TRATON SE — Investor Presentation 2020

Jan 21, 2020

Frankfurt, 21-22 January 2020

Kepler Chevreux German Corporate Conference

TRATON GROUP – CREATING A GLOBAL CHAMPION

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.

THE GLOBAL CHAMPION STRATEGY IS BASED ON FOUR PILLARS

Creating a Global Champion

Leader in Profitability | Global Presence | Innovation

TRATON HAS CONTINUOUSLY DELIVERED ON ITS GLOBAL CHAMPION STRATEGY

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

1 As of June 30, 2019 2 Held by MAN SE as of June 2019

CLEAR POSITIONING OF BRANDS

Driving the shift towards a sustainable transport system

Premium customer-focused innovation leader for sustainable transport solutions

Simplifying business by being the most reliable business partner

Reliable business partner with value package and full-line offering

Less you don't want more you don't need

Best value for money and tailor-made products

SNAPSHOT TRATON GROUP 2018

Sales Revenue €1.7 bn⁴ 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 Including aligned PPA (VWCO PPA – MAN Origin; Scania PPA – VW Origin) 5 Including €137 mn adjustment for expense in relation to Indian market exit at MAN T&B

€25.9 bn³

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 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 >15t available

TRATON GROUP

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 • Procurement joint venture established 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

CHAMPION

GROWTH PROFITABILITY AND SYNERGIES EXECUTION GLOBAL

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

Heavy Duty Platform Reach of Top OEMs

Leveraging Technologies and Scale through Global Brands and Smart Partnerships

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

1 Including operations no longer held by TRATON GROUP as of January 2019 (VGSG), consolidation effects (MAN T&B – VWCO), other segments and reconciliation 2 As of Q4 2018 3 Based on a company comparison with other offerings in the market

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 381	Robust volumes; services with positive impact on profits	North 560 America4	Current strong macro-economic conditions with mixed outlook
South 126 America2	Strong recovery expected post Brazil market downturn	China	Premium and upper budget 1,325 segment expected to grow
Russia 80	Continued solid growth momentum accompanied by margin increase	S.E. Asia5 328 & Japan	Heterogenous markets with mixed growth outlook
Other3	Successful global (export) business of premium 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

Launch / ramp-up 2016 – 2019 (targeted)	2019 – 2021e	2017 – 2019
--------------------------------------------------	-----------------	----------------

Launch of preceding truck generation¹

New generation for all trucks (R, G and P trucks as well as newly introduced S and L trucks)

1995 (4-Series)

NTG NEW TRUCK GENERATION NEW DELIVERY TRUCK

New state of the art truck generation

2000 (TGA)

Modern truck for urban logistics tailored to emerging markets

2005 (Delivery)

1 Previous key launch of respective product range

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 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 Including €403 mn adjustment for provision in relation to Scania antitrust fine 3 Strategic target brands want to achieve over the cycle 4 Including €137 mn adjustment for expense in relation to Indian market exit at MAN T&B 5 Including €58 mn adjustment for restructuring expense at VWCO 6 Including adjustments of (€13 mn) from the reversal of a restructuring provision at VWCO 7 Including adjustments of (€13 mn) from the reversal of a restructuring provision at VWCO. Including €19 mn insurance claim 8 Strategic target TRATON GROUP wants to achieve over the cycle, including consolidation effects and others

OPERATIONAL PERFORMANCE IMPROVEMENTS IN PLACE ACROSS ALL THREE BRANDS

GROWTH PROFITABILITY AND SYNERGIES EXECUTION GLOBAL

CHAMPION

1 Including €403 mn adjustment for provision in relation to Scania antitrust fine 2 Including €137 mn adjustment for expense in relation to Indian market exit at MAN T&B 3 Including adjustments of (€13 mn) from the reversal of a restructuring provision at VWCO 4 Including €58 mn adjustment for restructuring expense at VWCO

