The Future is ElectriC Magnus Broback, VP City Mobility Volvo Buses, may 2017

https://youtu.be/KITqzFeJ-7Q

https://youtu.be/KITqzFeJ-7Q

The Future is ElectriC Magnus Broback, VP City Mobility Volvo Buses, may 2017

Our purpose Every day we ensure millions of people reach their travel destination. Reliably, safely and with respect for the environment. We want to make a difference as pioneers of the sustainable transport solutions of the future. Volvo Buses is one of the world’s leading bus manufacturers, with a strong focus on vehicles and systems for long-term sustainable public transport. Closely linked to the Volvo Group mission, Volvo Buses purpose is defined as: Every day we ensure millions of people reach their travel destination. Reliably, safely and with respect for the environment. We want to make a difference as pioneers of the sustainable transport solutions of the future. We have approximately 8.000 employees, production facilities in 8 countries and sales in more than 85 markets.

Volvo Buses VOLVO SUNWIN NOVA PREVOST UD

1. Electromobility 3. Automation 2. Connectivity Demographic growth Three rapid technology developments changing public transport and urban planning 1. Electromobility 2. Connectivity 3. Automation Demographic growth Climate change Local conditions of air quality, noise, traffic congestion and road safety Megatrends related to Demographic Growth, Urbanisation, Climate change, Resource scarcity, and Local conditions of air quality, noise, traffic congestions and road safety have an impact on the needs for sustainable urban transport solutions and urban planning. In 2008, 1/2 of the world population lived in cities, in 2016 the same figure will be 2/3 In 2060 more than 50% of the cities in the world will have been built after 2010 (Penalosa) At Volvo Buses (and Volvo Group), we see three rapid technology developments that accellerate the path forward: Electromobility Connectivity Automation Urbanisation Resource scarcity

Volvo Electromobility History 1995-2005 2010 2016 2017 Environmental Concept Trucks and Busses Production start Hybrid Truck Hybrid Bus Production start Plug-in Electric Bus Production start Electric Bus

THE FUTURE IS ELECTRIC Värnamo: 100% electric hybrids by 2017 PARIS: 80% (3800) Electric buses 2025 Netherlands: 100% emission free buses from 2025 Brussels 100% Electric buses by 2030 Frost & Sullivan forecast 50% of city bus sales in Europe will be electromobility by 2022 Värnamo: 100% electric hybrids by 2017

Tank to wheel Energy-efficiency How far can you go with 5 liter diesel (=50 kWh electricity, 3 kg gas) compared to a conventional diesel bus?* x ~4 CNG bus 77* Diesel bus 100 Volvo 7900 Electric bus 400 Index 50 100 150 200 250 300 350 400 Electricity is the most efficient way of propelling public transport Recent development in CNG engines show potential to close the gap towards diesel, if the gap is closed the energy consumption will still be 4 times compared to an electric bus Magnus/jessica * AE international: Comparison of Diesel and Natural Gas Bus Performance, 2014 (VTT report)

Electric buses have superior energy efficiency How far does 180 MJ of energy take you in a City bus?* CNG bus 77* Diesel bus 100 = 10 km Fuel Cell 126 Opportunity Charged Electric Bus 390 Index 50 100 150 200 250 300 350 400 SOURCE: FCH JU , International Energy Agency 2011 * Well to wheel comparison: 5l diesel 5 Nm3 CNG 50 kWh of electricity

Volvo has delivered more than 7 Volvo has delivered more than 7.700 buses with electric drive trains 7 year of serial production using Lion batteries driving 310 million km

Three cornerstones of Volvo Buses’ e-mobility strategy Product portfolio The future will be a mix of: Hybrid Electric Hybrid Electric Complete system offering Buses, infrastructure & services Battery charged by km Competitive Life Cycle Cost vs Diesel Open interfaces One open and standardized interface for charging infrastructure Enable buses from other suppliers Driving standardisation together with Siemens & ABB and others 13

Electromobility by Volvo Buses HYBRID BUSES ELECTRIC HYBRID BUSES FULL ELECTRIC BUSES 30-40% Fuel reduction Silent take-off 40% lower on road emissions Improved passenger capacity 75% fuel & 60% energy reduction Electrical drive 70% of route = silent 75% CO2 reduction* Charging 3-6 min at end stations 80% energy reduction Electrical drive 100% of route = silent No local exhaust emissions 99% CO2 reduction* Charging 3-6 min at end stations There is a big interest over the world for implementing electric public transport. Most cities see electric transport as one of the solutions needed to meet the challenges of increased pollution, noise and tougher environmental legislation. In ascertaining sustainable public transport for the Smart City, you need to strategyze and plan for a mix of alternative drivelines and capacity needs Volvo Buses approach is focused on hybrid, electric hybrid and full electric. We are driving a new global industry standard – opportunity charging of electric vehicles. A collaboration with Siemens and ABB, rolled out in +12 markets Solaris, Irizar, Heliox, VDL joining, and more are now new connecting Several benefits including No range limit High utilization of charging infrastructure Optimized system performance Flexible distribution of consumption over day and night, and across geography Since electric vehicles require an infrastructure, there are more stakeholders involved (Mayor, PTA, Energy Authority, Energy Provider, Operator etc) in the decision process. Volvo Buses works directly with this group of city stakeholders to facilitate the implementation of electric buses and the complete infrastructure system for it. We have for instance signed agreeements with the cities of Curitiba, Edinburgh, Gothenburg, Montreal, Namur, Charleroi, Stockholm, Värnamo, Luxemburg and Hamburg regarding implementation of electric vehicles. Countries where we have major volumes of electric hybrids or full electric vehicles include UK, Colombia, Norway, Sweden, Germany, The Netherlands, Switzerland and Brazil Volvo works directly with city stakeholders to implement new transport solutions based on electric vehicles Addresses the challenges facing urban development A complete system – vehicles, charging infrastructure, information services, maintenance, repairs Guaranteed operation at specified cost per km Reporting on fuel consumption and electric drive Volvo offer includes a project manager with system responsibility and know how from earlier implementations * With CO2 neutral electricity

