===== SIDA 1 ===== Report on the second quarter 2023 Volvo Group Volvo Buses has received two orders for a total of 189 electric buses from Stagecoach, one of the UKʼs largest coach and bus operators. ===== SIDA 2 ===== The second quarter in brief ➣ In Q2 2023, net sales increased by 18% to SEK 140.8 billion ( 118.9). Adjusted for currency movements, the increase was 11%. ➣ Adjusted operating income1 amounted to SEK 21,732 M (13,745), corresponding to an adjusted operating margin of 15.4% ( 11.6). Adjusted operating income excludes a negative effect of SEK 1,270 M from a previously announced restructuring provision in Nova Bus and costs of SEK 6,000 M relating to claims arising from the European Commission's 2016 antitrust settlement decision. For more information, please see Legal Proceedings in Note 2. ➣ Reported operating income amounted to SEK 14,462 M (13,745). ➣ Currency movements had a positive impact on operating income of SEK 817 M. ➣ Earnings per share amounted to SEK 5.30 (5.14). ➣ Operating cash flow in the Industrial Operations amounted to SEK 12,553 M (7,199). ➣ Return on capital employed in Industrial Operations amounted to 30.2% (26.8). Second quarter First six months SEK M unless otherwise stated 2023 2022 2023 2022 Net sales 140,821 118,943 272,241 224,259 Adjusted operating income ¹ 21,732 13,745 40,141 26,426 Adjusted operating margin, % 15.4 11.6 14.7 11.8 Operating income 14,462 13,745 31,571 22,301 Operating margin, % 10.3 11.6 11.6 9.9 Income after financial items 14,409 13,873 31,206 22,899 Income for the period 10,819 10,520 23,753 17,591 Earnings per share, SEK 5.30 5.14 11.65 8.59 Operating cash flow in Industrial Operations 12,553 7,199 17,556 1,799 Net financial position in Industrial Operations, SEK bn ² 61.6 44.2 Return on capital employed in Industrial Operations, % ³ 30.2 26.8 Return on equity in Financial Services, % ³ 10.7 3.5 Return on equity in Financial Services excluding Russian and Belarus operations, % ³ 13.9 17.0 Net order intake, number of trucks 48,308 53,388 108,348 98,982 Deliveries, number of trucks 63,842 60,833 125,373 116,421 Net order intake, number of construction equipment 12,421 21,089 25,763 41,772 Deliveries, number of construction equipment 16,940 22,398 31,408 43,177 Net sales, SEK bn Adjusted operating income, SEK bn 1 Adjusted operating margin, % Return on capital employed Industrial Operations, % 3 118.9 140.8 Q2 2022Q3Q4Q1Q2 2023 13.7 21.711.6% 15.4% Q2 2022Q3Q4Q1Q2 2023 26.8%30.2% Q2 2022Q3Q4Q1Q2 2023 1 For information on adjusted operating income, please see note 6. 2 Excluding post-employment benefits and lease liabilities. 3 12 months rolling. VOLVO GROUP — 2 — THE SECOND QUARTER 2023 ===== SIDA 3 ===== CEOʼS COMMENTS Record earnings In Q2 2023, the Volvo Group continued to perform well, with continued growth and improved profitability. We increased our net sales by 18% to SEK 140.8 billion and the adjusted operating income by SEK 8.0 billion to SEK 21.7 billion, corresponding to an adjusted operating margin of 15.4% (11.6). Thanks to a strong commercial focus, we have been successful in improving margins while managing cost inflation and increased disturbances in the supply chain. Return on capital employed rose to 30.2% (26.8). Transport volumes and infrastructure activity remain on good levels in most of our markets, but have come down from recent highs. Our service sales grew by 11% adjusted for currency supported by continued good vehicle and machine utilization at our customers and our own efforts to develop service offers that keep our customersʼ trucks and businesses moving. Our Industrial Operations generated an operating cash flow of SEK 12.6 billion (7.2) and at the end of the quarter we had a net cash position of SEK 61.6 billion, excluding pension and lease liabilities. A good profitability and strong finances are crucial for us to be able to continue investing in, and taking advantage of, the biggest technological shift ever in our industries. In Q2, order intake for new trucks declined by 10% to 48,300 vehicles, which reflects the fact that we have continued to be restrictive in slotting orders and also more cautiousness among customers. Deliveries on the other hand, increased by 5% compared to the previous year and amounted to 63,800 trucks. This is the result of hard work across the whole value chain to handle continued supply disturbances. Net sales in our truck business grew by 19% to SEK 93.7 billion, with strong sales in almost all regions. The adjusted operating margin increased to 15.9% (12.2). Construction Equipmentʼs net sales increased by 12% to SEK 29.0 billion with a good development for our Volvo products and the adjusted operating margin rose to 18.5% (13.8). However, there are signs of demand weakening in some markets due to the overall economic development and rising interest rates, which is cooling down the activity especially within residential construction. Order intake decreased by 41%, which is a consequence of lower demand in Europe and China as well as us having been restrictive in our order slotting. In Q2, net sales in the Bus segment rose by 34% and amounted to SEK 5.4 billion, driven by a continued rebound for coaches and an improvement in the service business. The adjusted operating margin improved to 4.0% (0.2). To secure the competitiveness of our Nova Bus business, we have decided to focus on Canada and end the production of buses in the US, which has been loss-making, by Q1 2025. "We continue to push innovation and investments to stay in the forefront of the transformation. The importance of performing today to be able to transform for tomorrow will be decisive for the years to come." Volvo Penta's net sales rose by 18% to SEK 5.4 billion on a softening market. The adjusted operating margin amounted to 14.8% (15.2). For Volvo Financial Services, the credit portfolio continued to grow and credit losses remained low, reflecting good customer profitability. The adjusted operating income amounted to SEK 916 M (792). We are gradually entering into a more normalized demand situation with record strong profitability and high operational performance. At the same time, we continue to push innovation and investments to stay in the forefront of the transformation. The importance of performing today to be able to transform for tomorrow will be decisive for the years to come. This will benefit our customers, our shareholders and society as a whole, today and in the future. Martin Lundstedt President and CEO VOLVO GROUP — 3 — THE SECOND QUARTER 2023 ===== SIDA 4 ===== FINANCIAL SUMMARY OF THE SECOND QUARTER 2023 Net sales In Q2 2023, the Volvo Groupʼs net sales amounted to SEK 140,821 M compared with SEK 118,943 M in the same quarter the preceding year. Sales increased in all business areas and in almost all regions. Adjusted for currency movements, net sales increased by 11%, of which vehicle sales increased by 12% and service sales by 11%. Operating income In Q2 2023, adjusted operating income amounted to SEK 21,732 M (13,745), corresponding to an adjusted operating margin of 15.4% (11.6). The adjusted operating income in Q2 2023 excludes a negative effect of SEK 1,270 M from a previously announced restructuring provision in Nova Bus in the Group Functions & Other segment and costs of SEK 6,000 M relating to claims arising from the European Commission's 2016 antitrust settlement decision in the Trucks segment. For more information, please see Legal Proceedings in Note 2. There were no adjustments in Q2 2022 . For more information on adjusted operating income, please also see Note 6. Compared with Q2 2022, the higher adjusted operating income is mainly an effect of price realization and favorable brand and product mix. This was partly offset by higher material costs, increased R&D expenses and lower production efficiency. Currency movements, compared with Q2 2022 , had a positive impact of SEK 817 M. Reported operating income in Q2 2023 amounted to SEK 14,462 M (13,745). Net sales Second quarter Change % First six months Change %SEK M 2023 2022 2023 2022 Net sales per geographical region Europe 59,553 47,621 25 117,074 94,186 24 North America 42,186 34,851 21 82,339 64,712 27 South America 12,049 13,153 -8 21,615 21,989 -2 Asia 17,765 16,141 10 34,253 30,255 13 Africa and Oceania 9,267 7,177 29 16,959 13,117 29 Total net sales 140,821 118,943 18 272,241 224,259 21 Net sales per product group Vehicles 109,305 92,234 19 210,035 172,269 22 Services 31,515 26,708 18 62,205 51,990 20 Total net sales 140,821 118,943 18 272,241 224,259 21 Timing of revenue recognition Revenue of vehicles and services recognized at the point of delivery 128,657 109,532 17 248,536 205,871 21 Revenue of vehicles and services recognized over contract period 12,163 9,411 29 23,705 18,389 29 Total net sales 140,821 118,943 18 272,241 224,259 21 Consolidated Income Statement Second quarter First six months SEK M 2023 2022 2023 2022 Net sales 140,821 118,943 272,241 224,259 Cost of sales -101,900 -90,221 -198,012 -170,921 Gross income 38,920 28,721 74,229 53,338 Research and development expenses -6,819 -5,454 -13,310 -10,037 Selling expenses -8,329 -6,977 -16,224 -13,760 Administrative expenses -1,858 -1,432 -3,521 -2,753 Other operating income and expenses -6,873 -809 -8,853 -4,187 Income/loss from investments in joint ventures and associated companies -578 -323 -749 -446 Income/loss from other investments -2 19 -2 146 Operating income 14,462 13,745 31,571 22,301 Interest income and similar credits 572 182 1,144 308 Interest expenses and similar charges -262 -277 -576 -606 Other financial income and expenses -362 222 -932 896 Income after financial items 14,409 13,873 31,206 22,899 Income taxes -3,591 -3,352 -7,453 -5,308 Income for the period * 10,819 10,520 23,753 17,591 * Attributable to: Owners of AB Volvo 10,770 10,443 23,680 17,476 Non-controlling interest 49 78 73 116 10,819 10,520 23,753 17,591 Basic earnings per share, SEK 5.30 5.14 11.65 8.59 Diluted earnings per share, SEK 5.30 5.14 11.65 8.59 VOLVO GROUP — 4 — THE SECOND QUARTER 2023 ===== SIDA 5 ===== Financial items In Q2 2023 , interest income was SEK 572 M (182) as a consequence of higher interest on financial