Production footprint and logistics

GROWTH PROFITABILITY AND SYNERGIES EXECUTION GLOBAL

CHAMPION

TRATON GROUP SYNERGIES RAMPING UP ON THE BACK OF FIVE INDIVIDUAL CATEGORIES

Introduced into brand Leverage CBE engine across brands (illustrative CBE volumes) CBE engine aiming at Enhanced fuel efficiency Long durability Reduced weight 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

1 Per year from 2025e onwards; roll-out across TRATON GROUP brands

Latin America

Europe

2020e 21e 22e 23e 24e 25e 2026e

19

CBE engine installed in HD trucks¹in 2025e

Low maintenance

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

GROWTH EXECUTION GLOBAL

PROFITABILITY AND SYNERGIES

CHAMPION

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

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

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

1 FY 2018: Adjusted RoS 6.4%, adjusted operating profit €1.7 bn, 9M 2019: Adjusted RoS 7.4%, adjusted operating profit €1.5 bn; 9M 2019 including €19 mn insurance claim proceeds 2 No adjustments applied to estimated return on sales 2019

POSSIBLE MEASURES IN CASE OF RAPID MARKET DOWNTURN

	Scenarios 2020: Truck Market EU28+21 Market
	-10%	-20%
Measures possibly to be evaluated
Reduction of time accounts
Reduction of temporary workers
Reduction of non - personnel overhead costs
Reduction of direct personnel costs (e.g. short-time work)
Reduction of indirect personnel costs (e.g. reduction working hours)
Reduction of non-product investments
Reduction of external R&D costs

1 EU28+2 region consisting of EU member states excluding Malta plus Norway and Switzerland, (˃ 6t)

January 2020 / Investor Relations

TRATON GROUP – UNIQUE PROFITABLE GROWTH PROFILE

Three strong brands…

…creating a Global Champion…

…with highly experienced team

• 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
• 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	Customer focus	Total cost of ownership	Costs Emotion Prestige
expectations	Annual mileage (km)	~130,000	~14,0001 ~10x
	Fuel consumption (l/100 km)	~30-352	3 ~4-7 ~5x
Product	Product lifecycle (years)	>10	~4-5 ~2x
	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

1 Chart representative for German HDT market; indicative - depending on usage pattern 2 Selected drivers (non exhaustive)

OUTLOOK FOR TRATON'S CORE MARKETS POSITIVE WITH UNIT SALES STILL BELOW PEAK

Truck Unit Sales

Secular Growth Drivers

• Global GDP is expected to continue to grow
• Continuous rise of online business
• Improving road infrastructure in emerging markets
• Urbanization driving increased demand for flexible transportation

Source: Verband der deutschen Automobilindustrie (VDA data); IHS Markit.

1 Western Europe and US data based on VDA, South America data based on IHS Markit. 2 EU15 + EFTA: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, United Kingdom + Iceland, Liechtenstein, Norway and Switzerland. 3 Incl. Argentina, Brazil, Bolivia, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Nicaragua, Panama, Peru, Uruguay, Venezuela; excl. Mexico (part of N. America); excl. Paraguay, as no IHS Markit data for trucks >6t available.

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 Demand	•	Higher work shop utilization
	driven workshop visits	•	Optimized NWC
•	Higher predictability	•	Feedback loops to R&D

CONTACTS INVESTOR RELATIONS

Rolf Woller

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

Helga Würtele

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

Thomas Paschen

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

Philipp Lotz

• 49 89 36098-283 philipp.lotz@traton.com

TRATON SE Dachauer Str. 641 80995 Munich www.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
March 27, 2020	Annual Press Conference & Annual Report 2019
May 4, 2020	Q1 2020
May 28, 2020	Annual General Meeting 2020
July 28, 2020	Half-year 2020
November 3, 2020	9-month 2020

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

9M 2019 RESULTS

TRATON GROUP HIGHLIGHTS

2019

9M

• Unit sales up by +7.7% to a nine month record of 179,091 units
• Sales revenue increased by +9.3%¹ to €19,827 mn; all brands contributed
• Operating profit improved by +33.8% to €1,482 mn² 2019
  • RoS 7.5% (+153bpt)²
  • Profit after tax rose by +18.5% to €1,235 mn³
  • Net cash flow Industrial Business at €2,323 mn (before the sale of Power Engineering €345 mn); Net liquidity Industrial Business at €1,207 mn (incl. recognition of IFRS 16)
  • TRATON SE celebrated its successful stock market debut in Frankfurt and Stockholm on June 28, 2019
  • TRATON SE listed on the SDAX
  • TRATON hosts Innovation Day on October 2, 2019
  • Global procurement joint venture with Hino established

1 Prior year excluding €487 mn VGSG sales revenue, which was sold as at January 01, 2019 2 Adjusted operating profit +20.2% to €1,470 mn, adjusted RoS 7.4% (+85bpt); Q1 2019 including €19 mn insurance claim 3 +29.4% before discontinued operations (€111 mn in 9M 2018) Note: Delta 9M 2019 vs. 9M 2018

APPENDIX

GROUP – SEGMENT HIGHLIGHTS Q3 / 9M 2019

Industrial Business (IB)
	Q3 19	Y-o-Y	9M 19	Y-o-Y
Order intake (units)	49,217	-7.0%	169,708	-6.0%
Unit sales (units)	55,755	+2.9%	179,091	+7.7%
Book-to-bill (units)	0.88	-9bpt	0.95	-14bpt
Sales revenue (€mn)	6,171	+7.0%	19,491	+9.3%
Operating profit (€mn)1	369	+90.9%	1,377	+40.5%
Return on sales (%)1	6.0	+263bpt	7.1	+157bpt
Profit after tax (€mn)	451	-11.5%	1,142	+22.8%
Net cash flow (€mn)3	539	+€687mn	2,323	+€2,722mn

Financial Services (FS)
	Q3 19	Y-o-Y	9M 19	Y-o-Y
Net portfolio2 (€bn)			9.7	+11.0%
Penetration rate (%)	42.9	-77bpt	41.9	-33bpt
Sales revenue (€mn)	215	+11.4%	635	+10.7%
Operating profit (€mn)	35	-5.6%	105	+3.1%
Profit after tax (€mn)	23	-1.4%	75	+4.3%

• Strong unit sales, book-to-bill mainly lower in Q3 2019 due to a noticeable decrease in truck order intake in the EU28+2 region
• Operating profit of Industrial Business up due to the positive volume effect and the elimination of parallel production at Scania, partially offset by inflationary cost increases and higher depreciation. 2018 impacted by restructuring of Indian activities (€115 mn)
• Net cash flow in the Industrial Business in Q3 2019 improved considerably as a result of increased operating profit and improved working capital

1 Adjusted operating profit Q3 2019: +19.7% to €369 mn, adjusted RoS 6.0% (+64bpt); Adjusted operating profit 9M 2019: +24.6% to €1,365 mn, adjusted RoS 7.0% (+86bpt); Q1 2019 including €19 mn insurance claim 2 Reflecting closing balances, as of September 30, 2019 vs. December 31, 2018; 3 Adjusted net cash flow €314 mn in Q3 2019 / €120 mn in 9M 2019; before the sale of Power Engineering (€1,978 mn), parts of the RMMV Joint Venture (€111 mn incl. dividend) and repayment for amounts and interest resulting from security deposits provided in Brazil (€114 mn) Note: Delta Q3 2019 vs. Q3 2018 / 9M 2019 vs. 9M 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) / €151 mn (Q2 2018) / €140 mn (Q3 2018) VGSG sales revenue, which was sold as at January 01, 2019; adjusted growth rates: Q1 2019 9.5% / Q2 2019: 11.2% / Q3 2019: 7.0% 3 Q3 2018 impacted by the restructuring of the activities in India (€115 mn), adjusted RoS 6.0%

