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SLIDE 1

Fixe xed d In Incom

  • me

e In Inves estor

  • r Pr

Pres esen entat atio ion

2019

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SLIDE 2

.By accepting this document, the person to whom it is provided (the “Recipient”) agrees to be bound by the following obligations

and limitations. This document has been prepared and issued by Volvo Car AB (together with its subsidiaries, “Volvo Cars”). The information contained in this document is derived from sources that have not been independently verified. Except in the case of fraudulent misrepresentation, no responsibility or liability is accepted by Volvo Cars or by any of its respective officers, employees, affiliates or agents in relation to the accuracy, completeness or sufficiency of any information contained herein or any other written or

  • ral information made available by Volvo Cars in connection therewith or any data which any such information generates, or for any

loss whatsoever arising from or in connection with the use of or reliance on this document and any such liability is expressly

  • disclaimed. Analyses and opinions contained herein may be based on assumptions that, if altered, can change the analyses or
  • pinions expressed. This document speaks as of the date hereof and in providing this document, Volvo Cars gives no undertaking

and is under no obligation to provide the Recipient with access to any additional information or to update this document or to correct any inaccuracies in it which may become apparent. Volvo Cars’ past performance is not necessarily indicative of future results and nothing contained herein shall constitute any representation or warranty as to future performance of Volvo Cars or any security, credit, currency, rate or other market or economic measure. Nor does this document constitute a recommendation with respect to any securities.

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 2

DISCLAIMER

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SLIDE 3

AGENDA

  • Volvo Cars at a Glance
  • Key Credit Highlights
  • Financials
  • Appendix
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SLIDE 4

Strengthened brand Completely new vehicle range Truly global presence Standalone governance Personal and direct relationship with consumers Sustainable products and business Safe mobility with leading AD technology Purpose driven organization 2018

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 4

GAME CHANGING BUSINESS TRANSFORMATION COMPANY TRANSFORMATION

OUR STRATEGIC JOURNEY

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SLIDE 5

2.4 S60 SPA V60 / V60CC

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 5

Petrol 3-4 cvl Diesel 4 cvl PHEV T8 twin engine DRIVE VE-E

SUCCESSFUL BUSINESS TRANSFORMATION...

Scalable Product Architecture (SPA)

  • Models: 60 / 90 Series
  • Scale: Volvo 550’ units

Compact Modular Architecture (CMA)

  • Models: 40 Series
  • Scale: Volvo 250’ units

2015 Portf tfoli lio age e (yea ears) XC90 SPA 2016 3.0 V90 / V90CC S90 S90L SPA 2017 2.5 XC60 XC40 CMA SPA 2018

Modular Architecture Modular Powertrain

2019-20 2021 New Launc unches es Non-complex x and Fully Invest sted d Base Modular ar Architecture Driving g Cost Efficiencies s and Rapid Produ duct Renewal als

  • Consolidation of separate engine architectures into
  • ne
  • Outputs from 122 to >400bhp (in combination with

an electric motor) while reducing number of cylinders

  • Modular design allows high component commonality
  • Reducing complexity in development and

maintenance as well as increasing efficiencies in production

  • Collaboration with Geely also facilities engine sales

within the wider Geely Group XC90 BEV XC40 BEV

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SLIDE 6

9 16 22 26 29 6.9% 9.8% 11.9% 12.5% 11.3% 0% 4% 8% 12% 16% 10 20 30 40 2014 2015 2016 2017 2018

…YIELDING STRONG PERFORMANCE

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 6

Strong Revenue Development…

XC40 XC90 XC60 European car of the year 2018

…With Solid Earnings Growth…

EBITDA margin, % EBITDA SEKbn %

…And Strong Cash Flow Generation… …Driven By Successful Product Launches

Note: 1) Operating cash flow: EBITDA + net cash interests + tax paid + movements in working capital

2016 2015 2014 2017 2018 9 23 27 25 28 Operating cash flow1 (SEKbn) 138 164 181 209 253 2014 2015 2016 2017 2018 SEKbn

