Kvartalsrapport Q1 2023

Automatiskt nyckeltalsindex

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

VOLVO CAR GROUP
INTERIM REPORT FIRST QUARTER 2023
For life. To give people 
freedom to move in a personal, 
sustainable and safe way.

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

VOLVO CAR GROUP
•   Retail sales increased by 10% and reached 162.9 
(148.3) thousand cars. 
•  Revenue increased by 29% to SEK 95.7 (74.3) bn, 
driven by higher volume, strong mix and pricing, foreign 
exchange and contract manufacturing.
•  Operating income (EBIT) was SEK 5.1 (6.0) bn. Oper -
ating income excluding share of income in JVs and 
associates was SEK 6.3 (5.9) bn, positively affected 
by volume, foreign exchange, mix and price realisation.  
•  EBIT margin was 5.3 (8.1)%. EBIT margin, excluding 
share of income in joint ventures and associates, was 
6.6 (7.9)%. 
•  Basic earnings per share was SEK 1.21  (1.29). 
•  Operating and investing cash flow was SEK –17.5 
(–12.2) bn, affected by structural cash transactions.
Volvo Cars started 2023 on a stable note and delivered improved earnings
JANUARY–MARCH 2023
•  Volvo Cars raised SEK 1.5 bn through inaugural green 
bonds in the Swedish market. 
•  Volvo Cars announced its plans to open new Tech Hub 
in Krakow, Poland.
EVENTS AFTER THE PERIOD
•  Annual General Meeting was held on 3 April, at which 
meeting Thomas Johnstone decided to step down from 
the board and Ruby Lu was elected as a new board 
member.
3 Months 12 Months
SEKbn unless otherwise stated
Jan–Mar 
2023
Jan–Mar 
2022 ∆% LTM
Full year 
2022
Retail sales, k units 1) 162.9 148.3 10 629.8 615.1
Revenue 95.7 74.3 29 351.6 330.1
Research and development expenses 2) –2.9 –3.2 –11 –11.2 –11.5
Operating income (EBIT) 3) 5.1 6.0 –16 21.4 22.3
EBIT excl. share of income in JVs and associates 3) 6.3 5.9 7 18.3 17.9
Net income2) 4.0 4.5 –12 16.5 17.0
Basic earnings per share, SEK 2) 1.21 1.29 –6 5.15 5.23
EBITDA 3) 9.2 10.0 –8 37.6 38.4
Cash flow from operating activities 2) –2.4 –4.2 –44 35.4 33.6
Cash flow from investing activities 2) –15.1 –8.0 88 –46.6 –39.7
Net cash3) 20.7 33.1 –37 20.7 38.1
Gross margin, % 3) 17.9 21.2 –16 17.6 18.3
EBIT margin, % 3) 5.3 8.1 –34 6.1 6.8
EBIT margin excl. share of income in JVs and associates, %3) 6.6 7.9 –17 5.2 5.4
EBITDA margin, % 3) 9.6 13.5 –29 10.7 11.6
Return on invested capital, ROIC, % 3) N/A N/A N/A 14.1 16.7
1)  Non-financial operating metric.
2)  IFRS measure. 
3)  Non-IFRS measure (alternative performance measure), see Alternative performance measures on page 27.
VOLVO CAR GROUP
2 OF 30
INTERIM REPORT FIRST QUARTER 2023

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

VOLVO CAR GROUP
Dear shareholders and readers within Volvo Cars community,
We have started 2023 on a stable note, continuing to deliver 
on our ongoing transformation with increased revenues and 
core profits in the first quarter. While macroeconomic uncer -
tainties and pressures are gathering momentum and have 
become the inescapable business realities of today, we 
remain resolute on our journey towards becoming a fully 
electric carmaker by the end of the decade. Our execution 
engine is tuning up and we will continue to focus on our 
transformation priorities. 
Let me start with our performance in fully electric car sales 
during the quarter. We once again demonstrated that we are 
among the fastest transformers in the industry, while also 
maintaining price discipline. In the first three months, nearly 
one in every five cars we sold was fully electric, translating to 
a 157 per cent growth in sales compared to the same period 
last year. This was achieved with only two fully electric mod -
els – the XC40 and the C40. As we launch more fully electric 
cars in coming years, at least one per year up until mid-dec -
ade, built on next-generation electrical architectures and core 
computing technology, this will put us firmly on course 
towards our ambitious transformation goals. 
Performing and transforming 
“We strive to be a leader 
in next-generation 
mobility”
The wider industry is also rapidly transforming towards 
electrification, a trend we have seen in recent years. At the 
start of 2023, electric car sales for the industry grew 25 per 
cent, while sales of cars powered by internal combustion 
engines declined 17 per cent, underlining the centre of auto -
motive gravity is fast shifting towards electric cars. As we are 
committed to full electrification of all our cars and across all 
regions around the world, we sit at the epicenter of this seis-
mic transformation.  
Speaking of our ongoing transformation, last year we took 
a decisive step into the future with the global launch of our 
new born-electric flagship SUV, the Volvo EX90. And I feel 
proud that the customer response to that car has surpassed 
our boldest and most ambitious internal projections. As a 
result, we have now had to close the order book for the time 
being because the model year is sold out, but we will re-open 
again soon. This tremendous reception to the Volvo EX90 
gives us renewed confidence in our strategy and roadmap for 
the future. 
To deliver on our ambition to become a leader in new tech-
nology, we are also setting up Tech Hubs in strategically 
important locations and recruiting the right people with the 
right competencies. As part of that strategy, we recently 
announced our fourth Tech Hub in Krakow, Poland, to com-
plement our existing ones in Stockholm and Lund in Sweden, 
and Bangalore, India. Together with our larger engineering 
centres in Gothenburg and Shanghai, we are creating a global 
powerhouse of next generation technology, with in-house 
software development capabilities as our next generation 
cars become more hardware designed and software defined. 
Q1 Operating and financial performance 
During the quarter we also improved our earnings. 
Our revenues for the first three months grew 29 per cent 
compared to the same period last year to SEK 96 bn. The 
increase came on the back of a double-digit growth in retail 
sales for the quarter versus the corresponding period in 
2022.  
VOLVO CAR GROUP
3 OF 30
INTERIM REPORT FIRST QUARTER 2023

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

VOLVO CAR GROUP
Our EBIT, excluding joint ventures and associates, 
increased 7 per cent in the first quarter, compared to the cor-
responding period last year, to reach SEK 6.3 bn, translating 
into an EBIT margin of 6.6 per cent. The increase in EBIT 
was delivered despite raw material prices remaining at ele -
vated levels. This performance was the result of higher vol -
umes sold during the period, increased price realisation per 
car, a favourable geographical mix and the effects of pricing 
actions initiated last year especially in Europe. I am also 
pleased that our company-wide resource optimisation and 
efficiency initiative is gathering momentum through direct 
savings which helped our underlying profitability. We will 
continue to focus on this. 
Our efforts to reduce our CO 2 footprint per car are also pro-
gressing according to plan. In the first quarter, CO2 emissions 
were 20 per cent lower compared with our 2018 benchmark, 
supporting our mid-decade ambitions of 40 per cent CO 2 
reduction per car.
2023 – looking ahead to the rest of the year
2023 will be another crucial year in our transformation. In a 
few months, we will reveal a new fully electric small SUV to 
the world, which will take us into a new demographic and 
with a competitive price point. This new car will build on the 
strong customer response to the Volvo EX90. With these 
two new state-of-the-art SUVs, we will cover both the top 
end of the premium electric market and the entry level pre -
mium segment. Together, they will complement our existing 
line-up of fully electric XC40 and C40. This sets us up for a 
future with strong growth and improved profitability on our 
fully electric cars. 
We are also gearing up to transform the operations in the 
United Kingdom, our third largest market by retail sales, from 
a traditional wholesale business to a directly consumer model 
by creating a truly omnichannel experience for our customers. 
With volvocars.com as the base and main sales channel, we 
will remove administrative burdens and increase overall effi -
ciency in the system, improving customer experience and at 
lower cost for us over time. The lessons from the UK transfor -
mation will be crucial as we plan for more markets to become 
direct consumer facing.  
But while our direction of travel remains clear, we are also 
navigating an increasingly turbulent external environment. 
Demand for our cars is healthy at a global level with some 
regional variances and fluctuations. Overall, however, order 
book size is stable and at historically strong levels. But, the 
external environment remains challenging and volatile, so we 
are monitoring demand and pricing trends closely.  
As we have been among the pioneers in the industry-wide 
transformation towards electrification and core computing 
technology, we have been hit more adversely as costs for lith-
ium have skyrocketed 800 per cent over the last two years. 
But we are now beginning to see lithium prices declining, 
which should benefit our underlying profitability on electric 
cars. While the full effect of this price decline will not be fully 
felt until a few months from now due to time lag and price 
indexation, the trend is positive.  
Our manufacturing has also continued to improve from the 
fourth quarter onwards last year. In the first three months of 
2023, we produced 9 per cent more cars, including Polestar 
cars, than in the corresponding quarter last year. Though 
some shortages continue and will still affect production dur -
ing the second quarter of this year, we are cautiously optimis-
tic about 2023. If there are no unexpected supply chain dis-
ruptions, we expect a solid double-digit growth in retail sales 
for the year and a continued growth of fully electric car sales 
taking their share even higher than last year’s share of 11 per 
cent. 
The macroeconomic backdrop remains challenging. But we 
are confident that we can navigate these headwinds and 
deliver on our transformation. Our efforts on cost efficiencies 
and resource optimization have started to materialize in cer-
tain areas, including a greater focus on the competencies and 
cost structures we will need for the future and our transfor -
mation. Given the long-term nature of the headwinds our 
industry is likely to face, we are also evaluating the need for 
further targeted cost actions that are sustainable over time 
and that will contribute to our growth. We remain steadfast 
on our efficiency and productivity initiative, aiming to rein -
force a cost-conscious mindset throughout the company and 
our supplier base.
To sum up, our transformation engine is gathering speed as 
we strive to be a leader in next-generation mobility. The Volvo 
car of the future will be fully electric, safer than ever, increas-
ingly sold online, powered by cutting-edge core computers, 
running on in-house developed software, and will improve 
over time thanks to regular over-the-air updates. With our 
first-quarter performance we’ve laid a strong foundation for 
the rest of 2023, but we remain ever vigilant amidst the con-
tinued turbulence around the world. Our focus is on execu-
tion.
Thank you for your continued support.
Jim Rowan
Chief Executive, Volvo Cars 
VOLVO CAR GROUP
4 OF 30
INTERIM REPORT FIRST QUARTER 2023