GROUP – UNIT SALES DEVELOPMENT

Unit sales (units)

• TRATON benefits from its strong core markets and sustains a leading position in the truck segment in the EU28+2 region²
• Noticeable growth in the European commercial vehicle market in the first nine months of 2019; first half positively influenced by the mandatory introduction of the digital tachograph. Continued substantial increase in truck registrations in Brazil
  • Trucks unit sales up by +2% in Q3 2019; trucks unit sales ex MAN TGE stable in Q3 2019

1 Including MAN TGE vans (units in 2018: Q1 1,335 / Q2 1,843 / Q3 1,689; units in 2019: Q1 3,122 / Q2 4,144 / Q3 2,845) 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 EU28+2 and Germany data collected from ACEA provisional new registrations figures as at October 24 2019, trucks ˃ 16t; for Brazil data collected from ANFAVEA trucks ˃ 6t as at October 07, 2019; South America own estimates

INDUSTRIAL BUSINESS – ORDER INTAKE

• Order intake trend in 2019 continued downwards quarter on quarter. Noticeable decrease mainly due to lower orders in the EU28+2 region, driven in particular by Germany and UK. However, book-to-bill still at 0.95
• 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 buses units ordered to trucks and buses units delivered

INDUSTRIAL BUSINESS – UNIT SALES

Unit sales (units)

• Solid development in core truck markets, first half influenced by the pre-buy effect ahead of the introduction of the digital tachograph. Strong growth of MAN TGE

• Bus sales increased in Q3 2019 by +8%, but down slightly on the previous quarter due to seasonal effects

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

• All brands with increased sales revenue, Q3 2019 driven by all product groups, 9M 2019 after-sales grew by +5% (share at 19%)

• Return on sales benefited from increased volume and the end of parallel production at Scania, higher costs ahead of rollout of new truck and bus generations weighed on MAN Truck & Bus; 2018 impacted by restructuring of Indian activities

INDUSTRIAL BUSINESS – SALES REVENUE BY BRAND AND RETURN ON SALES

Note: Figures shown as at Q3 2019 / 9M 2019; percentage change calculated YoY, Q3 2019 vs. Q3 2018 / 9M 2019 vs. 9M 2018 1 Calculated as the ratio of operating profit to sales revenue

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, €-3,250 mn contribution of capital reserves and €4,161 mn DPLTA with VW AG 4 €-376 mn before the sale of Power Engineering (€1,978 mn) 5 €314 mn before the sale of parts of the RMMV Joint Venture (€111 mn incl. dividends) and repayment for amounts and interest resulting from security deposits provided in Brazil (€114 mn) 6 €120 mn before the sale of Power Engineering (€1,978 mn), the sale of parts of the RMMV Joint Venture (€111 mn incl. dividends) and repayment for amounts and interest resulting from security deposits provided in Brazil (€114 mn)

MAN TRUCK & BUS – SUMMARY 9M 2019

• Vehicle sales up by +6% primarily driven by MAN TGE (Germany, UK, France)
• Order intake down by -10% mainly due to Germany, Poland, Russia, India und Turkey
• Operating profit increased by +6% (adjusted down by -26%)
  • positive effects from higher sales revenues were offset by a less favorable product mix and a difficult market environment for used vehicles, fixed cost increases as well as increased costs ahead of the rollout of the new truck and bus generations
  • prior-year period contained an earnings effect resulting from the transfer of the RIO brand to a TRATON GROUP company (€19 mn). Prior-year period included expenses for the market exit India (€115 mn)
• MAN presented the electric bus Lion's City E at the BUS2BUS fair in Berlin

APPENDIX

MAN TRUCK & BUS – KEY FIGURES PER QUARTER

Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19

Q3 18 Q2 19 Q3 19 Q1 18 Q2 18 Q4 18 Q1 19 Q4 19

Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19

(€mn)

