We just released our 2022 Annual and Sustainability Report! In it you can find a detailed overview of our company’s performance over the past year and a roadmap of our future strategy.

The report in its entirety is available <a href="https://investors.volvocars.com/en/financial-information/results-centre">here</a>, but before you dive into the full report, here are some of the interesting things to know from our 2022 Annual and Sustainability Report.
<ul>
<li>We had our highest reported revenue in company history. Our operating revenue reached 330.1 bn SEK, up 17 per cent compared to the previous year. The regional revenue split is China ~71 bn, US ~62 bn, Europe ~144 bn and other markets ~53 bn.</li>
<li>Climate neutral energy is powering more of our manufacturing with 66 per cent of the energy used in our manufacturing operations coming from a climate neutral source.</li>
<li>We have just over 43,000 employees around the world: ~2,000 in North and South America, ~29,000 in Europe, ~12,000 in Asia and ~100 in other countries.</li>
<li>The publishing of the report is the first public appearance of our revitalised purpose statement and our company Blueprint that we launched companywide in February. </li>
</ul>

<ul><li>33 per cent of our cars sold were Recharge models – with 11 per cent being fully electric and 22 per cent as plug-in hybrids. Out of our sales for 2022 globally, XC60 was our highest selling model last year followed by XC40 and XC90.</li>
<li>At the end of last year, we had Tech Hubs in three locations around the world: Bangalore, India and two Swedish locations in Lund and Stockholm. We have also announced our plans to open a fourth Tech Hub in Krakow, Poland this year. </li>
<li>Our total CO2 emissions per vehicle continues to decline, now down 15 per cent in our per vehicle emissions since our baseline in 2018.</li>
<li>Water usage in our manufacturing is dropping year over year, with our usage rates down 30 per cent from our baseline in 2018.</li>
<li>Our retail network currently covers approximately 2,500 retailers around the world, organised by 22 National Sales Companies and 44 importers. Meeting our consumer expectations, we are rolling out a new go-to-market model based on strong digital platforms and direct consumer relationships.</li>
<li>The Annual & Sustainability report is 205 pages long and has two main sections. The ‘front’ (pages 1-46) tells our story, and the ‘back’ is all about our numbers as well as the Risk & Governance and our Sustainability report.</li></ul>

The top ten things to know from our Annual and Sustainability Report 2022

On his first day as the CEO of Volvo Cars, Jim Rowan shares his thoughts on his new role, company culture and the future of automotive industry.

Hej everyone,
A new chapter in my life starts today. And it’s one that I’m incredibly excited about. To be able to join Volvo at this moment in time, in the middle of an enormous transformation, is very inspiring.
So when people ask me, “Why did you join Volvo?”, that’s my answer. I’m just really inspired by the opportunity. To be part of our shared journey in the coming years, to work with you all and create a company that is a leader in next-gen mobility, and take the company to new heights is something I really look forward to.
While I’m a lover of engineering and technology, I’m not a traditional automotive guy. I think that’s a good thing. Volvo is full of people who know the automotive industry inside out and have all the relevant skills. You don’t need me for that!
What I hope to bring to the table are insights and experience from the high-technology consumer products industry, as we make that transition to next-gen mobility. If we blend that with the talent and knowledge that we’ve built up within Volvo over the last 95 years, and put it together in the right way, I think it will be an extremely powerful combination.
We’ll always have our history and our pedigree. People trust the Volvo brand and know that it stands for something authentic and honest. No one can replicate that. But the language and expectations of next-gen automotive are changing. It used to be all about horsepower and cylinders. Now, it’s becoming much more about embedded technology that makes things easier and more convenient for our customers. The language has become much more inclusive and progressive, which is good.

Our purpose says it very well: we want to offer people the freedom to move in a safe, sustainable and personal way. Taking mobility carbon-free and being responsible for that transition is extremely motivating. It’s not just the right thing for Volvo, but more importantly, it is the right thing for society.
This is our moment to demonstrate that we take human safety as seriously as we take planetary safety. Two things that have never been more important and in which we will continue to do even more. Our approach to 100% electrification and a safe introduction of autonomous drive has engaged the whole company and we will achieve it, together. But in next-gen automotive, I also think the personal element will be more important than ever. Direct connection to our customers will become a huge enabler for sustained, profitable growth and additive to our brand value.
When you buy a Volvo or subscribe to one, you’ll still get a robust, reliable, safe, high-quality car. That won’t ever change: we’ll continue to invest and innovate in all of the core competencies that we’ve built over several decades. However, if we add to that an all-inclusive and seamless Volvo experience for our customers, we can make it their brand of choice throughout their lives. Mobility that not just protects you, your loved ones and the environment, but also gives enjoyment, convenience and complete peace of mind.
Finally, just a few words about our culture. Trust is important to me. I’d like this to be a company that trusts its people to do their job, a culture that provides equal opportunities to all, where our people are empowered to use their judgment and skills to help deliver our key objectives.
It also means that we’re a company that has earned the trust of its people. A company that’s here for you when you need support, whatever it is. And if something’s about to go wrong, I want everyone to feel confident to speak up and ask for help and guidance to solve the issue at hand. We will win as a team: no finger pointing, no blame game, let’s just get everyone focused on the mission.
Anyway, enough talk for now. You may have to be a bit patient with me in coming weeks as I get up in the saddle, but I plan to visit all our operations and get up to speed quickly. I look forward to meeting you and starting off this adventure together with you.
Jim

