Volvo Group Investor Day May 17, 2018 AGENDA
Growing demand for sustainable Martin Lundstedt, President and CEO transports and infrastructure Well invested with strong assets Martin Lundstedt, President and CEO to build on Improving financial performance Jan Gurander, Deputy CEO & CFO Improving operational performance Martin Lundstedt, President and CEO 10:00-10:30 COFFEE BREAK Building a strong Dennis Slagle, EVP Volvo Group and North American truck business President Mack Trucks Leveraging Financial Services Scott Rafkin, President Volvo Financial Services Lead in technology Lars Stenqvist, Chief Technology Officer Volvo Group Summary and Q&A 12:30-13:00 LUNCH
Volvo Group Investor Day 2 May 17, 2018 Growing demand for sustainable transports and infrastructure Martin Lundstedt PRESIDENT AND CEO
Volvo Group Investor Day 3 May 17, 2018 Growing demand for sustainable transports and infrastructure
Rapid global Rapid population urbanization
growth
Growth in Middle class
e-commerce growth
Sources: Volvo Group Rapid global population growth: http://esa.un.org/unpd/wpp/Publications/Files/World_Population_2015_Wallchart.pdf Investor Day Rapid urbanization: UN Dept Economic & Social Affairs/Population Division, 2012 E-com: e-Marketer, from McKinsey reports “Parcel Industry Perspective” 2017, “International E-commerce Trends”, 2017 4 May 17, 2018 Middle class growth: WB MIC forum Efficiency and sustainability gap in emerging markets
LOGISTICS COSTS AS PERCENTAGE OF GDP
25%
20% 20% 18%
15% 15% 13% 11%
10% 9% 9% 8% 7% 8% 6%
5%
0% Denmark Sweden Norway USA Australia Germany South India Brazil China Russia Africa
Source: Logistics Barometer 2016 South Africa
Volvo Group Investor Day 5 May 17, 2018 Large improvement potential in the logistics systems
Used ~25% of the time over ~60% of total length theoretically 5-10% of total fuel consumed the life cycle available for more cargo is used to move goods
~7% of all accidents in Europe involve trucks: ~17% for fatal accidents
Source: Mckinsey
Volvo Group Investor Day 6 May 17, 2018 Volvo Group mission
Driving prosperity through transport solutions
Volvo Group Investor Day 7 May 17, 2018 Well invested with strong assets to build on THE JOURNEY
Acquisition- Transformation Improving driven growth to close the gap performance
Volvo Group Investor Day 8 May 17, 2018 Well invested with strong assets to build on TRUCK SALES NETWORK AND MARKET SHARES 2017
Sales and service points China North 615 America North America EU 28 13.2% South 208 15.6% 25.5% America Japan Europe 1452 India, MD 19.8% South Africa 57 South America 32.2% India 438 16.9% South Africa China 964 Australia 25.6% Japan 210 27.2%
Australia 85
Volvo Group Investor Day 9 May 17, 2018 Well invested with strong assets to build on VOLVO CE SALES NETWORK AND MARKET SHARES 2017
NORTH AMERICA EUROPE Sales and service points CHINA 27% 60% North 5% 230 America 11% 28% SDLG Excavators
4% South 92 America 7% 16% 18% ASIA Europe 483 SOUTH AMERICA AFRICA & OCEANIA 46% Africa & 65% 122 Oceania 33% 6% 10% Asia 339 7% 6% 7% China 288 7% 7%
Volvo Group Investor Day 10 May 17, 2018 Well invested with strong assets to build on ADDRESSING A BROAD SPECTRUM OF CUSTOMER SEGMENTS
Volvo Group Well invested with strong assets to build on SEGMENT AND APPLICATION EXCELLENCE
Admin
Repair & Fuel maintenance DISTRIBUTION France MINING Indonesia
CONSTRUCTION US LONG-HAULAGE Europe Vehicle Driver
