===== SIDA 1 ===== VOLVO CAR GROUP INTERIM REPORT THIRD QUARTER 2024 For life. To give people freedom to move in a personal, sustainable and safe way. ===== SIDA 2 ===== VOLVO CAR GROUP 2 OF 30 INTERIM REPORT THIRD QUARTER 2024 VOLVO CAR GROUP • Retail sales increased by 3% to 172.8 (167 .5) thousand cars. • Revenue amounted to SEK 92.8 (92.0) bn, supported by higher volume. • EBIT excluding share of income in JVs and associates was SEK 5.7 (6.1) bn, supported by lower cost, mainly from materials. It was also impacted by unfavourable foreign exchange rate effects from the valuation of operating assets and liabilities. Operating income (EBIT) was SEK 5.8 (4.5) bn. • EBIT margin excluding share of income in JVs and associates was 6.2 (6.7)%. EBIT margin was 6.2 (4.8)%. • Basic earnings per share was SEK 1.41 (1.01). • Operating and investing cash flow was SEK –0.4 (1.7) bn. • In August, Volvo Cars took full ownership of HaleyTek. Prior to the transaction, Volvo Cars ownership of HaleyTek amounted to 60%. • In September, Volvo Cars announced updated electrification and CO 2 ambitions for 2025 and 2030, as well as updated its financial ambitions related to growth and EBIT margin for 2026. • In October it was announced that structural changes would be made in the Commercial area of the business, effective from November 1. Those changes include Björn Annwall, Chief Commercial Officer & Deputy CEO, step - ping out of his role and taking on new opportunities out - side of Volvo Cars. JULY–SEPTEMBER 2024 UPDATES AFTER THE PERIOD FORWARD LOOKING 3 Months 9 Months 12 Months SEK bn unless otherwise stated Jul–Sep 2024 Jul–Sep 2023 ∆% Jan–Sep 2024 Jan–Sep 2023 ∆% LTM Full year 2023 Retail sales, k units 1) 172. 8 167. 5 3 560.9 509.2 10 760.4 708.7 Revenue 92.8 92.0 1 28 8 .1 289.9 –1 396.8 399.3 Research and development expenses 2) –3.4 –2.9 –17 –12.0 –9.2 –30 –15. 2 –12.9 Operating income (EBIT) 3) 5.8 4.5 30 18.5 14.6 27 22.5 19.9 EBIT excl. share of income in JVs and associates 3) 5.7 6 .1 –7 20.7 18.9 10 27. 9 25.6 Net income 4.4 3.2 35 13.6 10.7 27 15.8 14.1 Basic earnings per share, SEK 1.41 1.01 40 4.33 3.34 30 5.37 4.38 EBITDA 3) 10.4 8.7 20 34.4 27.1 27 43.0 37. 4 Cash flow from operating activities 9.2 10.1 –9 21.1 24.7 –15 40.1 42.9 Cash flow from investing activities –9.6 –8.4 –15 –33.5 –39.8 –16 –44.4 –51.8 Gross margin, % 3) 20.5 19.6 4 20.9 18.8 11 20.7 19.4 EBIT margin, % 3) 6.2 4.8 29 6.4 5.0 28 5.7 5.0 EBIT margin excl. share of income in JVs and associates, %3) 6.2 6.7 –8 7. 2 6.5 10 7. 0 6.4 EBITDA margin, % 3) 11. 2 9.4 19 12.0 9.3 28 10.8 9.4 1) Non-financial operating metric. 2) See further information in footnote to R&D table, page 11. 3) Non-IFRS measure (alternative performance measure), see Alternative performance measures on page 27. • Our aim is to outgrow the premium car market until 2026 from 2023 on a CAGR basis, but that journey will not be linear. Given the accelerating weakness in the market and our focus on safeguarding value over volume, we expect minimal volume growth during Q4, 2024. As a result of this, we now anticipate full-year sales growth of 7–8 per cent in 2024 (previous outlook: retail sales growth of 12–15%, provided there are no major disruptions). ===== SIDA 3 ===== VOLVO CAR GROUP 3 OF 30 INTERIM REPORT THIRD QUARTER 2024 VOLVO CAR GROUP Dear shareholders and other Volvo Cars stakeholders, Our industry is facing an increasingly volatile environment. Macroeconomic headwinds are intensifying, as is geopoliti - cal complexity. Despite these challenges we demonstrated resilience during the third quarter of 2024, which is reflected in our overall financial performance. However, continued cost actions remain necessary going forward, and we are deter - mined to deliver on our ambitions. Building resilience in a turbulent world “We are confident that our strong and balanced product portfolio of BEVs, PHEVs and mild hybrids will remain attractive going forward” the premium car industry in Europe. For the first nine months, our sales increased by 10 per cent year-on-year. This puts us in a position to outgrow the premium car market in 2024, which is expected to grow by less than 1 per cent this year. In Europe, we took market share in an increasingly com - petitive market while retaining our premium pricing position. Although the market as a whole is softening, we are encour - aged by the strong performance of our balanced, portfolio of fully electric (BEV) cars, plug-in (PHEVs) and mild hybrids. The EX30 remained among the best-selling BEVs in Europe and the XC60 is still one of the most popular PHEVs in the region. The car market in our main regions of China, Europe and the US is increasingly under pressure which affects demand. We have retained our premium position in China by focusing on price discipline, but this has affected sales volumes. In the US, the performance of our electrified range remained solid, but here too the overall market has weakened. Lower interest rates may improve the situation over time in these markets, and we continue to monitor developments closely. Gross margins were broadly in line with our underlying oper - ational gross margins for the first half of 2024 and came in at 20.5 per cent for the third quarter. Revenues for the period amounted to SEK 93 billion and our core EBIT landed at SEK 5.7 billion, translating into a core EBIT margin of 6.2 per cent. Free cash flow was around flat at SEK –0.4 billion. As stated recently at our Capital Markets Day, our aim is to outgrow the premium car market until 2026, by which we mean from 2023 until 2026 on a CAGR basis, and generate a core EBIT margin of 7–8 per cent as well as strong free cash flows from 2026 onwards. We are determined to reach these ambitions and have a clear roadmap towards achieving them. But let me reiterate what I have communicated before: the journey will not be linear. And in recent weeks, we have seen the external environment worsen considerably – a fact also echoed in the revised industry forecasts for 2024 and 2025 by third-party analysts. Strengthening our premium position We have grown faster than our premium peers this year, even as overall industry demand continues to soften and is now affecting the premium segment as well. Our Q3 sales rose by 3 per cent to 172,849 cars sold, with electrified models (fully electric and plug-in hybrid cars) representing 48 per cent of the total. That electrified share was the highest for ===== SIDA 4 ===== VOLVO CAR GROUP 4 OF 30 INTERIM REPORT THIRD QUARTER 2024 VOLVO CAR GROUP Yet to be successful in the marketplace of today, compa - nies need to be fast, agile and pragmatic in the face of con - stantly changing business conditions. That is the approach we are taking at Volvo Cars. However, given the accelerating weakness in the market and our focus on safeguarding value over volume, we expect minimal volume growth during the fourth quarter. As a result of this, we now anticipate full-year sales growth of 7–8 per cent instead of 12–15 per cent, which is more aligned to the current environment and brings our inventory and volume planning more in line with market realities. Safeguarding value and cash We are determined to safeguard value and cash as a com - pany, while working resolutely towards our 2026 ambitions. However, the revised sales guidance also affects our expec - tations for free cash flow for this year. We have actively adapted our sales and production plan to ensure reductions in inventory during the second half of the year. This is materi - alising according to plan, and we remain focused on diligent inventory management. At the same time, we are also mov - ing cars off our balance sheet in some European markets as part of our adjusted commercial approach. While we continue to drive our free cash flows towards neutral for 2025 and strong from 2026, we now anticipate our full-year free cash flow to be single digit-negative in SEK bn for 2024, rather than neutral. This is due to lower sales expectations in the fourth quarter and