THIRD QUARTER 2017 Martin Lundstedt, President and CEO

Volvo Group THIRD QUARTER HIGHLIGHTS Net sales +12% (+16% excl. currency) Continued improved profitability for the Group - Trucks adjusted operating margin 8.6% (8.2) - Construction Equipment s adjusted operating margin 13.4% (5.2) NET SALES SEK bn 12 months 326 bn 68.8 77.2 ADJUSTED OPERATING MARGIN* 12 months 8.7% % 9.1% 7.0% *Adjustments, see note 6 in report: 2016: Provision for EU investigation -190 2017: Capital gain on shares in Deutz 400 2

Volvo Group VOLUME DEVELOPMENT IN THE THIRD QUARTER TRUCK DELIVERIES Units HD/MD MACHINE DELIVERIES 12 months 177,697 Units 12 months 58,911 60000 50000 +5,611 +15% +4,700 +48% Total Change Volvo 25,722 +3,369 UD 5,193 +385 Renault Trucks 7,179 +720 Mack 5,100 +1,137 40000 30000 20000 10000 0 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0,000 Total Change Volvo 8,625 +1,846 SDLG 5,752 +2,850 3

Volvo Group SERVICE SALES DEVELOPMENT SERVICE SALES SEK bn +2% +5% ex FX 12 months 71.2 bn 20 18 16 14 12 10 8 6 4 2 0 16.6 17.0 17.3 CONSTRUCTION TRUCKS BUSES VOLVO PENTA EQUIPMENT 4

Trucks Good demand in Europe, North America and China Stretched supply chain Volvo trucks powered with liquefied natural gas and biogas for Europe Important product renewal for Mack Trucks 5

Mack Trucks LAUNCH OF THE NEW MACK RANGE IN NORTH AMERICA 6

Trucks SEVERAL IMPORTANT PRODUCT LAUNCHES IN 2017 Volvo VNL North America Mack Anthem North America UD Croner (MD) South East Asia Volvo VNR North America 7 UD Quon (HD) Japan UD Kuzer (LD) South East Asia

Trucks MARKET ENVIRONMENT NORTH AMERICA EUROPE HD 400 400 300 300 200 200 100 2016: 243 Forecast 2017: 235 Forecast 2018: 260 100 0 HD 2016: 305 Forecast 2017: 305 Forecast 2018: 300 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 1600 BRAZIL 1400 HD 200 2016: 30 Forecast 2017: 30 Forecast 2018: 35 100 1200 India 1000 Japan 800 600 400 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 China 200 0 ASIA HD+MD 2016: 962 Forecast 2017: 1.360 Forecast 2018: 1.150 2016: 293 Forecast 2017: 305 Forecast 2018: 320 2016: 95 Forecast 2017: 95 Forecast 2018: 85 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 8

Trucks MARKET SHARES HD% 2016 2017 EUROPE NORTH AMERICA EU28, YTD AUGUST JAPAN 16,7 16,6 8,0 8,5 9,6 8,6 16,3 17,3 7,8 7,7 Volvo Volvo Renault Trucks UD Mack AUSTRALIA BRAZIL 18,9 17,7 SOUTH AFRICA 16,2 15,3 8,6 8,7 YTD AUGUST 15,0 16,5 8,6 8,6 Volvo Volvo 9 1,5 3,3 UD Volvo Mack UD

Trucks HD/MD: ORDERS +32% AND DELIVERIES +15% EUROPE NORTH AMERICA Orders Orders Deliveries AFRICA & OCEANIA Deliveries Orders +26% Deliveries +26% 10 Orders +14% Deliveries +11% SOUTH AMERICA Orders +79% Deliveries +18% Orders Deliveries Orders ASIA Orders Deliveries Orders +28% Deliveries +6% Deliveries Orders +32% Deliveries +22%

Construction Equipment Market growth across all regions Orders up 45% and deliveries up 48% Transformation program continues to yield result 11

Construction Equipment SOLD THE 75,000 TH ARTICULATED HAULER 12

Construction Equipment MARKET ENVIRONMENT NORTH AMERICA EUROPE 500 300 200 CHINA 400 200 300 100 100 Forecast 2017: 0 to +10% Forecast 2018: -5 to +5% 0 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 0 Forecast 2017: +5 to +15% Forecast 2018: -5 to +5% 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 200 100 0 Forecast 2017: +60 to +70% Forecast 2018: +5 to +15% 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 SOUTH AMERICA ASIA (excl. China) 300 100 Forecast 2017: -5 to +5% Forecast 2018: 0 to +10% 200 100 0 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 13 0 Forecast 2017: 0 to +10% Forecast 2018: 0 to +10% 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

Construction Equipment ORDERS +45% AND DELIVERIES +48% EUROPE NORTH AMERICA Orders Orders Deliveries Deliveries AFRICA & OCEANIA SOUTH AMERICA Orders Deliveries Orders -2% Deliveries -10% 14 Orders +12% Deliveries +19% Orders -17% Deliveries +24% Orders ASIA Deliveries Orders +27% Deliveries +23% Orders Deliveries Orders +86% Deliveries +86%

Buses Mixed market development Deliveries up 24% Order intake +34% Major order of 325 Nova across regions city buses to Toronto Deliveries of the new 8- Increased battery litre chassis platform for capacity on Volvo 7900 Asian markets started Largest 25 full-electric order ever buses of to complete Trondheimelectric hybrid traffic solutions to Belgium 15