Volvo Group Investor Day 12 May 17, 2018 Well invested with strong World truck market 2017 units assets to build on POSITIONED TO CAPTURE OPPORTUNITIES IN CHINA, INDIA AND BEYOND
China: Dongfeng Commercial Vehicles India: VE Commercial Vehicles Growing demand for Volvo Trucks along with e-commerce trend in China Volvo CE leveraging the Asia growth both through Volvo and SDLG brands
Volvo Group Investor Day 13 May 17, 2018 Well invested with strong assets to build on OUR JV’S ARE GEARED FOR PROFITABLE GROWTH
2017 FY 2017 FY 2017 FY Position (China) No 4 Position (India) No 3 Position (WL China) No 2 Volume 172,100 units Volume 60,100 units Volume 26,000 units Sales SEK 49.6 bn Sales SEK 12.4 bn Sales SEK 10.5 bn Op. margin 3.4% Op. margin 6.0% Op. margin >10.0% Holding 45% Holding 45.6% Holding 70%
Volvo Group Investor Day 14 May 17, 2018 Well invested with strong assets to build on LEVERAGING 15 YEARS OF CREATING A COMMON ARCHITECTURE AND SHARED TECHNOLOGY SYSTEM (CAST)
Volvo Group Investor Day 15 May 17, 2018 Well invested with strong assets to build on KEY TAKE AWAYS
Strong customer base and rolling fleet Well performing sales and service networks Well invested industrial backbone Fifteen years of investments into CAST Segment and application excellence Scale where it matters People/talent
Volvo Group Investor Day 16 May 17, 2018 Improving financial performance Jan Gurander DEPUTY CEO AND CFO
Volvo Group Investor Day 17 May 17, 2018 Improving financial performance TARGETING >10% OPERATING MARGIN OVER A BUSINESS CYCLE
Adjusted operating margin, Adjusted return on capital, Volvo Group Industrial Operations % % 12 40 Adjusted Operating Margin, % 34.5%
10 Adjusted Operating Margin, 12MM, % 9.3% 30 8
6 20
4 10 2
0 0
Volvo Group Investor Day 18 May 17, 2018 Improving financial performance R&D AT ~5% TO SALES AND CAPEX DOWN TO DEPRECIATION
Group R&D Group capital expenditures (PPE)
SEK bn SEK bn
20 7% 9 160% 18 6% 8 140% 16 7 120% 14 5% 6 100% 12 4% 4.5% 5 10 80% 89% 8 3% 4 60% 6 2% 3 4 2 40% 1% 2 1 20% 0 0% 0 0% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
R&D cash R&D cash/ Net sales PPE PPE/ depreciation
Volvo Group Investor Day 19 May 17, 2018 Improving financial performance STRENGTHENED FINANCIAL POSITION – NET CASH OF SEK 27.5 BN (excl. pensions)
Operating cash flow (12MM), Financial position, excl. pensions Industrial Operations Industrial Operations SEK bn SEK bn 28.3 30 27.5 30
25 20
20 10
15 0 10 2013 2014 2015 2016 2017 Q1-2018 -10 5
0 -20
13Q2 13Q3 13Q4 14Q1 14Q2 14Q3 14Q4 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 -5 13Q1 -30
-10
Volvo Group Investor Day 20 May 17, 2018 Improving financial performance PROFITABILITY PER TRUCK BRAND AND REGION
2016 NORTH AFRICA & SOUTH
EUROPE ASIA WORLD 2017 AMERICA OCEANIA AMERICA
61%
15%
13%
11%
TRUCKS 100%
NET
46% 24% 17% 7% 6% 100% SALES
Good performance Medium performance Lower performance
Volvo Group Investor Day 21 May 17, 2018 Improving financial performance PROFITABILITY IN VOLVO CE WELL BALANCED
Net sales Operating income
NORTH NORTH AMERICA AMERICA 18% 21% ASIA ASIA 38% 38%
EUROPE EUROPE 35% 30% OTHER OTHER MARKETS MARKETS 9% 11%
Volvo Group Investor Day 22 May 17, 2018 Improving financial performance WE CONTINUE TO REVIEW PERFORMANCE AND TAKE ACTION
Develop Operating Review income High frequency follow-ups Business segments Exit Products and variants Markets In-house/source Services
Examples Shares in Deutz divested Volvo CE dealer divestment in the UK Outsourced Japanese MD truck production Moved Eicher Pro 8000 production to VECV Volume 16 liter engine discontinued in North America
