Volvo Group — Call Transcript 2026

Welcome to the Volvo Group Capital Markets Day 2026. It is 18 months since last time, yet again, we are in a special location. This time the headquarters of Volvo Construction Equipment in Eskilstuna, Sweden. This month, something extraordinary is taking place here. We have 4,000 customers experiencing our products and services. That's for later. Now let's go inside where the live audience is waiting. Again, most welcome and especially to you in the live audience. It is great to see so many familiar faces in the crowd. We have an intense couple of hours together where we are going to share our view on how we are thinking strategically and what we are doing proactively to capitalize on our strengths in a very dynamic market. Let's get into gear and welcome to the stage the Volvo Group President and CEO, Martin. A tractor enters to rock and roll. Really good. It feels really great, Kina, also from my side, of course, welcome to this Capital Markets Day 2026, Eskilstuna. The sun is shining. We have a fantastic program this afternoon also, because we have the setup, as you alluded to, with the Volvo Days with all the lineup of products. You will be able to test and feel and get the emotions of the Volvo products and solutions. Welcome everyone here in the room and, of course, also everyone online. It will be great. Martin we met 18 months ago in this setting. We were in New River Valley. The theme at that time was Gearing Up for Growth, which reflects an organization building capacity and momentum. This year, the theme is Built for Resilience and Growth. Slight shift in language. Why is that? Obviously we have been on a journey for quite some time now, with the objective of continuously building resilience that is important in business that is cyclical and in a world with many moving parameters. At the same time, of course, taking the growth opportunities that lies ahead of us. 18 months is a long period now. A long period. A lot of things have happened since. It has been really about continuing to building that position of resilience and accelerated growth. Yeah. That is what we will both see the achievements, but also what is about to come. Very exciting. Very exciting. Resilience and growth, you will recognize will be a major part of our agenda today. We're going to start with geopolitics and how the current situation impacts our markets and our position in it. Instead of giving you presentations, business area by business area, we are going to look at growth opportunities from a segment point of view. Absolutely. Towards the back end, how we are investing for our future. Should we get going? We get going. We get going. Martin, I know that many in the audience would like to hear your view on the world around us, so why don't you join me over here? Absolutely. We are going to look at many different aspects of our business today. I know, Martin, that you wanted to start with something which is really close to our hearts every day, our customers. Yeah, that is always a tough start for that because I get emotional only thinking about customers. I think it is like this, that of course, the Capital Markets Day. It's tempting to start with the strategies and the big picture and the big bets, what we want to do. At the end of the day, and often 95% of our time we spent, of course, on focusing on how to make our customers competitive, successful. We often say that the revenues and cash flow and earnings and building a stronger balance sheet, they're outcomes. They are not falling down from heaven. They are coming from customers that want to, and they don't have to work with the Volvo Group. That's the reason why we are taking that very seriously and spending a lot of time in all parts of the organization, in our business areas, in our different parts of the value chain to really make that successful. That is very important. We say that we live with our customers. It's very common that companies talk about customer focus, but you talk about customer obsession, rather. We are B2B, that means that for every customer, the solution that is really tailor-made for him or her, meaning that you need to understand the job to be done, and we will come back to that because that is one of the key factors of success in our industry. Never compromise the optimized solution for the customer. It's our job to make scale and scope and technology to happen. Customers couldn't care less about that. They want to have an optimized solution for their mission. Here comes the first tricky question today. Since we met in New River Valley 18 months ago, how many customers have you met? You asked me this question 1.5 Week ago. I could have missed that. It's not that tricky anymore. I asked Helena to backtrack that also, and we came up to Of course, I've met thousands of customers since, but with meaningful conversations, more than 20 minutes, where we have had feedback, 915. Yeah, two, three per day the year around. That is super important for us, because at the end of the day, we have millions and millions and tens of millions of data points and important feedback, obviously. That conversation about what is happening, what is the feeling and the different type of stories here. One example a couple of weeks ago was about this, a big customer, by the way, in Europe, talking about that, and we had a good conversation, both what we need to improve, it's always about that, obviously. Also, he ended that conversation by saying, "Thank you Martin and the team, for bringing my driver safely home. I mean, that is a fleet owner that has more than 2,000 trucks, and that really matters, of course, the driver attractiveness. Just as one example. Just to back up a little bit, two every day, 365 days a year, including weekends. That's quite a schedule, I must say. I'm just representing the rest of us. If you ask Stephen or Roger or Anna or everyone here, that is how we live together with our customers, because if we don't understand the job to be done together and build that trust, it will never fly. Martin, let's change topic a little bit and talk about geopolitics. I don't think anyone could have guessed where we are as a world today 18 months ago. No. I think that is always the case. Some wise guy did say that it is difficult to make forecasts, especially about the future. I think that is more valid than ever, obviously. We have a lot of moving parameters. We know that, and we need to live with that. It has been so during a long period of time. Now it's intensifying, obviously. We have a number of cycles coming together. We have the normal economic cycle, what will happen? We have the geopolitical cycle that is intensifying. We have demographics, we have technology, we have climate and energy transition, et cetera. There are quite a number of parameters to take into account. That's the reason why it's so important with the theme that we have today, because you can look upon that from a challenging point of view, but I think we have a good opportunity to look from an opportunity perspective. More in detail, how is this uncertainty impacting the Volvo Group? No, it is a lot about, obviously, continuing to build. That's the reason why resilience matters. Obviously, if you have the ability in a group to react if that is necessary, but more important, to act and be ahead of the curve. To do that with flexibility and speed, because that is important, that you continue also to have the right mix in your portfolio, both when it comes to the customer base, but also when it comes to the mix between, so to speak, equipment, revenues and recurring revenues such as service. A lot of these topics we have been working with, that is the platform for continuous growth, obviously. Mm-hmm. Just a couple of weeks ago, you were hosting a visit from Narendra Modi, the head of state of India. In times of regionalization, how important is such a relationship? Of course, it was an honor to have the PM Modi, one of the fastest-growing, big economies in the world, coming to Gothenburg. Think about that. The center of the universe. Yeah. That's true. I think, if we should have been humble, we should have been perfect, right? No, seriously. PM Modi, together with Von der Leyen and our Prime Minister, talking about the bilateral opportunities between Europe and India, but also, for us, obviously, an opportunity to talk about a very important region, India for India, obviously. We have a very strong footprint there when it comes to sales and when it comes to customer base, but also when it comes to India for the world, carry back a lot of great opportunities that we have there. We are now stepping up apart from technology, digital, also the fourth global industrial hub. We have Volvo Eicher commercial Vehicles. That is an hidden diamond, I think for everyone here included. Last year that ended March 31st, for VECV, they surpassed 100,000 vehicles for the first time. With a growth rate that is double-digit and with margins that actually are quickly approaching the group's margins. This is an asset that we are very proud of, both when it comes to that development, but again, how they are taking care about the customers and the whole Indian ecosystem. There is obviously a lot happening in our industries, and I think a talking point during the spring has been increased competition. You mentioned India, but there is obviously also China. What is your take on that? There's India, there's China, there are new entrants, there are technology shifts, et cetera. Where there is growth opportunities, competition will continuously, of course, intensify. That's natural because there are opportunities for everyone. Having said that, we also see that the competition is not only there, but they are good, they are speedy, and they are innovative. In a world like that, you need to continue to both maintain your strength, but also accelerate the number of areas so you are ahead of the curve. As I said, I think we have capabilities, assets, we have people, we have customer base, we have the financial position, but we have the innovation power to get the job done together with our customers. As in all competitions, and I like that, you need to always get better. That is why market economy really works, right? Being the best, that is what it will take to win. Being not the best is not an option if you want to compete in a global market, still being very local. Talking about innovation and technology, Martin, the last couple of years has been a technology race. We have been investing heavily. in traditional technologies. in more sustainable solutions. Going forward, how do you foresee that this will develop? No, we see that it is plateauing now. I think it's more the important, the reason behind that rather than the figures as such, because I think we have been very consistent in our capital allocation. Strong financial position, really the innovation to the table and also, of course, good returns to our shareholders. If you take that innovations, one thing is that we always will provide what the customers want. Meaning that now with the prolongation, we see a clear prolongation of, and actually a further acceleration of our combustion technologies, both with the traditional but also renewables. We continue to invest in that. We have created a number of platforms for the future that has brought us to a rather high level. Now we see that is plateauing and decreasing. We can take the BEV, the battery electric long range now, 700 km, best payload, and so to speak, the maintenance schemes, the charging times, what have you. Now that platform is there through our modular system, and we can really start to optimize. You don't have the same level of investments, but you have the platform to really build from. Same when it comes to certain capacity build-outs in North America, we'll come back to, for example. Plateauing and a slight decrease, that is not the same that we are stopping our innovation. No. Not at all. That brings us to the transition to a fossil fuel-free future. That's a tongue twister. Well done. Thank you very much. I've been practicing. How will the journey towards zero emission play out? What we see clearly is, of course, that the overarching theme, including, I think quite a lot in this audience, four or five years ago, has slightly shifted, if I put like that. Decarbonization as a theme for regions and governments is still there, but alongside decarbonization as such for the energy transition, it is also about resilience, it is national security, and it's competitiveness. You need to act with these four factors in focus. If you do that's the reason why we still commit to Paris, for example, because if you want to drive the energy transitions from these four angles, regional or national security, meaning regional value chains, competitiveness, resilience, and decarbonizations, that will be a winning formula. We need to be there, and we want to be there, and the customers wants to be there. We will come back and talk about that later. There is an expression that you use quite frequently in our internal events, and that is, "Excelling on the basics will still make you unique. Yeah. With that as a platform, what differentiates us as a company that will enable us to win? I think especially, and we have talked about it, Kina, this morning, when you have a lot of moving parameters that you need to, of course, incorporate and integrate in not only your strategy, but in your execution plans, you need to do that from an angle where it matters for real, regardless if that is new propulsion technology or AI or digital capabilities, and that is really get the job done, build trust with our customers. We have an extremely strong platform when it comes to the customer trust. That is an asset and a pride that we can never underestimate. That is coming, of course, over time to deliver that TCO, to deliver that uptime, to deliver that fuel efficiency, to deliver that safety, to deliver that comfort, not from time to time, but every day. You do that thanks to great people, and we believe in decentralized organization with the ownership mentality to make it happen. If you do that really well, it will still make you unique. I promise you. Martin, you wanted to start this conversation emphasizing our customers. How would you like to close? Closing that is, of course, about the first part here you see, how do we build customer trust? I can take these 915 great customers that we have really talked about, but also all the feedback we're getting in other channels and all the colleagues here. It's about product and solutions, but it's so much about our people, and how they are supporting our customers in all parts of the value chain, and how our customers feel that, the drivers feel that, their fleet managers feel that we are really working closely together. That feedback is super important. Often, actually, Roger and myself, we talked about that a couple of days ago, when we had an issue with, I think it was 1617. We were in Eastern Europe and talked to a specific customer, Martin is his name as well, by the way. He said, "Martin and Roger, we need to fix this now." He didn't say, "You have to fix it now," but, "We need to fix this now." That is the spirit. Thanks to our people. Mm-hmm. There truly is power in our people. Bearing in mind that we have 100,000 colleagues all over the world, that is a lot of energy devoted to winning the game. Take a look at this. It should come, I'm sure. I love this movie. Yeah, I love this movie, but I love our people even more, I think. Okay. I love the people, and I love the movie. Martin, we're going to build on what you were saying about being a resilient organization- Yeah The fact that we, over the last decade, have built a platform that enables us to lead from a position of strength. To talk more about how we have created performance resilience, let's welcome to the stage our CFO, Mats. You got a much more cheerful tone than he did. Yeah, I did. I don't know how to interpret it. Much better music. Mats, resilience and growth, why is that important? The short answer is value creation. It's essential for value creation, looking at resilience and growth. I think resilience really shows the kind of core capabilities that we have in our operations, but also our ability to execute. I think that is, to some extent, a prerequisite when it comes to growth. Resilience and growth goes a little bit hand in hand, I would say. Why don't we take a look at our performance journey, why don't you share your comments? It's a good journey. Looking at margin expansion over time, but even more importantly, coming back to resilience, that we have less volatility, it shows that we have been better in order to manage the business cycle as well. I think it clearly shows that in terms of the margin development. Martin? Just to add to what Mats is saying, of course, very proud of the journey together with the team here. I think there are a number of key factors. We talked about flexibility and agility, that we have a very clear toolkit, the centralized decision making, but also clear toolkit of doing that. We have been bringing a lot of innovation and technology to the table, where we have been successful also actually to driving commercial conditions and value creation, both for our customers and ourselves. Service development has been very important. Again, the recipe for success that we talked about. I'm very proud to see that this is a journey where all business areas and also truck brands have really made a contribution. We don't have any clear pockets of drag anymore, I should say. That is super important, obviously, both for resilience and growth opportunities. You mentioned services, which is, of course, a core pillar. Why don't we look at our services journey and maybe, Martin, you can share a few words. Also here, a very good journey, as you can see, over many years. Still opportunities ahead. The most important is actually maybe not the figures. It is really what we see when we have a higher penetration of service content together with our customers. We have a higher retention, we have a higher satisfaction and loyalty. From a customer perspective, super important. Then obviously as a very positive by-product, it is also the recurring revenues for us. Very proud of this, that is happening across business areas and geographies. You can see the smile, Caroline. As a CFO, I love service. Coming back to resilience and growth, the service business being less cyclical than the new vehicle sales, meaning that brings the stability and resilience. On top of that growth, what you can see over this time period, close to 5% compound annual growth rate. If we're looking at the recent data points where we are today, in fourth quarter and first quarter, between 5%-6%, providing growth as well. On top of that, high profitability, contributing to margin expansion. Service is great. That explains your happy face. Finally, Mats, let's compare with our peers. A little bit the same story over time. If you're looking at that in relative terms, you can see also a relative kind of improvements when it comes to resilience over time and less cyclicality. If you're looking at the latest data point here, representing them for truck, buses, and engines, we are actually best in class when it comes to the adjusted operating margin. A good development, relatively as well. Martin? Of course, again, proud of that journey, but this is relative, but more importantly, it's an absolute game also to continue to build our story with the potential we have. I would also like to comment, Volvo Construction Equipment, starting on the lowest point a little bit more than 10 years ago and have really built also a very strong foundation amongst the best now when it comes to margin, the margin expansion. I think it's time now, Melker, for some growth also, right? Maybe we can come back to that. Who knows? He will come back to that, I can assure you. I think it's fair to say we are very proud of this journey. We are happy but not satisfied. There is lots to do still. Mats, take the stage. Yeah. I will elaborate more when it comes to the resilience and growth. Before that, just spending a couple of minutes when it comes to the current situation now in the second quarter in terms of the trailing update. It's very much the same message as we gave when we reported the first quarter earnings in, I think it was April 24th, 2026. Looking at the different regions, we continue to see a solid customer demand in Europe for April and May. No big impacts when it comes to the Middle East crisis on the demand side in Europe. Looking at North America, we continue to see a strong customer demand, and we are now taking orders for the third quarter and fourth quarter in the U.S. We are gradually also increasing the capacity in U.S. then. We have a general cost inflation that is gradually increasing, this is the area where you can start to see impacts from the Middle East crisis, most pronounced when it comes to increases on the freight cost, but also on raw material side. That will have an impact on the cost side in the second quarter. Last but not least, we continue to see high utilizations when it comes to the trucks and machines, meaning that that is driving service revenue as well. All in all, a very similar message to what we gave when we reported the first-quarter earnings. Turning back to the more long-term development and to the resilience and growth theme. You already saw this slide. Good margin expansion, being resilient as well, and less volatile. There are also still room for improvements when we're looking at the financial development. Many of you probably recognize this slide from the previous capital markets day. This shows the adjusted operating income for Group Trucks for 2025. In two dimensions, basically, looking at the different truck brands and looking at the different geographical regions. As you can see, there are big differences between the different geographical regions in 2025. Overall, a pretty good adjusted operating margin given the environment, close to 10%. The difference, looking at the positives in terms of performance, starting with Europe, very good financial performance in Europe in 2025. Especially looking at Volvo Trucks that has been combining the market share leadership with a good performance. Also we can see Renault continue to develop in a good way, being close to the Group target of 10%. I would also like to highlight South America, or as you know them, being mainly Brazil with the footprint for trucks, where we have had a good financial performance despite very challenging external environment in Brazil. This is also reflecting our end-to-end way of working when we have an integrated model in Brazil, meaning that we are swift when it comes to adjusting capacity to demand. Looking down on areas with room for improvements, North America sticks out in that respect, as you can see here. Mainly due to the external environment, looking at North America. With low demand, mainly driven by a very tough financial situation for our customers, with yet another year of freight recession in the U.S., also in combination with tariffs and general cost inflation. Room for improvements, also in our own operation system in North America. The other one that sticks out being significantly below the target, that's the Transformational Ventures. You probably remember that I was quite granular last time talking about the Transformational Ventures, also guided that we will likely see an impact on the trucks margin of about 150-200 basis points. That is what you see on this performance. Going forward, we have done quite a lot on the joint ventures. What we can see now is between 100-150 basis points going forward in impact. To summarize, a fairly good development looking at overall profitability, but with rooms for improvements. Moving into the drivers or how we are driving performance overall in the Volvo Group with a couple of priorities. Martin already talked about the decentralized decision-making that we have. We are working in a decentralized setup, meaning that we have P&L responsibility, accountability far out in the organization. That is also combined with decentralized decision. We're utilizing the flexibility tools to adjust to the external environment using the flexibility tools we have in the system. We have price discipline. You have heard this before. We are adjusting capacity. We are not using pricing in order to drive volumes. We are increasing the service business. We have already talked about that, and my colleagues will talk much more about the service business, but also how we are driving the total offer being very important. Last but not least, cost control. We have a culture of being cost-conscious in everything we do, and that is something we are proud of. Moving in then to the portfolio, this is also a slide that probably many of you recognize from previous Capital Markets Days as well now. We have actually done quite a lot when it comes to the portfolio since the last Capital Markets Day. We have addressed some of the low performance. We have divested the SDLG for CE. We have made a decision to exit the Rokbak business, but we are also adjusting a little bit when it comes to the ventures with a new business model for Flexis, and we are also welcoming Toyota into the cellcentric joint venture, which is important. We are also making more forward-leaning, growth-oriented changes in the portfolio. We have the Mexico footprint to facilitate growth, and this is something that Roger, Steve, and I believe Jens will talk a lot about later on. We have also made acquisitions, and especially looking at the retail and service side, acquiring Swecon for construction equipment and the deal in Western Australia for Volvo Trucks. Very growth-oriented investments. Nils will talk a little bit more about autonomous later on today, which is also a really exciting growth area that we see. To summarize from a financial point of view, we have built resilience, and we are ready to accelerate the growth. I think this chart really shows that our strategy has been serving us, customers, and the owners really well. Thank you so much, Mats. We will see much more of you later. We will. Please take a seat. Martin, looking at this slide, it happens to coincide with the same time period that you have been the CEO of this company. What would you say has been paramount to the creation of resilience under your leadership? No, it is the teamwork. We are 150, 160 countries around the globe, it needs to happen every minute, every second out there. To give the opportunities for our teams to succeed has been super important for me, for the executive team, and I think we have been successful in that. Also in a good way then combining this customer obsession with the scale needed and a number of other factors that we have been alluding to, it's teamwork really that is driving that. That we are long-term and consistent in our way of thinking here. Customers must win. That is good for the company. If that is good for the company, it's good for the owners of the company. That's the logic. This is not the end of the journey, I hope. It's not the end of the journey. The day you think that's the end of the journey, you should do something else, probably. Still lots to do. Great to hear, Martin. We're going to drive into the next part of the program. Look at the key value levers driving resilience and growth. Now the stage is yours. Thank you, Kina. What we would like to do in a couple of minutes is to pull together a little bit the introduction here with a number of main conclusions about what has happened, but more importantly, what is the journey that is about to come for us and what are the key levers, as Kina said here. The starting point, obviously, is this one, that the global demand for transport and infrastructure solutions, logistics, and also compounded by a number of factors that we'll come back to, will continue to grow across markets and the underlying trends of that. It's very strong, obviously. The commercial opportunity is there. Each job to be done for different reasons, and I will come back to that, needs to be more efficient, more safe, and eventually more sustainable to stay competitive. That is the starting point, and we take it from that. Obviously there are a number of very important transformative elements happening now. Little bit busy slide. Bear with me. I've done it myself. That's the reason why it's not that professional. It's an important one because we are super excited. That's the reason why we love our business, is that we are participating in a wealth creation for nations, societies. It's such a clear relation between advanced logistic transport infrastructure systems and the GDP per capita development and absolute level. The more advanced, the higher drive for GDP. That's a great starting point, right? We also know that both logistics and transportation and infrastructure development also comes with a number of side effects. We are constantly improving these side effects, but they are there to some extent. It is about climate, but also pollution in cities. That I should argue for some of the big regions, especially the pollution topic in big cities is one of the key drivers of doing things, right? Noise congestion. Talent acquisition, super important. The driver attractiveness. There are two sides of that coin, either autonomous solutions for certain applications, but also constantly evolving when it comes to the driver attractiveness, and then obviously energy resilience, the energy transition. To move that into green will be the winning formula. Of course, there are parameters that we need to take into account in order to make that happen. The regulatory push is obvious in many different markets and regions, and that is important. Without some of these regulations, things will not happen if they don't have natural links to the market mechanics. Market mechanics also, of course, very important, and customer pool combined with the market mechanics to create the right type of TCO, but also other incentives, market incentives, enablers I will come back to in order to make transformative elements happening. Then, of course, the technology development that is also further than accelerating now. There are, of course, different priorities for different stakeholders here, but at the end of the day, we need to relate to it together with our customers to be successful. That is how we drive business forward here. In order to do so, it starts with a job to be done. It's easy to aggregate this to high levels. It's easy to talk about the bigger picture, which we eventually need to do in order to pull together scale, technology bets, industrial footprint investments, et cetera. But at starting point, it starts with this. It starts with the solution for the customer. Here I've just taken one example, and I've taken an example that is pretty well-known in order to make the point here. That is typical long haulage application in Europe, probably 120,000-125,000 km. Quite many customers doing a lot more there, but we took that for the point. A 4x2 tractor, in this case, a diesel ICE operation. What you don't see in this P&L, because every equipment is a profit and loss statement with a heart, but I will come back to the heart a little bit later, is the revenue generation. The revenue generation for the customer is, of course, the starting point if you make a P&L, and there payload, uptime, and availability, and durability is, of course, super important. Here we are talking about the cost elements of the P&L. What you see in this specific application, the vehicle including trailer. The equipment as such stands probably for, depending a little bit on country, 12%-14%, 15%. I would make it clear for you that we are not the cheapest here by far on this diesel execution if you take a Volvo truck or a Renault truck. We are pretty competitive when it comes to the vehicle here since we have such a great residual value. Price minus residual value is, so to speak, the component, what we look at here, the 12%-15%. The more important piece of this is how does that affect the rest here. Energy efficiency, uptime, driver attractiveness, safety, comfort, availability, both for top line and cost. That logic prevails regardless of region, application, segment, and it will always be the competitive set, the solution for the customer. How do we produce that? We produce that through the total offer. The total offer is a combination of products and solutions that are eventually offered to be tailored for every application customer, segment, and geography. I will not go into detail here because my colleagues will touch on how we really execute on this in today's landscape. It is important to continuously build a modular platform around this to be successful. If we then take another example now, one of the transformative elements, because when I describe the transformation, that could be seen as, for example, propulsion technology, moving from a diesel or an internal combustion engine, even from a diesel to a renewable or from a ICE or internal combustion engine to a battery electric or what have you. If you take the battery electric here, what has happened since we last met 18 months ago? Some good news and some a little bit more challenging news. I will start with the good news, guys. The good news is that the logic here is exactly the same as for whatever. The cost elements might be a little bit different, but the logic starts with the same, that you need to specify this to the exact need of the customer for long haul or for construction or for an excavator or for a bus, right? What we have seen then is obviously, number one, that uptime, availability, safety, but also the infrastructure around will be even more important, right? We have been early out. We have learned a lot around that, even if it's not scaling yet. In Europe and North America at least, Global South as well. We have also seen that some of the critical cost components are coming down quicker than we anticipated, but also that the global access of that for companies like us, both when it comes to internal innovation and of course also when it comes to our global supply partner ecosystem, is there to a higher extent. That makes us possible also to continue to develop that, and in particular, of course, battery technology from cell all the way up to pack. The ability to still tailor-made a solution is there to drive the same type of outcome. What is a little bit more discouraging about this is that the equation in order to make this happen is going too slow in some of our key markets. When we look to this now here, we see that segment by segment and application by application, we are actually getting to a TCO parity or even better in certain cases if you are factoring in the different parameters, city distribution, city buses, Anna, again there. Where is Antoine? We see it very clearly there. We see it in some of the segments also for you, Melker, et cetera. That part of the equation is there, but what we see it's going too slow for certain other enabling conditions. That's the reason why I talked about enablers before in order to make this happen, and in particular in Europe and North America, but also in Global South, as I said. I would like to pinpoint infrastructure built out in particular for the public, and that's the reason why the depot type of solutions are going quicker. The energy and the grid network, but also uncertainties about the TCO parameters when it comes to. I will give you an example of that here. Here you see how it looks like now when it comes to the adoption of heavy duty. Zero in North America, 2% so far in Europe, and 28% in China. As you can see, it is pretty closely related to some other factors here. Here you have the number of charging stations in the relevant areas, and there you have the biggest on the public side. How you have decided to drive, so to speak, the pricing on public stations. When you see these differences, you will not be surprised that you don't have the same adoption level. The trick for us is obviously that we continue to drive that through our modular cost system, that we are continuing to refine the products, as I alluded to with our new BEV and the access to the key technologies here. The other angle of this, if you leave for one second the transformative elements that will be incorporated is, of course, that every, and this is illustrative of course, but at the end of the day, is hundreds of thousands of different applications. Every spot here represent just Mack refuse or an excavator customer in Hungary or whatever it can be. There are no shortcuts. We see some shortcuts, not shortcuts, but we actually see that is one of our most interesting, not trials and pilots, but use cases of how we apply digital intelligence and artificial intelligence is we have so much data, so we actually can drive the specification and support our sales force to even better refine that for every customer here. At the end of the day, obviously, it will turn out to be all these different type of pie charts. One pie chart here with different constitutions when it comes to the vehicle or the machine, when it comes to the fuel, when it comes to a lot of different things, needs to be really understood in order to make the high performance. The assets we have to make that happen are, of course, quite a lot. It starts with that we have a very clear view on how we are operating our brands around the globe. Volvo, the Volvo brand, Volvo Buses, Volvo Construction Equipment, Volvo Penta, Volvo Trucks, Volvo Financial Services operating globally. Of course also that we have our strong regional brands also to further unleash the full potential. This is not exactly true. We have Renault Trucks in other parts of the world, et cetera, but where we really have the inertia. That we have very strong retail presence. Global reach, yes, but extremely local, being there every day. Segment and application excellence enabled by our common architecture and shared technology. That is in essence how we can incorporate and combine the tailor-making with the scale and the technology leadership, innovation leadership, and speed to market. Then, of course, in a world with all these moving parameters, regional value chains, this is produced based on our recipe for success that we talked about. That customer trust that has been built up for years, a growing customer base that is truly trusting that we will do this together, that are living together with us, driving that TCO, uptime, productivity, safety, comfort, all the different aspects of the winning formula for our customers through a decentralized organization with speed and execution, Kina. Thank you so much, Martin, for giving us a strategic look at how we are going to grow. Maybe we can end by showing the different dimensions of growth. Yeah. You can combine the different dimensions of growth in many different ways, obviously. We have decided now to talk about it in these dimensions. The growing global demand we have been into. Also, that you will see more about today, how we are targeting specific regions and growth segments with even higher growth opportunities, still combining our capabilities and assets, and how we, through that, also can outgrow both the market, the specific strategically selected segments through our total offer, and how that finally also will drive content per unit, thanks to the optimization of the solution, basically. Coming to your point, Martin, that part of the resilience that we have created comes from the fact that we are present in so many different segments, and these are segments that we have chosen carefully and strategically, and that, simply put, gives us many legs to stand on. As I said in my introduction, we are going to focus on the segments today rather than business area by business area, Martin. Absolutely. The reason for that is, of course, also that we see a number of these segments coming together where we can combine, on one side, our global capabilities, assets, global network with what they need, but also because some of these segments contain enormous opportunity when we are pulling together the capabilities from different business areas. That is important. If you look at it, how it looks now, here as you see them, the growth segments fitting our core capabilities and common assets. The risk is otherwise that we, and we love that as well, obviously, that we will talk about our on-road freight, we will talk about the construction, maybe we will touch on some of these others. When we look at opportunities now, of course, they will continue here, and you will hear more about that, our core segments. On-road, both long and regional haul, as well as construction, enormous opportunities. The compounded opportunity that we see in urban logistics, public transportation, and obviously mining and quarry, where we are punching under our weight today when we look at our core capabilities and what we can achieve for sure, and we are now focusing on that, as well as defense, same here. Logistics, autonomous, last mile will play a super important role. Scale will matter with service capabilities and, of course, power generation. It looks 5% here, Anna will talk about something that I know that you will like, how we are growing quickly now when it comes to the AI and data center infrastructure. Exciting times, Kina. We have a very exciting hour in front of us. I think you have deserved a break now, Martin. Please have a seat, and we will obviously see a lot of you during the day. Thank you, Kina. Thank you. Thank you. We are going to accelerate straight into our first segment, which is on-road. Welcome to the stage, Roger. Roger, let me introduce you with being the man with probably the highest truck margin in the world. How does that feel? Certain pressure, but of course, we are very humbled for the situation, but also then extremely proud of what we are achieving together with our people and our customers, of course. You are present in a number of different segments. That's correct On-road is the largest. I would like to leave the stage to you to present how you're going from best to even better. Thank you, Kina, and good morning to all of you. At Volvo Trucks, we have a very solid track record of profitable growth, regardless of business climate. We have gone through very turbulent times, as you know, but we have continued to drive high profitability. Here you can see on the graph our strong improvements of net sales and operating margin since 2017. If we are going back to 2023, we have the strongest record year in 2023 with the margin close to 20%. We are operating from a position of strength. We have taken significant steps as well of improving our market share, but it's not only to improve the market share. We are improving profitable market share. In Europe, we are the market leader for two years in a row with a market share of 19.3%. In Brazil, we have grown our market share with more than 8%, and we are the market leader for the fourth year in a row. In Australia, we are keeping up a very strong and solid position. We have a proven track record to grow our market share. Therefore, we are extremely confident that we can do the same journey in North America. Our vehicle population, our truck populations, is building resilience into our business. We have a vehicle population of 10 years that is 1.1 million trucks running on the roads every day. The majority of the trucks are between three to six years old. That is the sweet spot of the highest service potential. If you look at the operating income from Volvo Trucks, we have a high profitability of new trucks driven by strong price realization. We also then have a very good profitability of the service business, creating a strong resilience into our business, but also that we are extremely profitable in high markets. We will manage high profitability throughout business cycles. Martin was into this, our customers, our fantastic customers. Our business is such an emotional part of our business, and we are emotional as well. We are working very tight with our customers, we have strong relations with our customers, and we know our customers and their business. We are constantly working on improving customer satisfaction. Today, we have a leading position, and we are winning together with our customers. I will move over to our growth opportunities for Volvo Trucks, I will go into four areas. I will talk about segments, I will talk about the total offer, I will talk about the services, growth in key markets. Let's start with segments in electromobility. We started electromobility in 2019. We have today models in all segments, we have eight models in production. We have delivered close to 7,000 electrical trucks to 50 countries around the world. These trucks have been driven in commercial operations more than 400 million kilometers. We have built a lot of competence regarding electrical trucks. We recently launched our next generation of electrical products. Improved payload, reduced charging time, a range up to 700 km. This is a new benchmark regarding the electrical trucks in the industry. Moving over to our fantastic long-haul trucks. This is a new era of trucks into the industry, setting a completely new standard regarding design. They look completely beautiful. Fuel consumption, severely improved. Safety, a lot higher safety system, driver comfort. The all-new VNL, 10% fuel reduction. The FH Aero, 7% fuel reduction. You can imagine that impact on the bottom line from our customers. We have strong deliveries of both models in production start. We have an amazing growth opportunity with these fantastic products to gain further profitable market shares. Another growth area is mining, construction, and quarries. Here we are working together with Volvo Construction Equipment. We have a broad range of trucks available into these segments. One is the FMX. That product is proven to handle the toughest jobs in the industry. Here you can see on the stage the electrical version. It's a powerful truck that runs up to 470 km. I will move over to our second growth opportunities, total offer. I will explain our way of working and the potential with the total offer. We have a customer that operate in a segment. We will provide a truck model and specify that truck and add all the needed features. We will get the very profitable truck price, but also a product with a high service potential. We will add parts, workshops, digital services, and uptime, and connect that with a service contract, preferably a gold service contract during a long duration period. Next step, we will add financing and insurance from Volvo Financial Services. We have maximized the revenue potential of the product, but we have also given our customer a very profitable product with high residual value and uptime. We have also then a lot of further potential to drive the total offer and gain further revenues into our business. Total offer is a win-win for us and for our customers. The third growth opportunity is services in a growing truck population. We have a truck population of 1.1 million trucks, 10 years old. Every time we sell a truck, we are increasing the truck population and the service potential. Total offer has enabled us to grow the service potential and secure the revenues. We have grown our service contract portfolio with 180% since 2017 to a value of SEK 70 billion. This is secured revenues for the future. To manage our service growth, we need a very strong distribution network. Now we are going to build an even stronger distribution network. Today, we have a distribution network of 2,500 service locations around the world. We own 330 ourselves. Our distribution network is a competitive advantage. We have built this distribution network for over 100 years. You don't do this very fast. Now we will build an even stronger distribution network, and we will do that by focusing on strengthening the private dealers. We will grow organically in selected white spots, and we will do that as well with selected M&As. Moving over to growth in key markets. We have a very solid track record of profitable growth in Europe, South America, and in Australia. Now we will take this proven success and scale that to other regions around the world. Let's look into Europe as a benchmark. Europe is an excellent example of very strong, profitable growth. We have increased revenues, we have increased margins, we have increased resilience and market shares. We have done that by focusing on profitable market shares, total offer, and then growing our service business. We have grown our market share to 19.3%, and we are the market leader for the second year in a row. Our European business is very, very profitable. Now we will do similar journeys in other regions all around the world, like in North America. We can still grow even further in Europe, like in Germany and other countries, and also then with services. Another key region for growth is, of course, North America. We will grow in North America now with our new product range, with new capacity in Mexico, with services, and then investments by our dealers. We are focusing on segment, very focused, and we are conquesting a lot of new customers. Now we are increasing capacity in North America due to a very, very strong order intake. India is also another potential for growth. With the industrial hub in India, we will create opportunities to grow in India and the rest of Asia. To sum up, at Volvo Trucks, we have a solid track record of driving profitable growth. We are acting from a position of strength. We have a proven record to grow our business. We have the strategy in place, we have the products, we have the network, and we have our fantastic people. Now we will take the opportunities in the areas to grow our business even further to be even stronger. Over to you, Kina. Thank you so much, Roger. Crystal clear as always. Why don't you join me over here? We are going to dig a little deeper into some of the key areas that Roger presented, and I would also like to ask Stephen to join us. We are going to focus specifically on North America, and it was pretty clear during our last capital markets day, the market share ambition that we have in North America, 25% combined Mack Trucks and Volvo Trucks. As Martin said, it has been a fairly challenging market out there. With a finger on the pulse, where are we, Stephen? Well, again, if I go back 18 months ago and we look at our heavy-duty market share for Mack Trucks, we were running about 6.5%-6.7% share for about three years in a row, really driven by constraints in the supply channel and also some capacity issues. I'm glad to say we worked extremely hard as an organization to solve those issues. If I look at 2025 results, we ended up at 8.7% heavy-duty market share. More importantly, if you look at the last half of the year, we ended up at 9.3% market share. 6.7%, last half of the year in 2025, 9.3%, and we continue to see good momentum for market share. This is driven primarily from just recapturing our business on the vocational side. Mm. That's a good start. Roger? No, we see where we are, where we are after May 2026, and we are taking the steps in the right direction. It's important that we take steps, and then growing shares, and then profitability at the same time. As Stephen were into then, that we are doing it together in a good way. We are building ourselves stronger. We are rolling out now the products. We are building the network and then capabilities of people as well to handle the higher volume that we are planning for. If we go a tiny bit deeper, can you share what we're doing specifically to gain more market shares? As I said in my speech here as well, it's important that we are conquesting new customers. We need more customers to gain market share. We cannot build this with the customers that we have today because we need to swim in a bigger lake, so to say. Conquesting customers, it's super important that we have the whole network with us to do that. To do that, we need to have more feet on the streets, more salespeople to do it. Then when a VECV population is growing, we need to have more technicians. We need to build out a network to cope with the higher VECV population and to grow our volumes on the market share. Stephen? I think I said we've got the core business going in the right direction, but there's this long-haul segment that represents 43% of the heavy duty industry, in the U.S., Canadian market, and we've not tapped that yet. The good news is, with the launch of our Mack Pioneer and our all-new Mack Anthem last year, we now have the truck to do this. This is leading technology, 11% fuel economy, ride and drive and comfort are incredible, and the feedback we have from our customers shows that this is a truck that's gonna help us recapture our fair share of that long-haul business. Super excited about where we're going. the long-haul truck. When we were in New River Valley, we showed a photograph of a piece of land in Monterrey, Mexico, where we planned to build a new plant for both Mack and- Yeah Volvo Trucks. Stephen, 18 months later, what does it look like today? I was there 18 months ago with Jens and the team. Wow, what a change. The fact that we've been able to greenfield a brand-new plant, building trucks as we speak, and do this on time, on budget, just remarkable, and it just shows the dedication and the passion for our team of delivering this project, which will lead to higher truck sales for both brands in North America. All right. As Stephen said, compliment to that one, it's not only the building. You see the building looks just amazing, here we will build a lot of trucks then for Mack and Volvo. It's also then to connect the whole supply chain, with suppliers building up that strength and then growing their business and growing then the volume. Jens will come back to that later, we need to then work end to end, from our suppliers out all the way to the customers and our dealers. That is what we are covering now to really make it happen to take the next step. Stephen, Roger, you said it in your speech, another key area is obviously distribution. Super important in North America. We've seen a reduction of the ownership, which is important because we have big, strong dealers. We're now about 85 dealers, about 485 locations. These dealers have invested. They continue to invest not only in facilities, but in people, in technology, in inventory, and they are passionate about growing the business. What we are doing as well, we are having a detailed way of working with the dealers, how we are following up the dealers, how we are then tracking then the performance, how we are tracking then that they're doing the investments, and then making the capabilities. It's not enough that we are building a factory. We need to get it out into the distribution, we need to then get the support of the customers. The building blocks are in place. It's all about execution. Thank you for now, Roger. You will be joining us for the Q&A later. Thank you. For you, Stephen, it is time to go a little deeper, looking at how Mack Trucks is driving forward to reach our targets. Please. Super. Thank you. Good morning, everyone. Super happy to be here, in Eskilstuna. Just six years, I had the opportunity to be part of Volvo Construction Equipment, so it's good to come back to the headquarters here. Today, want to talk about Mack Trucks. I'm really excited to give a direction on where we're going, what's happening, and what outcomes are we starting to expect. In North America, really have four areas, or for Mack Trucks, we have four areas we're focused on. U.S. and Canada. That is our biggest opportunity. We also have our export market, which I'll deep dive a little bit here in a few moments. We have an Australian business, which is our commercial sales organization, leveraging the Australian dealers that we have access to, and we also have our production in Brisbane. A really good opportunity for Mack to continue to grow in Australia. Our last opportunity is Mack Defense. Today it is a fairly small operation, but we have been building up because the Department of Defense now has three major projects that they will be bidding on, and we will have a high potential to win some of these business. Our prototypes have gone extremely well. The feedback from the Department of Defense is that we are doing what we need to have the right product, and we are looking to bid these out in the next couple of years. These could be 2,000 trucks a year over a five-year period, up to a 10-year period, lots of opportunity for Mack to take advantage of our commercial Mack Granite and build out a military product. I would also say that we see starting to see an improvement, and I think Roger talked about this in our order intake. The first quarter was very soft on an annualized basis. It is about 170,000 truck heavy-duty market. That is extremely soft. We are seeing improvement in order intake. We are seeing a small pre-buy, and what I am happy to see is that a large percentage of our orders are sold orders, meaning that we actually have names tied to those accounts. Our dealers are also stocking up for those customers who have not made their mind up to purchase in anticipation of, again, stronger sales. Great feedback from our Mack Pioneer, as I said earlier. One bit of note, 45% of our sales are coming from conquest customers. For me, that is a really good indication that we are going to hit it out of the park with our Mack Pioneer and our Mack Anthem. As I said, the feedback has been super good, 11% better fuel economy, much better ride and drive, and a much more comfortable cab leading to what we think is the standard in the industry. Also, we launched, in Las Vegas Motor Speedway a couple of months back, our vocational lineup, a renewal of our Mack Granite, which is a key core product for us, and also the launch of our Mack Keystone product, which is both an on and off highway tractor, added to our existing portfolio. Again, more to come, but we are very excited about where we are in the U.S. and Canada for that market. Now I would like to move over to another slide and talk about where we are from a total market. If we look here, you can see 28% of our market is the vocational side, 29% is the regional haul side, and the largest being the long haul segment at 43%. You will see some good growth already in our vocational segment as we recovered lost sales and you can see 25 moving from 11.5 to 13.7. We continue to see good progress here, and again, quite a good order board going into next year. On the regional haul side, again, also improvement as we started to improve our supply base, going from a 7%-8%-11% last year, and again, good momentum going into this year, and into next year. Extremely important for us is the long haul segment. You can see even in the best of times, a 2.5% market share. This is our opportunity to expand, again, 43% of the market to new products that we feel will help us reach this, in the matter of a couple of years. Lastly, we'll move to the export market. This is an area that we're really excited to return to. We used to have a very strong presence when it came to the export market. We've selected about 18 countries that we're really focused on, but if we were to pinpoint, there's three markets for Mack that are super critical. The first is Mexico. This is about a 25,000 truck market. We now have Mexican trucks built for Mexican customers, and this will be a game changer for Mack. Instead of exporting from the U.S., we'll now have local trucks for local customers. Of course, we'll also be able to export those products from Mexico into Latin America. When I look at the other two countries that we're really focused on, it's Colombia and Chile. These are really good, mature markets, where you have strong fleets that are investing heavily in new technologies, sustainable technologies. Again, we feel like we're now at the right point in time to launch our product going into Mexico that will have both EU5 and EU7 technology to meet the emissions level. Again, super excited. With that, Kina, I'll turn it back over to you and, again, thanks for your time. Thank you so much, Stephen. A lot is done. Yeah Still much to achieve. Listen, we communicated some time ago that you will actually be joining the next CMD, either from your porch or maybe the beach or. I'm picking the beach You're picking the beach. The beach, yes. I was going to say the golf course. Yes You are picking the beach. Again, after 30 years with a group, super successful to be a part of this amazing organization. I think Martin and the team have just done incredible jobs, and I couldn't be more proud. We have an excellent leader coming on board, Wilson Lirmann. I've known Wilson for a number of years. He's led the Brazilian market for a number of years, run one of the largest distributors. I'm super excited to work with him in the transition, and I know he will continue to drive the Mack portfolio even further down the road. Thank you very much. Thank you, Stephen. I have a question for you in the audience. Has anyone been in San Francisco lately? Hands up. Melker, you're not Oh, there we go. Did you drive a driverless taxi? You did. In San Francisco or in the other 15 cities in the world where you can find autonomous taxi drives, autonomous solutions are really happening, and we are now going to spend some time looking at how autonomous is exploding in our business. To help us with that is, of course, Nils. Hey, Kina. Hello. Hey, my friend. Since we last met, a lot has happened in the autonomous space. Sure I was listening to the Uber CEO some time ago, and he was saying that in 15, 20 years, the vast majority of Uber rides will be driverless. Yeah, absolutely. I think the robotaxis are actually paving the way. They're paving the way for autonomous trucking. I believe actually that the deployment curve for autonomous trucking will be steeper, and it will go faster. BCG recently said that by 2035, 30% of all truck sales will be autonomous trucks. We have something ahead of us. Mm-hmm. That's a great opportunity, and I'll leave the stage to you to explain how we are going to lead the market, please. Thanks a lot. Martin has said it already. The global economy really relies on transportation. Transportation, in essence, is the backbone of our economy, but it is also the backbone of our modern society. Putting physical AI on the road through autonomous transport solutions, we are creating new growth potentials for our economies. By that physical AI turns into an AI which has a pulse and a purpose. It is the bridge between digital innovation and the physical movement of goods in our society. It is about sensing, thinking, acting with a level of precision that never gets tired, that never loses focus. It is about making split-second decisions, safety-critical decisions in a world which can be messy, in a world which can be unpredictable. We are putting physical AI to work right now, we are at the brink of making it happen. We will start introducing autonomous transport solutions to the U.S. market. It is a large addressable market. 70% of all goods are already today transported by trucks in the U.S. Last year alone, the market accounted for $900 billion in revenues. It is a growing market. Mass customization, urbanization, online purchase pattern, that are driving the growth, it is structural growth. It is a growth which is meeting a market which already today suffers from legacy problems, from bottlenecks. It is a market which is set for disruption. We all know about driver shortage. Already 80,000 driver positions are not filled today. It is forecast to double by the end of the decade. The shortage of drivers, of course, that leads to high driver costs. A human truck driver can only operate 10 to 11 hours a day. Our autonomous truck is always available. We will add significant transport capacity. Delivery liability is the other well-known industry problem. Our autonomous truck doesn't need a coffee break, doesn't need a lunch break. Our autonomous truck is always available. Our autonomous truck is not limited by legal maximum driving hours. We are enabling predictability of delivery time, we are enabling constant live tracking of the goods. Road safety, today very much impacted by driver fatigue, by the reaction time of the driver, the overall human error. Our autonomous truck is never tired. It is always awake. It sees with modern sensors much further than the human eye can see, it has a constant 360-degree awareness of its environment at any second of the day. That contributes to road safety, it also supports fuel efficiency, it will help driving insurance costs down. We do more than just addressing the pain points. It is about creating new value. That is what Mats Backman said. With our autonomous trucks, we will double the asset utilization. I said it already. A truck today can operate 10 to 11 hours. We can double that with our autonomous truck, 100% more productive. That step changes the economics of trucking. It is a paradigm shift, you cannot afford not to be part. We are also enabling fleets to grow. If you are in the U.S. today and you run a large fleet, you basically have two core competencies, the transportation business and hiring of truck drivers. Because the turnover ratio of truck drivers in the U.S. is 90% annually. We are fixing that problem with autonomous trucking. Now we have faster deliveries. Our trucks can go further. They can drive longer. By that, we are taking down delivery time. We do longer distances in less time. The result is a scalable, capital-efficient, higher margin transport model with a structural long-term demand from shippers, from carriers, from 3PLs, and from transport platforms. The industry forecasts that by the end of this decade, by end of 2030, the installed base of autonomous trucks will be 25,000. Only five years later, that number goes up to 220,000. In other words, in less than 10 years, one out of 10 trucks you will see on a U.S. highway will be driverless. That is a consequence of the step change in trucking economics. You cannot afford not to be part. Autonomous trucking is more than just replacing the human driver with a virtual driver. Autonomous trucking is a new transport system, and each transport system has its own ecosystem. We've built exactly that, and we call it Autono-Freight. Because the business model matters. It is a key question. Transport as a service, our way to go to market, will unlock the large-scale adoption of autonomous trucking because we remove the main barriers for market entry. By offering autonomy as a fully managed service, we lower the upfront capital requirement, and we will shift the operational, the safety, the regulatory responsibility away from the customer. We simplify the adoption through a single partner model. If you are a customer, you don't deal with an OEM, you don't deal with a virtual driver company, you don't deal with a dealer. You don't try to find a terminal operator. You don't need to hire operators. You don't try to chase insurance for an autonomous truck. You have one solution. This will drive adoption. With our approach, we are unique. What we've built, our solution, we call it Autono-Freight. It is difficult to replicate, and it gives us a competitive advantage. We have invested in this for a couple of years. We know what we're doing. We know this industry. Important is, we're good to go. Next year, Q1 2027, we will start operating. This is our driverless launch. In Q1 next year, we will have trucks on open roads without a human in the cab. We will introduce, during the year, autonomous trucking to more and more customers. By the end of Q4 next year, we'll have more than 300 trucks out on the road on the U.S. highway operating autonomously. 