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03                                               12                                24
Change is in the air                             Airframe Division: A leader       Together we are strong
                                                 in innovation
04                                               16                                Volvo Aero: Best Partner
Our Core Values                                  Customer Solutions: An idea
                                                 whose time has come

06                                               20
Best Partner:                                    Volvo worldwide locations
Together, we accomplish more                     and operations

08                                               22
Engine Division: More essential                  A history of increased services
than ever


OEM Original Equipment Manufacturer MRO Maintenance, Repair and Overhaul
APU Auxiliary Power Unit SAP Systems Applications and Products
                                                                            C H A NGE I S IN TH E AIR
                                                                            One of the few constants within the aviation industry is that it is cyclical, often dramatically so, as business
02                                                                                                                                                                                              03
                                                                            ebbs and flows in response to internal and external developments. Within this context of continuous change,
                                                                            Volvo Aero Services stands out for stability and reliability as a global resource for unique, tailor-made
                                                                            customer services.

                                                                            Although our Company began as an aftermarket parts supplier, over the years our capabilities have expanded
                                                                            in all directions. Today, in addition to parts, Volvo Aero Services supplies integrated customer solutions that
                                                                            involve offerings not traditionally associated with aviation, such as supply chain management, including services
                                                                            like logistics, warehousing, repair management, transportation and financing.

                                                                            As a vital element within the larger Volvo Group, we have the ability to leverage Volvo’s considerable assets,
                                                                            while still retaining the agility of a smaller, entrepreneurial enterprise. The benefits to our customers are
                                                                            substantial, being that Volvo Aero Services has the financial backing, worldwide infrastructure, and innovative
                                                                            spirit to quickly respond with comprehensive solutions tailored to their exact needs.

                       + transportation                                     The resulting partnerships encourage robust growth within both companies by combining resources and
                                                                            maximizing potential. Volvo Aero Services considers long-term partnerships to be the ideal business model
                                                + supply programs           of the future, and we are passionately pursuing them.

                                  + warehousing
                                                                            One of the keys to our success is that the physical infrastructure is in place through The Volvo Group
     + repair management
                                                                            worldwide. Capitalizing on that global presence, Volvo Aero Services can easily use existing facilities and
                                                                            systems to quickly respond to requests anywhere in the world.
                                                          + financing

                                                                            We also have an edge through SAP, a technical support system utilized throughout the Company. This
                                                              + exchanges
                                                                            cutting-edge software application streamlines our internal processes and seamlessly integrates with our
                                                                            customers’ systems, providing real-time communication and greater efficiencies.

                                   + distribution     + logistics           The response to our expanded services and commitment to quality has been very positive. The future looks
                                                                            even brighter, as we expand to meet our customers’ needs on a deeper, more personalized level. As our growth
                                                                            fuels their success, the opportunities will increase all the more.

                                                                            Claes Malmros
                                                                            President & CEO
                                                                            Volvo Aero Services
     Our core
     The Volvo Group views its corporate culture as a unique asset. By applying and
04                                                                                          05
     strengthening the expertise and culture we have built up over the years, we can
     achieve our vision.

     Quality, safety and environmental care are the values that form the Volvo Group’s
     common base and are important components of our corporate culture. The
     values have a long tradition and permeate our organization, our products and our
     way of working. Our goal is to maintain a leading position in these areas.


     Quality is an expression of our goal to offer reliable products and services. In all
     aspects of our operations, from product development and distribution, to delivery
     and customer support, the focus will continue to be on customers’ needs and
     expectations. Our goal is to exceed their expectations. With a customer focus
     based on everyone’s commitment and participation, combined with a process
     culture, our aim is to be number one in customer satisfaction. This is based
     on a culture in which all employees are responsive and aware of what must be
     accomplished to be the best business partner.


     We have had a leading position in issues regarding safety for a long time; our
     goal is to maintain this position. Our employees are highly aware of safety issues
     and focusing on them is an integral part of their work.

     Environmental Care

     We believe that it is self-evident that our products and our operations shall
     have the lowest possible adverse impact on the environment. Our goal is that
     the Volvo Group shall be ranked as a leader in environmental care. To achieve
     this goal, we strive for a holistic view, continuous improvement, technical
     development and efficient resource utilization.
     Best partner: together,
     we accomplish more
     Long-term partnerships with Volvo Parts, Volvo Financial Services and
06                                                                                    07
     Volvo Logistics are essential to Volvo Aero Services. Partnerships are two-
     way streets. The more integrated the partnership, the better both companies
     function because their needs are understood on a deeper, more meaningful
     level. By working together, companies become more than the sum of their
     parts. They share a goal and combine complementary resources to reach it.