Volvo Group Investor Day 23 May 17, 2018 Financial targets
>10% Operating margin over a business cycle
12-15% RoE in Financial Services
Net Industrial Operations, excluding pensions cash
Volvo Group Investor Day 24 May 17, 2018 What we want to achieve IMPROVING PERFORMANCE AND INVESTING FOR THE FUTURE
Gradual and Reduced Discipline Continuous consistent volatility in capital investments earnings in earnings and allocation/ in innovation and improvement cash flow investments new technologies
Volvo Group Investor Day 25 May 17, 2018 Improving operational performance Martin Lundstedt PRESIDENT AND CEO
Volvo Group Investor Day 26 May 17, 2018 Improving operational performance STRATEGIC PRIORITIES
Reinforce Volvo as a global premium HD truck brand and regain position and 1 market shares of Renault Trucks, Mack and UD as regional high-end truck brands
Capture Asia growth through JV’s and Group Trucks Asia in a separate value chain – 2 and leverage in other emerging markets
Create the most desirable HD product and service portfolio tailored to selected 3 premium, high-end and value segments
Secure robust profitability through leading R&D, quality, purchasing and manufacturing 4 operations using Volvo Production System
Establish brand specific sales operations with focus on retail excellence and a 5 growing service business
Leverage Group assets in our non-truck Business Areas, creating additional 6 profits, synergies and technology leadership
Revitalize the Volvo Group culture with focus on Customer Success, Trust, Passion, 7 Change and Performance
Volvo Group Investor Day 27 May 17, 2018 Reinforce Volvo as a global premium HD truck brand and 1 regain position and market shares of Renault Trucks, Mack and UD as regional high-end truck brands
NORTH AMERICA New product line-up for Volvo and Mack Uptime excellence through connectivity Volvo VNL Good Financial Service operation Network expansion and investments
Mack Anthem
Volvo Group Investor Day 28 May 17, 2018 Reinforce Volvo as a global premium HD truck brand and 1 regain position and market shares of Renault Trucks, Mack and UD as regional high-end truck brands
RENAULT TRUCKS New range with higher used truck values Improving network performance Critical mass in targeted markets Engagement for the brand Backbone with the Group Improving financial performance
Volvo Group Investor Day 29 May 17, 2018 Reinforce Volvo as a global premium HD truck brand and 1 regain position and market shares of Renault Trucks, Mack and UD as regional high-end truck brands
UD TRUCKS New and broader UD Quon range Driving retail excellence Critical mass in targeted markets Engagement for the brand Backbone with the Group Improving financial performance
Volvo Group Investor Day 30 May 17, 2018 Capture Asia growth through JV’s and Group Trucks Asia in a 2 separate value chain – and leverage in other emerging markets
DFCV (Dongfeng) Strengthening the product portfolio Engine range preparation for CN6 Industrial footprint streamlining VECV (Eicher) Growing HD market shares in India and export volumes Engine range preparation for BS6 Group Trucks Asia (UD) Completed UD range of HD, MD and LD trucks Building vehicle population and service capability Reducing vehicle product cost New Dongfeng KingRun model D560
Volvo Group Investor Day 31 May 17, 2018 Secure robust profitability through leading R&D, quality, purchasing 4 and manufacturing operations using Volvo Production System
