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Company presentation, Corporate Communications

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Company presentation, Corporate Communications

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    1. Company presentation, Corporate Communications 1 2012-09-14 Hi and welcome! My name is ……..and I am ……… (title/position) at Volvo Trucks.Hi and welcome! My name is ……..and I am ……… (title/position) at Volvo Trucks.

    2. Company presentation, Corporate Communications 2 2012-09-14 The Volvo Group The Volvo Group is one of the world’s leading suppliers of commercial transport solutions, with more than 100,000 employees, production operations in 19 countries and customers in 180 countries. The Group includes among others Volvo Trucks, Mack, Renault Trucks, Nissan Diesel, Volvo Buses, Volvo Construction Equipment, Volvo Penta, Volvo Aero and Volvo Financial Services. There are also a number of business units for product planning, purchasing, engine manufacture, spare parts, logistics and IT.The Volvo Group is one of the world’s leading suppliers of commercial transport solutions, with more than 100,000 employees, production operations in 19 countries and customers in 180 countries. The Group includes among others Volvo Trucks, Mack, Renault Trucks, Nissan Diesel, Volvo Buses, Volvo Construction Equipment, Volvo Penta, Volvo Aero and Volvo Financial Services. There are also a number of business units for product planning, purchasing, engine manufacture, spare parts, logistics and IT.

    3. Company presentation, Corporate Communications 3 2012-09-14 Driving progress since 1928

    4. Company presentation, Corporate Communications 4 2012-09-14 Quality Safety Environmental care A company driven by strong core values One important explanation for this is that Volvo Trucks, just like many other successful companies, is driven by strong and clear values. Values that are also appreciated by our customers.   Safety and quality have always been our guiding stars since 1928. And ever since Volvo participated in the UN’s first conference on the environment back in 1972, environmental issues have played an increasingly major role in our operations.   Today Volvo’s core values of quality, safety and environmental care are more important than ever. Quality – so that our customers can compete by providing efficient and reliable transport. Safety – to improve safety for all road-users. The environment – to contribute to long-term sustainable development.   Let me show you a few examples of how we translate our values into concrete measures and practical actions.One important explanation for this is that Volvo Trucks, just like many other successful companies, is driven by strong and clear values. Values that are also appreciated by our customers.   Safety and quality have always been our guiding stars since 1928. And ever since Volvo participated in the UN’s first conference on the environment back in 1972, environmental issues have played an increasingly major role in our operations.   Today Volvo’s core values of quality, safety and environmental care are more important than ever. Quality – so that our customers can compete by providing efficient and reliable transport. Safety – to improve safety for all road-users. The environment – to contribute to long-term sustainable development.   Let me show you a few examples of how we translate our values into concrete measures and practical actions.

    5. Company presentation, Corporate Communications 5 2012-09-14 Quality A truck must be available 24 hours a day, 7 days a week Competition between haulage companies is razor-sharp. In order for our customers to be able to run a profitable operation, they must be able to get the most out of their vehicles. A Volvo truck often covers between 150,000 and 250,000 kilometres a year and has to function economically and without problems. It has to be available virtually round the clock, with as short interruptions for service and maintenance as possible. Do you know, by the way, how often the oil has to be changed in a Volvo truck? Every 100,000 kilometres. If any problems arise on the road, they should be able to be rectified quickly and efficiently so the truck can return to its duties as soon as possible and continue to earn an income for its owner. Competition between haulage companies is razor-sharp. In order for our customers to be able to run a profitable operation, they must be able to get the most out of their vehicles. A Volvo truck often covers between 150,000 and 250,000 kilometres a year and has to function economically and without problems. It has to be available virtually round the clock, with as short interruptions for service and maintenance as possible. Do you know, by the way, how often the oil has to be changed in a Volvo truck? Every 100,000 kilometres. If any problems arise on the road, they should be able to be rectified quickly and efficiently so the truck can return to its duties as soon as possible and continue to earn an income for its owner.

    6. Company presentation, Corporate Communications 6 2012-09-14 Safety “The basic principle for all engineering work is and must always be: safety.” For Volvo, safety has always been a primary consideration. Thanks to our Accident Research Team, which was formed back in 1969, we have unique experience of how accidents involving trucks happen. 40 years of collected expertise together with Swedish and international research form the foundation for our safety work today. This has made Volvo’s trucks among the safest in the world, giving drivers and passengers excellent protection should an accident occur. We are now focusing increasingly on accident prevention measures to protect not just the occupants of Volvo trucks but other road users too. For Volvo, safety has always been a primary consideration. Thanks to our Accident Research Team, which was formed back in 1969, we have unique experience of how accidents involving trucks happen. 40 years of collected expertise together with Swedish and international research form the foundation for our safety work today. This has made Volvo’s trucks among the safest in the world, giving drivers and passengers excellent protection should an accident occur. We are now focusing increasingly on accident prevention measures to protect not just the occupants of Volvo trucks but other road users too.

    7. Company presentation, Corporate Communications 7 2012-09-14

    8. Company presentation, Corporate Communications 8 2012-09-14 Three serious concerns Within Volvo Trucks we focus on three main areas that seriously threaten a sustainable development: Exhaust emissions Using fossil fuels not only results in long-term effects on the environment. It also affects health and the quality of life of all life on the planet. The truck industry is maybe the most regulated business but also very successful in reducing emissions. By 2013 in EU and 2010 in US the emission levels will have reached sustainable levels. But the problem with CO2 remains to be solved. Depletion of natural resources Oil is a finite resource. Oil dependence in the EU is 50%, will grow to 70% over 15 years. Many people think its price will be too high for normal use in 20 years. Global warming Human activity, such as burning fossil fuels, increases the amount of greenhouses gases. Forecasts indicate several degrees warmer by 2100. Much due to our growing need for energy… Within Volvo Trucks we focus on three main areas that seriously threaten a sustainable development: Exhaust emissionsUsing fossil fuels not only results in long-term effects on the environment. It also affects health and the quality of life of all life on the planet. The truck industry is maybe the most regulated business but also very successful in reducing emissions. By 2013 in EU and 2010 in US the emission levels will have reached sustainable levels. But the problem with CO2 remains to be solved. Depletion of natural resourcesOil is a finite resource. Oil dependence in the EU is 50%, will grow to 70% over 15 years. Many people think its price will be too high for normal use in 20 years. Global warmingHuman activity, such as burning fossil fuels, increases the amount of greenhouses gases. Forecasts indicate several degrees warmer by 2100. Much due to our growing need for energy…

    9. Company presentation, Corporate Communications 9 2012-09-14 Legislation, a powerful green resource Existing and planned legislation will further reduce emissions Hundredfold improvement from Euro 1 to anticipated Euro 6 Sustainable emission levels from new vehicles by 2013 Old vehicles remain a problem Volvo Trucks supports tougher legislations and can already today offer technical solutions for future emission levels. Existing and planned legislation will further reduce emissions New emission restrictions in EU that will reduce emissions even further will be introduced in the next coming years. In fact, as much as a hundredfold improvement is expected from Euro I to anticipated Euro IV. Sustainable emission levels from new vehicles by 2013 Emissions anticipated in the USA will reach levels that are sustainable by 2013. Further reduction in exhaust emissions brings small results, important to focus on other sectors such as transport companies, fuel producers, etc. Old vehicles remain a problem Existing vehicles responsible for the largest part of exhaust emissions. Volvo Trucks supports tougher legislations and can already today offer technical solutions for future emission levels. Existing and planned legislation will further reduce emissionsNew emission restrictions in EU that will reduce emissions even further will be introduced in the next coming years. In fact, as much as a hundredfold improvement is expected from Euro I to anticipated Euro IV. Sustainable emission levels from new vehicles by 2013Emissions anticipated in the USA will reach levels that are sustainable by 2013. Further reduction in exhaust emissions brings small results, important to focus on other sectors such as transport companies, fuel producers, etc. Old vehicles remain a problemExisting vehicles responsible for the largest part of exhaust emissions.

    10. Company presentation, Corporate Communications 10 2012-09-14 Volvo Trucks’ engine strategy Focus on DME and Methane Focus on DME and Methane

    11. Company presentation, Corporate Communications 11 2012-09-14 Climate neutral operations Efficient use of energy Water, windpower and biofuels World’s first climate neutral truck factory in Ghent, Belgium Planned climate neutral production in all main plants 2011 First climate neutral dealer in Verona, Italy 20% reduction of CO˛ in our logistics during the past five years We have decided that all our large production facilities are to be carbon dioxide-neutral. At our factory in Ghent in Belgium, this is already a reality. By investing in renewable energy from the wind, sun and water, we have reduced carbon dioxide emissions by many thousands of tonnes a year. This project was able to produce such good results because we first reduced the energy consumption per manufactured truck by about 50%. The project turned out to be more profitable than we expected. It’s an excellent example that a good environment and business goes hand in hand.We have decided that all our large production facilities are to be carbon dioxide-neutral. At our factory in Ghent in Belgium, this is already a reality. By investing in renewable energy from the wind, sun and water, we have reduced carbon dioxide emissions by many thousands of tonnes a year. This project was able to produce such good results because we first reduced the energy consumption per manufactured truck by about 50%. The project turned out to be more profitable than we expected. It’s an excellent example that a good environment and business goes hand in hand.

    12. Company presentation, Corporate Communications 12 2012-09-14 Reduced fuel consumption Energy efficiency - 40% reduced fuel consumption 1975 – 2005 Due to research and development there has been a 40% reduction in fuel consumption and carbon dioxide emission between 1975 – 2005. A further 15% fuel reduction is expected to be reached before 2020 thanks to the continuous development of more efficient engines and transmissions, alongside with new technical solutions such as the hybrid. As a result, emissions of carbon dioxide are dropping by a corresponding amount.Energy efficiency - 40% reduced fuel consumption 1975 – 2005Due to research and development there has been a 40% reduction in fuel consumption and carbon dioxide emission between 1975 – 2005. A further 15% fuel reduction is expected to be reached before 2020 thanks to the continuous development of more efficient engines and transmissions, alongside with new technical solutions such as the hybrid. As a result, emissions of carbon dioxide are dropping by a corresponding amount.

    13. Company presentation, Corporate Communications 13 2012-09-14 In focus 2011 We have developed the world’s first refuse truck with hybrid power. By combining the diesel engine with an electric motor, fuel consumption can be reduced by up to 20 percent. In combination with a plug-in solution for the compactor unit, fuel consumption can be cut by a further 10 percent. Our hybrid refuse trucks are currently undergoing field tests at various customers, and series-production versions will be available for purchase from the end of 2011. We have also initiated field tests with methane diesel trucks in Sweden and UK. During 2010 we will also start testing DME vehicles in commercial operation. We have developed the world’s first refuse truck with hybrid power. By combining the diesel engine with an electric motor, fuel consumption can be reduced by up to 20 percent. In combination with a plug-in solution for the compactor unit, fuel consumption can be cut by a further 10 percent. Our hybrid refuse trucks are currently undergoing field tests at various customers, and series-production versions will be available for purchase from the end of 2011. We have also initiated field tests with methane diesel trucks in Sweden and UK. During 2010 we will also start testing DME vehicles in commercial operation.

    14. Company presentation, Corporate Communications 14 2012-09-14 This is our next step – the Volvo FE Hybrid It has a far stronger driveline and capability than competitor’s hybrid solutions.This is our next step – the Volvo FE Hybrid It has a far stronger driveline and capability than competitor’s hybrid solutions.

    15. Company presentation, Corporate Communications 15 2012-09-14 The driveline in the Volvo FE Hybrid truck comprises a diesel engine, clutch, gearbox and Integrated Starter Alternator Motor (I-SAM). I-SAM is a permanent magnet motor that is alternating current driven, and also functions as a generator. The picture shows the components in our I-SAM parallel hybrid. And here is how it works: It combines a diesel engine with an electric motor. The electric motor is used for moving off from standstill and for acceleration up to 20 km/h. At higher speeds, the diesel engine is activated. When the truck stops, the diesel engine automatically switches off to avoid unnecessary idling. The batteries are recharged using the power that is generated during braking. The driveline in the Volvo FE Hybrid truck comprises a diesel engine, clutch, gearbox and Integrated Starter Alternator Motor (I-SAM). I-SAM is a permanent magnet motor that is alternating current driven, and also functions as a generator. The picture shows the components in our I-SAM parallel hybrid. And here is how it works: It combines a diesel engine with an electric motor. The electric motor is used for moving off from standstill and for acceleration up to 20 km/h. At higher speeds, the diesel engine is activated. When the truck stops, the diesel engine automatically switches off to avoid unnecessary idling. The batteries are recharged using the power that is generated during braking.

    16. Company presentation, Corporate Communications 16 2012-09-14 Technical solution The parallel hybrid solution Enhanced performance Efficient co-operation This graph illustrates how the parallel hybrid solution works, in order to provide enhanced performance: The green line represents the standard diesel engine. The red line is the electric motor only – illustrating the high power at low revs. The blue line represents the combined performance provided by the electric motor and diesel engine – clearly indicating the efficient co-operation. The enhanced performance, which is illustrated here, is the main benefit provided by the parallel hybrid concept.This graph illustrates how the parallel hybrid solution works, in order to provide enhanced performance: The green line represents the standard diesel engine. The red line is the electric motor only – illustrating the high power at low revs. The blue line represents the combined performance provided by the electric motor and diesel engine – clearly indicating the efficient co-operation. The enhanced performance, which is illustrated here, is the main benefit provided by the parallel hybrid concept.

    17. Company presentation, Corporate Communications 17 2012-09-14 Volvo Trucks roadmap for hybrid vehicles This picture shows our roadmap for hybrid vehicles. After extensive field tests, the first hybrid trucks will reach selected cities during 2010/2011. Step two is to expand our commercial offer with full scale sales in Europe. We are looking at so called mild hybrid solutions in long haul vehicles as our next step. The final step is to make the hybrid technology a natural part of our offer in all segments. This picture shows our roadmap for hybrid vehicles. After extensive field tests, the first hybrid trucks will reach selected cities during 2010/2011. Step two is to expand our commercial offer with full scale sales in Europe. We are looking at so called mild hybrid solutions in long haul vehicles as our next step. The final step is to make the hybrid technology a natural part of our offer in all segments.