     Our first and largest partnership is with The Boeing Company. In 1999, our
     Company was granted the exclusive right to redistribute Boeing’s surplus
     inventory. Over time, our companies have become further integrated.

     Today, Volvo Aero Services and Boeing work side by side, and collaborate
     openly to achieve mutual goals. Our informational systems are integrated to
     provide real-time communication for greater efficiencies. It has become a
     true partnership.

     Always acting as “Best Partner,” our Company creates a competitive
     advantage for our partners, enabling them to focus on their core business.
     In turn, this synergy enables Volvo Aero Services to become more efficient
     and streamlined.

     The aviation industry is a huge network of companies, and our strategy for
     the future is to form key, long-term partnerships. As a result, we can provide
     our customers with effective solutions that address their individual needs.
                                         engi ne division:
                                         more essential than ever

                                         When Volvo Aero Services was founded nearly 20 years ago, the Engine
08                                                                                                                          09
                                         Division was its core, primarily selling a selection of aftermarket parts. Over
                                         time, it expanded and restructured in response to our customers’ ever-changing
                                         needs. Today, through alliances with our principal partners, the Engine Division
                                         provides a multitude of vital services, including the sale of engines and APU’s,
                                         new and used inventory, consignment, leasing and repair management.

                                         The foundation of the Division is procurement, whether of entire engines,
                                         or parts. While our strategy for the future calls for the acquisition of newer-
                                         generation engines, we still maintain an ample inventory of all commonly
                                         used engines and APU types.

                                         Acquisitions are sought out for our key customers, in response to knowing
                                         their specific needs through close contact. Volvo Aero Services has
                                         distinct advantages in acquiring assets. The trusted Volvo name is known
                                         worldwide, which presents opportunities that may not be accessible to
                                         others. Although large, our Company has the rare ability to respond quickly
                                         to secure an asset in hours. We also have the financial strength to make a
                                         purchase that may require a multi-million dollar investment.

     J e ff P las

     S enio r Vi ce P resid ent
     E ng ine D iv is io n

     Tom m y H u ghes

     V ice P resid ent
     E ng ine D iv is io n, Market ing
                                  Leasing engines and beyond

                                  Leasing engines provides another significant supply chain for materials. When
                                  our Engine Division acquires an asset for lease purposes, it can be leased for
                                  long-term or short-term. At times, an MRO may require an engine short-term for
                                  one of its customers to replace theirs while it’s being repaired. At lease term, the
                                  engine might be overhauled, leased again or disassembled for spare parts.

                                  We treat consigned assets as our own and are determined to maximize all
10                                opportunities that arise throughout the lifecycle of an engine. We are there to
                                  help our customers through capability and fleet changes as this provides Volvo
                                  with supply opportunities. Our expertise also includes management of engine
                                  repairs, for which we supply technical support and a work scope that details the
                                  repair and costs.

                                  Success stems from relationships

                                  We offer both long-term and short-term supply programs that can include onsite
                                  representation. Our breadth of complementary engine services helps build long-
                                  term relationships. Supporting our customers allows them to concentrate on their
                                  core business. They become more successful through our efforts on their behalf.

                                  Similarly, long-standing relationships give our Company a decided edge. Many
                                  times, companies offer assets to us to sell, knowing from past experience that
                                  they will be treated fairly and with integrity. They also understand the value of the
                                  Volvo brand and our proven capabilities in marketing those assets globally.

                                  We have earned a reputation for being a highly skilled, transparent partner that
     C h r i s Ra u c h           only promises what we can deliver. That has been a constant since our Engine
     V i ce P re s i d e n t
                                  Division was formed, and it will remain the cornerstone of our future.
     Engine Division,
     S a l e s & P ro d u c t s

     J i m G re e n

     V i ce P re s i d e n t
     Engine Division,
     P u rc h a s i n g &
     Asset Management
                                           airframe division:
                                           a leader in innovation

                                           Since the creation of our Airframe Division in 1990, it has grown to be the
12                                                                                                                           13
                                           leader in the worldwide distribution and redistribution of airframe accessories
                                           and components. Currently, our inventory is comprised of a vast array of
                                           notable components from most major OEMs.

