Volvo Group – Report on the third quarter 2012

During the third quarter, sales for the Volvo Group were impacted by the
weakening in demand that has become increasingly evident around the globe. To
respond to declining demand and increasing inventories, we decided to adjust our
production rates down in several parts of the company.

  · In the third quarter, net sales decreased by 6% to SEK 69.1 billion (73.3).
Adjusted for currency movements and acquired and divested units, sales decreased
by 4%.

  · The third quarter operating income amounted to SEK 2,927 M (5,774),
including a non-recurring negative impact amounting to SEK 1,060 M, whereof SEK
560 M relating to a restructuring in UD Trucks and SEK 500 M to an adjustment of
warranty reserves. Compared to the third quarter 2011, changes in exchange rates
had a positive impact of SEK 594 M.

  · Operating margin in the third quarter was 4.2% (7.9). Adjusted for the non
-recurring items, the operating margin was 5.8%.

  · In the third quarter, basic and diluted earnings per share was SEK 0.68
(1.89)

  · In the third quarter, operating cash flow in the Industrial Operations was
negative in an amount of SEK 7.2 billion driven by a lower level of payables
(positive SEK 2.2 billion).

  · Costs associated with the reorganization of the Volvo Group’s dealer network
and sales and marketing organizations in EMEA are currently estimated to be in
the magnitude of SEK 900 M starting in the fourth quarter of 2012 and going
forward.

  · New range of Volvo FH trucks launched.

“In the short term, we have a tough quarter ahead of us to manage the
consequences of the slow demand in the third quarter. However, with the
production adjustments we are currently implementing, we believe we will have
the right level of capacity going into 2013. At the same time we continue to
have a high speed in the execution of the activities that are part of our new
strategic objectives aimed at improving the overall profitability of the Volvo
Group,” says Olof Persson, President and CEO.

For an English PDF version of the report, please click here: Volvo Group Q3 2012
PDF (http://www3.volvo.com/investors/finrep/interim/2012/q3/q3_2012_eng.pdf)

For an English web version of the report please click here: Volvo Group Q3 2012
HTML (http://www3.volvo.com/investors/finrep/interim/2012/q3/eng/index.html)

For a mobile version of the report please click here: Volvo Group Q3 2012
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Aktiebolaget Volvo  Contacts Investor Relations:
(publ) 556012-5790  Christer Johansson         +46 31 66 13 34
Investor            Patrik Stenberg              +46 31 66 13 36
Relations, VHQ      Anders Christensson       +46 31 66 11 91
SE-405 08           John Hartwell                +1 201 252 8844
Göteborg, Sweden
Tel +46 31 66 00
00
www.volvogroup.com