assets, whereas interest expenses amounted to SEK 262 M (277). Other financial income and expenses amounted to SEK -362 M (222). The change is primarily due to revaluation effects of financial assets and liabilities. Income taxes In Q2 2023, income taxes amounted to SEK 3,591 M (3,352). The tax rate was 25% (24). Income for the period and earnings per share In Q2 2023 , income for the period amounted to SEK 10,819 M (10,520). Earnings per share amounted to SEK 5.30 (5.14). Operating cash flow in the Industrial Operations During Q2 2023 , operating cash flow in the Industrial Operations was positive in an amount of SEK 12,553 M (7,199). Compared with Q2 2022, the increased operating cash flow is primarily related to the improved earnings, partly offset by higher inventories. Operating cash flow Industrial Operations, SEK bn 7.2 12.6 Q2 2022Q3Q4Q1Q2 2023 Volvo Group financial position During Q2 2023, net financial assets in the Industrial Operations, excluding provisions for post-employment benefits and lease liabilities, decreased by SEK 16.1 billion resulting in a net financial asset position of SEK 61.6 billion (44.2) on June 30, 2023. The change is mainly explained by the dividend paid to AB Volvo shareholders of SEK 28.5 billion and the positive operating cash flow of SEK 12.6 billion. Currency movements increased net financial assets by SEK 1.1 billion. Including provisions for post-employment benefits and lease liabilities, the Industrial Operations net financial assets amounted to SEK 47.8 billion (38.0) on June 30, 2023. During Q2 2023, remeasurements of defined benefit pension plans had a positive impact of SEK 0.9 billion. The remeasurements were primarily an effect of higher discount rates, partly offset by lower return on assets. On June 30, 2023, total equity for the Volvo Group amounted to SEK 165.8 billion compared with SEK 166.2 billion at year-end 2022. The equity ratio was 24.4% (26.4). On the same date the equity ratio in the Industrial Operations amounted to 32.0% (34.1). Net financial position excl. post-employment benefits and lease liabilities Industrial Operations, SEK bn 44.2 61.6 Q2 2022Q3Q4Q1Q2 2023 Blue-collar 54,100 53,486 51,779 52,826 Whereof temporary employees and consultants 9,021 8,567 7,064 9,008 White-collar 51,096 50,765 50,376 48,658 Whereof temporary employees and consultants 7,341 7,366 7,405 7,147 Total number of employees 105,196 104,251 102,155 101,484 Whereof temporary employees and consultants 16,362 15,933 14,469 16,155 Number of employees Jun 30 2023 Mar 31 2023 Dec 31 2022 Jun 30 2022 Number of employees On June 30, 2023 , the Volvo Group had 105,196 employees, including temporary employees and consultants, compared with 101,484 employees on June 30 2022 . The number of blue-collar employees increased by 1,274 and the number of white-collar employees increased by 2,438. 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 SECOND QUARTER 2023 ===== SIDA 6 ===== IMPORTANT EVENTS FOR THE VOLVO GROUP Stephen Roy new member of the Volvo Group Executive Board and President of Mack Trucks Stephen Roy was appointed as a new member of Volvo Groupʼs Executive Board and President of Mack Trucks. Stephen Roy began his Volvo Group career in 1996 and was previously Head of Region North America for Volvo Construction Equipment. He took on his new position on June 1. He succeeded Martin Weissburg, who retired after a long and successful career in the Volvo Group. Nova Bus ends bus production in the US Nova Bus is exiting bus production in the US market. Consequently, the company has decided to close its Plattsburgh manufacturing and delivery facility by 2025. Production in North America will be focused to its Canadian facilities located in Saint-Eustache and Saint-François-du-Lac (Quebec) and Nova Bus will continue its successful Canadian business, where it is the market leader. A restructuring provision of SEK 1,270 M negatively impacted the Volvo Groupʼs operating income in the second quarter of 2023. The provision is reported in the segment Group Functions & Other. Mats Backman new Chief Financial Officer and member of the Volvo Group Executive Board Mats Backman has been appointed as Chief Financial Officer and a new member of Volvo Group's Executive Board. He will succeed Jan Ytterberg, who as previously communicated, will continue as Volvo Group senior advisor. Mats Backman has held many senior positions in Swedish industry and has extensive international experience. He has been the Chief Financial Officer for companies such as Sandvik, Autoliv and Veoneer. He will take on his new position during the second half of 2023. The exact date is yet to be decided. Joint venture with Westport In July, Volvo Group and Westport signed a letter of intent to establish a joint venture for high-pressure gas injection fuel systems (HPDI) with a 45/55 ownership split. Westport will contribute with current HPDI assets, activities, including fixed assets, intellectual property, and business into the joint venture. Volvo will acquire 45% in the joint venture for approximately SEK 300 M (USD 28 M) plus up to an additional approximately SEK 500 M (USD 45 M) depending on the performance of the joint venture. The transaction has no significant impact on the Volvo Groupʼs earnings or financial position. Previously reported important events • Volvo Buses changes business model in Europe and has decided to close its bodybuilding factory in Wroclaw in 2024 • Annual General Meeting of AB Volvo Detailed information about the events is available at www.volvogroup.com VOLVO GROUP — 6 — THE SECOND QUARTER 2023 ===== SIDA 7 ===== BUSINESS SEGMENT OVERVIEW Net sales Second quarter Change % Change %¹ First six months Change % Change %¹ 12 months Jan-Dec SEK M 2023 2022 2023 2022 rolling 2022 Trucks 93,748 78,603 19 12 183,304 148,155 24 16 345,685 310,536 Construction Equipment 28,999 25,814 12 7 54,108 48,427 12 6 105,942 100,261 Buses 5,434 4,062 34 26 9,701 7,112 36 27 21,172 18,583 Volvo Penta 5,416 4,597 18 11 11,019 8,802 25 18 20,319 18,102 Group Functions & Other 3,629 3,750 -3 -8 7,407 7,598 -3 -8 16,186 16,376 Eliminations -1,236 -1,106 - - -2,431 -2,030 - - -4,557 -4,155 Industrial Operations 135,991 115,719 18 11 263,108 218,065 21 13 504,747 459,703 Financial Services 5,851 4,067 44 36 11,221 7,801 44 34 20,774 17,355 Reclassifications and eliminations -1,021 -844 - - -2,088 -1,606 - - -4,061 -3,579 Volvo Group net sales 140,821 118,943 18 11 272,241 224,259 21 14 521,460 473,479 1 Adjusted for exchange rate fluctuations. Adjusted operating income ¹ Second quarter Change % First six months Change % 12 months Jan-Dec SEK M 2023 2022 2023 2022 rolling 2022 Trucks 14,950 9,551 57 27,665 18,240 52 43,246 33,821 Construction Equipment 5,353 3,568 50 9,940 6,378 56 16,806 13,244 Buses 219 7 3,087 397 27 1,366 723 353 Volvo Penta 804 699 15 2,075 1,468 41 3,136 2,530 Group Functions & Other -513 -890 -42 -1,738 -1,379 26 -3,270 -2,911 Eliminations 3 19 - 15 16 - 10 12 Industrial Operations 20,815 12,953 61 38,353 24,751 55 60,651 47,049 Financial Services 916 792 16 1,787 1,674 7 3,529 3,416 Reclassifications and eliminations - - - - 1 - 1 2 Volvo Group adjusted operating income 21,732 13,745 58 40,141 26,426 52 64,181 50,467 Adjustments ¹ -7,270 - - -8,570 -4,125 - -9,200 -4,755 Volvo Group operating income 14,462 13,745 5 31,571 22,301 42 54,981 45,712 1 For more information on adjusted operating income, please see note 6 Adjusted operating margin Second quarter First six months 12 months Jan-Dec % 2023 2022 2023 2022 rolling 2022 Trucks 15.9 12.2 15.1 12.3 12.5 10.9 Construction Equipment 18.5 13.8 18.4 13.2 15.9 13.2 Buses 4.0 0.2 4.1 0.4 3.4 1.9 Volvo Penta 14.8 15.2 18.8 16.7 15.4 14.0 Industrial Operations 15.3 11.2 14.6 11.4 12.0 10.2 Volvo Group adjusted operating margin 15.4 11.6 14.7 11.8 12.3 10.7 Volvo Group operating margin 10.3 11.6 11.6 9.9 10.5 9.7 VOLVO GROUP — 7 — THE SECOND QUARTER 2023 ===== SIDA 8 ===== TRUCKS All-time high profitability • In Q2, net sales increased by 19% to SEK 93,748 M • Adjusted operating income increased to SEK 14,950 M (9,551) with a margin of 15.9% (12.2) • Deliveries increased by 5% while order intake decreased by 10% Market development In Q2, truck fleet utilization in Europe and North America continued to be on a good level. In both regions, larger fleets continue their replacement cycles while smaller companies have become more cautious because of lower freight volumes and spot rates as well as softer used truck prices. In South America, the market continued to cool off following the prebuy of Euro V trucks in 2022 ahead of the new Euro VI emission legislation introduced on January 1, 2023. The Indian market continued to increase with the support of good economic activity and increased consumer spending. In China the total market started to rebound from low levels in March, and this development continued during Q2. Orders and deliveries In Q2, the Volvo Group's truck brands were restrictive in slotting orders too far out in time due to extended order backlogs. Order intake in Europe decreased by 7% to 24,840 trucks while deliveries increased by 11% to 33,169 trucks. Volvo Trucksʼ total heavy-duty market share through May decreased to 17.9% (19.3) while the electric heavy-duty market share increased to 50.7% (36.9). Renault Trucksʼ heavy-duty total market share decreased to 8.9% (9.6) and the electric heavy-duty market share amounted to 18.0% (18.8). Order intake in North America decreased by 11% to 8,708 trucks while deliveries increased by 6% to 15,960 vehicles. Volvo Trucksʼ heavy-duty truck market share through May decreased to 9.2% (10.5). Mack Trucksʼ market share increased to 5.9% (5.8). In South America, order intake decreased by 32% to 6,302 trucks and deliveries decreased by 36% to 5,385 vehicles. In Brazil, Volvo Trucksʼ heavy-duty truck market share through June decreased to 23.0% (25.8). Order intake in Asia increased by 7% to 5,236 vehicles and deliveries increased by 25% to 5,902 vehicles, mainly driven by the Middle East. In Q2, order intake for fully electric trucks decreased by 38% to 677 (1,097) vehicles. Deliv eries of fully electric trucks increased by 251% to 759 (216) vehicles. Order intake in the Indian joint venture, VE Commercial Vehicles, increased by 3% to 14,092 vehicles while deliveries increased by 8% to 14,381 vehicles. Deliveries from the Chinese joint venture, Dongfeng Commercial Vehicles increased by 40% to 32,674 trucks. Total market development First six months Change % Full year Forecast Change vs. previous forecastRegistrations, number of trucks 2023 2022 2022 2023 Europe 29 ¹ heavy-duty 129,711 109,486 18 264,100 - - Europe 30 ¹ heavy-duty 145,340 122,673 18 298,066 330,000 +10 000 North America heavy-duty (retail) 137,163 111,256 23 309,916 330,000 +10 000 Brazil heavy-duty 39,114 43,641 -10 97,856 80,000 unchanged China ² medium- and heavy-duty 395,617 343,999 15 566,130 650,000 unchanged India medium- and heavy-duty 194,574 178,866 9 350,797 400,000 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 SECOND QUARTER 2023 ===== SIDA 9 ===== Net order intake Second quarter Change % First six months Change %Number of trucks 2023 2022 2023 2022 Europe 24,840 26,595 -7 56,130 51,579 9 Heavy- and medium-duty 18,476 22,335 -17 44,531 41,966 6 Light-duty 6,364 4,260 49 11,599 9,613 21 North America 8,708 9,731 -11 23,867 15,748 52 South America 6,302 9,336 -32 11,514 16,690 -31 Asia 5,236 4,883 7 10,572 9,649 10 Africa and Oceania 3,222 2,843 13 6,265 5,316 18 Total order intake 48,308 53,388 -10 108,348 98,982 9 Heavy-duty (>16 tons) 38,397 45,993 -17 88,298 82,854 7 Medium-duty (7-16 tons) 3,497 3,054 15 8,328 6,326 32 Light-duty (<7 tons) 6,414 4,341 48 11,722 9,802 20 Total order intake 48,308 53,388 -10 108,348 98,982 9 Volvo 29,597 33,334 -11 65,553 60,491 8 Renault Trucks 13,326 15,576 -14 29,067 31,717 -8 Heavy- and medium-duty 6,912 11,235 -38 17,345 21,915 -21 Light-duty 6,414 4,341 48 11,722 9,802 20 Mack 5,104 4,093 25 13,037 6,124 113 Other brands 281 385 -27 691 650 6 Total order intake 48,308 53,388 -10 108,348 98,982 9 Non-consolidated operations VE Commercial Vehicles (Eicher) 14,092 13,726 3 34,682 31,612 10 Deliveries Second quarter Change % First six months Change %Number of trucks 2023 2022 2023 2022 Europe 33,169 29,809 11 66,019 58,898 12 Heavy- and medium-duty 24,862 24,944 - 51,564 49,220 5 Light-duty 8,307 4,865 71 14,455 9,678 49 North America 15,960 15,073 6 31,971 28,981 10 South America 5,385 8,380 -36 9,860 14,625 -33 Asia 5,902 4,718 25 11,644 8,415 38 Africa and Oceania 3,426 2,853 20 5,879 5,502 7 Total deliveries 63,842 60,833 5 125,373 116,421 8 Heavy-duty (>16 tons) 50,355 52,066 -3 101,039 98,955 2 Medium-duty (7-16 tons) 5,070 3,847 32 9,674 7,665 26 Light-duty (<7 tons) 8,417 4,920 71 14,660 9,801 50 Total deliveries 63,842 60,833 5 125,373 116,421 8 Volvo 36,455 38,256 -5 72,244 72,117 - Renault Trucks 19,164 15,030 28 36,660 29,770 23 Heavy- and medium-duty 10,747 10,110 6 22,000 19,969 10 Light-duty 8,417 4,920 71 14,660 9,801 50 Mack 7,960 7,152 11 15,918 13,670 16 Other brands 263 395 -33 551 864 -36 Total deliveries 63,842 60,833 5 125,373 116,421 8 Non-consolidated operations VE Commercial Vehicles (Eicher) 14,381 13,279 8 34,398 31,139 10 Dongfeng Commercial Vehicle Company (Dongfeng Trucks) 32,674 23,262 40 46,858 43,823 7 VOLVO GROUP — 9 — THE SECOND QUARTER 2023 ===== SIDA 10 ===== Net sales and operating income Second quarter Change % First six months Change %SEK M 2023 2022 2023 2022 Net sales per geographical region Europe 43,080 34,492 25 85,756 67,991 26 North America 27,762 23,951 16 55,369 44,531 24 South America 9,101 9,962 -9 16,326 16,743 -2 Asia 8,070 5,794 39 15,603 10,590 47 Africa and Oceania 5,734 4,405 30 10,250 8,300 23 Total net sales 93,748 78,603 19 183,304 148,155 24 Net sales per product group Vehicles 75,851 63,018 20 147,605 117,485 26 Services 17,897 15,585 15 35,699 30,671 16 Total net sales 93,748 78,603 19 183,304 148,155 24 Timing of revenue recognition Revenue of vehicles and services recognized at the point of delivery 88,384 74,017 19 172,779 139,034 24 Revenue of vehicles and services recognized over contract period 5,364 4,586 17 10,525 9,121 15 Total net sales 93,748 78,603 19 183,304 148,155 24 Adjusted operating income ¹ 14,950 9,551 57 27,665 18,241 52 Adjustments -6,000 - - -5,861 -1,447 - Operating income 8,950 9,551 -6 21,804 16,794 30 Adjusted operating margin, % 15.9 12.2 15.1 12.3 Operating margin, % 9.5 12.2 11.9 11.3 1 For more information on adjusted operating income, please see note 6. Net sales and operating income In Q2 2023, the truck operationʼs net sales amounted to SEK 93,748 M, which was 19% higher than in Q2 2022. Excluding currency effects, net sales increased by 12% with sales of vehicles increasing by 13% and sales of services by 8%. Adjusted operating income increased to SEK 14,950 (9,551), corresponding to an adjusted operating margin of 15.9% (12.2). Adjusted operating income excludes costs of SEK 6,000 M relating to claims arising from the European Commissionʼs 2016 antitrust settlement decision. For more information, please see Legal Proceedings in Note 2. There were no adjustments in Q2 2022. For more information on adjusted operating income, see Note 6. Compared with Q2 2022, the higher adjusted operating income is primarily an effect of price realization, which was partly offset by increased material costs and R&D expenses as well as lower production efficiency. Compared with Q2 2022, currency movements had a positive impact of SEK 633 M. Reported operating income amounted to SEK 8,950 M (9,551). Important events In May, Volvo Trucks signed a letter of intent to sell 1,000 electric trucks until 2030 to Holcim, one of the worldʼs largest building solution providers. The deal is the largest commercial order to date for Volvo electric trucks. The first 130 trucks will be delivered in 2023 and 2024. Also in May, it was announced that Volvo Trucks and Jiangling Motors Co., Ltd would not pursue the previously announced transaction which involved the acquisition of JMC Heavy Duty Vehicle Co., Ltd, and its manufacturing site in Taiyuan, Shanxi province, China. Volvo Trucks continues to export trucks to customers in China. Net order intake of fully electric trucks Second quarter Change % First six months Change %Number of trucks 2023 2022 2023 2022 Volvo 410 612 -33 896 814 10 Renault Trucks 258 476 -46 582 768 -24 Heavy- and medium-duty 113 173 -35 287 311 -8 Light-duty 145 303 -52 295 457 -35 Mack 9 9 - 24 9 167 Total order intake 677 1,097 -38 1,502 1,591 -6 Deliveries of fully electric trucks Second quarter Change % First six months Change %Number of trucks 2023 2022 2023 2022 Volvo 337 83 306 687 144 377 Renault Trucks 417 127 228 748 257 191 Heavy- and medium-duty 168 93 81 296 175 69 Light-duty 249 34 632 452 82 451 Mack 5 6 -17 7 8 -13 Total deliveries 759 216 251 1,442 409 253 VOLVO GROUP — 10 — THE SECOND QUARTER 2023 ===== SIDA 11 ===== CONSTRUCTION EQUIPMENT Record earnings despite lower deliveries • In Q2, deliveries decreased by 24%, primarily due to China • Both adjusted and reported operating income increased to SEK 5,353 M (3,568), with a margin of 18.5% (13.8) • Service sales increased by 4%, adjusted for currency Market development Overall, the development in major markets outside of China continued to be good in Q2, with growth in North America, flat markets in Europe and Asia outside of China, while South America continued to be weak. In the North American market, demand continued to be solid with the continued execution of large infrastructure projects and strong commercial construction more than offsetting a weakness in residential construction amid high interest rates. In Europe, market growth has flattened in line with a weaker macroeconomic outlook, an elevated inflation and higher interest rates. In South America, investment levels remain low in Brazil due to weak business confidence among customers. The Chinese market continued to have a significant negative correction due to the prebuy effect related to the emissions regulations change at the end of last year in addition to lower economic activity. Development in other Asian markets were positive due to growth in India and the Middle East more than offsetting a weakness in markets such as South Korea and Thailand. Orders and deliveries In Q2, net order intake declined by 41%. Order intake continued to be heavily impacted by low order intake in China reflecting a weaker market and the prebuy in Q4 last year. Cautiousness among customers and dealers in Europe also impacted order intake negatively. Order intake in North America decreased due to restrictive order slotting. In Q2, deliveries decreased by 24% as a consequence of lower demand in China and a slowdown in Brazil. Deliveries increased in Europe and more substantially in North America supported by favorable market conditions. Total market development Year-to-date May Forecast Previous forecast Change in % measured in units 2023 2023 2023 Europe 4 -5% to +5% -5% to +5% North America 9 0% to +10% -5% to +5% South America -24 -20% to -10% -20% to -10% Asia excl. China 4 -5% to +5% -5% to +5% China -40 -40% to -30% -15% to -5% Net order intake Second quarter Change % First six months Change %Number of construction equipment 2023 2022 2023 2022 Europe 2,282 3,768 -39 5,508 8,917 -38 North America 1,064 2,045 -48 3,660 3,299 11 South America 638 825 -23 1,116 1,510 -26 Asia 7,394 13,471 -45 13,798 26,325 -48 Africa and Oceania 1,043 980 6 1,681 1,721 -2 Total orders 12,421 21,089 -41 25,763 41,772 -38 Large and medium construction equipment 9,785 16,039 -39 19,834 31,114 -36 Compact construction equipment 2,636 5,050 -48 5,929 10,658 -44 Of which fully electric 205 171 20 464 312 49 Total orders 12,421 21,089 -41 25,763 41,772 -38 Of which: Volvo 6,115 9,237 -34 15,276 18,613 -18 SDLG 6,233 11,777 -47 10,347 23,038 -55 Of which in China 4,510 9,839 -54 7,356 19,022 -61 VOLVO GROUP — 11 — THE SECOND QUARTER 2023 ===== SIDA 12 ===== Deliveries Second quarter Change % First six months Change %Number of construction equipment 2023 2022 2023 2022 Europe 4,655 4,400 6 9,039 9,215 -2 North America 2,650 1,967 35 4,984 3,702 35 South America 645 1,516 -57 1,043 2,467 -58 Asia 7,939 13,471 -41 14,309 26,169 -45 Africa and Oceania 1,051 1,044 1 2,033 1,624 25 Total deliveries 16,940 22,398 -24 31,408 43,177 -27 Large and medium construction equipment 12,903 17,067 -24 23,568 32,282 -27 Compact construction equipment 4,037 5,331 -24 7,840 10,895 -28 Of which fully electric 228 169 35 430 282 52 Total deliveries 16,940 22,398 -24 31,408 43,177 -27 Of which: Volvo 10,634 10,546 1 20,921 20,018 5 SDLG 6,233 11,777 -47 10,347 23,038 -55 Of which in China 4,510 9,839 -54 7,356 19,022 -61 Net sales and operating income Second quarter Change % First six months Change %SEK M 2023 2022 2023 2022 Net sales per geographical region Europe 9,413 7,607 24 18,023 14,996 20 North America 8,123 5,669 43 14,660 10,431 41 South America 1,105 1,890 -42 1,864 2,980 -37 Asia 8,042 8,716 -8 15,140 16,844 -10 Africa and Oceania 2,315 1,931 20 4,421 3,175 39 Total net sales 28,999 25,814 12 54,108 48,427 12 Net sales per product group Construction equipment 24,986 22,154 13 46,174 41,137 12 Services 4,013 3,660 10 7,934 7,290 9 Total net sales 28,999 25,814 12 54,108 48,427 12 Timing of revenue recognition Revenue of vehicles and services recognized at the point of delivery 28,299 25,187 12 52,769 47,205 12 Revenue of vehicles and services recognized over contract period 700 626 12 1,339 1,222 10 Total net sales 28,999 25,814 12 54,108 48,427 12 Adjusted operating income ¹ 5,353 3,568 50 9,940 6,378 56 Adjustments - - - - -106 - Operating income 5,353 3,568 50 9,940 6,272 58 Adjusted operating margin, % 18.5 13.8 18.4 13.2 Operating margin, % 18.5 13.8 18.4 13.0 1 For more information on adjusted operating income, please see note 6. Net sales and operating income In Q2 2023, net sales increased by 12% to SEK 28,999 M (25,814). Adjusted for currency movements net sales increased by 7%, of which sales of machines were up by 7% and service sales by 4%. Both adjusted and reported operating income amounted to SEK 5,353 M (3,568), corresponding to an operating margin of 18.5% (13.8). Compared with Q2 2022, the higher operating income is an effect of positive brand and product mix and price realization, which were partially offset by decreased volumes and lower production efficiency as well as higher R&D and selling expenses. Compared with Q2 2022, currency movements had a positive impact of SEK 229 M. Important events During Q2, Volvo Construction Equipment announced the creation of a new dedicated business unit for its range of compact machines and solutions, with the aim of driving growth and profitability in this important and growing product segment. Volvo CE continued the global rollout of electric machines with a launch event in Singapore for the Southeast Asian markets and a launch in Tokyo for the important Japanese market. VOLVO GROUP — 12 — THE SECOND QUARTER 2023 ===== SIDA 13 ===== BUSES Improved service sales and profitability • In Q2, order intake increased by 23% while deliveries were flat • Both adjusted and reported operating income increased to SEK 219 M (7) with a margin of 4.0% (0.2) • Service sales increased by 23%, adjusted for currency In Q2, global demand for new buses continued to be high, particularly for coaches. In the city bus segment, demand for electric buses continued to increase. Compared with Q2 2022, net order intake increased by 23% to 1,743 units, primarily supported by large coach orders in North America and important electric bus orders to Stagecoach in the UK. Deliveries were stable at 1,277 units, with higher deliveries in North America, but lower deliveries in South America and Europe. In Q2, net sales increased by 34% to SEK 5,434 M (4,062). Adjusted for currency, net sales increased by 26%, whereof vehicle sales increased by 26% and service sales by 23%. Both adjusted and reported operating income amounted to SEK 219 M (7), corresponding to an operating margin of 4.0% (0.2). Compared with Q2 2022, the higher operating income is an effect of price realization, increased service sales and a positive mix, whereas material costs increased. Compared with Q2 2022, currency movements had a positive impact of SEK 116 M. During Q2, Volvo Buses signed Letters of Intent with body builders MCV in Egypt and Sunsundegui in Spain, with the intention to produce bodies under license to support the new business model for Europe, which was announced in Q1. The electric city bus LUMINUS was launched in Mexico. It is based on the BZL technology, will come in different lengths, battery configurations and be equipped with important safety systems. Net order intake and deliveries ¹ Second quarter Change % First six months Change %Number of buses 2023 2022 2023 2022 Total orders 1,743 1,422 23 3,582 3,186 12 Of which fully electric 317 78 306 365 130 181 Of which hybrids 4 40 -90 7 52 -87 Total deliveries 1,277 1,295 -1 2,461 2,242 10 Of which fully electric 131 39 236 165 70 136 Of which hybrids 52 46 13 96 49 96 Net sales and operating income Second quarter Change % First six months Change %SEK M 2023 2022 2023 2022 Net sales per geographical region Europe 1,968 1,455 35 3,309 2,452 35 North America 2,104 1,534 37 3,848 2,777 39 South America 378 361 5 678 608 11 Asia 363 315 15 728 563 29 Africa and Oceania 622 397 57 1,138 713 60 Total net sales 5,434 4,062 34 9,701 7,112 36 Net sales per product group Vehicles 4,080 3,023 35 7,067 5,105 38 Services 1,354 1,038 30 2,635 2,007 31 Total net sales 5,434 4,062 34 9,701 7,112 36 Timing of revenue recognition Revenue of vehicles and services recognized at the point of delivery 5,210 3,877 34 9,274 6,771 37 Revenue of vehicles and services recognized over contract period 225 184 22 427 342 25 Total net sales 5,434 4,062 34 9,701 7,112 36 Adjusted operating income ¹ 219 7 3,087 397 27 1,366 Adjustments - - - -1,439 - - Operating income 219 7 3,087 -1,042 27 - Adjusted operating margin, % 4.0 0.2 4.1 0.4 Operating margin, % 4.0 0.2 -10.7 0.4 1 For more information on adjusted operating income, please see note 6. VOLVO GROUP — 13 — THE SECOND QUARTER 2023 ===== SIDA 14 ===== VOLVO PENTA Strong sales in a softening market • In Q2, net sales increased by 18%, while order intake decreased by 11% • Both adjusted and reported operating income amounted to SEK 804 M (699), with a margin of 14.8% (15.2) • Innovative news for net zero transformation in both marine and industrial segments In Q2, a continued weakening demand for smaller boats caused a slight decline in the marine leisure segment. In the marine commercial segment, the market for supply boats and patrol vessels continued to be strong. Demand for power generation solutions was still high but with signs of normalization as the global energy situation has stabilized. The construction market, especially in China, as well as mining and material handling declined while demand in agriculture, forestry and special vehicles remained on good levels. Compared with Q2 2022, net order intake decreased by 11% impacted by uncertainty in the market, which makes some customers therefore shorten their planning horizons. Deliveries decreased by 3%. Net sales increased by 18% to SEK 5,416 M (4,597). Adjusted for currency movements, net sales increased by 11%, of which sales of engines increased by 10% and sales of services by 13%. Both adjusted and reported operating income amounted to SEK 804 M (699), corresponding to an operating margin of 14.8% (15.2). Price realization and a favorable product mix contributed positively, while higher material costs, increased selling expenses and lower production efficiency had a negative effect. Compared with Q2 2022, the currency impact on operating income was positive in an amount of SEK 145 M. Several innovative news were launched in both marine and industrial segments. In June, media, dealers, and boat owners were invited by Groupe Beneteau and Volvo Penta to test a new hybrid electric experience onboard a Jeanneau NC 37 yacht with the aim to gather insights for data-driven continued development. The Volvo Penta Inboard Performance System (IPS) professional platform was introduced, offering a powerful and flexible solution for professional vessels and superyachts from 25 to 55+ meters. The platform is prepared for a range of energy sources. An enhanced Volvo Penta joystick, which integrates steering, throttle, and shift into a single control, was also announced. The longstanding partnership with Fantuzzi Team Material Handling was expanded into electrification of forklifts ranging from 26 to 55 tonnes. Net order intake and deliveries Second quarter Change % First six months Change %Number of Engines 2023 2022 2023 2022 Total orders 8,602 9,641 -11 22,091 23,956 -8 Of which fully electric 9 - - 30 18 67 Total deliveries 11,261 11,601 -3 23,988 23,115 4 Of which fully electric 31 3 933 51 9 467 Net sales and operating income Second quarter Change % First six months Change %SEK M 2023 2022 2023 2022 Net sales per geographical region Europe 2,871 2,416 19 5,843 4,761 23 North America 1,054 970 9 2,098 1,748 20 South America 186 172 8 349 315 11 Asia 936 791 18 2,003 1,491 34 Africa and Oceania 369 248 49 725 486 49 Total net sales 5,416 4,597 18 11,019 8,802 25 Net sales per product group Engines 3,897 3,317 17 8,150 6,375 28 Services 1,519 1,281 19 2,868 2,427 18 Total net sales 5,416 4,597 18 11,019 8,802 25 Timing of revenue recognition Revenue of vehicles and services recognized at the point of delivery 5,407 4,597 18 11,009 8,802 25 Revenue of vehicles and services recognized over contract period 9 - - 9 - - Total net sales 5,416 4,597 18 11,019 8,802 25 Adjusted operating income ¹ 804 699 15 2,075 1,468 41 Adjustments - - - - -3 - Operating income 804 699 15 2,075 1,465 42 Adjusted operating margin, % 14.8 15.2 18.8 16.7 Operating margin, % 14.8 15.2 18.8 16.6 1 For more information on adjusted operating income, please see note 6. VOLVO GROUP — 14 — THE SECOND QUARTER 2023 ===== SIDA 15 ===== FINANCIAL SERVICES Growing portfolio with good earnings • In Q2, new business volume increased 6%, adjusted for currency • Both adjusted and reported operating income amounted to SEK 916 M (792) • Stable portfolio performance In Q2 2023, Volvo Financial Services continued to grow the credit portfolio and increase earnings. Compared with Q2 2022, new business volume excluding Russia and Belarus was up by 6%, currency