Change in Volvo financial reporting structure

Change in Volvo financial reporting structure

Net sales and operating result of the business units and Volvo Real Estate will
be allocated to the Volvo business areas as from January 1, 2007. As of the same
date, Financial Services will be consolidated according to the purchase method.
These changes are implemented in order to further increase the transparency and
to more clearly present the profitability of the respective product areas as
well as the customer finance operations.

The Volvo Group's operations are organized in business areas and a number of
business units with Group-wide responsibility for engines, product development,
sourcing, IT, logistics and parts. Substantial synergies are created within the
Group based on global coordination and competitive offerings.

In Volvo's external financial reporting, net sales and operating income are
reported for each product-related business area. As from January 1, 2007, the
benefits from the synergies created in the business units are transferred back
to the product-related business areas as the financial results from all business
units are allocated to the business areas. The allocation is based on the
respective business area's use of the services of the business units. Previous
years only the financial result from the business units Volvo Powertrain and
Volvo Parts have been allocated to the business areas whereas the remaining
business units have been included in the item Other. After allocation the item
Other will only include the financial result generated from corporate functions.
Quarterly and yearly financial results 2006 by business area have been
recalculated according to the allocation and are presented in an appendix to
this pressrelease.
As from January 1, 2007, the responsibility for the group treasury function and
the real estates will be moved from Financial Services. The group treasury
function will be reported under corporate functions. The real estates of the
group, Volvo Real Estate, will be reported within the industrial and commercial
operations and the financial result, previously reported in Financial Services,
will be allocated to the business areas. 

As from January 1, 2007, Financial Services is consolidated according to the
purchase method. Previously, Financial Services has been consolidated according
to the equity method. The appendix includes balance sheets presenting the Volvo
group as at December 31, 2006, including the transfer of Volvo Real Estate and
the consolidation of Financial Services according to the purchase method. As a
consequence, net financial position changes from SEK 24.7 billion to SEK 22.4
billion and net debt ratio changes from 28.3 percent to 28.6 percent within
Industrial & Commercial.

April 17, 2007

Enclosure

For further information, please contact Mårten Wikforss, +46 31 66 11 27 or +46
705 59 11 49. Or Christer Johansson at +43 31 661334 or +46 706 54 55 22



The Volvo Group is one of the world's leading manufacturers of trucks, buses and
construction equipment, drive systems for marine and industrial applications,
aerospace components and services. The Group also provides complete solutions
for financing and service. The Volvo Group, which employs about 83,000 people,
has production facilities in 18 countries and sells their products in more than
180 markets. Annual sales of the Volvo Group amount to about 27 billion euro.
The Volvo Group is a publicly-held company headquartered in Göteborg, Sweden.
Volvo shares are listed on the Stockholm stock exchange and on NASDAQ in the US.