TRATON GROUP...2021/03/22 · lines (TGX, TGS, TGM, TGL) NTG NEW TRUCK GENERATION NEW DELIVERY & METEOR Launch of preceding truck generation 1995 (4-Series) 2005 (Delivery) 2000 (TGA)

TRATON GROUP CREATING A GLOBAL CHAMPIONCOMPANY PRESENTATION

2021 / Corporate Communications / Company Presentation2

DISCLAIMERThis 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.

2021 / Corporate Communications / Company Presentation 3

TRATON AT A GLANCE SUSTAINABILITYGLOBAL CHAMPION STRATEGY NAVISTAR ACQUISITION

AGENDA

03. Navistar Acquisition

02. Global Champion Strategy

01. TRATON at a Glance

04. Sustainability



LEADING GLOBAL BRANDS AND STRATEGIC ALLIANCE PARTNERS

1 As of December 31, 2020 2 Held by a subsidiary of MAN SE as of December 31, 2020


FULL CONSOLIDATED STRATEGIC PARTNERASSOCIATES

Leader in core markets with differentiated brands

Powerful strategic alliance partners enabling leading global scale

E-Mobility joint venture andprocurement joint venture

Closing of Navistar acquisition expected for mid 2021.

16.7%1 25% + 1 share2

*

*

2021 / Corporate Communications / Company Presentation

Industrial Business Financial

ServicesGroup

Sales

Revenue

Adjusted Operating

Result

Adjusted

RoS

€0.8 bn €22.6 bn

11.1%(Return on Equity4)

0.6%

€107 mn €135 mn

Net Cash Flow

Primary R&D2

Capex3

Scania V&S MAN T&B VWCO

€11.5 bn €9.7 bn €1.2 bn

€802 mn €(553) mn €(15) mn

7.0% (5.7)% (1.2)%

Other1

€(0.3) bn

€(206) mn

n/m

€22.2 bn

€28 mn

0.1%

€1.2 bn

€1.0 bn

€0.7 bn

FY 2020

1 Includes holdings and investments (MAN SE: holding companies, Sinotruk investment; TRATON holding: holding companies, Navistar investment, TB Digital Services), PPA (VWCO PPA – MAN origin; Scania PPA – VW origin) as well as consolidation effects. 2 Reflecting total research and development costs comprising capitalized R&D plus period-expensed R&D. 3 Consists of the capital expenditures in property, plant and equipment and in intangible assets (excluding capitalized development costs) that are reported in the statement of cash flows.4 Defined as profit before tax as % of average equity.


KEY FINANCIALS BY DIVISION


€22.6 bn Sales Revenue Units Sold190 k

SALES REVENUE FY 2020 (% of total)UNIT SALES FY 2020 (% of total)

Note: TRATON including Financial Services, excl. consolidation; rounding differences possible.

1 EU27+3 region (EU27 countries without Malta, plus the United Kingdom, Norway, and Switzerland)

VW Caminhões e Ônibus

5%

MAN Truck & Bus42%

Scania Vehicles & Services

50%

Financial Services4%

Industrial Business 96%

Germany17%

Other EU27+3 (excl. Germany)

39%

Brazil21%

S. America (excl. Brazil)

4%

Other19%

1


DIVERSIFIED BY GEOGRAPHY AND BY BRAND


KEY COMPANY HIGHLIGHTS

1 GLOBAL CHAMPION

• Scale & global reach through leading brands & strategic alliance partners• Unique platform enabling growth & positioning for best-in-class profitability

2 GROWTH• Customer value-focused product and service offering• New product generations• Further expansion in key geographies

3 PROFITABILITY• Concrete path to profitability improvement• Stand-alone brand performance plus synergies• Earnings growth and cash generation potential

4 EXECUTION• Strong team with industry-leading track record • Committed to Global Champion Strategy



TRACK RECORD AND OVER-THE-CYCLE TARGET

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.

