Traton SE · XETR:8TRA
Traton — Investor Presentation (September 2023)
145 slides from Traton's investor presentation, September 2023
Slide 1: TRATON SE Analyst & Investor Factbook
TRATON SE Analyst & Investor Factbook Group Investor Relations – September 2023
Slide 2: Disclaimer
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
Slide 3: Agenda
Agenda 1. TRATON at a Glance 2. Truck Industry 3. Strategy: TRATON Way Forward 4. Sustainability 5. Shares 6. Debt & Rating 7. Financials 8. IR Team 9. Useful Links September 2023 Analyst & Investor Factbook | Investor Relations 3 .
Slide 4: Agenda
Agenda 1. TRATON at a Glance 2. Truck Industry 3. Strategy: TRATON Way Forward 4. Sustainability 5. Shares 6. Debt & Rating 7. Financials 8. IR Team 9. Useful Links September 2023 Analyst & Investor Factbook | Investor Relations 4 .
Slide 5: Overview TRATON GROUP
Overview TRATON GROUP Four strong global brands under one roof 100,356 Employees worldwide1 “Transforming Transportation Together. €40.3 bn For a sustainable world.” Sustainability as a core Sales revenue principle and responsible behavior as a top priority in the Group’s strategy 28 production and
Slide 6: Major milestones for TRATON GROUP
Major milestones for TRATON GROUP 2015 2019 2021 2021 2022 Establishment of Successful IPO Acquisition of Introduction Charging JV with VW Truck & Bus of TRATON SE Navistar of new Daimler Truck Group powertrain & Volvo Group 2018 2021 2021+ 2023 Re-branding/ Squeeze-Out MAN SE, New strategy, the Go-
Slide 7: Key figures FY 2022
Key figures FY 2022 Order intake 335k (-25k) Unit sales 305k (+34k) Sales revenue €40.3 bn (+€10 bn) Vehicle Services €8.5 bn (+€2.1 bn) Adj. operating result €2.1 bn (+€0.5 bn) Adj. RoS 5.1% (-0.1 pp) 7
Slide 8: Four strong global brands under one roof
Four strong global brands under one roof 8 .
Slide 9: The brands of TRATON GROUP are clearly positioned
The brands of TRATON GROUP are clearly positioned Driving the shift Simplifying business Trusted partner Value for money Scania is a premium MAN’s objective is to simplify Navistar produces trucks Volkswagen Truck & Bus innovation leader for customer business as a under the International brand (VWTB
Slide 10: Covering all segments of the transportation industry from light to heavy vehicles
Covering all segments of the transportation industry from light to heavy vehicles Note: Examples, the illustration does not provide a complete overview. September 2023 Analyst & Investor Factbook | Investor Relations 10 .
Slide 11: Strong group of brands across key CV markets
Strong group of brands across key CV markets Home base Europe and Europe North America Brazil Brazil Unit sales (k) FY 2022 Trucks 254 80 58 69 47 Buses 30 5 5 13 7 Vans 22 - 22 - - Total 305 85 85 82 54 Trucks 83% Buses 10% Vans 7% September 2023 Analyst & Investor Factbook | Investor Relations 11
Slide 12: Leading truck brands and #1 market positions in Europe and South America
Leading truck brands and #1 market positions in Europe and South America 24% 13% 27% Market share in Europe1 Market leader Market share Market share in Germany in North America2 Export business Export 30% business Market share 40% in South America Export Market leader business Market share in Brazil
Slide 13: Diversified by geography and by brand
Diversified by geography and by brand Unit sales FY 2022 (% of total) Sales revenue FY 2022 (% of total) Other Germany Financial Services regions Volkswagen 10% 3% South 10% Truck & Bus Navistar 7% America Sales & (excl. Brazil) Services 5% 25% EU27 +3 MAN Brazil 20% 305 k (excl. Germany) 27% €40.3
Slide 14: Production & assembly sites around the globe
Production & assembly sites around the globe 13 8 5 2 September 2023 Analyst & Investor Factbook | Investor Relations 14 .
Slide 15: Key figures development 2018 to 2022
Key figures development 2018 to 20221 Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) 360 335 1.33 305 272 1.14 1.10 244 1.05 227 233 242 0.94 216 190 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Sales revenue (€ bn) Adjusted operating resul
Slide 16: TRATON GROUP – Outlook
TRATON GROUP – Outlook Updated 05-02-23 TRATON GROUP 2022 2023e Unit sales (units) 305,485 +5-15% Sales revenue (€ million) 40,335 +5-15% Adjusted RoS (in %) 5.1 7.0-8.0 TRATON Operations 2022 2023e Sales revenue (€ million) 39,554 +5-15% Adjusted RoS (in %) 5.7 7.5-8.5 Net cash flow (€ million) -62
Slide 17: TRATON Executive Board
TRATON Executive Board TRATON SE EXECUTIVE BOARD MEMBERS Christian Levin Dr. Michael Jackstein Catharina Modahl Nilsson CEO TRATON SE and Scania CFO and CHRO TRATON SE Group Product Management Alexander Vlaskamp Mathias Carlbaum Antonio Roberto Cortes CEO MAN CEO and President Navistar CEO Volkswage
Slide 18: Corporate Governance – Two-tier board structure
Corporate Governance ̶ Two-tier board structure with independence secured via supervisory board composition Corporate Bodies of TRATON SE Annual General Meeting Shareholders exercise their rights in relation to the corporation‘s affairs. These include the shareholders exercising their voting rights,
Slide 19: Why TRATON is an attractive investment
Why TRATON is an attractive investment Strong competitive position with a diversified regional and brand portfolio in an attractive global growth market and profit pool State-of-the-art products and services strongly geared towards future trends in order to capture the opportunities in our industry
Slide 20: Agenda
Agenda 1. TRATON at a Glance 2. Truck Industry 3. Strategy: TRATON Way Forward 4. Sustainability 5. Shares 6. Debt & Rating 7. Financials 8. IR Team 9. Useful Links September 2023 Analyst & Investor Factbook | Investor Relations 20 .
Slide 21: Trucks are capital goods – purchase decisions based on Total Cost of Ownership
Trucks are capital goods – purchase decisions are based on rational factors: Total Cost of Ownership (TCO) Trucks Passenger Cars Sector Capital goods Consumer goods Customer focus Total cost of ownership Costs | Emotion | Prestige Customer expectations Annual mileage ~130,000 km ~10x ~14,000 km1 Fue
Slide 22: Global view on trucks
Global view on trucks North America Conventional trucks with engine in front - driven by high comfort and China safety requirements Fast-follower driven by regulations, infrastructure and professionalization Brazil Europe Advanced products built High-tech products in by European OEMs – in cab-over s
Slide 23: Truck industry is highly consolidated in key markets
Truck industry is highly consolidated in key markets High barriers to entry Limited number of global players Trucks are highly customized products given Heavy-duty trucks (>15t) market share 2020 Customization & heterogeneous customer requirements. held by top 3 in each region regulation Products ne
Slide 24: Purchasing decisions are driven by Total Cost of Ownership
Purchasing decisions are driven by Total Cost of Ownership (TCO) - Running costs dominate Cost distribution of a typical long-haul HDT1 Selected key elements Admin and Fuel (energy) services (Overhead) Annual mileage, driving behavior, Vehicle powertrain efficiency Driver Driver salary, related cost
Slide 25: Road transport accounts for more than three quarters of tonne-kilometres in the EU
Road transport accounts for more than three quarters of all tonne-kilometres performed in the EU Modal split of inland freight transport, EU (2020, % based on tonne-kilometres) Inland freight transport performed by road Inland waterways increased from 74.6% in 2010 to 77.4% by 5.8% 2020. Rail 16.8%
Slide 26: Distribution of short- and long-haul transport
Distribution of short- and long-haul transport – Strongest growth in mid and long distances Road freight transport by distance class, EU (2021, % based on million tkm) Distribution of short- and long-haul transport: Less than 1,000 km or more Short-haul (<300 km) 40% 150 km Long-haul (>300 km) 60% 1
Slide 27: Drivers and challenges in the industry
Drivers and challenges in the industry Examples Autonomous TCO optimization Electrification Euro VI & VII Digitalization Decarbonization Uptime General safety Geopolitical risks Direct vision regulation Customer Competition Regulatory needs and markets environment Driver shortage Inflationary Rising
Slide 28: Outlook for TRATON's core markets in general positive
Outlook for TRATON’s core markets in general positive, despite significant disruptions Truck unit sales, (> 6t)1, in k units Global trends driving the transportation industry 600 545 • Global GDP is expected to continue 521 to grow with transportation volume 500 476 growing around twice the pace. 44
Slide 29: Strong markets with transition to new technologies and solution offerings
Strong markets with transition to new technologies and solution offerings as basis for future growth Electrification Services maturity Europe • Service/aftermarket expected to increase • Innovation front-runner • Growth of solution offerings South • Innovation follower • Market still maturing Americ
Slide 30: Key truck markets continue to be supportive
Key truck markets continue to be supportive, while economic uncertainties remain 600 k units, > 6t - Above-average fleet age 336 Expectation 400 & high pent-up demand EU27+31 2023e - Improving supply chains 200 +5% – +20% - Robust logistics demand 0 and freight rates 09 11 13 15 17 19 21 23 600 k un
Slide 31: Agenda
Agenda 1. TRATON at a Glance 2. Truck Industry 3. Strategy: TRATON Way Forward 4. Sustainability 5. Shares 6. Debt & Rating 7. Financials 8. IR Team 9. Useful Links September 2023 Analyst & Investor Factbook | Investor Relations 31 .
Slide 32: Key strategic questions for TRATON Way Forward have changed
Key strategic questions for “TRATON Way Forward” have changed TRATON Way Forward: Strategic questions (2022-30+) Global Champion Strategy: Strategic questions (2015-21) How to ensure sustainable business and uphold needs of environment, 1 How to develop a group/own entity for trucks & buses? society
Slide 33: TRATON Way Forward
TRATON Way Forward Full focus and commitment on execution along strategic framework Decarbonization & Circularity Responsible People & Diversity Company Governance & Ethics Performance-driven Strategy Value Navistar as part of TRATON family Execution & Creation TRATON goes China Governance Business
Slide 34: Responsible Company
Responsible Company Make responsible behavior a top priority in everything we do Decarbonization & Circularity Strategy Execution & Governance People & Diversity Governance & Ethics TRATON Responsible Accelerated! Company Value Creation September 2023 Analyst & Investor Factbook | Investor Rel
Slide 35: We are fully committed to the Paris Agreement
Responsible company We are fully committed to the Paris Agreement Truck and Bus Scope -50% -70% -20% -28/-19% 1+2 t CO2e t CO2e (2030 vs. 2019)1 Energy intensity improvement Electricity/Gas usage (2025 vs. 2015)1 (2030 vs. 2018)3 (2022 vs. 2018)2 Well to wheel Well to wheel Tank to wheel Scope 35 -2
Slide 36: Our CO2 impact stems almost exclusively from use phase
Responsible company Our CO2 impact stems almost exclusively from our products’ use phase – but will change in the future Combustion engine BEV BEV (electricity mix)1 (green electricity)2 Use Production Maintenance Recovery 1 Based on EU 2016 electricity mix 2 Based on prognosed EU 2030 electricity m
Slide 37: Comparison of system efficiency between BEVs and FCEVs
Responsible company A comparison of system efficiency between BEVs and FCEVs PRODUCTION REFUELING OPERATION BEV Electrical 75% energy distribution & mix of slow & DC-AC, engine & inversion AC/DC Fast charging transmisson of energy of energy reaches reaches the wheels the wheels 100% – 10% – 5% – 10%
Slide 38: The cost distribution will change significantly with fully electric trucks
Responsible company The cost distribution will change significantly with fully electric trucks Cost distribution electric long-haul Cost distribution of a typical long-haul heavy-duty truck - today heavy-duty truck ~2025-30 Savings potential Energy incl. infrastructure Overhead Electric trucks R&M E
Slide 39: Battery electric vehicles become the majority technology
Responsible company We see battery electric vehicles become the majority technology for trucks and buses % ICE Additional alternative technologies competing with diesel BEV 2022 2030 2040 September 2023 Analyst & Investor Factbook | Investor Relations 39
Slide 40: We boost our e-mobility investments
Responsible company We boost our e-mobility investments Investment increase 2022 Investment increase 2021 €1.6 bn €2.6 bn €1.0 bn 2020 - 2025 2021 - 20261 1 Incl. Navistar September 2023 Analyst & Investor Factbook | Investor Relations 40
Slide 41: TRATON GROUP – Electric vehicles
Responsible company TRATON GROUP – Electric vehicles Incoming orders of Unit sales of All TRATON brands with BEV products fully electric vehicles fully electric vehicles across major applications/weight classes (units) (units) 744 709 586 608 526 487 446 397 387 410 417 424 412 396 Navistar electric
Slide 42: High-performance charging network for Europe
Responsible company High-performance charging network for Europe >1,700 public charging points €500 mn investment (jointly) Milence Joint Venture operational since July Network will be open and accessible to 2022 with Daimler Truck and the Volvo Group. all brands. Organization ramped up, exper
Slide 43: Electrification will open new profit pools in repair & maintenance
Responsible company Electrification will impact how we do repair & maintenance but also will also open new profit pools Win customers from 3rd party Shift business model Charging services providers for complex from product to service (e.g. eMSP, charging) repair/maintenance services Price ba
Slide 44: Continuing path to decarbonization in 2023
Responsible company TRATON to continue path to decarbonization in 2023 with tangible steps in products, supplies and infrastructure First Scania 40-ton regional- haulage eTruck deliveries to customers. Scania with start of production at battery assembly plant in Södertälje/Sweden. Construction of la
Slide 45: Value Creation
Value Creation Focus on sustainable value creation for our stakeholders Performance-driven Strategy Execution & Governance Navistar as part of TRATON family TRATON goes China TRATON Responsible Accelerated! Company Value Creation September 2023 Analyst & Investor Factbook | Investor Relations
Slide 46: Creating value for our stakeholders
Value creation Creating value for our stakeholders 1 2 3 Performance driven Successful integration China important of Navistar growth market Brand performance programs, brand Integration of Navistar and realization China as important future profit pool cooperation and performance culture of its full
Slide 47: Ambitious targets for each of our brands
Value creation Ambitious targets for each of our brands Strategic RoS target 12% 8% 9% 8% Fully committed Realignment program Deliver profitable Volume growth and to sustainability & topline performance strong products improvement More high-margin Benefit from Group Higher margin by ne
Slide 48: MAN re-alignment on track
Value creation MAN re-alignment on track with significant benefits from structural measures materializing throughout 2023 Full P&L benefit from sale of Steyr/Austria plant from June. Shift of production capacity to Krakow to be completed in Q4: 2/3 of MAN truck assembly in best-cost countries. Perso
Slide 49: Successful integration of Navistar
Value creation Successful integration of Navistar Accomplished since the merger … … and there is much more to come Strong progress in integrating Navistar into Unify our values and culture with TRATON TRATON’s operations to guide us every day Broadened management team with strong Create solutions th
Slide 50: China is one of the most important profit pools
Value creation China is one of the most important profit pools Ca. 1 million trucks typically sold every year World’s largest single market for commercial vehicles Segment shift towards more sophisticated products First western truck manufacturer with license for fully independent production in Chin
Slide 51: TRATON Accelerated!
TRATON Accelerated! Shape our role in the future logistics ecosystem Business Model Expansion Strategy Execution & Governance Partnership Culture Embrace Digital TRATON Responsible Accelerated! Company Value Creation September 2023 Analyst & Investor Factbook | Investor Relations 51
Slide 52: ACE platform elements critical for all ACE-related business models
TRATON Accelerated! ACE1 platform elements critical for all ACE-related business models Autonomous vehicle Self-driving system Control Tower + service (SDS) (CT) ACE vehicle Virtual driver ensures Ensures basic dispatching control of vehicle of vehicles Maintenance & repair capabilities Au
Slide 53: We build a solution ecosystem around our customer
TRATON Accelerated! We build a solution ecosystem around our customer Administration Transport planning Charging Reports & analytics facilities Transport Real-time tracking management Route & flow optimization En-route Vehicle data & telematics Cost optimization Fleet Mobility Added services Vehicle
Slide 54: TRATON FS – Global multi-brand captive finance business
TRATON Accelerated! TRATON FS – Global multi-brand captive finance business leveraging existing structures Brand specific front office Common back office Increased funding capabilities September 2023 Analyst & Investor Factbook | Investor Relations 54
Slide 55: TRATON Financial Services to go live in 2023
TRATON Accelerated! TRATON Financial Services to go live in 2023 First milestones achieved with go-live of TRATON Financial Prior setup Services and transfer of Scania TRATON SE FS effective April 1, 2023. MAN T&B Navistar VWTB Scania Successful global Scania FS operation building the FS via partner
Slide 56: TRATON Way Forward - strong focus on execution
TRATON Way Forward - strong focus on execution Strategy Execution & Governance Responsible TRATON TRATON Company Accelerated! Accelerated! Value Creation September 2023 Analyst & Investor Factbook | Investor Relations 56
Slide 57: Build-up of a TRATON Modular System
Strategy Execution & Governance Build-up of a TRATON Modular System based on Scania principles Scania Bygglåda TRATON Modular System TRATON Modular System We create standardized Group interfaces 2x Within Group: Same need – identical solution Enable profitable mass customization of broad variant off
Slide 58: Modularization is key on our way to stronger profitability
Strategy Execution & Governance Modularization is key on our way to stronger profitanbility September 2023 Analyst & Investor Factbook | Investor Relations 58 .
Slide 59: Common base engine entering markets
Strategy Execution & Governance Common base engine (CBE) entering markets with strong benefits for customers and TRATON GROUP brands No.1 The world’s most sustainable powertrain with a 13L common base engine (CBE) 2022 2023 2024 … 2028 8% long-haulage Up to 15% gain 80% fuel savings1 in fuel efficie
Slide 60: Key steps taken in 2022 in TRATON Modular System implementation
Strategy Execution & Governance Key steps taken in 2022 in Group-wide implementation of the TRATON Modular System Highly competitive Scania Super launched based on Common Base Engine (CBE). Production ramp-up expected to accelerate throughout 2023. Key Group-wide development and major step to go com
Slide 61: Roll-out of TRATON Modular System with focus on Navistar
Strategy Execution & Governance Roll-out of TRATON Modular System continues with particular focus on Navistar First deliveries of new International S13 Integrated Powertrain in H2 2023. New powertrain, based on CBE, combined with updated aerodynamics package. Offering up to 15% improved fuel efficie
Slide 62: Implementing new steering philosophy
Strategy Execution & Governance Implementing new steering philosophy to support roll-out of TRATON Modular System Establishment of Truck Board reflecting Group responsibilities for Research & Development, Procurement, Production & Logistics. R&D New steering structure to strengthen collaboration, Pr
Slide 63: Shared values across the TRATON GROUP
Strategy Execution & Governance Shared values across the TRATON GROUP supporting collaboration and execution One shared purpose: Transforming Transportation CUSTOMER FIRST Together. For a sustainable world. CORE VALUES ELIMINATION Updated five shared values OF WASTE RESPECT help us to create the des
Slide 64: One strong Group delivering
Strategy Execution & Governance More performance steps One Faster time to market, and more customer value one integration, then strong Group “plug & play” for brands to all brands delivering outstanding customer value Lower product/component/ system cost as well as Afford necessary integration cost
Slide 65: Scania strategy
Scania strategy .
Slide 66: Driving the shift towards a sustainable transport system
Driving the shift towards a sustainable transport system Our business model, the modular 1 system and the Scania way together with our local presence provide a world-class foundation to build on 12% 2 We will drive the shift and secure future profitability leadership Strategic RoS target 3 We will e
Slide 67: We have a strong & unique foundation
We have a strong & unique foundation Our Our Our business model modular system company culture By making our customers The key to delivering The value-based corporate profitable, we become tailored customer culture that underpins profitable solutions profitably everything that we do September 2023 A
Slide 68: New Super-based powertrain
New Super-based powertrain Unprecedented 8% fuel savings Ready for tomorrow’s emissions standards Equipped for renewable fuels 8% September 2023 Analyst & Investor Factbook | Investor Relations 68 .
Slide 69: The strength of global footprint in industrial and commercial system
The strength of global footprint in both the industrial and commercial system • Same product • Accelerate market position by global • Same working capacity standards - Reduce lead times • Same quality to growth markets Luleå Luleå in Asia 1 Södertälje Lahti mn Oskarsha Oskarshamn St. St. Petersburg
Slide 70: Digitalization, data and AI in service offering
Digitalization, data and AI have an important role as we continue to develop our service offering Data driven Fuel Reliable Vehicle performance efficiency service Connectivity Artificial intelligence Customer experience driven AI supported AI supported uptime development of our service portfolio sal
Slide 71: Scania's shift to electrification
Scania's shift to electrification – accelerated by our modular system Electrified drivetrain 40T 4 h 280 km/h 40T 4.5 h 560 km/h 2020 ~130-250 km 60T 3 h 210 km/h 60T 4 h 420 km/h BEV 2030 September 2023 Analyst & Investor Factbook | Investor Relations 71 .
Slide 72: Shift to electric vehicles drives need for solution sales
The shift to electric vehicles drives an increased need for solution sales Range / flexibility Revenues & Laws & incentives regulations Transport Driving & of goods Charging & vehicle energy supply operation Complete Financing vehicle R&M solution September 2023 Analyst & Investor Factbook | Investo
Slide 73: Example of fully-electric product: BEV regional
Example of fully-electric product: BEV regional 624 kWh of batteries installed 375 kW charging capability 350 km range with one charge1 1 4x2 tractor with an Ø speed of 80 km/h | Ranges vary with weight, configuration and topography. September 2023 Analyst & Investor Factbook | Investor Relations 73
Slide 74: MAN strategy
MAN strategy .
