Volvo Group - three months ended March 31, 2007

• Net sales the first quarter decreased by 3% to SEK 61.0 billion (62,7) 1)
Adjusted for changes in exchange rates, and acquired and divested units, net sales rose by 2%
• Operating income decreased by 2% to SEK 5,328 M (5,430)
• Income for the period decreased by 6% to SEK 3,756 M (3,998)
• Diluted earnings per share amounted to SEK 1.85 (1.96) 2)

• Purchase of Nissan Diesel completed
In March 2007, Volvo’s acquisition of the Japanese truck manufacturer Nissan Diesel was comleted. Activity is currently high to integrate Nissan Diesel into the Group and, consequently, achieve coordination gains. Nissan Diesel is consolidated in the Volvo Group’s balance sheet as of the close of the first quarter of 2007. Sales and earnings will be reported from the beginning of the second quarter.

• Volvo acquires Ingersoll Rand’s road development equipment division
The Volvo Group’s acquisition of the American Ingersoll Rand’s road development division was completed in the second quarter. Intensive efforts are under way to create a new division for road construction equipment within Volvo Construction Equipment.



Volvo Group First three months
2007 2006 Change

Net sales, SEK M 1) 61,036 62,735 (3%)
Operating income
Industrial operations, SEK M 4,933 5,026 (2%)
Operating income
Customer Finance, SEK M 395 404 (2%)
Operating income Volvo
Group, SEK M 5,328 5,430 (2%)
Operating
margin Volvo Group, % 8.7 8.7
Income after financial
items, SEK M 5,407 5,472 (1%)
Income for
the period, SEK M 3,756 3,998 (6%)
Diluted earnings per
share, SEK 2) 1.85 1.96
ROE, % 18.6 18.2


1) Including Customer Finance. For further information on the Volvo Group’s new financial reporting structure, see Accounting principles on page 14.
2) Earnings per share are calculated after the 6:1 share split with automatic redemption, in which the sixth share is redeemed by AB Volvo for SEK 25 per share, which means that the number of shares are now fivefold.



Contacts

Investor Relations:
Christer Johansson +46 31 66 13 34
Joakim Wahlström +46 31 66 11 91
John Hartwell +1 212 418 7432
Noah Weiss +1 212 418 7431