FY 2019

Between5% and 6%

9%

Over the cycleRoS

0.4%

€81 mn

Sharp increase

FY 2020 2021 outlook1

179%

Substantial increase

Unit sales

Group sales revenue

Group return on sales2

Cash conversion rate3

242.2 k

+4%

€26.9 bn

+4%

7.0%

€1.9 bn

190.2 k

-21%

€22.6 bn

-16%

Over the cycle RoS target


n/a3Between

25% and 35%


TRATON GROUP CONTINUOUSLY DELIVERS ON ITS STRATEGIC GOALS

NEW CORPORATE IDENTITYVWTB BECOMES TRATON SE

8TRA TRATON LISTED INFRANKFURT & STOCKHOLM

TRATON INNOVATION DAY 2019TRATON WANTS TO BECOMELEADER IN E-MOBILITY

DEBUT SYNDICATED RCF €3.75 bn

NEXT GOAL:INTEGRATION OF AFTER CLOSING

12

3

4

5TRATON AT A GLANCE SUSTAINABILITYGLOBAL CHAMPION STRATEGY NAVISTAR ACQUISITION


STRONG MANAGEMENT TEAM AND TWO-TIER BOARD STRUCTURE WITH INDEPENDENCE SECURED BY SUPERVISORY BOARD COMPOSITION

TRATON SE EXECUTIVE BOARD SUPERVISORY BOARD

Years of experience in the automotive/commercial vehicle industry

Matthias Gründler (CEO)

34

Henrik Henriksson(CEO SCANIA)

23

Dr.h.c.Andreas Tostmann(CEO MAN)

30

Antonio Roberto Cortes(CEO VWCO)

41

Christian Schulz (CFO)

21

Christian Levin (COO)

26

Composition

‣ Supervisory Board composition reflects target

shareholder structure

‣ Broad complementary skills and experience

‣ Chairman of the Supervisory Board: Hans Dieter Pötsch

‣ Deputy Chairman: Athanasios Stimoniaris

‣ 20 members with equal number of international shareholder and employee representatives

Audit Committee

‣ Comprises 6 members

‣ Equal number of shareholder & employee representatives



AGENDA




04. Sustainability



Cooperation& Synergies

BrandPerformance

GlobalExpansion

Customer FocusedInnovation

Increase performanceof brands with individual

identity, strength, andclear positioning

Increase cooperation and exploit synergiesbetween brands

Leverage scale through global footprint

Transformingtransportation

Creation of Sustainable Value

GLOBAL CHAMPION STRATEGY BASED ON FOUR PILLARS

Leader in Profitability | Global Presence | Innovation



CLEAR POSITIONING OF BRANDS

DRIVING THE SHIFT TOWARDS A SUSTAINABLE TRANSPORT SYSTEM

SIMPLIFYING BUSINESS BY BEING THE MOST RELIABLE BUSINESS PARTNER

LESS YOU DON’T WANTMORE YOU DON’T NEED

Premium customer-focused innovation leader for sustainable transport solutions

Reliable business partner with value package and full-line offering

Best value for money andtailor-made products



STRONG POSITION OF ALL BRANDS WITH NEW TRUCK LINES

Current launch

New generation for all truck lines (R, G and P

trucks, new S and L trucks)

Modern trucks forlogistics tailored for

customers in emerging markets

New state of the art truck generation for all truck lines (TGX, TGS, TGM, TGL)

NTG NEW DELIVERY & METEOR NEW TRUCK GENERATION

Launch of preceding truck generation

1995(4-Series)

2005(Delivery)

2000(TGA)

2016 - 2019 2019 - 2021e 2017 - 2020Launch/ramp-up



35%Europe1

Market leader with 35% market share

30%South America2

Market leader with 30% market share

TRATON truck market share in 2019 (>15t)Core markets of TRATON brands

Market leader in Brazil with 37% market share

Market leader in Germany with 41% market share

Source: IHS Markit, 2019 market sharesNote: smaller presence in additional countries not highlighted (TRATON active in >120 countries worldwide, including bus activities)1 EU28+2 region consisting of EU member states plus Norway and Switzerland. Luxembourg excluded, as no IHS Markit data available. TRATON’s sales in Russia not included in calculation of the Europe market share 2 Including Argentina, Brazil, Bolivia, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Nicaragua, Panama, Peru, Uruguay, Venezuela; excl. Mexico (part of North America); excl. Paraguay as no IHS Markit data for trucks >15t available