Slide 75: MAN Truck & Bus: strong focus on execution
MAN Truck & Bus: strong focus on execution Execution of realignment measures 1 to improve sustainable earnings power Product roadmap with consistent 8% 2 leveraging of TRATON Modular System defined Strategic RoS target 3 Lifting growth potential in Vehicle Services business September 2023 Analyst &
Slide 76: Re-alignment program well on track
Re-alignment program well on track Ambition1 (€ mn) Dimensions1 (€ mn) 7% 450 1,700 1,700 3.3% 700 550 2019 Counter Improve- Program Structural Material Volume / Improve- actual effects e.g. ment target measures Price ment Return on raw material, (gross) Return on (gross) freight, energy, sales infl
Slide 77: Significant impact of realignment measures from 2023
Significant impact of realignment measures to be effective from 2023 onwards Dimensions1 (€ mn) Achievements1 until today 550 Structural Production & Engineering footprint MAN structurally drastically changed measures Headcount cost reduction and head count reduction according plan 700 Cross-f
Slide 78: Significant staff cost reductions will be reached
Significant staff cost reductions will be reached HCC 48% Structural measures Global staff costs1 (in €) Staff program deliverables -17% Structural shift from high-cost to best-cost countries Higher level of flexibility on staff Improved direct vs. indirect staff ratio Full earnings impact f
Slide 79: Improved competitiveness through change in truck production footprint
Significantly improved competitiveness through change in global footprint of truck production Structural measures Strategic building blocks Core KPIs Production Reduction of network 3,800 3,000 complexity from 3 truck Indirect plants to 2 truck plants Optimized personnel Efficient value creation
Slide 80: Clear roadmap towards zero-emission transportation
Clear roadmap towards zero-emission transportation 2024/25 Common modular system Truck 65% 52% (Value share 90% of common parts1) TG (BEV) TG (ICE) Electric truck Truck update with Common modular system to market new powertrain New cabin & frame 2023 2025/26 Bus 40% 65% (Value share 90% of common pa
Slide 81: MAN eTRUCK to be launched in 2024
MAN eTRUCK to be launched in 2024 500 kWh of batteries installed 375 kW charging capability 400 km range with one charge1 1 Ranges vary with weight, configuration and topography. September 2023 Analyst & Investor Factbook | Investor Relations 81 .
Slide 82: Vehicle Services business as the main lever of growth
Vehicle Services business as the main lever of growth Vehicle Services business sales revenue 1. Vehicle Services business (CAGR p.a.) Increase contract portfolio +6% Increase uptime +4% Sales excellence & digital sales Shift to e-mobility & autonomous driving 2019-2021 2022E+ 2. Financial S
Slide 83: Navistar strategy
Navistar strategy .
Slide 84: Navistar is accelerating its impact
Navistar is accelerating its impact 1 Recover market share through offering new technologies, services and solutions 9% Strategic 2 Create greater value for our customers by leveraging TRATON RoS GROUP Modular System target 3 Optimize our assets with a benchmark cost structure and investment efficie
Slide 85: Building blocks to deliver stronger profitability
Building blocks to deliver stronger profitability New integrated powertrain and electric offerings to 1 grow customer satisfaction and profitability through value- based pricing 9% Dealer performance improvement through ownership 2 rationalization and improved effectiveness New service and solutions
Slide 86: Modular integrated powertrain to drive improved profitability
1 Modular integrated powertrain to drive improved Class 8 class 8 profitability Navistar’s 13L/15L engine split Value proposition Service business 15L Day 1 sale Heavy truck engine proportion 15L Profit potential 5x service potential Industry split 40% margin increase 2x 13L at least 13L Today Ambit
Slide 87: Substantial opportunity to lead electric transition
1 Substantial opportunity to lead electric transition Class 6/7 & Bus Bus market share Electrification IC Bus® brand is #1 in School Bus Medium Duty the school bus industry by 2032… Average market size: 32k Ideal markets More than More than 70% 90% electric electric Class 6/7 (medium duty) market sh
Slide 88: Drive greater dealer performance
2 Drive greater dealer performance Rationalizing dealer network Improving the performance Increasing customer base 50% increase Dealer ownership groups Customer count 133 2018 2021 2024 Today Ambition September 2023 Analyst & Investor Factbook | Investor Relations 88 .
Slide 89: Expand service and solution offerings
3 Expand service and solution offerings Expanding our solution offerings Strong revenue and margin growth Parts and hardware Service and solutions Doubling revenues & increase margin by Revenue potential (per vehicle %) Aftersales and solutions revenue 500 bps Un-tapped Bundled potential solution of
Slide 90: Optimize cost efficiency and group technology
4 Optimize cost efficiency and group technology Modularization Production footprint optimization Reducing complexity through collaboration Driving conversion cost improvement Shared R&D Global purchasing scale Integrating Group technologies Transitioning effectively component spend September 2023 An
Slide 91: Expand financial services
5 Expand financial services Captive finance potential Adding value for the customer Expand into new revenue streams to 3 support the transition to new technologies and business models Share of vehicles financed 3x Offer tailor-made and bundled growth 2 financing solutions potential Exit outsourced a
Slide 92: Resulting in market share recovery
6 Resulting in market share recovery Class 6-8 market share Factors driving market share growth Introduction of world class group driveline Ambition: To grow at least 1% point of share per year Electrification Market share potential #1 dealer network in North America Expanded service offerings 14% t
Slide 93: VWTB strategy
VWTB strategy .
