TRATON SE — Investor Presentation 2021

May 10, 2021

PRESS CONFERENCE CALL 3M 2021 INTERIM STATEMENT

MATTHIAS GRÜNDLER, CEO CHRISTIAN SCHULZ, CFO

MUNICH - MAY 10, 2021

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

It contains forward-looking statements and information on the business development of the TRATON GROUP. These statements and information are based on assumptions relating in particular to the TRATON GROUP's business and operations and the development of the economies in the countries in which the TRATON GROUP is active. As far as information or statements on Navistar are concerned, the same applies to Navistar. Please note that TRATON SE has signed definitive agreements on the acquisition of Navistar but the acquisition requires a number of approvals and is therefore not yet closed.

The 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 forward-looking 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. The TRATON GROUP will not update this 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 might be translated from different currencies, 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 affiliated company or any of its competitors are estimates based on data available to the TRATON GROUP. As far as information or statements on Navistar are concerned, the same applies to Navistar.

IHS Markit Data referenced herein are the copyrighted property of IHS Markit Ltd. and its subsidiaries ("IHS Markit"). The IHS Markit Data are from sources considered reliable; however, the accuracy and completeness thereof are not warranted, nor are the opinions and analyses published by IHS Markit representations of fact. The IHS Markit Data speak as of the original publication date thereof and are subject to change without notice. IHS Markit and other trademarks appearing in the IHS Markit Data are the property of IHS Markit or their respective owners.

The percentage figures shown may be subject to rounding differences. Due to different proportions and scaling graphs, data shown in different graphs is not comparable.

PRESS CONFERENCE CALL 3M 2021 INTERIM STATEMENT – YOUR PRESENTERS TODAY

Matthias Gründler

Chief Executive Officer

Christian Schulz

Chief Financial Officer

Julia Kroeber-Riel

Head of Group Communications, Governmental Relations & Sustainability

AGENDA

1. Environment

• 1. Core KPIs 3M 2021
• 1. Q&A Business Development
• 1. Deep Dive E-Mobility
• 1. Q&A E-Mobility

3M 2021 WAS A STRONG QUARTER FOR THE TRATON GROUP

3M 2021
Business recovery continued, despite a still challenging environment	Incoming Orders rise 51% to 81,742	Unit Sales up 31% to 60,315
Net Cash Flow Industrial Business at €397 mn	Adj. Operating Return on Sales up 5.0 pp to 7.9%	Adj. Operating Profit more than tripled to €516 mn

COVID-19 PANDEMIC STILL WITH RELEVANT IMPACT

GLOBAL ECONOMY IS RECOVERING FROM SETBACK FROM THE PANDEMIC

Growth expected for 2021, but environment still fragile

GDP forecasts for 2020/2021 as of Jan 2020 Jun 2020 March 2021

BUSINESS CLIMATE IS BRIGHTENING, MARKET VERY STRONG IN MARCH 2021

Truck registrations (> 16t) in Europe improving¹

1 ACEA new heavy commercial vehicles (HCV) registrations of 16t and over for EU + EFTA + UK

GLOBAL CV INDUSTRY IS TRANSFORMING

EUROPEAN GREEN DEAL Agreement on EU Climate Law of a net 55% CO² cut by 2030

MARKET RAMP-UP OF ALTERNATIVE DRIVES NECESSARY Purchase incentives for customers, investments in charging infrastructure and EU CO² -based road charges needed

CLEAR E-MOBILITY STRATEGY Our top priority is to invest in fully electrified commercial vehicles

THE POSITIVE TREND CONTINUED IN 2021

AGENDA

1. Environment

1. Core KPIs 3M 2021

2. 1. Q&A Business Development
3. 1. Deep Dive E-Mobility
4. 1. Q&A E-Mobility

SNAPSHOT TRATON GROUP CORE KPIS 3M 2021

Trucks and buses (units)

3M 2021	3M 2021
3M 2020	3M 2020
Change	Change
81,742	60,315
54,161	45,990
51%	31%
INCOMING ORDERS	UNIT SALES
3M 2021 3M 2020 Change 1.36 1.18 18 bp BOOK TO BILL1 (RATIO IN UNITS)	3M 2021 3M 2020 Change 3M 2021 3M 2020 Change 57,222 3,093 41,960 36% 4,030 -23% OF WHICH TRUCKS2 OF WHICH BUSES