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SLIDE 7

466 503 534 572 642 2014 2015 2016 2017 2018

  • Fastest growing premium OEM
  • Standalone business with an own corporate

governance, under ownership of Zheijang Geely Holding Group since 2010

  • Global footprint with activities in EMEA, Asia-Pacific

and the Americas

  • ~43,000 employees1
  • ~2,300 dealers selling in ~100 countries
  • Headquartered in Gothenburg, Sweden

Diversified by model and increasing in SUVs

Overview FY18 Financial Highlights Number of Cars Sold

642k units

56% 29% 15%

SUV Sedan Estate

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 7

+21 21.1 .1%

Revenue increase

4.7bn bn

Operating & Investing CF

253 53bn bn

Revenue

+12. 2.4% 4%

Retail Sales 642.3K Units

14.2bn bn

Operating Income (EBIT)

18bn

Net Cash position

Sales by Model - 2018

VOLVO CARS AT A GLANCE

Note: 1) Average 2018 employees

CAGR: 8%

Premium Products

Units ‘000 SEK, % PRICE NEW PREMIUM High Low Low High

Previous Price and Premium Positioning XC90 Classic XC60 Classic V70 New Price and New Premium Positioning XC40 XC90 V90 XC60

The Volvo Car Group and Affiliates

Care by Volvo

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SLIDE 8

The Volvo

  • Car Group

Stra rateg tegic ic Affilia iate tes Care by Volvo Strong brand within the premium segment Robotaxi Subscription services My car always Solutions & services for smarter mobility

My car sometimes

(Volvo Cars 50% ownership) (Volvo Cars 30% ownership) (Volvo Cars 50% ownership)

Spearheading electrification Capturing new mass market consumer group A market leading AD / ADAS software developer

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 8

HUMAN- CENTRI RIC SYNER ERGIE IES EMBRAC RACIN ING DISRU RUPTI TION ON TRUL ULY GLOBAL PIONEER ERING ING PARTNE TNERS RSHIPS HIPS Non-consolidated entities

A STRUCTURE FOR THE FUTURE

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SLIDE 9

POSITIVE RATING TRAJECTORY

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 9

09 May 2016 Moody's assigns first-time Ba3 rating with posit itiv ive outl tloo

  • ok; Positive
  • utlook reflects commencement of

major produ duct renewal progra ramme 30 Jun 2017 Moody’s comment: Volvo Car’s declared SEK 2.2bn dividend is credit negative but has no impact on Ba2 rating 06 May 2016 S&P assign gns BB ratin ing g with posit itiv ive outlo look

  • k;

Positive outlook based on possibility of raising rating by one notch to BB+ if Volvo Cars continues s to be successfu ful in launching new car mode dels, while maintaining stronger profitability and low levels of adjusted debt 21 Dec 2016 Moody’s comment: SEK 5bn Preference Shares Issue ue Is Credit it Posit itiv ive 12 Oct 2016 Moody's upgr grade des ratin ing g to Ba2 with stabl ble outl tloo

  • ok;

Upgrade reflects strong operating performance based

  • n the successful introduction of new XC90 and

several expected new product launches 17 Oct 2017 Moody’s affirms Ba2 rating with stable outlook. Stable outlook based on expectation that renewa wal progra ramme and subseque uent sales and earnings growth will lead to a f further r impro rovem emen ent in credit metrics 10 May 2017 S&P raises rating g to BB+ with stable le outl tloo

  • ok citing good

progress in strengthen ening compe petitive position and business profile by demonstrating successf sful mode del launches es and d impro rovi ving profi fitabi bility; Stable outlook reflects expectation that Volvo Cars will continue successful rollout

  • f new car models while maintaining profitability and zero
  • r low levels of adjusted debt

2 May 2018 Moody’s upgrades rating to Ba1 with stable le outlo look

  • k; Upgrade reflects

continued improv

  • vements

ts in operati ting g perfor

  • rmance

ce and credi dit t metric ics, with expectations that the trend will continue founded by further successfu ful new mode del launches s 20 November 2018 S&P affirms BB+ rating and revis ises outl tloo

  • ok to posit

itiv ive; the

  • utlook reflects Volvo Cars’ good
  • d posit

itio ion to improv

  • ve its credi

dit t metrics ics over 2019-2021, including meaningful impr prov

  • vement

t in free operati ting g cash flow to debt.

