3M 2021

23 Statement of Comprehensive

Selected Financial Information

31 Contingent Liabilities and Commitments
31 Segment Reporting

1 2 3 4 Further Information

33 Key Performance Indicators
35 Overview by Quarter
40 Financial Calendar
41 Publication Details

This Interim Statement was prepared in accordance with section 53 of the Exchange Rules for the Frankfurter Wertpapierbörse (FWB) and does not constitute an interim financial report as defined in International Accounting Standard (IAS) 34 Interim Financial Reporting. It does not contain any related party disclosures and hence departs from the guidance for preparing interim management statements in Sweden proposed by Nasdaq Stockholm. This Interim Statement has not been reviewed by an auditor.

This Interim Statement contains certain forward-looking statements for the remaining months of fiscal year 2021. A range of known and unknown risks, uncertainties, and other factors may result in the actual results, financial position, development, or performance of the TRATON GROUP differing materially from the estimates given here. Such factors include those that TRATON has described in published reports. These reports are available on our website at www.traton.com. The Company does not assume any obligation to update such forward-looking statements or to adapt them to future events or developments.

The figures relating to net assets, financial position, and results of operations were prepared in accordance with International Financial Reporting Standards (IFRSs), as adopted by the European Union. All figures shown are rounded, so minor discrepancies may arise from addition of these amounts.

C O U R S E O F B U S I N E S S 3M 2021

COURSE OF BUSINESS

TRATON GROUP 8 3M 2021 INTERIM STATEMENT COURSE OF BUSINESS

7 Course of Business

8 Market Environment
8 Incoming Orders
9 Unit Sales by Country
9 Sales Revenue by Product Group
10 Condensed Income Statement
11 Business Performance, Industrial Business
13 Business Performance, Financial Services
13 Net Cash Flow
14 Net Liquidity/Net Financial Debt
14 Navistar Acquisition Project
15 Report on Expected Developments

17 Operating Units

Market Environment

The available registration data for the TRATON GROUP's core regions reflects the situation from January through March 2021, and January through February 2021 for South Africa and Mexico.

The truck markets recorded a significant recovery, despite the continuing COVID-19 pandemic, whereas the bus markets were down significantly yearon-year. In the previous year, uncertainties resulting from the COVID-19 pandemic were reflected in registrations, mainly starting in the second quarter of 2020.

The most important truck markets (> 6t) for the TRATON GROUP are the EU27+3 region (defined as the EU27 countries excluding Malta, plus the United Kingdom, Norway, and Switzerland) as well as Brazil, South Africa, Russia, and Turkey. Registrations in the EU27+3 region were up substantially on the previous year's level in the first quarter of 2021. Virtually all truck markets in the region recorded growth. Poland and Italy, in particular, posted very strong growth, with France growing noticeably and Germany distinctly.

In Brazil, truck registrations in the first three months of 2021 were up sharply year-on-year. The number of registered vehicles in Turkey grew by a factor of 1.4, although this was based on a low prior-year comparative period. The Russian truck market recorded slight growth. The South African market declined moderately.

The most important bus markets for the TRATON GROUP are the EU27+3 region, Brazil, and Mexico. Bus registrations in the first quarter of 2021 were down significantly year-on-year in the EU27+3 region, in particular in Germany, Italy, and Spain. The Brazilian and Mexican markets recorded a noticeable and very sharp decline, respectively. Demand for coaches, in particular, came to a virtual standstill in all relevant markets as a result of the COVID-19 pandemic.

Incoming Orders

Units	3M 2021	3M 2020	Change
Incoming orders, Industrial Business	81,742	54,161	51%
of which trucks 1	78,749	48,603	62%
of which buses	2,993	5,558	–46%

1 Including MAN TGE vans (3M 2021: 8,487 units; 3M 2020: 4,549 units)

Incoming orders in the Industrial Business segment stood at 81,742 (3M 2020: 54,161) units in the first quarter, up 51% on the previous year's level. This saw the TRATON GROUP record the highest level of incoming orders in one quarter. This increase was attributable to the truck business and was evident in all regions.

Incoming orders for trucks (> 6t) were up substantially to very sharply year-on-year in all regions. Growth of more than 50% was recorded in the EU27+3 region, TRATON's most important market. The United Kingdom and Poland posted the strongest growth rates. In South America, Brazil recorded the largest increase in an expanding overall market.

Incoming orders in the bus business amounted to 2,993 (3M 2020: 5,558) units in the first quarter of 2021, a very strong decline compared with the prior-year period that was attributable to all regions to a varying extent. Demand for coaches, in particular, came to a virtual standstill in all relevant markets as a result of the COVID-19 pandemic.

Starting in March of the prior-year quarter, the spread of the COVID-19 pandemic led to substantial uncertainty, which was reflected in the TRATON GROUP's incoming orders.

8	Market Environment
8	Incoming Orders

- 9 Unit Sales by Country

9 Sales Revenue by Product Group 10 Condensed Income Statement

11 Business Performance, Industrial Business

13 Business Performance, Financial Services
13 Net Cash Flow
14 Net Liquidity/Net Financial Debt
14 Navistar Acquisition Project
15 Report on Expected Developments

17 Operating Units

Unit Sales by Country

Units	3M 2021	3M 2020	Change
Unit sales, Industrial Business	60,315	45,990	31%
Unit sales, trucks 1	57,222	41,960	36%
EU27+3	29,975	24,093	24%
of which in Germany	8,128	7,020	16%
South America	16,956	10,865	56%
of which in Brazil	14,489	9,649	50%
Other regions	10,291	7,002	47%
Unit sales, buses	3,093	4,030	–23%
EU27+3	757	1,304	–42%
of which in Germany	337	378	–11%
South America	1,461	1,829	–20%
of which in Brazil	1,057	1,348	–22%
Other regions	875	897	–2%

1 Including MAN TGE vans (3M 2021: 5,904 units; 3M 2020: 3,428 units)

Unit sales in the Industrial Business segment amounted to 60,315 (3M 2020: 45,990) units in the first quarter of 2021, and hence were up 31% on the previous year's level. The increase was attributable to the truck business in all regions.

Unit sales of trucks (> 6t) in the EU27+3 region were up substantially compared with the prior-year quarter. Poland and Germany recorded the highest growth rates. Brazil was the main contributor to the very strong growth in South America. Very strong increases in unit sales were also registered in the Chilean and Argentinean markets. The markets in Russia and Turkey also recorded a very strong rise.

Unit sales of buses in the EU27+3 region were down very sharply year-onyear in virtually all countries in the region. Unit sales in South America were down sharply compared with the prior-year period. Brazil played a major role in this decrease. The Russia and Asia/Pacific regions were also unable to reach the prior-year level. Unit sales in Africa posted very strong year-on-year growth as a result of a major order.

Starting in March of the prior-year quarter, the spread of the COVID-19 pandemic led to substantial uncertainties, which also impacted the TRATON GROUP's unit sales.

Sales Revenue by Product Group

€ million	3M 2021	3M 2020	Change
TRATON GROUP	6,544	5,679	15%
Industrial Business	6,438	5,564	16%
New Vehicles	4,061	3,290	24%
After Sales 1	1,298	1,268	2%
Others	1,080	1,006	7%
Financial Services	205	216	–5%
Consolidation/others	–99	–101	–

1 Including spare parts and workshop services

The TRATON GROUP generated sales revenue of €6.5 billion (3M 2020: €5.7 billion) in the first quarter of 2021. This represents a 15% increase year-onyear. The 16% increase in sales revenue in the Industrial Business segment resulted from the New Vehicles business. Reflecting the higher unit sales, this increase was attributable to the very sharp rise in sales revenue in the truck business, which significantly offset the severe drop in sales revenue in the bus business. The After Sales business grew slightly, and sales revenue in the Others business was up noticeably on the prior-year level, due largely to a sharp increase in sales revenue from used vehicles and very strong growth in the engine business. Offsetting factors were overall negative exchange rate effects due primarily to the depreciation of the Brazilian real.

Sales revenue in the Financial Services segment recorded a moderate decline. A higher average net portfolio was offset by negative foreign exchange rate effects and lower interest rates.

8 Market Environment

8 Incoming Orders
9 Unit Sales by Country
9 Sales Revenue by Product Group
10 Condensed Income Statement

11 Business Performance, Industrial Business

13 Business Performance, Financial Services
13 Net Cash Flow
14 Net Liquidity/Net Financial Debt
14 Navistar Acquisition Project
15 Report on Expected Developments

17 Operating Units

Condensed Income Statement

€ million		TRATON GROUP		Industrial Business		Financial Services		Others/reconciliation
	3M 2021	3M 2020	3M 2021	3M 2020	3M 2021	3M 2020	3M 2021	3M 2020
Sales revenue	6,544	5,679	6,438	5,564	205	216	–99	–101
Cost of sales	–5,235	–4,659	–5,206	–4,621	–128	–139	99	101
Gross profit	1,310	1,020	1,232	943	78	78	0	0
Distribution expenses	–586	–594	–555	–562	–31	–32	0	0
Administrative expenses	–226	–238	–226	–238	–	–	–	–
Other operating result	–343	–27	–348	–8	4	–19	0	0
Operating result	155	161	104	135	51	26	0	0
Operating return on sales (in %)	2.4	2.8	1.6	2.4	24.6	12.0	–	–
Financial result	81	–30	81	–30	0	0	0	0
Earnings before tax	236	131	185	105	51	26	0	0
Income taxes	–108	–35	–96	–28	–12	–8	0	0
Earnings after tax	127	96	89	77	38	18	0	0

Operating result:

Gross profit has increased for three consecutive quarters since bottoming out in the second quarter of 2020 — due to the drop in demand triggered by the COVID-19 pandemic — as demand has steadily recovered. In the first quarter of 2021, it rose by 28% year-on-year to €1.3 billion (3M 2020: €1.0 billion). The gross margin improved to 20.0% (3M 2020: 18.0%), in particular as a result of the significant increase in sales revenue.

Distribution expenses declined slightly despite the significant rise in sales revenue. In the prior-year period, they had been impacted by expenses in connection with the introduction of the new truck generation at MAN Truck & Bus. Administrative expenses were further reduced year-on-year

thanks to strict cost management. The decline in distribution and administrative expenses and the rise in sales revenue contributed to the 2.2 percentage point improvement in the ratio of distribution and administrative expenses to sales revenue to 12.4% (3M 2020: 14.6%).

Other operating result declined by €317 million as a result of expenses incurred in connection with restructurings for the repositioning of MAN Truck & Bus. Lower expenses from bad debt allowances on receivables and positive effects from the measurement and realization of foreign exchange positions and derivatives were offsetting factors.

8 Market Environment
8 Incoming Orders
9 Unit Sales by Country
9 Sales Revenue by Product Group
10 Condensed Income Statement
11 Business Performance, Industrial Business
13 Business Performance, Financial Services
13 Net Cash Flow
14 Net Liquidity/Net Financial Debt
14 Navistar Acquisition Project
15 Report on Expected Developments

17 Operating Units

21 Selected Financial Information
32 Further Information

At €155 million (3M 2020: €161 million), the TRATON GROUP's operating result was virtually on a level with the previous year. The increase in gross profit largely offset the negative effect of expenses for restructurings at MAN Truck & Bus in the amount of €362 million. The TRATON GROUP's operating return on sales was 2.4% (3M 2020: 2.8%).

Financial result:

At €81 million (3M 2020: €–30 million), financial result was up €112 million year-on-year. This increase is due primarily to higher investment income from investees accounted for using the equity method and positive effects from remeasurement of financial instruments.

Taxes:

The income taxes reported for the first quarter of 2021 amounted to €108 million (3M 2020: €35 million), corresponding to a tax rate of 46% (3M 2020: 27%). The higher tax rate was due, among other things, to loss carryforwards for which no deferred taxes were recognized.

Earnings after tax:

Earnings after tax amounted to €127 million (3M 2020: €96 million) in the first quarter of 2021. Earnings per share came to €0.26 (3M 2020: €0.19). Calculation of earnings per share was based on 500 million shares.

Business Performance, Industrial Business

€ million	3M 2021	3M 2020	Change
Operating result	104	135	–32
Operating result (adjusted)	465	135	330
Operating return on sales (in %)	1.6	2.4	–0.8 pp
Operating return on sales (adjusted) (in %)	7.2	2.4	4.8 pp
Capex	160	218	–58
Primary R&D costs	294	285	9

Operating result:

Despite the very strong rise in unit sales and systematic cost management, operating result declined year-on-year to €104 million (3M 2020: €135 million) due to the negative impact of expenses incurred in connection with the restructurings for the repositioning of MAN Truck & Bus.

Operating result (adjusted):

Operating result (adjusted) amounted to €465 million in the reporting period, corresponding to a €330 million year-on-year increase. The adjustments related to expenses in connection with the repositioning of MAN Truck & Bus, which reduced operating result by €362 million. Operating return on sales (adjusted) of 7.2% rose by 4.8 percentage points compared with the prior-year period.

Capex:

Capex declined by €58 million to €160 million (3M 2020: €218 million) in the first quarter of 2021. The primary investing activities related to replacement investments and capital expenditures in conjunction with new products, such as engine platforms and transmissions, as well as capital expenditures in facility expansions, e.g., foundry equipment.