                                           The Airframe Division’s original business model was that of a trading company.
                                           That business model changed dramatically in 1999, when Volvo Aero Services
                                           signed an agreement with The Boeing Company to exclusively distribute its new
                                           surplus parts, and began the transition to a services-based provider.

                                           Supplying parts around the clock

                                           The Airframe Division has now evolved into a large-scale distributor of new,
                                           surplus and overhauled parts that we manage on behalf of our partners, which
                                           include well-known names such as Boeing, Honeywell, American Airlines,
                                           Bombardier, Kuwait Airways and British Airways. To better assist our customers,
                                           we have expanded our services, providing support 24 hours a day.

                                           Our worldwide redistribution network allows us to sell surplus or excess
                                           inventory for companies that no longer need them, and at the same time provide
     Kev i n P. H a r t n e y
                                           them with material required to meet their current needs. Additionally, parts
     E x e c u t i ve V i ce P re sident   that need repair or modification can be identified and channeled to our repair
     A i r f ra m e D i v i s i o n        partners to add value and create a marketable asset. Instead of the traditional
                                           method of selling parts in one bulk lot, we prefer to manage and sell them over
                                           time, in order to increase our partners’ revenue and return.
                                      Change brings great benefits

                                      The Airframe Division’s transition from being a parts trader to a service-oriented
                                      partner set a precedent within Volvo Aero Services that has become the prototype
                                      for our other divisions, spurring innovation and change throughout our Company.

                                      Customers can select services such as financing, provisioning, and inventory
                                      repair management on an as-needed basis. For instance, start-up airlines often
                                      approach us for financing and large-scale provisioning, while legacy airlines may
14                                    prefer parts supply and repair management services to help reduce costs. Our           15
                                      services are particularly beneficial when assisting an Airline that is transitioning
                                      from one aircraft platform to another. Our distribution, redistribution and
                                      new provisioning services are an ideal solution, which can be provided in
                                      a cost-effective manner.

                                      Our partners are always in mind

                                      Just as the Airframe Division inventory and services are continuously modified
                                      to meet the demands of the evolving marketplace, so too are our relationships
                                      with partners. In many ways, we try to think and act like airlines to better
                                      understand their needs.

                                      Another competitive edge is our shift to SAP technology, which seamlessly
                                      integrates our information system with our partners’ systems. It has allowed
                                      real-time visibility of our inventories, as well as those of our partners. SAP
                                      has also reduced the time it takes to respond to service requests and has
                                      substantially improved our ability to quickly respond to our partners’ needs.

     S t eve D e S t e fa n o

     V i ce P re s i d e n t
     A i r f ra m e D i v i s i o n
     P u rc h a s i n g , A s s e t
     Management, and
     M a r ke t i n g
                                       customer solutions:
                                       an idea whose time has come

                                       In recent years, the aviation marketplace has changed considerably to become
16                                                                                                                            17
                                       more service-oriented. Many companies now outsource non-core operations,
                                       such as financing, logistics and warehousing.

                                       That is where our Customer Solutions Division comes in. Anticipating market
                                       trends, Volvo Aero Services created this key division by bundling existing
                                       services of several Volvo entities, and offering them to customers through our
                                       Availability Program, a natural extension of our Company’s core competencies.

                                       Custom tailored for flexibility

                                       A full-range of customized services is available, and customers may select only
                                       what is required at the time. A customer may need logistics support but not
                                       financing, or vice-versa, and the flexibility within the Availability Program allows
                                       for those sorts of options. Regardless of the situation, we can tailor a variable
                                       solution to our customers’ requirements.

                                       Besides improving efficiencies, outsourcing non-core activities makes great
                                       financial sense. By availing themselves of our Availability Program, customers
                                       can avoid financing inventory and the staggering cost of investing in facilities
     H a n k Gi b s o n
                                       where they do not have a presence. These options help our customers reduce
     S en i o r V i ce P re si d ent   risks by allowing them to avail themselves of the worldwide Volvo network.
     C u st o m e r S o l ut i o n s
     D i v is i o n

                                             AVAILABILITY CHARACTERISTICS:

                                               Vendor supplied inventory
                                               Service level guarantees
                                               Material logistics, sourcing and repairs
                                               One single point of contact
                                               One consolidated invoice per month
                                               An integrated OEM/MRO solution
     One stop for a multitude of solutions

     Entrusting activities to our Company is not only more economical, but also more
     efficient. Working seamlessly with customers, often within the same facilities,
     encourages open communication and enhances productivity. To that end, we
     manage warehouse space to provide tailored solutions to many of our customers.
     Our facility near Seattle, Washington, allows us to interact daily with one of our
     “Best Partners” in order to provide real-time solutions to all of our customers.