adjusted, primarily due to higher sales of Group products, although penetration declined in a competitive environment. Adjusted for currency, the credit portfolio grew by 19% on a year over year basis. Portfolio performance remained stable in most parts of the world due to continued high transport volumes and infrastructure activity levels. Both adjusted and reported operating income amounted to SEK 916 M (792). The increase in operating income is primarily a result of continued profitable portfolio growth, which was partially offset by spread compression. Currency movements had a negative impact of SEK 17 M compared with Q2 2022. Return on equity amounted to 10.7% (3.5). Excluding Russia and Belarus, return on equity amounted to 13.9% (17.0). Financial Services Second quarter First six months SEK M unless otherwise stated 2023 2022 2023 2022 Number of financed units, 12 months rolling 66,867 70,149 Total penetration rate, 12 months rolling, % ¹ 27 30 New retail financing volume, SEK billion 29.2 26.0 54.3 48.2 Credit portfolio net, SEK billion 251 197 Credit portfolio net excluding Russian and Belarus operations, SEK billion 252 192 Credit provision expenses 107 40 268 3,073 Credit provision expenses excluding Russian and Belarus operations 151 38 277 105 Adjusted operating income ² 916 792 1,787 1,674 Adjustments ² - - - -2,568 Operating income 916 792 1,787 -894 Credit reserves, % of credit portfolio 2.69 3.23 Credit reserves, % of credit portfolio excluding Russian and Belarus operations 1.49 1.76 Return on equity, 12 months rolling, % 10.7 3.5 Return on equity excluding Russian and Belarus operations, 12 months rolling, % ² 13.9 17.0 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 For more information on adjustments, please see note 6. VOLVO GROUP — 15 — THE SECOND QUARTER 2023 ===== SIDA 16 ===== CONSOLIDATED INCOME STATEMENT SECOND QUARTER Industrial Operations Financial Services Eliminations Volvo Group SEK M 2023 2022 2023 2022 2023 2022 2023 2022 Net sales 135,991 115,719 5,851 4,067 -1,021 -844 140,821 118,943 Cost of sales -98,894 -88,651 -4,028 -2,415 1,021 844 -101,900 -90,221 Gross income 37,097 27,068 1,823 1,653 - - 38,920 28,721 Research and development expenses -6,819 -5,454 - - - - -6,819 -5,454 Selling expenses -7,482 -6,255 -847 -722 - - -8,329 -6,977 Administrative expenses -1,854 -1,428 -4 -3 - - -1,858 -1,432 Other operating income and expenses -6,822 -674 -51 -136 - - -6,873 -809 Income/loss from investments in joint ventures and associated companies -578 -323 - - - - -578 -323 Income/loss from other investments 4 19 -5 - - - -2 19 Operating income 13,545 12,953 916 792 - - 14,462 13,745 Interest income and similar credits 700 236 - - -128 -54 572 182 Interest expenses and similar charges -390 -331 - - 128 54 -262 -277 Other financial income and expenses -362 222 - - - - -362 222 Income after financial items 13,493 13,080 916 792 - - 14,409 13,873 Income taxes -3,360 -3,181 -230 -171 - - -3,591 -3,352 Income for the period * 10,133 9,900 686 620 - - 10,819 10,520 * Attributable to: Owners of AB Volvo 10,770 10,443 Non-controlling interest 49 78 10,819 10,520 Basic earnings per share, SEK 5.30 5.14 Diluted earnings per share, SEK 5.30 5.14 Key ratios, % Gross margin 27.3 23.4 27.6 24.1 Research and development expenses as % of net sales 5.0 4.7 4.8 4.6 Selling expenses as % of net sales 5.5 5.4 5.9 5.9 Administrative expenses as % of net sales 1.4 1.2 1.3 1.2 Operating margin 10.0 11.2 10.3 11.6 CONSOLIDATED OTHER COMPREHENSIVE INCOME SECOND QUARTER SEK M 2023 2022 Income for the period 10,819 10,520 Items that will not be reclassified to income statement: Remeasurements of defined benefit pension plans 727 5,356 Remeasurements of holding of shares at fair value 9 -17 Items that may be reclassified subsequently to income statement: Exchange differences on translation of foreign operations 3,675 7,688 Share of OCI related to joint ventures and associated companies 428 773 Accumulated translation difference reversed to income - - Other comprehensive income, net of income taxes 4,838 13,800 Total comprehensive income for the period * 15,657 24,320 * Attributable to: Owners of AB Volvo 15,633 24,100 Non-controlling interest 24 220 15,657 24,320 VOLVO GROUP — 16 — THE SECOND QUARTER 2023 ===== SIDA 17 ===== CONSOLIDATED INCOME STATEMENT FIRST SIX MONTHS Industrial Operations Financial Services Eliminations Volvo Group SEK M 2023 2022 2023 2022 2023 2022 2023 2022 Net sales 263,108 218,065 11,221 7,801 -2,088 -1,606 272,241 224,259 Cost of sales -192,495 -167,979 -7,605 -4,550 2,088 1,607 -198,012 -170,921 Gross income 70,613 50,086 3,616 3,251 - 1 74,229 53,338 Research and development expenses -13,310 -10,037 - - - - -13,310 -10,037 Selling expenses -14,596 -12,379 -1,627 -1,380 - - -16,224 -13,760 Administrative expenses -3,514 -2,746 -7 -6 - - -3,521 -2,753 Other operating income and expenses -8,663 -1,428 -189 -2,759 - - -8,853 -4,187 Income/loss from investments in joint ventures and associated companies -749 -446 - - - - -749 -446 Income/loss from other investments 4 146 -5 - - - -2 146 Operating income 29,783 23,194 1,787 -894 - 1 31,571 22,301 Interest income and similar credits 1,429 375 - - -285 -68 1,144 308 Interest expenses and similar charges -861 -674 - - 285 68 -576 -606 Other financial income and expenses -932 896 - - - - -932 896 Income after financial items 29,419 23,792 1,787 -894 - 1 31,206 22,899 Income taxes -6,974 -5,424 -479 116 - - -7,453 -5,308 Income for the period * 22,445 18,368 1,308 -778 - 1 23,753 17,591 * Attributable to: Owners of AB Volvo 23,680 17,476 Non-controlling interest 73 116 23,753 17,591 Basic earnings per share, SEK 11.65 8.59 Diluted earnings per share, SEK 11.65 8.59 Key ratios, % Gross margin 26.8 23.0 27.3 23.8 Research and development expenses as % of net sales 5.1 4.6 4.9 4.5 Selling expenses as % of net sales 5.5 5.7 6.0 6.1 Administrative expenses as % of net sales 1.3 1.3 1.3 1.2 Operating margin 11.3 10.6 11.6 9.9 CONSOLIDATED OTHER COMPREHENSIVE INCOME FIRST SIX MONTHS SEK M 2023 2022 Income for the period 23,753 17,591 Items that will not be reclassified to income statement: Remeasurements of defined benefit pension plans -17 8,416 Remeasurements of holding of shares at fair value 10 -42 Items that may be reclassified subsequently to income statement: Exchange differences on translation of foreign operations 3,743 10,711 Share of OCI related to joint ventures and associated companies 544 1,159 Accumulated translation difference reversed to income - - Other comprehensive income, net of income taxes 4,281 20,244 Total comprehensive income for the period * 28,033 37,835 * Attributable to: Owners of AB Volvo 27,973 37,487 Non-controlling interest 60 348 28,033 37,835 VOLVO GROUP — 17 — THE SECOND QUARTER 2023 ===== SIDA 18 ===== CONSOLIDATED BALANCE SHEET Industrial Operations Financial Services Eliminations Volvo Group SEK M Jun 30 2023 Dec 31 2022 Jun 30 2023 Dec 31 2022 Jun 30 2023 Dec 31 2022 Jun 30 2023 Dec 31 2022 Assets Non-current assets Intangible assets 43,341 41,471 88 73 - - 43,429 41,544 Tangible assets Property, plant and equipment 67,206 63,112 59 50 - - 67,265 63,162 Assets under operating leases 35,690 34,109 22,051 21,372 -13,234 -11,963 44,508 43,518 Financial assets Investments in Joint Ventures and associated companies 21,455 21,583 - - - - 21,455 21,583 Other shares and participations 887 587 20 18 - - 906 605 Non-current customer-financing receivables 1,859 1,903 119,043 105,536 -2,208 -2,375 118,694 105,064 Net pension assets 2,676 2,722 2 5 - - 2,678 2,727 Non-current interest-bearing receivables 7,370 7,227 - 1,153 -5,050 -6,578 2,320 1,803 Other non-current receivables 10,752 10,997 285 227 -212 -202 10,825 11,022 Deferred tax assets 15,023 12,219 2,188 1,969 - - 17,211 14,189 Total non-current assets 206,258 195,931 143,737 130,404 -20,704 -21,118 329,291 305,217 Current assets Inventories 92,939 75,382 300 307 - - 93,239 75,689 Current receivables Customer-financing receivables 1,212 1,128 109,695 89,145 -1,342 -1,409 109,565 88,864 Tax assets 3,721 1,489 524 570 - - 4,246 2,059 Interest-bearing receivables 6,443 5,690 1,035 - -1,059 -27 6,419 5,663 Internal funding 11,230 7,991 - - -11,230 -7,991 - - Accounts receivable 48,308 46,672 1,801 1,548 - - 50,108 48,220 Other receivables 23,988 21,390 2,859 3,302 -5,755 -5,319 21,092 19,373 Marketable securities 97 93 - - - - 97 93 Cash and cash equivalents 54,900 76,005 10,369 9,688 -1,450 -1,806 63,819 83,886 Assets held for sale 718 - - - - - 718 - Total current assets 243,555 235,840 126,583 104,560 -20,836 -16,553 349,303 323,847 Total assets 449,814 431,771 270,319 234,964 -41,540 -37,671 678,594 629,064 Equity and liabilities Equity attributable to owners of AB Volvo 140,568 143,921 21,626 18,796 - - 162,194 162,717 Non-controlling interest 3,566 3,519 - - - - 3,565 3,519 Total equity 144,134 147,439 21,626 18,796 - - 165,759 166,236 Non-current provisions Provisions for post-employment benefits 9,236 8,690 60 55 - - 9,296 8,745 Other provisions 13,339 12,330 76 66 - - 13,415 12,396 Non-current liabilities Bond loans 105,145 102,887 - - - - 105,145 102,887 Other loans 21,945 25,446 12,804 12,325 -1,923 -2,086 32,826 35,684 Internal funding -114,902 -110,254 122,185 98,310 -7,283 11,944 - - Deferred tax liabilities 3,238 3,060 2,351 2,412 - - 5,589 5,472 Other liabilities 55,491 51,351 1,573 1,467 -8,498 -7,270 48,565 45,549 Current provisions 21,296 13,095 22 24 - - 21,318 13,119 Current liabilities Bond loans 53,471 37,794 - - - - 53,471 37,794 Other loans 33,296 24,666 12,674 11,163 -1,216 -1,247 44,754 34,583 Internal funding -73,307 -50,804 85,299 79,677 -11,992 -28,873 - - Trade payables 94,723 89,174 918 1,003 - - 95,641 90,177 Tax liabilities 7,587 6,147 735 760 - - 8,323 6,907 Other liabilities 75,122 70,749 9,997 8,906 -10,628 -10,138 74,491 69,517 Liabilities held for sale 1 - - - - - 1 - Total equity and liabilities 449,814 431,771 270,319 234,964 -41,540 -37,671 678,594 629,064 Key ratios, % Equity ratio 32.0 34.1 8.0 8.0 24.4 26.4 Equity attributable to owners of AB Volvo, per share in SEK 79.8 80.0 Return on operating capital ¹ 58.4 50.8 Return on capital employed ¹ 30.2 27.4 Return on