TRATON Roadshow Presentation - Group Investor Relations - March 2023
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TRATON Roadshow Presentation Group Investor Relations – March 2023
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 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.
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.
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 in graphs, data shown in different graphs are not comparable.
Roadshow Presentation March 2023 2
Agenda
1. TRATON GROUP Overview
2. Strategy „TRATON Way Forward“
3. Business Performance 2022 & Outlook
Roadshow Presentation March 2023 3
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
305,485 assembly sites worldwide
Sales
in 15 countries on
(units trucks, buses & vans)
4 continents
Note: Data based on Full Year 2022 results 1 As of December 31, 2022
Roadshow Presentation March 2023 4
Four strong global brands under one roof Roadshow Presentation March 2023 5
Major milestones for TRATON GROUP
2015 2019 2021 2021+
Establishment of Successful IPO Acquisition New
VW Truck & Bus of TRATON SE of Navistar TRATON Strategy
2018 2021 2021 2022
Re-branding/ Squeeze-Out MAN SE, Introduction Charging JV with
new identity realignment MAN T&B of new Daimler Truck
Group powertrain & Volvo Group
Roadshow Presentation March 2023 6
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%
Roadshow Presentation March 2023 7
Production sites around the globe
13 sites
8 sites
5 sites
2 sites
Roadshow Presentation March 2023 8
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%
10% Truck & Bus
Navistar 7%
South
Sales &
America
Services
(excl. Brazil)
25%
5%
EU27 +3 MAN
Brazil (excl. Germany) Truck & Bus
20% 27% 28%
North America 1
(excl. USA) Scania
5% Vehicles & TRATON Operations
USA
Services 97%
22%
37%
305 k units sold €40.3 bn sales revenue
Note: TRATON including Financial Services, excl. consolidation and Corporate Items; rounding differences possible.
Roadshow Presentation March 2023 9
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 result (€ bn) Adjusted return on sales (%)
2.1
40.3 1.9 7.0
1.7 1.6 6.4
30.6 5.2 5.1
25.9 26.9
22.6
0.1 0.6
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Roadshow Presentation March 2023 1 2021 figures include Navistar only for second-half year due to consolidation from July 1, 2021. 10Agenda
1. TRATON GROUP Overview
2. Strategy „TRATON Way Forward“
3. Business Performance 2022 & Outlook
Roadshow Presentation March 2023 11TRATON Way Forward
Full focus and commitment on execution along strategic framework
Decarbonization & Circularity
Responsible
People & Diversity
Company Governance & Ethics
Performance-driven
Value Navistar as part of TRATON family
Creation TRATON goes China
Business Model Expansion
TRATON
Partnership Culture
Accelerated! Embrace Digital
Strategy
Execution &
Governance
Roadshow Presentation March 2023 12Responsible Company
Make responsible behavior a
top priority in everything we do
Responsible
Company
Decarbonization & Circularity
People & Diversity
Strategy Execution Governance & Ethics
& Governance
Value TRATON
Creation Accelerated!
Roadshow Presentation March 2023 13Responsible Company
We are fully committed to the Paris Agreement
Truck and Bus
Scope -50% -70% -28/-19% -20%
1+2 t CO2e t CO2e
(2030 vs. 2019)1
Electricity/Gas usage
(2022 vs. 2018)2
Energy intensity improvement
(2025 vs. 2015)1 (2030 vs. 2018)3
Well to wheel Well to wheel Tank to wheel
Scope
35
-20% -28% -24/-25%
g CO2e/vkm g CO2e/vkm g CO2e/ton-mile
(2025 vs. 2015)1 (2030 vs. 2019)1 (2027 vs. 2017)4
All our brands have validated science-based targets or are in the process on obtaining those
1 Science based approved target 2 Company specific target - energy efficiency targets with regards to electricity and natural gas usage at the Resende manufacturing plant 3 Company specific target - energy intensity is an energy
efficiency metric modeled by the USDOE using its Energy Performance Indicator model at four US facilities 4 Regulatory target - based on EPA Phase 2 GHG emission reduction targets for tractor combinations (-25%) and for
vocational vehicles (-24%) – reduction targets are industry targets and exact reduction need per OEM will depend on sold vehicle mix 5 Downstream
Roadshow Presentation March 2023 14Responsible 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 mix
Source: Scania estimates
Roadshow Presentation March 2023 15Responsible Company
Our strategic focus is underlined by a comparison of system
efficiency between BEV and FEV
Production Refueling Operation
Electrical 100%
energy
distribution &
inversion AC/DC mix of slow & fast charging DC-AC, engine
& transmission
90% 90% 90%
BEV
efficiency efficiency efficiency
75% energy
Chemical
remaining
energy
Electrical 100%
energy
distribution
DC-AC, engine &
transmission
FCEV
70% 80% 45%
efficiency efficiency efficiency
electrolysis
Chemical
energy
transport & storage
FC stack + compressor & DC-DC
25% energy
remaining
Roadshow Presentation March 2023 16Responsible Company
The cost distribution will change significantly
with fully electric trucks
Cost distribution electric long-haul
Cost distribution of a typical heavy-duty truck ~2025-30
long-haul heavy-duty truck - today
Savings
potential Energy
incl.
infrastructure
Overhead Electric trucks
R&M
Energy
incl.
yield strong
infrastructure
reduction
in energy
Driver consumption
Vehicle
Driver Cost increasing with e-mobility
Cost decreasing with e-mobility
R&M
Energy is the most crucial cost driver – energy cost advantage is
the key to quick market ramp-up of electric trucks
Roadshow Presentation March 2023 17Responsible 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
Roadshow Presentation March 2023 18Responsible 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
Roadshow Presentation March 2023 19Responsible Company
TRATON’s electric vehicles business evolving
Incoming orders of Unit sales of fully All TRATON brands with BEV products
fully electric vehicles electric vehicles across major applications/weight classes
(units) (units)
FY 22 FY 22
2,366 1,740
744
586
554 542 526
487 Scania electric bus Navistar electric bus VWTB electric truck Scania electric truck
397 410 417 424 412 (Citywide LF) (IC Bus electric CE Series) (e-Delivery) (25 P BEV)
169
Q3 Q4 Q1 Q2 Q3 Q4 Q3 Q4 Q1 Q2 Q3 Q4 Navistar electric truck MAN electric van MAN electric bus MAN electric truck
21 21 22 22 22 21 21 21 22 22 22 22 (International eMV) (eTGE) (Lion´s City E) (eTGM)
Roadshow Presentation March 2023 20Responsible Company
High-performance charging network for Europe
>1,700 public charging points
€500 mn investment (jointly)
Milence Joint Venture operational since Network will be open and accessible to
July 2022 all brands
Independent management team in place Intended to enhance customer confidence
Core focus on heavy-duty long-haulage Supporting EU’s transformation to
(45-minute charging window) climate-neutral transportation
Roadshow Presentation March 2023 21Responsible Company
Electrification will impact how we do repair & maintenance
but also will 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 based on value for the Battery recycling and
Win repair/maintenance customer (e.g. pricing uptime) reuse
for fleets done in-house
Additional financing Connectivity based solutions
Different maintenance but opportunities for >1 M connected vehicles
similar repair requirements
Increase
3
of ICE and BEV
Do repair/maintenance service
for new components portfolio
2
(e.g. battery system) Price customer
solution
Win volume for
1 e-mob repair/
maintenance
Roadshow Presentation March 2023 22Responsible Company
TRATON to continue path to decarbonization in 2023
with tangible steps in product, 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 large series
battery pack plant at MAN in
Nuremberg/Germany.
Charging JV Milence to take
first charge points operational.
Roadshow Presentation March 2023 23Value Creation
Focus on sustainable value
creation for our stakeholders
Responsible
Company
Performance-driven
Navistar as part of TRATON family
Strategy Execution TRATON goes China
& Governance
Value TRATON
Creation Accelerated!
