SECOND QUARTER 2017 Martin Lundstedt, President and CEO

Volvo Group SECOND QUARTER HIGHLIGHTS Net sales +12% (+6% excl. currency) Continued improved profitability for the Group - Trucks adjusted operating margin 9.6% (10.0) - Construction Equipment s adjusted operating margin 13.3% (5.9) Operating cash flow SEK 11.9 bn (6.9) in Industrial Operations NET SALES SEK bn 12 months 317 bn 78.9 88.4 ADJUSTED OPERATING MARGIN* 12 months 8.2% % 9.7% 7.8% *Adjustments, see note 6 in report: 2016: Provision for EU investigation -2,334 2017: No adjustments 2

Volvo Group VOLUME DEVELOPMENT IN THE SECOND QUARTER TRUCK DELIVERIES Units HD/MD MACHINE DELIVERIES 12 months 172,127 Units 12 months 54,211 60000 50000 +105 0% +5,708 +49% Total Change Volvo 28,510 +255 UD 4,890-17 Renault Trucks 8,930-52 Mack 5,507-81 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 10,454 +1,233 SDLG 6,976 +4,433 3

Volvo Group SERVICE SALES DEVELOPMENT SERVICE SALES SEK bn +9% +3% ex FX 12 months 70.8 bn 20 18 16 14 12 10 8 6 4 2 0 18.0 16.7 16.6 CONSTRUCTION TRUCKS BUSES VOLVO PENTA EQUIPMENT 4

Trucks Good demand in Europe and China Order pick-up in North America Stretched supply chain Important product launch for Volvo Trucks in North America 5

Volvo Trucks LAUNCH OF THE NEW VOLVO VNL FAMILY IN NORTH AMERICA 6

Volvo Trucks and Renault Trucks VOTED NUMBER ONE AND TWO AMONG YOUNG TRUCK DRIVERS IN GERMANY Young Professionals Truck Award 2017 7

Trucks MARKET ENVIRONMENT NORTH AMERICA EUROPE HD 400 400 300 300 200 200 100 2016: 243 Forecast 2017: 225 100 HD 2016: 305 Forecast 2017: 300 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 BRAZIL 1200 HD 1000 2016: 30 Forecast 2017: 30 200 ASIA 1400 800 600 100 400 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 200 HD+MD China India Japan 2016: 962 Forecast 2017: 1.060 2016: 293 Forecast 2017*: 295 2016: 95 Forecast 2017: 95 0 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 *5 ton segment added to Indian MD forecast 8

Trucks MARKET SHARES HD% 2016 2017 EUROPE NORTH AMERICA EU28, YTD MAY JAPAN 17,0 16,9 7,9 8,3 9,6 8,8 16,5 17,8 7,9 8,2 Volvo Volvo Renault Trucks UD Mack AUSTRALIA BRAZIL 19,2 18,1 SOUTH AFRICA 15,4 14,9 8,6 9,1 1,3 3,4 15,4 16,1 8,8 8,0 Volvo Volvo 9 UD Volvo Mack UD

Trucks HD/MD: ORDERS +20% AND DELIVERIES 0% EUROPE NORTH AMERICA Orders Orders Deliveries AFRICA & OCEANIA SOUTH AMERICA Deliveries Orders +129% Deliveries +5% 10 Orders +11% Deliveries +7% Orders +30% Deliveries -11% Orders Deliveries Orders ASIA Deliveries Orders +19% Deliveries -7% Orders Deliveries Orders +6% Deliveries +1%

Construction Equipment Transformation program yielding result Growth in most major markets Melker Jernberg new president as from January 1, 2018 11

Construction Equipment JOINING FORCES WITH VOLVO TRUCKS AND VOLVO PENTA AT ELMIA WOOD - WORLD S LARGEST FORESTRY TRADE SHOW 12

Construction Equipment MARKET ENVIRONMENT NORTH AMERICA EUROPE 500 300 200 CHINA 400 200 300 100 0 100 Forecast 2017: -5 to +5% 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 0 Forecast 2017: +5 to +15% 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 200 100 Forecast 2017: +35 to +45% 0 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 SOUTH AMERICA ASIA (excl. China) 300 100 Forecast 2017: -5 to +5% 200 100 0 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 13 0 Forecast 2017: 0 to +10% 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17

Construction Equipment ORDERS +54% AND DELIVERIES +49% EUROPE NORTH AMERICA Orders Orders Deliveries Deliveries AFRICA & OCEANIA SOUTH AMERICA Orders Deliveries Orders +53% Deliveries +36% 14 Orders +3% Deliveries +11% Orders +12% Deliveries +11% Orders ASIA Deliveries Orders +40% Deliveries +16% Orders Deliveries Orders +116% Deliveries +106%

Buses Prevost X3-45 Commuter Coach Mixed market Deliveries development down 17% Order intake +34% +7%, mainly across driven by regions North America Frame Deliveries agreement of the new for 8-360 litre coaches chassis - largest platform ever for in Asian North America markets started Largest Order of order fully electric ever of complete buses to Malmö, electric Sweden hybrid traffic solutions to Belgium 15