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

VOLVO CAR GROUP
Fastest transformer strategy progress
Our industry is changing, and we strive to be a leader in that change. Our fastest transformer strategy outlines how we plan to 
deliver on our mid-decade ambitions. The purpose of this section is to keep our stakeholders updated on this progress.
FAST GROWING PREMIUM BRAND
Market position
Battery electric cars increased to 18% total share from 8% 
in the same quarter last year. In the meantime, Recharge 
sales increase to 41% total share from 34%. Overall demand 
for our cars remains healthy at a global level but we are see -
ing regional variances. On an aggregated level, the absolute 
order intake in Europe has however been stable for the last 
quarters.
Brazil, Uruguay, Thailand and Indonesia all had 100% 
recharge sales in Q1, closely followed by Norway 99%, 
 Denmark 93%, Ireland 91%, France 87%, the Netherlands 
86% and Finland 85%.
Spaltbredd 82mm
Q1 Q2 Q1 Q4Q3Q2Q4Q3
2021 2022
Q1
2023
Volvo Cars Recharge sales as share of total sales
%
PHEV BEV
0
5
15
10
20
25
45
40
35
30
Volvo Cars’ market share per  
propulsion type 1) 2)
Jan-Feb 
2023
Jan-Feb 
2022
BEV 1.56% 0.83%
PHEV 5.91% 7. 87%
ICE (incl. mild hybrids) 0.75% 0.70%
Total 1.06% 0.93%
Total industry volume share and
growth by propulsion type 1) 2)
Jan–Feb 
2023
Growth 
YoY
BEV 11.0% 24.8%
PHEV 4.2% 24.4%
ICE (incl. mild hybrids) 84.8% –16.8%
Total 100% –12.3%
1)  Volvo Cars is and will continue to be positioned in the premium seg -
ment of the automotive market. As the market is transforming with 
electri  fication and digitalisation the definition of premium is being 
redefined. To simplify and to avoid the risk of excluding important 
parts of the market, we will report our market share in relation to the 
total market.
2)  Source: Includes content supplied by IHS Markit Automotive; Copy -
right© MarketInsight, April 2023. All rights reserved. 
Sustainability
Volvo Cars has an ambition to reduce the carbon footprint 
per average vehicle by 40% by 2025, against 2018 levels, 
and we continue to make progress further outlined in our 
Annual and Sustainability report. For the full year of 2022, 
we reached a reduction of 15%. In the first quarter of 2023, 
we reached a reduction of 20%. 
We are very proud that we have received top ESG-ratings 
for our sustainability efforts. This is the second year we make 
it into the CDP Climate Change A-List and the CSA assess -
ment places us among the top 5% in the industry. 
Volvo Cars has successfully placed an inaugural green 
bond transaction in the SEK market, raising a total of SEK 
1.5 bn, earmarked to becoming fully electric car maker by 
2030, climate neutral by 2040 and a circular business.
Volvo Cars has also joined forces with partners in the 
Orcelle-project, helping to develop the world’s first 
wind-powered oceanic car-carrier vessel. Commencing to 
sail in late 2026 or early 2027, it will harness wind for sus -
tainable car shipping.
Finally, Volvo Cars’ CEO, Jim Rowan expressed concerns 
after a few EU Member States attempting to derail the pro -
cess of banning sales of new fossil fuel vehicles. He called on 
EU Governments to honor the historic EU agreement 
reached last year, which was rightly heralded as the EU 
showing global climate leadership at a critical time for our 
planet and humanity.  
MID-DECADE AMBITIONS
8–10%
EBI T 
MARGIN
40% 
CO2 REDUCTION
PER CAR
50%
FULLY  
ELEC T RIC  
SALES
1.2M 
UNI T S 
50%
ONLINE 
SALES
VOLVO CAR GROUP
5 OF 30
INTERIM REPORT FIRST QUARTER 2023

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

VOLVO CAR GROUP
CO2-reduction per car
Total CO2-emissions 
per car (tonnes) Reduction (%)
2018 54.9 —
2023 Jan–Mar1) 43.7 –20.4
2025 ambition 32.9 –40
2040 ambition 0 Climate neutral
 
1)   The Q1 2023 greenhouse gas emissions (GHG) results did not include 
production and distribution of fuel and electricity.
FULL ELECTRIFICATION
BEV/Non-BEV profitability and share of investments 
Compared to the first quarter of 2022 the fully electric new 
car gross income per unit has been affected by higher raw 
material costs, spot purchasing of semiconductors as well as 
higher logistics costs.
As has been communicated earlier the high price for lithium 
has substantially increased the production costs for BEVs and 
although the price for lithum has started to come down it will 
not affect costs until later this year. However a better market 
mix and part flow through of 2022 European price increases 
contributed to a higher gross margin, than was seen in Q4.
Jan–Mar  2023 Full year 2022
BEV
Non-
BEV BEV
Non-
BEV
Retail sales (k units) 30 133 67 548
Revenue per Car 
(SEKk/unit) 1) 456 447 449 415
Gross Income per Car 
(SEKk/unit) 1) 34 104 37 89
Gross Margin (%) 7 23 8 21
BEV
Non-
BEV
Com-
mon BEV
Non-
BEV
Com-
mon
Share of Investing 
Cash Flow (%)2) 75 6 19 68 6 26
 
1)  Revenue and gross income refer to new cars including emissions cred -
its, excluding after sales,  subscription and foreign exchange hedge 
effect. Labour and overhead are set to standard cost and fixed manu -
facturing costs are distributed by volume.
2)  Investments refer to plant, property, equipment and capitalised prod -
uct development only. Common investments are not defined as either 
BEV or non-BEV investments and consist of manufacturing efficiency, 
replacements & maintenance and infotainment development.
A LEADER IN NEW TECHNOLOGY
Google HD Map
In our upcoming Volvo EX90, lidar, cameras, and radars 
come together to understand your car’s surroundings and 
help to keep you safe. In the Volvo EX90 we are introducing 
Google HD maps to further improve our assisted driving 
technologies and eventually introduce autonomous driving. 
This road information combined with the data from the Volvo 
EX90’s lidar and other sensors will be processed through the 
car’s core computer system powered by NVIDIA DRIVE AI 
Platforms Xavier and Orin. By combining data from Google’s 
HD map with information collected from our exterior sen -
sors, including a lidar and software developed by our safety 
software subsidiary Zenseact, we aim to create a more pre -
dictable, safe, and comfortable drive. 
Krakow Tech Hub
On 24 March we announced our new Tech hub in Krakow that 
we intend to have operational by the end of this year, with 
around 120 bright engineering minds in place. By mid-decade, 
we aim to employ between 500 and 600 people. The hub will 
carry full responsibility for developing complete key features 
on our new cars. The engineers in Krakow will help boost our 
innovation speed by developing software for several key areas 
– from core safety technology based on our deep understand-
ing of what causes accidents, to our perception and driver 
assistance algorithms and software for autonomous driving.
DIRECT CONSUMER RELATIONS
Our strategy is to establish direct relationships with our cus-
tomers, something we do by using an omni channel approach 
with online being an important route. The online/direct busi-
ness model is available in 10 markets* and is defined as a car 
ordered online with transparent online price and direct invoice 
where available. For US and Canada, the transaction is exe-
cuted by our retail partners as per our agreement with retailers 
and in line with franchise laws. For Q1 2023, the share of 
online/direct business in the markets where the offer is availa-
ble amounted to 8 (10)% of total sales in those markets and 
expressed as share of total global sales, it was 5 (6)%. Going 
forward share of total global sales will be the reported metrics. 
Demand in general remains robust and the lower share of 
online/direct business was as for previous quarters a conse-
quence of low inventory that does not support the part of 
online/direct business related to the subscription business 
model, therefore other sales channels were prioritised. 
FASTEST TRANSFORMER WAY OF WORKING
New Head of Design 
On 31 January, it was announced that Jeremy Offer will take 
on the role as Head of Design. Jeremy Offer most recently 
led Arrival’s design team as Senior Vice President and Chief 
Design Officer working across vehicle programs, compo- 
nents, brand and user experience.
China Continuous Integration (CI) Centre
Volvo Cars recently launched China Continuous Integration 
(CI) Centre at the Asia Pacific Headquarters which is our 
 latest strategic investment to further improve our software 
development capabilities, as cars become smarter and more 
connected to the driver than ever before. CI is a software 
development practice where each code change or new fea -
ture is tested on all relevant integration levels automatically 
to detect and fix errors as quickly as possible. CI is at the 
core of agile software development and allows us to achieve 
rapid development, integration, verification and feedback of 
our software while maintaining high quality. 
*  Online/Direct business is available in UK, Sweden, Netherlands, 
 Norway, Germany, USA, Canada, China, Malaysia, and India.
VOLVO CAR GROUP
6 OF 30
INTERIM REPORT FIRST QUARTER 2023

