – -640 -6,000 139 Construction Equipment – -610 – – – Buses – – – – -1,439 Volvo Penta – – – – – Group Functions & Other – -880 -18 -1,270 – Industrial Operations – -1,490 -658 -7,270 -1,300 Financial Services – – -136 – – Eliminations – – – – – Volvo Group – -1,490 -794 -7,270 -1,300 Operating income SEK M 1/2024 4/2023 3/2023 2/2023 1/2023 Trucks 13,073 13,691 13,397 8,950 12,854 Construction Equipment 3,683 2,710 3,733 5,353 4,587 Buses 259 323 340 219 -1,261 Volvo Penta 988 365 790 804 1,271 Group Functions & Other -947 -1,232 -878 -1,783 -1,225 Eliminations -13 30 11 3 12 Industrial Operations 17,044 15,887 17,393 13,545 16,238 Financial Services 1,009 1,005 927 916 871 Eliminations 106 90 144 128 158 Volvo Group¹ 18,159 16,982 18,464 14,589 17,266 1 As from 2024, elimination of internal interest income related to internal funding from Volvo Treasury AB to Financial Services is reclassified from finance net to gross income. The comparative figures in the financial statements for 2023 have been restated accordingly, impacting operating income positively with SEK 158 M in Q1, 2023. The effect on key ratios is insignificant. For reconciliation of other key ratios, see www.volvogroup.com Q1 VOLVO GROUP THE FIRST QUARTER 2024 28 NOTES ===== SIDA 29 ===== There was no income from investments in Group companies in the first quarter 2024. In the previous year an additional payment of earnout from divestment of UD Trucks amounted to SEK 49 M. Net financial assets amounted to SEK 6,599 M at end of the first quarter 2024. At year-end 2023, there was a net debt of SEK 34,147 M. Income statement First quarter SEK M 2024 2023 Net sales¹ 233 70 Cost of sales¹ -233 -70 Gross income – – Operating expenses¹ -314 -368 Operating income (loss) -314 -368 Income from investments in group companies – 49 Income from investments in joint ventures and associated companies – – Income from investments, other shares and participations – – Interest income and expenses -353 -160 Other financial income and expenses -14 -54 Income after financial items -681 -533 Appropriations – – Income taxes 129 91 Income for the period -552 -442 1 Of net sales in the first quarter, SEK 233 M (67) pertained to group companies, while purchases from group companies amounted to SEK 137 M (106). Other comprehensive income Income for the period -552 -442 Other comprehensive income, net of income taxes – – Total comprehensive income for the period -552 -442 Q1 VOLVO GROUP THE FIRST QUARTER 2024 29 PARENT COMPANY ===== SIDA 30 ===== Balance sheet SEK M 31 Mar 2024 31 Dec 2023 Assets Non-current assets Tangible assets 7 7 Financial assets Shares and participations in group companies 72,597 71,885 Investments in joint ventures and associated companies 8,946 8,946 Other shares and participations 2 2 Other non-current receivables 690 690 Deferred tax assets 324 205 Total non-current assets 82,556 81,735 Current assets Current receivables from group companies 7,239 47,762 Tax assets 1,174 – Other current receivables 197 305 Total current assets 8,610 48,067 Total assets 91,176 129,802 Equity and liabilities Equity Restricted equity 9,899 9,899 Unrestricted equity 38,694 75,849 Total Equity 48,593 85,748 Untaxed reserves 4,000 4,000 Provisions 246 251 Non-current liabilities¹ 742 696 Current liabilities² 37,595 39,107 Total equity and liabilities 91,176 129,802 1 Of which SEK 735 M (690) pertains to group companies. 