Volvo Group – the first quarter 2016

In the first quarter profitability was maintained thanks to a lower cost base
and focus on adapting to changes in demand. This was despite slightly lower
revenues. Sales amounted to SEK 71.7 billion, a decline of 4%, half of which was
due to currency effects. Operating income totaled SEK 5.3 billion, representing
an operating margin of 7.5%.

  · In Q1 2016 net sales decreased by 4% to SEK 71.7 billion (74.8). Adjusted
for currency movements and acquired and divested units sales decreased by 2%.

  · Operating income amounted to SEK 5,344 M compared with SEK 7,066 M,
excluding restructuring charges of SEK 229 M in Q1 2015.

  · Operating income in Q1 2016 includes a capital gain of SEK 885 M from the
sale of the external IT operation while operating income in Q1 2015 included a
capital gain of SEK 2,471 M from the sale of shares in Eicher Motors Limited.

  · Adjusted for capital gains and restructuring charges (in 2015), operating
income amounted to SEK 4,459 M (4,595), corresponding to an operating margin of
6.2% (6.1).

  · Currency movements had a negative impact of SEK 417 M on operating income.

  · Operating cash flow in the Industrial Operations was negative in an amount
of SEK 10.4 billion (-1.7).

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

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

For more stories from the Volvo Group, please visit
http://www.volvogroup.com/globalnews.

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 18 countries and
sells its products in more than 190 markets. In 2015 the Volvo Group’s sales
amounted to about SEK 313 billion (EUR 33,4 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. April 22, 2016