  • t. Positive outlook reflects good

progress in strengthen ening compe petitive position and successful model launches establishing itself as a premium car manufacturer

Oct-16 Jan-16 Jul-16 Apr-17 Jul-17 Jan-18 Jul-18 Jan-19 Apr-16 Jan-17 Apr-18 Oct-17

19 March 2019 Volvo Car’s parent company Zhejiang Geely Holding Group rated Investm tment t Grade de BBB BBB- with stable outlook by S&P

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SLIDE 10

LONGER TERM AMBITIONS

>5 million direct consumer relationships 50% recurring subscription based revenues 50% pure electric cars 30% autonomous cars Naturally hedged global production Superior growth Premium OEM profitability

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 10

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SLIDE 11

AGENDA

  • Volvo Cars at a Glance
  • Key Credit Highlights
  • Financials
  • Appendix
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SLIDE 12

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 12

SYNERGIES

STRATEGIC AFFILIATES DRIVING SYNERGIES AND EARNINGS

4 HUMAN-CENTRIC BRAND IDENTITY

WITH SUSTAINABILITY BEING AN INTEGRATED PART OF COMPANY CULTURE AND STRATEGY

1

KEY CREDIT HIGHLIGHTS

6 SOLID FINANCIAL PERFORMANCE

TRANSFORMATION FULLY SELF FINANCED

ROBUST GROWTH TRAJECTORY

TRACK RECORD OF INDUSTRY OUTPERFORMANCE

2 EMBRACING DISRUPTION AND PIONEERING PARTNERSHIPS

OPEN APPROACH TO TECHNOLOGY AND MARKET CHANGE

5 TRULY GLOBAL

WITH UNIQUE CHINA POSITIONING

3

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SLIDE 13
  • 1. HUMAN-CENTRIC BRAND IDENTITY

Purpose, Culture and Customer Promise

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 13

FREEDOM TO MOVE – IN A PERSONAL, SUSTAINABLE AND SAFE WAY WE ARE CURIOUS, WE CREATE TOGETHER, WE MAKE THE DIFFERENCE

Sustainability Visions WITH SUSTAINABILITY BEING AN INTEGRATED PART OF COMPANY CULTURE AND STRATEGY

Full transparency of our 3TG and cobalt supply chain by 2020 50% of sales to be fully electric by 2025 Climate neutral operations by 2025

Brand nd Valu lue in Line With Societal al Develo lopment nt

No one should be seriously injured or killed in a new Volvo car by 2020 25% of plastic in our cars made from recycled material by 2025

We Understand You We Protect What Is Important to You We Make People Feel Special

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SLIDE 14
  • 2. ROBUST GROWTH TRAJECTORY

1.3% 5.6% 8.4% Non-premium Cars Premium Cars Volvo Cars

Strong Track Record of Outgrowing Market1

Note: 1) Based on the LMC Automotive Q1-2019 edition of its Global Automotive Sales Forecast 2) Premium Cars based on LMC Automotive’s Premium and Super-Premium segmentation. 3) Non-premium Cars based on LMC Automotive’s segmentation excluding the Premium and Super-Premium segments.

Unit Sales CAGR 2014-18A

2 3

Impact and growth from strategic affiliates All cars to be fully electric or plug-in hybrids Full range now being rolled out including strong SUVs Well-known brand with momentum Global market share opportunities In particular US & China New business segments

Key Growth Levers

TRACK RECORD OF INDUSTRY OUTPERFORMANCE

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 14

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SLIDE 15
  • 3. TRULY GLOBAL

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 15

Global Presence Why Volvo Car Group Is Uniquely Positioned in China

  • Only fully integrated global car group in China

– Enabled VCG to move fast (3 plants in 4 years) – Unique JV setup

  • Parent with track record of creating strong brands in China
  • Sales still outgrowing the premium car market

Well Diversified Manufacturing Footprint

– Charleston 75k – Gothenburg 300k – Ghent 225k

HIGHLY FLEXIBLE MANUFACTURING NETWORK WITH UNIQUE CHINA POSITION

– Chengdu 150k – Daqing 75k – Luqiao 45k 50% 20% 15% 15% 642k units Other China Europe US 75% 19% 4% 2%

Global Employee Base

43k FTEs Europe1 China US Other

Note: 1) Whereof Sweden represents 57% of total FTEs

Production R&D

Units Sold By Region

  • 2019 installed global capacity provides flexibility and all regions SPA

platform compatible: FY 2018 FY 2018

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  • 4. SYNERGIES

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 16

Power ertrain train Arch chit itec ectur ture Product ctio ion R&D / Procur curem emen ent Distrib tributio ution / Servi vice ce Profit fitab abil ilit ity

STRATEGIC AFFILIATES DRIVING SYNERGIES AND EARNINGS

Joint Venture with Veoneer

  • Pure electric
  • Hybrids
  • CMA
  • SPA
  • Cars
  • Engines
  • Faster to market
  • Lower cost
  • Increased

utilization of commercial system

  • Earnings increase
  • Economies of

scale

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SLIDE 17
  • 5. EMBRACING DISRUPTION AND PIONEERING

PARTNERSHIPS

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 17

OPEN APPROACH TO TECHNOLOGY AND MARKET CHANGE

Electric Cars  Well-positioned on EU CO2 target having flexibility to launch BEV at right time  Sharing costs with broader Volvo-Geely ecosystem  Phasing out diesel from all new models; no diesel residual value exposure  Target all new models to be electrified; effectively transitioning to 100% electrification Connected Premium Cars  All new cars produced are internet connectivity enabled  Focus on consumer experience to drive price premium and consumer loyalty  Transition to direct consumer relationships  Long term ambition of >5m direct customer relationships Autonomous Cars  Aim to be first to commercialise L4 AD on wide scale  Safety branding recognition among consumers and legislators  Provider of total solutions to Robotaxi operators  Long term ambition of L4 AD cars representing 30% of car volume Direct Consumer Business/ Subscription  Traditional and new consumer go to market model in place in parallel  Offers range of mobility solutions including subscription (Care by Volvo), Mobility per mile (Volvo Car Mobility) and Robotaxi  Long term ambition of 50% cars under subscirption1

Care by Volvo vo

 FLEXIBLE AND FAST MOVING  CONSUMER EXPERIENCE FOCUS  NO LIMITING LEGACY

Note: 1) Percentage of car volume produced and delivered through subscription services

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SLIDE 18

(4.8) 7.2 6.5 (3.8) 4.7 2014 2015 2016 2017 2018

  • 6. SOLID FINANCIAL PERFORMANCE

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 18

Longer r Term Objective to Have a Capital al Structure re that Enables s an Invest stment Grade de Rating

Cash Flow From Operating and Investing Activities Net Cash (Net Debt) Position Development TRANSFORMATION FULLY SELF FINANCED SEK K 9.9bn bn

Free cash flow 2014-2018

SEK K 18bn

Net cash position 2018

(0.9) 7.7 18.9 12.5 18.1 (0.1x) 0.5x 0.9x 0.5x 0.6x 2014 2015 2016 2017 2018 Net Cash Net Cash/ EBITDA SEKbn SEKbn

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SLIDE 19

AGENDA

  • Volvo Cars at a Glance
  • Key Credit Highlights
  • Financials
  • Appendix
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SLIDE 20

155 203 254 273 359 173 168 170 198 185 68 64 69 101 98 71 68 42

2014 2015 2016 2017 2018

296 326 338 365 393

1 2 3 4 5

2016 2014 2015 2017 2018

PREMIUM PRODUCT PORTFOLIO DRIVES GROWTH

Retail Revenue Average Revenue per Unit

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 20

Units ‘000 +12% +8% 138 164 181 209 253

2014 2015 2017 2016 2018

+21%  Volvo Cars consistently delivered on volume targets  Established track-record of successful execution of product launches  High exposure to fast growing SUV segment 2016 2014 2015 2017 2018

SUV Estate Sedan Other

SEK ‘000 SEKbn

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SLIDE 21

9.5 16.0 21.5 26.2 28.6 2.1 6.6 11.0 14.1 14.2 1,5% 2014 4,0% 2017 2016 6,7% 6,1% 2015 5,6% 2018 % margin EBIT