Agility and flexibility in production volumes
Common Architecture and Shared Technology
Continuous introductions
Quality
Brand and regionalized Volvo Production System value chains
Volvo Group Investor Day 32 May 17, 2018 Establish brand specific sales operations with focus on retail excellence and a growing service business 5 UNTAPPED POTENTIAL IN EXISTING POPULATION OF 2.8 MILLION TRUCKS, BUSES AND MACHINES
REVENUE PER OFFERING, ILLUSTRATIVE VOLVO TRUCKS, PARTS PER VEHICLE IN OPERATION, %
Sweden ~200% UK Belgium Uptime Untapped Untapped France services potential on market share Italy Insurance existing fleet potential Spain Financing Holland Germany Workshop Russia Poland Parts ~50% Market Vehicles / Machines share Europe average = 100%
Volvo Group Investor Day 33 May 17, 2018 Establish brand specific sales operations with focus on retail excellence and a growing service business 5 UNTAPPED POTENTIAL IN EXISTING POPULATION OF 2.8 MILLION TRUCKS, BUSES AND MACHINES
SERVICE CONTRACT PORTFOLIO, NUMBER OF CONNECTED VOLVO TRUCKS EUROPE TRUCKS, BUSES AND MACHINES
150% Index 145 700,000 140%
130%
120%
110%
Index 100 100%
90% 2014 2015 2016 2017 Q1-2018 2014 2015 2016 2017
Volvo Group Investor Day 34 May 17, 2018 Leverage Group assets in our non-truck 6 Business Areas, creating additional profits, synergies and technology leadership Volvo CE
*Adjustments, see note 7 in Q1 report: Volvo Group Q1 2017: No adjustments Investor Day Q1 2018: No adjustments 35 May 17, 2018 Leverage Group assets in our non-truck 6 Business Areas, creating additional profits, synergies and technology leadership Volvo Penta
NET SALES ADJUSTED OPERATING MARGIN* SEK bn 12 months 11.6 bn % 12 months 13.2%
3.1 15.6% 15.5% 16.2% 2.7 2.3
16Q116Q216Q316Q417Q117Q217Q317Q418Q1 Q116Q216Q316Q416Q117Q217Q317Q417Q118
Volvo Group *Adjustments, see note 7 in Q1 report: Investor Day Q1 2017: No adjustments 36 May 17, 2018 Q1 2018: No adjustments Leverage Group assets in our non-truck 6 Business Areas, creating additional profits, synergies and technology leadership Volvo Buses
NET SALES & OPERATING MARGIN • Profitability focus SEK bn 30 10% • Improved commonality with Group
25 8% modular system (CAST) 20 6% • European leader in electric buses 3.6% 15 4% • Our installed electric bus population 10 2% has accumulated ~600 million km on 5 0% public roads 0 -2% 2013 2014 2015 2016 2017
Volvo Group Investor Day 37 May 17, 2018 Revitalize the Volvo Group culture 7 WITH FOCUS ON CUSTOMER SUCCESS, TRUST, PASSION, CHANGE AND PERFORMANCE
Clear leadership, entrepreneurship and profit & loss responsibility for each brand
Those closest to the customer are empowered to make the right decisions
More regionalized value-chain approach
Simplicity, improved speed
A mindset for continuous improvement
Volvo Group Investor Day 38 May 17, 2018 Improving operational performance STRATEGIC PRIORITIES
Reinforce Volvo as a global premium HD truck brand and regain position and 1 market shares of Renault Trucks, Mack and UD as regional high-end truck brands