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

VOLVO CAR GROUP
SALES AND MARKET DEVELOPMENT
The global passenger car market improved year over year. 
The growth was underpinned by a low base of comparison 
for the same period last year, due to shortages of semicon -
ductors and an early effect from the Ukraine war.
Volvo Cars retail sales increased by 10% compared with 
the first quarter of 2022, while BEV increased by 157% 
accounting for 18% of the total cars sold. Wholesales 
increased by 17% and the production increased by 7%. The 
strong retail sales were enabled by improved production rate 
during the quarter, despite some disturbances related to 
semiconductors. 
Overall demand for our cars remained healthy at a global 
level with regional variances, while also maintaining price 
discipline. Volvo Cars’ Recharge line-up continued to be pop -
ular, with 30.1 thousand units of BEV and accounting for 
18% of the total cars sold and Recharge car sales account -
ing for 41% of the total cars sold. 
Europe
The total European car market increased by 17% and the tra -
ditional premium segment increased by 17% compared to 
last year. The region continued to have a backlog of orders 
waiting to be delivered. 
Volvo Cars retail sales increased by 12%. The orderbook 
remained stable despite geographical differences on new 
order intake. Recharge sales accounted for 62 (52)% of cars 
sold, whereof BEV sales accounted for 29 (12)% of retail 
sales.
First quarter financial summary
3 Months 12 Months
Retail sales (k units)
Jan–Mar 
2023
Jan–Mar 
2022 ∆% LTM 2022 ∆%
Europe 72.6 65.1 12 254.8 247.4 3
China 36.5 35.7 2 163.1 162.3 0
US 26.5 22.8 16 105.8 102.0 4
Other 27.3 24.7 11 106.0 103.3 3
Retail sales total 162.9 148.3 10 629.8 615.1 2
Recharge line-up vehicles 67.4 49.8 35 223.0 205.4 9
 whereof BEV vehicles 30.1 11.7 157 85.1 66.7 27
Recharge line-up share of sales 41% 34% — 35% 33% —
 whereof BEV share of sales 18% 8% — 14% 11% —
Wholesales 174.1 156.7 11 649.1 631.7 3
Production volume 181.1 169.0 7 661.0 648.9 2
China
The total Chinese passenger car market decreased by 14%, 
while the traditional premium segment decreased by 3%. 
Sales were mainly impacted by the phasing-out of incentives 
for all cars at the end of 2022.
Volvo Cars retail sales increased by 2%. Recharge share of 
total Chinese retail sales accounted for 11 (9)%, whereof 
BEV sales contributed to 3 (1)% of retail sales.
US
The total US car market increased by 8%. The traditional 
premium segment increased by 12%. Despite high interest 
rate, the demand continued to be strong and discounts 
remained low. 
Volvo Cars’ retail sales increased by 16%. Recharge share 
accounted for 29 (26)% in the quarter. BEV share of sales 
contributed to 11 (7)% of retail sales.
Other
Retail sales in other markets increased by 11%. The largest 
markets were Japan, Korea and Australia, which reported 
increase of 9%, 19% and 4% respectively. Recharge share 
of total sales in other markets was 40 (26)%, whereof BEV 
sales contributed to 19 (8)%.
Sales development per carline
Volvo Cars continued to steer its production towards electri -
fied models. The SUVs, including Volvo Cars’ XC and C mod -
els, increased their share to 82 (76)% of total sales, mainly 
driven by the two BEV models, the C40 and the XC40. The 
Sedan and Wagons’ share of total sales decreased to 11 
(15)% and 7 (9)% respectively. The XC60 remained the 
best-selling model closely followed by XC40.
VOLVO CAR GROUP
7 OF 30
INTERIM REPORT FIRST QUARTER 2023

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

VOLVO CAR GROUP
3 Months 12 Months
Top 10
Retail sales by market (k units)
Jan–Mar  
2023
Jan–Mar  
2022 ∆% LTM 2022 ∆%
China  36.5  35.7  2  163.1  162.3  0 
US  26.5  22.8  16  105.8  102.0  4 
UK  11.8  11.1  6  37. 2  36.5  2 
Germany  10.3  8.9  16  37. 2  35.8  4 
Sweden  9.3  12.3 –24  42.7  45.7 –7 
Belgium  5.9  4.3  36  16.2  14.6  11 
Italy  4.8  3.5  38  17.3  16.0  8 
Netherlands  4.8  3.9  22  13.8  13.0  7 
Japan  4.1  3.8  9  16.5  16.2  2 
Norway  4.0  1.8  131  13.4  11.1  21 
3 Months 12 Months
Retail sales by model (k units)
Jan–Mar  
2023
Jan–Mar  
2022 ∆% LTM 2022 ∆%
XC40 BEV 21.1 8.1 161  55.6 42.5 31
C40 9.0 3.6 146  29.5 24.2 22
XC60 50.1 44.8 12  200.6 195.3 3
XC40 PHEV/ICE 28.9 34.4 –16  121.2 126.7 –4
XC90 24.4 22.0 11  99.6 97.1 2
S90 10.4 9.5 9  43.8 42.9 2
S60 8.1 12.2 –33  35.5 39.5 –10
V60 7.7 9.2 –16  30.6 32.1 –5
V90 3.2 4.5 –29  13.4 14.7 –9
Total 162.9 148.3 10 629.8 615.1 2
V60 and V90 include the cross-country versions.
VOLVO CAR GROUP
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===== SIDA 9 =====