Financial key performance indicators (€ million)

3M 2021	3M 2020	Change
6,544	5,679	15%
SALES REVENUE

3M 2021	3M 2020	Change
516	161	355
ADJ. OPERATING RESULT1

Industrial Business (€ million)

3M 2021	3M 2020	Change
6,438	5,564	16%
SALES REVENUE

3M 2021	3M 2020	Change
465	135	330
ADJ. OPERATING RESULT1

Industrial Business (€ million)

3M 2021	3M 2020	Change	3M 2021	3M 2020	Change
160	218	-27%	294	285	3%
	CAPEX1		PRIMARY R&D COSTS
3M 2021	3M 2020	Change	3M 2021	3M 2020	Change
397	-167	565	397	27	370
NET CASH FLOW			NET LIQUIDITY

Financial Services (€ million)

3M 2021	3M 2020	Change	3M 2021	3M 2020
205	216	-5%		51 26
	SALES REVENUE		OPERATING RESULT

SCANIA VEHICLES & SERVICES – CORE KPIS

Trucks and buses (units)

3M 2021 3M 2020	Change		3M 2021			3M 2020	Change
36,944 20,671	79%			23,033	18,184			27%
INCOMING ORDERS			UNIT SALES
			3M 2021	3M 2020	Change	3M 2021	3M 2020	Change
			22,023 16,605 33% OF WHICH TRUCKS			1,010	1,579 -36% OF WHICH BUSES

SCANIA VEHICLES & SERVICES – CORE KPIS

Financial key perfomance indicators (€ million)

3M 2021	3M 2020	Change
3,420	2,982	15%
SALES REVENUE

3M 2021	3M 2020	Change
409	256	154
OPERATING RESULT

MAN TRUCK & BUS – CORE KPIS

Trucks and buses (units)

3M 2021	3M 2020	Change	3M 2021			3M 2020		Change
32,070	24,098	33%		23,363	18,166			29%
INCOMING ORDERS					UNIT SALES
			3M 2021	3M 2020	Change	3M 2021	3M 2020	Change
			22,590	17,060	32%	773	1,106	-30%
			OF WHICH TRUCKS1		OF WHICH BUSES

MAN TRUCK & BUS – CORE KPIS

Financial key perfomance indicators (€ million)

3M 2021	3M 2020	Change
2,645	2,267	17%
SALES REVENUE

3M 2021	3M 2020	Change
71	-78	149
ADJ. OPERATING RESULT

VOLKSWAGEN CAMINHÕES E ÔNIBUS – CORE KPIS

Trucks and buses (units)

3M 2021	3M 2020	Change		3M 2021		3M 2020		Change
12,750	9,517	34%		13,989		9,860		42%
	INCOMING ORDERS					UNIT SALES
			3M 2021	3M 2020	Change	3M 2021	3M 2020	Change
			12,679	8,505	49%	1,310	1,355	-3%
				OF WHICH TRUCKS			OF WHICH BUSES

VOLKSWAGEN CAMINHÕES E ÔNIBUS – CORE KPIS

Financial key perfomance indicators (€ million)

3M 2021	3M 2020	Change
466	383	22%
SALES REVENUE

3M 2021	3M 2020	Change
33	12	21
OPERATING RESULT

POSITIVE TRUCK MARKET OUTLOOK, DEPENDING ON COVID-19 DEVELOPMENT

Truck market (˃ 6t, k units)

Source: Historical data based on own calculations and estimates. 1 EU27+3 region (EU27 countries without Malta, plus the United Kingdom, Norway, and Switzerland) 2 Includes estimates from different institutes, companies and data and information services.

OUTLOOK 2021: RECOVERY AFTER STRONG DECLINE

TRATON GROUP Core KPIs

1 Before expenses from the MAN Truck & Bus restructuring program and effects from the planned acquisition of Navistar International Corporation.

2 FY 2019: adjusted RoS 7.0%, adjusted Operating Result €1.9 bn; FY 2020: adjusted Operating RoS 0.6%, adjusted Operating Result €135 mn.