2028 and the years above, we will then utilize our strong position, and we will scale, and we will scale at industrial level. Let me summarize. We have a very large addressable market. We have a very strong value proposition. With our solution, we will be 100% more productive. We will double the asset utilization. We have built Autono-Freight, our unique ecosystem, which is difficult to replicate, which gives us a competitive advantage. We are in this business almost 100 years. We know how to manufacture. We know how to industrialize. That enables me to say now that we are approaching our ambition to generate $3 billion US dollar revenues within five years. $3 billion US dollar revenues, which are having margins which are accretive to the group. Our agenda, our timeline, our value creation is clear. As a brand, we have very solid customer relations which we can nurture. As an OEM, we know how to industrialize, we know how to scale. Volvo, we are a first mover, and we are here to scale this business. This is what we've planned for from the very beginning. Thank you so much, Nils. That's very exciting. I have been standing behind my desk there listening, I'm kind of wondering, what's in it for me as a consumer? What's in it for you? Yeah. Kina, not long ago, we were together in New York, right? You remember? If we would be today in New York, as it's season for strawberries, we actually come back to your answer question, San Francisco, California, that's where the majority of the strawberries in the U.S. are actually grown. There's a problem with the strawberries in the U.S. in the sense of that it takes four days to move them from California by truck to New York. If you pick a strawberry, the average lifetime is then five to seven days. Whatever you have on your plate then is not really fresh. The autonomous truck does it in two days. Kina, if I would offer you an autonomous strawberry, would you prefer that over a normal strawberry? I would prefer going to New York and eat an autonomous strawberry, Nils, if I could choose. Thank you. Thank you. They smell very good. No. Thank you so much, Nils. Thank you. Thank you. He thought he could leave with the strawberries. I think actually I'll share them with the audience to get some energy. I give them to you. You can pass them around. Thank you. It is clear that the on-road segment is looking extremely strong, with great potential for resilience and growth. Now we're going to continue with another segment, adding a lot of value to society, that is urban logistics and people transportation. I'm sure that all of you have heard the term urbanization. It is estimated by the year 2050 that 70% of the world's population will be living in cities. That basically means that all population growth going forward will be urban, adding approximately 2.5 billion people to cities over the three coming decades. With this comes a lot of challenges, of course, but also for a company like us, a lot of opportunities. To discuss this segment, let me welcome Antoine and Anna. Anna, let me start with you. What are the drivers that makes this segment so special? As more people live and work in cities, there is this increasing demand for efficient and reliable and safe public transport to make this environment function. Here, our solution really matters. It's also very exciting in this segment because the transition to electric mobility is really happening now. Today, 40% of the buses that we sell to the city segment is electric, and by 2030, this will be 80% if we are successful. A lot of transformation happening here as we speak. As Martin also shared earlier, in addition to the positive climate impact and reduction of bad air pollution, these vehicles are quiet. So it opens up for new ways of city planning and also makes cities more pleasant and attractive to live in. Mm-hmm. Do you see the same, Antoine? Anna, I see the same. I would say that this mega trend of urbanization is calling for an improved logistic system, primarily on the efficiency side, but as well on the electrification side. We see more and more electric vehicles running around the cities, and that's a faster-growing market. You said it, given the density of those urban agglomerations. If I take one example, as the light commercial vehicle business, which is where Renault Trucks is operating for medium and heavy vans, we see the market size today at around 1.5 million units, sizable in 2025, with an expected growth of about 10% by 2030. That's a fantastic opportunity we expect to grab as Renault Trucks. I know that urban logistics is very exciting for you at Renault. Why is that? Because at Renault Trucks, really, urban logistics has been in the DNA of the company for more than 130 years. When you look at our product range, Renault Trucks has the widest product range in the company and one of the widest in the industry in Europe. We are going from 2.8 tons with a small Traffic van to more than 50 tons with a heavy-duty truck. We are offering heavy-duty kind of service to our B2B customers. I would say our customers love it. Our dealers love it as well because that's a good complement to our offer. That's why we believe that Renault Trucks is very well prepared to address this growth market. Mm-hmm. Anna, turning to you. You have been on a fantastic journey during the last year, improving and creating resilience in your margins, moving from minus and now almost 10%. Very briefly, how did you achieve this? Yes. We've been on this journey, as you said, we call it our performance journey, where we have focused on developing our business and setting a structure where we can deliver sustainable profit over time. I believe the past years now, we have really proven that our strategy is serving us well and that we have built resilience, we have built flexibility to maneuver various external headwinds while protecting and also improving our profitability. Today, Volvo Buses, we have a very solid coach business representing 70% of our total sales. We have a selective approach in the city bus segment, and in both segments, we are truly driving solution sales, so sale of products and services combined to support our customers with productivity, uptime, and safety. Two years ago, we completed a structure change to our setup in Europe, where we moved from producing complete buses to focusing on chassis production and working with partners for the bus body production. This change of the model have resulted in lower break-even points and also increased volume flexibility. Now you have created this position of strength for yourself. How will you leverage it going forward, and where do you see growth opportunities? We will continue to focus on profitable growth. We will continue to leverage on our existing structure that is very much set for just profit and growth, and we are now operating from a position of strength. We have ambitions to grow both in the city and in the coach segment. In Europe, we are preparing for substantial growth, coming into our focus markets from low levels, but now with new product introduction, step by step, growing back. In North America, we have leading positions in the coach segments with more than 40% market share, both in Canada, in U.S., and in Mexico. Here, the primary focus is to keep those positions and continue to drive our service business. In addition to that, we also have ambitions to grow our business together with our joint venture partner, Volvo Eicher Commercial Vehicles, and we will start this year with selected markets in Africa, coming in with new product offerings. A lot of things happening in our company. Coming back to the city bus segment that we were into here in the beginning, the shift to electric buses is happening as we speak, and here we meet fierce competition. Our focus is to continuously improve our product offers, so we can provide the best total solution to customers so that they, in turn, can enable sustainable and resilience public transport to citizens. That was a very long list of growth opportunities that you presented. Yes Anna, Antoine, you have also made an impressive journey when it comes to improving margins. Indeed. The Renault Trucks of today is very different from the Renault Trucks 10 years ago. Mats mentioned it earlier this morning, that we have been in strong black figures for a number of years now, close to the company target. How did we do it? Primarily along three main dimensions. The first one was to leverage our medium and heavy-duty range, which is a strength of the Volvo Group, of being part of the Volvo Group, where we recovered the trust of our customers. Not only our customers, but we managed as well to expand our market share to 9.5% today in Europe. Quite a significant move. We, as well, applied a very strong pricing discipline. Pricing, pricing every day. As a fact, today, when we discuss residual value, which is really, I would say, the pulse of where the brand stays in Europe, now Renault Trucks in many markets is number 3, and in some markets number 4. That's an outstanding result. The second dimension we've been focusing on is, similarly to what Roger explained, is to have a far better service delivery, more consistent delivery to our customers across the network in Europe primarily, but as well in some international markets. We have 1,500 service points, and we want them to offer the same service, a total of concept across the globe. Last but not least, this is what we've been talking about, this LCV business, which is a bit peculiar in the Volvo Group. We are the only one with this range, and we made it a profitable business with our partnership and co-investment with Renault Group. Now we are cruising at a decent pace and only creaming the market. We are not competing with the commodity players. We are more creaming the market with B2B customers, which are happy with a B2B service. Uptime, I would say on-time delivery. You have also created a position of strength for yourselves. Going forward, how will you gain market share and grab those growth opportunities? Today, we have established a dedicated organization on LCV. We are as well developing new solutions, and you see it on that slide. Again, applying a similar formula as the heavy-duty trucks. We are now moving to what we call customer adaptation or tailored solutions for our customers. Uptime, guaranteeing uptime, and you need to know that this LCV segment is adopting electrification much faster than the heavy-duty side. We are at 12%-15% in Europe, and with the recent developments in the fuel price, it's moving up. We are launching with Renault Group in H1 2027, the first software-defined vehicle platform, which was part of Flexis. Now it's going to be called Renault Trafic E-Tech. That's coming up soon. Very successful expectations since the product is outstanding. Very briefly, what will this lead to? This will lead to doubling the business. That's our expectation. Doubling the business for trucks at the horizon of 2030. Profitable today, even more profitable tomorrow. You know that we will come back on that when you give a number like that. I'm sure. Now you talked about competition and competition changing, and the two of you are probably the two in the group that meets this competition in the market every day to the most. Still, customers work with you. Why is that? First and foremost, I think our customers trust us. When we go into a market, they know we're there for the long run. We invest in local resources. We build competence. We build local partnerships, facilities. We are there to support our customers. This way of working over many years have built very long-standing relationships and also knowledge of our customer's business. To meet this competition, of course, we need to continuously improve our competitiveness, but also to build on this strength with the local regional presence and the strong Volvo Group global backbone. Antoine? I agree with Anna's arguments. I believe as well that the strong network we have, dealer network, is definitely a strong asset. Roger said it, 2,500 for Volvo Trucks, 1,500 for Renault Trucks. When you look at France, we have more than 330 service points. That's a clear barrier to entry, I would say, and a clear strength of our footprint. Thank you so much for now. Please take a seat. We are going to move into our 3rd segment, which is construction and mining. We are going to welcome to the stage the head of Volvo Construction Equipment, Melker. Where is Melker? Wow, that was great. Sorry for being late, but we are in the midst of our Volvo Days that we have here in June. 4,000 customers and other partners talking about our fantastic new products, our new services, i.e., the solutions that we are able to provide our customers with. Since I am here also, just can tell you just over there, we are right now building our new excavator plant here in Eskilstuna, but see you inside. That was so- Sorry, Kina It is so typically you. I promise this will never, ever happen again. I'm sure it will. What was that? Obvious question. Stunt driver or AI-generated? Actually, it was me. I don't believe you. It was me. I don't believe you. Actually, I can tell you that yesterday we had the opportunity with the team here to be out on the playground, and I must say that I was quite impressed by the skills of the team also. We stay close to our customers, and by that, close to our products. We know how to operate the big machines. Melker, we have been speaking about the Volvo Days. What are the highlights? Obviously, a big number of customers being here four weeks. You were a little bit a part of that yesterday evening, and you will be a bigger part of that today. Of course, we are demonstrating our products, machines, services. But even more, we are demonstrating our hospitality, how we treat our customers, how we take care of our customers, and how we care about the customer's business. One thing that makes me really proud and happy is the feedback from the customers when they meet our people, because we have more than 600 employees engaged in these days during June. When they meet the product experts, the business experts, they just love it. That is Volvo Days. We just saw some happy faces on the screen. Melker, you have also built a resilient organization during turbulent times. Yes, agree. Agree. By that, I leave it to you to dig even deeper. Thank you, Kina. I think Martin was quite clear earlier here about the expectations on growth. I would like to start with this slide. We have proven ourselves now when it comes to margins, when it comes to resilience, when it comes to profitability. As we know, that has been done during a period with a lot of external challenges, external headwinds. On the other hand, that's a lot of things that you cannot influence. Instead, do what you can. Influence what you can. We are taking a lot of actions, exiting paving business. We are discontinuing the Rokbak brand and the Rokbak business. During the autumn last year, we divested our ownership in the JV in China, SDLG. The combination of this with the actions and the earnings and profitability gives us the possibility to invest. To invest in the future, to invest in growth, and even more important, to invest in the Volvo brand. There are, of course, a lot of different things, people behind the improved performance, there are also two structural reasons. One is our global geographical spread, which is, of course, helpful during many times. Secondly, we are present in all industry segments. Being in all segments is, of course, helpful for us to maintain stability over the cycles. When it comes to growth, we have decided to have an extra focus on three segments: construction, mining, and quarry. We take them one by one and look at construction. That is today 50% of the Volvo CE revenue. It's big, it's growing. Demand, of course, coming from big infrastructure investments, urbanization, population growth. This is actually a very good fit to our investments we are doing in the excavator range and the excavator footprint. Moving into mining. Everyone loves mining, right? We also love mining. Big, growing. Of course, energy transition, supply chain security questions, et cetera. In mining, uptime and productivity is key. When I think about it, our products, our portfolio, our capabilities fits very well into mining. Here I see a big opportunity for expansion and growth, not at least within services. Then we have quarry and mining, very diversified business, very local business. Fits Volvo CE and the Volvo Group very well with the way of working and our broad network, so to say. Here I must say, Roger was into it, but the lineup we have in the Volvo Group now, if we take all the BAs, everything we can provide, we cover a big part of the customer needs in these segments. On top of all of this, all these three segments also see or have an increased need of sustainable solutions. I'm quite sure that you all have your projections of these different segments. We have, of course, with the CE, construction equipment lens and some external research, we have our view, and we believe that these segments will have a yearly growth of some 5%-6%. Of course, our clear ambition is that we should grow quicker than the market here. I guess the obvious question is how? How are we going to do this? Thanks to our heavy investments we have been doing, start with the products. We have renewed more than or around, I should say, 50% of our portfolio. Today, it's BEV, it's ICE, it's grid connected. We see now that we have up to 10% productivity gains. Productivity is done tons per hour. We have up to 30% on the efficiency, fuel consumption or energy consumption per hour, which gives significant better TCO for our customers. 20%, that's a lot. We have also invested a lot in new services that help our customer to improve the bottom line. Uptime productivity services, site solutions, parts, pay per, we call it equipment as a service, growing rental. I think we can say that we are a little bit proud because we have had good and profitable growth here the last years. The combination of this now, the combination of this is that we have the capabilities now to provide the solution for the customer. The solution for the customer, that is what is the perfect, complete customer offer. Another very important parameter for us in the growth journey is our decision to move more into retail. With the acquisition of the Swecon in the beginning of this year, we now have the direct customer interface in key markets like Sweden and Germany. Very important. Of course, this will help us to drive the long-term transformation of construction business. Even more important now maybe, this will help us to drive penetration of service contracts, penetration of parts, penetration of workshop hours. If you take Europe now, revenue from own retail moving from 30%-65%, of course gives a very good position for us to continue to drive the growth here together with our customers. We have also taken some decision to invest globally to make sure that our industrial footprint is matching our commercial footprint. Most important now is excavator expansion, excavator capacity. We are investing SEK 2.5 billion into our main site in South Korea, Changwon. We are investing in Shippensburg in the U.S. Actually, the first excavators was coming out from that plant just a couple of weeks ago. Very good for the situation in the U.S. Last but not least, as we speak, we are building our plant here in Eskilstuna in Sweden. Being a Swedish company, being in Sweden today, to have the opportunity to prove that we can be competitive building a vehicle plant in Sweden, 2026, is just great. The regional value chains with shorter lead times will be very important for us in the growth journey. To summarize, we have created profitability and resilience. We are investing in products, services, retail footprint. We are close to our customers. We are focusing on segments that we know will grow. We have better possibilities than ever to grow quicker than the market. That's my answer. Thank you, Melker. Thank you. Have a seat. Stay in your chair. I will I'm going to ask you to come up in a little while as well. Melker. When working in a diverse company like the Volvo Group, you get lots of different questions from you in the analyst and investor community, from media and from others. Lately, our last two segments have gained a lot of attention. It's power generation, and it is defense. We're going to start with power generation, so let me welcome Anna. Anna, I think it's fair to say that everything about Volvo Penta is power generation. You're of course well known for your marine business, but you have been part of the industrial branch since the very start. Absolutely. We love, live, and breathe power generation in Volvo Penta. Of course we are at sea, you all know that. We are also on land. We have been that since we as Pentaverken delivered the first engine to the first Volvo Cars. That was 99 years ago, so it's not a new thing for us. You are an incredibly innovative company. Yes, we are. Innovation is a very integral and important part of the Volvo Penta culture, and we have launched many groundbreaking innovations over the years, and I would say that we have redefined marine propulsion and boating again and again. Now we are also pushing the boundaries with our industrial products, with the latest edition, our G17, that is specifically targeted then to power generation and data centers in the U.S. Mm-hmm. We are curious to hear your growth story. Please. Thank you. Thank you, Kina. Thank you and welcome all of you here. Volvo Penta then. We have grown our revenue. We have doubled our revenue over the last 10 years, so that's a compound annual growth rate of 8%, and that is done with both marine and industrial. Today, marine and industrial represents 50/50 of our revenue. As you can see here, we have done that by increasing significantly the revenue per unit sold. When it comes to the marine business, that growth is very much coming from that we have increased our scope of supply. We have from the propeller to the helm station on the vessels. We have also grown into larger vessels. I would say that this is based on our innovation. The IPS system and the features that we have built on the IPS are fundamental drivers for that growth that you see here. When it comes to our industrial business, we have grown volumes. We have, in particular, grown volumes when it comes to our off-road business. We have been successful in growing into heavier usage applications, being very positive for our parts sales, and today, the service business represents 30% of the Volvo Penta revenue, and I would say it's still a further growth potential for us as we move forward. As you can see here to my right, we have accomplished this profitable growth with a very asset-light operating model. What is then the secret sauce of a Volvo Penta, you can wonder. First of all, the synergies in production and in technology with the Volvo Group are absolutely fundamental for the business model of Volvo Penta. That gives us access to high-volume automotive parts that we can bring to new segments that you can see here to the right. These represent some of our most important segments that we are addressing. Here in the middle, you see Volvo Penta. We are not only adding innovation. We are adding deep application engineering excellence, and we are adding a very close cooperation with our OEM customers. We are investing heavily in R&D on a yearly basis, 7%-8% over the last couple of years. We are doing that to develop our solutions to fit all of these segments and the various applications in those segments, all having different drive cycles, different requirements, and different emission regulations. If you pair this with a global commercial presence, a strong dealer network, and 2,624 very passionate and very skilled colleagues, you actually get the recipe and the ingredients for a successful, profitable growth journey. If you look behind me now, you see a couple of applications that are powered by Volvo Penta. We have widened our scope of supply, including everything from the propeller, to the stabilization, to the operation of the vessel, to the services. This is meaning that we are becoming an integral part of the design of the boat. We are a true system supplier for our marine OEMs and a true partner. We are bringing those learnings from marine into our industrial business. Here we are now launching, and we have launched connectivity services, productivity services on top of our traditional services. This is from this space that we are now taking the next step. The next step, ladies and gentlemen, will also be based on the Volvo Group common technologies, on innovation and deep application knowledge, and of course, a great team. On the on and off-road side, we are now adding more Volvo Group components to our engine offer to include, for instance, axles and gearboxes, and again, bringing the Volvo Group components into new adjacent segments. On the genset side, we call our next step the Power of Plenty. What does that mean? In particular for data centers, we make now modular solutions to compete with big block power generators. Multiple engines, matching large engines by competitive TCO, by competitive footprint, by a competitive deployment cost, and maybe even more important, availability. On the marine side, we have been working with multiple installations for many, many years, triple, quadruple. Last two years ago, we launched the Power of Plenty concept with our IPS professional system, attaching two engines to one drive. That is also then making us compete with larger engines, bringing us up into larger vessels. It is, again, Volvo Penta redefining marine propulsion, because this is providing our customers with more power, less fuel consumption, more space, better maneuverability, and flexibility. Because in the same engine room, in the same package, you can select two diesel engines, in this case, D13s, or one electric engine and one ICE engine, or in the very near future, two electric engines. A fully electric solution without rebuilding or redesigning the engine room. What does this mean in practice? That means that the Power of Plenty has already opened up high potential profit pools for Volvo Penta and for the Volvo Group, like the data center business. If you look here, you see a perfect example of a Power of Plenty concept. This is a Switch data center outside Las Vegas. I would say it's a mid-sized co-location. Here you see 300 D16s packaged in a Power of Plenty concept, providing the backup power for this data center. The whole integration and the packaging is done by our customer, then Central Power. We believe that the power and the cooling business of data centers will grow with a compound annual growth rate of 14% in the next coming 10 years. Today, the data center business represents 15% of the Volvo Penta order book, and I can tell you today that it is growing rapidly. If you look at the marine side, the Power of Plenty is making us move into larger vessels, like super yachts and heavy-duty marine commercial applications. Our ambition is to double our revenue, but not only in the industrial business, also in our marine business, where we see also more potential. We will double the revenue. The ambition is to do that within the next 5 to 10 years, sustaining a strong profitability and a strong return on capital. With that, if you look very, very carefully on the picture here, you see down to the right-hand side, you see a defense vessel. I believe that is a perfect segue to what we are going to talk about now, Kina. It is. Thank you so much, Anna. Thank you. You did my job. I love it. We are going to segue into the last segment, which is defense. Yes. Why don't you join me over here. Thank you I will also ask Antoine and Melker. Thank you. We opened this Capital Markets Day talking about geopolitics, I don't think that anyone has missed the need for Europe to build a deterrent defense. We know a few things. We know that logistics and infrastructure capabilities, they will be key. We also know by that many of the significant investments will be put in our sector. Here, the Volvo Group has a unique position because we can offer a wide range of applications, products, services that the defense industry needs. Starting with you, Antoine, can you describe the buzz around defense? As you said, Kina, we have a number of open conflicts in the world. All the armed forces are observing those conflicts and coming to the conclusion that everyone will have to invest. We'll have to invest in different equipment, but primarily in the logistic equipment, which are key for those conflicts, to bring all the different goods to the front or a few kilometers far from the front. That's a clear trend we are seeing. Every country starts to have a plan. I can tell you that I've been visiting many more generals, four-star, five-star general, in the last few weeks than ever in the past. They're all talking about investing, you need to know as well that they have not invested in logistic trucks for many decades. What we see as well, that we see a paradigm shift in Europe mostly, where they are moving away from tenders of big equipments, I would say, or very specified equipment only for military applications to more trucks coming from the civilian world lifted up to their needs and ongoing purchases. That's what we see across the world, ensuring forward and backward integration as well technologically, that's paramount for them. Would you like to fill in, Melker? Yeah, just can give a hint or a data point so you understand what's going on here. Today we have ongoing business with some countries in the Volvo Group. The number of countries that we are discussing future business with is double the size of the countries we are doing business with today. Just a flavor of what is going on here. I guess you recognize this as well, Anna. What are you doing to grasp this opportunity? No, we see warfare changing, and I think everybody recognizes that it's more units and autonomous units is what the military is looking for right now. We see that very clearly, that the navies around the world, the marine, is looking for volume and autonomous. The fact that we are controlling from the propeller to the helm station makes it very easy to integrate an autonomous solution on top of our electronic system. We are already delivering, and we are gearing up to deliver more, and a lot of the dialogue's ongoing. Looking at you, Antoine, what are you doing within Renault to grasp this opportunity? For Renault and Group Trucks at large, I would say then, as I said, we are adding some capabilities on our platforms to really develop military-ready platform for their needs. We are thinking of autonomous, of course, vehicles, but as well unmanned vehicles, which can be cheaper and faster to deploy. Melker, we said that one of the strengths we have is diversity. We can offer trucks, haulers, boats, engines, power generators. How do we synergize this and go to market as a group? I think you're partly into it here. We have learned now, all of us, that defense is a lot of logistics. It's on sea, it's on road, it's off-road. If you think about that versus our portfolio, it's a good fit. We come to the scale. Defense will not only be expensive, specialized equipment. We have our system, our production facilities, our volumes. That will put this in a total different perspective because we also know the drones. You can also think about what does that mean on land? That, in combination with, you said unmanned, remote operated and autonomous, all these skills and the capabilities we have will make a lot of defense organizations much more happy in the future when they realize what they can buy. Anna, finally, we also know that the ability to provide services, that will actually decide who will be the supplier of the vehicles. Yes. What is your take on services? It's clear. I think that goes for the group. We have a global, very dense professional service network. That is required by military, Navy around the world to have that. We can also, of course, train them to do certain service themselves, which we do today. Melker? I think the definition of uptime is really in this segment and everyone been talking about that, but the dense network and our service capabilities will of course be a super good fit for uptime for a while at least. You don't know how long, but when they're up and running, you need to have uptime. I believe uptime and TCO, because as well, the armies need to maximize the use of their budget. All right. Thank you so much for now to giving your view on the growth opportunities within defense. Please take a seat. We will probably see more of you during the Q&A later. This brings us to the end of our look of our strategically selected segments. Martin, you have been sitting listening to your colleagues. Would you like to come up and share your reflections? Absolutely, keen on. First, I just would like to say, wow what a team. I think it all boils down to people. We say that, it's 100,000 colleagues around the world, but the team here representing all of them is just amazing. The second part I would like to say, I put note of that today actually, with Anna saying that scaling Volvo technology by innovation and application excellence through people, that is what it's all about when we take this segment lens onto it. Growing underlying markets, obviously, but strategically selected segment's important. Where can we really drive growth? Here, core segments, we know that we have the capabilities, we have demonstrated history. We see now also with the increased focus on certain growth segments such as defense, mining, power generation, power solutions, etc., that will also require, apart from the capabilities that we have already in terms of our total offer compounded by our technology, the networks, the people, also partly concentrated commercial organizations that we are combining the strength in order to drive that opportunity. Underlying growth even further in selected segments and then outperforming in these segments, that is the recipe, and I think the team here has truly demonstrated the opportunities. Thank you for now, Martin. We will see you soon again, and I hope that there is no doubt now that there are a number of growth segments in our markets and in how we also select our segments strategically. This, to build resilience and growth. If we are to capitalize on this, we need one more thing, and that is application excellence to drive technological advancements and to ensure that all our value chains are effective. To share how we are achieving this, I will present a well-known face, but with a slightly enhanced scope. Jens. My friend, you have stepped into bigger shoes since the last CMD, leading purchasing, well, they look the same. Purchasing, operations, and technology. How are you finding things? It feels exciting and of course, great responsibility, and we're living in unprecedented times with moving faster than ever before, but that's also the time to show what this organization is capable of, so feeling good. What is your comment on those capabilities? It's all about people, and it starts and ends there. Whether that is to set up a new plant in Mexico within time, budget, now producing trucks, or launching a completely new D13 platform that we're doing right now, or the 700-km range battery electric vehicles, it's done by people every day doing the extra mile. That's really true. It's key. We are super curious about application excellence. I'll leave the floor to you to describe how we are ensuring that we have the right product at the right time, at the right place, and at the right cost. Thank you. Starting with application excellence, again, we have said it before, it starts with the customer, and application excellence and tailormade equipment at scale is what makes us a little bit unique. I would like to take the opportunity to actually distance ourselves a bit from automotive. We are not automotive. We are producing highly specialized industrial machines every day at scale. Application excellence, we mentioned many times today, what does that really mean? I'll give you some small examples. For instance, we have a customer here in Europe transporting glass sheets from a glass mill. The glass sheets, they have a certain size and you cannot change that. That means your trailer needs to be bigger. That means also when the trailer is bigger and higher, you need to lower the chassis to have profitability and competition, creating a very competitive product, and that's what we deliver. Or, for instance, our 38-ton axle in a quarry or in a construction site where you add on load in the rear, and we measure every axle exactly what the weight is, not to load too much to be illegal and not load too little to not be competitive. That is what we are talking about being application excellence. These are only two points. I can tell you another 10,000 points where we do this in every segment, in every product, everywhere, and we do it at scale. Ultimately for us it's about creating TCO for our customer, uptime, but also productivity. I would like to highlight also trust. Trust we build by consistent performance, but also standing with our customers in good times and in bad times. We do that by servicing our customers, and we are at the point right now where we are delivering 99% of our order lines of spare parts within 24 hours in 180 countries, serving 1.9 million trucks. If you add on the complete group, then we are talking about 3.2 million pieces of equipment that we can service. We are at the level still at 99% within 24 hours in 180 countries. How do we make this happen? It's by balancing. Balancing, having scale where scale matters, having speed where speed matters. Starting with where scale matters. That is in our tech stack. How do we create the best possible technology solutions? Common architecture, shared technology, starting with powertrain solution, software-defined vehicle applications or platforms, connectivity, and as Nils alluded to earlier, also autonomous coming into our complete global tech stack. Of course, having that global tech stack is enormously important to have the critical mass, to have the speed, the capacity to invest enough in the right areas. Of course, having a big global organization also can make you slow. That needs to be balanced with a regional setup. We are super clear in our regional strategy. We are having application R&D close to our customer, understanding what the customer need, whether that is in a mine in Peru or in a road train in Australia. We need to understand what the customer needs. That means you need to have application R&D on local level. Adding on local sourcing, also local production, truly creating an end-to-end system supporting our customer every day. The regional setup is also a way of dealing with resilience. I look at resilience from three aspects: financially, technology, geopolitically. Starting with financially, I think we have shown in the last few years, we have created a truly flexible industrial system that can adapt to volumes wherever they are in the world, in the three, four distinct regions, North America, Latin America, Europe, and internationally. Geopolitically, by having this set up where we source locally, produce locally, we are mitigating a big risk that we have with either tariffs or sudden impacts like transport issues or disturbances that we have seen over the last couple of years, shocks to the system, setting up a resilient system. Finally, from a technology perspective, we have set up the system so we can balance up the system both from an R&D also from an industrial perspective, ramping up whatever technology will be needed in different part of the world, whether that is the combustion engine on different fuels, the battery electric vehicle, or in the future, hydrogen. We can ramp up wherever it's needed, dependent most likely on this infrastructure, depending where we are in the world. We are a growing company, starting with our service network. The points you see here are actually our distribution centers that are supporting the map that Roger showed earlier with our different service centers. This is how we distribute our parts globally. We have invested over a number of years. We are in a good position right now, and that's why we achieved the 99%. Going into our industrial system, starting with, North America, you know we have invested in capacity here. I think we are finalizing. We are in place. Going into Latin America, we are in place. Europe, very strong. We have a very strong backbone in Europe in place, we are ramping up now our fourth industrial hump, India. We have some investments left, we see that will be handled in more of a normalized capital expenditure. I would say very soon in place as well. Looking at R&D. We have invested also here, we have had elevated levels of R&D spend over the last few years. We see now that that has been peaked, we have also invested in platforms, in the combustion engine, in our long-range BEV, in our software-defined vehicle, also in the autonomous area. We see now that our R&D expenditures are flattening out. Kina, we have resilience. We have the discipline to balance between technologies, we definitely have the capabilities to grow. Thank you so much, Jens. I have been standing on many stages with you, there is one word that keeps coming back. Execution. What do you see now in your big organization that gives you a lot of confidence? Execution gives trust. It starts and ends with people, I need to acknowledge that. I'm a true believer in people and what can happen when you have the right people on board. I would like to take a story about Adisa here. You see on the slide here. She works in our shipping factory where we produce our gearboxes for Europe. A while back, I met her on the shop floor. We were about to ramp up from a big rebuild that we did. On the AMT gearbox, that's a sensitive thing. That's where you support the complete European market with gearboxes. We were rebuilding that to have both our electrical drivelines with our AMT gearboxes on that line. It's a bit tense ramping up vertically after a shutdown. It is tense, she was standing there looking me in the eye, simply saying, "Failure is not an option. Off she went. It was a success, by the way. That is the type of attitude I see everywhere in the organization. I see it everywhere, wherever I go, whether that is to set up a new plant in Mexico, delivering our D13 engine, or a service center, or our long-range battery electric vehicle. I see that everywhere. It's hard to beat a winning team. I see it in you, my friend. Thank you so much for now. Please take a seat. We will see more of you later. Jens was speaking about our R&D budget normalizing and us having done major investments in our future. With such a strong balance sheet, how do we leverage our position? Mats, may I look at you? Maybe you can put some figures to it. I'm back. You're back. You're right. As you have all have heard, we have been forward-leaning when it comes to investments over the recent year, and we are well invested. If we are putting numbers on that and looking at the development we have had since 2019 on this short term. As you can see, we have increased the R&D gross spending, and we peaked in 2024. As Jens said, from the peak 2024, what we are looking on is rather a slightly decline from there or more of a plateau. R&D is also a big driver when it comes to capital expenditures. We can see a similar development when it comes to capital expenditures, but with somewhat of a delay around. We have been ramping up on the CapEx side as well, we had SEK 18 billion in 2025, which is similar to the R&D side on a peak level, where we see a slight decline in the same way as we have seen for the R&D growth side. How does this impact our way of thinking around capital allocation? We are very consistent when it comes to the thinking around our capital allocation, and the most important part is that we are investing, and we are investing being forward-leaning in our operations as well. This has been yielding over time, and we are on a return on capital employed of around 25%, so good returns on the investments we are doing. In the same time, and this is also you have heard from all my colleagues today, we are forward-leaning when it comes to investing in new technologies. We are, in the same time, sharing this success with the shareholders, and we have been consistent when it comes to dividends as well. Looking at the ordinary dividend, but we have been increasing the ordinary dividend with SEK 0.5 over the recent years, and consequent we will continue to be. Then on the extraordinary side, depending on where we are in the business cycle and depending on the cash flow, we have also been generous when it comes to the extraordinary dividend. With that, I'd love to return to this slide. I really love it when we are talking the total shareholder return, and we talked about the positive impact coming from the resilience and the growth, but capital allocation also being extremely important when it comes to the total shareholder return, and the dividends we are paying, which is also driving the total returns. Thank you so much, Mats. I'm sure that we have many happy shareholders. Why don't you join me behind the desk? We are soon going to open up for our Q&A session. We are done with presentations. First, I would like to ask Martin to wrap things up. Thank you, Kina. What a great opportunity to present this story. Maybe two messages also, if we start with what we've discussed today. Number one, demonstrated A demonstration of my colleagues throughout the Volvo Group about built for resilience and growth. As you have seen here, both when it comes to the reinforced resilience over different type of cycles, but also how we are continuously also tapping into the growth opportunities. Now with the four dimensions that we have been presenting through the segment lens, it's time to take the next step for the Volvo Group. Friends, a day like this, exciting times, right? We are living in uncertain conditions, we know that. The demand in our strategically selected segments will continue to accelerate. This growth is driven, as we have been talking about today, by the underlying economic activities obviously, driven by macro trends, but also a number of dynamic factors such as e-commerce, defense, mining, digital infrastructure, and beyond. Also, we are coming to the point where we will see the enablement by autonomous solutions and energy transition that provide further growth opportunities. When growth prospects are good, competition is intensifying, and we like that. In these exciting times, the Volvo Group's capabilities and assets to move ahead have never been stronger because it all boils down to where we started this morning, that every customer will get what they need to stay competitive and successful in their specific segment, application, and geography. In other words, in their business. The solution for the customer. A truly competitive TCO, including uptime, payload, energy efficiency, safety, driver attractiveness, productivity and more. This is customer obsession in real life. It's one thing to have an obsession for customers, it's another to have what is required to deliver what they need. With our global system of own innovation technology in industrial capabilities, combined with the best and greatest, most reliable supply and commercial partners, we are either developing or getting access to the latest and greatest competitive key components and systems. Competitive both, yes, in terms of cost, but when it comes to the solution, in many cases even more important when it comes to durability, reliability, and performance. Our modular product and solution system, CAST, common architecture and shared technology, is both fast and flexible and combine scale where it matters with the diversity needed for the customer. Our application excellence leverages our strong regional value chains in both core and evolving markets. They are, what you say, Jens, these regional value chains, they are ready for more growth, right? Yes. Melker, don't worry, we are ready. Growth driven by a world-class sales service network that is global when it comes to reach, but on the other hand, and at the end of the day for the customer, is very local. To put it even more precise, exactly where and when the customer needs us and wants us every day, 365 days per year. Always. This approach has led us to a growing customer base that has a huge trust in our solutions and in our people, reflected in our high customer retention and new customer acquisitions. It's not just trust in the products. By leveraging the total offer, that has led to an increased share of service and solution content, another important signal of trust from our customers. We are working in an industry where the market is growing. We are focusing on segments that will outperform the growing market, we are confident that with everything we talked about today and much, much more obviously, we will outperform in these segments. Growth on growth on growth. Based on these growth levers, our capital allocation strategy has been consistent in providing performance for our customers, in reducing volatility and increasing earnings for the group, and solid investor returns. This is what we at Volvo call resilient and profitable growth. It will be done by the most precious asset that we have at Volvo, our people and our partners. You have seen the team, I would like to call it my team on stage today, and I'm very proud of all of you. Thank you guys for what you're doing. We are representing 100,000 colleagues around the world. I know that many of them are watching online. I hope that you excuse me if I turn and talk to them for one moment here. Dear colleagues, it doesn't matter where in the world I am. I meet dedicated, dynamic, business savvy men, women, colleagues, you. You are living our brands and values, and I know that you're always ready for the extra mile every day, in every situation, globally, but still extremely locally, and all for the customer. I couldn't be more proud of you and what you are doing. Thank you for your great commitment. At the end of the day, it is exactly that. It's all about people, our teams, our customers' teams, our suppliers' teams, working together to drive society forward. Everyone online, everyone in the room, thanks for your attention. Thanks for your trust and interest in us. We that have been on stage today, we are extremely proud of representing all the colleagues around the world. We are the Volvo Group. Thank you. He makes me cry. I think we need to catch our breath a little bit, Martin. Yeah, I definitely need to do it. Yes. It's time for the Q&A. Here it comes. We are in an emotional business. We are. Let's play the bumper. Hold on. I see that there are many. This is good. We have a lot of questions in the room already. Good. Very good. We're going to finish off with a Q&A. We have a well-known face in the audience, Anders from Investor Relations, who will help us with the questions online. We have Mats and Martin by the table. Of course, feel free to ask any questions to anyone in the management team. We're going to start in the room. You know the drill. You present yourself, and then what? One question each. I mean it this time because it is respect to the rest of the people in the room. The question is, who would like to begin? Kina, can I just get my glasses so I can see? You can get your glasses. We have a microphone already here on the first row. Please introduce yourself and put the first question. Thank you. You made it challenging to just select one. You can select one only. It's Daniela Costa from Goldman Sachs. Given it's just one, maybe I'll follow up in the conversation at the very end regarding capital allocation. R&D is not going up, CapEx is not going up. You're growing more given all these initiatives, hopefully, and I guess there's still some room on the margins, at least in construction equipment when we looked at the first chart with the top of the industry and where you are. Is there any room for largeable size inorganic moves to accelerate all of that? What are you going to do further with the cash beyond all that you already do? Shall I start? Yes, please. Thank you for the question. I think we have been pretty clear in our different type of, if I may say so, inorganic moves over the last couple of years. When Mats, for example, talked a little bit about the Transformational Ventures, on one side, you can say, okay, it's profitability and we want to be transparent. On the other side, you can also say that quite a lot of those are, of course, add-on technology investments that are still about to come on board. We talked about autonomous, obviously, you heard about Nils. We are getting closer to this. We see that in a number of others. The other big part that we see is that it has been good for us to take further steps when it comes to the sales and service network distribution, coming even closer to the customer. It is building further growth opportunities for us, both when it comes to the penetration of market shares in these segments, we can do even more. Truck Centre WA was a great performing dealer. With now the integration into the Volvo Group Australia, we see an accelerated penetration of core segments up in Port Hedland and Pilbara, et cetera, for example, because we need to combine different things and also the service opportunities. We are working very structured around the funnel of opportunities, but with the right balance. That is how I look upon it. No, totally agree. I think that if you're looking at the last 12 months and what we have done, especially when we are talking about the dealership and the service focus with Swecon and then Western Australia, that's the path we are on. I think that's reflecting the priorities going forward in a good way as well. When you look at other inorganic opportunities, you need really to see where it can add to your competitive Just add units we don't need, because there we have the organic capability of driving that. The one plus one adding just to gain size, it must create value for real and not being dilutive in any sense, so to speak, because then we are just losing focus. All right. Thank you so much. Hampus, you have been waving, I'll leave the microphone to you. Thank you very much. Hampus Engellau, Handelsbanken. One question. Thank you. Maybe coming back to the market shares. It seems like Mack having good momentum on the market share, while Volvo has a tougher task. If I look historically, it's been very segmented in the long haulage with Freightliner absorbing International's market share when they went into trouble. How do you aim to break into this and capture clients that never have considered the Volvo brand? Thank you. Maybe Roger, if you would like to take that. Thank you for the question. I was into it before. We need to also then be aware about that the long-haul segment in North America has been down more than the construction segment, so to say. As I said, we are now building our capabilities, widening down the product range, which make us more possibilities to grow than the shares in segments that we have not been out in before. The number one thing is, of course, conquest into customers. We are then working a lot with more sales force, with more conquest from a customer point of view. The number of customers that we are taking on now that is new one, is massive. We see now a good increase in terms of order intake. We are pretty confident that this will come in the market share as well. I think also, what Roger said, you showed it so well, and you have been into it. When we look at North America, Hampus, as you know, it's a continent. We really demonstrate also that we are able to do that. We have dealers and markets, as you say, with this. It's all about granularity and driving that. I think the platform is there, so we feel confident about that. Thank you. We will take one more from first row. Mattias. Thank you very much. Mattias Holmberg, DNB Carnegie. As you probably are aware, there's been a lot of discussions and speculations regarding the structure and if there's potential to make construction equipment into a separate entity. I think you've shown a pretty strong proposition with the cost and service network, et cetera, why it makes sense to have it as a group. I still think it would be interesting for us to hear your perspective on the structure, if you want to put the discussion to rest, so to speak, or if there might be merit to this discussion, but perhaps a few years too early. I think, Mattias, I think this is, of course, always a very important discussion when it comes to group like ours, to have a reflection on how does the portfolio look like. Do you have enough, so to speak, common capabilities, access to defend the structure that looks like Volvo? I think both when it comes to how we have been developing the group, the different business areas, the development, both in resilience and in growth opportunities, but also finding the right combination of, on one side, common capabilities of scale or technology, or industrial and service network opportunities that really is a shared and good opportunity, while at the same time have enough decentralizations you are not losing speed, focus, and accountability and ownership. We have done a number of moves where we have said that these parts of the business are not fitting good enough into the group, then it's better for them to develop on a standalone or in another context. What we see now, and I think that has been demonstrated, there are in addition to the journey that we've done, I think also market and segments reasons to really drive this even further. Defense, mining, power generation, quarries, construction as well, the core construction. That's the reason also why we, in certain parts of the business now, are combining the business area set up also with the segment set up, we even further can drive the opportunities across the group. We are happy with the structure that we have. I think also the outcome has shown that this model is working. Very good. We will take one more from the room. Agnieszka. Thank you. Agnieszka Vilela from Nordea. You gave us a very good glimpse into the growth ambitions and kind of revenue pools for your different businesses. Would you consider disclosing more formalized growth and EBIT margin targets for your business areas to improve transparency and accountability from analysts and investors? No, we have the segment reporting. We have and also when it comes to the financial targets. That might develop over time, depending on the development of the different segments and so forth. For now, we are happy with the way we are presenting the group and the kind of the key ratios and the KPIs we have. Very good. I think it's time for the first question online. Anders, would you mind? Sure. You have recently acquired truck dealership in Western Australia and Sweden within Volvo CE, are talking about regional expansion to get closer to customers. In which regions do you aim to expand in this space? Yeah. First and foremost, it's important for us to come back to what Roger said. We still see that it's a good combination of having a mix of. When we have high-performing, if I may say so, private dealer partners, that is also, of course, a very good model. We see due to different aspects that there are reasons for us. It could be succession. It could be that we really want to focus even more on a specific segment, a specific geography, where further add-on investments are being made. What has really changed over the last, I should say five, 10 years, is our own operating performance in our retail network. Both the private and our captive network. When it comes to, of course, the financial performance, but also when it comes to driving growth, driving services, driving the entrepreneurial spirit, the decentralization. That combination with the fact that we now have business that are accretive to our margins when it comes to the retail, since it's in the same flow and even more recurring business, we see that as a good opportunity. We will take that step by step. Coming back to what Mats said, strong financial position, drive innovation and growth opportunities, also make sure that is very attractive, by the way, with the return on capital that we have demonstrated for the investors, on top of that, dividend opportunities. This is a strategic area. We are coming closer to the customers. We can drive core segments even further, I should argue the last four, five, six acquisitions that we have done have demonstrated that it's not only possible, it's very positive having this bolt-on, add-on strategy when it comes to the distribution. Yeah. Very good. Let's see if we had any questions on this side of the room. Yes. Any hands up? No. I'm moving over to this side of the room. Here we have a few. We can start with. A lot of hands. Good. We'll start with you. Let's see. We need a microphone. Come. Coming from both sides. They're coming from both sides. Well, you're a popular guy. I can have two microphones. Yeah. Björn, Danske Bank. I keep on asking about the bolt-on acquisition. Would it be possible to add 1% or so to growth? If you can give some color on the potential for acquiring companies like Swecon. That drives growth and also resilience, of course. No, as you say, Björn, I think there are a number of things. Number one, it is also from a group perspective, further driving the resilience when it comes to recurring revenues. That's obvious because it's both the traditional, if I may say, the core businesses of workshop hours and parts. More and more solution requires also investment for the retail network when it comes to electric mobility, when it comes to autonomous, when it comes to different other type of digital capabilities, et cetera. It is important for our competitive position over time. As I said, when we have done acquisitions, and we have a good pipeline and funnel, we see that we are adding growth, both when it comes to the products and the services, and increasing that. I will not give a percentage, it's both growth, it's the competitive set, because you're even closer to the customer, and it's resilience for sure. I think it's very good for the investors if I put it like that. Very good. We're going to continue on this side of the room. Right here. Hi. Thank you. It's Nicolai from Deutsche Bank. Also one question on your corporate structure, and this time it's on Penta. Great journey over the last years. Now you're trying to double revenues. Still from a capital market perspective, Penta is just dwarfed by trucks and construction in terms of earnings. Any ideas here to separate this business, just put them on a spotlight that we see somewhat momentum in data centers and power generation? No. I think again, we are crystallizing that business very well. I'm very happy that you brought it up, Nicolai, also because it's another jewel in the crown. The growth potential is obvious. I think we have, and the team at Penta, together with many colleagues in the Volvo Group, have demonstrated that driving this now segment by segment, of course, the marine that we thought was rather full-leased, but we are unleashing, so to speak, further potential now with the bigger vessels, et cetera. When it comes to industrial, it's a huge potential. Since we are still in a very high level of growth mode there now, also when it comes to the service business. When you start to think about, as Anna described also, the core elements in the backbone, and then adding on the core capabilities of Volvo Penta, and then providing the solution. To start to do a separation with a lot of complications will just make the focus put in the wrong place. We are disclosing, everyone can You are good in calculating. See how much that will add to the group's potential moving forward. Yeah, we are quite granular when it comes to information. Very granular for Penta. Anna shared a lot today when it comes to the targets going forward as well, Dan. I think you have quite a lot of information in order to visualize the value we have in Penta. Great opportunities. If you think about the I've been involved myself together with Anna and the teams, because I'm really interested in this field with the whole energy transition. When we look at now, the innovation, not only when it comes to the technology innovation, but also when it comes to the business model innovation, availability, scale, when it comes to digital capabilities or electronic capabilities to synchronize all these different type of engine sets, not only for backup. I'm convinced that we will come in also to the prime side of thinking. If you have 100 engines, and you have a smart round-robin system also of the maintenance schemes. This is an outstanding solution because with the 16 seven-liter engines, then if you even drive it on natural or biogas, et cetera, the sweet spot of such a generation when it comes to fuel efficiency and energy efficiency is unbeatable. It's about the synchronization and with the capabilities we're sitting on today when it comes to control systems, et cetera, that will of course come as well. Here is great opportunities. Thank you, Martin. I think we can conclude that divestment rumors, it's a no. Again, it's all about delivery. That I also can assure you. The day we feel that being part of this group is hampering someone from driving resilience, growth, customer satisfaction, and outcomes, then of course we should consider a different structure. We feel really good, and we have a lot of discussions in the team. We feel that we have a good structure that gives good outcome. A clear no. Thank you very much. Let's continue in the middle of the room, over there. Hi there. Harry Martin from Bernstein. I wanted to ask about the autonomous trucking business, and the $3 billion revenue target. That would already be quite a sizable number compared to the size of the U.S. business today. Likely implies a higher market share of that business than that 25% target as well. I'd love to understand some of the assumptions behind that target, when it comes to the number of trucks in operation, the market shares, the revenue model, and why Volvo as a company should outperform in what is a very competitive end market. Would you like to start, Nils? Just step forward and it will work. Okay. It's magic. First of all, as I said, it is a very large addressable market, and if you look at the competition, then you need to distinguish a little bit what is the role of the OEM, what is the role of the technology partners. We have an approach where we work with multiple technology partners, bringing the virtual driver technology, which we then integrate, and then we go to market with the Volvo brand, with Volvo Autonomous Solutions. We are the ones which are generating the revenues, and then, of course, in the back we are having a certain split of the revenues which go to us versus respectively what will go to our technology partner. What is very important to understand is that in order to bring that technology to the market, you need to understand how the market is operating today and how you bring that technology to it. That's why the business model is so crucial and so important. This go-to-market strategy, which we have, where we start with transport as a service, here we're really making it easy for the customers to benefit from autonomy without having the hassle of operating it. Over time, we will add more and different business models where our role will be smaller, but nevertheless, it will still be service business, which will contribute overproportional to the growth we have in the service business, and particularly in the margins. Of course, I'd be very happy if with autonomous solutions, we over proportionally help the growth of the market share of Volvo Trucks in the U.S. Roger will support me there. How are we going there? Absolutely. If you look upon it also, one important thing, by the way, is of course the decision engine, the virtual driver. It's also, so to speak, the redundant and autonomous capabilities of the whole system, and that we have been working really on. We have actually had discussions, how much should we disclose on this, et cetera, in order to, from a capital allocation standpoint, et cetera. We have said it's so important that we are actually taking that in our Transformational Ventures, taking a little bit of heat that we are not disclosing it, because we wanted to stay ahead of the curve and do these investments, both in the product but also in the ecosystem that Nils have been explaining. Now we are really excited for 2027. That coincides with our 100-year celebration also. We're excited about that because that will be a milestone. Very good. Thank you so much. We have a gentleman over here. Thank you. Klas at Citi. I had one short term and one long term, but it's only one question, so it's been a lot. You will incorporate the two of them in one now. I'm going to go with the one on short term. Mats, you said that the cost inflation is going to start to bite from the second quarter. We have some hopefully positive offsets. We have the North America volume ramp. You are going to see from mid-May that the under absorption is gradually going to start to fade. You're raising prices. I'm just curious, first of all, on the cost side, has that got worse than what you planned for? On the other things, North America volume is very strong, are you going to have a bigger boost from utilization than you originally planned for? Thank you. I will not give a margin guidance for the quarter- I know, you never do that Talking about the different components. For sure, looking at the kind of the effect from the Middle East crisis, especially on the freight side, we will have higher cost than anticipated in the second quarter driven by that, in combination to some extent with raw materials as well. That is a kind of a net negative on that side. Dan, you're right. We have a good trend and a good momentum in North America with a higher order intake. We are in balance when it comes to our industrial system than starting May. Now we are increasing capacity, as Stephen talked about as well. That will help us going forward, so to speak, Dan. Please remember, in the second quarter, we are talking May, it's only one month left, that will be a gradual kind of improvement. Utilization is good, as Mats alluded to also in the trading update. We see that in the service business also. I think that is holding up well, and that is, of course, very encouraging to see because eventually, when customers are active, that is good for everyone. That is still holding on, I'd say. As previously communicated, when it comes to the service business, and I think Roger was underlying that as well, Dan, with the population we have out there and getting into the sweet spot in terms of the aging of the fleet as well, that's also driving the service business in terms of parts consumption and so forth, also being positive. That's nothing new, Dan. We talked about that when we released the first quarter as well. Pricing higher second quarter? That was the second question. Without a microphone, that has to be super quick because we have one more online before we wrap up. Would you like to answer? No changes from what we have said previously when it comes to the pricing environment. Thank you, Klas. Anders? Yeah, sure. I have a question from Mats Liss at Kepler Cheuvreux. Following the SDLG investment, Volvo has reduced its exposure to China. Do you see a risk of being underexposed to growth opportunities in one of the world's largest truck and construction equipment markets? Obviously, that specific exposure has gone away. There are two elements of this question, I think, that is important to bear in mind. One is the market opportunity in itself. There, of course, we are continuing to drive the performance development of Dongfeng Commercial Vehicles, where we have the venture. We are also putting a lot of focus now in our core segments also with both Volvo Construction Equipment and Volvo Trucks when it comes to China. The other dimension that is very important, that's the reason why we are also very active in China, is also to continuously tap into that ecosystem when it comes to speed and innovation, alongside other opportunities that we have, both China for China, as I talked about India for India, but also China for the world, where that matters, so to speak. We are active. We have a strong footprint in these different dimensions, and it will continue to be so. Mm-hmm. Gentlemen, time is flying when having fun. That was the final question. Okay. Any final words from you, Martin, before we wrap up? No, not more than we will be available the whole afternoon, obviously, from management. Take the opportunity to just grab us, discuss, put questions, or provoke us. Do whatever you like as long as we can do it together. We will, of course, also have more in store now for the afternoon. That, we'll talk about, but we are around for further conversations for everyone. Absolutely. This wraps up part of the Capital Markets Day. As Martin said, for those of you who are here in Eskilstuna, there will be plenty of opportunities to ask more questions. All materials will, of course, be available online, and there you find the contact information to our Investor Relations Department if you have further questions. Thank you so much, everyone, for joining us today here in- Thank the teams also that have- I'm coming to that. Sorry. He's hopeless. You can take it. Snap. Thank the team. Come on. No, thanks to the team that have arranged that. Thanks to the team. It's a big effort putting a day like this together. Thank you, Kina. As you can imagine. Thank you, Martin. Again, thanks for everyone in the room. Please stay seated because Melker has some important information. For all of you who have been watching online, thank you so much for joining us today. I hope that we have been able to keep you glued to the screen. Bye-bye.