overall weakness in the market. We will continue to take other cash actions, and we remain focused on making our cost base as a whole more efficient. To this end, we are looking at both investments as well as fixed and variable costs to lower our cost structure and free up cash. Delivering on our long-term value creation ambitions also requires investments. As we explained in detail during our Capital Markets Day, we are investing in new technologies, infrastructure and cars to ensure that we become a leader in next-generation mobility. And as previously communicated, we expect these investments to peak during the 2024–25 period, all of which has been factored into our plans. Once this heavy investment phase is over, we will start generating strong free cash flows from 2026 onwards. We have five fully electric cars on the road, and five more in development. As previously communicated, we will start building the EX30 in our Ghent plant during the first half of 2025, with volumes ramping up in the second half. Starting with the EX90 all our new fully electric cars will be software-defined, reflecting our status as the first European car company to harness core computing technology. They will also benefit from our Superset tech stack: one set of hard - ware and software that will make our fully electric cars better over time and allows us to develop new cars in a more effi - cient and more profitable way. On top of that we continue to invest in our hybrid cars, exemplified by the updated, ready-for-a-new-era version of our iconic XC90 plug-in hybrid SUV. By refreshing these and other hybrid models, we maintain a balanced product portfo - lio for the current marketplace. All this will allow us to out - grow the premium car market and take market share. Looking ahead As said, the industry will remain under pressure. Hence, we are doubling down on our actions to tackle these external challenges, with the aim of building an even more resilient company and further reinforcing operational efficiencies. Our internal cost efficiency initiative has already resulted in lower variable costs and remains a crucial focus area. Improv - ing cost efficiency is an ongoing exercise, and a core part of how we operate as a company. We are confident that our strong and balanced product portfolio of BEVs, PHEVs and mild hybrids will remain attrac - tive going forward. Coupled with our premium brand posi - tioning, this will help us to partly mitigate the effects of a weakening market, but not completely. We cannot control the current geopolitical uncertainties and economic headwinds. But we can navigate them with speed and purpose, and perhaps most importantly, with a clear focus. Our focus is more than ever on preserving cash while creating value – for our shareholders, our customers and our employees. We have proven before that we can handle challenges, and we will handle them again. Business is not a game of perfec - tion, it is a game of progress. And despite current challenges, Volvo Cars is making progress. This is shown in our results, our technology, our talent, and ultimately our cars. Jim Rowan Chief Executive Officer ===== SIDA 5 ===== VOLVO CAR GROUP 5 OF 30 INTERIM REPORT THIRD QUARTER 2024 VOLVO CAR GROUP Operational progress Our industry is changing, and we strive to be a leader in that change. This section provides an update on the operational events from the quarter. ADJUSTED AMBITIONS In the beginning of September, some of Volvo Cars’ ambi - tions set for the coming years were adjusted. Volvo Cars aims for 90 to 100% of its global sales volume by 2030 to consist of electrified cars, meaning a mix of both fully electric and plug-in hybrid models – in essence, all cars with a cord. The remaining 0–10% will allow for a limited number of mild hybrid models to be sold, depending on mar - ket conditions and customer demand. This replaces Volvo Cars’ previous ambition for its line-up to be fully electric by 2030. However, with five fully electric cars already on the market and another five models in development, Volvo Cars remains committed to the long-term ambition of full electrifi - cation, and the long-term investment plan and product strat - egy remains geared towards fully electric cars. Volvo Cars will retain its position as an industry leader in electrification while continuing to develop its plug-in and mild hybrid cars, providing it with a balanced portfolio that serves as a clear bridge to an all-electric future. Volvo Cars also still aims to reach net zero greenhouse gas emissions by 2040. The ambitions adjustment is not expected to have any material impact on Volvo Cars’ capital expenditure plans. For the financial ambitions, rather than aiming for an absolute revenue target, the ambition is now to outgrow the premium car market until 2026 from 2023 on a CAGR basis (previous ambition revenue SEK 550–600 bn). Given the increased complexity especially in relation to global trade and tariffs, Volvo Cars also aims to achieve an EBIT margin excl. JVs and associates of 7–8% for the full year in 2026 (previous ambition “above 8%”). While we continue to drive our free cash flows towards neutral for 2025 and strong from 2026, we now anticipate our full-year free cash flow to be single digit-negative in SEK bn for 2024. GROWTH Outgrow the premium car market UNTIL 2026* *volume CAGR 2023–26 E B I T (excl. JV’s and Associates) 7–8% FY 2026 FREE CASH FLOW Neutral 2025 Strong 2026+ AMBITIONS 50–60% ELECTRIFIED 90–100% ELECTRIFIED 30–35% CO 2 REDUCTION PER CAR (vs 2018 baseline) 65–75% CO 2 REDUCTION PER CAR (vs 2018 baseline) 2025 2030 ===== SIDA 6 ===== VOLVO CAR GROUP 6 OF 30 INTERIM REPORT THIRD QUARTER 2024 VOLVO CAR GROUP Sustainability Due to the updated electrification ambitions, Volvo Cars’ ambition for CO 2 reduction is updated to reach a 30 to 35% reduction per car by 2025, and 65 to 75% reduction per car by 2030, compared to the 2018 base year. With the adjust - ment, Volvo Cars still retains the position as an industry leader in electrification. Continuing to make progress on these ambitions, for the first nine months Volvo Cars reached a CO 2 reduction of 25%, compared to the 2018 base year. The main contributor for the reduction is the increased sale of fully electric and plug-in hybrid vehicles. In the third quarter, Volvo Cars made its first deliveries of the new fully electric SUV, the EX90. Related to this, Volvo Cars has also published the life cycle assessment report for the EX90, showing a total carbon footprint which is about half as much as the XC90 mild hybrid1). Volvo Cars is also continuing to strengthen the company’s position on sustainability matters. The company has pub - lished its first position papers on nature and biodiversity as well as on sustainable materials. 1) Based on a total driving distance of 200,000 kilometres. The total car - bon footprint depends on different factors such as grid mix for charging. The above reference car is based on European average electricity mix. CO2-reduction per car CO2-emissions per car, tonnes Reduction, % 20182) 54.9 — 2024 Jan–Sep 2) 41.3 25 2025 ambition 2) 35.7–38 .4 30–35 2030 ambition 2) 13.7–19. 2 65–75 2) The CO 2-emissions do not include production and distribution of fuel and electricity. 0 40 30 10 20 50 60 55 54 52 50 47 44 41 36/endash.case38 14/endash.case19 25% Ambition 65/endash.case75% Ambition 30/endash.case35% Ambition CO 2 reduction (tonnes per car) Actual 2018 2019 2020 2021 2022 2023 2024 Jan–Sep 20302025 ===== SIDA 7 ===== VOLVO CAR GROUP 7 OF 30 INTERIM REPORT THIRD QUARTER 2024 VOLVO CAR GROUP Volvo Cars Capital Markets Day On 5 September, Volvo Cars held its Capital Markets Day in World of Volvo, Gothenburg, Sweden. At the event, the com - pany presented its strategy, including the roadmap to our updated ambitions, introduction of the Superset tech stack and the SPA3 platform. Recordings and presentation mate - rial from the event can be found on the Volvo Cars Investor Relations website (investors.volvocars.com/cmd). Volvo Cars adjusts key ambitions – remains committed to fully electric future In the beginning of September, Volvo Cars announced adjustments to its ambitions regarding electrification, CO 2, growth and EBIT. The long-term aim to become a fully electric car company remains, as well as the ambition to reach net zero green - house gas emissions by 2040. However, due to changing market conditions and customer demands, Volvo Cars has adjusted its ambitions. For more details, see page 5. All future fully electric Volvo cars will originate from one single technology stack In September, Volvo Cars revealed a new, game-changing approach to technology. Starting with the EX90, Volvo Cars’ all future fully electric cars will be based on the same funda - mental core of systems, modules, software and hardware, called the Volvo Cars Superset tech stack. It’s a single tech and software base that contains all modules and functionali - ties that Volvo Cars will use in the future product line-up. Like a set of building blocks, it can be configured in many dif - ferent ways. Each new car will be a selection, or a subset, of building blocks from the Superset tech stack, and Volvo Cars will continuously improve and grow the tech stack. Volvo Cars is also developing a new electric technology base, called SPA3 (Scalable Product Architecture), which will be underpinned by the Volvo Cars Superset tech stack. By hav - ing a scalable SPA3 architecture, Volvo Cars create increased synergies and improve technology efficiency when it comes to core computing, batteries, e-motors, megacast - ing and modular manufacturing – all whilst improving cus - tomer experience. The first car to be built on SPA3 will be the forthcoming all-electric EX60 midsize SUV. Volvo Cars expands collaboration with NVIDIA In the beginning of September, Volvo Cars announced that the collaboration with NVIDIA will be expanded. The Volvo EX90 is the first truly software-defined Volvo car, built on a centralised core compute architecture, made possible in col - laboration with NVIDIA. This setup enhances everything from AI-based safety features to the customer experience, all while paving the way for safe autonomous driving. Later this decade, Volvo Cars will introduce cars built on NVIDIA DRIVE Thor, which will enable the company to deploy even more advanced driving assistance and safety features, develop autonomous driving, and introduce generative AI-based capabilities and in-car experiences. Successful launch of new Volvo XC90 On 4 September, Volvo Cars launched the new and improved Volvo XC90. The XC90 is a Volvo Cars icon, and thanks to a broad suite of technology and design updates inside and out, the award-winning and best-selling flagship hybrid SUV is now better than ever before. It’s a premium seven-seater with ‘comfortable’ as its middle name, it’s one of the safest cars on the road, and in plug-in hybrid form it’s an outstand - ing electric car with a back-up plan, offering more than 70 kilometres of fully electric range on a single charge under the “Worldwide harmonised Light vehicle Test Procedure” (WLTP) testing cycle. Volvo Cars takes full ownership of HaleyTek In August, Volvo Cars took full ownership of HaleyTek, a Gothenburg-based developer for Android-powered infotain - ment systems. Prior to the transaction, Volvo Cars held 60% of the shares in HaleyTek and consolidated the company. The remaining 40% was held by the global mobility technology company ECARX. The acquisition of the remaining stake in HaleyTek is a strategic step for Volvo Cars to further strengthen its technological capability in software develop - ment for current cars and take ownership over technologies crucial to the company’s future products. Quarterly highlights ===== SIDA 8 ===== VOLVO CAR GROUP 8 OF 30 INTERIM REPORT THIRD QUARTER 2024 VOLVO CAR GROUP SALES AND MARKET DEVELOPMENT The overall global passenger car market for the third quarter was in line with the same period last year. The broader mar - ket landscape remains uncertain and complex, and in addi - tion the demand is relatively soft. The global automotive pro - duction volumes for the full year are forecasted to slightly decrease compared to previous year according to S&P Global. Despite the complex economic and geopolitical landscape and weak consumer sentiment in some regions, Volvo Cars has strengthened its market position and retail sales increased by 3% compared with the third quarter 2023, led by the electrified cars, which represent 48% of total sales. Volvo Cars’ BEV sales doubled compared to the third quarter last year, and BEV share accounted for 25% of retail sales. Wholesales increased by 3% and production decreased by 13% with improved inventory levels. The growth in retail sales was mainly driven by a strong performance in Europe as well as the continuous success of the EX30. EX90, the fully electric large SUV, started being delivered to customers during the third quarter and will gradually ramp up during the remainder of the year. Volvo Cars’ market share per propulsion type 1) 2) Jan–Aug 2024 Jan–Aug 2023 BEV 1.73% 1.21% PHEV 3.98% 5.08% ICE (incl. mild hybrids) 0.73% 0.72% Total 1.05% 0.96% Total industry volume share and growth by propulsion type 1) 2) Jan–Aug 2024 Growth YoY BEV 15% 19% PHEV 6% 41% ICE (incl. mild hybrids) 79% –5% Total 100% 2% 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 report our market share in relation to the global pas- senger market. 2) Source: Includes content supplied by S&P Global Mobility Industry Performance in October 2024, capturing more than 85 per cent of total world sales per August. All rights reserved. Third quarter financial summary Europe The overall European passenger car market decreased by 6% compared to the same period last year, whereof the BEV seg - ment decreased by 10% and the PHEV segment decreased by 15%. The market is affected by the high interest rates, general weak economic environment and softened consumer confidence, although there are variances between different countries. Volvo Cars’ retail sales increased by 31%, with UK and Germany at the top selling 18.8 and 14.1 thousand cars respectively. The share of BEVs and PHEVs accounted for 68 (57)% in the quarter, whereof BEV sales accounted for 40 (21)% of retail sales. China The total Chi nese passenger car market increased by 5%, whereof the BEV and PHEV segments increased by 23% and 1 13% respectively. The demand for combustion engine cars continues to decline, as a large part of the Chinese mar - ket is moving to electrification. The overall competition in the Chinese car market continued to be fierce, with multiple EV brands gaining attractions in the mass market segment. Volvo Cars’ retail sales decreased by 23%. BEV and PHEV share combined accounted for 1 1 (8)% in the quarter, whereof BEV sales accounted for 2 (2)% of retail sales. US The total US passenger car market declined by 2% compared to the same period 2023, whereof the BEV segment increased by 1 1% and the PHEV segment decreased by 20%. Higher interest rates, weaker consumer spending and fewer selling days have had an impact. Volvo Cars retail sales decreased by 12% compared to the same period last year. BEV sales were partly held back due to the decision to postpone the launch date of the EX30 due to the recently increased tariffs. BEV and PHEV share com - bined accounted for 39 (27)% in the quarter, whereof BEV share alone accounted for 6 (10)% of retail sales. Other markets Volvo Cars’ retail sales in other markets increased by 3%, with South America as a strong region. The markets with highest retail sales were South Korea, Canada and Japan. The share of BEV and PHEV sales combined in other markets was 47 (33)%, whereof BEV accounted for 29 (15)%. Sales development per carline The SUVs, comprising of Volvo Cars’ XC and EX models, accounted for 82 (80)% of total sales, driven by the best- selling models XC60 and XC40. During the third quarter, the EX30 continued to drive year-over-year growth and the first EX90s were delivered to customers. The Sedan and Wagon (incl. MPV) segments’ share of total sales amounted to 12 (15)% and 6 (5)% respectively. ===== SIDA 9 ===== VOLVO CAR GROUP 9 OF 30 INTERIM REPORT THIRD QUARTER 2024 VOLVO CAR GROUP 3 Months 9 Months 12 Months Retail sales, k units Jul–Sep 2024 Jul–Sep 2023 ∆% Jan–Sep 2024 Jan–Sep 2023 ∆% LTM 2023 ∆% Europe 80.8 61.8 31 274. 