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Volvo Group NAP

2008-04-08

Volvo Group NAP

Corporate Presentation

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Volvo Group NAP

2008-04-08

Supporting the Volvo Group

MackTrucks

RenaultTrucks

VolvoTrucks

Volvo Aero

FinancialServices

AB VolvoBusiness Areas

Business Units

Volvo 3P

Volvo Powertrain

Volvo Parts

Volvo Group NAP, Volvo IT, VBS, Volvo Technology, Volvo Group Real Estate and others

Volvo Logistics

BA AsiaIncluding

Nissan Diesel

VolvoPenta

ConstructionEquipment

Buses

Volvo Group NAP, Volvo IT, VBS, Volvo Technology, Volvo Group Real Estate and others

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Volvo Group NAP

2008-04-08

Our mission

Volvo Group NAP´s mission is to improve

profitability for all our customers by

consolidating the Volvo Group´s purchasing

power and being the most efficient

purchasing function in our industry

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Volvo Group NAP

2008-04-08

2002 Volvo Group NAP is established by a merger of 3 national & local non automotive purchasingfunctions in Sweden, France and USA.

2004 Volvo Group NAP is restructured into a global, commodity-driven organization located in 12 countries.

2006 Volvo Group NAP is the first Volvo Group organization to obtain a global multi-site ISO certificate.

2007 Volvo Group NAP expands into a company located in 18 countries and 40 sites.

Our history

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Volvo Group NAP

2008-04-08

Facts and figures (2007)

• Number of employees: 250

• Buyers located in: 21 countries, 44 sites

• Cost reduction realized: 95,2 MEUR

• Number of active suppliers: 22 700

• Total Volvo Group spend addressed by Volvo Group NAP: 2.7 BEUR

(= 9% of Volvo Group turnover)

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Volvo Group NAP

2008-04-08

Global presence - close to our customers

Planned for 2008

21 countries

44 sites

250 purchasing professionals

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Volvo Group NAP

2008-04-08

Total NAP spend of the Volvo Group

Facility Management and Services (12%)

IT & Communication (11%)

Logistics (30%)

Marketing & Sales (4%)

MRO & Packaging (10%) Not Addressable (4%)Production Equipment and Investment (5%)

Professional Services (24%)

Total: 4.6 BEUR (2007)

Volvo Group NAP: 2.7 BEUR (2007)

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Volvo Group NAP

2008-04-08

Organization

Operations

Commodities

Global Support

Legend:

Executive Team

Human ResourcesAnn-Charlotte Palm

PresidentVolvo Group NAP

Karin Falk

CommodityProfessional Services

Jan Söderlund

Region EuropeMagnus Koch

Region Asia/PacificCharlie Bai

CommodityMarketing & Sales

Kina Aronsson

CommodityMRO & Packaging

Serge Cros

Region AmericasSylvain Gagnon

CommodityProduction Equipment

& InvestmentsMikael Dohrmann

CommodityFacilities Management

& ServicesAnders Iwarson

CountryManagers

CountryManagers

CountryManagers

SourcingAnalysts

ExecutiveManagement Support

IS / IT

Strategic Sourcing

Global Procurement Support

Martin Svensson

FinanceSophie Joncour

Sweden

Belgium

France

Germany

Norway

Poland

Spain

UK

USA

Canada

Mexico

Brazil

Korea

China

Australia

India

Malaysia

Planned for 1 January 2009

Russia

Finland

Planned for 2008

Japan

Italy

A/CH

Turkey

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Volvo Group NAP

2008-04-08

Governance structure and roles

CommodityProduction Equipment

& Investments

PresidentVolvo Group NAP

CommodityProfessional Services

Region Europe Region Asia/Pacific

CommodityMarketing & Sales

CommodityMRO & Packaging

Region Americas

CommodityFacilities Management

& Services

Global ProcurementSupport

Finance

Human Resources

Volvo Group NAP Board role:• Overall objectives and results

• Manage allocation model

• Determines policy

• Confirms Commodity Board members

Commodity Boards role:• Validate strategies

• Bring specific commodity expertise

• Sounding board

• Ensure availability of BA/BU staff for projects

• Track progress

• Define and support measures to increase compliance

• Validate final results

• Share responsibility for results

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Volvo Group NAP

2008-04-08

Volvo Group NAP Board members

Stefan Johnsson - AB Volvo, Senior Vice President and Chairman of the Board

Bo Gustavsson - Volvo Logistics, CFO

Christian Johansson - Volvo Truck Corporation, CFO

Gene O´Keefe - VTNA, Senior Vice President Manufacturing

Patrick Besson - VTNA / Mack, Vice President Purchasing

Peter Jansson - Volvo Bus Corporation, Senior Vice President Global Product Development & Purchasing

Douglas D Rohn - Volvo Construction Equipment, Vice President Purchasing & Supply Management

Tomas Fernbring - Volvo Penta, CFO

Per Begger - Volvo Aero, Purchasing Director

Bertil Thorén - AB Volvo Alliance Office, President

Katarina Lindström - Volvo Powertrain, Senior Vice President Manufacturing

Veronique Adnet - Renault Trucks, General Secretary

Karin Falk - Volvo Group NAP, President

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Volvo Group NAP

2008-04-08

Driving purchasing excellence

Competitive Total Cost of Ownership

Improved cash flow due to extended payment terms

Quality assured purchasing agreements

Efficient purchasing by world class processes and tools

Eliminating fraud and costly purchasing habits

Sharing best practices within the Volvo Group

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Volvo Group NAP

2008-04-08

World class IT tools

EBD for eProcurement

VeSA for eSourcing

Pure for Business Intelligence

How2Buy for Customer Information

WebPP for reporting of cost savings