A letter from our new chief executive Jim Rowan: we will win as a team

Our strong sales performance in 2021 has translated into an even stronger financial result. 

It’s no secret that 2021 was a challenging year in many ways. A pandemic that still refuses to be defeated, global supply chain issues caused by a rocky trading environment, a lack of semiconductors; we've definitely had easier years in the car industry and in our company.
Nevertheless, we performed strongly in the face of that adversity. We recorded a solid sales increase for the full year, delivering just short of 700,000 new Volvos to customers and increasing market share.
Today we report that financially, we’ve also done very well. As a matter of fact, we’ve set a record in terms of both revenues and profitability for a full calendar year.
Our global revenue came in at SEK 282 bn, an increase from SEK 262.8 bn in 2020, while the operating profit for 2021 amounted to a healthy SEK 20.3 bn, compared to SEK 8.5 bn in 2020. The resulting profit margin is 7.2 per cent, which is close to our mid-term target of consistently achieving an 8 to 10 per cent profit margin.

“I would like to take this opportunity to thank all employees for a great effort and for all we have achieved together,” says our CEO Håkan Samuelsson. “Through collaboration and determination, we’ve made tremendous progress over this last decade. We’ve placed Volvo Cars firmly on the map as a brand that is leading mobility into the future in a safe, sustainable and personal way, showing it is possible to be both profitable and more sustainable.”
Of course, such strong financial results also have a positive impact on our Volvo Bonus programme, as head of Corporate Functions Hanna Fager and our CFO Björn Annwall reveal in the film above. All Volvo Cars employees will receive a bonus this year and the payout level will be a record 200 per cent of the annual bonus target.
This is a deserved reward for all staff after a year of hard work.
To read the press release, please <a href="https://www.media.volvocars.com/global/en-gb" target="_blank"> click here </a>

FY 2021 financial results: all-time high revenue and profitability

Today we’re listing our company on the Nasdaq stock exchange in Stockholm – a historical moment for Volvo Cars. 

Our new chapter will begin with the official bell-ringing ceremony, followed by a variety of media engagements for our chief executive Håkan Samuelsson and other members of our Executive Management Team. In those interviews, they’ll explain in more detail how we’ll use the proceeds of the listing to support and strengthen our abilities to deliver on our ambitious plans for the future.

If you want to follow the development of our listing, you’re welcome to visit the Investors section of our website. 
<a href="https://investors.volvocars.com/en">Visit investors</a>

IPO process: today we’re making history!

Today we celebrate our best half-year results in terms of sales and operating profit in our 94-year history.

We had a record first six months in terms of sales, driven by strong demand for our SUVs and our Recharge-badged electrified cars. Today, we’re happy to report that our strong performance has also translated into a strong financial result.
To briefly recap our sales in the first half: we sold 380,757 cars around the globe. This was the best half-year performance in our history. It’s an increase of 41 per cent compared to the pandemic affected period in 2020 – and the company also saw strong growth of 12 per cent compared to the first six months of 2019 – a more relevant comparison without the pandemic disruption. Our 12-month rolling sales volume is approximately 775,000 cars, just shy of the 800,000 target we set 10 years ago.
Selling all those new cars generated revenue of 141 billion SEK, an increase of 26.3 per cent. Those better sales and revenues also translated into a higher profit, which was boosted further by cost efficiencies and positive results at our affiliated companies. The operating profit of 13.2 billion SEK is the best we ever reported for a financial half year. The operating margin came in at 9.4 per cent.
Not everything went our way: the global shortage of semiconductors posed a challenge to us in the first half. But we adapted production and shifted priorities in line with customer demand in all plants, which meant that we could reduce the impact on customer deliveries.
“The company continued to grow strongly despite the industry-wide semiconductor shortage, but more importantly, we demonstrated that we are a leader of the ongoing transformation in the automotive industry,” said Håkan Samuelsson, chief executive of Volvo Cars.

Throughout the first half we also took additional steps towards our all-electric future. Recharge cars are now a quarter of our global volumes, and that makes us the leader among traditional premium car makers when it comes to share of sales for chargeable cars.
As part of the move towards full electrification, we launched our second fully electric model, the Volvo C40 Recharge. At the same time, we firmed up our strategy of online sales to meet changing consumer behaviour. From now on, all fully electric models will be available exclusively through volvocars.com, and customers can order at their place of preference; from their home, at a Volvo studio, or together with a retailer. We are now operational with online sales in several markets, with transparent and flexible consumer offerings including care packages of service, wear and tear, as well as insurance. Volvo Cars’ subscription offering, Care by Volvo, had a fivefold increase in the first six months to over 10,000 contracts.
Securing sustainable batteries is key for our company’s transformation. Volvo Cars is therefore planning to join forces with Northvolt as a strategic partner for joint development and manufacturing of next generation battery cells.
To ensure focus on electrification, we’re also carving out our internal combustion engine operations into a new unit, Aurobay, in which Geely Holding will be a main shareholder. Through Aurobay, Volvo Cars will realise synergies as well as secure a supply of competitive combustion engines for our hybrid powertrains until our company is fully electric.
In May, our Board announced that it is evaluating a possible initial public offering (IPO) on Nasdaq Stockholm. The evaluation process continues.
Håkan Samuelsson said: “Volvo Cars has a decade-long track record of successful transformation. The car industry is changing more than ever and we have a strong determination to be the fastest transformer.”

2021 half-year financial results – record performance

In our new, ground-breaking policy, we’re opting all Volvo Cars employees across the globe into 24 weeks of paid parental leave, as of April 1, 2021.

The Family Bond by Volvo Cars is our new all-gender, paid parental leave policy – with this, we give all Volvo Cars employees with at least one year's service 24 weeks of parental leave at 80 per cent of their base pay by default.
&quot;This is more than a new parental leave policy for our employees – it's the embodiment of our company culture and values,&quot; says Hanna Fager, head of corporate functions.
The global policy is inspired by national legislation in our home market of Sweden, and it's more inclusive and supportive than many existing policies around the world. This is the case for both the US and China, where many of our colleagues live.
It applies to either parent and is suited for a diverse variety of family types, as it includes adoptive, foster care and surrogate parents, as well as non-birth parents in same-sex couples.
On the whole, this is a striking contrast to some countries' policies, where new parents might get no paid leave, or where certain groups of parents are excluded. The latter is particularly true for fathers.
&quot;We want to create a culture that supports equal parenting roles for all genders,&quot; says our CEO Håkan Samuelsson. &quot;When parents are supported to balance the demands of work and family, it helps to close the gender gap and allows everyone to excel in their careers.&quot;
By providing equal career opportunities for all our colleagues, we believe that our workforce can become more inclusive and diverse. In turn, this will not only make us a more attractive employer, but also perform better – both as individuals and as a company.
&quot;We want to lead change in this industry and set a new global people standard,&quot; says Hanna Fager. &quot;By opting all our employees into paid parental leave we narrow the gender gap and we get a more diverse workforce, boosting performance and strengthening our business.&quot;
We have been driven by our values for a long time, and this is another way for us to prove it. Today, people choose brands that not only express the same values that they have, but also show it through concrete actions. Our belief is that the policy is not only the right thing to do from an equality perspective, but also from a business perspective.
&quot;We have always been a family-oriented and human-centric company,&quot; says Håkan Samuelsson. &quot;Through this parental leave policy, we are demonstrating and living our values, which in turn will strengthen our brand.&quot;

When studying the outcome of our EMEA parental leave pilot, we found that employees appreciated the policy for being available to all genders, inclusive and adaptable to personal needs.
When launching the policy globally, we want to build on these highlights and encourage even more of us to take up the offer. Going forward, we want to make parental leave for both parents the new 'norm'.
To encourage uptake of parental leave, we are focusing on how we talk about it within the company. By presenting the 24 weeks parental leave as a pre-selected option, we want to create a 'default effect' – this means that we are highly likely to stick with pre-selected options. Ambiguous language, such as 'up to 24 weeks', is avoided as we tend to predict negative outcomes when there is uncertainty.
By using an approach like this, alongside several other communication-based measures, we want to remove confusion and cultural barriers, and provide parents with certainty.
Taking the 24 weeks is not mandatory, but we want employees to feel fully supported in taking the full leave.

<a rel="noopener noreferrer" href="https://www.linkedin.com/posts/volvocars_lifeatvolvocars-activity-6782511953542807552-0s0Y" target="_blank">You can watch the Family Bond at Volvo Cars film&nbsp;here. </a>
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Additional notes:&nbsp;This global policy is now the minimum standard for parental leave across Volvo Car Group. In any countries where the local regulations offer a more generous parental leave, local regulations will take precedence.
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Volvo Cars: Parental leave for everyone

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