4 208.8 31 360.4 294.8 22 China 34.9 45.4 –23 113 . 0 123.9 –9 159. 2 170.1 –6 US 28.5 32.4 –12 89.5 92.1 –3 126 .1 128.7 –2 Other 28.7 27. 9 3 83.9 84.3 — 114 .7 115 .1 — Retail sales total 172 . 8 167. 5 3 560.9 509.2 10 760.5 708.7 7 Electrified cars 8 3 .1 56.8 46 256.7 193.2 75 329.5 266.0 24 whereof BEVs 42.8 21.4 100 133.6 80.6 125 166.3 113 . 4 47 Electrified cars share 48% 34% 46% 38% 43% 38% whereof BEV share 25% 13% 24% 16% 22% 16% Wholesales 171. 3 165.6 3 575.5 528.4 9 779.3 732.3 6 Production volume 146.6 169.0 –13 594.0 548.5 8 812.3 766.7 6 3 Months 9 Months 12 Months Top 10 Retail sales by market, k units Jul–Sep 2024 Jul–Sep 2023 ∆% Jan–Sep 2024 Jan–Sep 2023 ∆% LTM 2023 ∆% China 34.9 45.4 –23 113 . 0 123.9 –9 159. 2 170.1 –6 US 28.5 32.4 –12 89.5 92.1 –3 126 .1 128.7 –2 UK 18.8 12.3 53 49.2 37.1 32 62.2 50.1 24 Germany 14.1 9.9 42 45.6 30.5 49 60.6 45.5 33 Sweden 8.4 7. 2 17 31.8 27. 2 17 45.6 41.0 11 Netherlands 6 .1 2.3 171 23.8 11. 6 105 28.5 16.3 75 Belgium 5.6 5.0 11 20.7 16.9 22 27. 6 23.9 16 Italy 4.6 4.0 16 16.6 14.5 14 21.2 19.2 11 South Korea 3.9 4.0 –3 11.1 12.5 –11 15.6 15.3 2 Canada 3.5 3.4 2 9.9 9.1 9 13.6 12.3 11 3 Months 9 Months 12 Months Retail sales by model, k units Jul–Sep 2024 Jul–Sep 2023 ∆% Jan–Sep 2024 Jan–Sep 2023 ∆% LTM 2023 ∆% BEV EX30 27. 2 — — 41.8 — — 75.6 0.6 — EX40 10.7 14.5 –26 75.0 53.5 40 64.0 75.7 –15 EC40 4.5 6.9 –35 15.4 27. 2 –43 25.3 37.1 –32 EM90 0.3 — — 1.3 — — 13 — — EX90 0.1 — — 0.1 — — 0.1 — — Non-BEV XC60 48.4 55.0 –12 16 4.1 161.0 2 231.8 228.6 1 XC40 27.7 32.4 –15 88.0 92.9 –5 120.0 125.0 –4 XC90 24.0 25.5 –6 7 7. 2 7 7. 0 — 107.7 107. 5 — S60 11.1 10.8 2 3 4.1 28.7 19 45.5 40.2 13 S90 9.1 13.5 –33 30.9 36.6 –16 43.6 49.3 –12 V60 7. 5 5.9 27 26.2 22.2 18 34.5 30.4 13 V90 2.3 3.0 –23 7. 0 10.2 –31 11. 0 14.2 –22 Total 172 . 8 167. 5 3 560.9 509.2 10 760.5 708.7 7 V60 and V90 include the cross-country versions. ===== SIDA 10 ===== VOLVO CAR GROUP 10 OF 30 INTERIM REPORT THIRD QUARTER 2024 VOLVO CAR GROUP INCOME AND RESULT The comparative figures refer to the consolidated income statement of the third quarter 2023 if not otherwise stated. Volvo Cars’ revenue amounted to SEK 92.8 (92.0) bn. Wholesale volumes increased by 3% to 171.3 (165.6) thousand cars, resulting in a SEK 5.0 bn increase in revenue. However, the revenue was impacted by unfavourable foreign exchange rate effects of SEK –1.8 bn, deferred revenue related to rental sales amounting to SEK –1.6 bn, as well as sales channel mix and pricing amounting to SEK –1.6. See complete revenue bridge below. Gross income increased by 5% to SEK 19.0 (18.1) bn, resulting in a gross margin of 20.5 (19.6)%. The gross margin increased mainly due to lower material costs. Gross income was impacted by sales mix and pricing amounting to SEK –2.4 bn. Foreign exchange rate effects in cost of sales were positive amounting to SEK 1.2 bn. The net effect of foreign exchange rates in gross income was negative amounting to SEK –0.6 bn. Research and development expenses increased by 17% to SEK –3.4 (–2.9) bn, primarily related to less projects reaching capitalisation phase as a percentage of total spend. For details regarding research and development expenses, see the Research and development table on page 1 1. Selling expenses remained consistent with the prior year and amounted to SEK –6.6 (–6.6) bn. Similarly, administrative expenses amounted to SEK –3.0 (–2.9) bn. Other operating income and expenses decreased to SEK –0.3 (0.5) bn mainly related to negative foreign exchange rate effects from the valuation of operating assets and liabilities. Share of income in JVs and associates increased to SEK 0.1 (–1.7) bn, mainly as an effect of less recognised operational losses from Polestar. Operating income (EBIT) excluding share of income in JVs and associates, decreased to SEK 5.7 (6.1) bn, correspond - ing to a margin of 6.2 (6.7)%, impacted by unfavourable foreign exchange rate effects from the valuation of operating assets and liabilities, as well as higher research and development expenses. EBIT amounted to SEK 5.8 (4.5) bn, resulting in an EBIT margin of 6.2 (4.8)%. The exchange rate effects had a negative impact on EBIT of SEK –1.2 bn, see the table below. Net financial items amounted to SEK 0.3 (0.3) bn. The effective tax rate decreased to 28.0 (31.8)%, mainly due to lower non-tax deductible loss related to share of income in JVs and associates, offset by increased withholding tax cost on dividends. Net income was SEK 4.4 (3.2) bn and 4.7 (3.5)% in relation to revenue. Basic earnings per share amounted to SEK 4.33 (3.34). Items affecting comparability, SEK bn Jul–Sep 2024 Jul–Sep 2023 Restructuring costs — 0.3 Total — 0.3 Changes to Revenue, SEK bn Jul–Sep Revenue Q3 2023 92.0 Volume 5.0 Deferred revenue –1.6 Sales mix and pricing –1.6 Sale of licences – 0.1 Foreign exchange rates –1. 8 Contract manufacturing –1. 2 Other1) 2.1 Revenue Q3 2024 92.8 Change, % 1 1) Including used cars, earned emissions credits, parts and accessories. Changes to Operating income, SEK bn Jul–Sep EBIT Q3 2023 4.5 Volume — Sales mix and pricing –2.4 Government grants – 0.1 Sale of licences – 0.1 Foreign exchange rates –1. 2 Share of income in JVs and associates 1.8 Items affecting comparability –0.3 Other 2) 3.6 EBIT Q3 2024 5.8 Change, % 30 2) Mainly including cost efficiencies, used cars, emissions credits and parts and accessories. ===== SIDA 11 ===== VOLVO CAR GROUP 11 OF 30 INTERIM REPORT THIRD QUARTER 2024 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% Q4 2021 2022 2023 2024 Q1 Q2 Q3 Q2 Q1 Q2Q4Q3Q1Q4 Q3 Revenue, SEKbn Gross margin, % Revenue & Gross Margin 0 10 8 4 6 2 12 16 14 0% 10% 8% 4% 6% 2% 12% 16% 14% Q4 2021 2022 2023 2024 Q1 Q2 Q3 Q2 Q1 Q2Q4Q3Q1Q4 Q3 Operating income (EBIT), SEKbn EBIT margin excl. share of income in JV’s & associates, % Operating Income (EBIT) & EBIT Margin Operating income (EBIT) excl. share of income in JV’s & associates, SEKbn EBIT margin, % 3 Months 9 Months Full year Research and development, SEK m Jul–Sep 2024 Jul–Sep 2023 ∆% Jan–Sep 2024 Jan–Sep 2023 ∆% 2023 Research and development spending –6,554 –5,894 11. 2 –20,420 –19,615 4.1 –26,943 Capitalised development costs 4,18 3 4,151 0.8 13,708 13,941 –1.7 18,912 Amortisation of research and development –1,0321) –1,166 –11. 5 –5,2431) –3,496 50.0 –4,853 Research and development expenses –3,403 –2,909 17. 0 –11, 955 –9,170 30.4 –12,884 1) Ready for use dates for EX90 and contract manufactured PS3 assets, based on the same platform, were reassessed during the quarter due to adjusted customer car production. The adjustment resulted in a decrease in Research and development expenses in the quarter with SEK 1,006 m. ===== SIDA 12 ===== VOLVO CAR GROUP 12 OF 30 INTERIM REPORT THIRD QUARTER 2024 VOLVO CAR GROUP CASH FLOW The comparative figures for the cash flow items refer to the consolidated cash flow statement for the third quarter 2023 unless otherwise stated. The comparative figures for the balance sheet items refer to the consolidated balance sheets of December 31, 2023 unless otherwise stated. Total cash and cash equivalents, including marketable securities, amounted to SEK 43.5 (57 .8) bn. Net cash was SEK 14.5 (27 .5) bn, the decrease was largely driven by investing activities. Liquidity amounted to SEK 67 .4 (75.0) bn, including undrawn credit facilities of SEK 23.9 (17 .2) bn. Cash flow from operating activities Cash flow from operating activities amounted to SEK 9.2 (10.1) bn. The amount consists of operating income of SEK 5.8 (4.5) bn, adjusted for depreciation and amortisation of SEK 4.6 (4.2) bn, together with paid income tax of SEK –1.3 (–1.0) bn. The change in working