Prospectus dated June 14, 2019

Prospectus

for the public offering

of

50,000,000 existing ordinary bearer shares (auf den Inhaber lautende Stammaktien ohne Nennbetrag) withno par value (Stückaktien) from the holdings of the Existing Shareholder, and of

7,500,000 existing ordinary bearer shares (auf den Inhaber lautende Stammaktien ohne Nennbetrag) withno par value (Stückaktien) from the holdings of the Existing Shareholder in connection with a possible over-

allotment

and at the same time for the

admission to trading on the regulated markets (regulierter Markt)of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) and the regulated market (reglerad marknad)of Nasdaq Stockholm (börsen), with simultaneous admission to the sub-segment of the regulated marketwith additional post-admission obligations (Prime Standard) of the Frankfurt Stock Exchange (Frankfurter

Wertpapierbörse) and the Large Cap segment of Nasdaq Stockholm (börsen)

of

500,000,000 existing ordinary bearer shares (auf den Inhaber lautende Stammaktien ohne Nennbetrag) withno par value (Stückaktien) (existing share capital), each such share with a notional value of EUR 1.00 and full

dividend rights as

of

January 1, 2019

of

TRATON SEMunich, Germany

Price Range: EUR 27.00 – EUR 33.00

International Securities Identification Number (ISIN): DE000TRAT0N7German Securities Code (Wertpapierkennnummer, WKN): TRAT0N

Common Code: 196390065Ticker Symbol: 8TRA

Joint Global Coordinators

Citigroup Deutsche Bank Goldman Sachs International J.P. Morgan

Joint Bookrunners

BofA Merrill Lynch Barclays BNP PARIBAS SEB UniCredit Bank AG

Co-Lead Managers

COMMERZBANK HSBC Société Générale Landesbank Baden-Württemberg

TABLE OF CONTENTS

PageSUMMARY OF THE PROSPECTUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

A – Introduction and Warnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1B – The Issuer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2C – Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13D – Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14E – Offer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

GERMAN TRANSLATION OF THE SUMMARY OF THE PROSPECTUS –ZUSAMMENFASSUNG DES PROSPEKTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

A – Einleitung und Warnhinweise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25B – Emittent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26C – Wertpapiere . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40D – Risiken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42E – Angebot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

1 RISK FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 541.1 Risks Relating to the Group’s Business and Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 541.2 Risks Related to the Group’s General Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 681.3 Legal, Regulatory and Tax Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731.4 Risks Related to the Group’s separation from the Volkswagen Group . . . . . . . . . . . . . . . . . . 811.5 Risks Related to the Group’s Shareholder Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 821.6 Risks Related to the Shares and the Listing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

2 GENERAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 882.1 Responsibility for the Contents of this Prospectus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 882.2 Purpose of this Prospectus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 882.3 Forward-Looking Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 892.4 Presentation of Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 902.5 Sources of Market Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 902.6 Documents Available for Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 912.7 Note on Currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 922.8 Measures not defined by IFRS (Non-GAAP Measures and Alternative Performance

Measures) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 922.9 Negative Numbers and Rounding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 932.10 Time Specifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 932.11 Enforcement of Civil Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

3 PRE-IPO REORGANIZATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 943.1 Sale of Power Engineering Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 943.2 Power Engineering Sale Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 953.3 Share Purchase Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 953.4 Key Elements of the Share Purchase Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 953.5 Transitional Services Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 973.6 Trademarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 973.7 Other IP rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 973.8 IT Separation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 983.9 Pensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

4 THE OFFERING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 994.1 Subject Matter of the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 994.2 Price Range, Offer Period, Offer Price and Allotment and Payment . . . . . . . . . . . . . . . . . . . . 994.3 Expected Timetable for the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1014.4 Information on the Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1014.5 Identification of Target Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1034.6 Transferability of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1034.7 Existing Shareholder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1034.8 Allotment Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1034.9 Cornerstone Investor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1044.10 Stabilization Measures, Over-Allotments and Greenshoe Option . . . . . . . . . . . . . . . . . . . . . . 1044.11 Lock-Up and Limitations on Disposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1054.12 Admission to the Frankfurt Stock Exchange, Nasdaq Stockholm and Commencement of

Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1054.13 Designated Sponsor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1064.14 Interests of Parties Participating in the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

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4.15 Additional Information for Retail Investor Participation in the Public Offering in Sweden . . . 1075 PROCEEDS OF THE OFFERING AND COSTS OF THE OFFERING AND LISTING . . . . . . . . . . . . 1096 REASONS FOR THE OFFERING AND LISTING AND USE OF PROCEEDS . . . . . . . . . . . . . . . . . 1107 DILUTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1118 DIVIDEND POLICY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

8.1 General Provisions Relating to Profit Allocation and Dividend Payments . . . . . . . . . . . . . . . . 1128.2 Dividend Policy and Earnings per Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1138.3 2019 Dividend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

9 CAPITALIZATION, INDEBTEDNESS AND STATEMENT ON WORKING CAPITAL . . . . . . . . . . . 1159.1 Capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1159.2 Indebtedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1159.3 Indirect and Contingent Indebtedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1169.4 Statement on Working Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1169.5 Termination of Domination and Profit and Loss Transfer Agreement with Volkswagen

AG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1169.6 No Significant Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116

10 SELECTED CONSOLIDATED FINANCIAL AND OTHER INFORMATION . . . . . . . . . . . . . . . . . . . 11710.1 Consolidated Income Statement Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11810.2 Consolidated Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11910.3 Selected Consolidated Cash Flow Statement Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12110.4 Other Selected Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12110.5 Key Performance Indicators and Alternative Performance Measures . . . . . . . . . . . . . . . . . . . 124

11 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12611.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12611.2 Basis of Presentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12711.3 Key Factors Affecting the Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12911.4 Explanation of Income Statement Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13611.5 Results of Operations – Income Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13811.6 Discussion of Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14911.7 Liquidity and Capital resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15211.8 Quantitative and Qualitative Disclosures about Financial Risk Management . . . . . . . . . . . . . 15711.9 Critical Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15911.10 Information from the Company’s Audited Unconsolidated Financial Statements . . . . . . . . . 161

12 PROFIT FORECAST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16212.1 Operating Return on Sales Forecast for the period from January 1, 2019 to December 31,

2019 Prepared by TRATON SE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16212.2 Operating RoS Forecast 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16312.3 Independent Auditor’s Report on the Operating RoS Forecast 2019 Prepared by TRATON

SE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17113 INDUSTRY OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172

13.1 Overview of the Truck Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17213.2 Megatrends Influencing the Transportation Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17213.3 Key Commercial Vehicles Industry Innovation Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17413.4 Development of Global Truck Sales Volumes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17513.5 Competitive Environment of the Truck Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17713.6 Bus Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178

14 BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17914.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17914.2 Investment Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18014.3 History and Key Milestones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18414.4 Product Offering and Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18514.5 Alliance Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19614.6 Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19714.7 Synergies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19914.8 Technology and Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20114.9 Procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20414.10 Real Property and Manufacturing Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20514.11 Intellectual Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20814.12 Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21014.13 Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21114.14 Corporate Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217

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14.15 Risk Management and Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21814.16 Legal and Administrative Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21914.17 Material Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22414.18 Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235

15 CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS . . . . . . . . . . . . . . . . . . . . . 23715.1 Overview of Relationship between the TRATON GROUP and the Volkswagen Group

(excluding the TRATON GROUP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23715.2 Ongoing Relationship and Services between the TRATON GROUP and the Volkswagen

Group (excluding the TRATON GROUP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23815.3 Relationships with Related Parties in the Past . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243

16 REGULATORY ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24716.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24716.2 Industrial Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24716.3 Non-Financial Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25716.4 Class Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25716.5 Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257

17 INFORMATION ON THE COMPANY’S EXISTING SHAREHOLDER . . . . . . . . . . . . . . . . . . . . . . . 25917.1 Current Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25917.2 Controlling Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259

18 GENERAL INFORMATION ON THE GROUP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26018.1 Formation, Incorporation, History and Share Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26018.2 Commercial Name and Registered Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26118.3 Fiscal Year and Duration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26118.4 Corporate Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26118.5 Group Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26118.6 Significant Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26218.7 Potential Squeeze-Out of MAN SE Minorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26318.8 Auditor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26418.9 Announcements and Paying Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264

19 DESCRIPTION OF SHARE CAPITAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26519.1 Current Share Capital and Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26519.2 Development of the Share Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26519.3 Authorized Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26619.4 Conditional Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26619.5 Authorization to Issue Convertible Bonds and/or Warrant Bonds . . . . . . . . . . . . . . . . . . . . . . 26719.6 Authorization to Purchase and Use Treasury Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26919.7 General Provisions Governing a Liquidation of the Company . . . . . . . . . . . . . . . . . . . . . . . . . 27019.8 General Provisions Governing a Change in the Share Capital . . . . . . . . . . . . . . . . . . . . . . . . . 27019.9 General Provisions Governing Subscription Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27119.10 Exclusion of Minority Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27119.11 Shareholder Notification Requirements, Mandatory Takeover Bids and Managers’

Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27219.12 Mandatory Offers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27419.13 Transactions Undertaken for the Account of a Person with Management Duties . . . . . . . . 27419.14 EU Short Selling Regulation (Ban on Naked Short-Selling) . . . . . . . . . . . . . . . . . . . . . . . . . . . 274

20 COMPARATIVE OVERVIEW OF SHAREHOLDER RIGHTS UNDER SWEDISH LAW ANDEUROPEAN AS WELL AS GERMAN LAW APPLICABLE TO THE COMPANY . . . . . . . . . . . . . . . 27620.1 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27620.2 Minority Shareholders’ Rights Under Swedish and German Law . . . . . . . . . . . . . . . . . . . . . . 27620.3 Shareholders’ Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27720.4 Board Structure and Appointment and Removal of its Members . . . . . . . . . . . . . . . . . . . . . . 27920.5 Dividends and Unlawful Value Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28020.6 Preferential Rights in Relation to Share Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28020.7 Distribution of Assets on Liquidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28120.8 Assertion of Claims and Request for a Special Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28120.9 Mandatory Redemption of Shares (Squeeze-Out Procedures) . . . . . . . . . . . . . . . . . . . . . . . . 28220.10 Public Takeovers and Other Similar Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28320.11 Statutory Mergers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284

21 MANAGEMENT, COMPENSATION AND CORPORATE BODIES . . . . . . . . . . . . . . . . . . . . . . . . . 28521.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28521.2 Management Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28721.3 Supervisory Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298

iii

21.4 Certain Information Regarding the Members of the Management Board and SupervisoryBoard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312

21.5 Retention Bonus Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31321.6 General Shareholders’ Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31321.7 Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315

22 UNDERWRITING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31622.1 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31622.2 Underwriting Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31722.3 Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31722.4 Securities Loan and Greenshoe Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31722.5 Termination and Indemnification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31822.6 Selling Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31822.7 Other Interests of the Underwriters in the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319

23 THE SWEDISH SECURITIES MARKET AND NASDAQ STOCKHOLM . . . . . . . . . . . . . . . . . . . . . 32023.1 Nasdaq Stockholm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32023.2 Trading Securities on Nasdaq Stockholm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32023.3 Securities Market Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32123.4 Securities Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32123.5 Compensation Scheme for Investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32223.6 Transaction and Ownership Disclosure Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32223.7 Mandatory Offers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322

24 TAXATION IN THE FEDERAL REPUBLIC OF GERMANY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32324.1 Taxation of the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32324.2 Taxation of Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324

25 TAXATION IN SWEDEN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33425.1 Foreign Tax and Double Taxation Treaty Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33425.2 Swedish Tax Resident Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33425.3 Non-Resident Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33525.4 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335

26 FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-127 GLOSSARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G-128 RECENT DEVELOPMENTS AND OUTLOOK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . R-1

28.1 Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . R-128.2 Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . R-1

iv

SUMMARY OF THE PROSPECTUSSummaries are made up of disclosure requirements known as “Elements.” These Elements are numberedin Sections A–E (A.1–E.7). This summary contains all the Elements required to be included in a summary forthis type of securities and issuer. Because some Elements are not required to be addressed, there may begaps in the numbering sequence of the Elements. Even though an Element may be required to be insertedin the summary because of the type of securities and issuer, it is possible that no relevant information canbe given regarding the Element. In this case, a short description of the Element is included in the summarywith the mention of “not applicable.”

A – Introduction and Warnings

A.1 Warnings. This summary should be read as an introduction to theprospectus (the “Prospectus”). Any decision to invest in thesecurities should be based on consideration of theProspectus as a whole.

Where a claim relating to the information contained in theProspectus is brought before a court, the plaintiff investormight, under the national legislation of the member states ofthe European Economic Area, have to bear the costs oftranslating the Prospectus before the legal proceedings areinitiated.

