TRATON : 2023 Annual Report

2023

Annual Report

TRANSFORM

TRANSFORM

It's not individual strength that helps a swarm of birds to thrive, but the fact that they work together toward a common goal. This is also true when it comes to transforming transportation.

TRATON's shared purpose is "Transforming Transportation Together. For a sustainable world." This is what defines us as a Group. It's not the purpose itself that makes us different, but how we execute it together and how seriously we take this commitment.

With its strong brands, the TRATON GROUP is a transportation powerhouse. We join forces, share common aims, and strive to create value. Together, we have unique capabilities to shape the future of transportation, empowering our brands and their customers to transform the transportation industry and benefit as a result.

To Our Shareholders

Combined Management Report

Consolidated Financial Statements

Further Information

TRATON GROUP

AT A GLANCE

	2023	2022		Change
Trucks and buses (units)
Incoming orders		264,798	334,583		-21%
Unit sales		338,183	305,485		11%
of which trucks		281,290	254,300		11%
of which buses		30,266	29,601		2%
of which MAN TGE vans		26,627	21,584		23%
TRATON GROUP
Sales revenue (€ million)		46,872	40,335		16%
Operating result (adjusted) (€ million)		4,034	2,071		1,963
Operating return on sales (adjusted) (in %)		8.6	5.1		3.5 pp
Earnings per share (€)		4.90	2.28	2.62
Active workforce 1		103,621	100,356		3,265
TRATON Operations
Sales revenue (€ million)		45,736	39,554		16%
Operating result (adjusted) (€ million)		4,272	2,257		2,016
Operating return on sales (adjusted) (in %)		9.3	5.7		3.6 pp
Return on investment (ROI) (in %)		14.8	6.7		8.2 pp
Primary R&D costs (€ million)		2,170	1,892	15%
Capex (€ million)		1,516	1,298	17%
Net cash flow (€ million)		3,594	-625	4,219
TRATON Financial Services
Sales revenue (€ million)		1,589	1,294	23%
Operating result (adjusted) (€ million)		269	303	-34
Operating return on sales (adjusted) (in %)	17.0	23.5	-6.5 pp
Return on equity (in %)	8.4	4.0	4.5 pp

1 As of December 31

264,798

Incoming orders

(units)

46,872

Sales revenue

(€ million)

8.6%

Operating return on sales

(adjusted)

To Our Shareholders

Combined Management Report

Consolidated Financial Statements

Further Information

Lisle, Illinois,

USA

	Södertälje,
Munich,	Sweden
Germany

THE TRATON GROUP AND ITS BRANDS

More than the sum of its parts: four brands, each with its own history and strengths, become one Group and transform the transportation industry together.

São Paolo,

Brazil

Scania

MAN

Navistar

Volkswagen Truck & Bus

global commercial	4
vehicle brands
countries	12

Scania is a premium innovation leader for sustainable transportation solutions. These include trucks and buses for sophisticated transportation applications as well as numerous related service offerings. The company has a global footprint and sells its products in a variety of markets, including Europe, North and Latin America, Asia, Africa, and Oceania.

MAN's objective is to simplify customer business as a reliable business partner. For this pur- pose, MAN offers a full range of solutions, from light commercial vehicles to heavy-duty trucks. International sales markets include in particular Europe, Asia, the Middle East, Africa, and Latin America.

Navistar manufactures trucks under the International brand and buses under the IC Bus brand. The company also sells spare parts and vehicle-specific services through various partner dealerships in the USA, Canada, and Mexico.

Volkswagen Truck & Bus offers excellent value with products that are tailored to growth markets, especially in Latin America, as well as in Africa and Asia.

production and	33
assembly sites

To Our Shareholders

Combined Management Report

Consolidated Financial Statements

Further Information

STORIES

p. 11 CHARGING AHEAD

TRATON is driving the development of a European charging infrastructure forward to help transform long-haul transportation.

p. 13 SUSTAINABILITY TAKES TEAMWORK

The TRATON GROUP brands have also grown even closer together when it comes to sustainability.

p. 6 THE PAST YEAR IN THE REARVIEW MIRROR

Looking back on important events in 2023 across the TRATON GROUP and its Scania, MAN, Navistar, and Volkswagen Truck & Bus brands.

p. 15 MYTHS ABOUT

ELECTRIC TRUCKS

When it comes to electric trucks with batteries, some misconceptions still persist.

p. 19 TRANSFORMATION IN ACTION

Zero-emission and autonomous commercial vehicles are just around the corner - and the Group's brands are already setting the course for them.

p. 7 BETTER TOGETHER

The six members of the TRATON SE Executive Board are working together as a team to drive forward the transformation of the transportation world.

p. 17 ADDING VALUE WITH A MODULAR SYSTEM

The TRATON Modular System relies on shared modules and interfaces instead of individual solutions.

Online report

Financial report

To Our Shareholders

Combined Management Report

Consolidated Financial Statements

Further Information

THE PAST YEAR IN THE REARVIEW MIRROR

Video: What were some of the	Learn more
other highlights of 2023?

More to offer

TRATON Financial Services reached the next milestone as an integrated financial services provider, and TRATON Charging Solutions launched a new charging service for electric trucks.

€1.6 billion

€1.3 billion

2022

MAN eTruck

MAN Truck & Bus launched sales of its eTruck. 700 orders and pre-orders have already been received for the first heavy-duty electric truck in the company's history. The first 200 trucks will be delivered to selected customers in 2024, before production starts in larger quantities in 2025.

Sales revenue of TRATON Financial Services

CBE at Navistar

Navistar began series production of the International S13 Integrated Powertrain, bringing the Common Base

At least

1,700

The first	The Milence joint venture
opened its first charging sta-
station
tion for electric trucks in Venlo
	in the Netherlands. There are
	currently four charging bays,
	with another four set to follow
	later on in 2024. In total,

Engine (CBE) to the North American market.

charging points by 2027

Milence intends to build at

least 1,700 charging points

across Europe by 2027.

Expanding the lead

Volkswagen Truck & Bus won a major order in a government tender in Brazil: 5,600 school buses can be ordered and delivered by the end of 2024.

5,600

Battery assembly

Scania opened a new, particularly sustainable battery assembly plant in Södertälje. There, battery cells from Northvolt are

This makes the company the leading brand in the school bus program.

That's how many buses Volkswagen Truck & Bus can deliver for the Brazilian initiative for more safety on the way to school.

assembled into modules and packs for trucks.

6

To Our Shareholders

Combined Management Report

Consolidated Financial Statements

Further Information

The TRATON Way Forward: together as a team and with a clear vision, the six members of the TRATON Executive Board are working to implement the Group's strategy and continue to drive forward the transformation of the transportation world.

Looking back over the past year, what stands out the most is a strong performance across all of the TRATON GROUP's brands - performance in truly challenging times. In addition, further progress was made toward becoming one Group with shared values and increasingly with a common structure. Last but not least, new products and services were successfully launched in 2023. All of this provides confidence that the TRATON GROUP will continue to successfully pursue its purpose: Transforming Transportation Together. For a sustainable world.

Videos: What do our

Executive Board members have to say about the past year?

Learn more

BETTER

TOGETHER

The Executive Board of TRATON SE
Mathias Carlbaum, Catharina Modahl Nilsson,
Dr. Michael Jackstein, Christian Levin,
Alexander Vlaskamp, Antonio Roberto Cortes (f.l.t.r.)	7

To Our Shareholders

Combined Management Report

Consolidated Financial Statements

Further Information

Christian

Levin

Chief Executive Officer of

TRATON SE and

Chief Executive Officer of

Scania

"For me, the highlight of 2023 is that all our brands put in a strong performance, and that in times of difficult conditions."

"We've managed to bring the TRATON GROUP with its brands and different cultures even closer together. This is a great accomplishment."

Dr. Michael

Jackstein

Member of the Executive Board of TRATON SE, responsible for Finance and Business Development as well as Human Resources

8

To Our Shareholders

Combined Management Report

Consolidated Financial Statements

Further Information

Catharina Modahl Nilsson

Member of the Executive Board of TRATON SE, responsible for TRATON Group Product Management

"The TRATON Modular System is the foundation for our future success. Together, as a Group, we have achieved a lot in the past year."

"At MAN, we are back on track with a return on sales of more than 7% and a good net cash flow. We have brought in the best result in the last 15 years."

Alexander

Vlaskamp

Member of the Executive

Board of TRATON SE,

Chief Executive Officer

of MAN

9

To Our Shareholders

Combined Management Report

Consolidated Financial Statements

Further Information

Mathias

Carlbaum

Member of the Executive

Board of TRATON SE,

Chief Executive Officer and

President of Navistar

"With Navistar, we were able to reach more customers and increase our market share. We highly appreciate that we are gaining trust and credibility."

"With more than 30 new truck and bus models, the launch of our Euro 6 product line was one of the largest in the history of Volkswagen Truck & Bus."

Antonio Roberto

Cortes

Member of the Executive

Board of TRATON SE,

Chief Executive Officer of

Volkswagen Truck & Bus

10

To Our Shareholders

Combined Management Report

Consolidated Financial Statements

Further Information