Slides
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Strategy update 6 November, 2025 Stockholm
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Agenda 2 Strategy update 2025 Introduction Winning customers who stay Our bridge to a fully electric future Why SPA3 is transfor- mative for our business Cost savings and synergies in practice Pathway to higher profitability and cash flow generation Ending remarks Break Q&A Lunch & mingle 01. 02. 03. 04. 05. 06. 07. 08. 09. Håkan Samuelsson President and CEO Erik Severinson Chief Commercial Officer Michael Fleiss Chief Strategy & Product Officer Anders Bell Chief Engineering & Technology Officer Francesca Gamboni Chief Industrial Operations Officer Fredrik Hansson Chief Financial Officer Håkan Samuelsson President and CEO
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Introduction Håkan Samuelsson, President and CEO 3 Strategy update 2025
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Executive Management Team 4 Strategy update 2025 Håkan Samuelsson, President and CEO Fredrik Hansson, Chief Financial Officer Helen Hu, General Counsel & Chief Corporate Affairs Officer Erik Severinson, Chief Commercial Officer Francesca Gamboni, Chief Industrial Operations Officer Hanna Fager, Chief People Officer Anders Bell, Chief Engineering & Technology Officer Michael Fleiss, Chief Strategy & Product Officer
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Strategy update 2025 How to put Volvo Cars back on track? 5 April 2025 Turnaround programme August 2025 Top line focus Today’s focus Update strategy Securing a steady course towards a new global position
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6 Strategy update 2025 Three key challenges to resolve if you want to stay in business Unique opportunities for all threeEnd of globalisation Hyper competition 01. 02. 03. Electrification
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7 Strategy update 2025 • Accelerate – let competitors slow down • EVs – range, charging time and price similar to ICE cars • Bridge solutions – Generation 2 plug-in hybrids necessary • Core compute enables one software for all cars – lower cost and better experience Common architecture and synergies enable us to create better products 01. Electrification is the future – Primarily better cars
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8 Strategy update 2025 02. End of globalisation – Regionalising a strong global brand • Regional empowered and agile organisation – build where we sell • Adapted products and marketing to regional requirements • Transparent regionalised offering – what is included? What is the real price? When can I get it? A strong global brand for the three main regions
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9 Strategy update 2025 03. Hyper competition – Chinese brands will capture a large share of the global industry • We have unique synergy opportunities for cost savings and to create attractive competitive cars • Modular global architecture and common parts, but East/West software • New, leaner sales and distribution concept Unique collaboration with Geely is becoming a clear strength
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10 Strategy update 2025 Let’s go a bit deeper
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Winning customers who stay Our path to profitable growth Erik Severinson, Chief Commercial Officer 11 Strategy update 2025
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Freedom to Move By Sweden For Life. Strategy update 2025 / Winning customers who stay Our mission is crystal clear, and founded on nearly 100 years of human-centric thinking. • Safer cars, as the world becomes more automated • Lead on electrification, to be part of the solutionto climate change • Cars that use advanced tech to improve lives, as everyone else strives for simply ‘the latest tech’ • All wrapped in beautiful Scandinavian design that strips away complexity and makes you feel good What makes us different? 12
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Strategy update 2025 / Winning customers who stay The commercial turnaround 13 PERFORM Profitable growth TRANSFORM Electrified, digital, customer-centric
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Strategy update 2025 / Winning customers who stay We will grow profitably through electrification 14
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Strategy update 2025 / Winning customers who stay The future is electric, but the pace to electrification differs by region 2025 2030 2035 1.1 2.3 3.2 BEV 2025 2030 2035 0.9 1.7 2.3 2025 2030 2035 2.0 1.4 0.8 2025 2030 2035 2.3 1.2 0.5 ICE/PHEV BEV share Premium market Non-BEV share Premium market Mn. Cars Mn. Cars 2025 2030 2035 1.1 2.0 2.8 2025 2030 2035 2.3 1.5 0.9 US & CANADA CHINAEUROPE 15Includes content from S&P Global Mobility, combined with Volvo Cars analysis and assumptions