8 Market Environment
8 Incoming Orders
9 Unit Sales by Country
9 Sales Revenue by Product Group
10 Condensed Income Statement
11 Business Performance, Industrial Business
13 Business Performance, Financial Services
13 Net Cash Flow
14 Net Liquidity/Net Financial Debt
14 Navistar Acquisition Project
15 Report on Expected Developments
17 Operating Units
21 Selected Financial Information
32 Further Information

Primary research and development costs:

At €294 million (3M 2020: €285 million), total research and development costs in the reporting period were roughly on a level with the previous year. R&D expenses in connection with the development of the new truck and bus generations at MAN Truck & Bus decreased, whereas expenses in the area of future technologies such as electrification and autonomous driving rose.

Overview by quarter:

OPERATING RESULT, INDUSTRIAL BUSINESS (ADJUSTED)

	Q1		Q2		Q3		Q4
	2021	2020	2021	2020	2021	2020	2021	2020
Operating result, Industrial Business	104	135	–	– 400	–	125	–	114
Adjustments, Industrial Business	362	–	–	–	–	50	–	4
Operating result, Industrial Business (adjusted)	465	135	–	– 400	–	174	–	118

8 Market Environment
8 Incoming Orders
9 Unit Sales by Country
9 Sales Revenue by Product Group
10 Condensed Income Statement
11 Business Performance, Industrial Business
13 Business Performance, Financial Services
13 Net Cash Flow
14 Net Liquidity/Net Financial Debt
14 Navistar Acquisition Project
15 Report on Expected Developments

17 Operating Units

32 Further Information

Business Performance, Financial Services

	3M 2021	3M 2020	Change
Operating result (€ million)	51	26	25
Operating return on sales (in %)	24.6	12.0	12.7 pp

The Financial Services segment's operating result increased to €51 million (3M 2020: €26 million) in the first quarter of 2021. The very strong rise is due primarily to lower depreciation and amortization charges and bad debt allowances on receivables compared with the prior-year quarter.

Net Cash Flow

	TRATON GROUP		Industrial Business		Financial Services		Others/reconciliation
€ million	3M 2021	3M 2020	3M 2021	3M 2020	3M 2021	3M 2020	3M 2021	3M 2020
Gross cash flow	583	548	538	465	141	116	–96	–32
Change in working capital	6	–307	171	–324	–231	–72	66	89
Net cash provided by/used in operating activities	589	242	709	141	–90	44	–30	57
Net cash provided by/used in investing activities attributable to operating activities	–312	–310	–312	–309	0	–1	0	–
Net cash flow	277	–68	397	–167	–91	43	–30	57

The TRATON GROUP increased its net cash provided by operating activities by €347 million to €589 million in the first quarter of 2021 compared with the prior-year period. This is attributable to the Industrial Business segment, which recorded only a small decrease in operating result despite the high level of noncash additions to provisions in the first quarter. Expenses from additions to provisions negatively impacted the result (gross cash flow), and the related increase in recognized provisions is reflected in working capital. In the prior-year period, changes in the working capital items of inventories and trade receivables and payables had been affected by production stops in March 2020 and by the drop in sales revenue due to the COVID-19 pandemic. There was only a minor increase in working capital tied up in these items despite strong rises in sales revenue and adjusted operating result in the first quarter of 2021.

The negative contribution by the Financial Services segment to net cash provided by/used in operating activities is attributable to the growth in the financial services portfolio, in particular the €232 million (3M 2020: €17 million) increase in funds tied up in financial services receivables.

Other positive factors were a higher average net portfolio and higher margins.

The number of financing contracts rose from around 178,300 as of December 31, 2020, to around 181,000 as of March 31, 2021. 12,587 (3M 2020: 9,539) new contracts were entered into in the first three months of 2021. The year-on-year increase in new contracts is primarily attributable to the higher unit sales in the New Vehicles business.

8 Market Environment
8 Incoming Orders
9 Unit Sales by Country
9 Sales Revenue by Product Group
10 Condensed Income Statement
11 Business Performance, Industrial Business
13 Business Performance, Financial Services
13 Net Cash Flow
14 Net Liquidity/Net Financial Debt
14 Navistar Acquisition Project
15 Report on Expected Developments

17 Operating Units

32 Further Information

Capital expenditures in other investees amounted to €80 million in the first quarter of 2021, including €50 million in TuSimple. By contrast, capital expenditures in property, plant, and equipment, intangible assets, and capitalized development costs were lower, resulting in virtually unchanged net cash used in investing activities attributable to operating activities.

The TRATON GROUP's net cash flow increased overall by €345 million to €277 million in the first quarter of 2021.

Net Liquidity/Net Financial Debt

		TRATON GROUP	Industrial Business
€ million		03/31/2021 12/31/2020 03/31/2021 12/31/2020
Cash and cash equivalents	1,728	1,714	1,638	1,641
Marketable securities, investment deposits, and loans to affiliated companies	3,668	2,114	3,862	2,114
Gross liquidity	5,395	3,828	5,500	3,755
Total third-party borrowings	–13,640	–12,298	–5,103	–3,728
Net liquidity/net financial debt	–8,245	–8,470	397	27

Net debt declined by €225 million to €8.2 billion in the first quarter of 2021, primarily because of the increase in investment deposits accompanied by a slower increase in total third-party borrowings.

Investment deposits as of March 31, 2021, contained deposits by TRATON SE of €3.7 billion (December 31, 2020: €2.1 billion) with Volkswagen AG.

Bonds from the €12.0 billion EMTN (European Medium Term Notes) program launched by TRATON Finance Luxembourg S.A. were issued on the capital market for the first time in March 2021. The €3.0 billion issuance was implemented in three fixed interest-rate tranches of €1.0 billion with a four-year term, €1.25 billion with an eight-year term, and €750 million with a twelve-year term, and was hedged by interest rate derivatives.

TRATON SE also placed Schuldscheindarlehen (medium- or long-term loans granted against a note issued by the borrower) in the total amount of €700 million with investors in March 2021, €275 million of which it has already drawn down. The individual Schuldscheindarlehen have terms of three, five, and seven years, and have been offered in both fixed and floatingrate formats. They include sustainability criteria (ESG-linked pricing), thereby underlining TRATON's commitment to sustainability and sustainable business performance.

The proceeds from the bonds and Schuldscheine are earmarked for general corporate purposes, including refunding subsidiaries' debt.

Navistar Acquisition Project

On September 10, 2020, TRATON increased the offer it originally made on January 30, 2020, to acquire all outstanding shares of Navistar International Corporation, Lisle, Illinois, USA (Navistar) (NYSE: NAV) not already held by TRATON to USD 43.00 per share in cash.

On November 7, 2020, TRATON announced that it had entered into a binding merger agreement under which TRATON will acquire all outstanding

8 Market Environment
8 Incoming Orders
9 Unit Sales by Country
9 Sales Revenue by Product Group
10 Condensed Income Statement
11 Business Performance, Industrial Business
13 Business Performance, Financial Services
13 Net Cash Flow
14 Net Liquidity/Net Financial Debt
14 Navistar Acquisition Project
15 Report on Expected Developments

17 Operating Units

common shares of Navistar not already held by TRATON at a cash price of USD 44.50 per common share.

TRATON held 16.7% of the outstanding shares of Navistar at the time of the agreement. The transaction was approved by the Navistar shareholder meeting in March 2021; official approvals are still outstanding.

The financing for the acquisition of the outstanding Navistar common shares amounting to approximately USD 3.7 billion is hedged by a derivative.

Report on Expected Developments

Expected Macroeconomic Developments

For 2021, the TRATON GROUP's Executive Board anticipates that global economic output will recover overall — provided that lasting containment of the COVID-19 pandemic can be successfully achieved. However, this growth will most likely be insufficient for the economy to recover to its pre-pandemic level.

We also expect that new registrations of medium- and heavy-duty trucks (> 6t) in the Group's core geographic regions, i.e., in the EU27+3 region (defined as the EU27 countries excluding Malta, plus the United Kingdom, Norway, and Switzerland), Brazil, Russia, South Africa, and Turkey will record generally positive growth compared with the previous year, with growth rates varying from region to region.

In the bus markets that are relevant for the TRATON GROUP (EU27+3 region, Brazil, and Mexico), we are projecting stable or rising demand for 2021, albeit with varied regional developments.

At the preparation date of this report, Navistar is not a member of the TRATON GROUP, and expectations for the Navistar Group's business development do not form part of this Report on Expected Developments.

The ranges for the TRATON GROUP's and its segments' operating return on sales and the return on investment in the Industrial Business segment were adjusted compared with the forecast issued in March 2021. These adjustments reflect, first, the positive business performance in the first quarter of 2021 and, second, the continuing high level of uncertainty regarding the further course of the COVID-19 pandemic and the associated countermeasures taken by the affected countries, as well as any potential impact on our production and supply chains.

The cash conversion rate for 2021 is no longer considered a meaningful indicator due to the restructuring of MAN Truck & Bus. Instead, we are reporting net cash flow in the Industrial Business segment as a key performance indicator, for which we are expecting a range of €500 to €700 million in 2021.

This forecast does not reflect any expenses or payments for MAN Truck & Bus's restructuring program.

8 Market Environment 8 Incoming Orders		Actual 2020	Forecast 2021 1 2020 Annual Report	Forecast 2021 1 3M 2021 Interim Statement
9 Unit Sales by Country
9 Sales Revenue by Product Group 10 Condensed Income Statement	TRATON GROUP
11 Business Performance,	Unit sales	190,180	sharp increase	sharp increase
Industrial Business 13 Business Performance,	Sales revenue (€ million)	22,580	substantial increase	substantial increase
Financial Services	Operating return on sales (in %)	0.6	5.0–6.0	5.0–7.0
13 Net Cash Flow
14 Net Liquidity/Net Financial Debt 14 Navistar Acquisition Project	Industrial Business
15 Report on Expected Developments	Sales revenue (€ million)	22,156	substantial increase	substantial increase
	Operating return on sales (in %)	0.1	4.5–5.5	4.5–6.5
17 Operating Units	Return on investment (in %)	–0.1	6.5–7.5	6.5–8.5
21 Selected Financial Information	Cash conversion rate (in %) 2	n/a	25–35	n/a
32 Further Information	Net cash flow (€ million)	676	n/a	500–700
	Capex (€ million)	992	considerable increase	considerable increase
	Primary research and development costs (€ million)	1,165	substantial increase	substantial increase
	Financial Services
	Sales revenue (€ million)	820	moderate increase	moderate increase
	Operating return on sales (in %)	13.1	13.5–17.5	13.5–20.5

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

2 In the 2020 reporting period, the negative earnings after tax did not result in any meaningful cash conversion rate.

O P E R A T I N G

OPERATING UNITS

U N I T S

Scania Vehicles & Services

17 Operating Units

18 Scania Vehicles & Services
19 MAN Truck & Bus
20 Volkswagen Caminhões e Ônibus

	3M 2021	3M 2020	Change
Trucks and buses (units)
Incoming orders	36,944	20,671	79%
Unit sales	23,033	18,184	27%
of which trucks	22,023	16,605	33%
of which buses	1,010	1,579	–36%

Financial key performance indicators

(€ million)
Sales revenue	3,420	2,982	15%
Operating result	409	256	154
Operating return on sales (in %)	12.0	8.6	3.4 pp

Incoming orders in the first quarter of 2021 were up 79% year-on-year, thus reaching an unusually high level. This very sharp increase was attributable to the truck business and was evident in all regions. Notably, incoming orders for trucks more than doubled in the most important market, the EU27+3 region.

As well as the volume-driven increase in sales revenue, operating result was positively affected by an advantageous product mix. Both effects are primarily attributable to the truck business. Exchange rate effects, higher depreciation charges on capex, and higher development costs negatively impacted the result.

Operating result in the prior-year quarter was negatively affected by the measures taken in connection with the COVID-19 pandemic, in particular the closures of our production sites starting in the second half of March 2020.

Clean delivery: Swedish company LBC Frakt AB is relying on a Scania plug-in hybrid truck for its transition to fossil-free transports. The truck runs on electricity supplied by the company's own solar system or on organic diesel.

MAN Truck & Bus

17 Operating Units

18 Scania Vehicles & Services
19 MAN Truck & Bus
20 Volkswagen Caminhões e Ônibus

	3M 2021	3M 2020	Change
Trucks and buses (units)
Incoming orders	32,070	24,098	33%
Unit sales	23,363	18,166	29%
of which trucks 1	22,590	17,060	32%
of which buses	773	1,106	–30%

Financial key performance indicators

(€ million)
Sales revenue	2,645	2,267	17%
Operating result	–290	–78	–213
Operating result (adjusted) 2	71	–78	149
Operating return on sales (in %)	–11.0	–3.4	–7.6 pp
Operating return on sales (adjusted) (in %)	2.7	–3.4	6.1 pp

1 Including MAN TGE vans (3M 2021: 5,904 units; 3M 2020: 3,428 units)

2 Adjusted for expenses in connection with the restructuring program

In addition to the volume-driven increase in sales revenue, operating result was positively affected by the introduction of the new truck generation and strict cost management. Operating result was negatively impacted by expenses of €362 million in connection with the restructuring.

In particular, expenses for which provisions can be recognized were incurred in connection with the restructuring program in the first quarter of 2021.