equity ¹ 10.7 -0.3 23.2 20.7 1 12 months rolling. VOLVO GROUP — 18 — THE SECOND QUARTER 2023 ===== SIDA 19 ===== CONSOLIDATED CASH FLOW STATEMENT SECOND QUARTER Industrial Operations Financial Services Eliminations Volvo Group SEK M 2023 2022 2023 2022 2023 2022 2023 2022 Operating activities Operating income 13,545 12,953 916 792 - - 14,462 13,745 Amortization intangible assets 746 723 8 17 - - 753 740 Depreciation tangible assets 2,120 1,953 5 6 - - 2,126 1,959 Depreciation leasing vehicles 1,139 1,140 1,272 1,139 - - 2,411 2,279 Other non-cash items 6,840 288 257 182 - -107 7,097 363 Total change in working capital whereof -4,927 -3,626 -11,771 -5,188 -234 49 -16,931 -8,766 Change in accounts receivables 86 -2,412 -235 -62 - - -149 -2,474 Change in customer-financing receivables 12 -9 -12,039 -5,613 -172 -18 -12,199 -5,641 Change in inventories -5,366 -2,192 -57 -48 - - -5,423 -2,239 Change in trade payables 1,009 665 -147 91 - - 862 756 Other changes in working capital -668 322 708 443 -62 67 -22 832 Dividends received from joint ventures and associated companies 108 54 - - - - 108 54 Interest and similar items received 791 135 - - -128 97 663 232 Interest and similar items paid -409 -235 - - 114 10 -296 -225 Other financial items -130 -131 - - - - -130 -131 Income taxes paid -3,941 -2,846 -383 -864 - - -4,324 -3,710 Cash flow from operating activities 15,882 10,409 -9,695 -3,917 -248 49 5,939 6,542 Investing activities Investments in intangible assets -1,212 -1,319 -20 -9 - - -1,232 -1,328 Investments in tangible assets -2,619 -2,071 -4 -4 - - -2,623 -2,074 Investment in leasing vehicles - - -2,556 -2,137 4 - -2,552 -2,137 Disposals of in-/tangible assets and leasing vehicles 502 179 1,086 1,483 -2 -3 1,586 1,659 Operating cash flow 12,553 7,199 -11,188 -4,583 -247 46 1,118 2,662 Investments of shares -271 -99 Divestment of shares 8 - Acquired operations ¹ 358 -36 Divested operations - - Interest-bearing receivables incl. marketable securities -106 328 Cash flow after net investments 1,107 2,854 Financing activities New borrowings ² 64,843 49,957 Repayments of borrowings ² -58,976 -47,666 Dividend to owners of AB Volvo -28,468 -26,435 Dividend to non-controlling interest - - Other -31 -55 Change in cash and cash equivalents excl. translation differences -21,525 -21,345 Translation difference on cash and cash equivalents 1,166 2,225 Change in cash and cash equivalents -20,359 -19,120 Cash and cash equivalents, beginning of quarter 84,178 73,388 Cash and cash equivalents, end of quarter 63,819 54,268 1 Volvo Trucks has discontinued the acquisition of a heavy-duty truck manufacturing operation in China and recovered a previous advance payment. 2 The comparative figures are restated due to a reclassification between new borrowings and repayments of borrowings. VOLVO GROUP — 19 — THE SECOND QUARTER 2023 ===== SIDA 20 ===== CONSOLIDATED CASH FLOW STATEMENT FIRST SIX MONTHS Industrial Operations Financial Services Eliminations Volvo Group SEK M 2023 2022 2023 2022 2023 2022 2023 2022 Operating activities Operating income 29,783 23,194 1,787 -894 - 1 31,571 22,301 Amortization intangible assets 1,486 1,423 16 26 - - 1,502 1,449 Depreciation tangible assets 4,188 3,813 10 12 - - 4,199 3,825 Depreciation leasing vehicles 2,214 2,323 2,484 2,266 - - 4,698 4,589 Other non-cash items 8,700 2,117 486 3,146 -1 -123 9,184 5,140 Total change in working capital whereof -12,665 -19,516 -22,436 -9,539 -523 29 -35,624 -29,026 Change in accounts receivables 99 -3,686 -360 -68 - - -262 -3,754 Change in customer-financing receivables 71 -5 -23,141 -10,773 -369 -1 -23,440 -10,780 Change in inventories -14,862 -9,957 -3 -79 - - -14,865 -10,036 Change in trade payables 2,909 -4,763 -140 82 - - 2,769 -4,681 Other changes in working capital -882 -1,104 1,208 1,300 -154 30 173 226 Dividends received from joint ventures and associated companies 108 54 - - - - 108 54 Interest and similar items received 1,515 243 - - -285 103 1,230 346 Interest and similar items paid -1,029 -658 - - 292 20 -737 -639 Other financial items -157 -53 - - - - -157 -53 Income taxes paid -9,543 -4,672 -668 -1,141 - - -10,212 -5,813 Cash flow from operating activities 24,599 8,269 -18,321 -6,124 -517 29 5,761 2,174 Investing activities Investments in intangible assets -2,527 -2,664 -28 -12 - - -2,556 -2,676 Investments in tangible assets -5,083 -4,017 -7 -5 - - -5,089 -4,022 Investment in leasing vehicles - -1 -4,472 -4,254 32 4 -4,440 -4,250 Disposals of in-/tangible assets and leasing vehicles 567 212 2,314 2,874 -4 -6 2,877 3,080 Operating cash flow 17,556 1,799 -20,514 -7,521 -490 28 -3,447 -5,695 Investments of shares -944 -624 Divestments of shares 8 157 Acquired operations ¹ 350 -36 Divested operations 196 153 Interest-bearing receivables incl. marketable securities -182 -53 Cash flow after net investments -4,019 -6,098 Financing activities New borrowings ² 109,570 99,120 Repayments of borrowings ² -98,500 -77,459 Dividend to owners of AB Volvo -28,468 -26,435 Dividend to non-controlling interest - - Other -27 -18 Change in cash and cash equivalents excl. translation differences -21,445 -10,890 Translation difference on cash and cash equivalents 1,378 3,032 Change in cash and cash equivalents -20,067 -7,857 Cash and cash equivalents, beginning of period 83,886 62,126 Cash and cash equivalents, end of period 63,819 54,268 1 Volvo Trucks has discontinued the acquisition of a heavy-duty truck manufacturing operation in China and recovered a previous advance payment. 2 The comparative figures are restated due to a reclassification between new borrowings and repayments of borrowings. VOLVO GROUP — 20 — THE SECOND QUARTER 2023 ===== SIDA 21 ===== CONSOLIDATED NET FINANCIAL POSITION Net financial position excl. post-employment benefits and lease liabilities Industrial Operations Volvo Group SEK bn Jun 30 2023 Dec 31 2022 Jun 30 2023 Dec 31 2022 Non-current interest-bearing assets Non-current customer-financing receivables - - 118.7 105.1 Non-current interest-bearing receivables 7.4 7.2 2.3 1.8 Current interest-bearing assets Customer-financing receivables - - 109.6 88.9 Interest-bearing receivables 6.4 5.7 6.4 5.7 Internal funding 11.2 8.0 - - Marketable securities 0.1 0.1 0.1 0.1 Cash and cash equivalents 54.9 76.0 63.8 83.9 Total interest-bearing financial assets 80.0 97.0 300.9 285.4 Non-current interest-bearing liabilities Bond loans -105.1 -102.9 -105.1 -102.9 Other loans -16.7 -20.6 -27.7 -30.9 Internal funding 114.9 110.3 - - Current interest-bearing liabilities Bond loans -53.5 -37.8 -53.5 -37.8 Other loans -31.3 -22.9 -42.7 -32.8 Internal funding 73.3 50.8 - - Total interest-bearing financial liabilities excl. lease liabilities -18.4 -23.1 -229.0 -204.4 Net financial position excl. post-employment benefits and lease liabilities 61.6 73.9 71.9 81.0 Provisions for post-employment benefits and lease liabilities, net Industrial Operations Volvo Group SEK bn Jun 30 2023 Dec 31 2022 Jun 30 2023 Dec 31 2022 Non-current lease liabilities -5.2 -4.8 -5.2 -4.8 Current lease liabilities -2.0 -1.8 -2.0 -1.8 Provisions for post-employment benefits, net -6.6 -6.0 -6.6 -6.0 Provisions for post-employment benefits and lease liabilities, net -13.8 -12.6 -13.8 -12.6 Net financial position incl. post-employment benefits and lease liabilities Industrial Operations Volvo Group SEK bn Jun 30 2023 Dec 31 2022 Jun 30 2023 Dec 31 2022 Net financial position excl. post-employment benefits and lease liabilities 61.6 73.9 71.9 81.0 Provisions for post-employment benefits and lease liabilities, net -13.8 -12.6 -13.8 -12.6 Net financial position incl. post-employment benefits and lease liabilities 47.8 61.3 58.1 68.4 VOLVO GROUP — 21 — THE SECOND QUARTER 2023 ===== SIDA 22 ===== CHANGES IN NET FINANCIAL POSITION, INDUSTRIAL OPERATIONS Second quarter First six months SEK bn 2023 2023 Net financial position excl. post-employment benefits and lease liabilities at the end of previous period 77.7 73.9 Operating cash flow 12.6 17.6 Investments and divestments of shares, net -0.3 -0.9 Acquired and divested operations, net 0.4 0.5 Capital injections to/from Financial Services -0.6 -1.0 Currency effect 1.1 1.4 Dividend to owners of AB Volvo -28.5 -28.5 Dividend to non-controlling interest - - Other changes -0.7 -1.5 Net financial position excl. post-employment benefits and lease liabilities at the end of period 61.6 61.6 Provisions for post-employment benefits and lease liabilities at the end of previous period -14.2 -12.6 Pension payments, included in operating cash flow 0.4 0.5 Remeasurements of defined post-employment benefits 0.9 - Service costs and other pension costs -0.3 -0.6 Investments, remeasurements and amortizations of lease contracts 0.1 -0.3 Currency effect -0.5 -0.5 Other changes -0.1 -0.1 Provisions for post-employment benefits and lease liabilities at the end of period -13.8 -13.8 Net financial position incl. post-employment benefits and lease liabilities at the end of period 47.8 47.8 CONSOLIDATED CHANGES IN TOTAL 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 23,680 73 23,753 Other comprehensive income for the period 4,293 -13 4,281 Total comprehensive income for the period 27,973 60 28,033 Dividend -28,468 - -28,468 Changes in non-controlling interests - -13 -13 Other changes -28 - -28 Transactions with shareholders -28,496 -13 -28,509 Balance as of June 30, 2023 162,194 3,565 165,759 VOLVO GROUP — 22 — THE SECOND QUARTER 2023 ===== SIDA 23 ===== QUARTERLY FIGURES Income Statements, Volvo Group First six months First six months SEK M unless otherwise stated 2/2023 1/2023 4/2022 3/2022 2/2022 2023 2022 Net sales 140,821 131,420 134,302 114,917 118,943 272,241 224,259 Cost of sales -101,900 -96,112 -103,227 -87,594 -90,221 -198,012 -170,921 Gross income 38,920 35,308 31,076 27,324 28,721 74,229 53,338 Research and development expenses -6,819 -6,492 -6,893 -5,595 -5,454 -13,310 -10,037 Selling expenses -8,329 -7,894 -8,239 -7,046 -6,977 -16,224 -13,760 Administrative expenses -1,858 -1,663 -1,744 -1,383 -1,432 -3,521 -2,753 Other operating income and expenses -6,873 -1,980 -2,292 -896 -809 -8,853 -4,187 Income/loss from investments in Joint Ventures and associated companies -578 -171 -351 -536 -323 -749 -446 