VOLVO CAR GROUP
INCOME AND RESULT
The comparative figures refer to the consolidated income 
statement of the first quarter 2022 if not otherwise stated.
Volvo Cars’ revenue amounted to SEK 95.7 (74.3) bn with an 
increase of 29%. Wholesale volumes increased by 11% to 
174.1 (156.7) thousand cars. The increased volume contrib -
uted with SEK 9.0 bn. The mix and price effects contributed 
with SEK 4.2 bn, as well as foreign exchange rate effect, 
including hedges, had a positive effect on revenue of SEK 
5.3 bn. Revenue from contract manufacturing also increased 
by SEK 2.7 bn.
Gross income increased by 9% to SEK 17.1 (15.7) bn, 
resulting in a gross margin of 17.9 (21.2)%. The decrease in 
gross margin was mainly due to higher costs for raw materi -
als, and third party contract manufacturing with somewhat 
lower margin than wholesale, as well as a higher share of 
fully electric car mix. This was partially mitigated by 
increased sold volume and pricing and carline mix. Foreign 
exchange rate effects, including hedges, in cost of sales 
were negative amounting to SEK –3.6 bn. The net effect of 
foreign exchange rates including hedges in gross income 
was positive and amounted to SEK 1.7 bn. 
Research and development expenses decreased by 11% to 
SEK –2.9 (–3.2) bn due to increased capitalisation as more 
projects have reached the capitalisation phase. For details 
regarding research and development expenses, see the 
Research and development table on page 10.
Administrative expenses were relatively flat and amounted 
to SEK –2.8 (–2.6) bn. Selling expenses increased by 26% 
to SEK –5.8 (–4.6) bn, mainly as an effect of increased 
spending related to marketing activities and the launch of 
Volvo EX90.
Other operating income and expenses amounted to SEK 
0.6 (0.6) bn. Share of income in joint ventures and associ -
ates decreased to SEK –1.2 (0.2) bn, due to negative results 
from strategic affiliates driven by costs incurred in their early 
build up phase.
Operating income (EBIT) decreased to SEK 5.1 (6.0) bn, 
resulting in an EBIT margin of 5.3 (8.1)%. Excluding share of 
income in joint ventures and associates, EBIT increased to 
SEK 6.3 (5.9) bn, corresponding to a margin of 6.6 (7.9)%. 
The exchange rate effects including hedges had a positive 
effect on EBIT of SEK 1.2 bn, see the table below.
Net financial items increased to SEK 0.3 (–0.3) bn, mainly 
driven by higher interest income and the market revaluation 
of the investment in Luminar based on the current share 
price.
The effective tax rate increased to 26.2 (22.1)%, mainly 
due to high non-tax deductible losses linked to share of 
income in joint venture and associates. Net income was SEK 
4.0 (4.5) bn and 4.2 (6.1)% in relation to revenue.
Basic earnings per share amounted to SEK 1.21 (1.29).
Changes to Revenue, SEK bn Jan–Mar
Revenue Q1 2022 74.3
 Volume 9.0 
 Sales mix and pricing 4.2
 Sale of licences –0.4
 Foreign exchange rates 5.3
 Contract manufacturing 2.7
 Other 1) 0.6
Revenue Q1 2023 95.7
Change % 29
1)  Including used cars, earned emissions credits, parts and accessories.
Changes to Operating income, SEK bn Jan–Mar
EBIT Q1 2022 6.0
 Volume 2.9
 Sales mix and pricing 0.9
 Sale of licences –0.4
 Government grants –0.1
 Foreign exchange rates 1.2
 Share of income in JVs and associates –1.4
 Other 2) –4.0
EBIT Q1 2023 5.1
Change % –16
2)  Mainly including raw material increases, fixed costs, used cars, emis -
sions credits, parts and accessories, cost efficiencies and import 
duties.
VOLVO CAR GROUP
9 OF 30
INTERIM REPORT FIRST QUARTER 2023

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

VOLVO CAR GROUP
0
60
50
40
20
30
10
70
80
120
110
100
90
60%
55%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Q2 Q3
2020 2021 2022 2023
Q4 Q1 Q2 Q1 Q4 Q1Q3Q2Q4Q3
Revenue, SEKbn Gross margin, %
Revenue & Gross Margin
–4
6
4
0
2
–2
8
14
12
10
–4%
6%
4%
0%
2%
–2%
8%
14%
12%
10%
Q2 Q3
2020 2021 2022 2023
Q4 Q1 Q2 Q1 Q4 Q1Q3Q2Q4Q3
Operating income (EBIT), SEKbn
EBIT margin excl. share of 
income in JV & associates, %
Operating Income & EBIT Margin
Operating income (EBIT) excl. share of 
income in JV & associates, SEKBn
EBIT margin, %
3 Months Full year
Research and development, SEKm
Jan–Mar  
2023
Jan–Mar  
2022 ∆% 2022
Research and development spending –6,504 –4,788 35.8 –22,123
Capitalised development costs 4,786 2,742 74.5 15,188
Amortisation of research and development – 1,160 –1,184 –2.0 –4,579
Research and development expenses –2,878 –3,230 –10.9 –11,514
VOLVO CAR GROUP
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===== SIDA 11 =====

VOLVO CAR GROUP
CASH FLOW
The comparative figures for the cash flow items refer to the 
consolidated cash flow statement for the first quarter 2022 
unless otherwise stated. The comparative figures for the bal-
ance sheet items refer to the consolidated balance sheets of 
December 31, 2022 unless otherwise stated.
Total cash and cash equivalents, including marketable securi -
ties, decreased to SEK 50.3 (67.2) bn. Net cash decreased 
to SEK 20.7 (38.1) bn. Liquidity amounted to SEK 67.2 
(83.8) bn, including undrawn credit facilities of SEK 16.9 
(16.7) bn.
 
Cash flow from operating activities 
Cash flow from operating activities amounted to SEK –2.4 
(–4.2) bn. The amount consists of operating income of SEK 
5.1 (6.0) bn, adjusted for depreciation and amortisation of 
SEK 4.1 (4.0) bn, together with paid income tax of SEK –1.2 
(–1.4) bn. 
The change in working capital had a negative effect of 
SEK –11.1 (–11.8) bn, mainly related to the normal seasonal -
ity. The increase of finnished vehicles in transit also nega -
tively impacted the cash flow from inventory which 
decreased with SEK –3.9 (–4.0) bn. Accounts payable 
decreased by SEK –8.9 (–4.8) bn partly offset by accounts 
receivable increase by SEK 4.2 (–) bn.
Cash flow from investing activities
Cash flow from investing activities amounted to SEK
–15.0 (–8.0) bn. Cashflow from investments in tangible 
assets amounted to SEK –6.0 (–3.8) bn, mainly driven by 
the acquisition of the Taizhou land and building and the 
industrial structure to prepare for future products. Invest -
ments in intangible assets amounted to SEK –5.5 (–3.1) bn 
as a result of continuous investments in new and upcoming 
car models and new technology, such as electrification tech -
nology and autonomous driving. The cashflow from loans to 
affiliated companies amounted to SEK –3.1 (–) bn, mainly 
related to the loan to Polestar announced in November 
2022.
Cash flow from financing activities 
Cash flow from financing activities amounted to SEK 3.9 
(0.5) bn and was mainly related to change in marketable 
securities that amounted to SEK 3.4 (0.8) bn. The issue of 
new green bonds of SEK 1.5 (–) bn was offset by a sched -
uled bond repayment of SEK –2.0 (–) bn. Change in repay -
ments of interest-bearing liabilities amounted to SEK –0.4 
(–0.4) bn.
Q2 Q3
2020 2021 2022 2023
Q4 Q1 Q2 Q1 Q4 Q1Q3Q2Q4Q3
–20
–4
–12
–8
–16
20
16
12
–20
–4
–12
–8
–16
20
16
12
0
8
4
0
8
4
Total, SEKbn LTM, SEKbn
Cash flow from Operating and investing activities
*Rolling twelve months
3 Months Full year
Cash flow statement, SEK bn Jan–Mar 2023 Jan–Mar 2022 2022
Cash flow from operating activities –2.4 –4.2 33.6
Cash flow from investing activities –15.0 –8.1 –39.7
Cash flow from operating and investing activities –17.4 –12.3 –6.1
Cash flow from financing activities 3.9 0.5 5.0
Cash flow for the period –13.5 –11.8 –1.1
EQUITY
Total equity increased to SEK 121.3 (117.3) bn, resulting in an 
equity ratio of 37.2 (35.4)%. The change is mainly attributa -
ble to the positive net income of SEK 4.0 bn and a minor 
positive effect in share-based payments and other compre -
hensive income.
VOLVO CAR GROUP
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===== SIDA 12 =====

VOLVO CAR GROUP
Other Information
PARENT COMPANY
The parent company does not conduct any operations and 
has no employees. The income statements and balance 
sheets for the parent company are presented on page 19.
RISKS AND UNCERTAINTY FACTORS
To ensure that Volvo Cars is able to achieve short- and long-
term objectives, enterprise risk management is part of daily 
activities at Volvo Cars. For a more in-depth description of 
risks related to Volvo Cars, see the Volvo Car Group’s Annual 
Report 2022 page 54. We consider the risk and uncertainty 
factors to remain the same as described in the annual report 
except for the following updates:
Global shortage of semiconductors
Semiconductor constraints continued to gradually improve. 
However, the underlying global shortage of semiconductors 
continued, which resulted in higher production costs and 
carried risks of further production disruptions. 
Volvo Cars continues to follow the development closely 
and work with suppliers and partners to resolve any distur -
bances to production and delivering vehicles to customers as 
soon as possible. To what extent Volvo Cars’ sales, revenue 
and profit ability will be affected in coming periods remains 
uncertain. Visibility has improved, however, the risk of further 
disturbances in production remains. 
Macro uncertainty
The uncertain macro environment continues, including high 
inflation, rising interest rates, raw material price volatility and 
ongoing geopolitical crisis. The uncertainties in the financial 
markets are still high. The risks of potential impact on 
demand from higher interest rate level and lower consumer 
confidence have increased. 
The war in Ukraine 
The war in Ukraine continues to have a negative impact on 
Europe. The war has led to accelerating increases in the cost 
of raw materials, energy, freights and inflationary pressures 
in the global economy. An escalation of the war in duration 
and scope could pose even more risks.
Volvo Cars has suspended its operations in Russia during 
2022, without significant financial effects.
EMPLOYEES
During the first three months 2023, Volvo Car Group 
employed 43.4 (41.9) thousand full-time employees (FTEs)
and 4.0 (4.2) thousand agency personnel. The increase was 
due to blue collars increase and new recruitment to support 
the transformation.
VOLVO CAR GROUP
12 OF 30
INTERIM REPORT FIRST QUARTER 2023