    18. Company presentation, Corporate Communications 18 2012-09-14 CO2-neutral trucks In order to reduce global warming, it is necessary to develop alternatives to today’s fossil fuels. We have tested and evaluated seven different alternatives in operational demo vehicles being used in everyday duties. In other words, we already have the technical skills in place to develop tomorrow’s engines and vehicles, no matter which fuels may dominate the market in the future. Now it is up to society and the oil industry to cooperate in large-scale projects so we can industrialise the products that are needed.In order to reduce global warming, it is necessary to develop alternatives to today’s fossil fuels. We have tested and evaluated seven different alternatives in operational demo vehicles being used in everyday duties. In other words, we already have the technical skills in place to develop tomorrow’s engines and vehicles, no matter which fuels may dominate the market in the future. Now it is up to society and the oil industry to cooperate in large-scale projects so we can industrialise the products that are needed.

    19. Company presentation, Corporate Communications 19 2012-09-14 Volvo Bio-DME

    20. Company presentation, Corporate Communications 20 2012-09-14 Lorum ipsum est

    21. Company presentation, Corporate Communications 21 2012-09-14 Key drivers for methane gas trucks Availability Methane gas is the most accessible fuel Cost savings Methane gas is currently a relatively cheap fuel in many markets Environmental regulations Affects purchasing decisions, particularly in municipal areas Climate concern Demand from hauliers and their customers that want to decrease their CO2 emissions

    22. Company presentation, Corporate Communications 22 2012-09-14 Facts about Methane gas Both as Natural gas and Biogas: Natural gas = fossil fuel Up to 20% CO2 reduction Biogas = produced from biodegradable material Up to 95% CO2 reduction Two forms: Liquid volume efficient methane gas (LNG/LBG) Pressurised methane gase (CNG/CBG) Two main forms: Natural gas: The most accessible fuel alternative to diesel, larger reserves than of oil Biogas: Almost climate neutral biogas production is gaining momentum in many countries Strategy; Establish the technology with natural gas. Gradual shift to biogas when possible/ available Two main forms: Natural gas: The most accessible fuel alternative to diesel, larger reserves than of oil Biogas: Almost climate neutral biogasproduction is gaining momentum in many countries Strategy; Establish the technology with natural gas. Gradual shift to biogas when possible/ available

    23. Company presentation, Corporate Communications 23 2012-09-14 Methane Diesel, based on Volvo’s reliable Euro V diesel engines The diesel process gives 30-40% better fuel efficiency compared to spark ignited engines 50-80% of the diesel can be substituted by methane gas Power and driveability same as a conventional diesel engine Can run on only diesel if out of gas

    24. Company presentation, Corporate Communications 24 2012-09-14 Operational ranges

    25. Company presentation, Corporate Communications 25 2012-09-14 Volvo FL and FE 7 litre engine CNG tank system Aftermarket adaptation Able to run on 50-70 percent methane gas Power 240/340 Hp Torque 940/1300 Nm Range 12-26 ton  Sales stared in Sweden March 2011 Driving range 400 km

    26. Company presentation, Corporate Communications 26 2012-09-14 Volvo FM 13 litre engine LNG tank system Adaptation by Volvo Able to run on 50- 80 percent methane gas Power 460 Hp Torque 2300 Nm Range 16-40 ton  Field testing starting in Sweden and UK Driving range >500 km

    27. Company presentation, Corporate Communications 27 2012-09-14 From concept to reality Sweden and the UK Volvo FL and FE trucks initially Volvo FM in next step Trucks run on methane gas and biodiesel/fossil diesel Different types of engines and configurations Possible small scale market introduction already in 2011 Critical: customer demand and gas distribution network Sweden and the UK Volvo FL and FE trucks initially Volvo FM in next step Trucks run on methane gas and biodiesel/fossil diesel Different types of engines and configurations Possible small scale market introduction already in 2011 Critical: customer demand and gas distribution network

    28. Company presentation, Corporate Communications 28 2012-09-14 I hope you have now received a thorough overall picture of Volvo Trucks – who we are, what we offer and how we intend to continue driving the development towards more efficient, safer and more environmentally optimised vehicles and transport solutions. Thank you very much for your attention!I hope you have now received a thorough overall picture of Volvo Trucks – who we are, what we offer and how we intend to continue driving the development towards more efficient, safer and more environmentally optimised vehicles and transport solutions. Thank you very much for your attention!

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