3 The cash conversion rate for the year 2021 is losing its significance due to the restructuring of MAN Truck & Bus. Instead, as a performance indicator, we report the net cash flow in the Industrial Business.

4 FY 2019: reported net cash flow of €2,711 mn; adjusted net cash flow €518 mn before the sale of Power Engineering (€1,978 mn), parts of the RMMV Joint Venture (€101 mn incl. dividend) and repayment for amounts and interest resulting from security deposits provided in Brazil (€114 mn).

AFTER STRONG HEADWINDS IN 2020 TRATON IS READY FOR A SUCCESSFUL 2021

Going forward
For 2021 Operating Return on Sales of between 5.0 and 7.0% expected	Net Cash Flow Industrial Business €500 – 700 mn	Closing on Navistar expected mid-2021
Squeeze-out of MAN SE shareholders	Start of introduction of the Common Base Engine (CBE) in H2 2021	Budget Shift to e-mobility, strong focus on BEV

AGENDA

• 1. Environment
• 1. Core KPIs 3M 2021
• 1. Q&A Business Development
• 1. Deep Dive E-Mobility
• 1. Q&A E-Mobility

AGENDA

• 1. Environment
• 1. Core KPIs 3M 2021
• 1. Q&A Business Development
• 1. Deep Dive E-Mobility
• 1. Q&A E-Mobility

DEEP DIVE BEV – YOUR PRESENTERS TODAY

Dr. Atif Askar

Head of Business Development, Strategy and M&A

Dr. Andreas Kammel

Strategy and Business Development, responsible for Alternative Drives

Julia Kroeber-Riel

Head of Group Communications, Governmental Relations & Sustainability

ADOPTION OF NEW DRIVETRAINS IS DRIVEN BY COST AND THE REGULATORY ENVIRONMENT

TRUCKS ARE CAPITAL GOODS – PURCHASE DECISION VIA TCO/TOE

Customer focus	Cost of ownership
Usage pattern	Homogeneous
Annual mileage	~130,000 km
Fuel consumption	~30-35 l/100km
Product lifecycle	>10 years
Vehicles sold	~3 mn p.a.

EXPECTED IMPACT OF ELECTRIFICATION ON TCO/TOE BREAKDOWN¹

"Total operating economy" (TOE) augments "total cost of operation" (TCO) by other cost-relevant factors like payload effects, stand times…

EXPECTED CUSTOMER VALUE²

Reduction of CO² footprint in line with future emission targets

Zero noise emission in sensitive areas

Gaining experience and capabilities in operating electrified vehicles

Crucially: lower fuel cost and meaningfully better TCO/TOE (mid-to-long-term)

ENERGY IS THE MOST IMPORTANT COST DRIVER – ENERGY COST ADVANTAGE KEY TO ADOPTION OF NEW TECHNOLOGIES

THE PROSPECTS OF COMMERCIAL BEV VEHICLES HAVE IMPROVED MARKEDLY

VIEW ON BEV IN LONG-HAULAGE, MID 2010s

"A truck capable of going 1000km hauling 27t […] would need a battery weighing 25t, and could only carry about 2t of cargo. And because a heavy-duty truck battery is so heavy and large, charging takes too long – typically 12 hours or more."

www.energyskeptic.com, 2016

BATTERY COST DEVELOPMENT OVER TIME

Battery pack cost, illustrative* [EUR/kWh]

5 years ago, few expected BEV conceptsto apply in long-haulage

BEV HAVE A MARKEDLY HIGHER SYSTEM EFFICIENCY THAN FCEV

BEV ARE EXPECTED TO BE MORE COST-EFFICIENT THAN EITHER DIESEL OR FCEV

DELTA TOE: LONG-HAUL HEAVY DUTY – EUROPEAN AVERAGE, MID CASE*, INCL. REGULATORY EFFECTS

R&M Vehicle Battery / FC Energy Charging Payload impact Tolls / CO2

*middle-ground scenario regarding build-up of a hydrogen economy and charging infrastructure

Key takeaways:

• Battery & fuel cell costs ultimately of lower importance energy cost delta decisive, with BEV profiting most from regularlong-distance applications
• Both BEV and FCEV are likely to ultimately beat Diesel on cost but FCEV are unlikely to reach parity with BEV
• Strong deviation from some recent long-haul TCO studies by inclusion of a) fast charging, b) commercial EU electricity rates and c) known & expected advances on battery specs, including life cycles