Capture Asia growth through JV’s and Group Trucks Asia in a separate value chain – 2 and leverage in other emerging markets Opportunities to Create the most desirable HD product and service portfolio tailored to selected 3 improve performance premium, high-end and value segments in existing business Secure robust profitability through leading R&D, quality, purchasing and manufacturing 4 operations using Volvo Production System Profit and cash generation funding: Establish brand specific sales operations with focus on retail excellence and a • Leading technology 5 growing service business position • Good shareholder Leverage Group assets in our non-truck Business Areas, creating additional returns 6 profits, synergies and technology leadership
Revitalize the Volvo Group culture with focus on Customer Success, Trust, Passion, 7 Change and Performance
Volvo Group Investor Day 39 May 17, 2018 Building a strong North American truck business Dennis Slagle EVP VOLVO GROUP AND PRESIDENT MACK TRUCKS
Volvo Group Investor Day 40 May 17, 2018 The foundation is in place
Proprietary driveline Strengthened dealer Used trucks/ Uptime/connectivity New products penetration networks remarketing leadership
Volvo Group Investor Day 41 May 17, 2018 Proprietary driveline penetration SERVICE BUSINESS FULLY ABSORBING SALES AND MARKETING COSTS
Captive Captive Parts per Engines Transmissions Vehicle in for Volvo (AMT) Operation
100 94% 100 90% 90 80 80 132% 70 87% Volvo 60 60 I-Shift 50 40 40 36% 30 Mack mDRIVE Parts per VIO 20 20 (highway) 10 Truck population (10 year) 0 0 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 07 08 09 10 11 12 13 14 15 16 17 06 07 08 09 10 11 12 13 14 15 16 17
Volvo Group Investor Day 42 May 17, 2018 Strengthened dealer networks CONTINUED INVESTMENT AND EXPANSION
• 74 additional outlets since 2010 • USD 680 M+ in private investment • 55% increase in bay capacity • 124% more technicians • 65% increase in service capacity • 248% increase in master technicians • 60% more sales people
Volvo Group Investor Day 43 May 17, 2018 Strengthened dealer networks NEW TEC DEALERSHIP IN FONTANA, CA
199,000 square feet on 14 acres USD 25 M investment 77 service bays Parking for more than 400 trucks
Volvo Group Investor Day 44 May 17, 2018 Used trucks and remarketing ARROW IS LARGEST USED TRUCK OPERATION IN THE U.S.
• 18 locations, all makes • Builds dealer competence • Profitable through downturn • In-house financing optimizes retail values • Capacity to handle large trades • Concept expanding to Europe
Volvo Group Investor Day 45 May 17, 2018 Uptime/Connectivity Leadership CERTIFIED UPTIME CENTERS – A SUCCESS STORY
143 Certified Uptime Centers • Reduced diagnostic times by an average of 70 % • Reduced repair times by an average of 21% • Increased shop efficiency by 24% • Reduced ‘check-in’ time by over 40 minutes
Volvo Group Investor Day 46 May 17, 2018 Uptime/Connectivity Leadership VOLVO REMOTE PROGRAMMING AND MACK OVER THE AIR
Updates performed through telematics: • Updated software for powertrain components • Revised vehicle parameters for duty cycle optimization
Customers update based on their schedules
Available on all 2018 model year Volvo and Mack trucks
Volvo Group Investor Day 47 May 17, 2018 Uptime/Connectivity Leadership VOLVO REMOTE PROGRAMMING AND MACK OVER THE AIR
Since October 2017: Since October 2017: • 20• Morecustomers; than 6,000 3,500 vehicles vehicles • Performed• Performed more nearly than 600 380 updates updates • Average• Average 23 23 minutes minutes • More• More than than 500+ 500+ days days ofof downtimedowntime saved saved • Very• Very positive positive customer customer feedbackfeedback
Volvo Group Investor Day 48 May 17, 2018 The final pieces…
Volvo Group Investor Day 49 May 17, 2018 Leveraging Financial Services Scott Rafkin PRESIDENT VOLVO FINANCIAL SERVICES
