TRATON SE — Call Transcript 2021

Mar 22, 2021

Munich - March 22, 2021

INVESTOR RELATIONS CONFERENCE CALL FOR FISCAL YEAR 2020

MATTHIAS GRÜNDLER, CEO CHRISTIAN SCHULZ, CFO

ISIN: DE000TRAT0N7 WKN: TRAT0N Bloomberg Ticker: 8TRA GY/8TRA SS http://ir.traton.com

DISCLAIMER

This presentation has been prepared for information purposes only.

It does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of Volkswagen AG, TRATON SE, or any company of the TRATON GROUP in any jurisdiction. Neither this presentation, nor any part of it, nor the fact of its distribution, shall form the basis of, or be relied on in connection with, any contractual commitment or investment decision in relation to the securities of Volkswagen AG, TRATON SE, or any company of the TRATON GROUP in any jurisdiction, nor does it constitute a recommendation regarding any such securities.

It contains forward-looking statements and information on the business development of the TRATON GROUP. These statements and information are based on assumptions relating in particular to the TRATON GROUP's business and operations and the development of the economies in the countries in which the TRATON GROUP is active. As far as information or statements on Navistar are concerned, the same applies to Navistar. Please note that TRATON SE has signed definitive agreements on the acquisition of Navistar but the acquisition requires a number of approvals and is therefore not yet closed.

The TRATON GROUP has made such forward-looking statements on the basis of the information available to it and assumptions it believes to be reasonable. The forward-looking statements and information may involve risks and uncertainties, and actual results may differ materially from those forecasts. If any of these or other risks or uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, the actual results may significantly differ from those expressed or implied by such forward-looking statements and information. The TRATON GROUP will not update this presentation, particularly not the forward-looking statements. The presentation is valid on the date of publication only.

Certain financial information and financial data included in this presentation are preliminary, unaudited, and may be subject to revision. Due to their preliminary nature, statements contained in this presentation should not be unduly relied upon, and past events or performance should not be taken as a guarantee or indication of future events or performance. Financial figures might be translated from different currencies, using the exchange rate prevailing at the relevant date or for the relevant period that the relevant financial figures relate to.

All statements with regard to markets or market position(s) of TRATON SE or any affiliated company or any of its competitors are estimates based on data available to the TRATON GROUP. As far as information or statements on Navistar are concerned, the same applies to Navistar.

IHS Markit Data referenced herein are the copyrighted property of IHS Markit Ltd. and its subsidiaries ("IHS Markit"). The IHS Markit Data are from sources considered reliable; however, the accuracy and completeness thereof are not warranted, nor are the opinions and analyses published by IHS Markit representations of fact. The IHS Markit Data speak as of the original publication date thereof and are subject to change without notice. IHS Markit and other trademarks appearing in the IHS Markit Data are the property of IHS Markit or their respective owners.

The percentage figures shown may be subject to rounding differences. Due to different proportions and scaling in graphs, data shown in different graphs is not comparable.

AGENDA

1. 2020 at Glance

2. Outlook 2021

3. Back up

a. TRATON GROUP Highlights b. Segment Industrial Business c. Segment Financial Services d. Appendix

2020 – A YEAR OF TWO FACES

DESPITE THE CHALLENGES, 2020 WAS A YEAR WITH MANY SUCCESSES FOR TRATON

• Incoming orders: -5% to 216,251 units
• Unit sales: -21% to 190,180 units
• Sales revenue: -16% to €22,580 mn FY
• Adjusted operating result: €135 mn, adjusted RoS 0.6% 2020
  • Net cash flow Industrial Business: €676 mn¹
  • Net liquidity Industrial Business: €27 mn²
  • New MAN Truck Generation introduced
• First-time solid investment grade ratings assigned to TRATON SE by Moody´s and Standard & Poor´s 2020
  • Debut syndicated revolving credit facility signed by TRATON SE
  • Scania introduces first electric truck range
  • TRATON and TuSimple global partnership for autonomous trucks
  • TRATON and Hino start e-mobility joint venture
  • TRATON reached binding merger agreement to acquire Navistar
  • VWCO presents the new family of heavy-duty trucks
• MAN Truck & Bus key issues paper to realign the company agreed 2021

