TRATON : 9M 2022 Interim Statement

9M 2022

I N T E R I M S T A T E M E N T A S O F

S E P T E M B E R 3 0 , 2 0 2 2

AT A GLANCE

		Sales revenue rose
		€28.5
Incoming orders	Unit sales	by 3 % to around
down by	11%
5%
higher at
217,143 vehicles
TRATON GROUP		billion

Adjusted operating result €25 million higher at around

€1.3

billion

Decrease in

adjusted

operating return

on sales to

4.7%

Trucks and buses (units)		9M 2022		9M 2021	Change
Incoming orders	256,191	268,317	-5%
Unit sales	217,143	195,422	11%
of which trucks	181,717	166,816	9%
of which buses	20,689	12,586	64%
of which MAN TGE vans	14,737	16,020	-8%
TRATON GROUP
Sales revenue (€ million)	28,545	21,670	32%
Operating result (€ million)	609	641	-32
Operating result (adjusted) (€ million)	1,347	1,322	25
Operating return on sales (in %)	2.1	3.0	-0.8 pp
Operating return on sales (adjusted) (in %)	4.7	6.1	-1.4 pp
Earnings per share (€)	1.32	1.33	-0.01
Employees1	101,120	97,235	3,885
TRATON Operations
Sales revenue (€ million)	27,995	21,302	31%
Operating result (€ million)	1,240	838	402
Operating result (adjusted) (€ million)	1,474	1,519	-45
Operating return on sales (in %)	4.4	3.9	0.5 pp
Operating return on sales (adjusted) (in %)	5.3	7.1	-1.9 pp
EBITDA (adjusted) (€ million)	2,952	2,672	279
Primary R&D costs (€ million)	1,338	981	36%
Capex (€ million)	768	622	23%
Net cash flow (€ million)		-1,334	152	-1,486
Net liquidity/net financial debt (€ million)1		-3,285		-1,694	-1,591
TRATON Financial Services
Sales revenue (€ million)	933	683	37%
Operating result (€ million)		-286	178	-465
Operating result (adjusted) (€ million)	218	178	39
Operating return on sales (in %)		-30.7	26.1	-56.8 pp
Operating return on sales (adjusted) (in %)	23.3	26.1	-2.8 pp
Return on equity (in %)		-23.5	17.6	-41.1 pp

1 As of September 30, 2022, and December 31, 2021

CONTENTS Course of Business

4

Material Events

5

Incoming Orders and Unit Sales by Country,

TRATON Operations

6

Operating Result (Adjusted) of the TRATON GROUP

8

Segments of the TRATON GROUP

11

Net Cash Flow

12

Capex, TRATON Operations

12

Primary Research and Development Costs,

TRATON Operations

13

Net Liquidity

13

Opportunities and Risks

14

Report on Expected Developments

Selected Financial Information

16

Income Statement

17

Statement of Comprehensive Income

19

Balance Sheet

21

Statement of Changes in Equity

23

Statement of Cash Flows

25

Contingent Liabilities and Commitments

25

Segment Reporting

27

Prior-Period Information

27

Noncurrent Assets or Disposal Groups Held for Sale

Whether viewed from afar or right up close, nature is a wonderful work of art. Proof of this can be seen in our cover photo, which shows a bird's eye view of cranberry bogs in the state of Massachusetts, USA. The TRATON GROUP wants to contribute to preserving the basis of life on our planet for generations to come. That is why, together with our brands, we have committed ourselves to acting responsibly and sustainably.

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 2022. 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 devel- opments.

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. The current definition of the key performance indicators can be found in the annual report published for the previous year. You can download this report from our website at https://ir.traton.com/websites/traton/English/3000/reports-_-presentations.html.

The latest financial calendar information and dates are available on TRATON SE's website at www.traton.com/financialcalendar.

4	9M 2022	INTERIM STATEMENTCOURSE OF BUSINESS
	TR ATON	GR OUP

4 Course of Business

1. Material Events
2. Incoming Orders and Unit Sales by Country, TRATON Operations
3. Operating Result (Adjusted) of the
   TRATON GROUP

1. Segments of the TRATON GROUP

1. Net Cash Flow
2. Capex, TRATON Operations

1. Primary Research and
   Development Costs, TRATON Operations
2. Net Liquidity

1. Opportunities and Risks
2. Report on Expected Developments

16 Selected Financial Information

Material Events

The TRATON GROUP generated sales revenue of €28.5 billion (9M 2021: €21.7 bil- lion) in the first nine months of 2022. Operating result (adjusted) was €1.3 billion (9M 2021: €1.3 billion), corresponding to an operating return on sales (adjusted) of 4.7% (9M 2021: 6.1%).

The war in Ukraine and the effects of China's zero-COVID policy led to continued supply bottlenecks and once again had a negative impact on the TRATON GROUP's production and unit sales. The shortages affected all segments but to a varying extent determined by their supplier network, specifications of the individual vehicles, and customer demand. Vehicle deliveries were also delayed as a result of logistics bottlenecks.

Worldwide, there was a significant increase in the prices for energy, logistics, other commodities, and bought-in parts, which impacted all TRATON GROUP segments.

The TRATON GROUP incurred expenses of €717 million in the first nine months that were directly connected to the war in Ukraine. These also include losses in connection with the disposal of business activities in Russia announced in September 2022. This disposal will see the sale of the Russian distribution companies of MAN Truck & Bus and Scania Vehicles & Services as well as Scania's financial services business in Russia (see the "Noncurrent Assets or Disposal Groups Held for Sale" section). The effect is reported as an adjustment to operating result.

In the second quarter, Scania settled the fine, plus interest, imposed by the European Commission in the EU antitrust proceedings and confirmed by the General Court of the European Union in its ruling of February 2, 2022. The total amount was €937 million. Scania filed an appeal against this judgment with the European Court of Justice on April 8, 2022. In addition, Navistar made final payments totaling €420 million in June 2022 following court approval of the "Profit Sharing Settlement Agreement" and "Krzysiak Action Settlement Agreement."

On July 8, 2022, the TRATON GROUP, Daimler Truck, and the Volvo Group took the final step to launch their joint venture to develop a charging infrastructure for heavy-duty trucks and coaches in Europe. Since then, the joint venture has been ramping up its activities and the development of the charging network. The company plans to install and operate at least 1,700 high-performance green energy charging points on and close to highways as well as at logistics points in Europe. The three partners are investing a total of €500 million. The planned charging network will be available to fleet operators in Europe across all brands, making an important contribution to the European Union's Green Deal and hence to climate-neutral freight transportation in 2050.

After a total of five years' development work together with the TRATON GROUP, Navistar debuted its new integrated powertrain to its dealers, customers, and the trade press in mid-August. The market launch of the International S13 Integrated Powertrain and the first deliveries to customers are planned for 2023. After Scania (2022), this makes Navistar the second TRATON GROUP brand to use the common base engine (CBE) resulting from the joint development project. The new powertrain sets new standards in fuel consumption, profitability, and sustainability, and marks a milestone in Navistar's strategy for a zero-emission transportation system.

IAA Transportation, the leading trade fair for logistics, commercial vehicles, buses, and the transportation sector, took place in Hanover in September 2022. The TRATON brands Scania and MAN presented new vehicles and technologies with a focus on sustainable solutions at the event. The highlight of MAN's presentation was the unveiling of the close-to-production MAN eTruck, which will launch on the market in 2024 and have a daily range of between 600 and 800 kilometers. Among other things, Scania presented its new generation of battery electric trucks for regional long-distance transportation, offering customers a range of up to 350 kilometers.

5	TR ATON GR OUP
9M 2022 INTERIM STATEMENT

4 Course of Business

1. Material Events
2. Incoming Orders and Unit Sales by Country, TRATON Operations
3. Operating Result (Adjusted) of the
   TRATON GROUP

1. Segments of the TRATON GROUP

1. Net Cash Flow
2. Capex, TRATON Operations

1. Primary Research and
   Development Costs, TRATON Operations
2. Net Liquidity

1. Opportunities and Risks
2. Report on Expected Developments

16 Selected Financial Information

Incoming Orders and Unit Sales by Country, TRATON Operations

								Incoming orders												Unit sales
Units	9M 2022						9M 2021	Change					9M 2022					9M 2021	Change
Total	256,191	268,317	-5%	217,143	195,422	11%
BEV unit sales ratio (excluding MAN TGE vans, in %)	n/a						n/a	n/a	0.4	0.0	0.3 pp
Trucks	210,323	230,531	-9%	181,717	166,816	9%
EU27+3	81,972	111,896	-27%	59,178	66,805	-11%
of which in Germany	21,775	27,206	-20%	13,337	17,592	-24%
North America	62,185	20,564	202%	50,460	12,204	313%
of which in the USA/Canada	55,703	15,606	257%	43,717	9,719	350%
of which in Mexico	6,482	4,958	31%	6,743	2,485	171%
South America	45,193	61,387	-26%	51,772	56,651	-9%
of which in Brazil	34,468	50,789	-32%	41,110	48,761	-16%
Other regions	20,973	36,684	-43%	20,307	31,156	-35%
Buses	25,572	13,323	92%	20,689	12,586	64%
EU27+3	4,477	3,635	23%	3,346	3,452	-3%
of which in Germany	1,208	1,169	3%	697	1,020	-32%
North America	12,586	4,287	194%	10,083	3,369	199%
of which in the USA/Canada	10,813	3,488	210%	8,677	2,655	227%
of which in Mexico	1,773	799	122%	1,406	714	97%
South America	6,297	3,481	81%	5,661	3,945	43%
of which in Brazil	4,530	2,696	68%	4,563	2,862	59%
Other regions	2,212	1,920	15%	1,599	1,820	-12%
MAN TGE vans	20,296	24,463	-17%	14,737	16,020	-8%
EU27+3	19,991	23,896	-16%	14,610	15,704	-7%
of which in Germany	8,266	6,958	19%	6,108	4,662	31%