Volvo Penta Sales growth in both industrial and marine segments Order increase by 9%, delivery increase by 11% Majority owner of innovative outboard motor manufacturer Seven Marine 16

SECOND QUARTER 2017 Jan Gurander, deputy CEO and CFO

Volvo Group NET SALES PER MARKET NET SALES SEK bn Currency +4.5 bn +3.6 +0.7 88.4 78.9 +3.1 +1.5 +0.7 Q 2016 Europe North America South America Asia Africa & Oceania 2017 18

Volvo Group ADJUSTED OPERATING INCOME PER BUSINESS AREA ADJUSTED OPERATING INCOME* SEK M +1,650 +7 +90 Currency +350 M +446 8,540* +22 6,130* +195 2016 Trucks *Adjustments, see note 6 in report: 2016: Provision for EU investigation -2,334 2017: No adjustments Volvo CE Buses Volvo Financial Group 2017 Penta ServicesFunctions & Other 19

Volvo Group ADJUSTED OPERATING INCOME CONTRIBUTORS ADJUSTED OPERATING INCOME* Currency +350 M SEK M +2,914-53 -398-583 +607 8,540* -77 6,130* + Sales (CE) + Capacity utilization (CE) + Gross margin in services + Product mix - Higher selling and admin. cost - Lower R&D capitalization - Stretched supply chain 2016 Gross income Cash R&D *Adjustments, see note 6 in report: 2016: Provision for EU investigation -2,334 2017: No adjustments R&D capitalization Selling Admin. Other 2017 20

Volvo Group Industrial Operations CASH FLOW OPERATING CASH FLOW SEK bn 12 months SEK 20.4 bn INVESTMENTS IN PPE SEK bn 12 months SEK 6.3 bn CASH FLOW EFFECT FROM CHANGES IN WORKING CAPITAL SEK bn 5.5 8.6 6.9 11.9 1.6 1.4 1.1-1.2-2.3 1.5 3.6 Accounts receivable Inventories Trade payables Other Total change 21

Trucks NET SALES NET SALES SEK bn 12 months 206.1 bn +8% 57.1 52.3 56.4 Delivered HD/MD trucks 0%: - North America -11% - Europe +7% Net sales currencyadjusted +2%: - vehicles +2% - services +1% 15 15 15 16 16 16 16 17 17 22

Trucks ADJUSTED OPERATING INCOME ADJUSTED OPERATING INCOME* SEK M ADJUSTED OPERATING INCOME* SEK bn 12 months 18.8 bn Currency 276 M 4.4 5.2 5.4 5,222 + Gross margin in services + Product mix + JV income 5,417 ADJUSTED OPERATING MARGIN* % 12 months 9.1% 10.0% 9.6% 7.7% - Selling and admin. cost - Lower R&D capitalization - Stretched supply chain *Adjustments, see note 6 in report: 2016: Provision for EU investigation -2,334 2017: No adjustments 2016 2017 23

Construction Equipment NET SALES NET SALES SEK bn 12 months 59.3 bn +36% Delivered machines +49%: 15.4 13.6 18.5 - Volvo +13% - SDLG +174% - large and medium +54% - compact +35% Net sales currencyadjusted +29%: - machines +33% - services +7% 15 15 15 16 16 16 16 17 17 24

Construction Equipment ADJUSTED OPERATING INCOME ADJUSTED OPERATING INCOME* SEK M 12 months 5,172 M Currency 160 M ADJUSTED OPERATING INCOME* SEK M 2,460 ADJUSTED OPERATING MARGIN* % 12 months 8.7% 1,353 810 2,460 810 + Sales (machines and services) + Capacity utilization + Credit losses in China 2016 (SEK 176 M) + Maintained operating expenses 8.8% 5.9% 13.3% 2016 2017 *Adjustments, see note 6 in report 2017 and 2016: No adjustments 25

Buses NET SALES & ADJUSTED OPERATING INCOME NET SALES SEK bn 12 months 25.9 bn ADJUSTED OPERATING INCOME* SEK M 12 months 919 M Currency -37 M Net sales currencyadjusted +0%: - vehicles -1% - services +5% 6.7 7.0 6.1 111 313 320 *Adjustments, see note 6 in report 2017 and 2016: No adjustments Adjusted operating income: + product and market mix + efficiency initiatives - 17% lower volumes Adjusted operating margin* 4.6% (4.6) 26

Volvo Penta NET SALES & ADJUSTED OPERATING INCOME NET SALES SEK bn 2.6 2.7 12 months 10.7 bn 3.1 ADJUSTED OPERATING INCOME* SEK M 12 months 1,412 M Currency 31 M 353 389 479 Net sales currencyadjusted +10%: - engines +13% - services +2% Adjusted operating income: + higher volumes Adjusted operating margin* 15.5% (14.5) *Adjustments, see note 6 in report 2017 and 2016: No adjustments 27

Financial Services NEW FINANCING AND PROFITABILITY ADJUSTED OPERATING INCOME* SEK M 12 months 2,147 M NEW FINANCING SEK bn 12 months 56.0 bn ROE* 12 months, % 497 499 521 15.0 13.5 15.3 13.3% 13.5% 14.0% *Adjustments, see note 6 in report 2017 and 2016: No adjustments 28