March 22, 2021 / Investor Relations / Conference Call for fiscal year 2020 1 FY 2019 reported net cash flow of €2,711 mn; adjusted net cash flow €518 mn before the sale of Power Engineering (€1,978 mn), parts of the RMMV Joint Venture (€101 mn incl. dividend) and repayment for amounts and interest resulting from security deposits provided in Brazil (€114 mn) ). 2 Mainly due to the net cash outflow of €-1.4 bn resulting primarily from the end of the domination and profit and loss transfer agreement (DPLTA) with Volkswagen AG for the fiscal year 2019. Note: Delta FY 2020 vs. FY 2019

SECOND HALF OF 2020 WITH STRONG RECOVERY…

Noticeable market recovery, though business activities still significantly impacted by the COVID-19 pandemic

Incoming orders: +47% vs. H1 2020

Unit sales: +45% vs. H1 2020

Net cash flow in Industrial Business: €1,023 mn (€+1,370 mn vs. H1 2020)

Capital expenditure TRATON GROUP¹and primary R&D in Industrial Business: clearly reduced in FY 2020

March 22, 2021 / Investor Relations / Conference Call for fiscal year 2020 1 Capital expenditures in property, plant, and equipment and in intangible assets (including capitalized development costs)

…IN ALMOST ALL AREAS

	H2 2020	H1 2020	+/-	H2 2020	H1 2020	+/-	H2 2020	H1 2020	+/-
Trucks and buses (units)
Incoming orders	58,667	34,273	71%	46,729	38,192	22%	23,630	15,175	56%
Unit sales	41,648	30,437	37%	50,011	31,662	58%	21,087	15,887	33%
of which trucks11	39,244	27,655	42%	46,802	29,531	58%	17,702	13,540	31%
of which buses	2,404	2,782	-14%	3,209	2,131	51%	3,385	2,347	44%
Financial KPIs (€ million)
Sales revenue	6,252	5,269	19%	5,580	4,079	37%	623	612	2%
Operating result	527	221	306	-166	-387	221	-5	-10	5
Operating result (adjusted)	581	221	359	-166	-387	221	-5	-10	5
Operating RoS (in %)	8.4	4.2	4.2 pp	-3.0	-9.5	6.5 pp	-0.8	-1.7	0.9 pp
Operating RoS (adjusted) (in %)	9.3	4.2	5.1 pp	-3.0	-9.5	6.5 pp	-0.8	-1.7	0.9 pp
	•	Incoming orders and unit		•	Unit sales and sales		•	Higher unit sales, but

sales severely improved

• Favorable portfolio and

cost savings

• revenue severely up
• Improved result, but negative factors weigh on

negative currency effects weigh on sales revenue

• Improved product position

AGENDA

1. 2020 at Glance

2. Outlook 2021

3. Back up

a. TRATON GROUP Highlights b. Segment Industrial Business c. Segment Financial Services d. Appendix

BUSINESS CLIMATE IS BRIGHTENING, BUT STILL FRAGILE

Growth in 2021 expected, but fragile environment

Global growth¹ collapsed in 2020. Recovery expected in 2021, but less buoyant in EU than initially expected. US powering ahead.

Truck registrations (> 16t) in Europe improving²

2 ACEA new heavy commercial vehicles (HCV) registrations of 16t and over for EU + EFTA + UK

1 IMF World Economic Outlook

YET THE POSITIVE TREND CONTINUED IN THE FOURTH QUARTER OF 2020

POSITIVE TRUCK MARKET OUTLOOK, DEPENDING HEAVILY ON COVID-19 DEVELOPMENT

TRUCK MARKET EXPECTATIONS (˃ 6t, k units)

March 22, 2021 / Investor Relations / Conference Call for fiscal year 2020 Source: Historical data based on own calculations and estimates. 1 EU27+3 region (EU27 countries without Malta, plus the United Kingdom, Norway, and Switzerland) 2 Includes estimates from different institutes, companies, and data/information services.

TRATON OUTLOOK 2021 – RECOVERY AFTER STRONG DECLINE

	FY 2019	FY 2020	FY 2021 Outlook1
Unit sales	242.2 k	190.2 k	Sharp
	+4%	-21%	increase
Group sales revenue	€26.9 bn	€22.6 bn	Substantial
	+4%	-16%	increase
Operating return on sales	7.0%	0.4%	5.0 –
& operating result2	€1.9 bn	€81 mn	6.0%
Cash conversion rate3 (Industrial Business)	179%	n/a4	25 – 35%

1 Before expenses from the MAN Truck & Bus restructuring program and effects from the planned acquisition of Navistar International Corporation. 2 FY 2019: adjusted RoS 7.0%, adjusted operating result €1.9 bn; FY 2020: adjusted operating RoS 0.6%, adjusted operating result €135 mn 3 Calculated as the ratio of net cash flow to profit after tax; cash conversion rate in FY 2019 was positively affected by the proceeds of approximately €2.0 bn from the disposal of the Power Engineering business. 4 In FY 2020, the negative earnings after tax did not result in any meaningful cash conversion rate.

2021 REMAINS CHALLENGING, BUT RECOVERY EXPECTED

MAN T&B MEASURES TO IMPROVE EARNINGS

Key Issues Paper to realign MAN T&B agreed

• Strong focus on future technologies.
• Repositioning of the production and development network.
• Reduction of ~3,500 jobs across all areas in Germany by the end of 2022.
• Steyr site in Austria (~2,200 employees) is being discussed.
• In total, the restructuring measures are currently expected to incur cost in a high triple-digit million Euro amount.

efforts Ensuring sustainable uplift in RoS and cash flows

NAVISTAR NEXT STEPS – CLOSING OF PLANNED AQUISITION & SUBSEQUENT INTEGRATION

Signing and announcement of binding merger agreement on November 7, 2020

On March 2, 2021 Navistar shareholders approved TRATON's proposal to acquire Navistar

Regulatory approvals expected in first half 2021

Closing expected mid-2021

OUR BRANDS FOCUS ON E-MOBILITY LEADERSHIP

SINCE 2020

Common modular electric powertrain toolkit, used in the first series produced all-electric city buses from Scania and MAN.

BY 2025

Electrified vehicles will account for around 10% of Scania's total vehicle sales volumes in Europe. Half of MAN's new buses will run on alternative drives.

BY 2030

Electrified vehicles will account for 50% of Scania's total vehicle sales volumes. At least 60% of MAN's delivery trucks and 40% of long-haul trucks will be emissionfree.

TRATON INCREASES R&D INVESTMENT IN E-MOBILITY TO €1.6 BILLION

1 Product development budget comprises the share of primary R&D costs, that could be assigned to specific product projects or product project roadmaps before start of production. Product development budget does not include efforts for general base research or R&D support after start of production (i.e. for quality assurance or product cost optimization during the lifecycle).

AGENDA

1. 2020 at Glance

2. Outlook 2021

3. Back up

a. TRATON GROUP Highlights

b. Segment Industrial Business

c. Segment Financial Services

d. Appendix

GROUP – SEGMENT HIGHLIGHTS Q4/FY 2020

Industrial Business (IB)					Financial Services (FS)
	Q4 2020	YoY	FY 2020	YoY		Q4 2020	YoY	FY 2020	YoY
Incoming orders (units)	70,318	+22%	216,251	-5%	Net portfolio2 (€ bn)			9.5	-4%
Unit sales (units)	62,520	-1%	190,180	-21%	Penetration rate (%)	38	-3.9 pp	40	-1.5 pp
Book-to-bill (units)	1.12	+21 bp	1.14	+20 bp	Sales revenue (€ mn)	208	-3%	820	-3%
Sales revenue (€ mn)	6,736	-3%	22,156	-16%	Operating result (€ mn)	25	€-13 mn	107	€-35 mn
Operating result (€ mn)	114	€-250 mn	-26	€-1,768 mn	Profit after tax (€ mn)	22	€-14 mn	75	€-36 mn
Return on sales (%)	1.7	-3.5 pp	-0.1	-6.7 pp
Adjusted operating result (€ mn)	118	€-246 mn	28	€-1,701 mn
Adjusted return on sales (%)	1.8	-3.5 pp	0.1	-6.4 pp
Profit after tax (€ mn)	42	€-334 mn	-170	€-1,688 mn
Net cash flow (€ mn)1	824	€+435 mn	676	€-2,036 mn

• After key figures especially in the second quarter were heavily negatively influenced by the uncertainties and impacts from COVID-19 pandemic, a noticeable recovery was evident in the second half of 2020.

• Positive operating result in the Industrial Business of €239 mn in H2 2020 compared to a negative result in H1 2020 of €-265 mn.

• Positive net cash flow in Q4 2020 of €824 mn in the Industrial Business supported by the release of funds tied up in working capital, despite the substantial drop in operating result.

March 22, 2021 / Investor Relations / Conference Call for fiscal year 2020 1 FY 2019 reported net cash flow of €2,711 mn; adjusted net cash flow €518 mn before the sale of Power Engineering (€1,978 mn), parts of the RMMV Joint Venture (€101 mn incl. dividend) and repayment for amounts and interest resulting from security deposits provided in Brazil (€114 mn). 2 Reflecting closing balances, as of December 31, 2020.