18   We have access to more than 600,000 part numbers worldwide, which allows             19
     us to respond quickly to meet a customer requirement no matter where they are
     located. Quality is just as critical as speed, and we ensure that our parts meet
     the most stringent standards by thoroughly tracing and certifying their pedigrees.
     We are just as committed to recycling and environmental care.

     SAP enables communication ASAP

     To ensure the best, real-time communication, our Company utilizes SAP, a highly
     collaborative business software system. SAP can easily handle our present
     needs and is scalable to accommodate future growth. It positively affects every
     aspect of our business, expediting response time, tracking vital data, and
     offering complete transparency.

     SAP also integrates with our partners’ systems, providing them with real-time
     communication in a variety of areas. For instance, our system interfaces with
     Boeing’s, so customers can seek parts from both sources, get an immediate
     quote, and place an order online.

     As with all of our systems and operations, the goal is to improve customer
     satisfaction. By doing it right the first time, our aim is to exceed customer
                                        a worldwide network
                                        of sales offices and distribution facilities
                                        ARGENTINA                       ISRAEL                           UNITED STATES
                                        Buenos Aires                    Tel Aviv                         CALIFORNIA
20                                      P/F: +54 11 4665 9578           P: +972 3 966 6175
                                                                        F: +972 3 966 8098
                                                                                                         San Francisco
                                                                                                         P: +1 925 313 9360
                                        AUSTRALIA                                                        F: +1 925 313 9361
                                        Cairns, Queensland              JAPAN
                                        P: +617 4032 3924               Volvo Nippon KK                  FLORIDA (Headquarters)
                                        F: +1 732 352 6737              Tokyo                            Volvo Aero Services Corp.
                                                                        P: +81 3 5404 0386               Boca Raton
                                        BELGIUM                         F: +81 3 5404 0387               P: +1 561 998 9330
                                        Brussels                                                         F: +1 561 998 9334
                                        P: + 32 477 365 456             PEOPLE’S REPUBLIC OF CHINA
                                        F: + 32 9 230 52 01             Beijing                          GEORGIA
                                                                        P/F: +86 10 6456 5888            Atlanta
                                        BRAZIL                                                           P: +1 404 714 5673
                                        Rio de Janeiro                  Shanghai                         F: +1 732 623 6072
                                        P/F: +55 21 33949575            P: +86 21 6335 2814
                                                                        F: +86 21 6335 2003              Hampton
                                        CANADA                                                           P: +1 404 714 5682
                                        Calgary                         SINGAPORE                        F: +1 732 623 6406
                                        P: +403 932 8080                Volvo East Asia (Pte) Ltd.
                                        F: +732 623 6460                P: +65 6545 0881                 NEW YORK
                                                                        F: +65 6545 0886                 Auburn
                                        Montreal                                                         P: +1 315 255 1348
                                        P: +905 755 0065                SWEDEN                           F: +1 315 255 1349
                                        F: +905 755 0066                Volvo Aero Corporation
                                                                        Trollhattan                      NORTH CAROLINA
                                        Toronto                         P: +46 520 940 00                Volvo Aero Leasing LLC
                                        P: +519 833 9175                F: +46 520 939 10                Greensboro
                                        F: +519 833 0307                                                 P: +1 561 995 5835
                                                                        UNITED KINGDOM                   F: +1 866 947 3893
                                        DUBAI                           Volvo Aero, Volvo Group UK Ltd
                                        Volvo Group Middle East         London                           OKLAHOMA
                                        Regional Parts Distribution     P: + 44 870 2422436              Tulsa                                  HEADQUARTERS / SALES OFFICE / WAREHOUSE         SALES OFFICE        SALES OFFICE / WAREHOUSE
                                        Centre & Regional               F: + 44 1483 523799              P: +1 918 834 2300
                                        Competence Development Centre                                    F: +1 918 834 2323
                                        Dubai - UAE
     Kev i n F l y n n
                                        P: +971 4 803 85 55                                              TENNESSEE                           An international network of twenty-five sales offices and four distribution facilities respond to
                                        F: +971 4 886 05 20                                              Memphis
                                                                                                         P: +1 901 367 1937                  customers quickly and globally. Headquartered in Boca Raton, Florida, Volvo Aero Services serves
     V i ce P re s i d e n t            FRANCE                                                           F: +1 732 623 6058
                                        Toulouse                                                                                             a key customer base globally.
     Wa re h o u s e O p e ra t i ons   P: +33 672 779 813                                               WASHINGTON
                                                                                                         Volvo Aero Distribution Center
                                        GERMANY                                                          Kent
                                        Hamburg                                                          P: +1 425 251 4660
                                        P: +49 0 40 429 18 562                                           F: +1 253 520 0756
                                        F: +49 0 40 285 13 073                                           F: +1 425 251 4664 (Sales)

