TRATON : 2023 Half-Year Financial Report

2023

Half-Year Financial Report

AT A GLANCE

		Sales revenue rose by
Incoming orders	Unit sales	27% to around	Adjusted operating				Adjusted
24%	vehicles	€22.9	€2.0				8.6%
down by	22%				result around €1.2 billion	operating return on
					higher at around				sales climbed to
	higher at 168,114
		billion	billion
Trucks and buses (units)					H1 2023		H1 2022	Change
Incoming orders					125,258			164,213	-24%
Unit sales					168,114			137,294	22%
of which trucks					139,843			115,115	21%
of which buses					14,848				12,894	15%
of which MAN TGE vans					13,423				9,285	45%
TRATON GROUP
Sales revenue (€ million)					22,854				17,982	27%
Operating result (adjusted) (€ million)				1,973				798	1,176
Operating return on sales (adjusted) (in %)				8.6				4.4	4.2 pp
Earnings per share (€)					2.48				1.38	1.10
Active employees 1					101,879			100,356	1,523
TRATON Operations
Sales revenue (€ million)					22,335				17,634	27%
Operating result (adjusted) (€ million)				2,097				869	1,229
Operating return on sales (adjusted) (in %)				9.4				4.9	4.5 pp
Primary R&D costs (€ million)					1,050				896	17%
Capex (€ million)					497				469	6%
Net cash flow (€ million)					1,754				-1,395	3,149
TRATON Financial Services
Sales revenue (€ million)					737				609	21%
Operating result (adjusted) (€ million)				158				146	12
Operating return on sales (adjusted) (in %)				21.5				24.1	-2.6 pp
Return on equity (in %)					5.6				9.0	-3.4 pp

1 As of June 30, 2023, and December 31, 2022

CONTENTS	1	3
	To Our Shareholders	Condensed Half-Yearly
	5	Consolidated ­Financial Statements
	Highlights in the First Half of 2023	28
		Income Statement

2

Interim Group Management Report

9

Report on Economic Position

24

TRATON SE (German GAAP)

24

Opportunities and Risks

24

Important Legal Cases

24

Report on Expected Developments

29

Condensed Statement of Comprehensive Income

30

Balance Sheet

32

Statement of Changes in Equity

34

Statement of Cash Flows

36

Notes

4

Further Information

50

Responsibility Statement

51

Review Report

52

Financial Calendar

TRATON SE's half-year financial report meets the requirements set out in the applicable provisions of the Wertpapierhandelsgesetz (WpHG - German Securities Trading Act) and, in accordance with section 115 of the WpHG, comprises the condensed half-yearly consolidated financial statements, the interim Group management report, and a responsibility statement. This Half-Year Financial Report should be read in conjunction with our Annual Report for fiscal year 2022, which contains a comprehensive description of our business activities.

Our Half-Year Financial Report contains certain forward-looking statements for the remaining months of fiscal year 2023. 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.

All figures shown are rounded, so minor discrepancies may arise from addition of these amounts. Comparable figures for the prior-year period are presented in parentheses alongside the figures for the fiscal year under review. The current definition of the key performance indicators and other key figures can be found in the annual report published for the previous year. This report can be downloaded from our website at https://ir.traton.com/websites/traton/English/3000/reports-_-presentations.html.

To Our Shareholders

5	2023 HALF -YEAR FINANCIAL REPORT TO OUR SHAREHOLDERS
	TRATON GROUP

Highlights in the First Half of 2023

In the first half of 2023, the TRATON GROUP recorded tremendous progress in the field of electric mobility and at the same time further implemented its TRATON Way Forward strategy, which charts a course for the Company's future success.

The Company's Supervisory Board made key decisions in mid-March aimed at implementing its corporate strategy even more systematically. The contract with Christian Levin, Chairman of the Executive Board, was extended by five years until January 2029, and the contract with TRATON Executive Board member Antonio Roberto Cortes, Chief Executive Officer of Volkswagen Truck

• Bus, was extended by three years until January 2027. At the same time, the introduction of the new Global Product Management area of responsibility within the Executive Board will safeguard the heart of the business model in the future: both the strategic and the operational integration of the commercial­ and industrial systems of the four brands and coordinating Group functions. Catharina Modahl Nilsson, who has been Head of Group Product Management at TRATON since the beginning of 2022, has been responsible for the new area as a member of the TRATON Executive Board since April 2023. In addition, the Supervisory Board appointed Dr. Michael Jackstein to the Executive Board
  effective­ April 1, 2023. He heads the combined Finance and Human Resources division of TRATON SE, which also includes Business Development.

At TRATON SE's Annual General Meeting, which took place at the International Congress Center Messe in Munich on June 1, 2023, Chief Executive Officer Christian Levin presented the progress in implementing the Company's strategy to its shareholders in detail. "We deliver added value for our customers, we deliver value for our shareholders, and we continue to deliver on our TRATON Way Forward strategy," Levin said in his speech to the shareholders. TRATON's shareholders are benefiting from the Group's good performance. At the ­Annual General Meeting, they voted by a majority of 99.99% to approve a dividend of €0.70 per share, following €0.50 for fiscal year 2021. The payout ratio of 30.7% is thus within the target corridor.

Thanks to increasingly stable supply chains and higher production volumes, TRATON got off to a good start in fiscal year 2023. This positive business performance continued in the second quarter. For example, unit sales in the first six months increased by 22% to 168,114 vehicles. Sales revenue grew 27% to reach €22.9 billion. Operating return on sales (adjusted) improved by 4.2 percentage points year-on-year to 8.6%.

Looking toward the sustainable transportation of the future, one thing is certain for the TRATON GROUP: the technology for the transition to sustainable transportation is ready - for trucks and buses and for charging stations. The TRATON GROUP brands have already proved that their battery electric vehicles are suitable for everyday use and can withstand even the harshest of con- ditions. In order to raise awareness among political decision-makers in Europe that this transition toward sustainable transportation will only succeed with the rapid development of the urgently needed charging infrastructure for commercial vehicles, TRATON hosted a Parliamentary Evening in Berlin in mid-May together with ABB E-mobility. "We now need the right political road- map, framework, and incentives so that we can build a high-performance

European­ charging network at the required speed. This would then pave the way for the European Union to reach its climate goals," said Chief Executive ­Officer Christian Levin as he was joined on stage by German Transport Minister Dr. Volker Wissing, Swedish Infrastructure Minister Andreas Carlson, and Per Thöresson, Sweden's Ambassador to Germany.

The TRATON GROUP brands reported numerous strategy and product highlights in the first half of 2023: