VOLVO IT - CHINA Peter Xu, CIO of ATOC & VCIC GM of Volvo IT (TianJin) Co. Ltd.

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1 VOLVO IT - CHINA Peter Xu, CIO of ATOC & VCIC GM of (TianJin) Co. Ltd.

2 Agenda Volvo Group China Volvo Global IT

3 global Challenges Mexico USA Canada Brazil United Kingdom France Sweden Russia Poland Belgium Turkey Geographic Coverage Language Organization Process Knowledge sharing Standardization South Africa Global Mindset Culture Global Governance Global Strategy Global Talent Global vs Local In source vs outsourcing India China Korea Thailand Japan Malaysia Singapore Australia

4 Volvo Group IT strategy GDS/Business Architecture/IT architecture Competence ITOrganization Global Sourcing Process / Methodology Culture

5

6 Volvo Group Strategic Alignment

7 Gartner Business value module

8 Global Organisation CEO/CIO Strategy and Operational Excellence (Strategy, Process & Quality, CIO, Security) Finance & Purchasing HR & Culture Corp. Communications & Marketing** Product Development Sales to Order Application Delivery Customer Relations & Sales Order to Delivery Delivery to Repurchase General Solutions Infrastructure & Operations Fortos* Volvo group telematics

9 Global Process & Strategy

10 Our change initiatives are connected ALL contributing to the vision Global, customerfocused Organization is a driving force behind our customers operational excellence. Rightsourcing Cost Reductions

11 We are targeting a structural change Domain competence automotive (solution management, process knowledge, customer agreement) Project management, architects, Technical design, system analysis, Maintenance Emerging markets Established markets New development; programming, testing Emerging markets Established markets Old approach New approach

12 Global Competency Roles in China Project Manager Maintenance Manager Business Consultant Enterprise Architect Business Analyst System Analyst Application Software Architect Assignment lead Developer (Methods & software) Database Administrator Usability Specialist Poland India STO -Sales & Order -Product and Price (Conf.) -Customer & CRM DTR -Retail -Technology ; Siebel GS -Financial systems -TDM (C) -EDI (C) Regional development & support -Cross domain China Software Configuration Manager Application Software Specialist Brazil Application Support (C.) = Complementary resource provider

13 Global Sourcing Strategy Poland China South America India Employees + Cons + Partner 2009 Employees + Cons+ Partner 201x Rolf Agren 13 May 25, 2009

14 process/methodologies

15 Culture Report of VIT China in 2010 Culture Awareness Town Hall Meeting Culture/Communication/Competence Management Committee Effective Communication Workshop Business Writing Training Effective Communication Workshop Get Connect Workshop Innovation Project Team Culture/Communication/Competence Management/Social Responsibility Team Culture Ambassador Function Mailbox is set up Jan Mar June Fika Time Star Program Badminton Club Story Telling & Me English Day Sep Dec 9014 Strategy, Internal March 2009

16 Corporate Internal Communications Q4, 2010 Name: Amanda Li Location China Regular updates, Internal Communications Violin update for both China and Korea Townhall meetings Global Fika Employees involvement EMT Visit to China, all employees meeting APAC Integration Christmas Party Marketing and Branding area Campus recruitment for China in Tianjin, Beijing and Shanghai.

17 Story telling in China

18 Campus Talk in Tianjin in 2010

19 Local Newspaper Report for Campus Talk in Tianjin News Online in Local Media

20 VIT China growth Feb Apr Jun Aug Oct Dec(Plan) We can support CRM, Retail Volvo Finance Service Business Administration Infrastructure We can speak English Chinese Japanese Korean Swedish Our Customers are primarily from China Japan Korea South Asia And will be global..

21 120% 100% 80% 60% 40% 20% CustomerSatisfaction TeamBarometer 2010 China highlights excellent results, a new GDC site, plus a gold touch award. 0% Operating Income (KSEK)

22 We will grow together with Volvo business in China We will continue grow together with our business in the coming years.. Beijing Beijing/Tianjin Volvo Group Headoffice ATO Volvo CE Volvo Financial Services Volvo Logistics TianJin (Major Delivery Center) Shang Hai New JV (Telematics,& future business) Shanghai Volvo Group SH Volvo CE Volvo Buses Volvo Penta Volvo Aero Volvo Logistics Volvo Powertrain Volvo Parts Volvo 3P VCC (Geely Volvo) Xi An SilverBus LinYi VCE Lingong,RM JiNan VCE Tech Center Chendu VCC Hangzhou DND

23 Magnus Visit & New office Inauguration in Tianjin

24 Thanks! Questions?