Press Conference for the Half-Yearly Report · MAN SE Press Conference for the Half-Yearly Report 7/28/2015 < 22 > Business Performance Sales revenue € mn 2014 2015 6,699

1 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015

Press Conference for the Half-Yearly Report MAN SE

Munich, July 28, 2015


Dr. Georg Pachta-Reyhofen CEO of MAN SE

Munich, July 28, 2015


Fiscal Year 2015 Economic situation

Global economy

European commercial vehicles market growing again, particularly in

southern European countries.

Persistent recession in Brazil and Russia.

Noticeable economic slowdown in China.

Iran new hope for all of the MAN Group’s products.

Exchange rates

Appreciation, U.S. dollar benefits from European products vis-à-vis

U.S. competition.

Yen at a low level with upward trend:

European products currently at disadvantage in view of Japanese

competition.

Oil price

Reduced oil price: almost at 2005 level.

Slump in investments in the oil and gas industry; positive impact on

other MDT markets, e.g. commercial shipping.


Fiscal Year 2015 First six months at a glance (2014 figures)

€7.5 billion (€7.7 billion)

Slight decline in order intake, particularly in Latin America

€6.7 billion (€6.7 billion)

Revenue at prior-year level

€15 million (€222 million)

Operating profit

This includes €170 million in provisions in Q2 for

restructuring expenses for the program to safeguard future

growth at MAN Truck & Bus.

55,196 (55,903)

Slight decrease in number of employees worldwide since the

end of the year


Agenda

1 Current Topics Commercial Vehicles & Power Engineering Dr. Pachta-Reyhofen

2 Business Performance & Outlook Dr. Park


Current Topics – Commercial Vehicles Market situation trucks >6 tons in Europe (YTD May 2015 vs. 2014)

MAN currently has a market share of 16.2% compared to 16.0% in the prior-year period

EU market volume [units] Market change [2015 vs. 2014]

4,027

4,233

4,876

7,246

7,502

9,553

10,060

19,026

20,648

39,003

152,456

Austria

Belgium

Czech Republic

Netherlands

Italy

Spain

Poland

UK

France

Germany

Europe

2%

4%

11%

72%

34%

46%

22%

49%

8%

-1%

17%

Austria

Belgium

Czech Republic

Netherlands

Italy

Spain

Poland

UK

France

Germany

Europe


Current Topics – Commercial Vehicles Market situation buses >8 tons in Europe (YTD May 2015 vs. 2014)

MAN currently has a market share of 12.0% compared to 11.7% in the prior-year period

EU market volume [units] Market change [2015 vs. 2014]

241

295

424

451

486

499

569

962

1,078

2,127

2,259

2,471

13,485

Netherlands

Norway

Sweden

Austria

Belgium

Czech Republic

Poland

Italy

Spain

UK

Germany

France

Europe

-15%

10%

-2%

-4%

19%

19%

33%

22%

62%

20%

4%

16%

13%

Netherlands

Norway

Sweden

Austria

Belgium

Czech Republic

Poland

Italy

Spain

UK

Germany

France

Europe


Current Topics – Commercial Vehicles Substantiating the efficiency program at MAN Truck & Bus

Starting Point:

Unsatisfactory results between 2012 and 2015 (Ø ROS: 2.2%)

Objective: Sustainable increase in profitability

Creating efficient structures and processes

Adapting production capacities, increasing flexibility, and focusing on core

components and core competencies.

Reducing selling and administrative expenses.


Current Topics – Commercial Vehicles Optimizing the bus production network of MAN Truck & Bus

Downsizing number of bus production plants

from five to two:

Relocating coach production from Plauen to

Ankara. Plauen site was converted into a Bus

Modification Center (e.g. the team coach for FC

Augsburg is currently being built in Plauen).

Relocating city bus production from Posen to

Starachowice. Job guarantee for employees of

the Posen plant at the Volkswagen

Nutzfahrzeuge plant nearby.

Relocating chassis assembly from Salzgitter to

Ankara.

Starachowice

All city buses

Ankara

Coaches

Intercity buses

Bus chassis

Future organization


Current Topics – Commercial Vehicles Optimizing the truck production network of MAN Truck & Bus

Focus of truck production sites:

Clear focus of truck production network on

component and assembly plants:

Focus of assembly lines on series and of component

plant on core competencies

Concentrate on central spare part logistics

Future organization

Salzgitter

Component production

CKD

Central spare part logistics

Krakow

Assembly heavy truck series

Steyr

Light & medium truck series:

Assembly

Driver’s cab equipment

Munich

Heavy truck series

Assembly & driver’s cab equipment

Drive axle

Driver’s cab body for all series


0.8

2.9

0.5 0.3

1.8

2012 2013 2014 2015p 2016p

5.5

4.2

1.9

2.8

3.5

2012 2013 2014 2015p 2016p

4.0

4.9 4.6

3.2 3.3

2012 2013 2014 2015p 2016p

4.0

1.4

2.1

2.7

3.3

2012 2013 2014 2015p 2016p

5.6

1.3

(3.6)

(5.9)

(1.5)

2012 2013 2014 2015p 2016p

10.8 11.0

23.9

18.8

25.7

2012 2013 2014 2015p 2016p

2.4 1.9 3.7 3.8 3.1

2012 2013 2014 2015p 2016p

3.6 4.0 4.1 3.1 3.4

2012 2013 2014 2015p 2016p

20.1

56.2

68.5

122.5

89.4

2012 2013 2014 2015p 2016p

1.5 3.0

4.6 3.4 3.0

2012 2013 2014 2015p 2016p

5.8 5.9 6.4

9.1

5.6

2012 2013 2014 2015p 2016p

GDP growth (% full year)

Consumer inflation (% full year)

Argentina Chile Colombia Mexico Venezuela Brazil

Current

Projection

Argentina Chile Colombia Mexico Venezuela Brazil

Current Topics – Commercial Vehicles Economic situation in Latin America

1.8

2.7

0.1

(1.5)

1.0

2012 2013 2014 2015p 2016p


Current Topics – Commercial Vehicles MAN Latin America remains market leader

Market share increase in spite of

drastic market slump.

Number of registrations in the first

six months of 2015 down 42% as

against 2014.

MAN market share (trucks >5t) on

June 30, 2015, increased to 27.7%

(+1%).

Unit sales figures for trucks and

buses incl. exports declined by 50%.

Austerity program is highly

efficient; personnel costs have

been drastically reduced.


Current Topics – Commercial Vehicles Unit sales figures MAN Latin America since 2000 and outlook 2015

1,594 1,351 1,405 2,714 5,725

8,868 9,932 10,801 8,623

5,194

8,331 9,527 8,980 8,264

6,362

17,034

21,785 22,443

26,136

28,600 26,992

27,266

36,304

44,896

41,005

57,299

62,575

47,325

52,093

41,799

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Domestic

Export

28,850

34,325 35,860 37,198

47,105

53,519

46,199

65,630

72,102

56,305

60,357

48,161

23,848 23,136

18,628

-40%

to -50%


Current Topics – Power Engineering MAN Diesel & Turbo gas engine portfolio for power plant applications

Efficiency of new engine series

over 50 percent:

Portfolio includes engines that run

on liquid gas with a mechanical

output of 7 to 20.7 MW.

The most powerful engine of this

series, the 51/60G TS reaches a

mechanical efficiency of more

than 50%.

When applied in combined heat and

power systems, its utilization factor

can exceed 90%. 35/44G 35/44G TS 51/60G TS 51/60G


Current Topics – Power Engineering Air Liquide relies on MAN compressor for largest air separation unit worldwide

MAN’s compressor sets new

standards for an entire industry:

The air separation plant will generate

5,000 tons of oxygen per day.

For this purpose, the compressor will

compress 1 million cubic meters of

air per hour to 6 bar with 65 MW

propulsion power.

Another MAN compressor further

compresses part of the air to 40 bar.

The plant will be put into operation at

the end of 2017.

Oil supply

E-motor

Compressor

Air cooler


Current Topics – Power Engineering MAN Diesel & Turbo receives major reactor order from Oman Oil Refineries

and Petroleum Industries Company (ORPIC) in Muscat

Reference with strategic significance

for refinery industry:

Is is a first that such a huge reactor

weighing 680 tons will be exchanged

during a general overhaul.

The order value in a two-digit million

range will comprise more than

100,000 working hours.

Additional major order:

Eight additional compressor trains for

national oil company Petroleum

Development of Oman (PDO).


Current Topics – Power Engineering MAN Diesel & Turbo takes over Indian steam turbine specialist

MAN Diesel & Turbo acquires

MaxWatt Turbines Pvt. Ltd.:

MaxWatt is an established player on

the Indian and Asian market for

small-capacity steam turbines with

central offices in Bangalore.

This acquisition adds to MAN Diesel

& Turbo’s existing high-end range of

steam turbine products for numerous

standard applications.


Current Topics – Power Engineering Renk receives order for over 70 wind turbine transmissions for offshore wind farm

Baltic Sea wind farm “Wikinger”:

70 Adwen (formerly Areva Wind)

wind power plants of 5MW each are

currently being built northeast of the

island of Rügen.

Renk is a specialist for equipping

such wind turbines. Including

previous orders, more than 210 wind

farms will generate energy with

transmissions from Renk in future.

The required transmissions have a

weight of 50 tons each.