1 Book-to-bill is defined as the ratio of trucks and bus units ordered to trucks and bus units delivered 2 Q2 2018 contained an earnings effect of €19 mn resulting from the transfer of the RIO brand to a TRATON GROUP company; Q3 2018 impacted by the restructuring of the activities in India (€115 mn), adjusted RoS 4.0% 3 Calculated as the ratio of operating profit to sales revenue

SCANIA VEHICLES & SERVICES – SUMMARY 9M 2019

• Unit sales of trucks up by +11%, primarily driven by strong growth in EU28+2 and Brazil; truck sales declined substantially in Russia, Asia/Pacific and in the Middle East
• Order intake declined by -8%; order intake for trucks was also down by -8% mainly because of negative trends in the UK, Russia, and Iran
• Operating profit increased by +36% benefiting from higher volumes, positive foreign exchange effects, end of the previous parallel production of old and new truck series and a more favorable market mix
• The successful rollout of the new Scania truck generation in Latin America and Asia marked the end of the previous parallel production of old and new series
• Revealing of Scania AXL, a fully autonomous concept truck, without a cab

APPENDIX

SCANIA VEHICLES & SERVICES – KEY FIGURES PER QUARTER

Q3 18 Q1 18 Q2 18 Q3 19 Q4 18 Q1 19 Q2 19 Q4 19

Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19

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

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 – SUMMARY 9M 2019

• Brazilian truck market continued to recover in tandem with economic upturn; truck unit sales increased by +20%
• Export sales declined on sluggish demand in other relevant markets in South America
• Operating profit benefited from the increase in sales revenue. This was offset by foreign exchange effects and inflation-related cost increases, e.g., for materials, and higher depreciation charges. Figure includes a gain of €13 mn from reversal of a restructuring provision
• More than 3,400 Volksbus units are being delivered as part of the Caminho da Escola "Way to School" program, and a further 430 buses will be on the road to support social projects

APPENDIX

VOLKSWAGEN CAMINHÕES E ÔNIBUS – KEY FIGURES PER QUARTER

Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19

+26.4%

Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q4 19 Q3 19

Sales revenue (€mn) Return on sales2,3 Operating profit (%) ² (€mn)

Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19

Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19

Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19

^{416 444 468}

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 a gain of €13 mn from the reversal of a restructuring provision 3 Calculated as the ratio of operating profit to sales revenue

January 2020 / Investor Relations

^{343 331 370}

FINANCIAL SERVICES OUTLOOK

APPENDIX

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

• Operating profit in Q3 2019 decreased by -6% to €35 mn
• Portfolio growth and currency effects positive, while lower margins and higher operating cost had negative effects

1 Calculated as the ratio of operating profit to sales revenue

APPENDIX

FINANCIAL SERVICES – NET PORTFOLIO AND PENETRATION RATE

• By the end of 9M 2019 the customer finance portfolio amounted to €9.7 bn; this represents an increase of +11% compared to YE 2018
• The penetration rate on new trucks was 41.9% in 9M 2019 (9M 2018: 42.2%) in those markets where Financial Services operates

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

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

	FY 2018	9M 2019	2019 Outlook	Over-the-cycle RoS target
Unit sales (Units; Growth in %)	233.0k 13.7%	179.1 7.7%	Slight increase compared with previous year
Group sales revenue (in €bn; Growth in %)	€25.9bn 6.4%	€19.8bn 6.5%	Slightly above previous year
Group return onsales €bn1 (in %; operating profit in )	5.8% €1.5bn	7.5% €1.5bn	7.5%2 6.5% –	9% Over-the-cycleRoS

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

1 FY 2018: Adjusted RoS 6.4%, adjusted operating profit €1.7 bn, 9M 2019: Adjusted RoS 7.4%, adjusted operating profit €1.5 bn; 9M 2019 including €19 mn insurance claim proceeds 2 No adjustments applied to estimated return on sales 2019

INNOVATION DAY 2019 – TRATON'S FOCUS ON E- MOBILITY LEADERSHIP

Within 10-15 years, one of three of our vehicles will have an alternative powertrain. In most cases it is electric

By 2020

Common modular electric powertrain toolkit, used in 2020 in the first serial produced all-electric city buses made by Scania and MAN

By 2025

• €1 bn in R&D expenditures on e-mobility (in total 2019-2024)
• €1 bn in R&D expenditures on digitization (in total 2019-2024)
• Aim: more than a million connected vehicles on the road

Autonomous Driving Connectivity Electrification / Alternative Fuels

GROUP – REGIONAL TRUCK UNIT SALES DEVELOPMENT¹

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

GROUP – OPERATING PROFIT AND RETURN ON SALES OPERATING PROFIT (€mn)

Return on sales¹

1 Calculated as the ratio of operating profit to sales revenue 2 Q3 2018 impacted by the restructuring of the activities in India (€115 mn), adjusted RoS 6.0%

MAN TRUCK & BUS – KEY FIGURES CUMULATIVE

1 Book-to-bill is defined as the ratio of trucks and bus units ordered to trucks and bus units delivered 2 H1 2018 contained an earnings effect of €19 mn resulting from the transfer of the RIO brand to a TRATON GROUP company; 9M 2018 impacted by the restructuring of the activities in India (€115 mn) 2 Calculated as the ratio of operating profit to sales revenue

SCANIA VEHICLES & SERVICES – KEY FIGURES CUMULATIVE

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 – KEY FIGURES CUMULATIVE

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 a gain of €13 mn from the reversal of a restructuring provision 3 Calculated as the ratio of operating profit to sales revenue

GROUP – CONSOLIDATED INCOME STATEMENT (IFRS)

in € million	9M 2019	9M 2018
Sales revenue	19,827	18,623
Cost of sales	-15,825	-14,965
Gross profit	4,001	3,658
Distribution expenses	-1,811	-1,741
Administrative expenses	-734	-736
Net impairment losses on financial assets	-35	-35
Other operating income	432	520
Other operating expenses	-371	-558
Operating profit	1,482	1,108
Share of profits and losses of equity-method investments	262	184
Interest income	59	61
Interest expenses	-191	-186
Other financial result	-28	100
Financial result	103	159
Profit before tax	1,586	1,267
Income taxes	-349	-335
Current	-319	-266
Deferred	-30	-69
Profit from continuing operations, net of tax	1,237	931
Profit/loss from discontinued operations, net of tax	-2	111
Profit after tax	1,235	1,042
of which attributable to shareholders of TRATON SE	1,202	1,036
of which attributable to noncontrolling interests	33	6

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

in € million	09/30/2019	12/31/2018
Assets
Noncurrent assets
Intangible assets	6,548	6,597
Property, plant and equipment	6,456	5,469
Assets leased out	6,985	6,599
Equity-method investments	1,384	1,223
Other equity investments	49	37
Noncurrent income tax receivables	41	50
Deferred tax assets	953	939
Noncurrent financial services receivables	4,746	4,212
Other noncurrent financial assets	107	63
Other noncurrent receivables	305	663
	27,574	25,851
Current assets
Inventories	5,562	4,822
Trade receivables	2,153	2,319
Current income tax receivables	149	140
Current financial services receivables	2,973	2,688
Other current financial assets	321	6,371
Other current receivables	1,043	939
Marketable securities and investment deposits	2,907	98
Cash and cash equivalents	2,116	2,997
Assets held for sale	-	157
	17,225	20,533
Total assets	44,799	46,384

