FULLTEXT DEL 4 AV 6
Årsredovisning 2023
Summarized financial information for Sinotruk (on a 100% basis and thus not adjusted for the equity interest held by TRATON) and a reconciliation to the carrying amounts are presented in the following tables: STATEMENT OF COMPREHENSIVE INCOME € million 2023¹ 2022¹ Sales revenue 9,836 7,863 Earnings after tax from continuing operations 425 309 Other comprehensive income –2 5 Total comprehensive income 423 314 Dividend received 2 25 54 1 Amounts sho wn relate to the period from July 1 of the previous year to June 30 of the year in question. 2 Dividends net of withholding tax BALANCE SHEET € million 12/31/2023¹ 12/31/2022¹ Noncurrent assets 4,072 4,150 Current assets 10,165 10,393 Noncurrent liabilities and provisions 154 180 Current liabilities and provisions 8,414 8,258 Net assets 5,669 6,105 Reconciliation of the financial information to the carrying amount of the equity-accounted investments Net assets 5,669 6,105 Noncontrolling interests 920 1,025 Net assets attributable to shareholders 4,749 5,080 Interest held by TRATON (in %) 25 25 Net assets attributable to the TRATON GROUP 1,187 1,270 Goodwill, effects of purchase price allocation, currency translation differences, and other changes –30 –181 Carrying amount as of 12/31 1,158 1,089 1 Amounts sho wn relate to the reporting period ended June 30 of the year in question. Rheinmetall MAN Military Vehicles GmbH (RMMV) Rheinmetall MAN Military Vehicles GmbH (RMMV), headquartered in Munich, develops, manufactures, and sells logistics wheeled vehicles for military use. The TRATON GROUP holds a 49% equity interest, which is reported in the MAN Truck & Bus segment. Due to the application of the equity method, taking into account local capital market regulations relating to the disclosure of financial information, a reporting period that differs from the TRATON GROUP’s fiscal year by three months is used to account for this company. Summarized financial information for RMMV (on a 100% basis and thus not adjusted for the equity interest held by TRATON) and a reconciliation to the carrying amounts are presented in the following tables: STATEMENT OF COMPREHENSIVE INCOME € million 2023¹ 2022¹ Sales revenue 918 717 Earnings after tax from continuing operations 78 70 Other comprehensive income 2 4 Total comprehensive income 80 75 1 Amounts shown relate to the period from October 1 of the previous year to September 30 of the year in question. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 168 ===== SIDA 169 ===== BALANCE SHEET € million 12/31/2023¹ 12/31/2022¹ Noncurrent assets 126 133 Current assets 744 510 Noncurrent liabilities and provisions 70 77 Current liabilities and provisions 474 321 Net assets 326 245 Reconciliation of the financial information to the carrying amount of the equity-accounted investments Net assets 326 245 Net assets attributable to shareholders 326 245 Interest held by TRATON (in %) 49 49 Net assets attributable to the TRATON GROUP 160 120 Goodwill 10 10 Carrying amount as of 12/31 170 130 1 Amounts sho wn relate to the reporting period ended September 30 of the year in question. Summarized financial information on individually immaterial associates of the TRATON GROUP based on its proportionate interest The carrying amounts of other associates amounted to €42 million (previous year: €30 million) as of December 31, 2023. The following table contains summarized financial information on the other associates; the disclosures relate to the Group’s share of the associates in all cases: € million 2023 2022 Earnings after tax from continuing operations –13 –10 Total comprehensive income –13 –10 Summarized financial information on individually immaterial joint v entures of the TRATON GROUP based on its proportionate interest The carrying amounts of the joint ventures were €114 million (previous year: €79 million) as of December 31, 2023. The following table contains summarized financial information on the joint ventures; the disclosures relate to the Group’s share of the joint ventures in all cases: € million 2023 2022 Earnings after tax from continuing operations –5 2 Total comprehensive income –5 2 21. O ther equity investments Accounting policies: other equity investments Other equity investments include shares in unconsolidated subsidiaries, associates and joint ventures not accounted for using the equity method due to insignificance, and financial investments. The TRATON GROUP has exercised the option under IFRS 9 Financial Instruments to recognize investments in equity instruments that are not held for trading and not measured under IFRS 9 at fair value through other comprehensive income (no recycling) because recognition of gains and losses on these instruments at fair value through profit or loss would not provide any infor - mation about the entity’s performance for the TRATON GROUP. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 169 ===== SIDA 170 ===== The following table contains financial information about other equity investments at fair value through other comprehensive income: Fair value € million 12/31/2023 12/31/2022 Northvolt AB 78 78 H2GS AB 15 14 TuSimple Holdings Inc. 13 24 OneH2, Inc. 12 7 Other investees 22 11 140 134 22. Finan cial services receivables Accounting policies: financial services receivables TRATON Financial Services offers a wide range of financing solutions, normally with maturities of between three and five years, in which the vehicles serve as collateral. The type of financing solution offered often depends on market conditions as well as civil and tax law rules in the country concerned. Customer finance receivables primarily comprise loans granted to direct custom- ers. These loans are collateralized by the underlying vehicles or other liens. Dealer finance receivables mainly include working capital loans to dealers. The loans are collateralized by the underlying vehicles or other liens. Additionally, TRATON Financial Services also acts as lessor in finance leases. The resulting finance lease receivables relate to leases of commercial vehicles. The receivables are recognized at the amount of the net investment in the lease. The lease payments received in the reporting period subsequently reduce the principal and the unearned finance income. Credit risk from lease receivables is accounted for in accordance with IFRS 9. If hire purchase agreements are offered, title passes to the customer at the sale date, but TRATON Financial Services receives collateral in the form of liens. Further information on accounting for finance leases can be found in Note “9. Sales revenue.” Some companies in the TRATON GROUP sell revolving current trade receivables as well as contractually agreed cash flows from leases. Further sales are agreed in specific cases. Asset-backed securities transactions are also carried out at TRATON Financial Services, in which future cash flows from financial services receivables are assigned to structured entities, which then securitize them. If substantially all the risks and rewards of ownership remain with TRATON Financial Services, the financial asset is not derecognized. Instead, a financial liability is recognized in the case of asset-backed securities transactions. In all other cases, other financial lia- bilities are recognized in the amount of the consideration received. For further information on the recognition and measurement principles applicable to financial services receivables and on accounting for credit risk from lease receiv- ables, refer to Notes “35. Significance of financial instruments for net assets, financial position, and results of operations” and “36. Nature and extent of risks arising from financial instruments.” Estimates and management’s judgment: measurement of expected credit losses The TRATON GROUP is exposed to risks from contractual payments. In all major respects, the Group has the right to recover the vehicles underlying the contracts as collateral. The Group has an exposure to loss if the fair value of the collateral does not fully cover the risk exposure to the customer and the customer is unable to fulfill its contractual payment obligations. If possible, the estimates of this loss exposure are derived from past experience, taking into account current market data and rating classes, as well as scoring information. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 170 ===== SIDA 171 ===== FINANCIAL SERVICES RECEIVABLES Carrying amount Carrying amount € million current non- current 12/31/2023 current non- current 12/31/2022 Receivables from the financing business Customer financing 2,162 4,322 6,484 1,856 3,519 5,374 Dealer financing 1,498 5 1,504 1,502 4 1,506 3,661 4,327 7,988 3,358 3,523 6,881 Receivables from operating leases 23 – 23 17 – 17 Receivables from finance leases 1,870 3,440 5,310 1,687 3,038 4,724 5,554 7,767 13,321 5,061 6,560 11,622 The year-on-year increase in customer finance receivables and finance lease receivables is due to the good business performance of the TRATON Financial Services segment. As of December 31, 2023, financial services receivables contained related party balances of €1 million (previous year: €3 million), mainly for rental agreements. RECONCILIATION OF LEASE PAYMENTS FROM FINANCE LEASES € million 12/31/2023 12/31/2022 Undiscounted lease payments 6,064 5,512 Unearned interest income –618 –437 Net investment in the lease 5,447 5,075 Loss allowance for lease receivables –137 –351 Carrying amount 5,310 4,724 Interest income from the net investment in the leases amounted to €303 million (previ- ous year: €260 million) and is reported in sales revenue. Finance leases resulted in a disposal gain of €445 million (previous year: €220 million) in the fiscal year under review. The increase is attributable to a higher volume of finance leases, particularly in Europe, among other things. The following payments are expected in the years shown from expected outstanding undiscounted lease payments arising from finance leases: € million 12/31/2023 12/31/2022 Within one year 2,157 1,939 In one to two years 1,535 1,484 In two to three years 1,124 1,033 In three to four years 713 610 In four to five years 349 279 In more than five years 186 167 Total lease payments 6,064 5,512 As of the reporting date, asset-backed securities transactions implemented to refinance the TRATON Financial Services segment are included in receivables at a carrying amount of €1,122 million (previous year: €843 million). The carrying amount of corresponding financial liabilities is €997 million (previous year: €684 million). The expected payments were assigned to structured entities during the transaction, and collateral with a total amount of €1,122 million (previous year: €843 million) was provided. The asset-backed securities transactions did not result in the receivables being derecognized, as the TRATON GROUP retains nonpayment and late payment risks. In certain cases, it is also able to retransfer receivables from the asset-backed securities structure. The difference between the amount of financial services receivables and the associated liabilities is the result of different terms and conditions and overcollateralization. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 171 ===== SIDA 172 ===== Under certain conditions, parts of the asset-backed securities transactions implemented may be repaid early (clean-up call). In cases where receivables from the asset-backed securities structure are transferred back, the receivables can be assigned a second time or used as collateral in any other way. The bondholders’ claims are limited to the assigned receivables, and the cash inflows arising from these receivables are intended for the settlement of the corresponding liability. As of December 31, 2023, the fair value of the assigned receivables that continue to be recognized in the balance sheet was €1,122 million (previous year €843 million). The fair value of the associated liabilities amounted to €1,000 million (previous year: €684 million) as of that date. The resulting net position is €122 million (previous year: €159 million). 23. O ther financial assets € million 12/31/2023 12/31/2022 Positive fair value of derivatives 337 397 Restricted cash 333 46 Receivables from loans (excluding interest) 85 92 Miscellaneous financial assets 633 576 1,387 1,110 Other financial assets include positive fair values of derivative financial instruments, pri- marily for hedging interest rate and currency risks. The slight decline in positive fair values in the current year is mainly due to interest rate hedging transactions, as interest rates in the eurozone are expected to fall in the long term. Further information on deriv- atives as a whole can be found in Notes “35. Significance of financial instruments for net assets, financial position, and results of operations” and “36. Nature and extent of risks arising from financial instruments.” Restricted cash included €271 million for the gradual acquisition of key aspects of the global financial services business of MAN and VWTB (see Note “7. Acquisitions”). Miscel- laneous restricted cash is mainly used as collateral in asset-backed securities transac - tions. Miscellaneous financial assets include receivables from customers who purchased parts from dealers using a credit card program, claims for refunds, receivables from insurance management, and warranty credits. As of December 31, 2023, other financial assets contained related party receivables of €396 million (previous year: €114 million, prior-period amount adjusted). Of this amount, €84 million (previous year: €89 million) is attributable to receivables from loans. 24. O ther receivables € million 12/31/2023 12/31/2022 Recoverable taxes 1,044 1,045 Miscellaneous receivables 640 698 1,684 1,744 Miscellaneous receivables include €70 million (previous year: €70 million) from sales with a right of return, mainly from sold vehicles for which TRATON will repurchase certain parts at a later date for reconditioning. This also contains prepaid expenses of €464 million (previous year: €481 million). As of December 31, 2023, other receivables contained related party balances of €24 million (previous year: €24 million). Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 172 ===== SIDA 173 ===== 25. Inventories A ccounting policies: inventories Inventories are measured at the lower of cost and net realizable value. Production cost comprises directly attributable production costs and proportionate fixed and variable production overheads. Overheads are allocated on the basis of normal capacity of the production facilities. Borrowing costs are not capitalized. Distribu- tion expenses and general and administrative expenses are not included in pro - duction cost. As a general principle, similar items of inventories are measured using the weighted average method or the FIFO method. € million 12/31/2023 12/31/2022 Raw materials, consumables, and supplies 1,731 1,480 Work in progress 734 847 Finished goods and purchased merchandise 4,957 4,226 Prepayments 24 20 7,447 6,574 Inventories increased by €873 million compared with December 31, 2022. This is mainly the result of the sharp increase in the number of new vehicles. Among other things, this reflects the increase in production at certain brands. In fiscal year 2023, inventories of €37,223 million (previous year: €33,178 million) were recognized in cost of sales at the same time as the sales revenue. Valuation allowances recognized as expenses in the fiscal year under review amounted to €115 million (previ- ous year: €37 million). 26. T rade receivables Accounting policies: trade receivables Trade receivables are initially recognized at the transaction price. Some companies in the TRATON GROUP sell revolving current trade receivables; for further information, refer to Note “22. Financial services receivables.” For information on the sale of receivables to companies in the Volkswagen Group (non- recourse factoring), refer to Note “41. Related party disclosures.” For further infor- mation on the measurement principles applicable to trade receivables, refer to Note “35. Significance of financial instruments for net assets, financial position, and results of operations.” TRADE RECEIVABLES € million 12/31/2023 12/31/2022 Trade receivables from third parties 3,635 3,181 related parties 258 166 3,894 3,348 The increase in trade receivables was due primarily to increased business volume. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 173 ===== SIDA 174 ===== 27. C ash and cash equivalents Accounting policies: cash and cash equivalents Cash and cash equivalents include bank balances and highly liquid financial invest- ments of a temporary nature that are exposed to no more than minor risks of fluctuation in value. The TRATON GROUP’s financial management manages cash pool structures at brand level, wherever legally and economically appropriate and feasible. The TRATON segments manage operational cash themselves. Excess cash in the TRATON segments is managed at TRATON SE level. Cash pool receivables from affiliated companies are reported in cash and cash equivalents. The TRATON GROUP deposits a portion of its excess cash with Volkswagen AG under interest rates in keeping with standard market conditions. Demand deposits are reported in cash and cash equivalents. By contrast, deposits classified as invest - ments are recognized as marketable securities and investment deposits (current) or as other financial assets (noncurrent). Correspondingly, loans and short-term borrowings from Volkswagen AG are recognized as financial liabilities. Deposits with globally positioned banks are also a standard practice. For further information on the measurement principles, refer to Note “35. Signif - icance of financial instruments for net assets, financial position, and results of operations.” CASH AND CASH EQUIVALENTS € million 12/31/2023 12/31/2022 Bank balances 1,441 1,244 Checks, bills, and cash 34 59 Cash pool receivables from unconsolidated affiliated companies 1 1 Receivables from affiliated companies of the Volkswagen Group 255 135 1,730 1,439 In the previous year, cash and cash equivalents amounting to €304 million had been reported in “Assets held for sale.” The entire amount was attributable to the TRATON Financial Services segment. 