LEADING TRUCK BRANDS AND #1 MARKET POSITION IN EUROPE AND SOUTH AMERICA

38%

24%29%

39%

24%31% 27%

32% 35% 38%

25% 25%

DE FR UK PL IT ES NL BE CZ BR AR CL

Export business



LEVERAGE POWERTRAIN COMPONENTS ACROSS BRANDS TO GENERATE SIGNIFICANT COST SAVINGS IN YEARS TO COME

21e 22e 2026e23e 24e 25e

CBE Enhanced fuel efficiency

Low maintenance

Reduced weight

Common base engine (CBE) expected to be installed in almost half of TRATON heavy-duty trucks per year from 2025e onwards.

50%

EUROPE

LATIN AMERICA

Introduced into brand

The majority of the manufacturingcosts of a truck relates to thepowertrain.

$



Source: IHS Markit Note: SoP = start of production 1 Market share of Navistar in North America 2 Market share of CNHTC (parent company of Sinotruk) in Greater China 3Market share of Hino in Japan and Southeast Asia (Indonesia, Australia, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand, Vietnam) 4 Incl.Western Europe and CEE regions 5 Incl. Argentina, Brazil, Bolivia, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Nicaragua, Panama, Peru, Venezuela, Belize,Caribbean, El Salvador, Paraguay, Uruguay, excl. Mexico (part of N. America); as no IHS Markit data for trucks >6t available 6 Excludes other countries

TRATON BRANDS

ALLIANCE PARTNERS

CORE MARKETS OF

PROFIT POOL6

Share 2018

#

~30-35%4

~0%5

~35%

~25%

13%1

16%2

North America – partnership since 2016

• Intention to localize MAN heavy-duty truck in world’s largest market•Evaluation of technology/procurement

cooperation

35%3 •Cooperation: future logistics/transportation, technology, and e-mobility

•Procurement JV signed with global synergy potential

•E-mobility joint venture started

Japan & Southeast Asia – cooperation since 2018

China – partnership since 2009

•Technology cooperation: first SoPs by 2020/21• Synergies in procurement JV achieved, further

potential

TR

UC

K M

AR

KE

T S

HA

RE

IN

20

19

(>

15

T)

STR

ATE

GIC

PA

RTN

ERA

SSO

CIA

TES

ALLIANCE PARTNERSHIPS PROVIDING ACCESS TO GLOBAL PROFIT POOLS



GLOBAL EXPANSION THROUGH STRONG ALLIANCE PARTNERS

1 1 As of September 2020 2 Information according to Navistar 3 Truck market share of CNHTC in China (incl. Hong Kong) 4 Truck market share based on IHS of Hino in Japan and Southeast Asia (Indonesia, Australia, Malaysia, New Zealand, Philippines, Singapore,South Korea, Taiwan, Thailand, Vietnam) Source: IHS Markit Note: market share data based on trucks >15t

Intention to localize MAN truck in China; potential tech/procurement cooperation

Technology cooperation and procurement JV

LARGEST NETWORK OF ~1K DEALERS IN NORTH AMERICA2

ONE OF THE LEADING TRUCK MANUFACTURERS IN CHINA

TOP POSITION IN HEAVY- AND MEDIUM-DUTY TRUCK SALES IN JAPAN

#4 MARKET POSITION | 14% MARKET SHARE1

ASSOCIATES

E-mobility, procurement, and technology cooperation

STRATEGIC PARTNER

#3 MARKET POSITION | 15% MARKET SHARE3 #1 MARKET POSITION | 35% MARKET SHARE4



CURRENT STRATEGIC ALLIANCE WITH NAVISTAR FOCUSED ON TECHNOLOGY COOPERATION AND PROCUREMENT JOINT VENTURE

OVERVIEW

Technology cooperation: joint powertrain – common powertrain systems give Navistar access to excellent powertrain technologies and allow the TRATON GROUP to benefit from higher volumes

Technology cooperation: future technologies – cooperation in many aspects of future commercial vehicle development

Procurement JV – fully operational procurement JV to pursue joint global sourcing opportunities

Access to North American market – cooperation and equity stake allow the TRATON GROUP to capture a share of North American profit pool

