TRATON SE — Investor Presentation 2019

Sep 26, 2019

Munich, 26 September 2019

Baader Investment Conference

TRATON GROUP – CREATING A GLOBAL CHAMPION

ROLF WOLLER, HEAD OF INVESTOR RELATIONS

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 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.

TRATON GROUP HAS CONTINUOUSLY DELIVERED ON ITS STRATEGIC GOAL SINCE THE INCEPTION OF VOLKSWAGEN TRUCK & BUS

Note: TRATON GROUP including Financial Services

1 Calculated as the ratio of adj. operating profit to sales revenue. Adj. operating profit includes PPA (from Scania and VWCO) and consolidation effects (MAN T&B – VWCO). VGSG operations (sold as of January 2019) included from 2016 to 2018 2 Including €403 mn adjustment for provision in relation to Scania antitrust fine and €58 mn adjustment for restructuring expense at VWCO 3 Including (€50 mn) adjustment for release of restructuring provision at MAN T&B 4 Including €137 mn adjustment for expense in relation to Indian market exit at MAN T&B 5 Including adjustments of (€13 mn) from the reversal of a restructuring provision at VWCO. Including €19 mn insurance claim

LEADING GLOBAL BRANDS AND STRATEGIC ALLIANCE PARTNERS

SNAPSHOT TRATON GROUP 2018

€25.9 bn3 Sales Revenue €1.7 bn5 Units Sold Adj. Operating Profit 233 k ¹

Note: Trucks >6t, VWCO trucks ≥ 5t; figures are financially rounded. TRATON GROUP including Financial Services

1 TRATON GROUP unit sales total figures based on company information 2 EU28+2 region consisting of EU member states plus Norway and Switzerland 3 Including operations no longer held by TRATON GROUP as of January 2019 (VGSG), consolidation effects (MAN T&B – VWCO), other segments and reconciliation 4 Includes Vehicles and Services and Financial Services; post consolidation effects; excl. PPA 5 Including aligned PPA (VWCO PPA – MAN Origin; Scania PPA – VW Origin) 6 Including €137 mn adjustment for expense in relation to Indian market exit at MAN T&B

KEY COMPANY HIGHLIGHTS

TRATON GROUP WITH #1 TRUCK MARKET POSITION IN EUROPE AND SOUTH AMERICA

Core markets of TRATON GROUP brands TRATON GROUP truck market share in 2018 (>15t)

Europe1

CHAMPION

Market leader with 33% market share

GROWTH PROFITABILITY AND SYNERGIES EXECUTION GLOBAL

Market leader in Germany with 38% market share

South America2

Market leader with 30% market share

Market leader in Brazil with 37% market share

Source: IHS Markit

Note: Smaller presences in additional countries not highlighted (TRATON GROUP active in >120 countries worldwide, including bus activities)

1 EU28+2 region consisting of EU member states plus Norway and Switzerland. Cyprus, Malta, and Luxembourg excluded, as no IHS Markit data available. TRATON GROUP's sales in Russia not included in calculation of Europe market share

EXPANDING GLOBAL REACH THROUGH ALLIANCE PARTNERS TO ADDRESS ALL MAJOR PROFIT POOLS ALLIANCE PARTNERS 13%1 ASSOCIATES 16%2 STRATEGIC PARTNER 38%3 North America – Partnership since 2016 • Intention to localize MAN heavy-duty truck in world's largest market • Evaluation of technology/procurement cooperation • Cooperation: Future logistics/transportation, technology and e-mobility • LoI for procurement JV signed with global synergy potential Japan & South East Asia – Cooperation since 2018 China – Partnership since 2009 • Technology cooperation: first SoPs by 2020/21 • Synergies in procurement JV achieved, further potential TRATON GROUP brands Truck market share in 2018 (>15t) Alliance partners Core markets of

GROWTH PROFITABILITY AND SYNERGIES EXECUTION GLOBAL

CHAMPION

Source: IHS Markit

Note: SoP = Start of Production

1 Market share of Navistar Canada and USA 2 Market share of CNHTC (parent company of Sinotruk) in China (including Hong Kong) 3 Market share of Hino in Japan and South East Asia (Indonesia, Australia, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand, Vietnam)

LEADING HEAVY DUTY PLATFORM AS BASIS FOR FURTHER EXPANSION AND SYNERGY REALIZATION

Potential heavy duty platform reach of top OEMs incl. associates and strategic partner Sales volumes >15t in 2018, in k units

Leverage technologies and expertise through global brands

GROWTH PROFITABILITY AND SYNERGIES EXECUTION GLOBAL

CHAMPION

Source: IHS Markit

Note: Truck volumes (>15t) including selected strategic alliances

1 Top 3 players with alliance partners 2 Including partnerships with Dongfeng (45% ownership) and Eicher 3 Dongfeng including Dongfeng-Volvo JV sales volume 4 Including partnerships with Foton (50% ownership) and Kamaz 5 Foton including Foton-Daimler JV sales volume 6 CNHTC volume shown

TRATON GROUP WITH MULTIPLE STRATEGIC LEVERS FOR GROWTH

TRATON GROUP SALES REVENUE

	SUSTAIN CORE	• Market leadership in Europe and South America • Aftermarket and service growth on existing rolling fleet
€25.9 bn1	GO GLOBAL	• Mutually beneficial / smart partnerships globally • Expanding premium segments in China
	GROW SHARE	• New truck generation for each TRATON GROUP brand targeted to be launched by 2021 • Leverage (captive) sales and service network
	DRIVE INNOVATION	Intelligent services utilizing connected fleet of 450k+ vehicles2 • • Among the broadest range of alternative fuel technologies3
2018			Mid-term

SUSTAIN CORE, GO GLOBAL – STRONG CORE MARKETS AND INCREASINGEXPOSURE TOGLOBAL MARKETS FORM THE BASIS FOR FUTURE TOPLINE GROWTH

CHAMPION

GROWTH PROFITABILITY AND SYNERGIES EXECUTION GLOBAL

SUSTAIN CORE		GO GLOBAL
Market volume truck sales >6t 2018, k units	Mid-term market outlook	Market volume truck sales >6t 2018, k units	Mid-term market outlook
Europe1	Robust volumes; services with 381 positive impact on profits	North 560 America4	Current strong macro-economic with mixed outlook conditions
South 126 America2	Strong recovery expected post Brazil market downturn	China 1,325	Premium and upper budget segment expected to grow
Russia 80	Continued solid growth momentum accompanied by margin increase	S.E. Asia5 328 & Japan	markets with Heterogenous mixed growth outlook
Successful global (export) business of premium Other3 trucks out of European / Brazilian home base		Addressable market volume	Additional market volume
• Maintain •	market leadership in Europe and Brazil Grow service sales revenue on existing rolling fleet	• Drive mutually beneficial / smart partnerships • Expand profitable segments in China, South America and other emerging markets

Source: IHS Markit (market volumes)

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 Including Argentina, Brazil, Bolivia, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Nicaragua, Panama, Peru, Uruguay, Venezuela; excl. Mexico (part of North America); excl. Paraguay, as no IHS Markit data for trucks >6t available 3 Including e.g. Australia, China, SEA, South Africa, South Korea 4 Canada, Mexico, United States 5 Australia, Indonesia, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand, Vietnam

DRIVE INNOVATION – TRATON GROUP IS TRANSFORMING TRANSPORTATION

GROWTH PROFITABILITY AND SYNERGIES EXECUTION GLOBAL

CHAMPION

Note: HVO = Hydrogenated Vegetable Oil; BEV = Battery electric vehicle 1 Scania and Rio Tinto trialing autonomous truck in Australia 2 As of Q4 2018 3 Based on a company comparison with other offerings in the market

TRATON GROUP WITH STRONG TRACK RECORD OF PERFORMANCE IMPROVEMENT ACROSS BRANDS. FURTHER POTENTIAL TO BE REALIZED

GROWTH PROFITABILITY AND SYNERGIES EXECUTION GLOBAL

CHAMPION

1 Based on adj. operating profit including PPA (from Scania and VWCO) and consolidation effects (MAN T&B – VWCO). VGSG operations (sold as of January 2019) included from 2016 to 2018 2 Scania Group including Financial Services post Scania consolidation effects; excl. PPA 3 Including €403 mn adjustment for provision in relation to Scania antitrust fine 4 Based on operating profit for Scania V&S of €828 mn, Scania Financial Services of €70 mn and consolidation effects of (€3m) 5 Strategic target brands want to achieve over the cycle 6 Including €137 mn adjustment for expense in relation to Indian market exit at MAN T&B 7 Including €58 mn adjustment for restructuring expense at VWCO 8 Including adjustments of (€13 mn) from the reversal of a restructuring provision at VWCO. Including €19 mn insurance claim 9 Strategic target TRATON GROUP wants to achieve over the cycle, including consolidation effects and others 10 Including adjustments of (€13 mn) from the reversal of a restructuring provision

OPERATIONAL PERFORMANCE IMPROVEMENTS IN PLACE ACROSS ALL THREE BRANDS

GROWTH PROFITABILITY AND SYNERGIES EXECUTION GLOBAL

CHAMPION

Note: Only selected key performance drivers displayed. %points rounded to the first decimal place. Adj. RoS calculated as the ratio of adj. operating profit to sales revenue. Scania Group including Financial Services post Scania consolidation effects; excl. PPA. 1 Based on operating profit for Scania V&S of €828 mn, Scania Financial Services of €70 mn and consolidation effects of (€3m) 2 Including €403 mn adjustment for provision in relation to Scania antitrust fine 3 Including (€50 mn) adjustment for release of restructuring provision at MAN T&B 4 Including €58 mn adjustment for restructuring expense at VWCO 5 Including adjustments of (€13 mn) from the reversal of a restructuring provision

GROWTH PROFITABILITY

• Moving from opportunistic synergy projects to more systematic approach to synergy identification and realization

DEEP DIVE JOINT POWERTRAIN SYNERGIES – CBE: LEVERAGING ENGINE ACROSS BRANDS ENSURES SIGNIFICANT SYNERGY RAMP-UP OVER YEARS TO COME

GROWTH PROFITABILITY AND SYNERGIES EXECUTION GLOBAL

CHAMPION

TRATON EXECUTIVE MANAGEMENT TEAM WITH STRONG TRACK RECORD AND LONGSTANDING INDUSTRY EXPERIENCE

GROWTH EXECUTION GLOBAL

PROFITABILITY AND SYNERGIES

CHAMPION

Years in industry

Source: Own calculation and estimates based on publicly available sources (ACEA, IHS Markit, ANFAVEA, …)

1 EU28+2 region consisting of EU member states excluding Malta plus Norway and Switzerland 2 In addition to the EU28+2 countries with particular focus on Germany, these markets comprise Brazil, Russia, South Africa, and Turkey

TRATON GROUP OUTLOOK – RECENT TRACK RECORD, OUTLOOK 2019 AND OVER-THE-CYCLE TARGET

TRATON GROUP – UNIQUE PROFITABLE GROWTH PROFILE

Three strong brands…

…creating a Global Champion…

• Scania: Enters harvesting period on New Truck Generation, profits from shortterm improvement of cost base and attractive aftermarket and service growth
• MAN T&B: Achieved profit stabilization, enters new era of profitability post ramp-up of new truck generation

• VWCO: Benefits from Brazil market recovery and broader product pipeline

• Exceptional synergy potential among TRATON GROUP brands and with alliance partners

• Smart partnership approach creates scale and access to global profit pools
• Monetize on customer focused innovation and ensure efficient capital allocation

…with highly experienced team

• Longstanding industry experience
• Proven track record
• Commitment to deliver the Global Champion Strategy

APPENDIX

TRUCKS ARE CAPITAL GOODS: PURCHASE DECISIONS ARE BASED ON RATIONAL FACTORS – TOTAL COST OF OWNERSHIP (TCO)

		TRUCKS	PASSENGER CARS
Sector		Capital goods	Consumer goods
Customer expectations	Customer focus	Total cost of ownership	Costs Emotion Prestige
	Annual mileage (km)	~130,000	~14,0001
Fuel consumption (l/100 km)		~30-352	~4-73
Product	Product lifecycle (years)	>10	~4-5
	Vehicles sold annually	4 ~4 mn	~84 mn5

Source: IHS Markit, ICCT, Kraftfahrt-Bundesamt

1 Average mileage driven in 2017 by passenger vehicles registered in Germany 2 Fuel consumption for tractor-trailers over long-haul operation 3 Fuel consumption for passenger cars in EU28+2 (urban and extra-urban) 4 IHS Markit 2018 forecast for total global market figure 5 VDA data for total global market figure

TRUCK INDUSTRY DRIVEN BY TOTAL COST OF OWNERSHIP (TCO)

KEY ELEMENTS2

FUEL

Annual mileage, driving behavior, powertrain efficiency

DRIVER Driver salary, related costs

REPAIR AND MAINTENANCE

Usage pattern, cost/frequency of repair & maintenance, uptime

VEHICLE

Purchasing costs, vehicle specification, residual value

ADMIN AND SERVICES General & administrative processes, driver & vehicle and fleet management

CONNECTIVITY AT SCANIA

How can Scania monetize the data?

• Customers pay for reduced TCO... and Scania benefits…
• Scania knows…
• …when a truck needs service …where a truck can be serviced …what service a truck needs

Win/Win
Customer		Scania
Higher uptime	•	Higher work
Demand		shop utilization
driven workshop visits	•	Optimized NWC
Higher predictability	•	Feedback loops to R&D

H1 2019 RESULTS

TRATON GROUP HIGHLIGHTS H1 2019

• Deliveries up by +10.0% to a first half record of 123,336 units
• Sales revenue increased by +10.4%1 to €13,541 mn; all brands contributed
• Operating profit improved significantly by +24.5% to €1,075 mn2
• RoS 7.9% (+110bpt)2
• Earnings after tax excluding minorities rose by +62.1% to €772 mn
• Net cash flow Industrial Business at €1,784 mn (before the sale of Power Engineering €-194 mn); Net liquidity Industrial Business at €689 mn (incl. recognition of IFRS 16)
• TRATON has become a SE
• TRATON SE celebrated its successful stock market debut in Frankfurt and Stockholm on June 28, 2019

Note: Delta H1 2019 vs. H1 2018

1 Prior year excluding €348 mn VGSG sales revenue, which was sold as at January 01, 2019 2 Adjusted operating profit +23.1% to €1,062 mn, adjusted RoS 7.8% (+100bpt); Q1 2019 including €19 mn insurance claim

GROUP – SEGMENT HIGHLIGHTS Q2 / H1 2019

Industrial Business (IB)
	Q2 19	Y-o-Y	H1 19	Y-o-Y
Order intake (units)	56,134	-6.7%	120,491	-5.5%
Deliveries (units)	66,173	+12.3%	123,336	+10.0%
Book-to-bill	0.85	-17bpt	0.98	-16bpt
Sales revenue (€mn)	7,015	+11.3%	13,320	+10.4%
Operating profit (€mn)1	551	+26.6%	1.008	+28.1%
Return on sales (%)1	7.9	+95bpt	7.6	+105bpt
Earnings after tax (€mn)	341	+155.6%	692	+64.2%
Net cash flow (€mn)	182	+€476mn	1,784	+€2,035mn

Financial Services (FS)
	Q2 19	Y-o-Y	H1 19	Y-o-Y
Net portfolio2 (€bn)			9.5	+9.0%
Penetration rate (%)	42.5	+7bpt	41.5	-7bpt
Sales revenue (€mn)	216	+7.6%	419	+10.3%
Operating profit (€mn)	37	+5.2%	70	+8.0%
Earnings after tax (€mn)	27	-4.5%	52	+7.1%

• Book-to-bill mainly lower in Q2 2019 due to a noticeable decrease in truck order intake in the EU28+2 region
• Earnings after tax of the Industrial business significantly increased in Q2 2019 as a result of better financial result
• Net cash flow in the Industrial business in Q2 2019 improved considerably as a result of increased operating profit

Note: Delta Q2 2019 vs. Q2 2018 / H1 2019 vs. H1 2018

1 Adjusted operating profit Q2 2019: +23.7% to €538 mn, adjusted RoS 7.7% (+77bpt); Adjusted operating profit H1 2019: +26.6% to €996 mn, adjusted RoS 7.5% (+100bpt); Q1 2019 including €19 mn insurance claim 2 Reflecting closing balances, as of June 30, 2019 vs. December 31, 2018

GROUP – SALES REVENUE AND RETURN ON SALES

SALES REVENUE (€mn)

1 Calculated as the ratio of operating profit to sales revenue 2 Including €196 mn (Q1 2018) / €152 mn (Q2 2018) VGSG sales revenue, which was sold as at January 01, 2019; adjusted growth rates: Q1 2019 9.5% and Q2 2019: 11.3%

GROUP – OPERATING PROFIT AND RETURN ON SALES

OPERATING PROFIT (€mn)

1 Calculated as the ratio of operating profit to sales revenue

GROUP – DELIVERIES DEVELOPMENT

DELIVERIES (units)

• TRATON benefits from continued strength of its core markets
• TRATON sustains leading position in trucks in the EU28+2 region2
• Trucks deliveries increased by 14% in Q2 2019 (Q1 2019: +10%); trucks deliveries ex TGE increased by 10% in Q2 19 (Q1 19: +7%)
• Buses deliveries declined by 2% in Q2 2019 (Q1 2019: -18%)

1 Including MAN TGE vans (1,335 units in Q1 2018, 1,843 units in Q2 2018, 3,122 units in Q1 2019, 4,144 units in Q2 2019) 2 EU member states excluding Malta plus Norway and Switzerland

GROUP – STRONG SALES GROWTH IN CORE MARKETS

1 Excluding MAN TGE vans 2 EU28+2: EU member states excluding Malta 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 July 24 2019, trucks ˃ 16t; for Brazil data collected from ANFAVEA trucks ˃ 6t as at July 04, 2019; South America own estimates

INDUSTRIAL BUSINESS – ORDER INTAKE

• Noticeable decrease of order intake in Q2 2019 in the EU28+2 region, driven in particular by Germany and UK • Substantial declines in Russia, India, and Turkey. Strong increase in Brazil in the wake of the economic recovery

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

INDUSTRIAL BUSINESS – DELIVERIES

DELIVERIES (units)

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

INDUSTRIAL BUSINESS – REGIONAL TRUCK DELIVERIES DEVELOPMENT1

1 Excluding MAN TGE vans 2 EU member states excluding Malta plus Norway and Switzerland

INDUSTRIAL BUSINESS – SALES REVENUE AND RETURN ON SALES

SALES REVENUE (€mn)

• All brands with significant increase in sales revenue in Q2 2019 and H1 2019, driven by a strong increase in Truck business

• Operating profit benefited from increase in deliveries combined with favourable product mix and fix cost leverage

• Primary R&D expenses decreased by 3% in H1 2019; capitalization rate slightly above 30%

1 Calculated as the ratio of operating profit to sales revenue

INDUSTRIAL BUSINESS – SALES REVENUE BY BRAND AND RETURN ON SALES

Note: Figures shown as at Q2 2019 / H1 2019; percentage change calculated YoY, Q2 2019 vs. Q2 2018 / H1 2019 vs. H1 2018 1 Calculated as the ratio of operating profit to sales revenue

1 Investments in PP&E and intangible assets 2 Amongst others reflecting the Power Engineering disposal 3 Including, amongst others, €-1,109 mn payments for tendered MAN shares, €-3,250 mn contribution of capital reserves and €+4,161 mn DPLTA with VW AG

FINANCIAL SERVICES – SALES REVENUE AND RETURN ON SALES

SALES REVENUE (€mn)

• Operating profit in Q2 2019 increased by 5% to €37 mn
• Portfolio growth and FX impacted results positively, while lower margins and increased operating cost had negative effect

FINANCIAL SERVICES – NET PORTFOLIO AND PENETRATION RATE

GROUP – CONSOLIDATED INCOME STATEMENT (IFRS)

in EUR million	H1 2019	H1 2018
Sales revenue	13,541	12,609
Cost of sales	-10,762	-10,094
Gross profit	2,778	2,515
Distribution expenses	-1,214	-1,165
Administrative expenses	-502	-511
Net impairment losses on financial and contract assets	-26	-18
Other operating income	288	386
Other operating expenses	-249	-344
Operating profit	1,075	863
Share of profits and losses of equity-accounted investments	70	83
Interest income	38	40
Interest expenses	-122	-216
Other financial result	-16	-190
Financial result	-31	-284
Earnings before tax	1,044	579
Income tax income/expense	-251	-153
Current	-193	-212
Deferred	-57	59
Result from continuing operations, net of tax	794	426
Result from discontinued operations, net of tax	-2	53
Earnings after tax	792	479
of which attributable to
Noncontrolling interests	20	3
TRATON SE shareholders	772	476

GROUP – CONSOLIDATED BALANCE SHEET: ASSETS / EQUITY AND LIABILITIES (IFRS)

in EUR million	30.06.2019	31.12.2018
Assets
Noncurrent assets
Intangible assets	6,602	6,597
Property, plant and equipment	6,484	5,469
Lease assets	6,868	6,599
Equity-accounted investments	1,276	1,223
Other equity investments	49	37
Financial services receivables	4,547	4,212
Other financial assets	99	63
Other receivables	677	663
Tax receivables	47	50
Deferred tax assets	897	939
	27,546	25,851
Current assets
Inventories	5,610	4,822
Trade receivables	2,315	2,319
Financial services receivables	3,050	2,688
Other financial assets	402	6,371
Other receivables	856	939
Tax receivables	101	140
Marketable securities	1,477	98
Cash, cash equivalents	2,670	2,997
Assets classified as held for sale	-	157
	16,480	20,533
Total assets	44,026	46,384

in EUR million	30.06.2019	31.12.2018
Equity and Liabilities
Equity
Subscribed capital	500	10
Capital reserves	20,841	21,331
Retained earnings	-5,573	-2,064
Other reserves	-2,704	-2,478
Equity attributable to TRATON SE shareholders	13,065	16,799
Noncontrolling interests	248	2
	13,313	16,801
Noncurrent liabilities
Financial liabilities	5,553	5,449
Tax payables	124	122
Other financial liabilities	2,514	2,333
Other liabilities	1,885	1,780
Deferred tax liabilities	766	824
Provisions for pensions	1,737	1,506
Provisions for taxes	17	16
Other provisions	1,198	1,184
	13,794	13,217
Current liabilities
Put options and compensation rights granted to noncontrolling interest shareholders	-	1,827
Financial liabilities	6,523	5,366
Trade payables	2,863	2,969
Tax payables	122	125
Other financial liabilities	2,889	1,620
Other liabilities	3,597	3,263
Provisions for taxes	23	137
Other provisions	903	938
Liabilities directly associated with assets classified as held for sale	-	123
	16,920	16,366
Total equity and liabilities	44,026	46,384

GROUP – CONSOLIDATED STATEMENT OF CASH-FLOWS (IFRS)

in EUR million	H1 2019	H1 2018
Cash and cash equivalents at beginning of period	2,997	4,593
Earnings before tax	1,044	579
Income taxes paid	-256	-274
Depreciation and amortization of, and impairment losses on, intangible assets,
property, plant and equipment, and investment property*	411	301
Amortization of and impairment losses on capitalized development costs*	92	84
Impairment losses on equity investments*	0	0
Depreciation of and impairment losses on lease assets*	564	535
Change in pensions	1	25
Gain/loss on disposal of noncurrent assets and equity investments	-4	-13
Share of profit or loss of equity-accounted investments	-70	-272
Other noncash expense/income	43	446
Change in inventories	-780	-843
Change in receivables (excluding financial services)	-212	-296
Change in liabilities (excluding financial liabilities)	251	670
Change in provisions	-13	4
Change in lease assets	-784	-722
Change in financial services receivables	-617	-394
Cash flows from operating activities - discontinued operations	-	-152
Cash flows from operating activities	-330	-321
Investments in intangible assets (excluding development costs), property, plant and equipment, and investment property	-358	-344
Additions to capitalized development costs	-223	-188
Acquisition of other equity investments	-5	-21
Disposal of subsidiaries	1,978	0
Proceeds from disposal of intangible assets, property, plant and equipment, and	18	31
investment property
Investing activities attributable to operating acitivities	1,410	-522
Net cash flow - continuous operations	1,080	-691

in EUR million	H1 2019	H1 2018
Change in investments in marketable securities	-1,381	-62
Changes in loans and time deposits	68	55
Cash flows from investing activities - discontinued operations	-	-60
Cash flows from investing activities	97	-589
Profit transfer to Volkswagen AG	911	28
Compensating rights of minority shareholders	-1,109	-116
Proceeds from issuance of bonds	1,640	1,400
Repayments of bonds	-595	-
Changes in other financial liabilities	-874	-349
Lease payments	-79	0
Cash flows from financing activities - discontinued operations	-	0
Cash flows from financing activities	-105	963
Effect of exchange rate changes on cash and cash equivalents	10	-50
Net change in cash and cash equivalents	-328	2
Cash and cash equivalents at end of period	2,670	4,596

*Net of impairment reversals

GROUP – ADJUSTMENTS

Adjustments (in € mn - costs)	2016	2017	2018	1H 2019
Expense for antitrust proceedings (Scania)	403
Release of restructuring provisions at MAN Truck & Bus		-50
Expenses in relation to India market exit at MAN Truck & Bus			137
Restructuring expenses at Volkswagen Caminhões e Ônibus	58			-13

CONTACTS INVESTOR RELATIONS

Rolf Woller

• 49 89 360 98 335 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

SHARE DATA

SHARE DATA

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