Slide 94: VWTB: Less you don't want, more you don't need
VWTB: Less you don’t want, more you don’t need 1 VWTB has returned to historical profitability and return on investment levels Strong product and service line up to enable 2 VWTB benefiting from market recovery, despite short term volatility in Brazil due to 8% emission regulation changes 3 VWTB has
Slide 95: Ready to grow
1 Ready to grow VWTB renewed full product line up VWTB current main markets potential Zero emission Light Mid South America actual truck market development (Truck >6 t registrations in 1.000 units) 300 Brazilian financial Potential crisis growth 250 -60% 200 183 e-Delivery Delivery Constellation Hea
Slide 96: Designed for volatility
2 Designed for volatility State-of-the-art Modular Consortium Production System 100% operated by suppliers - “partners” - with low direct labor costs Innovative, lean, agile & flexible plant Low break-even operation with the right plant capacity: 100k + units September 2023 Analyst & Investor
Slide 97: Global expansion readiness
3 Global expansion readiness Current export markets 30 countries ≅ 9k VWTB units Mid-term 30+ target countries ≅ 15k units Long-term 15+ additional target countries Current export markets Mid-term target markets Long-term target markets (9k units in 2021) ≅ 25k to 40k units Benefit from the strong
Slide 98: Future ready
4 Future ready New profit pools will double sales revenue from Vehicle Services business by 2025 e-Consortium Digital-Consortium Offer of complete Digital-Consortium Truck Bus e-line up and services Truck to foster the Smart for the e-mobility Truck ecosystem Bus ecosystem through leveraging from th
Slide 99: Future ready
4 Future ready CO2 Targets Commitment by the company to take necessary actions, including the further push on electrification, to comply with Responsible the UN Global Compact. execution Diversity and inclusion Strengthen measures to embrace diversity and increase the number of employees with differ
Slide 100: Focus on efficiency
5 Focus on efficiency Leverage TRATON Modular System Outstanding execution Group components Meteor Further cost efficiency associated with Excellence and Costfit programs Leverage synergies from TRATON Modular System and low-cost local development Outstanding execution due to experienced team
Slide 101: Group financial strategy
Group financial strategy .
Slide 102: We have defined clear set of financial ambitions
We have defined clear set of financial ambitions Safeguard Focus on investments in Reduce sustainable common debt levels profitability components, and strengthen and resilience new business capital of results models and new structure technologies 102 .
Slide 103: Stringent execution along building blocks towards RoS target
Stringent execution along clearly defined building blocks towards RoS target Volume 9% increase MAN T&B 5.1% realignment Improved Input cost price & mix inflation Efficiency gains R&D expenses across Group in future trends 2022 TRATON GROUP TARGET 2024 September 2023 Analyst & Investor Factbook | In
Slide 104: Building blocks driving margin upside and earnings resilience
Building blocks driving margin upside and earnings resilience Volume, mix & pricing MAN T&B realignment program Highly competitive products & services Improved fixed cost structure and leading to volume increases and better increased productivity thanks to stringent price positioning & mix across th
Slide 105: TRATON's capital framework
TRATON’s capital framework – Focus on optimizing pillars to deleverage Operating funding Effective use Structural sources of funds measures Improving Targeted, Strengthening cash conversion earnings future-oriented Strong capital momentum R&D and Capex commitment Improved structure to further deleve
Slide 106: Full focus on enhancing TRATON's financial performance and resilience
Full focus on enhancing TRATON’s financial performance and resilience Executing towards Improving resilience ambitious RoS target and cost efficiency Strategy Execution & Governance Strong financial policy Remuneration system and capital allocation aligned to strategic framework targets TRATON Respo
Slide 107: Agenda
Agenda 1. TRATON at a Glance 2. Truck Industry 3. Strategy: TRATON Way Forward 4. Sustainability 5. Shares 6. Debt & Rating 7. Financials 8. IR Team 9. Useful Links September 2023 Analyst & Investor Factbook | Investor Relations 107 .
Slide 108: CEO quote on CO2-neutral future
“We want a CO2-neutral future, and to achieve this we are doing much more than just the minimum required of us. Our brands will be drivers of change as we move toward zero-emission transportation solutions.” CHRISTIAN LEVIN CEO, TRATON SE September 2023 Analyst & Investor Factbook | Investor Relatio
Slide 109: Our goal: being a Responsible Company
Our goal: being a Responsible Company by making substantial transformative efforts toward achieving the SDGs in three areas Decarbonization & Circularity People & Diversity Governance & Ethics Creating solutions that minimize Capturing the diversity of skills, know- Enabling transparent, risk-orient
Slide 110: Decarbonization & Circularity
Decarbonization & Circularity Our Goal Moving toward an operating model and product design that sustainably minimize greenhouse gas (GHG) emissions and optimize resource consumption in the value chain. For TRATON, this means focusing on Zero-emission vehicles especially via electrification Energy ef
Slide 111: People & Diversity
People & Diversity Our Goal Capturing the diversity of skills, know-how, and perspectives of employees or partners & safeguarding the just and equal treatment of any individuals involved in our value chain. Increasing employer attractiveness and innovative strength. For TRATON, this means focusing o
Slide 112: Governance & Ethics
Governance & Ethics Our Goal Enabling transparent, risk-oriented, and fair decision-making that is consistent with the Company’s rights and obligations and generates long-term value for TRATON and its stakeholders. This includes looking beyond our own Company and putting social responsibility into p
Slide 113: Ratings
Ratings In February 2023, the ESG-agency ISS ESG rewarded TRATON with “Prime” status and a “C+” rating (on a scale of A+ to D–) for its sustainable value creation efforts in the machinery sector. In February 2023, TRATON received an ESG Risk Rating of 27.4 and was assessed to be at medium risk of ex
Slide 114: Participation & memberships
Participation & memberships TRATON has been a member of the UN Global Compact since October 2021 and has committed to supporting the Ten Principles. TRATON will regularly report on its activities in these fields as a part of its commitment to the UN Global Compact. All our brands are committed to se
Slide 115: Information about sustainability
Information about sustainability More detailed information regarding sustainability at TRATON can be found in our ESG Factbook and in the Sustainability section of our website. ESG Factbook Sustainability section of our website September 2023 Analyst & Investor Factbook | Investor Relations 115 .
Slide 116: Agenda
Agenda 1. TRATON at a Glance 2. Truck Industry 3. Strategy: TRATON Way Forward 4. Sustainability 5. Shares 6. Debt & Rating 7. Financials 8. IR Team 9. Useful Links September 2023 Analyst & Investor Factbook | Investor Relations 116 .