OBJECTIVES

1 As of December 31, 2020

• Strategic alliance established in 2016

• TRATON GROUP currently holds 16.7%1

• TRATON can nominate two persons to Navistar's Board of Directors: TRATON's current nominee is Christian Schulz and the other TRATON nominee position currently remains open



STRATEGIC PARTNERSHIP WITH SINOTRUK FOCUSED ON TECHNOLOGY COOPERATION AND PROCUREMENT SYNERGIES

OVERVIEW

Technology cooperation – joint efforts in areas ofpowertrain, new technologies

Procurement synergies – sourcing synergies targeted through joint scale

OBJECTIVES

1 As of December 31, 2020

Localization of MAN truck – intention to localize MAN heavy-duty truck in world’s largest market

• Long-term strategic partnership between MAN and Sinotruk established in 2009

• MAN TGA Truck technology including powertrain localized under SITRAK brand

• MAN holds 25% + 1 share1 in Sinotruk



OVERVIEW AND OBJECTIVES OF COOPERATION AGREEMENT WITH HINO

OVERVIEW OBJECTIVES

• Strategic long-term partnership agreedin April 2018

• Alliance Board based on Strategic Cooperation Framework Agreement

• October 2019: procurement joint venture established

• October 2020: e-mobility products jointventure started

E-Mobility cooperation, shared development efforts, and combined marketing of products – Hino with largest running fleet of hybrid commercial vehicles in the world

Procurement joint venture – Joint venture aims at realizing synergies in global procurement for a wide range of parts and technologies

Technology cooperation – Focus on possibility of joint utilization of existing technologies such as powertrain and joint development of innovative technologies

Utilize complementary know-how – Hino with focus on light- and medium-duty trucks complements the TRATON GROUP’s innovation power in heavy-duty segment



Note: HVO = hydrogenated vegetable oil; BEV = battery electric vehicle 1 Scania and Rio Tinto trialing autonomous truck in Australia 2 Based on a company comparison with other offerings in the market 3 In October 2019, Bosch, CATL, Moura, Semcon, Siemens, Meritor, and Eletra created the new e-Consortium for the manufacturing of the first Brazilian electric trucks; the first mass-produced truck will be the 14-ton e-Delivery and full-scale production is scheduled to start in 2021.

CUSTOMER-FOCUSED INNOVATION: NEED TO BE PREPARED FOR “ACE”

Sold electric solutions and new e-Consortium3

Autonomous transport system in customer operation1

Autonomous mining system

Large connected fleet

Utilization of collected data for service offering

Connected vehicles on the road

RIO, Scania Flexible Maintenance, MAN Digital Services

Broadest range of alternative fuel technologies2

Here and now solutions

VWCO e-Delivery

HVOEthanol

Biogas

Natural gas

Hybrid

BEV

Testing of automatedand autonomous driving

trucks in real use

MAN Truck & Bus & HHLA(Hamburger Hafen und Logistik AG)

750k+Dec-20

450k+Dec-18 FCEV



Autonomous Transport Solutions Mining Pilot

Complexity

Safety driver, no dynamic

obstacles

2018

Safety driver, with dynamic

obstacles

2019e

No safety driver

2020e

Autonomous operation

2021e+

PROJECT MINING SYSTEM

New Scania AXL presented on Innovation Day 2019. Autonomous vehicles been operating in real-life conditions at Rio Tinto´s mining operations in Australia since August 2018.

PROJECT HAMBURGER HAFEN

UND LOGISTIK AG (HHLA)

Testing of automated and autonomous driving trucks in real use. Field trials at the Hamburg Container Terminal.

HUB2HUB PROJECT WITH TUSIMPLE

Scania tests self-driving trucks in motorway traffic on the E4 motorway between Södertälje and Jönköping.

