Report on 1999 operations

Volvo Group - Report on 1999 operations Excludin g Cars 1999 1998 1998 Net sales, SEK M 125,019212,936114,854 Operating income, excluding items 6,554 9,010 5,202 affecting comparability, SEK M Items affecting comparability, 26,695 (2,331)(1,650) SEK M* Operating income, SEK M 33,249 6,679 3,552 Income after financial items, SEK 34,596 11,619 M Net income, SEK M 32,222 8,437 Income per share, excluding items 12.40 14.00 affecting comparability and gains on sales of shares, SEK Return on shareholders' equity, 8.0 9.7 excluding items affecting comparability and gains on sales of shares, % * Items affecting comparability in 1999 pertain to the gain on sale of Volvo Cars. Such items in 1998 pertain to provisions for restructuring costs. Full-year 1999 * Net sales of the Volvo Group in 1999 amounted to SEK 125.0 billion, an increase of 9%, excluding Volvo Cars. * Operating income amounted to SEK 33.2 billion. Excluding items affecting comparability and Volvo Cars, operating income increased by SEK 1.4 billion, to SEK 6.6 billion. * High pace in focusing on commercial vehicles. Volvo sold its passenger car operation to Ford Motor Company and made a bid for all of Scania's shares. * The Board of Directors proposes a dividend of SEK 7.00 per share for 1999. Further on, the Board intends to propose the Annual General Meeting authorization for the Board regarding repurchase of Company shares. Fourth quarter 1999 * Net sales amounted to SEK 35.2 billion, which exceeded sales in both the preceding quarters of 1999 and the year-earlier quarter, excluding Volvo Cars. * The operating margin rose to 5.9% compared with 4.2% in the fourth quarter of 1998. ------------------------------------------------------------ Please visit for further information The following files are available for download:

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The Volvo Group is one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The Group also provides complete solutions for financing and service. The headquarter is located in Gothenburg, Sweden.