Income/loss from other investments -2 - -15 1 19 -2 146 Operating income 14,462 17,109 11,541 11,869 13,745 31,571 22,301 Interest income and similar credits 572 572 453 247 182 1,144 308 Interest expenses and similar charges -262 -314 -338 -262 -277 -576 -606 Other financial income and expenses -362 -570 -1,237 -96 222 -932 896 Income after financial items 14,409 16,797 10,420 11,758 13,873 31,206 22,899 Income taxes -3,591 -3,863 -3,730 -3,071 -3,352 -7,453 -5,308 Income for the period * 10,819 12,934 6,690 8,687 10,520 23,753 17,591 * Attributable to: Owners of AB Volvo 10,770 12,910 6,620 8,627 10,443 23,680 17,476 Non-controlling interest 49 24 70 61 78 73 116 10,819 12,934 6,690 8,687 10,520 23,753 17,591 Key ratios, Volvo Group, % Gross margin 27.6 26.9 23.1 23.8 24.1 27.3 23.8 Research and development expenses as % of net sales 4.8 4.9 5.1 4.9 4.6 4.9 4.5 Selling expenses as % of net sales 5.9 6.0 6.1 6.1 5.9 6.0 6.1 Administrative expenses as % of net sales 1.3 1.3 1.3 1.2 1.2 1.3 1.2 Operating margin 10.3 13.0 8.6 10.3 11.6 11.6 9.9 Key ratios, Industrial Operations, % Gross margin 27.3 26.4 22.5 23.0 23.4 26.8 23.0 Research and development expenses as % of net sales 5.0 5.1 5.3 5.0 4.7 5.1 4.6 Selling expenses as % of net sales 5.5 5.6 5.7 5.7 5.4 5.5 5.7 Administrative expenses as % of net sales 1.4 1.3 1.3 1.2 1.2 1.3 1.3 Operating margin 10.0 12.8 8.2 9.9 11.2 11.3 10.6 EBITDA margin, Industrial Operations Operating income Industrial Operations 13,545 16,238 10,678 10,990 12,953 29,783 23,194 Product and software development, amortization 709 696 723 712 697 1,404 1,364 Other intangible assets, amortization 38 44 33 27 26 82 59 Tangible assets, depreciation 3,259 3,143 3,784 3,090 3,093 6,402 6,136 Total depreciation and amortization 4,006 3,883 4,541 3,828 3,816 7,888 7,559 Operating income before depreciation and amortization (EBITDA) 17,551 20,121 15,219 14,818 16,769 37,671 30,753 EBITDA margin, % 12.9 15.8 11.7 13.3 14.5 14.3 14.1 Net capitalization of research and development Capitalization 1,166 1,208 1,114 972 1,296 2,374 2,620 Amortization -670 -657 -677 -673 -658 -1,327 -1,286 Net capitalization and amortization 496 551 438 300 638 1,047 1,334 Return on operating capital in Industrial Operations, % ¹ 58.4 57.0 50.8 50.1 50.6 Return on capital employed in Industrial Operations, % ¹ 30.2 30.3 27.4 27.4 26.8 1 12 months rolling. VOLVO GROUP — 23 — THE SECOND QUARTER 2023 ===== SIDA 24 ===== QUARTERLY FIGURES Net sales First six months First six months SEK M 2/2023 1/2023 4/2022 3/2022 2/2022 2023 2022 Trucks 93,748 89,556 87,303 75,078 78,603 183,304 148,155 Construction Equipment 28,999 25,109 27,596 24,238 25,814 54,108 48,427 Buses 5,434 4,267 6,654 4,817 4,062 9,701 7,112 Volvo Penta 5,416 5,603 4,849 4,451 4,597 11,019 8,802 Group Functions & Other 3,629 3,779 4,985 3,793 3,750 7,407 7,598 Eliminations -1,236 -1,195 -1,175 -950 -1,106 -2,431 -2,030 Industrial Operations 135,991 127,117 130,212 111,427 115,719 263,108 218,065 Financial Services 5,851 5,370 5,124 4,430 4,067 11,221 7,801 Eliminations -1,021 -1,067 -1,033 -940 -844 -2,088 -1,606 Volvo Group net sales 140,821 131,420 134,301 114,917 118,943 272,241 224,259 Operating income First six months First six months SEK M 2/2023 1/2023 4/2022 3/2022 2/2022 2023 2022 Trucks 8,950 12,854 7,644 7,539 9,551 21,804 16,793 Construction Equipment 5,353 4,587 3,093 3,541 3,568 9,940 6,272 Buses 219 -1,261 228 99 7 -1,042 27 Volvo Penta 804 1,271 468 593 699 2,075 1,465 Group Functions & Other -1,783 -1,225 -754 -778 -890 -3,008 -1,380 Eliminations 3 12 -1 -4 19 15 16 Industrial Operations 13,545 16,238 10,678 10,990 12,953 29,783 23,197 Financial Services 916 871 863 879 792 1,787 -894 Eliminations - - 1 1 - - 1 Volvo Group operating income 14,462 17,109 11,541 11,869 13,745 31,571 22,301 Adjusted operating income ¹ First six months First six months SEK M 2/2023 1/2023 4/2022 3/2022 2/2022 2023 2022 Trucks 14,950 12,715 8,274 7,307 9,551 27,665 18,240 Construction Equipment 5,353 4,587 3,093 3,773 3,568 9,940 6,378 Buses 219 178 228 99 7 397 27 Volvo Penta 804 1,271 468 593 699 2,075 1,468 Group Functions & Other -513 -1,225 -754 -778 -890 -1,738 -1,379 Eliminations 3 12 -1 -4 19 15 16 Industrial Operations 20,815 17,538 11,308 10,990 12,953 38,353 24,751 Financial Services 916 871 863 879 792 1,787 1,674 Eliminations - - 1 1 - - 1 Volvo Group adjusted operating income 21,732 18,409 12,171 11,869 13,745 40,141 26,426 1 For more information on adjusted operating income, please see note 6. Operating margin First six months First six months % 2/2023 1/2023 4/2022 3/2022 2/2022 2023 2022 Trucks 9.5 14.4 8.8 10.0 12.2 11.9 11.3 Construction Equipment 18.5 18.3 11.2 14.6 13.8 18.4 13.0 Buses 4.0 -29.6 3.4 2.0 0.2 -10.7 0.4 Volvo Penta 14.8 22.7 9.7 13.3 15.2 18.8 16.6 Industrial Operations 10.0 12.8 8.2 9.9 11.2 11.3 10.6 Volvo Group operating margin 10.3 13.0 8.6 10.3 11.6 11.6 9.9 Adjusted operating margin First six months First six months % 2/2023 1/2023 4/2022 3/2022 2/2022 2023 2022 Trucks 15.9 14.2 9.5 9.7 12.2 15.1 12.3 Construction Equipment 18.5 18.3 11.2 15.6 13.8 18.4 13.2 Buses 4.0 4.2 3.4 2.0 0.2 4.1 0.4 Volvo Penta 14.8 22.7 9.7 13.3 15.2 18.8 16.7 Industrial Operations 15.3 13.8 8.7 9.9 11.2 14.6 11.4 Volvo Group adjusted operating margin 15.4 14.0 9.1 10.3 11.6 14.7 11.8 VOLVO GROUP — 24 — THE SECOND QUARTER 2023 ===== SIDA 25 ===== QUARTERLY FIGURES Share data First six months First six months 2/2023 1/2023 4/2022 3/2022 2/2022 2023 2022 Earnings per share, SEK ¹ 5.30 6.35 3.26 4.24 5.14 11.65 8.59 Earnings per share, SEK ¹, 12 months rolling 19.15 18.98 16.09 16.77 15.99 20.24 8.59 Diluted earnings per share, SEK 5.30 6.35 3.26 4.24 5.14 11.65 8.59 Number of outstanding shares in millions 2,033 2,033 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 2,033 2,033 Average number of shares after dilution in millions 2,033 2,033 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 — 25 — THE SECOND QUARTER 2023 ===== SIDA 26 ===== 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 June 30, 2023, amounted to SEK 17.8 billion, a decrease of SEK 0.4 billion compared to December 31, 2022 . The gross exposure of SEK 17.8 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 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. VOLVO GROUP — 26 — THE SECOND QUARTER 2023 ===== SIDA 27 ===== NOTE 3 | ACQUISITIONS AND DIVESTMENTS The Volvo Group has not made any acquisitions or divestments of operations during Q2 that have had a material impact on the financial statements. Assets and liabilities held for sale amounted to net SEK 716 M (-) as of June 30 2023 , mainly related to planned property divestments and divestment of shares in associated companies. _________________________________________________________________ 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 7.0 billion (6.3) and derivatives with negative fair values amounted to SEK 10.6 billion (9.0) as of June 30, 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 229.4 billion ( 205.0) in reported carrying value with a fair value of SEK 225.4 billion (201.3). In the Volvo Group consolidated financial position, financial liabilities include loan-related derivatives with negative fair values amounting to SEK 6.8 billion (5.9). Currency effect on operating income, Volvo Group Compared to second quarter 2022 SEK M Second quarter 2023 Second quarter 2022 Change Net flow in foreign currency 540 Realized and unrealized gains and losses on derivatives -3 -1 -3 Unrealized gains and losses on receivables and liabilities in foreign currency -64 570 -633 Translation effect on operating income in foreign subsidiaries 913 Total currency effect on operating income, Volvo Group 817 Applicable currency rates Quarterly exchange rates Close rates Second quarter 2023 Second quarter 2022 Jun 30 Jun 30 2023 2022 BRL 2.13 2.00 2.23 1.92 CNY 1.50 1.49 1.50 1.53 EUR 11.46 10.47 11.79 10.68 GBP 13.18 12.35 13.72 12.41 KRW 0.0080 0.0078 0.0082 0.0078 USD 10.52 9.84 10.85 10.22 __________________________________________________________________________________________________ NOTE 5 | TRANSACTIONS WITH RELATED PARTIES Sales of goods, services and other income Purchases of goods, services and other expenses SEK M Second quarter 2023 Second quarter 2022 Second quarter 2023 Second quarter 2022 Associated companies 899 329 57 32 Joint ventures 1,264 20 400 350 Receivables Payables Jun 30 Dec 31 Jun 30 Dec 31 SEK M 2023 2022 2023 2022 Associated companies 239 113 67 63 Joint ventures 432 472 93 122 VOLVO GROUP — 27 — THE SECOND QUARTER 2023 ===== SIDA 28 ===== NOTE 6 | RECONCILIATION OF ADJUSTED OPERATING INCOME Adjusted operating income First six months First six months SEK M 2/2023 1/2023 4/2022 3/2022 2/2022 2023 2022 Trucks 14,950 12,715 8,274 7,307 9,551 27,665 18,240 Construction Equipment 5,353 4,587 3,093 3,773 3,568 9,940 6,378 Buses 219 178 228 99 7 397 27 Volvo Penta 804 1,271 468 593 699 2,075 1,468 Group Functions & Other -513 -1,225 -754 -778 -890 -1,738 -1,379 Eliminations 3 12 -1 -4 19 15 16 Industrial Operations 20,815 17,538 11,308 10,990 12,953 38,353 24,751 Financial Services 916 871 863 879 792 1,787 1,674 Eliminations - - 1 1 - - 1 Volvo Group adjusted operating income 21,732 18,409 12,171 11,869 13,745 40,141 26,426 Adjustments First six months First six months SEK M 2/2023 1/2023 4/2022 3/2022 2/2022 2023 2022 Adjustment items (segment) Restructuring charges relating to the US bus production for Nova Bus (Group Functions & Other) -1,270 - - - - -1,270 - Restructuring charges relating to the European bus operation (Buses) - -1,300 - - - -1,300 - Previously announced provision for premature degradation of an emission control component Trucks - 139 - - - 139 - Buses - -139 - - - -139 - Costs relating to claims arising from the European Commissionʼs 2016 antitrust settlement decision (Trucks) -6,000 - -630 - - -6,000 - 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 -6,000 139 -630 232 - -5,861 -1,447 Construction Equipment - - - -232 - - -106 Buses - -1,439 - - - -1,439 - Volvo Penta - - - - - - -3 Group Functions & Other -1,270 - - - - -1,270 -1 Industrial Operations -7,270 -1,300 -630 - - -8,570 -1,557 