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

VOLVO CAR GROUP
VOLVO CAR GROUP
13 OF 30
INTERIM REPORT FIRST QUARTER 2023

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

Consolidated Income Statements
SEKm Note 
Jan–Mar  
2023
Jan–Mar  
2022
Full year 
2022
Revenue 2 95,705 74,269 330,145
Cost of sales –78,606 –58,555 –269,813
Gross income 17,099 15,714 60,332
Research and development expenses –2,878 –3,230 –11,514
Selling expenses –5,789 –4,586 –21,000
Administrative expenses –2,765 –2,600 –11,485
Other operating income and expenses 1) 648 579 1,556
Share of income in joint ventures and associates –1,215 161 4,443
Operating income 5,100 6,038 22,332
Interest income and similar credits 1) 499 165 852
Interest expenses and similar charges 1) –200 –205 –837
Other financial income and expenses 1) 3 –15 –215 –1,532
Income before tax 5,384 5,783 20,815
Income tax –1,409 –1,280 –3,812
Net income 3,975 4,503 17,003
Net income attributable to
Owners of the parent company 3,611 3,853 15,577
Non-controlling interests 364 650 1,426
Basic earnings per share (SEK) 5 1.21 1.29 5.23
Diluted earnings per share (SEK) 5 1.21 1.29 5.23
1)  In fourth quarter 2022, Volvo Cars changed the presentation of Other operating income and Other operating expenses as well as Financial income 
and Financial expenses. Presentation of the figures for Q1 2022 have been adjusted accordingly. The change has no impact on EBIT. For more infor -
mation see the annual report 2022. 
VOLVO CAR GROUP
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===== SIDA 15 =====

SEKm
Jan–Mar  
2023
Jan–Mar  
2022
Full year 
2022
Net income for the period 3,975 4,503 17,003
Other comprehensive income
Items that will not be reclassified subsequently to income statement:
Remeasurements of provisions for post-employment benefits –324 1,814 4,560
Tax on items that will not be reclassified to income statement 115 –387 –998
Items that have been or may be reclassified subsequently to income statement:
Translation difference on foreign operations 248 764 3,872
Translation difference of hedge instruments of net investments in foreign operations –118 –71 –710
Change in fair value of cash flow hedge related to currency and  commodity price risks 81 –38 2,289
Tax on items that have been or may be reclassified to income statement 7 20 –319
Other comprehensive income, net of income tax 9 2,102 8,694
Total comprehensive income for the period 3,984 6,605 25,697
Total comprehensive income attributable to
Owners of the parent company 3,627 5,833 24,150
Non-controlling interests 357 772 1,547
3,984 6,605 25,697
Consolidated Comprehensive Income
VOLVO CAR GROUP
15 OF 30
INTERIM REPORT FIRST QUARTER 2023

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

Consolidated Balance Sheets
SEKm Note
31 Mar 
2023
31 Dec 
2022
ASSETS  
Non-current assets  
Intangible assets  61,150 56,994
Tangible assets1)  81,382 77, 252
Investments in joint ventures and associates 4 16,408 15,599
Other long-term securities holdings 3 6,408 4,353
Deferred tax assets  9,457 9,131
Other non-current interest-bearing receivables 4,259 3,354
Non-current derivative assets 3 1,028 1,128
Other non-current assets 3,593 3,994
Total non-current assets  183,685 171,805
Current assets
Inventories 50,819 46,951
Accounts receivable 4 21,067 25,239
Current tax assets 1,994 1,763
Current derivative assets 3 1,544 1,769
Other current assets 1) 16,983 16,239
Marketable securities 3 — 3,415
Cash and cash equivalents 3 50,323 63,743
Total current assets 142,730 159,119
TOTAL ASSETS 326,415 330,924
EQUITY & LIABILITIES
Equity
Equity attributable to owners of the parent company 1) 117,592 113,947
Non-controlling interests 1) 3,689 3,331
Total equity 121,281 117, 278
Non-current liabilities
Provisions for post-employment benefits 6,100 6,883
Deferred tax liabilities 6,203 5,392
Other non-current provisions 8,104 8,398
Non-current liabilities to credit institutions 3 3,277 3,096
Non-current bonds 3 24,828 22,959
Non-current contract liabilities to customers 7,8 33 7,14 4
Other non-current interest-bearing liabilities 4,783 4,845
Non-current derivative liabilities 3 791 825
Other non-current liabilities 4,819 4,726
Total non-current liabilities 66,738 64,268
Current liabilities
Current provisions 11,340 9,051
Current liabilities to credit institutions 3 1,298 755
Current bonds 3 — 2,000
Current contract liabilities to customers 24,464 26,094
Accounts payable 4 59,644 68,913
Current tax liabilities 1,405 1,566
Other current interest-bearing liabilities 1,411 1,500
Current derivative liabilities 3 1,576 1,809
Other current liabilities  4 37, 258 37,690
Total current liabilities 138,396 149,378
TOTAL EQUITY & LIABILITIES 326,415 330,924
1) Adjustments have been made to the prior period presented. For more information see Note 10 - Government grants in the annual report 2022.
VOLVO CAR GROUP
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===== SIDA 17 =====

Consolidated Statement of Changes in Equity
SEKm
31 Mar 
2023
31 Dec
2022
Opening balance (as previously reported) 117, 278 94,978
Correction of prior period error 1) — –466
Effect of hyperinflation 2) — 49
Opening balance (restated) 117, 278 94,561
Net income for the period 3,975 17,003
Other comprehensive income, net of income tax 9 8,694
Total comprehensive income 3,984 25,697
Transactions with owners
Capital contribution from non-controlling interests 3) — 17
Divestment of non-controlling interests 4) — –1,196
Divestment under common control 5) — –978
New issue — –1
Share-based payments 19 24
Dividend to shareholders 6) — –846
Transactions with owners 19 –2,980
Closing balance 121,281 117, 278
Attributable to
Owners of the parent company 117,592 113,947
Non-controlling interests 3,689 3,331
Closing balance 121,281 117, 278
1)  For more information see Note 10 - Government grants in the annual report 2022.  
2)  For more information see Note 1 - General information for financial reporting in Volvo Car Group in the annual report 2022. 
3)   Refers to the capital contribution from ECARX Technology Ltd to Haleytek AB SEK — (17) m.
4)  Refers to the divestment of non-controlling interest in Zenseact AB.
5)  Refers to the divestment of Zhangjiakou Volvo Engine Manufacturing Co., Ltd to Zhejiang Aurobay Powertrain Co., Ltd.
6)  Dividend to shareholders with non-controlling interest of SEK — (–846) m.
VOLVO CAR GROUP
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===== SIDA 18 =====

Consolidated Statement of Cash Flows
SEKm
Jan–Mar  
2023
Jan–Mar  
2022
Full year 
2022
OPERATING ACTIVITIES
Operating income 5,100 6,038 22,332
Depreciation and amortisation of non-current assets 4,129 3,985 16,091
Dividends received from joint ventures and associates 4 — 72
Interest and similar items received 499 165 1,065
Interest and similar items paid –276 –239 –1,351
Other financial items 154 101 206
Income tax paid –1,243 –1,360 –4,223
Adjustments for other non-cash items 332 –1,096 –7,135
 8,699 7,594 27,057
Movements in working capital
Change in inventories –3,932 –3,981 –7 ,348
Change in accounts receivable 4,178 –5 –776
Change in accounts payable –8,948 –4,773 18,533
Change in provisions 711 –1,764 –4,640
Change in contract liabilities to customers –172 –1,487 5,941
Change in other working capital assets/liabilities –2,916 177 –5,168
Cash flow from movements in working capital –11,079 –11,833 6,542
Cash flow from operating activities –2,380 –4,239 33,599
INVESTING ACTIVITIES
Investments in shares and participations –533 –1,760 –9,597
Divestment in shares and participations — 600 2,290
Loans to affiliated companies –3,114 — —
Investments in intangible assets –5,545 –3,136 –18,328
Investments in tangible assets –5,962 –3,758 –13,784
Disposal of tangible assets 85 21 161
Other — — –400
Cash flow from investing activities –15,069 –8,033 –39,658
Cash flow from operating and investing activities –17,4 49 –12,272 –6,059
FINANCING ACTIVITIES
Proceeds from credit institutions 776 65 1,040
Proceeds from bond issuance 1,500 — 5,260
Repayment of bond –2,000 — —
Repayment of liabilities to credit institutions — –4 –4,530
Repayment of interest bearing liabilities –429 –407 –1,711
Dividends paid to shareholders and/or  
Non-controlling interest — — –846
Investments in marketable securities –360 –9,256 –21,127
Matured marketable securities 3,781 10,074 26,157
Other1) 638 28 726
Cash flow from financing activities 3,906 500 4,969
Cash flow for the period –13,543 –11,772 –1,090
Cash and cash equivalents at beginning of period 63,743 62,265 62,265
Exchange difference on cash and cash equivalents 123 925 2,568
Cash and cash equivalents at end of period 50,323 51,418 63,743
1) For Jan–Mar Other is attributable to realised result from financial instruments of SEK 401 (29) m and change in Other non-current liabilitities of 
     SEK 237 (–1) m.
VOLVO CAR GROUP
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===== SIDA 19 =====

Condensed Parent Company  
Income Statements
Condensed Parent Company
Balance Sheets
SEKm
Jan–Mar  
2023
Jan–Mar  
2022
Full year 
2022
Administrative expenses –6 –5 –27
Operating income/loss –6 –5 –27
 
Interest income and similar credits 1) 332 176 942
Interest expenses and similar charges 1) –195 –126 –640
Other financial income and expenses 1)2)  –6 –7 1,472
Income before tax 125 38 1,747
 
Income tax –26 –8 889
Net income 99 30 2,636
1)    In fourth quarter 2022, Volvo Cars changed the presentation of Other operating income and Other operating expenses as well as Financial income 
and Financial expenses. Presentation of the figures for Q1 2022 have been adjusted accordingly. The change has no impact on EBIT. For more infor -
mation see the annual report 2022. 
2) In December 2022, a dividend of SEK 1,500 m was received from subsidiary.
Other comprehensive income and net income are consistent since there are no items in other comprehensive income.
SEKm  
31 Mar
2023
31 Dec
2022
ASSETS
Non-current assets 47,08 4 45,263
Current assets 15,879 22,234
TOTAL ASSETS 62,963 67,497
EQUITY & LIABILITIES
Equity
Restricted equity 61 61
Non-restricted equity 36,372 36,254
Total equity 36,433 36,315
Non-current liabilities 26,072 24,242
Current liabilities 458 6,940
Total liabilities 26,530 31,182
TOTAL EQUITY & LIABILITIES 62,963 67,497
In December 2022, the parent company made a group contribution of SEK 4,530 m to Volvo Car Corporation.
VOLVO CAR GROUP
19 OF 30
INTERIM REPORT FIRST QUARTER 2023

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

NOTE 1 – Accounting policies
The interim report has been prepared in accordance with IAS 34 – Interim Financial Reporting and the Swedish Annual Accounts 
Act. The Volvo Car Group applies International Financial Reporting Standards (IFRS) as endorsed by the European Union. The 
parent company applies RFR 2 – Reporting for legal entities and the Swedish Annual Accounts Act. The accounting principles in 
this report are, in all material aspects, consistent with those described in Volvo Car Group’s Annual Report 2022 (available at 
www.volvocars.com).
The IASB has published amendments to standards effective on or after 1 January 2023. These additions have not had any 
significant impact on the financial statements.  
 
NOTE 2 – Revenue
Revenue allocated to geographical regions:
SEKm
Jan–Mar  
2023
Jan–Mar  
2022
Full year 
2022
China 16,585 17,409 70,924
US 19,490 11,321 62,070
Europe 44,102 34,139 144,150
 of which Sweden1) 11, 574 10,401 44,923
 of which Germany 5,434 4,127 19,015
 of which United Kingdom 4,575 3,494 16,159
Other markets 15,528 11,400 53,001
 of which Japan 2,286 1,860 8,339
 of which South Korea 2,176 1,463 6,024
Total 95,705 74,269 330,145
Revenue allocated to category:
SEKm
Jan–Mar  
2023
Jan–Mar  
2022
Full year 
2022
Sales of new cars 73,875 56,913 252,747
Sales of used cars 3,774 4,258 16,405
Sales of parts and accessories 8,671 7, 233 30,778
Revenue from subscription, leasing and rental business 1,207 971 4,473
Sales of licences and royalties — 399 887
Contract manufacturing 6,482 3,530 20,288
Emissions credits 186 — 505
Other revenue 1,510 965 4,062
Total 95,705 74,269 330,145
1) Includes the Contract manufacturing sales channel.
VOLVO CAR GROUP
20 OF 30
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===== SIDA 21 =====

NOTE 3 – Financial instruments
Valuation principles and classification of financial instruments, as described in the Volvo Car Group’s Annual Report 2022, 
Note 20 – Group financial instruments and financial risks, have been applied consistently throughout the reporting period. 
The fair value of the financial instruments valued at amortised cost shorter than twelve months are equivalent to their carry -
ing amounts. The carrying amount of the non-current and current issued bond loans and liabilities to credit institutions 
amounted to SEK 29,403 (28,810) m and the fair value of these financial instruments amounted to SEK 28,220 (27,390) m. 
Financial instruments at level 2 in Volvo Cars reported at fair value through profit and loss and designated hedging instru -
ment consist of derivatives, commercial paper and convertible bonds, where the positive fair value amounted to SEK 6,546 
(4,658) m (including convertible bond to Polestar) and the negative fair value amounted to SEK 2,368 (2,634) m. 
Investments in other long-term securities are holdings categorised as level 1 and level 3 financial instruments consisting of 
equity investments, warrants and earn-outs rights. Investments in equity instruments amounted to SEK 3,369 (4,353) m, 
whereof SEK 329 (252) m are holdings categorised as level 1 financial instruments and SEK 3,040 (4,101) m are categorised 
as level 3 financial instruments.  
The earn-outs rights in the Polestar Group will accrue to the Group if a number of criteria have been met during a specific 
time period in the future. These earn-out rights are categorised as level 3 financial instruments and are measured by using a 
Monte Carlo simulation. The simulation is based on a volatility of 75% and a risk-free interest rate of 3.6%. A change in volatil -
ity of +/–10 percentage points results in a value range of SEK 1,572–2,154 m. Furthermore, if the risk-free interest rate 
changes +/–2 percentage points, it would result in a value range of SEK 1,837–1,963 m. Remaining level 3 investments con -
sist of unlisted share warrants and earn-outs rights in the listed company Luminar Technologies Inc (Luminar). These instru -
ments are measured using the Black-Scholes model based on:
• The probability that Volvo Car Group will fulfil contractual terms and when in time this will occur.
• The assessed risk-free interest rate which have been determined at 4.7% and 3.6% for the different maturity.
• Volatility of the underlying share price which has been determined at 9%.
 
Sensitivity analysis for warrants in Luminar (SEKm)
Likelihood of triggering event 
Volatility –10% –5% 0% 5% 10%
–10% 129 139 151 157 167
–5% 132 141 153 160 170
96% 134 144 156 163 173
5% 136 146 159 166 176
10% 138 148 161 168 178
Hedge accounting
Hedge accounting is applied when derivative instruments are included in a documented hedge relationship. For hedge 
accounting to be applied, a direct connection between the hedging instrument and the hedged item is required. Volvo Cars 
applies fair value hedge, net investment hedge and cash flow hedge. For further information see Note 20 – Financial instru -
ments and financial risks in the Volvo Car Group’s Annual Report 2022. 
In the table below the outstanding derivatives within hedge accounting are presented.
31 Mar 2023 Assets Liabilities Net Tax
Hedge reserve  
after tax
Recycled from other 
comprehensive 
income
Ineffectiveness 
reflected in income 
statement
Cash flow hedge
– Currency risk 2,107 –1,492 615 –126 489 176 —
– Energy price risk 158 –42 116 –24 92 68 —
– Raw material price risk 80 –165 –85 18 –67 18 —
Subtotal 2,345 –1,699 646 –132 514 262 —
Net investments hedge
– Currency risk — –1,342 –1,342 276 –1,066 — —
Total 2,345 –3,041 –696 144 –552 262 —
Fair value hedge through 
the income statement
– Interest rate risk 13 –267 –254 — — — –7
VOLVO CAR GROUP
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===== SIDA 22 =====

NOTE 3 – Financial instruments – continued
31 Dec 2022 Assets Liabilities Net Tax
Hedge reserve  
after tax
Recycled from other 
comprehensive 
income
Ineffectiveness 
reflected in income 
statement
Cash flow hedge
– Currency risk 2,149 –1,816 333 –67 266 1,682 —
– Energy price risk 373 –38 335 –69 266 –102 —
– Raw material price risk 61 –164 –103 21 –82 –23 —
Subtotal 2,583 –2,018 565 –115 450 1,557 —
Net investments hedge
– Currency risk — –1,224 –1,224 252 –972 11 —
Total 2,583 –3,242 –659 137 –522 1,568 —
Fair value hedge through 
the income statement
– Interest rate risk — –298 –298 — — — –11
VOLVO CAR GROUP
22 OF 30
INTERIM REPORT FIRST QUARTER 2023

