2011 Training Session

1.0 Global Volvo Oil Program Overview 6.0 Volvo Oil advantages

EM Energy Demand Outlook
Brand added Value

Commercial Vehicle Lubricants Market
Unique testing

Volvo & ExxonMobil Alliance

Strategy 7.0 Product Data Sheet (PDS)

Tool for recommendation
2.0 Lubrication Basics
Understanding a PDS

From crude to finished Product

Components 8.0 Dealer business analysis

General principles
Current Situation

Recommendation
3.0 Worldwide CVL Specifications
Proposed Strategy
Current Complexity

Euro & Tier 9.0 Selling Tools

API & ACEA & OEM specifications
Volvo Oil leaflet

PDS
4.0 Engine technology & Emission reduction

Marketing

EGR . SCR

Volvo related Technology
10.0 Action Plan
5.0 Volvo oil product line
Key Questions to ask

Product Line
Next Steps

Grease Manufacturing

Lube charting by equipment

Summary
1.0 VOLVO Oil Program
Global Overview

ExxonMobil Energy Demand Outlook

Commercial Vehicle Lubricants Market

Volvo & ExxonMobil Partnership
ExxonMobil Energy Outlook

Energy Consumption
ExxonMobil Energy Outlook

Energy Demand to 2030

Energy is critical to economic growth,
development, and social welfare

Economic progress driving global energy
demand higher

Oil, natural gas, and coal will remain the
primary energy sources through 2030

Requirements to meet rising demand:
 Integrated set of solutions as well as
continued improvements in energy
efficiency.
 Technology innovations.
 Massive investments.
 Timely execution.
Commercial Vehicle Market

On-Highway

Off-Highway
 Worldwide Lubricant Demand

Market (31 Billion liters) Sector Demand (%)

ON-HIGHWAY OFF-HIGHWAY
57 % 43 %
PVL
27%
M&A CVL
6% 34%
Fleet Dealers Train Construction
Industrial 24% 31% 3%
33% 11%

Agriculture Mining
21% 7%

Globally flat Market (Max. of 1 to 2% avg.) + Others

Growth of 3 to 4 % in Asia Pacific balanced by other regions
Demand is down in mature markets due to industrial production slowing down

Commercial Vehicle Lubricants
On-highway & Off-highway : Outsourcing (DIFM = Do It For Me) via dealers and service contracts.
Technology more and more complex with higher environmental constraints
Oil Drain Interval and Specifications require more and more sophisticated products
 Worldwide Geographic Lubricant Demand (%)

Rest of the World

ROW Latin America
7% 9%

Europe
15%

North America
23%
Africa, Middle-
East
5%

Asia-Pacific
41%

Growth markets expected in Asia Pacific and South America

Demand is down in mature markets due to industrial production slow down

More complex Technology required to meet higher environmental constraints

Oil Drain Interval and Specifications require more and more sophisticated products

* Source OEM/Lube News /Kline report
1.0 VOLVO Oil Global Overview

VOLVO & EXXONMOBIL

ALLIANCE
 1.0 VOLVO Oil Program Global
Overview

Volvo Group:

Volvo provides transportation related products and services with focus on quality, safety
and environmental care.
Founded more than 80 years ago, a solid position and reputation worldwide has been
built up over the decades.
The brand is shared between Volvo Group and Volvo Cars.
 1.0 VOLVO Oil Program Global
Overview
Business Area
Volvo Truck
Volvo Truck Corporation is the
second largest producer of heavy
trucks and transport solutions within
the entire truck industry.
Supported by over 2300 dealerships
and workshops in more than 140
countries.
Volvo Construction Equipment
Volvo CE is one of the worlds largest
manufacturers of construction
machines with a full product range,
manufactured, serviced and
supported all over the globe.
Each and every machine comes with
the quality, performance and safety.
Volvo Penta
Volvo Penta is a world-leading
supplier of engines and complete
power systems for marine and
industrial applications with deep
commitment to quality, safety and
environmental care.
 1.0 Volvo Oil Program Global
Overview

ExxonMobil Corporation

Upstream Downstream
Chemical
Exploration Refining & Supply

Development Fuels Marketing

Production Lubricants & Specialties
Gas & Power Marketing Research & Engineering
Upstream Research

10 Core Global Businesses

Dedicated Research and Development
1.0 Volvo Oil Program Global
Overview

ExxonMobil Downstream Overview:

Interest in 37 refineries

12 lube basestock refineries

31 blending plants

29,000 Service Stations worldwide

Strong earnings of $8.2 billion

ROCE of 32%

Refinery throughput of 5.4 million barrels daily

Petroleum product sales of 6.8 million barrels/day

Capital spending at $3.5B, up 7% from 2007
1.0 Volvo Oil Program Global
Overview

Technology Leadership
Proprietary Base Stock Technology :
Hydro-processing, De-waxing,
Compositional Modeling
Tailored Synthetic Base Fluids

Unwavering commitment to R&D

Lubricant formulation and performance testing expertise
World-class long range strategic R&D capability
1000s of Equipment Builder endorsements
SGA Relationship Structure

The Strategic Global

Alliance process is aimed AB VOLVO
at developing partner
relationships.

A Dedicated Regular, Open Continual

Team Communication Improvement

Executive sponsor Joint objectives setting and Sharing best practices

Focused account team scorecard metrics Technical support
Dedicated regional development programs
and local Strategic direction Enhanced logistics
representation Regular business reviews
 ExxonMobil and Volvo: A Valued Relationship

A valued global relationship which is based on.....

Long term relationship

Joint development projects on future components

Specific testing procedures and specific bench tests

Common investments in future components

Volvo working with preferred suppliers

Volvo have access to best technology in lubricants
 Volvo Oil program objectives

Why do we need Volvo branded oils?

Secure performance and quality of machine operation

Core values of Volvo

Reduce cost related to poor quality and machine down time

Complete solution provider

Generate additional business/revenue to Volvo dealers

Brand builder

Volvo Oils are the best assurance for long lifetime of Volvo
components

Volvo Oils are a warranty for trouble free operation under all working
conditions

Volvo Oils are the best choice for lower operating cost

Uniquely formulated for Volvo

Volvo Oil program development methodology

Volvo Needs

Commercialization Development
(base oils and additives selection)

Field tests Laboratory

Rig tests tests
Volvo Oil Program Strategy

Volvo Dealer
Superior Protection
Overall Value
Availability
Local knowledge

Brand Global Reach

OEM Vision Product Development
Embracing Tech Operational Excellence
Integrated Solutions Knowledgeable Personnel
Volvos Goal - Lower Your Total Cost of Ownership

The following is a breakdown of expenditures for a typical maintenance operation for Off-
Highway fleet:

Repairs
27%
Operator
28%

Fluids
Fuel 1.1%
24%
Tires Filters 1.9%
12%
Wear Items
6%
The future...
The Future...

Ongoing improvements for

More Partnership formulations, more difficult for
competition to meet.

More Growth

Extended drain intervals.

More Satisfied Customers

More expertise / know-how for

Retain Customers
dealers.

Machine Technology:
(VDS-4 for new engines) VT
(GO 102 for new Gear Oil)
(ATF AT102)
 Global program - 2010

Volvo Truck
Volvo Penta
Volvo CE

Volvo Penta

Volvo Truck

Volvo Penta Volvo Truck

Volvo CE Volvo Penta

Volvo CE

Volvo CE
Volvo Truck