THE TRATON GROUP ALREADY HAS MULTIPLE SOLUTIONS FOR AUTONOMOUS DRIVING ON THE WAY



Today2

750,000+

2025E+

>1.3m

Fleet Care – uptime solution for entire fleets (with uptime guarantee)

FMP – Scania-connected services portal

Remote Diagnostics –boosting uptime for each vehicle

Scania Zone – position-based service for automatic vehicle adjustment

Almost every Scania truck and MAN T&B Euro VI heavy-duty and medium-duty truck1

will be connected from 2019 onwards

1 All MAN T&B Euro VI HDT and MDT for EU-28+2 region plus selected retrofits 2 As of December 2020

MAN Maintenance

Cloud-basedmaintenance data

Proactive maintenance increasing vehicle

availability

MAN Perform

Driver performance analytics

Remote download of tachograph

data

MAN DIGITAL SERVICES

Number of connected trucks in operation MAN T&B service offering – selected examples SCANIA service offering – selected examples

MAN Service Care

MAN Compliant

VARIETY OF CONNECTED SERVICE SOLUTIONS INTRODUCED



COMMON BASE ENGINE (13L) COMPATIBLE WITH CONVENTIONAL AND ALTERNATIVE FUELS


IN THE SHIFT TO ALTERNATIVE FUELS, TRATON EXPECTS TO BENEFIT FROM ITS BROAD RANGE OF ALTERNATIVE FUEL SOLUTIONS

Theoretical CO2 reduction potential

UP TO 15% NATURAL GAS

UP TO 85% BIO DIESELFAME

UP TO 90% BIO GAS

UP TO 90% HVO

UP TO 90% ETHANOL

90% PLUS HYBRID & HVO

1 More than half of the energy is converted into mechanical energy

COMMON BASE 13L ENGINE (CBE) – PART OF OUR JOINTLY DEVELOPED HD POWERTRAIN PLATFORM

• More than 50% brake thermal efficiency1

• Designed to address expected future emission legislation

• Expected to be installed in about 50% of TRATON's HD trucks per year from 2025 onwards


TCO parity1Indicative potential timeframe forbroader market adoption in Europe

1 TCO parity: TCO of an electric vehicle equals the TCO of a vehicle with a conventional powertrain.

2035e2030e2020 2025e

BUSES & COACHES

TCO parity drives electrification penetration

Heavy duty

Medium & light duty

City bus

Coach

TRUCKS

ELECTRIFICATION DRIVEN BY TCO AND REGULATION –FASTEST ADOPTION FOR CITY BUSES



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.


OUR BRANDS FOCUS ON E-MOBILITY LEADERSHIP


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


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

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).

2021 / Corporate Communications / Company Presentation Note: vehicles in regular operation or in practical trials (including concept vehicles)

Fully invested in the future: new truck lines with BEV, FCEV product solutions.

PRODUCT HIGHLIGHTS IN ELECTRIFICATION 2020

October 2020

VWCO to deliver first 100e-trucks to Ambev in 2021

September 2020

Scania introduces firstelectric truck range

May 2020

Scania delivers 75 batteryelectric trucks to ASKO

May 2020

MAN Lion's City 18Ecelebrates sales launch

August 2020

Scania first German e-road trialfully operational




AGENDA




04. Sustainability


TRANSACTION OVERVIEW

• Cash acquisition of 83.3% of outstanding Navistar common shares

• Transaction structured as one-step merger

• The two major Navistar shareholders2 supportive of transaction

STRUCTURE

FINANCING

• Fully committed transaction financing by Volkswagen AG

• Transaction envisaged to be refinanced via capital markets

• TRATON committed to maintaining an investment grade rating

TIMING • Closing expected mid 2021 subject to regulatory approvals and customary closing conditions

VALUE • Equity purchase price of USD 3.7 bn based on USD 44.50 per share

• Access more than 75% of global truck market profit pools

• Deliver on Global Champion Strategy

• Leverage powertrain components across brands to generate significant cost savings in years to come

• Achieve a well-balanced and global footprint with complementary geographies

ACQUISITION RATIONALE

NAVISTAR AT A GLANCE

• No 4 in US market for trucks; long history since 1831

• Revenue of USD 11.25 bn and adjusted EBIT of USD 689 mn in fiscal year 20191

• More than 1,000 dealers

1 Adjusted EBIT: calculated as adjusted EBITDA - depreciation and amortization; FY 2019 as of Oct. 31, 2019. 2 i.e. . certain shareholders of Navistar affiliated with Carl. C. Icahn with a stake of approx. 16.8% and certain shareholders of Navistar affiliated with Mark H. Rachesky with a stake of approx. 16.4% (each as of 22 January 2021).



STRATEGIC ALLIANCE FOCUSED ON TECHNOLOGY COOPERATION AND PROCUREMENT JOINT VENTURE, INCREMENTAL SYNERGY POTENTIAL

1 Current stake as of the end of September 2020 amounts to 16.7%.

Technology Cooperation: Joint Powertrain – common powertrain systems give Navistar access to excellent powertrain technologies and allow the TRATON GROUP to benefit from higher volumes

Technology Cooperation: Future Technologies –cooperation in many aspects of future commercial vehicle development

Procurement Joint Venture – fully operational procurement joint venture to pursue joint global sourcing opportunities

Access to North American Market – cooperation and equity stake allow the TRATON GROUP to capture a share of North American profit pool

Almost four years of partnership Objectives

Strategic partnership and purchase of 16.6%1 stake in Navistar announced in September 2016



ACQUISITION RATIONALE: CREATION OF A GLOBAL CHAMPION

Export business

Access more than 75% of global truck market profit pools

Deliver on Global Champion Strategy

Leverage powertrain components across brands to generate significant cost savings in the years to come

Achieve a well-balanced and global footprint with complementary geographies



ACCESS MORE THAN 75% OF GLOBAL TRUCK MARKET PROFIT POOLS1

Access to attractive North American market

Latin America

~5%

NAFTA ~35%

Europe/Russia ~35%

Strong market position of Scania, MAN, and VWCO

Share of global profit pool 2030e2

…

Strong market position of Navistar

Asia/MEA ~25%Export

business

Source: McKinsey & Company 1 Global profit pool 2030: ~€17 bn 2 Profit pool of truck industry > 6t (2030e)



DELIVER ON GLOBAL CHAMPION STRATEGY

26

(standalone)

(combined)

Industrial Business sales revenue (fiscal year 2019, € bn)

1

#4#1

#1

Combined ranking per region (sales in units)

Source: Company information, own calculations1 Trucks and Buses. 2 Includes Truck and Parts as per Navistar Form 10K, October 31, 2019; FX €/USD of 1.13 3 Trucks and Buses;FX €/SEK of 10.58 4 Trucks, Parts and Other; FX €/USD of 1.12 5 Commercial and Specialty vehicles segment of CNH Industrial; FX€/USD of 1.12

Daimler1

Volvo3

PACCAR4

IVECO5

45

36

29

26

22

9

102



Regulatory approvals expected in H1 2021

Closing expected mid-2021

Signing and announcement of merger agreement

on November 7, 2020

Navistar shareholder approval received at

Navistar Annual Meeting on March 2, 2021

STATUS AND NEXT STEPS WITH NAVISTAR



AGENDA




04. Sustainability



TRATON GROUP SUSTAINABILITY – OVERVIEW

TRATON GROUPCorporate Sustainability

Corporate Sustainability at MAN

T&B/VWCO

Corporate Sustainability at Scania

Note: MAN comprises MAN T&B and VWCO. 1 The global reporting initiative (GRI) is an international independent standards organization that sets out principles and indicators for measuring and reporting economics, environmental and social performance.2 Nonbinding United Nations pact to encourage businesses worldwide to adopt sustainable and socially responsible policies, and to report on their implementation.

• ESG aspects are already deeply anchored at TRATON’s brands Scania and MAN with transparent sustainability reporting on brand level according to GRI standards1

• Sustainability is an integral part throughout the entire TRATON GROUP

• TRATON Sustainability Board established, which acts as

- forum to develop and decide sustainability matters at TRATON GROUP level by defining minimum-standards for the TRATON GROUP and

- platform to encourage cooperation, foster best practices, and enable knowledge-transfer in the TRATON GROUP

• Due to decentralized organization of the Group the brands set priorities, resources, and methods to ensure fit to culture, strategy, regulatory authorities, and other key stakeholders

• Materiality matrix analysis is used to identify and evaluate the most material sustainability action fields. Focus topics for TRATON to be derived from materiality matrix analysis performed at brand level based on aligned dimensions

• Commitment to UN Sustainable Development Goals as common basis

• Scania and MAN are participant and signatory of UN Global Compact2, respectively



Three pillars for sustainable transport.Doing the right things

Responsible business. Doing things right

Sustainable transport KPIs

• Size of connected fleet• BRT bus registrations

Environmental footprint

Diversity and inclusion

Health and safety

Human and labour rights

Business ethics

Community engagement

1

2

3

4

5

6

Science Based Targets initiative:

Scania as first major manufacturer of heavy-duty commercial vehicles to have its climate targets officially approved.