Volvo Penta Byt bild Sales growth in both industrial and marine segments Order increase by 12%, delivery increase by 7% Launch of milestone 1,000 hp engine for marine leisure 16

THIRD QUARTER 2017 Jan Gurander, deputy CEO and CFO

Volvo Group NET SALES PER MARKET NET SALES SEK bn Currency -2.0 bn 68.8 +2.3 +2.3 +0.4 +2.7 +0.8 77.2 2016 Europe North America South America Asia Africa & Oceania 2017 18

Volvo Group ADJUSTED OPERATING INCOME PER BUSINESS AREA ADJUSTED OPERATING INCOME* SEK M +1,423-14 -5 Currency 223 M +25 +244 7,024* 4,846* +505 2016 Trucks Volvo CE *Adjustments, see note 6 in report: 2016: Provision for EU investigation -190 2017: Capital gain on shares in Deutz 400 Buses Volvo Penta Financial Group 2017 ServicesFunctions & Other 19

Volvo Group ADJUSTED OPERATING INCOME CONTRIBUTORS ADJUSTED OPERATING INCOME* SEK M 4,846* +2,063-96 -60-416 Currency -223 M +825 7,024* -138 + Earnings in Construction Equipment + Truck volumes - Higher selling and admin. cost - Stretched supply chain 2016 Gross income Cash R&D *Adjustments, see note 6 in report: 2016: Provision for EU investigation -190 2017: Capital gain on shares in Deutz 400 R&D capitalization Selling Admin. Other 2017 20

Volvo Group Industrial Operations CASH FLOW OPERATING CASH FLOW SEK bn 12 months SEK 18.9 bn INVESTMENTS IN PPE SEK bn 12 months SEK 6.3 bn CASH FLOW EFFECT FROM CHANGES IN WORKING CAPITAL SEK bn 0.0 0.8-3.2 1.4 1.5 1.4 2.1 0.6-1.9-2.1-3.3 Accounts receivable Inventories Trade payables Other Total change 21

Trucks NET SALES NET SALES SEK bn 12 months 210.2 bn +9% 50.2 45.8 49.8 Delivered HD/MD trucks +15%: - North America +17% - Europe +11% Net sales currencyadjusted +12%: - vehicles +14% - services +5% 15 15 16 16 16 16 17 17 17 22

Trucks ADJUSTED OPERATING INCOME ADJUSTED OPERATING INCOME* SEK M ADJUSTED OPERATING INCOME* SEK bn 12 months 19.3 bn Currency -143 M 3.6 3.8 4.3 3,756 + Higher volumes + Income from joint ventures 4,261 ADJUSTED OPERATING MARGIN* % 12 months 9.2% 8.2% 8.6% 7.2% - Selling cost - Stretched supply chain - Higher R&D cost *Adjustments, see note 6 in report: 2016: Provision for EU investigation -190 2017: No adjustments 2016 2017 23

Construction Equipment NET SALES NET SALES SEK bn 11.9 11.5 12 months 62.9 bn +31% 15.1 Delivered machines +48%: - Volvo +27% - SDLG +98% - large and medium +53% - compact +34% Net sales currencyadjusted +35%: - machines +41% - services +10% 15 15 16 16 16 16 17 17 17 24

Construction Equipment ADJUSTED OPERATING INCOME ADJUSTED OPERATING INCOME* SEK M 12 months 6,595 M Currency -150 M ADJUSTED OPERATING INCOME* SEK M 2,024 ADJUSTED OPERATING MARGIN* % 12 months 10.5% 576 601 2,024 601 + Sales (machines and services) + Capacity utilization + Gain of SEK 253 M on dealer divestment in Great Britain 4.8% 5.2% 13.4% 2016 2017 *Adjustments, see note 6 in report 2017 and 2016: No adjustments 25

Buses NET SALES & ADJUSTED OPERATING INCOME NET SALES SEK bn 5.5 5.4 12 months 27.1 bn 6.5 ADJUSTED OPERATING INCOME* SEK M 12 months 905 M Currency -62 M 337 232 218 *Adjustments, see note 6 in report 2017 and 2016: No adjustments Net sales currencyadjusted +24%: - vehicles +29% - services +4% Adjusted operating income: + volumes - ramp-up cost - negative mix Adjusted operating margin* 3.3% (4.3) 26

Volvo Penta NET SALES & ADJUSTED OPERATING INCOME NET SALES SEK bn 12 months 10.9 bn ADJUSTED OPERATING INCOME* SEK M 12 months 1,407 M Currency 1 M Net sales currencyadjusted +9%: - engines +12% - services +3% 2.3 2.5 2.7 316 358 353 Adjusted operating income: + Higher sales - Industrial and campaign cost - Higher op. expenses *Adjustments, see note 6 in report 2017 and 2016: No adjustments Adjusted operating margin* 13.3% (14.5) 27

Financial Services NEW FINANCING AND PROFITABILITY ADJUSTED OPERATING INCOME* SEK M 12 months 2,172 M NEW FINANCING SEK bn 12 months 56.4 bn ROE* 12 months, % 501 528 553 13.3 13.4 13.8 13.4% 13.3% 14.3% *Adjustments, see note 6 in report 2017 and 2016: No adjustments 28