NORDICS & WESTERN EUROPE LIKELY TO SEE EARLIEST BEV TOE PARITY

DRIVEN BY FAVORABLE ENERGY COST & REGULATORY ENVIRONMENT | TOLL EFFECTS SIGNIFICANT

BEV HAS A STRONG COST ADVANTAGE OVER FCEV AT REGULAR HIGH RANGE

COST-WISE, LONG-RANGE DRIVING IS THE REALM OF BEV, IF USED REGULARLY OR WITH FULLY DEVELOPED INFRASTRUCTURE

LONG-HAUL ANNUAL TOE BEV VS. FCEV – AVERAGE DAILY RANGE VS. DAILY VARIABILITY OF RANGE

Key takeaways:

• High daily range increasesthe annual cost advantage of BEV over FCEV, if mostly used regularly
• It is not high range, but high variability of range that is less favorable towards BEV, by
  • a) reducing the share of energy cost
  • b) slowing amortization of a large battery
  • c) and, most importantly, severely increasing payload losses
• Still, the BEV cost advantage only breaks down when high daily range is combined with
  • a) very high variability in daily range
  • b) and (local) absence of fast-charging infrastructure
• Long-haulage favors FCEV over BEV only in case of highly variable long-distance requirements without full fast-charging infrastructure

THE BEV MARKET SHARE IS SENSITIVE TO CHEAP PRICES FOR GREEN H2

SYNERGY EFFECTS YIELD IMPROVING FCEV AND BEV CASES FOR ABUNDANT LOW-COST HYDROGEN

BEV/FCEV/OTHER MARKET SHARE – NAÏVE VERSION MARKET SHARE INCL. BEV-FCEV SYNERGIES

Synergies between abundant low-cost hydrogen and electricity yield challenging BEV-FCEV cost & market share parity

MOST LONG-TERM ADVANTAGES LIE ON THE BEV SIDE

FCEV WILL BECOME MORE COMPETITIVE WITH BEV IN THE 2020s …	… BUT MAJOR LONG-TERM TRENDS TEND TO FAVOR BEV STRONGLY
Cost degression on components	Lightweight, cheap batteries
Significant subsidies	Autonomous Driving
Emerging H2 economy	Increasing grid storage

APPLICATIONS WHERE FCEV CAN BE A COMPLIMENTARY SOLUTION (EUROPE)

Non-stop at high consumption	Inhomogeneous usage	Severe payload restrictions	Competitive running costs
 Time-critical two driver operations, with low price elasticity  Significant auxiliary requirements or remote operations, w/o local infrastructure	 Irregularlong-distance requirements, e.g. due to low predictability  High-flexibility vehicles, e.g. as augmentation in regularly operated fleet	 Applications beyond feasible battery impact, e.g. certain heavy transports & axle configurations  Use cases with severe payload impact, e.g. long-distance coaches with two drivers	 Local operation subsidies, e.g. with Swiss toll exemptions  Local cheap H2, e.g. around local cheap renewables, at steel plants or near import harbors

SYNTHESIS – KEY TAKEAWAYS

BEV will become competitive with Diesel

no matter the scenario

This will happen earlier and faster than previously expected

Just fulfilling current EU emission regulations is not sufficient

Infrastructure is by far the most critical enabler for a smooth transition

OEMs will require FCEV as a complementary solution for certain use cases & markets

BEV will be mainstream across all major applications including long-haul

AGENDA

• 1. Environment
• 1. Core KPIs 3M 2021
• 1. Q&A Business Development
• 1. Deep Dive E-Mobility
• 1. Q&A E-Mobility

matthias.karpstein@traton.com

CONTACTS GROUP COMMUNICATIONS

sacha.klingner@traton.com

TRATON SE Dachauer Str. 641, 80995 Munich

julia.kroeber-riel@traton.com

www.traton.com

PRESS CONFERENCE CALL 3M 2021 INTERIM STATEMENT

MATTHIAS GRÜNDLER, CEO CHRISTIAN SCHULZ, CFO

MUNICH - MAY 10, 2021