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23% Strategy update 2025 / Winning customers who stay 22%18% BEV EX90 We have a competitive offer for every customer Volvo Cars’ premium market share large SUV, Europe YTD 2025 PHEV XC90 PETROL XC90 16 #1 in segment #1 in segment #2 in segment
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We are strong on SUVs – with EX60 set to fill a big gap 17 Strategy update 2025 / Winning customers who stay 30 cluster 40 cluster 60/70 cluster 90 cluster EX30 EX30 Cross Country XC40 EX40 XC60 EX60 XC70 XC90 EX90 JAN 21 200% increase addressable BEV segment* *Addressable BEV segment: • 920,000 (existing BEV products) • 2.8m (existing BEVs + EX60)
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18 Strategy update 2025 / Winning customers who stay BEV is our key driver for growth Total YOY BEV YOY Year-on-year growth in retail orders in Europe 2025 JAN FEB MAR APR MAY JUN JUL AUG SEP
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...but there are three things we need to solve Our answer Range anxiety Can go as far as an ICE car Charging Charges as fast as your average stop Price Priced as a PHEV – with better margin We have solved the top customer concerns for buying a BEV with the EX60 19 Strategy update 2025 / Winning customers who stay A BEV is a better car... Lower running costs Better performance More space and comfort More sustainable
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20 Strategy update 2025 / Winning customers who stay A customer- centric sales model
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21 Strategy update 2025 / Winning customers who stay Designing our offerings to what customers want Customers want to know: What is included? What will it cost? When will I get it? 01. 02. 03. Our answer: Precision Including instant delivery option Our answer: Transparency Online purchase option with transparent pricing Our answer: Simplicity All-inclusive offer
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22 Strategy update 2025 / Winning customers who stay A convenient new way to buy a car online, starting in Sweden, together with our partners Provide simplicity and transparency on the complete ownership offer: Clear, consumer-friendly monthly price with all-inclusive option including energy January No hassle Freedom and precision in delivery time meeting customer expectations: Immediate delivery option or tailor- made product built to order Q1 – Q2 Instant delivery WHAT’S NEW Car shopping being reshaped through AI: Faster, more transparent and conversational purchase decisions Future of buying Continuous implementation ~7,000 current Care by Volvo customers in Sweden as a starting point
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Strategy update 2025 / Winning customers who stay Attracting more people to the Volvo brand – at lower cost 23
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Targeting specific consumer groups, with key influencers in halo locations Halo product marketing strategy Digital and signal-based optimisation connected to online purchase offers 24 A new approach to marketing Strategy update 2025 / Winning customers who stay Targeting up to 20% reduction in marketing spend per car
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Growth Strategy update 2025 / How we will grow profitably • Through electrification • Product line-up, including a bridge to electrification • Brand strength, 100 years of heritage 25 • Lower commercial cost of sold car • Up to 20 % reduced marketing spend per car • Simplified car offer • Improved customer delivery precision Commercial excellence Commercial excellence Large potential in transforming the commercial system • Reduced inventory levels through faster customer deliveries Enabled by: • Central stock (off-balance) • Simplified offer structure (fewer variants) • Efficient order-to-delivery process (AI- supported) Figures show potential savings +1 p.p. Profit -10% Inventory +2-3 p.p. Profit Our ambitions
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26 Our bridge to a fully electric future Michael Fleiss, Chief Strategy and Product Officer Strategy update 2025
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In a nutshell Strategy update 2025 / Our bridge to a fully electric future 01. Fully electric is our future – we are ready when our customers are ready 02. A longer bridge to electrification with compelling long-range hybrid products 03. Increase Geely synergies 04. A more regionalised approach 05. Core compute enables one- track software for BEVs and hybrids 27
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28 Strategy update 2025 / Our bridge to a fully electric future The world is moving to electrification, creating an opportunity for us.
