TRATON SE — Investor Presentation 2022

May 18, 2022

TRATION

Capital Markets Day 2022

Presentations Teach-ins (selection)

Södertälje, 5-18-2022

SCANIA

MAN!

NAVISTAR

1

---

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.

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.

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 in graphs, data shown in different graphs are not comparable.

TRATON

---

Agenda

1. Modular System
2. Electrification View
3. Decarbonization

---

TRATON

1. MODULAR SYSTEM

Claes Erixon
CTO, Scania

---

It starts and ends with the customer

TRATON

---

TAILORED SOLUTIONS

TRATON

---

TRUCKS

BUSES

POWER SOLUTIONS

Electric machines

TR/TON

---

Tailor-made transport solutions for each customer

Lower cost for Scania

Reduced time to market

TR/TON

---

Modularisation Principles

Well-balanced performance steps

Standardized interfaces over time

Same need – identical solution

TR/TON

---

TRATON

Engines
Cabs
Gearboxes
Frame
Propeller shafts
Axle gears

Steered axles
Driven axles

---

LEVERAGE BYGGLÅDAN

TRATON

---

TR/TON

---

Long tail business model

TR/TON

Note: Illustrative presentation

---

One TRATON GROUP Modular System

Modular System consists of components/platforms shared by:

• A All brands globally
• Common capabilities
• B Selected brands or regions
• C Single brands
• C

TRATON

---

Scania SUPER powertrain

TRATON

---

New modular AMT gearbox range

• Improved fuel consumption
• Reduced weight
• Reduced cost
• A modular platform

TRATON

---

Modularization in transmissions

Strategies to increase torque capacity

Base line

Wider gears

Increased axle distance

Better material

TR/TON

---

TRATON

2. ELECTRIFICATION VIEW

Dr. Atif Askar
Head of Business Development Strategy & M&A

Malte Schmitz
Head of Strategy & Business Opportunities

---

Today trucks are intensively used capital goods with high running costs

Trucks are Capital Goods – TCO is essential

• Customer focus Total cost
• Usage pattern Regular, intensive
• Annual mileage ~130,000 km
• Fuel consumption ~30-35 l/100 km
• Product lifecycle >10 years
• Typical margins 3 %

TRATON
19

---

Today's truck running costs with high share of energy and driver

Cost distribution of a typical long-haul heavy-duty truck

Running costs dominate Total Cost of Ownership (TCO)

TR/TON

---

The cost distribution will change significantly with fully electric trucks

Energy is the most crucial cost driver – energy cost advantage is the key to quick market ramp-up of electric trucks

TR/TON

---

A comparison of system efficiency between BEV and FEV underlines the focus on BEVs

TRATON

---

The prospects of commercial BEV vehicles have improved markedly, specifically on the battery side

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

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

*best-in-class, CV equivalent, simplified representation

Battery cost development over time

Plus improvements in
- Battery capacity per weight
- Battery cycle life
- General energy consumption
→ Cost is only one factor

Historically, battery cost has fallen ~2.5x faster than predicted

TRATON

---

How would a long-haul operation with a BEV look like?

Public Charging

Charging stations with more than 750 kW capacity

Recharging of battery possible in 45 minutes

Recharging during mandatory break and/or overnight stay

Up to 4.5 hours max. 350 km

Arrival

Depot or public destination

Very predictable and high energy throughput driving charging costs per km

TRATON

---

TRATON

3. DECARBONIZATION

| Andreas Follér
Head of Sustainability, Scania | Erik Nellström
Technical Manager, Product Sustainability Scania | Nina Vikkula
Senior Business Developer, Supply Chain Decarbonisation & Circularity Scania |
| --- | --- | --- |
| Fabian Heidinger
MAN Sustainability Lead | Christopher P. Perzan
Vice President, Environment and Sustainability Navistar | |

---

Responsible Company

Make responsible behavior a top priority in everything we do

• Decarbonization & Circularity
• People & Diversity
• Governance & Ethics

TR/TON

---

Science-based targets (SBT)

Paris agreement 2015

Aligning corporate carbon reduction targets with climate science

Targets approved as "science-based" – in line with what is necessary to meet the goals of the Paris Agreement

No. 1
Scania
In 2020, Scania became the first heavy goods vehicle manufacturer to set SBT

CDP
DISCLOSURE INSIGHT ACTION
THE GLOBAL CONSULT
WORLD RESOURCES INSTITUTE
WWF
TRATON

---

TRATON

---

SCOPE 1&2

OWN OPERATIONS

Energy waste

absolute CO₂ reduction from Scania operations

Energy efficiency

Energy efficiency

Renewables

Scania SBT

2025

TR/TON

---

2025

TR/TON

---

USE PHASE

> 90%

of all Scania emissions come from when our customer use Scania trucks and buses.

TRATON

---

TR/TON

2025

---

Our CO₂ impact stems almost exclusively from our products' use phase – but will change in the future

1 Based on EU 2016 electricity mix

2 Based on prognosed EU 2030 electricity mix

Source: Scania estimates

TRATON

---

SUPPLY CHAIN

TR/TON

---

2030

TR/TON

---

TRATON – Exciting pathway ahead

TRATON