TRATON SE, a European company (Societas Europaea (SE)),Munich, Federal Republic of Germany (“Germany”) (the“Company” or “TRATON SE” and together with itssubsidiaries, the “Group” or the “TRATON GROUP”),Citigroup Global Markets Limited, London, United Kingdom(“Citigroup”), Deutsche Bank Aktiengesellschaft, Frankfurtam Main, Germany (“Deutsche Bank”), Goldman SachsInternational, London, United Kingdom (“Goldman SachsInternational”) and J.P. Morgan Securities plc, London,United Kingdom (“J.P. Morgan”, together with Citigroup,Deutsche Bank and Goldman Sachs International, the “JointGlobal Coordinators”, and each, a “Joint GlobalCoordinator”), Merrill Lynch International, London, UnitedKingdom (“BofA Merrill Lynch”), Barclays Bank PLC,London, United Kingdom (“Barclays”), BNP Paribas, Paris,France (“BNP Paribas”), Skandinaviska Enskilda Banken AB,Stockholm, Sweden (“SEB”) and UniCredit Bank AG,Munich, Germany (“UniCredit” and together with BofAMerrill Lynch, Barclays, BNP Paribas and SEB, the “JointBookrunners” and each, a “Joint Bookrunner”),COMMERZBANK Aktiengesellschaft, Frankfurt am Main,Germany (“COMMERZBANK”), HSBC Trinkaus & BurkhardtAG, Düsseldorf, Germany (“HSBC”), Société Générale, Paris,France (“Société Générale”) and LandesbankBaden-Württemberg, Stuttgart, Germany (“LandesbankBaden-Württemberg” and together with COMMERZBANK,HSBC and Société Générale, the “Co-Lead Managers,” andeach, a “Co-Lead Manager” and together with the JointGlobal Coordinators and the Joint Bookrunners, the“Underwriters”), assume responsibility for the content ofthis summary, including its German translation, in accordancewith Section 5(2b) No. 4 of the German Securities ProspectusAct (Wertpapierprospektgesetz, “WpPG”). Those personswho are responsible for the summary, including possibletranslations thereof, or for its issue, can be held liable butonly if the summary is misleading, inaccurate or inconsistentwhen read together with the other parts of the Prospectus,or if it does not provide, when read together with the otherparts of the Prospectus, all necessary key information.

1

A – Introduction and Warnings

A.2 Information regarding thesubsequent use of theProspectus.

Not applicable. Consent of the Company regarding the use ofthe Prospectus for a subsequent resale or final placement ofthe Company’s shares by financial intermediaries has notbeen granted.

B – The Issuer

B.1 Legal and commercial name. The Company’s legal name is TRATON SE and the Companyoperates under the commercial name TRATON.

B.2 Domicile, legal form, legislationunder which the issueroperates, country ofincorporation.

The Company has its registered office at Dachauer Straße641, 80995 Munich, Germany, and is registered with thecommercial register of the local court (Amtsgericht) ofMunich, Germany under docket number HRB 246068. TheCompany is organized as a European company (SocietasEuropaea (SE)) incorporated in the Federal Republic ofGermany and governed by European law, in particularRegulation (EC) No. 2157/2001 of the Council datedOctober 8, 2001, as amended, and German law.

B.3 Current operations andprincipal business activities andprincipal markets in which theissuer competes.

The TRATON GROUP was founded in 2015 (thenVolkswagen Truck & Bus) to bring together the strongcommercial vehicle brands Scania, MAN and VWCO (all asdefined below) and to create a global leader in profitability,global presence and customer-focused innovation. TheTRATON GROUP’s “Global Champion” strategy to achievethis goal seeks to drive growth, improve profitability andleverage synergies.

In the fiscal year ended December 31, 2018, the TRATONGROUP’s sales revenue amounted to EUR 25.9 billion and itsoperating profit amounted to EUR 1.5 billion.

With a total of 80,940 employees, 29 production andassembly sites and approximately 3,900 captive andnon-captive service centers (centers used by more than onebrand counted only once; each as of December 31, 2018),the TRATON GROUP has a global footprint with significantpresence in its key markets, Europe and South America/Mexico. The TRATON GROUP has its headquarters inMunich, Germany, where TRATON SE, the parent companyof the Group, has its registered office.

