TRATON SE — Call Transcript 2022

Mar 16, 2022

Annual media conference call for fiscal year 2021

Christian Levin, CEO | Annette Danielski, CFO

Munich, 3-16-2022

Disclaimer

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Annual media conference call for fiscal year 2021

YOUR PRESENTERS TODAY

Christian Levin Chief Executive Officer

Annette Danielski Chief Financial Officer

Pietro Zollino Head of Group Communications

Agenda

1. Core KPIs FY 2021

• 2. Going forward
• 3. Q&A

TRATON GROUP delivers good results in 2021

Limited comparison of figures due to Navistar consolidation

TRATON GROUP Core KPIS

Limited comparison of figures due to Navistar consolidation

Units	FY 2021	FY 2020	Change
Trucks and buses
Incoming orders1	359,975	216,251	66%
Unit sales	271,608	190,180	43%
of which trucks2	230,549	156,371	47%
of which buses	18,857	16,174	17%
of which MAN TGE vans	22,202	17,635	26%
Financial KPIs (€ million)
Sales revenue	30,620	22,580	36%
Adj. operating result	1,599	135	1,464
Adj. operating ROS	5.2%	0.6	4.6 pp

1) Excluding Navistar Class 4/5 contract manufacturing for third parties (2021: 4,141 units) 2) Excluding Navistar Class 4/5 contract manufacturing for third parties (2021: 3,580 units) 6

Deep Dive Group Core KPIS

Limited comparison of figures due to Navistar consolidation

Units	FY 2021	FY 2020	Change
TRATON Operations (€ million)
Sales revenue	30,103	22,152	36%
Adj. operating result	1,883	230	1,653
Adj. operating ROS	6.3	1.0	5.2 pp
Capex	1,125	988	14%
Primary R&D costs	1,462	1,154	27%
Net cash flow	938	979	–41
Net liquidity	–1,694	1,347	–3,041
Financial Services (€ million)
Sales revenue	964	820	18%
Operating result	259	107	152

Scania Vehicles & Services – Core KPIS

Units	FY 2021	FY 2020	Change
Trucks and buses
Incoming orders	116,798	92,940	26%
Unit sales	90,366	72,085	25%
Financial KPIs (€ million)
Sales revenue	13,927	11,521	21%
Adj. operating result	1,412	802	611
Adj. operating ROS	10.1	7.0	3.2 pp

MAN Truck & Bus – Core KPIS

Units	FY 2021	FY 2020	Change
Trucks and buses
Incoming orders	143,531	84,921	69%
Unit sales	93,668	81,673	15%
Financial KPIs (€ million)
Sales revenue	10,934	9,659	13%
Adj. operating result	249	–553	802
Adj. operating ROS	2.3	–5.7	8.0 pp

Volkswagen Caminhões e Ônibus – Core KPIS

Units	FY 2021	FY 2020	Change
Trucks and buses
Incoming orders	57,241	38,805	48%
Unit sales	57,405	36,974	55%
Financial KPIs (€ million)
Sales revenue	2,113	1,235	71%
Operating result	171	–15	186
Operating ROS	8.1	–1.2	9.3 pp

Navistar Sales & Services – Core KPIS

Units	FY 20211
Trucks and buses
Incoming orders2	42,588
Unit sales	30,305
Financial KPIs (€ million)
Sales revenue	3,557
Operating result	41
Operating ROS	1.2

1) July 1, 2021, to December 31, 2021 2) Excluding Navistar Class 4/5 contract manufacturing for third parties (December 31, 2021: 4,141 units)

Truck market outlook –Uncertainties due to high geopolitical and economic risks

This outlook does not take into account the current developments due to the war in Ukraine

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

3 US and Canada class 6-8, Mexico class 4-8

Source: Historical data based on own calculations and estimates

3-16-2022 Annual media conference call for fiscal year 2021 12

TRATON outlook 2022 – Further recovery, but high geopolitical and economic risks

This outlook is subject to the further development of the war in Ukraine and in particular the impact on TRATON's supply chains and the global economy as a whole

	FY 2020	FY 2021	FY 2022 Outlook1
Unit sales	190.2 k -21%	271.6 k +43%	very sharp increase
Sales revenue	€22.6 bn -16%	€30.6 bn +36%	sharp increase
Operating RoS (adjusted)	0.4%	5.2%	5.0 – 7.0% (incl. PPA, expected to be 290 mn2) ~€270 –
Net cash flow (TRATON Operations)	€979 mn	€938 mn	1,000 mn1 €700 –

1 The forecast does not include expenses at Scania Vehicles & Services in connection with the EU antitrust proceedings 2 Based on preliminary purchase price allocation

3-16-2022 Annual media conference call for fiscal year 2021 13

Agenda

1. Core KPIs FY 2021

• 2. Going forward
• 3. Q&A

New strategy: TRATON Way Forward

Electrification continues to progress

Incoming orders and unit sales of fully electric vehicles, FY 2021 TRATON GROUP BEV product range

UNITS	INCOMING ORDERS	UNIT SALES
TRATON GROUP	1,717	1,076
Trucks	307	97
Scania trucks	171	42
MAN trucks	4	18
Navistar trucks1	22	2
VWCO trucks	110	35
Buses	363	153
Scania buses	37	14
MAN buses	204	133
Navistar buses1	122	6
MAN TGE vans	1,047	826

Scania electric truck (25 P BEV)

MAN electric truck (eTGM)

VWCO electric truck (e-Delivery)

Electric International eMV Series

1) Order backlog

TRATON boosts e-mobility investments

No limits for e-mobility applications

Modularization is key on our way to stronger profitability

Build up a TRATON Modular System

Enable profitable mass customization of broad variant offering and ensure long-term competitive advantage

Scania starts implementation of new Group engine

of the entire truck costs are attributable to the drivetrain

No.1

One of the world's most sustainable powertrains with a 13L common base engine (CBE)

common components for the complete powertrain

Enhanced fuel

Reduced weight

Low maintenance

Low maintenance

efficiency

Common base engine introduction

Powertrain package introduced Planned market introduction across brands

• Scania: winner of the prestigious "1000 Points" test with the CBE
• MAN: construction has started on CBE production site in Nuremberg/Germany
• Navistar: preparation of production in Huntsville/USA

CBE

2022 2023 2024 2028

Achieving sustainable profitability of MAN is top priority

OBJECTIVES AND ACHIEVEMENTS

About 3,500 jobs cut in Germany

► Clear focus on sustainable profitability of MAN Truck & Bus

► Profitability as basis for investments in future technologies

Restructuring of the production and development network

• ► Steyr production site transferred to WSA, effective August 31, 2021
• ► Krakow site to be expanded (€130 million invest)
• ► Munich plant being prepared for e-mobility
• ► Establishment of engineering capacities in Ankara and Pune about a year ahead of plan

Financial impact

• ► Restructuring cost of €696 million booked in 2021
• ► Package of measures to improve earnings by up to €1.7 billion

Strong product portfolio

• ► Well positioned with new truck and bus generations
• ► Focus on zero emission / e-mobility with e-trucks starting 2024

New management transforming MAN

Alexander Vlaskamp1 Chief Executive Officer

Inka Koljonen1 Chief Financial Officer

Michael Kobriger Production & Logistics

Friedrich Baumann1 Sales & Customer Solutions

Arne Puls1 Chief Personnel Officer & Labour Director

Dr. Frederik Zohm Research & Development (R&D)

Navistar fully in line with TRATON e-mobility strategy

NAVISTAR E-MOBILITY

More than 100

order backlog for IC Bus CE Series

More than 20 order backlog for eMV

3-16-2022 Annual media conference call for fiscal year 2021 24

San Antonio plant is a benchmark manufacturing facility for Navistar

SAN ANTONIO MANUFACTURING PLANT (SAN ANTONIO, TEXAS)

• \$250+ million investment
• Approximately 1 million square foot facility
• Sustainable operation techniques and Industry 4.0
• Production began in January 2022
• Flexibility to build Class 6-8 diesel e-vehicles
• Second property serves as Technology Center

China is one of the most important profit pools

No.1 World's largest single market for heavy duty trucks

in 2021

Independent Production

Scania will be first western truck manufacturer with fully independent production in China

Construction is scheduled to begin during the second quarter of 2022

High-performance charging network for Europe

• Binding agreement signed
• Plan: pioneer high-performance public charging network for battery electric heavy-duty long-haul trucks and coaches across EU
• Accelerate the build-up of green energy charging infrastructure
• Enhance customer confidence
• Support EU's transformation to climate-neutral transportation

Agenda

• 1. Core KPIs FY 2021
• 2. Going forward
• 3. Q&A

Contacts Corporate Communications

CORPORATE COMMUNICATIONS

Pietro Zollino Head of Group Communications

Sacha Klingner Head of Corporate Communications

Matthias Karpstein Business Media Relations

TRATON SE Dachauer Str. 641 | 80995 Munich www.traton.com

Annual media conference call for fiscal year 2021

Christian Levin, CEO | Annette Danielski, CFO

Munich, 3-16-2022