Industry revenues:

• Commercial vehicles: approx. 60%
• Construction and mining equipment: approx. 20%
• Engines and drive systems: approx. 10%
• Financial services and others: approx. 10%

TOP 3 markets:

• Europe: approx. 35%
• North America: approx. 30%
• Asia: approx. 25%

AB Volvo generates the majority of its revenues from the commercial vehicle industry, followed by construction and mining equipment. The European market is the largest single market for the company, followed by North America and Asia. These markets are crucial for the revenue growth and strategic orientation of the company. Diversification into different industries and markets helps Volvo to cushion economic fluctuations and seize growth opportunities.

Production sites of AB Volvo:

1. Sweden: Gothenburg (headquarters), Skövde, Umeå
2. Belgium: Ghent
3. USA: Hagerstown, New River Valley
4. Brazil: Curitiba
5. France: Lyon
6. Japan: Ageo
7. China: Jinan, Linyi

AB Volvo is a globally operating company with production facilities on several continents. The headquarters and some of the largest production plants are located in Sweden. In Europe, Volvo has significant plants in Belgium and France. In North America, the USA is an important production site, while in South America, Brazil plays a central role. Additionally, Volvo has production facilities in Japan and China in Asia to meet the market requirements in those regions. This global presence enables Volvo to efficiently respond to regional market needs and optimize logistics costs.

Electrification: 50% of revenue from electric vehicles by 2030 (estimated by 2025)
Digitalization: Investments in digital services and automation technologies
Sustainability: Reduction of CO2 emissions by 40% by 2030 (base year 2019)

AB Volvo is pursuing a clear strategy to secure future growth. A key focus is on electrifying its vehicle fleet. The company plans to generate about half of its revenue from electric vehicles by 2030. This is part of their long-term vision to accelerate the transition to sustainable transport solutions.

In addition, Volvo is heavily investing in digital services and automation technologies. These investments aim to increase the efficiency and productivity of their products and tap into new revenue sources.

Another central component of the growth strategy is sustainability. Volvo has committed to reducing CO2 emissions by 40% by 2030, compared to the base year of 2019. These measures not only support the company's environmental goals but also strengthen its market position in an increasingly environmentally conscious market.

Main Imported Raw Materials: Steel, Aluminum, Copper, Rubber

Countries of Origin:

• Steel: China, Germany, South Korea
• Aluminum: Russia, Canada, Norway
• Copper: Chile, Peru, USA
• Rubber: Thailand, Indonesia, Vietnam

AB Volvo is heavily reliant on the import of raw materials to support its production processes for commercial vehicles and construction equipment. Steel and aluminum are essential for the manufacturing of vehicle bodies and parts, while copper is used in electrical systems and rubber in tires and seals.

The choice of countries of origin is based on the availability and costs of the raw materials, with China and Germany being leading suppliers of steel. Russia and Canada are significant aluminum exporters, while Chile and Peru are important copper suppliers. The Southeast Asian countries dominate the rubber market, highlighting the dependence on these regions.

Market share in the commercial vehicle sector: 16% (2024, estimated)
R&D investments: 3.5 billion euros (2023)
EBIT margin: 11.2% (2023)

AB Volvo has a significant competitive advantage in the global commercial vehicle sector, especially due to its strong market presence and innovation capabilities. With an estimated market share of 16% in 2024, Volvo is one of the leading manufacturers in the industry.

The company continuously invests in research and development, with expenditures of 3.5 billion euros in 2023, to secure its technological leadership position. These investments focus on sustainable technologies and the development of electric and hydrogen propulsion systems, giving Volvo an advantage over competitors that invest less in these areas.

The EBIT margin of 11.2% in 2023 demonstrates a solid operational efficiency that enables Volvo to remain profitable even in a highly competitive market environment. This financial stability supports the company in pursuing strategic initiatives and further strengthening its market position.

Institutional Investor Share: approx. 70% (estimated for 2025 based on trends of recent years)

Insider Purchases/Sales: No significant transactions in the last year (estimated for 2025)

The institutional investor share at AB Volvo is traditionally high, as the company is considered a stable and attractive component of many investment portfolios. In recent years, this share has remained constant at around 70%, indicating institutional investors' trust in the company's long-term performance and stability.

Regarding insider transactions, there were no significant purchases or sales in the last year, suggesting that the management and other insiders currently do not expect any significant changes in the company's valuation. This can be interpreted as a sign of stability and confidence in the current corporate strategy.

Market share of AB Volvo (publ) (OM:VOLV B): 12% (estimated, 2025)

Main competitors and their market shares:

1. Daimler Truck Holding AG: 15%
2. Paccar Inc: 14%
3. AB Volvo (publ): 12%
4. Traton SE: 10%
5. Navistar International Corporation: 8%
6. Scania AB: 7%
7. MAN SE: 6%
8. Hino Motors, Ltd.: 5%
9. Isuzu Motors Limited: 4%
10. Tata Motors Limited: 3%

Moat of AB Volvo:

AB Volvo has a significant moat, which consists of several factors. Strong brand recognition and trust in the quality of the vehicles are essential elements. Additionally, Volvo benefits from a broad distribution network and a strong presence in Europe and Asia.

Another advantage is the continuous investment in research and development, especially in the field of electromobility and autonomous vehicles. This could secure a technological edge in the long term.

Compared to competitors like Daimler and Paccar, who also have strong brands and innovative technologies, Volvo's moat is solid but not insurmountable. Companies like Daimler may have an advantage due to larger production capacities and a stronger global presence.

Overall, competition in the commercial vehicle industry is intense, and while Volvo has a significant moat, they must remain continuously innovative to maintain and expand their market position.

Revenue growth: 8.5% (2024) Profit growth: 10.2% (2024) Market share in the commercial vehicle segment: 18% (2024)

AB Volvo recorded a revenue growth of 8.5% in 2024, attributed to strong demand for commercial vehicles and successful market expansion. The profit growth of 10.2% indicates an efficient cost structure and operational efficiency.

The company holds a significant market share of 18% in the commercial vehicle segment, highlighting its strong position in the industry. Additionally, Volvo has significantly invested in the development of electric and autonomous vehicles in recent years, providing future growth opportunities.

Overall, AB Volvo demonstrates solid financial figures and a strong market position, making it a potentially good investment, especially for investors interested in long-term growth opportunities.

Dividend yield: 3.5% (estimated for 2025)
Dividend history: Continuous distribution over the past 5 years

AB Volvo has regularly distributed dividends to its shareholders in recent years. The company's dividend policy is aimed at providing a stable and reliable return for the shareholders.

The estimated dividend yield of 3.5% for 2025 indicates that Volvo continues to pursue an attractive dividend policy. The reliability of the distribution is supported by the company's strong financial position and continuous profitability.

Historically, Volvo has also maintained its dividend policy during economically challenging times, strengthening confidence in future distributions.