TRATON SE — Investor Presentation 2020

Jul 31, 2020

IR CONFERENCE CALL – HALF-YEAR FINANCIAL REPORT 2020 Munich, 31 July 2020

MATTHIAS GRÜNDLER, CEO CHRISTIAN SCHULZ, CFO

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

MANI	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 TRATONGROUP in any jurisdiction, nor doesit 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 figuresrelate 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 marketsshares of TRATONGROUP and any of the participantsin 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

Current Situation

TRATON GROUP Highlights

Segment Industrial Business

Segment Financial Services

Status Update

CURRENT SITUATION – BUSINESS CLIMATE

• An unprecedented situation because of the COVID-19 pandemic impact
• Significant decline in demand and supply chain disruptions
• Substantial part of production capacities closed or idled mainly end of March and April
• Gradual restart of production and positive direction in May and June
• Companies focusing on cost reduction and on liquidity

Global economic outlook for 20201 significantly deteriorated; contraction is expected to be much worse than during the 2008/2009 financial crisis

Commercial vehicle market forecasts 2020 lowered sharply, although expectations were already quite low; huge bandwith2 still displays high uncertainty:

• For EU27+3 region most institutes foresee a decline of the truck market (MDT/HDT) between -30% to -50%
• For Brazil institutes foresee a decline of the truck market (MDT/HDT) between -15% to -30%

CURRENT SITUATION – APRIL RESPONSIBLE FOR MOST OF THE DECLINE IN Q2 2020

Industrial Business Q2 2020 Financial Services Q2 2020

Key performance indicators largely derailed by production stoppage and the decline in economic activities in April

Incoming orders declined by 23 k units Y-o-Y; 54% of the decline caused by April

Sales revenue declined by €2.7 bn Y-o-Y; 42% of the decline caused by April

Operating profit declined by €1.0 bn Y-o-Y; 39% of the decline caused by April

Net cash flow declined by €0.4 bn Y-o-Y; 168% of the decline caused by April

Key performance indicators largely derailed by production stoppage and the decline in economic activities in April

Sales revenue declined by €20 mn Y-o-Y; development evenly distributed over the quarter

Operating profit declined by €18 mn Y-o-Y; most of the decline due to increased bad debt provisions, reflecting our customers' deteriorating payment ability at present

Please remember that Q2 2019 was the overall most successful quarter for TRATON since its establishment

Book-to-bill1 (ratio in units)

CURRENT SITUATION – POSITIVE DIRECTION ESTABLISHED SINCE MAY UNIT SALES (`000 units)

UNIT SALES (Y-o-Y change)

• Expected weaker demand development was further amplified by the uncertainties resulting from the COVID-19 pandemic.

• Production plants were shut during most of April 2020; restart is in full swing, but it will take some time before we get back to old production and efficiency levels. This is mainly due to implemented health regulations.

• June continues the positive direction started in May; book-to-bill ratios above 1x for Industrial Business throughout Q2 2020.

returned to February

CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX

CURRENT SITUATION – VEHICLE UTILIZATION NEAR PRE-CRISIS LEVELS

Bus business and in particular bus coach business shows only a very slow recovery

After sales and service business remained more resilient

Source: Company Information.

CURRENT SITUATION – IT'S MORE IMPORTANT THAN EVER BEFORE TO ACT HERE AND NOW WHILE NOT LOSING SIGHT OF OUR STRATEGIC LONG TERM GOALS (1)

Act today while planning for tomorrow

CURRENT SITUATION – IT'S MORE IMPORTANT THAN EVER BEFORE TO ACT HERE AND NOW WHILE NOT LOSING SIGHT OF OUR STRATEGIC LONG TERM GOALS (2)

Act today		…while planning for tomorrow
• •	Temporary production stops and restart in all plants worldwide Use of short-time work ("Kurzarbeit") and comparable measures to reduce personnel costs	• •	All important innovation projects up and running Structural transformation in all three brands to secure strong future viability
•	Postponement or cancellation of projects	•	Global Champion Strategy still valid
•	Reduction of overhead and fixed costs	•	Other topics remain further on track
•	Focus on safeguarding liquidity

CURRENT SITUATION – FINANCIAL RESILIENCE

SOUND BALANCE SHEET POSITION (Industrial Business; as of June 30, 2020)

• Equity ratio: solidly at 36%
• Gearing1: currently at only 3%

• Net debt/adjusted EBITDA2: at 0.2x after the end of the DPLTA with Volkswagen AG, €1.4 bn were transferred in February 2020

SOUND LIQUIDITY POSITION (Industrial Business; as of June 30, 2020)

• Strict cash and cost management
• Unrestricted cash3 totaling €2.6 bn
• Credit lines totaling €5.6 bn
• Reprioritizing of our capital expenditures and our research and development projects

First-time solid investment grade ratings assigned to TRATON SE Moody´s at Baa1 (outlook negative) Standard & Poor´s at BBB (outlook stable)

Note: Net debt as of June 30, 2020 amounted to €376 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). 3 Fully available and accessible cash. Additional cash may be located in countries with certain cash transfer limitations, however, is not necessarily "trapped" given such cash is locally used in operations.

CURRENT SITUATION – DEBUT SYNDICATED REVOLVING CREDIT FACILITY (RCF)

€3.75 bn RCF successfully signed by TRATON SE on 29 July 2020

TRATON syndicated RCF

Ample frame amount (€3.75 bn)

Comfortable maturity ("3+1+1y")

• Harmonized bank group (21 lenders)
• One single loan documentation

The debut syndicated RCF marks an important step to back TRATON's recently published S&P/Moody's ratings

Setting it up even in these volatile times mirrors the trust our banking partners have in our strategy

TRATON GROUP HIGHLIGHTS

• Impacts of the COVID-19 pandemic visible
• Incoming orders decreased by -27% to 87,431 units
• Unit sales declined by -37% to 77,738 units
• Sales revenue decreased by -26% to €10,073 mn 2020
  • Operating profit down to €-220 mn, Return on sales -2.2%
  • Profit after tax reduced to €-289 mn
  • Net cash flow Industrial Business at €-347 mn1
  • Net liquidity Industrial Business at €-376 mn2

H1

• TRATON proposes to acquire all outstanding common shares of the US commercial vehicle manufacturer Navistar
• New MAN Truck Generation introduced
• TRATON seeking to execute a squeeze-out of the non-controlling shareholders of MAN SE in accordance with merger law
• First-time solid investment grade ratings assigned to TRATON SE by Moody´s and Standard & Poor´s
• Debut syndicated revolving credit facility signed by TRATON SE

1 H1 2019 reported net cash flow of €1,784 mn, adjusted of €-194 mn before the sale of Power Engineering (€1,978 mn). 2 Net debt as of June 30, 2020 amounted to €376 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. Note: Delta H1 2020 vs. H1 2019.

GROUP – SEGMENT HIGHLIGHTS Q2 / H1 2020

Industrial Business (IB)
	Q2 20	Y-o-Y	H1 20	Y-o-Y
Incoming orders (units)	33,270	-41%	87,431	-27%
Unit sales (units)	31,748	-52%	77,738	-37%
Book-to-bill (units)	1.05	+20 bpt	1.12	+15 bpt
Sales revenue (€mn)	4,290	-39%	9,854	-26%
Operating profit (€mn)	-400	€-951 mn	-265	€-1,273 mn
Return on sales (%)	-9.3	-1,718 bpt	-2.7	-1,026 bpt
Profit after tax (€mn)	-397	€-737 mn	-319	€-1,011 mn
Net cash flow (€mn)1	-179	€-361 mn	-347	€-2,131 mn

Financial Services (FS)
	Q2 20	Y-o-Y	H1 20	Y-o-Y
Net portfolio2 (€bn)			9.3	-2%
Penetration rate (%)	45	+206 bpt	41	-5 bpt
Sales revenue (€mn)	197	-9%	413	-2%
Operating profit (€mn)	19	€-18 mn	44	€-25 mn
Profit after tax (€mn)	11	€-16 mn	29	€-23 mn

• First two months on track despite a weak European truck market.
• Key figures since March negatively influenced by the uncertainties and impacts from COVID-19 pandemic.
• Following the significantly negative impact of the consequences of the COVID-19 pandemic on the net cash flow in April, positive net cash flow was generated again in May and June.
  • Negative net cash flow in Q2 2020 only €-179 mn in the Industrial Business despite the substantial drop in operating profit.

GROUP – SALES REVENUE AND RETURN ON SALES

SALES REVENUE (€mn)

GROUP – UNIT SALES DEVELOPMENT UNIT SALES (units)

• TRATON sustains its leading position in the truck segment in the EU27+3 region and Brazil.
• Expected weaker demand development was further amplified by the uncertainties resulting from the COVID-19 pandemic. All core regions were affected in the truck and bus business.
• Trucks unit sales down by -53% in Q2 2020, trucks unit sales ex MAN TGE -54%.

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 July 23, 2020, trucks ˃ 16t; for Brazil data collected from ANFAVEA trucks ˃ 6t as at July 06, 2020; South America own estimates.

INDUSTRIAL BUSINESS – INCOMING ORDERS

INCOMING ORDERS (units)

• The economic decline already expected for 2020 was exacerbated by the uncertainty resulting from the COVID-19 pandemic, particularly in Q2 2020. Incoming orders in Q2 2020 declined by 41%, resulted from both the truck and bus business.

• April incoming orders deteriorated significantly, positive direction in May and June visible, mainly in the truck business.

1 Book-to-bill is defined as the ratio of trucks and buses incoming orders to trucks and buses units delivered.

INDUSTRIAL BUSINESS – UNIT SALES UNIT SALES (units)

• Expected decline in truck business in the EU27+3 in 2020 was further exacerbated by the uncertainty and restrictions resulting from the COVID-19 pandemic, particularly in Q2 2020. Significant decrease in truck unit sales resulted from all countries in the region. Growth in Brazil slowed significantly. Truck unit sales overall down by -54% in Q2 2020.
• Bus unit sales decreased by -46% in Q2 2020, all core regions were affected.
• April unit sales contracted substantially, positive direction in May and June visible, mainly in the truck business.

INDUSTRIAL BUSINESS – SALES REVENUE AND RETURN ON SALES SALES REVENUE (€mn)

• Decline in sales revenue resulted primarily from the new vehicle business, following the slump in truck and bus unit sales. But sales revenue less down than unit sales largely due to better product mix. After-sales relatively stable (share grew to 24% in Q2 2020).
• Return on sales impacted by declined sales revenue, additional costs due to the rollout of the new truck generation of MAN Truck & Bus and an increasingly difficult used vehicle business. In addition measures taken in connection with the COVID-19 pandemic - in particular the closings of plants - had a negative impact. Product mix was positive.

INDUSTRIAL BUSINESS – SALES REVENUE BY BRAND AND RETURN ON SALES

Note: Figures shown as at Q2 2020 / H1 2020; percentage change calculated Y-o-Y, Q2 2020 vs. Q2 2019 / H1 2020 vs. H1 2019.

INDUSTRIAL BUSINESS – INDEBTEDNESS NET FINANCIAL INDEBTEDNESS [DEBT] / NET LIQUIDITY [CASH] BRIDGE (€mn)

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

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

Note: Industrial Business net financial debt / (cash) 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.

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).

FINANCIAL SERVICES – SALES REVENUE AND RETURN ON SALES SALES REVENUE (€mn)

• Operating profit decreased in Q2 2020 by -50% to €19 mn, resulted from lower margins, negative exchange rate effects, and higher bad debt allowances.

FINANCIAL SERVICES – NET PORTFOLIO AND PENETRATION RATE

• By the end of H1 2020 the customer finance portfolio amounted to €9.3 bn (-7% 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 41% in H1 2020 in those markets where Financial Services operates.
• Book value of equity decreased slightly compared to year end to €957 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.

STATUS UPDATE – ECONOMIC RECOVERY FROM COVID-19 CRISIS LIKELY TO BE DETERMINED BY A COMBINATION OF FACTORS AND STILL HIGHLY UNCERTAIN

1 Includes estimates from IHS, McKinsey, BCG and others.

STATUS UPDATE – FUTURE DEVELOPMENT

The impact of the COVID-19 pandemic on customer demand and supply chains still cannot be estimated with any degree of reliability.

Business outlook for FY 2020 currently not reliably possible.

Provided there is no further increase in the number of COVID-19 cases and no associated countermeasures are adopted by the relevant countries, we are assuming a gradual recovery in our business activity in the second half of 2020.

Overall, however, we continue to expect a drastic fall in unit sales for the fiscal year, and cannot rule out an operating loss for the TRATON GROUP in 2020.

July 31, 2020 / Investor Relations / Half-Year Financial Report 2020

1 EU27+3 region (defined as the EU27 countries with the exception of Malta, plus the United Kingdom, Norway, and Switzerland), (˃ 6t).

STATUS UPDATE – RECENT TRACK RECORD AND OVER-THE-CYCLE TARGET

AND OVER-THE-CYCLE TARGET		Economic effects of COVID-19 pandemic will impact the market and business development in 2020; a reliable forecast is currently not possible
		FY 2018	FY 2019	2020 Outlook	Over-the-cycle RoS target
Unit sales (Units; Growth in %)		233.0 k +14%	242.2 k +4%	n.a.
Group sales revenue Group sales revenue (in €bn; Growth in %) (in €bn; Growth in %)		€25.9 bn +6%	€26.9 bn +4%	n.a.
Group return on sales 1 (in %; operating profit in €bn)		5.8% €1.5 bn	7.0% €1.9 bn	n.a.	9% Over-the-cycleRoS
Cash conversion rate (in %; Industrial Business)2		14%	179%	n.a.

Note: VGSG operations (sold as of January 2019) included in 2018.

1 FY 2018: adjusted RoS 6.4%, adjusted operating profit €1.7 bn; FY 2019: adjusted RoS 7.0%, adjusted operating profit €1.9 bn. 2 Calculated as the ratio of net cash flow to profit after tax; in FY 2019 and FY 2018, the cash conversion rate was impacted by a number of nonrecurring factors; FY 2019 reflected for example the proceeds from the disposal of the Power Engineering business.

Appendix

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

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

Michael Lankes Annual General Meeting, Events

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

Philipp Lotz Analysts and Investors, Rating, Debt Capital Markets

+49 89 360 98 283 philipp.lotz@traton.com

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

Event / Publication of

May 4, 2020 Interim Statement 3M 2020

July 31, 2020 Half-Year Financial Report 2020

September 23, 2020 Virtual Annual General Meeting 2020

November 10, 2020 Interim Statement 9M 2020

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

TRATON SHARE
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
Free Float	10.28%

GROUP – OPERATING PROFIT AND RETURN ON SALES

OPERATING PROFIT (€mn)

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).

Incoming orders (k units)

SCANIA VEHICLES & SERVICES – KEY FIGURES PER QUARTER

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

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

Sales revenue (€mn) Operating profit (€mn) Return on sales (%)

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.

MAN TRUCK & BUS – KEY FIGURES PER QUARTER

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

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

Sales revenue (€mn) Operating profit (€mn) Return on sales (%)

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

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

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

Sales revenue (€mn) Return on sales2 Operating profit (%) ² (€mn)

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.

GROUP – CONDENSED INCOME STATEMENT

	TRATON GROUP		Industrial Business		Financial Services		Others/reconciliation
€ million	H1 2020	H1 2019	H1 2020	H1 2019	H1 2020	H1 2019	H1 2020	H1 2019
Sales revenue	10,073	13,541	9,854	13,320	413	419	-194	-199
Cost of sales	-8,637	-10,762	-8,567	-10,685	-263	-272	193	195
Gross profit	1,436	2,778	1,287	2,635	150	147	-1	-4
Distribution expenses	-1,104	-1,214	-1,044	-1,151	-61	-63
Administrative expenses	-422	-502	-422	-502
Other operating result	-130	12	-85	27	-44	-14	O	O
Operating profit/loss	-220	1,075	-265	1,008	44	70	O	-3
Operating return on sales (in %)	-2.2	7.9	-2.7	7.6	10.8	16.6
Financial result	-101	-31	-101	-34	O	O	O	3
Profit/loss before tax	-321	1,044	-366	975	45	70	O	O
Income taxes	32	-251	47	-281	-15	-18		48
Loss from discontinued operations, net of tax		-2		-2
Profit/loss after tax	-289	792	-319	692	29	52	1	48

GROUP – CONDENSED BALANCE SHEET

		TRATON GROUP		Industrial Business		Financial Services		Others/reconciliation
€ million	06/30/2020	12/31/2019	06/30/2020	12/31/2019	06/30/2020	12/31/2019	06/30/2020	12/31/2019
Intangible assets	6,563	6,755	6,559	6,750	5	4
Property, plant, and equipment	6,622	6,789	6,610	6,778	24	25	-12	-13
Assets leased out	6,581	7,119	6,574	7,115	748	826	-742	-821
Equity-method investments	1,345	1,365	1,345	1,365
Other equity investments	ਤ ਦ	34	397	386	0	0	-362	-352
Income tax receivables	112	167	85	141	28	26	0
Deferred tax assets	1,040	970	1,001	ಕಿತ್ತವ	57	48	-18	-13
Financial services receivables	7,465	7,991	9	10	7,456	7,981	0	0
Inventories	4,790	4,943	4,790	4,943
Trade receivables	1,666	2,144	1,710	2,216	22	34	-66	-106
Other assets	2,002	1,816	1,831	1,727	1,235	1,320	-1,064	-1,231
Marketable securities and investment deposits	2,005	3,178	2,005	3,178
Cash and cash equivalents	2,572	1,913	2,488	1,853	84	60		0
Total assets	42,798	45,183	35,401	37,396	9,660	10,324	-2,263	-2,536
Equity	13,448	14,134	12,718	13,365	957	971	-227	-201
Financial liabilities	13,236	12,497	4,878	3,641	8,380	8,998	-22	-141
Provisions for pensions and other post-employment benefits	1,742	1,769	1,732	1,759	10	10
Income tax payables	86	278	76	265	11	13	0
Deferred tax liabilities	୧୫୮	787	630	733	70	63	-15	-9
Income tax provisions	୧୧	ടി	62	47	4	4
Other provisions	2,047	2,094	2,045	2,092	2	3
Other liabilities	9,270	11,101	11,057	13,042	146	138	-1,933	-2,079
Trade payables	2,219	2,472	2,205	2,453	80	125	-66	-106
Total equity and liabilities	42,798	45,183	35,401	37,396	9,660	10,324	-2,263	-2,536

GROUP – CONDENSED STATEMENT OF CASH FLOWS

	TRATON GROUP		Industrial Business		Financial Services		Others/reconciliation
€ million	H1 2020	H1 2019	H1 2020	H1 2019	H1 2020	H1 2019	H1 2020	H1 2019
Cash and cash equivalents as of January 1	1,913	2,997	1,853	2,945	60	53	O	O
Gross cash flow	620	1,825	560	1,780	219	248	-159	-203
Change in working capital	-155	-2,155	-307	-1,407	-28	-933	181	186
Net cash provided by/used in operating activities	465	-330	252	373	190	-685	22	-17
Net cash provided by/used in investing activities attributable to operating activities	-291	1,410	-299	1,412	-1	-2	9	0
Change in marketable securities, investment deposits, and loans	1,177	-1,313	1,285	-689	O	-31	-108	-593
Net cash provided by/used in investing activities	586	97	686	723	-	-33	-99	-593
Net cash provided by/used in financing activities	-319	-105	-234	-1,443	-161	728	76	610
Effect of exchange rate changes on cash and cash equivalents	-73	10	-70	8	-4	2		0
Change in cash and cash equivalents	659	-328	635	-339	24	12	O	0
Cash and cash equivalents as of June 30	2,572	2,670	2,488	2,605	84	64	O	0
Gross cash flow	620	1,825	560	1,780	219	248	-159	-203
Change in working capital	-155	-2,155	-307	-1,407	-28	-933	181	186
Net cash provided by/used in investing activities attributable to operating activities	-291	1,410	-200	1,412	-	-2	9	0
Net cash flow	-126	1,080	-347	1,784	189	-687	31	-17

GROUP – NET LIQUIDITY

		TRATON GROUP	Industrial Business
€ million	06/30/2020	12/31/2019	06/30/2020	12/31/2019
Cash and cash equivalents	2,572	1.913	2.488	1.853
Marketable securities, investment deposits, and loans to affiliated companies	2,014	3,195	2,014	3,288
Gross liquidity	4,586	5,108	4,502	5,141
Total third-party borrowings	-13,236	-12,497	-4,878	-3,641
Net liquidity/net financial debt	-8,650	-7.390	-376	1,500

GROUP – ADJUSTMENTS

Adjustments (€mn)	2016	2017	2018	2019	H1 2020
OPERATING PROFIT	727	1,512	1,513	1,884	-220
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
Recognition and release of restructuring provisions at VWCO	58			-13
OPERATING PROFIT (ADJUSTED)	1,188	1,462	1,650	1,871	-220