Financial Services - - - - - - -2,568 Eliminations - - - - - - - Volvo Group adjustments -7,270 -1,300 -630 - - -8,570 -4,125 Operating income First six months First six months SEK M 2/2023 1/2023 4/2022 3/2022 2/2022 2023 2022 Trucks 8,950 12,854 7,644 7,539 9,551 21,804 16,793 Construction Equipment 5,353 4,587 3,093 3,541 3,568 9,940 6,272 Buses 219 -1,261 228 99 7 -1,042 27 Volvo Penta 804 1,271 468 593 699 2,075 1,465 Group Functions & Other -1,783 -1,225 -754 -778 -890 -3,008 -1,380 Eliminations 3 12 -1 -4 19 15 16 Industrial Operations 13,545 16,238 10,678 10,990 12,953 29,783 23,194 Financial Services 916 871 863 879 792 1,787 -894 Eliminations - - 1 1 - - 1 Volvo Group operating income 14,462 17,109 11,541 11,869 13,745 31,571 22,301 For reconciliation of other key ratios, see www.volvogroup.com VOLVO GROUP — 28 — THE SECOND QUARTER 2023 ===== SIDA 29 ===== PARENT COMPANY Income from investments in group companies for the second quarter includes dividends amounting to SEK 5,319 M (64). Impairment of shares and participations in group companies was made by SEK 1,380 M (-). Income from investments in joint ventures and associated companies includes dividends amounting to SEK 76 M (34). Financial net debt amounted to SEK 30,423 M (22,213) at the end of the second quarter . Income statement Second quarter First six months SEK M 2023 2022 2023 2022 Net sales¹ 84 66 154 131 Cost of sales¹ -84 -66 -154 -131 Gross income - - - - Operating expenses¹ -467 -303 -835 -606 Operating income (loss) -467 -303 -835 -606 Income from investments in group companies 3,940 64 3,989 3,878 Income from investments in joint ventures and associated companies 76 34 76 34 Income from investments, other shares and participations - - - - Interest income and expenses -307 -93 -467 -164 Other financial income and expenses -75 177 -129 199 Income after financial items 3,167 -121 2,634 3,341 Appropriations - - - - Income taxes 2,532 37 2,623 97 Income for the period 5,699 -84 5,257 3,438 1 Of net sales in the second quarter SEK 81 M (62) pertained to group companies, while purchases from group companies amounted to SEK 106 M (91). Other comprehensive income Income for the period 5,699 -84 5,257 3,438 Other comprehensive income, net of income taxes - - - - Total comprehensive income for the period 5,699 -84 5,257 3,438 VOLVO GROUP — 29 — THE SECOND QUARTER 2023 ===== SIDA 30 ===== Balance sheet SEK M Jun 30 2023 Dec 31 2022 Assets Non-current assets Tangible assets 7 7 Financial assets Shares and participations in group companies 69,608 70,987 Investments in joint ventures and associated companies 8,946 8,946 Other shares and participations 2 2 Other long-term receivables 478 593 Deferred tax assets 568 217 Total non-current assets 79,609 80,752 Current assets Current receivables from group companies 3,572 29,316 Other current receivables 330 251 Tax assets 2,009 - Total current assets 5,911 29,567 Total assets 85,520 110,319 Equity and liabilities Equity Restricted equity 9,899 9,899 Unrestricted equity 36,293 59,504 Total Equity 46,192 69,403 Untaxed reserves 7,500 7,500 Provisions 257 259 Non-current liabilities¹ 610 405 Current liabilities² 30,961 32,752 Total equity and liabilities 85,520 110,319 1 Of which SEK 605 M (400) pertains to group companies. 2 Of which SEK 30,246, 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 second quarter 2023 that are expected to have a material effect on the Volvo Group. VOLVO GROUP — 30 — THE SECOND QUARTER 2023 ===== SIDA 31 ===== The Board of Directors and the President certify that the half-yearly financial report gives a fair view of the performance of the business, position and profit or loss of the Company and the Group, and describes the principal risks and uncertainties that the Company and the companies in the Group face. Gothenburg, July 19, 2023 AB Volvo (publ) Carl-Henric Svanberg Chairman of the Board Matti Alahuhta Bo Annvik Jan Carlson Eric Elzvik Board member Board member Board member Board member Martha Finn Brooks Kurt Jofs Martin Lundstedt Kathryn V. Marinello Board member Board member President, CEO Board member and Board member Martina Merz Helena Stjernholm Board member Board member Lars Ask Mari Larsson Urban Spännar Board member Board member Board member VOLVO GROUP — 31 — THE SECOND QUARTER 2023 ===== SIDA 32 ===== AUDITORʼS REVIEW REPORT AB Volvo (publ) org. nr 556012-5790 Introduction We have reviewed the condensed interim financial information (interim report) of AB Volvo (publ) as of June 30, 2023 and the six-month period then ended. The Board of Directors and the President are responsible for the preparation and presentation of the interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review. Scope of Review We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with ISA and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material respects, prepared for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act. Gothenburg, July 19, 2023 Deloitte AB Signature on Swedish original Jan Nilsson Authorized Public Accountant This is a translation of the Swedish language original. In the event of any differences between this translation and the Swedish language original, the latter shall prevail. VOLVO GROUP — 32 — THE SECOND QUARTER 2023 ===== SIDA 33 ===== NET ORDER INTAKE Net order intake of trucks Second quarter Change % First six months Change %Number of trucks 2023 2022 2023 2022 Net order intake Europe 24,840 26,595 -7 56,130 51,579 9 Heavy- and medium-duty 18,476 22,335 -17 44,531 41,966 6 Light-duty 6,364 4,260 49 11,599 9,613 21 North America 8,708 9,731 -11 23,867 15,748 52 South America 6,302 9,336 -32 11,514 16,690 -31 Asia 5,236 4,883 7 10,572 9,649 10 Africa and Oceania 3,222 2,843 13 6,265 5,316 18 Total order intake 48,308 53,388 -10 108,348 98,982 9 Heavy-duty (>16 tons) 38,397 45,993 -17 88,298 82,854 7 Medium-duty (7-16 tons) 3,497 3,054 15 8,328 6,326 32 Light-duty (<7 tons) 6,414 4,341 48 11,722 9,802 20 Total order intake 48,308 53,388 -10 108,348 98,982 9 Net order intake of trucks by brand Volvo Europe 12,862 12,621 2 30,229 23,558 28 North America 3,858 5,723 -33 11,412 9,943 15 South America 6,228 9,066 -31 11,152 16,086 -31 Asia 4,278 3,707 15 8,510 7,064 20 Africa and Oceania 2,371 2,217 7 4,250 3,840 11 Total Volvo 29,597 33,334 -11 65,553 60,491 8 Heavy-duty (>16 tons) 28,775 32,505 -11 63,517 58,321 9 Medium-duty (7-16 tons) 822 829 -1 2,036 2,170 -6 Total Volvo 29,597 33,334 -11 65,553 60,491 8 Renault Trucks Europe 11,978 13,974 -14 25,901 28,021 -8 Heavy- and medium-duty 5,614 9,714 -42 14,302 18,408 -22 Light-duty 6,364 4,260 49 11,599 9,613 21 North America 13 32 -59 63 97 -35 South America 25 176 -86 152 292 -48 Asia 958 1,176 -19 2,062 2,585 -20 Africa and Oceania 352 218 61 889 722 23 Total Renault Trucks 13,326 15,576 -14 29,067 31,717 -8 Heavy-duty (>16 tons) 5,615 9,443 -41 14,143 18,508 -24 Medium-duty (7-16 tons) 1,297 1,792 -28 3,202 3,407 -6 Light-duty (<7 tons) 6,414 4,341 48 11,722 9,802 20 Total Renault Trucks 13,326 15,576 -14 29,067 31,717 -8 Mack North America 4,837 3,976 22 12,392 5,708 117 South America 49 64 -23 198 236 -16 Africa and Oceania 218 53 311 447 180 148 Total Mack 5,104 4,093 25 13,037 6,124 113 Heavy-duty (>16 tons) 3,775 3,727 1 10,043 5,543 81 Medium-duty (7-16 tons) 1,329 366 263 2,994 581 415 Total Mack 5,104 4,093 25 13,037 6,124 113 VOLVO GROUP — 33 — THE SECOND QUARTER 2023 ===== SIDA 34 ===== DELIVERIES Deliveries of trucks Second quarter Change % First six months Change %Number of trucks 2023 2022 2023 2022 Deliveries Europe 33,169 29,809 11 66,019 58,898 12 Heavy- and medium-duty 24,862 24,944 - 51,564 49,220 5 Light-duty 8,307 4,865 71 14,455 9,678 49 North America 15,960 15,073 6 31,971 28,981 10 South America 5,385 8,380 -36 9,860 14,625 -33 Asia 5,902 4,718 25 11,644 8,415 38 Africa and Oceania 3,426 2,853 20 5,879 5,502 7 Total deliveries 63,842 60,833 5 125,373 116,421 8 Heavy-duty (>16 tons) 50,355 52,066 -3 101,039 98,955 2 Medium-duty (7-16 tons) 5,070 3,847 32 9,674 7,665 26 Light-duty (<7 tons) 8,417 4,920 71 14,660 9,801 50 Total deliveries 63,842 60,833 5 125,373 116,421 8 Deliveries of trucks by brand Volvo Europe 16,191 16,451 -2 33,380 32,089 4 North America 8,337 8,226 1 16,643 15,866 5 South America 5,163 7,993 -35 9,460 14,023 -33 Asia 4,643 3,713 25 9,092 6,626 37 Africa and Oceania 2,121 1,873 13 3,669 3,513 4 Total Volvo 36,455 38,256 -5 72,244 72,117 - Heavy-duty (>16 tons) 35,190 37,311 -6 69,895 70,361 -1 Medium-duty (7-16 tons) 1,265 945 34 2,349 1,756 34 Total Volvo 36,455 38,256 -5 72,244 72,117 - Renault Trucks Europe 16,978 13,358 27 32,639 26,809 22 Heavy- and medium-duty 8,671 8,493 2 18,184 17,131 6 Light-duty 8,307 4,865 71 14,455 9,678 49 North America 68 24 183 118 47 151 South America 146 208 -30 227 336 -32 Asia 1,259 1,005 25 2,552 1,789 43 Africa and Oceania 713 435 64 1,124 789 42 Total Renault Trucks 19,164 15,030 28 36,660 29,770 23 Heavy-duty (>16 tons) 8,836 8,582 3 18,181 16,834 8 Medium-duty (7-16 tons) 1,911 1,528 25 3,819 3,135 22 Light-duty (<7 tons) 8,417 4,920 71 14,660 9,801 50 Total Renault Trucks 19,164 15,030 28 36,660 29,770 23 Mack North America 7,555 6,823 11 15,210 13,068 16 South America 66 155 -57 149 233 -36 Africa and Oceania 339 174 95 559 369 51 Total Mack 7,960 7,152 11 15,918 13,670 16 Heavy-duty (>16 tons) 6,122 5,902 4 12,510 11,113 13 Medium-duty (7-16 tons) 1,838 1,250 47 3,408 2,557 33 Total Mack 7,960 7,152 11 15,918 13,670 16 VOLVO GROUP — 34 — THE SECOND QUARTER 2023 ===== SIDA 35 ===== 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 CEST on July 19, 2023. 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 — 35 — THE SECOND QUARTER 2023 ===== SIDA 36 ===== Financial calendar Report on the third quarter 2023 October 18, 2023 Report on the fourth quarter and full year 2023 January 26, 2024 Report on the first quarter 2024 April 17, 2024 Report on the second quarter 2024 July 18, 2024 Report on the third quarter 2024 October 18, 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 Aktiebolaget Volvo (publ) 556012–5790 Investor Relations, VGHQ SE-405 08 Göteborg, Sweden Tel +46 31 66 00 00 www.volvogroup.com VOLVO GROUP — 36 — THE SECOND QUARTER 2023