TRATON SE

Earnings Release • Jun 3, 2019

Q1 2019 RESULTS Munich, 03 June 2019

CHRISTIAN SCHULZ, CFO

(MAN)	SCANIA

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 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 TRATON GROUP in any jurisdiction, nor does it constitute a recommendation regarding any such securities.

The following presentation contains forward-looking statements and information on the business development of the TRATON GROUP. These statements may be spoken or written and can be recognized by terms such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", "will" or words with similar meaning. These statements and information are based on assumptions relating in particular to TRATON GROUP's business and operations and the development of the economies in the countries in which the TRATON GROUP is active. 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 forwardlooking 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. TRATON GROUP will not update the following 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 expressed in EUR might be translated from different currencies into EUR, 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 company of TRATON GROUP or any of its competitors are estimates of TRATON GROUP based on data available to TRATON GROUP. Such data are neither comprehensive nor independently verified. Consequently, the data used are not adequate for and the statements based on such data are not meant to be an accurate or proper definition of regional and/or product markets or markets shares of TRATON GROUP and any of the participants in any market.

Unless otherwise stated, all amounts are shown in million of EUR. Please note that rounding differences may arise when adding or subtracting the individual items together. The percentage figures may also be subject to rounding differences because these are calculated based on whole numbers in the year-on-year or quarterly comparisons. Due to different proportions and scaling in graphs, data shown in different graphs are not comparable.

CONTENTS

TRATON GROUP Highlights

Segment Industrial Business (MAN T&B, Scania V&S and VWCO)

Segment Financial Services

Outlook

Contacts

TRATON GROUP HIGHLIGHTS Q1 2019

• Sales volume up by +7.4% to a first quarter record of 57,163 units
• Sales revenue increased by +6.0%1 to €6,413 mn; all brands contributed
• Operating profit improved significantly by +26.8% to €490 mn2
• RoS 7.6%2 (+130bpt)
• Net income rose by +22.7% to €383 mn
• Net cash flow Industrial Business at €1,602 mn (adjusted €-376 mn); Net liquidity at €604 mn (incl. first time recognition of IFRS 16)
• TRATON has become a SE
• TRATON increased its holding in MAN SE to 94.4% of the share capital as result of the tender process concluded on March 4, 2019
• MAN T&B presented the electric bus Lion's City E
• Scania started industrial operations in Thailand

1 Prior Year including €196 mn VGSG sales revenue, which was sold as at January 01, 2019 2 Including €19 mn insurance claim Note: Delta Q1 19 vs. Q1 18

June 03, 2019 / Investor Relations

GROUP – SEGMENT HIGHLIGHTS Q1 2019

Industrial Business (IB)		Y-o-Y
Order intake	64,357 units	-4.5%
Sales volume	57,163 units	+7.4%
Book-to-bill	1.13	-14bpt
Sales revenue	€6,305 mn	+9.4%
Operating profit1	€457 mn	+30.0%
Return on sales1	7.3%	+120bpt
Net income	€351 mn	+22.0%
Net cash flow	€1,602 mn	+€1,533 mn

Financial Services (FS)		Y-o-Y
Net portfolio	€9.1 bn	+14.4%
Penetration rate	40.2%	-30bpt
Sales revenue	€203 mn	+13.3%
Operating profit	€33 mn	+11.2%
Net income	€25 mn	+18.5%
Equity	€858 mn	+12.6%

• Operating profit in IB up on good fix cost leverage; R&D stayed almost flat YoY in Q1 19

• First time adoption of IFRS 16 amounts to €1,064 mn in Q1 19 and reduces net liquidity to €604 mn in Q1 19

1 Including €19 mn insurance claim Note: Delta Q1 19 vs. Q1 18

GROUP – SALES REVENUE AND OPERATING PROFIT

Sales revenue (€mn) Operating profit (€mn)

1 Including €196 mn VGSG sales revenue, which was sold as at January 01, 2019 2 Calculated as the ratio of operating profit to sales revenue 3 Including €19 mn insurance claim

GROUP – SALES VOLUME DEVELOPMENT

Volume delivered (units)

Africa and Russia 1 Including MAN TGE vans (1,335 units in Q1 18, 3,122 units in Q1 19) 2 EU member states plus Norway and Switzerland

Commentary

• TRATON benefits from continued strength of its core markets
• TRATON sustains leading position in trucks in the EU 28+2 region2
• European truck market slightly up in Q1 19; TRATON outperformed German market development by ~10%-points
• Deliveries up in South America. Strong sales increase in Brazil partially offset by strongly decelerating volumes in Argentina
• Continued strong market recovery in Brazil; TRATON remains among the leading truck manufacturers in the region
• Continued strong growth of MAN TGE vans
• Bus volumes declined on lower sales in Middle East,

GROUP – SALES ACROSS EUROPE GREW FASTER THAN UNDERLYING MARKET

1 Excluding MAN TGE vans 2 EU 28+2: EU member states plus Norway and Switzerland 3 Information shown might include estimates or preliminary data; for EUR 28+2 and Germany data collected from ACEA provisional new registrations figures as at April 25 2019, trucks ˃ 16t; for Brazil data collected from ANFAVEA trucks ˃ 6t as at April 04, 2019; South America own estimates

June 03, 2019 / Investor Relations

INDUSTRIAL BUSINESS – ORDER INTAKE AND SALES VOLUME

Order intake (units) Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 67,359 64,357 -4.5% 1.27 1.13 Book-to-bill1 (ratio in units)

• Order intake slightly below record level from prior year but up on Q4 18 level
• Book-to-bill ratio on a healthy level

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

• Strong growth in core truck markets
• All three brands showed positive development

INDUSTRIAL BUSINESS – SALES REVENUE AND OPERATING PROFIT

Sales revenue (€mn)

• All brands with significant increase in sales revenue
• Aftersales share at 20%

1 Calculated as the ratio of operating profit to sales revenue 2 Including €19 mn insurance claim

• OP benefitted from sales revenue growth and fix costs leverage
• All three brands contributed positively

INDUSTRIAL BUSINESS – SALES REVENUE BY BRAND AND OPERATING PROFIT

1 Calculated as the ratio of operating profit to sales revenue 2 Including €19 mn insurance claim Note: Figures shown as at Q1 19; percentage change calculated YoY, i.e. Q1 19 vs. Q1 18

June 03, 2019 / Investor Relations

INDUSTRIAL BUSINESS – INDEBTEDNESS

Net financial indebtedness / net liquidity bridge (€mn)

1 Investments in PP&E and intangible assets 2 Amongst others reflecting the Power Engineering disposal 3 Including, amongst others, €994 mn payments for tendered MAN shares

MAN TRUCK & BUS – HIGHLIGHTS Q1 2019

• Unit sales considerably higher than prior-year due to an increase in truck sales volume and a further strong growth of MAN TGE vans
• Book-to-bill at 1.20
• Operating profit benefitted from rise in volume, lower R&D and an increase of after sales revenues
• MAN Truck & Bus continuously works on optimizing its processes and cost structures
• MAN presented the electric bus Lion's City E at the BUS2BUS fair in Berlin
• MAN Truck & Bus has become a European stock corporation (SE)

MAN TRUCK & BUS – KEY FIGURES

1 Book-to-bill is defined as the ratio of trucks and bus units ordered to trucks and bus units delivered 2 Calculated as the ratio of operating profit to sales revenue

GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK CONTACTS FINANCIAL CALENDER

SCANIA VEHICLES & SERVICES – HIGHLIGHTS Q1 2019

• Sales revenue outpaced sales volume growth
• Book-to-bill at 1.13
• Operating profit benefitted from higher truck and service volume and positive FX effects while remaining impacted from dual production costs
• Scania started industrial operations in Bangkok, Thailand
• Scania and Nobina, the largest public transport operator in the Nordic countries, will collaborate to commence trials of autonomous buses on regular routes in the Stockholm area
• Pilot study launched to test silent overnight deliveries in Stockholm, Sweden using a hybrid truck from Scania

GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK CONTACTS FINANCIAL CALENDER

SCANIA VEHICLES & SERVICES – KEY FIGURES

1 Book-to-bill is defined as the ratio of trucks and bus units ordered to trucks and bus units delivered 2 Calculated as the ratio of operating profit to sales revenue

VOLKSWAGEN CAMINHÕES E ÔNIBUS – HIGHLIGHTS Q1 2019

• Brazilian truck market continued to recover in tandem with the economic upturn
• Deliveries in Argentina almost came to a halt as the overall economic situation further deteriorated
• Sales volume and sales revenue increased YoY
• Operating profit at €8 mn
• Newest member of the Modular Consortium production system in the Resende vehicle plant is Kroschu (Kromberg & Schubert), responsible for the finishing of truck cabins
• VWCO merged its Sales, Market and Post-Sales Directorates

VOLKSWAGEN CAMINHÕES E ÔNIBUS – KEY FIGURES

1 Book-to-bill is defined as the ratio of trucks and bus units ordered to trucks and bus units delivered 2 Calculated as the ratio of operating profit to sales revenue

FINANCIAL SERVICES – NET PORTFOLIO AND PENETRATION RATE

Net portfolio1 (€bn) Commentary Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 8.0 9.1 +14.4% Penetration rate2 (%) Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 40.5% 40.2% -30bpt

• By the end of Q1 19 the customer finance portfolio amounted to €9.1 bn; this represents an increase of 5% compared to YE 18
• The penetration rate on new trucks was 40.2% (PY: 40.5%) in Q1 19 in those markets where Financial Services operates

1 Reflecting closing balance. Net portfolio defined as gross portfolio less bad debt provisions 2 Trucks only

FINANCIAL SERVICES – KEY FIGURES

• Operating income in the first quarter increased by 11% to €33 mn
• The portfolio growth and FX impacted results positively, while slightly lower margins and increased operating cost had a negative effect

1 Reflecting lease income and interest income before intersegment consolidation

OUTLOOK – TRUCK MARKET

Truck market development (˃ 6t, k units)

Source: IHS Markit 1 EU28+2 region consisting of EU member states plus Norway and Switzerland. Cyprus, Malta, and Luxembourg excluded, as no IHS Markit data available 2 Incl. Argentina, Brazil, Bolivia, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Nicaragua, Panama, Peru, Venezuela; excl. Mexico (part of N. America); excl. Paraguay and Uruguay, as no IHS Markit data for trucks >6t available

OUTLOOK – TRATON 2019

SALES VOLUME

Slight increase compared with previous year

SALES REVENUE Slightly above previous year

RETURN ON SALES 6.5% – 7.5%

NET CASH FLOW INDUSTRIAL BUSINESS Cash conversion of 30% - 40%

CONTACTS INVESTOR RELATIONS

Rolf Woller

• 49 162 172 33 62 rolf.woller@traton.com

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

Helga Würtele

• 49 89 360 98 334 helga.wuertele@traton.com

Thomas Paschen

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

FINANCIAL CALENDAR

DATE	EVENT / PUBLICATION OF
May 7, 2019	Q1 2019
July 29, 2019	Half-year 2019
November 4, 2019	9-month 2019