Traton : Annual Media Conference for fiscal year 2020 – Presentation Press, 2021/03/22

March 17, 2021

ANNUAL MEDIA CONFERENCE FOR FISCAL YEAR 2020

MATTHIAS GRÜNDLER, CEO

CHRISTIAN SCHULZ, CFO

MUNICH - MARCH 22, 2021

DISCLAIMER

This presentation has been prepared for information purposes only.

It does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of Volkswagen AG, TRATON SE, or any company of the TRATON GROUP in any jurisdiction. Neither this presentation, nor any part of it, nor the fact of its distribution, shall form the basis of, or be relied on in connection with, any contractual commitment or investment decision in relation to the securities of Volkswagen AG, TRATON SE, or any company of the TRATON GROUP in any jurisdiction, nor does it constitute a recommendation regarding any such securities.

It contains forward-looking statements and information on the business development of the TRATON GROUP. These statements and information are based on assumptions relating in particular to the TRATON GROUP's business and operations and the development of the economies in the countries in which the TRATON GROUP is active. As far as information or statements on Navistar are concerned, the same applies to Navistar. Please note that TRATON SE has signed definitive agreements on the acquisition of Navistar but the acquisition requires a number of approvals and is therefore not yet closed.

The TRATON GROUP has made such forward-looking statements on the basis of the information available to it and assumptions it believes to be reasonable. The forward-looking statements and information may involve risks and uncertainties, and actual results may differ materially from those forecasts. If any of these or other risks or uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, the actual results may significantly differ from those expressed or implied by such forward-looking statements and information. The TRATON GROUP will not update this presentation, particularly not the forward-looking statements. The presentation is valid on the date of publication only.

Certain financial information and financial data included in this presentation are preliminary, unaudited, and may be subject to revision. Due to their preliminary nature, statements contained in this presentation should not be unduly relied upon, and past events or performance should not be taken as a guarantee or indication of future events or performance. Financial figures might be translated from different currencies, using the exchange rate prevailing at the relevant date or for the relevant period that the relevant financial figures relate to.

All statements with regard to markets or market position(s) of TRATON SE or any affiliated company or any of its competitors are estimates based on data available to the TRATON GROUP. As far as information or statements on Navistar are concerned, the same applies to Navistar.

IHS Markit Data referenced herein are the copyrighted property of IHS Markit Ltd. and its subsidiaries ("IHS Markit"). The IHS Markit Data are from sources considered reliable; however, the accuracy and completeness thereof are not warranted, nor are the opinions and analyses published by IHS Markit representations of fact. The IHS Markit Data speak as of the original publication date thereof and are subject to change without notice. IHS Markit and other trademarks appearing in the IHS Markit Data are the property of IHS Markit or their respective owners.

The percentage figures shown may be subject to rounding differences. Due to different proportions and scaling graphs, data shown in different graphs is not comparable.

ANNUAL MEDIA CONFERENCE ON FISCAL YEAR 2020 - YOUR PRESENTERS TODAY

AGENDA

1. Challenging Environment 2020

2. Core KPIs Fiscal Year 2020
3. Road To The Future
4. Q&A

COVID-19 PANDEMIC WITH HUGE IMPACT IN 2020 AND BEYOND

POLITICAL ENVIRONMENT European Green Deal and

US electionsCOMPANY ENVIRONMENT Ongoing COVID-19 pandemic leads to uncertainties and burdens supply chain

GLOBAL ECONOMY

Recovering from severe impact of COVID-19

pandemic, but still under pressure

BUSINESS CLIMATE

European truck and bus market developing above pre COVID-19 level in Q4 2020

DEEP DIVE GLOBAL ECONOMY

GLOBAL ECONOMY IS RECOVERING FROM SETBACK FROM THE PANDEMIC

Growth expected for 2021, but environment still fragile

GDP forecasts for 2020/2021 as ofJan 2020Jun 2020Jan 2021

Source: IMF World Economic Outlook

DEEP DIVE BUSINESS CLIMATE

BUSINESS CLIMATE IS BRIGHTENING, NOT YET ON NORMAL LEVEL

Truck registrations (> 16t) in Europe improving1

200

2021

-20 -40 -60

2017

2018

2019

2020

Monthly European truck registrations (k units)YoY change (in %)

1 ACEA new heavy commercial vehicles (HCV) registrations of 16t and over for EU + EFTA + UK

DEEP DIVE POLITICAL ENVIRONMENT

GLOBAL TRADE RELATIONS AND CV INDUSTRY ARE TRANSFORMING

Restructuring of the international trade relations

A NEW BEGINNING?

Implementation of the European Recovery and Resilience Facility

MARKET RAMP-UP ALTERNATIVE DRIVES & AUTOMATION.

Purchase incentives for customers and investments in charging infrastructure needed

First road tests: autonomous driving

STRONG SECOND HALF OF THE YEAR AFTER STEEP DECLINE

Incoming orders & unit sales (k units)

70.3K62.5K

Q1 18

Q2 18

Q3 18

Q4 18

Q1 19

Q2 19

Q3 19

Q4 19

Q1 20

Q2 20

Q3 20

Q4 20

AGENDA

Challenging Environment 2020

2. Core KPIs Fiscal Year 2020

3. Road To The Future
4. Q&A

SNAPSHOT TRATON GROUP CORE KPIS FY 2020

Trucks and buses (units)

1.14

0.94

0.2 bpBOOK TO BILL1 (RATIO IN UNITS)

2020

2019

Change

1 Book-to-bill is defined as the ratio of trucks and bus units ordered to trucks and bus units delivered
2 Including MAN TGE (2020: 17,635 units, 2019: 14,788 units)

2020	2019 Change	2020	2019	Change
174,006	220,723 -21%	16,174	21,496	-25%

OF WHICH TRUCKS2

OF WHICH BUSES

DEEP DIVE GROUP CORE KPIS

Financial key performance indicators (€ million)

1 FY 2020: Operating Result €81 mn; FY 2019: Operating Result €1,884 mn
2 FY 2020: Operating RoS 0.4%; FY 2019: Operating RoS 7.0%;

ADJ. OPERATING ROS (in %)2

2020	2019	Change
0.6
7.0	-6.4 pp

DEEP DIVE GROUP CORE KPIS

Industrial Business (€ million)

ADJ. OPERATING ROS (in %)2

2020	2019	Change
0.1
6.5	-6.4 pp

1 FY 2020: operating result €-26 mn; Operating result in FY 2020 contained costs that were primarily incurred in connection with the reorganization of production facilities at Scania V&S of €54 mn; FY 2019: operating result €1,7741 mn
2 FY 2020: Operating RoS -0.1%; FY 2019: Operating RoS 6.6%

DEEP DIVE GROUP CORE KPIS

Industrial Business (€ million)

1 Capital expenditures in property, plant, and equipment, and intangible assets (€million).
2 FY 2019 reported net cash flow of €2,711 mn, adjusted of €733 mn before the sale of Power Engineering (€1,978 mn).
3 Mainly due to the net cash outflow of €-1.4 bn resulting primarily from the end of the domination and profit and loss transfer agreement (DPLTA) with Volkswagen AG for the fiscal year 2019. Note: Delta FY 2020 vs. FY 2019.

DEEP DIVE GROUP CORE KPIS

Financial Services (€ million)

POSITIVE TRUCK MARKET OUTLOOK, DEPENDING ON COVID-19 DEVELOPMENT

Truck market (˃ 6t, k units)

Source: Historical data based on own calculations and estimates.

1 EU27+3 region (EU27 countries without Malta, plus the United Kingdom, Norway, and Switzerland)
2 Includes estimates from different institutes, companies and data and information services.

OUTLOOK 2021: RECOVERY AFTER STRONG DECLINE

TRATON GROUP Core KPIs

FY 2019	FY 2020	2021 Outlook1	FY 2019	FY 2020	2021 Outlook1
242.2 k	190.2 k	€26.9 bn	€22.6 bn
Sharp	Substantial
increase	increase
+ 4%	-21%	+ 4%	-16%
UNIT SALES	SALES REVENUE
FY 2019	FY 2020	2021 Outlook1	FY 2019	FY 2020	2021 Outlook1
7.0%	0.4%	5.0 - 6.0%	179%	n/a3	25 - 35%
€1.9 bn	€81 mn

1 Before expenses from the MAN Truck & Bus restructuring program and effects from the planned acquisition of Navistar International Corporation.
2 FY 2019: adjusted RoS 7.0%, adjusted operating result €1.9 bn; FY 2020: adjusted operating RoS 0.6%, adjusted operating result €135 mn.
3 Calculated as the ratio of net cash flow to result after tax; cash conversion rate in FY 2019 was positively affected by the proceeds of approximately €2.0 bn from the disposal of the Power Engineering business. In FY 2020, the negative earnings after tax did not result in any meaningful cash conversion rate.

H2 2020 SIGNIFICANTLY STRONGER THAN H1 2020

SNAPSHOT TRATON - STRATEGIC AND PRODUCT HIGHLIGHTS 2020

The TRATON GROUP successfully followed its Global Champion Strategy

AGENDA

1. Challenging Environment 2020
2. Core KPIs Fiscal Year 2020

3. Road To The Future

4. Q&A

SUCCESSFUL EXECUTION OF OUR GLOBAL CHAMPION STRATEGY

COOPERATION & SYNERGIES

START OF INTRODUCTION OF THE COMMON BASE ENGINE (CBE) IN H2 2021

50% Common base engine (CBE)

expected to be installed in almost half of TRATON heavy-duty trucks per year from 2025e onwards.

CBEEnhanced fuel efficiency Reduced weight

Low maintenance

2023e

2021e

2022e

2024e

2025e

2026e

TRATON INCREASES R&D INVESTMENT IN E-MOBILITY TO €1.6 BILLION

TRATON invests

€1.6 billion in R&D for e-mobility from 2021 to 2025

All brands are shifting budgets from conventional drives to e-mobility

Share of product development1 for e-mobility will be doubled until 2025

Less than 20% of product development budget for conventional drivetrains in 2025

1 Product Development budget comprises the share of primary R&D costs, that could be assigned to specific Product Projects or Product Project Roadmaps before start of production. Product Development budget does not include efforts for general base research or R&D support after start of production (i.e. for quality assurance or product cost optimization during the lifecycle).

OUR BRANDS FOCUS ON E-MOBILITY LEADERSHIP

SINCE 2020

Common modular electric powertrain toolkit, used in the first series produced all-electric city buses from Scania and MAN.

BY 2025

Electrified vehicles will account for around 10% of Scania's total vehicle sales volumes in Europe. Half of MAN's new buses will run on alternative drives.

BY 2030

Electrified vehicles will account for 50% of Scania's total vehicle sales volumes. At least 60% of MAN's delivery trucks and 40% of long-haul trucks will be emission-free.

BEV WILL BECOME MAINSTREAM IN ALL MAJOR CV SEGMENTS

Total cost of ownership is the most important driver for adoption of new drivetrains, exceeding regulatory impact.

We see BEV as the most cost-efficient solution, especially in long-distance applications (due to high energy to total cost ratio).

Three BEV trucks can drive with the same amount of energy as one hydrogen truck.

TRATON expects BEV to become mainstream in all major CV segments.

SCANIA AND MAN HAVE SEVERAL AUTONOMOUS INITIATIVES ONGOING

AV Initiatives @ SCANIA

MAN T&B MEASURES TO IMPROVE EARNINGS

Overview by item type (€ mn)

1.700

Earnings improvement

Personnel & material overheads

Material costs

450

Sales efforts

Key issues paper to realign MAN T&B agreed

• Strong focus on future technologies
• Repositioning of the production and development network
• Reduction of ~3,500 jobs across all areas in
Germany by the end of 2022
• BINZ takes over MAN Plauen with all employees
• Steyr site in Austria (~2,200 employees) in discussion
• In total, restructuring costs are currently expected in the high triple-digit millions Euro

Ensuring sustainable uplift in RoS and cash flows

CONSISTENT IMPLEMENTATION OF SITE RESTRUCTURING - PRODUCTION

Salzgitter

Lead location for global logistics activities Components-plant

• Non-driven axle
• Crankshaft

Nuremberg

Lead production plant for motors and e-drives

Centre of competence Development of alternative and conventional drives

Munich

Global Headquarter MAN Truck & Bus Lead production plant Truck

Global development centre

Steyr

in discusion

PU TruckPU BusPU ComponentsParts

Bánovce

Components

Ankara

Lead unit bus Bus development

GLOBAL EXPANSION

STATUS AND NEXT STEPS WITH NAVISTAR

Signing and announcement of merger agreement on November 7, 2020

Navistar shareholder approval received at Navistar

Annual Meeting on March 2, 2021

Regulatory approvals expected in H1 2021

Closing expected mid-2021

AFTER STRONG HEADWINDS IN 2020 TRATON IS READY FOR 2021

Proposed dividend of €0.25 per share1

Operating Return on

Sales at 0.4%Sales Revenue down to €22.6 billionAdjusted Operating

Result at €135 million

2020

For 2021 Operating Return on Sales of between 5.0 and 6.0% expectedKey Issues Paper on MAN Truck & Bus transformation

Closing on Navistar expected mid-2021

Budget Shift to e-mobility, strong focus on BEV

2021

1 topic for approval at the upcoming TRATON AGM

AGENDA

1. Challenging Environment 2020
2. Core KPIs Fiscal Year 2020
3. Road To The Future

Q&A

CONTACTS GROUP COMMUNICATIONS

TRATON SE

Dachauer Str. 641, 80995 Munichwww.traton.com

ANNUAL MEDIA CONFERENCE FOR FISCAL YEAR 2020

MATTHIAS GRÜNDLER, CEO

CHRISTIAN SCHULZ, CFO

MUNICH - MARCH 22, 2021

APPENDIX

SCANIA VEHICLES & SERVICES - CORE KPIS

Trucks and buses (units)

2020	2019 Change	2020	2019	Change
66,899	91,680 -27%	5,186	7,777	-33%

OF WHICH TRUCKS

OF WHICH BUSES

SCANIA VEHICLES & SERVICES - CORE KPIS