Agenda

1 Current Topics Commercial Vehicles & Power Engineering Dr. Pachta-Reyhofen

2 Business Performance & Outlook Dr. Park


Dr. Peter Park Executive Vice President Finance MAN SE,

CFO MAN Diesel & Turbo SE

Munich, Tuesday, July 28, 2015


Business Performance Order intake

2014 2015

-3%

€ mn

MAN Group: January – June 2015

7,674 7,469

By division

€ mn

H1

2014

H1

2015

Δ

in %

Q2

2014

Q2

2015

Δ

in %

MAN Truck & Bus 4,656 5,095 +9 2,390 2,566 +7

MAN Latin America 1,195 593 -50 625 303 -52

Commercial Vehicles 5,784 5,637 -3 2,984 2,850 -4

CV order intake (units) 62,646 55,277 -12 32,874 27,885 -15

MAN Diesel & Turbo 1,687 1,576 -7 901 749 -17

Renk 226 293 +30 102 129 +27

Power Engineering 1,906 1,852 -3 1,001 866 -14

MAN Group 7,674 7,469 -3 3,976 3,708 -7


Business Performance Sales revenue

€ mn

2014 2015

0% 6,699 6,719

€ mn

H1

2014

H1

2015

Δ

in %

Q2

2014

Q2

2015

Δ

in %

MAN Truck & Bus 3,913 4,367 +12 2,131 2,347 10

MAN Latin America 1,195 593 -50 625 303 -52

Commercial Vehicles 5,071 4,917 -3 2,735 2,625 -4

CV unit sales (units) 57,635 49,876 -13 31,249 27,826 -11

MAN Diesel & Turbo 1,426 1,582 +11 726 885 +22

Renk 216 240 +11 108 133 +23

Power Engineering 1,634 1,813 +11 830 1,013 +22

MAN Group 6,699 6,719 0 3,561 3,631 +2

By division MAN Group: January – June 2015


Business Performance Operating profit/loss

€ mn


2014 2015

222 -€37 mn

€ mn

H1

2014

H1

2015

Δ

in € mn

Q2

2014

Q2

2015

Δ

in € mn

MAN Truck & Bus

before special items 79 121 +42 68 94 +26

after special items 79 -49 -128 68 -76 -144

MAN Latin America 67 -21 -88 36 -9 -45

Commercial Vehicles 150 -74 -224 107 -85 -192

MAN Diesel & Turbo 88 93 +5 55 53 -2

Renk 26 43 +17 12 30 +18

Power Engineering 114 135 +21 67 83 +16

MAN Gruppe

before special items 222 185 -37 154 151 -3

after special items 222 15 -207 154 -19 -173

By division

15 2)

185 1)

1) before special items 2) after special items .


Business Performance Operating return on sales

%


2014 2015

3.3 -0.5%-pts.

By division

%

H1

2014

H1

2015

Δ

in %-pts.

Q2

2014

Q2

2015

Δ

in %-pts.

MAN Truck & Bus

before special items 2.0 2.8 +0.8 3.2 4.0 +0.8

after special items 2.0 -1.1 -3.1 3.2 -3.2 -6.4

MAN Latin America 5.6 -3.5 -9.2 5.7 -3.0 -8.7

Commercial Vehicles 3.0 -1.5 -4.5 3.9 -3.2 -7.1

MAN Diesel & Turbo 6.2 5.9 -0.3 7.5 6.0 -1.5

Renk 11.9 17.8 +5.9 11.0 22.6 +11.6

Power Engineering 7.0 7.4 +0.5 8.0 8.2 +0.2

MAN Gruppe

before special items 3.3 2.8 -0.5 4.3 4.2 -0.1

after special items 3.3 0.2 -3.1 4.3 -0.5 -4.8

0.2 2)

2.8 1)

1) before special items 2) after special items .


2014 2015

Business Performance Headcount 1)

MAN Group: Dec. 31, 2014 vs. June 30, 2015

55,903 55,196 -1%

1) Including employees in the passive phase of partial retirement and vocational trainees,

excluding subcontracted employees.

Dec. 31, 2014 vs. June 30, 2015 by division

No.

2014

2015

Δ

in %

MAN Truck & Bus 36,450 35,904 -1

MAN Latin America 1,999 1,934 -3

Commercial Vehicles 38,449 37,838 -2

MAN Diesel & Turbo 14,947 14,850 -1

Renk 2,196 2,186 0

Power Engineering 17,143 17,036 -1

MAN Group 55,903 55,196 -1

No.


H1 2014 H1 2015

2014 H1 2015

-684

€ mn € mn

MAN Group: Net cash flow January – June 2015 MAN Group: Net financial debt as of Dec. 31, 2014 vs. June 30, 2015

Business Performance Net cash flow | Net financial debt

93

-1,360

-1,732

+€776 mn

-€372 mn


Outlook 2015

Commercial Vehicles

Unit sales significantly below previous year due to the market situation in Brazil

Sales revenue to fall slightly short of the prior-year figure

Operating loss, primarily as a result of expenses associated with the restructuring program at MAN Truck &

Bus; negative return on sales as a result

Power Engineering

Order intake slightly below the prior-year level, which was dominated by a major order

Sales revenue roughly unchanged as against the previous year

Operating profit and operating return on sales will improve slightly

Higher single-digit operating return on sales due to ongoing high competitive pressure in the currently flat

markets

MAN Group

Slight year-on-year decline in sales revenue

Operating profit significantly impacted primarily by restructuring expenses

Operating return on sales will more than halve year-on-year


Press Conference for the Half-Yearly Report MAN SE

Munich, Tuesday, July 28, 2015

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Press Conference for the Half-Yearly Report · MAN SE Press Conference for the Half-Yearly Report 7/28/2015 < 22 > Business Performance Sales revenue € mn 2014 2015 6,699