28. Equity Shar e capital The share capital of TRATON SE amounts to €500,000,000 and is composed of 500,000,000 no-par value bearer shares with a notional value of €1.00 each. All shares are fully paid up and have the same dividend rights. Under Article 6 (2) sen - tence 1 of the Articles of Association, shareholders may not claim delivery of physical share certificates. Authorized capital In accordance with Article 5 (3) of the Company’s Articles of Association, the Executive Board is authorized to increase the Company’s share capital on one or several occasions by a total of up to €200,000,000 by issuing up to 200,000,000 no-par value bearer shares on a cash and/or noncash basis on or before May 31, 2028, subject to the Supervisory Board’s approval (Authorized Capital 2023). The dividend entitlement of new shares can be determined contrary to the provisions of section 60 (2) of the Aktiengesetz (AktG — Ger man Stock Corporation Act). Shareholders must be granted preemptive rights unless the Executive Board makes use of one of the following authorizations to disapply preemptive rights, with the consent of the Supervisory Board. The new shares may also be underwritten by a credit institution or an entity operating pursuant to section 53 (1) sentence 1 of the Kreditwesengesetz Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 174 ===== SIDA 175 ===== (KWG — Ger man Banking Act) or section 53b (1) sentence 1 or (7) of the KWG (financial institution) to be designated by the Executive Board, or by a consortium of such credit or financial institutions, with the obligation to offer them for sale to shareholders of the Company. The Executive Board is authorized, with the consent of the Supervisory Board, to disapply shareholders’ preemptive rights in the following cases: a) T o settle fractions resulting from a capital increase. b) T o the extent necessary to grant holders or creditors of convertible bonds or bonds with warrants, as well as convertible profit participation rights, issued by the Company and/or its direct or indirect majority investees a preemptive right to new shares in the amount to which they would be entitled following the exercise of their options or conversion rights or after meeting their exercise of option or conversion obligations. c) If the new shares are issued against cash contributions and the issue price of the new shares is not materially lower than the quoted market price of existing listed shares of the Company at the date when the issue price is finally determined, which should be as close as possible to the placement of the shares. However, this authorization to disapply preemptive rights applies only to the extent that the notional amount of the share capital attributable to the shares issued with preemptive rights disapplied in accordance with section 186 (3) sentence 4 of the AktG does not exceed a total of 10% of the share capital, meaning neither the share capital existing when this authorization takes effect, nor the share capital existing at the date when this authorization is exer- cised. Shares that (i) are sold or issued, with preemptive rights disapplied, during the term of this authorization up to the date of its exercise on the basis of other authori- zations in direct application, or application with the necessary modifications, of section 186 (3) sentence 4 of the AktG, or (ii) shares that were issued or will be issued, with preemptive rights disapplied, to settle bonds or profit participation rights with con - version or exercise rights or obligations will be counted toward this limit, to the extent that the bonds or profit participation rights were issued during the term of this autho- rization up to the date of its exercise, in application, with the necessary modifications, of section 186 (3) sentence 4 of the AktG. d) T o the extent that the capital increase is implemented to grant shares against noncash contributions, in particular for the purposes of acquiring companies, parts of compa- nies, or investments in companies, or other assets. The Executive Board is also authorized to define further details of the capital increase and its implementation, with the consent of the Supervisory Board. The Supervisory Board is authorized to amend the wording of Article 5 of the Articles of Association fol- lowing the complete or partial implementation of the capital increase from Authorized Capital 2023 or after the expiration of the authorization period, in line with the scope of the capital increase. Contingent capital Additionally, under Article 5 (4) of the Company’s Articles of Association, the Company’s share capital may also be increased by up to €50,000,000 on a contingent basis through the issue of up to 50,000,000 bearer shares (no-par value shares) (Contingent Capital 2023). The sole purpose of Contingent Capital 2023 is to issue new shares to the holders/ creditors of bonds which are issued by the Company or by other companies in which the Company directly or indirectly holds a majority interest up to May 31, 2028, in accordance with a resolution passed by the shareholders under item 10.2 of the agenda for the meet- ing on June 1, 2023, in the event that conversion and/or option rights are exercised or conversion or option exercise obligations are settled or the Company makes use of its right to grant shares in the Company, either in full or in part, in lieu of payment of the respective cash amount. The shares are issued at the conversion or option price to be determined in accordance with the aforementioned resolution. The contingent capital increase will only be implemented to the extent that conversion rights or options are exercised or conversion or option exercise obligations are settled, or the Company exer- cises its right to grant shares of the Company, either in full or in part, in lieu of payment of the cash amount due, and to the extent that other instruments are not used to settle the conversion rights or options. The new shares carry dividend rights from the beginning of the fiscal year in which they are issued. To the extent permitted by law, the Executive Board may, with the consent of the Supervisory Board, determine the dividend rights in derogation of the above and of section 60 (2) of the AktG, including for a fiscal year that has already closed. The Executive Board is authorized to define further details of the implementation of the contingent capital increase, with the consent of the Supervisory Board. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 175 ===== SIDA 176 ===== Capital reserves TRATON SE’s capital reserves of €13,295 million (previous year: €13,695 million) constitute the contributions by Volkswagen AG to TRATON SE, in particular from the contribution of MAN SE and Scania AB. The entire capital reserves of €13,295 million are distributable capital reserves within the meaning of section 272 (2) no. 4 of the Handelsgesetzbuch (HGB ― German Commercial Code). €400 million (previous year: €600 million) was released in the reporting period and transferred to retained earnings. Retained earnings and other comprehensive income The retained earnings of €5,464 million (previous year: €2,964 million) reported as of December 31, 2023, constitute amounts recognized as earnings after tax in prior periods. They also contain the difference between the value of MAN SE shares at the date of their contribution to TRATON SE and the recognized carrying amount of the corresponding assets and liabilities. TRATON SE paid its shareholders a dividend of €0.70 (previous year: €0.50) per share in 2023. This resulted in a total payout of €350 million (previous year: €250 million). As of December 31, 2023, the accumulated other comprehensive income of €–2,777 million (previous year: €–2,791 million) contains the accumulated amounts of transactions rec - ognized in other comprehensive income, in particular currency translation differences, differences from pension plan remeasurements, and the measurement of equity invest- ments. Further information can be found in the statement of comprehensive income. For fiscal year 2023, TRATON SE’s Executive and Supervisory Boards are proposing to the Annual General Meeting to be held on June 13, 2024, to pay a dividend of €1.50 (previous year: €0.70) per share. This proposal corresponds to a total payout of €750 million (pre - vious year: €350 million). 29. Finan cial liabilities The details of noncurrent and current financial liabilities are presented in the following table: € million 12/31/2023 12/31/2022 Bonds 11,576 10,136 Liabilities to banks 1 5,920 5,915 Lease liabilities 1,181 1,209 Commercial paper 1,121 899 Loans and short-term borrowings from Volkswagen AG 797 1,720 Schuldscheindarlehen 700 700 Loans from Volkswagen Group of America Finance 359 – Loans from Volkswagen International Luxemburg – 500 Loans and miscellaneous liabilities 1 50 53 21,704 21,131 1 P rior-period amounts adjusted to reflect the current presentation Financial liabilities from bonds mainly relate to European Medium Term Notes (EMTNs). TRATON has a €12,000 million European Medium Term Notes program (EMTN program) in place. TRATON Finance Luxembourg S.A., Strassen, Luxembourg ( TRATON Finance) is using the issuance program to raise capital for general corporate purposes, and the capital raised will be used as needed within the TRATON GROUP. Under the program, TRATON Finance issued bonds totaling €3,235 million (previous year: €1,405 million) in 2023 and made repayments of €614 million (previous year: €5 million). Liabilities with a carrying amount of €8,131 million (previous year: €5,408 million) were reported under this EMTN program as of December 31, 2023. These were partly hedged using interest rate derivatives. Scania has a €5,000 million (previous year: €7,000 million) EMTN program in place. Lia- bilities with a carrying amount of €2,326 million (previous year: €3,891 million) were reported under this program as of December 31, 2023. Bonds amounting to €134 million (previous year: €905 million) were issued, and bonds amounting to €1,658 million (pre - vious year: €1,769 million) were redeemed under this program in the reporting period. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 176 ===== SIDA 177 ===== TRATON launched a €2,500 million commercial paper program on September 12, 2023, of which €990 million was issued by end of December 2023. Scania has two commercial paper programs: one in Swedish kronor and one in euros, which were recognized at €– million (previous year: €780 million) at the end of the reporting period and were therefore not utilized. The loan taken out with Volkswagen International Luxemburg S.A., Strassen, Luxembourg (Volkswagen International Luxemburg) in the amount of €500 million was repaid in full in the first quarter of 2023. The drawdown on the Volkswagen AG credit line was reduced by a repayment of €1,220 million in 2023. By contrast, a new €359 million credit line with Volkswagen Group of America Finance, LLC, Herndon, Virginia, USA (Volkswagen Group of America Finance) and an additional €297 million credit line with Volkswagen AG were drawn down. For information on the measurement principles, refer to Note “35. Significance of finan- cial instruments for net assets, financial position, and results of operations.” For infor- mation on the derecognition of financial assets, refer to Note “22. Financial services receivables.” 30. O ther financial liabilities € million 12/31/2023 12/31/2022 Liabilities from buyback obligations 2,672 3,064 Negative fair value of derivatives 579 826 Interest rate liabilities 172 94 Factoring liabilities 86 105 Miscellaneous financial liabilities 779 676 4,288 4,765 The liabilities from buyback obligations originate from sales of commercial vehicles accounted for as operating leases because of a buyback agreement. For further infor - mation on the accounting policies, see Note “19. Assets leased out.” Other financial liabilities include negative fair values of derivative financial instruments for hedging interest rate and currency risks. These instruments, which are mainly used to hedge currency risk in customer orders and net liquidity, are matched by offsetting gains and losses of the underlyings. Further information on derivatives as a whole can be found in Notes “35. Significance of financial instruments for net assets, financial position, and results of operations” and “36. Nature and extent of risks arising from financial instruments.” In some cases, the contractual rights to cash flows from leases are transferred to an external bank. The carrying amount of the lease assets that have been transferred but not derecognized was €83 million (previous year: €98 million) as of the reporting date. The assets did not qualify for derecognition due to a general recourse clause. The corre- sponding other financial liability had a carrying amount of €86 million (previous year: €105 million) as of the reporting date. The difference between the amount of assets and liabilities is mainly the result of the asset capturing only the portion currently resulting from operating leases, whereas the liability includes the discounted present value of all future cash flows that have been transferred. As of the reporting date, the fair value of the transferred but not derecognized assets amounted to €80 million (previous year: €105 million), the fair value of the corresponding liability amounted to €85 million (pre- vious year: €105 million), and the net position thus equaled €–5 million (previous year: €0 million). For information on the accounting policies in connection with derecognition of financial assets, refer to Note “22. Financial services receivables.” Miscellaneous financial liabilities partly contain deferrals for outstanding supplier invoices. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 177 ===== SIDA 178 ===== 31. O ther liabilities € million 12/31/2023 12/31/2022 Deferred purchase price payments for assets leased out 2,250 2,167 Contract liabilities 2,195 1,985 Payroll liabilities 1,107 897 Miscellaneous tax payables 587 482 Liabilities related to social security contributions 325 266 Miscellaneous other liabilities 401 425 6,866 6,223 Deferred purchase price payments for assets leased out relate to liabilities from buyback transactions. The following table explains the change in contract liabilities in the reporting period: € million 2023 2022 Contract liabilities as of 01/01 1,985 1,767 Additions and disposals 214 269 Currency translation adjustments –4 –34 Changes in basis of consolidation/transfer to liabilities directly a ssociated with assets held for sale – –18 Contract liabilities as of 12/31 2,195 1,985 32. P rovisions for pensions and other post-employment benefits Accounting policies: provisions for pensions and other post-employment benefits Obligations for post-employment benefits under defined benefit plans are deter- mined by independent actuaries using the projected unit credit method in accor- dance with IAS 19 Employee Benefits. Under this method, future obligations (the “defined benefit obligation”) are measured on the basis of the proportionate ben- efit entitlements acquired at the balance sheet date and discounted to their pres- ent value. Measurement takes into account both the pensions and vested benefits known at the balance sheet date and actuarial assumptions for discount rates, salary and pension trends, staff turnover rates, life expectancy, and increases in healthcare costs, which are calculated for each Group company depending on its economic environment. Provisions for pensions and other post-employment benefits are reduced by the fair value of the plan assets used to cover the pension obligations. If the plan assets exceed the obligation, the excess is only recognized as an asset if this results in a refund from the plan or a reduction in future contributions. The service cost, which represents the entitlements of active employees accruing in the fiscal year in accordance with the plan, is reported in functional expenses. Net interest income and expenses are reported in interest expense and calculated by multiplying the net asset or liability by the discount rate. Remeasurements of the net asset or liability comprise actuarial gains and losses resulting from differences between the actuarial assumptions made and what has actually occurred, and changes in actuarial assumptions, as well as the return on plan assets, excluding amounts included in net interest income or expenses. Remeasurements are recognized in other comprehensive income, net of deferred taxes, in the period in which they arise. The remeasurements from pension plans recognized in other comprehensive income also include the relevant currency translation differences. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 178 ===== SIDA 179 ===== Estimates and management’s judgment: provisions for pensions and other post-employment benefits Measurement of the pension provisions was based on the following actuarial assumptions: Germany USA Sweden Other countries In % 2023 2022 2023 2022 2023 2022 2023 2022 Discount rate as of 12/31 3.3 3.8 5.0 5.3 3.3 4.0 4.8 5.1 Payroll trend 3.2 3.2 0.5 0.5 2.3 2.8 1.5 2.0 Pension trend 2.2 2.2 – – 1.5 2.0 0.8 1.1 Staff turnover rate 2.5 2.5 3.7 3.9 4.8 4.8 2.8 2.8 These amounts are averages that were weighted using the present value of the defined benefit obligation. With regard to life expectancy, the most recent mor - tality tables in each country are used. For Germany, the 2005 G mortality tables developed by Professor Klaus Heubeck were adapted, most recently in 2017, to MAN-specific experience for the MAN Truck & Bus companies and the TRATON Holding, and thus describe mortality in the TRATON GROUP better than the RT2018G mortality tables. For the US retirement plans, the mortality rates from standard mortality tables published by the Society of Actuaries are adjusted for plan expe - rience. A study is conducted every five years to determine the best estimate of current mortality levels. A special study was conducted in 2022 for the US pension plan for salaried employees that reflects the change in the demographic structure of the plan following the transfer of more than 6,000 participants to a qualified insurer. On the basis of the study, the mortality rates for the pension plan for sala- ried employees reflect the standard mortality tables published by the Society of Actuaries. In Sweden, the DUS2023 standard mortality tables are applied. As a general principle, the discount rates are defined to reflect the yields on highly-rated (AA) corporate bonds with matching maturities and currencies. The payroll trends cover expected wage and salary trends, which also include increases due to career development. The pension trends either reflect the contractually defined guaran- teed pension adjustments or are based on the rules for pension adjustments in force in each country. The staff turnover rates are based on past experience and future expectations. Depending on the situation in specific countries, the TRATON GROUP grants its employ- ees pension benefits in the form of defined benefit or defined contribution pension plans. Defined contribution plans in the TRATON GROUP Under defined contribution plans, contributions are paid to public or private pension providers on the basis of legislative or contractual requirements. There are no benefit obligations over and above the payment of contributions. Current contribution payments are recognized as an expense in the period in which they are incurred; in the TRATON GROUP, they amounted to a total of €407 million (previous year: €401 million) in 2023. €119 million (previous year: €114 million) was paid for contributions to the statutory pen- sion insurance system in Germany. Additionally, these primarily relate to defined contri- bution pension plans in Sweden and the USA and to defined benefit multi-employer pension plans that are accounted for as defined contribution pension plans. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 179 ===== SIDA 180 ===== Multi-employer plans in the TRATON GROUP In the TRATON GROUP, there are multi-employer pension plans in the United Kingdom, Sweden, and the Netherlands (see the “Scania’s plans in Sweden” and “Plans in other countries” sections). The majority of these plans are defined benefit plans. A small pro - portion of these multi-employer pension plans are accounted for as defined contribution plans because the TRATON GROUP is unable to obtain the information required to account for them as defined benefit plans. Under the terms of the multi-employer plans, the TRATON GROUP only has a very limited liability for the obligations of the other employers. Defined benefit plans in the TRATON GROUP Most of the pension entitlements in the TRATON GROUP are classified as defined benefit plans under IAS 19, which are funded by external plan assets to a considerable extent. Due to their similarity to pensions, the obligations in particular of the US, Canadian, and Brazilian Group companies for their employees’ post-retirement healthcare benefits are also reported in provisions for pensions and other post-employment benefits. The expected long-term trend in healthcare costs is taken into account for these post- employment benefits. The associated present value of the obligation amounted to €377 million (previous year: €470 million) as of December 31, 2023. The significant pension plans are described in the following. Scania’s plans in Sweden Scania’s employees in Sweden are covered through post-employment benefit plans that offer benefits in the form of retirement pensions, early retirement pensions, surviving dependents’ pensions, and severance payments. Employees born before 1979 are covered by the joint defined benefit ITP2 pension plan, which is funded by recognized provisions and, since 2019, also partly by plan assets, and is secured by credit insurance taken out with Försäkringsbolaget PRI Pensionsgaranti, a mutual insurance company that also administers the plan. External funding of plan assets uses a foundation (Pensionsstiftelsen). The fair value of plan assets was €300 million (previous year: €240 million) as of December 31, 2023. Another part of ITP2 is secured by contributions to Alecta, a pensions insurer, and is accounted for as a defined contribution plan (see the “Multi-employer plans in the TRATON GROUP” section). In addition to these obligations, there are also defined benefit obligations for employees entitled to early retirement who have reached the age of 62 and were employed by the company for 30 years, or who have reached the age of 63 and were employed by the company for 25 years, as well as for a limited number of former executives. For obligations that are funded entirely by recognized provisions, the company bears the risks associated with lifelong pension benefits. Navistar’s plans in the USA Navistar offers employees in the USA a range of defined benefit pension plans that pro- vide retirement benefits in the form of life annuities. The benefits of the pension plan for salaried employees is generally based on salary and length of service, while benefits under the two pension plans for wage-earning staff are generally based on a negotiated amount for each year of service. The pension plans for wage-earning staff and salaried employees have been closed to new entrants since 2008 and 1996, respectively, and, with the exception of one of the plans for wage-earning staff, are also closed to the accrual of further benefit entitlements. Effective September 13, 2023, the obligations for around 2,500 participants were trans- ferred to a qualified insurer. Prior to this, the two pension plans for salaried employees were merged into a single pension plan in August 2022, and the obligations for more than 6,000 participants were transferred to a qualified insurer effective September 1, 2022. These plans are funded pension plans subject to the US Employee Retirement Income Security Act (ERISA) and are eligible for tax benefits as qualified pension plans under US law. Under internal guidelines, the minimum required contribution pursuant to ERISA and the Internal Revenue Code is funded in each case, and additional discretionary con- tributions are paid in from time to time. The pension plans are exposed to interest rate, market, and longevity risks, which are regularly monitored and assessed. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 180 ===== SIDA 181 ===== The plan assets are invested as part of a diversified strategy by experienced fund man- agers in equities, real estate, hedge funds, credit products, and assets in order to hedge liabilities, and diversified by an external investment advisor to avoid concentrations in type, sector, issuer, market, or country. Each pension plan has an investment policy that, among other things, defines strategic asset allocation depending on the funding level. As the funding level increases, investments are reallocated to asset classes that reduce interest rate risk at the expense of higher-yielding asset classes that are also more vola- tile. No derivative products are currently used to hedge longevity or interest rate risk. For executives, US law provides for nonqualified defined benefit plans that are not subject to the ERISA and provide retirement benefits in the form of a life annuity, a lump sum, or installments. These are financed solely by provisions. In addition, other post-employment benefits ( OPEBs) in the form of medical benefits, prescription drugs, and life insurance, some of which are funded, are provided to a closed group of participants for life in the USA. The funded plan benefits in place at the time of the acquisition of Navistar resulted from a 1993 Settlement Agreement between Navistar, Navistar’s employees, pensioners, and collective bargaining organizations, and stipulated cost sharing between the company and the participants in the form of premiums, copayments, and deductibles. As part of this agreement, plan assets (a “Base Program Trust”) were established to fund part of the healthcare and life insurance obligations. Navistar was required to make annual contri- butions. In addition, the cost of the benefits was shared between Navistar, the beneficia- ries, and the plan assets. Effective January 1, 2022, the funded OPEB plan was adjusted with regard to the contri- butions that participants are required to pay for pensioner healthcare under the terms of the plan. This saw pensioner contributions being reduced by the government subsidies from the employer group waiver plan agreement. In June 2022, the competent court approved the final agreement to adjust the plan. TRATON Holding and MAN’s plans in Germany Once their active working life is over, the German companies of MAN Truck & Bus and the TRATON Holding grant their employees in Germany benefits provided by an occupational pension system that constitutes one of the key elements of their remuneration policy. Occupational pensions provide additional retirement benefits as well as risk protection in the event of invalidity or death. Under the current pension plans, all active employees receive employer contributions that are tied to their remuneration and can also make additional provisions through deferred compensation — whic h is employer-subsidized for staff subject to collective bargaining agreements. The employer- and employee-funded contributions plus returns on capital market investments allow staff to accumulate plan assets during their active employment that are paid out as a lump sum or in installments on retirement, or that can be annuitized in certain cases. The risk of the investments is gradually reduced as employees get older (life cycle concept). The performance of the plan assets is based on the return on capital investments. The total amount of contributions paid in for the employee is paid out as a minimum when the employee retires. Former employees, pensioners, or employees with vested benefits who have left also have benefit entitlements from discontinued pension plans, which are designed to pro- vide lifelong pension payments. These commitments are exposed to the standard lon - gevity and inflation risks, which are regularly monitored and assessed. German pension assets are managed by MAN Pension Trust e.V. and WTW Pensionsfonds AG. These assets are irrevocably protected from recourse by the Group companies and may only be used to fund current pension benefit payments or to settle claims by employ- ees in the event of insolvency. Proper management and utilization of the trust assets is supervised by independent trustees. Additionally, WTW Pensionsfonds AG is regulated by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin — Ger man Federal Finan- cial Supervisory Authority). Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 181 ===== SIDA 182 ===== The pension assets are invested by professional investment managers in accordance with investment rules laid down by TRATON SE’s Investment Committee. Strategic allo- cation of the pension assets is based on regular asset/liability management studies. The acquisition of securities issued by Volkswagen Group companies and investments in owner-occupied real estate are generally not permitted. Plans in other countries Employees in the United Kingdom, Switzerland, Canada, and Brazil receive pension ben- efits under defined benefit funded pension and healthcare plans. The pension plans granting lifelong pensions in the United Kingdom have been closed to new entrants, and existing members cannot acquire additional entitlements. Trustee boards, which have appointed professional administrators and advisors, are responsible for administering the pension plans, including investing the assets. Regular asset/liabil- ity management studies form the basis of investment and risk management. The invest- ment risk at MAN Truck & Bus is being gradually reduced as part of a defined derisking strategy as funding ratios improve. Employees in Switzerland accrue entitlements through employer and employee contri- butions to multi-employer (MAN Truck & Bus) or occupational (Scania) pension providers that are converted into a lifelong pension at retirement at the terms in force at that time. The pension institutions are managed conservatively on the basis of standards imposed by the government. If the plan assets are insufficient to meet the pension entitlements because of adverse market developments, the member employers and their employees may be required to make “stabilization contributions.” In Canada, there are two registered and funded defined benefit pension plans, one for wage-earning staff and one for salaried employees, as well as an Other Post-Employment Benefits (OPEB) plan. The pension plans provide lifetime annuities and are closed to new entrants. The pension plan for salaried employees (the defined benefit component) is also closed for the acquisition of additional entitlements. The Canadian OPEB plan pro- vides health, dental, and life insurance benefits to eligible pensioners and is also closed to new entrants. Employees in Brazil are entitled to benefits under defined benefit pension plans funded largely by plan assets and have entitlements under healthcare plans funded by provisions. Furthermore, other countries have pension plans with a low level of benefits or grant mandatory post-employment benefits. Some of these benefits are funded by plan assets, either in full (the Netherlands) or in part (Belgium, France, India), or are only funded by provisions (Austria, Türkiye, Poland, Italy). The following amounts were recognized in the balance sheet for defined benefit plans: € million 12/31/2023 12/31/2022 Present value of funded obligations 4,654 4,783 Fair value of plan assets 3,500 3,678 Funded status (net) 1,154 1,104 Present value of unfunded obligations 637 619 Amount not recognized as an asset because of the ceiling in IAS 19 20 36 Net liabilities recognized in the balance sheet 1,811 1,760 of which provisions for pensions and other post-employment benefits 1,847 1,786 of which other receivables 36 26 Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 182 ===== SIDA 183 ===== The following table shows changes in the net defined benefit liability recognized in the balance sheet: € million 2023 2022 Net liabilities recognized in the balance sheet as of 01/01 1,760 2,581 Current service cost 1 75 100 Net interest expense 1 87 70 Actuarial gains (–)/losses (+) arising from changes in demographic assumptions 10 17 Actuarial gains (–)/losses (+) arising from changes in financial a ssumptions 102 –1,651 Actuarial gains (–)/losses (+) arising from experience adjustments 91 144 Income/expenses from plan assets not included in interest income –111 649 Change in amount not recognized as an asset because of the ceiling in IAS 19 –18 30 Employer contributions to plan assets –59 –94 Employee contributions to plan assets 17 12 Pension payments from company assets –106 –82 Past service cost (including plan curtailments) 1 6 1 Gains (–)/losses (+) arising from plan settlements 1 –13 –6 Changes in basis of consolidation – –3 Other changes –3 –1 Currency translation differences from foreign plans –25 –5 Net liabilities recognized in the balance sheet as of 12/31 1,811 1,760 1 Amounts r ecognized in the income statement The change in the present value of the defined benefit obligation is attributable to the following factors: € million 2023 2022 Present value of obligations as of 01/01 5,402 7,033 Current service cost 75 100 Interest expense 236 152 Actuarial gains (–)/losses (+) arising from changes in demographic assumptions 10 17 Actuarial gains (–)/losses (+) arising from changes in financial a ssumptions 102 –1,651 Actuarial gains (–)/losses (+) arising from experience adjustments 91 144 Employee contributions to plan assets 20 15 Pension payments from company assets –106 –82 Pension payments from plan assets –297 –315 Past service cost (including plan curtailments) 6 1 Disposals arising from plan settlements –177 –114 Changes in basis of consolidation – –3 Other changes –3 –1 Currency translation differences from foreign plans –67 108 Present value of obligations as of 12/31 5,291 5,402 At the reporting date, €2,060 million (previous year: €2,469 million) of the defined ben- efit obligation is attributable to the Navistar plans in the USA, €1,548 million (previous year: €1,452 million) to the plans of the TRATON Holding and the German MAN Truck & Bus companies, and a further €988 million (previous year: €827 million) to Scania’s plans in Sweden. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 183 ===== SIDA 184 ===== At Navistar in the USA, the obligations for about 2,500 participants in the pension plan for salaried employees amounting to €179 million were transferred to a qualified insurer effective September 13, 2023. This resulted in the disposal of plan assets in the amount of €167 million and thus to a plan settlement gain of €12 million, which is contained in the personnel expenses of the functions. In the previous year, the obligations for more than 6,000 participants amounting to €114 million had been transferred to a qualified insurer. This had resulted in the disposal of plan assets in the amount of €110 million and thus to a plan settlement gain of €4 million. Changes in the relevant actuarial assumptions would have the following effects on the defined benefit obligation: 12/31/2023 12/31/2022 Present value of defined benefit obligation if € million Change in % € million Change in % Discount rate is 0.5 percentage points higher 5,022 –5.1 5,142 –4.8 is 0.5 percentage points lower 5,588 5.6 5,690 5.3 Pension trend is 0.5 percentage points higher 5,410 2.3 5,497 1.8 is 0.5 percentage points lower 5,182 –2.1 5,312 –1.9 Payroll trend is 0.5 percentage points higher 5,349 1.1 5,456 1.0 is 0.5 percentage points lower 5,238 –1.0 5,351 –0.9 Life expectancy increases by one year 5,482 3.6 5,568 3.1 The sensitivity analyses shown above consider the change in one assumption at a time, leaving the other assumptions unchanged versus the original calculation, i.e., any cor - relation effects between the individual assumptions are ignored. To examine the sensi- tivity of the present value of the defined benefit obligation to a change in assumed life expectancy, the age of the beneficiaries was reduced by one year as part of a comparative calculation. The average duration of the defined benefit obligation weighted by the pres- ent value of the defined benefit obligation (Macaulay duration) is ten years (previous year: nine years). The present value of the defined benefit obligation is spread across the members of the plan as follows: € million 12/31/2023 12/31/2022 Active members with entitlements from defined benefits 1,752 1,609 Members who have left the company with vested entitlements 638 582 Pensioners 2,901 3,211 5,291 5,402 The maturity profile of payments attributable to the defined benefit obligations is pre - sented in the following table by classifying the present value of the obligations by the maturity of the underlying payments: € million 12/31/2023 12/31/2022 Payments due within the next fiscal year 303 380 Payments due in two to five years 1,193 1,344 Payments due in more than five years 3,794 3,677 5,291 5,402 Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 184 ===== SIDA 185 ===== Changes in plan assets are shown in the following table: € million 2023 2022 Fair value of plan assets as of 01/01 3,678 4,458 Interest income from plan assets determined using the discount rate 150 82 Income/expenses from plan assets not included in interest income 111 –649 Employer contributions to plan assets 59 94 Employee contributions to plan assets 3 3 Pension payments from plan assets –297 –315 Disposals arising from plan settlements –164 –108 Currency translation differences from foreign plans –41 113 Fair value of plan assets as of 12/31 3,500 3,678 As of the reporting date, €1,369 million (previous year: €1,688 million) of the fair value of plan assets was attributable to the Navistar plans in the USA, €1,364 million (previous year: €1,308 million) to the plans of the TRATON Holding and the German MAN Truck & Bus companies, and a further €300 million (previous year: €239 million) to Scania’s plans in Sweden. In the next fiscal year, employer contributions to plan assets are expected to amount to €123 million (previous year: €99 million). The investment of plan assets to cover future pension obligations resulted in total com- prehensive income of €261 million (previous year: €–567 million). Plan assets are invested in the following asset classes: 12/31/2023 12/31/2022 € million Quoted prices in active markets No quoted prices in active markets Total Quoted prices in active markets No quoted prices in active markets Total Cash and cash equivalents 110 – 110 134 – 134 Equity instruments 151 – 151 118 – 118 Debt instruments 148 4 152 123 5 128 Direct investments in real estate – 54 54 – 52 52 Equity funds 1,011 2 1,013 1,078 1 1,079 Bond funds 1,059 87 1,146 1,024 94 1,119 Real estate funds 242 24 266 407 30 437 Other instruments 18 184 202 17 207 224 Other 73 333 406 51 338 389 Fair value of plan assets 2,811 689 3,500 2,952 727 3,678 Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 185 ===== SIDA 186 ===== 33. O ther provisions Accounting policies: other provisions Under IAS 37 Provisions, Contingent Liabilities and Contingent Assets, provisions are recognized for a present obligation to a third party arising from a past event that is likely to result in an outflow of resources and whose amount can be mea - sured reliably. The amount of the provision is determined based on estimates of the amount of the loss and the probability of utilization. Provisions that do not result in an outflow of resources within the year are recog- nized at the settlement amount discounted at the reporting date. Discounting uses market rates of interest. The settlement amount also reflects expected cost increases at the reporting date. Provisions are not offset against recourse rights. Estimates and management’s judgment: recognition and m easurement of provisions Recognition and measurement of provisions are based on estimates of the amount and probability of future events, and estimates of the discount rate. If possible, experience or external appraisals are used in these cases. Warranty claims arising from unit sales are determined on the basis of estimated future costs and ex gratia arrangements. In addition, assumptions must be made about the nature and extent of future guarantee and ex gratia claims. The measurement of restructuring pro - visions is based on estimates and assumptions regarding the amount of severance payments, the effects of onerous contracts, the timeline for the implementation of measures, and, consequently, the timing of the expected payments. Litigation and other court proceedings lead to complex legal issues and entail numerous uncertainties. The current status of negotiations and estimates by local manage - ment and TRATON SE’s Executive Board as well as by external lawyers are taken into account for the measurement. € million Obligations arising from unit sales Obliga - tions to employees Litiga tion and legal risks Restruc - tur ing Miscella - neous provisions Total Balance as of 01/01/2023 1,8611 351 361 124 5951 3,293 Currency translation differences –16 –2 –6 0 5 –20 Utilization –1,097 –86 –62 –39 –221 –1,504 Additions/ new provisions 1,452 101 98 13 341 2,006 Unwinding of discount/ effect of change in discount rate 27 4 1 – 0 32 Reversals –152 –6 –27 –32 –62 –279 Balance as of 12/31/2023 2,074 362 365 68 658 3,527 of which current 1,242 98 126 68 458 1,993 of which noncurrent 831 264 239 – 200 1,534 1 P rior-year amounts adjusted. The “Provision for goods sold that are expected to be returned” amounting to €119 million was reclassified from the “Miscellaneous provisions” line item to “Obligations arising from unit sales.” Obligations arising from unit sales contain provisions that cover all risks attributable to the sale of vehicles and spare parts. These primarily relate to provisions for warranties and statutory or contractual guarantee obligations. They also include provisions for dis- counts, bonuses, and similar allowances incurred after the reporting date, but for which there is a legal or constructive obligation attributable to sales revenue before the report- ing date. Provisions for obligations to employees are recognized for long-service awards, partial retirement arrangements, severance payments, and similar obligations, among other things. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 186 ===== SIDA 187 ===== As of December 31, 2023, there were provisions in the mid double-digit millions for civil lawsuits against Scania Vehicles & Services and MAN Truck & Bus in connection with the EU antitrust proceedings. The provisions for litigation and legal risks also contain amounts related to a large number of legal disputes and official proceedings in which TRATON GROUP companies become involved in Germany and internationally in the course of their operating activities. In particular, such legal disputes and other proceedings may occur in relation to suppliers, dealers, customers, and employees. Refer to Note “39. Litigation/ legal proceedings” for a discussion of the legal risks. Provisions for restructuring consist largely of provisions recognized at MAN Truck & Bus in fiscal year 2021 for the repositioning as part of the restructuring and provisions related to personnel measures (including severance payments and partial retirement arrange - ments). Another key component of the provisions for restructuring results from the realignment of the bus business and the discontinuation of body production for Scania bus chassis at the plant in Słupsk, Poland. Miscellaneous provisions relate to a large number of identifiable specific risks and uncer- tain obligations arising from operating activities that are measured at the expected set tlement amount. Miscellaneous provisions also contain provisions for litigation in connection with indirect and other taxes. 34. Stat ement of cash flows Accounting policies: statement of cash flows The cash and cash equivalents presented in the statement of cash flows correspond to the “Cash and cash equivalents” balance sheet item (see Note “27. Cash and cash equivalents”). Current account overdraft facilities are not presented as a component of cash and cash equivalents in the statement of cash flows, but are reported in net cash used in/provided by financing activities if they are used. In 2023, net cash provided by/used in operating activities contained interest received of €1,213 million (previous year: €799 million) and interest paid of €1,300 million (previous year: €749 million). Net cash provided by/used in operating activities in 2023 also con - tained dividends received from joint ventures and associates amounting to €27 million (previous year: €57 million) and dividends received from other equity investments of €4 million (previous year: €3 million). Other noncash income and expenses result primarily from measurement effects relating to financial instruments denominated in foreign currencies and fair value changes relating to derivatives. We report the acquisition and disposal of subsidiaries in investing activities. Payments from the disposal of subsidiaries are reported net of cash and cash equivalents disposed at the date of disposal. Payments of €400 million (previous year: €266 million) were offset against cash and cash equivalents disposed of €304 million (previous year: €208 million) in 2023. A further €31 million was received in the reporting period in the context of purchase price adjustments from the disposal of MWM in 2022. When subsid- iaries are acquired, cash and cash equivalents acquired are deducted from the purchase price paid. In the year under review, €5 million (previous year: €22 million) of cash and cash equivalents acquired was therefore deducted from the purchase prices paid in the total amount of €43 million (previous year: €116 million). Additionally, the “Investments to acquire subsidiaries and other businesses” line item contained €271 million in 2023 that was paid into an account at VW Bank under the terms of the framework agreement to gradually acquire key aspects of the global MAN and VWTB financial services business. For further information on this transaction, see Note “7. Acquisitions.” Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 187 ===== SIDA 188 ===== The following reconciliation shows the changes in financial liabilities, classified by changes affecting cash flows and noncash changes. Noncash changes Noncash changes € million 01/01/2023 Changes affecting cash flows Foreign exchange differ - e nces Changes in basis of consoli - dation Other changes 12/31/2023 01/01/2022 Changes affecting cash flows Foreign exchange differ - e nces Changes in basis of consoli - dation Other changes 12/31/2022 Bonds 10,136 1,399 40 – – 11,576 9,553 1,019 –436 – – 10,136 Schuldscheindarlehen 700 0 – – – 700 699 – – – 1 700 Other third-party borrowings 9,086 –823 –36 27 –7 8,247 6,717 1,825 302 242 – 9,086 Lease liabilities 1 1,209 –263 –7 18 223 1,181 1,237 –281 4 –7 256 1,209 Total third-party borrowings 21,131 314 –2 45 215 21,704 18,205 2,563 –129 236 256 21,131 Derivatives in connection with financing activities 2 203 –92 –109 – 112 115 –25 –97 36 – 289 203 Financial assets and liabilities in financing activities 21,334 222 –111 45 328 21,818 18,180 2,466 –93 236 545 21,334 1 O ther changes in lease liabilities largely contain noncash additions to lease liabilities. 2 O ther changes in foreign exchange derivatives in connection with financing activities result from changes in fair value. 35. Significan ce of financial instruments for net assets, financial position, and results of operations Recognition, derecognition, and classification of financial instruments Accounting policies: recognition, derecognition, and classification of financial instruments Primary financial instruments are accounted for at the settlement date in the case of regular way purchases or sales — that is, the date on which the asset is delivered. Financial instruments are recognized at the time when TRATON becomes a party to the contract. A financial asset is derecognized if the rights to receive cash flows have expired or have been transferred, and TRATON has transferred substantially all the risks and rewards of ownership, in particular the bad debt and payment date risk. A financial liability is derecognized when the obligations specified in the con- tract are fulfilled or canceled. Classification of financial assets depends on the contractual cash flow character - istics and TRATON’s business model for managing financial assets. Since all cash flows from primary financial instruments of the TRATON GROUP, with the exception of other equity investments, consist exclusively of payments of principal and inter- est on the principal amount outstanding, and since TRATON’s intention is to collect these contractual cash flows, financial assets in the form of a debt instrument are exclusively allocated to the “at amortized cost” measurement category. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 188 ===== SIDA 189 ===== In the case of derivatives and other equity investments, the cash flows do not consist exclusively of payments of principal and interest on the principal amount outstanding. They are therefore allocated to the “at fair value” measurement cat - egory. For further information on derivative financial instruments included in hedge accounting, see the “Derivatives and hedge accounting” section in this chapter. With the exception of derivatives, all financial liabilities are allocated to the “at amortized cost” measurement category. Investments in associates and joint ventures as well as lease receivables and lia - bilities are allocated to the “no measurement category” measurement category. Financial instruments that form part of a disposal group continue to be allocated to their original IFRS 9 measurement category. Reconciliation of balance sheet items to classes of financial instruments The following table shows the reconciliation of the balance sheet items to the relevant classes of financial instruments, broken down by the carrying amount and fair value of the financial instruments. For reasons of materiality, the fair value of current balance sheet items is generally considered to be their carrying amount. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 189 ===== SIDA 190 ===== RECONCILIATION OF BALANCE SHEET ITEMS TO CLASSES OF FINANCIAL INSTRUMENTS Measured at fair value Measured at amortized cost Derivative financial instru - ments within hedge ac - counting Not allo- cated to any mea- surement category Balance sheet item as of 12/31/2023 Measured at fair value Measured at amortized cost Derivative financial instru - ments within hedge ac - counting Not allo- cated to any mea- surement category Balance sheet item as of 12/31/2022 € million Note Through other compre - hensive income Through profit or loss Carrying amount Fair value Carrying amount Carrying amount Through other compre - hensive income Through profit or loss Carrying amount Fair value Carrying amount Carrying amount Noncurrent assets Other equity investments [21] 140 – – – – 95 235 134 – – – – 69 204 Financial services receivables [22] – – 4,327 4,331 – 3,440 7,767 – – 3,523 3,424 – 3,038 6,560 Other financial assets [23] – 287 165 165 17 – 469 – 256 145 145 14 – 414 Current assets Trade receivables [26] – – 3,894 3,894 – – 3,894 – – 3,348 3,348 – – 3,348 Financial services receivables [22] – – 3,661 3,661 – 1,893 5,554 – – 3,358 3,358 – 1,703 5,061 Income tax receivables 1 – – 5 5 – – 5 – – 5 5 – – 5 Other financial assets [23] – 83 813 813 22 – 918 – 111 554 554 31 – 695 Marketable securities and investment deposits – – 53 53 – – 53 – – 73 73 – – 73 Cash and cash equivalents [27] – – 1,730 1,730 – – 1,730 – – 1,439 1,439 – – 1,439 Assets held for sale [8] – – – – – – – – – 307 307 – 114 421 Noncurrent liabilities Financial liabilities [29] – – 13,102 13,045 – 942 14,044 – – 11,517 11,038 – 968 12,485 Other financial liabilities [30] – 275 1,733 1,687 164 – 2,172 – 420 1,975 1,867 257 – 2,652 Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 190 ===== SIDA 191 ===== RECONCILIATION OF BALANCE SHEET ITEMS TO CLASSES OF FINANCIAL INSTRUMENTS Measured at fair value Measured at amortized cost Derivative financial instru - ments within hedge ac - counting Not allo- cated to any mea- surement category Balance sheet item as of 12/31/2023 Measured at fair value Measured at amortized cost Derivative financial instru - ments within hedge ac - counting Not allo- cated to any mea- surement category Balance sheet item as of 12/31/2022 € million Note Through other compre - hensive income Through profit or loss Carrying amount Fair value Carrying amount Carrying amount Through other compre - hensive income Through profit or loss Carrying amount Fair value Carrying amount Carrying amount Current liabilities Financial liabilities [29] – – 7,421 7,421 – 239 7,660 – – 8,406 8,406 – 240 8,646 Trade payables – – 5,791 5,791 – – 5,791 – – 5,518 5,518 – – 5,518 Other financial liabilities [30] – 124 1,975 1,975 16 – 2,115 – 142 1,965 1,965 7 – 2,113 Income tax payables 1 – – 8 8 – – 8 – – 4 4 – – 4 1 Inc ome tax receivables/liabilities as a result of tax allocation to Volkswagen Group companies The “Financial liabilities” item contains liabilities from bonds with a carrying amount of €2,147 million (previous year: €1,779 million) and a fair value of €2,137 million (previous year: €1,746 million) that are included in hedge accounting as a fair value hedge. They were allocated to the “at amortized cost” measurement category. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 191 ===== SIDA 192 ===== CARRYING AMOUNT OF FINANCIAL INSTRUMENTS BY MEASUREMENT CATEGORIES € million 12/31/2023 12/31/2022 Assets measured at amortized cost 14,646 12,753 Other equity investments measured at fair value through other comprehensive income 140 134 Assets measured at fair value through profit or loss 371 366 Total financial assets 15,157 13,253 Liabilities measured at amortized cost 1 30,030 29,384 Liabilities measured at fair value through profit or loss 399 562 Total financial liabilities 30,429 29,946 1 The pr ior-year period was adjusted to reflect the current presentation. Financial assets and liabilities measured at fair value Accounting policies: financial assets and liabilities measured at fair value As a rule, fair value corresponds to the market or stock exchange price. If no active market exists, fair value is determined using observable inputs as far as possible. If no observable inputs are available, fair value is determined using valuation tech- niques. Measurement and presentation of the fair value of financial instruments are based on a fair value hierarchy that reflects the significance of the inputs used for mea- surement and is categorized as follows: Level 1 inputs: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets and liabilities. Level 2 inputs: Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of Level 2 financial instruments is determined on the basis of the condi- tions prevailing at the end of the reporting period, such as interest rates or exchange rates, and using recognized models, such as discounted cash flow or option pricing models. Level 3 inputs: Level 3 inputs are inputs for the asset or liability that are not based on observable market data (unobservable inputs). The fair value of these assets and liabilities is determined on the basis of previous transactions, option pricing models, or discounted cash flow models. The TRATON GROUP’s other equity investment in TuSimple shares is categorized within Level 1 of the fair value hierarchy since there is market price data available. The financial instruments that are categorized within fair value Level 2 primarily comprise derivative financial instruments. With the exception of the investment in TuSimple, the other equity investments measured at fair value are categorized within Level 3 of the fair value hierarchy. These equity invest- ments largely comprise shares in unlisted companies for which there is no active market. Due to the small carrying amount of these investments, a change in unobservable inputs would not result in a significantly lower or higher fair value of the instruments. The “Other financial assets” item includes a receivable relating to contingent consider - ation from the disposal of MWM. The receivable is measured at fair value through profit or loss and categorized within Level 3 of the fair value hierarchy, since it was measured using probability and usage assumptions. In addition, the “Other financial assets” item also includes receivables from associates arising from convertible loan agreements. The receivables are measured at fair value through profit or loss and categorized within Level 3 of the fair value hierarchy, as assumptions are made regarding the various con- version scenarios and their probability of occurrence. Any change in the unobservable inputs would not result in any significant change in the fair value of any of the instru - ments. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 192 ===== SIDA 193 ===== The following table shows changes in other equity investments and other financial assets measured at fair value and categorized within Level 3: CHANGES IN BALANCE SHEET ITEMS MEASURED AT FAIR VALUE BASED ON LEVEL 3 2023 2022 € million Other equity investments categorized within Level 3 Other financial assets categorized within Level 3 Other equity investments categorized within Level 3 Other financial assets categorized within Level 3 Balance as of 01/01 110 14 119 – Fair value changes in “Fair value measurement of other equity i nvestments” recognized in other comprehensive income 6 – –6 – Fair value changes in “Other financial result” recognized in profit or loss – 11 – – Additions/acquisitions 11 47 6 14 Currency translation differences 0 1 –8 0 Balance as of 12/31 127 73 110 14 There were no transfers between the levels of the fair value hierarchy in 2023 or the previous year. NET GAINS AND LOSSES ON FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE € millions 2023 2022 Net gains and losses: Financial instruments measured at fair value through profit or loss –9 –734 Net gains and losses on financial assets and liabilities measured at fair value through profit or loss mainly comprise derivatives not included in hedge accounting. Financial assets and liabilities measured at amortized cost Accounting policies: financial assets and liabilities measured at amortized cost As a rule, primary financial assets and liabilities are initially recognized at cost, plus or minus transaction costs. Primary financial assets and liabilities are subsequently measured at amortized cost. Amortized cost is the amount at which financial assets or liabilities are measured at initial recognition, minus any principal repayments, plus or minus the cumulative amortization of any difference between the original amount and the amount repayable at maturity, amortized using the effective inter- est method. In the case of financial assets, the amount is adjusted for any loss allowances. If fair value is disclosed for financial instruments measured at amortized cost, it is calculated by discounting, using a market rate of interest for a similar risk and matching maturity. In all cases, the TRATON GROUP recognizes lifetime expected credit losses ( ECLs) for trade receivables and lease receivables (referred to in the following as the “sim- plified approach”). For trade receivables, expected credit losses are estimated using a provision matrix unless there is objective evidence of individual impairment. The provision matrix is based on the Group’s historical loss experience, adjusted for debtor-specific factors, general economic factors, and an estimate of both current and expected changes in variables as of the reporting date, including the time value of money. The provision rates depend on the number of days a receivable is past due: – Not imp aired and not past due: 1.0% of the receivable – Up t o 30 days past due: 1.5% of the receivable – 31 t o 90 days past due: 2.0% of the receivable – Mor e than 91 days past due: 3.0% of the receivable Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 193 ===== SIDA 194 ===== For other financial instruments, the TRATON GROUP recognizes ECLs if there has been a significant increase in credit risk since initial recognition (referred to in the following as the “general approach”). By contrast, if the credit risk of the financial instrument has not increased significantly since initial recognition, a loss allowance is measured for that financial instrument at an amount equal to 12-month ECLs. To the extent that the internal risk management and control systems do not indicate a significant increase in credit risk at an earlier point in time, there is generally a rebuttable presumption in the TRATON GROUP that a significant increase in credit risk has arisen if payments are more than one day past due. Financial instruments are allocated to one of four loss stages: Stage 1: financ ial instruments at initial recognition and whose credit risk has not increased significantly Stage 2: financ ial instruments with a significant increase in credit risk since recognition of the instrument, based on expected credit losses over the lifetime of the underlying contract Stage 3: cr edit-impaired financial instruments Stage 4: pur chased or originated credit-impaired financial instruments Allocation to a stage is reviewed in each reporting period. A financial asset is credit- impaired if one or more events have occurred that negatively impact future expected cash flows. These events include delayed payment over a certain period, the institution of enforcement measures, the threat of insolvency or overindebt - edness, the application for or opening of bankruptcy proceedings, or the failure of reorganization measures. The amount of expected credit losses is based on the probability of default, the loss given default, and the exposure at default. For finan- cial assets, expected credit losses are calculated as the present value of the differ- ence between all contractual cash flows payable to the TRATON GROUP under the terms of the contract and all cash flows that the Group expects to receive. If, based on the internal risk management and control systems, there are no grounds for assuming that there will be an increase in credit risk at an earlier point in time, there is a rebuttable presumption in the TRATON GROUP that default has occurred if payments are more than 90 days past due. Appropriate groupings are made when determining the expected credit losses. The financial asset is always derecog- nized if there are no longer any reasonable expectations that it is collectible. The loss allowance for the subsequent measurement of Stage 4 financial instru - ments is measured as the cumulative change in lifetime expected credit loss. These instruments are not reclassified from Stage 4. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 194 ===== SIDA 195 ===== The following tables contain an overview of the financial assets and liabilities measured at amortized cost by level: FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES MEASURED AT AMORTIZED COST BY LEVEL € million Level 1 Level 2 Level 3 12/31/2023 Level 1 Level 2 Level 3 12/31/2022 Financial services receivables – – 7,992 7,992 – – 6,782 6,782 Trade receivables – 3,894 – 3,894 – 3,348 – 3,348 Income tax receivables – 5 – 5 – 5 – 5 Other financial assets 1 976 0 977 0 700 – 700 Marketable securities and investment deposits – 53 – 53 – 73 – 73 Cash and cash equivalents 1,730 – – 1,730 1,439 – – 1,439 Assets held for sale – – – – 307 – – 307 Fair values of financial assets measured at amortized cost 1,731 4,928 7,992 14,650 1,746 4,125 6,782 12,654 Trade payables – 5,791 – 5,791 – 5,518 – 5,518 Financial liabilities 6,075 14,390 – 20,465 6,417 13,027 – 19,444 Other financial liabilities 19 3,643 0 3,662 9 3,823 – 3,832 Income tax payables – 8 – 8 – 4 – 4 Fair values of financial liabilities measured at amortized cost 6,094 23,832 0 29,926 6,426 22,372 – 28,798 The lease receivables have a carrying amount of €5,333 million (previous year: €4,850 million) and a fair value (Level 3 of the fair value hierarchy) of €5,295 million (previous year: €4,768 million). TOTAL INTEREST INCOME AND EXPENSES FROM FINANCIAL INSTRUMENTS MEASURED AT AMORTIZED COST € million 2023 2022 Interest income 707 437 Interest expenses –961 –459 Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 195 ===== SIDA 196 ===== NET GAINS AND LOSSES ON FINANCIAL INSTRUMENTS MEASURED AT AMORTIZED COST € million 2023 2022 Net gains and losses: Financial assets measured at amortized cost 418 1,481 Financial liabilities measured at amortized cost –980 –925 Net gains and losses on financial assets and liabilities at amortized cost comprise inter - est income and expenses measured using the effective interest method under IFRS 9, including currency translation effects. In addition, net gains and losses on financial assets include impairment losses as well as related reversals. For further information on credit risk, refer to Note “36. Nature and extent of risks aris- ing from financial instruments.” Derivatives and hedge accounting Accounting policies: derivatives and hedge accounting Derivatives are initially recognized and accounted for at each subsequent report- ing date at their fair value. They are generally recognized at the trade date. The recognition of gains and losses from fair value measurement depends on the designation of the derivative. Derivatives that do not meet the IFRS 9 hedge accounting criteria are measured at fair value through profit or loss (also referred to in the following as “derivatives or hedging instruments not included in hedge accounting”). These gains and losses from measurement and realization are rec - ognized in other operating income/expense (for example, foreign currency deriv- atives for customer orders) or in financial result (for example, foreign currency hedges for net liquidity items), depending on the underlying risk. A condition for applying hedge accounting is that the hedging relationship between the hedged item and the hedging instrument is clearly documented and that there is an economic relationship between the hedged item and the hedging instrument that is not dominated by the effect of the credit risk. The hedging instruments are selected so that they are essentially affected by the same risk as the underlying transactions, namely foreign exchange risk or interest rate risk. In the case of cash flow hedges, gains or losses from the remeasurement of the effective designated portion of the derivative are recognized in the cash flow hedge reserve in other comprehensive income. If the forward element and the cross- cur rency basis spread are not designated, the resulting gains and losses are recognized in the reserve for cost of hedging. The amounts recognized in other comprehensive income are reclassified to the income statement as soon as the hedged future cash flows are recognized in profit or loss. The reclassification of both the cash flow hedge reserve and the reserve for cost of hedging is recognized in the item to which the hedged item is allocated. If a cash flow hedge subsequently results in the recognition of a nonfinancial asset, the cash flow hedge reserve and the reserve for cost of hedging are included in the initial cost of the nonfinancial asset; this does not constitute any reclassification adjustment. The ineffective portion of a cash flow hedge is recognized in profit or loss for the period. When hedging against the risk of changes in the value of balance sheet items (fair value hedges), both the hedging instrument and the hedged effective risk portion of the underlying transaction are measured at fair value. Changes in the fair value of hedging instruments and hedged items are recognized in profit or loss. The hedged items in the TRATON GROUP relate to bonds that are measured at amor - tized cost. Changes in amortized cost because of hedging gains and losses are amortized at the latest when hedge accounting is discontinued. For further information on the risk strategy, refer to Note “36. Nature and extent of risks arising from financial instruments.” Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 196 ===== SIDA 197 ===== The following table contains an overview of the TRATON GROUP’s derivative financial instruments, broken down by whether or not they are included in hedge accounting and by the hedged risk. OVERVIEW OF THE TRATON GROUP’S DERIVATIVE FINANCIAL INSTRUMENTS 2023 2022 € million Derivative financial instruments Derivative financial instruments not included in hedge accounting Derivative financial instruments within hedge accounting Of which: hedging of currency risk through hedge accounting Of which: hedging of interest rate risk through hedge accounting Derivative financial instruments Derivative financial instruments not included in hedge accounting Derivative financial instruments within hedge accounting Of which: hedging of currency risk through hedge accounting Of which: hedging of interest rate risk through hedge accounting Noncurrent assets Other financial assets 244 227 17 15 2 257 243 14 14 – Current assets Other financial assets 93 71 22 22 – 140 109 31 31 – Noncurrent liabilities Other financial liabilities 439 275 164 1 163 677 420 257 1 256 Current liabilities Other financial liabilities 140 124 16 16 – 148 142 7 7 – Hedging of currency risk through hedge accounting The TRATON GROUP partly hedges currency risk arising from order backlog, receivables and liabilities, and planned unit sales. Companies that enter into hedging transactions choose the hedge ratio for expected sales revenue on the basis of past experience in order to avoid ineffectiveness. Nevertheless, ineffectiveness can result from changes in counterparty credit risk or if the spot component of a forward is not separated from the forward element. There are no fair value hedges relating to currency risk. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 197 ===== SIDA 198 ===== The following tables show details of derivatives included in hedge accounting in terms of the currency risk: AMOUNT, TIMING, AND UNCERTAINTY OF CASH FLOWS 2023 2022 Maturity Maturity € million < 1 year 1–5 years > 5 years Total nominal amount < 1 year 1–5 years > 5 years Total nominal amount Currency risk: Currency forwards EUR/GBP 454 – – 454 557 45 – 602 Currency forwards BRL/USD 119 120 – 239 111 134 – 244 Currency forwards EUR/CHF 135 – – 135 119 31 – 151 Currency forwards EUR/DKK 72 – – 72 82 2 – 84 Currency forwards EUR/ZAR 70 – – 70 69 – – 69 Currency forwards EUR/USD 37 1 – 37 31 20 – 51 Currency forwards EUR/PLN 32 – – 32 – – – – Currency forwards EUR/NOK 31 – – 31 25 – – 25 Currency forwards — other currencies 49 – – 49 63 – – 63 999 121 – 1,120 1,057 232 – 1,289 Currency risk was hedged by cash flow hedges at the following average hedging exchange rates for the major currency pairs: 0.89 EUR/GBP; 6.13 BRL/USD; 0.95 EUR/CHF. INFORMATION ON HEDGING INSTRUMENTS INCLUDED IN HEDGE ACCOUNTING € million 2023 2022 Currency risk: Fair value change to determine hedge ineffectiveness 11 31 Nominal value 1,120 1,289 INFORMATION ON HEDGED ITEMS INCLUDED IN HEDGE ACCOUNTING € million 2023 2022 Currency risk: Fair value change to determine hedge ineffectiveness –11 –31 Reserve for active cash flow hedges 11 31 Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 198 ===== SIDA 199 ===== INFORMATION ABOUT THE EFFECTS OF HEDGE ACCOUNTING ON THE S TATEMENT OF COMPREHENSIVE INCOME € million 2023 2022 Currency risk: Hedging instruments included in hedge accounting Unrealized gains and losses on hedging instruments 6 30 Reclassification of realized gains and losses to profit or loss –20 10 Cost of hedging Unrealized gains and losses relating to cost of hedging –3 0 Reclassification of realized gains and losses to profit or loss 7 4 RECONCILIATION OF CASH FLOW HEDGE RESERVE € million 2023 2022 Balance as of 01/01 31 –30 Gains or losses from effective hedges 9 45 Reclassification to profit or loss due to recognition of hedged item in profit or loss –29 15 Other changes (foreign exchange effects) 0 1 Balance as of 12/31 11 31 RECONCILIATION OF THE RESERVE FOR COST OF HEDGING € million 2023 2022 Balance as of 01/01 3 0 Gains or losses from effective hedges –5 0 Reclassification to profit or loss due to recognition of hedged item in profit or loss 10 5 Other changes (foreign exchange effects) 1 –2 Balance as of 12/31 10 3 Hedging of interest rate risk through hedge accounting Of the outstanding total amount of €8,330 million (previous year: €5,700 million) issued by TRATON Finance, €2,050 million (previous year: €2,050 million) is included in hedge accounting as of December 31, 2023; interest rate swaps are used to hedge against inter- est rate changes. In addition, the TRATON GROUP entered into an interest rate swap with a nominal value of €271 million (previous year: €–) in September 2023 to hedge the inter- est rate risk of Navistar Financial Corporation’s fixed-rate asset-backed securities debt. The interest rate swaps and the hedged items have the same material conditions, which is why an offsetting economic relationship can be assumed. Nevertheless, ineffectiveness arises mainly because of TRATON’s nondesignated own credit risk, which is reflected in the measurement of the swaps. The hedging relationships are accounted for as a fair value hedge. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 199 ===== SIDA 200 ===== The following tables show details of the derivatives: AMOUNT, TIMING, AND UNCERTAINTY OF CASH FLOWS 2023 2022 Maturity Maturity € million < 1 year 1–5 years > 5 years Total < 1 year 1–5 years > 5 years Total Interest rate risk: Interest rate swaps 101 143 8 253 81 220 52 353 The average rate for interest rate swaps used to hedge interest rate risk in fair value hedges was 0.54% (previous year: 0.45%). INFORMATION ON HEDGING INSTRUMENTS INCLUDED IN HEDGE ACCOUNTING € million 2023 2022 Interest rate risk: Accumulated fair value change to determine hedge ineffectiveness –168 –256 Nominal amount 2,321 2,050 INFORMATION ON HEDGED ITEMS INCLUDED IN HEDGE ACCOUNTING € million 2023 2022 Interest rate risk: Carrying amount of financial liabilities 2,147 1,779 Accumulated amount of hedge adjustments –172 –271 Accumulated fair value change to determine hedge ineffectiveness 172 271 Ineffectiveness recognized in profit or loss and reported in other financial result –10 15 Offsetting financial assets and liabilities Accounting policies: offsetting financial assets and liabilities Financial assets and financial liabilities are generally reported at their gross carrying amounts. They are only offset if the TRATON GROUP currently has a legally enforceable right to offset the recognized amounts and intends to do so. The following table presents information about the effects of offsetting on the consoli- dated balance sheet and the potential financial effects of offsetting in the case of instru- ments that are subject to a legally enforceable master netting arrangement or a similar agreement. With the exception of the offset amounts presented below, the gross amounts correspond to the net amounts because they were not offset in the consolidated balance sheet. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 200 ===== SIDA 201 ===== OFFSETTING FINANCIAL ASSETS AND LIABILITIES Amounts that are not offset in the balance sheet € million Gross amount Gross amount offset in the balance sheet Net amount presented in the balance sheet Financial instruments Collateral pledged Net amount as of 12/31 2023 Financial assets Derivative financial instruments 337 – 337 –260 – 77 Trade receivables 3,928 –35 3,894 – – 3,894 Financial liabilities Derivative financial instruments 579 – 579 –260 – 320 Financial liabilities 21,704 – 21,704 – –957 20,747 Trade payables 5,826 –35 5,791 – – 5,791 2022 Financial assets Derivative financial instruments including IFRS 5 companies 397 – 397 –227 – 169 Trade receivables including IFRS 5 companies 3,380 –32 3,348 – – 3,348 Financial liabilities Derivative financial instruments including IFRS 5 companies 826 – 826 –227 – 598 Financial liabilities including IFRS 5 companies 21,131 – 21,131 – –767 20,364 Trade payables including IFRS 5 companies 5,550 –32 5,518 – – 5,518 The “Financial instruments” column shows the amounts that are subject to a master netting arrangement but that have not been offset in the consolidated balance sheet because they do not meet the offsetting criteria. The “Collateral pledged” column contains financial receivables that were pledged as collateral for leases. Vehicles were also pledged as collateral in addition to these leases. It also contains payments for receivables that were pledged as collateral in order to obtain more favorable financing conditions. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 201 ===== SIDA 202 ===== 36. Natur e and extent of risks arising from financial instruments Principles of financial risk management Due to the TRATON GROUP’s business activities and international focus, its assets, liabil- ities, and forecast transactions are exposed to credit, liquidity, currency, interest rate, and commodity price risk. The Group’s currency, interest rate, and commodity price risks are hedged with banks on the basis of internally defined limits. The TRATON GROUP uses suitable financial instru- ments such as derivatives to do this. Financial risks from balance sheet items, the order backlog, and other projected transactions are hedged. Such risks are not managed cen- trally, but directly by TRATON SE and each of its brands. The relevant requirements of each company are considered since different functional currencies and business envi - ronments apply. Counterparty risk is diversified as much as possible and monitored centrally. Liquidity risk is minimized by diversifying the sources of funding and ensuring a balanced mix of funding with different maturities, currencies, and interest rate agreements. The TRATON GROUP management is notified regularly about the financial risk position. Compliance with the applicable Group policies is reviewed by the internal Audit function. Credit and default risk The TRATON GROUP is exposed to credit risk through its business operations and financ- ing activities. From the Group’s perspective, credit risk entails the risk that a party to a financial instrument will fail to meet its contractual obligations and thus cause a financial loss for the Group. Credit risk comprises both the direct default risk and the risk of a deterioration in credit quality. The maximum credit risk is reflected in the carrying amount of the financial assets rec - ognized in the balance sheet. The TRATON GROUP holds collateral and other credit enhancements to further mitigate credit risk. Assets assigned as security, credit insur - ance, and guarantees are used as collateral. The risk from primary financial instruments is additionally accounted for by recognizing bad debt allowances. The financial institutions and investment forms are carefully selected when investing cash funds, while a central limit system ensures diversification. Significant investments and derivatives are only entered into with national and international prime-rated banks. There are no material concentrations of credit risk in the TRATON GROUP. Credit risk related to credit commitments to customers is managed decentrally, consid- ering certain limits and using local credit quality assessments. Decisions on major credit commitments for the TRATON GROUP are made in subgroup credit committees. The maximum exposure to credit risk resulting from financial guarantees issued and irrevo- cable credit commitments is determined by the amount that the TRATON GROUP would have to pay in the event of claims under these guarantees. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 202 ===== SIDA 203 ===== RECONCILIATION OF THE LOSS ALLOWANCE FOR FINANCIAL ASSETS MEASURED AT AMORTIZED COST General approach € million 12-month expected credit losses (Stage 1) Lifetime expected credit losses — not impaired (Stage 2) Lifetime expected credit losses — impaired (Stage 3) Purchased credit-impaired assets (Stage 4) Simplified approach Total Loss allowance as of 01/01/2023 25 11 32 5 143 215 Change 13 0 2 –2 35 49 Loss allowance as of 12/31/2023 38 11 34 3 179 264 Loss allowance as of 01/01/2022 13 5 25 2 119 165 Change 11 6 6 2 24 50 Loss allowance as of 12/31/2022 25 11 32 5 143 215 CHANGES IN LOSS ALLOWANCE FOR LEASE RECEIVABLES 2023 2022 € million Simplified approach Simplified approach Loss allowance as of 01/01 338 94 Change –197 244 Loss allowance as of 12/31 141 338 The loss allowance relates mainly to credit risk from trade receivables and financial ser- vices receivables. The decline in the loss allowance for lease receivables is due above all to the sale of the companies in Russia. As of December 31, 2022, the loss allowance included impairment losses on lease receivables in the amount of €206 million that were recognized as a result of the war in Ukraine and the planned sale of the business activities of Scania Finance Russia. These are no longer included in the loss allowance as of Decem- ber 31, 2023, due to the sale of the companies. The gross carrying amounts of financial assets measured at amortized cost increased by €1,942 million to €14,910 million (previous year: €12,967 million) due in particular to new financial services receivables and newly established trade receivables allocated to the simplified approach. The TRATON GROUP uses collateral, among other things, to lower credit risk. For financial assets with objective indications of impairment at the reporting date, the collateral mit- igates the risk by €74 million (previous year: €33 million). The carrying amounts of financial assets and the credit risk exposure of financial guar - antees and credit commitments by credit risk rating grade are presented in the following. Credit risk rating grade 1 consists of financial instruments not exposed to any credit risk. Credit risk rating grade 2 consists of financial instruments that are subject to intensive credit management. Credit risk rating grade 3 consists of impaired financial instruments. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 203 ===== SIDA 204 ===== GROSS CARRYING AMOUNTS OF FINANCIAL ASSETS BY RATING GRADE € million 12-month expected credit losses (Stage 1) Lifetime expected credit losses — not impaired (Stage 2) Lifetime expected credit losses — impaired (Stage 3) Purchased credit- impaired assets (Stage 4) Simplified approach 12/31/2023 12-month expected credit losses (Stage 1) Lifetime expected credit losses — not impaired (Stage 2) Lifetime expected credit losses — impaired (Stage 3) Purchased credit- impaired assets (Stage 4) Simplified approach 12/31/2022 Rating grade Credit risk rating grade 1 10,479 – – 7 8,667 19,153 9,181 – – 8 7,950 17,139 Credit risk rating grade 2 – 245 – 1 622 868 – 213 – 1 507 721 Credit risk rating grade 3 – – 104 2 257 363 – – 69 4 212 285 10,479 245 104 10 9,546 20,384 9,181 213 69 13 8,669 18,145 In the case of financial guarantee contracts and credit commitments, the bulk of the default risk exposure, accounting for €1,873 million (previous year: €1,868 million), relates to financial instruments for which the impairment loss is calculated on the basis of the expected 12-month credit loss (Stage 1), and is therefore allocated to credit risk rating grade 1. Liquidity risk Liquidity risk describes the risk that the TRATON GROUP will have difficulty in meeting its obligations associated with financial liabilities or that it can only procure liquidity at a higher price. To counter the liquidity risk, cash inflows and outflows and due dates are continuously monitored and managed. Cash requirements are primarily met by our oper- ating business and by external financing arrangements. The TRATON GROUP’s solvency and liquidity are assured at all times by rolling liquidity planning, a liquidity reserve in the form of cash, credit lines with financial institutions and companies of the Volkswagen Group, and the issuance of securities on international money and capital markets. Special issuance programs and financing lines have been established for companies in the TRATON Financial Services segment to cover their funding requirements. There were no material concentrations of liquidity risk in the past fiscal year. Cash and cash equivalents amounted to €1,730 million (previous year: €1,439 million) as of December 31, 2023. Cash and cash equivalents in certain countries (e.g., Brazil, China, and Poland) in the amount of €792 million (previous year: €628 million) are subject to exchange controls and are not available to the Group for cross-border transactions with- out restriction. Such amounts are used locally to cover the financing needs of the oper - ating business. No cash and cash equivalents are reported in the current year under “Assets held for sale.” In the previous year, cash and cash equivalents of €304 million were reported that were in Russia and also not available to the Group for cross-border transactions without restriction. The liquidity reserve available to the TRATON GROUP consists of unused confirmed credit lines of €8,000 million (previous year: €6,780 million), including €3,500 million (previous year: €2,280 million) from Volkswagen AG. The TRATON GROUP also has €624 million (previous year: €457 million) in unused unconfirmed credit lines from banks at its disposal in order to enhance flexibility in financing decisions. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 204 ===== SIDA 205 ===== The following table shows how the cash flows relating to liabilities, derivatives, and finan- cial guarantees affect the TRATON GROUP’s liquidity position: 2023 2022 Maturity overview Remaining contractual maturities Remaining contractual maturities € million 2024 2025–2028 > 2028 2023 2024–2027 > 2027 Financial liabilities 1 8,014 12,170 2,662 8,883 10,557 2,710 Trade payables 1 5,780 11 1 5,502 16 0 Other financial liabilities 1, 2 1,973 1,558 102 1,965 1,860 115 Derivatives 5,203 3,726 1,950 5,785 5,141 1,140 Financial guarantees 734 – – 860 – – 21,704 17,464 4,715 22,995 17,574 3,966 1 The amounts were calculated as follows: – If ther e is no agreement on contractual maturity, the liability refers to the earliest possible maturity date. – In the case of variable interest rate agreements, interest reflects the conditions as of the reporting date. – It is assumed that the cash outflo ws will not occur earlier than shown. 2 The undisc ounted maximum cash outflows from buyback obligations are recognized as a financial liability. Derivatives comprise both cash outflows from derivatives with negative fair values and cash outflows from derivatives with positive fair values for which gross settlement has been agreed. Derivatives entered into through offsetting transactions are also accounted for as cash outflows. The cash outflows from derivatives for which gross settlement has been agreed are matched by cash inflows that are not disclosed in the maturity analysis. If these cash inflows had also been recognized, the cash outflows presented would be significantly lower. This also applies in particular if hedges have been closed out through offsetting transactions. The cash outflows from irrevocable credit commitments are presented in Note “40. Other financial obligations,” classified by contractual maturities. In addition, certain TRATON GROUP companies use supplier finance arrangements. These continue to be presented in the balance sheet under trade payables because they meet the definition of a trade payable, and the contractual terms (e.g., payment terms) do not change or do not change materially. Collateral is not pledged in this context. Correspond- ingly, the cash outflow is reported in net cash provided by/used in operating activities. As of December 31, 2023, trade payables included €559 million (previous year: €521 million, prior-year amount adjusted) attributable to supplier finance arrangements. This does not result in any material liquidity risk or any risks from risk concentrations. Currency risk Currency risk describes the risk of negative effects on earnings, cash flow, and balance sheet items due to exchange rate movements. The TRATON GROUP’s currency risk is a result of its investments, financing measures, and operating activities. Currency forwards, currency options, currency swaps, and cross-currency swaps are used to mitigate risks to future cash flows. The inclusion of subsidiaries or other affiliated Group companies in countries outside the eurozone in the consolidated financial statements represents a risk as a result of currency translation. As a general rule, TRATON does not use derivatives to hedge these translation risks. Assets in the TRATON Financial Services segment should generally be funded by liabili- ties in the same currency. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 205 ===== SIDA 206 ===== Hedging transactions entered into as part of foreign currency risk management were mainly in Swedish kronor, British pounds sterling, US dollars, and Brazilian reais. There are no material concentrations of currency risk in the TRATON GROUP. The primary and derivative financial instruments at the end of the reporting period were measured in a hypothetical scenario as part of a sensitivity analysis. The effects of a 10% increase/decrease in an exchange rate were as follows: 12/31/2023 12/31/2022 Equity Earnings for the period Equity Earnings for the period € million +10% –10% +10% –10% +10% –10% +10% –10% Currency pair EUR/SEK – – –221 221 – – –59 59 EUR/BRL – – –181 181 – – –57 57 EUR/GBP 28 –34 26 –32 37 –45 –4 5 SEK/USD – – 22 –22 – – –14 14 CLP/USD – – –12 12 – – 1 –1 USD/BRL 2 –3 8 –8 2 –3 –21 22 EUR/CHF 8 –10 1 –1 9 –11 3 –4 SEK/CNY – – 7 –7 – – –4 4 Interest rate risk Interest rate risk describes the risk of negative effects from movements in interest rates. Financial instruments that are sensitive to movements in interest rates are exposed to interest rate risk in the form of fair value risk or cash flow risk. Fair value risk is calculated using the sensitivity of the carrying amount of a recognized financial instrument to changes in market interest rates. Cash flow risk describes the exposure to variability in future interest payments in response to interest rate movements. Interest rate swaps and cross-currency swaps are used to implement the risk management strategy. The TRATON GROUP is exposed to interest rate risk from interest rate-sensitive assets and liabilities. Intragroup financing arrangements are mainly funded at matching maturities. Departures from the Group’s standards are subject to centrally defined limits and are monitored continuously. Interest rate risk within the meaning of IFRS 7 is calculated for the companies using sensitivity analyses. Any earnings effects attributable to interest rate sensitivity would be recognized exclusively in earnings for the period. The Group’s activities in the TRATON Financial Services segment are managed to largely match assets and liabilities in order to minimize interest rate mismatches. Appropriate risk methodologies are applied. There are no material concentrations of interest rate risk in the TRATON GROUP. If market interest rates had been 100 basis points (bps) higher as of December 31, 2023, earnings after tax would have been €51 million lower (previous year: €41 million lower). If market interest rates had been 100 bps lower as of December 31, 2023, earnings after tax would have been €51 million higher (previous year: €42 million higher). Commodity price risk The TRATON GROUP is primarily exposed to commodity price risk from fluctuations in the price and availability of commodities. Commodity price risks are captured centrally at regular intervals for MAN Truck & Bus and Navistar Sales & Services and hedged exter- nally based on defined risk limits, provided there are liquid markets. This approach also considers whether changes in commodity prices will be reflected in higher selling prices for the products. The Group enters into cash-settled commodity futures to mitigate these risks. There were no material concentrations of risk in the past fiscal year. Cash-settled commodity futures had been entered into at the balance sheet date to hedge commodity and energy price risks relating to heating oil, nonferrous metals, pre- cious metals, and rubber with a fair value of €1 million (previous year: €–5 million). Hedge accounting is not used at present. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 206 ===== SIDA 207 ===== The maximum remaining maturity of hedges of future transactions at the end of fiscal year 2023 was 30 months (previous year: 20 months). Reflecting the sensitivity analysis of currency risk, a hypothetical 10% increase/decrease in the value of commodity prices did not have any significant effect on earnings after tax. Interest rate benchmark reform The TRATON GROUP no longer had any financial instruments referencing USD LIBOR after June 30, 2023. Additionally, the responsible supervisory authority approved the reform of STIBOR. This means that the TRATON GROUP has completed the transition process for interest rate benchmarks as part of the reform of interest rate benchmarks. 37. C apital management The TRATON GROUP’s capital management ensures that the goals and strategies can be achieved in the interests of its shareholders, employees, and other stakeholders. In par- ticular, management focuses on generating the minimum return on invested capital in the TRATON Operations business area that is required by the capital markets, which is determined via the return on investment ( ROI), and on increasing the return on equity in the TRATON Financial Services segment. Return on investment is calculated based on operating result after tax. In addition to operating result of the TRATON Operations business area, the calculation also includes operating result of the TRATON Holding, consolidation effects between the TRATON Oper- ations business area and the TRATON Holding, and earnings effects from the purchase price allocation with regard to the TRATON Operations business area. An overall average tax rate of 30% is applied. Invested capital is calculated as total recognized operating assets (intangible assets, property, plant, and equipment, assets leased out, inventories, and receivables) less noninterest-bearing liabilities (trade payables and contract liabili- ties). Average invested capital is derived from the balance at the beginning and the end of the reporting period. The return on equity in the TRATON Financial Services segment is calculated as the ratio of earnings before tax to average equity. An additional goal is to satisfy the capital requirements of the banking regulator. To do so, a planning procedure integrated into internal reporting has been put in place, allow- ing the required equity to be continuously determined on the basis of actual and expected business performance. The external minimum capital requirements applicable to certain companies in the TRATON Financial Services segment were met. The return on investment in the TRATON Operations business area as well as the return on equity in the Financial Services segment are shown in the following table: € million 2023 2022 TRATON Operations Operating result for ROI after tax 2,600 1,108 Annual average invested capital 17,528 16,595 Return on investment (ROI) (in %) 14.8 6.7 TRATON Financial Services Earnings before tax 171 80 Average equity 2,030 1,999 Return on equity before tax (in %) 8.4 4.0 38. C ontingent liabilities and commitments Accounting policies: contingent liabilities and commitments If the criteria for recognizing a provision are not met, but the outflow of financial resources is not improbable, or if the provision amount cannot be measured r eliably, such obligations are disclosed in the form of the note shown below. Contingent liabilities are only recognized as a provision once the obligations are more certain, i.e., the outflow of financial resources has become probable, and their amount can be reliably estimated. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 207 ===== SIDA 208 ===== CONTINGENT LIABILITIES AND COMMITMENTS € million 12/31/2023 12/31/2022 Liabilities under buyback guarantees 2,926 2,555 Contingent liabilities under guarantees 777 904 Other contingent liabilities 1,133 1,033 4,835 4,492 Customer liabilities to financial services companies of the Volkswagen Group, to joint ventures and, to a small extent, to third parties are covered by standard industry buyback guarantees under which TRATON is obliged to buy back vehicles from the financial ser - vices company in the event of default. Liabilities under buyback guarantees at the end of the fiscal year amounted to €2,781 million (previous year: €2,534 million) owed to financing companies of the Volkswagen Group, €134 million (previous year: €0 million) owed to joint ventures, and €11 million (previous year: €21 million) owed to third parties. The maximum expenses from such obligations are shown under “Liabilities under buy - back guarantees.” However, experience shows that the majority of these guarantees expire without being drawn upon. As of December 31, 2023, contingent liabilities under guarantees include financial guar- antees of €742 million (previous year: €870 million). These are mostly default guarantees by Navistar in favor of banks. The guarantees in favor of or for related party entities were insignificant at year-end. Other contingent liabilities relate mainly to contingent liabilities for potential charges from tax risks, which exist primarily for Volkswagen Truck & Bus. For further information, refer to Note “39. Litigation/legal proceedings.” 39. Litigation/legal pr oceedings MAN and Scania/EU antitrust proceedings After unannounced inspections at the premises of several European truck manufactur - ers including MAN and Scania in 2011, the European Commission initiated proceedings in 2014 for suspected violations of EU antitrust rules in the European truck sector. On July 19, 2016, the European Commission issued a settlement decision (the “Settlement Decision”) against MAN and four other European truck manufacturers (excluding Scania) holding that collusive arrangements on pricing and gross price increases for medium- and heavy-duty trucks in the European Economic Area and the timing and the passing on of costs for the introduction of emission technologies for medium- and heavy-duty trucks required by Euro 3 to Euro 6 standards had lasted from January 17, 1997, to Janu- ary 18, 2011 (for MAN: until September 20, 2010). While the other four truck manufacturers were fined, MAN was granted immunity from fines since it had acted as a key witness and informed the European Commission of the antitrust infringements in September 2010. Scania decided not to apply for leniency and not to settle this antitrust case and, by decision of the European Commission dated September 27, 2017 (the “Scania Deci - sion”), received a fine in the amount of approximately €880.5 million. Scania appealed the Scania Decision to the General Court of the European Union and asked for full annul- ment. On February 2, 2022, the General Court rendered its judgment, whereby Scania’s appeal was dismissed in its entirety and the amount of fines set by the European Com- mission upheld. On April 8, 2022, Scania appealed against the judgment of the General Court of the European Union from February 2, 2022, to the European Court of Justice. The €880.5 million fine plus interest from the EU antitrust proceedings was paid on April 12, 2022, to avoid additional interest penalties. On February 1, 2024, the European Court of Justice decided to dismiss Scania’s appeal. Following the Settlement Decision, a significant number of (direct and indirect) truck customers in various jurisdictions have initiated or joined lawsuits against MAN and/or Scania. With the merger of MAN SE with TRATON SE taking effect, TRATON SE has — in most jurisdictions — aut omatically assumed the procedural role of MAN SE as legal suc- cessor in the respective proceedings (and is insofar covered by “MAN companies”). Even if such claims may have expired under the respective applicable local laws, it cannot be excluded that further lawsuits will be filed. The claims against MAN companies differ significantly in scope; while some truck customers only bought or leased a single truck, Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 208 ===== SIDA 209 ===== other cases concern a multitude of trucks. Furthermore, some truck customer damages claims have been combined in class actions or through claim aggregators to which the truck customers assigned their respective damages claims. In 2023, MAN companies were for the first time held jointly and severally liable for alleged damages in two cases in Germany. The Regional Court of Berlin put aside expert reports from both the claimants and the defendants and estimated the damages freehand at up to 5% of the purchase price of the respective trucks. The defendant MAN companies have appealed both decisions. By contrast, most Regional Courts in Germany — t o the extent they have not dismissed respective claims — ha ve issued “orders for evidence to be taken” (Beweis beschlüsse) so that an expert can clarify the question of whether any damages have been sustained and, if so, in what amount. While some experts retained by the courts have already delivered their expert opinions, the MAN companies involved have filed complaints as well as requests and supplemental questions, which are currently under review by the respective experts. In addition to a series of dismissals of lawsuits — some of them alr eady final — in various countries, individual courts in Spain have upheld a number of damages claims — either in part or in full. The defendant MAN companies have appealed all of the decisions (with one negligible exception) or will do so within the statutory period. While in a few cases, the respective court of appeal has already revoked the decision of the court of first instance, in other cases, the respective court of appeal has upheld the first instance ruling awarding damages — in full or in p art. In June 2023, the Spanish Supreme Court confirmed a freehand estimate of damages by the respective Court of Appeals of 5% of the purchase price of the respective trucks for so-called “first wave claims.” The MAN companies involved have filed complaints to the Spanish Constitutional Court against these rulings, which are currently pending. Since such complaints have no suspensive effect and since the Supreme Court has rejected further requests for appeals in a number of cases, 36 Spanish judgments award- ing damages have become final, while the defendant MAN companies will continue to appeal all decisions awarding damages. In Belgium, a judgment on the merits and a judgment awarding damages (on an equitable basis) have been issued against MAN. MAN companies have appealed both decisions. In the meantime, the respective plaintiffs have withdrawn both claims. In Portugal, the first instance court of Santarém held an MAN company liable and awarded damages in one case. The defendant MAN company has appealed this decision. A relatively small number of (direct and indirect) customers in various jurisdictions have initiated or joined lawsuits against Scania. Further, Scania has received a number of third-party notices from other defendant commercial vehicle manufacturers. As is the case for MAN, the claims against Scania differ significantly in scope as some customers only bought or leased one truck while others operate a whole fleet of commercial vehicles. Furthermore, some customer damages claims in other jurisdictions have been combined in class actions or through claim aggregators. The exact number of commercial vehicles involved is, however, unknown. As of December 31, 2023, no provisions were recognized for the majority of these cases as it is not assumed as of the reporting date that there will be a final and unappealable court ruling awarding damages. Provisions in the amount of €89 million (previous year: €– million) were recognized for cases in which, as a result of a reassessment of the risks, a final and unappealable ruling under which MAN or Scania would have to pay damages is more likely than unlikely at present. No contingent liabilities were reported because these damages cannot currently be quantified. In particular, this applies to proceedings that are still in the early stages, including those in the early stages of expert appraisals. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 209 ===== SIDA 210 ===== VW Truck & Bus Ltda. In the tax proceedings between Volkswagen Truck & Bus Indústria e Comércio de Veícu- los Ltda. (VW Truck & Bus Ltda.), formerly MAN Latin America Indústria e Comércio de Veículos Ltda. (MAN Latin America), and the Brazilian tax authorities, the Brazilian tax authorities took a different view of the tax implications of the acquisition structure cho- sen by MAN SE (now merged with TRATON SE) for the acquisition of VW Truck & Bus Ltda. in 2009. The tax proceedings have been divided into two auditing periods, covering the years 2009–2011 (Phase 1) and 2012–2014 (Phase 2). In December 2017, an adverse last instance judgment was rendered by the Brazilian Administrative Court (Phase 1), which was negative for VW Truck & Bus Ltda. VW Truck & Bus Ltda. appealed this judgment before a regular judicial court in 2018. This lawsuit was dismissed in 2019, and an appeal was filed against the dismissal. The appeal was then rejected in June 2023, and a petition for review was filed in July 2023. In the tax proceeding related to Phase 2, a partial success was achieved that partly reduced the penalties. An appeal against this decision was filed, which was rejected in September 2023, thus concluding the Administrative Court pro - ceedings. As a result of a new law regarding the handling of casting vote decisions in September 2023, VW Truck & Bus Ltda. filed an objection to the determinations of Phases 1 and 2 in October 2023. Due to the potential range of penalties plus interest which could apply under Brazilian law, the estimated size of the risk in the event that the tax author- ities are able to prevail overall with their view is uncertain. This could result in a risk of about BRL 3.4 billion (equivalent to €0.6 billion as of December 31, 2023) for the contested period from 2009 onward. This assessment is based on the accumulated accounts at the reporting date for the claimed tax liability including the potential penalty surcharges, as well as accumulated interest, but excluding any future interest and without discounting any cash flows. Several banks have issued bank guarantees for the benefit of VW Truck & Bus Ltda. as is customary in connection with such tax proceedings, which in turn are secured by TRATON SE. Update on the MAN SE merger squeeze-out The merger of MAN SE with TRATON SE was entered in the commercial register of MAN SE and TRATON SE on August 31, 2021. With this, MAN SE ceased to exist as an independent legal entity, and all rights and obligations were transferred to TRATON SE. MAN SE shares were delisted at the same time. Cash compensation in the amount of €70.68 per common and preferred share was paid out to MAN SE noncontrolling shareholders on September 3, 2021. This marked the c onclusion of the MAN SE merger squeeze-out. The appropriateness of the cash com - pensation will be reviewed by a court-appointed auditor as part of the judicial award proceedings initiated by affected noncontrolling interest shareholders. TRATON submit- ted its response to the court at the end of June 2022. An oral hearing has not yet been scheduled. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 210 ===== SIDA 211 ===== 40. O ther financial obligations 2023 2022 € million Due 2024 Due 2025–2028 Due from 2029 Total 12/31/2023 Due 2023 Due 2024–2027 Due from 2028 Total 12/31/2022 Purchase order commitments for property, plant, and equipment 590 344 0 934 354 259 1 614 intangible assets 21 24 1 46 20 37 – 58 Obligations from irrevocable credit and lease commitments to customers 824 91 8 923 673 88 9 770 long-term rental and lease contracts 40 29 5 73 30 43 8 81 Miscellaneous financial obligations 66 240 0 306 101 267 2 370 In addition to the other financial obligations shown, there were long-term purchase obli- gations from battery procurement contracts between TRATON GROUP companies and Northvolt Group companies amounting to approximately €7,218 million (previous year: €2,504 million). On December 15, 2021, the TRATON GROUP signed the contract to establish the Milence charging infrastructure joint venture together with Daimler Truck and the Volvo Group and undertook to invest a total amount of up to €167 million in this joint venture. In 2023, €39 million (previous year: €5 million) was paid into Milence’s equity. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 211 ===== SIDA 212 ===== 41. Relat ed party disclosures Accounting policies: related party disclosures Related parties from the TRATON GROUP’s perspective as of December 31, 2023, were: – V olkswagen Finance Luxemburg – Volkswagen AG and its subsidiaries, together with its significant investees out - side the TRATON GROUP – P orsche Automobil Holding SE, Stuttgart (Porsche Stuttgart), which has signifi- cant influence on the Volkswagen Group’s operating policy decisions within the meaning of IAS 28 Investments in Associates and Joint Ventures, together with its affiliated companies and related parties – The stat e of Lower Saxony and its related majority-owned interests – Other individuals or entities that can be influenced by the TRATON GROUP or that can influence the TRATON GROUP, such as: • Member s of TRATON SE’s Executive and Supervisory Boards • Members of the Board of Management and Supervisory Board of Volkswagen Finance Luxemburg • Members of the Board of Management and Supervisory Board of Volkswagen AG • Associates and joint ventures • Unconsolidated subsidiaries Some members of the Executive and Supervisory Boards of the TRATON GROUP are members of supervisory and executive boards or shareholders of other companies with which the TRATON GROUP has relations in the normal course of business. On December 31, 2023, Volkswagen Finance Luxemburg, a wholly owned subsidiary of Volkswagen AG, held 89.72% (previous year: 89.72%) of TRATON SE’s share capital. Addi- tionally, Mr. Levin held 3,600 (previous year: 3,600) shares of TRATON SE on December 31, 2023. The following tables present the amounts of supplies and services transacted, as well as outstanding receivables and obligations, between consolidated companies of the TRATON GROUP and its related parties, including Volkswagen AG. There were no significant trans- actions with Porsche Stuttgart, Volkswagen Finance Luxemburg, or the state of Lower Saxony in any of the reported periods presented. RELATED PARTIES Sales and services rendered Purchases and services received € million 2023 2022 2023 2022 Volkswagen AG 23 5 273 186 Other subsidiaries and equity investments of Volkswagen AG that are not part of the TRATON GROUP 2,032 1,934 1,118 949 Unconsolidated subsidiaries 26 16 11 11 Associates and their majority-owned interests 226 175 239 254 Joint ventures and their majority-owned interests 95 13 44 49 Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 212 ===== SIDA 213 ===== Receivables from Liabilities (including obligations) to € million 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Volkswagen AG 10 11 971 1,904 Other subsidiaries and equity investments of Volkswagen AG that are not part of the TRATON GROUP 1 813 624 9,575 5,216 Unconsolidated subsidiaries 41 60 46 40 Associates and their majority-owned interests 51 40 17 12 Joint ventures and their majority-owned interests 1 3 5 123 162 1 The pr evious year was adjusted (liabilities (including obligations) to related parties). Supplies and services rendered to other subsidiaries and investees of Volkswagen AG that are not part of the TRATON GROUP mainly relate to the sales financing business of MAN Truck & Bus, in which customer finance for vehicles is provided by Volkswagen Financial Services. Supplies and services received from other subsidiaries and investees of Volkswagen AG that are not part of the TRATON GROUP relate mainly to unfinished goods and products. On July 12, 2023, companies of the TRATON GROUP and companies of the Volkswagen Group signed a framework agreement on the gradual acquisition of key aspects of the global MAN and VWTB financial services business. TRATON Financial Services AB, Söder- tälje, Sweden, paid €275 million into an account at VW Bank for the acquisition on July 19, 2023. The associated restricted cash amounted to €271 million as of December 31, 2023, and is reported as a receivable in other subsidiaries and equity investments of Volkswagen AG that are not part of the TRATON GROUP. Effective August 1, 2023, 50% of the shares in the joint venture MAN Financial Services (SA) (RF) (Pty) Ltd., Johannesburg, South Africa, were acquired. The purchase price for the joint venture amounted to €4 million. The acquisition increased sales and services rendered to joint ventures and their majority- owned interests. The other transfers in the remaining countries had not yet been completed as of the reporting date. In October 2022, the TRATON GROUP entered into an agreement to sell 100% of its inter- est in Scania Finance Russia to companies of the Volkswagen Group. The transaction was completed on January, 17, 2023, after all regulatory approvals had been obtained. The sale price was €400 million. The bank balances of Scania Finance Russia amounting to €287 million in relation to a company of the Volkswagen Group recognized as of Decem- ber 31, 2022, were disposed of. For further information, see Note “8. Noncurrent assets and disposal groups held for sale.” Liabilities to Volkswagen AG include loans granted by Volkswagen AG in the amount of €500 million (previous year: €1,720 million) resulting from a €4,000 million (previous year: €4,000 million) credit line. The credit facility is subject to market interest rates. Further- more, an additional credit line of €297 million was drawn down from Volkswagen AG in 2023. The sharp increase in liabilities (including obligations) to other subsidiaries and equity investments of Volkswagen AG that are not part of the TRATON GROUP is primarily attrib- utable to long-term purchase obligations under battery procurement contracts between TRATON GROUP companies and Northvolt Group companies in the amount of €7,218 million (previous year: €2,504 million). The liabilities also relate to liabilities to Volkswagen Financial Services and a new credit line of €359 million from Volkswagen Group of America Finance. The loan of €500 million taken out with Volkswagen Int ernational Luxemburg in 2022 at standard market terms was repaid in full in January 2023. The TRATON GROUP signed the agreement to establish the Milence charging infrastruc- ture joint venture together with Daimler Truck and the Volvo Group on December 15, 2021. As a result, the TRATON GROUP made a capital contribution of €39 million (previous year: €5 million) as of December 31, 2023. The outstanding obligation as of year-end 2023 is €123 million (previous year: €162 million). Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 213 ===== SIDA 214 ===== The sale of receivables to subsidiaries of Volkswagen AG that are not part of the TRATON GROUP amounted to €1,361 million (previous year: €1,251 million) in fiscal year 2023. This relates to the volume of receivables that were transferred and derecognized in each reporting period. Customer liabilities to Volkswagen Financial Services are covered by standard industry buyback guarantees, see Note “38. Contingent liabilities and com- mitments.” The remuneration system for the Executive Board comprises fixed and variable compo- nents. The variable remuneration consists of a performance-related profit bonus with a one-year assessment period and a long-term incentive (LTI) in the form of a performance share plan with a forward-looking four-year term (share-based payment). For the mem- bers of the Executive Board who were already in office prior to December 16, 2020, the remuneration system for the Executive Board applies until their contract is renewed on the condition that the performance share plan continues to have a performance period of three years. The same applies to tranches of the performance share plan that were granted in fiscal years prior to the year beginning January 1, 2021. Liabilities to the current members of the Executive Board and Supervisory Board com - prise outstanding balances for the remuneration of the Supervisory Board, for the fair values of performance shares granted to members of the Executive Board, and for variable remuneration in the amount of €15 million (previous year: €7 million). The pension pro - visions for the members of the Executive Board in office amounted to €2 million (previ- ous year: €2 million) as of December 31, 2023. As of December 31, 2023, a subsidiary of TRATON SE extended a secured loan at a standard market rate of interest to a member of TRATON SE’s Executive Board, which is described in Note “43. Remuneration of the Executive Board and the Supervisory Board in accordance with section 314 of the HGB.” The following expenses were recognized in fiscal year 2023 for the benefits and remu - neration granted to members of the Executive and Supervisory Boards of TRATON SE in the course of their activities as members of governing bodies. € million 2023 2022 Short-term benefits 15 11 Benefits based on performance shares 9 1 Post-employment benefits 2 3 Termination benefits 11 – 38 16 The employee representatives on the Supervisory Board who are employed by TRATON SE or other TRATON GROUP companies also receive their regular salaries as specified in their employment contracts. If they are members of German works councils, this is based on the provisions of the Betriebsverfassungsgesetz (BetrVG — Ger man Works Council Con - stitution Act). Post-employment benefits relate to additions to pension provisions, expenses for defined contribution pension plans, and — d epending on the social security system — c ontribu- tions to the Swedish pension system for current members of the Executive Board. The termination benefits relate to payments to Ms. Danielski and Mr. Osterloh in connec- tion with their early departure from the Executive Board. No member of the Executive Board left TRATON SE in the previous year. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 214 ===== SIDA 215 ===== 42. Ben efits based on performance shares (share-based payment) Accounting policies: share-based payment The share-based payment for the Executive Board and senior management consists of performance shares. Share-based payment obligations are accounted for as cash-settled plans under IFRS 2 Share-based Payment. For these plans, obligations are measured at fair value during the term of the plan using a recognized option pricing model. The total remuneration expense to be recognized corresponds to the actual payout and is recognized over the vesting period. The remuneration system for the Executive Board comprises fixed and variable compo- nents. The variable remuneration consists of a performance-related profit bonus with a one-year assessment period and a long-term incentive (LTI) in the form of a performance share plan with a forward-looking four-year performance period (share-based payment). For the members of the Executive Board who were already in office prior to December 16, 2020, the remuneration system for the Executive Board applies until their contract is renewed on the condition that the performance share plan continues to have a perfor - mance period of three years. The same applies to tranches of the performance share plans that were granted in fiscal years prior to the year beginning January 1, 2021. At the beginning of fiscal year 2022, the group of beneficiaries offered a performance share plan was expanded to include members of the brand Executive Boards who are not members of the Executive Board of TRATON SE under stock corporation law and, in 2023, to include members of Navistar’s management who are entitled to LTIs. The per- formance share plan for brand Executive Board members and members of Navistar’s management largely works in the same way as the performance share plan that applies to the members of the Executive Board of TRATON SE. The performance period is four years for the brand Executive Board members and three or four years for the members of Navistar’s management. At the time the LTI is granted, the annual target amount under the LTI is converted into virtual performance shares on the basis of the initial reference price of TRATON SE shares. These performance shares are allocated to the individual beneficiary as a pure calculation value. At the end of the three- or four-year performance period, a final number of virtual performance shares is determined, based on the degree to which the earnings per share (EPS) performance criterion of the TRATON GROUP has been met. A cash settlement is made at the beginning of the fiscal year following the last fiscal year of the performance period; the issuance of shares of the Company is excluded. The payment amount corre- sponds to the number of specified performance shares multiplied by the closing refer - ence price at the end of the three- or four-year performance period, plus a dividend equivalent for the relevant term. The payment amount under the performance share plan is limited to 200% of the target amount. If the employment contract begins or ends during a year, the target amount is reduced pro rata temporis. At Navistar, the performance shares lapse without replacement or compensation if the employment relationship ends before the end of the performance period. EXECUTIVE BOARD OF TRATON SE, BRAND EXECUTIVE BOARDS, AND MEMBERS OF NAVISTAR’S MANAGEMENT € million 2023 2022 Total expense for the period 33 7 Total carrying amount of the obligation 45 13 Intrinsic value of the liabilities 5 1 Fair value at the time the shares were granted 22 11 Number of performance shares granted 3,141,926 1,231,047 of which number of shares granted in the reporting period 2,031,474 582,441 The increase in the obligation and expenses compared with the prior-year figures is due to the expansion of the performance share plan offered to members of Navistar’s man- agement starting in 2023, the significantly positive performance of the TRATON share price, and additional performance share plans granted to members of the Executive Board who left in 2023 as part of their termination agreement. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 215 ===== SIDA 216 ===== Members of management and employees of the TRATON GROUP not c overed by collective bargaining agreements (excluding Navistar) Since fiscal year 2022, members of management and employees of the TRATON GROUP not covered by collective bargaining agreements have received a retrospective long-term bonus whose performance period covers the fiscal year and the three preceding fiscal years. The length of the performance period will be increased gradually starting in fiscal year 2022. It only covers the fiscal year in question for fiscal year 2022, two years for fiscal year 2023, three years for fiscal year 2024, and four years for the first time starting in fiscal year 2025. Payment depends on the TRATON GROUP’s average EPS performance and TRATON’s share price performance (including dividends) over the performance period, and is limited to 200% of the target amount. The payment amount for all beneficiaries is determined by multiplying the target amount by the degree of EPS target achievement and the ratio between the closing reference price at the end of the period, plus a dividend equivalent, and the opening reference price. As of December 31, 2023, the total carrying amount of the obligation, which corresponded to the intrinsic value of the liabilities, amounted to €24 million (previous year: €23 million). A total expense of €24 million (previous year: €24 million) was recognized for these awards in the reporting period. 43. Remun eration of the Executive Board and the Supervisory Board in accordance with section 314 of the HGB The total remuneration granted to the members of the Executive Board amounted to €17 million (previous year: €15 million). Under the performance share plan, the members of the Executive Board were awarded a total of 409,869 (previous year: 272,166) performance shares for fiscal year 2023, whose value at the award date amounted to €5 million (previous year: €5 million). Outstanding advances in connection with the 2020–2022 tranche of the performance share plan amounted to €– million (previous year: €1 million) as of December 31, 2023. In fiscal year 2023, a total of €1 million (previous year: €– thousand) of the advances paid to the members of the Executive Board was offset against claims of the relevant Executive Board member against the Company. Alternatively, repayment was requested. In addition, a loan extended to a member of the Executive Board in 2021 was outstanding in the amount of €3 million (previous year: €3 million) as of December 31, 2023. Former members of the Executive Board and their surviving dependents were paid €7 million (previous year: €– million) in fiscal year 2023. There were pension provisions of €12 million (previous year: €9 million) for this group of persons. The total remuneration granted to the members of the Supervisory Board amounted to €2 million (previous year: €2 million). 44. F ees paid to the auditor of the consolidated financial statements Of the total fees of €4 million (previous year: €3 million) charged in the year under review for the work performed by the auditor of the consolidated financial statements, EY GmbH & Co. KG Wirtschaftsprüfungsgesellschaft in Germany, €3 million (previous year: €3 million) related to audit services. These comprised the audits of TRATON SE’s consolidated financial statements and of the annual financial statements of the German Group companies as well as intraperiod reviews of the interim financial statements of TRATON SE and the German Group companies. €1 million (previous year: €0 million) related to other assurance services. 45. Ger man Corporate Governance Code The Executive Board and Supervisory Board of TRATON SE issued their annual Declaration of Compliance in December 2023 in accordance with section 161 of the Aktiengesetz (AktG — German Stock Corporation Act), which is reproduced in the Corporate Gover - nance Statement as a separate part of the Combined Management Report and published on TRATON SE’s website at https://ir.traton.com/corporate-governance. Furthermore, TRATON has published a statement regarding departures by TRATON’s corporate gover- nance system from the Swedish Corporate Governance Code. This is also available at https://ir.traton.com/corporate-governance. 46. E vents after December 31, 2023 In January 2024, the TRATON GROUP issued several bonds in euros, Swedish krona, and sterling with a total volume equivalent to €1,270 million under TRATON’s €12,000 million EMTN program. Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 216 ===== SIDA 217 ===== 47. Members of th e Executive Board and their appointments Christian Levin Lidingö, Sweden Chairman of the Executive Board and Chief Executive Officer of TRATON SE Chief Executive Officer of Scania 2 MAN Truck & Bus SE (Chairman) 4 Na vistar International Corporation, USA Scania Gr owth Capital AB, Sweden Scania Gr owth Capital II AB, Sweden TRATON Financial Services AB, Sweden (Chairman) V olkswagen Truck & Bus Indústria e Comércio de Veículos Ltda., Brazil (Chairman) Mathias Carlbaum Hinsdale, USA Member of the Executive Board of TRATON SE Chief Executive Officer and President of Navistar 4 TRATON Financial Services AB, Sweden (since December 15, 2023) Antonio Roberto Cortes São Paulo-Indianópolis, Brazil Member of the Executive Board of TRATON SE Chief Executive Officer of Volkswagen Truck & Bus 3 Santa Jo ana Medical Group, Brazil 4 TRATON Financial Services AB, Sweden (since December 15, 2023) Annette Danielski (until March 31, 2023) Leinfelden-Echterdingen Member of the Executive Board of TRATON SE, responsible for Finance and Business Development 2 MAN Truck & Bus SE (until March 31, 2023) Volkswagen Original Teile Logistik Beteiligungs-GmbH (until March 31, 2023) 4 Na vistar International Corporation, USA (until March 31, 2023) Scania AB, Sweden (Chairwoman) (until March 31, 2023) Scania CV AB, Sweden (Chairwoman) (until March 31, 2023) TRATON Financial Services AB, Sweden (Chairwoman) (until March 31, 2023) TRATON Sweden AB, Sweden (until March 31, 2023) TRATON Treasury AB, Sweden (Chairwoman) (until March 31, 2023) V olkswagen Truck & Bus Indústria e Comércio de Veículos Ltda., Brazil (until March 31, 2023) Dr. Michael Jackstein (since April 1, 2023) Braunschweig Member of the Executive Board of TRATON SE, responsible for Finance, Business Development, and Human Resources 2 MAN Truck & Bus SE 4 Na vistar International Corporation, USA (since April 18, 2023) Scania AB, Sweden (Chairman) (since May 4, 2023) Scania CV AB, Sweden (Chairman) (since May 4, 2023) TRATON Financial Services AB, Sweden (since December 15, 2023) TRATON Sweden AB, Sweden (Chairman) (since April 24, 2023) TRATON Treasury AB, Sweden (Chairman) (until December 14, 2023) TRATON AB, Sweden (since December 14, 2023) V olkswagen Middle East QFZ LLC V olkswagen Truck & Bus Indústria e Comércio de Veículos Ltda., Brazil (since May 2, 2023) Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 217 ===== SIDA 218 ===== Catharina Modahl Nilsson (since April 1, 2023) Stockholm, Sweden Member of the Executive Board of TRATON SE, responsible for Product Management in the TRATON GROUP 3 Chalmer s University of Technology AB, Sweden Knightec AB, Sweden Modahlen Group AB, Sweden Semcon AB, Sweden 4 TRATON AB, Sweden Bernd Osterloh (until March 31, 2023) Wolfsburg, Fallersleben Member of the Executive Board of TRATON SE, responsible for Human Resources 2 V olkswagen Group Services GmbH (until May 16, 2023) 4 A utostadt GmbH (until March 31, 2023) VfL W olfsburg-Fußball GmbH Alexander Vlaskamp Starnberg Member of the Executive Board of TRATON SE Chief Executive Officer of MAN 2 MAN Truck & Bus Deutschland GmbH (Chairman) 3 Sinot ruk (Hong Kong) Ltd., China Rheinmetall MAN Military Vehicles GmbH 4 TRATON Financial Services AB, Sweden As of December 31, 2023 1 Member ship of statutory German supervisory boards 2 Member ship of statutory German supervisory boards, Volkswagen AG Group appointments 3 Member ship of comparable German or foreign governing bodies 4 Member ship of comparable German or foreign governing bodies, Volkswagen AG Group appointments Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 218 ===== SIDA 219 ===== 48. Members of th e Supervisory Board and their appointments Hans Dieter Pötsch Wolfsburg Chairman of the Executive Board of Porsche Automobil Holding SE and Chairman of the Supervisory Board of Volkswagen AG Chairman of the Supervisory Board 1 Bertelsmann Management SE Bertelsmann SE & Co. KGaA Wolfsburg AG 2 AUDI AG Dr . Ing. h.c. F. Porsche AG Volkswagen AG (Chairman) 4 Autostadt GmbH P orsche Austria Gesellschaft m.b.H., Austria (Chairman) P orsche Holding Gesellschaft m.b.H., Austria (Chairman) P orsche Retail GmbH, Austria (Chairman) VfL W olfsburg-Fußball GmbH (Deputy Chairman) Michael Lyngsie* Gnesta, Sweden Chair of