Volvo Buses Projects Hamburg 2014 Stockholm 2015 Göteborg 2015 Luxemburg Sales Lenz 2016 3 7900 Electric Hybrid 8 7900 Electric Hybrid 7 7900 Electric Hybrid 3 7900 Electric 12 7900 Electric Hybrid 4 Charging stations 2 Charging stations 3 Charging stations Luxemburg AVL 2017 TEC Namur 2017 TEC Namur/Charleroi 2017 Värnamo Differdange 5 7900 Electric Hybrid 11 7900 Electric Hybrid 90 7900 Electric Hybrid 4 7900 Electric Hybrid 4 7900 Electric 3 Charging stations 15 Charging stations 1 Charging stations 2 Charging stations

Creating new opportunities for urban planning Bringing buses closer to passengers, opening up possibilities for bus routes in new areas to make cities more accessible Enabling indoor bus traffic, improving passenger comfort and safety Significantly reduces emissions and particles, improving air quality Silent transport that eliminates noise, improving quality of life and increasing real estate values Clean, emissions-free public transport can move buses closer to citizens – increasing the accessibility of the city Silent mode of public transport does the same, anytime of the day or night Improves quality of life and increasing real estate values while reducing noise Opens up opportunities for new approaches in Smart City urban planning – Ongoing architect competition together with Volvo Buses and Sweco!

”The Library bus stop”

”The Piazza Porto Libero”

Charging systems evolution- short term OppCharge will be used for automatized charging CCS/Combo 2 will be used for charging with cable Buses will by default have both charging options In addition there is an onboard AC charger for workshop purposes

www.oppcharge.org

Electric roads – long term

Connectivity by Volvo Buses Safer and smarter sustainable urban transport through the use of I(o)T Vehicle to vehicle communication Sensoring and pedestrian detection Vehicle to infrastructure communication, such as Predictive Maintenance of Charging Systems or Zone Management A data-driven Smart City will support quality public transport and vice-versa, creating a virtuous cycle Vehicles communicate with each other for various purposes - safer and smarter sustainable urban transport through the use of IoT Vehicles are already communicating with surrounding environments including gated zones - Enhance “zone management” for further differentiation of mandatory electric zones. Improve the digital research platform Develop connected bus stops Improve visibility of charging systems as a first step towards optimization and predictive maintenance of charging systems We are also introducing new safety solutions based on communication between the vehicle and the surroundings such as pedestrian and a cyclist detection system to improve the safety of unprotected road users - Test of pedestrian and cyclist detection system to improve the safety of unprotected road users on route 55 during 2017 Date:

Volvo Buses zone management in reality Terminal School Residential Area City Centre Safety Zone Zero Emission Zone Zero Emission Zone Zone Management ensures compliance with local restrictions and requirements on emissions, noise and speed Electric drive Hybrid drive

Automation by Volvo Buses Safety systems for driver assist, such as Volvo Dynamic Steering (VDS) Bus Stop Docking for automatic positioning of buses at bus stops Depot operations Platooning There is a trend towards automation within the bus industry. We believe automation will improve efficiency and capacity in public transport in cities and lower costs. There is also great potential in introducing platooning (bus trains) in BRT (bus rapid transit) systems. Substantial Co2 reductions of 8-10% in highway platooning. Incremental introduction of autonomous functions as technology evolves. Volvo Dynamic Steering, a system which improves driver ergonomics and safety. “Bus Stop Docking”, a concept for automatic positioning of buses at bus stops.

Urban growth requires buses Even with automation of car traffic, traffic congestion and road safety requirements needs to be handled Looking ahead, using a simple symbolic picture – urban growth requires buses for safe, smart and sustainable urban transport Buses are great for the city environment, smart city planning, and excel in efficiency of capacity/energy/cost

Test and development of new IT solutions A visionary public transport system: ElectriCity Next generation workshop solutions Innovative bus stops Including indoors New bus types: Electric Hybrid Fully Electric Test and development of new IT solutions ElectriCity test results: 71% of passengers said that renewable energy is a reason they select line 55. 83 % of passengers appriciate the free wifi. 85% use the USB chargers on the bus 8 out of 10 Passangaers like the indoor station. 1 of 3 passangers are willing to pay more to travel on line 55.

Thank you.