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Transforming to electric faster than other premium legacy OEMs Strategy update 2025 / Our bridge to a fully electric future 29 0% 10% 20% 30% 40% 50% 2020 2022 2024 Competitor A 0% 10% 20% 30% 40% 50% 2020 2022 2024 Competitor B 0% 10% 20% 30% 40% 50% 2020 2022 2024 Competitor M 0% 10% 20% 30% 40% 50% 2020 2022 2024 Volvo Cars PHEV Electrified share of volume +9 p.p. +17 p.p. +13 p.p. +29 p.p. BEV Includes content from S&P Global Mobility
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The transition to electrification is a fact, but the tipping points have moved out in time Strategy update 2025 / Our bridge to a fully electric future 30 North AmericaEurope Greater China Premium incl. Tesla Forecast now Forecast 1.5 yrs ago BEV NON - BEV 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 2025 2026 2027 2028 2029 2030 2025 2026 2027 2028 2029 2030 2025 2026 2027 2028 2029 2030 Millions Includes content from S&P Global Mobility, combined with Volvo Cars analysis and assumptions
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We are ready to go fully electric when our customers are Strategy update 2025 / Our bridge to a fully electric future 31 ES90 EX90EX40 EC40EX30 EX60
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32 Strategy update 2025 / Our bridge to a fully electric future We will build a longer bridge to transition from 20% BEVs today to 100% in the future
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...through affordable, efficient investments into upgrading our most profitable and popular SPA1 and CMA products... Strategy update 2025 / Our bridge to a fully electric future 33
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PHEVMHEV In short: we are evolving and transforming our powertrain offer with customer demand Strategy update 2025 / Product Strategy / Bridging electrification 34 Pure ICE BEV
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Strategy update 2025 / Product Strategy / Bridging electrification 35 In short: we are evolving and transforming our powertrain offer with customer demand Pure ICE BEVMHEV PHEV Electric car with back-up engine Upgraded PHEV Gen 1 PHEV Gen 2 PHEV
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36 Strategy update 2025 / Our bridge to a fully electric future We will do this while strengthening our margins
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37 Strategy update 2025 / Our bridge to a fully electric future Increased collaboration with Geely will be key to further reduce costs and get products to market quicker
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XC40/EX40 Strategy update 2025 / Our bridge to a fully electric future One of our best-selling products, built on a platform developed by a joint venture together with Geely We have done this before, with success 38 EX30 The introduction of the award winning fully electric EX30 was made possible by using a competitive small-car platform from Geely, tapping into the B SUV segment XC70 The newly revealed long-range plug-in hybrid with up to 200 km of pure electric range (CL TC testing cycle)
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39 Strategy update 2025 / Our bridge to a fully electric future We are increasing the cooperation between Geely and Volvo Cars, focusing on hardware • Standardised modules • Reduced complexity • Safeguarding quality and safety • Improved profitability
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40 Strategy update 2025 / Our bridge to a fully electric future A more regionalised product strategy for a more regionalised world
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Strategy update 2025 / Our bridge to a fully electric future 41 The XC70 is a hybrid that exemplifies our overall strategy 2019 2020 2021 2022 2023 2024 2025F 2030F China premium market development – The NEV segment (BEV, PHEV/EREV) will outperform ICE supported by incentives BEV PHEV/EREV ICE *transaction price above 200k CNY Source: Geely Group (incl. CAM and Insurance database)
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Strategy update 2025 / Our bridge to a fully electric future 42 The XC70 is a hybrid that exemplifies our overall strategy Electric car with a back-up engine 1,200 km without charging or refuelling Collaboration with Geely Component sharing = lower cost + quicker to market Regionalised product Developed for China market with China tech
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43 Strategy update 2025 / Our bridge to a fully electric future One-track software. One core computer. BEVs AND Hybrids! True software- defined vehicle
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44 Strategy update 2025 / Our bridge to a fully electric future 01. Fully electric is our future – we are ready when our customers are ready 02. A longer bridge to electrification with compelling hybrid products 03. Increase Geely synergies 04. A more regionalised approach 05. Core compute enables one-track software in BEVs and hybrids In a nutshell
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Cost savings and synergies in practice Francesca Gamboni, Chief Industrial Operations Officer 45 Strategy update 2025
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46 Strategy update 2025 / Cost savings and synergies in practice Delivering results – on cost efficiency Now, our synergy superpower takes us further, faster
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47 Strategy update 2025 / Cost savings and synergies in practice Leveraging scale Geely synergies in practice Cost benchmarking Culture & best practice sharing Increased commonality Building resilience
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Joint negotiations and common supplier panel 48 Leveraging scale Strategy update 2025 / Cost savings and synergies in practice Today Ambition 500 Own suppliers 130 Common suppliers 75% Common suppliers share of spend +50% Up to 8% Savings from joint negotiations Common suppliers
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Strategy update 2025 / Cost savings and synergies in practice Cost benchmarking Culture & best practice sharing Increased commonality 49 Accelerating impact Resilience Cost benchmarking Culture & best practice sharing Increased commonality Resilience
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50 Strategy update 2025 / Cost savings and synergies in practice Building competitiveness Commodity business plans and supplier strategies Execution Joint supplier negotiations and supplier panel Match pairs, ensuring one procurement Strategy Steering framework
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Step change ahead – structurally reducing costs 51 Strategy update 2025 / Cost savings and synergies in practice We are just in the beginning of our harvesting journey COST REDUCTIONS TIME TODAY 2-3% EBIT contribution
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Break We will be back online in 10-15 minutes 52 Strategy update 2025
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Why SPA3 is transformative for our business Anders Bell, Chief Engineering & Technology Officer 53 Strategy update 2025
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Strategy update 2025 On time On cost On quality SPA3: a game-changer 54
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55 Strategy update 2025 / Why SPA3 is transformative for our business Uncompromised, scalable BEV architecture SPA3: Areas of evolution 02. Cutting-edge BEV technology, vertically integrated 03. Fully software defined (one-track software) @Solberg: EX90 or ES90 plugged in image here please 01.
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Strategy update 2025 / Why SPA3 is transformative for our business 56 We believe SPA3 is the best EV platform in the world. As our first uncompromised EV architecture, it brings previously unseen benefits.01.
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57 Strategy update 2025 / Product strategy and global synergies Converging to one tech stack and one-track software Peak effectiveness in: • Cost • Scalability • Modularity • Upgradability • Manufacturing B C D E F Uncompromised BEV Electric car with a back-up Superset Tech Stack One-track software Shared modules and parts
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The uncompromised BEV platform rewrites the rules for automotive scalability 58 Strategy update 2025 / Why SPA3 is transformative for our business 01. Battery 02. E-machine 03. HVAC 04. Chassis 05. Electrical Unified setup for:
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Strategy update 2025 / Why SPA3 is transformative for our business 59 We are launching cutting-edge BEV tech that changes the game on product efficiency, customer benefits and cost.02.
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Strategy update 2025 / Why SPA3 is transformative for our business Mega casting and cell-to-body give us a competitive advantage One cast vs. ~100 welded parts -35% rear floor cost In-house design and assembly of integrated batteries -25% cost 60
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Strategy update 2025 / Why SPA3 is transformative for our business Total battery system evolution -15% Cost/kWh +10% Energy density +30% kWh -30% kgCO2/kWh -40% Charging time GEN1 (2020) GEN2 (2024) GEN3 (2026) -25% Cost/kWh +20% Energy density +10% kWh -40% kgCO2/kWh -15% Charging time 61
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Strategy update 2025 / Why SPA3 is transformative for our business Thermal system evolution GEN2 (2024) GEN3 (2026) -20% Cost -35% Hose length -30% CO2 footprint -24% Weight +50% Battery cooling capacity -33% Energy consumption 95 to 99% Air filtering capacity PM2.5 62
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Strategy update 2025 / Why SPA3 is transformative for our business Electric drive evolution -16% Cost (AWD) +45% Torque +30% Power +2% Weight +6 p.p. Efficiency GEN1 (2021) GEN2 (2023) GEN3 (2025) -18% Cost (AWD) 0% Torque +35% Power -11% Weight +1 p.p. Efficiency Check 63
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Strategy update 2025 / Why SPA3 is transformative for our business Vertical integration and horizontal optimisation are crucial to our strategy In-house hardware In-house software 64
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Strategy update 2025 / Why SPA3 is transformative for our business 65 SPA3 underlines our leadership in software defined vehicles • Better customer experience • Better quality • Lower cost 03. One software stack means all engineering efforts can be focused on a single direction to power all our products
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66 Strategy update 2025 / SPA3: a game changer Our SDV capabilities can deliver huge potential benefits to the customer... Core computer User experience computer Advanced zone controllers Consolidated ECU capabilities Connectivity computer AI-powered user experience One-track software SDV platform Customer experience Safer cars More efficient cars Ecosystem integration Excellent driving experience Innovative functions Outstanding user experience Faster, better-quality software updates
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67 Strategy update 2025 / SPA3: a game changer ...and to our business One-track software SDV platform Business benefits Core computer User experience computer Advanced zone controllers Consolidated ECU capabilities Connectivity computer AI-powered user experience First-rate cars for our customers that we can improve faster during their lifecycles Lower costs Accumulative (and faster) development for the future
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68 Strategy update 2025 / SPA3: a game changer One-track software is transformative for time and cost efficiency – and user experience Signal database Improvements New features OTA Q1 Release SPA2 & 3 One master for all cars with core compute Q2 Release SPA2 & 3 OTA Factory OTA Q3 Release SPA2 & 3 Q4 Release SPA2 & 3 OTA Factory
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Strategy update 2025 / Why SPA3 is transformative for our business 69 02. 03. 04. SPA3 is game-changing – and it is on time, and on cost, on quality In a nutshell 01. As an uncompromised BEV architecture, SPA3 delivers peak effectiveness in all the key areas – and is scalable across all segments We are launching cutting- edge BEV tech that changes the game on product efficiency, customer benefits and cost... ...with vertical integration and horizontal optimisation at the core Our latest cars are truly software-defined, delivering huge benefits to customers and our business... ...while one-track software is transformative for cost efficiency and user experience
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2) Audi doesn’t provide combined torque data, but states torque max in front: 275 Nm, and in rear: 580 Nm 1) In launch control mode (otherwise 360 kW) 3) In launch control mode (otherwise 4.4 s) Note: The data presented may contain inaccuracies and is subject to change 4) Kerb weight (EU) Unit Volvo EX60 Volvo EX60 Audi Q6 Audi SQ6 BMW iX3 Mercedes-Benz GLC e-tron Quattro 50 xDrive 400 4MATIC Car Dimensions Length/Width/Height mm 4771 / 1939 / 1685 4771 / 1965 / 1665 4782 / 1895 / 1635 4845 / 1913 / 1644 Wheelbase mm 2889 2893 2897 2972 Weight, unladen, with driver (EU) kg 2400 2425 2360 2535 4) Electrical System System Voltage Class V 800 800 800 800 Battery Cell Format Prismatic Prismatic Cylindrical Prismatic Battery Size (Nom./Useable) kWh 100 / 94.9 100 / 94.9 No info / 108.7 No info / 94 Electric Drive Configuration for AWD (Front/Rear) ASM / PSM ASM / PSM ASM / EESM PSM w.DCU / PSM 2-sp. Combined Power kW 285 380 1) 345 360 Combined Torque Nm 2) 2) 645 800 Charging DC Max Power kW 270 270 400 330 DC Charging time 10-80% min 21 21 21 22 DC, max added range & energy in 10 min km / kWh 255 / 38.8 250 / 38.8 372 / No info 305 / No info AC Max Power kW 11 11 11 / 22 (opt.) 11 / 22 (opt.) Range WLTP km 534-623 560-597 679-805 568-715 Energy Consumption Energy consumption (WLTP) Wh/km 170-198 175-186 151-179 149-189 Vehicle Performance Acceleration 0-100 km/h s 5.9 4.3 3) 4.9 4.3 Towing Capacity Max. trailer load, braked (12%) kg 2400 2400 2000 2400 Strategy update 2025 / Why SPA3 is transformative for our business The result: we are confident the EX60 will beat its main competition in key areas 70
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Pathway to higher profitability and cash flow generation Fredrik Hansson, Chief Financial Officer 71 Strategy update 2025
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Recap: Our pathway 72 Strategy update 2025 / Pathway to higher profitability and cash flow generation Bring down spend to secure profitability – cost and cash programme and beyond Use opportunities to grow profitably – well-positioned as the world electrifies Profitability Executing the SEK 18 bn cost and cash action plan, delivered faster than planned results Regionalisation Regionalised commercial and product offerings in key regions Electrification Positioned to grow and recover market share in fast-growing BEV and PHEV segments globally
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73 Strategy update 2025 / Pathway to higher profitability and cash flow generation Executing on near term 18 bn cost and cash action plan Reported quarterly EBIT margin development Successfully executing on the cost and cash action plan
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Our strategy builds a company for long-term value creation 74 Strategy update 2025 / Pathway to higher profitability and cash flow generation >8% EBIT Strong positive cash flows
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Our strategy builds a company for long-term value creation 75 Strategy update 2025 / Pathway to higher profitability and cash flow generation >8% EBIT Strong positive cash flows
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Sizing the strategic EBIT improvement INDICATIVEStrategy update 2025 / Pathway to higher profitability and cash flow generation 2-3% Profitable electrified growth • Expanded offer and proven track record of 2-3x electrified market share • SPA3 – We believe to be the best BEV platform in the world • Extended bridge to electrification – 2nd generation PHEVs >8% Structural long- term profitability 76
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Strategy update 2025 / Pathway to higher profitability and cash flow generation Positioned for profitable electrified growth Proven track record with 2-3x electrification market share 8% 17% 30% All cars BEV PHEV >2X >3X Market share 2025 YTD – premium served segments 65% 25% 15% 50% All cars BEV 80% 75% Share of premium where Volvo Cars has offer in segment 2026 Mid 2025 EX60 ramping up in largest BEV segment in the world Expanding addressable market in 2026-27 77
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78 Strategy update 2025 / Pathway to higher profitability and cash flow generation With what we believe is the best EV platform in the world SPA3 platform – priced as PHEV but better margins Technical specifications that make us smile
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Sizing the strategic EBIT improvement INDICATIVEStrategy update 2025 / Pathway to higher profitability and cash flow generation 2-3% Profitable electrified growth • Expanded offer and proven track record of 2-3x electrified market share • SPA3 – We believe to be the best BEV platform in the world • Extended bridge to electrification – 2nd generation PHEVs 2-3% Geely synergies & variable cost reductions • Execution of structured cost efficiencies • Hardware collaboration with the 3rd largest BEV player in the world • More local China products >8% Structural long- term profitability 79
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Strategy update 2025 / Pathway to higher profitability and cash flow generation Unique access to China cost, scale and technology Geely ranking #3 globally in BEV market share 1. 2. 3. Best selling BEV players YTD 2025 14.2% 12.7% 10.2% Enabling global hardware synergies... ... and scale in Eastern technology for China + local products with shared components 75% Common suppliers share of spend AD/ADAS Infotainment AI XC70 More to come... 80
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Sizing the strategic EBIT improvement INDICATIVEStrategy update 2025 / Pathway to higher profitability and cash flow generation 2-3% Profitable electrified growth • Expanded offer and proven track record of 2-3x electrified market share • SPA3 – We believe to be the best BEV platform in the world • Extended bridge to electrification – 2nd generation PHEVs 2-3% Geely synergies & variable cost reductions • Execution of structured cost efficiencies • Hardware collaboration with the 3rd largest BEV player in the world • More local China products >8% Structural long- term profitability 1-2% Indirect cost reductions • Fixed cost discipline • One-track software and hardware complexity reduction – enabling engineering efficiency • Delivering on the commercial turnaround 81
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Sizing the strategic EBIT improvement INDICATIVEStrategy update 2025 / Pathway to higher profitability and cash flow generation >8% Structural long- term profitability 2-3% Profitable electrified growth • Expanded offer and proven track record of 2-3x electrified market share • SPA3 – We believe to be the best BEV platform in the world • Extended bridge to electrification – 2nd generation PHEVs 2-3% Geely synergies & variable cost reductions • Execution of structured cost efficiencies • Hardware collaboration with the 3rd largest BEV player in the world • More local China products 1-2% Indirect cost reductions • Fixed cost discipline • One-track software and hardware complexity reduction – enabling engineering efficiency • Delivering on the commercial turnaround (2-3)% Depreciation & amortisation • Past product investments • Infrastructure investments made in electrification and SDV platform 82