Driverless trucks: the final test phase of the innovative "Hamburg TruckPilot" project will begin shortly. Two autonomous MAN trucks will then be in operation at the container terminal in the Port of Hamburg.

These expenses contain the expenses directly attributable to the restructuring measures that are necessary for the restructuring and are not related to operating activities. Of the restructuring expenses of €362 million, €344 million is attributable to personnel measures (including severance payments and partial retirement arrangements) and €13 million to impairment losses on property, plant, and equipment. These figures do not reflect restructuring expenses in connection with the Steyr site.

17 Operating Units

18 Scania Vehicles & Services
19 MAN Truck & Bus
20 Volkswagen Caminhões e Ônibus

Volkswagen Caminhões e Ônibus

	3M 2021	3M 2020	Change
Trucks and buses (units)
Incoming orders	12,750	9,517	34%
Unit sales	13,989	9,860	42%
of which trucks	12,679	8,505	49%
of which buses	1,310	1,355	–3%

Financial key performance indicators

(€ million)
Sales revenue	466	383	22%
Operating result	33	12	21
Operating return on sales (in %)	7.0	3.1	3.8 pp

Operating result rose very strongly compared with the prior-year quarter due to a very sharp rise in unit sales and improved product positioning in Brazil. Negative factors were inflation-related cost increases, for example for material expenses, as well as negative exchange rate effects due to the depreciation of the Brazilian real.

A bus with extra length: the new model from Volkswagen Caminhões e Ônibus is being tested in Brazil. With a length of 15 meters, this super-bus can accommodate up to 115 passengers.

S E L E C T E D F I N A N C I A L I N F O R M A T I O N 3M 2021

SELECTED FINANCIAL INFOR-

MATION

SELECTED FINANCIAL INFORMATION

7 Course of Business

17 Operating Units

21 Selected Financial Information

Income Statement

of the TRATON GROUP for the period January 1 to March 31

22 Income Statement

31 Contingent Liabilities and Commitments

31 Segment Reporting

32 Further Information

€ million	3M 2021	3M 2020
Sales revenue	6,544	5,679
Cost of sales	–5,235	–4,659
Gross profit	1,310	1,020
Distribution expenses	–586	–594
Administrative expenses	–226	–238
Net impairment losses on financial assets	–1	–27
Other operating income	239	373
Other operating expenses	–581	–373
Operating result	155	161
Share of earnings of equity-method investments	120	23
Interest income	22	18
Interest expense	–55	–49
Other financial result	–6	–22
Financial result	81	–30
Earnings before tax	236	131
Income taxes	–108	–35
current	–141	–86
deferred	32	51
Earnings after tax	127	96
of which attributable to shareholders of TRATON SE	129	96
of which attributable to noncontrolling interests	–1	–1
Earnings per share in € (diluted/basic)	0.26	0.19

17 Operating Units

21 Selected Financial Information

22 Income Statement

23 Statement of Comprehensive Income
25 Balance Sheet
27 Statement of Changes in Equity
29 Statement of Cash Flows
31 Contingent Liabilities and Commitments
31 Segment Reporting
32 Further Information

Statement of Comprehensive Income

of the TRATON GROUP for the period January 1 to March 31

€ million	3M 2021	3M 2020
Earnings after tax	127	96
Pension plan remeasurements recognized in other comprehensive income
Pension plan remeasurements recognized in other comprehensive income, before tax	197	207
Deferred taxes relating to pension plan remeasurements recognized in other comprehensive income	–39	–70
Pension plan remeasurements recognized in other comprehensive income, net of tax	158	137
Fair value measurement of other equity investments and marketable securities
Fair value measurement of other equity investments and marketable securities, before tax	0	0
Deferred taxes relating to the fair value measurement of other equity investments and marketable securities	0	0
Fair value measurement of other equity investments and marketable securities, net of tax	0	0
Share of other comprehensive income of equity-method investments that will not be reclassified subsequently to profit or loss, net of tax 1	–1	–3
Items that will not be reclassified subsequently to profit or loss	157	134
Currency translation differences
Unrealized currency translation gains/losses	–135	–749
Currency translation differences, before tax	–135	–749
Deferred taxes relating to currency translation differences	–2	1
Currency translation differences, net of tax	–137	–748
Cash flow hedges
Fair value changes recognized in other comprehensive income	112	–41
Transferred to profit or loss	10	7
Cash flow hedges, before tax	122	–34
Deferred taxes relating to cash flow hedges	5	12
Cash flow hedges, net of tax	127	–22
Cost of hedging
Cost of hedging recognized in other comprehensive income	–3	–1
Cost of hedging transferred to profit or loss	0	–1
Cost of hedging, before tax	–3	–2
Deferred taxes relating to cost of hedging	1	1

17 Operating Units	€ million	3M 2021	3M 2020
21 Selected Financial Information	Cost of hedging, net of tax	–2	–1
	Share of other comprehensive income of equity-method investments that may be reclassified subsequently to profit or loss, net of tax 1	34	26
22 Income Statement 23 Statement of Comprehensive	Items that may be reclassified subsequently to profit or loss	23	–745
Income	Other comprehensive income, before tax	214	–557
25 Balance Sheet	Deferred taxes relating to other comprehensive income	–33	–55
27 Statement of Changes in Equity 29 Statement of Cash Flows	Other comprehensive income, net of tax	180	–611
31 Contingent Liabilities and	Total comprehensive income	308	–516
Commitments 31 Segment Reporting	of which attributable to shareholders of TRATON SE	305	–506
	of which attributable to noncontrolling interests	3	–10
32 Further Information

1 Prior-period amounts adjusted to reflect the current presentation

Balance Sheet

17 Operating Units

21 Selected Financial Information

22 Income Statement

29 Statement of Cash Flows
31 Contingent Liabilities and Commitments
31 Segment Reporting

32 Further Information

€ million	03/31/2021	12/31/2020
Noncurrent assets
Intangible assets	6,649	6,766
Property, plant, and equipment	6,876	6,908
Assets leased out	6,485	6,496
Equity-method investments	1,552	1,380
Other equity investments	136	72
Noncurrent income tax receivables	46	29
Deferred tax assets	1,321	1,231
Noncurrent financial services receivables	5,023	4,783
Other noncurrent financial assets	364	435
Other noncurrent receivables	307	269
	28,759	28,369
Current assets
Inventories	4,810	4,325
Trade receivables	2,085	1,906
Current income tax receivables	78	86
Current financial services receivables	2,963	2,957
Other current financial assets	433	453
Other current receivables	871	851
Marketable securities and investment deposits	3,655	2,105
Cash and cash equivalents	1,728	1,714
	16,621	14,398