Speaker 11: Welcome to the Volvo Group Capital Markets Day 2026. It is 18 months since last time, yet again, we are in a special location. This time the headquarters of Volvo Construction Equipment in Eskilstuna, Sweden. This month, something extraordinary is taking place here. We have 4,000 customers experiencing our products and services. That's for later. Now let's go inside where the live audience is waiting. Again, most welcome and especially to you in the live audience. It is great to see so many familiar faces in the crowd. We have an intense couple of hours together where we are going to share our view on how we are thinking strategically and what we are doing proactively to capitalize on our strengths in a very dynamic market. Let's get into gear and welcome to the stage the Volvo Group President and CEO, Martin. Welcome to the Volvo Group Capital Markets Day 2026. welcome to the volvo group capital markets day 2026 It is 18 months since last time, yet again, we are in a special location. it is 18 months since last time yet again we are in a special location This time the headquarters of Volvo Construction Equipment in Eskilstuna, Sweden. this time the headquarters of volvo construction equipment in eskilstuna sweden This month, something extraordinary is taking place here. this month something extraordinary is taking place here We have 4,000 customers experiencing our products and services. we have 4,000 customers experiencing our products and services That's for later. that's for later Now let's go inside where the live audience is waiting. now let's go inside where the live audience is waiting Again, most welcome and especially to you in the live audience. again most welcome and especially to you in the live audience It is great to see so many familiar faces in the crowd. it is great to see so many familiar faces in the crowd We have an intense couple of hours together where we are going to share our view on how we are thinking strategically and what we are doing proactively to capitalize on our strengths in a very dynamic market. we have an intense couple of hours together where we are going to share our view on how we are thinking strategically and what we are doing proactively to capitalize on our strengths in a very dynamic market Let's get into gear and welcome to the stage the Volvo Group President and CEO, Martin. let's get into gear and welcome to the stage the volvo group president and ceo martin A tractor enters to rock and roll. Really good. A tractor enters to rock and roll. a tractor enters to rock and roll Really good. really good

Speaker 13: It feels really great, Kina, also from my side, of course, welcome to this Capital Markets Day 2026, Eskilstuna. The sun is shining. We have a fantastic program this afternoon also, because we have the setup, as you alluded to, with the Volvo Days with all the lineup of products. You will be able to test and feel and get the emotions of the Volvo products and solutions. Welcome everyone here in the room and, of course, also everyone online. It will be great. It feels really great, K ina, also from my side, of course, welcome to this Capital Markets Day 2026, Eskilstuna. it feels really great, k ina also from my side of course welcome to this capital markets day 2026 eskilstuna The sun is shining. the sun is shining We have a fantastic program this afternoon also, because we have the setup, as you alluded to, with the Volvo Days with all the lineup of products. we have a fantastic program this afternoon also because we have the setup as you alluded to with the volvo days with all the lineup of products You will be able to test and feel and get the emotions of the Volvo products and solutions. you will be able to test and feel and get the emotions of the volvo products and solutions Welcome everyone here in the room and, of course, also everyone online. welcome everyone here in the room and of course also everyone online It will be great. it will be great

Speaker 11: Martin we met 18 months ago in this setting. We were in New River Valley. The theme at that time was Gearing Up for Growth, which reflects an organization building capacity and momentum. Martin we met 18 months ago in this setting. martin we met 18 months ago in this setting We were in New River Valley. we were in new river valley The theme at that time was Gearing Up for Growth, which reflects an organization building capacity and momentum. the theme at that time was gearing up for growth which reflects an organization building capacity and momentum This year, the theme is Built for Resilience and Growth. This year, the theme is Built for Resilience and Growth. this year the theme is built for resilience and growth Slight shift in language. Why is that? Slight shift in language. slight shift in language Why is that? why is that

Speaker 13: Obviously we have been on a journey for quite some time now, with the objective of continuously building resilience that is important in business that is cyclical and in a world with many moving parameters. At the same time, of course, taking the growth opportunities that lies ahead of us. 18 months is a long period now. Obviously we have been on a journey for quite some time now, with the objective of continuously building resilience that is important in business that is cyclical and in a world with many moving parameters. obviously we have been on a journey for quite some time now with the objective of continuously building resilience that is important in business that is cyclical and in a world with many moving parameters At the same time, of course, taking the growth opportunities that lies ahead of us. 18 months is a long period now. at the same time of course taking the growth opportunities that lies ahead of us 18 months is a long period now A long period. A lot of things have happened since. It has been really about continuing to building that position of resilience and accelerated growth. A long period. a long period A lot of things have happened since. a lot of things have happened since It has been really about continuing to building that position of resilience and accelerated growth. it has been really about continuing to building that position of resilience and accelerated growth

Speaker 11: Yeah. Yeah. yeah

Speaker 13: That is what we will both see the achievements, but also what is about to come. That is what we will both see the achievements, but also what is about to come. that is what we will both see the achievements but also what is about to come Very exciting. Very exciting. very exciting

Speaker 11: Very exciting. Resilience and growth, you will recognize will be a major part of our agenda today. We're going to start with geopolitics and how the current situation impacts our markets and our position in it. Instead of giving you presentations, business area by business area, we are going to look at growth opportunities from a segment point of view. Very exciting. very exciting Resilience and growth, you will recognize will be a major part of our agenda today. resilience and growth you will recognize will be a major part of our agenda today We're going to start with geopolitics and how the current situation impacts our markets and our position in it. we're going to start with geopolitics and how the current situation impacts our markets and our position in it Instead of giving you presentations, business area by business area, we are going to look at growth opportunities from a segment point of view. instead of giving you presentations business area by business area we are going to look at growth opportunities from a segment point of view

Speaker 13: Absolutely. Absolutely. absolutely

Speaker 11: Towards the back end, how we are investing for our future. Should we get going? Towards the back end, how we are investing for our future. towards the back end how we are investing for our future Should we get going? should we get going

Speaker 13: We get going. We get going. we get going

Speaker 11: We get going. Martin, I know that many in the audience would like to hear your view on the world around us, so why don't you join me over here? We get going. we get going Martin, I know that many in the audience would like to hear your view on the world around us, so why don't you join me over here? martin i know that many in the audience would like to hear your view on the world around us so why don't you join me over here

Speaker 13: Absolutely. Absolutely. absolutely

Speaker 11: We are going to look at many different aspects of our business today. I know, Martin, that you wanted to start with something which is really close to our hearts every day, our customers. We are going to look at many different aspects of our business today. we are going to look at many different aspects of our business today I know, Martin, that you wanted to start with something which is really close to our hearts every day, our customers. i know martin that you wanted to start with something which is really close to our hearts every day our customers

Speaker 13: Yeah, that is always a tough start for that because I get emotional only thinking about customers. I think it is like this, that of course, the Capital Markets Day. It's tempting to start with the strategies and the big picture and the big bets, what we want to do. At the end of the day, and often 95% of our time we spent, of course, on focusing on how to make our customers competitive, successful. We often say that the revenues and cash flow and earnings and building a stronger balance sheet, they're outcomes. They are not falling down from heaven. They are coming from customers that want to, and they don't have to work with the Volvo Group. Yeah, that is always a tough start for that because I get emotional only thinking about customers. yeah that is always a tough start for that because i get emotional only thinking about customers I think it is like this, that of course, the Capital Markets Day. i think it is like this that of course the capital markets day It's tempting to start with the strategies and the big picture and the big bets, what we want to do. it's tempting to start with the strategies and the big picture and the big bets what we want to do At the end of the day, and often 95% of our time we spent, of course, on focusing on how to make our customers competitive, successful. at the end of the day and often 95% of our time we spent of course on focusing on how to make our customers competitive successful We often say that the revenues and cash flow and earnings and building a stronger balance sheet, they're outcomes. we often say that the revenues and cash flow and earnings and building a stronger balance sheet they're outcomes They are not falling down from heaven. they are not falling down from heaven They are coming from customers that want to, and they don't have to work with the Volvo Group. they are coming from customers that want to and they don't have to work with the volvo group That's the reason why we are taking that very seriously and spending a lot of time in all parts of the organization, in our business areas, in our different parts of the value chain to really make that successful. That is very important. That's the reason why we are taking that very seriously and spending a lot of time in all parts of the organization, in our business areas, in our different parts of the value chain to really make that successful. that's the reason why we are taking that very seriously and spending a lot of time in all parts of the organization in our business areas in our different parts of the value chain to really make that successful That is very important. that is very important

Speaker 11: We say that we live with our customers. It's very common that companies talk about customer focus, but you talk about customer obsession, rather. We say that we live with our customers. we say that we live with our customers It's very common that companies talk about customer focus, but you talk about customer obsession, rather. it's very common that companies talk about customer focus but you talk about customer obsession rather

Speaker 13: We are B2B, that means that for every customer, the solution that is really tailor-made for him or her, meaning that you need to understand the job to be done, and we will come back to that because that is one of the key factors of success in our industry. Never compromise the optimized solution for the customer. It's our job to make scale and scope and technology to happen. Customers couldn't care less about that. They want to have an optimized solution for their mission. We are B2B, that means that for every customer, the solution that is really tailor-made for him or her, meaning that you need to understand the job to be done, and we will come back to that because that is one of the key factors of success in our industry. we are b2b that means that for every customer the solution that is really tailor-made for him or her meaning that you need to understand the job to be done and we will come back to that because that is one of the key factors of success in our industry Never compromise the optimized solution for the customer. never compromise the optimized solution for the customer It's our job to make scale and scope and technology to happen. it's our job to make scale and scope and technology to happen Customers couldn't care less about that. customers couldn't care less about that They want to have an optimized solution for their mission. they want to have an optimized solution for their mission

Speaker 11: Here comes the first tricky question today. Since we met in New River Valley 18 months ago, how many customers have you met? Here comes the first tricky question today. here comes the first tricky question today Since we met in New River Valley 18 months ago, how many customers have you met? since we met in new river valley 18 months ago how many customers have you met

Speaker 13: You asked me this question 1.5 Week ago. You asked me this question 1.5 Week ago. you asked me this question 1.5 week ago

Speaker 11: I could have missed that. I could have missed that. i could have missed that

Speaker 13: It's not that tricky anymore. I asked Helena to backtrack that also, and we came up to Of course, I've met thousands of customers since, but with meaningful conversations, more than 20 minutes, where we have had feedback, 915. Yeah, two, three per day the year around. That is super important for us, because at the end of the day, we have millions and millions and tens of millions of data points and important feedback, obviously. That conversation about what is happening, what is the feeling and the different type of stories here. One example a couple of weeks ago was about this, a big customer, by the way, in Europe, talking about that, and we had a good conversation, both what we need to improve, it's always about that, obviously. It's not that tricky anymore. it's not that tricky anymore I asked Helena to backtrack that also, and we came up to Of course, I've met thousands of customers since, but with meaningful conversations, more than 20 minutes, where we have had feedback, 915. i asked helena to backtrack that also and we came up to of course i've met thousands of customers since but with meaningful conversations more than 20 minutes where we have had feedback 915 Yeah, two, three per day the year around. yeah two three per day the year around That is super important for us, because at the end of the day, we have millions and millions and tens of millions of data points and important feedback, obviously. that is super important for us because at the end of the day we have millions and millions and tens of millions of data points and important feedback obviously That conversation about what is happening, what is the feeling and the different type of stories here. that conversation about what is happening what is the feeling and the different type of stories here One example a couple of weeks ago was about this, a big customer, by the way, in Europe, talking about that, and we had a good conversation, both what we need to improve, it's always about that, obviously. one example a couple of weeks ago was about this a big customer by the way in europe talking about that and we had a good conversation both what we need to improve it's always about that obviously Also, he ended that conversation by saying, "Thank you Martin and the team, for bringing my driver safely home. Also, he ended that conversation by saying, "Thank you Martin and the team, for bringing my driver safely home. also he ended that conversation by saying "thank you martin and the team for bringing my driver safely home I mean, that is a fleet owner that has more than 2,000 trucks, and that really matters, of course, the driver attractiveness. Just as one example. I mean, that is a fleet owner that has more than 2,000 trucks, and that really matters, of course, the driver attractiveness. i mean that is a fleet owner that has more than 2,000 trucks and that really matters of course the driver attractiveness Just as one example. just as one example

Speaker 11: Just to back up a little bit, two every day, 365 days a year, including weekends. That's quite a schedule, I must say. Just to back up a little bit, two every day, 365 days a year, including weekends. just to back up a little bit two every day 365 days a year including weekends That's quite a schedule, I must say. that's quite a schedule i must say

Speaker 13: I'm just representing the rest of us. If you ask Stephen or Roger or Anna or everyone here, that is how we live together with our customers, because if we don't understand the job to be done together and build that trust, it will never fly. I'm just representing the rest of us. i'm just representing the rest of us If you ask Stephen or Roger or Anna or everyone here, that is how we live together with our customers, because if we don't understand the job to be done together and build that trust, it will never fly. if you ask stephen or roger or anna or everyone here that is how we live together with our customers because if we don't understand the job to be done together and build that trust it will never fly

Speaker 11: Martin, let's change topic a little bit and talk about geopolitics. I don't think anyone could have guessed where we are as a world today 18 months ago. Martin, let's change topic a little bit and talk about geopolitics. martin let's change topic a little bit and talk about geopolitics I don't think anyone could have guessed where we are as a world today 18 months ago. i don't think anyone could have guessed where we are as a world today 18 months ago

Speaker 13: No. I think that is always the case. Some wise guy did say that it is difficult to make forecasts, especially about the future. I think that is more valid than ever, obviously. We have a lot of moving parameters. We know that, and we need to live with that. It has been so during a long period of time. Now it's intensifying, obviously. We have a number of cycles coming together. We have the normal economic cycle, what will happen? We have the geopolitical cycle that is intensifying. We have demographics, we have technology, we have climate and energy transition, et cetera. There are quite a number of parameters to take into account. No. no I think that is always the case. i think that is always the case Some wise guy did say that it is difficult to make forecasts, especially about the future. some wise guy did say that it is difficult to make forecasts especially about the future I think that is more valid than ever, obviously. i think that is more valid than ever obviously We have a lot of moving parameters. we have a lot of moving parameters We know that, and we need to live with that. we know that and we need to live with that It has been so during a long period of time. it has been so during a long period of time Now it's intensifying, obviously. now it's intensifying obviously We have a number of cycles coming together. we have a number of cycles coming together We have the normal economic cycle, what will happen? we have the normal economic cycle what will happen We have the geopolitical cycle that is intensifying. we have the geopolitical cycle that is intensifying We have demographics, we have technology, we have climate and energy transition, et cetera. we have demographics we have technology we have climate and energy transition et cetera There are quite a number of parameters to take into account. there are quite a number of parameters to take into account That's the reason why it's so important with the theme that we have today, because you can look upon that from a challenging point of view, but I think we have a good opportunity to look from an opportunity perspective. That's the reason why it's so important with the theme that we have today, because you can look upon that from a challenging point of view, but I think we have a good opportunity to look from an opportunity perspective. that's the reason why it's so important with the theme that we have today because you can look upon that from a challenging point of view but i think we have a good opportunity to look from an opportunity perspective

Speaker 11: More in detail, how is this uncertainty impacting the Volvo Group? More in detail, how is this uncertainty impacting the Volvo Group? more in detail how is this uncertainty impacting the volvo group

Speaker 13: No, it is a lot about, obviously, continuing to build. That's the reason why resilience matters. Obviously, if you have the ability in a group to react if that is necessary, but more important, to act and be ahead of the curve. To do that with flexibility and speed, because that is important, that you continue also to have the right mix in your portfolio, both when it comes to the customer base, but also when it comes to the mix between, so to speak, equipment, revenues and recurring revenues such as service. A lot of these topics we have been working with, that is the platform for continuous growth, obviously. No, it is a lot about, obviously, continuing to build. no it is a lot about obviously continuing to build That's the reason why resilience matters. that's the reason why resilience matters Obviously, if you have the ability in a group to react if that is necessary, but more important, to act and be ahead of the curve. obviously if you have the ability in a group to react if that is necessary but more important to act and be ahead of the curve To do that with flexibility and speed, because that is important, that you continue also to have the right mix in your portfolio, both when it comes to the customer base, but also when it comes to the mix between, so to speak, equipment, revenues and recurring revenues such as service. to do that with flexibility and speed because that is important that you continue also to have the right mix in your portfolio both when it comes to the customer base but also when it comes to the mix between so to speak equipment revenues and recurring revenues such as service A lot of these topics we have been working with, that is the platform for continuous growth, obviously. a lot of these topics we have been working with that is the platform for continuous growth obviously

Speaker 11: Mm-hmm. Just a couple of weeks ago, you were hosting a visit from Narendra Modi, the head of state of India. In times of regionalization, how important is such a relationship? Mm-hmm. mm-hmm Just a couple of weeks ago, you were hosting a visit from Narendra Modi, the head of state of India. just a couple of weeks ago you were hosting a visit from narendra modi the head of state of india In times of regionalization, how important is such a relationship? in times of regionalization how important is such a relationship

Speaker 13: Of course, it was an honor to have the PM Modi, one of the fastest-growing, big economies in the world, coming to Gothenburg. Think about that. Of course, it was an honor to have the PM Modi, one of the fastest-growing, big economies in the world, coming to Gothenburg. of course it was an honor to have the pm modi one of the fastest-growing big economies in the world coming to gothenburg Think about that. think about that

Speaker 11: The center of the universe. The center of the universe. the center of the universe

Speaker 13: Yeah. That's true. I think, if we should have been humble, we should have been perfect, right? No, seriously. PM Modi, together with Von der Leyen and our Prime Minister, talking about the bilateral opportunities between Europe and India, but also, for us, obviously, an opportunity to talk about a very important region, India for India, obviously. We have a very strong footprint there when it comes to sales and when it comes to customer base, but also when it comes to India for the world, carry back a lot of great opportunities that we have there. We are now stepping up apart from technology, digital, also the fourth global industrial hub. We have Volvo Eicher commercial Vehicles. That is an hidden diamond, I think for everyone here included. Last year that ended March 31st, for VECV, they surpassed 100,000 vehicles for the first time. Yeah. yeah That's true. that's true I think, if we should have been humble, we should have been perfect, right? i think if we should have been humble we should have been perfect right No, seriously. no seriously PM Modi, together with Von der Leyen and our Prime Minister, talking about the bilateral opportunities between Europe and India, but also, for us, obviously, an opportunity to talk about a very important region, India for India, obviously. pm modi together with von der leyen and our prime minister talking about the bilateral opportunities between europe and india but also for us obviously an opportunity to talk about a very important region india for india obviously We have a very strong footprint there when it comes to sales and when it comes to customer base, but also when it comes to India for the world, carry back a lot of great opportunities that we have there. we have a very strong footprint there when it comes to sales and when it comes to customer base but also when it comes to india for the world carry back a lot of great opportunities that we have there We are now stepping up apart from technology, digital, also the fourth global industrial hub. we are now stepping up apart from technology digital also the fourth global industrial hub We have Volvo Eicher commercial Vehicles. we have volvo eicher commercial vehicles That is an hidden diamond, I think for everyone here included. that is an hidden diamond i think for everyone here included Last year that ended March 31st, for VECV, they surpassed 100,000 vehicles for the first time. last year that ended march 31st for vecv they surpassed 100,000 vehicles for the first time With a growth rate that is double-digit and with margins that actually are quickly approaching the group's margins. This is an asset that we are very proud of, both when it comes to that development, but again, how they are taking care about the customers and the whole Indian ecosystem. With a growth rate that is double-digit and with margins that actually are quickly approaching the group's margins. with a growth rate that is double-digit and with margins that actually are quickly approaching the group's margins This is an asset that we are very proud of, both when it comes to that development, but again, how they are taking care about the customers and the whole Indian ecosystem. this is an asset that we are very proud of both when it comes to that development but again how they are taking care about the customers and the whole indian ecosystem

Speaker 11: There is obviously a lot happening in our industries, and I think a talking point during the spring has been increased competition. You mentioned India, but there is obviously also China. What is your take on that? There is obviously a lot happening in our industries, and I think a talking point during the spring has been increased competition. there is obviously a lot happening in our industries and i think a talking point during the spring has been increased competition You mentioned India, but there is obviously also China. you mentioned india but there is obviously also china What is your take on that? what is your take on that

Speaker 13: There's India, there's China, there are new entrants, there are technology shifts, et cetera. Where there is growth opportunities, competition will continuously, of course, intensify. That's natural because there are opportunities for everyone. Having said that, we also see that the competition is not only there, but they are good, they are speedy, and they are innovative. In a world like that, you need to continue to both maintain your strength, but also accelerate the number of areas so you are ahead of the curve. As I said, I think we have capabilities, assets, we have people, we have customer base, we have the financial position, but we have the innovation power to get the job done together with our customers. As in all competitions, and I like that, you need to always get better. That is why market economy really works, right? There's India, there's China, there are new entrants, there are technology shifts, et cetera. there's india there's china there are new entrants there are technology shifts et cetera Where there is growth opportunities, competition will continuously, of course, intensify. where there is growth opportunities competition will continuously of course intensify That's natural because there are opportunities for everyone. that's natural because there are opportunities for everyone Having said that, we also see that the competition is not only there, but they are good, they are speedy, and they are innovative. having said that we also see that the competition is not only there but they are good they are speedy and they are innovative In a world like that, you need to continue to both maintain your strength, but also accelerate the number of areas so you are ahead of the curve. in a world like that you need to continue to both maintain your strength but also accelerate the number of areas so you are ahead of the curve As I said, I think we have capabilities, assets, we have people, we have customer base, we have the financial position, but we have the innovation power to get the job done together with our customers. as i said i think we have capabilities assets we have people we have customer base we have the financial position but we have the innovation power to get the job done together with our customers As in all competitions, and I like that, you need to always get better. as in all competitions and i like that you need to always get better That is why market economy really works, right? that is why market economy really works right

Speaker 11: Being the best, that is what it will take to win. Being the best, that is what it will take to win. being the best that is what it will take to win

Speaker 13: Being not the best is not an option if you want to compete in a global market, still being very local. Being not the best is not an option if you want to compete in a global market, still being very local. being not the best is not an option if you want to compete in a global market still being very local

Speaker 11: Talking about innovation and technology, Martin, the last couple of years has been a technology race. We have been investing heavily. Talking about innovation and technology, Martin, the last couple of years has been a technology race. talking about innovation and technology martin the last couple of years has been a technology race We have been investing heavily. we have been investing heavily in traditional technologies. in traditional technologies. in traditional technologies in more sustainable solutions. Going forward, how do you foresee that this will develop? in more sustainable solutions. in more sustainable solutions Going forward, how do you foresee that this will develop? going forward how do you foresee that this will develop

Speaker 13: No, we see that it is plateauing now. I think it's more the important, the reason behind that rather than the figures as such, because I think we have been very consistent in our capital allocation. Strong financial position, really the innovation to the table and also, of course, good returns to our shareholders. If you take that innovations, one thing is that we always will provide what the customers want. Meaning that now with the prolongation, we see a clear prolongation of, and actually a further acceleration of our combustion technologies, both with the traditional but also renewables. We continue to invest in that. We have created a number of platforms for the future that has brought us to a rather high level. Now we see that is plateauing and decreasing. No, we see that it is plateauing now. no we see that it is plateauing now I think it's more the important, the reason behind that rather than the figures as such, because I think we have been very consistent in our capital allocation. i think it's more the important the reason behind that rather than the figures as such because i think we have been very consistent in our capital allocation Strong financial position, really the innovation to the table and also, of course, good returns to our shareholders. strong financial position really the innovation to the table and also of course good returns to our shareholders If you take that innovations, one thing is that we always will provide what the customers want. if you take that innovations one thing is that we always will provide what the customers want Meaning that now with the prolongation, we see a clear prolongation of, and actually a further acceleration of our combustion technologies, both with the traditional but also renewables. meaning that now with the prolongation we see a clear prolongation of and actually a further acceleration of our combustion technologies both with the traditional but also renewables We continue to invest in that. we continue to invest in that We have created a number of platforms for the future that has brought us to a rather high level. we have created a number of platforms for the future that has brought us to a rather high level Now we see that is plateauing and decreasing. now we see that is plateauing and decreasing We can take the BEV, the battery electric long range now, 700 km, best payload, and so to speak, the maintenance schemes, the charging times, what have you. Now that platform is there through our modular system, and we can really start to optimize. You don't have the same level of investments, but you have the platform to really build from. Same when it comes to certain capacity build-outs in North America, we'll come back to, for example. We can take the BEV, the battery electric long range now, 700 km, best payload, and so to speak, the maintenance schemes, the charging times, what have you. we can take the bev the battery electric long range now 700 km best payload and so to speak the maintenance schemes the charging times what have you Now that platform is there through our modular system, and we can really start to optimize. now that platform is there through our modular system and we can really start to optimize You don't have the same level of investments, but you have the platform to really build from. you don't have the same level of investments but you have the platform to really build from Same when it comes to certain capacity build-outs in North America, we'll come back to, for example. same when it comes to certain capacity build-outs in north america we'll come back to for example Plateauing and a slight decrease, that is not the same that we are stopping our innovation. Plateauing and a slight decrease, that is not the same that we are stopping our innovation. plateauing and a slight decrease that is not the same that we are stopping our innovation

Speaker 11: No. No. no

Speaker 13: Not at all. Not at all. not at all

Speaker 11: That brings us to the transition to a fossil fuel-free future. That's a tongue twister. That brings us to the transition to a fossil fuel-free future. that brings us to the transition to a fossil fuel-free future That's a tongue twister. that's a tongue twister

Speaker 13: Well done. Well done. well done

Speaker 11: Thank you very much. I've been practicing. How will the journey towards zero emission play out? Thank you very much. thank you very much I've been practicing. i've been practicing How will the journey towards zero emission play out? how will the journey towards zero emission play out

Speaker 13: What we see clearly is, of course, that the overarching theme, including, I think quite a lot in this audience, four or five years ago, has slightly shifted, if I put like that. Decarbonization as a theme for regions and governments is still there, but alongside decarbonization as such for the energy transition, it is also about resilience, it is national security, and it's competitiveness. You need to act with these four factors in focus. If you do that's the reason why we still commit to Paris, for example, because if you want to drive the energy transitions from these four angles, regional or national security, meaning regional value chains, competitiveness, resilience, and decarbonizations, that will be a winning formula. We need to be there, and we want to be there, and the customers wants to be there. What we see clearly is, of course, that the overarching theme, including, I think quite a lot in this audience, four or five years ago, has slightly shifted, if I put like that. what we see clearly is of course that the overarching theme including i think quite a lot in this audience four or five years ago has slightly shifted if i put like that Decarbonization as a theme for regions and governments is still there, but alongside decarbonization as such for the energy transition, it is also about resilience, it is national security, and it's competitiveness. decarbonization as a theme for regions and governments is still there but alongside decarbonization as such for the energy transition it is also about resilience it is national security and it's competitiveness You need to act with these four factors in focus. you need to act with these four factors in focus If you do that's the reason why we still commit to Paris, for example, because if you want to drive the energy transitions from these four angles, regional or national security, meaning regional value chains, competitiveness, resilience, and decarbonizations, that will be a winning formula. if you do that's the reason why we still commit to paris for example because if you want to drive the energy transitions from these four angles regional or national security meaning regional value chains competitiveness resilience and decarbonizations that will be a winning formula We need to be there, and we want to be there, and the customers wants to be there. we need to be there and we want to be there and the customers wants to be there We will come back and talk about that later. We will come back and talk about that later. we will come back and talk about that later

Speaker 11: There is an expression that you use quite frequently in our internal events, and that is, "Excelling on the basics will still make you unique. There is an expression that you use quite frequently in our internal events, and that is, "Excelling on the basics will still make you unique. there is an expression that you use quite frequently in our internal events and that is "excelling on the basics will still make you unique

Speaker 13: Yeah. Yeah. yeah

Speaker 11: With that as a platform, what differentiates us as a company that will enable us to win? With that as a platform, what differentiates us as a company that will enable us to win? with that as a platform what differentiates us as a company that will enable us to win

Speaker 13: I think especially, and we have talked about it, Kina, this morning, when you have a lot of moving parameters that you need to, of course, incorporate and integrate in not only your strategy, but in your execution plans, you need to do that from an angle where it matters for real, regardless if that is new propulsion technology or AI or digital capabilities, and that is really get the job done, build trust with our customers. We have an extremely strong platform when it comes to the customer trust. That is an asset and a pride that we can never underestimate. That is coming, of course, over time to deliver that TCO, to deliver that uptime, to deliver that fuel efficiency, to deliver that safety, to deliver that comfort, not from time to time, but every day. I think especially, and we have talked about it, Kina, this morning, when you have a lot of moving parameters that you need to, of course, incorporate and integrate in not only your strategy, but in your execution plans, you need to do that from an angle where it matters for real, regardless if that is new propulsion technology or AI or digital capabilities, and that is really get the job done, build trust with our customers. i think especially and we have talked about it kina this morning when you have a lot of moving parameters that you need to of course incorporate and integrate in not only your strategy but in your execution plans you need to do that from an angle where it matters for real regardless if that is new propulsion technology or ai or digital capabilities and that is really get the job done build trust with our customers We have an extremely strong platform when it comes to the customer trust. we have an extremely strong platform when it comes to the customer trust That is an asset and a pride that we can never underestimate. that is an asset and a pride that we can never underestimate That is coming, of course, over time to deliver that TCO, to deliver that uptime, to deliver that fuel efficiency, to deliver that safety, to deliver that comfort, not from time to time, but every day. that is coming of course over time to deliver that tco to deliver that uptime to deliver that fuel efficiency to deliver that safety to deliver that comfort not from time to time but every day You do that thanks to great people, and we believe in decentralized organization with the ownership mentality to make it happen. If you do that really well, it will still make you unique. I promise you. You do that thanks to great people, and we believe in decentralized organization with the ownership mentality to make it happen. you do that thanks to great people and we believe in decentralized organization with the ownership mentality to make it happen If you do that really well, it will still make you unique. if you do that really well it will still make you unique I promise you. i promise you

Speaker 11: Martin, you wanted to start this conversation emphasizing our customers. How would you like to close? Martin, you wanted to start this conversation emphasizing our customers. martin you wanted to start this conversation emphasizing our customers How would you like to close? how would you like to close

Speaker 13: Closing that is, of course, about the first part here you see, how do we build customer trust? I can take these 915 great customers that we have really talked about, but also all the feedback we're getting in other channels and all the colleagues here. It's about product and solutions, but it's so much about our people, and how they are supporting our customers in all parts of the value chain, and how our customers feel that, the drivers feel that, their fleet managers feel that we are really working closely together. That feedback is super important. Often, actually, Roger and myself, we talked about that a couple of days ago, when we had an issue with, I think it was 1617. We were in Eastern Europe and talked to a specific customer, Martin is his name as well, by the way. Closing that is, of course, about the first part here you see, how do we build customer trust? closing that is of course about the first part here you see how do we build customer trust I can take these 915 great customers that we have really talked about, but also all the feedback we're getting in other channels and all the colleagues here. i can take these 915 great customers that we have really talked about but also all the feedback we're getting in other channels and all the colleagues here It's about product and solutions, but it's so much about our people, and how they are supporting our customers in all parts of the value chain, and how our customers feel that, the drivers feel that, their fleet managers feel that we are really working closely together. it's about product and solutions but it's so much about our people and how they are supporting our customers in all parts of the value chain and how our customers feel that the drivers feel that their fleet managers feel that we are really working closely together That feedback is super important. that feedback is super important Often, actually, Roger and myself, we talked about that a couple of days ago, when we had an issue with, I think it was 1617. often actually roger and myself we talked about that a couple of days ago when we had an issue with i think it was 1617 We were in Eastern Europe and talked to a specific customer, Martin is his name as well, by the way. we were in eastern europe and talked to a specific customer martin is his name as well by the way He said, "Martin and Roger, we need to fix this now." He didn't say, "You have to fix it now," but, "We need to fix this now." That is the spirit. Thanks to our people. He said, "Martin and Roger, we need to fix this now." He didn't say, "You have to fix it now," but, "We need to fix this now." That is the spirit. he said "martin and roger we need to fix this now." he didn't say "you have to fix it now," but "we need to fix this now." that is the spirit Thanks to our people. thanks to our people

Speaker 11: Mm-hmm. There truly is power in our people. Bearing in mind that we have 100,000 colleagues all over the world, that is a lot of energy devoted to winning the game. Take a look at this. It should come, I'm sure. I love this movie. Mm-hmm. mm-hmm There truly is power in our people. there truly is power in our people Bearing in mind that we have 100,000 colleagues all over the world, that is a lot of energy devoted to winning the game. bearing in mind that we have 100,000 colleagues all over the world that is a lot of energy devoted to winning the game Take a look at this. take a look at this It should come, I'm sure. it should come i'm sure I love this movie. i love this movie

Speaker 13: Yeah, I love this movie, but I love our people even more, I think. Yeah, I love this movie, but I love our people even more, I think. yeah i love this movie but i love our people even more i think

Speaker 11: Okay. I love the people, and I love the movie. Martin, we're going to build on what you were saying about being a resilient organization- Okay. okay I love the people, and I love the movie. i love the people and i love the movie Martin, we're going to build on what you were saying about being a resilient organization- martin we're going to build on what you were saying about being a resilient organization-

Speaker 13: Yeah Yeah yeah

Speaker 11: The fact that we, over the last decade, have built a platform that enables us to lead from a position of strength. To talk more about how we have created performance resilience, let's welcome to the stage our CFO, Mats. You got a much more cheerful tone than he did. The fact that we, over the last decade, have built a platform that enables us to lead from a position of strength. the fact that we over the last decade have built a platform that enables us to lead from a position of strength To talk more about how we have created performance resilience, let's welcome to the stage our CFO, Mats. to talk more about how we have created performance resilience let's welcome to the stage our cfo mats You got a much more cheerful tone than he did. you got a much more cheerful tone than he did

Speaker 14: Yeah, I did. Yeah, I did. yeah i did

Speaker 11: I don't know how to interpret it. I don't know how to interpret it. i don't know how to interpret it

Speaker 14: Much better music. Much better music. much better music

Speaker 11: Mats, resilience and growth, why is that important? Mats, resilience and growth, why is that important? mats resilience and growth why is that important

Speaker 14: The short answer is value creation. It's essential for value creation, looking at resilience and growth. I think resilience really shows the kind of core capabilities that we have in our operations, but also our ability to execute. I think that is, to some extent, a prerequisite when it comes to growth. Resilience and growth goes a little bit hand in hand, I would say. The short answer is value creation. the short answer is value creation It's essential for value creation, looking at resilience and growth. it's essential for value creation looking at resilience and growth I think resilience really shows the kind of core capabilities that we have in our operations, but also our ability to execute. i think resilience really shows the kind of core capabilities that we have in our operations but also our ability to execute I think that is, to some extent, a prerequisite when it comes to growth. i think that is to some extent a prerequisite when it comes to growth Resilience and growth goes a little bit hand in hand, I would say. resilience and growth goes a little bit hand in hand i would say

Speaker 11: Why don't we take a look at our performance journey, why don't you share your comments? Why don't we take a look at our performance journey, why don't you share your comments? why don't we take a look at our performance journey why don't you share your comments

Speaker 14: It's a good journey. Looking at margin expansion over time, but even more importantly, coming back to resilience, that we have less volatility, it shows that we have been better in order to manage the business cycle as well. I think it clearly shows that in terms of the margin development. It's a good journey. it's a good journey Looking at margin expansion over time, but even more importantly, coming back to resilience, that we have less volatility, it shows that we have been better in order to manage the business cycle as well. looking at margin expansion over time but even more importantly coming back to resilience that we have less volatility it shows that we have been better in order to manage the business cycle as well I think it clearly shows that in terms of the margin development. i think it clearly shows that in terms of the margin development

Speaker 11: Martin? Martin? martin

Speaker 13: Just to add to what Mats is saying, of course, very proud of the journey together with the team here. I think there are a number of key factors. We talked about flexibility and agility, that we have a very clear toolkit, the centralized decision making, but also clear toolkit of doing that. We have been bringing a lot of innovation and technology to the table, where we have been successful also actually to driving commercial conditions and value creation, both for our customers and ourselves. Service development has been very important. Again, the recipe for success that we talked about. I'm very proud to see that this is a journey where all business areas and also truck brands have really made a contribution. Just to add to what Mats is saying, of course, very proud of the journey together with the team here. just to add to what mats is saying of course very proud of the journey together with the team here I think there are a number of key factors. i think there are a number of key factors We talked about flexibility and agility, that we have a very clear toolkit, the centralized decision making, but also clear toolkit of doing that. we talked about flexibility and agility that we have a very clear toolkit the centralized decision making but also clear toolkit of doing that We have been bringing a lot of innovation and technology to the table, where we have been successful also actually to driving commercial conditions and value creation, both for our customers and ourselves. we have been bringing a lot of innovation and technology to the table where we have been successful also actually to driving commercial conditions and value creation both for our customers and ourselves Service development has been very important. service development has been very important Again, the recipe for success that we talked about. again the recipe for success that we talked about I'm very proud to see that this is a journey where all business areas and also truck brands have really made a contribution. i'm very proud to see that this is a journey where all business areas and also truck brands have really made a contribution We don't have any clear pockets of drag anymore, I should say. That is super important, obviously, both for resilience and growth opportunities. We don't have any clear pockets of drag anymore, I should say. we don't have any clear pockets of drag anymore i should say That is super important, obviously, both for resilience and growth opportunities. that is super important obviously both for resilience and growth opportunities

Speaker 11: You mentioned services, which is, of course, a core pillar. Why don't we look at our services journey and maybe, Martin, you can share a few words. You mentioned services, which is, of course, a core pillar. you mentioned services which is of course a core pillar Why don't we look at our services journey and maybe, Martin, you can share a few words. why don't we look at our services journey and maybe martin you can share a few words

Speaker 13: Also here, a very good journey, as you can see, over many years. Still opportunities ahead. The most important is actually maybe not the figures. It is really what we see when we have a higher penetration of service content together with our customers. We have a higher retention, we have a higher satisfaction and loyalty. From a customer perspective, super important. Then obviously as a very positive by-product, it is also the recurring revenues for us. Also here, a very good journey, as you can see, over many years. also here a very good journey as you can see over many years Still opportunities ahead. still opportunities ahead The most important is actually maybe not the figures. the most important is actually maybe not the figures It is really what we see when we have a higher penetration of service content together with our customers. it is really what we see when we have a higher penetration of service content together with our customers We have a higher retention, we have a higher satisfaction and loyalty. we have a higher retention we have a higher satisfaction and loyalty From a customer perspective, super important. from a customer perspective super important Then obviously as a very positive by-product, it is also the recurring revenues for us. then obviously as a very positive by-product it is also the recurring revenues for us Very proud of this, that is happening across business areas and geographies. Very proud of this, that is happening across business areas and geographies. very proud of this that is happening across business areas and geographies

Speaker 14: You can see the smile, Caroline. As a CFO, I love service. Coming back to resilience and growth, the service business being less cyclical than the new vehicle sales, meaning that brings the stability and resilience. On top of that growth, what you can see over this time period, close to 5% compound annual growth rate. If we're looking at the recent data points where we are today, in fourth quarter and first quarter, between 5%-6%, providing growth as well. On top of that, high profitability, contributing to margin expansion. Service is great. You can see the smile, Caroline. you can see the smile caroline As a CFO, I love service. as a cfo i love service Coming back to resilience and growth, the service business being less cyclical than the new vehicle sales, meaning that brings the stability and resilience. coming back to resilience and growth the service business being less cyclical than the new vehicle sales meaning that brings the stability and resilience On top of that growth, what you can see over this time period, close to 5% compound annual growth rate. on top of that growth what you can see over this time period close to 5% compound annual growth rate If we're looking at the recent data points where we are today, in fourth quarter and first quarter, between 5%-6%, providing growth as well. if we're looking at the recent data points where we are today in fourth quarter and first quarter between 5%-6% providing growth as well On top of that, high profitability, contributing to margin expansion. on top of that high profitability contributing to margin expansion Service is great. service is great

Speaker 11: That explains your happy face. Finally, Mats, let's compare with our peers. That explains your happy face. that explains your happy face Finally, Mats, let's compare with our peers. finally mats let's compare with our peers

Speaker 14: A little bit the same story over time. If you're looking at that in relative terms, you can see also a relative kind of improvements when it comes to resilience over time and less cyclicality. If you're looking at the latest data point here, representing them for truck, buses, and engines, we are actually best in class when it comes to the adjusted operating margin. A good development, relatively as well. A little bit the same story over time. a little bit the same story over time If you're looking at that in relative terms, you can see also a relative kind of improvements when it comes to resilience over time and less cyclicality. if you're looking at that in relative terms you can see also a relative kind of improvements when it comes to resilience over time and less cyclicality If you're looking at the latest data point here, representing them for truck, buses, and engines, we are actually best in class when it comes to the adjusted operating margin. if you're looking at the latest data point here representing them for truck buses and engines we are actually best in class when it comes to the adjusted operating margin A good development, relatively as well. a good development relatively as well

Speaker 11: Martin? Martin? martin

Speaker 13: Of course, again, proud of that journey, but this is relative, but more importantly, it's an absolute game also to continue to build our story with the potential we have. I would also like to comment, Volvo Construction Equipment, starting on the lowest point a little bit more than 10 years ago and have really built also a very strong foundation amongst the best now when it comes to margin, the margin expansion. I think it's time now, Melker, for some growth also, right? Maybe we can come back to that. Who knows? Of course, again, proud of that journey, but this is relative, but more importantly, it's an absolute game also to continue to build our story with the potential we have. of course again proud of that journey but this is relative but more importantly it's an absolute game also to continue to build our story with the potential we have I would also like to comment, Volvo Construction Equipment, starting on the lowest point a little bit more than 10 years ago and have really built also a very strong foundation amongst the best now when it comes to margin, the margin expansion. i would also like to comment volvo construction equipment starting on the lowest point a little bit more than 10 years ago and have really built also a very strong foundation amongst the best now when it comes to margin the margin expansion I think it's time now, Melker, for some growth also, right? i think it's time now melker for some growth also right Maybe we can come back to that. maybe we can come back to that Who knows? who knows

Speaker 11: He will come back to that, I can assure you. I think it's fair to say we are very proud of this journey. We are happy but not satisfied. There is lots to do still. Mats, take the stage. He will come back to that, I can assure you. he will come back to that i can assure you I think it's fair to say we are very proud of this journey. i think it's fair to say we are very proud of this journey We are happy but not satisfied. we are happy but not satisfied There is lots to do still. there is lots to do still Mats, take the stage. mats take the stage

Speaker 14: Yeah. I will elaborate more when it comes to the resilience and growth. Before that, just spending a couple of minutes when it comes to the current situation now in the second quarter in terms of the trailing update. It's very much the same message as we gave when we reported the first quarter earnings in, I think it was April 24th, 2026. Looking at the different regions, we continue to see a solid customer demand in Europe for April and May. No big impacts when it comes to the Middle East crisis on the demand side in Europe. Looking at North America, we continue to see a strong customer demand, and we are now taking orders for the third quarter and fourth quarter in the U.S. We are gradually also increasing the capacity in U.S. then. Yeah. yeah I will elaborate more when it comes to the resilience and growth. i will elaborate more when it comes to the resilience and growth Before that, just spending a couple of minutes when it comes to the current situation now in the second quarter in terms of the trailing update. before that just spending a couple of minutes when it comes to the current situation now in the second quarter in terms of the trailing update It's very much the same message as we gave when we reported the first quarter earnings in, I think it was April 24th, 2026. it's very much the same message as we gave when we reported the first quarter earnings in i think it was april 24th, 2026 Looking at the different regions, we continue to see a solid customer demand in Europe for April and May. looking at the different regions we continue to see a solid customer demand in europe for april and may No big impacts when it comes to the Middle East crisis on the demand side in Europe. no big impacts when it comes to the middle east crisis on the demand side in europe Looking at North America, we continue to see a strong customer demand, and we are now taking orders for the third quarter and fourth quarter in the U.S. looking at north america we continue to see a strong customer demand and we are now taking orders for the third quarter and fourth quarter in the u.s We are gradually also increasing the capacity in U.S. then. we are gradually also increasing the capacity in u.s then We have a general cost inflation that is gradually increasing, this is the area where you can start to see impacts from the Middle East crisis, most pronounced when it comes to increases on the freight cost, but also on raw material side. That will have an impact on the cost side in the second quarter. Last but not least, we continue to see high utilizations when it comes to the trucks and machines, meaning that that is driving service revenue as well. All in all, a very similar message to what we gave when we reported the first-quarter earnings. Turning back to the more long-term development and to the resilience and growth theme. You already saw this slide. Good margin expansion, being resilient as well, and less volatile. We have a general cost inflation that is gradually increasing, this is the area where you can start to see impacts from the Middle East crisis, most pronounced when it comes to increases on the freight cost, but also on raw material side. we have a general cost inflation that is gradually increasing this is the area where you can start to see impacts from the middle east crisis most pronounced when it comes to increases on the freight cost but also on raw material side That will have an impact on the cost side in the second quarter. that will have an impact on the cost side in the second quarter Last but not least, we continue to see high utilizations when it comes to the trucks and machines, meaning that that is driving service revenue as well. last but not least we continue to see high utilizations when it comes to the trucks and machines meaning that that is driving service revenue as well All in all, a very similar message to what we gave when we reported the first-quarter earnings. all in all a very similar message to what we gave when we reported the first-quarter earnings Turning back to the more long-term development and to the resilience and growth theme. turning back to the more long-term development and to the resilience and growth theme You already saw this slide. you already saw this slide Good margin expansion, being resilient as well, and less volatile. good margin expansion being resilient as well and less volatile There are also still room for improvements when we're looking at the financial development. Many of you probably recognize this slide from the previous capital markets day. This shows the adjusted operating income for Group Trucks for 2025. In two dimensions, basically, looking at the different truck brands and looking at the different geographical regions. As you can see, there are big differences between the different geographical regions in 2025. Overall, a pretty good adjusted operating margin given the environment, close to 10%. The difference, looking at the positives in terms of performance, starting with Europe, very good financial performance in Europe in 2025. Especially looking at Volvo Trucks that has been combining the market share leadership with a good performance. There are also still room for improvements when we're looking at the financial development. there are also still room for improvements when we're looking at the financial development Many of you probably recognize this slide from the previous capital markets day. many of you probably recognize this slide from the previous capital markets day This shows the adjusted operating income for Group Trucks for 2025. this shows the adjusted operating income for group trucks for 2025 In two dimensions, basically, looking at the different truck brands and looking at the different geographical regions. in two dimensions basically looking at the different truck brands and looking at the different geographical regions As you can see, there are big differences between the different geographical regions in 2025. as you can see there are big differences between the different geographical regions in 2025 Overall, a pretty good adjusted operating margin given the environment, close to 10%. overall a pretty good adjusted operating margin given the environment close to 10% The difference, looking at the positives in terms of performance, starting with Europe, very good financial performance in Europe in 2025. the difference looking at the positives in terms of performance starting with europe very good financial performance in europe in 2025 Especially looking at Volvo Trucks that has been combining the market share leadership with a good performance. especially looking at volvo trucks that has been combining the market share leadership with a good performance Also we can see Renault continue to develop in a good way, being close to the Group target of 10%. I would also like to highlight South America, or as you know them, being mainly Brazil with the footprint for trucks, where we have had a good financial performance despite very challenging external environment in Brazil. This is also reflecting our end-to-end way of working when we have an integrated model in Brazil, meaning that we are swift when it comes to adjusting capacity to demand. Looking down on areas with room for improvements, North America sticks out in that respect, as you can see here. Mainly due to the external environment, looking at North America. Also we can see Renault continue to develop in a good way, being close to the Group target of 10%. also we can see renault continue to develop in a good way being close to the group target of 10% I would also like to highlight South America, or as you know them, being mainly Brazil with the footprint for trucks, where we have had a good financial performance despite very challenging external environment in Brazil. i would also like to highlight south america or as you know them being mainly brazil with the footprint for trucks where we have had a good financial performance despite very challenging external environment in brazil This is also reflecting our end-to-end way of working when we have an integrated model in Brazil, meaning that we are swift when it comes to adjusting capacity to demand. this is also reflecting our end-to-end way of working when we have an integrated model in brazil meaning that we are swift when it comes to adjusting capacity to demand Looking down on areas with room for improvements, North America sticks out in that respect, as you can see here. looking down on areas with room for improvements north america sticks out in that respect as you can see here Mainly due to the external environment, looking at North America. mainly due to the external environment looking at north america With low demand, mainly driven by a very tough financial situation for our customers, with yet another year of freight recession in the U.S., also in combination with tariffs and general cost inflation. Room for improvements, also in our own operation system in North America. The other one that sticks out being significantly below the target, that's the Transformational Ventures. You probably remember that I was quite granular last time talking about the Transformational Ventures, also guided that we will likely see an impact on the trucks margin of about 150-200 basis points. That is what you see on this performance. Going forward, we have done quite a lot on the joint ventures. What we can see now is between 100-150 basis points going forward in impact. With low demand, mainly driven by a very tough financial situation for our customers, with yet another year of freight recession in the U.S., also in combination with tariffs and general cost inflation. with low demand mainly driven by a very tough financial situation for our customers with yet another year of freight recession in the u.s also in combination with tariffs and general cost inflation Room for improvements, also in our own operation system in North America. room for improvements also in our own operation system in north america The other one that sticks out being significantly below the target, that's the Transformational Ventures. the other one that sticks out being significantly below the target that's the transformational ventures You probably remember that I was quite granular last time talking about the Transformational Ventures, also guided that we will likely see an impact on the trucks margin of about 150- 200 basis points. you probably remember that i was quite granular last time talking about the transformational ventures also guided that we will likely see an impact on the trucks margin of about 150- 200 basis points That is what you see on this performance. that is what you see on this performance Going forward, we have done quite a lot on the joint ventures. going forward we have done quite a lot on the joint ventures What we can see now is between 100- 150 basis points going forward in impact. what we can see now is between 100- 150 basis points going forward in impact To summarize, a fairly good development looking at overall profitability, but with rooms for improvements. Moving into the drivers or how we are driving performance overall in the Volvo Group with a couple of priorities. Martin already talked about the decentralized decision-making that we have. We are working in a decentralized setup, meaning that we have P&L responsibility, accountability far out in the organization. That is also combined with decentralized decision. We're utilizing the flexibility tools to adjust to the external environment using the flexibility tools we have in the system. We have price discipline. You have heard this before. We are adjusting capacity. We are not using pricing in order to drive volumes. We are increasing the service business. To summarize, a fairly good development looking at overall profitability, but with rooms for improvements. to summarize a fairly good development looking at overall profitability but with rooms for improvements Moving into the drivers or how we are driving performance overall in the Volvo Group with a couple of priorities. moving into the drivers or how we are driving performance overall in the volvo group with a couple of priorities Martin already talked about the decentralized decision-making that we have. martin already talked about the decentralized decision-making that we have We are working in a decentralized setup, meaning that we have P&L responsibility, accountability far out in the organization. we are working in a decentralized setup meaning that we have p&l responsibility accountability far out in the organization That is also combined with decentralized decision. that is also combined with decentralized decision We're utilizing the flexibility tools to adjust to the external environment using the flexibility tools we have in the system. we're utilizing the flexibility tools to adjust to the external environment using the flexibility tools we have in the system We have price discipline. we have price discipline You have heard this before. you have heard this before We are adjusting capacity. we are adjusting capacity We are not using pricing in order to drive volumes. we are not using pricing in order to drive volumes We are increasing the service business. we are increasing the service business We have already talked about that, and my colleagues will talk much more about the service business, but also how we are driving the total offer being very important. Last but not least, cost control. We have a culture of being cost-conscious in everything we do, and that is something we are proud of. Moving in then to the portfolio, this is also a slide that probably many of you recognize from previous Capital Markets Days as well now. We have actually done quite a lot when it comes to the portfolio since the last Capital Markets Day. We have addressed some of the low performance. We have divested the SDLG for CE. We have already talked about that, and my colleagues will talk much more about the service business, but also how we are driving the total offer being very important. we have already talked about that and my colleagues will talk much more about the service business but also how we are driving the total offer being very important Last but not least, cost control. We have a culture of being cost-conscious in everything we do, and that is something we are proud of. last but not least cost control. we have a culture of being cost-conscious in everything we do and that is something we are proud of Moving in then to the portfolio, this is also a slide that probably many of you recognize from previous Capital Markets Days as well now. moving in then to the portfolio this is also a slide that probably many of you recognize from previous capital markets days as well now We have actually done quite a lot when it comes to the portfolio since the last Capital Markets Day. we have actually done quite a lot when it comes to the portfolio since the last capital markets day We have addressed some of the low performance. we have addressed some of the low performance We have divested the SDLG for CE. we have divested the sdlg for ce We have made a decision to exit the Rokbak business, but we are also adjusting a little bit when it comes to the ventures with a new business model for Flexis, and we are also welcoming Toyota into the cellcentric joint venture, which is important. We are also making more forward-leaning, growth-oriented changes in the portfolio. We have the Mexico footprint to facilitate growth, and this is something that Roger, Steve, and I believe Jens will talk a lot about later on. We have also made acquisitions, and especially looking at the retail and service side, acquiring Swecon for construction equipment and the deal in Western Australia for Volvo Trucks. Very growth-oriented investments. Nils will talk a little bit more about autonomous later on today, which is also a really exciting growth area that we see. We have made a decision to exit the Rokbak business, but we are also adjusting a little bit when it comes to the ventures with a new business model for Flexis, and we are also welcoming Toyota into the cellcentric joint venture, which is important. we have made a decision to exit the rokbak business but we are also adjusting a little bit when it comes to the ventures with a new business model for flexis and we are also welcoming toyota into the cellcentric joint venture which is important We are also making more forward-leaning, growth-oriented changes in the portfolio. we are also making more forward-leaning growth-oriented changes in the portfolio We have the Mexico footprint to facilitate growth, and this is something that Roger, Steve, and I believe Jens will talk a lot about later on. we have the mexico footprint to facilitate growth and this is something that roger steve and i believe jens will talk a lot about later on We have also made acquisitions, and especially looking at the retail and service side, acquiring Swecon for construction equipment and the deal in Western Australia for Volvo Trucks. we have also made acquisitions and especially looking at the retail and service side acquiring swecon for construction equipment and the deal in western australia for volvo trucks Very growth-oriented investments. very growth-oriented investments Nils will talk a little bit more about autonomous later on today, which is also a really exciting growth area that we see. nils will talk a little bit more about autonomous later on today which is also a really exciting growth area that we see To summarize from a financial point of view, we have built resilience, and we are ready to accelerate the growth. I think this chart really shows that our strategy has been serving us, customers, and the owners really well. To summarize from a financial point of view, we have built resilience, and we are ready to accelerate the growth. to summarize from a financial point of view we have built resilience and we are ready to accelerate the growth I think this chart really shows that our strategy has been serving us, customers, and the owners really well. i think this chart really shows that our strategy has been serving us customers and the owners really well