Roadshow Presentation March 2023 24Value Creation
Creating value for our stakeholders
1 2 3
China important
Successful integration growth market
Performance-driven of Navistar
Brand performance Integration of Navistar and China as important future profit
programs, brand cooperation realization of its full potential pool and a growth market for
and performance culture TRATON GROUP
Roadshow Presentation March 2023 25Value Creation
Ambitious targets for each of our brands
Strategic
RoS
target
12% 8% 8% 9%
Fully committed Realignment program Volume growth and Deliver profitable
to sustainability & topline strong products performance
improvement
More high-margin Higher margin by new Benefit from Group
Focus
services Leveraging new truck heavy-duty portfolio
topics Dealer performance
generation expansion
Growing in China improvement
Shift to zero- Continuous focus on
emissions efficiency
Expansion of vehicle services TRATON GROUP Modular System Captive Financial Services
Roadshow Presentation March 2023 26Value 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.
Personnel measures on track.
Reacting flexibly to changes in
environment: Measures for
profitability improvement in
bus business initiated.
Roadshow Presentation March 2023 27Value 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 that drive change towards a
global experience more sustainable future
Leveraged TRATON’s balance sheet to Improve profitability to increase company
refinance debt with lower finance costs returns and shareholder value
Established a basis for next-generation Leverage Group technology and expand
mobility platforms business models to grow revenue streams
Roadshow Presentation March 2023 28Value 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 China
Roadshow Presentation March 2023 29TRATON Accelerated!
Shape our role in the future
logistics ecosystem
Responsible
Company
Business Model Expansion
Partnership Culture
Strategy Execution Embrace Digital
& Governance
Value TRATON
Creation Accelerated!
Roadshow Presentation March 2023 30TRATON 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 Autonomous routes Integrated in overarching
systems
Additional services
Monitoring and remote
maintenance function
Need to develop ACE platform as key enabler
1 ACE = Autonomous Connected Electrified
Roadshow Presentation March 2023 31TRATON Accelerated!
We build a solution ecosystem around our customer
Administration
Transport planning Charging
Reports & analytics Transport facilities
Real-time tracking management
Route & flow optimization En-route
Vehicle data & telematics
Fleet Mobility Added services
Cost optimization management Service Charge point reservation
Vehicle data/alerts
Provider Payment
Platform Charging availability
Destination
Energy need planning
Charging data/alerts Charging
Fleet charging strategy/plan management
Routing
Depot
Fleet manager En-route
interface planning interface
Truck driver
interface
Roadshow Presentation March 2023 32TRATON Accelerated!
TRATON FS – Global multi-brand captive finance business
leveraging existing structures
Brand specific front office
Common back office
Increased funding capabilities
Roadshow Presentation March
January
2023
2023 33TRATON Accelerated!
TRATON Financial Services to go live in 2023
Preparations for launch of
TRATON FS nearly completed, Current setup
most regulatory approvals TRATON SE
received and decisions taken.
MAN T&B Navistar VWTB Scania
Successful global Scania FS
operation will be building the FS via partner FS mostly via partner FS via partner Captive FS
foundation and backbone of
TRATON FS.
Future setup
Expansion of captive FS offering TRATON SE
for Navistar from Q4 2023.
Intention to also operate FS MAN T&B Navistar S&S VWTB Scania V&S TRATON FS
for MAN and VWTB in future.
Roadshow Presentation March 2023 34TRATON Way Forward strategy guiding path towards the
future – strong focus on execution
Responsible
Company
Strategy Execution
& Governance
Value TRATON
Creation Accelerated
!
Roadshow Presentation March 2023 35Strategy 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
offering & ensure long-term Differentiate via balanced performance steps
competitive advantage
Roadshow Presentation March 2023 36Strategy 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 efficiency2
Ready for Better efficiency,
60%
Over
tomorrow’s reliability and
common components emissions sustainability
in the engine standards
of the truck costs Increased
are attributable to Equipped for service and
renewable fuels solution offerings
the drivetrain
1 Figure based on vehicle validation. 2 Fuel economy comparison based on the first-generation International A26 engine to the new S13 Integrated
Powertrain, together with the latest updates to the LT Series truck. Actual results may vary.
