Volvo report on operations 2005

• Net sales for the full year 2005 increased by 14% to SEK 231,191 M (202,171) Net sales in the fourth quarter 2005 increased by 15% to SEK 65,287 M (56,977) • For 2005, income for the period increased by 32% to SEK 13,106 M (9,907) In the fourth quarter, income for the period declined by 15% to SEK 2,994 M (3,504), impacted by a capital gain from the divestiture of Celero (+430) and a write-down of the holding in Blue Bird (-550) • Income per share for the full year 2005 rose by 37% to SEK 32.21 (23.58) Income per share for the fourth quarter declined by 13% to SEK 7.37 (8.45) • The Group’s operating margin for the full year 2005 amounted to 7.9% (7.3) In the fourth quarter, operating margin decreased to 6.5% (8.2), due among other factors to extensive product launches and realignment of production • Full year operating cash flow, excluding Financial Services, amounted to SEK 6.8 billion (11.4) after transfers to pension plans of SEK 4.4 billion (1.1) Fourth quarter operating cash flow, excluding Financial Services, amounted to SEK 5.8 billion (9.2) after transfers to pension plans of SEK 0.8 billion (0) • The Board of Directors proposes the Annual General Meeting an ordinary dividend of SEK 16.75 per share (12.50) Fourth quarter Year 2005 2004 2005 2004 Net sales,SEK M 65,287 56,977 231,191 202,171 Operating income, SEK M 1) 4,261 4,697 18,151 13,859 Revaluation of shares - - - 820 Operating income, SEK M 4,261 4,697 18,151 14,679 Income after financial items, SEK M 4,143 4,604 18,014 13,036 Income for the period,SEK M 2,994 3,504 13,106 9,907 Income per share, SEK 1) 7.37 8.45 32.21 21.62 Income per share, SEK 7.37 8.45 32.21 23.58 Return on shareholders' equity, % 17.8 13.9 1) Excluding revaluation of shares in Scania AB and Henlys Group Plc in 2004. As of January 1, 2005 AB Volvo complies with International Financial Reporting Standards (IFRS), previously known as IAS, as adopted by the European Union. Figures for the corresponding periods in the preceding year have been restated according to IFRS. In the comments on earnings on pages 1-21, Volvo Financial Services is reported in accordance with the equity method. Reporting in accordance with IAS 1 begins on page 22. Contacts Investor Relations: Christer Johansson +46 31 66 13 34 Patrik Stenberg +46 31 66 13 36 John Hartwell +1 212 418 7432

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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.

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