Scania is committed to achieving the Paris agreement goals of limiting global warming to 1.5°C above pre-industrial levels.

Scania will cut CO2 emissions from its own operations (Scope 1+2) by 50% by 2025 (2015)and reduce emissions from its products (Scope 3) by 20% by 2025 (2015).

Energy efficiency

• Ecolution by Scania• Driver training and coaching• Maintenance with flexible plans

Renewable fuels and

electrification

• Sales of alternative fuels and electrification

Smart and safe

transport

DRIVING THE SHIFT TOWARDS A SUSTAINABLE TRANSPORT SYSTEM

Targets for several business areas Selected target

Strategic sustainability key areas

Reducing CO2 emissions People sustainability Circular business

Green Bond Framework (rated “Dark Green” by CICERO Shades of Green)

SUSTAINABILITY – SCANIA



SUSTAINABILITY – MAN T&B/VWCO

STRUCTURED MULTI-STEP APPROACH TO DERIVE SUSTAINABILITY ACTION FIELDS – MATERIALITY ANALYSIS

SUSTAINABILITY ACTION FIELDS

• Analysis and prioritization of potential action fields

• Alignment of action fields with stakeholders

• Stakeholders include suppliers, customers, NGOs, universities, auto OEMs, representatives of cities, and insurance companies

Identification of potential fields of action for MAN T&B/VWCO

Assessment by external stakeholders

Prioritization by dedicated corporate sustainability council

Finalization of sustainability topics with corporate strategy

• Focus on global challenges

• Concrete objectives

• High business impact

• Alignment with corporate strategy

• Sustainability action fields linked to existing / future programs of corporate functional strategy

Sustainability strategy fully integrated in the corporate functional strategy

CLEAN, SAFE, CARING. DRIVING RESPONSIBLE TRANSPORT

Responsibility forProducts

Responsibility forProduction Responsibility for

Supply Chain

Responsibility forPeople

Responsibility forSociety and Integrity

1

2

3

4

• Reducing greenhouse gas emissions over the product life cycle

• Reducing pollutant emissions

• Improving road safety

• Sustainable mobility services

• Reducing greenhouse gas emissions from production and logistics

• Reducing pollutant emission

• Adapting to climate change

• Relevance of issuing CSR standards

• Responsible handling of conflict minerals

• Reviewing human and employee rights in the supply chain

• Record of CO2 emissions in the supply chain

• Holistic health management

• Needs-based vocational training that is fit for the future

• Working world of the future –designing new forms of work

• Future-proof talent management

• Exemplary compliance and risk management

• Open stakeholder dialogue

• Constructive dialogue with policymakers based on facts



Source: ISS ESG. As of August 19, 2020

• Status: Prime

• Rating: C+

• Decile Rank: 1

• Transparency Level: Very high

Key results

A.1 Staff and Suppliers B-

A.2 Society and Product Responsibility C+

A.3 Corporate Governance and Business Ethics B

A. Social and Governance Rating (40%) C+

B.1 Environmental Management B-

B.2 Product and Services C-

B.3 Eco-efficiency A-

B. Environmental Rating (60%) C+

Highlights

• Rating puts TRATON in the top 14% of the industry (269 machinery companies)

• Eco-efficiency category: A- “very good”

• The overall transparency level is ranked “very high”

Rating categories in detail

TRATON SE – ISS ESG CORPORATE RATING



Documents

TRATON GROUP...2021/03/22 · lines (TGX, TGS, TGM, TGL) NTG NEW TRUCK GENERATION NEW DELIVERY & METEOR Launch of preceding truck generation 1995 (4-Series) 2005 (Delivery) 2000 (TGA)