Roadshow Presentation March 2023 37
.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 common.
Cross-brand Product
Management and global
Group R&D set up.
Roadshow Presentation March 2023 38Strategy 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 efficiency1 and enhanced
uptime and services.
Expansion and technological
upgrade of Huntsville/Alabama
site.
1 Fuel economy comparison based on the first generation International A26
engine to the new S13 Integrated Powertrain, together with the latest
updates to the LT Series truck. Actual results may vary.
Roadshow Presentation March 2023 39Strategy Execution & Governance
Implementing new steering philosophy to support
roll-out of TRATON Modular System
Establishment of Truck Board
reflecting Group responsibilities
for Product Management, R&D,
Procurement and Production.
New steering structure to
strengthen collaboration,
coordination and governance
crucial for roll-out of TRATON
Modular System.
Intersection between brands
and industrial operations lays
foundation for sustainable value
creation and synergies.
Roadshow Presentation March 2023 40Strategy 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 desired PRINCIPLES
results and ultimately achieve
our goals. METHODS
All employees to adopt and
live the values within and RESULTS
across the brands.
RESPONSIBILITY TEAM SPIRIT
Roadshow Presentation March 2023 41Strategy Execution & Governance
More performance steps Faster time to market,
and more customer one integration, then
value to all brands “plug & play” for brands
One
strong Group
delivering
outstanding
customer
value
Lower product/component/ Afford necessary
system cost as well as technology
integration cost investments
Roadshow Presentation March 2023 42Stringent 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
TRATON GROUP TRATON GROUP
2022 TARGET
2024
Roadshow Presentation March 2023 43Building 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 the brands execution of realignment program;
progressing according to plan
Efficiency gains Earnings resilience
Sharing R&D costs across the brands and Sales revenue streams and cash flow less
leverage scale thanks to common key cyclical thanks to higher share of services
components (e.g. CBE) reducing complexity business and financial services; diversified
and cost per unit and improved customer share in global profit pools and improved
value fix cost ratio
Significant self-help potential with strong focus on efficiency & execution
Roadshow Presentation March 2023 44TRATON’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
deleveraging
Optimized of TRATON
Working Capital Dividend 30 to 40% balance sheet
Management of earnings after tax
No major M&A, but active portfolio management
Roadshow Presentation March 2023 45Why 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
Substantial potential from leveraging know-how of brands and TRATON GROUP
Modular System while driving the transformation towards a sustainable future
Clear plan and commitment to execute towards ambitious 9% return on sales target
and an efficient balance sheet to drive shareholder returns
Roadshow Presentation March 2023 46Agenda
1. TRATON GROUP Overview
2. Strategy „TRATON Way Forward“
3. Business Performance 2022 & Outlook
Roadshow Presentation March 2023 47Robust performance
in a challenging environment
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)
Roadshow Presentation March 2023 48Business environment 2022
Severe, yet gradually
improving bottlenecks Robust truck markets defying
in global supply chains high economic uncertainty
War in Ukraine hitting Significant inflationary
vulnerable economic pressures and resolute
post-COVID-19 recovery action of central banks
Roadshow Presentation March 2023 49UPDATE
Continued strong customer demand –
restrictive order book management
Incoming orders & Unit sales (k units)
110
100
90
80
70
60
50
40
30
20
10
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2019 2020 2021 2022
Roadshow Presentation March 2023 50Strongly improved unit sales and very high order book
Incoming orders Unit sales
(k units) (k units)
FY 22: 334.6 FY 22: 305.5 Incoming orders on high level with book-
(-7%) (+12%)
to-bill of 1.1x in FY 22: order acceptance
-14% still restrictive, tightly managing supply
+16%
95.6 chain and input costs.
91.7 92.0 88.3
78.4 79.8 High order backlog covering vast majority
76.2
68.6 67.8 69.5
of 2023 production.
Unit sales picking up with strong quarterly
trend, supported by increasing production
levels due to gradual improvement of supply
chain.
Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4
21 22 22 22 22 21 22 22 22 22
Roadshow Presentation March 2023 51Substantial top-line growth supported by all brands
Sales revenue
(€ bn)
FY 22: 40.3
(+32%) Sales revenue increased by nearly one third
to more than €40 bn for the first time.
32%
11.8
Dynamic quarterly revenue trend due to
10.6
9.5 higher unit sales, favorable price/mix and
8.9 8.5
strong Vehicle Services business across all
brands.
Vehicle Services with double-digit
percentage growth, supported by high
1.9 22% 2.0 24% 2.1 23% 2.2 21% 2.2 19%
utilization of customer vehicles and
Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 increased fleet ages.
Vehicle Services business
Roadshow Presentation March 2023 52Positive earnings trajectory throughout 2022
Adj. operating result Adj. RoS
(€ mn) (%)
FY 22: 2,071 FY 22: 5.1 Adjusted operating result significantly up
(+472) (-0.1 pp)
YoY, benefiting from higher volumes,
+448 +3.1 pp price/mix compensating strong input cost
724 6.1 headwinds.
5.2 Profitability recovering in second half-year,
549 4.7
4.2 yet still held back by selective supply chain
402 396
3.1 disruptions as well as relatively low utilization
277 and fixed cost absorption.
Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4
21 22 22 22 22 21 22 22 22 22
Roadshow Presentation March 2023 53Q4 2022 performance and key drivers by brands/segments
Financial
Services
Sales revenue 4,645 3,511 2,861 654 361
(in € mn, YoY) (+26%) (+20%) (+53%) (+33%) (+28%)
Adj. RoS 10.5% 1.8% 5.9% 9.3% 23.7%
(YoY) (+2.0 pp) (+1.7 pp) (+5.9 pp) (+1.4 pp) (-5.1 pp)
Key drivers + Strong unit sales + Price + Unit sales + Price + Portfolio growth
improved
+ Growth in Vehicle + Unit sales + Exchange rate + Exchange rate
Services business + Price effects effects
+ Growth in Vehicle
+ Exchange rate Services business + Higher – Lower unit sales – Higher funding
effects production (preparation of costs
– Higher cost for
utilization new regulation)
+ Price/mix material and – Provisions for
energy – Continued supply – Material prices bad debt
– Material prices
chain challenges
– Headwinds from
– Material prices
selective supply
disruptions/tight
logistic capacities
Roadshow Presentation March 2023 54Earnings per share substantially increased
Adjusted operating result to earnings after tax, FY 2022
(€ mn, change vs prior-year)
2,071
(+472)
EPS at €2.28, up
-477 1,564 1,560
(+1,171) (+912) from €0.91 in 2021.
-30 -4
-419 1,141
(27%)1 (+684) Adjustments mainly
related to sale of
activities in Russia.
Adj. Adjust- Other Operating Financial Earnings Income Earnings
operating ments adjust- result result before tax taxes after tax 3
result Ukraine war ments
1 Income tax rate. 2 Proposed dividend per share, subject to approval by the 2023 Annual General Meeting on June 1, 2023. 3 Attributable to shareholders.
Roadshow Presentation March 2023 55UPDATE
TRATON GROUP –
Stringent capital allocation
FY 2022
Primary R&D Capex Dividend per share
TRATON Operations TRATON Operations for 20221
€1.9 bn €1.3 bn €0.70
Primary R&D costs up Investments primarily Increased dividend
by 29%, largely due to in new products, incl. proposed to AGM,
Navistar consolidation. CBE, facility expansions equivalent to 31%
and electrification. payout ratio.
Continued shift towards
future technologies and Capex ratio reduced Dividend policy of
growth. by -0.5 pp to 3.3%. 30 to 40% of earnings
after tax confirmed.
R&D ratio at 4.8%
(-0.1 pp).
1 Proposed dividend per share, subject to approval by the 2023 Annual General Meeting on June 1, 2023.
Roadshow Presentation March 2023 56Strong net cash flow in final quarter 2022, yet with only
small reversal of working capital
Net cash flow TRATON Operations
(€ mn)
709 Positive net cash flow trend towards
year-end 2022 mainly due to improved
operating performance.
