TRATON : 3M 2024 Interim Statement

Interim Statement as of March 31, 2024

3M 2024

AT A GLANCE

		Sales revenue rose
Incoming orders	Unit sales	by 5% to around	Adjusted operating	Increase in
down by	4%	€11.8	result €171 million	adjusted operating
3%	higher at around	return on sales to
vehicles	€billion1.1			9.4%
	lower at 81,148
		billion
Trucks and buses (units)					3M 2024	3M 2023	Change
Incoming orders					66,434			68,470	-3%
Unit sales					81,148			84,587	-4%
of which trucks					68,772			70,208	-2%
of which buses					5,032			7,618	-34%
of which MAN TGE vans					7,344			6,761	9%
TRATON GROUP
Sales revenue (€ million)					11,798			11,186	5%
Operating result (adjusted) (€ million)				1,106			935	171
Operating return on sales (adjusted) (in %)				9.4			8.4	1.0 pp
Earnings per share (€)					1.50			1.11	0.39
Active workforce 1					104,168			103,621	547
TRATON Operations
Sales revenue (€ million)					11,477			10,940	5%
Operating result (adjusted) (€ million)				1,188			987	201
Operating return on sales (adjusted) (in %)				10.4			9.0	1.3 pp
Primary R&D costs (€ million)				556			520	7%
Capex (€ million)					297			216	37%
Net cash flow (€ million)					438			737	-299
TRATON Financial Services
Sales revenue (€ million)					453			352	29%
Operating result (adjusted) (€ million)				63			82	-19
Operating return on sales (adjusted) (in %)				13.9			23.3	-9.3 pp
Return on equity (in %)					13.2			-3.9	17.2 pp

1 As of March 31, 2024, and December 31, 2023

CONTENTS

4

Material Events

5

Incoming Orders and Unit Sales by Country,

TRATON Operations

6

Condensed Income Statement of

the TRATON GROUP

8

Segments of the TRATON GROUP

10

Net Cash Flow

11

Net Liquidity/Net Financial Debt

13

Report on Expected Developments

14

Income Statement

15

Condensed Statement of Comprehensive Income

16

Balance Sheet

18

Statement of Cash Flows

20

Contingent Liabilities and Commitments

20

Segment Reporting

22

Financial Calendar

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	TRATON GROUP
3M 2024 INTERIM STATEMENT

1. Incoming Orders and Unit Sales by Country, TRATON Operations
2. Condensed Income Statement of the TRATON GROUP

COURSE OF BUSINESS

Material Events

In the first quarter of 2024, the TRATON GROUP generated sales revenue of €11.8 billion (3M 2023: €11.2 billion), 5% higher year-on-year despite a 4% ­decline in unit sales. Operating result (adjusted) was €1.1 billion (3M 2023: €0.9 billion), while operating return on sales (adjusted) increased by 1.0 percentage points, from 8.4% to 9.4%.

The Executive Board and the Supervisory Board of TRATON SE decided in ­February 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 will be merged into a cross-brand organization. This new structure will further drive forward the

development­of the TRATON Modular System with the aim of delivering ­sustainable, efficient, and connected transportation solutions to the market.

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

5	TRATON GROUP
3M 2024 INTERIM STATEMENT

1. Incoming Orders and Unit Sales by Country, TRATON Operations
2. Condensed Income Statement of the TRATON GROUP

Incoming Orders and Unit Sales by Country, TRATON Operations

									Incoming orders																		Unit sales
Units	3M 2024					3M 2023	Change							3M 2024								3M 2023	Change
Total	66,434	68,470	-3%	81,148	84,587	-4%
of which all-electric vehicles	736	446	65%	315	258	22%
BEV unit sales ratio (excluding MAN TGE vans, in %)	-					-	-	0.4	0.2	0.2 pp
Trucks	53,034	53,610	-1%	68,772	70,208	-2%
EU27+3	18,123	26,339	-31%	27,878	30,364	-8%
of which in Germany	5,091	6,603	-23%	6,624	8,849	-25%
North America	14,727	13,024	13%	19,246	19,842	-3%
of which in the USA/Canada	12,233	10,873	13%	15,945	17,032	-6%
of which in Mexico	2,494	2,151	16%	3,301	2,810	17%
South America	13,627	7,265	88%	14,488	12,247	18%
of which in Brazil	11,828	5,571	112%	12,387	9,804	26%
Other regions	6,557	6,982	-6%	7,160	7,755	-8%
Buses	8,151	7,771	5%	5,032	7,618	-34%
EU27+3	1,663	1,306	27%	1,427	1,120	27%
of which in Germany	322	245	31%	370	315	17%
North America	4,198	4,076	3%	986	3,733	-74%
of which in the USA/Canada	3,548	2,963	20%	151	2,972	-95%
of which in Mexico	650	1,113	-42%	835	761	10%
South America	1,637	1,878	-13%	1,980	2,197	-10%
of which in Brazil	1,310	1,513	-13%	1,602	1,950	-18%
Other regions	653	511	28%	639	568	13%
MAN TGE vans	5,249	7,089	-26%	7,344	6,761	9%
EU27+3	5,111	6,964	-27%	7,283	6,670	9%
of which in Germany	1,327	2,673	-50%	2,262	2,513	-10%

6	TRATON GROUP
3M 2024 INTERIM STATEMENT

1. Incoming Orders and Unit Sales by Country, TRATON Operations
2. Condensed Income Statement of the TRATON GROUP

Incoming orders were down 3% overall year-on-year in the reporting period. This was the result of different trends at product and regional level. For example, TRATON only recorded a 1% decline in incoming orders in the truck business. In this case, a sharp decline in order levels as demand in the EU27+3 region returned to normal was almost offset by very buoyant market demand from North and South America. A particular standout was Brazil, where in­ coming orders for trucks more than doubled compared with the previous year due to the new emissions regulation that had come into force at that time. In contrast to a sharp decline in incoming orders for the MAN TGE model, there was good demand for buses, particularly in the EU27+3 and USA/Canada regions.

Unit sales in the first three months were down 4% year-on-year. The 2% decline in the truck business is attributable to a market-driven decline in sales figures in the EU27+3 region, which were also impacted by a model year change at

MAN Truck & Bus in the first quarter of 2024. As expected, unit sales of trucks in North America were also down on the previous year, while significantly more trucks were sold in South America. The primary reason for the decline in unit sales in the bus business was the delayed ramp-up of the new school bus model at Navistar. Fewer buses were also sold in South America than in the previous year.

The book-to-bill ratio in the first quarter was 0.8 (3M 2023: 0.8), which resulted in the order backlog continuing to return to normal.

130 (3M 2023: 91) all-electric trucks, 158 (3M 2023: 76) all-electric buses, and

27 (3M 2023: 91) MAN eTGE models were sold in the reporting period. Addition-

ally, 35 (3M 2023: 47) hybrid trucks and 76 (3M 2023: 45) hybrid buses were sold.

Condensed Income Statement of the TRATON GROUP

				TRATON GROUP					TRATON Operations	TRATON Financial Services		Corporate Items
€ million	3M 2024	3M 2023					3M 2024					3M 2023	3M 2024			3M 2023	3M 2024		3M 2023
Sales revenue	11,798	11,186	11,477	10,940	453	352					-132		-107
Cost of sales	-9,226	-8,906					-9,007					-8,761	-311			-224	92	79
Gross profit	2,572	2,280	2,470	2,179	142	129					-40		-28
Distribution expenses	-929	-869					-818					-768	-49			-39	-62		-61
Administrative expenses	-453	-408					-398					-353	-11			-8	-44		-47
Other operating result	-133	-170					-115					-71	-18			-101	0	2
Operating result	1,057	834	1,139	987	63			-20	-145		-134
Operating result (adjusted)	1,106	935	1,188	987	63	82					-145		-134
Operating return on sales (adjusted) (in %)	9.4	8.4	10.4	9.0	13.9	23.3					-		-
Financial result	-13	-131					-131					-97	0	0					118		-34
Earnings before tax	1,044	703	1,008	890	63			-20	-27		-168
Income taxes	-293	-148					-301					-272	-13			-28	22	152
Earnings after tax	752	555	707	619	50			-48	-5		-16

7	TRATON GROUP
3M 2024 INTERIM STATEMENT

1. Incoming Orders and Unit Sales by Country, TRATON Operations
2. Condensed Income Statement of the TRATON GROUP

Operating result

The TRATON GROUP generated sales revenue of €11.8 billion (3M 2023: €11.2 billion) in the reporting period, up 5% on the previous year's level. This

increase­ is mainly attributable to a favorable product mix and better unit price realization in the TRATON Operations business area. The Vehicle Services ­business made a considerable contribution to business performance, accounting for 19% (3M 2023: 20%) of total sales revenue. Sales revenue in the TRATON Financial Services segment increased by 29% due to the further expansion of the portfolio, reaching €453 million (3M 2023: €352 million).

The TRATON GROUP's gross profit improved by 13% compared with the prior-­ year period in the first quarter of 2024. This increase is primarily due to con­ tinued good price management combined with an improved cost structure in the TRATON Operations business area. The cost structure at MAN Truck & Bus, in particular, was positively impacted compared with the prior-year quarter by the realignment program completed by the end of 2023. By contrast, lower ­capacity utilization impacted gross profit. Gross margin increased by 1.4 percentage points to 21.8% (3M 2023: 20.4%) in the TRATON GROUP and by 1.6 percentage points to 21.5% (3M 2023: 19.9%) in the TRATON Operations business area.

Distribution expenses in the TRATON GROUP were up €60 million and administrative expenses were up €45 million year-on-year. In both cases, the higher figure (by 7% and 11%, respectively) was due largely to inflation-driven cost increases. The ratio of distribution and administrative expenses to sales revenue therefore rose by 0.3 percentage points to 11.7% (3M 2023: 11.4%).

Other operating result increased by €37 million compared with the prior-year quarter. The improvement is primarily attributable to the discontinuation of expenses of €102 million in connection with the sale of Scania Finance Russia in the prior-year period. Offsetting factors in the first quarter of 2024 were, in particular, expenses attributable to civil lawsuits against Scania and MAN in connection with the EU truck cases in individual countries.

The TRATON GROUP's operating result rose by €223 million (27%) year-on-year as a result of the effects described above.

Adjustments to operating result

Adjustments (€ million)		3M 2024		3M 2023
Scania Vehicles & Services	28		-
MAN Truck & Bus	21		-
TRATON Operations	49		-
TRATON Financial Services		-	102
TRATON GROUP	49	102

In the current reporting period, the adjustments amounted to €49 million and were related to 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 assessment of the risks. In the prior-year period, the adjustments had amounted to €102 million in the TRATON Financial Services segment in ­connection with the sale of Scania Finance Russia. The TRATON GROUP's operating result (adjusted) therefore rose by €171 million year-on-year, equivalent to an increase of 18%.

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

1.0 percentage points to 9.4% (3M 2023: 8.4%). In the TRATON Operations

business­ area, operating return on sales (adjusted) was 10.4% (3M 2023: 9.0%), up 1.3 percentage points year-on-year.

Financial result

The TRATON GROUP's financial result improved by €118 million compared with the prior-year quarter. This increase was principally attributable to the higher share of earnings of the investment in Sinotruk (Hong Kong) Limited, Hong Kong, China (Sinotruk), which is accounted for using the equity method.

Taxes

Income taxes amounted to €-293 million (3M 2023: €-148 million) in the first

quarter of 2024. This corresponds to a tax rate of 28% (3M 2023: 21%). The higher tax rate compared with the previous year is due largely to the discontinuation of offsetting effects from the recognition of loss carryforwards from previous years.

8	TRATON GROUP
3M 2024 INTERIM STATEMENT

1. Incoming Orders and Unit Sales by Country, TRATON Operations
2. Condensed Income Statement of the TRATON GROUP

Segments of the TRATON GROUP					MAN Truck & Bus
Scania Vehicles & Services
															3M 2024						3M 2023	Change
									Incoming orders (units)	18,682	26,094	-28%
		3M 2024			3M 2023	Change
		Sales (units)	24,030	27,333	-12%
Incoming orders (units)		20,171			18,918	7%
		of which trucks	15,188	19,655	-23%
Sales (units)		26,496			22,626	17%
		of which buses	1,498	917	63%
of which trucks		25,388			21,611	17%
		of which MAN TGE vans	7,344	6,761	9%
of which buses		1,108			1,015	9%
		Book-to-bill ratio	0.78	0.95	-0.18
Book-to-bill ratio		0.76			0.84	-0.07
		Sales revenue (€ million)	3,516	3,404	3%
Sales revenue (€ million)		4,879			4,172	17%
		New Vehicles	2,157	2,031	6%
New Vehicles		3,378			2,631	28%
		Vehicle Services business 1	749	733	2%
Vehicle Services business 1		968			939	3%
		Others	609	640	-5%
Others		534			602	-11%
		Operating result (adjusted) (€ million)	278	197	82
Operating result (adjusted) (€ million)		700			554	146
		Operating return on sales (adjusted) (in %)	7.9	5.8	2.1 pp
Operating return on sales (adjusted) (in %)		14.3			13.3	1.1 pp
									1 Including genuine parts and workshop services

1 Including genuine parts and workshop services

Scania Vehicles & Services recorded a moderate increase in incoming orders in the first quarter of 2024. A decline in incoming orders in Europe was more than offset by very strong growth in Brazil. Unit sales rose substantially, driven by the high order backlog, more stable supply chains, and the increase in production volume.

Sales revenue also grew substantially year-on-year. This growth was mainly

attributable­to the increase in the New Vehicles business in the EU27+3 and South America regions. In addition to the volume-related increase in sales ­revenue, operating result (adjusted) was lifted by a positive product mix and lower product costs. The Vehicle Services business also made a positive contribution to earnings as a result of improved margins. Higher personnel expenses weighed on operating result (adjusted).

MAN Truck & Bus recorded a sharp 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 significant year-on-year decline in unit sales is attributable primarily to a model year change in the first quarter of 2024 and to catch-up effects in the comparative period.

Sales revenue was slightly higher than in the previous year, largely because of an improved product mix for trucks and MAN TGE vans. A positive operating performance in the bus business and in the Vehicle Services business offset the volume-related lower operating result (adjusted) in the truck business. In addition, the realignment program completed by the end of 2023 had a ­positive impact on the cost structure.

9	TRATON GROUP
3M 2024 INTERIM STATEMENT

1. Incoming Orders and Unit Sales by Country, TRATON Operations
2. Condensed Income Statement of the TRATON GROUP

Navistar Sales & Services								Volkswagen Truck & Bus
		3M 2024		3M 2023	Change				3M 2024		3M 2023	Change
Incoming orders (units)	17,512	15,913	10%	Incoming orders (units)	10,085	7,694	31%
Sales (units)	19,280	22,548	-14%	Sales (units)	11,539	12,148	-5%
of which trucks	18,674	19,246	-3%	of which trucks	9,707	9,764	-1%
of which buses	606	3,302	-82%	of which buses	1,832	2,384	-23%
Book-to-bill ratio	0.91	0.71	0.20	Book-to-bill ratio	0.87	0.63	0.24
Sales revenue (€ million)	2,430	2,738	-11%	Sales revenue (€ million)	773	709	9%
New Vehicles	1,696	1,943	-13%	New Vehicles	716	663	8%
Vehicle Services business 1	470	529	-11%	Vehicle Services business 1	44	37	17%
Others	264	266	-1%	Others	13	9	38%
Operating result (adjusted) (€ million)	122	172	-50	Operating result (adjusted) (€ million)	85	65	20
Operating return on sales (adjusted) (in %)	5.0	6.3	-1.3 pp	Operating return on sales (adjusted) (in %)	11.0	9.2	1.8 pp
1 Including genuine parts								1 Including genuine parts and workshop services

Navistar Sales & Services recorded a noticeable increase in incoming orders in the reporting period compared with the previous year. Incoming orders in the previous year were affected by restrictive order acceptance. Unit sales were down significantly year-on-year. This was primarily the result of the delayed ramp-up of unit sales of the new school bus model.

Sales revenue was also significantly lower year-on-year, primarily due to the decline in unit sales. In addition, sales revenue in the Vehicle Services business was impacted by a decline in transportation activity in the USA. In addition to the decline in sales revenue, operating result (adjusted) was negatively ­impacted by ongoing supply shortages. By contrast, improved unit price realization positively impacted the result.

Volkswagen Truck & Bus recorded a moderate decline in unit sales in the reporting period. This was the result of a sharp decline in the unit sales of buses.

Sales revenue was noticeably higher year-on-year. This increase was achieved in spite of a lower volume of unit sales and resulted primarily from improved product positioning and unit price realization in Brazil, which also positively impacted operating result (adjusted). Operating return on sales (adjusted) rose by 1.8 percentage points.

10 TRATON GROUP

3M 2024 INTERIM STATEMENT

1. Incoming Orders and Unit Sales by Country, TRATON Operations
2. Condensed Income Statement of the TRATON GROUP

TRATON Financial Services

		3M 2024		3M 2023	Change
Sales revenue (€ million)	453	352	29%
Operating result (adjusted) (€ million)	63	82	-19
Operating return on sales (adjusted) (in %)	13.9	23.3	-9.3 pp
Earnings before tax (€ million)	63		-20	83
Equity (€ million) 1	1,947	1,835	113
Return on equity (in %)	13.2		-3.9	17.2 pp

1 As of March 31

TRATON Financial Services is continuing to prepare to take over the activities of MAN Financial Services and Volkswagen Truck & Bus Financial Services. In addition, it drove forward the relaunch of the captive financial services provider Navistar Financial Services in the first quarter of 2024. Operating result (adjusted) of €63 million was €19 million lower than in the prior-year period. Higher costs due to the integration as well as higher refinancing and risk costs were not offset by a higher portfolio volume.

Earnings before tax were significantly higher year-on-year. Earnings before tax in the first quarter of 2023 had been impacted by negative accumulated other comprehensive income of €102 million from currency translation effects ­attributable to Scania Finance Russia that were reclassified to the income statement at the time of disposal. As a result, return on equity rose very sharply year-on-year to 13.2%.

Net Cash Flow

CONDENSED STATEMENT OF CASH FLOWS OF THE TRATON GROUP

		TRATON GROUP					TRATON Operations	TRATON Financial Services		Corporate Items
€ million	3M 2024	3M 2023					3M 2024			3M 2023	3M 2024		3M 2023	3M 2024			3M 2023
Gross cash flow	1,426	1,250	1,423	1,300	123	150		-121			-200
Change in working capital	-1,214	-1,049					-561			-589	-833		-541	179	81
Net cash provided by/used in operating activities	211	201	862	711	-709		-391	59			-120
Net cash provided by/used in investing activities
attributable to operating activities	-451	-280					-424	25	-26		-305	0			-1
Net cash flow	-240	-80	438	737	-736		-695	58			-121