Total assets 45,379 42,767

Assets of the TRATON GROUP as of March 31, 2021, and December 31, 2020

Balance Sheet

17 Operating Units

21 Selected Financial Information

22 Income Statement

23 Statement of Comprehensive Income

29 Statement of Cash Flows
31 Contingent Liabilities and Commitments
31 Segment Reporting

32 Further Information

			Equity and liabilities of the TRATON GROUP as of March 31, 2021, and December 31, 2020
--	--	--	----------------------------------------------------------------------------------------

€ million	03/31/2021	12/31/2020
Equity
Subscribed capital	500	500
Capital reserves	19,995	19,995
Retained earnings	–4,350	–4,479
Accumulated other comprehensive income	–2,902	–3,078
Equity attributable to shareholders of TRATON SE	13,243	12,939
Noncontrolling interests	233	230
	13,476	13,169
Noncurrent liabilities
Noncurrent financial liabilities	9,121	5,914
Provisions for pensions and other post-employment benefits	1,617	1,828
Deferred tax liabilities	851	767
Noncurrent income tax provisions	114	105
Other noncurrent provisions	1,481	1,304
Other noncurrent financial liabilities	2,303	2,321
Other noncurrent liabilities	1,901	1,903
	17,388	14,143
Current liabilities
Current financial liabilities	4,520	6,384
Trade payables	3,276	2,769
Current income tax payables	122	117
Current income tax provisions	23	22
Other current provisions	1,216	977
Other current financial liabilities	1,502	1,561
Other current liabilities	3,856	3,626
	14,515	15,455
Total equity and liabilities	45,379	42,767

Statement of Changes in Equity

of the TRATON GROUP for the period January 1 to March 31

17 Operating Units

21 Selected Financial Information

22 Income Statement
23 Statement of Comprehensive Income
25 Balance Sheet
27 Statement of Changes in Equity
29 Statement of Cash Flows
31 Contingent Liabilities and Commitments
31 Segment Reporting

		Capital reserves	Retained earnings	Accumulated other comprehensive income Items that may be reclassified subsequently to profit or loss
	Subscribed capital
€ million				Currency translation	Cash flow hedges	Equity-method investments
Balance as of 01/01/2020	500	20,241	–4,150	–1,806	–8	–37
Earnings after tax	–	–	96	–	–	–
Other comprehensive income, net of tax	–	–	–	–737	–22	26
Total comprehensive income	–	–	96	–737	–22	26
Capital increase 1	–	34	–	–	–	–
Other changes	–	–	–1	–	–	–
Balance as of 03/31/2020	500	20,275	–4,055	–2,543	–30	–11
Balance as of 01/01/2021	500	19,995	–4,479	–2,005	–115	–104
Earnings after tax	–	–	129	–	–	–
Other comprehensive income, net of tax	–	–	–	–137	126	34
Total comprehensive income	–	–	129	–137	126	34
Other changes	–	–	0	–	–	35
Balance as of 03/31/2021	500	19,995	–4,350	–2,142	12	–35

1 Contribution of additional profit from profit transfer by Volkswagen AG under the Relationship Agreement dated June 14, 2019

Statement of Changes in Equity

of the TRATON GROUP for the period January 1 to March 31

17 Operating Units

21 Selected Financial Information

22 Income Statement
---------------------	--

27 Statement of Changes in Equity

31 Contingent Liabilities and Commitments
31 Segment Reporting

32 Further Information

		Accumulated other comprehensive income
		Items that will not be reclassified subsequently to profit or loss
€ million	Pension plan remeasure ments	Equity-method investments	Other equity investments	Equity attribut able to share holders of TRATON SE	Noncontrolling interests	Total
Balance as of 01/01/2020	–998	124	–2	13,865	270	14,134
Earnings after tax	–	–	–	96	–1	96
Other comprehensive income, net of tax	134	–3	0	–602	–9	–611
Total comprehensive income	134	–3	0	–506	–10	–516
Capital increase 1	–	–	–	34	–	34
Other changes	–	–	1	–	0	0
Balance as of 03/31/2020	–864	120	0	13,393	260	13,653
Balance as of 01/01/2021	–1,054	186	15	12,939	230	13,169
Earnings after tax	–	–	–	129	–1	127
Other comprehensive income, net of tax	153	–1	0	176	4	180
Total comprehensive income	153	–1	0	305	3	308
Other changes	–	–35	–	0	0	0
Balance as of 03/31/2021	–901	150	15	13,243	233	13,476

1 Contribution of additional profit from profit transfer by Volkswagen AG under the Relationship Agreement dated June 14, 2019

17 Operating Units

21 Selected Financial Information

22 Income Statement

29 Statement of Cash Flows
31 Contingent Liabilities and Commitments
31 Segment Reporting

32 Further Information

Statement of Cash Flows

of the TRATON GROUP for the period January 1 to March 31

€ million	3M 2021	3M 2020
Cash and cash equivalents as of 01/01	1,714	1,913
Earnings before tax	236	131
Income taxes paid	–132	–201
Depreciation and amortization of, and impairment losses on, intangible assets, property, plant, and equipment, and investment property 1	237	221
Amortization of, and impairment losses on, capitalized development costs 1	67	57
Impairment losses on equity investments	0	1
Depreciation of and impairment losses on products leased out 1	277	291
Change in pension obligations	–6	–29
Earnings on disposal of noncurrent assets and equity investments	11	4
Share of earnings of equity-method investments	–120	–23
Other noncash income/expense	13	98
Change in inventories	–487	–365
Change in receivables (excl. financial services)	–240	103
Change in liabilities (excl. financial liabilities)	743	160
Change in provisions	431	–39
Change in products leased out	–209	–183
Change in financial services receivables	–231	18
Net cash provided by operating activities	589	242
Capital expenditures in intangible assets (excl. capitalized development costs) and in property, plant, and equipment	–161	–219
Additions to capitalized development costs	–79	–92
Capital expenditures to acquire other investees	–78	–4
Proceeds from the disposal of intangible assets, property, plant, and equipment, and investment property	5	5
Change in marketable securities and investment deposits	–1,550	1,390
Change in loans	1	4

17 Operating Units	€ million	3M 2021	3M 2020
21 Selected Financial Information	Net cash provided by/used in investing activities	–1,861	1,084
	Profit transfer to/loss absorption by Volkswagen AG	–	–1,404
22 Income Statement 23 Statement of Comprehensive	Noncontrolling interest shareholders of MAN SE: compensation payments and acquisition of shares tendered	–	2
Income	Proceeds from the issuance of bonds	3,371	1,050
25 Balance Sheet	Proceeds from the issuance of Schuldscheindarlehen	275	–
27 Statement of Changes in Equity 29 Statement of Cash Flows	Repayment of bonds	–989	–793
31 Contingent Liabilities and	Loan repayments to Volkswagen AG	–1,000	–
Commitments 31 Segment Reporting	Change in miscellaneous financial liabilities	–301	–335
	Repayment of lease liabilities	–55	–52
32 Further Information	Net cash provided by/used in financing activities	1,302	–1,533
	Effect of exchange rate changes on cash and cash equivalents	–16	–92
	Change in cash and cash equivalents	13	–299
	Cash and cash equivalents as of 03/31	1,728	1,614

1 Net of impairment reversals

Contingent Liabilities and Commitments

of the TRATON GROUP as of March 31, 2021, and December 31, 2020

17 Operating Units

21 Selected Financial Information

22 Income Statement

31 Contingent Liabilities and Commitments

31 Segment Reporting

32 Further Information

€ million	03/31/2021	12/31/2020	Change
Liabilities under buyback guarantees	2,474	2,431	43
Contingent liabilities under guarantees	54	60	–5
Other contingent liabilities	720	759	–39

Segment Reporting

of the TRATON GROUP for the period January 1 to March 31

Reporting segments 2021

REPORTING PERIOD JANUARY 1 TO MARCH 31, 2021

€ million	Industrial Business Financial Services		Total segments	Reconciliation	TRATON GROUP
Segment sales revenue	6,438	205	6,643	–99	6,544
Intersegment sales revenue	–98	–1	–99	99	–
Sales revenue, TRATON GROUP	6,340	204	6,544	–	6,544
Segment result (operating result)	104	51	154	0	155

3,248 3,250 –2

Reporting segments 2020

REPORTING PERIOD JANUARY 1 TO MARCH 31, 2020

€ million		Industrial Business Financial Services	Total segments	Reconciliation	TRATON GROUP
Segment sales revenue	5,564	216	5,780	–101	5,679
Intersegment sales revenue	–100	–1	–101	101	–
Sales revenue, TRATON GROUP	5,464	215	5,679	–	5,679
Segment result (operating result)	135	26	161	0	161

Munich, April 27, 2021

TRATON SE The Executive Board

F U R T H E R INFORMATION

FURTHER INFORMA-

TION

FURTHER INFORMATION

7 Course of Business

17 Operating Units

21 Selected Financial Information

32 Further Information

33 Key Performance Indicators

35 Overview by Quarter
40 Financial Calendar
41 Publication Details

Key Performance Indicators

Adjusted EBITDA in the Industrial Business segment: Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reflects the Industrial Business segment's operating performance before interest, taxes, depreciation, and amortization, after accounting for the use of resources. Because depreciation and amortization may depend on the chosen accounting policies, the carrying amounts, the capital structure, and the way in which an asset was acquired, adjusted EBITDA is used above all as a key performance indicator for peer group comparisons.

Adjustments to operating result: In addition to reported operating result (or operating profit/loss), adjusted operating result (or adjusted operating profit/loss) is also calculated to enable the greatest possible transparency of our business performance. Adjustments concern certain items in the financial statements that, in the opinion of the Executive Board, can be presented separately to enable a more appropriate assessment of financial performance. They include, in particular, costs of restructurings and structural measures. Adjusted operating return on sales is therefore calculated as the ratio of adjusted operating result to sales revenue. Adjustments to operating result are also taken into account in determining the adjusted EBITDA.

Capex in the Industrial Business segment: Capex in the Industrial Business segment represents the TRATON GROUP's investments in the future. It consists of the capital expenditures in property, plant, and equipment and in intangible assets (excluding capitalized development costs) that are reported in the statement of cash flows.

Cash conversion rate in the Industrial Business segment: In order to fund our forward-looking expenditures, we use the cash conversion rate in the Industrial Business segment to monitor the TRATON GROUP's financial position. This indicates the share of earnings after tax generated as cash and cash equivalents and is calculated as the ratio of positive net cash flow to positive earnings after tax. If net cash flow and/or earnings after tax are negative, the key performance indicator is meaningless and is no longer disclosed. The cash conversion rate is presented as a percentage.

Financial Services net portfolio: The net portfolio is calculated as the total of financial services receivables, the value of recognized buyback receivables, and right-of-use assets from vehicles with buyback obligations. It is based on the values from the perspective of the Financial Services segment.

Gross cash flow: Gross cash flow is calculated as the sum of earnings before tax and income tax payments, adjusted by depreciation and amortization of, and impairment losses on, intangible assets, property, plant, and equipment, investment property, capitalized development costs, products leased out (net of impairment reversals), impairment losses on equity investments (net of impairment reversals), changes in pension obligations, earnings on disposal of noncurrent assets and equity investments, share of earnings of equity-method investments, and other noncash expenses/income.

Net cash flow: Net cash flow comprises net cash provided by/used in operating activities (continuing operations) and net cash provided by/used in investing activities attributable to operating activities (continuing operations). We do not include changes in loans, marketable securities, or investment deposits in this figure. Net cash flow indicates the excess funds from operating activities.

17 Operating Units

21 Selected Financial Information
32 Further Information
33 Key Performance Indicators
35 Overview by Quarter
40 Financial Calendar
41 Publication Details

Net liquidity/net financial debt: Net liquidity/net financial debt comprises cash and cash equivalents, marketable securities, investment deposits, and loans to affiliated companies less financial liabilities, and reflects cash and cash equivalents, marketable securities, investment deposits, and loans to affiliated companies not financed by total borrowings.

Operating return on sales: Operating return on sales is the ratio of operating result (or operating profit/loss) to sales revenue and expresses the economic performance of our business activities after accounting for the use of resources. Operating result does not include net investment income. Operating return on sales measures the TRATON GROUP's profitability.

Primary research and development costs in the Industrial Business seg-

ment: Primary research and development costs in the Industrial Business segment contain both capitalized development costs and research and development costs not eligible for capitalization. They therefore represent expenditures ranging from blue skies research down to the market-ready development of our products and services. There is a particular focus here on subject areas that are defined in our Global Champion Strategy: autonomous driving, connectivity, and alternative drives. We can only drive innovation forward and implement our Global Champion Strategy if we invest sufficiently in research and development.

Overview by Quarter

17 Operating Units

21 Selected Financial Information

32 Further Information

INCOMING ORDERS, INDUSTRIAL BUSINESS

						Change Q1 2021
Units	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020	v. Q1 2020
Incoming orders, Industrial Business	81,742	70,318	58,502	33,270	54,161	27,581
of which trucks 1	78,749	67,007	55,304	30,726	48,603	30,146
of which buses	2,993	3,311	3,198	2,544	5,558	–2,565

1 Including MAN TGE vans (Q1 2021: 8,487 units; Q4 2020: 5,761 units; Q3 2020: 5,040 units; Q2 2020: 3,888 units; Q1 2020: 4,549 units)

UNIT SALES BY COUNTRY

						Change Q1 2021
Units	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020	v. Q1 2020
Unit sales, Industrial Business	60,315	62,520	49,922	31,748	45,990	14,325
Unit sales, trucks 1	57,222	58,186	45,331	28,529	41,960	15,262
EU27+3	29,975	34,510	24,686	15,724	24,093	5,882
of which in Germany	8,128	10,710	7,895	4,505	7,020	1,108
South America	16,956	12,859	11,345	7,214	10,865	6,091
of which in Brazil	14,489	10,481	9,337	6,271	9,649	4,840
Other regions	10,291	10,817	9,300	5,591	7,002	3,289
Unit sales, buses	3,093	4,334	4,591	3,219	4,030	–937
EU27+3	757	2,068	1,403	1,323	1,304	–547
of which in Germany	337	801	379	171	378	–41
South America	1,461	1,436	2,546	1,278	1,829	–368
of which in Brazil	1,057	1,116	1,672	981	1,348	–291
Other regions	875	830	642	618	897	–22

1 Including MAN TGE vans (Q1 2021: 5,904 units; Q4 2020: 6,243 units; Q3 2020: 5,037 units; Q2 2020: 2,927 units; Q1 2020: 3,428 units)

SALES REVENUE BY PRODUCT GROUP

17 Operating Units

21 Selected Financial Information

32 Further Information

€ million	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020	Change Q1 2021 v. Q1 2020
TRATON GROUP	6,544	6,839	5,667	4,394	5,679	865
Industrial Business	6,438	6,736	5,565	4,290	5,564	875
New Vehicles	4,061	4,372	3,331	2,393	3,290	771
After Sales 1	1,298	1,228	1,163	1,033	1,268	30
Others	1,080	1,136	1,072	865	1,006	74
Financial Services	205	208	200	197	216	–11
Consolidation/others	–99	–104	–98	–93	–101	–

1 Including spare parts and workshop services

CONDENSED TR ATON GROUP INCOME STATEMENT

€ million	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020	Change Q1 2021 v. Q1 2020
Sales revenue	6,544	6,839	5,667	4,394	5,679	865
Cost of sales	–5,235	–5,777	–4,708	–3,978	–4,659	–576
Gross profit	1,310	1,063	960	416	1,020	289
Distribution expenses	–586	–611	–532	–510	–594	8
Administrative expenses	–226	–231	–222	–185	–238	12
Other operating result	–343	–82	–44	–103	–27	–317
Operating result	155	139	162	–382	161	–7
Operating return on sales (in %)	2.4	2.0	2.9	–8.7	2.8	–0.5 pp
Financial result	81	–40	25	–71	–30	112
Earnings before tax	236	100	187	–453	131	105
Income taxes	–108	–65	–56	68	–35	–73
Earnings after tax	127	35	131	–385	96	32

KEY PERFORMANCE INDICATORS, INDUSTRIAL BUSINESS

17 Operating Units

21 Selected Financial Information

32 Further Information

€ million	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020	Change Q1 2021 v. Q1 2020
Operating result	104	114	125	–400	135	–32
Operating result (adjusted)	465	118	174	–400	135	330
Operating return on sales (in %)	1.6	1.7	2.2	–9.3	2.4	–0.8 pp
Operating return on sales (adjusted) (in %)	7.2	1.8	3.1	–9.3	2.4	4.8 pp
Capex	160	390	164	220	218	–58
Primary R&D costs	294	368	238	273	285	9

ADJUSTED EBITDA IN THE INDUSTRIAL BUSINESS SEGMENT

€ million	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020	Change Q1 2021 v. Q1 2020
Operating result	104	114	125	–400	135	–32
Adjustments	362	4	50	–	–	362
Operating result (adjusted)	465	118	174	–400	135	330
plus share of earnings of equity-method investments	120	–11	77	–5	23	97
plus other financial result	–6	34	–5	–20	–22	16
plus depreciation and amortization of, and impairment losses on, intangible assets, property, plant, and equipment, and investment property, net of impairment reversals	236	238	236	239	220	16
plus amortization of, and impairment losses on, capitalized development costs, net of impairment reversals	67	66	57	87	57	11
plus impairment losses on equity investments, net of impairment reversals	0	0	0	0	1	–1
Adjusted EBITDA	883	446	538	–99	414	469

KEY PERFORMANCE INDICATORS, FINANCIAL SERVICES

17 Operating Units

40 Financial Calendar
41 Publication Details

		Change Q1 2021
	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020	v. Q1 2020
Operating result (€ million)	51	25	37	19	26	25
Operating return on sales (in %)	24.6	12.2	18.7	9.5	12.0	12.7 pp

NET PORTFOLIO, FINANCIAL SERVICES

€ million	03/31/2021	12/31/2020
Financial services receivables	7,978	7,733
Value of buyback receivables in the Financial Services segment	1,006	1,033
Right-of-use assets from vehicles with buyback obligations	740	754
Net portfolio	9,724	9,520

CONDENSED STATEMENT OF CASH FLOWS, INDUSTRIAL BUSINESS

					Change Q1 2021 v. Q1 2020

					73
171	693	–228	16	–324	495
709	1,335	416	111	141	568
–312	–511	–217	–291	–309	–3
–1,749	–996	901	–201	1,486	–3,235
–2,061	–1,507	683	–492	1,177	–3,238
1,364	–319	–1,431	1,298	–1,532	2,896
–15	8	–32	19	–89	73
–3	–483	–363	936	–302	299
1,638	1,641	2,124	2,488	1,551	87
538	642	644	95	465	73
171	693	–228	16	–324	495
–312	–511	–217	–291	–309	–3
397	824	199	–179	–167	565
	Q1 2021 538	Q4 2020 642	Q3 2020 644	Q2 2020 95	Q1 2020 465

NET LIQUIDITY, INDUSTRIAL BUSINESS

17 Operating Units

21 Selected Financial Information	€ million	03/31/2021	12/31/2020	09/30/2020	06/30/2020	03/31/2020	Change Q1 2021 v. Q1 2020
32 Further Information	Cash and cash equivalents	1,638	1,641	2,124	2,488	1,551	87
33 Key Performance Indicators companies	Marketable securities, investment deposits, and loans to affiliated	3,862	2,114	1,114	2,014	1,794	2,068
35 Overview by Quarter 40 Financial Calendar	Gross liquidity	5,500	3,755	3,238	4,502	3,345	2,155
Total third-party borrowings 41 Publication Details		–5,103	–3,728	–3,965	–4,878	–3,507	–1,596
	Net liquidity/net financial debt	397	27	–727	–376	–162	559

17 Operating Units