139
61
-177 Lower than anticipated effect from release of
working capital in Q4 22 due to continued
supply chain headwinds and logistics
-1,3571 shortages.
€1.4 bn2 working capital build-up in FY 22:
Continued focus on working capital
-1,534 improvement and supply chain management.
Q1 22 Q2 22 Q3 22 Q4 22
1 €937 mn at Scania in connection with EU antitrust proceedings (incl. interest) and Navistar final payments
totaling €420 mn following court approval of the “Profit Sharing Settlement Agreement” and “Krzysiak Action
Settlement Agreement”. These payments negatively impacted cash tied up in working capital by a total of €1.4
bn in the change in provisions. 2 Total change in working capital excluding change in provisions of €1.4 bn
due to payments related to legal proceedings/court approvals at Scania and Navistar.
Roadshow Presentation March 2023 57Net debt position increased due to working
capital and cut-off date effects
Net financial debt bridge, FY 2022
(€ mn)
-2,847
4,171
Purchase price of
-1,950 €0.4 bn received for
-1,694
-571 sale of Scania FS
-672
-3,563 -3,118 Russia following
Debt
related to closing in Jan 2023.
Navistar
acquisition
-1,054
-4,172 -7,735
TRATON Gross Change in Net cash Other Changes TRATON Corporate TRATON
Operations cash flow working flow from due to sale Operations Items Operations
FY 2021 capital1 investing of Russian FY 2022 FY 2022 incl. CI
activities entities FY 2022
1 Incl. payment of €937 mn at Scania in connection with EU antitrust proceedings and Navistar final payments totaling €420 mn following court approval of the “Profit Sharing
Settlement Agreement” and “Krzysiak Action Settlement Agreement”. These payments negatively impacted cash tied up in working capital in the change in provisions.
Roadshow Presentation March 2023 58UPDATE
Main themes in 2023
Global economic output expected to grow
at slow pace; continued inflationary
pressures and high interest rates drag.
Resilient truck market based on high
replacement demand and above-average
fleet ages.
Supply chains continue to gradually ease,
while selected bottlenecks and lack of
logistics capacity further affect deliveries.
Continued input cost inflation, but with
slowing dynamics and more driven by
wages rather than raw materials.
Roadshow Presentation March 2023 59Key truck markets continue to be supportive, while economic
uncertainties remain
400 337 371
k units, > 6t 300 320 Market expectations2 - Above-average fleet age
& high pent-up demand
EU27+31 200 2023e - Robust logistics demand
100
0 -5% – +10% and freight rates
09 11 13 15 17 19 21 23
600
k units, class 6-83
406 - Above-average fleet age
447 Market expectations2
North 400 386
& high pent-up demand
200
2023e - Robust logistics demand
America -5% – +10% and freight rates
0 - New regulation from 2024
09 11 13 15 17 19 21 23
300
k units, > 6t
- Risks in economic
183 Market expectations2
South 200 183 environment
100
156 2023e - Introduction of new
America -15% – 0% CONAMA P8 emission
0 standard
09 11 13 15 17 19 21 23
1 EU27+3 region (EU27 countries without Malta, plus the United Kingdom, Norway, and Switzerland).
2 Includes estimates from different institutes, companies, and data/information services.
3 US and Canada class 6-8, Mexico class 4-8.
Source: Historical data based on own calculations and estimates.