GROUP – SALES REVENUE AND RETURN ON SALES

SALES REVENUE (€ mn)

March 22, 2021 / Investor Relations / Conference Call for fiscal year 2020 1 Operating result in FY 2020 contained costs that were primarily incurred in connection with the reorganization of production facilities at Scania V&S of €54 mn (Q3 2020: €50 mn, Q4 2020: €4 mn); adjusted RoS Q3 2020: 3.7%/Q4 2020: 2.1%/9M 2020: -0.1%/FY 2020 0.6%.

GROUP – UNIT SALES DEVELOPMENT

Unit Sales (units)

• Economic downturn already expected for 2020 was amplified by the uncertainty due to the COVID-19 pandemic, especially in Q2 2020. However, a noticeable recovery was evident in H2 2020.
• All core regions and products with significantly higher unit sales compared to first half.
• In Q4 2020 trucks unit sales ex MAN TGE nearly unchanged YoY (-1%), buses unit sales down by -24% YoY.

GROUP – UNIT SALES GROWTH IN CORE MARKETS

1 Excluding MAN TGE vans. 2 EU27+3 region (defined as the EU27 countries with the exception of Malta, plus the United Kingdom, Norway, and Switzerland). 3 Information shown might include estimates or preliminary data; for EU27+3 and Germany data collected from ACEA provisional new registrations figures as at January 26, 2021, trucks ˃ 16t; for Brazil data collected from ANFAVEA trucks ˃ 6t as at January 8, 2021; South America own estimates.

AGENDA

1. 2020 at Glance

2. Outlook 2021

3. Back up

a. TRATON GROUP Highlights

b. Segment Industrial Business

c. Segment Financial Services

d. Appendix

INDUSTRIAL BUSINESS – INCOMING ORDERS

INCOMING ORDERS (units)

• Weaker demand already expected for 2020 was exacerbated by the impact of COVID-19 pandemic, particularly in Q2 2020.

• The recovery was reflected most clearly in incoming orders, Q3 2020 and Q4 2020 were even above prior-year quarters.
• Truck business strongly recovered across all regions.

INDUSTRIAL BUSINESS – UNIT SALES UNIT SALES (units)

• The expected decline in truck business in the EU27+3 in 2020 was further exacerbated by the impacts of COVID-19 pandemic, particularly in Q2 2020. Truck unit sales ex MAN TGE in Q4 2020 nearly unchanged YoY (-1%), noticeable recovery in all countries in the region in H2 2020. Brazil also returned to growth in H2 2020, with Q4 2020 up +3% YoY.
• Bus unit sales decreased by -24% in Q4 2020 YoY, but recovered in H2 2020 vs. H1 2020.

• Decline in sales revenue resulted primarily from the new vehicle business (-23% YoY), following the decline in truck and bus unit sales, although H2 2020 did see a significant recovery. After-sales recorded a relatively small decline of -6% YoY in FY 2020 (share of 21%).
• Positive return on sales in H2 2020, clearly above previous half-year due to positive unit sales and sales revenue development, supported by cost savings measures.

March 22, 2021 / Investor Relations / Conference Call for fiscal year 2020 1 Operating result in FY 2020 contained costs that were primarily incurred in connection with the reorganization of production facilities at Scania Vehicles & Services of €54 mn (Q3 2020: €50 mn, Q4 2020: €4 mn); adjusted RoS Q3 2020: 3.1%/Q4 2020: 1.8%/FY 2020 0.1%.

INDUSTRIAL BUSINESS – REGIONAL TRUCK UNIT SALES DEVELOPMENT¹

1 Excluding MAN TGE vans. 2 In connection with the exit of United Kingdom on January 31, 2020, the region "EU28+2" has been referred to as region "EU27+3" since 2020 (defined as the EU27 countries with the exception of Malta, plus the United Kingdom, Norway, and Switzerland).

INDUSTRIAL BUSINESS – SALES REVENUE BY BRAND AND RETURN ON SALES

Note: Figures shown as at Q4 2020/FY 2020; percentage change calculated YoY, Q4 2020 vs. Q4 2019/FY 2020 vs. FY 2019.

1 Operating result in FY 2020 contained costs that were primarily incurred in connection with the reorganization of production facilities at Scania V&S of €54 mn (Q3 2020: €50 mn, Q4 2020: €4 mn); adjusted RoS Scania V&S Q4 2020: 9.7%/FY 2020 7.5%, adjusted RoS Industrial Business Q4 2020: 1.8%/FY 2020 0.1%.