Slide 117: TRATON share
TRATON share Share data ISIN (International Securities Identification Number) DE000TRAT0N7 WKN (German Security Identification number) TRAT0N Common code 196390065 Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) Stock exchange & Nasdaq Stockholm Regulated market (Prime Standard) of Frankfurt
Slide 118: TRATON GROUP dividends
TRATON GROUP dividends Dividend policy Dividend per share, DPS • The TRATON GROUP intends paying a dividend of 30 (% of earnings after tax1) to 40% of its annual consolidated profit after tax. 1.00€ • The resolution to distribute a dividend for a particular1.0 1.0 fiscal year is adopted by the Annua
Slide 119: TRATON shares performance
TRATON shares performance Key data 2020 to 2022 Relative performance In € 2020 2021 2022 140 Share price at year-end 22.61 22.14 14.13 130 High for the year 24.26 28.40 23.38 Low for the year 11.00 19.92 11.83 120 Dividend per share 0.25 0.50 0.70 110 Market capitalization at year-end 11.3 11.1 7.1
Slide 120: Agenda
Agenda 1. TRATON at a Glance 2. Truck Industry 3. Strategy: TRATON Way Forward 4. Sustainability 5. Shares 6. Debt & Rating 7. Financials 8. IR Team 9. Useful Links September 2023 Analyst & Investor Factbook | Investor Relations 120 .
Slide 121: Development of TRATON SE credit ratings since 2020
Development of TRATON SE credit ratings since introduction in 2020 Moody´s with Baa2 stable outlook, S&P with BBB stable outlook October 22, 2020 March 3, April 29, 2021 December 14, 2022 Ba1 / June 17, 2020 S&P outlook S&P affirms rating at S&P outlook 2021 BB+ First-time change (in light of Debut
Slide 122: TRATON GROUP – Bonds outstanding
TRATON GROUP – Bonds outstanding TRATON with well-tested access to the debt capital markets €7.5 bn in bonds outstanding per June 30, 2023 Issuer TRATON Finance Luxembourg S.A. Guarantor TRATON SE (Ticker: 8TRA, Country: DE) Sustainability TRATON SE features an ESG rating from ISS ESG (Prime, C+) Fo
Slide 123: TRATON financing via debt capital markets
TRATON financing via debt capital markets Simplified overview • TRATON Finance Luxembourg S.A. (TFL)1, TRATON Treasury AB (TTAB) 1 and TRATON SE serve as issuers for the TRATON GROUP, with the payment obligations of TRATON Finance Luxembourg S.A. and TRATON Treasury AB being guaranteed by TRATON SE
Slide 124: Liquidity overview TRATON GROUP
Liquidity overview TRATON GROUP CREDIT LINES GROSS LIQUIDITY • Solid liquidity available to TRATON As of December 31, 2022 GROUP 2.0 1.8 • As of May 31, 2023, the liquidity reserve 1.6 Total ~€2.0 bn consists of credit lines of €7.8bn, thereof 1.4 • €3.3 bn from Volkswagen AG, and 1.2 1.0 • €4.5bn s
Slide 125: Syndicated revolving credit facility (RCF)
Syndicated revolving credit facility (RCF) Syndicated RCF (set up in July 2020) and ✓ Ample frame amount increased amended & restated on December 15, 2021, by €750 mn to €4.5 bn in total amounting to €4.5 bn TRATON ✓ Maturity extended to new • Revolving credit facility secures and 5+1+11 years from
Slide 126: TRATON GROUP – Debt maturity profile
TRATON GROUP – Debt maturity profile Maturity profile (€ bn)1 Major financings Debt overview (€ bn) • €700m Schuldschein TRATON financial debt 20.4 (tranches of 3y, 5y and 7y) thereof CI/OP 9.1 • Total of €7.5bn Bonds (tranches of 1.5y to 12y) thereof FS 11.3 • €4.5bn syndicated RCF (undrawn) Leasin
Slide 127: Agenda
Agenda 1. TRATON at a Glance 2. Truck Industry 3. Strategy: TRATON Way Forward 4. Sustainability 5. Shares 6. Debt & Rating 7. Financials 8. IR Team 9. Useful Links September 2023 Analyst & Investor Factbook | Investor Relations 127 .
Slide 128: Key financials by segments
Key financials by segments FY 2022 Scania MAN Navistar VWTB Operations1 Financial Corporate Group (in € mn) V&S T&B S&S Services Items2 Sales revenue 15,316 11,331 10,501 2,952 39,554 1,294 -513 40,335 Adj. operating 1,315 139 502 309 2,257 303 -489 2,071 result Adj. Return 8.6% 1.2% 4.8% 10.5% 5.7%
Slide 129: TRATON GROUP
TRATON GROUP TRATON GROUP 2018 2019 2020 2021 2022 Incoming orders (units) 243,714 227,240 216,251 359,975 334,583 Unit sales (units) 232,992 242,219 190,180 271,608 305,485 Book-to-bill 1.05 0.94 1.14 1.33 1.10 Sales revenue (€ mn) 25,927 26,901 22,580 30,620 40,335 Operating result (€ mn) 1,513 1,
Slide 130: TRATON Operations
TRATON Operations TRATON Operations 2018 2019 2020 2021 2022 Incoming orders (units) 243,714 227,240 216,251 359,975 334,583 Trucks 209,738 190,974 182,402 305,745 274,299 Buses 23,889 21,032 14,611 22,237 32,274 MAN TGE vans 10,087 15,234 19,238 31,993 28,010 Unit sales (units) 232,992 242,219 190,
Slide 131: TRATON GROUP – Sales revenue
TRATON GROUP – Sales revenue Sales revenue (€ mn) Sales revenue business areas (€ mn) GROUP Operations Other 40.3 Financial Services 40.3 30.6 30.6 26.9 26.9 25.9 25.9 22.6 22.6 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 September 2023 Analyst & Investor Factbook | Investor Relations 131 .
Slide 132: TRATON Operations
TRATON Operations TRATON Operations1 2018 2019 2020 2021 2022 Sales revenue (€ mn) 24,963 26,444 22,152 30,103 39,554 Operating result (€ mn) 1,346 1,741 176 677 1,937 Operating RoS (%) 5.4 6.6 0.8 2.2 5.0 Adj. operating result (€ mn) 1,484 1,729 230 1,883 2,257 Adj. operating RoS (%) 5.9 6.5 1.0 6.
Slide 133: TRATON Operations – Incoming orders & Unit sales
TRATON Operations – Incoming orders & Unit sales Incoming orders (k units) Unit sales (k units) Book-to-bill 1.05 0.94 1.14 1.33 1.10 Trucks Buses MAN TGE Trucks Buses MAN TGE 360 335 305 244 272 227 216 242 233 190 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Note: Totals taking into account c
Slide 134: TRATON Operations – Sales revenue & adj. operating result
TRATON Operations – Sales revenue & adj. operating result Sales revenue (€ bn) Adjusted operating profit (€ mn) Scania V&S Navistar S&S Scania V&S Navistar S&S MAN T&B VWTB MAN T&B VWTB 40.1 2.3 1.7 1.9 30.1 15.3 1.5 26.4 1.3 25.0 22.2 13.9 1.2 1.5 1.4 13.0 13.9 11.3 0.2 0.1 11.5 0.5 10.9 0.8 0.2 0.
Slide 135: Scania Vehicles & Services
Scania Vehicles & Services Scania V&S 2018 2019 2020 2021 2022 Incoming orders (units) 97,446 88,739 92,940 116,798 82,071 Unit sales (units) 96,475 99,457 72,085 90,366 85,232 Book-to-bill 1.01 0.89 1.29 1.29 0.96 Sales revenue (€ mn) 12,981 13,934 11,521 13,927 15,316 Operating result (€ mn) 1,207
Slide 136: MAN Truck & Bus
MAN Truck & Bus MAN T&B 2018 2019 2020 2021 2022 Incoming orders (units) 112,915 100,652 84,921 143,531 109,717 Unit sales (units) 102,556 104,887 81,673 93,668 84,513 Book-to-bill 1.10 0.96 1.04 1.53 1.30 Sales revenue (€ mn) 10,815 11,088 9,659 10,934 11,331 Operating result (€ mn) 402 371 -553 -4
Slide 137: Navistar Services & Sales
Navistar Services & Sales Navistar S&S 2018 2019 2020 20211 2022 Incoming orders (units) - - - 42,588 86,019 Unit sales (units) - - - 30,305 81,892 Book-to-bill - - - 1.41 1.05 Sales revenue (€ mn) - - - 3,557 10,501 Operating result (€ mn) - - - 41 502 Operating RoS (%) - - - 1.2 4.8 Adj. operating
Slide 138: Volkswagen Truck & Bus
Volkswagen Truck & Bus VWTB 2018 2019 2020 2021 2022 Incoming orders (units) 36,535 41,103 38,805 57,241 57,042 Unit sales (units) 36,362 41,891 36,974 57,405 54,136 Book-to-bill 1.00 0.98 1.05 1.00 1.05 Sales revenue (€ mn) 1,421 1,738 1,235 2,113 2,952 Operating result (€ mn) 28 55 -15 171 309 Ope
Slide 139: TRATON Financial Services
TRATON Financial Services Financial Services 2018 2019 2020 2021 2022 Sales revenue (€ mn) 760 849 820 964 1,294 Operating result (€ mn) 138 142 107 259 80 Operating RoS (%) 18.2 16.8 13.1 26.9 6.2 Adj. operating result (€ mn) 138 142 107 259 303 Adj. operating RoS (%) 18.2 16.8 13.1 26.9 23.5 Retur
Slide 140: TRATON FS – Sales revenue & adj. operating result
TRATON FS – Sales revenue & adj. operating result Sales revenue (€ mn) Adjusted operating profit (€ mn) 1,294 303 259 964 849 820 760 138 142 107 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 September 2023 Analyst & Investor Factbook | Investor Relations 140 .
Slide 141: Agenda
Agenda 1. TRATON at a Glance 2. Truck Industry 3. TRATON Way Forward 4. Sustainability 5. Shares 6. Debt & Rating 7. Financials 8. IR Team 9. Useful Links September 2023 Analyst & Investor Factbook | Investor Relations 141 .
Slide 142: TRATON Investor Relations Team
TRATON Investor Relations Team Thomas Paschen Marie Fischhaber Analysts and Investors, Consensus, Private Investors Annual General Meeting, Events +49 170 907 34 94 +49 152 256 00 705 thomas.paschen@traton.com marie.fischhaber@traton.com Contact Navistar: Fabian Schimpf Marvin Kalberlah Analysts and
Slide 143: Agenda
Agenda 1. TRATON at a Glance 2. Truck Industry 3. TRATON Way Forward 4. Sustainability 5. Shares 6. Debt & Rating 7. Financials 8. IR Team 9. Useful Links September 2023 Analyst & Investor Factbook | Investor Relations 143 .
Slide 144: Useful links
Useful links TRATON GROUP BRANDS TRATON Website Scania Newsroom Investor Relations Website MAN Newsroom Newsroom Navistar Newsroom Reports & Presentations VWTB Newsroom Shares & Financial Figures Events 2022 Annual Report Debt & Rating Sustainability Corporate Governance Annual General Meeting Finan
Slide 145: Find out more on www.traton.com
Find out more on www.traton.com