                                                                                                         Volvo Aero Services (Seattle) LLC
                                                                                                         P: +1 425 251 4660
                                                                                                         F: +1 425 251 4720 (Shipp/Traff)
                                                                                                         F: +1 425 251 4729 (Quality)
                                    a history of increased services

22                                                                                                                                                                                                                                       23
     1979                                   1985                                 1990                                  1999                                     2001                               2008

     Founded in New York in 1979, under     Before long, as the demand for       To accommodate the additional         One of the most significant changes     In 2001, Volvo Aero changed our    Today, Volvo Aero Services is
     the name Air Ground Equipment          engine components increased, so      business, a larger facility was       occurred in 1999, when our Company      name from AGES to Volvo Aero       expanding through leveraging the
     Sales (AGES), the Company originally   did our services, which by 1985      acquired in Boca Raton, Florida,      was granted exclusive rights for the    Services, which better reflected   competencies of The Volvo Group.
     supplied engine parts to the           included a division that bought,     and our main operations moved         sale and distribution of new and used   our relationship to Volvo Aero.    Our goal for the future is to be our
     aviation industry.                     sold and leased entire engines.      there in 1990. The move spurred       surplus spares for Boeing. It was       It also indicated our focus on     customers’ Best Partner by offering
                                            Engine management soon followed,     a period of strong growth, as our     the first of many mutually beneficial   services, as opposed to being      a variety of customized solutions
                                            and by the end of the decade, our    Company developed partnerships,       partnerships with key companies         merely a trading partner.          that free them to concentrate on
                                            Company offered an extensive range   secured new contracts, and began      that now include American Airlines,                                        their core business.
                                            of much-needed aviation services.    to restructure internally to better   Kuwait Airways and British Airways,
                                                                                 serve our customers.                  among others.
     together we are strong

     Entrusting non-aviation services to our Company is not only more economical,
24   but Volvo is one of the world’s leading suppliers of commercial transport solutions,
     including customer-specific solutions for financing, leasing, insurance, logistics
     and service.

     The Volvo Group’s strength comes not just from a portfolio of strong brands – each one a
     leader in its area of operations – but also from the synergies achieved within the group. The
     scope for what Volvo companies can achieve is constantly broadened through coordination
     and joint development projects.

     The large volumes achieved, as well as the group’s homogenous structure, provide extensive
     resources for the development of technologies and products that fulfill existing customer
     demands and accurately anticipate future needs. The Volvo Group also includes:

     Volvo Trucks – the world’s second largest manufacturer of heavy long haul trucks,
     in particular vehicles weighing over 16 tons.

     Renault Trucks – one of Europe’s largest truck manufacturers. Products include
     light trucks, heavy long-haul trucks and military vehicles.

     Mack Trucks – one of North America’s largest manufacturers of heavy-duty trucks
     for local-, regional- and national distribution, as well as construction.

     Volvo Buses – the world’s second largest manufacturer of large buses and bus
     chassis, and Europe’s leading maker of natural gas-powered buses. Business includes
     transit and traffic management systems for major urban areas.

     Volvo Construction Equipment – one of the world’s largest manufacturers
     of equipment for applications including civil engineering, mining, forestry, extraction
     and recycling.

     Volvo Penta – world leader in the manufacture of marine engines and complete
     drive systems with power outputs from 10 to 2,000 hp.

     Volvo Financial Services – coordinates Volvo’s customer financing,
     insurance, treasury and related services. Its creative solutions enhance
     the long-term competitiveness of the Volvo Group and its partners.

     Volvo Logistics – designs, develops and manages business logistics systems
     for the automotive and aviation industries worldwide, serving customers both inside
     and outside the Volvo Group.

     Volvo Parts – handles logistical services at the aviation spares distribution
     center in Dubai for Volvo Aero Services, as well as supplying parts to other
     companies within the Volvo Group.

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