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The Volvo Group is a leading global provider of transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions, and services. Founded in 1927, the company is committed to sustainable transport solutions and shaping the future of the industry. In 2023, their net sales reached SEK 553 billion. Recently, Volvo has expanded its heavy-duty truck manufacturing capacity in Mexico and acquired the battery business from Proterra Inc. to accelerate their battery-electric roadmap.
Volvo Trucks has inaugurated its first battery assembly plant in Ghent, Belgium, dedicated to producing batteries for its electric heavy-duty trucks. This investment aligns with the company's goal to have at least 50% of its truck sales be electric by 2030 and achieve carbon neutrality by 2040. The plant will assemble battery packs from Samsung SDI, with production set to begin in Q3 2022. Volvo Trucks plans to offer six electric truck models, emphasizing shorter lead times and sustainability through remanufacturing and renewable energy usage.
The Assar Gabrielsson Foundation awarded scholarships to Angela Molinaro and Emilia Alfonzo Rodriguez for their research at the University of Gothenburg. Each recipient will receive SEK 100,000 as additional research grants. Molinaro's work focuses on PI3K signaling related to cancer treatment, while Rodriguez's research involves screening and surgical methods for cervical and vaginal cancer. The awards highlight the Foundation's ongoing support for promising cancer research since its establishment in 1962, aligning with Assar Gabrielsson's legacy as one of Volvo's founders.
The Volvo Group reported strong financial results for Q1 2022, with net sales rising by 12% to SEK 105.3 billion. Service growth surged by 19%, driven by increased business activity and a growing service contract portfolio. Adjusted operating income increased to SEK 12.7 billion, though the operating margin decreased slightly to 12.0%. Reported operating income was impacted by a SEK 4.1 billion provision related to Russia. Despite these challenges, the return on capital employed improved to 25.3%.
The Volvo Group will release its first quarter 2022 report on April 22, 2022, at 7.20 a.m. CEST. A conference call for press and analysts will begin at 9.00 a.m. CEST featuring President and CEO Martin Lundstedt and CFO Tina Hultkvist. An online presentation will also be available at the same time, including a question-and-answer session. Volvo Group, headquartered in Gothenburg, Sweden, had net sales of SEK 372 billion in 2021, employing nearly 95,000 people across more than 190 markets.
Volvo Group has suspended all operations in Russia due to the war in Ukraine, affecting approximately SEK 9 billion in total assets. Out of this, SEK 6 billion comprises cash assets that could be recouped over time. The company anticipates a SEK 4 billion negative impact on operating income for Q1 2022, primarily within Financial Services. In 2021, Russia accounted for about 3% of the Group's net sales. The firm expresses sympathy for those affected by the conflict.
AB Volvo held its Annual General Meeting on April 6, 2022, through postal voting. The shareholders approved the income statement and balance sheet with a proposed dividend of SEK 13 per share. Re-elections included Carl-Henric Svanberg as Chairman and the Board Members. The auditor firm Deloitte AB was re-elected for another year. A remuneration policy for senior executives was adopted, while one shareholder's proposal was not approved. Detailed minutes of the meeting will be available on Volvo's website.
Volvo Trucks has secured a major order for 110 VNR Electric trucks from Maersk, marking the largest commercial order for its electric vehicles to date. This follows an earlier order of 16 trucks, bringing the total to 126 units for Performance Team, part of the Maersk Group. The deployment is scheduled to start in Q2 2022 and be completed by Q1 2023. The VNR Electric features an operating range of up to 440 km and is part of Volvo's ambition to achieve 50% electric sales by 2030.
The Volvo Group announces its upcoming Capital Markets Day scheduled for June 22, 2022. This event will showcase the Group's strategic initiatives focused on sustainability in transport and infrastructure. Management is prepared to adjust the format in response to COVID-19 guidelines, potentially holding it as a digital event. In 2021, the Volvo Group reported net sales of SEK 372 billion (approximately EUR 37 billion) and continues to emphasize innovation in sustainable solutions.
AB Volvo has proposed Jan Carlson for election as a new Board member at the Annual General Meeting on April 6, 2022. The proposal also includes re-election for existing Board members, including Chairman Carl-Henric Svanberg. Jan Carlson, with 30 years of automotive industry experience, currently serves as President and CEO of Veoneer Inc. and Chairman of Autoliv Inc.. The Election Committee, representing around 17.6% of shares and approximately 39.0% of votes, is composed of major shareholders. Notably, Eckhard Cordes will not seek re-election.
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