2 Of which SEK 79 M (35,889) pertains to group companies. Events after the balance sheet date For important events, please see page 4. No other significant events have occurred after the end of the first quarter 2024 that are expected to have a material effect on the Volvo Group. Gothenburg, April 17, 2024 AB Volvo (publ) Martin Lundstedt President and CEO This report has not been reviewed by AB Volvoʼs auditors. Q1 VOLVO GROUP THE FIRST QUARTER 2024 30 PARENT COMPANY ===== SIDA 31 ===== Net order intake of trucks First quarter Change %Number of trucks 2024 2023 Net order intake Europe 25,077 31,290 -20 Heavy- and medium-duty 19,976 26,055 -23 Light-duty 5,101 5,235 -3 North America 9,620 15,159 -37 South America 7,898 5,212 52 Asia 4,115 5,336 -23 Africa and Oceania 1,991 3,043 -35 Total order intake 48,701 60,040 -19 Heavy-duty (>16 tons) 40,211 49,901 -19 Medium-duty (7-16 tons) 3,269 4,831 -32 Light-duty (<7 tons) 5,221 5,308 -2 Total order intake 48,701 60,040 -19 Net order intake of trucks by brand Volvo Europe 12,065 17,367 -31 North America 6,909 7,554 -9 South America 7,712 4,924 57 Asia 3,074 4,232 -27 Africa and Oceania 1,307 1,879 -30 Total Volvo 31,067 35,956 -14 Heavy-duty (>16 tons) 30,194 34,742 -13 Medium-duty (7-16 tons) 873 1,214 -28 Total Volvo 31,067 35,956 -14 Renault Trucks Europe 13,012 13,923 -7 Heavy- and medium-duty 7,911 8,688 -9 Light-duty 5,101 5,235 -3 North America 26 50 -48 South America 108 127 -15 Asia 1,041 1,104 -6 Africa and Oceania 636 537 18 Total Renault Trucks 14,823 15,741 -6 Heavy-duty (>16 tons) 7,769 8,528 -9 Medium-duty (7-16 tons) 1,833 1,905 -4 Light-duty (<7 tons) 5,221 5,308 -2 Total Renault Trucks 14,823 15,741 -6 Mack North America 2,685 7,555 -64 South America 78 149 -48 Africa and Oceania 2 229 -99 Total Mack 2,765 7,933 -65 Heavy-duty (>16 tons) 2,214 6,268 -65 Medium-duty (7-16 tons) 551 1,665 -67 Total Mack 2,765 7,933 -65 Q1 VOLVO GROUP THE FIRST QUARTER 2024 31 NET ORDER INTAKE ===== SIDA 32 ===== Deliveries of trucks First quarter Change %Number of trucks 2024 2023 Deliveries Europe 29,289 32,850 -11 Heavy- and medium-duty 22,559 26,702 -16 Light-duty 6,730 6,148 9 North America 15,056 16,011 -6 South America 5,154 4,475 15 Asia 3,717 5,742 -35 Africa and Oceania 2,254 2,453 -8 Total deliveries 55,470 61,531 -10 Heavy-duty (>16 tons) 44,431 50,684 -12 Medium-duty (7-16 tons) 4,270 4,604 -7 Light-duty (<7 tons) 6,769 6,243 8 Total deliveries 55,470 61,531 -10 Deliveries of trucks by brand Volvo Europe 14,554 17,189 -15 North America 7,881 8,306 -5 South America 5,012 4,297 17 Asia 3,045 4,449 -32 Africa and Oceania 1,462 1,548 -6 Total Volvo 31,954 35,789 -11 Heavy-duty (>16 tons) 30,987 34,705 -11 Medium-duty (7-16 tons) 967 1,084 -11 Total Volvo 31,954 35,789 -11 Renault Trucks Europe 14,735 15,661 -6 Heavy- and medium-duty 8,005 9,513 -16 Light-duty 6,730 6,148 9 North America 22 50 -56 South America 87 81 7 Asia 672 1,293 -48 Africa and Oceania 320 411 -22 Total Renault Trucks 15,836 17,496 -9 Heavy-duty (>16 tons) 7,449 9,345 -20 Medium-duty (7-16 tons) 1,618 1,908 -15 Light-duty (<7 tons) 6,769 6,243 8 Total Renault Trucks 15,836 17,496 -9 Mack North America 7,153 7,655 -7 South America 55 83 -34 Africa and Oceania 259 220 18 Total Mack 7,467 7,958 -6 Heavy-duty (>16 tons) 5,806 6,388 -9 Medium-duty (7-16 tons) 1,661 1,570 6 Total Mack 7,467 7,958 -6 Q1 VOLVO GROUP THE FIRST QUARTER 2024 32 DELIVERIES ===== SIDA 33 ===== Q1 VOLVO GROUP THE FIRST QUARTER 2024 33 OTHER INFORMATION This is information that AB Volvo (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication, through the agency of the contact person set out in the press release concerning this report, at 07.20 CET on April 17, 2024. This report contains forward-looking statements that reflect the Board of Directors' and management's 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. ===== SIDA 34 ===== Financial calendar Report on the second quarter 2024 July 18, 2024 Report on the third quarter 2024 October 18, 2024 Capital Markets Day November 14, 2024 Contacts Media relations: Claes Eliasson +46 765 53 72 29 Investor Relations: Johan Bartler +46 739 02 21 93 Anders Christensson +46 765 53 59 66 Q1 VOLVO GROUP THE FIRST QUARTER 2024 34 FINANCIAL CALENDAR AND CONTACTS Aktiebolaget Volvo (publ) 556012–5790 Investor Relations, VGHQ SE-405 08 Göteborg, Sweden Tel +46 31 66 00 00 www.volvogroup.com