Volvo Group – the second quarter 2013

The Volvo Group’s sales for the second quarter of 2013 recovered considerably
compared with the first quarter of 2013 and amounted to SEK 72.8 billion, up
25%. Profitability also improved thanks to higher sales volumes and better
capacity utilization in our plants. Despite having to increase our warranty
reserves by SEK 900 M for legacy truck quality issues, operating income totaled
SEK 3.3 billion, corresponding to an operating margin of 4.5% compared with 0.8%
in the first quarter.

  · In the second quarter, net sales increased by 25% to SEK 72.8 billion
compared to the first quarter. Compared to the second quarter of 2012 sales
decreased by 12% and by 4% adjusted for currency movements and acquired and
divested units.
  · The second quarter operating income amounted to SEK 3,262 M compared with
SEK 482 M in the first quarter of 2013 and SEK 7,709 M in the second quarter of
2012. Compared with the second quarter of 2012, changes in currency exchange
rates had a negative impact of SEK 1,210 M.
  · Operating margin in the second quarter was 4.5% compared with 0.8% in the
first quarter of 2013 and 9.3% in the second quarter of 2012.
  · In the second quarter, earnings per share were SEK 0.99 compared with a
negative SEK 0.15 in the first quarter of 2013 and SEK 2.41 in the second
quarter of 2012.
  · In the second quarter, operating cash flow in the Industrial Operations was
positive in an amount of SEK 4.1 billion.
  · During the quarter, Renault Trucks launched a completely new range of trucks
for distribution, construction and long-haulage. Volvo Trucks launched four new
truck models. Altogether this is the biggest product renewal in the Group’s
history.

“After a weak start to the year, the Group’s sales and profitability recovered
during the second quarter of 2013. The renewal of the Group’s truck offering
entered an even more intensive phase and during the quarter we presented a
completely new product portfolio within Renault Trucks, as well as a number of
important new trucks for Volvo. Thus far, the trucks have been well received by
customers and dealers, which is of utmost importance since these new trucks will
be highly significant to the Group’s sales and profitability in the coming
years.” Olof Persson, President and CEO.


For an English PDF version of the report, please click here: Volvo Group Q2 2013
PDF (http://www3.volvo.com/investors/finrep/interim/2013/q2/q2_2013_eng.pdf)

For an English web version of the report please click here: Volvo Group Q2 2013
HTML (http://www3.volvo.com/investors/finrep/interim/2013/q2/eng/index.html)

For a mobile version of the report please click here: Volvo Group
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Aktiebolaget Volvo  Contacts Investor Relations:
(publ) 556012-5790  Christer Johansson           +46 31 66 13 34
Investor            Patrik Stenberg                  +46 31 66 13 36
Relations, VHQ      Anders Christensson         +46 31 66 11 91
SE-405 08           John Hartwell                     +1 201 252 8844
Göteborg, Sweden
Tel +46 31 66 00
00
www.volvogroup.com