Volvo Group (VOLV) Investor presentation summary

Financial performance and growth

• Achieved consistent earnings improvement with reduced volatility in earnings and cash flow.

• Operating income margin reached 14.1% for the last twelve months, with net sales at SEK 552 billion.

• Service sales, including financial services, have shown steady growth, reaching SEK 129 billion in the last twelve months.

• Operating cash flow for industrial operations was SEK 49.7 billion over the past twelve months.

• Return on capital employed (ROCE) reached 37.7% in the latest period.

Strategic initiatives and transformation

• Accelerating transformation through investments in new business models, innovation, and technology.

• Launched new Volvo FH Aero and VNL ranges in January 2024 to strengthen product portfolio.

• Committed to 100% fossil-free vehicles by 2040, with a transition plan involving battery electric, fuel cell, and combustion engine technologies.

• Modular vehicle architecture enables flexible production of combustion, battery electric, and fuel cell vehicles on the same platform.

• Partnerships with leading companies like Samsung SDI, Aurora, Nvidia, and Daimler support electrification and digitalization strategies.

Market environment and share

• Maintained strong heavy-duty truck market shares in Europe, North America, Brazil, and Australia.

• Forecasts for 2024 indicate a decline in heavy-duty truck demand in Europe and North America, but growth in India and China.

• Construction equipment markets expected to contract in Europe and China, with stable or slight growth in South America and Asia (excluding China).

• Electrification of vehicle segments progressing at different rates by region and application.