AB Volvo to sell Volvo Rents in North America

As part of its strategic effort to focus on the core business, the Volvo Group
has agreed to sell Volvo Rents to the US private equity firm Platinum Equity for
approximately SEK 7.2 billion. At closing, net financial debt in the Volvo
Group’s Industrial Operation is expected to be reduced by the same amount.

The transaction is expected have a negative impact on the Group’s operating
income of approximately SEK 1.5 billion in the fourth quarter of 2013.

A pre-requisite for completion of the transaction is that Platinum Equity is
successful in a debt offering to be made to finance its acquisition. Volvo CE
will continue to sell products to Volvo Rents under the new ownership.
“We looked at different alternatives to grow Volvo Rents’ business and concluded
that the best alternative is to sell the operation to another owner. Volvo
Rents’ business does not have a sufficiently strong connection with the Group’s
core operation to motivate continued ownership,” says Olof Persson, Volvo Group
President and CEO.

The purchase consideration, on a cash and debt free basis, amounts to USD 1.1
billion (approx. SEK 7.2 billion). The transaction is expected to have a
negative impact on operating income in the segment “Group functions, corporate
functions and other” within the Industrial Operation in an amount of approx. USD
230 M (approx. SEK 1.5 billion) in the fourth quarter of 2013.

The transaction is expected to be closed in the first quarter of 2014 and is at
that time expected to have a positive impact on the cash flow for the Volvo
Group of USD 1.1 billion (approx. SEK 7.2 billion). The sale of Volvo Rents is
expected to decrease the net financial debt for the Industrial Operation by USD
1.1 billion (approx. SEK 7.2 billion), corresponding to a reduction of the net
financial debt to equity ratio for the Industrial Operation as calculated per
the third quarter of 2013 by approximately 10 percentage points.

Volvo Rents, formed in 2001, offers rental of a comprehensive range of machines
intended for the construction and engineering industry, including Volvo CE
products. Volvo Rents has operations in the US, Canada and Puerto Rico and has
about 2,100 employees. In the first nine months of 2013 Volvo Rents had net
sales of SEK 3.1 billion and recorded an operating loss of SEK 47 M.

Platinum Equity is a California-based global investment firm with a highly
specialized focus on business operations. The firm has significant experience
investing in companies that serve the construction, commercial and industrial
equipment rental market.

All of Volvo Rents’ employees will remain with the company as it is sold. Volvo
Rents’ customers will not be affected by the transaction, and Volvo CE will
continue to sell products to Volvo Rents under the new ownership.
Completion of the transaction is subject to certain conditions, including the
approval of relevant authorities.

December 10, 2013

Journalists who wish further information, please contact

Mårten Wikforss, Volvo Group, tel +46 31 661030

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 08.30 a.m CET December 10,
2013.