The TRATON GROUP sold 232,992 units in the fiscal yearended December 31, 2018 and when taken together with itsalliance partners Navistar International Corporation(“Navistar”), Sinotruk (Hong Kong) Ltd. (“Sinotruk”)(including the units sold by China National Heavy Duty TruckGroup Co., Ltd) and Hino Motors, Ltd. (“Hino Motors”) wasNo. 1 worldwide in terms of heavy-duty trucks sold in 2018(based on data from IHS Markit Global Sàrl (“IHS Markit”)).Of those 232,992 units, the TRATON GROUP sold 76.8% inits current core markets EU28+2 (56.3%) and South America(20.5%), where it held No. 1 market positions in 2018. Theremaining units were sold in Asia-Pacific (6.8%), the MiddleEast (3.7%), Africa (4.1%), North America (1.5%) and Russia/Rest of Europe (7.1%).

The TRATON GROUP’s operations are divided into tworeportable segments, the industrial business segment, whichconstitutes the core of the Group’s business and accountedfor 95% of the Group’s sales revenue in the fiscal year ended

2

B – The Issuer

December 31, 2018, and the financial services businesssegment. The industrial business segment combines thethree operating units Scania Vehicles & Services (“ScaniaV&S”) (comprising the vehicles and services relatedbusiness of Scania AB (publ) (“Scania AB”) and itsconsolidated subsidiaries), MAN Truck & Bus SE and itsconsolidated subsidiaries (“MAN T&B”), and MAN LatinAmerica Indústria e Comércio de Veiculos Ltda. (“MAN LatinAmerica”) and its consolidated subsidiaries (“VWCO”).TRATON GROUP’s brand Scania is the brand name of ScaniaAB and its consolidated subsidiaries (“Scania”), a globalprovider of transport solutions and manufacturer of heavytrucks, buses and engines. TRATON GROUP’s brand MAN isthe brand name of MAN SE and its consolidated subsidiaries(excluding VWCO.) (“MAN”), a global manufacturer of trucks,buses and engines and a supplier of vans. TRATON GROUP’sbrand VWCO is the brand name of MAN Latin America andits consolidated subsidiaries, a provider of light- to heavy-dutytrucks and bus chassis customized for markets such as SouthAmerica, Mexico and Africa. TRATON GROUP’s brand RIO isthe brand name of TB Digital Services GmbH (“RIO”).The TRATON GROUP’s most important products are heavy-duty trucks (>16 tons), medium- and light-duty trucks(

B – The Issuer

sales revenue before intersegment reconciliation (comprisinglease income and interest and similar income) ofEUR 760 million and an operating profit of EUR 138 million.

B.4a Most significant recent trendsaffecting the issuer and theindustries in which it operates.

The global truck industry has seen broad-based growth inrecent years. In the Group’s primary markets, Europe (EU28+2)and South America, truck sales volume (including heavy-dutytrucks (>15t) and medium-duty trucks (>6t)) grew at acompound annual growth rate (“CAGR”) of 5.8% and 0.4%,respectively, between 2015 and 2018 (IHS Markit). In Russia,China and Southeast Asia, where the Group also has materialsales, sales volume grew at a CAGR of 17.5%, 20.7% and7.9%, respectively, in the same period (IHS Markit). Marketgrowth was primarily driven by general economic conditions inthe relevant markets. While the truck market is characterized bylong-term growth, it is also subject to significant cyclicality inthe short- and medium term. According to IHS Markit, salesvolume in the European market is expected to grow modestlyat a CAGR of 0.6% between 2018 and 2025, while the SouthAmerican and Russian markets are expected to grow at aCAGR of 3.2%, and 5.0%, respectively. The Chinese andSoutheast Asian markets on the other hand are expected todecline with a negative CAGR of (4.8)% and (0.3)%,respectively, in the same period, with a strong decline in Chinaforecast for 2019.

The Group believes that the commercial vehicle industry ischaracterized by the following trends:

• Population growth, urbanization, industrialization,disposable income and ultimately gross domestic product(“GDP”) growth impact the transportation industry andhence drive the demand for trucks and buses.

• New technologies and customer focus on total cost ofownership are catalyzing demand for interconnectedproducts, services and solutions, such as predictivemaintenance and fleet management services, and thedevelopment of autonomous driving technology.

• Increasingly stringent energy efficiency and exhaustregulations, growing environmental awareness and totalcost of ownership favor sustainable transport solutions,including commercial vehicles with alternative drivesystems and vehicles powered by alternative fuels orelectricity.

B.5 Description of the group andthe issuer’s position within thegroup.

The Company is the parent company of the Group. Thefollowing chart sets forth a summary (in simplified form) ofthe Company’s group structure, including its significantsubsidiaries as of the date of this Prospectus.