Volvo Group Investor Day 50 May 17, 2018 Strong position to support >90% of Group sales
VFS
• Over 1,400 employees • Offering financial solutions in 46 countries around the world • Serving all Volvo Group brands • Financing approximately 25% of Volvo Group products in markets served
Market expansion (past 3 years) • India (owned) • South Africa (owned) • Bulgaria (owned) Legal Presence • Indonesia (broker) Cross Border • Morocco (alliance) Alliance/Broker • Philippines (broker) No Activity • South Korea (broker)
Volvo Group Investor Day 51 May 17, 2018 Good portfolio growth
Organic retail growth Dec-2017 Wholesale +40 growth SEK 132 bn +4 Geographic expansion +3 • +23 Group deliveries • +16 Capital cost/ inflation • 70% North America • +13 Penetration • 30% UK • - 12 Syndication
• Baltics • India Dec-2010 • South Africa Cumulative productivity of 15% SEK 85 bn
Volvo Group Investor Day 52 May 17, 2018 Supporting sales with profitable growth
15,0%
137 12,0% 132 132 124 119 105 9,0%
6,0%
3,0%
0,0% 2013 2014 2015 2016 2017 2018 Q1 Operating Income SEK bn 1.5 1.7 2.0 2.1 2.2 0.6
Volvo Group Investor Day 53 May 17, 2018 Opportunities for improvement
Underperforming markets
Commercial effectiveness
New markets
Operational leverage
Volvo Group Investor Day 54 May 17, 2018 Focus on growing services/solutions
88% OVERALL CUSTOMER SATISFACTION
85% REPURCHASE RATE
Integration prior to point-of-sale
Drive total offer sales approach 83% RECOMMEND Create value for the Volvo Group VFS
Lifecycle management to increase loyalty
Volvo Group Investor Day 55 May 17, 2018 Digital innovation to meet new demands and business models
Artificial Emerging Blockchain Telematics Mobility Intelligence Payments
• Identity management • Connected • Predictive analytics • WeChat (China) • zApps Fintech • Payments insurance • Customer service • Digital marketplace / partnership
• Property/vehicle • Wholesale audits (chatbots) E-wallet
history with geo fencing • Back-office finance • Usage-based offers & operations • Uptime integration
Volvo Group Investor Day 56 May 17, 2018 Leveraging Financial Services
Center of expertise for solution sales
Vital to the customer’s experience and loyalty towards the Group
Instrumental in providing solutions for changing customer demands and business models
Continued focus on profitable growth and commercial performance
Volvo Group Investor Day 57 May 17, 2018 Lead in technology Lars Stenqvist CHIEF TECHNOLOGY OFFICER VOLVO GROUP
Volvo Group Investor Day 58 May 17, 2018 New technologies transforming the transport system
Volvo Group Investor Day 59 May 17, 2018 Balancing well-known and new technologies
Mack MP8 Turbo Volvo 13L Turbo Compound engine Compound engine
Wave piston
MackVolvo Group Anthem Volvo VNL New technologies transforming the transport system
Volvo Group Investor Day 61 May 17, 2018 Common Architecture and Shared Technology SOFTWARE, ELECTRICS/ ELECTRONICS ARE KEY FOR NEW TECHNOLOGIES
Volvo Group Investor Day 62 May 17, 2018 ELECTRIFICATION
We have built competence and capabilities over time CONTINUOUS COMMERCIALIZATION OF FULLY ELECTRIC VEHICLES ONGOING
Battery electric vehicles (BEV) Plug-in hybrid electric vehicles (PHEV) Hybrid electric vehicles (HEV)
Volvo Group Investor Day 63 May 17, 2018 ELECTRIFICATION Meeting customers’ demands in various regions and segments
Volvo FL - Electric Renault Trucks - Electric UD Quon Vision - Electric Volvo EX2 - Electric