in € million	09/30/2019	12/31/2018
Equity and Liabilities
Equity
Subscribed capital	500	10
Capital reserves	20,841	21,331
Retained earnings	-5,104	-2,064
Accumulated other comprehensive income	-2,892	-2,478
Equity attributable to shareholders of TRATON SE	13,345	16,799
Noncontrolling interests	257	2
	13,602	16,801
Noncurrent liabilities
Noncurrent financial liabilities	6,010	5,449
Provisions for pensions and other post-employment benefits	1,832	1,506
Noncurrent income tax payables	123	122
Deferred tax liabilities	755	824
Noncurrent income tax provisions	18	16
Other noncurrent provisions	1,190	1,184
Other noncurrent financial liabilities	2,580	2,333
Other noncurrent liabilities	1,939	1,780
	14,446	13,217
Current liabilities
Put options/compensation rights granted to noncontrolling interest shareholders	-	1,827
Current financial liabilities	6,509	5,366
Trade payables	2,682	2,969
Current income tax payables	142	125
Current income tax provisions	32	137
Other current provisions	902	938
Other current financial liabilities	2,881	1,620
Other current liabilities	3,601	3,263
Liabilities directly associated with assets held for sale	-	123
	16,750	16,366
Total equity and liabilities	44,799	46,384

GROUP – CONSOLIDATED STATEMENT OF CASH-FLOWS (IFRS)

in € million	9M 2019	9M 2018
Cash and cash equivalents as of January 1	2,997	4,593
Profit before tax	1,586	1,267
Income taxes paid	-398	-392
Depreciation and amortization of, and impairment losses on, intangible assets,	626	479
property, plant, and equipment, and investment property*
Amortization of and impairment losses on capitalized development costs*	144	125
Impairment losses on equity investments*	0	6
Depreciation of products leased out*	838	799
Change in pension obligations	-4	36
Loss on disposal of noncurrent assets and equity investments	-95	-13
Share of losses of equity-method investments	-112	-320
Other noncash expense/income	79	-3
Change in inventories	-769	-931
Change in receivables (excluding financial services)	143	-233
Change in liabilities (excluding financial liabilities)	241	514
Change in provisions	-5	48
Change in products leased out	-1,193	-1,061
Change in financial services receivables	-784	-532
Net cash used in operating activities - discontinued operations	-	-68
Net cash used in operating activities	297	-280
Payments to acquire property, plant, and equipment and intangible assets
(excluding capitalized development costs)	-572	-535
Additions to capitalized development costs	-327	-269
Payments to acquire other investees	-6	-21
Proceeds from the disposal of subsidiaries	1,978	0
Disposal of other equity investments	101	0
Proceeds from the disposal of intangible assets, property, plant, and equipment, and
investment property	22	58
Investing activities attributable to operating acitivities	1,196	-766
Net cash flow - continuous operations	1,494	-978

*Net of		impairment	reversals
---------	--	------------	-----------	--

in EUR million	9M 2019	9M 2018
Change in marketable securities and investment deposits	-2,813	-30
Changes in loans	82	4
Net cash used in investing activities – discontinued operations	-	-99
Net cash provided by/used in investing activities	-1,536	-891
Loss absorption by Volkswagen AG	4,161	28
Distribution of retained earnings	-3,250	-
Noncontrolling interest shareholders of MAN SE: acquisition of shares tendered and compensation payments	-1,109	-455
Proceeds from issuance of bonds	2,469	2,147
Repayments of bonds	-1,144	-
Change in miscellaneous financial liabilities	-639	-506
Repayment of lease liabilities	-125	0
Net cash provided by/used in financing activities – discontinued operations	-	-2
Net cash provided by/used in financing activities	364	1,211
Effect of exchange rate changes on cash and cash equivalents	-7	-57
Change in cash and cash equivalents	-881	-17
Cash and cash equivalents as of September 30	2,116	4,577

GROUP – ADJUSTMENTS

Adjustments (€ million)	2016	2017	2018	9M 2019
OPERATING PROFIT	727	1,512	1,513	1,482
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
Restructuring expenses at VWCO	58			-13
OPERATING PROFIT (ADJUSTED)	1,188	1,462	1,650	1,470