Roadshow Presentation March 2023 60Outlook 2023: TRATON striving to achieve significant
performance improvement
FY 2022 FY 2023
Outlook
Unit sales 305.5 k +5 to +15%
+12%
Sales revenue €40.3 bn +5 to +15%
+32%
Operating RoS 5.1% 6.0 to 7.0%
(incl. PPA, expected to be
(adjusted) (incl. PPA of €317 mn)
~€300 mn)
Net cash flow
€-625 mn €1,300 to 1,800 mn
(TRATON Operations)
Roadshow Presentation March 2023 61Thank you! Contact
TRATON GROUP – Sales revenue and adjusted operating
result by segment
Sales revenue, Q4 2022 (€ mn) Adj. operating result, Q4 2022 (€ mn)
Adj. RoS (∆ YoY)
10.5% 1.8% 5.9% 9.3% 6.8% 23.7% 6.1%
(+2.0 pp) (+1.7 pp) (+5.9 pp) (+1.4 pp) (+2.6 pp) (-5.1 pp) (+3.1 pp)
654 361 11,789
11,559 (+28%) 86
2,861 (+33%) (+31%)
(+32%)
(+53%)
-111 -131 61 0 782 PPA
168 (€-90 mn) 7241
3,511 -144
(+20%)
64
489
4,645
(+26%)
Scania MAN Navi- VWTB Con- Oper- FS Cor- Group Scania MAN Navi- VWTB Con- Oper- FS Cor- Group
V&S T&B star soli- ations porate V&S T&B star soli- ations porate
S&S dation Items S&S dation Items
1 Including earnings effects of the purchase price allocation (PPA). Excluding, adjusted operating result of €814 mn, adjusted return on sales of 6.9% (+2.4 pp).
Note: Change calculated YoY, Q4 2022 vs. Q4 2021.
Roadshow Presentation March 2023 63TRATON GROUP – Outlook
TRATON GROUP 2022 2023e
Unit sales (units) 305,485 +5-15%
Sales revenue (€ million) 40,335 +5-15%
Adjusted RoS (in %) 5.1 6.0-7.0
TRATON Operations 2022 2023e
Sales revenue (€ million) 39,554 +5-15%
Adjusted RoS (in %) 5.7 6.5-7.5
Net cash flow (€ million) -625 1,300-1,800
Capex (€ million) 1,298 very sharp increase
Primary R&D costs (€ million) 1,892 significant increase
TRATON Financial Services1 2022 2023e
Sales revenue (€ million) 1,294 +10-20%
Adjusted RoS (in %) 23.5 10.0-15.0%
1 Including Scania Financial Services and Navistar Financial Services.
Roadshow Presentation March 2023 64TRATON Management Board
TRATON SE EXECUTIVE BOARD MEMBERS
Christian Levin Annette Danielski Bernd Osterloh
CEO TRATON SE and Scania CFO TRATON SE CHRO TRATON SE
Alexander Vlaskamp Antonio Roberto Cortes Mathias Carlbaum
CEO MAN Truck & Bus CEO Volkswagen Truck & Bus CEO and President Navistar International Corporation
Roadshow Presentation March 2023 65TRATON Investor Relations Team
Lars Korinth Thomas Paschen
Head of Investor Relations Analysts and Investors, Consensus, Private Investors
+49 152 313 73 138 +49 170 907 34 94
lars.korinth@traton.com thomas.paschen@traton.com
Marie Fischhaber Fabian Schimpf
Analysts and Investors
+49 152 256 00 705 +49 172 744 86 99
marie.fischhaber@traton.com fabian.schimpf@traton.com
Contact Navistar:
Margit Hartmann Marvin Kalberlah
Annual General Meeting, Events US Analysts and US Investors
+49 160 369 29 84 +1 630 432 5179
margit.hartmann@traton.com marvin.kalberlah@navistar.com
Michael Lankes TRATON SE
Annual General Meeting, Events Hanauer Strasse 26
+49 89 360 98 328 80992 Munich
michael.lankes@traton.com Germany
www.traton.com LinkedIn | Twitter | YouTube | Instagram
Roadshow Presentation March 2023 66Useful links
TRATON GROUP BRANDS
TRATON Website Scania Newsroom
Investor Relations Website MAN Newsroom
Newsroom Navistar Newsroom
Reports & Presentations VWTB Newsroom
Shares & Financial Figures
Events
Debt & Rating
Sustainability
Corporate Governance
Annual General Meeting
Financial Calendar
Contact & Services 2022 Annual Report
Innovation Hub
Roadshow Presentation March 2023 67Find out more on www.traton.com
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