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Sizing the strategic EBIT improvement INDICATIVE >8% Structural long- term profitability 2-3% Profitable electrified growth • Expanded offer and proven track record of 2-3x electrified market share • SPA3 – We believe to be the best BEV platform in the world • Extended bridge to electrification – 2nd generation PHEVs 2-3% Geely synergies & variable cost reductions • Execution of structured cost efficiencies • Hardware collaboration with the 3rd largest BEV player in the world • More local China products 1-2% Indirect cost reductions • Fixed cost discipline • One-track software and hardware complexity reduction – enabling engineering efficiency • Delivering on the commercial turnaround (2-3)% Depreciation & amortisation • Past product investments • Infrastructure investments made in electrification and SDV platform Strategy update 2025 / Pathway to higher profitability and cash flow generation 83
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Our strategy builds a company for long-term value creation 84 Strategy update 2025 / Pathway to higher profitability and cash flow generation >8% EBIT Strong positive cash flows
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85 Strategy update 2025 / Pathway to higher profitability and cash flow generation Finalising one-off infrastructure investments, lasting decades Investment Completion Košice plant BEV dedicated plant in EU 2027 Cell-to-body Inhouse assembly of integrated batteries 2026/27 Mega casting One cast vs. ~100 welded parts 2026/27 E-motors Efficient and optimised 2025 SDV platform First working on-the-road full software defined vehicle Done $$$$ $$ $ $ $$ Significant cost benefits
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2015 2020 2025 2030 86 Strategy update 2025 / Pathway to higher profitability and cash flow generation Entering harvest period with affordable investment frames Total investing cash flow excl. JVs & Associates Enabled by • Finalising one-off infrastructure investment • Structurally lower investments – one-track software • Access to high tech, low- cost China for China technology through Geely TODAY New Tech Manufacturing Platforms SPA1 Daqing factory Charleston factory CMA (Gen 1) Taizhou factory SEA (EX30) SPA3 (Gen 3) PHEV Gen. 2 SPA2 (Gen 2) E-motor Ghent (EX30) Košice factory Cell-to-body Mega casting Illustrative
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Our strategy builds a company for long-term value creation 87 Strategy update 2025 / Pathway to higher profitability and cash flow generation >8% EBIT Strong positive cash flows
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Ending remarks Håkan Samuelsson, President and CEO 88 Strategy update 2025
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01. Strategy update 2025 / Ending remarks Electrification is an opportunity and a driver for growth 02. 03. 04. 05. Unique access to China cost structure and ecosystem Affordable BEVs with SDV and core compute ready Infrastructure for future in place – back to affordable investment frames We will remain a strong global brand in a regionalised world 89 Volvo Cars’ unique benefits Meeting customer expectations 06.
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91 Strategy update 2025 Disclaimer This document has been prepared and issued by Volvo Car AB (together with its subsidiaries, “Volvo Cars”). By accepting this document, the person to whom it is provided (the “Recipient”) agrees to be bound by the following obligations and limitations. The information contained in this document contains forward-looking statements, expectations, and projections relating to, or associated with, Volvo Cars or the use of any of its vehicles, products, affiliates, or specific vehicles. No reliance should be placed on the information contained herein for any investment or other financial decision. Volvo Cars makes no representation or warranty as to the accuracy or completeness of the information contained herein and shall have no liability for any loss or damage arising from use of or reliance on this document and/or the information contained herein. This document and its contents are confidential and may not be reproduced, redistributed, or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose without Volvo Cars’ prior written consent. Volvo Cars gives no undertaking to provide the recipient with access to any additional information or to update this document or any additional information, or to correct any inaccuracies in it which may become apparent. This document does not constitute or form part of, and should not be construed as, an offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of Volvo Cars, and neither this document nor anything contained herein shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever.