Slides
Page 1
October 23, 2026 Håkan Samuelsson, President & CEO Erik Severinson, Chief Commercial Officer Fredrik Hansson, Chief Financial Officer Report Q3 2026 Results Presentation Q3 2026 | Volvo Cars | Security class: Public
Page 2
2 Business environment much worse than anticipated SEK -3.7 bn operational loss1 in Q3 Market sharply down with local players increasing share Profitability of western premium brands declining rapidly Volvo Cars’ performance in China severely impacted Electrified cars under severe price pressure after withdrawal of incentives Volvo Cars profitability impacted by tariffs Recovery taking longer, with consumer sentiments at record low Relatively stable market and sole contributor to our profitability Volvo BEV share in Q3 at 45% - leading in premium industry Strong order intake for BEVs in a rapidly electrifying market 01 02 03 01 02 03 01 02 03 China United States Europe Volvo Car Group Results Presentation Q3 2026 Results Presentation Q3 2026 | Volvo Cars | Security class: Public 1) EBIT excl. share of income in JVs and associates and items affecting comparability
Page 3
3 Volvo Car Group Results Presentation Q3 2026 Reducing cost in R&D and corporate overheads Reinforcing our turnaround plan with additional cost actions of over SEK 5 billion Lowering variable costs and further utilising Geely synergies Concentrating Volvo production to 5 plants, joint assembly in Ghent and Chengdu Reducing 2,500 jobs through consultants, natural attrition, exit packages Adapting blue- collar workforce to current volumes To lower breakeven volumes and improve cash flows Actions 01 02 03 04 05 Results Presentation Q3 2026 | Volvo Cars | Security class: Public
Page 4
Volvo Car Group Results Presentation Q3 2026 Strategy with regionalisation and profitable growth through electrification First cars hitting roads already in 2027 2nd generation class leading PHEVs - start of production this year Next BEV on SPA3 with first deliveries after summer 2027 Localise production of XC60 in Charleston from Q1 2027 Two new China tailored cars mid 2027 01 02 03 04 Volvo Car Group Results Presentation Q3 2026 Results Presentation Q3 2026 | Volvo Cars | Security class: Public 4
Page 5
Results Presentation Q3 2026 | Volvo Cars | Security class: Public 5 Volvo Car Group Results Presentation Q3 2026 Actions to drive near-term performance • Reduce inventory and commercial cost, adapting to lower demand • Improve profitability per retailer outlet • Build momentum for XC70 in specific cities • Preparing for two new cars in 2027 China Stabilise and rebuild competitiveness US Profit over volumes Europe Seize electrification momentum • Targeting specific regions with the new long-range PHEVs • Restructuring market into four regions – California boost plan • Sales channel optimisation • Localisation of XC60 Q1 2027 • Build PHEV momentum with 2nd generation PHEVs, emissions now well below 50g • Expanding BEV line-up with new product in 2027 • EX60 ramping up
Page 6
Results Presentation Q3 2026 | Volvo Cars | Security class: Public 6 Volvo Car Group Results Presentation Q3 2026 EX60: Set to be one of our best-selling and most profitable cars 01 Total Europe orders over 50,000 02 Production ramp-up challenging, currently behind plan 03 Steadily increasing production and deliveries
Page 7
Financial Summary 7 Report Q3 2026 Results Presentation Q3 2026 | Volvo Cars | Security class: Public
Page 8
Q3 2025 Q3 2026 159 141 -11% Q3 2025 Q3 2026 161 131 -19% Q3 2025 Q3 2026 6.4 (7.4%) -5.6 (-8.4%) -3.7 (-5.6%) 5.8 (6.7%) -12.0 bn Q3 2025 Q3 2026 -4.3 -8.9 -4.6 bn 86 67 Q3 2025 Q3 2026 -23% EBIT (bn SEK, %) Cash flow from operating and investing activities (bn SEK) Wholesales (k UNITS) Retail sales (k UNITS) Revenue (bn SEK) Q3 financial summary Volvo Car Group Results Presentation Q3 2026 8 EBIT excluding share of income in JVs & Associates and IAC Results Presentation Q3 2026 | Volvo Cars | Security class: Public
Page 9
9 Volvo Car Group Results Presentation Q3 2026 Revenue impacted by lower volumes and one-offs Revenue bridge, in billion SEK Revenue Q3 2025 Volume Sales mix and pricing Foreign exchange rates Other¹ Revenue Q3 2026 -10.7 -3.5 -0.7 -4.6 86.4 66.9 1) Including used cars, subscription cars, sale of licenses, contract manufacturing, parts and accessories as well as items affecting comparability Results Presentation Q3 2026 | Volvo Cars | Security class: Public
Page 10
Multiple headwinds Volvo Car Group Results Presentation Q3 2026 EBIT bridge Q3, in billion SEK EBIT Q3 2025 excl. IAC & JV’s Volume Sales mix and pricing Variable cost1) Indirect spend2) Capitalised product development3) D&A Foreign exchange rates Other4) EBIT Q3 2026 excl. IAC & JV’s 5.8 (6.7%) -1.9 -2.5 -0.7 -0.8 -0.3 -1.2 -4.0 -3.7 (-5.6%) 1.9 1) Changes in cost of sales not explained through other categories, driven by higher raw material costs. 2) Selling expenses, administrative expenses, research and development spend as well as fixed manufacturing expenses. 3) Expenditures incurred during the development phase of a product that are recognised as an intangible asset because they are expected to generate future economic benefits and meet the criteria for capitalisation rather than being expensed when incurr ed. 4) Including parts and accessories, used cars, negative lithium hedge impacts, US tariffs in imported goods, component s ales, contract manufacturing, sold licenses and emission credits 10Results Presentation Q3 2026 | Volvo Cars | Security class: Public
Page 11
22 41 Liquidity Q2 2026 EBITDA Investments Other op items1 Net working capital2 Financing 23 32 Liquidity Q3 2026 64 1 -5 -4 -1 0 55 Solid liquidity amid headwinds Volvo Car Group Results Presentation Q3 2026 Cash flow bridge, in billion SEK Cash flow from operating and investing activities SEK -8.9 bn Undrawn credit facilities Cash 1) Change in other current assets and liabilities and changes in operating activities (incl. tax paid and non -cash items) 2) Change in inventories, accounts receivable and accounts payable 11Results Presentation Q3 2026 | Volvo Cars | Security class: Public
Page 12
12 Volvo Car Group Results Presentation Q3 2026 Lowering variable cost and indirect spend by SEK 5+ billion • Lowering R&D spend post SPA3 and HuginCorelaunch • Further structural efficiencies and automation reducing SG&A • Weathering the storm in China – driving cost efficiency awaiting a more regionalised portfolio • Increase number of common hardware parts with Geely • Reducing 2,500 jobs via consultants, natural attrition, exit packages • Full financial benefit by year-end 2027 • Restructuring costs of ~SEK 600 million to be recognised in Q4 Results Presentation Q3 2026 | Volvo Cars | Security class: Public Reinforcing our turnaround plan Actions implemented before summer 2027 Improved cash flows through improved margins and lower break-even
Page 13
Volvo Car Group Results Presentation Q3 2026 Looking ahead External challenges likely to continue • Tough external environment remains with continued expectations of severe weakness in China • EX60 financial contribution delayed • US recovery slower than expected 01 Short-term volumes severely challenged 03 Restructuring costs of ~SEK 600 million to be recognised in Q4 04 Positive impact from new products and cost actions expected in H2 2027 02 Cash flow supported by normal working capital seasonality, but impacted by volume challenge 13Results Presentation Q3 2026 | Volvo Cars | Security class: Public
Page 14
14 Volvo Car Group Results Presentation Q3 2026 Business much tougher than expected Conclusion Reinforcing our turnaround plan to lower break-even and improve cash flow Staying on course with our strategy – bringing out regionalised cars at speed Investments to affordable levels – ~30% down vs 2024 01 02 03 04 Results Presentation Q3 2026 | Volvo Cars | Security class: Public
Page 15
Q&A Results Presentation Q3 2026 | Volvo Cars | Security class: Public
Page 17
Modest net cash and prudent maturity profile debt composition 32.3 0.9 0.9 0.9 0.6 0.3 22.7 0.1 5.7 5.7 5.7 5.7 Liquidity September 2026 0.2 2026 0.2 0.4 2027 1.1 2028 1.3 2029 2.3 2030 2031 2032 2033 2034 2035 55.0 0.3 6.3 6.8 7.0 8.0 *Loans agreed to solely finance eligible projects in accordance with the Green Financing Framework Maturity profile and debt composition (BN SEK) Total debt 31.8 Net cash 1 71% 28% 1% Loans Green bond Loans GFF* Undrawn credit facilities Cash & cash equivalents Loans Green bonds Loans GFF* 172026-10-23Results Presentation Q3 2026 | Volvo Cars | Security class: Public
Page 18
Disclaimer By accessing 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 as in relation to the accuracy, completeness or sufficiency of any information contained herein or any other written or oral 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 opinions 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. Results Presentation Q3 2026 | Volvo Cars | Security class: Public 18 Report Q3 2026
Page 19
19 Report Q3 2026 Results Presentation Q3 2026 | Volvo Cars | Security class: Public