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

NOTE 4 – Related party transactions
Volvo Car Group has a close collaboration with its related parties. The main part of the transactions is related to sales and pur -
chases of cars, licences of technology, contract manufacturing and purchases of components. Related parties include companies 
outside the Volvo Car Group, but within the Geely sphere of companies as well as other companies, such as associates and 
joint ventures. All transactions with related parties are performed at arm’s length. 
Significant events and agreements with related parties during the first quarter
•  On 6 January 2023, Volvo Cars, through one of its wholly-owned subsidiaries, Asia Euro Automobile Manufacturing 
(Taizhou) Co., Ltd. acquired 100% of the shares in Taizhou Luqiao Jijin Automobile Manufacturing Co., Ltd. The acquired 
company owns land and building related to the manufacturing plant in Luqiao, Taizhou, China. The purchase consideration 
amounted to SEK 2,865 m.
• In November, Volvo Cars signed a facility agreement with Polestar with the intention of providing them with a credit   
 facility of USD 800 m. Polestar will be able to draw funds from this credit facility during a 18-month period. Any drawn   
 funds (total loan) will be repaid by May 2024. The loan also includes an option for Volvo Cars to convert the loan to equity, if 
 Polestar during the period chooses to finance the operations by issuing new shares. The potential conversion is also limited  
 due to Volvo Cars’ ownership in Polestar not being able to equal or exceed 50%. The convertible bond is measured at fair  
 value through profit or loss taking into consideration the conversion mechanism of the instrument. During the first quarter  
 2023, Polestar has withdrawn a total amount of USD 300 m of this facility which is classified as a long-term security 
 holding. 
Tables of transactions with related parties
The information presented below includes all assets and liabilities regarding related parties. All assets and liabilities are current 
except SEK 4,086 (966) m which is non-current. For further details refer to section Specification of transactions with related 
parties, on next page.
Sales of goods, services and other
SEKm
Jan–Mar  
2023
Jan–Mar  
2022
Full year 
2022
Related companies 1) 7, 221 4,617 24,962
Associated companies and joint ventures 385 423 1,627
Purchases of goods, services and other
SEKm
Jan–Mar  
2023
Jan–Mar  
2022
Full year 
2022
Related companies 1) –7,982 –6,911 –26,202
Associated companies and joint ventures –818 –449 –2,701
1) Related companies are companies within the Geely sphere of companies. Joint ventures within the Geely sphere are presented as Related companies.
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NOTE 4 – Related party transactions – continued
Receivables Payables
SEKm
31 Mar
2023
31 Dec
2022
31 Mar
2023
31 Dec
2022
Related companies 1) 19,319 21,043 8,260 13,414
Associated companies and joint ventures 906 1,377 309 466
1) Related companies are companies within the Geely sphere of companies. Joint ventures within the Geely sphere are presented as Related companies.  
 
Specification of significant transactions with related parties
The Polestar Group
Volvo Car Group recognised revenue from the Polestar Group of SEK 6,597 (4,025) m in the first quarter. The revenue was 
mainly related to sale of Polestar cars from the Taizhou plant, technology licences and development of technology as well as 
revenue related to sale of other services. 
 
Powertrain Engineering Sweden AB (PES)
The total purchases from Powertrain Engineering Sweden AB amounted to SEK –2,988 (–2,794) m in the first quarter, mainly 
related to combustion engines and product development and has mainly been recognised as cost of sales.
Zhangjiakou Aurobay Powertrain Manufacturing Co., Ltd
The Zhangjiakou plant is since 31 January 2022 a related party to Volvo Car Group. The purchase of combustion engines for 
the first quarter amounted to SEK –2,485 (–1,380) m and has mainly been recognised as cost of sales.
Zhejiang Liankong Technology Co., Ltd and Zhejiang Ji Run Auto Co., Ltd
The purchase of research and development services from Zhejiang Liankong Technology Co., Ltd and Zhejiang Ji Run Auto Co., 
Ltd amounted to SEK –343 (– 1,885) m for the first quarter. The whole amount has been capitalised as intangible assets.  
Ningbo Fuhong Auto Sales Co., Ltd
Total revenue from sales of cars to Ningbo Fuhong Auto Sales Co., Ltd amounted to SEK 399 (218) m in the first quarter.  
Ningbo Geely Automobile Research & Develepment Co., Ltd
The purchase of research and development services from Ningbo Geely Automobile Research&Develepment Co., Ltd 
amounted to SEK –456 (–273) m in the first quarter, which mainly has been capitalised as intangible assets.
Viridi E-Mobility Technology (Ningbo) Co., Ltd
The total purchases from Viridi E-Mobility Technology (Ningbo) Co., Ltd. amounted to SEK –421 (–242) m in the first quarter, 
mainly related to batteries and has been recognised as cost of sales.
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NOTE 5 – Earnings per share
Basic earnings per share, SEKm
Jan–Mar
2023
Jan–Mar
2022
Full year 
2022
Net income attributable to owners of the parent company 3,611 3,853 15,577
Net income attributable to owners of  
ordinary shares in the parent company 3,611 3,853 15,577
Weighted average number of ordinary shares  
outstanding, basic 2,979,524,179 2,979,524,179 2,979,524,179
Basic earnings per share, SEK 1.21 1.29 5.23
Diluted earnings per share  , SEKm
Jan–Mar
2023
Jan–Mar
2022
Full year 
2022
Net income in basic earnings per share 3,611 3,853 15,577
Net income in diluted earnings per share 3,611 3,853 15,577
Weighted average number of ordinary shares  
outstanding, basic 2,979,524,179 2,979,524,179 2,979,524,179
Dilutive effect for share-based payment programmes 382,877 — 47,186
Weighted average number of ordinary shares  
outstanding, diluted 2,979,907,056 2,979,524,179 2,979,571,365
Diluted earnings per share, SEK 1.21 1.29 5.23
NOTE 6 – Significant events after the period
No significant events have occurred after the period.
The section Risks and Uncertainty Factors on page 12 contains information on Volvo Cars’ assessments of the global impact 
on the Group.
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GENERAL DEFINITIONS
Volvo Cars and Volvo Car Group
Volvo Car AB (publ.) together with its wholly-owned subsidi -
ary Volvo Car Corporation and its subsidiaries are jointly 
referred to as “Volvo Car Group” or “Volvo Cars”.
Volvo Car AB (publ.), with its registered office in Gothen -
burg, Sweden, is a publicly listed company on the Nasdaq 
Stockholm Stock Exchange. The largest owner, holding 82 
per cent of shares and capital, is Geely Sweden Holdings AB, 
owned by Shanghai Geely Zhaoyuan International Invest -
ment Co., Ltd., registered in Shanghai, China, and ultimately 
owned by Zhejiang Geely Holding Group Ltd., registered in 
Hangzhou, China. 
Volvo Car AB (publ.) holds shares in its subsidiary Volvo 
Car Corporation and provides the Group with certain financ -
ing solutions. Volvo Car AB (publ.), indirectly through Volvo 
Car Corporation and its subsidiaries, operates in the automo -
tive industry with business relating to design, development, 
manufacturing, marketing and sale of cars and thereto 
related services.
Associated companies
Associated companies are companies in which Volvo Car 
Group has a significant but not controlling influence, which 
generally is when Volvo Car Group holds between 20 per 
cent and 50 per cent of the shares.
Joint venture companies (JVs)
Joint ventures refer to companies in which Volvo Car Group, 
through contractual cooperation together with one or more 
parties, has joint control over the operational and financial 
management and has rights to the net assets of the arrange -
ment.
Retail sales
Retail sales refer to sales to end customers (including a por -
tion of cars used as customer loaner and demo cars) and is a 
relevant measure of the demand for Volvo Cars from an end 
customer point of view.
Wholesales
Wholesales refer to new car sales to dealers and other  
customers including rentals.
Europe
Europe is defined as EU+EFTA+UK.
Passenger cars
Passenger cars are vehicles with at least four wheels, used 
for the transport of passengers, and comprising no more 
than eight seats in addition to the driver’s seat.
Traditional premium segment
Traditional premium segment is the premium market brands 
such as Volvo Cars, Audi, BMW, Lexus, Mercedes, Tesla and 
so on. 
Battery Electric Vehicles (BEV)
BEV cars include all vehicles which are 100 per cent fully 
electrified cars.
Non Battery Electric Vehicles (Non-BEV)
Non-BEV cars include all vehicles which are not 100 per 
cent fully electrified cars (BEV). For Volvo Cars, it includes 
plug-in hybrid (PHEV), mild hybrid (MHEV) and internal 
combustion engine cars (ICE).
Electrified cars
Electrified cars include 100 per cent fully electric cars, the 
same as the Battery Electric Vehicles (BEV), and Plug-in 
hybrids (PHEV), in both petrol and diesel with cord for charg -
ing. 
Recharge cars / Recharge line-up
“Recharge” is the overarching name for all Volvo chargeable 
car models including plug-in hybrids (PHEV) and fully electric 
vehicles (BEV). 
ICE
Internal combustion engine, including all powertrain types 
except plug-in hybrids (PHEV) and fully electric vehicles 
(BEV).
Agency personnel
Agency personnel is referred to as specific competence that 
is sourced externally and assigned to meet fluctuating busi -
ness resource needs.
Contract manufacturing
A business model in which a third-party company is con -
tracted for the production of goods or components over a 
specified contract period.
Online/direct
Online/direct business model is defined as a car ordered 
online with transparent online price and direct invoice where 
available. For US and Canada, the transaction is executed by 
our retail partners as per our agreement with retailers and in 
line with franchise laws.
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The alternative performance measures presented and disclosed in this interim report are used internally by management in 
conjunction with IFRS measures to measure performance and make decisions regarding the future direction of the business. 
The Group believes that these alternative performance measures, when provided in combination with reported IFRS measures, 
provide helpful supplementary information for investors. These alternative performance measures are not a substitute for or 
superior to IFRS measures and should be used in conjunction with reported IFRS measures. Further, these alternative perfor -
mance measures, as defined by the Group, may not be comparable to other similarly titled measures used by other groups. 
Volvo Cars has applied the guidelines from ESMA (European Securities and Markets Authority) regarding alternative key 
 figures (APMs, Alternative performance measures). Although these key figures are not defined or specified according to IFRS 
they provide the valuable supplementary information to investors and the company’s management regarding the company’s 
performance. 
Gross margin
Gross margin is defined as Gross income as a percentage of 
revenue. Gross margin presents the per cent of revenue that 
Volvo Cars retains after incurring the direct costs associated 
with producing the goods and services sold.
EBIT
EBIT is defined as Net income excluding financial income, 
financial expenses and Income taxes, that is operating 
income presented in the income statement. EBIT presents 
the operating income of Volvo Car Group.
EBIT margin
EBIT margin is defined as EBIT as a percentage of revenue. 
The EBIT margin presents the profitability of the operation   
in relation to the recognised revenue earned by Volvo Car 
Group during the accounting period.
EBIT margin excl. share of income in JVs & associates
EBIT margin excl. share of income in JVs & associates is 
defined as EBIT less the result from share of income in JVs   
& associates. This presents the profitability of the operation 
excluding share of income in JVs & associates during the 
accounting period.
EBIT margin excl. share of income in JVs & associates is 
also presented as a percentage of revenue. The margin pre -
sents the profitability of the operation excluding share of 
income in JVs & associates in relation to the recognised 
 revenue earned by Volvo Car Group during the accounting 
period.
EBITDA
EBITDA is defined as EBIT excluding depreciation and amor -
tisation of non-current assets. EBITDA presents an overview 
of the profitability of Volvo Car Group operations.
EBITDA margin
EBITDA margin is EBITDA as a percentage of revenue. The 
EBITDA margin presents the profitability of the operation in 
relation to the recognised revenue earned by the Group 
 during the accounting period.
Alternative performance measures  
presented by Volvo Car Group
Return on invested capital, ROIC
ROIC is defined as EBIT divided by invested capital. Return 
on invested capital ratio gives an overview of how efficient 
Volvo Car Group is at allocating capital to profitable invest -
ments. Invested capital is the amount of net assets needed 
in day to day operations (total assets less receivables on par -
ent company less other long-term securities holding less 
cash and cash equivalents less marketable securities plus 
operating cash (average two-year revenue * 10 per cent)) 
less total current liabilities less current liabilities to parent 
company plus total current interest-bearing liabilities (includ -
ing liabilities to credit institutions, bonds current, other cur -
rent interest-bearing liabilities) calculated on two-year aver -
age figures.
Equity ratio
The equity ratio is defined as total equity divided by total 
assets in the balance sheet. It measures Volvo Car Group’s 
long-term solvency and financial leverage level.
Net cash
Net cash is defined as cash, cash equivalents and marketable 
securities less liabilities to credit institutions, bonds and 
other non-current interest-bearing liabilities (excluding 
non-current lease liabilities). Net cash represents Volvo Car 
Group’s ability to meet its financial obligations.
Items affecting comparability
Transactions that are not related to recurring business opera -
tions, but affecting the financial outcome in a material way, 
and where the probability of reoccurrence over the coming 
years is limited.
Shares of investing cash flow
Share of investing Cash Flow is defined as the share of 
investing cash flow allocated to certain types of develop -
ment as a percentage of the total investing cash flow. Share 
of investing cash flow presents the allocation the Group’s 
cash resources to certain investments during the reporting 
period.
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Alternative performance measures are presented in SEKm unless otherwise stated.
SEKm
Jan–Mar 
2023
Jan–Mar 
2022
Full year 
2022
Revenue 95,705 74,269 330,145
Revenue per new car, BEV (SEKk) 1) 456.3 435.9 448.8
Revenue per new car, non-BEV (SEKk) 1) 446.9 385.7 415.2
Cost of sales –78,606 –58,555 –269,813
Research and development expenses –2,878 –3,230 –11,514
Operating income, EBIT 5,100 6,038 22,332
EBIT margin, excl. share of income in JVs & associates 6,315 5,877 17,8 89
Net income 3,975 4,503 17,003
EBITDA 9,229 7,425 38,423
Gross income per new car, BEV (SEKk) 1) 33.9 59.0 36.8
Gross income per new car, non-BEV (SEKk) 1) 104.2 81.5 88.9
Gross margin, % 17.9 21.2 18.3
Gross margin BEV, % 1) 7.4 13.5 8.2
Gross margin non-BEV, % 1) 23.3 21.1 21.4
EBIT margin, % 5.3 8.1 6.8
EBIT margin excl. share of income in JVs & associates, % 6.6 7.9 5.4
EBITDA margin, % 9.6 10.0 11.6
Equity ratio, % 3) N/A N/A 35.4
Net cash 20,672 33,072 38,061
Share of investing cash flow BEV, % 74.8 57.3 68.5
Share of investing cash flow non-BEV, % 6.4 9.3 6.2
Return on invested capital, ROIC % 2) N/A N/A 16.7
1)  Includes amounts relating to emissions credits earned relating to BEV and Non-BEV, respectively. For the first quarter of year the amounts were SEK 
136 (—) and 50 (—) m relating to BEV and Non-BEV, respectively. For more information see Note 2 – Revenue in the annual report 2022.
2)  Adjustments have been made to the calculated alternative performance measures presented for prior period. For more information see Note 10 – 
Government grants in the annual report 2022. 
The reconciliations of the respective key figures against the most directly reconcilable item in the financial statements can be found at;  
https://investors.volvocars.com/en/financial-information/results-centre
RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES
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CONTACT
Analysts and investors 
John Hernander 
Head of Investor Relations
+46 31-793 94 00
investors@volvocars.com
FINANCIAL CALENDAR & CONFERENCE CALL
Webcast and conference call
At 9:30 CET on 27 April, President & CEO Jim Rowan and 
CFO Johan Ekdahl will host a livestream for media, inves -
tors and analysts.
Link: https://live.volvocars.com
For those tuning in from China, please use this link:  
https://live.volvocars.com.cn
To call in, participants need to register and will then receive 
the dial-in details and individual PIN.
Link to register 
Upcoming investor Events
20 July 2023: Q2 2023 report
26 October 2023: Q3 2023 report
2 February 2024: Q4 2023 report
25 April 2024: Q1 2024 report
ABOUT THIS REPORT 
FORWARD LOOKING STATEMENTS 
This report contains statements concerning, among other 
things, Volvo Car Group’s financial condition and results of 
operations that are forward-looking in nature. Such state -
ments are not historical facts but, rather, represent Volvo 
Car Group’s future expectations. Volvo Car Group believes 
that the expectations reflected in these forward-looking 
statements are based on reasonable assumptions. However, 
forward-looking statements involve inherent risks and uncer-
tainties, and a number of important factors could cause actual 
results or outcomes to differ materially from those expressed 
in any forward-looking statement. Such important factors 
include but may not be limited to: Volvo Car Group’s market 
position, growth in the automotive industry, and the effects 
of competition and other economic, business, competitive 
and/or regulatory factors affecting the business of Volvo Car 
Group, its associated companies and joint ventures, and the 
automotive industry in general. Forward-looking statements 
speak only as of the date they were made and, other than as 
required by applicable law, Volvo Car Group undertakes no 
obligation to update any of them in light of new information 
or future events.
Language
In the event of inconsistency or discrepancy between the 
English and the Swedish version of this publication, the 
Swedish version shall prevail.
Totals and roundings
Totals quoted in tables and statements may not always be 
the exact sum of the individual items because of rounding 
differences. The aim is that each line item should correspond 
to its source, and rounding differences may therefore arise.
Journalists and media 
Volvo Cars Media Relations 
+46 31-59 65 25 
media@volvocars.com
Gothenburg, 26 April 2023
     
 
Jim Rowan
President and CEO
This report has not been subject to review by Volvo Car AB’s auditors.
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