PROFITABILITY TRAJECTORY

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 21

6,9% 2015 2016 2014 9,8% 11,9% 12,5% 2018 2017 11,3% % margin EBITDA  Benefiting from increased pricing and stronger sales mix  Expects considerable benefits from operational leverage in the future

EBIT EBITDA

SEKbn SEKbn

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SLIDE 22

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 22

7.2 9.5 10.2 10.1 12.1 5.2% 5.9% 5.7% 4.9% 4.8% R&D expenses % of Revenue 2014 2017 2016 2015 2018

R&D Expenses

Intangible investments Tangible investments 2016 2015 2014 2017 2018 8.6 9.2 13.1 17.0 13.6 5.2 4.7 6.4 9.7 8.5 10.1% 8.5% 10.8% 12.8% 8.7% Intangible and tangible investments % of Revenue

Note: 1) Net working capital = inventory + accounts receivable – accounts payable 2) Operating cash flow: EBITDA + net cash interests + tax paid + movements in working capital

2014 2017 2016 2015 2018

Net Working Capital1 Operating Cash Flow2

2016 2015 2014 2017 2018 6.8 2.8 (0.6) 3.0 5.2 9 23 27 25 28

CASH FLOW TRAJECTORY

Capex

SEKbn SEKbn SEKbn SEKbn

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SLIDE 23

LIQUIDITY AND NET CASH POSITION

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 23

SEKm

AS PER FY 2018 Liquidity and Debt Position Net Cash Position

SEK 18bn

Net cash position 2018

(0.9) 7.7 18.9 12.5 18.1 (0.1x) 0.5x 0.9x 0.5x 0.6x 2014 2015 2016 2017 2018 Net Cash Net Cash/ EBITDA SEKbn 40,200 21,500 2,200

Liquidity

13,300 23,700

Debt

1,600 55,100 18,100 31,400 Undrawn Credit Facilities Short-term Debt Long-term Debt Marketable Securities Cash & Cash Equivalents

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SLIDE 24

DIVERSIFIED FUNDING STRUCTURE

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 24

AS PER FY 2018

Prior to issuances during 2019

Loan and Bond Amortization Schedule of SEK 23.7bn Funding by Type

%

56% 44%

Bonds Bank loans 420 530 210

420 420 5,130

2025 2024 2019

2,360

2020 3,420 2021 5,550

3,000

2022 2023

5,130

2026 2,240 7,490 3,850

Bonds Loans

MSEK

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SLIDE 25

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 25

SYNERGIES

STRATEGIC AFFILIATES DRIVING SYNERGIES AND EARNINGS

4 HUMAN-CENTRIC BRAND IDENTITY

WITH SUSTAINABILITY BEING AN INTEGRATED PART OF COMPANY CULTURE AND STRATEGY

1

KEY CREDIT HIGHLIGHTS

6 SOLID FINANCIAL PERFORMANCE

TRANSFORMATION FULLY SELF FINANCED

ROBUST GROWTH TRAJECTORY

TRACK RECORD OF INDUSTRY OUTPERFORMANCE

2 EMBRACING DISRUPTION AND PIONEERING PARTNERSHIPS

OPEN APPROACH TO TECHNOLOGY AND MARKET CHANGE

5 TRULY GLOBAL

WITH UNIQUE CHINA POSITIONING

3

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SLIDE 26

AGENDA

  • Volvo Cars at a Glance
  • Key Credit Highlights
  • Financials
  • Appendix
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SLIDE 27

| VOLVO CARS – DEBT INVESTOR PRESENTATION | 27

VOLVO CAR GROUP OWNERSHIP STRUCTURE

Zhejiang Geely Holding Group Co., Ltd. Volvo Car Corporation Geely Sweden Holdings AB Volvo Car AB Volvo Cars consolidated subsidiaries Volvo Car Group Other Investors 100 % 100 % 1 % 99 % Guarantor of the Notes Non-consolidated entities with Volvo Cars ownership Volvo Cars (China) Investment

  • Co. Ltd.

Issuer