capital amounted to SEK 2.9 (1.0) bn, mainly driven by seasonal inventory decrease of SEK 2.9 (–4.5) bn, but also by changes in other working capital due VAT receivables of SEK –2.3 (–0.4) bn. Cash flow from investing activities Cash flow from investing activities amounted to SEK –9.6 (–8.4) bn. Cash flow from investments in tangible assets amounted to SEK –5.1 (–3.2) bn, mainly driven by the industrial structure to prepare for future products. Investments in intangible assets amounted to SEK –4.1 (–4.5) bn, as a result of continuous investments in new and upcoming car models and new technology, such as electrification technology and Advanced Driver Assistance Systems. Cash flow from financing activities Cash flow from financing activities amounted to SEK 3.4 (–0.2) bn. The changes were mainly related to matured marketable securities of SEK 3.5 bn. –20 –4 –12 –8 –16 20 16 12 –20 –4 –12 –8 –16 20 16 12 0 8 4 0 8 4 Q4 2022 2023 2024 Q1 Q2 Q1 Q2Q4Q3 Q3 Total, SEKbn LTM*, SEKbn Cash flow from Operating and Investing activities *Last twelve months 3 Months 9 Months Full year Cash flow statement, SEK bn Jul–Sep 2024 Jul–Sep 2023 Jan–Sep 2024 Jan–Sep 2023 2023 Cash flow from operating activities 9.2 10.1 21.1 24.7 42.9 Cash flow from investing activities –9.6 –8.4 –33.5 –39.7 –51.8 Cash flow from operating and investing activities –0.4 1.7 –12.5 –15.0 –9.0 Cash flow from financing activities 3.4 –0.2 6.8 3.9 –5.3 Cash flow for the period 3.0 1.5 –5.6 –11.1 –14.2 ===== SIDA 13 ===== VOLVO CAR GROUP 13 OF 30 INTERIM REPORT THIRD QUARTER 2024 VOLVO CAR GROUP First nine months INCOME AND RESULT Volvo Cars’ revenue amounted to SEK 288.1 (289.9) bn, supported by wholesale volumes, which increased by 9% to 575.5 (528.4) thousand cars. However, revenue was impacted by higher deferred revenue related to rental sales, lower contract manufacturing, sales channel mix and pricing, as well as unfavourable foreign exchange rate effects. Gross income increased to SEK 60.3 (54.6) bn, resulting in a gross margin of 20.9 (18.8)%, an increase mainly due to lower material cost, as well as increased volume. Operating income (EBIT) excluding share of income in JVs and associates, increased to SEK 20.7 (18.9) bn, corre - sponding to a margin of 7 .2 (6.5)%. EBIT amounted to SEK 18.5 (14.6) bn, resulting in an EBIT margin of 6.4 (5.0)%. The exchange rate effects had a negative impact on EBIT of SEK –1.8 bn. Net financial items decreased to SEK 0.5 (0.9) bn. The effective tax rate decreased to 28.3 (30.7)%, mainly due to lower non-tax deductible loss related to share of income in JVs and associates and associates, offset by increased with - holding tax cost on dividends. Net income was SEK 13.6 (10.7) bn and 4.7 (3.7)% in relation to revenue. Basic earn - ings per share amounted to SEK 1.41 (1.01). CASH FLOW Total cash and cash equivalents, including marketable securities, amounted to SEK 43.5 (57 .8) bn. Net cash was SEK 14.5 (27 .5) bn, the decrease was largely driven by investing activities. Liquidity amounted to SEK 67 .4 (75.0) bn, including undrawn credit facilities of SEK 23.9 (17 .2) bn. Cash flow from operating activities was positive and amounted to SEK 21.1 (24.7) bn. Working capital amounted to SEK –9.7 (–4.0) bn, mainly impacted by inventory due to increased ramp up of EX30 and cars under repurchase contracts. Cash flow from investing activities amounted to SEK –33.5 (–39.8) bn. Volvo Cars continued to invest in the industrial structure, new technology, upcoming car models and the transformation into a fully electric car company. Cash flow from financing activities amounted to SEK 6.8 (3.9) bn, mainly related to matured marketable securities. EQUITY Total equity increased to SEK 143.0 (130.5) bn, resulting in an equity ratio of 37 .0 (36.6)%. The change is mainly attributable to a positive net income of SEK 13.6 bn, partially offset by a negative effect on other comprehensive income of SEK –0.6 bn. The change in other comprehensive income is related to a negative change in fair value of cash flow hedge reserve related to currency and commodity price risks of SEK –0.6 bn (net of tax). The change in value of cash flow hedges is mainly due to depreciated SEK compared to most of the major cur- rencies and increased prices for raw material. Items affecting comparability, SEK bn Jan–Sep 2024 Jan–Sep 2023 Restructuring costs — –0.6 Total — –0.6 Changes to Revenue, SEK bn Jan–Sep Revenue in 2023 289.9 Volume 25.7 Deferred revenue –13.8 Sales mix and pricing –5.6 Sale of licences 0.0 Foreign exchange rates – 4.1 Contract manufacturing –8.7 Other1) 4.7 Revenue in 2024 28 8 .1 Change, % –1 1) Including used cars, earned emissions credits, parts and accessories. Changes to Operating income, SEK bn Jan–Sep EBIT in 2023 14.6 Volume 1.6 Sales mix and pricing – 4.1 Government grants –0.2 Sale of licenses – 0.1 Foreign exchange rates –1. 8 Share of income in JVs and associates 2.1 Items affecting comparability 0.6 Other 2) 5.8 EBIT in 2024 18.5 Change, % 27 2) Mainly including cost efficiencies, used cars, emissions credits and parts and accessories. ===== SIDA 14 ===== VOLVO CAR GROUP 14 OF 30 INTERIM REPORT THIRD QUARTER 2024 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 25. EMPLOYEES During the first nine months of 2024, Volvo Car Group employed 42.6 (43.9) thousand full-time employees (FTEs) and 3.6 (3.9) thousand agency personnel. These decreases are mainly due to the cost-efficiency initiatives started during the first half of 2023. 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 2023 page 51. We consider the risk and uncertainty factors to remain the same as described in the annual report except for the following update: Macroeconomics and geopolitical uncertainty The uncertain macro and geopolitical environment continues, including elevated interest rates, raw material price volatility, ongoing geopolitical complexity leading to new legislations and regulatory changes such as subsidies, tariffs and duties or application of these by relevant authorities. The uncertain - ties in the financial markets are still high. The risks of further impact on demand from higher interest rate levels and lower consumer confidence, remain at an elevated level. ===== SIDA 15 ===== 15 OF 30 INTERIM REPORT THIRD QUARTER 2024 VOLVO CAR GROUPVOLVO CAR GROUP ===== SIDA 16 ===== Consolidated Income Statements SEK m Note Jul–Sep 2024 Jul–Sep 2023 Jan–Sep 2024 Jan–Sep 2023 Full year 2023 Revenue 2 92,783 92,045 28 8 ,115 289,902 399,343 Cost of sales –73 ,747 –73 , 9 6 8 –227,825 –235,307 –321,916 Gross income 19,036 18,077 60,290 54,595 7 7, 427 Research and development expenses –3,403 –2,909 –11, 955 –9,170 –12,884 Selling expenses –6,623 –6,576 –19,18 4 –18,977 –26,056 Administrative expenses –3,001 –2,945 –8,727 –9,179 –12,539 Other operating income and expenses –299 501 297 1,621 –381 Share of income in joint ventures and associates 80 –1,690 –2,256 –4,339 –5,628 Operating income 5,790 4,458 18,465 14,551 19,939 Interest income and similar credits 479 658 1,750 1,755 2,495 Interest expenses and similar charges –385 –290 –1,431 –842 –1,120 Other financial income and expenses 3 170 –104 190 15 –454 Income before tax 6,054 4,722 18,974 15,479 20,860 Income tax –1,698 –1,503 –5,377 – 4,745 –6,794 Net income 4,356 3,219 13,597 10,734 14,066 Net income attributable to Owners of the parent company 4,208 3,001 12,898 9,944 13,053 Non-controlling interests 148 218 699 790 1,013 Basic earnings per share, SEK 5 1.41 1.01 4.33 3.34 4.38 Diluted earnings per share, SEK 5 1.41 1.01 4.33 3.34 4.38 VOLVO CAR GROUP 16 OF 30 INTERIM REPORT THIRD QUARTER 2024 ===== SIDA 17 ===== SEK m Jul–Sep 2024 Jul–Sep 2023 Jan–Sep 2024 Jan–Sep 2023 Full year 2023 Net income for the period 4,356 3,219 13,597 10,734 14,066 Other comprehensive income Items that will not be reclassified subsequently to income statement: Remeasurements of provisions for post-employment benefits 109 1,555 35 2,412 –1, 815 Tax on items that will not be reclassified to income statement –10 –331 –3 –463 424 Items that have been or may be reclassified subsequently to income statement: Translation difference on foreign operations 32 –751 3 36 –1, 240 Translation difference of hedge instruments of net investments in foreign operations 93 211 –148 –396 131 Change in fair value of cash flow hedge related to currency and commodity price risks 1,461 865 –688 –2,315 1,976 Tax on items that have been or may be reclassified to income statement –320 –222 172 557 –435 Other comprehensive income, net of income tax 1,365 1,327 –629 –169 –959 Total comprehensive income for the period 5,721 4,546 12,968 10,565 13 ,107 Total comprehensive income attributable to Owners of the parent company 5,631 4,309 12,195 9,808 12,343 Non-controlling interests 90 237 773 757 764 5,721 4,546 12,968 10,565 13 ,107 Consolidated Comprehensive Income VOLVO CAR GROUP 17 OF 30 INTERIM REPORT THIRD QUARTER 2024 ===== SIDA 18 ===== Consolidated Balance Sheets SEK m Note 30 Sep 2024 31 Dec 2023 ASSETS Non-current assets Intangible assets 81,166 72,10 4 Tangible assets 97,73 4 8 4 ,113 Financial assets Investments in joint ventures and associates 4 11, 8 55 14,142 Other securities holdings 1) 3 12,035 11, 9 4 3 Other interest-bearing receivables, non-current 1) 3 1,571 1,363 Derivative assets, non-current 3 1,820 2,094 Deferred tax assets 11,10 3 10,135 Other non-current assets 1) 3 , 974 3,513 Total non-current assets 221,258 199,407 Current assets Inventories 78 ,711 57, 0 5 8 Financial assets Accounts receivable 1) 4 23,878 19,257 Other interest-bearing receivables, current 1) 3 1,295 1,483 Derivative assets, current 3 2,186 1,988 Marketable securities 3 565 9,918 Cash and cash equivalents 3 42,965 47, 8 61 Current tax assets 2,342 997 Other current assets 1) 13, 243 18,393 Total current assets 165,185 156,955 TOTAL ASSETS 386,443 356,362 EQUITY & LIABILITIES Equity Equity attributable to owners of the parent company 138,361 126,371 Non-controlling interests 4,676 4 ,114 Total equity 143,037 130,485 Non-current liabilities Provisions for post-employment benefits 7, 627 7, 610 Provisions, non-current 8,695 7, 5 8 2 Financial liabilities Liabilities to credit institutions, non-current 3 4,16 4 4,562 Bonds, non-current 3 18,618 18,087 Other interest-bearing liabilities, non- current 1) 3 2,275 1,662 Derivative liabilities, non-current 3 402 424 Lease liabilities, non-current 6,136 4,786 Contract liabilities to customers, non-current 9,312 8 ,14 8 Deferred tax liabilities 12,500 8,293 Other non-current liabilities 1) 2,027 3,726 Total non-current liabilities 71,756 64,881 Current liabilities Provisions, current 13,094 13 ,117 Financial liabilities Accounts payable 4 65,693 62,304 Liabilities to credit institutions, current 3 838 937 Bonds, current 3 5,643 6,660 Other interest-bearing liabilities, current 1) 3 17, 93 3 7, 0 6 5 Derivative liabilities, current 3 1,408 1,055 Lease liabilities, current 1,853 1,242 Contract liabilities to customers, current 29,727 30, 817 Current tax liabilities 1,098 1,607 Other current liabilities 1) 4 34,363 36,193 Total current liabilities 171,650 160,996 TOTAL EQUITY & LIABILITIES 386,443 356,362 1) In the first quarter 2024, Volvo Cars changed the presentation of financial items. Presentation of the figures for 31 December 2023 have been adjusted accordingly. The change has no impact on EBIT. VOLVO CAR GROUP 18 OF 30 INTERIM REPORT THIRD QUARTER 2024 ===== SIDA 19 ===== Consolidated Statement of Changes in Equity SEK m 30 Sep 2024 31 Dec 2023 Opening balance 130,485 117, 278 Net income for the period 13,597 14,066 Other comprehensive income, net of income tax –629 –959 Total comprehensive income 12,968 13 ,107 Transactions with owners Divestment of non-controlling interest 1) –210 — Distribution of shares 2) –92 — Acquisition of treasury shares –190 — Share-based payments 76 109 Change in the Group’s composition — –9 Transactions with owners –416 100 Closing balance 143,037 130,485 Attributable to Owners of the parent company 138,361 126,371 Non-controlling interests 4,676 4 ,114 Closing balance 143,037 130,485 1) Refers to the divestment of non-controlling interest in HaleyTek AB. 2) Refers to distribution of Polestar shares. VOLVO CAR GROUP 19 OF 30 INTERIM REPORT THIRD QUARTER 2024 ===== SIDA 20 ===== Consolidated Statement of Cash Flows SEK m Jul–Sep 2024 Jul–Sep 2023 Jan–Sep 2024 Jan–Sep 2023 Full year 2023 OPERATING ACTIVITIES Operating income 5,790 4,458 18,465 14,551 19,939 Depreciation and amortisation of non-current assets 4,579 4,193 15,972 12,527 17, 4 49 Dividends received from joint ventures and associates 100 — 213 88 88 Interest and similar items received 479 658 1,750 1,755 2,495 Interest and similar items paid –156 –253 –1,369 –1,042 –1,710 Other financial items 9 –29 –728 40 178 Income tax paid –1, 259 –951 –3,766 –4,078 –4,486 Adjustments for other non-cash items –3,233 1,039 229 4,899 6,087 6,309 9,115 30,766 28,740 40,040 Movements in working capital Change in inventories 2,903 –4,549 –21,182 –12,046 –11, 3 41 Change in accounts receivable 335 4,195 –4,533 4,150 4,750 Change in accounts payable –857 –802 4,292 – 5 , 274 –2,918 Change in provisions 2,069 472 –188 –2 , 611 –1,914 Change in contract liabilities to customers 788 2,058 1,907 6,131 8,707 Change in other working capital –2,335 –365 9,992 5,637 5,543 Cash flow from movements in working capital 2,903 1,009 –9,712 – 4,013 2,827 Cash flow from operating activities 9,212 10,124 21,054 24,727 42,867 INVESTING ACTIVITIES Investments in shares and participations –1,041 –273 –2,363 –820 –1,151 Divestment in shares and participations — –178 –217 –178 –178 Loans to affiliated companies –17 –535 –76 –9,696 –11, 9 9 0 Investments in intangible assets –4,075 – 4,514 –14,695 –15,453 –20,680 Investments in tangible assets –5,091 –3,202 –16,977 –13,989 –18,485 Disposal of tangible assets 611 232 791 373 642 Other — 75 — — — Cash flow from investing activities –9,613 –8,395 –33,537 –39,763 –51,842 Cash flow from operating and investing activities –401 1,729 –12,483 –15,036 –8,975 FINANCING ACTIVITIES Proceeds from credit institutions –27 –39 34 1,546 3,970 Proceeds from bond issuance — — 5,857 1,500 1,500 Acquisition of treasury shares –190 — –190 — — Repayment of bond — — –6,936 –2,000 –2,000 Repayment of liabilities to credit institutions –59 17 –562 –359 –673 Repayment of interest-bearing liabilities –526 –423 –1,4 45 –1, 276 –1,747 Investments in marketable securities — –335 — –695 –10,792 Matured marketable securities 3 , 474 335 9,700 4 ,116 4 ,115 Other 692 232 376 1,056 376 Cash flow from financing activities 3,364 –213 6,834 3,888 –5,251 Cash flow for the period 2,963 1,516 –5,649 –11,14 8 –14,226 Cash and cash equivalents at beginning of period 3 9, 911 51,701 47, 8 61 63,743 63,743 Exchange difference on cash and cash equivalents 91 –451 753 171 –1,656 Cash and cash equivalents at end of period 42,965 52,766 42,965 52,766 47, 8 61 VOLVO CAR GROUP 20 OF 30 INTERIM REPORT THIRD QUARTER 2024 ===== SIDA 21 ===== NOTE 1 – Accounting policies This interim report has been prepared in accordance with IAS 34 – Interim Financial Reporting and the Swedish Annual Accounts Act (1995:1554), with the required disclosures made in the notes to the financial statements and elsewhere in the interim report. 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 2023 (available at investors.volvocars.com). The IASB has published amendments to standards effective on or after 1 January 2024. These amendments have not had a material impact on the financial statements. NOTE 2 – Revenue Revenue allocated to geographical regions SEK m Jul–Sep 2024 Jul–Sep 2023 Jan–Sep 2024 Jan–Sep 2023 Full year 2023 Europe 47 ,400 39,960 149,630 130,551 184,894 of which Sweden1) 12,887 10,382 33,809 35,125 47,029 of which United Kingdom 8,477 4,663 21,962 14,742 21,661 of which Germany 6,973 5,681 20,824 16,475 24,942 US 17,70 0 16,952 50, 212 56 ,114 75,172 China 13,033 18 , 811 45,244 55,036 73,545 Other markets 14,650 16,322 43,029 48,201 65,732 of which South Korea 1,690 1,941 5,198 6 ,111 8,336 of which Japan 1,576 1,798 4,401 6,300 7, 673 Total 92,783 92,045 288, 1 15 289,902 399,343 Revenue allocated to category SEK m Jul–Sep 2024 Jul–Sep 2023 Jan–Sep 2024 Jan–Sep 2023 Full year 2023 Sales of new cars 67,121 68,465 220,549 221,156 3 07, 5 49 Sales of used cars 7, 0 0 8 4,368 17, 914 12,361 18,505 Sales of parts and accessories 9,556 9,235 28,628 27,781 37,170 Revenue from subscription, leasing and rental business 1,820 1,603 4,750 4,129 5,463 Sales of licences and royalties 164 252 630 660 798 Contract manufacturing 5,408 6,781 10,147 19,166 22,357 Emissions credits 174 164 781 439 910 Other revenue 1,532 1,177 4,716 4,210 6,591 Total 92,783 92,045 288, 1 15 289,902 399,343 1) Includes the Contract manufacturing sales channel. VOLVO CAR GROUP 21 OF 30 INTERIM REPORT THIRD QUARTER 2024 ===== SIDA 22 ===== NOTE 3 – Financial instruments Valuation principles and classification of financial instruments, as described in the Volvo Car Group’s Annual Report 2023, Note 21 – Financial instruments and financial risks and Note 22 – Marketable securities and cash and cash equivalents, have been applied consistently throughout the reporting period. The table below presents financial instruments by category and measurement level. 30 Sep 2024 31 Dec 2023 Measure - ment level Carrying value Fair value Carrying value Fair value Financial assets carried at fair value through profit or loss Other securities holdings – convertible loan 1) 2 10,618 10,618 10,270 10,270 Other securities holdings – equity instruments 2) 3 1,372 1,372 1,507 1,507 Other securities holdings – equity instruments 6) 1 45 45 166 166 Derivatives for hedging of currency risk 2 441 441 411 411 Derivatives for hedging of commodity price risk 2 8 8 — — Derivatives for hedging of interest rate risk 2 216 216 4 4 Interest-bearing securities 3) 2 894 894 50 50 13,594 13,594 12,408 12,408 Financial assets carried at fair value through profit or loss designated hedging instruments Derivatives for hedging of currency risk 2 2,507 2,507 3,557 3,557 Derivatives for hedging of commodity price risk 2 834 834 110 110 3,341 3,341 3,667 3,667 Financial assets carried at amortised cost Accounts receivable 6) — 23,878 23,878 19,257 19,257 Other interest-bearing assets, non-current and current 6) — 2,866 2,881 2,846 2,928 Time deposits 4) — 4,563 4,586 16,533 16,602 Cash and cash equivalents — 38,073 38,073 41,197 41,197 69,380 69,418 79,833 79,984 Financial liabilities carried at fair value through profit or loss Derivatives for hedging of currency risk 2 100 100 56 56 Derivatives for hedging of commodity price risk 2 48 48 — — Derivatives for hedging of interest rate risk 2 174 174 297 297 322 322 353 353 Financial liabilities carried at fair value through profit or loss designated hedging instruments Derivatives for hedging of currency risk 2 856 856 865 865 Derivatives for hedging of commodity price risk 2 632 632 261 261 1,488 1,488 1,126 1,126 Financial liabilities carried at amortised cost Accounts payable — 65,693 65,693 62,304 62,304 Bonds and liabilities to credit institutions, non-current and current 5) — 29,263 29,206 30,246 30,224 Other interest-bearing liabilities, non-current and current 6) — 20,208 20,208 8,727 8,727 115 ,16 4 115 ,107 101,277 101,255 1) The value of the conversion option connected to the convertible loan receivable to the Polestar Group is nil. 2) Equity instruments at level 3 include earn-out rights in Polestar Group amounted to SEK — (577) m and unlisted warrants and earn-out rights in the listed company Luminar Technologies Inc amounted to SEK 2 (42) m in the balance sheet. Changes in the equity instruments at level 3 are recog - nised in the income statement as Share of income in joint ventures and associates amounted to SEK –580 (–2,654) m and Other financial income and expenses amounted to SEK 278 (–217) m. 3) Whereof SEK 894 (50) m are reported as cash and cash equivalents. 4) Whereof SEK 565 (9,918) m are reported as marketable securities in the balance sheet and SEK 3,998 (6,615) m are reported as cash and cash equivalents. 5) The carrying amount of the bonds and liabilities to credit institutions including a fair value adjustment amounting to SEK 232 (–46) m, which relates to the fair value hedging. 6) The 2023 figures have been adjusted to reflect the reclassification of certain items in the balance sheet, see footnote 1 to the Consolidated balance sheet. VOLVO CAR GROUP 22 OF 30 INTERIM REPORT THIRD QUARTER 2024 ===== 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 purchases 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 joint ventures and associates. All transactions with Related Parties are performed at arm’s length. Significant events and agreements with Related Parties during the third quarter In August, Volvo Cars acquired the remaining 40% of the shares in HaleyTek AB from ECARX Technology Ltd and HaleyTek is thereafter a wholly-owned subsidiary to Volvo Cars. Purchase consideration amounted to SEK 210 m. Transactions with Related Parties Related Party transactions are specified in the below tables. The nature of significant transactions with Related Parties are provided in Note 4 - Related Party transactions in the Annual Report 2023. Related Party transactions specified below but not previously described in the annual report are: • Sales to Volvo Car Financial Services UK Ltd, mainly sales of cars. • Purchases from Zhejiang Haoqing Automobile Manufacturing Co., Ltd, mainly related to EM90 and EX30. • Purchases from Geely Changxing Automatic Transmission Co., Ltd, mainly related to gearboxes. Sales of goods, services and other SEK m Jul–Sep 2024 Jul–Sep 2023 Jan–Sep 2024 Jan–Sep 2023 Full year 2023 Related companies 1)2) 6,287 8,025 13,077 22,935 27, 25 3 of which Polestar Automotive Holding UK Group 5,804 7 ,648 11,76 0 21,081 24,939 of which Ningbo Fuhong Auto Sales Co., Ltd 279 260 736 1,270 1,467 Associated companies and joint ventures 2,430 761 6,464 1,530 2,705 of which Volvo Car Financial Services UK Ltd 2,080 417 5,433 497 1,337 Purchases of goods, services and other SEK m Jul–Sep 2024 Jul–Sep 2023 Jan–Sep 2024 Jan–Sep 2023 Full year 2023 Related companies 1)2) –10,803 –6,298 –45,873 –22,734 –33,519 of which Zhejiang Geely Automobile Co.,Ltd – 5,102 18 –25,373 — – 3 ,169 of which Powertrain Engineering Sweden AB –2,913 –2,934 –11, 24 3 –9,299 –13,517 of which Zhangjiakou Aurobay Powertrain Manufacturing Co., Ltd –1,052 –1,540 –2,998 –6,050 –7, 3 0 4 of which Zhejiang Haoqing Automobile Manufacturing Co., Ltd –440 — –1,742 — — of which Geely Changxing Automatic Transmission Co., Ltd –481 –471 –1, 259 –1,19 0 –1,420 of which Viridi E-Mobility Technology (Ningbo) Co., Ltd –410 –469 –1,110 –1,660 –2,079 of which Ningbo Geely Automobile Research & Development Co., Ltd 3 –487 –462 –1,487 –1,667 Associated companies and joint ventures –806 –777 –1,960 –2,330 –2,958 Receivables 3) Payables 3) SEK m 30 Sep 2024 31 Dec 2023 30 Sep 2024 31 Dec 2023 Related companies 1)2) 20,359 21,534 12,348 14,941 Associated companies and joint ventures 2,199 2,545 697 627 1) Related companies are companies within the Geely sphere of companies. Joint ventures and associated companies within the Geely sphere are presented as Related companies. 2) Including contract manufacturing. 3) Non-current part of receivables amounts to SEK 12,524 (11,543) m. Non-current part of payables amounts to SEK 2 (4) m. VOLVO CAR GROUP 23 OF 30 INTERIM REPORT THIRD QUARTER 2024 ===== SIDA 24 ===== NOTE 5 – Earnings per share Basic earnings per share, SEK m Jul–Sep 2024 Jul–Sep 2023 Jan–Sep 2024 Jan–Sep 2023 Full year 2023 Net income attributable to owners of the parent company 4,208 3,001 12,898 9,944 13,053 Net income attributable to owners of ordinary shares in the parent company 4,208 3,001 12,898 9,944 13,053 Weighted average number of ordinary shares outstanding, basic 1) 2,975,190,846 2,979,524,179 2,978,079,735 2,979,524,179 2,979,524,179 Basic earnings per share, SEK 1.41 1.01 4.33 3.34 4.38 Diluted earnings per share, SEK m Jul–Sep 2024 Jul–Sep 2023 Jan–Sep 2024 Jan–Sep 2023 Full year 2023 Net income in basic earnings per share 4,208 3,001 12,898 9,944 13,053 Net income in diluted earnings per share 4,208 3,001 12,898 9,944 13,053 Weighted average number of ordinary shares outstanding, basic 1) 2,975,190,846 2,979,524,179 2,978,079,735 2,979,524,179 2,979,524,179 Dilutive effect for share-based payment programmes 2,388,606 1,157,192 1,958,404 643,815 778,275 Weighted average number of ordinary shares outstanding, diluted 2,977,579,452 2,980,681,371 2,980,038,139 2,980,167 ,994 2,980,302,454 Diluted earnings per share, SEK 1.41 1.01 4.33 3.34 4.38 1) The weighted average number of outstanding shares takes into account the weighted average effect of changes in treasury shares during the period. NOTE 6 – Significant events after the period No significant events have occurred after the period. The section Risks and uncertainty factors on page 14 contains information on Volvo Cars’ assessments of the global environment on the Group. VOLVO CAR GROUP 24 OF 30 INTERIM REPORT THIRD QUARTER 2024 ===== SIDA 25 ===== Condensed Parent Company Income Statements Condensed Parent Company Balance Sheets SEK m Jul–Sep 2024 Jul–Sep 2023 Jan–Sep 2024 Jan–Sep 2023 Full year 2023 Administrative expenses –8 –6 –28 –18 –30 Operating loss –8 –6 –28 –18 –30 Interest income and similar credits 372 370 1,209 1,036 1,452 Interest expenses and similar charges –269 –208 –745 –605 –825 Other financial income and expenses 1) –5 –6 –17 –19 2,979 Income before tax 90 150 419 394 3,576 Income tax –16 –31 –80 –81 –95 Net income 74 119 339 313 3,481 1) In December 2023, a dividend of SEK 3,000 m was received from subsidiary. Other comprehensive income and net income are consistent since there are no items in other comprehensive income. SEK m 30 Sep 2024 31 Dec 2023 ASSETS Non-current assets 42,667 42,367 Current assets 15,960 25,999 TOTAL ASSETS 58,627 68,366 EQUITY & LIABILITIES Equity Restricted equity 1) 61 61 Non-restricted equity 2) 30,761 39,844 Total equity 30,822 39,905 Non-current liabilities 21,632 21,338 Current liabilities 6,173 7,123 Total liabilities 27, 8 0 5 28,461 TOTAL EQUITY & LIABILITIES 58,627 68,366 1) During the second quarter of 2024, Volvo Car AB (publ.) made a share split (2:1) of the class B shares. A reduction of the share capital through redemption of shares, and an increase of the share capital through a bonus issue without issuance of new shares. 2) The equity is reduced by SEK –9,308 m relating to the distribution of shares in Polestar Automotive Holding UK PLC. VOLVO CAR GROUP 25 OF 30 INTERIM REPORT THIRD QUARTER 2024 ===== SIDA 26 ===== GENERAL DEFINITIONS Volvo Cars and Volvo Car Group Volvo Car AB (publ.) together with its wholly-owned subsidiary 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 Gothenburg, Sweden, is a publicly listed company on the Nasdaq Stockholm Stock Exchange (traded under the ticker VOLCAR). The largest owner, holding 78.65% of shares and capital, is Geely Sweden Holdings AB, owned by Shanghai Geely Zhaoyuan International Investment Co., Ltd., regis - tered 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% and 50% 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 arrangement. Retail sales Retail sales refer to sales to end customers (including a portion 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 (European Union) + EFTA (European Free Trade Association) + UK (United Kingdom). 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. Battery Electric Vehicles (BEV) BEV cars include all vehicles which are 100% fully electrified cars. Non Battery Electric Vehicles (Non-BEV) Non-BEV cars include all vehicles which are not 100% 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% fully electric cars, the same as the Battery Electric Vehicles (BEV), and Plug-in hybrids (PHEV), in both petrol and diesel with a cord for charging. ICE Internal combustion engine, including all powertrain types except plug-in hybrids (PHEV) and fully electric vehicles (BEV). MHEV Mild hybrid electric vehicle utilises both a gas engine and an electric motor. The MHEV is used to start the engine and brake or slow the car, thereby recovering brake energy that is stored in the 48V battery. Agency personnel Agency personnel is referred to as specific competence that is sourced externally and assigned to meet fluctuating business resource needs. Contract manufacturing A business model in which a third-party company is contracted for the production of goods or components over a specified contract period. Repurchase cars Cars under repurchase agreement are cars such as company cars and cars sold to rental companies. These cars are sold under a contract with a commitment (the right or obligation to buy back the car). VOLVO CAR GROUP 26 OF 30 INTERIM REPORT THIRD QUARTER 2024 ===== SIDA 27 ===== 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 performance 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 excl. share of income in JVs & associates EBIT 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 EBIT margin excl. share of income in JVs & associates presents 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 amortisation of non-current assets. EBITDA presents an overview of the profitability of Volvo Car Group operations. Alternative performance measures presented by Volvo Car Group 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. Items affecting comparability Transactions that are not related to recurring business operations, but affecting the financial outcome in a material way, and where the probability of reoccurrence over the coming years is limited. Share of investing cash flow Share of investing cash flow is defined as the share of invest - ing cash flow allocated to certain types of development as a percentage of the total investing cash flow. Share of invest - ing cash flow presents the allocation of the Group’s cash resources to certain investments during the reporting period. Net cash Net cash is defined as cash, cash equivalents and marketable securities less liabilities to credit institutions and bonds. Net cash represents Volvo Car Group’s ability to meet its financial obligations. Liquidity Liquidity is defined as cash, cash equivalents, undrawn credit facilities and marketable securities. VOLVO CAR GROUP 27 OF 30 INTERIM REPORT THIRD QUARTER 2024 ===== SIDA 28 ===== Alternative performance measures are presented in SEK m unless otherwise stated. The reconciliations of the respective key figures against the most directly reconcilable item in the financial statements can be found at: investors.volvocars.com/en/results-and-reports/results-centre SEK m Jul–Sep 2024 Jul–Sep 2023 Full year 2023 Revenue 92,783 92,045 399,343 Cost of sales –73 ,747 –73 , 9 6 8 –321,916 Research and development expenses –3,403 –2,909 –12,884 Operating income (EBIT) 5,790 4,458 19,939 EBIT excl. share of income in JVs & associates 5,710 6,14 8 25,567 Net income 4,356 3,219 14,066 EBITDA 10,369 8,651 37, 3 8 8 Gross margin, % 20.5 19.6 19.4 EBIT margin, % 6.2 4.8 5.0 EBIT margin excl. share of income in JVs & associates, % 6.2 6.7 6.4 EBITDA margin, % 11. 2 9.4 9.4 RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES VOLVO CAR GROUP 28 OF 30 INTERIM REPORT THIRD QUARTER 2024 ===== SIDA 29 ===== 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 08:00 CET on 23 October, President & CEO Jim Rowan and CFO Johan Ekdahl will host a livestream for media, investors and analysts. Link: live.volvocars.com For those tuning in from China, please use this link: 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 6 February 2025: Q4 and full year 2024 report 3 April 2025: Annual General Meeting 29 April 2025: Q1 2025 report 17 July 2025: Q2 2025 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, 22 October 2024 Jim Rowan President and CEO This report has not been subject to review by Volvo Car AB’s auditors. VOLVO CAR GROUP 29 OF 30 INTERIM REPORT THIRD QUARTER 2024 ===== SIDA 30 =====