TRATON : 9M 2024 Interim Statement

Interim Statement

as of September 30, 2024

9M 2024

AT A GLANCE

	change		Sales revenue rose
		€35.3
Incoming orders on	Unit sales	by % to around
prior­	-year level with	2%
0%
lower at
245,384 vehicles

billion

Adjusted operating result €332 million higher at around

€3.3

billion

Increase in

adjusted

operating return

on sales to

9.3%

Trucks and buses (units)		9M 2024		9M 2023	Change
Incoming orders	189,769	189,611	0%
Unit sales	245,384	249,475	-2%
of which trucks	205,233	207,078	-1%
of which buses	20,843	22,502	-7%
of which MAN TGE vans	19,308	19,895	-3%
TRATON GROUP
Sales revenue (€ million)	35,253	34,176	3%
Operating result (adjusted) (€ million)	3,261	2,929	332
Operating return on sales (adjusted) (in %)	9.3	8.6	0.7 pp
Earnings per share (€)	4.12	3.88	0.24
Active workforce 1	105,933	103,621	2,312
TRATON Operations
Sales revenue (€ million)	34,266	33,352	3%
Operating result (adjusted) (€ million)	3,570	3,113	457
Operating return on sales (adjusted) (in %)	10.4	9.3	1.1 pp
Primary R&D costs (€ million)	1,748	1,552	13%
Capex (€ million)	1,042	854	22%
Net cash flow (€ million)	1,344	2,403	-1,059
TRATON Financial Services
Sales revenue (€ million)	1,409	1,158	22%
Operating result (adjusted) (€ million)	158	221	-63
Operating return on sales (adjusted) (in %)	11.2	19.1	-7.9 pp
Return on equity (in %)	10.9	7.9	3.1 pp

1 As of September 30, 2024, and December 31, 2023

CONTENTS

4	15
Material Events	Income Statement
5	16
Incoming Orders and Unit Sales by Country,	Condensed Statement of Comprehensive Income
TRATON Operations	17
7
Balance Sheet
Condensed Income Statement	19
of the TRATON GROUP
9	Statement of Cash Flows
21
Segments of the TRATON GROUP
11	Contingent Liabilities and Commitments
21
Net Cash Flow
12	Segment Reporting
23
Capital Expenditures, TRATON Operations
12	Financial Calendar
Primary Research and Development Costs,
TRATON Operations
13
Net Liquidity/Net Financial Debt
14
Report on Expected Developments

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 and further underlined by our TRATON purpose: Transforming Transportation Together. For a sustainable world.

TRATON SE is a European stock corporation (Societas Europaea) incorporated under German law and admitted to trading on the Frankfurt Stock Exchange as its primary and the Nasdaq Stockholm as its secondary stock exchange. This Interim Statement was prepared in accordance with section 53 of the Exchange Rules for the Frankfurter Wertpapierbörse (FWB). Any deviations from the Guidance Note for Preparing Interim Management Statements issued by the Nasdaq Stockholm are described and explained on our website at www.traton.com. This Interim Statement does not constitute an interim financial report as defined in International Accounting Standard (IAS) 34 Interim Financial Reporting and has not been reviewed by an auditor.

This Interim Statement contains certain forward-looking statements for the remaining months of fiscal year 2024. 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. Comparable prior-year figures are presented in brackets alongside the figures for the fiscal year under review. The current definition of the key performance indicators can be found in the annual report published for the previous year. This report can be downloaded from our website at www.traton.com/publications.

4	9M 2024	INTERIM STATEMENTCOURSE OF BUSINESS
	TRATON	GROUP

5 Incoming Orders and Unit Sales by Country, TRATON Operations

7 Condensed Income Statement of the TRATON GROUP

12 Primary Research and Development Costs, TRATON Operations

Material Events

Despite a slight decline in unit sales, the TRATON GROUP generated sales revenue of €35.3 billion (9M 2023: €34.2 billion) in the reporting period, up 3% year-on-year. Operating result (adjusted) was €3.3 billion (9M 2023: €2.9 billion), which increased operating return on sales (adjusted) by 0.7 percentage points, from 8.6% to 9.3%.

IAA Transportation, the leading trade fair for logistics and the transportation sector, was held in Hannover in September 2024. Two TRATON GROUP brands presented a wide range of products during the fair. Scania showcased its versatile fleet, including the Scania Super 460 R, which won the German Green Truck Award. Among the vehicles presented by MAN were the 12-tonne eTGL and the new MAN hTGX with hydrogen-powered engine. The brands also presented digital and financial services, along with services covering all aspects of charging battery electric vehicles.