VolvoVolvo Group FE - Electric Mack LR Waste - Electric Articulated Volvo Bus - Electric Volvo LX1 - Electric ELECTRIFICATION Modular system serving many segments and applications
CITY AND DISTRIBUTION CONFINED AREAS REGIONAL AND LONG-HAUL
ELECTRIC MODULAR PLATFORM – HARDWARE AND SOFTWARE
HEV, PHEV, BEV
Electrified powertrains Batteries Power electronics Charging components Electrified auxiliaries Future interfaces Partners
Volvo Group Investor Day 65 May 17, 2018 AUTOMATION
Five levels of automation LEVELS 4-5 ARE THE TRUE GAME CHANGERS IN THE TRANSPORT INDUSTRY
NO DRIVER
NO ATTENTION Full Automation NO EYES High Automation NO HANDS Conditional Automation NO FEET Partial Automation Driver Assistance
LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5
Volvo Group Investor Day 66 May 17, 2018 AUTOMATION We have built competence and capabilities over time CORNER-STONES FOR AUTOMATION IN PLACE AS COMMERCIALIZED SOLUTIONS
DYNAMIC STEERING AUTOMATED MANUAL TRANSMISSION
Volvo Group
Investor Day AUTOMATED67 May 17, EMERGENCY2018 BRAKE SYSTEM ADAPTIVE CRUISE CONTROL AUTOMATION We have built competence and capabilities over time DEMONSTRATING OUR RESEARCH AND TECHNOLOGY DEVELOPMENT
Volvo Group Investor Day 68 May 17, 2018 AUTOMATION We have built competence and capabilities over time DEMONSTRATING OUR RESEARCH AND TECHNOLOGY DEVELOPMENT
Volvo Group Investor Day 69 May 17, 2018 AUTOMATION We have built competence and capabilities over time DEMONSTRATING OUR RESEARCH AND TECHNOLOGY DEVELOPMENT
Volvo Group AUTOMATION We have built competence and capabilities over time DEMONSTRATING OUR RESEARCH AND TECHNOLOGY DEVELOPMENT
Volvo Group Investor Day 71 May 17, 2018 AUTOMATION We have built competence and capabilities over time DEMONSTRATING OUR RESEARCH AND TECHNOLOGY DEVELOPMENT
Volvo Group Investor Day 72 May 17, 2018 AUTOMATIONAUTOMATION
Modular system serving many segments and applications
DRIVER SUPPORT SYSTEMS CONFINED AND SEMI-CONFINED PUBLIC / ON-ROAD
VOLVO GROUP AUTOMATION PLATFORM – HARDWARE AND SOFTWARE
V2X Cyber Fleet & Mission Redundant vehicle with Sensors Perception communication security management automation interface
Volvo Group Investor Day 73 May 17, 2018 CONNECTIVITY
Connected ecosystem is enabling business opportunities here and now CONNECTED SAFETY
Example of enabled capabilities:
Uptime services
Vehicle automation
Vehicle-to-infrastructure communication
Vehicle-to-vehicle communication
Volvo Group Investor Day 74 May 17, 2018 Highly efficient and integrated transport system Volvo HX2 - Autonomous electric hauler SAFE, SUSTAINABLE AND EFFICIENT
Volvo FMX - Autonomous
Volvo EX1 - Electric excavator
Volvo Group Investor Day 75 May 17, 2018 Volvo LX1 - Hybrid wheel loader Summary and Q&A Martin Lundstedt PRESIDENT AND CEO
Volvo Group Investor Day 76 May 17, 2018 Exciting times ahead
• Growing demand for sustainable transports and infrastructure • Our strategy serves our customers and other stakeholders well • Well positioned: • Strong assets • Well invested • Still potential with continuous improvements • Lead in technology and innovation • Growing solution-based business
Volvo Group Investor Day 77 May 17, 2018 QUESTIONS AND ANSWERS Growing demand for sustainable transports and infrastructure
Well invested with strong assets to build on
Improving financial performance
Improving operational performance
Building a strong North American truck business
Leveraging Financial Services
Lead in technology
Volvo Group Investor Day 78 May 17, 2018