IF Metall (labor union in Sweden) at Scania Deputy Chairman of the Supervisory Board 4 Scania AB, Sweden Scania CV AB, Sweden Ödgärd Andersson Gothenburg, Sweden Chairwoman of the Executive Board of Zenseact AB, Sweden 3 Sleep Cycle AB, Sweden (until May 8, 2023) Torsten Bechstädt* Helmstedt Head of Supervisory Board matters of the Chair of the Group Works Council of Volkswagen AG Mari Carlquist* Södertälje, Sweden Representative of PTK (Privattjänstemannakartellen, Confederation of Labor Unions in Sweden) at Scania 4 Scania AB, Sweden Scania CV AB, Sweden TRATON Financial Services AB, Sweden (since December 15, 2023) Daniela Cavallo* Wolfsburg Chairwoman of the General and Group Works Councils of Volkswagen AG 1 Wolfsburg AG 2 PowerCo SE (Deputy Chairwoman) Volkswagen AG V olkswagen Financial Services AG (Deputy Chairwoman) V olkswagen Group Services GmbH 3 Allianz für die Region GmbH (until Ma y 31, 2023) 4 A utostadt GmbH (since April 1, 2023) Br ose Sitech Sp. z o.o. P orsche Holding Gesellschaft m.b.H., Austria Sk oda Auto a.s., Czech Republic SEAT, S.A., Spain VfL W olfsburg-Fußball GmbH Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 219 ===== SIDA 220 ===== Dr. Manfred Döss Wolfsburg Member of the Executive Board of Porsche Automobil Holding SE and member of the Board of Management of Volkswagen AG 2 AUDI AG (Chairman) 3 Gr izzlys Wolfsburg GmbH Jürgen Kerner* Frankfurt Executive Board member of IG Metall 1 Air bus GmbH (previously Premium Aerotec GmbH) Siemens AG Siemens Energy AG Thyssenkrupp AG (Deputy Chairman) 2 MAN Truck & Bus SE (Deputy Chairman) Gunnar Kilian Lehre Member of the Board of Management of Volkswagen AG Member of the Brand Board of Management of Volkswagen Passenger Cars 1 Wolfsburg AG 2 AUDI AG MAN Energy Solutions SE (Chairman) MAN Truck & Bus SE PowerCo SE V olkswagen Group Services GmbH (Chairman) 3 Allianz für die Region GmbH (until June 3 0, 2023) 4 A utostadt GmbH (Chairman) FAW-Volkswagen Automotive Co., Ltd., China Scania AB, Sweden Scania CV AB, Sweden VfL W olfsburg-Fußball GmbH (since May 11, 2023) V olkswagen Immobilien GmbH (Chairman) Dr. Albert X. Kirchmann Lindau, Bodolz Chief Executive Advisor 2 MAN Truck & Bus SE 3 MCE Bank GmbH (until May 31, 2023) Stremler AG (Deputy Chairman) Dr. Julia Kuhn-Piëch Salzburg, Austria Real estate manager 2 AUDI AG MAN Truck & Bus SE 4 Scania AB, Sweden Scania CV AB, Sweden Lisa Lorentzon* Huddinge, Sweden Chair of the Labor Unions for Graduate Employees at Scania 4 Scania AB, Sweden Scania CV AB, Sweden TRATON Financial Services AB, Sweden (since December 15, 2023) Bo Luthin* Södertälje, Sweden Head of Occupational Health and Safety at Scania Södertälje and Coordinator for IF Metall (labor union in Sweden) Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 220 ===== SIDA 221 ===== Nina Macpherson Stocksund, Sweden Member of the Board of Directors of Scania AB 3 M&K Industrials AB, Sweden (Deputy Member) Netel Holding AB, Sweden Scandina vian Enviro Systems AB, Sweden 4 Scania AB, Sweden Scania CV AB, Sweden Dr. Dr. Christian Porsche Salzburg, Austria Specialist in Neurology 2 MAN Truck & Bus SE 4 Scania AB, Sweden Scania CV AB, Sweden Dr. Wolf-Michael Schmid Helmstedt Businessman (Managing Director of the Schmid Group) 1 BRW AG (Chairman) Karina Schnur* Reichertshofen Chairwoman of the SE Works Council and Chairwoman of the Group Works Council of TRATON SE Chairwoman of the SE Works Council and the General and Group Works Council of MAN Truck & Bus SE Chairwoman of the Works Council of MAN Truck & Bus SE, Munich 2 MAN Truck & Bus SE Volkswagen AG (since July 11, 2023) 3 Rheinmetall MAN Military Vehicles GmbH Josef Sedlmaier* (since December 31, 2022) Weichs Chairman of the Works Council of TRATON SE Markus Wansch* Schwabach Deputy Chairman of the Group Works Council of TRATON SE and Chairman of the Works Council of MAN Truck & Bus SE, Nuremberg plant 2 MAN Truck & Bus SE Frank Witter Braunschweig Former member of the Board of Management of Volkswagen AG 1 Deutsche Bank AG 3 CGI Inc., Canada 4 VfL W olfsburg-Fußball GmbH (Chairman) * Elec ted by the workforce As of December 31, 2023, or date of departure 1 Member ship of statutory German supervisory boards 2 Member ship of statutory German supervisory boards, Volkswagen AG Group appointments 3 Member ship of comparable German or foreign governing bodies 4 Member ship of comparable German or foreign governing bodies, Volkswagen AG Group appointments Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 221 ===== SIDA 222 ===== 49. Super visory Board committees (As of December 31, 2023) Presiding Committee Hans Dieter Pötsch (Chairman) Michael Lyngsie (Deputy Chairman) Daniela Cavallo (until March 20, 2023) Jürgen Kerner Gunnar Kilian Dr. Dr. Christian Porsche Karina Schnur (since March 21, 2023) Audit Committee Frank Witter (Chairman) Torsten Bechstädt (Deputy Chairman) Dr. Julia Kuhn-Piëch Lisa Lorentzon Nina Macpherson Karina Schnur Nomination Committee Hans Dieter Pötsch Gunnar Kilian Dr. Dr. Christian Porsche Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 222 ===== SIDA 223 ===== 50. List of shar eholdings LIST OF SHAREHOLDINGS AS OF DECEMBER 31, 2023 Name and domicile of the company Currency Exchange rate (1 euro =) 12/31/2023 Equity interest (in %) Equity in thousands Local currency Result in thousands Local currency Footnote Year I. PARENT COMPANY TRATON SE, Munich II. SUBSIDIARIES A. Consolidated companies 1. Germany KOSIGA GmbH & Co. KG, Pullach i. Isartal EUR 94.00 38,584 497 2022 LOTS Germany GmbH, Koblenz EUR 100.00 25 – 4) 2022 M A N Verwaltungs-Gesellschaft mbH, Munich EUR 100.00 1,039 – 1) 2023 MAN Brand GmbH & Co. KG, Grünwald EUR 100.00 25 40,146 2022 MAN GHH Immobilien GmbH, Oberhausen EUR 100.00 44,668 – 1) 2023 MAN Grundstücksgesellschaft mbH & Co. Epsilon KG, Munich EUR 100.00 665 50 2022 MAN Marken GmbH, Munich EUR 100.00 27 – 1) 2023 MAN Service und Support GmbH, Munich EUR 100.00 25 – 1) 2023 MAN Truck & Bus Deutschland GmbH, Munich EUR 100.00 130,934 – 1) 2023 MAN Truck & Bus SE, Munich EUR 100.00 573,491 – 1) 2023 MAN Zweite Beteiligungs GmbH, Munich EUR 100.00 – – 2022 Navistar Europe GmbH, Nuremberg EUR 100.00 619 2 2022 Scania CV Deutschland Holding GmbH, Koblenz EUR 100.00 66,295 – 1) 2023 SCANIA DEUTSCHLAND GmbH, Koblenz EUR 100.00 36,625 – 1) 2023 Scania Finance Deutschland GmbH, Koblenz EUR 100.00 62,913 – 1) 2023 SCANIA Real Estate Deutschland GmbH, Koblenz EUR 100.00 15,183 – 1) 2023 Scania Versicherungsvermittlung GmbH, Koblenz EUR 100.00 1,322 189 2022 SCANIA Vertrieb und Service GmbH, Koblenz EUR 100.00 9,463 – 1) 2023 TARONA Verwaltung GmbH & Co. Alpha KG, Pullach i. Isartal EUR 100.00 5,124 2,248 2022 Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 223 ===== SIDA 224 ===== LIST OF SHAREHOLDINGS AS OF DECEMBER 31, 2023 Name and domicile of the company Currency Exchange rate (1 euro =) 12/31/2023 Equity interest (in %) Equity in thousands Local currency Result in thousands Local currency Footnote Year TB Digital Services GmbH, Munich EUR 100.00 25 – 1) 2023 TORINU Verwaltung GmbH & Co. Beta KG, Pullach i. Isartal EUR 100.00 18,100 1,866 2022 2. Other countries AB Dure, Södertälje SEK 11.0874 100.00 1,440 – 5) 2022 AB Folkvagn, Södertälje SEK 11.0874 100.00 100 – 5) 2022 AB Scania-Vabis, Södertälje SEK 11.0874 100.00 100 – 5) 2022 Ainax AB, Södertälje SEK 11.0874 100.00 120 – 5) 2022 Bellwether Forest Products, LLC, Camden, South Carolina USD 1.1077 100.00 – – 2022 Bilmetro AB, Gävle SEK 11.0874 100.00 628,874 124,486 2022 Bilmetro Lastbilar i Hudiksvall AB, Gävle SEK 11.0874 100.00 29 –110 2022 Blue Diamond Parts LLC, Lisle, Illinois USD 1.1077 100.00 42,403 30,698 2022 Centurion Truck & Bus (Pty) Ltd. t/a, Centurion ZAR 20.4442 70.00 24,337 3,945 2022 Chicago International Trucks - Chicago, LLC, Chicago, Illinois USD 1.1077 100.00 –5,793 – 5) 2022 Codema Comercial e Importadora Ltda., Guarulhos BRL 5.3750 99.98 321,985 97,408 2022 Fastighetsaktiebolaget Flygmotorn, Södertälje SEK 11.0874 100.00 18,719 65 2022 Fastighetsaktiebolaget Hjulnavet, Södertälje SEK 11.0874 100.00 55,260 1,396 2022 Fastighetsaktiebolaget Vindbron, Södertälje SEK 11.0874 100.00 44,146 1,106 2022 Fastighetsbolaget Bärgningsbilen 2 Örebro AB, Stockholm SEK 11.0874 100.00 – – 2022 Fastighetsbolaget Fluoret AB, Stockholm SEK 11.0874 100.00 – – 2022 Fastighetsbolaget Gilltuna Västerås AB, Stockholm SEK 11.0874 100.00 – – 2022 Ferruform AB, Luleå SEK 11.0874 100.00 80,269 8,701 2022 Griffin Automotive Ltd., Road Town TWD 33.9211 100.00 2,729,741 614,568 2022 Griffin Lux S.à r.l., Luxembourg EUR – – – 12) 2022 Harbour Assurance Company of Bermuda Ltd., Hamilton USD 1.1077 100.00 8,366 2,487 2022 HTD I Oskarshamn AB, Oskarshamn SEK 11.0874 100.00 571 – 2022 IC Bus LLC, Lisle, Illinois USD 1.1077 100.00 986,193 66,842 2022 IC Bus of Oklahoma, LLC, Tulsa, Oklahoma USD 1.1077 100.00 – – 3) 2022 Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 224 ===== SIDA 225 ===== LIST OF SHAREHOLDINGS AS OF DECEMBER 31, 2023 Name and domicile of the company Currency Exchange rate (1 euro =) 12/31/2023 Equity interest (in %) Equity in thousands Local currency Result in thousands Local currency Footnote Year International DealCor Operations, Ltd., George Town USD 1.1077 100.00 56,788 – 2022 International Engine Intellectual Property Company, LLC, Lisle, Illinois USD 1.1077 100.00 503,030 1,091 2022 International of Mexico Holding Corporation LLC, Lisle, Illinois USD 1.1077 100.00 720,329 –4,746 2022 International Parts Distribution S. de R.L. de C.V., Miguel Hidalgo MXN 18.7689 100.00 398,411 326,287 2022 International Truck and Engine Corporation Cayman Islands Holding Company, Lisle, Illinois USD 1.1077 100.00 –68,006 3,120 2022 International Truck and Engine Corporation U.S. Holding Company, LLC, Lisle, Illinois USD 1.1077 100.00 92 – 2022 International Truck and Engine Overseas Corp., Lisle, Illinois USD 1.1077 100.00 –10,124 – 2022 International Truck Intellectual Property Company, LLC, Lisle, Illinois USD 1.1077 100.00 1,009,222 23,869 2022 International Truck Leasing Corp., Lisle, Illinois USD 1.1077 100.00 5,687 937 2022 Italscania S.p.A., Trento EUR 100.00 65,845 37,589 2022 Kai Tak Holding AB, Södertälje SEK 11.0874 100.00 120 – 5) 2022 Laxå Specialvehicles AB, Laxå SEK 11.0874 100.00 121,949 1,333 2022 LOTS Chile S.p.A., Santiago de Chile CLP 977.9400 100.00 3,082,244 –731,211 2022 LOTS Group AB, Södertälje SEK 11.0874 100.00 447,602 –8,397 2022 LOTS Latin América Logística de Transportes Ltda., São Bernardo do Campo BRL 5.3750 100.00 155,918 –5,578 2022 Lots Logistics (Guangxi) Co. Ltd., Beihai CNY 7.8700 100.00 4,780 – 5) 2022 LOTS Peru S.A., Lima PEN 4.0905 100.00 – – 4) 2022 LOTS SPV USA LLC, Wilmington, Delaware USD 1.1077 70.00 11,548 –534 2022 LOTS Ventures Canada Inc., Vancouver, British Columbia CAD 1.4681 80.00 6,660 –1,656 2022 LOTS Ventures USA Inc., Wilmington, Delaware USD 1.1077 100.00 8,084 – 2022 Mälardalens Tekniska Gymnasium AB, Södertälje SEK 11.0874 80.00 28,622 1,586 2022 MAN Automotive (South Africa) (Pty) Ltd., Johannesburg ZAR 20.4442 100.00 1,072,157 80,329 2022 MAN Bus Sp. z o.o., Starachowice PLN 4.3409 100.00 986,498 97,941 2022 MAN Components s.r.o., Bánovce nad Bebravou EUR 100.00 11,782 1,954 2022 MAN Engines & Components Inc., Pompano Beach, Florida USD 1.1077 100.00 113,906 10,050 2022 MAN Finance and Holding S.A., Strassen EUR 100.00 1,689,321 133,325 2022 MAN Hellas Truck & Bus A.E., Aspropygros EUR 100.00 1,874 2 2022 Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 225 ===== SIDA 226 ===== LIST OF SHAREHOLDINGS AS OF DECEMBER 31, 2023 Name and domicile of the company Currency Exchange rate (1 euro =) 12/31/2023 Equity interest (in %) Equity in thousands Local currency Result in thousands Local currency Footnote Year MAN Kamion és Busz Kereskedelmi Kft., Dunaharaszti HUF 382.3900 100.00 6,919,490 238,677 2022 MAN Kamyon ve Otobüs Ticaret A.S., Ankara TRY 32.7438 100.00 706,553 118,464 2022 MAN Nutzfahrzeuge Immobilien GmbH, Vienna EUR 100.00 32,828 3,181 2022 MAN Shared Services Center Sp. z o.o., Poznan PLN 4.3409 100.00 15,589 1,759 2022 MAN Truck & Bus (Korea) Ltd., Yongin KRW 1,440.7150 100.00 17,275,566 5,193,413 2022 MAN Truck & Bus (M) Sdn. Bhd., Rawang MYR 5.0899 100.00 54,244 –1,930 2022 MAN Truck & Bus Czech Republic s.r.o., Cestlice CZK 24.7180 100.00 1,428,630 191,024 2022 MAN Truck & Bus Danmark A/S, Greve DKK 7.4530 100.00 155,666 14,268 2022 MAN Truck & Bus France S.A.S., Evry EUR 100.00 89,528 3,767 2022 MAN Truck & Bus Iberia S.A., Coslada EUR 100.00 130,659 12,620 2022 MAN Truck & Bus Italia S.p.A., Dossobuono di Villafranca EUR 100.00 36,091 4,177 2022 MAN Truck & Bus Middle East FZE, Dubai AED 4.0683 100.00 52,859 1,298 2022 MAN Truck & Bus N.V., Kobbegem EUR 100.00 31,449 3,163 2022 MAN Truck & Bus Norge A/S, Lorenskog NOK 11.2408 100.00 160,183 27,631 2022 MAN Truck & Bus Polska Sp. z o.o., Nadarzyn PLN 4.3409 100.00 113,444 54,412 2022 MAN Truck & Bus Portugal S.U. Lda., Lisbon EUR 100.00 9,265 4,150 2022 MAN Truck & Bus Schweiz AG, Otelfingen CHF 0.9264 100.00 31,761 2,377 2022 MAN Truck & Bus Slovakia s.r.o., Bratislava EUR 100.00 13,993 3,155 2022 MAN Truck & Bus Slovenija d.o.o., Ljubljana EUR 100.00 14,565 851 2022 MAN Truck & Bus Trading (China) Co., Ltd., Beijing CNY 7.8700 100.00 67,330 –4,595 2022 MAN Truck & Bus UK Ltd., Swindon GBP 0.8691 100.00 121,972 11,100 2022 MAN Truck & Bus Vertrieb Österreich GmbH, Vienna EUR 100.00 264,985 12,630 2022 MAN Trucks Sp. z o.o., Niepolomice PLN 4.3409 100.00 1,468,188 158,856 2022 MAN Türkiye A.S., Ankara TRY 32.7438 99.99 2,256,419 650,349 2022 Metrobus AB, Gävle SEK 11.0874 100.00 1,089 661 2022 MW-Hallen Restaurang AB, Södertälje SEK 11.0874 100.00 1,987 –6 2022 N.W.S. S.r.l., in liquidation, Trento EUR 52.50 21 –3 2) 2022 Navistar (Shanghai) Trading Co., Ltd., Shanghai CNY 7.8700 100.00 25,613 976 2022 Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 226 ===== SIDA 227 ===== LIST OF SHAREHOLDINGS AS OF DECEMBER 31, 2023 Name and domicile of the company Currency Exchange rate (1 euro =) 12/31/2023 Equity interest (in %) Equity in thousands Local currency Result in thousands Local currency Footnote Year Navistar Aftermarket Products, Inc., Lisle, Illinois USD 1.1077 100.00 38,776 7,591 2022 Navistar Auspac Pty. Ltd., Tullamarine AUD 1.6292 100.00 1,759 26 2022 Navistar Big Bore Diesels, LLC, Huntsville, Alabama USD 1.1077 100.00 –59,016 –15,162 2022 Navistar Canada, ULC, Hannon, Ontario CAD 1.4681 100.00 137,736 325,549 2022 Navistar Comercial S.A. de C.V., Miguel Hidalgo MXN 18.7689 100.00 307,728 33,541 2022 Navistar Diesel of Alabama, LLC, Lisle, Illinois USD 1.1077 100.00 90,056 –84 2022 Navistar Financial Corporation, Lisle, Illinois USD 1.1077 100.00 191,436 20,505 2022 Navistar Financial Dealer Note Master Owner Trust II, Wilmington, Delaware USD 1.1077 – – – 12) 2022 Navistar Financial Securities Corp., Lisle, Illinois USD 1.1077 100.00 67,596 8,182 2022 Navistar Financial Services North America Holding LLC, Herndon, Virginia USD 1.1077 100.00 1,420 147 2022 Navistar Financial, S.A. de C.V. SOFOM E.R., Miguel Hidalgo MXN 18.7689 100.00 5,838,094 889,110 2022 Navistar Global Operations Corp., Lisle, Illinois USD 1.1077 100.00 – – 2022 Navistar Hong Kong Holding Company Ltd., Hong Kong HKD 8.6529 100.00 4,110 –123 2022 Navistar International B.V., Amsterdam USD 1.1077 100.00 605,428 –3,985 2022 Navistar International Corporation, Lisle, Illinois USD 1.1077 100.00 3,310,843 –23,053 2022 Navistar International Employee Leasing Company, Lisle, Illinois USD 1.1077 100.00 10,443 3,945 2022 Navistar International Mexico, S. de R.L. de C.V., Escobedo MXN 18.7689 100.00 5,284,371 1,855,895 2022 Navistar International Pvt. Ltd., Pune INR 92.1170 100.00 146,323 3,272 3) 2022 Navistar International Southern Africa (Pty) Ltd., Johannesburg ZAR 20.4442 100.00 –59,385 –13,299 2022 Navistar International Truck Mexico, S. de R.L. de C.V., Miguel Hidalgo MXN 18.7689 100.00 5,064,500 1,851,502 2022 Navistar Leasing Company, Lisle, Illinois USD 1.1077 – – – 12) 2022 Navistar Leasing Services Corp., Lisle, Illinois USD 1.1077 100.00 39,971 3,811 2022 Navistar Mexico, S. de R.L. de C.V., Mexico City MXN 18.7689 100.00 4,666,244 1,518,562 2022 Navistar San Antonio Manufacturing LLC, Lisle, Illinois USD 1.1077 100.00 –89,813 –63,611 2022 Navistar, Inc., Lisle, Illinois USD 1.1077 100.00 –7,006,733 284,018 2022 NC2 Global LLC, Lisle, Illinois USD 1.1077 100.00 140,081 2,323 2022 NC2 Luxembourg S.a.r.l., Luxembourg USD 1.1077 100.00 –122,364 –5,140 3) 2022 Norsk Scania AS, Oslo NOK 11.2408 100.00 305,051 555,614 2022 Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 227 ===== SIDA 228 ===== LIST OF SHAREHOLDINGS AS OF DECEMBER 31, 2023 Name and domicile of the company Currency Exchange rate (1 euro =) 12/31/2023 Equity interest (in %) Equity in thousands Local currency Result in thousands Local currency Footnote Year Norsk Scania Eiendom AS, Oslo NOK 11.2408 100.00 130,664 9,223 2022 OCC Technologies, LLC, Lisle, Illinois USD 1.1077 100.00 15,174 –6,916 2022 OOO Scania Peter, St. Petersburg RUB 99.9661 100.00 311,827 44,918 2022 Parts and Service Ventures, Inc., Lisle, Illinois USD 1.1077 100.00 1,720 –4 2022 Power Vehicle Co. Ltd., Bangkok THB 37.9886 49.00 26,964 25,321 2022 PT Scania Parts Indonesia, Balikpapan IDR 17,055.2550 100.00 1,319 –5,995 2022 Reliable Vehicles Ltd., Milton Keynes GBP 0.8691 100.00 2,500 – 5) 2022 Revra AB, Örebro SEK 11.0874 100.00 – – 2022 Sågverket 6 AB, Södertälje SEK 11.0874 100.00 122 –244 2022 Scan Siam Service Co. Ltd., Bangkok THB 37.9886 49.00 89,368 39,953 2022 Scanexpo International S.A., Montevideo USD 1.1077 100.00 3,072 75 2022 Scania (Hong Kong) Ltd., Hong Kong HKD 8.6529 100.00 45,709 4,630 2022 Scania (Malaysia) Sdn. Bhd., Shah Alam MYR 5.0899 100.00 57,628 7,947 2022 Scania AB, Södertälje SEK 11.0874 100.00 25,070,257 9,500,161 2022 Scania Administradora de Consórcios Ltda., Cotia BRL 5.3750 99.99 157,650 72,859 2022 Scania Argentina S.A., Buenos Aires USD 1.1077 100.00 51,300,070 5,893,215 2022 Scania Australia Pty. Ltd., Melbourne AUD 1.6292 100.00 80,790 22,030 9) 2022 Scania Banco S.A., São Bernardo do Campo BRL 5.3750 100.00 768,112 89,799 9) 2022 Scania Belgium N.V., Neder-Over-Heembeek EUR 100.00 3,884 11,882 2022 Scania BH d.o.o., Sarajevo BAM 1.9558 100.00 3,709 700 2022 Scania Botswana (Pty) Ltd., Gaborone BWP 14.8486 100.00 16,312 7,204 2022 Scania Bulgaria EOOD, Sofia BGN 1.9559 100.00 14,673 11,659 2022 Scania Bus & Coach UK Ltd., Milton Keynes GBP 0.8691 100.00 – – 5) 2022 Scania Bus Financing AB, Södertälje SEK 11.0874 100.00 100 – 2022 Scania Central Asia LLP, Almaty KZT 506.0100 100.00 890,212 –5,886 2022 Scania Chile S.A., Santiago de Chile CLP 977.9400 100.00 34,618,661 10,475,113 2022 Scania Colombia S.A.S., Bogotá COP 4,291.2300 100.00 180,346,329 45,777,621 2022 Scania Comercial, S.A. de C.V., Querétaro MXN 18.7689 100.00 435,745 20,271 2022 Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 228 ===== SIDA 229 ===== LIST OF SHAREHOLDINGS AS OF DECEMBER 31, 2023 Name and domicile of the company Currency Exchange rate (1 euro =) 12/31/2023 Equity interest (in %) Equity in thousands Local currency Result in thousands Local currency Footnote Year Scania Commercial Vehicles India Pvt. Ltd., Bangalore INR 92.1170 100.00 –2,249,245 –202,456 2022 Scania Commercial Vehicles Renting S.A., San Fernando de Henares EUR 100.00 42,267 2,881 2022 Scania Commerciale S.p.A., Trento EUR 100.00 12,517 2,203 2022 Scania Corretora de Seguros Ltda., São Bernardo do Campo BRL 5.3750 100.00 – – 2022 Scania Credit (Malaysia) Sdn. Bhd., Shah Alam MYR 5.0899 100.00 4,995 –6,162 2022 Scania Credit AB, Södertälje EUR 100.00 1,714 304 2022 Scania Credit Argentina S.A.U., Buenos Aires ARS 894.9939 100.00 202,182 72,838 2022 Scania Credit Hrvatska d.o.o., Lucko (Zagreb) EUR 100.00 4,077 205 2022 Scania Credit Romania IFN S.A., Ciorogârla RON 4.9759 100.00 57,787 6,472 2022 Scania Credit Singapore Pte. Ltd., Singapore SGD 1.4612 100.00 255 83 2022 Scania Credit Solutions (T) Ltd., Dar es Salaam TZS 2,788.0800 100.00 4,260,912 –394,098 2022 Scania Credit Solutions Pty Ltd., Aeroton ZAR 20.4442 100.00 21,825 4,107 2022 Scania Credit Taiwan Ltd., New Taipei City TWD 33.9211 100.00 12,726 5,089 2022 Scania Crna Gora d.o.o., Danilovgrad EUR 100.00 37 –99 2022 Scania CV AB, Södertälje SEK 11.0874 100.00 42,545,102 3,239,074 2022 Scania Czech Republic s.r.o., Prague CZK 24.7180 100.00 942,953 649,602 2022 Scania Danmark A/S, Ishöj DKK 7.4530 100.00 396,778 180,080 2022 Scania Danmark Ejendom ApS, Ishöj DKK 7.4530 100.00 110,473 3,467 2022 Scania del Perú S.A., Lima PEN 4.0905 100.00 71,333 30,267 2022 Scania Delivery Center AB, Södertälje SEK 11.0874 100.00 191,685 39,127 2022 Scania East Africa Ltd., Nairobi KES 173.9050 100.00 –825,094 –415,558 2021 Scania Eesti AS, Tallinn EUR 100.00 12,370 4,108 2022 Scania Finance Australia Pty. Ltd., Melbourne AUD 1.6292 100.00 28,067 3,175 2022 Scania Finance Belgium N.V., Neder-Over-Heembeek EUR 100.00 20,187 1,747 2022 Scania Finance Bulgaria EOOD, Sofia BGN 1.9559 100.00 22,650 4,154 8) 2022 Scania Finance Chile S.A., Santiago de Chile CLP 977.9400 100.00 23,157,768 12,787,946 8) 2022 Scania Finance Colombia S.A.S., Bogotá COP 4,291.2300 100.00 4,111,090 –1,455,765 2022 Scania Finance Czech Republic spol. s r.o., Prague CZK 24.7180 100.00 894,790 21,068 2022 Further InformationConsolidated Financial StatementsCombined Management ReportTo Our Shareholders 229 ===== SIDA 230 =====