Annual General Meeting, April 5 A global group The Volvo Group is one of the The Annual General Meeting of AB Volvo will be held in Göteborg in Lisebergshallen The Volvo Group 2005 2 Organization (entrance from Örgrytevägen) Wednesday April 5, 2006, at 3:00 p.m. 4 Vision, mission and world’s leading producers of values Notice 6 CEO comment trucks, buses, construction Shareholders who wish to participate must: be recorded in the share register main- equipment, drive systems for tained by VPC AB (Swedish Central Securities Depository) not later than March 30, Strong increase in earnings 8 An industry with long-term growth… 2006, give notice of intention to attend not later than 12:00, Thursday, March 30, 2006. 9 …a focused strategy… marine and industrial app- • by telephone, +46 31 66 00 00 beginning March 6 10 …and continued efficiency enhancement… • by mail addressed to AB Volvo (publ), Legal Department, Aggressive product renewal lications as well as compo- 11 …creates a stronger Volvo Group SE-405 08 Göteborg, Sweden The Volvo Group 2005 The Volvo • at Volvo’s website www.volvo.com nents for aircraft engines. The Strengthened competitiveness 12 Targets and execution Volvo Group also provides When giving notice, shareholders should state their: 13 Shareholder value 14 Development of tomorrow’s fi nancial services • name products • personal number (registration number) 16 Strong brands • address and telephone number to its customers. • name and personal number (registration number) of the proxy, if any 17 Customer-driven solutions The Group has • name(s) of any accompaning assistant(s) 28 The share approximately Shareholders whose shares are held in the trust department of a bank or by a broker- Sustainable development age firm should request the shares to be temporarily registered in the shareholder’s 30 Introduction 82,000 employees, produc- name several banking days prior to March 30, 2006. 32 Quality tion facilities in 18 countries 34 Safety April 10, 2006 has been proposed as the record date for dividends, which are expected to be distributed on April 13, 2006. 36 Environmental care and sales in some 185 count- 40 Competence ries. During 2005, the Volvo Volvo’s Election Committee 43 Volvo’s social involvement The following persons are members of Volvo’s Election Committee: Group’s sales rose by 14% to Board of Directors’ Report Lars Idermark Chairman of the Election Committee, Second Swedish 45 Significant events SEK 231 bn and income per National Pension Fund 48 Financial performance Finn Johnsson Chairman of the Board share rose by 37% to SEK Thierry Moulonguet Renault SA 50 Financial position Curt Källströmer Svenska Handelsbanken 52 Cash-flow statement 32.21. The share is listed on Marianne Nilsson Robur 54 Risk management the Stockholm Stock Exchan- 58 Trucks The Election Committee is responsible for submitting to the Annual General Meeting 62 Buses ge and NASDAQ in the US. the names of candidates to serve as members of the Board of Directors and as audi- 64 Construction Equipment tors. The Committee also proposes the amount of the fees to be paid to the holders of 66 Volvo Penta these positions. 68 Volvo Aero Preliminary publication dates 70 Financial Services Form 20-F US GAAP 2005 May, 2006 Corporate Governance Report Three months ended March 31, 2006 April 25, 2006 72 Report Six months ended June 30, 2006 July 21, 2006 76 Group Management Nine months ended September 30, 2006 October 24, 2006 78 Board of Directors and auditors Report on 2006 operations February, 2007 Annual Report 2006 March, 2007 Financial information Information about IFRS 81 Income statements As of January 1, 2005 AB Volvo complies with The reports are available on www.volvo.com on date of publication and are also sent 82 Balance sheets International Financial Reporting Standards directly to all shareholders who have advised Volvo that they wish to receive financial information. 83 Changes in shareholders’ equity (IFRS), previously known as IAS, as adopted by 84 Cash-flow statements the European Union. Figures for the correspond- Historical and current time series reflecting the Volvo Group’s financial development, 85 Notes to the consolidated ing periods in 2004 have been restated according market information and share data are published regularly on www.volvo.com. financial statements to IFRS. In the financial information on pages 1–79, 130 Parent Company AB Volvo Volvo Financial Services is reported in accordance www.volvo.com Contacts 144 Proposed disposition of with the equity method. Reporting in accordance unappropriated earnings with IAS 1 begins on page 80. Investor Relations: 145 Audit Report for AB Volvo Christer Johansson +46 31-66 13 34 Aktiebolaget Volvo (publ) 556012-5790 145 Examination of the Corporate Governance Report This report contains “forward-looking statements.” Such statements reflect management’s current expectations with Patrik Stenberg +46 31-66 13 36 Investor Relations, VHK respect to certain future events and potential financial performance. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, no assurance can be given that such expectations will prove John Hartwell +1 212 418 7432 SE-405 08 Göteborg 146 Eleven-year summary to have been correct. Such statements are subject to risk and uncertainties and such future events and financial perfor- mance could differ materially from those set out in the forward looking statements as a result of, among other factors, (i) 154 Customer offering Sweden changes in economic, market and competitive conditions, (ii) success of business and operating initiatives, (iii) changes in Tel +46 31 66 00 00 Flap Definitions the regulatory environment and other government actions, (iv) fluctuations in exchange rates and (v) business risk manage- ment. Fax +46 31 53 72 96 AB Volvo, Investor Relations, 635 3004 Annual General Meeting This report does not imply that the company has undertaken to revise these forward-looking statements, beyond what is www.volvo.com required under the company’s registration contract with the Stockholm Stock Exchange if and when circumstances arise Volvo’s Election Committee that will lead to changes compared to the date when these statements were provided. Preliminary publication dates The Volvo Group’s formal financial reports are presented on pages 44-71 and 80-144 and has been audited by the company’s auditors. The other pages has been reviewed. Annual General Meeting, April 5 A global group The Volvo Group is one of the The Annual General Meeting of AB Volvo will be held in Göteborg in Lisebergshallen The Volvo Group 2005 2 Organization (entrance from Örgrytevägen) Wednesday April 5, 2006, at 3:00 p.m. 4 Vision, mission and world’s leading producers of values Notice 6 CEO comment trucks, buses, construction Shareholders who wish to participate must: be recorded in the share register main- equipment, drive systems for tained by VPC AB (Swedish Central Securities Depository) not later than March 30, Strong increase in earnings 8 An industry with long-term growth… 2006, give notice of intention to attend not later than 12:00, Thursday, March 30, 2006. 9 …a focused strategy… marine and industrial app- • by telephone, +46 31 66 00 00 beginning March 6 10 …and continued efficiency enhancement… • by mail addressed to AB Volvo (publ), Legal Department, Aggressive product renewal lications as well as compo- 11 …creates a stronger Volvo Group SE-405 08 Göteborg, Sweden The Volvo Group 2005 The Volvo • at Volvo’s website www.volvo.com nents for aircraft engines. The Strengthened competitiveness 12 Targets and execution Volvo Group also provides When giving notice, shareholders should state their: 13 Shareholder value 14 Development of tomorrow’s fi nancial services • name products • personal number (registration number) 16 Strong brands • address and telephone number to its customers. • name and personal number (registration number) of the proxy, if any 17 Customer-driven solutions The Group has • name(s) of any accompaning assistant(s) 28 The share approximately Shareholders whose shares are held in the trust department of a bank or by a broker- Sustainable development age firm should request the shares to be temporarily registered in the shareholder’s 30 Introduction 82,000 employees, produc- name several banking days prior to March 30, 2006. 32 Quality tion facilities in 18 countries 34 Safety April 10, 2006 has been proposed as the record date for dividends, which are expected to be distributed on April 13, 2006. 36 Environmental care and sales in some 185 count- 40 Competence ries. During 2005, the Volvo Volvo’s Election Committee 43 Volvo’s social involvement The following persons are members of Volvo’s Election Committee: Group’s sales rose by 14% to Board of Directors’ Report Lars Idermark Chairman of the Election Committee, Second Swedish 45 Significant events SEK 231 bn and income per National Pension Fund 48 Financial performance Finn Johnsson Chairman of the Board share rose by 37% to SEK Thierry Moulonguet Renault SA 50 Financial position Curt Källströmer Svenska Handelsbanken 52 Cash-flow statement 32.21. The share is listed on Marianne Nilsson Robur 54 Risk management the Stockholm Stock Exchan- 58 Trucks The Election Committee is responsible for submitting to the Annual General Meeting 62 Buses ge and NASDAQ in the US. the names of candidates to serve as members of the Board of Directors and as audi- 64 Construction Equipment tors. The Committee also proposes the amount of the fees to