Net liquidity as of December 31, 2020 amounted to €27 mn, mainly due to the net cash outflow of €-1.4 bn resulting primarily from the end of the domination and profit and loss transfer agreement (DPLTA) with Volkswagen AG for the fiscal year 2019.

INDUSTRIAL BUSINESS – LEVERAGE RATIOS GEARING RATIO¹ (in %) NET DEBT/ADJUSTED EBITDA²(x)

Note: Industrial Business net liquidity/net financial debt per FY 2018: €227 mn, Q1 2019: €604 mn, H1 2019: €689 mn, 9M 2019: €1,207 mn, FY 2019: €1,500 mn, Q1 2020: €-162 mn, H1 2020: €-376 mn, 9M 2020: €-727 mn, FY 2020: €27 mn. 1 For Industrial Business: calculated as net liquidity/net financial debt divided by book value of equity. 2 For Industrial Business: calculated as net liquidity/net financial debt divided by last twelve month adjusted EBITDA (actual quarter + last 3 quarters).

INDUSTRIAL BUSINESS – NET LIQUIDITY NET LIQUIDITY/NET FINANCIAL DEBT BRIDGE (€ mn)

1 Thereof €-1,404 mn for the profit transfer for fiscal year 2019 to Volkswagen AG, €-501 mn dividend payments, €+54 mn capital contribution by Volkswagen.

INDUSTRIAL BUSINESS – FINANCIAL RESILIENCE

SOUND BALANCE SHEET POSITION (Industrial Business; as of December 31, 2020)

• Equity ratio: solidly at 36%
• Gearing¹ : currently at only 0%
• Net debt/adjusted EBITDA² : at 0.0x after the end of the DPLTA with Volkswagen AG, €-1.4 bn were transferred in February 2020 and dividend payment in September 2020

SOUND LIQUIDITY POSITION (Industrial Business; as of December 31, 2020)

• Strict cash and cost management
• Net Cash Flow of €676 mn in FY 2020
• Cash and cash equivalents of €1.6 bn
• Undrawn credit lines totaling €7.3 bn
• TRATON put in place its debut syndicated revolving credit facility with a volume of €3.75 bn in Q3 2020
• Reprioritizing of our capital expenditures and our research and development projects

Note: Net liquidity as of December 31, 2020 amounted to €27 mn, mainly due to the net cash outflow of €-1.4 bn resulting primarily from the end of the domination and profit and loss transfer agreement (DPLTA) with Volkswagen AG for the fiscal year 2019. 1 For Industrial Business: calculated as net liquidity/net financial debt divided by book value of equity. 2 For Industrial Business: calculated as net liquidity/net financial debt divided by last twelve month adjusted EBITDA (actual quarter + last 3 quarters).

SCANIA VEHICLES & SERVICES – KEY FIGURES PER QUARTER

Incoming orders (k units) 32.7 26.7 22.1 17.8 22.2 20.7 13.6 25.9 +48%

Q3 20 Q4 20 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q3 20 Q2 20 Q4 20

Sales revenue (€ mn) Return on sales² Operating result (%) ² 3,350 3,765 3,312 3,507 2,982 2,287 2,825 3,428 -2%

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20

1 Book-to-bill is defined as the ratio of trucks and bus units ordered to trucks and bus units delivered. 2 Operating result in FY 2020 contained costs that were primarily incurred in connection with the reorganization of production facilities at Scania V&S of €54 mn (Q3 2020: €50 mn, Q4 2020: €4 mn); adjusted RoS Q3 2020: 8.7%/Q4 2020: 9.7%.

MAN TRUCK & BUS – KEY FIGURES PER QUARTER

Incoming orders (k units) 24.9 29.9 25.0 20.8 24.1 14.1 21.6 25.2 +1%

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q3 20 Q4 20 Q2 20

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20

1 Book-to-bill is defined as the ratio of trucks and bus units ordered to trucks and bus units delivered.

VOLKSWAGEN CAMINHÕES E ÔNIBUS – KEY FIGURES PER QUARTER

Incoming orders (k units)

Q1 19 Q2 20 Q3 19 Q1 20 Q2 19 Q4 19 Q3 20 Q4 20

Q1 20 Q1 19 Q2 19 Q3 19 Q4 19 Q2 20 Q3 20 Q4 20

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20

1 Book-to-bill is defined as the ratio of trucks and bus units ordered to trucks and bus units delivered. 2 Q2 2019 includes an adjustment of €-13 mn from the reversal of a restructuring provision.

AGENDA

1. 2020 at Glance

2. Outlook 2021

3. Back up

a. TRATON GROUP Highlights

b. Segment Industrial Business

c. Segment Financial Services

d. Appendix

FINANCIAL SERVICES – SALES REVENUE AND RETURN ON SALES

• Operating result declined by -25% to €107 mn in FY 2020, attributable to higher bad debt allowances, lower margins, and negative exchange rate effects. Positive effects from a larger average portfolio.

FINANCIAL SERVICES – NET PORTFOLIO AND PENETRATION RATE

• By the end of December 2020 customer finance portfolio amounted to €9.5 bn (-4% compared to year end 2019), resulting from lower financing activities due to the reduced unit sales and negative currency effects.
• Penetration rate on new trucks stood at 40% in FY 2020 in those markets where Financial Services operates.
• Book value of equity decreased slightly compared to year end to €961 mn (FY 2019: €971 mn).

1 Reflecting closing balances; net portfolio defined as gross portfolio less bad debt provisions; growth excl. currency effects. 2 Trucks only.

AGENDA

1. 2020 at Glance

2. Outlook 2021

3. Back up

a. TRATON GROUP Highlights

b. Segment Industrial Business

c. Segment Financial Services

d. Appendix

GROUP – OVERVIEW BY QUARTER

€ million	Q4 2020	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Change Q4 2020 v. Q4 2019
TRATON GROUP	6,839	5,667	4,394	5,679	7,075	-235
Industrial Business	6,736	5,565	4,290	5,564	6,953	-217
New Vehicles	4,372	3,331	2,393	3,290	4,601	-229
After Sales1	1,228	1,163	1,033	1,268	1,260	-31
Others	1,136	1,072	865	1,006	1,092	44
Financial Services	208	200	197	216	215	-7
Consolidation/Others	-104	-98	-93	-101	-93	-11

€ million	Q4 2020	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Change Q4 2020 v. Q4 2019
Sales revenue	6,839	5,667	4,394	5,679	7,075	-235
Cost of sales	-5,777	-4,708	-3,978	-4,659	-5,792	16
Gross profit	1,063	960	416	1,020	1,282	-219
Distribution expenses	-611	-532	-510	-594	-670	ਵਿੱਚ
Administrative expenses	-231	-222	-185	-238	-238	7
Other operating result	-82	-44	-103	-27	27	-109
Operating result	139	162	-382	161	401	-262
Operating return on sales (in %)	2.0	2.9	-8.7	2.8	5.7	-3.6 pp
Financial result	-40	25	-71	-30	-22	-17
Earnings before tax	100	187	-453	131	379	-279
Income taxes	-65	-56	୧୫	-35	-53	-13
Earnings after tax	ਤਵ	131	-385	વેદ	327	-292

GROUP – CONDENSED INCOME STATEMENT

	TRATON GROUP		Industrial Business		Financial Services		Others/ reconciliation
€ million	2020	2019	2020	2019	2020	2019	2020	2019
Sales revenue	22,580	26,901	22,156	26,444	820	849	-396	-392
Cost of sales	-19,121	-21,618	-18,997	-21,462	-519	-547	395	391
Gross profit	3,459	5,284	3,158	4,983	302	302	-1	-1
Distribution expenses	-2,247	-2,480	-2,125	-2,356	-123	-126	1	1
Administrative expenses	-876	-973	-876	-973
Other operating result	-255	ਦਤ	-184	88	-71	-34	0	-1
Operating result	81	1,884	-26	1,741	107	142	0	O
Operating return on sales (in %)	0.4	7.0	-0.1	6.6	13.1	16.8
Financial result	-115	81	-86	140	0	8	-30	-67
Earnings before tax	-34	1,965	-12	1,881	107	151	-29	-67
Income taxes	-89	-401	-58	-361	-32	-40	1	-1
Earnings from discontinued
operations, net of tax		-2		-2
Earnings after tax	-124	1,561	-170	1,518	75	רור	-28	-67

GROUP – CONDENSED STATEMENT OF CASH FLOW

		TRATON GROUP	Industrial Business		Financial Services		Others/reconciliation
€ million	2020	2019	2020	2019	2020	2019	2020	2019
Cash and cash equivalents as of 01/01	1,913	2,997	1,853	2,945	60	ਦੇਤੋ	O
Gross cash flow¹	1,972	3,460	1,846	3,384	540	498	-413	-422
Change in working capital	15	-2,373	158	-1,276	-528	-1,480	385	383
Net cash provided by/used in operating activities	1,987	1,088	2,003	2,108	12	-982	-28	-38
Net cash provided by/used in investing activities attributable to operating activities	-1,293	634	-1,327	603	-1	-3	35	33
Change in marketable securities, investment deposits, and loans	1,078	-2,994	1,189	-2,268	O	90	-111	-816
Net cash provided by/used in investing activities	-215	-2,360	-138	-1,665	T	87	-76	-782
Net cash provided by/used in financing activities	-1,873	183	-1,983	-1,540	7	902	103	820
Effect of exchange rate changes on cash and cash equivalents	-98	6	-94	5	-5	O		O
Change in cash and cash equivalents	-198	-1,085	-212	-1,092	14	7	O	O
Cash and cash equivalents as of 12/31	1,714	1,913	1,641	1,853	73	୧୦	O	O
Gross cash flow	1,972	3,460	1,846	3,384	540	498	-413	-422
Change in working capital	15	-2,373	158	-1,276	-528	-1,480	385	383
Net cash provided by/used in investing activities attributable to operating activities	-1,293	634	-1,327	603	-1	-3	ਤ ਦ	ਤੇਤ
Net cash flow	694	1,721	676	2,711		-985	7	-5

GROUP – NET LIQUIDITY

		TRATON GROUP	Industrial Business
€ million	12/31/2020	12/31/2019	12/31/2020	12/31/2019
Cash and cash equivalents	1.714	1,913	1,641	1,853
Marketable securities, investment deposits, and loans	2,114	3,195	2,114	3,288
Gross liquidity	3,828	5,108	3,755	5,141
Total third-party borrowings	-12,298	-12,497	-3,728	-3,641
Net liquidity/net financial debt	-8,470	-7,390	27	1,500

€ million	12/31/2020	09/30/2020	06/30/2020	03/31/2020	12/31/2019	Change 12/31/2020 v. 12/31/2019
Cash and cash equivalents	1,641	2,124	2,488	1,551	1,853	-212
Marketable securities, investment deposits, and loans to affiliated companies	2,114	1,114	2,014	1,794	3,288	-1,174
Gross liquidity	3,755	3,238	4,502	3,345	5,141	-1,386
Total third-party borrowings	-3,728	-3,965	-4,878	-3,507	-3,641	-87
Net liquidity/net financial debt	27	-727	-376	-162	1,500	-1,473

GROUP – CONDENSED BALANCE SHEET

		TRATON GROUP	Industrial Business		Financial Services		Others/reconciliation
€ million	12/31/2020	12/31/2019	12/31/2020	12/31/2019	12/31/2020	12/31/2019	12/31/2020	12/31/2019
Intangible assets	6,766	6,755	6,762	6,750	4	4
Property, plant, and equipment	6,908	6,789	6,897	6,778	22	25	-11	-13
Assets leased out	6,496	7,119	6,489	7,115	752	826	-745	-821
Equity-method investments	1,380	1,365	1,380	1,365
Other equity investments	72	34	460	386	O	O	-388	-352
Income tax receivables	115	167	ರಿತ	141	27	26	-5
Deferred tax assets	1,231	970	1,192	935	દર્ભ	48	-18	-13
Financial services receivables	7,741	7,991	7	10	7,733	7,981	O	O
Inventories	4,325	4,943	4,325	4,943
Trade receivables	1,906	2,144	1,947	2,216	47	34	-88	-106
Other assets	2,008	1,816	1,864	1,727	1,228	1,320	-1,085	-1,231
Marketable securities and investment deposits	2,105	3,178	2,105	3,178
Cash and cash equivalents	1,714	1,913	1,641	1,853	73	റ്റോ	O	O
Total assets	42,767	45,183	35,164	37,396	9,943	10,324	-2,339	-2,536
Equity	13,169	14,134	12,599	13,365	961	971	-391	-201
Financial liabilities	12,298	12,497	3,728	3,641	8,581	8,998	-11	-141
Provisions for pensions and other post-employment benefits	1,828	1,769	1,817	1,759	11	10		-
Income tax payables	117	278	103	265	20	13	-2
Deferred tax liabilities	767	787	721	733	60	63	-15	-9
Income tax provisions	128	51	123	47	4	4		-
Other provisions	2,280	2,094	2,277	2,092	3	د
Other liabilities	9,411	11,101	11,041	13,042	199	138	-1,830	-2,079
Trade payables	2,769	2,472	2,753	2,453	104	125	-88	-106
Total equity and liabilities	42,767	45,183	35,164	37,396	9,943	10,324	-2,339	-2,536

GROUP – ADJUSTMENTS

Adjustments (€ million)	2016	2017	2018	2019	2020
OPERATING RESULT	727	1,512	1,513	1,884	81
Expense for antitrust proceedings (Scania)	403
Release of restructuring provisions at MAN T&B		-50
Expenses in relation to India market exit at MAN T&B			137
Recognition and release of restructuring provisions at VWCO	58			-13
Expenses in connection with the realignment of production facilities Scania V&S					54
OPERATING RESULT (ADJUSTED)	1,188	1,462	1,650	1,871	135

GROUP – SUMMARY OF EXPECTED DEVELOPMENT

	Actual 2020	Forecast 2021
TRATON GROUP
Unit sales	190,180	sharp increase
Sales revenue (€ million)	22,580	substantial increase
Operating return on sales (in %)	0.6	5.0-6.0
Industrial Business
Sales revenue (€ million)	22,156	substantial increase
Operating return on sales (in %)	0.1	4.5-5.5
Return on investment (in %)	-0.1	6.5-7.5
Cash conversion rate (in %)2	n/a	25-35
Capex (€ million)	992	considerable increase
Primary research and development costs (€ million)	1.165	substantial increase
Financial Services
Sales revenue (€ million)	820	moderate increase
Operating return on sales (in %)	13.1	13.5-17.5

INDUSTRIAL BUSINESS & FINANCIAL BUSINESS – AT A GLANCE

	2020	2019	Change
Industrial Business
Sales revenue (€ million)	22,156	26,444	-16%
Operating result (€ million)	-26	1,741	-1,768
Operating result (adjusted) (€ million)	28	1,729	-1,701
Operating return on sales (in %)	-0.1	6.6	-6.7 pp
Operating return on sales (adjusted) (in %)	0.1	6.5	-6.4 pp
Return on investment (in %)	-0.1	9.7	-9.8 pp
Adjusted EBITDA (€ million)	1,300	3,022	-57%
Primary R&D costs (€ million)	1,165	1,376	-15%
Capex (€ million)	992	das	0%
Net cash flow (€ million)	676	2,711	–2,036
Cash conversion rate (in %)	n/a	179	n/a
Net liquidity/net financial debt (€ million)2	27	1,500	-1,473
Financial Services
Sales revenue (€ million)	820	849	-3%
Operating result (€ million)	107	142	-35
Net portfolio (€ million)2	9,520	9,936	-416

TRATON SHARE

ISIN (International Securities Identification Number)	DE000TRAT0N7
WKN (German Security Identification number)	TRAT0N
Common code	196390065
Stock exchange	Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) & Nasdaq Stockholm (börsen)
Market segment	Regulated market (Prime Standard) of Frankfurt Stock Exchange & Large Cap segment of Nasdaq Stockholm
Bloomberg ticker	8TRA GY/8TRA SS
Reuters ticker	8TRA.DE/8TRA.ST
Shares outstanding	500.000.000
Type of share	Bearer shares / common shares
Free Float	10.28%

CONTACTS INVESTOR RELATIONS

Rolf Woller Head of Treasury & Investor Relations

+49 89 360 98 335 rolf.woller@traton.com

Margit Hartmann Annual General Meeting, Events

+49 89 360 98 381 margit.hartmann@traton.com

Marvin Kalberlah Analysts and Investors, Consensus

+49 89 360 98 334 marvin.kalberlah@traton.com

Michael Lankes Annual General Meeting, Events

+49 89 360 98 328 michael.lankes@traton.com

Analysts and Investors, Rating, Debt Capital Markets +49 89 360 98 283 philipp.lotz@traton.com

Philipp Lotz

Thomas Paschen Analysts and Investors, Private Investors

+49 89 360 98 474 thomas.paschen@traton.com

Helga Würtele Nordic Analysts and Investors, Sustainability

+49 151 163 58 157 helga.wuertele@traton.com

FINANCIAL CALENDAR (EXPECTED DATES¹ )

	Event/Publication of
March 22, 2021	Annual Media Conference for fiscal year 2020
May 10, 2021	3M 2021 Interim Statement
July 30, 2021	2021 Half-Year Financial Report
October 29, 2021	9M 2021 Interim Statement

TRATON SE Dachauer Str. 641 80995 Munich www.traton.com http://ir.traton.com

WWW.TRATON.COM

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