Volvo Group – the second quarter 2015

The second quarter followed the trend from the fourth quarter of 2014 and the
beginning of the year. The Group’s products are well received by the market, and
the activities in the efficiency programs are progressing according to plan and
contribute to yet another quarter of earnings improvements.

  ·
In the second quarter net sales increased by 17% to SEK 84.8 billion (72.6).
Adjusted for currency movements and acquired and divested units sales increased
by 4%.

  ·
Operating income amounted to SEK 8,116 M (4,325) excluding restructuring charges
of SEK 799 M (762). Operating income includes a positive impact of SEK 2,137 M
from the sale of shares in Eicher Motors Limited. Currency exchange rates had a
positive impact of SEK 1,804 M.

  ·
Operating income excluding restructuring charges and the capital gain from the
sale of shares amounted to SEK 5,979 M (3,284*), corresponding to an underlying
operating margin of 7.1% (4.5).

  ·
Operating cash flow in the Industrial Operations amounted to SEK 8.6 billion
(4.0).

  ·
Net financial debt in the Industrial Operations amounted to 16% of equity.

  ·
Truck order intake decreased by 6% and order intake of construction equipment
decreased by 27%.

* Excluding the capital gain from the sale of real estate and the release of a
provision for Volvo Rents in the second quarter 2014, combined amounting to SEK
1,041 M.

For a PDF version of the report, please click here: Volvo Group Q2 2015
PDF (http://www3.volvo.com/investors/finrep/interim/2015/q2/q2_2015_eng.pdf)

For image download:
http://images.volvogroup.com/latelogin.jspx?recordsWithCatalogName=ab+volvo:3813

Press and Analyst Conference. An on-line presentation of the report, followed by
a question-and-answer session will be webcast starting at 9.00 a.m. CEST. More
information under Interim Reports on
www.volvogroup.com (http://www.volvogroup.com/GROUP/GLOBAL/EN
-GB/INVESTORS/REPORTS/INTERIM_REPORTS/Pages/interim_reports.aspx)

Aktiebolaget Volvo (publ) 556012-5790                            Contacts
Investor Relations:
Investor Relations, VHQ
Christer Johansson          +46 31 66 13 34
SE-405 08 Göteborg, Sweden                                             Patrik
Stenberg                +46 31 66 13 36
Tel +46 31 66 00
00                                                             Anders
Christensson       +46 31 66 11 91
www.volvogroup.com
John Hartwell                  +1 201 252 8844
 (http://www.volvogroup.com)

The Volvo Group is one of the world’s leading manufacturers of trucks, buses,
construction equipment and marine and industrial engines. The Group also
provides complete solutions for financing and service. The Volvo Group, which
employs about 100,000 people, has production facilities in 19 countries and
sells its products in more than 190 markets. In 2014 the Volvo Group’s sale
amounted to about SEK 283 billion (EUR 31 billion). The Volvo Group is a
publicly-held company headquartered in Göteborg, Sweden. Volvo shares are listed
on Nasdaq Stockholm. For more information, please visit www.volvogroup.com or
www.volvogroup.mobi if you are using your mobile phone.

AB Volvo (publ) may be required to disclose the information provided herein
pursuant to the Securities Markets Act and/or the Financial Instruments Trading
Act. The information was submitted for publication at 7.20 a.m. July 17, 2015.