Speaker 11: Thank you so much, Mats. We will see much more of you later. Thank you so much, Mats. thank you so much mats We will see much more of you later. we will see much more of you later

Speaker 14: We will. We will. we will

Speaker 11: Please take a seat. Martin, looking at this slide, it happens to coincide with the same time period that you have been the CEO of this company. What would you say has been paramount to the creation of resilience under your leadership? Please take a seat. please take a seat Martin, looking at this slide, it happens to coincide with the same time period that you have been the CEO of this company. martin looking at this slide it happens to coincide with the same time period that you have been the ceo of this company What would you say has been paramount to the creation of resilience under your leadership? what would you say has been paramount to the creation of resilience under your leadership

Speaker 13: No, it is the teamwork. We are 150, 160 countries around the globe, it needs to happen every minute, every second out there. To give the opportunities for our teams to succeed has been super important for me, for the executive team, and I think we have been successful in that. Also in a good way then combining this customer obsession with the scale needed and a number of other factors that we have been alluding to, it's teamwork really that is driving that. That we are long-term and consistent in our way of thinking here. Customers must win. That is good for the company. If that is good for the company, it's good for the owners of the company. That's the logic. No, it is the teamwork. no it is the teamwork We are 150, 160 countries around the globe, it needs to happen every minute, every second out there. we are 150 160 countries around the globe it needs to happen every minute every second out there To give the opportunities for our teams to succeed has been super important for me, for the executive team, and I think we have been successful in that. to give the opportunities for our teams to succeed has been super important for me for the executive team and i think we have been successful in that Also in a good way then combining this customer obsession with the scale needed and a number of other factors that we have been alluding to, it's teamwork really that is driving that. also in a good way then combining this customer obsession with the scale needed and a number of other factors that we have been alluding to it's teamwork really that is driving that That we are long-term and consistent in our way of thinking here. that we are long-term and consistent in our way of thinking here Customers must win. customers must win That is good for the company. that is good for the company If that is good for the company, it's good for the owners of the company. if that is good for the company it's good for the owners of the company That's the logic. that's the logic

Speaker 11: This is not the end of the journey, I hope. This is not the end of the journey, I hope. this is not the end of the journey i hope

Speaker 13: It's not the end of the journey. The day you think that's the end of the journey, you should do something else, probably. It's not the end of the journey. it's not the end of the journey The day you think that's the end of the journey, you should do something else, probably. the day you think that's the end of the journey you should do something else probably

Speaker 11: Still lots to do. Still lots to do. still lots to do Great to hear, Martin. We're going to drive into the next part of the program. Great to hear, Martin. great to hear martin We're going to drive into the next part of the program. we're going to drive into the next part of the program Look at the key value levers driving resilience and growth. Now the stage is yours. Look at the key value levers driving resilience and growth. look at the key value levers driving resilience and growth Now the stage is yours. now the stage is yours

Speaker 13: Thank you, Kina. What we would like to do in a couple of minutes is to pull together a little bit the introduction here with a number of main conclusions about what has happened, but more importantly, what is the journey that is about to come for us and what are the key levers, as Kina said here. The starting point, obviously, is this one, that the global demand for transport and infrastructure solutions, logistics, and also compounded by a number of factors that we'll come back to, will continue to grow across markets and the underlying trends of that. It's very strong, obviously. The commercial opportunity is there. Each job to be done for different reasons, and I will come back to that, needs to be more efficient, more safe, and eventually more sustainable to stay competitive. Thank you, Kina. thank you kina What we would like to do in a couple of minutes is to pull together a little bit the introduction here with a number of main conclusions about what has happened, but more importantly, what is the journey that is about to come for us and what are the key levers, as Kina said here. what we would like to do in a couple of minutes is to pull together a little bit the introduction here with a number of main conclusions about what has happened but more importantly what is the journey that is about to come for us and what are the key levers as kina said here The starting point, obviously, is this one, that the global demand for transport and infrastructure solutions, logistics, and also compounded by a number of factors that we'll come back to, will continue to grow across markets and the underlying trends of that. the starting point obviously is this one that the global demand for transport and infrastructure solutions logistics and also compounded by a number of factors that we'll come back to will continue to grow across markets and the underlying trends of that It's very strong, obviously. it's very strong obviously The commercial opportunity is there. the commercial opportunity is there Each job to be done for different reasons, and I will come back to that, needs to be more efficient, more safe, and eventually more sustainable to stay competitive. each job to be done for different reasons and i will come back to that needs to be more efficient more safe and eventually more sustainable to stay competitive That is the starting point, and we take it from that. Obviously there are a number of very important transformative elements happening now. Little bit busy slide. Bear with me. I've done it myself. That's the reason why it's not that professional. It's an important one because we are super excited. That's the reason why we love our business, is that we are participating in a wealth creation for nations, societies. It's such a clear relation between advanced logistic transport infrastructure systems and the GDP per capita development and absolute level. The more advanced, the higher drive for GDP. That's a great starting point, right? We also know that both logistics and transportation and infrastructure development also comes with a number of side effects. We are constantly improving these side effects, but they are there to some extent. That is the starting point, and we take it from that. that is the starting point and we take it from that Obviously there are a number of very important transformative elements happening now. obviously there are a number of very important transformative elements happening now Little bit busy slide. little bit busy slide Bear with me. bear with me I've done it myself. i've done it myself That's the reason why it's not that professional. that's the reason why it's not that professional It's an important one because we are super excited. it's an important one because we are super excited That's the reason why we love our business, is that we are participating in a wealth creation for nations, societies. that's the reason why we love our business is that we are participating in a wealth creation for nations societies It's such a clear relation between advanced logistic transport infrastructure systems and the GDP per capita development and absolute level. it's such a clear relation between advanced logistic transport infrastructure systems and the gdp per capita development and absolute level The more advanced, the higher drive for GDP. the more advanced the higher drive for gdp That's a great starting point, right? that's a great starting point right We also know that both logistics and transportation and infrastructure development also comes with a number of side effects. we also know that both logistics and transportation and infrastructure development also comes with a number of side effects We are constantly improving these side effects, but they are there to some extent. we are constantly improving these side effects but they are there to some extent It is about climate, but also pollution in cities. That I should argue for some of the big regions, especially the pollution topic in big cities is one of the key drivers of doing things, right? Noise congestion. Talent acquisition, super important. The driver attractiveness. There are two sides of that coin, either autonomous solutions for certain applications, but also constantly evolving when it comes to the driver attractiveness, and then obviously energy resilience, the energy transition. To move that into green will be the winning formula. Of course, there are parameters that we need to take into account in order to make that happen. The regulatory push is obvious in many different markets and regions, and that is important. Without some of these regulations, things will not happen if they don't have natural links to the market mechanics. It is about climate, but also pollution in cities. it is about climate but also pollution in cities That I should argue for some of the big regions, especially the pollution topic in big cities is one of the key drivers of doing things, right? that i should argue for some of the big regions especially the pollution topic in big cities is one of the key drivers of doing things right Noise congestion. noise congestion Talent acquisition, super important. talent acquisition super important The driver attractiveness. the driver attractiveness There are two sides of that coin, either autonomous solutions for certain applications, but also constantly evolving when it comes to the driver attractiveness, and then obviously energy resilience, the energy transition. there are two sides of that coin either autonomous solutions for certain applications but also constantly evolving when it comes to the driver attractiveness and then obviously energy resilience the energy transition To move that into green will be the winning formula. to move that into green will be the winning formula Of course, there are parameters that we need to take into account in order to make that happen. of course there are parameters that we need to take into account in order to make that happen The regulatory push is obvious in many different markets and regions, and that is important. the regulatory push is obvious in many different markets and regions and that is important Without some of these regulations, things will not happen if they don't have natural links to the market mechanics. without some of these regulations things will not happen if they don't have natural links to the market mechanics Market mechanics also, of course, very important, and customer pool combined with the market mechanics to create the right type of TCO, but also other incentives, market incentives, enablers I will come back to in order to make transformative elements happening. Then, of course, the technology development that is also further than accelerating now. There are, of course, different priorities for different stakeholders here, but at the end of the day, we need to relate to it together with our customers to be successful. That is how we drive business forward here. In order to do so, it starts with a job to be done. It's easy to aggregate this to high levels. It's easy to talk about the bigger picture, which we eventually need to do in order to pull together scale, technology bets, industrial footprint investments, et cetera. But at starting point, it starts with this. Market mechanics also, of course, very important, and customer pool combined with the market mechanics to create the right type of TCO, but also other incentives, market incentives, enablers I will come back to in order to make transformative elements happening. market mechanics also of course very important and customer pool combined with the market mechanics to create the right type of tco but also other incentives market incentives enablers i will come back to in order to make transformative elements happening Then, of course, the technology development that is also further than accelerating now. then of course the technology development that is also further than accelerating now There are, of course, different priorities for different stakeholders here, but at the end of the day, we need to relate to it together with our customers to be successful. there are of course different priorities for different stakeholders here but at the end of the day we need to relate to it together with our customers to be successful That is how we drive business forward here. that is how we drive business forward here In order to do so, it starts with a job to be done. in order to do so it starts with a job to be done It's easy to aggregate this to high levels. it's easy to aggregate this to high levels It's easy to talk about the bigger picture, which we eventually need to do in order to pull together scale, technology bets, industrial footprint investments, et cetera. it's easy to talk about the bigger picture which we eventually need to do in order to pull together scale technology bets industrial footprint investments et cetera But at starting point, it starts with this. but at starting point it starts with this It starts with the solution for the customer. Here I've just taken one example, and I've taken an example that is pretty well-known in order to make the point here. That is typical long haulage application in Europe, probably 120,000-125,000 km. Quite many customers doing a lot more there, but we took that for the point. A 4x2 tractor, in this case, a diesel ICE operation. What you don't see in this P&L, because every equipment is a profit and loss statement with a heart, but I will come back to the heart a little bit later, is the revenue generation. The revenue generation for the customer is, of course, the starting point if you make a P&L, and there payload, uptime, and availability, and durability is, of course, super important. Here we are talking about the cost elements of the P&L. It starts with the solution for the customer. it starts with the solution for the customer Here I've just taken one example, and I've taken an example that is pretty well-known in order to make the point here. here i've just taken one example and i've taken an example that is pretty well-known in order to make the point here That is typical long haulage application in Europe, probably 120,000- 125,000 km. that is typical long haulage application in europe probably 120,000- 125,000 km Quite many customers doing a lot more there, but we took that for the point. quite many customers doing a lot more there but we took that for the point A 4x2 tractor, in this case, a diesel ICE operation. a 4x2 tractor in this case a diesel ice operation What you don't see in this P&L, because every equipment is a profit and loss statement with a heart, but I will come back to the heart a little bit later, is the revenue generation. what you don't see in this p&l because every equipment is a profit and loss statement with a heart but i will come back to the heart a little bit later is the revenue generation The revenue generation for the customer is, of course, the starting point if you make a P&L, and there payload, uptime, and availability, and durability is, of course, super important. the revenue generation for the customer is of course the starting point if you make a p&l and there payload uptime and availability and durability is of course super important Here we are talking about the cost elements of the P&L. here we are talking about the cost elements of the p&l What you see in this specific application, the vehicle including trailer. The equipment as such stands probably for, depending a little bit on country, 12%-14%, 15%. I would make it clear for you that we are not the cheapest here by far on this diesel execution if you take a Volvo truck or a Renault truck. We are pretty competitive when it comes to the vehicle here since we have such a great residual value. Price minus residual value is, so to speak, the component, what we look at here, the 12%-15%. The more important piece of this is how does that affect the rest here. Energy efficiency, uptime, driver attractiveness, safety, comfort, availability, both for top line and cost. That logic prevails regardless of region, application, segment, and it will always be the competitive set, the solution for the customer. What you see in this specific application, the vehicle including trailer. what you see in this specific application the vehicle including trailer The equipment as such stands probably for, depending a little bit on country, 12%- 14%, 15%. the equipment as such stands probably for depending a little bit on country 12%- 14% 15% I would make it clear for you that we are not the cheapest here by far on this diesel execution if you take a Volvo truck or a Renault truck. i would make it clear for you that we are not the cheapest here by far on this diesel execution if you take a volvo truck or a renault truck We are pretty competitive when it comes to the vehicle here since we have such a great residual value. we are pretty competitive when it comes to the vehicle here since we have such a great residual value Price minus residual value is, so to speak, the component, what we look at here, the 12%-15%. price minus residual value is so to speak the component what we look at here the 12%-15% The more important piece of this is how does that affect the rest here. the more important piece of this is how does that affect the rest here Energy efficiency, uptime, driver attractiveness, safety, comfort, availability, both for top line and cost. energy efficiency uptime driver attractiveness safety comfort availability both for top line and cost That logic prevails regardless of region, application, segment, and it will always be the competitive set, the solution for the customer. that logic prevails regardless of region application segment and it will always be the competitive set the solution for the customer How do we produce that? We produce that through the total offer. The total offer is a combination of products and solutions that are eventually offered to be tailored for every application customer, segment, and geography. I will not go into detail here because my colleagues will touch on how we really execute on this in today's landscape. It is important to continuously build a modular platform around this to be successful. If we then take another example now, one of the transformative elements, because when I describe the transformation, that could be seen as, for example, propulsion technology, moving from a diesel or an internal combustion engine, even from a diesel to a renewable or from a ICE or internal combustion engine to a battery electric or what have you. How do we produce that? how do we produce that We produce that through the total offer. we produce that through the total offer The total offer is a combination of products and solutions that are eventually offered to be tailored for every application customer, segment, and geography. the total offer is a combination of products and solutions that are eventually offered to be tailored for every application customer segment and geography I will not go into detail here because my colleagues will touch on how we really execute on this in today's landscape. i will not go into detail here because my colleagues will touch on how we really execute on this in today's landscape It is important to continuously build a modular platform around this to be successful. it is important to continuously build a modular platform around this to be successful If we then take another example now, one of the transformative elements, because when I describe the transformation, that could be seen as, for example, propulsion technology, moving from a diesel or an internal combustion engine, even from a diesel to a renewable or from a ICE or internal combustion engine to a battery electric or what have you. if we then take another example now one of the transformative elements because when i describe the transformation that could be seen as for example propulsion technology moving from a diesel or an internal combustion engine even from a diesel to a renewable or from a ice or internal combustion engine to a battery electric or what have you If you take the battery electric here, what has happened since we last met 18 months ago? Some good news and some a little bit more challenging news. I will start with the good news, guys. The good news is that the logic here is exactly the same as for whatever. The cost elements might be a little bit different, but the logic starts with the same, that you need to specify this to the exact need of the customer for long haul or for construction or for an excavator or for a bus, right? What we have seen then is obviously, number one, that uptime, availability, safety, but also the infrastructure around will be even more important, right? We have been early out. We have learned a lot around that, even if it's not scaling yet. In Europe and North America at least, Global South as well. If you take the battery electric here, what has happened since we last met 18 months ago? if you take the battery electric here what has happened since we last met 18 months ago Some good news and some a little bit more challenging news. some good news and some a little bit more challenging news I will start with the good news, guys. i will start with the good news guys The good news is that the logic here is exactly the same as for whatever. the good news is that the logic here is exactly the same as for whatever The cost elements might be a little bit different, but the logic starts with the same, that you need to specify this to the exact need of the customer for long haul or for construction or for an excavator or for a bus, right? the cost elements might be a little bit different but the logic starts with the same that you need to specify this to the exact need of the customer for long haul or for construction or for an excavator or for a bus right What we have seen then is obviously, number one, that uptime, availability, safety, but also the infrastructure around will be even more important, right? what we have seen then is obviously number one that uptime availability safety but also the infrastructure around will be even more important right We have been early out. we have been early out We have learned a lot around that, even if it's not scaling yet. In Europe and North America at least, Global South as well. we have learned a lot around that even if it's not scaling yet. in europe and north america at least global south as well We have also seen that some of the critical cost components are coming down quicker than we anticipated, but also that the global access of that for companies like us, both when it comes to internal innovation and of course also when it comes to our global supply partner ecosystem, is there to a higher extent. That makes us possible also to continue to develop that, and in particular, of course, battery technology from cell all the way up to pack. The ability to still tailor-made a solution is there to drive the same type of outcome. What is a little bit more discouraging about this is that the equation in order to make this happen is going too slow in some of our key markets. We have also seen that some of the critical cost components are coming down quicker than we anticipated, but also that the global access of that for companies like us, both when it comes to internal innovation and of course also when it comes to our global supply partner ecosystem, is there to a higher extent. we have also seen that some of the critical cost components are coming down quicker than we anticipated but also that the global access of that for companies like us both when it comes to internal innovation and of course also when it comes to our global supply partner ecosystem is there to a higher extent That makes us possible also to continue to develop that, and in particular, of course, battery technology from cell all the way up to pack. that makes us possible also to continue to develop that and in particular of course battery technology from cell all the way up to pack The ability to still tailor-made a solution is there to drive the same type of outcome. the ability to still tailor-made a solution is there to drive the same type of outcome What is a little bit more discouraging about this is that the equation in order to make this happen is going too slow in some of our key markets. what is a little bit more discouraging about this is that the equation in order to make this happen is going too slow in some of our key markets When we look to this now here, we see that segment by segment and application by application, we are actually getting to a TCO parity or even better in certain cases if you are factoring in the different parameters, city distribution, city buses, Anna, again there. Where is Antoine? We see it very clearly there. We see it in some of the segments also for you, Melker, et cetera. That part of the equation is there, but what we see it's going too slow for certain other enabling conditions. That's the reason why I talked about enablers before in order to make this happen, and in particular in Europe and North America, but also in Global South, as I said. I would like to pinpoint infrastructure built out in particular for the public, and that's the reason why the depot type of solutions are going quicker. When we look to this now here, we see that segment by segment and application by application, we are actually getting to a TCO parity or even better in certain cases if you are factoring in the different parameters, city distribution, city buses, Anna, again there. when we look to this now here we see that segment by segment and application by application we are actually getting to a tco parity or even better in certain cases if you are factoring in the different parameters city distribution city buses anna again there Where is Antoine? where is antoine We see it very clearly there. we see it very clearly there We see it in some of the segments also for you, Melker, et cetera. we see it in some of the segments also for you melker et cetera That part of the equation is there, but what we see it's going too slow for certain other enabling conditions. that part of the equation is there but what we see it's going too slow for certain other enabling conditions That's the reason why I talked about enablers before in order to make this happen, and in particular in Europe and North America, but also in Global South, as I said. that's the reason why i talked about enablers before in order to make this happen and in particular in europe and north america but also in global south as i said I would like to pinpoint infrastructure built out in particular for the public, and that's the reason why the depot type of solutions are going quicker. i would like to pinpoint infrastructure built out in particular for the public and that's the reason why the depot type of solutions are going quicker The energy and the grid network, but also uncertainties about the TCO parameters when it comes to. I will give you an example of that here. Here you see how it looks like now when it comes to the adoption of heavy duty. Zero in North America, 2% so far in Europe, and 28% in China. As you can see, it is pretty closely related to some other factors here. Here you have the number of charging stations in the relevant areas, and there you have the biggest on the public side. How you have decided to drive, so to speak, the pricing on public stations. When you see these differences, you will not be surprised that you don't have the same adoption level. The energy and the grid network, but also uncertainties about the TCO parameters when it comes to. the energy and the grid network but also uncertainties about the tco parameters when it comes to I will give you an example of that here. i will give you an example of that here Here you see how it looks like now when it comes to the adoption of heavy duty. here you see how it looks like now when it comes to the adoption of heavy duty Zero in North America, 2% so far in Europe, and 28% in China. zero in north america 2% so far in europe and 28% in china As you can see, it is pretty closely related to some other factors here. as you can see it is pretty closely related to some other factors here Here you have the number of charging stations in the relevant areas, and there you have the biggest on the public side. here you have the number of charging stations in the relevant areas and there you have the biggest on the public side How you have decided to drive, so to speak, the pricing on public stations. how you have decided to drive so to speak the pricing on public stations When you see these differences, you will not be surprised that you don't have the same adoption level. when you see these differences you will not be surprised that you don't have the same adoption level The trick for us is obviously that we continue to drive that through our modular cost system, that we are continuing to refine the products, as I alluded to with our new BEV and the access to the key technologies here. The other angle of this, if you leave for one second the transformative elements that will be incorporated is, of course, that every, and this is illustrative of course, but at the end of the day, is hundreds of thousands of different applications. Every spot here represent just Mack refuse or an excavator customer in Hungary or whatever it can be. There are no shortcuts. The trick for us is obviously that we continue to drive that through our modular cost system, that we are continuing to refine the products, as I alluded to with our new BEV and the access to the key technologies here. the trick for us is obviously that we continue to drive that through our modular cost system that we are continuing to refine the products as i alluded to with our new bev and the access to the key technologies here The other angle of this, if you leave for one second the transformative elements that will be incorporated is, of course, that every, and this is illustrative of course, but at the end of the day, is hundreds of thousands of different applications. the other angle of this if you leave for one second the transformative elements that will be incorporated is of course that every and this is illustrative of course but at the end of the day is hundreds of thousands of different applications Every spot here represent just Mack refuse or an excavator customer in Hungary or whatever it can be. every spot here represent just mack refuse or an excavator customer in hungary or whatever it can be There are no shortcuts. there are no shortcuts We see some shortcuts, not shortcuts, but we actually see that is one of our most interesting, not trials and pilots, but use cases of how we apply digital intelligence and artificial intelligence is we have so much data, so we actually can drive the specification and support our sales force to even better refine that for every customer here. At the end of the day, obviously, it will turn out to be all these different type of pie charts. One pie chart here with different constitutions when it comes to the vehicle or the machine, when it comes to the fuel, when it comes to a lot of different things, needs to be really understood in order to make the high performance. The assets we have to make that happen are, of course, quite a lot. We see some shortcuts, not shortcuts, but we actually see that is one of our most interesting, not trials and pilots, but use cases of how we apply digital intelligence and artificial intelligence is we have so much data, so we actually can drive the specification and support our sales force to even better refine that for every customer here. we see some shortcuts not shortcuts but we actually see that is one of our most interesting not trials and pilots but use cases of how we apply digital intelligence and artificial intelligence is we have so much data so we actually can drive the specification and support our sales force to even better refine that for every customer here At the end of the day, obviously, it will turn out to be all these different type of pie charts. at the end of the day obviously it will turn out to be all these different type of pie charts One pie chart here with different constitutions when it comes to the vehicle or the machine, when it comes to the fuel, when it comes to a lot of different things, needs to be really understood in order to make the high performance. one pie chart here with different constitutions when it comes to the vehicle or the machine when it comes to the fuel when it comes to a lot of different things needs to be really understood in order to make the high performance The assets we have to make that happen are, of course, quite a lot. the assets we have to make that happen are of course quite a lot It starts with that we have a very clear view on how we are operating our brands around the globe. Volvo, the Volvo brand, Volvo Buses, Volvo Construction Equipment, Volvo Penta, Volvo Trucks, Volvo Financial Services operating globally. Of course also that we have our strong regional brands also to further unleash the full potential. This is not exactly true. We have Renault Trucks in other parts of the world, et cetera, but where we really have the inertia. That we have very strong retail presence. Global reach, yes, but extremely local, being there every day. Segment and application excellence enabled by our common architecture and shared technology. That is in essence how we can incorporate and combine the tailor-making with the scale and the technology leadership, innovation leadership, and speed to market. It starts with that we have a very clear view on how we are operating our brands around the globe. it starts with that we have a very clear view on how we are operating our brands around the globe Volvo, the Volvo brand, Volvo Buses, Volvo Construction Equipment, Volvo Penta, Volvo Trucks, Volvo Financial Services operating globally. volvo the volvo brand volvo buses volvo construction equipment volvo penta volvo trucks volvo financial services operating globally Of course also that we have our strong regional brands also to further unleash the full potential. of course also that we have our strong regional brands also to further unleash the full potential This is not exactly true. this is not exactly true We have Renault Trucks in other parts of the world, et cetera, but where we really have the inertia. we have renault trucks in other parts of the world et cetera but where we really have the inertia That we have very strong retail presence. that we have very strong retail presence Global reach, yes, but extremely local, being there every day. global reach yes but extremely local being there every day Segment and application excellence enabled by our common architecture and shared technology. segment and application excellence enabled by our common architecture and shared technology That is in essence how we can incorporate and combine the tailor-making with the scale and the technology leadership, innovation leadership, and speed to market. that is in essence how we can incorporate and combine the tailor-making with the scale and the technology leadership innovation leadership and speed to market Then, of course, in a world with all these moving parameters, regional value chains, this is produced based on our recipe for success that we talked about. That customer trust that has been built up for years, a growing customer base that is truly trusting that we will do this together, that are living together with us, driving that TCO, uptime, productivity, safety, comfort, all the different aspects of the winning formula for our customers through a decentralized organization with speed and execution, Kina. Then, of course, in a world with all these moving parameters, regional value chains, this is produced based on our recipe for success that we talked about. That customer trust that has been built up for years, a growing customer base that is truly trusting that we will do this together, that are living together with us, driving that TCO, uptime, productivity, safety, comfort, all the different aspects of the winning formula for our customers through a decentralized organization with speed and execution, Kina. then of course in a world with all these moving parameters regional value chains this is produced based on our recipe for success that we talked about. that customer trust that has been built up for years a growing customer base that is truly trusting that we will do this together that are living together with us driving that tco uptime productivity safety comfort all the different aspects of the winning formula for our customers through a decentralized organization with speed and execution kina

Speaker 11: Thank you so much, Martin, for giving us a strategic look at how we are going to grow. Maybe we can end by showing the different dimensions of growth. Thank you so much, Martin, for giving us a strategic look at how we are going to grow. thank you so much martin for giving us a strategic look at how we are going to grow Maybe we can end by showing the different dimensions of growth. maybe we can end by showing the different dimensions of growth

Speaker 13: Yeah. You can combine the different dimensions of growth in many different ways, obviously. We have decided now to talk about it in these dimensions. The growing global demand we have been into. Also, that you will see more about today, how we are targeting specific regions and growth segments with even higher growth opportunities, still combining our capabilities and assets, and how we, through that, also can outgrow both the market, the specific strategically selected segments through our total offer, and how that finally also will drive content per unit, thanks to the optimization of the solution, basically. Yeah. yeah You can combine the different dimensions of growth in many different ways, obviously. you can combine the different dimensions of growth in many different ways obviously We have decided now to talk about it in these dimensions. we have decided now to talk about it in these dimensions The growing global demand we have been into. the growing global demand we have been into Also, that you will see more about today, how we are targeting specific regions and growth segments with even higher growth opportunities, still combining our capabilities and assets, and how we, through that, also can outgrow both the market, the specific strategically selected segments through our total offer, and how that finally also will drive content per unit, thanks to the optimization of the solution, basically. also that you will see more about today how we are targeting specific regions and growth segments with even higher growth opportunities still combining our capabilities and assets and how we through that also can outgrow both the market the specific strategically selected segments through our total offer and how that finally also will drive content per unit thanks to the optimization of the solution basically

Speaker 11: Coming to your point, Martin, that part of the resilience that we have created comes from the fact that we are present in so many different segments, and these are segments that we have chosen carefully and strategically, and that, simply put, gives us many legs to stand on. As I said in my introduction, we are going to focus on the segments today rather than business area by business area, Martin. Coming to your point, Martin, that part of the resilience that we have created comes from the fact that we are present in so many different segments, and these are segments that we have chosen carefully and strategically, and that, simply put, gives us many legs to stand on. coming to your point martin that part of the resilience that we have created comes from the fact that we are present in so many different segments and these are segments that we have chosen carefully and strategically and that simply put gives us many legs to stand on As I said in my introduction, we are going to focus on the segments today rather than business area by business area, Martin. as i said in my introduction we are going to focus on the segments today rather than business area by business area martin

Speaker 13: Absolutely. The reason for that is, of course, also that we see a number of these segments coming together where we can combine, on one side, our global capabilities, assets, global network with what they need, but also because some of these segments contain enormous opportunity when we are pulling together the capabilities from different business areas. That is important. If you look at it, how it looks now, here as you see them, the growth segments fitting our core capabilities and common assets. The risk is otherwise that we, and we love that as well, obviously, that we will talk about our on-road freight, we will talk about the construction, maybe we will touch on some of these others. When we look at opportunities now, of course, they will continue here, and you will hear more about that, our core segments. Absolutely. absolutely The reason for that is, of course, also that we see a number of these segments coming together where we can combine, on one side, our global capabilities, assets, global network with what they need, but also because some of these segments contain enormous opportunity when we are pulling together the capabilities from different business areas. the reason for that is of course also that we see a number of these segments coming together where we can combine on one side our global capabilities assets global network with what they need but also because some of these segments contain enormous opportunity when we are pulling together the capabilities from different business areas That is important. that is important If you look at it, how it looks now, here as you see them, the growth segments fitting our core capabilities and common assets. if you look at it how it looks now here as you see them the growth segments fitting our core capabilities and common assets The risk is otherwise that we, and we love that as well, obviously, that we will talk about our on-road freight, we will talk about the construction, maybe we will touch on some of these others. the risk is otherwise that we and we love that as well obviously that we will talk about our on-road freight we will talk about the construction maybe we will touch on some of these others When we look at opportunities now, of course, they will continue here, and you will hear more about that, our core segments. when we look at opportunities now of course they will continue here and you will hear more about that our core segments On-road, both long and regional haul, as well as construction, enormous opportunities. The compounded opportunity that we see in urban logistics, public transportation, and obviously mining and quarry, where we are punching under our weight today when we look at our core capabilities and what we can achieve for sure, and we are now focusing on that, as well as defense, same here. Logistics, autonomous, last mile will play a super important role. Scale will matter with service capabilities and, of course, power generation. It looks 5% here, Anna will talk about something that I know that you will like, how we are growing quickly now when it comes to the AI and data center infrastructure. Exciting times, Kina. On-road, both long and regional haul, as well as construction, enormous opportunities. on-road both long and regional haul as well as construction enormous opportunities The compounded opportunity that we see in urban logistics, public transportation, and obviously mining and quarry, where we are punching under our weight today when we look at our core capabilities and what we can achieve for sure, and we are now focusing on that, as well as defense, same here. the compounded opportunity that we see in urban logistics public transportation and obviously mining and quarry where we are punching under our weight today when we look at our core capabilities and what we can achieve for sure and we are now focusing on that as well as defense same here Logistics, autonomous, last mile will play a super important role. logistics autonomous last mile will play a super important role Scale will matter with service capabilities and, of course, power generation. scale will matter with service capabilities and of course power generation It looks 5% here, Anna will talk about something that I know that you will like, how we are growing quickly now when it comes to the AI and data center infrastructure. it looks 5% here anna will talk about something that i know that you will like how we are growing quickly now when it comes to the ai and data center infrastructure Exciting times, Kina. exciting times kina

Speaker 11: We have a very exciting hour in front of us. I think you have deserved a break now, Martin. Please have a seat, and we will obviously see a lot of you during the day. We have a very exciting hour in front of us. we have a very exciting hour in front of us I think you have deserved a break now, Martin. i think you have deserved a break now martin Please have a seat, and we will obviously see a lot of you during the day. please have a seat and we will obviously see a lot of you during the day

Speaker 13: Thank you, Kina. Thank you, Kina. thank you kina

Speaker 11: Thank you. Thank you. thank you

Speaker 13: Thank you. Thank you. thank you

Speaker 11: We are going to accelerate straight into our first segment, which is on-road. Welcome to the stage, Roger. Roger, let me introduce you with being the man with probably the highest truck margin in the world. How does that feel? We are going to accelerate straight into our first segment, which is on-road. we are going to accelerate straight into our first segment which is on-road Welcome to the stage, Roger. welcome to the stage roger Roger, let me introduce you with being the man with probably the highest truck margin in the world. roger let me introduce you with being the man with probably the highest truck margin in the world How does that feel? how does that feel

Speaker 19: Certain pressure, but of course, we are very humbled for the situation, but also then extremely proud of what we are achieving together with our people and our customers, of course. Certain pressure, but of course, we are very humbled for the situation, but also then extremely proud of what we are achieving together with our people and our customers, of course. certain pressure but of course we are very humbled for the situation but also then extremely proud of what we are achieving together with our people and our customers of course

Speaker 11: You are present in a number of different segments. You are present in a number of different segments. you are present in a number of different segments

Speaker 19: That's correct That's correct that's correct

Speaker 11: On-road is the largest. I would like to leave the stage to you to present how you're going from best to even better. On-road is the largest. on-road is the largest I would like to leave the stage to you to present how you're going from best to even better. i would like to leave the stage to you to present how you're going from best to even better

Speaker 19: Thank you, Kina, and good morning to all of you. At Volvo Trucks, we have a very solid track record of profitable growth, regardless of business climate. We have gone through very turbulent times, as you know, but we have continued to drive high profitability. Here you can see on the graph our strong improvements of net sales and operating margin since 2017. If we are going back to 2023, we have the strongest record year in 2023 with the margin close to 20%. We are operating from a position of strength. We have taken significant steps as well of improving our market share, but it's not only to improve the market share. We are improving profitable market share. In Europe, we are the market leader for two years in a row with a market share of 19.3%. Thank you, Kina, and good morning to all of you. thank you kina and good morning to all of you At Volvo Trucks, we have a very solid track record of profitable growth, regardless of business climate. at volvo trucks we have a very solid track record of profitable growth regardless of business climate We have gone through very turbulent times, as you know, but we have continued to drive high profitability. we have gone through very turbulent times as you know but we have continued to drive high profitability Here you can see on the graph our strong improvements of net sales and operating margin since 2017. here you can see on the graph our strong improvements of net sales and operating margin since 2017 If we are going back to 2023, we have the strongest record year in 2023 with the margin close to 20%. if we are going back to 2023 we have the strongest record year in 2023 with the margin close to 20% We are operating from a position of strength. we are operating from a position of strength We have taken significant steps as well of improving our market share, but it's not only to improve the market share. we have taken significant steps as well of improving our market share but it's not only to improve the market share We are improving profitable market share. we are improving profitable market share In Europe, we are the market leader for two years in a row with a market share of 19.3%. in europe we are the market leader for two years in a row with a market share of 19.3% In Brazil, we have grown our market share with more than 8%, and we are the market leader for the fourth year in a row. In Australia, we are keeping up a very strong and solid position. We have a proven track record to grow our market share. Therefore, we are extremely confident that we can do the same journey in North America. Our vehicle population, our truck populations, is building resilience into our business. We have a vehicle population of 10 years that is 1.1 million trucks running on the roads every day. The majority of the trucks are between three to six years old. That is the sweet spot of the highest service potential. If you look at the operating income from Volvo Trucks, we have a high profitability of new trucks driven by strong price realization. In Brazil, we have grown our market share with more than 8%, and we are the market leader for the fourth year in a row. in brazil we have grown our market share with more than 8% and we are the market leader for the fourth year in a row In Australia, we are keeping up a very strong and solid position. in australia we are keeping up a very strong and solid position We have a proven track record to grow our market share. Therefore, we are extremely confident that we can do the same journey in North America. we have a proven track record to grow our market share. therefore we are extremely confident that we can do the same journey in north america Our vehicle population, our truck populations, is building resilience into our business. our vehicle population our truck populations is building resilience into our business We have a vehicle population of 10 years that is 1.1 million trucks running on the roads every day. we have a vehicle population of 10 years that is 1.1 million trucks running on the roads every day The majority of the trucks are between three to six years old. the majority of the trucks are between three to six years old That is the sweet spot of the highest service potential. that is the sweet spot of the highest service potential If you look at the operating income from Volvo Trucks, we have a high profitability of new trucks driven by strong price realization. if you look at the operating income from volvo trucks we have a high profitability of new trucks driven by strong price realization We also then have a very good profitability of the service business, creating a strong resilience into our business, but also that we are extremely profitable in high markets. We will manage high profitability throughout business cycles. Martin was into this, our customers, our fantastic customers. Our business is such an emotional part of our business, and we are emotional as well. We are working very tight with our customers, we have strong relations with our customers, and we know our customers and their business. We are constantly working on improving customer satisfaction. Today, we have a leading position, and we are winning together with our customers. I will move over to our growth opportunities for Volvo Trucks, I will go into four areas. We also then have a very good profitability of the service business, creating a strong resilience into our business, but also that we are extremely profitable in high markets. we also then have a very good profitability of the service business creating a strong resilience into our business but also that we are extremely profitable in high markets We will manage high profitability throughout business cycles. we will manage high profitability throughout business cycles Martin was into this, our customers, our fantastic customers. martin was into this our customers our fantastic customers Our business is such an emotional part of our business, and we are emotional as well. our business is such an emotional part of our business and we are emotional as well We are working very tight with our customers, we have strong relations with our customers, and we know our customers and their business. we are working very tight with our customers we have strong relations with our customers and we know our customers and their business We are constantly working on improving customer satisfaction. we are constantly working on improving customer satisfaction Today, we have a leading position, and we are winning together with our customers. today we have a leading position and we are winning together with our customers I will move over to our growth opportunities for Volvo Trucks, I will go into four areas. i will move over to our growth opportunities for volvo trucks i will go into four areas I will talk about segments, I will talk about the total offer, I will talk about the services, growth in key markets. Let's start with segments in electromobility. We started electromobility in 2019. We have today models in all segments, we have eight models in production. We have delivered close to 7,000 electrical trucks to 50 countries around the world. These trucks have been driven in commercial operations more than 400 million kilometers. We have built a lot of competence regarding electrical trucks. We recently launched our next generation of electrical products. Improved payload, reduced charging time, a range up to 700 km. This is a new benchmark regarding the electrical trucks in the industry. Moving over to our fantastic long-haul trucks. This is a new era of trucks into the industry, setting a completely new standard regarding design. I will talk about segments, I will talk about the total offer, I will talk about the services, growth in key markets. i will talk about segments i will talk about the total offer i will talk about the services growth in key markets Let's start with segments in electromobility. let's start with segments in electromobility We started electromobility in 2019. we started electromobility in 2019 We have today models in all segments, we have eight models in production. we have today models in all segments we have eight models in production We have delivered close to 7,000 electrical trucks to 50 countries around the world. we have delivered close to 7,000 electrical trucks to 50 countries around the world These trucks have been driven in commercial operations more than 400 million kilometers. these trucks have been driven in commercial operations more than 400 million kilometers We have built a lot of competence regarding electrical trucks. we have built a lot of competence regarding electrical trucks We recently launched our next generation of electrical products. we recently launched our next generation of electrical products Improved payload, reduced charging time, a range up to 700 km. improved payload reduced charging time a range up to 700 km This is a new benchmark regarding the electrical trucks in the industry. this is a new benchmark regarding the electrical trucks in the industry Moving over to our fantastic long-haul trucks. moving over to our fantastic long-haul trucks This is a new era of trucks into the industry, setting a completely new standard regarding design. this is a new era of trucks into the industry setting a completely new standard regarding design They look completely beautiful. Fuel consumption, severely improved. Safety, a lot higher safety system, driver comfort. The all-new VNL, 10% fuel reduction. The FH Aero, 7% fuel reduction. You can imagine that impact on the bottom line from our customers. We have strong deliveries of both models in production start. We have an amazing growth opportunity with these fantastic products to gain further profitable market shares. Another growth area is mining, construction, and quarries. Here we are working together with Volvo Construction Equipment. We have a broad range of trucks available into these segments. One is the FMX. That product is proven to handle the toughest jobs in the industry. Here you can see on the stage the electrical version. It's a powerful truck that runs up to 470 km. I will move over to our second growth opportunities, total offer. They look completely beautiful. they look completely beautiful Fuel consumption, severely improved. fuel consumption severely improved Safety, a lot higher safety system, driver comfort. safety a lot higher safety system driver comfort The all-new VNL, 10% fuel reduction. the all-new vnl 10% fuel reduction The FH Aero, 7% fuel reduction. the fh aero 7% fuel reduction You can imagine that impact on the bottom line from our customers. you can imagine that impact on the bottom line from our customers We have strong deliveries of both models in production start. we have strong deliveries of both models in production start We have an amazing growth opportunity with these fantastic products to gain further profitable market shares. we have an amazing growth opportunity with these fantastic products to gain further profitable market shares Another growth area is mining, construction, and quarries. another growth area is mining construction and quarries Here we are working together with Volvo Construction Equipment. here we are working together with volvo construction equipment We have a broad range of trucks available into these segments. we have a broad range of trucks available into these segments One is the FMX. one is the fmx That product is proven to handle the toughest jobs in the industry. that product is proven to handle the toughest jobs in the industry Here you can see on the stage the electrical version. here you can see on the stage the electrical version It's a powerful truck that runs up to 470 km. it's a powerful truck that runs up to 470 km I will move over to our second growth opportunities, total offer. i will move over to our second growth opportunities total offer I will explain our way of working and the potential with the total offer. We have a customer that operate in a segment. We will provide a truck model and specify that truck and add all the needed features. We will get the very profitable truck price, but also a product with a high service potential. We will add parts, workshops, digital services, and uptime, and connect that with a service contract, preferably a gold service contract during a long duration period. Next step, we will add financing and insurance from Volvo Financial Services. We have maximized the revenue potential of the product, but we have also given our customer a very profitable product with high residual value and uptime. We have also then a lot of further potential to drive the total offer and gain further revenues into our business. I will explain our way of working and the potential with the total offer. i will explain our way of working and the potential with the total offer We have a customer that operate in a segment. we have a customer that operate in a segment We will provide a truck model and specify that truck and add all the needed features. we will provide a truck model and specify that truck and add all the needed features We will get the very profitable truck price, but also a product with a high service potential. we will get the very profitable truck price but also a product with a high service potential We will add parts, workshops, digital services, and uptime, and connect that with a service contract, preferably a gold service contract during a long duration period. we will add parts workshops digital services and uptime and connect that with a service contract preferably a gold service contract during a long duration period Next step, we will add financing and insurance from Volvo Financial Services. next step we will add financing and insurance from volvo financial services We have maximized the revenue potential of the product, but we have also given our customer a very profitable product with high residual value and uptime. we have maximized the revenue potential of the product but we have also given our customer a very profitable product with high residual value and uptime We have also then a lot of further potential to drive the total offer and gain further revenues into our business. we have also then a lot of further potential to drive the total offer and gain further revenues into our business Total offer is a win-win for us and for our customers. The third growth opportunity is services in a growing truck population. We have a truck population of 1.1 million trucks, 10 years old. Every time we sell a truck, we are increasing the truck population and the service potential. Total offer has enabled us to grow the service potential and secure the revenues. We have grown our service contract portfolio with 180% since 2017 to a value of SEK 70 billion. This is secured revenues for the future. To manage our service growth, we need a very strong distribution network. Now we are going to build an even stronger distribution network. Today, we have a distribution network of 2,500 service locations around the world. We own 330 ourselves. Our distribution network is a competitive advantage. We have built this distribution network for over 100 years. Total offer is a win-win for us and for our customers. The third growth opportunity is services in a growing truck population. total offer is a win-win for us and for our customers. the third growth opportunity is services in a growing truck population We have a truck population of 1.1 million trucks, 10 years old. we have a truck population of 1.1 million trucks 10 years old Every time we sell a truck, we are increasing the truck population and the service potential. every time we sell a truck we are increasing the truck population and the service potential Total offer has enabled us to grow the service potential and secure the revenues. total offer has enabled us to grow the service potential and secure the revenues We have grown our service contract portfolio with 180% since 2017 to a value of SEK 70 billion. we have grown our service contract portfolio with 180% since 2017 to a value of sek 70 billion This is secured revenues for the future. this is secured revenues for the future To manage our service growth, we need a very strong distribution network. to manage our service growth we need a very strong distribution network Now we are going to build an even stronger distribution network. now we are going to build an even stronger distribution network Today, we have a distribution network of 2,500 service locations around the world. today we have a distribution network of 2,500 service locations around the world We own 330 ourselves. we own 330 ourselves Our distribution network is a competitive advantage. our distribution network is a competitive advantage We have built this distribution network for over 100 years. we have built this distribution network for over 100 years You don't do this very fast. Now we will build an even stronger distribution network, and we will do that by focusing on strengthening the private dealers. We will grow organically in selected white spots, and we will do that as well with selected M&As. Moving over to growth in key markets. We have a very solid track record of profitable growth in Europe, South America, and in Australia. Now we will take this proven success and scale that to other regions around the world. Let's look into Europe as a benchmark. Europe is an excellent example of very strong, profitable growth. We have increased revenues, we have increased margins, we have increased resilience and market shares. We have done that by focusing on profitable market shares, total offer, and then growing our service business. You don't do this very fast. you don't do this very fast Now we will build an even stronger distribution network, and we will do that by focusing on strengthening the private dealers. now we will build an even stronger distribution network and we will do that by focusing on strengthening the private dealers We will grow organically in selected white spots, and we will do that as well with selected M&As. we will grow organically in selected white spots and we will do that as well with selected m&as Moving over to growth in key markets. moving over to growth in key markets We have a very solid track record of profitable growth in Europe, South America, and in Australia. we have a very solid track record of profitable growth in europe south america and in australia Now we will take this proven success and scale that to other regions around the world. now we will take this proven success and scale that to other regions around the world Let's look into Europe as a benchmark. let's look into europe as a benchmark Europe is an excellent example of very strong, profitable growth. europe is an excellent example of very strong profitable growth We have increased revenues, we have increased margins, we have increased resilience and market shares. we have increased revenues we have increased margins we have increased resilience and market shares We have done that by focusing on profitable market shares, total offer, and then growing our service business. we have done that by focusing on profitable market shares total offer and then growing our service business We have grown our market share to 19.3%, and we are the market leader for the second year in a row. Our European business is very, very profitable. Now we will do similar journeys in other regions all around the world, like in North America. We can still grow even further in Europe, like in Germany and other countries, and also then with services. Another key region for growth is, of course, North America. We will grow in North America now with our new product range, with new capacity in Mexico, with services, and then investments by our dealers. We are focusing on segment, very focused, and we are conquesting a lot of new customers. Now we are increasing capacity in North America due to a very, very strong order intake. India is also another potential for growth. We have grown our market share to 19.3%, and we are the market leader for the second year in a row. we have grown our market share to 19.3% and we are the market leader for the second year in a row Our European business is very, very profitable. our european business is very very profitable Now we will do similar journeys in other regions all around the world, like in North America. now we will do similar journeys in other regions all around the world like in north america We can still grow even further in Europe, like in Germany and other countries, and also then with services. we can still grow even further in europe like in germany and other countries and also then with services Another key region for growth is, of course, North America. another key region for growth is of course north america We will grow in North America now with our new product range, with new capacity in Mexico, with services, and then investments by our dealers. we will grow in north america now with our new product range with new capacity in mexico with services and then investments by our dealers We are focusing on segment, very focused, and we are conquesting a lot of new customers. we are focusing on segment very focused and we are conquesting a lot of new customers Now we are increasing capacity in North America due to a very, very strong order intake. now we are increasing capacity in north america due to a very very strong order intake India is also another potential for growth. india is also another potential for growth With the industrial hub in India, we will create opportunities to grow in India and the rest of Asia. To sum up, at Volvo Trucks, we have a solid track record of driving profitable growth. We are acting from a position of strength. We have a proven record to grow our business. We have the strategy in place, we have the products, we have the network, and we have our fantastic people. Now we will take the opportunities in the areas to grow our business even further to be even stronger. Over to you, Kina. With the industrial hub in India, we will create opportunities to grow in India and the rest of Asia. with the industrial hub in india we will create opportunities to grow in india and the rest of asia To sum up, at Volvo Trucks, we have a solid track record of driving profitable growth. to sum up at volvo trucks we have a solid track record of driving profitable growth We are acting from a position of strength. we are acting from a position of strength We have a proven record to grow our business. we have a proven record to grow our business We have the strategy in place, we have the products, we have the network, and we have our fantastic people. we have the strategy in place we have the products we have the network and we have our fantastic people Now we will take the opportunities in the areas to grow our business even further to be even stronger. now we will take the opportunities in the areas to grow our business even further to be even stronger Over to you, Kina. over to you kina

Speaker 11: Thank you so much, Roger. Crystal clear as always. Why don't you join me over here? We are going to dig a little deeper into some of the key areas that Roger presented, and I would also like to ask Stephen to join us. We are going to focus specifically on North America, and it was pretty clear during our last capital markets day, the market share ambition that we have in North America, 25% combined Mack Trucks and Volvo Trucks. As Martin said, it has been a fairly challenging market out there. With a finger on the pulse, where are we, Stephen? Thank you so much, Roger. thank you so much roger Crystal clear as always. crystal clear as always Why don't you join me over here? why don't you join me over here We are going to dig a little deeper into some of the key areas that Roger presented, and I would also like to ask Stephen to join us. we are going to dig a little deeper into some of the key areas that roger presented and i would also like to ask stephen to join us We are going to focus specifically on North America, and it was pretty clear during our last capital markets day, the market share ambition that we have in North America, 25% combined Mack Trucks and Volvo Trucks. we are going to focus specifically on north america and it was pretty clear during our last capital markets day the market share ambition that we have in north america 25% combined mack trucks and volvo trucks As Martin said, it has been a fairly challenging market out there. as martin said it has been a fairly challenging market out there With a finger on the pulse, where are we, Stephen? with a finger on the pulse where are we stephen

Speaker 20: Well, again, if I go back 18 months ago and we look at our heavy-duty market share for Mack Trucks, we were running about 6.5%-6.7% share for about three years in a row, really driven by constraints in the supply channel and also some capacity issues. I'm glad to say we worked extremely hard as an organization to solve those issues. If I look at 2025 results, we ended up at 8.7% heavy-duty market share. More importantly, if you look at the last half of the year, we ended up at 9.3% market share. 6.7%, last half of the year in 2025, 9.3%, and we continue to see good momentum for market share. This is driven primarily from just recapturing our business on the vocational side. Well, again, if I go back 18 months ago and we look at our heavy-duty market share for Mack Trucks, we were running about 6.5%- 6.7% share for about three years in a row, really driven by constraints in the supply channel and also some capacity issues. well again if i go back 18 months ago and we look at our heavy-duty market share for mack trucks we were running about 6.5%- 6.7% share for about three years in a row really driven by constraints in the supply channel and also some capacity issues I'm glad to say we worked extremely hard as an organization to solve those issues. i'm glad to say we worked extremely hard as an organization to solve those issues If I look at 2025 results, we ended up at 8.7% heavy-duty market share. if i look at 2025 results we ended up at 8.7% heavy-duty market share More importantly, if you look at the last half of the year, we ended up at 9.3% market share. 6.7%, last half of the year in 2025, 9.3%, and we continue to see good momentum for market share. more importantly if you look at the last half of the year we ended up at 9.3% market share 6.7% last half of the year in 2025 9.3% and we continue to see good momentum for market share This is driven primarily from just recapturing our business on the vocational side. this is driven primarily from just recapturing our business on the vocational side

Speaker 11: Mm. That's a good start. Roger? Mm. mm That's a good start. that's a good start Roger? roger

Speaker 19: No, we see where we are, where we are after May 2026, and we are taking the steps in the right direction. It's important that we take steps, and then growing shares, and then profitability at the same time. As Stephen were into then, that we are doing it together in a good way. We are building ourselves stronger. We are rolling out now the products. We are building the network and then capabilities of people as well to handle the higher volume that we are planning for. No, we see where we are, where we are after May 2026, and we are taking the steps in the right direction. no we see where we are where we are after may 2026 and we are taking the steps in the right direction It's important that we take steps, and then growing shares, and then profitability at the same time. it's important that we take steps and then growing shares and then profitability at the same time As Stephen were into then, that we are doing it together in a good way. as stephen were into then that we are doing it together in a good way We are building ourselves stronger. we are building ourselves stronger We are rolling out now the products. we are rolling out now the products We are building the network and then capabilities of people as well to handle the higher volume that we are planning for. we are building the network and then capabilities of people as well to handle the higher volume that we are planning for

Speaker 11: If we go a tiny bit deeper, can you share what we're doing specifically to gain more market shares? If we go a tiny bit deeper, can you share what we're doing specifically to gain more market shares? if we go a tiny bit deeper can you share what we're doing specifically to gain more market shares

Speaker 19: As I said in my speech here as well, it's important that we are conquesting new customers. We need more customers to gain market share. We cannot build this with the customers that we have today because we need to swim in a bigger lake, so to say. Conquesting customers, it's super important that we have the whole network with us to do that. To do that, we need to have more feet on the streets, more salespeople to do it. Then when a VECV population is growing, we need to have more technicians. We need to build out a network to cope with the higher VECV population and to grow our volumes on the market share. As I said in my speech here as well, it's important that we are conquesting new customers. as i said in my speech here as well it's important that we are conquesting new customers We need more customers to gain market share. we need more customers to gain market share We cannot build this with the customers that we have today because we need to swim in a bigger lake, so to say. we cannot build this with the customers that we have today because we need to swim in a bigger lake so to say Conquesting customers, it's super important that we have the whole network with us to do that. conquesting customers it's super important that we have the whole network with us to do that To do that, we need to have more feet on the streets, more salespeople to do it. to do that we need to have more feet on the streets more salespeople to do it Then when a VECV population is growing, we need to have more technicians. then when a vecv population is growing we need to have more technicians We need to build out a network to cope with the higher VECV population and to grow our volumes on the market share. we need to build out a network to cope with the higher vecv population and to grow our volumes on the market share

Speaker 11: Stephen? Stephen? stephen

Speaker 20: I think I said we've got the core business going in the right direction, but there's this long-haul segment that represents 43% of the heavy duty industry, in the U.S., Canadian market, and we've not tapped that yet. The good news is, with the launch of our Mack Pioneer and our all-new Mack Anthem last year, we now have the truck to do this. This is leading technology, 11% fuel economy, ride and drive and comfort are incredible, and the feedback we have from our customers shows that this is a truck that's gonna help us recapture our fair share of that long-haul business. Super excited about where we're going. I think I said we've got the core business going in the right direction, but there's this long-haul segment that represents 43% of the heavy duty industry, in the U.S., Canadian market, and we've not tapped that yet. i think i said we've got the core business going in the right direction but there's this long-haul segment that represents 43% of the heavy duty industry in the u.s canadian market and we've not tapped that yet The good news is, with the launch of our Mack Pioneer and our all-new Mack Anthem last year, we now have the truck to do this. the good news is with the launch of our mack pioneer and our all-new mack anthem last year we now have the truck to do this This is leading technology, 11% fuel economy, ride and drive and comfort are incredible, and the feedback we have from our customers shows that this is a truck that's gonna help us recapture our fair share of that long-haul business. this is leading technology 11% fuel economy ride and drive and comfort are incredible and the feedback we have from our customers shows that this is a truck that's gonna help us recapture our fair share of that long-haul business Super excited about where we're going. super excited about where we're going the long-haul truck. the long-haul truck. the long-haul truck

Speaker 11: When we were in New River Valley, we showed a photograph of a piece of land in Monterrey, Mexico, where we planned to build a new plant for both Mack and- When we were in New River Valley, we showed a photograph of a piece of land in Monterrey, Mexico, where we planned to build a new plant for both Mack and- when we were in new river valley we showed a photograph of a piece of land in monterrey mexico where we planned to build a new plant for both mack and-

Speaker 20: Yeah Yeah yeah

Speaker 11: Volvo Trucks. Stephen, 18 months later, what does it look like today? Volvo Trucks. volvo trucks Stephen, 18 months later, what does it look like today? stephen 18 months later what does it look like today

Speaker 20: I was there 18 months ago with Jens and the team. Wow, what a change. The fact that we've been able to greenfield a brand-new plant, building trucks as we speak, and do this on time, on budget, just remarkable, and it just shows the dedication and the passion for our team of delivering this project, which will lead to higher truck sales for both brands in North America. I was there 18 months ago with Jens and the team. i was there 18 months ago with jens and the team Wow, what a change. wow what a change The fact that we've been able to greenfield a brand-new plant, building trucks as we speak, and do this on time, on budget, just remarkable, and it just shows the dedication and the passion for our team of delivering this project, which will lead to higher truck sales for both brands in North America. the fact that we've been able to greenfield a brand-new plant building trucks as we speak and do this on time on budget just remarkable and it just shows the dedication and the passion for our team of delivering this project which will lead to higher truck sales for both brands in north america

Speaker 19: All right. As Stephen said, compliment to that one, it's not only the building. You see the building looks just amazing, here we will build a lot of trucks then for Mack and Volvo. It's also then to connect the whole supply chain, with suppliers building up that strength and then growing their business and growing then the volume. Jens will come back to that later, we need to then work end to end, from our suppliers out all the way to the customers and our dealers. That is what we are covering now to really make it happen to take the next step. All right. all right As Stephen said, compliment to that one, it's not only the building. as stephen said compliment to that one it's not only the building You see the building looks just amazing, here we will build a lot of trucks then for Mack and Volvo. you see the building looks just amazing here we will build a lot of trucks then for mack and volvo It's also then to connect the whole supply chain, with suppliers building up that strength and then growing their business and growing then the volume. it's also then to connect the whole supply chain with suppliers building up that strength and then growing their business and growing then the volume Jens will come back to that later, we need to then work end to end, from our suppliers out all the way to the customers and our dealers. jens will come back to that later we need to then work end to end from our suppliers out all the way to the customers and our dealers That is what we are covering now to really make it happen to take the next step. that is what we are covering now to really make it happen to take the next step

Speaker 11: Stephen, Roger, you said it in your speech, another key area is obviously distribution. Stephen, Roger, you said it in your speech, another key area is obviously distribution. stephen roger you said it in your speech another key area is obviously distribution

Speaker 20: Super important in North America. We've seen a reduction of the ownership, which is important because we have big, strong dealers. We're now about 85 dealers, about 485 locations. These dealers have invested. They continue to invest not only in facilities, but in people, in technology, in inventory, and they are passionate about growing the business. Super important in North America. super important in north america We've seen a reduction of the ownership, which is important because we have big, strong dealers. we've seen a reduction of the ownership which is important because we have big strong dealers We're now about 85 dealers, about 485 locations. we're now about 85 dealers about 485 locations These dealers have invested. these dealers have invested They continue to invest not only in facilities, but in people, in technology, in inventory, and they are passionate about growing the business. they continue to invest not only in facilities but in people in technology in inventory and they are passionate about growing the business

Speaker 19: What we are doing as well, we are having a detailed way of working with the dealers, how we are following up the dealers, how we are then tracking then the performance, how we are tracking then that they're doing the investments, and then making the capabilities. It's not enough that we are building a factory. We need to get it out into the distribution, we need to then get the support of the customers. What we are doing as well, we are having a detailed way of working with the dealers, how we are following up the dealers, how we are then tracking then the performance, how we are tracking then that they're doing the investments, and then making the capabilities. what we are doing as well we are having a detailed way of working with the dealers how we are following up the dealers how we are then tracking then the performance how we are tracking then that they're doing the investments and then making the capabilities It's not enough that we are building a factory. it's not enough that we are building a factory We need to get it out into the distribution, we need to then get the support of the customers. we need to get it out into the distribution we need to then get the support of the customers

Speaker 11: The building blocks are in place. It's all about execution. Thank you for now, Roger. You will be joining us for the Q&A later. The building blocks are in place. the building blocks are in place It's all about execution. it's all about execution Thank you for now, Roger. thank you for now roger You will be joining us for the Q&A later. you will be joining us for the q&a later

Speaker 19: Thank you. Thank you. thank you

Speaker 11: For you, Stephen, it is time to go a little deeper, looking at how Mack Trucks is driving forward to reach our targets. Please. For you, Stephen, it is time to go a little deeper, looking at how Mack Trucks is driving forward to reach our targets. for you stephen it is time to go a little deeper looking at how mack trucks is driving forward to reach our targets Please. please

Speaker 20: Super. Thank you. Good morning, everyone. Super happy to be here, in Eskilstuna. Just six years, I had the opportunity to be part of Volvo Construction Equipment, so it's good to come back to the headquarters here. Today, want to talk about Mack Trucks. I'm really excited to give a direction on where we're going, what's happening, and what outcomes are we starting to expect. In North America, really have four areas, or for Mack Trucks, we have four areas we're focused on. U.S. and Canada. That is our biggest opportunity. We also have our export market, which I'll deep dive a little bit here in a few moments. We have an Australian business, which is our commercial sales organization, leveraging the Australian dealers that we have access to, and we also have our production in Brisbane. Super. super Thank you. thank you Good morning, everyone. good morning everyone Super happy to be here, in Eskilstuna. super happy to be here in eskilstuna Just six years, I had the opportunity to be part of Volvo Construction Equipment, so it's good to come back to the headquarters here. just six years i had the opportunity to be part of volvo construction equipment so it's good to come back to the headquarters here Today, want to talk about Mack Trucks. today want to talk about mack trucks I'm really excited to give a direction on where we're going, what's happening, and what outcomes are we starting to expect. i'm really excited to give a direction on where we're going what's happening and what outcomes are we starting to expect In North America, really have four areas, or for Mack Trucks, we have four areas we're focused on. in north america really have four areas or for mack trucks we have four areas we're focused on U.S. and Canada. u.s and canada That is our biggest opportunity. that is our biggest opportunity We also have our export market, which I'll deep dive a little bit here in a few moments. we also have our export market which i'll deep dive a little bit here in a few moments We have an Australian business, which is our commercial sales organization, leveraging the Australian dealers that we have access to, and we also have our production in Brisbane. we have an australian business which is our commercial sales organization leveraging the australian dealers that we have access to and we also have our production in brisbane A really good opportunity for Mack to continue to grow in Australia. Our last opportunity is Mack Defense. Today it is a fairly small operation, but we have been building up because the Department of Defense now has three major projects that they will be bidding on, and we will have a high potential to win some of these business. Our prototypes have gone extremely well. The feedback from the Department of Defense is that we are doing what we need to have the right product, and we are looking to bid these out in the next couple of years. A really good opportunity for Mack to continue to grow in Australia. a really good opportunity for mack to continue to grow in australia Our last opportunity is Mack Defense. our last opportunity is mack defense Today it is a fairly small operation, but we have been building up because the Department of Defense now has three major projects that they will be bidding on, and we will have a high potential to win some of these business. today it is a fairly small operation but we have been building up because the department of defense now has three major projects that they will be bidding on and we will have a high potential to win some of these business Our prototypes have gone extremely well. our prototypes have gone extremely well The feedback from the Department of Defense is that we are doing what we need to have the right product, and we are looking to bid these out in the next couple of years. the feedback from the department of defense is that we are doing what we need to have the right product and we are looking to bid these out in the next couple of years These could be 2,000 trucks a year over a five-year period, up to a 10-year period, lots of opportunity for Mack to take advantage of our commercial Mack Granite and build out a military product. I would also say that we see starting to see an improvement, and I think Roger talked about this in our order intake. The first quarter was very soft on an annualized basis. It is about 170,000 truck heavy-duty market. That is extremely soft. We are seeing improvement in order intake. We are seeing a small pre-buy, and what I am happy to see is that a large percentage of our orders are sold orders, meaning that we actually have names tied to those accounts. Our dealers are also stocking up for those customers who have not made their mind up to purchase in anticipation of, again, stronger sales. Great feedback from our Mack Pioneer, as I said earlier. These could be 2,000 trucks a year over a five -year period, up to a 10-year period, lots of opportunity for Mack to take advantage of our commercial Mack Granite and build out a military product. I would also say that we see starting to see an improvement, and I think Roger talked about this in our order intake. these could be 2,000 trucks a year over a five -year period up to a 10-year period lots of opportunity for mack to take advantage of our commercial mack granite and build out a military product. i would also say that we see starting to see an improvement and i think roger talked about this in our order intake The first quarter was very soft on an annualized basis. the first quarter was very soft on an annualized basis It is about 170,000 truck heavy-duty market. it is about 170,000 truck heavy-duty market That is extremely soft. that is extremely soft We are seeing improvement in order intake. we are seeing improvement in order intake We are seeing a small pre-buy, and what I am happy to see is that a large percentage of our orders are sold orders, meaning that we actually have names tied to those accounts. we are seeing a small pre-buy and what i am happy to see is that a large percentage of our orders are sold orders meaning that we actually have names tied to those accounts Our dealers are also stocking up for those customers who have not made their mind up to purchase in anticipation of, again, stronger sales. our dealers are also stocking up for those customers who have not made their mind up to purchase in anticipation of again stronger sales Great feedback from our Mack Pioneer, as I said earlier. great feedback from our mack pioneer as i said earlier One bit of note, 45% of our sales are coming from conquest customers. For me, that is a really good indication that we are going to hit it out of the park with our Mack Pioneer and our Mack Anthem. As I said, the feedback has been super good, 11% better fuel economy, much better ride and drive, and a much more comfortable cab leading to what we think is the standard in the industry. Also, we launched, in Las Vegas Motor Speedway a couple of months back, our vocational lineup, a renewal of our Mack Granite, which is a key core product for us, and also the launch of our Mack Keystone product, which is both an on and off highway tractor, added to our existing portfolio. Again, more to come, but we are very excited about where we are in the U.S. and Canada for that market. One bit of note, 45% of our sales are coming from conquest customers. one bit of note 45% of our sales are coming from conquest customers For me, that is a really good indication that we are going to hit it out of the park with our Mack Pioneer and our Mack Anthem. for me that is a really good indication that we are going to hit it out of the park with our mack pioneer and our mack anthem As I said, the feedback has been super good, 11% better fuel economy, much better ride and drive, and a much more comfortable cab leading to what we think is the standard in the industry. as i said the feedback has been super good 11% better fuel economy much better ride and drive and a much more comfortable cab leading to what we think is the standard in the industry Also, we launched, in Las Vegas Motor Speedway a couple of months back, our vocational lineup, a renewal of our Mack Granite, which is a key core product for us, and also the launch of our Mack Keystone product, which is both an on and off highway tractor, added to our existing portfolio. also we launched in las vegas motor speedway a couple of months back our vocational lineup a renewal of our mack granite which is a key core product for us and also the launch of our mack keystone product which is both an on and off highway tractor added to our existing portfolio Again, more to come, but we are very excited about where we are in the U.S. and Canada for that market. again more to come but we are very excited about where we are in the u.s and canada for that market Now I would like to move over to another slide and talk about where we are from a total market. If we look here, you can see 28% of our market is the vocational side, 29% is the regional haul side, and the largest being the long haul segment at 43%. You will see some good growth already in our vocational segment as we recovered lost sales and you can see 25 moving from 11.5 to 13.7. We continue to see good progress here, and again, quite a good order board going into next year. On the regional haul side, again, also improvement as we started to improve our supply base, going from a 7%-8%-11% last year, and again, good momentum going into this year, and into next year. Extremely important for us is the long haul segment. Now I would like to move over to another slide and talk about where we are from a total market. now i would like to move over to another slide and talk about where we are from a total market If we look here, you can see 28% of our market is the vocational side, 29% is the regional haul side, and the largest being the long haul segment at 43%. if we look here you can see 28% of our market is the vocational side 29% is the regional haul side and the largest being the long haul segment at 43% You will see some good growth already in our vocational segment as we recovered lost sales and you can see 25 moving from 11.5 to 13.7. you will see some good growth already in our vocational segment as we recovered lost sales and you can see 25 moving from 11.5 to 13.7 We continue to see good progress here, and again, quite a good order board going into next year. we continue to see good progress here and again quite a good order board going into next year On the regional haul side, again, also improvement as we started to improve our supply base, going from a 7%- 8%- 11% last year, and again, good momentum going into this year, and into next year. on the regional haul side again also improvement as we started to improve our supply base going from a 7%- 8%- 11% last year and again good momentum going into this year and into next year Extremely important for us is the long haul segment. extremely important for us is the long haul segment You can see even in the best of times, a 2.5% market share. This is our opportunity to expand, again, 43% of the market to new products that we feel will help us reach this, in the matter of a couple of years. Lastly, we'll move to the export market. This is an area that we're really excited to return to. We used to have a very strong presence when it came to the export market. We've selected about 18 countries that we're really focused on, but if we were to pinpoint, there's three markets for Mack that are super critical. The first is Mexico. This is about a 25,000 truck market. We now have Mexican trucks built for Mexican customers, and this will be a game changer for Mack. Instead of exporting from the U.S., we'll now have local trucks for local customers. You can see even in the best of times, a 2.5% market share. you can see even in the best of times a 2.5% market share This is our opportunity to expand, again, 43% of the market to new products that we feel will help us reach this, in the matter of a couple of years. this is our opportunity to expand again 43% of the market to new products that we feel will help us reach this in the matter of a couple of years Lastly, we'll move to the export market. lastly we'll move to the export market This is an area that we're really excited to return to. this is an area that we're really excited to return to We used to have a very strong presence when it came to the export market. we used to have a very strong presence when it came to the export market We've selected about 18 countries that we're really focused on, but if we were to pinpoint, there's three markets for Mack that are super critical. we've selected about 18 countries that we're really focused on but if we were to pinpoint there's three markets for mack that are super critical The first is Mexico. the first is mexico This is about a 25,000 truck market. this is about a 25,000 truck market We now have Mexican trucks built for Mexican customers, and this will be a game changer for Mack. we now have mexican trucks built for mexican customers and this will be a game changer for mack Instead of exporting from the U.S., we'll now have local trucks for local customers. instead of exporting from the u.s we'll now have local trucks for local customers Of course, we'll also be able to export those products from Mexico into Latin America. When I look at the other two countries that we're really focused on, it's Colombia and Chile. These are really good, mature markets, where you have strong fleets that are investing heavily in new technologies, sustainable technologies. Again, we feel like we're now at the right point in time to launch our product going into Mexico that will have both EU5 and EU7 technology to meet the emissions level. Again, super excited. With that, Kina, I'll turn it back over to you and, again, thanks for your time. Of course, we'll also be able to export those products from Mexico into Latin America. of course we'll also be able to export those products from mexico into latin america When I look at the other two countries that we're really focused on, it's Colombia and Chile. when i look at the other two countries that we're really focused on it's colombia and chile These are really good, mature markets, where you have strong fleets that are investing heavily in new technologies, sustainable technologies. these are really good mature markets where you have strong fleets that are investing heavily in new technologies sustainable technologies Again, we feel like we're now at the right point in time to launch our product going into Mexico that will have both EU5 and EU7 technology to meet the emissions level. again we feel like we're now at the right point in time to launch our product going into mexico that will have both eu5 and eu7 technology to meet the emissions level Again, super excited. again super excited With that, Kina, I'll turn it back over to you and, again, thanks for your time. with that kina i'll turn it back over to you and again thanks for your time

Speaker 11: Thank you so much, Stephen. A lot is done. Thank you so much, Stephen. thank you so much stephen A lot is done. a lot is done

Speaker 20: Yeah Yeah yeah

Speaker 11: Still much to achieve. Listen, we communicated some time ago that you will actually be joining the next CMD, either from your porch or maybe the beach or. Still much to achieve. still much to achieve Listen, we communicated some time ago that you will actually be joining the next CMD, either from your porch or maybe the beach or. listen we communicated some time ago that you will actually be joining the next cmd either from your porch or maybe the beach or

Speaker 20: I'm picking the beach I'm picking the beach i'm picking the beach

Speaker 11: You're picking the beach. You're picking the beach. you're picking the beach

Speaker 20: The beach, yes. The beach, yes. the beach yes

Speaker 11: I was going to say the golf course. I was going to say the golf course. i was going to say the golf course

Speaker 20: Yes Yes yes

Speaker 11: You are picking the beach. You are picking the beach. you are picking the beach

Speaker 20: Again, after 30 years with a group, super successful to be a part of this amazing organization. I think Martin and the team have just done incredible jobs, and I couldn't be more proud. We have an excellent leader coming on board, Wilson Lirmann. I've known Wilson for a number of years. He's led the Brazilian market for a number of years, run one of the largest distributors. I'm super excited to work with him in the transition, and I know he will continue to drive the Mack portfolio even further down the road. Thank you very much. Again, after 30 years with a group, super successful to be a part of this amazing organization. again after 30 years with a group super successful to be a part of this amazing organization I think Martin and the team have just done incredible jobs, and I couldn't be more proud. i think martin and the team have just done incredible jobs and i couldn't be more proud We have an excellent leader coming on board, Wilson Lirmann. we have an excellent leader coming on board wilson lirmann I've known Wilson for a number of years. i've known wilson for a number of years He's led the Brazilian market for a number of years, run one of the largest distributors. he's led the brazilian market for a number of years run one of the largest distributors I'm super excited to work with him in the transition, and I know he will continue to drive the Mack portfolio even further down the road. i'm super excited to work with him in the transition and i know he will continue to drive the mack portfolio even further down the road Thank you very much. thank you very much

Speaker 11: Thank you, Stephen. I have a question for you in the audience. Has anyone been in San Francisco lately? Hands up. Melker, you're not Oh, there we go. Did you drive a driverless taxi? You did. In San Francisco or in the other 15 cities in the world where you can find autonomous taxi drives, autonomous solutions are really happening, and we are now going to spend some time looking at how autonomous is exploding in our business. To help us with that is, of course, Nils. Thank you, Stephen. thank you stephen I have a question for you in the audience. i have a question for you in the audience Has anyone been in San Francisco lately? has anyone been in san francisco lately Hands up. hands up Melker, you're not Oh, there we go. melker you're not oh there we go Did you drive a driverless taxi? did you drive a driverless taxi You did. you did In San Francisco or in the other 15 cities in the world where you can find autonomous taxi drives, autonomous solutions are really happening, and we are now going to spend some time looking at how autonomous is exploding in our business. in san francisco or in the other 15 cities in the world where you can find autonomous taxi drives autonomous solutions are really happening and we are now going to spend some time looking at how autonomous is exploding in our business To help us with that is, of course, Nils. to help us with that is of course nils

Speaker 18: Hey, Kina. Hello. Hey, Kina. hey kina Hello. hello

Speaker 11: Hey, my friend. Since we last met, a lot has happened in the autonomous space. Hey, my friend. hey my friend Since we last met, a lot has happened in the autonomous space. since we last met a lot has happened in the autonomous space

Speaker 18: Sure Sure sure

Speaker 11: I was listening to the Uber CEO some time ago, and he was saying that in 15, 20 years, the vast majority of Uber rides will be driverless. I was listening to the Uber CEO some time ago, and he was saying that in 15, 20 years, the vast majority of Uber rides will be driverless. i was listening to the uber ceo some time ago and he was saying that in 15 20 years the vast majority of uber rides will be driverless

Speaker 18: Yeah, absolutely. I think the robotaxis are actually paving the way. They're paving the way for autonomous trucking. I believe actually that the deployment curve for autonomous trucking will be steeper, and it will go faster. BCG recently said that by 2035, 30% of all truck sales will be autonomous trucks. We have something ahead of us. Yeah, absolutely. yeah absolutely I think the robotaxis are actually paving the way. i think the robotaxis are actually paving the way They're paving the way for autonomous trucking. they're paving the way for autonomous trucking I believe actually that the deployment curve for autonomous trucking will be steeper, and it will go faster. i believe actually that the deployment curve for autonomous trucking will be steeper and it will go faster BCG recently said that by 2035, 30% of all truck sales will be autonomous trucks. bcg recently said that by 2035 30% of all truck sales will be autonomous trucks We have something ahead of us. we have something ahead of us

Speaker 11: Mm-hmm. That's a great opportunity, and I'll leave the stage to you to explain how we are going to lead the market, please. Mm-hmm. mm-hmm That's a great opportunity, and I'll leave the stage to you to explain how we are going to lead the market, please. that's a great opportunity and i'll leave the stage to you to explain how we are going to lead the market please

Speaker 18: Thanks a lot. Martin has said it already. The global economy really relies on transportation. Transportation, in essence, is the backbone of our economy, but it is also the backbone of our modern society. Putting physical AI on the road through autonomous transport solutions, we are creating new growth potentials for our economies. By that physical AI turns into an AI which has a pulse and a purpose. It is the bridge between digital innovation and the physical movement of goods in our society. It is about sensing, thinking, acting with a level of precision that never gets tired, that never loses focus. It is about making split-second decisions, safety-critical decisions in a world which can be messy, in a world which can be unpredictable. We are putting physical AI to work right now, we are at the brink of making it happen. Thanks a lot. thanks a lot Martin has said it already. martin has said it already The global economy really relies on transportation. the global economy really relies on transportation Transportation, in essence, is the backbone of our economy, but it is also the backbone of our modern society. transportation in essence is the backbone of our economy but it is also the backbone of our modern society Putting physical AI on the road through autonomous transport solutions, we are creating new growth potentials for our economies. putting physical ai on the road through autonomous transport solutions we are creating new growth potentials for our economies By that physical AI turns into an AI which has a pulse and a purpose. by that physical ai turns into an ai which has a pulse and a purpose It is the bridge between digital innovation and the physical movement of goods in our society. it is the bridge between digital innovation and the physical movement of goods in our society It is about sensing, thinking, acting with a level of precision that never gets tired, that never loses focus. it is about sensing thinking acting with a level of precision that never gets tired that never loses focus It is about making split-second decisions, safety-critical decisions in a world which can be messy, in a world which can be unpredictable. it is about making split-second decisions safety-critical decisions in a world which can be messy in a world which can be unpredictable We are putting physical AI to work right now, we are at the brink of making it happen. we are putting physical ai to work right now we are at the brink of making it happen We will start introducing autonomous transport solutions to the U.S. market. It is a large addressable market. 70% of all goods are already today transported by trucks in the U.S. Last year alone, the market accounted for $900 billion in revenues. It is a growing market. Mass customization, urbanization, online purchase pattern, that are driving the growth, it is structural growth. It is a growth which is meeting a market which already today suffers from legacy problems, from bottlenecks. It is a market which is set for disruption. We all know about driver shortage. Already 80,000 driver positions are not filled today. It is forecast to double by the end of the decade. The shortage of drivers, of course, that leads to high driver costs. A human truck driver can only operate 10 to 11 hours a day. Our autonomous truck is always available. We will start introducing autonomous transport solutions to the U.S. market. we will start introducing autonomous transport solutions to the u.s market It is a large addressable market. 70% of all goods are already today transported by trucks in the U.S. it is a large addressable market 70% of all goods are already today transported by trucks in the u.s Last year alone, the market accounted for $900 billion in revenues. last year alone the market accounted for $900 billion in revenues It is a growing market. it is a growing market Mass customization, urbanization, online purchase pattern, that are driving the growth, it is structural growth. mass customization urbanization online purchase pattern that are driving the growth it is structural growth It is a growth which is meeting a market which already today suffers from legacy problems, from bottlenecks. it is a growth which is meeting a market which already today suffers from legacy problems from bottlenecks It is a market which is set for disruption. it is a market which is set for disruption We all know about driver shortage. we all know about driver shortage Already 80,000 driver positions are not filled today. already 80,000 driver positions are not filled today It is forecast to double by the end of the decade. it is forecast to double by the end of the decade The shortage of drivers, of course, that leads to high driver costs. the shortage of drivers of course that leads to high driver costs A human truck driver can only operate 10 to 11 hours a day. a human truck driver can only operate 10 to 11 hours a day Our autonomous truck is always available. our autonomous truck is always available We will add significant transport capacity. Delivery liability is the other well-known industry problem. Our autonomous truck doesn't need a coffee break, doesn't need a lunch break. Our autonomous truck is always available. Our autonomous truck is not limited by legal maximum driving hours. We are enabling predictability of delivery time, we are enabling constant live tracking of the goods. Road safety, today very much impacted by driver fatigue, by the reaction time of the driver, the overall human error. Our autonomous truck is never tired. It is always awake. It sees with modern sensors much further than the human eye can see, it has a constant 360-degree awareness of its environment at any second of the day. That contributes to road safety, it also supports fuel efficiency, it will help driving insurance costs down. We do more than just addressing the pain points. We will add significant transport capacity. we will add significant transport capacity Delivery liability is the other well-known industry problem. delivery liability is the other well-known industry problem Our autonomous truck doesn't need a coffee break, doesn't need a lunch break. our autonomous truck doesn't need a coffee break doesn't need a lunch break Our autonomous truck is always available. our autonomous truck is always available Our autonomous truck is not limited by legal maximum driving hours. our autonomous truck is not limited by legal maximum driving hours We are enabling predictability of delivery time, we are enabling constant live tracking of the goods. we are enabling predictability of delivery time we are enabling constant live tracking of the goods Road safety, today very much impacted by driver fatigue, by the reaction time of the driver, the overall human error. road safety today very much impacted by driver fatigue by the reaction time of the driver the overall human error Our autonomous truck is never tired. our autonomous truck is never tired It is always awake. it is always awake It sees with modern sensors much further than the human eye can see, it has a constant 360-degree awareness of its environment at any second of the day. it sees with modern sensors much further than the human eye can see it has a constant 360-degree awareness of its environment at any second of the day That contributes to road safety, it also supports fuel efficiency, it will help driving insurance costs down. that contributes to road safety it also supports fuel efficiency it will help driving insurance costs down We do more than just addressing the pain points. we do more than just addressing the pain points It is about creating new value. That is what Mats Backman said. With our autonomous trucks, we will double the asset utilization. I said it already. A truck today can operate 10 to 11 hours. We can double that with our autonomous truck, 100% more productive. That step changes the economics of trucking. It is a paradigm shift, you cannot afford not to be part. We are also enabling fleets to grow. If you are in the U.S. today and you run a large fleet, you basically have two core competencies, the transportation business and hiring of truck drivers. Because the turnover ratio of truck drivers in the U.S. is 90% annually. We are fixing that problem with autonomous trucking. Now we have faster deliveries. Our trucks can go further. They can drive longer. By that, we are taking down delivery time. We do longer distances in less time. It is about creating new value. it is about creating new value That is what Mats Backman said. that is what mats backman said With our autonomous trucks, we will double the asset utilization. with our autonomous trucks we will double the asset utilization I said it already. i said it already A truck today can operate 10 to 11 hours. a truck today can operate 10 to 11 hours We can double that with our autonomous truck, 100% more productive. we can double that with our autonomous truck 100% more productive That step changes the economics of trucking. that step changes the economics of trucking It is a paradigm shift, you cannot afford not to be part. it is a paradigm shift you cannot afford not to be part We are also enabling fleets to grow. we are also enabling fleets to grow If you are in the U.S. today and you run a large fleet, you basically have two core competencies, the transportation business and hiring of truck drivers. if you are in the u.s today and you run a large fleet you basically have two core competencies the transportation business and hiring of truck drivers Because the turnover ratio of truck drivers in the U.S. is 90% annually. because the turnover ratio of truck drivers in the u.s is 90% annually We are fixing that problem with autonomous trucking. we are fixing that problem with autonomous trucking Now we have faster deliveries. now we have faster deliveries Our trucks can go further. our trucks can go further They can drive longer. they can drive longer By that, we are taking down delivery time. by that we are taking down delivery time We do longer distances in less time. we do longer distances in less time The result is a scalable, capital-efficient, higher margin transport model with a structural long-term demand from shippers, from carriers, from 3PLs, and from transport platforms. The industry forecasts that by the end of this decade, by end of 2030, the installed base of autonomous trucks will be 25,000. Only five years later, that number goes up to 220,000. In other words, in less than 10 years, one out of 10 trucks you will see on a U.S. highway will be driverless. That is a consequence of the step change in trucking economics. You cannot afford not to be part. Autonomous trucking is more than just replacing the human driver with a virtual driver. Autonomous trucking is a new transport system, and each transport system has its own ecosystem. We've built exactly that, and we call it Autono-Freight. Because the business model matters. The result is a scalable, capital-efficient, higher margin transport model with a structural long-term demand from shippers, from carriers, from 3PLs, and from transport platforms. the result is a scalable capital-efficient higher margin transport model with a structural long-term demand from shippers from carriers from 3pls and from transport platforms The industry forecasts that by the end of this decade, by end of 2030, the installed base of autonomous trucks will be 25,000. the industry forecasts that by the end of this decade by end of 2030 the installed base of autonomous trucks will be 25,000 Only five years later, that number goes up to 220,000. only five years later that number goes up to 220,000 In other words, in less than 10 years, one out of 10 trucks you will see on a U.S. highway will be driverless. in other words in less than 10 years one out of 10 trucks you will see on a u.s highway will be driverless That is a consequence of the step change in trucking economics. that is a consequence of the step change in trucking economics You cannot afford not to be part. you cannot afford not to be part Autonomous trucking is more than just replacing the human driver with a virtual driver. autonomous trucking is more than just replacing the human driver with a virtual driver Autonomous trucking is a new transport system, and each transport system has its own ecosystem. autonomous trucking is a new transport system and each transport system has its own ecosystem We've built exactly that, and we call it Autono-Freight. we've built exactly that and we call it autono-freight Because the business model matters. because the business model matters It is a key question. Transport as a service, our way to go to market, will unlock the large-scale adoption of autonomous trucking because we remove the main barriers for market entry. By offering autonomy as a fully managed service, we lower the upfront capital requirement, and we will shift the operational, the safety, the regulatory responsibility away from the customer. We simplify the adoption through a single partner model. If you are a customer, you don't deal with an OEM, you don't deal with a virtual driver company, you don't deal with a dealer. You don't try to find a terminal operator. You don't need to hire operators. You don't try to chase insurance for an autonomous truck. You have one solution. This will drive adoption. With our approach, we are unique. What we've built, our solution, we call it Autono-Freight. It is a key question. it is a key question Transport as a service, our way to go to market, will unlock the large-scale adoption of autonomous trucking because we remove the main barriers for market entry. transport as a service our way to go to market will unlock the large-scale adoption of autonomous trucking because we remove the main barriers for market entry By offering autonomy as a fully managed service, we lower the upfront capital requirement, and we will shift the operational, the safety, the regulatory responsibility away from the customer. We simplify the adoption through a single partner model. by offering autonomy as a fully managed service we lower the upfront capital requirement and we will shift the operational the safety the regulatory responsibility away from the customer. we simplify the adoption through a single partner model If you are a customer, you don't deal with an OEM, you don't deal with a virtual driver company, you don't deal with a dealer. if you are a customer you don't deal with an oem you don't deal with a virtual driver company you don't deal with a dealer You don't try to find a terminal operator. you don't try to find a terminal operator You don't need to hire operators. you don't need to hire operators You don't try to chase insurance for an autonomous truck. you don't try to chase insurance for an autonomous truck You have one solution. you have one solution This will drive adoption. this will drive adoption With our approach, we are unique. with our approach we are unique What we've built, our solution, we call it Autono-Freight. what we've built our solution we call it autono-freight It is difficult to replicate, and it gives us a competitive advantage. We have invested in this for a couple of years. We know what we're doing. We know this industry. Important is, we're good to go. Next year, Q1 2027, we will start operating. This is our driverless launch. In Q1 next year, we will have trucks on open roads without a human in the cab. We will introduce, during the year, autonomous trucking to more and more customers. By the end of Q4 next year, we'll have more than 300 trucks out on the road on the U.S. highway operating autonomously. 2028 and the years above, we will then utilize our strong position, and we will scale, and we will scale at industrial level. Let me summarize. We have a very large addressable market. We have a very strong value proposition. It is difficult to replicate, and it gives us a competitive advantage. it is difficult to replicate and it gives us a competitive advantage We have invested in this for a couple of years. we have invested in this for a couple of years We know what we're doing. we know what we're doing We know this industry. we know this industry Important is, we're good to go. important is we're good to go Next year, Q1 2027, we will start operating. next year q1 2027 we will start operating This is our driverless launch. this is our driverless launch In Q1 next year, we will have trucks on open roads without a human in the cab. in q1 next year we will have trucks on open roads without a human in the cab We will introduce, during the year, autonomous trucking to more and more customers. we will introduce during the year autonomous trucking to more and more customers By the end of Q4 next year, we'll have more than 300 trucks out on the road on the U.S. highway operating autonomously. 2028 and the years above, we will then utilize our strong position, and we will scale, and we will scale at industrial level. by the end of q4 next year we'll have more than 300 trucks out on the road on the u.s highway operating autonomously 2028 and the years above we will then utilize our strong position and we will scale and we will scale at industrial level Let me summarize. let me summarize We have a very large addressable market. we have a very large addressable market We have a very strong value proposition. we have a very strong value proposition With our solution, we will be 100% more productive. We will double the asset utilization. We have built Autono-Freight, our unique ecosystem, which is difficult to replicate, which gives us a competitive advantage. We are in this business almost 100 years. We know how to manufacture. We know how to industrialize. That enables me to say now that we are approaching our ambition to generate $3 billion US dollar revenues within five years. $3 billion US dollar revenues, which are having margins which are accretive to the group. Our agenda, our timeline, our value creation is clear. As a brand, we have very solid customer relations which we can nurture. As an OEM, we know how to industrialize, we know how to scale. Volvo, we are a first mover, and we are here to scale this business. This is what we've planned for from the very beginning. With our solution, we will be 100% more productive. with our solution we will be 100% more productive We will double the asset utilization. we will double the asset utilization We have built Autono-Freight, our unique ecosystem, which is difficult to replicate, which gives us a competitive advantage. we have built autono-freight our unique ecosystem which is difficult to replicate which gives us a competitive advantage We are in this business almost 100 years. we are in this business almost 100 years We know how to manufacture. we know how to manufacture We know how to industrialize. we know how to industrialize That enables me to say now that we are approaching our ambition to generate $3 billion US dollar revenues within five years. $3 billion US dollar revenues, which are having margins which are accretive to the group. that enables me to say now that we are approaching our ambition to generate $3 billion us dollar revenues within five years $3 billion us dollar revenues which are having margins which are accretive to the group Our agenda, our timeline, our value creation is clear. our agenda our timeline our value creation is clear As a brand, we have very solid customer relations which we can nurture. as a brand we have very solid customer relations which we can nurture As an OEM, we know how to industrialize, we know how to scale. as an oem we know how to industrialize we know how to scale Volvo, we are a first mover, and we are here to scale this business. volvo we are a first mover and we are here to scale this business This is what we've planned for from the very beginning. this is what we've planned for from the very beginning

Speaker 11: Thank you so much, Nils. That's very exciting. I have been standing behind my desk there listening, I'm kind of wondering, what's in it for me as a consumer? Thank you so much, Nils. thank you so much nils That's very exciting. that's very exciting I have been standing behind my desk there listening, I'm kind of wondering, what's in it for me as a consumer? i have been standing behind my desk there listening i'm kind of wondering what's in it for me as a consumer

Speaker 18: What's in it for you? What's in it for you? what's in it for you Yeah. Kina, not long ago, we were together in New York, right? You remember? Yeah. yeah Kina, not long ago, we were together in New York, right? kina not long ago we were together in new york right You remember? you remember If we would be today in New York, as it's season for strawberries, we actually come back to your answer question, San Francisco, California, that's where the majority of the strawberries in the U.S. are actually grown. There's a problem with the strawberries in the U.S. in the sense of that it takes four days to move them from California by truck to New York. If we would be today in New York, as it's season for strawberries, we actually come back to your answer question, San Francisco, California, that's where the majority of the strawberries in the U.S. are actually grown. if we would be today in new york as it's season for strawberries we actually come back to your answer question san francisco california that's where the majority of the strawberries in the u.s are actually grown There's a problem with the strawberries in the U.S. in the sense of that it takes four days to move them from California by truck to New York. there's a problem with the strawberries in the u.s in the sense of that it takes four days to move them from california by truck to new york If you pick a strawberry, the average lifetime is then five to seven days. Whatever you have on your plate then is not really fresh. If you pick a strawberry, the average lifetime is then five to seven days. if you pick a strawberry the average lifetime is then five to seven days Whatever you have on your plate then is not really fresh. whatever you have on your plate then is not really fresh The autonomous truck does it in two days. Kina, if I would offer you an autonomous strawberry, would you prefer that over a normal strawberry? The autonomous truck does it in two days. the autonomous truck does it in two days Kina, if I would offer you an autonomous strawberry, would you prefer that over a normal strawberry? kina if i would offer you an autonomous strawberry would you prefer that over a normal strawberry

Speaker 11: I would prefer going to New York and eat an autonomous strawberry, Nils, if I could choose. I would prefer going to New York and eat an autonomous strawberry, Nils, if I could choose. i would prefer going to new york and eat an autonomous strawberry nils if i could choose

Speaker 18: Thank you. Thank you. thank you

Speaker 11: Thank you. Thank you. thank you

Speaker 18: They smell very good. They smell very good. they smell very good

Speaker 11: No. Thank you so much, Nils. No. no Thank you so much, Nils. thank you so much nils

Speaker 18: Thank you. Thank you. thank you

Speaker 11: Thank you. He thought he could leave with the strawberries. I think actually I'll share them with the audience to get some energy. I give them to you. You can pass them around. Thank you. It is clear that the on-road segment is looking extremely strong, with great potential for resilience and growth. Now we're going to continue with another segment, adding a lot of value to society, that is urban logistics and people transportation. I'm sure that all of you have heard the term urbanization. It is estimated by the year 2050 that 70% of the world's population will be living in cities. That basically means that all population growth going forward will be urban, adding approximately 2.5 billion people to cities over the three coming decades. Thank you. thank you He thought he could leave with the strawberries. he thought he could leave with the strawberries I think actually I'll share them with the audience to get some energy. i think actually i'll share them with the audience to get some energy I give them to you. i give them to you You can pass them around. you can pass them around Thank you. thank you It is clear that the on-road segment is looking extremely strong, with great potential for resilience and growth. it is clear that the on-road segment is looking extremely strong with great potential for resilience and growth Now we're going to continue with another segment, adding a lot of value to society, that is urban logistics and people transportation. now we're going to continue with another segment adding a lot of value to society that is urban logistics and people transportation I'm sure that all of you have heard the term urbanization. i'm sure that all of you have heard the term urbanization It is estimated by the year 2050 that 70% of the world's population will be living in cities. it is estimated by the year 2050 that 70% of the world's population will be living in cities That basically means that all population growth going forward will be urban, adding approximately 2.5 billion people to cities over the three coming decades. that basically means that all population growth going forward will be urban adding approximately 2.5 billion people to cities over the three coming decades With this comes a lot of challenges, of course, but also for a company like us, a lot of opportunities. To discuss this segment, let me welcome Antoine and Anna. Anna, let me start with you. What are the drivers that makes this segment so special? With this comes a lot of challenges, of course, but also for a company like us, a lot of opportunities. with this comes a lot of challenges of course but also for a company like us a lot of opportunities To discuss this segment, let me welcome Antoine and Anna. to discuss this segment let me welcome antoine and anna Anna, let me start with you. anna let me start with you What are the drivers that makes this segment so special? what are the drivers that makes this segment so special

Speaker 4: As more people live and work in cities, there is this increasing demand for efficient and reliable and safe public transport to make this environment function. Here, our solution really matters. It's also very exciting in this segment because the transition to electric mobility is really happening now. Today, 40% of the buses that we sell to the city segment is electric, and by 2030, this will be 80% if we are successful. A lot of transformation happening here as we speak. As Martin also shared earlier, in addition to the positive climate impact and reduction of bad air pollution, these vehicles are quiet. So it opens up for new ways of city planning and also makes cities more pleasant and attractive to live in. As more people live and work in cities, there is this increasing demand for efficient and reliable and safe public transport to make this environment function. as more people live and work in cities there is this increasing demand for efficient and reliable and safe public transport to make this environment function Here, our solution really matters. here our solution really matters It's also very exciting in this segment because the transition to electric mobility is really happening now. it's also very exciting in this segment because the transition to electric mobility is really happening now Today, 40% of the buses that we sell to the city segment is electric, and by 2030, this will be 80% if we are successful. today 40% of the buses that we sell to the city segment is electric and by 2030 this will be 80% if we are successful A lot of transformation happening here as we speak. a lot of transformation happening here as we speak As Martin also shared earlier, in addition to the positive climate impact and reduction of bad air pollution, these vehicles are quiet. So it opens up for new ways of city planning and also makes cities more pleasant and attractive to live in. as martin also shared earlier in addition to the positive climate impact and reduction of bad air pollution these vehicles are quiet. so it opens up for new ways of city planning and also makes cities more pleasant and attractive to live in

Speaker 11: Mm-hmm. Do you see the same, Antoine? Mm-hmm. mm-hmm Do you see the same, Antoine? do you see the same antoine

Speaker 5: Anna, I see the same. I would say that this mega trend of urbanization is calling for an improved logistic system, primarily on the efficiency side, but as well on the electrification side. We see more and more electric vehicles running around the cities, and that's a faster-growing market. You said it, given the density of those urban agglomerations. If I take one example, as the light commercial vehicle business, which is where Renault Trucks is operating for medium and heavy vans, we see the market size today at around 1.5 million units, sizable in 2025, with an expected growth of about 10% by 2030. Anna, I see the same. anna i see the same I would say that this mega trend of urbanization is calling for an improved logistic system, primarily on the efficiency side, but as well on the electrification side. i would say that this mega trend of urbanization is calling for an improved logistic system primarily on the efficiency side but as well on the electrification side We see more and more electric vehicles running around the cities, and that's a faster-growing market. we see more and more electric vehicles running around the cities and that's a faster-growing market You said it, given the density of those urban agglomerations. you said it given the density of those urban agglomerations If I take one example, as the light commercial vehicle business, which is where Renault Trucks is operating for medium and heavy vans, we see the market size today at around 1.5 million units, sizable in 2025, with an expected growth of about 10% by 2030. if i take one example as the light commercial vehicle business which is where renault trucks is operating for medium and heavy vans we see the market size today at around 1.5 million units sizable in 2025 with an expected growth of about 10% by 2030 That's a fantastic opportunity we expect to grab as Renault Trucks. That's a fantastic opportunity we expect to grab as Renault Trucks. that's a fantastic opportunity we expect to grab as renault trucks

Speaker 11: I know that urban logistics is very exciting for you at Renault. Why is that? I know that urban logistics is very exciting for you at Renault. i know that urban logistics is very exciting for you at renault Why is that? why is that

Speaker 5: Because at Renault Trucks, really, urban logistics has been in the DNA of the company for more than 130 years. Because at Renault Trucks, really, urban logistics has been in the DNA of the company for more than 130 years. because at renault trucks really urban logistics has been in the dna of the company for more than 130 years When you look at our product range, Renault Trucks has the widest product range in the company and one of the widest in the industry in Europe. We are going from 2.8 tons with a small Traffic van to more than 50 tons with a heavy-duty truck. We are offering heavy-duty kind of service to our B2B customers. I would say our customers love it. Our dealers love it as well because that's a good complement to our offer. That's why we believe that Renault Trucks is very well prepared to address this growth market. When you look at our product range, Renault Trucks has the widest product range in the company and one of the widest in the industry in Europe. when you look at our product range renault trucks has the widest product range in the company and one of the widest in the industry in europe We are going from 2.8 tons with a small Traffic van to more than 50 tons with a heavy-duty truck. we are going from 2.8 tons with a small traffic van to more than 50 tons with a heavy-duty truck We are offering heavy-duty kind of service to our B2B customers. we are offering heavy-duty kind of service to our b2b customers I would say our customers love it. i would say our customers love it Our dealers love it as well because that's a good complement to our offer. our dealers love it as well because that's a good complement to our offer That's why we believe that Renault Trucks is very well prepared to address this growth market. that's why we believe that renault trucks is very well prepared to address this growth market

Speaker 11: Mm-hmm. Anna, turning to you. You have been on a fantastic journey during the last year, improving and creating resilience in your margins, moving from minus and now almost 10%. Mm-hmm. mm-hmm Anna, turning to you. anna turning to you You have been on a fantastic journey during the last year, improving and creating resilience in your margins, moving from minus and now almost 10%. you have been on a fantastic journey during the last year improving and creating resilience in your margins moving from minus and now almost 10% Very briefly, how did you achieve this? Very briefly, how did you achieve this? very briefly how did you achieve this

Speaker 4: Yes. We've been on this journey, as you said, we call it our performance journey, where we have focused on developing our business and setting a structure where we can deliver sustainable profit over time. I believe the past years now, we have really proven that our strategy is serving us well and that we have built resilience, we have built flexibility to maneuver various external headwinds while protecting and also improving our profitability. Today, Volvo Buses, we have a very solid coach business representing 70% of our total sales. We have a selective approach in the city bus segment, and in both segments, we are truly driving solution sales, so sale of products and services combined to support our customers with productivity, uptime, and safety. Yes. yes We've been on this journey, as you said, we call it our performance journey, where we have focused on developing our business and setting a structure where we can deliver sustainable profit over time. we've been on this journey as you said we call it our performance journey where we have focused on developing our business and setting a structure where we can deliver sustainable profit over time I believe the past years now, we have really proven that our strategy is serving us well and that we have built resilience, we have built flexibility to maneuver various external headwinds while protecting and also improving our profitability. i believe the past years now we have really proven that our strategy is serving us well and that we have built resilience we have built flexibility to maneuver various external headwinds while protecting and also improving our profitability Today, Volvo Buses, we have a very solid coach business representing 70% of our total sales. today volvo buses we have a very solid coach business representing 70% of our total sales We have a selective approach in the city bus segment, and in both segments, we are truly driving solution sales, so sale of products and services combined to support our customers with productivity, uptime, and safety. we have a selective approach in the city bus segment and in both segments we are truly driving solution sales so sale of products and services combined to support our customers with productivity uptime and safety Two years ago, we completed a structure change to our setup in Europe, where we moved from producing complete buses to focusing on chassis production and working with partners for the bus body production. This change of the model have resulted in lower break-even points and also increased volume flexibility. Two years ago, we completed a structure change to our setup in Europe, where we moved from producing complete buses to focusing on chassis production and working with partners for the bus body production. two years ago we completed a structure change to our setup in europe where we moved from producing complete buses to focusing on chassis production and working with partners for the bus body production This change of the model have resulted in lower break-even points and also increased volume flexibility. this change of the model have resulted in lower break-even points and also increased volume flexibility

Speaker 11: Now you have created this position of strength for yourself. How will you leverage it going forward, and where do you see growth opportunities? Now you have created this position of strength for yourself. now you have created this position of strength for yourself How will you leverage it going forward, and where do you see growth opportunities? how will you leverage it going forward and where do you see growth opportunities

Speaker 4: We will continue to focus on profitable growth. We will continue to leverage on our existing structure that is very much set for just profit and growth, and we are now operating from a position of strength. We have ambitions to grow both in the city and in the coach segment. In Europe, we are preparing for substantial growth, coming into our focus markets from low levels, but now with new product introduction, step by step, growing back. In North America, we have leading positions in the coach segments with more than 40% market share, both in Canada, in U.S., and in Mexico. Here, the primary focus is to keep those positions and continue to drive our service business. We will continue to focus on profitable growth. we will continue to focus on profitable growth We will continue to leverage on our existing structure that is very much set for just profit and growth, and we are now operating from a position of strength. we will continue to leverage on our existing structure that is very much set for just profit and growth and we are now operating from a position of strength We have ambitions to grow both in the city and in the coach segment. we have ambitions to grow both in the city and in the coach segment In Europe, we are preparing for substantial growth, coming into our focus markets from low levels, but now with new product introduction, step by step, growing back. in europe we are preparing for substantial growth coming into our focus markets from low levels but now with new product introduction step by step growing back In North America, we have leading positions in the coach segments with more than 40% market share, both in Canada, in U.S., and in Mexico. in north america we have leading positions in the coach segments with more than 40% market share both in canada in u.s and in mexico Here, the primary focus is to keep those positions and continue to drive our service business. here the primary focus is to keep those positions and continue to drive our service business In addition to that, we also have ambitions to grow our business together with our joint venture partner, Volvo Eicher Commercial Vehicles, and we will start this year with selected markets in Africa, coming in with new product offerings. A lot of things happening in our company. Coming back to the city bus segment that we were into here in the beginning, the shift to electric buses is happening as we speak, and here we meet fierce competition. Our focus is to continuously improve our product offers, so we can provide the best total solution to customers so that they, in turn, can enable sustainable and resilience public transport to citizens. In addition to that, we also have ambitions to grow our business together with our joint venture partner, Volvo Eicher Commercial Vehicles, and we will start this year with selected markets in Africa, coming in with new product offerings. in addition to that we also have ambitions to grow our business together with our joint venture partner volvo eicher commercial vehicles and we will start this year with selected markets in africa coming in with new product offerings A lot of things happening in our company. a lot of things happening in our company Coming back to the city bus segment that we were into here in the beginning, the shift to electric buses is happening as we speak, and here we meet fierce competition. coming back to the city bus segment that we were into here in the beginning the shift to electric buses is happening as we speak and here we meet fierce competition Our focus is to continuously improve our product offers, so we can provide the best total solution to customers so that they, in turn, can enable sustainable and resilience public transport to citizens. our focus is to continuously improve our product offers so we can provide the best total solution to customers so that they in turn can enable sustainable and resilience public transport to citizens

Speaker 11: That was a very long list of growth opportunities that you presented. That was a very long list of growth opportunities that you presented. that was a very long list of growth opportunities that you presented

Speaker 4: Yes Yes yes

Speaker 11: Anna, Antoine, you have also made an impressive journey when it comes to improving margins. Anna, Antoine, you have also made an impressive journey when it comes to improving margins. anna antoine you have also made an impressive journey when it comes to improving margins

Speaker 5: Indeed. The Renault Trucks of today is very different from the Renault Trucks 10 years ago. Mats mentioned it earlier this morning, that we have been in strong black figures for a number of years now, close to the company target. How did we do it? Primarily along three main dimensions. The first one was to leverage our medium and heavy-duty range, which is a strength of the Volvo Group, of being part of the Volvo Group, where we recovered the trust of our customers. Not only our customers, but we managed as well to expand our market share to 9.5% today in Europe. Quite a significant move. We, as well, applied a very strong pricing discipline. Pricing, pricing every day. Indeed. indeed The Renault Trucks of today is very different from the Renault Trucks 10 years ago. the renault trucks of today is very different from the renault trucks 10 years ago Mats mentioned it earlier this morning, that we have been in strong black figures for a number of years now, close to the company target. mats mentioned it earlier this morning that we have been in strong black figures for a number of years now close to the company target How did we do it? how did we do it Primarily along three main dimensions. primarily along three main dimensions The first one was to leverage our medium and heavy-duty range, which is a strength of the Volvo Group, of being part of the Volvo Group, where we recovered the trust of our customers. the first one was to leverage our medium and heavy-duty range which is a strength of the volvo group of being part of the volvo group where we recovered the trust of our customers Not only our customers, but we managed as well to expand our market share to 9.5% today in Europe. not only our customers but we managed as well to expand our market share to 9.5% today in europe Quite a significant move. quite a significant move We, as well, applied a very strong pricing discipline. we as well applied a very strong pricing discipline Pricing, pricing every day. pricing pricing every day As a fact, today, when we discuss residual value, which is really, I would say, the pulse of where the brand stays in Europe, now Renault Trucks in many markets is number 3, and in some markets number 4. As a fact, today, when we discuss residual value, which is really, I would say, the pulse of where the brand stays in Europe, now Renault Trucks in many markets is number 3, and in some markets number 4. as a fact today when we discuss residual value which is really i would say the pulse of where the brand stays in europe now renault trucks in many markets is number 3 and in some markets number 4 That's an outstanding result. The second dimension we've been focusing on is, similarly to what Roger explained, is to have a far better service delivery, more consistent delivery to our customers across the network in Europe primarily, but as well in some international markets. We have 1,500 service points, and we want them to offer the same service, a total of concept across the globe. Last but not least, this is what we've been talking about, this LCV business, which is a bit peculiar in the Volvo Group. We are the only one with this range, and we made it a profitable business with our partnership and co-investment with Renault Group. Now we are cruising at a decent pace and only creaming the market. We are not competing with the commodity players. We are more creaming the market with B2B customers, which are happy with a B2B service. That's an outstanding result. that's an outstanding result The second dimension we've been focusing on is, similarly to what Roger explained, is to have a far better service delivery, more consistent delivery to our customers across the network in Europe primarily, but as well in some international markets. the second dimension we've been focusing on is similarly to what roger explained is to have a far better service delivery, more consistent delivery to our customers across the network in europe primarily but as well in some international markets We have 1,500 service points, and we want them to offer the same service, a total of concept across the globe. we have 1,500 service points and we want them to offer the same service a total of concept across the globe Last but not least, this is what we've been talking about, this LCV business, which is a bit peculiar in the Volvo Group. last but not least this is what we've been talking about this lcv business which is a bit peculiar in the volvo group We are the only one with this range, and we made it a profitable business with our partnership and co-investment with Renault Group. we are the only one with this range and we made it a profitable business with our partnership and co-investment with renault group Now we are cruising at a decent pace and only creaming the market. now we are cruising at a decent pace and only creaming the market We are not competing with the commodity players. we are not competing with the commodity players We are more creaming the market with B2B customers, which are happy with a B2B service. we are more creaming the market with b2b customers which are happy with a b2b service Uptime, I would say on-time delivery. Uptime, I would say on-time delivery. uptime i would say on-time delivery

Speaker 11: You have also created a position of strength for yourselves. Going forward, how will you gain market share and grab those growth opportunities? You have also created a position of strength for yourselves. you have also created a position of strength for yourselves Going forward, how will you gain market share and grab those growth opportunities? going forward how will you gain market share and grab those growth opportunities

Speaker 5: Today, we have established a dedicated organization on LCV. We are as well developing new solutions, and you see it on that slide. Again, applying a similar formula as the heavy-duty trucks. We are now moving to what we call customer adaptation or tailored solutions for our customers. Uptime, guaranteeing uptime, and you need to know that this LCV segment is adopting electrification much faster than the heavy-duty side. We are at 12%-15% in Europe, and with the recent developments in the fuel price, it's moving up. We are launching with Renault Group in H1 2027, the first software-defined vehicle platform, which was part of Flexis. Now it's going to be called Renault Trafic E-Tech. That's coming up soon. Very successful expectations since the product is outstanding. Today, we have established a dedicated organization on LCV. today we have established a dedicated organization on lcv We are as well developing new solutions, and you see it on that slide. we are as well developing new solutions and you see it on that slide Again, applying a similar formula as the heavy-duty trucks. again applying a similar formula as the heavy-duty trucks We are now moving to what we call customer adaptation or tailored solutions for our customers. we are now moving to what we call customer adaptation or tailored solutions for our customers Uptime, guaranteeing uptime, and you need to know that this LCV segment is adopting electrification much faster than the heavy-duty side. uptime guaranteeing uptime and you need to know that this lcv segment is adopting electrification much faster than the heavy-duty side We are at 12%-15% in Europe, and with the recent developments in the fuel price, it's moving up. we are at 12%-15% in europe and with the recent developments in the fuel price it's moving up We are launching with Renault Group in H1 2027, the first software-defined vehicle platform, which was part of Flexis. we are launching with renault group in h1 2027 the first software-defined vehicle platform which was part of flexis Now it's going to be called Renault Trafic E-Tech. now it's going to be called renault trafic e-tech That's coming up soon. that's coming up soon Very successful expectations since the product is outstanding. very successful expectations since the product is outstanding

Speaker 11: Very briefly, what will this lead to? Very briefly, what will this lead to? very briefly what will this lead to

Speaker 5: This will lead to doubling the business. That's our expectation. Doubling the business for trucks at the horizon of 2030. Profitable today, even more profitable tomorrow. This will lead to doubling the business. this will lead to doubling the business That's our expectation. that's our expectation Doubling the business for trucks at the horizon of 2030. doubling the business for trucks at the horizon of 2030 Profitable today, even more profitable tomorrow. profitable today even more profitable tomorrow

Speaker 11: You know that we will come back on that when you give a number like that. You know that we will come back on that when you give a number like that. you know that we will come back on that when you give a number like that

Speaker 5: I'm sure. I'm sure. i'm sure

Speaker 11: Now you talked about competition and competition changing, and the two of you are probably the two in the group that meets this competition in the market every day to the most. Still, customers work with you. Why is that? Now you talked about competition and competition changing, and the two of you are probably the two in the group that meets this competition in the market every day to the most. now you talked about competition and competition changing and the two of you are probably the two in the group that meets this competition in the market every day to the most Still, customers work with you. still customers work with you Why is that? why is that

Speaker 4: First and foremost, I think our customers trust us. When we go into a market, they know we're there for the long run. We invest in local resources. We build competence. We build local partnerships, facilities. We are there to support our customers. This way of working over many years have built very long-standing relationships and also knowledge of our customer's business. To meet this competition, of course, we need to continuously improve our competitiveness, but also to build on this strength with the local regional presence and the strong Volvo Group global backbone. First and foremost, I think our customers trust us. first and foremost i think our customers trust us When we go into a market, they know we're there for the long run. when we go into a market they know we're there for the long run We invest in local resources. we invest in local resources We build competence. we build competence We build local partnerships, facilities. we build local partnerships facilities We are there to support our customers. we are there to support our customers This way of working over many years have built very long-standing relationships and also knowledge of our customer's business. this way of working over many years have built very long-standing relationships and also knowledge of our customer's business To meet this competition, of course, we need to continuously improve our competitiveness, but also to build on this strength with the local regional presence and the strong Volvo Group global backbone. to meet this competition of course we need to continuously improve our competitiveness but also to build on this strength with the local regional presence and the strong volvo group global backbone

Speaker 11: Antoine? Antoine? antoine

Speaker 5: I agree with Anna's arguments. I believe as well that the strong network we have, dealer network, is definitely a strong asset. Roger said it, 2,500 for Volvo Trucks, 1,500 for Renault Trucks. When you look at France, we have more than 330 service points. That's a clear barrier to entry, I would say, and a clear strength of our footprint. I agree with Anna's arguments. i agree with anna's arguments I believe as well that the strong network we have, dealer network, is definitely a strong asset. i believe as well that the strong network we have dealer network is definitely a strong asset Roger said it, 2,500 for Volvo Trucks, 1,500 for Renault Trucks. roger said it 2,500 for volvo trucks 1,500 for renault trucks When you look at France, we have more than 330 service points. when you look at france we have more than 330 service points That's a clear barrier to entry, I would say, and a clear strength of our footprint. that's a clear barrier to entry i would say and a clear strength of our footprint

Speaker 11: Thank you so much for now. Please take a seat. We are going to move into our 3rd segment, which is construction and mining. We are going to welcome to the stage the head of Volvo Construction Equipment, Melker. Where is Melker? Thank you so much for now. thank you so much for now Please take a seat. please take a seat We are going to move into our 3rd segment, which is construction and mining. we are going to move into our 3rd segment which is construction and mining We are going to welcome to the stage the head of Volvo Construction Equipment, Melker. we are going to welcome to the stage the head of volvo construction equipment melker Where is Melker? where is melker

Speaker 16: Wow, that was great. Sorry for being late, but we are in the midst of our Volvo Days that we have here in June. 4,000 customers and other partners talking about our fantastic new products, our new services, i.e., the solutions that we are able to provide our customers with. Since I am here also, just can tell you just over there, we are right now building our new excavator plant here in Eskilstuna, but see you inside. Wow, that was great. wow that was great Sorry for being late, but we are in the midst of our Volvo Days that we have here in June. 4,000 customers and other partners talking about our fantastic new products, our new services, i.e., the solutions that we are able to provide our customers with. sorry for being late but we are in the midst of our volvo days that we have here in june 4,000 customers and other partners talking about our fantastic new products our new services i.e the solutions that we are able to provide our customers with Since I am here also, just can tell you just over there, we are right now building our new excavator plant here in Eskilstuna, but see you inside. since i am here also just can tell you just over there we are right now building our new excavator plant here in eskilstuna but see you inside

Speaker 11: That was so- That was so- that was so-

Speaker 16: Sorry, Kina Sorry, Kina sorry kina

Speaker 11: It is so typically you. It is so typically you. it is so typically you

Speaker 16: I promise this will never, ever happen again. I promise this will never, ever happen again. i promise this will never ever happen again

Speaker 11: I'm sure it will. What was that? Obvious question. Stunt driver or AI-generated? I'm sure it will. i'm sure it will What was that? what was that Obvious question. obvious question Stunt driver or AI-generated? stunt driver or ai-generated

Speaker 16: Actually, it was me. Actually, it was me. actually it was me

Speaker 11: I don't believe you. I don't believe you. i don't believe you

Speaker 16: It was me. It was me. it was me

Speaker 11: I don't believe you. I don't believe you. i don't believe you

Speaker 16: Actually, I can tell you that yesterday we had the opportunity with the team here to be out on the playground, and I must say that I was quite impressed by the skills of the team also. We stay close to our customers, and by that, close to our products. Actually, I can tell you that yesterday we had the opportunity with the team here to be out on the playground, and I must say that I was quite impressed by the skills of the team also. actually i can tell you that yesterday we had the opportunity with the team here to be out on the playground and i must say that i was quite impressed by the skills of the team also We stay close to our customers, and by that, close to our products. we stay close to our customers and by that close to our products

Speaker 11: We know how to operate the big machines. Melker, we have been speaking about the Volvo Days. What are the highlights? We know how to operate the big machines. we know how to operate the big machines Melker, we have been speaking about the Volvo Days. melker we have been speaking about the volvo days What are the highlights? what are the highlights

Speaker 16: Obviously, a big number of customers being here four weeks. You were a little bit a part of that yesterday evening, and you will be a bigger part of that today. Of course, we are demonstrating our products, machines, services. But even more, we are demonstrating our hospitality, how we treat our customers, how we take care of our customers, and how we care about the customer's business. One thing that makes me really proud and happy is the feedback from the customers when they meet our people, because we have more than 600 employees engaged in these days during June. When they meet the product experts, the business experts, they just love it. That is Volvo Days. Obviously, a big number of customers being here four weeks. obviously a big number of customers being here four weeks You were a little bit a part of that yesterday evening, and you will be a bigger part of that today. you were a little bit a part of that yesterday evening and you will be a bigger part of that today Of course, we are demonstrating our products, machines, services. But even more, we are demonstrating our hospitality, how we treat our customers, how we take care of our customers, and how we care about the customer's business. of course we are demonstrating our products machines services. but even more we are demonstrating our hospitality how we treat our customers how we take care of our customers and how we care about the customer's business One thing that makes me really proud and happy is the feedback from the customers when they meet our people, because we have more than 600 employees engaged in these days during June. one thing that makes me really proud and happy is the feedback from the customers when they meet our people because we have more than 600 employees engaged in these days during june When they meet the product experts, the business experts, they just love it. when they meet the product experts the business experts they just love it That is Volvo Days. that is volvo days

Speaker 11: We just saw some happy faces on the screen. Melker, you have also built a resilient organization during turbulent times. We just saw some happy faces on the screen. we just saw some happy faces on the screen Melker, you have also built a resilient organization during turbulent times. melker you have also built a resilient organization during turbulent times

Speaker 16: Yes, agree. Yes, agree. yes agree

Speaker 11: Agree. By that, I leave it to you to dig even deeper. Agree. agree By that, I leave it to you to dig even deeper. by that i leave it to you to dig even deeper

Speaker 16: Thank you, Kina. I think Martin was quite clear earlier here about the expectations on growth. I would like to start with this slide. We have proven ourselves now when it comes to margins, when it comes to resilience, when it comes to profitability. As we know, that has been done during a period with a lot of external challenges, external headwinds. On the other hand, that's a lot of things that you cannot influence. Instead, do what you can. Influence what you can. We are taking a lot of actions, exiting paving business. We are discontinuing the Rokbak brand and the Rokbak business. During the autumn last year, we divested our ownership in the JV in China, SDLG. The combination of this with the actions and the earnings and profitability gives us the possibility to invest. Thank you, Kina. thank you kina I think Martin was quite clear earlier here about the expectations on growth. i think martin was quite clear earlier here about the expectations on growth I would like to start with this slide. i would like to start with this slide We have proven ourselves now when it comes to margins, when it comes to resilience, when it comes to profitability. we have proven ourselves now when it comes to margins when it comes to resilience when it comes to profitability As we know, that has been done during a period with a lot of external challenges, external headwinds. as we know that has been done during a period with a lot of external challenges external headwinds On the other hand, that's a lot of things that you cannot influence. on the other hand that's a lot of things that you cannot influence Instead, do what you can. instead do what you can Influence what you can. influence what you can We are taking a lot of actions, exiting paving business. we are taking a lot of actions exiting paving business We are discontinuing the Rokbak brand and the Rokbak business. we are discontinuing the rokbak brand and the rokbak business During the autumn last year, we divested our ownership in the JV in China, SDLG. during the autumn last year we divested our ownership in the jv in china sdlg The combination of this with the actions and the earnings and profitability gives us the possibility to invest. the combination of this with the actions and the earnings and profitability gives us the possibility to invest To invest in the future, to invest in growth, and even more important, to invest in the Volvo brand. There are, of course, a lot of different things, people behind the improved performance, there are also two structural reasons. One is our global geographical spread, which is, of course, helpful during many times. Secondly, we are present in all industry segments. Being in all segments is, of course, helpful for us to maintain stability over the cycles. When it comes to growth, we have decided to have an extra focus on three segments: construction, mining, and quarry. We take them one by one and look at construction. That is today 50% of the Volvo CE revenue. It's big, it's growing. Demand, of course, coming from big infrastructure investments, urbanization, population growth. To invest in the future, to invest in growth, and even more important, to invest in the Volvo brand. to invest in the future to invest in growth and even more important to invest in the volvo brand There are, of course, a lot of different things, people behind the improved performance, there are also two structural reasons. there are of course a lot of different things people behind the improved performance there are also two structural reasons One is our global geographical spread, which is, of course, helpful during many times. one is our global geographical spread which is of course helpful during many times Secondly, we are present in all industry segments. secondly we are present in all industry segments Being in all segments is, of course, helpful for us to maintain stability over the cycles. being in all segments is of course helpful for us to maintain stability over the cycles When it comes to growth, we have decided to have an extra focus on three segments: construction, mining, and quarry. when it comes to growth we have decided to have an extra focus on three segments construction mining and quarry We take them one by one and look at construction. we take them one by one and look at construction That is today 50% of the Volvo CE revenue. that is today 50% of the volvo ce revenue It's big, it's growing. it's big it's growing Demand, of course, coming from big infrastructure investments, urbanization, population growth. demand of course coming from big infrastructure investments urbanization population growth This is actually a very good fit to our investments we are doing in the excavator range and the excavator footprint. Moving into mining. Everyone loves mining, right? We also love mining. Big, growing. Of course, energy transition, supply chain security questions, et cetera. In mining, uptime and productivity is key. When I think about it, our products, our portfolio, our capabilities fits very well into mining. Here I see a big opportunity for expansion and growth, not at least within services. Then we have quarry and mining, very diversified business, very local business. Fits Volvo CE and the Volvo Group very well with the way of working and our broad network, so to say. This is actually a very good fit to our investments we are doing in the excavator range and the excavator footprint. this is actually a very good fit to our investments we are doing in the excavator range and the excavator footprint Moving into mining. moving into mining Everyone loves mining, right? everyone loves mining right We also love mining. we also love mining Big, growing. big growing Of course, energy transition, supply chain security questions, et cetera. of course energy transition supply chain security questions et cetera In mining, uptime and productivity is key. in mining uptime and productivity is key When I think about it, our products, our portfolio, our capabilities fits very well into mining. when i think about it our products our portfolio our capabilities fits very well into mining Here I see a big opportunity for expansion and growth, not at least within services. here i see a big opportunity for expansion and growth not at least within services Then we have quarry and mining, very diversified business, very local business. then we have quarry and mining very diversified business very local business Fits Volvo CE and the Volvo Group very well with the way of working and our broad network, so to say. fits volvo ce and the volvo group very well with the way of working and our broad network so to say Here I must say, Roger was into it, but the lineup we have in the Volvo Group now, if we take all the BAs, everything we can provide, we cover a big part of the customer needs in these segments. On top of all of this, all these three segments also see or have an increased need of sustainable solutions. I'm quite sure that you all have your projections of these different segments. We have, of course, with the CE, construction equipment lens and some external research, we have our view, and we believe that these segments will have a yearly growth of some 5%-6%. Of course, our clear ambition is that we should grow quicker than the market here. I guess the obvious question is how? How are we going to do this? Here I must say, Roger was into it, but the lineup we have in the Volvo Group now, if we take all the BAs, everything we can provide, we cover a big part of the customer needs in these segments. here i must say roger was into it but the lineup we have in the volvo group now if we take all the bas everything we can provide we cover a big part of the customer needs in these segments On top of all of this, all these three segments also see or have an increased need of sustainable solutions. on top of all of this all these three segments also see or have an increased need of sustainable solutions I'm quite sure that you all have your projections of these different segments. i'm quite sure that you all have your projections of these different segments We have, of course, with the CE, construction equipment lens and some external research, we have our view, and we believe that these segments will have a yearly growth of some 5%-6%. we have of course with the ce construction equipment lens and some external research we have our view and we believe that these segments will have a yearly growth of some 5%-6% Of course, our clear ambition is that we should grow quicker than the market here. of course our clear ambition is that we should grow quicker than the market here I guess the obvious question is how? i guess the obvious question is how How are we going to do this? how are we going to do this Thanks to our heavy investments we have been doing, start with the products. We have renewed more than or around, I should say, 50% of our portfolio. Today, it's BEV, it's ICE, it's grid connected. We see now that we have up to 10% productivity gains. Productivity is done tons per hour. We have up to 30% on the efficiency, fuel consumption or energy consumption per hour, which gives significant better TCO for our customers. 20%, that's a lot. We have also invested a lot in new services that help our customer to improve the bottom line. Uptime productivity services, site solutions, parts, pay per, we call it equipment as a service, growing rental. I think we can say that we are a little bit proud because we have had good and profitable growth here the last years. Thanks to our heavy investments we have been doing, start with the products. thanks to our heavy investments we have been doing start with the products We have renewed more than or around, I should say, 50% of our portfolio. we have renewed more than or around i should say 50% of our portfolio Today, it's BEV, it's ICE, it's grid connected. today it's bev it's ice it's grid connected We see now that we have up to 10% productivity gains. we see now that we have up to 10% productivity gains Productivity is done tons per hour. productivity is done tons per hour We have up to 30% on the efficiency, fuel consumption or energy consumption per hour, which gives significant better TCO for our customers. 20%, that's a lot. we have up to 30% on the efficiency fuel consumption or energy consumption per hour which gives significant better tco for our customers 20% that's a lot We have also invested a lot in new services that help our customer to improve the bottom line. Uptime productivity services, site solutions, parts, pay per, we call it equipment as a service, growing rental. we have also invested a lot in new services that help our customer to improve the bottom line. uptime productivity services site solutions parts pay per we call it equipment as a service growing rental I think we can say that we are a little bit proud because we have had good and profitable growth here the last years. i think we can say that we are a little bit proud because we have had good and profitable growth here the last years The combination of this now, the combination of this is that we have the capabilities now to provide the solution for the customer. The solution for the customer, that is what is the perfect, complete customer offer. Another very important parameter for us in the growth journey is our decision to move more into retail. With the acquisition of the Swecon in the beginning of this year, we now have the direct customer interface in key markets like Sweden and Germany. Very important. Of course, this will help us to drive the long-term transformation of construction business. Even more important now maybe, this will help us to drive penetration of service contracts, penetration of parts, penetration of workshop hours. The combination of this now, the combination of this is that we have the capabilities now to provide the solution for the customer. the combination of this now the combination of this is that we have the capabilities now to provide the solution for the customer The solution for the customer, that is what is the perfect, complete customer offer. the solution for the customer that is what is the perfect complete customer offer Another very important parameter for us in the growth journey is our decision to move more into retail. another very important parameter for us in the growth journey is our decision to move more into retail With the acquisition of the Swecon in the beginning of this year, we now have the direct customer interface in key markets like Sweden and Germany. with the acquisition of the swecon in the beginning of this year we now have the direct customer interface in key markets like sweden and germany Very important. very important Of course, this will help us to drive the long-term transformation of construction business. of course this will help us to drive the long-term transformation of construction business Even more important now maybe, this will help us to drive penetration of service contracts, penetration of parts, penetration of workshop hours. even more important now maybe this will help us to drive penetration of service contracts penetration of parts penetration of workshop hours If you take Europe now, revenue from own retail moving from 30%-65%, of course gives a very good position for us to continue to drive the growth here together with our customers. We have also taken some decision to invest globally to make sure that our industrial footprint is matching our commercial footprint. Most important now is excavator expansion, excavator capacity. We are investing SEK 2.5 billion into our main site in South Korea, Changwon. We are investing in Shippensburg in the U.S. Actually, the first excavators was coming out from that plant just a couple of weeks ago. Very good for the situation in the U.S. Last but not least, as we speak, we are building our plant here in Eskilstuna in Sweden. If you take Europe now, revenue from own retail moving from 30%-65%, of course gives a very good position for us to continue to drive the growth here together with our customers. if you take europe now revenue from own retail moving from 30%-65% of course gives a very good position for us to continue to drive the growth here together with our customers We have also taken some decision to invest globally to make sure that our industrial footprint is matching our commercial footprint. we have also taken some decision to invest globally to make sure that our industrial footprint is matching our commercial footprint Most important now is excavator expansion, excavator capacity. most important now is excavator expansion excavator capacity We are investing SEK 2.5 billion into our main site in South Korea, Changwon. we are investing sek 2.5 billion into our main site in south korea changwon We are investing in Shippensburg in the U.S. we are investing in shippensburg in the u.s Actually, the first excavators was coming out from that plant just a couple of weeks ago. actually the first excavators was coming out from that plant just a couple of weeks ago Very good for the situation in the U.S. very good for the situation in the u.s Last but not least, as we speak, we are building our plant here in Eskilstuna in Sweden. last but not least as we speak we are building our plant here in eskilstuna in sweden Being a Swedish company, being in Sweden today, to have the opportunity to prove that we can be competitive building a vehicle plant in Sweden, 2026, is just great. The regional value chains with shorter lead times will be very important for us in the growth journey. To summarize, we have created profitability and resilience. We are investing in products, services, retail footprint. We are close to our customers. We are focusing on segments that we know will grow. We have better possibilities than ever to grow quicker than the market. That's my answer. Being a Swedish company, being in Sweden today, to have the opportunity to prove that we can be competitive building a vehicle plant in Sweden, 2026, is just great. being a swedish company being in sweden today to have the opportunity to prove that we can be competitive building a vehicle plant in sweden 2026 is just great The regional value chains with shorter lead times will be very important for us in the growth journey. the regional value chains with shorter lead times will be very important for us in the growth journey To summarize, we have created profitability and resilience. to summarize we have created profitability and resilience We are investing in products, services, retail footprint. we are investing in products services retail footprint We are close to our customers. we are close to our customers We are focusing on segments that we know will grow. we are focusing on segments that we know will grow We have better possibilities than ever to grow quicker than the market. we have better possibilities than ever to grow quicker than the market That's my answer. that's my answer

Speaker 11: Thank you, Melker. Thank you, Melker. thank you melker

Speaker 16: Thank you. Thank you. thank you

Speaker 11: Have a seat. Stay in your chair. Have a seat. have a seat Stay in your chair. stay in your chair

Speaker 16: I will I will i will

Speaker 11: I'm going to ask you to come up in a little while as well. Melker. When working in a diverse company like the Volvo Group, you get lots of different questions from you in the analyst and investor community, from media and from others. Lately, our last two segments have gained a lot of attention. It's power generation, and it is defense. We're going to start with power generation, so let me welcome Anna. Anna, I think it's fair to say that everything about Volvo Penta is power generation. You're of course well known for your marine business, but you have been part of the industrial branch since the very start. I'm going to ask you to come up in a little while as well. i'm going to ask you to come up in a little while as well Melker. melker When working in a diverse company like the Volvo Group, you get lots of different questions from you in the analyst and investor community, from media and from others. when working in a diverse company like the volvo group you get lots of different questions from you in the analyst and investor community from media and from others Lately, our last two segments have gained a lot of attention. lately our last two segments have gained a lot of attention It's power generation, and it is defense. it's power generation and it is defense We're going to start with power generation, so let me welcome Anna. we're going to start with power generation so let me welcome anna Anna, I think it's fair to say that everything about Volvo Penta is power generation. anna i think it's fair to say that everything about volvo penta is power generation You're of course well known for your marine business, but you have been part of the industrial branch since the very start. you're of course well known for your marine business but you have been part of the industrial branch since the very start

Speaker 3: Absolutely. We love, live, and breathe power generation in Volvo Penta. Of course we are at sea, you all know that. We are also on land. We have been that since we as Pentaverken delivered the first engine to the first Volvo Cars. That was 99 years ago, so it's not a new thing for us. Absolutely. absolutely We love, live, and breathe power generation in Volvo Penta. we love live and breathe power generation in volvo penta Of course we are at sea, you all know that. of course we are at sea you all know that We are also on land. we are also on land We have been that since we as Pentaverken delivered the first engine to the first Volvo Cars. we have been that since we as pentaverken delivered the first engine to the first volvo cars That was 99 years ago, so it's not a new thing for us. that was 99 years ago so it's not a new thing for us

Speaker 11: You are an incredibly innovative company. You are an incredibly innovative company. you are an incredibly innovative company

Speaker 3: Yes, we are. Innovation is a very integral and important part of the Volvo Penta culture, and we have launched many groundbreaking innovations over the years, and I would say that we have redefined marine propulsion and boating again and again. Now we are also pushing the boundaries with our industrial products, with the latest edition, our G17, that is specifically targeted then to power generation and data centers in the U.S. Yes, we are. yes we are Innovation is a very integral and important part of the Volvo Penta culture, and we have launched many groundbreaking innovations over the years, and I would say that we have redefined marine propulsion and boating again and again. innovation is a very integral and important part of the volvo penta culture and we have launched many groundbreaking innovations over the years and i would say that we have redefined marine propulsion and boating again and again Now we are also pushing the boundaries with our industrial products, with the latest edition, our G17, that is specifically targeted then to power generation and data centers in the U.S. now we are also pushing the boundaries with our industrial products with the latest edition our g17 that is specifically targeted then to power generation and data centers in the u.s

Speaker 11: Mm-hmm. We are curious to hear your growth story. Please. Mm-hmm. mm-hmm We are curious to hear your growth story. we are curious to hear your growth story Please. please

Speaker 3: Thank you. Thank you, Kina. Thank you and welcome all of you here. Volvo Penta then. We have grown our revenue. We have doubled our revenue over the last 10 years, so that's a compound annual growth rate of 8%, and that is done with both marine and industrial. Today, marine and industrial represents 50/50 of our revenue. As you can see here, we have done that by increasing significantly the revenue per unit sold. When it comes to the marine business, that growth is very much coming from that we have increased our scope of supply. We have from the propeller to the helm station on the vessels. We have also grown into larger vessels. I would say that this is based on our innovation. The IPS system and the features that we have built on the IPS are fundamental drivers for that growth that you see here. Thank you. thank you Thank you, Kina. thank you kina Thank you and welcome all of you here. thank you and welcome all of you here Volvo Penta then. volvo penta then We have grown our revenue. we have grown our revenue We have doubled our revenue over the last 10 years, so that's a compound annual growth rate of 8%, and that is done with both marine and industrial. we have doubled our revenue over the last 10 years so that's a compound annual growth rate of 8% and that is done with both marine and industrial Today, marine and industrial represents 50/50 of our revenue. today marine and industrial represents 50/50 of our revenue As you can see here, we have done that by increasing significantly the revenue per unit sold. When it comes to the marine business, that growth is very much coming from that we have increased our scope of supply. as you can see here we have done that by increasing significantly the revenue per unit sold. when it comes to the marine business that growth is very much coming from that we have increased our scope of supply We have from the propeller to the helm station on the vessels. we have from the propeller to the helm station on the vessels We have also grown into larger vessels. we have also grown into larger vessels I would say that this is based on our innovation. i would say that this is based on our innovation The IPS system and the features that we have built on the IPS are fundamental drivers for that growth that you see here. the ips system and the features that we have built on the ips are fundamental drivers for that growth that you see here When it comes to our industrial business, we have grown volumes. We have, in particular, grown volumes when it comes to our off-road business. We have been successful in growing into heavier usage applications, being very positive for our parts sales, and today, the service business represents 30% of the Volvo Penta revenue, and I would say it's still a further growth potential for us as we move forward. As you can see here to my right, we have accomplished this profitable growth with a very asset-light operating model. What is then the secret sauce of a Volvo Penta, you can wonder. First of all, the synergies in production and in technology with the Volvo Group are absolutely fundamental for the business model of Volvo Penta. When it comes to our industrial business, we have grown volumes. when it comes to our industrial business we have grown volumes We have, in particular, grown volumes when it comes to our off-road business. we have in particular grown volumes when it comes to our off-road business We have been successful in growing into heavier usage applications, being very positive for our parts sales, and today, the service business represents 30% of the Volvo Penta revenue, and I would say it's still a further growth potential for us as we move forward. we have been successful in growing into heavier usage applications being very positive for our parts sales and today the service business represents 30% of the volvo penta revenue and i would say it's still a further growth potential for us as we move forward As you can see here to my right, we have accomplished this profitable growth with a very asset-light operating model. as you can see here to my right we have accomplished this profitable growth with a very asset-light operating model What is then the secret sauce of a Volvo Penta, you can wonder. what is then the secret sauce of a volvo penta you can wonder First of all, the synergies in production and in technology with the Volvo Group are absolutely fundamental for the business model of Volvo Penta. first of all the synergies in production and in technology with the volvo group are absolutely fundamental for the business model of volvo penta That gives us access to high-volume automotive parts that we can bring to new segments that you can see here to the right. These represent some of our most important segments that we are addressing. Here in the middle, you see Volvo Penta. We are not only adding innovation. We are adding deep application engineering excellence, and we are adding a very close cooperation with our OEM customers. We are investing heavily in R&D on a yearly basis, 7%-8% over the last couple of years. We are doing that to develop our solutions to fit all of these segments and the various applications in those segments, all having different drive cycles, different requirements, and different emission regulations. That gives us access to high-volume automotive parts that we can bring to new segments that you can see here to the right. that gives us access to high-volume automotive parts that we can bring to new segments that you can see here to the right These represent some of our most important segments that we are addressing. these represent some of our most important segments that we are addressing Here in the middle, you see Volvo Penta. here in the middle you see volvo penta We are not only adding innovation. we are not only adding innovation We are adding deep application engineering excellence, and we are adding a very close cooperation with our OEM customers. we are adding deep application engineering excellence and we are adding a very close cooperation with our oem customers We are investing heavily in R&D on a yearly basis, 7%-8% over the last couple of years. we are investing heavily in r&d on a yearly basis 7%-8% over the last couple of years We are doing that to develop our solutions to fit all of these segments and the various applications in those segments, all having different drive cycles, different requirements, and different emission regulations. we are doing that to develop our solutions to fit all of these segments and the various applications in those segments all having different drive cycles different requirements and different emission regulations If you pair this with a global commercial presence, a strong dealer network, and 2,624 very passionate and very skilled colleagues, you actually get the recipe and the ingredients for a successful, profitable growth journey. If you look behind me now, you see a couple of applications that are powered by Volvo Penta. We have widened our scope of supply, including everything from the propeller, to the stabilization, to the operation of the vessel, to the services. This is meaning that we are becoming an integral part of the design of the boat. We are a true system supplier for our marine OEMs and a true partner. We are bringing those learnings from marine into our industrial business. Here we are now launching, and we have launched connectivity services, productivity services on top of our traditional services. If you pair this with a global commercial presence, a strong dealer network, and 2,624 very passionate and very skilled colleagues, you actually get the recipe and the ingredients for a successful, profitable growth journey. if you pair this with a global commercial presence a strong dealer network and 2,624 very passionate and very skilled colleagues you actually get the recipe and the ingredients for a successful profitable growth journey If you look behind me now, you see a couple of applications that are powered by Volvo Penta. if you look behind me now you see a couple of applications that are powered by volvo penta We have widened our scope of supply, including everything from the propeller, to the stabilization, to the operation of the vessel, to the services. we have widened our scope of supply including everything from the propeller to the stabilization to the operation of the vessel to the services This is meaning that we are becoming an integral part of the design of the boat. this is meaning that we are becoming an integral part of the design of the boat We are a true system supplier for our marine OEMs and a true partner. we are a true system supplier for our marine oems and a true partner We are bringing those learnings from marine into our industrial business. we are bringing those learnings from marine into our industrial business Here we are now launching, and we have launched connectivity services, productivity services on top of our traditional services. here we are now launching and we have launched connectivity services productivity services on top of our traditional services This is from this space that we are now taking the next step. The next step, ladies and gentlemen, will also be based on the Volvo Group common technologies, on innovation and deep application knowledge, and of course, a great team. On the on and off-road side, we are now adding more Volvo Group components to our engine offer to include, for instance, axles and gearboxes, and again, bringing the Volvo Group components into new adjacent segments. On the genset side, we call our next step the Power of Plenty. What does that mean? In particular for data centers, we make now modular solutions to compete with big block power generators. Multiple engines, matching large engines by competitive TCO, by competitive footprint, by a competitive deployment cost, and maybe even more important, availability. This is from this space that we are now taking the next step. this is from this space that we are now taking the next step The next step, ladies and gentlemen, will also be based on the Volvo Group common technologies, on innovation and deep application knowledge, and of course, a great team. the next step ladies and gentlemen will also be based on the volvo group common technologies on innovation and deep application knowledge and of course a great team On the on and off-road side, we are now adding more Volvo Group components to our engine offer to include, for instance, axles and gearboxes, and again, bringing the Volvo Group components into new adjacent segments. on the on and off-road side we are now adding more volvo group components to our engine offer to include for instance axles and gearboxes and again bringing the volvo group components into new adjacent segments On the genset side, we call our next step the Power of Plenty. on the genset side we call our next step the power of plenty What does that mean? what does that mean In particular for data centers, we make now modular solutions to compete with big block power generators. in particular for data centers we make now modular solutions to compete with big block power generators Multiple engines, matching large engines by competitive TCO, by competitive footprint, by a competitive deployment cost, and maybe even more important, availability. multiple engines matching large engines by competitive tco by competitive footprint by a competitive deployment cost and maybe even more important availability On the marine side, we have been working with multiple installations for many, many years, triple, quadruple. Last two years ago, we launched the Power of Plenty concept with our IPS professional system, attaching two engines to one drive. That is also then making us compete with larger engines, bringing us up into larger vessels. It is, again, Volvo Penta redefining marine propulsion, because this is providing our customers with more power, less fuel consumption, more space, better maneuverability, and flexibility. Because in the same engine room, in the same package, you can select two diesel engines, in this case, D13s, or one electric engine and one ICE engine, or in the very near future, two electric engines. A fully electric solution without rebuilding or redesigning the engine room. What does this mean in practice? On the marine side, we have been working with multiple installations for many, many years, triple, quadruple. on the marine side we have been working with multiple installations for many many years triple quadruple Last two years ago, we launched the Power of Plenty concept with our IPS professional system, attaching two engines to one drive. last two years ago we launched the power of plenty concept with our ips professional system attaching two engines to one drive That is also then making us compete with larger engines, bringing us up into larger vessels. that is also then making us compete with larger engines bringing us up into larger vessels It is, again, Volvo Penta redefining marine propulsion, because this is providing our customers with more power, less fuel consumption, more space, better maneuverability, and flexibility. it is again volvo penta redefining marine propulsion because this is providing our customers with more power less fuel consumption more space better maneuverability and flexibility Because in the same engine room, in the same package, you can select two diesel engines, in this case, D13s, or one electric engine and one ICE engine, or in the very near future, two electric engines. because in the same engine room in the same package you can select two diesel engines in this case d13s or one electric engine and one ice engine or in the very near future two electric engines A fully electric solution without rebuilding or redesigning the engine room. a fully electric solution without rebuilding or redesigning the engine room What does this mean in practice? what does this mean in practice That means that the Power of Plenty has already opened up high potential profit pools for Volvo Penta and for the Volvo Group, like the data center business. If you look here, you see a perfect example of a Power of Plenty concept. This is a Switch data center outside Las Vegas. I would say it's a mid-sized co-location. Here you see 300 D16s packaged in a Power of Plenty concept, providing the backup power for this data center. The whole integration and the packaging is done by our customer, then Central Power. We believe that the power and the cooling business of data centers will grow with a compound annual growth rate of 14% in the next coming 10 years. Today, the data center business represents 15% of the Volvo Penta order book, and I can tell you today that it is growing rapidly. That means that the Power of Plenty has already opened up high potential profit pools for Volvo Penta and for the Volvo Group, like the data center business. that means that the power of plenty has already opened up high potential profit pools for volvo penta and for the volvo group like the data center business If you look here, you see a perfect example of a Power of Plenty concept. if you look here you see a perfect example of a power of plenty concept This is a Switch data center outside Las Vegas. this is a switch data center outside las vegas I would say it's a mid-sized co-location. i would say it's a mid-sized co-location Here you see 300 D16s packaged in a Power of Plenty concept, providing the backup power for this data center. here you see 300 d16s packaged in a power of plenty concept providing the backup power for this data center The whole integration and the packaging is done by our customer, then Central Power. the whole integration and the packaging is done by our customer then central power We believe that the power and the cooling business of data centers will grow with a compound annual growth rate of 14% in the next coming 10 years. we believe that the power and the cooling business of data centers will grow with a compound annual growth rate of 14% in the next coming 10 years Today, the data center business represents 15% of the Volvo Penta order book, and I can tell you today that it is growing rapidly. today the data center business represents 15% of the volvo penta order book and i can tell you today that it is growing rapidly If you look at the marine side, the Power of Plenty is making us move into larger vessels, like super yachts and heavy-duty marine commercial applications. Our ambition is to double our revenue, but not only in the industrial business, also in our marine business, where we see also more potential. We will double the revenue. The ambition is to do that within the next 5 to 10 years, sustaining a strong profitability and a strong return on capital. With that, if you look very, very carefully on the picture here, you see down to the right-hand side, you see a defense vessel. I believe that is a perfect segue to what we are going to talk about now, Kina. If you look at the marine side, the Power of Plenty is making us move into larger vessels, like super yachts and heavy-duty marine commercial applications. if you look at the marine side the power of plenty is making us move into larger vessels like super yachts and heavy-duty marine commercial applications Our ambition is to double our revenue, but not only in the industrial business, also in our marine business, where we see also more potential. our ambition is to double our revenue but not only in the industrial business also in our marine business where we see also more potential We will double the revenue. we will double the revenue The ambition is to do that within the next 5 to 10 years, sustaining a strong profitability and a strong return on capital. the ambition is to do that within the next 5 to 10 years sustaining a strong profitability and a strong return on capital With that, if you look very, very carefully on the picture here, you see down to the right-hand side, you see a defense vessel. with that if you look very very carefully on the picture here you see down to the right-hand side you see a defense vessel I believe that is a perfect segue to what we are going to talk about now, Kina. i believe that is a perfect segue to what we are going to talk about now kina

Speaker 11: It is. Thank you so much, Anna. It is. it is Thank you so much, Anna. thank you so much anna

Speaker 3: Thank you. Thank you. thank you

Speaker 11: You did my job. I love it. We are going to segue into the last segment, which is defense. You did my job. you did my job I love it. i love it We are going to segue into the last segment, which is defense. we are going to segue into the last segment which is defense

Speaker 3: Yes. Yes. yes

Speaker 11: Why don't you join me over here. Why don't you join me over here. why don't you join me over here

Speaker 3: Thank you Thank you thank you

Speaker 11: I will also ask Antoine and Melker. I will also ask Antoine and Melker. i will also ask antoine and melker

Speaker 3: Thank you. Thank you. thank you

Speaker 11: We opened this Capital Markets Day talking about geopolitics, I don't think that anyone has missed the need for Europe to build a deterrent defense. We know a few things. We know that logistics and infrastructure capabilities, they will be key. We also know by that many of the significant investments will be put in our sector. Here, the Volvo Group has a unique position because we can offer a wide range of applications, products, services that the defense industry needs. Starting with you, Antoine, can you describe the buzz around defense? We opened this Capital Markets Day talking about geopolitics, I don't think that anyone has missed the need for Europe to build a deterrent defense. we opened this capital markets day talking about geopolitics i don't think that anyone has missed the need for europe to build a deterrent defense We know a few things. we know a few things We know that logistics and infrastructure capabilities, they will be key. we know that logistics and infrastructure capabilities they will be key We also know by that many of the significant investments will be put in our sector. we also know by that many of the significant investments will be put in our sector Here, the Volvo Group has a unique position because we can offer a wide range of applications, products, services that the defense industry needs. here the volvo group has a unique position because we can offer a wide range of applications products services that the defense industry needs Starting with you, Antoine, can you describe the buzz around defense? starting with you antoine can you describe the buzz around defense

Speaker 5: As you said, Kina, we have a number of open conflicts in the world. All the armed forces are observing those conflicts and coming to the conclusion that everyone will have to invest. We'll have to invest in different equipment, but primarily in the logistic equipment, which are key for those conflicts, to bring all the different goods to the front or a few kilometers far from the front. That's a clear trend we are seeing. Every country starts to have a plan. I can tell you that I've been visiting many more generals, four-star, five-star general, in the last few weeks than ever in the past. They're all talking about investing, you need to know as well that they have not invested in logistic trucks for many decades. As you said, Kina, we have a number of open conflicts in the world. as you said kina we have a number of open conflicts in the world All the armed forces are observing those conflicts and coming to the conclusion that everyone will have to invest. all the armed forces are observing those conflicts and coming to the conclusion that everyone will have to invest We'll have to invest in different equipment, but primarily in the logistic equipment, which are key for those conflicts, to bring all the different goods to the front or a few kilometers far from the front. we'll have to invest in different equipment but primarily in the logistic equipment which are key for those conflicts to bring all the different goods to the front or a few kilometers far from the front That's a clear trend we are seeing. that's a clear trend we are seeing Every country starts to have a plan. every country starts to have a plan I can tell you that I've been visiting many more generals, four-star, five-star general, in the last few weeks than ever in the past. i can tell you that i've been visiting many more generals four-star five-star general in the last few weeks than ever in the past They're all talking about investing, you need to know as well that they have not invested in logistic trucks for many decades. they're all talking about investing you need to know as well that they have not invested in logistic trucks for many decades What we see as well, that we see a paradigm shift in Europe mostly, where they are moving away from tenders of big equipments, I would say, or very specified equipment only for military applications to more trucks coming from the civilian world lifted up to their needs and ongoing purchases. That's what we see across the world, ensuring forward and backward integration as well technologically, that's paramount for them. What we see as well, that we see a paradigm shift in Europe mostly, where they are moving away from tenders of big equipments, I would say, or very specified equipment only for military applications to more trucks coming from the civilian world lifted up to their needs and ongoing purchases. what we see as well that we see a paradigm shift in europe mostly where they are moving away from tenders of big equipments i would say or very specified equipment only for military applications to more trucks coming from the civilian world lifted up to their needs and ongoing purchases That's what we see across the world, ensuring forward and backward integration as well technologically, that's paramount for them. that's what we see across the world ensuring forward and backward integration as well technologically that's paramount for them

Speaker 11: Would you like to fill in, Melker? Would you like to fill in, Melker? would you like to fill in melker

Speaker 16: Yeah, just can give a hint or a data point so you understand what's going on here. Today we have ongoing business with some countries in the Volvo Group. The number of countries that we are discussing future business with is double the size of the countries we are doing business with today. Just a flavor of what is going on here. Yeah, just can give a hint or a data point so you understand what's going on here. yeah just can give a hint or a data point so you understand what's going on here Today we have ongoing business with some countries in the Volvo Group. today we have ongoing business with some countries in the volvo group The number of countries that we are discussing future business with is double the size of the countries we are doing business with today. the number of countries that we are discussing future business with is double the size of the countries we are doing business with today Just a flavor of what is going on here. just a flavor of what is going on here

Speaker 11: I guess you recognize this as well, Anna. What are you doing to grasp this opportunity? I guess you recognize this as well, Anna. i guess you recognize this as well anna What are you doing to grasp this opportunity? what are you doing to grasp this opportunity

Speaker 3: No, we see warfare changing, and I think everybody recognizes that it's more units and autonomous units is what the military is looking for right now. We see that very clearly, that the navies around the world, the marine, is looking for volume and autonomous. No, we see warfare changing, and I think everybody recognizes that it's more units and autonomous units is what the military is looking for right now. no we see warfare changing and i think everybody recognizes that it's more units and autonomous units is what the military is looking for right now We see that very clearly, that the navies around the world, the marine, is looking for volume and autonomous. we see that very clearly that the navies around the world the marine is looking for volume and autonomous The fact that we are controlling from the propeller to the helm station makes it very easy to integrate an autonomous solution on top of our electronic system. We are already delivering, and we are gearing up to deliver more, and a lot of the dialogue's ongoing. The fact that we are controlling from the propeller to the helm station makes it very easy to integrate an autonomous solution on top of our electronic system. the fact that we are controlling from the propeller to the helm station makes it very easy to integrate an autonomous solution on top of our electronic system We are already delivering, and we are gearing up to deliver more, and a lot of the dialogue's ongoing. we are already delivering and we are gearing up to deliver more and a lot of the dialogue's ongoing

Speaker 11: Looking at you, Antoine, what are you doing within Renault to grasp this opportunity? Looking at you, Antoine, what are you doing within Renault to grasp this opportunity? looking at you antoine what are you doing within renault to grasp this opportunity

Speaker 5: For Renault and Group Trucks at large, I would say then, as I said, we are adding some capabilities on our platforms to really develop military-ready platform for their needs. We are thinking of autonomous, of course, vehicles, but as well unmanned vehicles, which can be cheaper and faster to deploy. For Renault and Group Trucks at large, I would say then, as I said, we are adding some capabilities on our platforms to really develop military-ready platform for their needs. for renault and group trucks at large i would say then as i said we are adding some capabilities on our platforms to really develop military-ready platform for their needs We are thinking of autonomous, of course, vehicles, but as well unmanned vehicles, which can be cheaper and faster to deploy. we are thinking of autonomous of course vehicles but as well unmanned vehicles which can be cheaper and faster to deploy

Speaker 11: Melker, we said that one of the strengths we have is diversity. We can offer trucks, haulers, boats, engines, power generators. How do we synergize this and go to market as a group? Melker, we said that one of the strengths we have is diversity. melker we said that one of the strengths we have is diversity We can offer trucks, haulers, boats, engines, power generators. we can offer trucks haulers boats engines power generators How do we synergize this and go to market as a group? how do we synergize this and go to market as a group

Speaker 16: I think you're partly into it here. We have learned now, all of us, that defense is a lot of logistics. It's on sea, it's on road, it's off-road. If you think about that versus our portfolio, it's a good fit. We come to the scale. Defense will not only be expensive, specialized equipment. We have our system, our production facilities, our volumes. That will put this in a total different perspective because we also know the drones. You can also think about what does that mean on land? That, in combination with, you said unmanned, remote operated and autonomous, all these skills and the capabilities we have will make a lot of defense organizations much more happy in the future when they realize what they can buy. I think you're partly into it here. i think you're partly into it here We have learned now, all of us, that defense is a lot of logistics. we have learned now all of us that defense is a lot of logistics It's on sea, it's on road, it's off-road. it's on sea it's on road it's off-road If you think about that versus our portfolio, it's a good fit. if you think about that versus our portfolio it's a good fit We come to the scale. we come to the scale Defense will not only be expensive, specialized equipment. defense will not only be expensive specialized equipment We have our system, our production facilities, our volumes. we have our system our production facilities our volumes That will put this in a total different perspective because we also know the drones. that will put this in a total different perspective because we also know the drones You can also think about what does that mean on land? you can also think about what does that mean on land That, in combination with, you said unmanned, remote operated and autonomous, all these skills and the capabilities we have will make a lot of defense organizations much more happy in the future when they realize what they can buy. that in combination with you said unmanned remote operated and autonomous all these skills and the capabilities we have will make a lot of defense organizations much more happy in the future when they realize what they can buy

Speaker 11: Anna, finally, we also know that the ability to provide services, that will actually decide who will be the supplier of the vehicles. Anna, finally, we also know that the ability to provide services, that will actually decide who will be the supplier of the vehicles. anna finally we also know that the ability to provide services that will actually decide who will be the supplier of the vehicles

Speaker 3: Yes. Yes. yes

Speaker 11: What is your take on services? What is your take on services? what is your take on services

Speaker 3: It's clear. I think that goes for the group. We have a global, very dense professional service network. That is required by military, Navy around the world to have that. We can also, of course, train them to do certain service themselves, which we do today. It's clear. it's clear I think that goes for the group. i think that goes for the group We have a global, very dense professional service network. we have a global very dense professional service network That is required by military, Navy around the world to have that. that is required by military navy around the world to have that We can also, of course, train them to do certain service themselves, which we do today. we can also of course train them to do certain service themselves which we do today

Speaker 11: Melker? Melker? melker

Speaker 16: I think the definition of uptime is really in this segment and everyone been talking about that, but the dense network and our service capabilities will of course be a super good fit for uptime for a while at least. You don't know how long, but when they're up and running, you need to have uptime. I think the definition of uptime is really in this segment and everyone been talking about that, but the dense network and our service capabilities will of course be a super good fit for uptime for a while at least. i think the definition of uptime is really in this segment and everyone been talking about that but the dense network and our service capabilities will of course be a super good fit for uptime for a while at least You don't know how long, but when they're up and running, you need to have uptime. you don't know how long but when they're up and running you need to have uptime

Speaker 5: I believe uptime and TCO, because as well, the armies need to maximize the use of their budget. I believe uptime and TCO, because as well, the armies need to maximize the use of their budget. i believe uptime and tco because as well the armies need to maximize the use of their budget

Speaker 11: All right. Thank you so much for now to giving your view on the growth opportunities within defense. Please take a seat. We will probably see more of you during the Q&A later. This brings us to the end of our look of our strategically selected segments. Martin, you have been sitting listening to your colleagues. Would you like to come up and share your reflections? All right. all right Thank you so much for now to giving your view on the growth opportunities within defense. thank you so much for now to giving your view on the growth opportunities within defense Please take a seat. please take a seat We will probably see more of you during the Q&A later. we will probably see more of you during the q&a later This brings us to the end of our look of our strategically selected segments. this brings us to the end of our look of our strategically selected segments Martin, you have been sitting listening to your colleagues. martin you have been sitting listening to your colleagues Would you like to come up and share your reflections? would you like to come up and share your reflections

Speaker 13: Absolutely, keen on. First, I just would like to say, wow what a team. I think it all boils down to people. We say that, it's 100,000 colleagues around the world, but the team here representing all of them is just amazing. The second part I would like to say, I put note of that today actually, with Anna saying that scaling Volvo technology by innovation and application excellence through people, that is what it's all about when we take this segment lens onto it. Growing underlying markets, obviously, but strategically selected segment's important. Where can we really drive growth? Here, core segments, we know that we have the capabilities, we have demonstrated history. Absolutely, keen on. absolutely keen on First, I just would like to say, wow what a team. first i just would like to say wow what a team I think it all boils down to people. i think it all boils down to people We say that, it's 100,000 colleagues around the world, but the team here representing all of them is just amazing. we say that it's 100,000 colleagues around the world but the team here representing all of them is just amazing The second part I would like to say, I put note of that today actually, with Anna saying that scaling Volvo technology by innovation and application excellence through people, that is what it's all about when we take this segment lens onto it. the second part i would like to say i put note of that today actually with anna saying that scaling volvo technology by innovation and application excellence through people that is what it's all about when we take this segment lens onto it Growing underlying markets, obviously, but strategically selected segment's important. growing underlying markets obviously but strategically selected segment's important Where can we really drive growth? where can we really drive growth Here, core segments, we know that we have the capabilities, we have demonstrated history. here core segments we know that we have the capabilities we have demonstrated history We see now also with the increased focus on certain growth segments such as defense, mining, power generation, power solutions, etc., that will also require, apart from the capabilities that we have already in terms of our total offer compounded by our technology, the networks, the people, also partly concentrated commercial organizations that we are combining the strength in order to drive that opportunity. Underlying growth even further in selected segments and then outperforming in these segments, that is the recipe, and I think the team here has truly demonstrated the opportunities. We see now also with the increased focus on certain growth segments such as defense, mining, power generation, power solutions, etc., that will also require, apart from the capabilities that we have already in terms of our total offer compounded by our technology, the networks, the people, also partly concentrated commercial organizations that we are combining the strength in order to drive that opportunity. we see now also with the increased focus on certain growth segments such as defense mining power generation power solutions etc that will also require apart from the capabilities that we have already in terms of our total offer compounded by our technology the networks the people also partly concentrated commercial organizations that we are combining the strength in order to drive that opportunity Underlying growth even further in selected segments and then outperforming in these segments, that is the recipe, and I think the team here has truly demonstrated the opportunities. underlying growth even further in selected segments and then outperforming in these segments that is the recipe and i think the team here has truly demonstrated the opportunities

Speaker 11: Thank you for now, Martin. Thank you for now, Martin. thank you for now martin We will see you soon again, and I hope that there is no doubt now that there are a number of growth segments in our markets and in how we also select our segments strategically. This, to build resilience and growth. If we are to capitalize on this, we need one more thing, and that is application excellence to drive technological advancements and to ensure that all our value chains are effective. To share how we are achieving this, I will present a well-known face, but with a slightly enhanced scope. Jens. My friend, you have stepped into bigger shoes since the last CMD, leading purchasing, well, they look the same. Purchasing, operations, and technology. How are you finding things? We will see you soon again, and I hope that there is no doubt now that there are a number of growth segments in our markets and in how we also select our segments strategically. we will see you soon again and i hope that there is no doubt now that there are a number of growth segments in our markets and in how we also select our segments strategically This, to build resilience and growth. this to build resilience and growth If we are to capitalize on this, we need one more thing, and that is application excellence to drive technological advancements and to ensure that all our value chains are effective. if we are to capitalize on this we need one more thing and that is application excellence to drive technological advancements and to ensure that all our value chains are effective To share how we are achieving this, I will present a well-known face, but with a slightly enhanced scope. to share how we are achieving this i will present a well-known face but with a slightly enhanced scope Jens. jens My friend, you have stepped into bigger shoes since the last CMD, leading purchasing, well, they look the same. my friend you have stepped into bigger shoes since the last cmd leading purchasing well they look the same Purchasing, operations, and technology. purchasing operations and technology How are you finding things? how are you finding things

Speaker 10: It feels exciting and of course, great responsibility, and we're living in unprecedented times with moving faster than ever before, but that's also the time to show what this organization is capable of, so feeling good. It feels exciting and of course, great responsibility, and we're living in unprecedented times with moving faster than ever before, but that's also the time to show what this organization is capable of, so feeling good. it feels exciting and of course great responsibility and we're living in unprecedented times with moving faster than ever before but that's also the time to show what this organization is capable of so feeling good

Speaker 11: What is your comment on those capabilities? What is your comment on those capabilities? what is your comment on those capabilities

Speaker 10: It's all about people, and it starts and ends there. Whether that is to set up a new plant in Mexico within time, budget, now producing trucks, or launching a completely new D13 platform that we're doing right now, or the 700-km range battery electric vehicles, it's done by people every day doing the extra mile. It's all about people, and it starts and ends there. it's all about people and it starts and ends there Whether that is to set up a new plant in Mexico within time, budget, now producing trucks, or launching a completely new D13 platform that we're doing right now, or the 700-km range battery electric vehicles, it's done by people every day doing the extra mile. whether that is to set up a new plant in mexico within time budget now producing trucks or launching a completely new d13 platform that we're doing right now or the 700-km range battery electric vehicles it's done by people every day doing the extra mile

Speaker 11: That's really true. That's really true. that's really true

Speaker 10: It's key. It's key. it's key

Speaker 11: We are super curious about application excellence. I'll leave the floor to you to describe how we are ensuring that we have the right product at the right time, at the right place, and at the right cost. We are super curious about application excellence. we are super curious about application excellence I'll leave the floor to you to describe how we are ensuring that we have the right product at the right time, at the right place, and at the right cost. i'll leave the floor to you to describe how we are ensuring that we have the right product at the right time at the right place and at the right cost

Speaker 10: Thank you. Starting with application excellence, again, we have said it before, it starts with the customer, and application excellence and tailormade equipment at scale is what makes us a little bit unique. I would like to take the opportunity to actually distance ourselves a bit from automotive. We are not automotive. We are producing highly specialized industrial machines every day at scale. Application excellence, we mentioned many times today, what does that really mean? I'll give you some small examples. For instance, we have a customer here in Europe transporting glass sheets from a glass mill. The glass sheets, they have a certain size and you cannot change that. That means your trailer needs to be bigger. Thank you. thank you Starting with application excellence, again, we have said it before, it starts with the customer, and application excellence and tailormade equipment at scale is what makes us a little bit unique. starting with application excellence again we have said it before it starts with the customer and application excellence and tailormade equipment at scale is what makes us a little bit unique I would like to take the opportunity to actually distance ourselves a bit from automotive. i would like to take the opportunity to actually distance ourselves a bit from automotive We are not automotive. we are not automotive We are producing highly specialized industrial machines every day at scale. we are producing highly specialized industrial machines every day at scale Application excellence, we mentioned many times today, what does that really mean? application excellence we mentioned many times today what does that really mean I'll give you some small examples. i'll give you some small examples For instance, we have a customer here in Europe transporting glass sheets from a glass mill. for instance we have a customer here in europe transporting glass sheets from a glass mill The glass sheets, they have a certain size and you cannot change that. the glass sheets they have a certain size and you cannot change that That means your trailer needs to be bigger. that means your trailer needs to be bigger That means also when the trailer is bigger and higher, you need to lower the chassis to have profitability and competition, creating a very competitive product, and that's what we deliver. Or, for instance, our 38-ton axle in a quarry or in a construction site where you add on load in the rear, and we measure every axle exactly what the weight is, not to load too much to be illegal and not load too little to not be competitive. That is what we are talking about being application excellence. These are only two points. I can tell you another 10,000 points where we do this in every segment, in every product, everywhere, and we do it at scale. Ultimately for us it's about creating TCO for our customer, uptime, but also productivity. I would like to highlight also trust. That means also when the trailer is bigger and higher, you need to lower the chassis to have profitability and competition, creating a very competitive product, and that's what we deliver. that means also when the trailer is bigger and higher you need to lower the chassis to have profitability and competition creating a very competitive product and that's what we deliver Or, for instance, our 38-ton axle in a quarry or in a construction site where you add on load in the rear, and we measure every axle exactly what the weight is, not to load too much to be illegal and not load too little to not be competitive. or for instance our 38-ton axle in a quarry or in a construction site where you add on load in the rear and we measure every axle exactly what the weight is not to load too much to be illegal and not load too little to not be competitive That is what we are talking about being application excellence. that is what we are talking about being application excellence These are only two points. these are only two points I can tell you another 10,000 points where we do this in every segment, in every product, everywhere, and we do it at scale. i can tell you another 10,000 points where we do this in every segment in every product everywhere and we do it at scale Ultimately for us it's about creating TCO for our customer, uptime, but also productivity. ultimately for us it's about creating tco for our customer uptime but also productivity I would like to highlight also trust. i would like to highlight also trust Trust we build by consistent performance, but also standing with our customers in good times and in bad times. We do that by servicing our customers, and we are at the point right now where we are delivering 99% of our order lines of spare parts within 24 hours in 180 countries, serving 1.9 million trucks. If you add on the complete group, then we are talking about 3.2 million pieces of equipment that we can service. We are at the level still at 99% within 24 hours in 180 countries. How do we make this happen? It's by balancing. Balancing, having scale where scale matters, having speed where speed matters. Starting with where scale matters. That is in our tech stack. How do we create the best possible technology solutions? Trust we build by consistent performance, but also standing with our customers in good times and in bad times. trust we build by consistent performance but also standing with our customers in good times and in bad times We do that by servicing our customers, and we are at the point right now where we are delivering 99% of our order lines of spare parts within 24 hours in 180 countries, serving 1.9 million trucks. we do that by servicing our customers and we are at the point right now where we are delivering 99% of our order lines of spare parts within 24 hours in 180 countries serving 1.9 million trucks If you add on the complete group, then we are talking about 3.2 million pieces of equipment that we can service. if you add on the complete group then we are talking about 3.2 million pieces of equipment that we can service We are at the level still at 99% within 24 hours in 180 countries. we are at the level still at 99% within 24 hours in 180 countries How do we make this happen? how do we make this happen It's by balancing. it's by balancing Balancing, having scale where scale matters, having speed where speed matters. balancing having scale where scale matters having speed where speed matters Starting with where scale matters. starting with where scale matters That is in our tech stack. that is in our tech stack How do we create the best possible technology solutions? how do we create the best possible technology solutions Common architecture, shared technology, starting with powertrain solution, software-defined vehicle applications or platforms, connectivity, and as Nils alluded to earlier, also autonomous coming into our complete global tech stack. Of course, having that global tech stack is enormously important to have the critical mass, to have the speed, the capacity to invest enough in the right areas. Of course, having a big global organization also can make you slow. That needs to be balanced with a regional setup. We are super clear in our regional strategy. We are having application R&D close to our customer, understanding what the customer need, whether that is in a mine in Peru or in a road train in Australia. We need to understand what the customer needs. That means you need to have application R&D on local level. Common architecture, shared technology, starting with powertrain solution, software-defined vehicle applications or platforms, connectivity, and as Nils alluded to earlier, also autonomous coming into our complete global tech stack. common architecture shared technology starting with powertrain solution software-defined vehicle applications or platforms connectivity and as nils alluded to earlier also autonomous coming into our complete global tech stack Of course, having that global tech stack is enormously important to have the critical mass, to have the speed, the capacity to invest enough in the right areas. of course having that global tech stack is enormously important to have the critical mass to have the speed the capacity to invest enough in the right areas Of course, having a big global organization also can make you slow. of course having a big global organization also can make you slow That needs to be balanced with a regional setup. that needs to be balanced with a regional setup We are super clear in our regional strategy. we are super clear in our regional strategy We are having application R&D close to our customer, understanding what the customer need, whether that is in a mine in Peru or in a road train in Australia. we are having application r&d close to our customer understanding what the customer need whether that is in a mine in peru or in a road train in australia We need to understand what the customer needs. we need to understand what the customer needs That means you need to have application R&D on local level. that means you need to have application r&d on local level Adding on local sourcing, also local production, truly creating an end-to-end system supporting our customer every day. The regional setup is also a way of dealing with resilience. I look at resilience from three aspects: financially, technology, geopolitically. Starting with financially, I think we have shown in the last few years, we have created a truly flexible industrial system that can adapt to volumes wherever they are in the world, in the three, four distinct regions, North America, Latin America, Europe, and internationally. Geopolitically, by having this set up where we source locally, produce locally, we are mitigating a big risk that we have with either tariffs or sudden impacts like transport issues or disturbances that we have seen over the last couple of years, shocks to the system, setting up a resilient system. Adding on local sourcing, also local production, truly creating an end-to-end system supporting our customer every day. adding on local sourcing also local production truly creating an end-to-end system supporting our customer every day The regional setup is also a way of dealing with resilience. the regional setup is also a way of dealing with resilience I look at resilience from three aspects: financially, technology, geopolitically. i look at resilience from three aspects financially technology geopolitically Starting with financially, I think we have shown in the last few years, we have created a truly flexible industrial system that can adapt to volumes wherever they are in the world, in the three, four distinct regions, North America, Latin America, Europe, and internationally. starting with financially i think we have shown in the last few years we have created a truly flexible industrial system that can adapt to volumes wherever they are in the world in the three four distinct regions north america latin america europe and internationally Geopolitically, by having this set up where we source locally, produce locally, we are mitigating a big risk that we have with either tariffs or sudden impacts like transport issues or disturbances that we have seen over the last couple of years, shocks to the system, setting up a resilient system. geopolitically by having this set up where we source locally produce locally we are mitigating a big risk that we have with either tariffs or sudden impacts like transport issues or disturbances that we have seen over the last couple of years shocks to the system setting up a resilient system Finally, from a technology perspective, we have set up the system so we can balance up the system both from an R&D also from an industrial perspective, ramping up whatever technology will be needed in different part of the world, whether that is the combustion engine on different fuels, the battery electric vehicle, or in the future, hydrogen. We can ramp up wherever it's needed, dependent most likely on this infrastructure, depending where we are in the world. We are a growing company, starting with our service network. The points you see here are actually our distribution centers that are supporting the map that Roger showed earlier with our different service centers. This is how we distribute our parts globally. We have invested over a number of years. We are in a good position right now, and that's why we achieved the 99%. Finally, from a technology perspective, we have set up the system so we can balance up the system both from an R&D also from an industrial perspective, ramping up whatever technology will be needed in different part of the world, whether that is the combustion engine on different fuels, the battery electric vehicle, or in the future, hydrogen. finally from a technology perspective we have set up the system so we can balance up the system both from an r&d also from an industrial perspective ramping up whatever technology will be needed in different part of the world whether that is the combustion engine on different fuels the battery electric vehicle or in the future hydrogen We can ramp up wherever it's needed, dependent most likely on this infrastructure, depending where we are in the world. we can ramp up wherever it's needed dependent most likely on this infrastructure depending where we are in the world We are a growing company, starting with our service network. we are a growing company starting with our service network The points you see here are actually our distribution centers that are supporting the map that Roger showed earlier with our different service centers. the points you see here are actually our distribution centers that are supporting the map that roger showed earlier with our different service centers This is how we distribute our parts globally. this is how we distribute our parts globally We have invested over a number of years. we have invested over a number of years We are in a good position right now, and that's why we achieved the 99%. we are in a good position right now and that's why we achieved the 99% Going into our industrial system, starting with, North America, you know we have invested in capacity here. I think we are finalizing. We are in place. Going into Latin America, we are in place. Europe, very strong. We have a very strong backbone in Europe in place, we are ramping up now our fourth industrial hump, India. We have some investments left, we see that will be handled in more of a normalized capital expenditure. I would say very soon in place as well. Looking at R&D. We have invested also here, we have had elevated levels of R&D spend over the last few years. We see now that that has been peaked, we have also invested in platforms, in the combustion engine, in our long-range BEV, in our software-defined vehicle, also in the autonomous area. Going into our industrial system, starting with, North America, you know we have invested in capacity here. going into our industrial system starting with north america you know we have invested in capacity here I think we are finalizing. i think we are finalizing We are in place. we are in place Going into Latin America, we are in place. Europe, very strong. going into latin america we are in place. europe very strong We have a very strong backbone in Europe in place, we are ramping up now our fourth industrial hump, India. we have a very strong backbone in europe in place we are ramping up now our fourth industrial hump india We have some investments left, we see that will be handled in more of a normalized capital expenditure. we have some investments left we see that will be handled in more of a normalized capital expenditure I would say very soon in place as well. i would say very soon in place as well Looking at R&D. looking at r&d We have invested also here, we have had elevated levels of R&D spend over the last few years. we have invested also here we have had elevated levels of r&d spend over the last few years We see now that that has been peaked, we have also invested in platforms, in the combustion engine, in our long-range BEV, in our software-defined vehicle, also in the autonomous area. we see now that that has been peaked we have also invested in platforms in the combustion engine in our long-range bev in our software-defined vehicle also in the autonomous area We see now that our R&D expenditures are flattening out. Kina, we have resilience. We have the discipline to balance between technologies, we definitely have the capabilities to grow. We see now that our R&D expenditures are flattening out. we see now that our r&d expenditures are flattening out Kina, we have resilience. kina we have resilience We have the discipline to balance between technologies, we definitely have the capabilities to grow. we have the discipline to balance between technologies we definitely have the capabilities to grow

Speaker 11: Thank you so much, Jens. I have been standing on many stages with you, there is one word that keeps coming back. Thank you so much, Jens. thank you so much jens I have been standing on many stages with you, there is one word that keeps coming back. i have been standing on many stages with you there is one word that keeps coming back Execution. What do you see now in your big organization that gives you a lot of confidence? Execution. execution What do you see now in your big organization that gives you a lot of confidence? what do you see now in your big organization that gives you a lot of confidence

Speaker 10: Execution gives trust. It starts and ends with people, I need to acknowledge that. I'm a true believer in people and what can happen when you have the right people on board. I would like to take a story about Adisa here. You see on the slide here. She works in our shipping factory where we produce our gearboxes for Europe. A while back, I met her on the shop floor. We were about to ramp up from a big rebuild that we did. On the AMT gearbox, that's a sensitive thing. That's where you support the complete European market with gearboxes. We were rebuilding that to have both our electrical drivelines with our AMT gearboxes on that line. It's a bit tense ramping up vertically after a shutdown. Execution gives trust. execution gives trust It starts and ends with people, I need to acknowledge that. it starts and ends with people i need to acknowledge that I'm a true believer in people and what can happen when you have the right people on board. i'm a true believer in people and what can happen when you have the right people on board I would like to take a story about Adisa here. i would like to take a story about adisa here You see on the slide here. you see on the slide here She works in our shipping factory where we produce our gearboxes for Europe. she works in our shipping factory where we produce our gearboxes for europe A while back, I met her on the shop floor. a while back i met her on the shop floor We were about to ramp up from a big rebuild that we did. we were about to ramp up from a big rebuild that we did On the AMT gearbox, that's a sensitive thing. on the amt gearbox that's a sensitive thing That's where you support the complete European market with gearboxes. that's where you support the complete european market with gearboxes We were rebuilding that to have both our electrical drivelines with our AMT gearboxes on that line. we were rebuilding that to have both our electrical drivelines with our amt gearboxes on that line It's a bit tense ramping up vertically after a shutdown. it's a bit tense ramping up vertically after a shutdown It is tense, she was standing there looking me in the eye, simply saying, "Failure is not an option. It is tense, she was standing there looking me in the eye, simply saying, "Failure is not an option. it is tense she was standing there looking me in the eye simply saying "failure is not an option Off she went. It was a success, by the way. Off she went. off she went It was a success, by the way. it was a success by the way That is the type of attitude I see everywhere in the organization. I see it everywhere, wherever I go, whether that is to set up a new plant in Mexico, delivering our D13 engine, or a service center, or our long-range battery electric vehicle. I see that everywhere. It's hard to beat a winning team. That is the type of attitude I see everywhere in the organization. that is the type of attitude i see everywhere in the organization I see it everywhere, wherever I go, whether that is to set up a new plant in Mexico, delivering our D13 engine, or a service center, or our long-range battery electric vehicle. i see it everywhere wherever i go whether that is to set up a new plant in mexico delivering our d13 engine or a service center or our long-range battery electric vehicle I see that everywhere. i see that everywhere It's hard to beat a winning team. it's hard to beat a winning team

Speaker 11: I see it in you, my friend. Thank you so much for now. Please take a seat. We will see more of you later. Jens was speaking about our R&D budget normalizing and us having done major investments in our future. With such a strong balance sheet, how do we leverage our position? Mats, may I look at you? Maybe you can put some figures to it. I see it in you, my friend. i see it in you my friend Thank you so much for now. thank you so much for now Please take a seat. please take a seat We will see more of you later. we will see more of you later Jens was speaking about our R&D budget normalizing and us having done major investments in our future. jens was speaking about our r&d budget normalizing and us having done major investments in our future With such a strong balance sheet, how do we leverage our position? with such a strong balance sheet how do we leverage our position Mats, may I look at you? mats may i look at you Maybe you can put some figures to it. maybe you can put some figures to it

Speaker 14: I'm back. I'm back. i'm back

Speaker 11: You're back. You're back. you're back

Speaker 14: You're right. As you have all have heard, we have been forward-leaning when it comes to investments over the recent year, and we are well invested. If we are putting numbers on that and looking at the development we have had since 2019 on this short term. As you can see, we have increased the R&D gross spending, and we peaked in 2024. As Jens said, from the peak 2024, what we are looking on is rather a slightly decline from there or more of a plateau. R&D is also a big driver when it comes to capital expenditures. We can see a similar development when it comes to capital expenditures, but with somewhat of a delay around. You're right. you're right As you have all have heard, we have been forward-leaning when it comes to investments over the recent year, and we are well invested. as you have all have heard we have been forward-leaning when it comes to investments over the recent year and we are well invested If we are putting numbers on that and looking at the development we have had since 2019 on this short term. if we are putting numbers on that and looking at the development we have had since 2019 on this short term As you can see, we have increased the R&D gross spending, and we peaked in 2024. as you can see we have increased the r&d gross spending and we peaked in 2024 As Jens said, from the peak 2024, what we are looking on is rather a slightly decline from there or more of a plateau. as jens said from the peak 2024 what we are looking on is rather a slightly decline from there or more of a plateau R&D is also a big driver when it comes to capital expenditures. r&d is also a big driver when it comes to capital expenditures We can see a similar development when it comes to capital expenditures, but with somewhat of a delay around. we can see a similar development when it comes to capital expenditures but with somewhat of a delay around We have been ramping up on the CapEx side as well, we had SEK 18 billion in 2025, which is similar to the R&D side on a peak level, where we see a slight decline in the same way as we have seen for the R&D growth side. We have been ramping up on the CapEx side as well, we had SEK 18 billion in 2025, which is similar to the R&D side on a peak level, where we see a slight decline in the same way as we have seen for the R&D growth side. we have been ramping up on the capex side as well we had sek 18 billion in 2025 which is similar to the r&d side on a peak level where we see a slight decline in the same way as we have seen for the r&d growth side

Speaker 11: How does this impact our way of thinking around capital allocation? How does this impact our way of thinking around capital allocation? how does this impact our way of thinking around capital allocation

Speaker 14: We are very consistent when it comes to the thinking around our capital allocation, and the most important part is that we are investing, and we are investing being forward-leaning in our operations as well. This has been yielding over time, and we are on a return on capital employed of around 25%, so good returns on the investments we are doing. In the same time, and this is also you have heard from all my colleagues today, we are forward-leaning when it comes to investing in new technologies. We are, in the same time, sharing this success with the shareholders, and we have been consistent when it comes to dividends as well. Looking at the ordinary dividend, but we have been increasing the ordinary dividend with SEK 0.5 over the recent years, and consequent we will continue to be. We are very consistent when it comes to the thinking around our capital allocation, and the most important part is that we are investing, and we are investing being forward-leaning in our operations as well. we are very consistent when it comes to the thinking around our capital allocation and the most important part is that we are investing and we are investing being forward-leaning in our operations as well This has been yielding over time, and we are on a return on capital employed of around 25%, so good returns on the investments we are doing. this has been yielding over time and we are on a return on capital employed of around 25% so good returns on the investments we are doing In the same time, and this is also you have heard from all my colleagues today, we are forward-leaning when it comes to investing in new technologies. in the same time and this is also you have heard from all my colleagues today we are forward-leaning when it comes to investing in new technologies We are, in the same time, sharing this success with the shareholders, and we have been consistent when it comes to dividends as well. we are in the same time sharing this success with the shareholders and we have been consistent when it comes to dividends as well Looking at the ordinary dividend, but we have been increasing the ordinary dividend with SEK 0.5 over the recent years, and consequent we will continue to be. looking at the ordinary dividend but we have been increasing the ordinary dividend with sek 0.5 over the recent years and consequent we will continue to be Then on the extraordinary side, depending on where we are in the business cycle and depending on the cash flow, we have also been generous when it comes to the extraordinary dividend. With that, I'd love to return to this slide. I really love it when we are talking the total shareholder return, and we talked about the positive impact coming from the resilience and the growth, but capital allocation also being extremely important when it comes to the total shareholder return, and the dividends we are paying, which is also driving the total returns. Then on the extraordinary side, depending on where we are in the business cycle and depending on the cash flow, we have also been generous when it comes to the extraordinary dividend. then on the extraordinary side depending on where we are in the business cycle and depending on the cash flow we have also been generous when it comes to the extraordinary dividend With that, I'd love to return to this slide. with that i'd love to return to this slide I really love it when we are talking the total shareholder return, and we talked about the positive impact coming from the resilience and the growth, but capital allocation also being extremely important when it comes to the total shareholder return, and the dividends we are paying, which is also driving the total returns. i really love it when we are talking the total shareholder return and we talked about the positive impact coming from the resilience and the growth but capital allocation also being extremely important when it comes to the total shareholder return and the dividends we are paying which is also driving the total returns

Speaker 11: Thank you so much, Mats. I'm sure that we have many happy shareholders. Why don't you join me behind the desk? We are soon going to open up for our Q&A session. We are done with presentations. First, I would like to ask Martin to wrap things up. Thank you so much, Mats. thank you so much mats I'm sure that we have many happy shareholders. i'm sure that we have many happy shareholders Why don't you join me behind the desk? why don't you join me behind the desk We are soon going to open up for our Q&A session. we are soon going to open up for our q&a session We are done with presentations. we are done with presentations First, I would like to ask Martin to wrap things up. first i would like to ask martin to wrap things up

Speaker 13: Thank you, Kina. What a great opportunity to present this story. Maybe two messages also, if we start with what we've discussed today. Number one, demonstrated Thank you, Kina. thank you kina What a great opportunity to present this story. what a great opportunity to present this story Maybe two messages also, if we start with what we've discussed today. maybe two messages also if we start with what we've discussed today Number one, demonstrated number one demonstrated A demonstration of my colleagues throughout the Volvo Group about built for resilience and growth. As you have seen here, both when it comes to the reinforced resilience over different type of cycles, but also how we are continuously also tapping into the growth opportunities. Now with the four dimensions that we have been presenting through the segment lens, it's time to take the next step for the Volvo Group. Friends, a day like this, exciting times, right? We are living in uncertain conditions, we know that. The demand in our strategically selected segments will continue to accelerate. This growth is driven, as we have been talking about today, by the underlying economic activities obviously, driven by macro trends, but also a number of dynamic factors such as e-commerce, defense, mining, digital infrastructure, and beyond. A demonstration of my colleagues throughout the Volvo Group about built for resilience and growth. a demonstration of my colleagues throughout the volvo group about built for resilience and growth As you have seen here, both when it comes to the reinforced resilience over different type of cycles, but also how we are continuously also tapping into the growth opportunities. as you have seen here both when it comes to the reinforced resilience over different type of cycles but also how we are continuously also tapping into the growth opportunities Now with the four dimensions that we have been presenting through the segment lens, it's time to take the next step for the Volvo Group. now with the four dimensions that we have been presenting through the segment lens it's time to take the next step for the volvo group Friends, a day like this, exciting times, right? friends a day like this exciting times right We are living in uncertain conditions, we know that. we are living in uncertain conditions we know that The demand in our strategically selected segments will continue to accelerate. the demand in our strategically selected segments will continue to accelerate This growth is driven, as we have been talking about today, by the underlying economic activities obviously, driven by macro trends, but also a number of dynamic factors such as e-commerce, defense, mining, digital infrastructure, and beyond. this growth is driven as we have been talking about today by the underlying economic activities obviously driven by macro trends but also a number of dynamic factors such as e-commerce defense mining digital infrastructure and beyond Also, we are coming to the point where we will see the enablement by autonomous solutions and energy transition that provide further growth opportunities. When growth prospects are good, competition is intensifying, and we like that. In these exciting times, the Volvo Group's capabilities and assets to move ahead have never been stronger because it all boils down to where we started this morning, that every customer will get what they need to stay competitive and successful in their specific segment, application, and geography. In other words, in their business. The solution for the customer. A truly competitive TCO, including uptime, payload, energy efficiency, safety, driver attractiveness, productivity and more. This is customer obsession in real life. It's one thing to have an obsession for customers, it's another to have what is required to deliver what they need. Also, we are coming to the point where we will see the enablement by autonomous solutions and energy transition that provide further growth opportunities. also we are coming to the point where we will see the enablement by autonomous solutions and energy transition that provide further growth opportunities When growth prospects are good, competition is intensifying, and we like that. when growth prospects are good competition is intensifying and we like that In these exciting times, the Volvo Group's capabilities and assets to move ahead have never been stronger because it all boils down to where we started this morning, that every customer will get what they need to stay competitive and successful in their specific segment, application, and geography. in these exciting times the volvo group's capabilities and assets to move ahead have never been stronger because it all boils down to where we started this morning that every customer will get what they need to stay competitive and successful in their specific segment application and geography In other words, in their business. in other words in their business The solution for the customer. the solution for the customer A truly competitive TCO, including uptime, payload, energy efficiency, safety, driver attractiveness, productivity and more. a truly competitive tco including uptime payload energy efficiency safety driver attractiveness productivity and more This is customer obsession in real life. this is customer obsession in real life It's one thing to have an obsession for customers, it's another to have what is required to deliver what they need. it's one thing to have an obsession for customers it's another to have what is required to deliver what they need With our global system of own innovation technology in industrial capabilities, combined with the best and greatest, most reliable supply and commercial partners, we are either developing or getting access to the latest and greatest competitive key components and systems. Competitive both, yes, in terms of cost, but when it comes to the solution, in many cases even more important when it comes to durability, reliability, and performance. Our modular product and solution system, CAST, common architecture and shared technology, is both fast and flexible and combine scale where it matters with the diversity needed for the customer. Our application excellence leverages our strong regional value chains in both core and evolving markets. They are, what you say, Jens, these regional value chains, they are ready for more growth, right? With our global system of own innovation technology in industrial capabilities, combined with the best and greatest, most reliable supply and commercial partners, we are either developing or getting access to the latest and greatest competitive key components and systems. with our global system of own innovation technology in industrial capabilities combined with the best and greatest most reliable supply and commercial partners we are either developing or getting access to the latest and greatest competitive key components and systems Competitive both, yes, in terms of cost, but when it comes to the solution, in many cases even more important when it comes to durability, reliability, and performance. competitive both yes in terms of cost but when it comes to the solution in many cases even more important when it comes to durability reliability and performance Our modular product and solution system, CAST, common architecture and shared technology, is both fast and flexible and combine scale where it matters with the diversity needed for the customer. our modular product and solution system cast common architecture and shared technology is both fast and flexible and combine scale where it matters with the diversity needed for the customer Our application excellence leverages our strong regional value chains in both core and evolving markets. our application excellence leverages our strong regional value chains in both core and evolving markets They are, what you say, Jens, these regional value chains, they are ready for more growth, right? they are what you say jens these regional value chains they are ready for more growth right

Speaker 10: Yes. Yes. yes

Speaker 13: Melker, don't worry, we are ready. Growth driven by a world-class sales service network that is global when it comes to reach, but on the other hand, and at the end of the day for the customer, is very local. To put it even more precise, exactly where and when the customer needs us and wants us every day, 365 days per year. Always. This approach has led us to a growing customer base that has a huge trust in our solutions and in our people, reflected in our high customer retention and new customer acquisitions. It's not just trust in the products. By leveraging the total offer, that has led to an increased share of service and solution content, another important signal of trust from our customers. We are working in an industry where the market is growing. Melker, don't worry, we are ready. melker don't worry we are ready Growth driven by a world-class sales service network that is global when it comes to reach, but on the other hand, and at the end of the day for the customer, is very local. growth driven by a world-class sales service network that is global when it comes to reach but on the other hand and at the end of the day for the customer is very local To put it even more precise, exactly where and when the customer needs us and wants us every day, 365 days per year. to put it even more precise exactly where and when the customer needs us and wants us every day 365 days per year Always. always This approach has led us to a growing customer base that has a huge trust in our solutions and in our people, reflected in our high customer retention and new customer acquisitions. this approach has led us to a growing customer base that has a huge trust in our solutions and in our people reflected in our high customer retention and new customer acquisitions It's not just trust in the products. it's not just trust in the products By leveraging the total offer, that has led to an increased share of service and solution content, another important signal of trust from our customers. by leveraging the total offer that has led to an increased share of service and solution content another important signal of trust from our customers We are working in an industry where the market is growing. we are working in an industry where the market is growing We are focusing on segments that will outperform the growing market, we are confident that with everything we talked about today and much, much more obviously, we will outperform in these segments. Growth on growth on growth. Based on these growth levers, our capital allocation strategy has been consistent in providing performance for our customers, in reducing volatility and increasing earnings for the group, and solid investor returns. This is what we at Volvo call resilient and profitable growth. It will be done by the most precious asset that we have at Volvo, our people and our partners. You have seen the team, I would like to call it my team on stage today, and I'm very proud of all of you. Thank you guys for what you're doing. We are representing 100,000 colleagues around the world. We are focusing on segments that will outperform the growing market, we are confident that with everything we talked about today and much, much more obviously, we will outperform in these segments. we are focusing on segments that will outperform the growing market we are confident that with everything we talked about today and much much more obviously we will outperform in these segments Growth on growth on growth. growth on growth on growth Based on these growth levers, our capital allocation strategy has been consistent in providing performance for our customers, in reducing volatility and increasing earnings for the group, and solid investor returns. based on these growth levers our capital allocation strategy has been consistent in providing performance for our customers in reducing volatility and increasing earnings for the group and solid investor returns This is what we at Volvo call resilient and profitable growth. this is what we at volvo call resilient and profitable growth It will be done by the most precious asset that we have at Volvo, our people and our partners. it will be done by the most precious asset that we have at volvo our people and our partners You have seen the team, I would like to call it my team on stage today, and I'm very proud of all of you. you have seen the team i would like to call it my team on stage today and i'm very proud of all of you Thank you guys for what you're doing. thank you guys for what you're doing We are representing 100,000 colleagues around the world. we are representing 100,000 colleagues around the world I know that many of them are watching online. I hope that you excuse me if I turn and talk to them for one moment here. Dear colleagues, it doesn't matter where in the world I am. I meet dedicated, dynamic, business savvy men, women, colleagues, you. You are living our brands and values, and I know that you're always ready for the extra mile every day, in every situation, globally, but still extremely locally, and all for the customer. I couldn't be more proud of you and what you are doing. Thank you for your great commitment. At the end of the day, it is exactly that. It's all about people, our teams, our customers' teams, our suppliers' teams, working together to drive society forward. Everyone online, everyone in the room, thanks for your attention. Thanks for your trust and interest in us. I know that many of them are watching online. i know that many of them are watching online I hope that you excuse me if I turn and talk to them for one moment here. Dear colleagues, it doesn't matter where in the world I am. i hope that you excuse me if i turn and talk to them for one moment here. dear colleagues it doesn't matter where in the world i am I meet dedicated, dynamic, business savvy men, women, colleagues, you. i meet dedicated dynamic business savvy men women colleagues you You are living our brands and values, and I know that you're always ready for the extra mile every day, in every situation, globally, but still extremely locally, and all for the customer. you are living our brands and values and i know that you're always ready for the extra mile every day in every situation globally but still extremely locally and all for the customer I couldn't be more proud of you and what you are doing. i couldn't be more proud of you and what you are doing Thank you for your great commitment. thank you for your great commitment At the end of the day, it is exactly that. at the end of the day it is exactly that It's all about people, our teams, our customers' teams, our suppliers' teams, working together to drive society forward. it's all about people our teams our customers' teams our suppliers' teams working together to drive society forward Everyone online, everyone in the room, thanks for your attention. everyone online everyone in the room thanks for your attention Thanks for your trust and interest in us. thanks for your trust and interest in us We that have been on stage today, we are extremely proud of representing all the colleagues around the world. We are the Volvo Group. Thank you. We that have been on stage today, we are extremely proud of representing all the colleagues around the world. we that have been on stage today we are extremely proud of representing all the colleagues around the world We are the Volvo Group. we are the volvo group Thank you. thank you