Navistar Inc. was renamed International Motors, LLC (International) on October 1, 2024. At the same time, the Navistar brand was renamed International and the former Navistar Sales & Services segment was renamed International Motors.

TRATON took the next steps on its journey to expand the TRATON Financial Services segment into a global captive financial services entity. TRATON Financial Services

acquired rights to the future MAN Financial Services business in several countries and began operations in the reporting period. Following the acquisition of the MAN financing business in Austria by the TRATON Financial Services segment, the TRATON GROUP's financial services receivables increased by approximately €190 million and liabilities by approximately €170 million.

In February, the Executive and Supervisory Boards of TRATON SE decided to strengthen Group-wide research and development as well as brand-specific development. To do this, significant parts of the research and development departments of the individual brands are being merged into a cross-brand organization. This new structure will drive forward the development of the TRATON Modular System with the aim of delivering sustainable, efficient, and connected transportation solutions to the market.

At its meeting in February, the Supervisory Board of TRATON SE extended the contracts of TRATON GROUP Executive Board members Alexander Vlaskamp and Mathias Carlbaum by five years, in each case until 2029.

On December 31, 2023, Volkswagen Finance Luxemburg S.A., a wholly owned subsidiary of Volkswagen AG, held 89.72% of TRATON SE's share capital. In two steps, over the course of the year, Volkswagen Finance Luxemburg S.A. transferred its 89.72% interest in the share capital of TRATON SE to its wholly owned subsidiary, Volkswagen International Luxemburg S.A.

5	TRATON GROUP
9M 2024 INTERIM STATEMENT

5 Incoming Orders and Unit Sales by Country, TRATON Operations

7 Condensed Income Statement of the TRATON GROUP

12 Primary Research and Development Costs, TRATON Operations

Incoming Orders and Unit Sales by Country, TRATON Operations

						Incoming orders														Unit sales
Units	9M 2024		9M 2023	Change						9M 2024			9M 2023	Change
Total	189,769	189,611	0%	245,384	249,475	-2%
of which all-electric vehicles	2,374	1,703	39%	1,131	1,190	-5%
BEV unit sales ratio (excluding MAN TGE vans, in %)	-		-	-	0.5	0.4	0.0 pp
Trucks	148,955	149,990	-1%	205,233	207,078	-1%
EU27+3	52,618	64,622	-19%	76,904	87,740	-12%
of which in Germany	14,179	15,032	-6%	19,836	24,253	-18%
North America	35,831	31,688	13%	61,052	59,873	2%
of which in the USA/Canada	28,763	26,704	8%	50,015	51,079	-2%
of which in Mexico	7,068	4,984	42%	11,037	8,794	26%
South America	43,806	34,279	28%	46,669	34,143	37%
of which in Brazil	37,271	28,675	30%	40,142	27,077	48%
Other regions	16,700	19,401	-14%	20,608	25,322	-19%
Buses	24,253	21,095	15%	20,843	22,502	-7%
EU27+3	5,166	4,565	13%	3,708	4,115	-10%
of which in Germany	1,187	1,246	-5%	794	1,016	-22%
North America	10,813	10,036	8%	9,017	11,785	-23%
of which in the USA/Canada	8,727	7,559	15%	6,603	9,231	-28%
of which in Mexico	2,086	2,477	-16%	2,414	2,554	-5%
South America	6,307	4,671	35%	6,133	4,805	28%
of which in Brazil	5,094	3,588	42%	5,137	3,917	31%
Other regions	1,967	1,823	8%	1,985	1,797	10%
MAN TGE vans	16,561	18,526	-11%	19,308	19,895	-3%
EU27+3	16,292	18,282	-11%	18,985	19,349	-2%
of which in Germany	4,750	6,410	-26%	6,097	6,901	-12%

6	TRATON GROUP
9M 2024 INTERIM STATEMENT

5 Incoming Orders and Unit Sales by Country, TRATON Operations

7 Condensed Income Statement of the TRATON GROUP

12 Primary Research and Development Costs, TRATON Operations

Incoming orders were on the previous period's level in the reporting period. It was therefore down slightly year-on-year in the truck business, although regional developments varied greatly. In North America, incoming orders increased significantly due to restrictive order acceptance in the comparative period. There was a strong increase in incoming orders in South America. In Brazil in particular, orders increased sharply in a growing market environment, whereas the previous year's performance in the Brazilian market was significantly negatively impacted by the new emissions regulations that had come into force. A noticeable economic slowdown in the EU27+3 region, especially in Germany, led to a significant decline in incoming orders for trucks. The MAN TGE also recorded a decline in incoming orders. By contrast, incoming orders for buses increased significantly. The primary reasons for this were the positive development of the coach segment in the EU27+3 region and orders for school buses won in South America.

The TRATON GROUP recorded a 2% year-on-year decline in unit sales in the reporting period, although the downward trend in the first half of 2024 was cushioned by 5% growth in the third quarter of 2024. Unit sales of trucks declined by 1%. This is due among other factors to the continued reluctance to buy in

the EU27+3 region and a model year change at MAN Truck & Bus. Unit sales in North America were slightly above the prior-year level. Owing to a fire at the plant of a mirror supplier, a number of trucks were not completed and delivered as planned in the second quarter of 2024. The resulting delivery backlog was eliminated in the third quarter. By contrast, very strong unit sales growth was posted in South America, due primarily to the positive economic development in Brazil. Unit sales of buses recorded a moderate decline compared with the previous year. This was due, on the one hand, to the delayed ramp-up of the new school bus model at International in North America in the first half of the year. On the other hand, tighter regulatory requirements for vehicle software systems in the EU27+3 region led to delays in unit sales of buses. By contrast, unit sales of buses increased in South America.

The book-to-bill ratio in the reporting period was 0.8 (9M 2023: 0.8).

306 (9M 2023: 237) all-electric trucks, 730 (9M 2023: 709) all-electric buses, and

95 (9M 2023: 244) MAN eTGE models were sold in the reporting period. Addition-

ally, 51 (9M 2023: 91) hybrid trucks and 211 (9M 2023: 204) hybrid buses were sold.

7	TRATON GROUP
9M 2024 INTERIM STATEMENT

5 Incoming Orders and Unit Sales by Country, TRATON Operations

7 Condensed Income Statement of the TRATON GROUP

12 Primary Research and Development Costs, TRATON Operations

Condensed Income Statement of the TRATON GROUP

		TRATON GROUP					TRATON Operations	TRATON Financial Services		Corporate Items
€ million	9M 2024	9M 2023					9M 2024					9M 2023	9M 2024					9M 2023	9M 2024				9M 2023
Sales revenue	35,253	34,176	34,266	33,352	1,409	1,158		-423				-334
Cost of sales	-27,662	-27,390					-26,962					-26,862	-963					-767	263	239
Gross profit	7,591	6,785	7,304	6,490	447	391		-160				-96
Distribution expenses	-2,802	-2,646					-2,447					-2,332	-170					-125	-184				-189
Administrative expenses	-1,299	-1,128					-1,130					-1,000	-35					-30	-134				-99
Other operating result	-388	-316					-315					-178	-84					-116	11				-21
Operating result	3,103	2,695	3,412	2,981	158	119		-467				-405
Operating result (adjusted)	3,261	2,929	3,570	3,113	158	221		-467				-405
Operating return on sales (adjusted) (in %)	9.3	8.6	10.4	9.3	11.2	19.1		-				-
Financial result	-427	-239					-589	855	-1	0		164				-1,094
Earnings before tax	2,676	2,456	2,823	3,836	156	119		-303				-1,499
Income taxes	-615	-516					-712					-837	-44					-73	140	394
Earnings after tax	2,060	1,940	2,111	3,000	112	46		-163				-1,105

Operating result

The TRATON GROUP increased its sales revenue by €1.1 billion (3%) in the reporting period. This growth is attributable in particular to a positive market and product mix and to better unit price realization in the TRATON Operations business area. Sales revenue in the TRATON Financial Services segment increased by €252 million (22%) compared with the prior-year period. This was primarily due to a rise in portfolio volume.

The TRATON GROUP's gross profit improved by €806 million (12%) in the first nine months of 2024 compared with the prior-year period. This increase is attributable primarily to continued good price management combined with an improved cost structure in the TRATON Operations business area. Higher

research and development costs had a negative impact on gross profit. Gross margin increased by 1.7 percentage points to 21.5% (9M 2023: 19.9%) in the TRATON GROUP and by 1.9 percentage points to 21.3% (9M 2023: 19.5%) in the TRATON Operations business area.

In the reporting period, the TRATON GROUP's distribution expenses were up €155 million (6%) and administrative expenses were up €171 million (15%) year- on-year. In both cases, the increase was primarily due to inflation-related cost increases, for example in personnel costs. The ratio of distribution and administrative expenses to sales revenue therefore rose by 0.6 percentage points to 11.6% (9M 2023: 11.0%).

8	TRATON GROUP
9M 2024 INTERIM STATEMENT

5 Incoming Orders and Unit Sales by Country, TRATON Operations

7 Condensed Income Statement of the TRATON GROUP

12 Primary Research and Development Costs, TRATON Operations

Other operating result declined by €72 million (-23%) compared with the prior- year period. At TRATON Operations, in particular, expenses attributable to civil lawsuits against Scania and MAN in connection with the EU truck cases in individual countries had a negative impact. The TRATON Financial Services segment was also impacted by higher expenses from bad debt allowances on receivables year-on-year. This was offset in particular by the charges amounting to €102 million in connection with the sale of Scania Finance Russia in the prior-year period.

Due to the effects described above, the TRATON GROUP's operating result increased by €407 million (15%) compared with the prior-year period.

Adjustments to operating result

Adjustments (€ million)		9M 2024		9M 2023
Scania Vehicles & Services	102	94
of which legal proceedings and related measures	95	20
of which restructuring measures	7	73
MAN Truck & Bus	57	39
of which legal proceedings and related measures	57	39
TRATON Operations	159	132
TRATON Financial Services		-	102
TRATON GROUP	159	234

Adjustments at TRATON Operations in the reporting period amounted to €159 million (9M 2023: €132 million). They include expenses of €151 million (9M 2023: €59 million) in connection with civil lawsuits against Scania and MAN as a result of the EU truck cases in individual countries. These were recognized in the course of the updated reassessment of risks. The adjustments also contain €7 million (9M 2023: €73 million) in connection with the realignment of the Scania bus business. In the TRATON Financial Services segment, adjustments in the previous year in connection with the sale of Scania Finance Russia had amounted to €102 million. The TRATON GROUP's operating result (adjusted) therefore rose by €332 million (11%) year-on-year.

The TRATON GROUP increased its operating return on sales (adjusted) by

0.7 percentage points to 9.3% (9M 2023: 8.6%). In the TRATON Operations business area, operating return on sales (adjusted) increased by 1.1 percentage points to 10.4% (9M 2023: 9.3%).

Financial result

The TRATON GROUP's financial result declined by €188 million (-79%) in the first nine months of 2024 compared with the previous year. Currency translation effects on net financial debt were the main driver of the decline, due above all to the devaluation of the Brazilian real versus the euro. By contrast, the higher earnings of the equity-method investment in Sinotruk (Hong Kong) Limited, Hong Kong, China (Sinotruk) had a positive effect.

Taxes

Income taxes rose by €100 million in the current reporting period. This corresponds to a tax rate of 23% (9M 2023: 21%). The slightly higher tax rate year-on-year is primarily due to the discontinuation of offsetting effects from the recognition of loss carryforwards from previous years.

9	TRATON GROUP
9M 2024 INTERIM STATEMENT

5 Incoming Orders and Unit Sales by Country, TRATON Operations

7 Condensed Income Statement of the TRATON GROUP

12 Primary Research and Development Costs, TRATON Operations

Segments of the TRATON GROUP

Scania Vehicles & Services							MAN Truck & Bus
			9M 2024		9M 2023	Change			9M 2024		9M 2023	Change
Incoming orders (units)	56,413	61,781	-9%	Incoming orders (units)	54,858	65,838	-17%
Sales (units)	74,055	67,743	9%	Sales (units)	69,215	84,244	-18%
of which trucks	70,034	64,283	9%	of which trucks	46,275	60,718	-24%
of which buses	4,021	3,460	16%	of which buses	3,632	3,631	0%
Book-to-bill ratio	0.76	0.91	-0.15	of which MAN TGE vans	19,308	19,895	-3%
Sales revenue (€ million)	13,911	12,646	10%	Book-to-bill ratio	0.79	0.78	0.01
New Vehicles	9,458	8,105	17%	Sales revenue (€ million)	10,133	10,643	-5%
Vehicle Services business1	2,871	2,761	4%	New Vehicles	6,177	6,697	-8%
Others	1,583	1,780	-11%	Vehicle Services business1	2,178	2,103	4%
Operating result (adjusted) (€ million)	1,998	1,622	376	Others	1,778	1,842	-3%
Operating return on sales (adjusted) (in %)	14.4	12.8	1.5 pp	Operating result (adjusted) (€ million)	751	757	-5
1 Including genuine parts and workshop services							Operating return on sales (adjusted) (in %)	7.4	7.1	0.3 pp

1 Including genuine parts and workshop services

Scania Vehicles & Services recorded a significant decline in incoming orders for trucks compared with the comparative period. This was due in part to the continued reluctance to buy in the EU27+3 region. In South America, order acceptance was highly restrictive in the third quarter of 2024 so as to meet quality requirements when rolling out a new software generation. By contrast, incoming orders for buses increased substantially. Unit sales rose noticeably, driven by the solid order backlog, stable supply chains, and the increase in production volume.

Sales revenue also grew noticeably year-on-year. This growth was mainly attributable to the very strong increase in the New Vehicles business in South America. Scania Vehicles & Services reported a moderate year-on-year increase in sales revenue in the EU27+3 region. In addition to the volume-related increase in sales revenue, operating result (adjusted) was lifted by a positive price and product mix and by lower product costs. Improved margins also had a positive impact on the result in the Vehicle Services business. By contrast, increased personnel costs negatively affected operating result (adjusted).

MAN Truck & Bus recorded a substantial decline in incoming orders in the reporting period compared with the previous year. This was due in particular to weaker demand for trucks in the EU27+3 region. The substantial year-on-year decline in unit sales is mainly attributable to the weak truck market environment in Germany, a truck model year change in the first half of 2024, and catch-up effects in the comparative period. Tighter regulatory requirements for vehicle software systems in the EU27+3 region led to delays in unit sales of buses, particularly in the third quarter of 2024.

Despite the substantial decline in unit sales, sales revenue only fell moderately due to an improved price and product mix, with the result that operating result (adjusted) was almost on a level with the previous year. In addition, MAN benefited from an improved cost structure due to the realignment program completed at the end of 2023, despite lower production capacity utilization.

10 TRATON GROUP

9M 2024 INTERIM STATEMENT

5 Incoming Orders and Unit Sales by Country, TRATON Operations

7 Condensed Income Statement of the TRATON GROUP

12 Primary Research and Development Costs, TRATON Operations

International Motors (formerly: Navistar Sales & Services)			Volkswagen Truck & Bus
		9M 2024		9M 2023	Change				9M 2024		9M 2023	Change
Incoming orders (units)	42,774	37,539		14%	Incoming orders (units)	35,745	24,891	44%
Sales (units)	66,772	68,176		-2%	Sales (units)	35,742	29,752	20%
of which trucks	59,098	57,714		2%	of which trucks	30,214	24,711	22%
of which buses	7,674	10,462		-27%	of which buses	5,528	5,041	10%
Book-to-bill ratio	0.64	0.55		0.09	Book-to-bill ratio	1.00	0.84	0.16
Sales revenue (€ million)	8,256	8,357		-1%	Sales revenue (€ million)	2,328	1,943	20%
New Vehicles	6,084	5,946		2%	New Vehicles	2,159	1,784	21%
Vehicle Services business1	1,388	1,562		-11%	Vehicle Services business1	134	120	12%
Others	784	849		-8%	Others	34	38	-9%
Operating result (adjusted) (€ million)	564	546		18	Operating result (adjusted) (€ million)	278	186	92
Operating return on sales (adjusted) (in %)	6.8	6.5		0.3 pp	Operating return on sales (adjusted) (in %)	12.0	9.6	2.4 pp
1 Including genuine parts									1 Including genuine parts and workshop services

International Motors recorded a significant increase in incoming orders in the reporting period compared with the previous year, when incoming orders had been marked by restrictive order acceptance due to limited production capacities resulting from supply bottlenecks. Unit sales were down slightly year-on- year. This was primarily the result of the delayed ramp-up of sales of the new school bus model in the first half of 2024. Temporary delays in the final assembly of trucks due to missing parts caused by a fire at a mirror supplier's production plant in the second quarter of 2024 were eliminated in the third quarter of 2024.

Sales revenue was down slightly year-on-year, mainly due to a decline in the Vehicle Services business, which was negatively impacted by reduced transportation activity in the USA, and this in turn weighed on operating result (adjusted). By contrast, improved unit price realization had a positive impact on operating result (adjusted) and operating return on sales (adjusted).

Volkswagen Truck & Bus (VWTB) recorded a strong increase in unit sales in the reporting period. This was primarily attributable to lower truck and bus unit sales in the previous year due to the introduction of a new emissions standard, as well as an improved economic situation in the reporting period. In addition to the volume-related increase in sales revenue, improved product positioning and unit price realization in Brazil positively impacted operating result (adjusted) and operating return on sales (adjusted).