TRATON (8TRA) Investor presentation summary

Business overview and strategy

• Operates four major brands—Scania, MAN, International, and Volkswagen Truck & Bus—serving global markets with trucks, buses, and light commercial vehicles, supported by a growing financial services arm.

• Focuses on sustainable transport, electrification, and decarbonization, with a clear roadmap for electrified, connected, and automated vehicles.

• Implements a modular system for mass customization, reducing costs and improving product range and group performance.

• Expanded industrial footprint with a new Scania hub in China, integrating local R&D and aiming for 100% renewable energy use.

• Key milestones include the launch of TRATON Financial Services, a joint R&D organization, and a charging JV with Daimler Truck and Volvo.

Financial performance and outlook

• H1 2026 unit sales reached 151,529 (down 1% YoY), with Q2 sales revenue at €11.8bn (up 4% YoY) and adjusted return on sales at 8.1%.

• Adjusted operating result for H1 2026 was €1,539m (up 12% YoY), with profitability supported by timing effects and improved fixed cost absorption.

• BEV unit sales grew 67% YoY in Q2 2026, with incoming orders up 47% YoY, reflecting strong momentum in electrification.

• 2026 outlook narrowed to the upper end: unit sales and sales revenue expected to grow 0–7%, with adjusted operating return on sales between 6.3–7.3%.

• Net cash flow impacted by seasonal working capital build-up and dividend payout, partially offset by proceeds from the Sinotruk sale.

Market trends and operational highlights

• Truck order intake surged in North America (+197% YoY in Q2), with EU and South America also showing positive trends.

• Improved truck market outlook for 2026, with EU27+3 expected to grow up to 7.5%, North America up to 10%, and China stable.

• Operational initiatives include Scania’s €70m investment in French electric truck production, MAN’s new eTGM launch, and digitalization advances in Brazil.

• Financial services business expanding, offering bundled vehicle and financing solutions, and issuing €850m in green bonds and loans.

• BEV cost advantages and changing cost structures are expected to accelerate market adoption of electric trucks.