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December 2007

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Volvo 9-month report Göteborg, Sweden Report Facts Company name : AB Volvo (publ) Fiscal year end : December 31, 2007 Report title : Nine months ended September 30, 2007 President and CEO : Leif Johansson Number of books : 1 Quarterly report length : 32 pages Auditors : PricewaterhouseCoopers E-mail : christer.johansson@volvo.com Link to full report : click here	Report Rating 4.5/5 (Rating scale below) Profile-Mission (Excerpts, as from the report) The Volvo Group is one of the leading suppliers of commercial transport solutions providing products such as trucks, buses, construction equipment… The Group also offers financial services. The Group has about 83,000 employees… and sales activities in 180 countries. (ifc of Annual Report 2006) Key Figures (in millions, except per share and ratios) Net sales: SEK 200,849 Operating income : SEK 16,457 Operating margin : 8.2% Income for period : SEK 10,935 Earnings per share : SEK 5.37 Return on equity : 17.3% Equity to total assets : 26.0% (Source: figures sourced from the annual report) Major Competitors Daimler (Freightliner) Navistar PACCAR Caterpillar Komatsu

Strongest > Many companies tend to consider interim (or quarterly) reports as a compulsory exercise, and make limited efforts to analyze performance achieved (or not) and communicate it in plain language. This has never been the case of Volvo, who, whatever the situation, has always shown a commitment to making it thorough and to putting year events and figures in a strategic perspective. > Clearly segmented and commented Business area overview (see selected page overleaf), including 12-month rolling values. > Changes in net financial position over the last quarter and for the nine months ended. > Key ratios over 9 months include Gross and Operating margin, Equity ratio, Return on equity…

Stronger > Report printed and made available one month after the quarter end. > Clear distinction made between Industrial Operations and Customer Finance –also for ratios. > Separate section on acquisitions and divestments, with a table for specification of the effects. > Recap of year-on-year quarterly figures.

Good Too > Detailed statements for the 3rd quarter and 9 months ended. Not always easy for the reader to situate oneself.

Buts > Quarterly reporting -and related "guidance"- has been much criticized these last years, also because it often reflects a short-termist fashion and a pressure from the media –and analysts. Is it worth spending so much on it? > Group’s profile not provided in the quarterly/nine-month report. > Report introduction a bit understated and conclusion a bit of a rough road. > Charts wouldn’t harm to grasp the course and trends.

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Selected Page (p 8 of Volvo Q3 Report 2007)	Rating Scale 5 World-Class 4.5 First-Rate 4 Excellent 3.5 Fine 3 Average 2.5 Uneven 2 Ordinary 1.5 Deficient 1 Unsatisfactory 0.5 Uncompetitive The rating is based on ReportWatch internal desk research and does not take into account the independent Rating Panel’s judgment.