Speaker 11: He makes me cry. I think we need to catch our breath a little bit, Martin. He makes me cry. he makes me cry I think we need to catch our breath a little bit, Martin. i think we need to catch our breath a little bit martin

Speaker 13: Yeah, I definitely need to do it. Yeah, I definitely need to do it. yeah i definitely need to do it

Speaker 11: Yes. It's time for the Q&A. Here it comes. Yes. yes It's time for the Q&A. it's time for the q&a Here it comes. here it comes

Speaker 13: We are in an emotional business. We are in an emotional business. we are in an emotional business

Speaker 11: We are. Let's play the bumper. Hold on. I see that there are many. This is good. We have a lot of questions in the room already. We are. we are Let's play the bumper. let's play the bumper Hold on. hold on I see that there are many. i see that there are many This is good. this is good We have a lot of questions in the room already. we have a lot of questions in the room already

Speaker 13: Good. Very good. Good. good Very good. very good

Speaker 11: We're going to finish off with a Q&A. We have a well-known face in the audience, Anders from Investor Relations, who will help us with the questions online. We have Mats and Martin by the table. Of course, feel free to ask any questions to anyone in the management team. We're going to start in the room. You know the drill. You present yourself, and then what? One question each. I mean it this time because it is respect to the rest of the people in the room. The question is, who would like to begin? We're going to finish off with a Q&A. we're going to finish off with a q&a We have a well-known face in the audience, Anders from Investor Relations, who will help us with the questions online. we have a well-known face in the audience anders from investor relations who will help us with the questions online We have Mats and Martin by the table. we have mats and martin by the table Of course, feel free to ask any questions to anyone in the management team. of course feel free to ask any questions to anyone in the management team We're going to start in the room. we're going to start in the room You know the drill. you know the drill You present yourself, and then what? you present yourself and then what One question each. one question each I mean it this time because it is respect to the rest of the people in the room. i mean it this time because it is respect to the rest of the people in the room The question is, who would like to begin? the question is who would like to begin

Speaker 13: Kina, can I just get my glasses so I can see? Kina, can I just get my glasses so I can see? kina can i just get my glasses so i can see

Speaker 11: You can get your glasses. We have a microphone already here on the first row. Please introduce yourself and put the first question. You can get your glasses. you can get your glasses We have a microphone already here on the first row. we have a microphone already here on the first row Please introduce yourself and put the first question. please introduce yourself and put the first question

Speaker 7: Thank you. You made it challenging to just select one. Thank you. thank you You made it challenging to just select one. you made it challenging to just select one

Speaker 11: You can select one only. You can select one only. you can select one only

Speaker 7: It's Daniela Costa from Goldman Sachs. Given it's just one, maybe I'll follow up in the conversation at the very end regarding capital allocation. R&D is not going up, CapEx is not going up. You're growing more given all these initiatives, hopefully, and I guess there's still some room on the margins, at least in construction equipment when we looked at the first chart with the top of the industry and where you are. Is there any room for largeable size inorganic moves to accelerate all of that? What are you going to do further with the cash beyond all that you already do? It's Daniela Costa from Goldman Sachs. it's daniela costa from goldman sachs Given it's just one, maybe I'll follow up in the conversation at the very end regarding capital allocation. given it's just one maybe i'll follow up in the conversation at the very end regarding capital allocation R&D is not going up, CapEx is not going up. r&d is not going up capex is not going up You're growing more given all these initiatives, hopefully, and I guess there's still some room on the margins, at least in construction equipment when we looked at the first chart with the top of the industry and where you are. you're growing more given all these initiatives hopefully and i guess there's still some room on the margins at least in construction equipment when we looked at the first chart with the top of the industry and where you are Is there any room for largeable size inorganic moves to accelerate all of that? is there any room for largeable size inorganic moves to accelerate all of that What are you going to do further with the cash beyond all that you already do? what are you going to do further with the cash beyond all that you already do

Speaker 13: Shall I start? Shall I start? shall i start

Speaker 14: Yes, please. Yes, please. yes please

Speaker 13: Thank you for the question. I think we have been pretty clear in our different type of, if I may say so, inorganic moves over the last couple of years. When Mats, for example, talked a little bit about the Transformational Ventures, on one side, you can say, okay, it's profitability and we want to be transparent. On the other side, you can also say that quite a lot of those are, of course, add-on technology investments that are still about to come on board. We talked about autonomous, obviously, you heard about Nils. We are getting closer to this. We see that in a number of others. The other big part that we see is that it has been good for us to take further steps when it comes to the sales and service network distribution, coming even closer to the customer. Thank you for the question. thank you for the question I think we have been pretty clear in our different type of, if I may say so, inorganic moves over the last couple of years. i think we have been pretty clear in our different type of if i may say so inorganic moves over the last couple of years When Mats, for example, talked a little bit about the Transformational Ventures, on one side, you can say, okay, it's profitability and we want to be transparent. when mats for example talked a little bit about the transformational ventures on one side you can say okay it's profitability and we want to be transparent On the other side, you can also say that quite a lot of those are, of course, add-on technology investments that are still about to come on board. on the other side you can also say that quite a lot of those are of course add-on technology investments that are still about to come on board We talked about autonomous, obviously, you heard about Nils. we talked about autonomous obviously you heard about nils We are getting closer to this. we are getting closer to this We see that in a number of others. we see that in a number of others The other big part that we see is that it has been good for us to take further steps when it comes to the sales and service network distribution, coming even closer to the customer. the other big part that we see is that it has been good for us to take further steps when it comes to the sales and service network distribution coming even closer to the customer It is building further growth opportunities for us, both when it comes to the penetration of market shares in these segments, we can do even more. Truck Centre WA was a great performing dealer. With now the integration into the Volvo Group Australia, we see an accelerated penetration of core segments up in Port Hedland and Pilbara, et cetera, for example, because we need to combine different things and also the service opportunities. We are working very structured around the funnel of opportunities, but with the right balance. That is how I look upon it. It is building further growth opportunities for us, both when it comes to the penetration of market shares in these segments, we can do even more. it is building further growth opportunities for us both when it comes to the penetration of market shares in these segments we can do even more Truck Centre WA was a great performing dealer. truck centre wa was a great performing dealer With now the integration into the Volvo Group Australia, we see an accelerated penetration of core segments up in Port Hedland and Pilbara, et cetera, for example, because we need to combine different things and also the service opportunities. with now the integration into the volvo group australia we see an accelerated penetration of core segments up in port hedland and pilbara et cetera for example because we need to combine different things and also the service opportunities We are working very structured around the funnel of opportunities, but with the right balance. we are working very structured around the funnel of opportunities but with the right balance That is how I look upon it. that is how i look upon it

Speaker 14: No, totally agree. I think that if you're looking at the last 12 months and what we have done, especially when we are talking about the dealership and the service focus with Swecon and then Western Australia, that's the path we are on. I think that's reflecting the priorities going forward in a good way as well. No, totally agree. no totally agree I think that if you're looking at the last 12 months and what we have done, especially when we are talking about the dealership and the service focus with Swecon and then Western Australia, that's the path we are on. i think that if you're looking at the last 12 months and what we have done especially when we are talking about the dealership and the service focus with swecon and then western australia that's the path we are on I think that's reflecting the priorities going forward in a good way as well. i think that's reflecting the priorities going forward in a good way as well

Speaker 13: When you look at other inorganic opportunities, you need really to see where it can add to your competitive Just add units we don't need, because there we have the organic capability of driving that. The one plus one adding just to gain size, it must create value for real and not being dilutive in any sense, so to speak, because then we are just losing focus. When you look at other inorganic opportunities, you need really to see where it can add to your competitive Just add units we don't need, because there we have the organic capability of driving that. when you look at other inorganic opportunities you need really to see where it can add to your competitive just add units we don't need because there we have the organic capability of driving that The one plus one adding just to gain size, it must create value for real and not being dilutive in any sense, so to speak, because then we are just losing focus. the one plus one adding just to gain size it must create value for real and not being dilutive in any sense so to speak because then we are just losing focus

Speaker 11: All right. Thank you so much. Hampus, you have been waving, I'll leave the microphone to you. All right. all right Thank you so much. thank you so much Hampus, you have been waving, I'll leave the microphone to you. hampus you have been waving i'll leave the microphone to you

Speaker 8: Thank you very much. Hampus Engellau, Handelsbanken. One question. Thank you very much. thank you very much Hampus Engellau, Handelsbanken. hampus engellau handelsbanken One question. one question

Speaker 11: Thank you. Thank you. thank you

Speaker 8: Maybe coming back to the market shares. It seems like Mack having good momentum on the market share, while Volvo has a tougher task. If I look historically, it's been very segmented in the long haulage with Freightliner absorbing International's market share when they went into trouble. How do you aim to break into this and capture clients that never have considered the Volvo brand? Thank you. Maybe coming back to the market shares. maybe coming back to the market shares It seems like Mack having good momentum on the market share, while Volvo has a tougher task. it seems like mack having good momentum on the market share while volvo has a tougher task If I look historically, it's been very segmented in the long haulage with Freightliner absorbing International's market share when they went into trouble. if i look historically it's been very segmented in the long haulage with freightliner absorbing international's market share when they went into trouble How do you aim to break into this and capture clients that never have considered the Volvo brand? how do you aim to break into this and capture clients that never have considered the volvo brand Thank you. thank you

Speaker 14: Maybe Roger, if you would like to take that. Maybe Roger, if you would like to take that. maybe roger if you would like to take that

Speaker 19: Thank you for the question. I was into it before. We need to also then be aware about that the long-haul segment in North America has been down more than the construction segment, so to say. As I said, we are now building our capabilities, widening down the product range, which make us more possibilities to grow than the shares in segments that we have not been out in before. The number one thing is, of course, conquest into customers. We are then working a lot with more sales force, with more conquest from a customer point of view. The number of customers that we are taking on now that is new one, is massive. We see now a good increase in terms of order intake. We are pretty confident that this will come in the market share as well. Thank you for the question. thank you for the question I was into it before. i was into it before We need to also then be aware about that the long-haul segment in North America has been down more than the construction segment, so to say. we need to also then be aware about that the long-haul segment in north america has been down more than the construction segment so to say As I said, we are now building our capabilities, widening down the product range, which make us more possibilities to grow than the shares in segments that we have not been out in before. as i said we are now building our capabilities widening down the product range which make us more possibilities to grow than the shares in segments that we have not been out in before The number one thing is, of course, conquest into customers. the number one thing is of course conquest into customers We are then working a lot with more sales force, with more conquest from a customer point of view. we are then working a lot with more sales force with more conquest from a customer point of view The number of customers that we are taking on now that is new one, is massive. the number of customers that we are taking on now that is new one is massive We see now a good increase in terms of order intake. we see now a good increase in terms of order intake We are pretty confident that this will come in the market share as well. we are pretty confident that this will come in the market share as well

Speaker 13: I think also, what Roger said, you showed it so well, and you have been into it. When we look at North America, Hampus, as you know, it's a continent. We really demonstrate also that we are able to do that. We have dealers and markets, as you say, with this. It's all about granularity and driving that. I think the platform is there, so we feel confident about that. I think also, what Roger said, you showed it so well, and you have been into it. i think also what roger said you showed it so well and you have been into it When we look at North America, Hampus, as you know, it's a continent. when we look at north america hampus as you know it's a continent We really demonstrate also that we are able to do that. we really demonstrate also that we are able to do that We have dealers and markets, as you say, with this. we have dealers and markets as you say with this It's all about granularity and driving that. it's all about granularity and driving that I think the platform is there, so we feel confident about that. i think the platform is there so we feel confident about that

Speaker 11: Thank you. We will take one more from first row. Mattias. Thank you. thank you We will take one more from first row. we will take one more from first row Mattias. mattias

Speaker 15: Thank you very much. Mattias Holmberg, DNB Carnegie. As you probably are aware, there's been a lot of discussions and speculations regarding the structure and if there's potential to make construction equipment into a separate entity. I think you've shown a pretty strong proposition with the cost and service network, et cetera, why it makes sense to have it as a group. I still think it would be interesting for us to hear your perspective on the structure, if you want to put the discussion to rest, so to speak, or if there might be merit to this discussion, but perhaps a few years too early. Thank you very much. thank you very much Mattias Holmberg, DNB Carnegie. mattias holmberg dnb carnegie As you probably are aware, there's been a lot of discussions and speculations regarding the structure and if there's potential to make construction equipment into a separate entity. as you probably are aware there's been a lot of discussions and speculations regarding the structure and if there's potential to make construction equipment into a separate entity I think you've shown a pretty strong proposition with the cost and service network, et cetera, why it makes sense to have it as a group. i think you've shown a pretty strong proposition with the cost and service network et cetera why it makes sense to have it as a group I still think it would be interesting for us to hear your perspective on the structure, if you want to put the discussion to rest, so to speak, or if there might be merit to this discussion, but perhaps a few years too early. i still think it would be interesting for us to hear your perspective on the structure if you want to put the discussion to rest so to speak or if there might be merit to this discussion but perhaps a few years too early

Speaker 13: I think, Mattias, I think this is, of course, always a very important discussion when it comes to group like ours, to have a reflection on how does the portfolio look like. Do you have enough, so to speak, common capabilities, access to defend the structure that looks like Volvo? I think both when it comes to how we have been developing the group, the different business areas, the development, both in resilience and in growth opportunities, but also finding the right combination of, on one side, common capabilities of scale or technology, or industrial and service network opportunities that really is a shared and good opportunity, while at the same time have enough decentralizations you are not losing speed, focus, and accountability and ownership. I think, Mattias, I think this is, of course, always a very important discussion when it comes to group like ours, to have a reflection on how does the portfolio look like. i think mattias i think this is of course always a very important discussion when it comes to group like ours to have a reflection on how does the portfolio look like Do you have enough, so to speak, common capabilities, access to defend the structure that looks like Volvo? do you have enough so to speak common capabilities access to defend the structure that looks like volvo I think both when it comes to how we have been developing the group, the different business areas, the development, both in resilience and in growth opportunities, but also finding the right combination of, on one side, common capabilities of scale or technology, or industrial and service network opportunities that really is a shared and good opportunity, while at the same time have enough decentralizations you are not losing speed, focus, and accountability and ownership. i think both when it comes to how we have been developing the group the different business areas the development both in resilience and in growth opportunities but also finding the right combination of on one side common capabilities of scale or technology or industrial and service network opportunities that really is a shared and good opportunity while at the same time have enough decentralizations you are not losing speed focus and accountability and ownership We have done a number of moves where we have said that these parts of the business are not fitting good enough into the group, then it's better for them to develop on a standalone or in another context. What we see now, and I think that has been demonstrated, there are in addition to the journey that we've done, I think also market and segments reasons to really drive this even further. Defense, mining, power generation, quarries, construction as well, the core construction. That's the reason also why we, in certain parts of the business now, are combining the business area set up also with the segment set up, we even further can drive the opportunities across the group. We are happy with the structure that we have. I think also the outcome has shown that this model is working. We have done a number of moves where we have said that these parts of the business are not fitting good enough into the group, then it's better for them to develop on a standalone or in another context. we have done a number of moves where we have said that these parts of the business are not fitting good enough into the group then it's better for them to develop on a standalone or in another context What we see now, and I think that has been demonstrated, there are in addition to the journey that we've done, I think also market and segments reasons to really drive this even further. what we see now and i think that has been demonstrated there are in addition to the journey that we've done i think also market and segments reasons to really drive this even further Defense, mining, power generation, quarries, construction as well, the core construction. defense mining power generation quarries construction as well the core construction That's the reason also why we, in certain parts of the business now, are combining the business area set up also with the segment set up, we even further can drive the opportunities across the group. that's the reason also why we in certain parts of the business now are combining the business area set up also with the segment set up we even further can drive the opportunities across the group We are happy with the structure that we have. we are happy with the structure that we have I think also the outcome has shown that this model is working. i think also the outcome has shown that this model is working

Speaker 11: Very good. We will take one more from the room. Agnieszka. Very good. very good We will take one more from the room. we will take one more from the room Agnieszka. agnieszka

Speaker 1: Thank you. Agnieszka Vilela from Nordea. You gave us a very good glimpse into the growth ambitions and kind of revenue pools for your different businesses. Would you consider disclosing more formalized growth and EBIT margin targets for your business areas to improve transparency and accountability from analysts and investors? Thank you. thank you Agnieszka Vilela from Nordea. agnieszka vilela from nordea You gave us a very good glimpse into the growth ambitions and kind of revenue pools for your different businesses. you gave us a very good glimpse into the growth ambitions and kind of revenue pools for your different businesses Would you consider disclosing more formalized growth and EBIT margin targets for your business areas to improve transparency and accountability from analysts and investors? would you consider disclosing more formalized growth and ebit margin targets for your business areas to improve transparency and accountability from analysts and investors

Speaker 14: No, we have the segment reporting. We have and also when it comes to the financial targets. That might develop over time, depending on the development of the different segments and so forth. For now, we are happy with the way we are presenting the group and the kind of the key ratios and the KPIs we have. No, we have the segment reporting. no we have the segment reporting We have and also when it comes to the financial targets. we have and also when it comes to the financial targets That might develop over time, depending on the development of the different segments and so forth. that might develop over time depending on the development of the different segments and so forth For now, we are happy with the way we are presenting the group and the kind of the key ratios and the KPIs we have. for now we are happy with the way we are presenting the group and the kind of the key ratios and the kpis we have

Speaker 11: Very good. I think it's time for the first question online. Anders, would you mind? Very good. very good I think it's time for the first question online. i think it's time for the first question online Anders, would you mind? anders would you mind

Speaker 2: Sure. You have recently acquired truck dealership in Western Australia and Sweden within Volvo CE, are talking about regional expansion to get closer to customers. In which regions do you aim to expand in this space? Sure. sure You have recently acquired truck dealership in Western Australia and Sweden within Volvo CE, are talking about regional expansion to get closer to customers. you have recently acquired truck dealership in western australia and sweden within volvo ce are talking about regional expansion to get closer to customers In which regions do you aim to expand in this space? in which regions do you aim to expand in this space

Speaker 13: Yeah. First and foremost, it's important for us to come back to what Roger said. We still see that it's a good combination of having a mix of. When we have high-performing, if I may say so, private dealer partners, that is also, of course, a very good model. We see due to different aspects that there are reasons for us. It could be succession. It could be that we really want to focus even more on a specific segment, a specific geography, where further add-on investments are being made. What has really changed over the last, I should say five, 10 years, is our own operating performance in our retail network. Both the private and our captive network. When it comes to, of course, the financial performance, but also when it comes to driving growth, driving services, driving the entrepreneurial spirit, the decentralization. Yeah. yeah First and foremost, it's important for us to come back to what Roger said. first and foremost it's important for us to come back to what roger said We still see that it's a good combination of having a mix of. we still see that it's a good combination of having a mix of When we have high-performing, if I may say so, private dealer partners, that is also, of course, a very good model. when we have high-performing if i may say so private dealer partners that is also of course a very good model We see due to different aspects that there are reasons for us. we see due to different aspects that there are reasons for us It could be succession. it could be succession It could be that we really want to focus even more on a specific segment, a specific geography, where further add-on investments are being made. it could be that we really want to focus even more on a specific segment a specific geography where further add-on investments are being made What has really changed over the last, I should say five, 10 years, is our own operating performance in our retail network. what has really changed over the last i should say five 10 years is our own operating performance in our retail network Both the private and our captive network. both the private and our captive network When it comes to, of course, the financial performance, but also when it comes to driving growth, driving services, driving the entrepreneurial spirit, the decentralization. when it comes to of course the financial performance but also when it comes to driving growth driving services driving the entrepreneurial spirit the decentralization That combination with the fact that we now have business that are accretive to our margins when it comes to the retail, since it's in the same flow and even more recurring business, we see that as a good opportunity. We will take that step by step. Coming back to what Mats said, strong financial position, drive innovation and growth opportunities, also make sure that is very attractive, by the way, with the return on capital that we have demonstrated for the investors, on top of that, dividend opportunities. This is a strategic area. We are coming closer to the customers. We can drive core segments even further, I should argue the last four, five, six acquisitions that we have done have demonstrated that it's not only possible, it's very positive having this bolt-on, add-on strategy when it comes to the distribution. That combination with the fact that we now have business that are accretive to our margins when it comes to the retail, since it's in the same flow and even more recurring business, we see that as a good opportunity. that combination with the fact that we now have business that are accretive to our margins when it comes to the retail since it's in the same flow and even more recurring business we see that as a good opportunity We will take that step by step. we will take that step by step Coming back to what Mats said, strong financial position, drive innovation and growth opportunities, also make sure that is very attractive, by the way, with the return on capital that we have demonstrated for the investors, on top of that, dividend opportunities. coming back to what mats said strong financial position drive innovation and growth opportunities also make sure that is very attractive by the way with the return on capital that we have demonstrated for the investors on top of that dividend opportunities This is a strategic area. this is a strategic area We are coming closer to the customers. we are coming closer to the customers We can drive core segments even further, I should argue the last four, five, six acquisitions that we have done have demonstrated that it's not only possible, it's very positive having this bolt-on, add-on strategy when it comes to the distribution. we can drive core segments even further i should argue the last four five six acquisitions that we have done have demonstrated that it's not only possible it's very positive having this bolt-on add-on strategy when it comes to the distribution

Speaker 14: Yeah. Yeah. yeah

Speaker 11: Very good. Let's see if we had any questions on this side of the room. Very good. very good Let's see if we had any questions on this side of the room. let's see if we had any questions on this side of the room

Speaker 13: Yes. Yes. yes

Speaker 11: Any hands up? No. I'm moving over to this side of the room. Here we have a few. We can start with. Any hands up? any hands up No. no I'm moving over to this side of the room. i'm moving over to this side of the room Here we have a few. here we have a few We can start with. we can start with

Speaker 13: A lot of hands. Good. A lot of hands. a lot of hands Good. good

Speaker 11: We'll start with you. Let's see. We need a microphone. Come. We'll start with you. we'll start with you Let's see. let's see We need a microphone. we need a microphone Come. come

Speaker 6: Coming from both sides. Coming from both sides. coming from both sides

Speaker 11: They're coming from both sides. Well, you're a popular guy. They're coming from both sides. they're coming from both sides Well, you're a popular guy. well you're a popular guy

Speaker 6: I can have two microphones. I can have two microphones. i can have two microphones

Speaker 11: Yeah. Yeah. yeah

Speaker 6: Björn, Danske Bank. I keep on asking about the bolt-on acquisition. Would it be possible to add 1% or so to growth? If you can give some color on the potential for acquiring companies like Swecon. That drives growth and also resilience, of course. Björn, Danske Bank. björn danske bank I keep on asking about the bolt-on acquisition. i keep on asking about the bolt-on acquisition Would it be possible to add 1% or so to growth? would it be possible to add 1% or so to growth If you can give some color on the potential for acquiring companies like Swecon. if you can give some color on the potential for acquiring companies like swecon That drives growth and also resilience, of course. that drives growth and also resilience of course

Speaker 13: No, as you say, Björn, I think there are a number of things. Number one, it is also from a group perspective, further driving the resilience when it comes to recurring revenues. That's obvious because it's both the traditional, if I may say, the core businesses of workshop hours and parts. More and more solution requires also investment for the retail network when it comes to electric mobility, when it comes to autonomous, when it comes to different other type of digital capabilities, et cetera. It is important for our competitive position over time. As I said, when we have done acquisitions, and we have a good pipeline and funnel, we see that we are adding growth, both when it comes to the products and the services, and increasing that. No, as you say, Björn, I think there are a number of things. no as you say björn i think there are a number of things Number one, it is also from a group perspective, further driving the resilience when it comes to recurring revenues. number one it is also from a group perspective further driving the resilience when it comes to recurring revenues That's obvious because it's both the traditional, if I may say, the core businesses of workshop hours and parts. that's obvious because it's both the traditional if i may say the core businesses of workshop hours and parts More and more solution requires also investment for the retail network when it comes to electric mobility, when it comes to autonomous, when it comes to different other type of digital capabilities, et cetera. more and more solution requires also investment for the retail network when it comes to electric mobility when it comes to autonomous when it comes to different other type of digital capabilities et cetera It is important for our competitive position over time. it is important for our competitive position over time As I said, when we have done acquisitions, and we have a good pipeline and funnel, we see that we are adding growth, both when it comes to the products and the services, and increasing that. as i said when we have done acquisitions and we have a good pipeline and funnel we see that we are adding growth both when it comes to the products and the services and increasing that I will not give a percentage, it's both growth, it's the competitive set, because you're even closer to the customer, and it's resilience for sure. I think it's very good for the investors if I put it like that. I will not give a percentage, it's both growth, it's the competitive set, because you're even closer to the customer, and it's resilience for sure. i will not give a percentage it's both growth it's the competitive set because you're even closer to the customer and it's resilience for sure I think it's very good for the investors if I put it like that. i think it's very good for the investors if i put it like that

Speaker 11: Very good. We're going to continue on this side of the room. Right here. Very good. very good We're going to continue on this side of the room. we're going to continue on this side of the room Right here. right here

Speaker 17: Hi. Thank you. It's Nicolai from Deutsche Bank. Also one question on your corporate structure, and this time it's on Penta. Great journey over the last years. Now you're trying to double revenues. Still from a capital market perspective, Penta is just dwarfed by trucks and construction in terms of earnings. Any ideas here to separate this business, just put them on a spotlight that we see somewhat momentum in data centers and power generation? Hi. hi Thank you. thank you It's Nicolai from Deutsche Bank. it's nicolai from deutsche bank Also one question on your corporate structure, and this time it's on Penta. also one question on your corporate structure and this time it's on penta Great journey over the last years. great journey over the last years Now you're trying to double revenues. now you're trying to double revenues Still from a capital market perspective, Penta is just dwarfed by trucks and construction in terms of earnings. still from a capital market perspective penta is just dwarfed by trucks and construction in terms of earnings Any ideas here to separate this business, just put them on a spotlight that we see somewhat momentum in data centers and power generation? any ideas here to separate this business just put them on a spotlight that we see somewhat momentum in data centers and power generation

Speaker 13: No. I think again, we are crystallizing that business very well. I'm very happy that you brought it up, Nicolai, also because it's another jewel in the crown. The growth potential is obvious. I think we have, and the team at Penta, together with many colleagues in the Volvo Group, have demonstrated that driving this now segment by segment, of course, the marine that we thought was rather full-leased, but we are unleashing, so to speak, further potential now with the bigger vessels, et cetera. When it comes to industrial, it's a huge potential. Since we are still in a very high level of growth mode there now, also when it comes to the service business. No. no I think again, we are crystallizing that business very well. i think again we are crystallizing that business very well I'm very happy that you brought it up, Nicolai, also because it's another jewel in the crown. i'm very happy that you brought it up nicolai also because it's another jewel in the crown The growth potential is obvious. the growth potential is obvious I think we have, and the team at Penta, together with many colleagues in the Volvo Group, have demonstrated that driving this now segment by segment, of course, the marine that we thought was rather full-leased, but we are unleashing, so to speak, further potential now with the bigger vessels, et cetera. i think we have and the team at penta together with many colleagues in the volvo group have demonstrated that driving this now segment by segment of course the marine that we thought was rather full-leased but we are unleashing so to speak further potential now with the bigger vessels et cetera When it comes to industrial, it's a huge potential. when it comes to industrial it's a huge potential Since we are still in a very high level of growth mode there now, also when it comes to the service business. since we are still in a very high level of growth mode there now also when it comes to the service business When you start to think about, as Anna described also, the core elements in the backbone, and then adding on the core capabilities of Volvo Penta, and then providing the solution. To start to do a separation with a lot of complications will just make the focus put in the wrong place. We are disclosing, everyone can You are good in calculating. See how much that will add to the group's potential moving forward. When you start to think about, as Anna described also, the core elements in the backbone, and then adding on the core capabilities of Volvo Penta, and then providing the solution. when you start to think about as anna described also the core elements in the backbone and then adding on the core capabilities of volvo penta and then providing the solution To start to do a separation with a lot of complications will just make the focus put in the wrong place. to start to do a separation with a lot of complications will just make the focus put in the wrong place We are disclosing, everyone can You are good in calculating. we are disclosing everyone can you are good in calculating See how much that will add to the group's potential moving forward. see how much that will add to the group's potential moving forward

Speaker 14: Yeah, we are quite granular when it comes to information. Yeah, we are quite granular when it comes to information. yeah we are quite granular when it comes to information Very granular Very granular very granular for Penta. Anna shared a lot today when it comes to the targets going forward as well, Dan. I think you have quite a lot of information in order to visualize the value we have in Penta. for Penta. for penta Anna shared a lot today when it comes to the targets going forward as well, Dan. anna shared a lot today when it comes to the targets going forward as well dan I think you have quite a lot of information in order to visualize the value we have in Penta. i think you have quite a lot of information in order to visualize the value we have in penta

Speaker 13: Great opportunities. If you think about the I've been involved myself together with Anna and the teams, because I'm really interested in this field with the whole energy transition. When we look at now, the innovation, not only when it comes to the technology innovation, but also when it comes to the business model innovation, availability, scale, when it comes to digital capabilities or electronic capabilities to synchronize all these different type of engine sets, not only for backup. I'm convinced that we will come in also to the prime side of thinking. If you have 100 engines, and you have a smart round-robin system also of the maintenance schemes. Great opportunities. great opportunities If you think about the I've been involved myself together with Anna and the teams, because I'm really interested in this field with the whole energy transition. if you think about the i've been involved myself together with anna and the teams because i'm really interested in this field with the whole energy transition When we look at now, the innovation, not only when it comes to the technology innovation, but also when it comes to the business model innovation, availability, scale, when it comes to digital capabilities or electronic capabilities to synchronize all these different type of engine sets, not only for backup. when we look at now the innovation not only when it comes to the technology innovation but also when it comes to the business model innovation availability scale when it comes to digital capabilities or electronic capabilities to synchronize all these different type of engine sets not only for backup I'm convinced that we will come in also to the prime side of thinking. i'm convinced that we will come in also to the prime side of thinking If you have 100 engines, and you have a smart round-robin system also of the maintenance schemes. if you have 100 engines and you have a smart round-robin system also of the maintenance schemes This is an outstanding solution because with the 16 seven-liter engines, then if you even drive it on natural or biogas, et cetera, the sweet spot of such a generation when it comes to fuel efficiency and energy efficiency is unbeatable. It's about the synchronization and with the capabilities we're sitting on today when it comes to control systems, et cetera, that will of course come as well. Here is great opportunities. This is an outstanding solution because with the 16 seven-liter engines, then if you even drive it on natural or biogas, et cetera, the sweet spot of such a generation when it comes to fuel efficiency and energy efficiency is unbeatable. this is an outstanding solution because with the 16 seven-liter engines then if you even drive it on natural or biogas et cetera the sweet spot of such a generation when it comes to fuel efficiency and energy efficiency is unbeatable It's about the synchronization and with the capabilities we're sitting on today when it comes to control systems, et cetera, that will of course come as well. it's about the synchronization and with the capabilities we're sitting on today when it comes to control systems et cetera that will of course come as well Here is great opportunities. here is great opportunities

Speaker 11: Thank you, Martin. I think we can conclude that divestment rumors, it's a no. Thank you, Martin. thank you martin I think we can conclude that divestment rumors, it's a no. i think we can conclude that divestment rumors it's a no

Speaker 13: Again, it's all about delivery. Again, it's all about delivery. again it's all about delivery That I also can assure you. The day we feel that being part of this group is hampering someone from driving resilience, growth, customer satisfaction, and outcomes, then of course we should consider a different structure. We feel really good, and we have a lot of discussions in the team. We feel that we have a good structure that gives good outcome. That I also can assure you. that i also can assure you The day we feel that being part of this group is hampering someone from driving resilience, growth, customer satisfaction, and outcomes, then of course we should consider a different structure. the day we feel that being part of this group is hampering someone from driving resilience growth customer satisfaction and outcomes then of course we should consider a different structure We feel really good, and we have a lot of discussions in the team. we feel really good and we have a lot of discussions in the team We feel that we have a good structure that gives good outcome. we feel that we have a good structure that gives good outcome

Speaker 11: A clear no. Thank you very much. Let's continue in the middle of the room, over there. A clear no. a clear no Thank you very much. thank you very much Let's continue in the middle of the room, over there. let's continue in the middle of the room over there

Speaker 9: Hi there. Harry Martin from Bernstein. I wanted to ask about the autonomous trucking business, and the $3 billion revenue target. That would already be quite a sizable number compared to the size of the U.S. business today. Likely implies a higher market share of that business than that 25% target as well. I'd love to understand some of the assumptions behind that target, when it comes to the number of trucks in operation, the market shares, the revenue model, and why Volvo as a company should outperform in what is a very competitive end market. Hi there. hi there Harry Martin from Bernstein. harry martin from bernstein I wanted to ask about the autonomous trucking business, and the $3 billion revenue target. i wanted to ask about the autonomous trucking business and the $3 billion revenue target That would already be quite a sizable number compared to the size of the U.S. business today. that would already be quite a sizable number compared to the size of the u.s business today Likely implies a higher market share of that business than that 25% target as well. likely implies a higher market share of that business than that 25% target as well I'd love to understand some of the assumptions behind that target, when it comes to the number of trucks in operation, the market shares, the revenue model, and why Volvo as a company should outperform in what is a very competitive end market. i'd love to understand some of the assumptions behind that target when it comes to the number of trucks in operation the market shares the revenue model and why volvo as a company should outperform in what is a very competitive end market

Speaker 13: Would you like to start, Nils? Would you like to start, Nils? would you like to start nils

Speaker 11: Just step forward and it will work. Just step forward and it will work. just step forward and it will work

Speaker 18: Okay. Okay. okay

Speaker 13: It's magic. It's magic. it's magic

Speaker 18: First of all, as I said, it is a very large addressable market, and if you look at the competition, then you need to distinguish a little bit what is the role of the OEM, what is the role of the technology partners. We have an approach where we work with multiple technology partners, bringing the virtual driver technology, which we then integrate, and then we go to market with the Volvo brand, with Volvo Autonomous Solutions. We are the ones which are generating the revenues, and then, of course, in the back we are having a certain split of the revenues which go to us versus respectively what will go to our technology partner. First of all, as I said, it is a very large addressable market, and if you look at the competition, then you need to distinguish a little bit what is the role of the OEM, what is the role of the technology partners. first of all as i said it is a very large addressable market and if you look at the competition then you need to distinguish a little bit what is the role of the oem what is the role of the technology partners We have an approach where we work with multiple technology partners, bringing the virtual driver technology, which we then integrate, and then we go to market with the Volvo brand, with Volvo Autonomous Solutions. we have an approach where we work with multiple technology partners bringing the virtual driver technology which we then integrate and then we go to market with the volvo brand with volvo autonomous solutions We are the ones which are generating the revenues, and then, of course, in the back we are having a certain split of the revenues which go to us versus respectively what will go to our technology partner. we are the ones which are generating the revenues and then of course in the back we are having a certain split of the revenues which go to us versus respectively what will go to our technology partner What is very important to understand is that in order to bring that technology to the market, you need to understand how the market is operating today and how you bring that technology to it. That's why the business model is so crucial and so important. This go-to-market strategy, which we have, where we start with transport as a service, here we're really making it easy for the customers to benefit from autonomy without having the hassle of operating it. Over time, we will add more and different business models where our role will be smaller, but nevertheless, it will still be service business, which will contribute overproportional to the growth we have in the service business, and particularly in the margins. What is very important to understand is that in order to bring that technology to the market, you need to understand how the market is operating today and how you bring that technology to it. what is very important to understand is that in order to bring that technology to the market you need to understand how the market is operating today and how you bring that technology to it That's why the business model is so crucial and so important. that's why the business model is so crucial and so important This go-to-market strategy, which we have, where we start with transport as a service, here we're really making it easy for the customers to benefit from autonomy without having the hassle of operating it. this go-to-market strategy which we have where we start with transport as a service here we're really making it easy for the customers to benefit from autonomy without having the hassle of operating it Over time, we will add more and different business models where our role will be smaller, but nevertheless, it will still be service business, which will contribute overproportional to the growth we have in the service business, and particularly in the margins. over time we will add more and different business models where our role will be smaller but nevertheless it will still be service business which will contribute overproportional to the growth we have in the service business and particularly in the margins Of course, I'd be very happy if with autonomous solutions, we over proportionally help the growth of the market share of Volvo Trucks in the U.S. Roger will support me there. Of course, I'd be very happy if with autonomous solutions, we over proportionally help the growth of the market share of Volvo Trucks in the U.S. of course i'd be very happy if with autonomous solutions we over proportionally help the growth of the market share of volvo trucks in the u.s Roger will support me there. roger will support me there

Speaker 11: How are we going there? How are we going there? how are we going there

Speaker 13: Absolutely. If you look upon it also, one important thing, by the way, is of course the decision engine, the virtual driver. It's also, so to speak, the redundant and autonomous capabilities of the whole system, and that we have been working really on. We have actually had discussions, how much should we disclose on this, et cetera, in order to, from a capital allocation standpoint, et cetera. We have said it's so important that we are actually taking that in our Transformational Ventures, taking a little bit of heat that we are not disclosing it, because we wanted to stay ahead of the curve and do these investments, both in the product but also in the ecosystem that Nils have been explaining. Now we are really excited for 2027. That coincides with our 100-year celebration also. Absolutely. absolutely If you look upon it also, one important thing, by the way, is of course the decision engine, the virtual driver. if you look upon it also one important thing by the way is of course the decision engine the virtual driver It's also, so to speak, the redundant and autonomous capabilities of the whole system, and that we have been working really on. it's also so to speak the redundant and autonomous capabilities of the whole system and that we have been working really on We have actually had discussions, how much should we disclose on this, et cetera, in order to, from a capital allocation standpoint, et cetera. we have actually had discussions how much should we disclose on this et cetera in order to from a capital allocation standpoint et cetera We have said it's so important that we are actually taking that in our Transformational Ventures, taking a little bit of heat that we are not disclosing it, because we wanted to stay ahead of the curve and do these investments, both in the product but also in the ecosystem that Nils have been explaining. we have said it's so important that we are actually taking that in our transformational ventures taking a little bit of heat that we are not disclosing it because we wanted to stay ahead of the curve and do these investments both in the product but also in the ecosystem that nils have been explaining Now we are really excited for 2027. now we are really excited for 2027 That coincides with our 100-year celebration also. that coincides with our 100-year celebration also We're excited about that because that will be a milestone. We're excited about that because that will be a milestone. we're excited about that because that will be a milestone

Speaker 11: Very good. Thank you so much. We have a gentleman over here. Very good. very good Thank you so much. thank you so much We have a gentleman over here. we have a gentleman over here

Speaker 12: Thank you. Klas at Citi. I had one short term and one long term, but it's only one question, so it's been a lot. Thank you. thank you Klas at Citi. klas at citi I had one short term and one long term, but it's only one question, so it's been a lot. i had one short term and one long term but it's only one question so it's been a lot

Speaker 13: You will incorporate the two of them in one now. You will incorporate the two of them in one now. you will incorporate the two of them in one now

Speaker 12: I'm going to go with the one on short term. Mats, you said that the cost inflation is going to start to bite from the second quarter. We have some hopefully positive offsets. We have the North America volume ramp. You are going to see from mid-May that the under absorption is gradually going to start to fade. You're raising prices. I'm just curious, first of all, on the cost side, has that got worse than what you planned for? On the other things, North America volume is very strong, are you going to have a bigger boost from utilization than you originally planned for? Thank you. I'm going to go with the one on short term. i'm going to go with the one on short term Mats, you said that the cost inflation is going to start to bite from the second quarter. mats you said that the cost inflation is going to start to bite from the second quarter We have some hopefully positive offsets. we have some hopefully positive offsets We have the North America volume ramp. we have the north america volume ramp You are going to see from mid-May that the under absorption is gradually going to start to fade. you are going to see from mid-may that the under absorption is gradually going to start to fade You're raising prices. you're raising prices I'm just curious, first of all, on the cost side, has that got worse than what you planned for? i'm just curious first of all on the cost side has that got worse than what you planned for On the other things, North America volume is very strong, are you going to have a bigger boost from utilization than you originally planned for? on the other things north america volume is very strong are you going to have a bigger boost from utilization than you originally planned for Thank you. thank you

Speaker 14: I will not give a margin guidance for the quarter- I will not give a margin guidance for the quarter- i will not give a margin guidance for the quarter-

Speaker 12: I know, you never do that I know, you never do that i know you never do that

Speaker 14: Talking about the different components. For sure, looking at the kind of the effect from the Middle East crisis, especially on the freight side, we will have higher cost than anticipated in the second quarter driven by that, in combination to some extent with raw materials as well. That is a kind of a net negative on that side. Dan, you're right. We have a good trend and a good momentum in North America with a higher order intake. We are in balance when it comes to our industrial system than starting May. Now we are increasing capacity, as Stephen talked about as well. That will help us going forward, so to speak, Dan. Please remember, in the second quarter, we are talking May, it's only one month left, that will be a gradual kind of improvement. Talking about the different components. talking about the different components For sure, looking at the kind of the effect from the Middle East crisis, especially on the freight side, we will have higher cost than anticipated in the second quarter driven by that, in combination to some extent with raw materials as well. for sure looking at the kind of the effect from the middle east crisis especially on the freight side we will have higher cost than anticipated in the second quarter driven by that in combination to some extent with raw materials as well That is a kind of a net negative on that side. Dan, you're right. that is a kind of a net negative on that side. dan you're right We have a good trend and a good momentum in North America with a higher order intake. we have a good trend and a good momentum in north america with a higher order intake We are in balance when it comes to our industrial system than starting May. we are in balance when it comes to our industrial system than starting may Now we are increasing capacity, as Stephen talked about as well. now we are increasing capacity as stephen talked about as well That will help us going forward, so to speak, Dan. that will help us going forward so to speak dan Please remember, in the second quarter, we are talking May, it's only one month left, that will be a gradual kind of improvement. please remember in the second quarter we are talking may it's only one month left that will be a gradual kind of improvement

Speaker 19: Utilization is good, as Mats alluded to also in the trading update. We see that in the service business also. I think that is holding up well, and that is, of course, very encouraging to see because eventually, when customers are active, that is good for everyone. That is still holding on, I'd say. Utilization is good, as Mats alluded to also in the trading update. utilization is good as mats alluded to also in the trading update We see that in the service business also. we see that in the service business also I think that is holding up well, and that is, of course, very encouraging to see because eventually, when customers are active, that is good for everyone. i think that is holding up well and that is of course very encouraging to see because eventually when customers are active that is good for everyone That is still holding on, I'd say. that is still holding on i'd say

Speaker 14: As previously communicated, when it comes to the service business, and I think Roger was underlying that as well, Dan, with the population we have out there and getting into the sweet spot in terms of the aging of the fleet as well, that's also driving the service business in terms of parts consumption and so forth, also being positive. That's nothing new, Dan. We talked about that when we released the first quarter as well. As previously communicated, when it comes to the service business, and I think Roger was underlying that as well, Dan, with the population we have out there and getting into the sweet spot in terms of the aging of the fleet as well, that's also driving the service business in terms of parts consumption and so forth, also being positive. as previously communicated when it comes to the service business and i think roger was underlying that as well dan with the population we have out there and getting into the sweet spot in terms of the aging of the fleet as well that's also driving the service business in terms of parts consumption and so forth also being positive That's nothing new, Dan. that's nothing new dan We talked about that when we released the first quarter as well. we talked about that when we released the first quarter as well

Speaker 12: Pricing higher second quarter? Pricing higher second quarter? pricing higher second quarter

Speaker 11: That was the second question. Without a microphone, that has to be super quick because we have one more online before we wrap up. Would you like to answer? That was the second question. that was the second question Without a microphone, that has to be super quick because we have one more online before we wrap up. without a microphone that has to be super quick because we have one more online before we wrap up Would you like to answer? would you like to answer

Speaker 14: No changes from what we have said previously when it comes to the pricing environment. No changes from what we have said previously when it comes to the pricing environment. no changes from what we have said previously when it comes to the pricing environment

Speaker 11: Thank you, Klas. Anders? Thank you, Klas. thank you klas Anders? anders

Speaker 2: Yeah, sure. I have a question from Mats Liss at Kepler Cheuvreux. Following the SDLG investment, Volvo has reduced its exposure to China. Do you see a risk of being underexposed to growth opportunities in one of the world's largest truck and construction equipment markets? Yeah, sure. yeah sure I have a question from Mats Liss at Kepler Cheuvreux. i have a question from mats liss at kepler cheuvreux Following the SDLG investment, Volvo has reduced its exposure to China. following the sdlg investment volvo has reduced its exposure to china Do you see a risk of being underexposed to growth opportunities in one of the world's largest truck and construction equipment markets? do you see a risk of being underexposed to growth opportunities in one of the world's largest truck and construction equipment markets

Speaker 13: Obviously, that specific exposure has gone away. There are two elements of this question, I think, that is important to bear in mind. One is the market opportunity in itself. There, of course, we are continuing to drive the performance development of Dongfeng Commercial Vehicles, where we have the venture. We are also putting a lot of focus now in our core segments also with both Volvo Construction Equipment and Volvo Trucks when it comes to China. The other dimension that is very important, that's the reason why we are also very active in China, is also to continuously tap into that ecosystem when it comes to speed and innovation, alongside other opportunities that we have, both China for China, as I talked about India for India, but also China for the world, where that matters, so to speak. We are active. Obviously, that specific exposure has gone away. obviously that specific exposure has gone away There are two elements of this question, I think, that is important to bear in mind. there are two elements of this question i think that is important to bear in mind One is the market opportunity in itself. one is the market opportunity in itself There, of course, we are continuing to drive the performance development of Dongfeng Commercial Vehicles, where we have the venture. there of course we are continuing to drive the performance development of dongfeng commercial vehicles where we have the venture We are also putting a lot of focus now in our core segments also with both Volvo Construction Equipment and Volvo Trucks when it comes to China. we are also putting a lot of focus now in our core segments also with both volvo construction equipment and volvo trucks when it comes to china The other dimension that is very important, that's the reason why we are also very active in China, is also to continuously tap into that ecosystem when it comes to speed and innovation, alongside other opportunities that we have, both China for China, as I talked about India for India, but also China for the world, where that matters, so to speak. the other dimension that is very important that's the reason why we are also very active in china is also to continuously tap into that ecosystem when it comes to speed and innovation alongside other opportunities that we have both china for china as i talked about india for india but also china for the world where that matters so to speak We are active. we are active We have a strong footprint in these different dimensions, and it will continue to be so. We have a strong footprint in these different dimensions, and it will continue to be so. we have a strong footprint in these different dimensions and it will continue to be so

Speaker 11: Mm-hmm. Gentlemen, time is flying when having fun. That was the final question. Mm-hmm. mm-hmm Gentlemen, time is flying when having fun. gentlemen time is flying when having fun That was the final question. that was the final question

Speaker 13: Okay. Okay. okay

Speaker 11: Any final words from you, Martin, before we wrap up? Any final words from you, Martin, before we wrap up? any final words from you martin before we wrap up

Speaker 13: No, not more than we will be available the whole afternoon, obviously, from management. Take the opportunity to just grab us, discuss, put questions, or provoke us. Do whatever you like as long as we can do it together. We will, of course, also have more in store now for the afternoon. That, we'll talk about, but we are around for further conversations for everyone. No, not more than we will be available the whole afternoon, obviously, from management. no not more than we will be available the whole afternoon obviously from management Take the opportunity to just grab us, discuss, put questions, or provoke us. take the opportunity to just grab us discuss put questions or provoke us Do whatever you like as long as we can do it together. do whatever you like as long as we can do it together We will, of course, also have more in store now for the afternoon. we will of course also have more in store now for the afternoon That, we'll talk about, but we are around for further conversations for everyone. that we'll talk about but we are around for further conversations for everyone

Speaker 11: Absolutely. This wraps up part of the Capital Markets Day. As Martin said, for those of you who are here in Eskilstuna, there will be plenty of opportunities to ask more questions. All materials will, of course, be available online, and there you find the contact information to our Investor Relations Department if you have further questions. Thank you so much, everyone, for joining us today here in- Absolutely. absolutely This wraps up part of the Capital Markets Day. this wraps up part of the capital markets day As Martin said, for those of you who are here in Eskilstuna, there will be plenty of opportunities to ask more questions. as martin said for those of you who are here in eskilstuna there will be plenty of opportunities to ask more questions All materials will, of course, be available online, and there you find the contact information to our Investor Relations Department if you have further questions. all materials will of course be available online and there you find the contact information to our investor relations department if you have further questions Thank you so much, everyone, for joining us today here in- thank you so much everyone for joining us today here in-

Speaker 13: Thank the teams also that have- Thank the teams also that have- thank the teams also that have-

Speaker 11: I'm coming to that. I'm coming to that. i'm coming to that

Speaker 13: Sorry. Sorry. sorry

Speaker 11: He's hopeless. You can take it. He's hopeless. he's hopeless You can take it. you can take it

Speaker 13: Snap. Snap. snap

Speaker 11: Thank the team. Come on. Thank the team. thank the team Come on. come on

Speaker 13: No, thanks to the team that have arranged that. No, thanks to the team that have arranged that. no thanks to the team that have arranged that

Speaker 11: Thanks to the team. It's a big effort putting a day like this together. Thanks to the team. thanks to the team It's a big effort putting a day like this together. it's a big effort putting a day like this together

Speaker 13: Thank you, Kina. Thank you, Kina. thank you kina

Speaker 11: As you can imagine. Thank you, Martin. Again, thanks for everyone in the room. Please stay seated because Melker has some important information. For all of you who have been watching online, thank you so much for joining us today. I hope that we have been able to keep you glued to the screen. Bye-bye. As you can imagine. as you can imagine Thank you, Martin. thank you martin Again, thanks for everyone in the room. again thanks for everyone in the room Please stay seated because Melker has some important information. please stay seated because melker has some important information For all of you who have been watching online, thank you so much for joining us today. for all of you who have been watching online thank you so much for joining us today I hope that we have been able to keep you glued to the screen. i hope that we have been able to keep you glued to the screen Bye-bye. bye-bye