The Company is the (direct or indirect) parent company ofScania AB, Scania CV AB (publ) (“Scania CV AB”), MAN SE,MAN Truck & Bus SE, MAN Latin America and TB DigitalServices GmbH, and its business is primarily conducted by itssubsidiaries which are operating under their commercialnames Scania, MAN, VWCO and RIO.

4

B – The Issuer

Volkswagen AG(GER)

Scania AB*(SWE)

Scania CV AB*(SWE)

TRATON AB(SWE)

MAN Truck &Bus

DeutschlandGmbH* (GER)

Varioussubsidiaries

MAN LatinAmerica* (BRA)

Sinotruk(Hong Kong)Ltd. (HKG)

Various foreignsubsidiaries ofthe MAN Truck& Bus division

* Significant SubsidiariesC Interest in CapitalVR Voting Rights

MAN Truck &Bus SE* (GER)

MAN HRServices GmbH

(GER)

MAN Financeand HoldingS.A. (LUX)

Varioussubsidiaries

INTERNATIONALTRUCK AND

ENGINEINVESTMENTS

CORP. (US)

Global Truck &Bus

ProcurementLLC (US)

TRATON SE(GER)

MAN SE*(GER)

MAN CapitalCorp. (US)

TB DigitalServices

GmbH* (GER)

NavistarInternationalCorp. (US)

TRATON, LLC(US)

100%

94.36% C

86.65% C82.63% VR

17.37% VR13.35% C

100%

100% 100%

100%

49%

100% 100%

51%

16.77%

100%

100%

99.99%25% +1 Share

100%

94.68% VR

100%

Potential Squeeze-Out of MANSE’s Minority Shareholders.

There are two options available to the Company to squeezeout the remaining minority shareholders of MAN SE and fullyintegrate MAN SE and its subsidiaries into the Group. Nodecision has been made on whether and when to implementany of these options, but the Company could decide toreorganize the Group and pursue one of these options at anylater point in time.

• The first option is to acquire all outstanding shares inMAN SE by way of squeezing out MAN SE’s minorityshareholders against payment of adequate cashcompensation and simultaneously implementing a mergerof MAN SE into the Company (both measures together,the “Merger Squeeze-out”). Upon consummation of theMerger Squeeze-out, MAN SE would cease to exist.Minority shareholders of MAN SE would receive a cashcompensation.

• The second option, requires the Company to first acquireadditional shares in MAN SE to reach or cross the relevantthreshold of 95% of the share capital in MAN SE, which itcould do anytime through purchases on the stockexchange or otherwise. It could then squeeze outMAN SE’s minority shareholders against payment ofadequate cash compensation, without a simultaneousmerger of MAN SE into the Company (the “RegularSqueeze-out”). As a result of the Regular Squeeze-out,MAN SE would be a wholly-owned subsidiary of theCompany. Subsequently, the Company could then e.g.implement a separate merger of MAN SE into theCompany with MAN SE ceasing to exist or enter into adomination and profit and loss transfer agreement withMAN SE.

5

B – The Issuer

In either case, MAN SE’s minority shareholders would beentitled to cash compensation corresponding to the marketvalue (Verkehrswert) of their MAN shares transferred to theCompany as a result of the squeeze-out. The cashcompensation would be determined by the Company andreviewed by a court-appointed auditor. It would have to bepaid by the Company and could therefore dilute theCompany’s equity value (Unternehmenswert) if theaggregate cash compensation to be paid to the minorityshareholders of MAN SE exceeded the aggregate equityvalue of the acquired MAN shares.

The cash compensation would be subject to judicial review.However, such court proceedings, if decided against theCompany, could only result in an additional paymentobligation of the Company. They would not prevent thereorganization from becoming effective.

In addition, under current German tax law, any increase ofthe Company’s shareholding in MAN SE to 95% or more ofMAN SE’s share capital would result in German real estatetransfer tax falling due with regard MAN SE’s directly andindirectly owned German real estate. The Company expectsthe relevant amount of German real estate transfer tax toamount to a mid double-digit million Euro amount.

B.6 Persons who, directly orindirectly, have a (notifiable)interest in the issuer’s capitalor voting rights.

The following table sets forth the Company’s ownershipstructure as of the date of this Prospectus as well as theexpected ownership structure upon completion of theOffering (as defined below in E.3) showing persons, directlyor indirectly, having a notifiable interest in the Company’scapital and voting rights within the meaning of Section 33 etseqq. of the German Securities Trading Act(Wertpapierhandelsgesetz) together with the expected publicfloat, upon completion of the Offering:

Actual (direct) Ownership

As of thedate of thisProspectus

Upon completion ofthe Offering

(assuming all BaseShares are placed

and no placement ofOver-Allotment

Shares (no exerciseof the Greenshoe

Option))

Upon completion ofthe Offering

(assuming all BaseShares are placed

and all Over-Allotment Sharesare placed and full

exercise of theGreenshoe Option)

(in %) (in %) (in %)Volkswagen Aktiengesellschaft . . 100.00 90.00 88.50Public float . . . . . . . . . . . . . . . . . . . — 10.00 11.50

Total . . . . . . . . . . . . . . . . . . . . . . . . 100.00 100.00 100.00

Voting rights. Each share of the Company carries one vote at the generalshareholders’ meeting of the Company. All of the Company’sshares confer the same voting rights. There are norestrictions on voting rights.

Direct or indirect control overthe issuer and nature of suchcontrol.

As of the date of this Prospectus, the Company’s soleshareholder is Volkswagen Aktiengesellschaft (the “ExistingShareholder” or “Volkswagen”), which is a German DAXcompany listed inter alia on the regulated market (regulierterMarkt) (Prime Standard) of the Frankfurt Stock Exchange(Frankfurter Wertpapierbörse).

6

B – The Issuer

B.7 Selected key historical financialinformation.

The financial information contained herein has been taken orderived from the Company’s audited consolidated financialstatements as of and for the fiscal years ended December 31,2018, 2017 and 2016 (the “Audited Consolidated FinancialStatements”) and the Company’s unaudited condensedinterim consolidated financial statements as of and for thethree months ended March 31, 2019 (the “UnauditedCondensed Interim Consolidated Financial Statements”).The Audited Consolidated Financial Statements and theUnaudited Condensed Interim Consolidated FinancialStatements were prepared in accordance with InternationalFinancial Reporting Standards as adopted by the EuropeanUnion (“IFRS”). The Audited Consolidated FinancialStatements were audited by PricewaterhouseCoopers GmbHWirtschaftsprüfungsgesellschaft, Munich, who issued anindependent auditor’s report thereon.

Where financial data in the following tables is presented as“audited”, this indicates that the financial data has beentaken from the Audited Consolidated Financial Statementsmentioned above. The label “unaudited” is used in thefollowing tables to indicate financial data that has been takenor derived from the Unaudited Condensed InterimConsolidated Financial Statements, the Company’saccounting records or internal management reportingsystems or was derived from the Audited ConsolidatedFinancial Statements.

Unless otherwise indicated, all financial data presented in thetext and tables in this section of the Prospectus is shown inmillion (EUR or € in million), commercially rounded to a wholenumber. Because of this rounding, the figures shown in thetables or descriptions do not in all cases sum up exactly tothe respective totals given or numbers described.

As of January 1, 2019, the Company has adopted IFRS 16 –Leases in the preparation of its Unaudited Condensed InterimConsolidated Financial Statements using the modifiedretrospective approach. As a result, the figures as of and forthe three months ended March 31, 2019 may not becomparable to the results presented as of and for the threemonths ended March 31, 2018 and the years endedDecember 31, 2018, 2017 and 2016.

7

Consolidated Income Statement Data

Fiscal Year endedDecember 31,

Three monthsended

March 31,

2018 2017 2016 2019 2018

(Audited)(EUR in million)

(Unaudited)(EUR in million)

Sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,927 24,366 21,915 6,413 6,051Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (20,946) (19,653) (17,649) (5,109) (4,856)Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,981 4,713 4,266 1,304 1,195Distribution expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,391) (2,354) (2,316) (580) (562)Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,011) (872) (789) (259) (240)Net impairment losses on financial assets . . . . . . . . . . . . . . . (45) (44) (36) (11) (10)Other operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 792 606 506 185 173Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . (814) (537) (904) (150) (169)Operating profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,513 1,512 727 490 386Share of the result of equity-accounted investments . . . . . . . 209 74 17 77 77Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 91 79 20 22Interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (245) (263) (298) (70) (74)Other financial result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 (34) (32) (9) (13)Financial result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 (132) (234) 17 12Earnings before tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,566 1,379 493 507 398Income tax income/expense . . . . . . . . . . . . . . . . . . . . . . . . . . (415) (489) (297) (122) (105)

Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (449) (377) (424) (119) (114)Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 (111) 127 (3) 9

Result from continuing operations, net of tax . . . . . . . . . . 1,151 890 196 385 293

Result from discontinued operations, net of tax . . . . . . . . 250 149 22 (2) 20Earnings after tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,401 1,039 219 383 312of which attributable to

Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 10 10 5 0TRATON SE (former TRATON AG) shareholders . . . . . . . . 1,390 1,029 208 378 312Earnings per ordinary share from continuing

operations attributable to TRATON SE (formerTRATON AG) shareholders in EUR (basic/diluted)(unaudited)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.30 1.78 0.39 0.76 0.59

Earnings per ordinary share attributable to TRATONSE (former TRATON AG) shareholders in EUR(basic/diluted) (unaudited)(1) . . . . . . . . . . . . . . . . . . . . . 2.78 2.06 0.42 0.76 0.62

(1) Based on 500 million outstanding shares (the number of outstanding shares as at March 31, 2019)

Selected Consolidated Balance Sheet Data

As of December 31,As of

March 31,

2018 2017 2016 2019

(Audited)(EUR in million)

(Unaudited)(EUR in million)

Total noncurrent assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,851 25,377 24,344 27,317Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,533 17,428 16,916 16,025Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,384 42,765 41,260 43,341Equity and LiabilitiesEquity attributable to TRATON SE (former

TRATON AG) shareholders . . . . . . . . . . . . . . . . . . . . . . . . 16,799 11,702 10,829 13,078Noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 108 102 235Total Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,801 11,810 10,931 13,313Total noncurrent liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . 13,217 13,238 11,087 13,605Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,366 17,717 19,241 16,424Total equity and liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,384 42,765 41,260 43,341

8

Selected Consolidated Cash Flow Statement Data

Fiscal Year endedDecember 31,

Three monthsended

March 31,

2018 2017 2016 2019 2018

(Audited)(EUR in million)

(Unaudited)(EUR in million)

Cash and cash equivalents at beginning of period . . . . . . 4,594 4,907 6,575 2,997 4,593Cash flows from operating activities - discontinued

operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (72) (46) 118 - (50)Cash flows from operating activities . . . . . . . . . . . . . . . . . . . . 382 726 758 (385) (3)Cash flows from investing activities - discontinued

operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (184) (174) (186) - (25)Cash flows from investing activities . . . . . . . . . . . . . . . . . . . . (1,065) (1,361) (1,643) 724 (269)Cash flows from financing activities - discontinued

operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) (8) (16) - (2)Cash flows from financing activities . . . . . . . . . . . . . . . . . . . . (865) 392 (775) (494) 473Effect of exchange rate changes on cash and cash

equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (48) (71) (8) 12 (26)

Net change in cash and cash equivalents . . . . . . . . . . . . . (1,596) (314) (1,667) (143) 176

Cash and cash equivalents at end of period . . . . . . . . . . . 2,997 4,594 4,907 2,854 4,769

Significant changes to theissuer’s financial condition andoperating results during andsubsequent to the periodcovered by the historical keyfinancial information.

Significant changes in the issuer’s operating results

Three months ended March 31, 2019 compared to thethree months ended March 31, 2018

The Group’s sales revenue increased by EUR 362 million, or6.0%, from EUR 6,051 million for the three months endedMarch 31, 2018 to EUR 6,413 million for the three monthsended March 31, 2019. This improvement compared to thethree months ended March 31, 2018 was driven primarily byincreased vehicle sales, partially offset by the lack of revenuefrom Volkswagen Gebrauchtfahrzeugshandels und ServiceGmbH (“VGSG”) following its sale effective January 1, 2019.The increase in revenue from vehicle sales waspredominantly related to strong volume growth in EU28+2(excluding Germany), Germany and Brazil, offset by lowersales volumes in South America (excluding Brazil) and theRest of the World.

Operating profit increased by EUR 104 million, or 26.9%,from EUR 386 million for the three months ended March 31,2018 to EUR 490 million for the three months endedMarch 31, 2019 as a result of increased volume of vehiclesproduced and distributed, better product positioning and aslightly favorable foreign exchange effect, partially offset byhigher fixed costs from tariff increases and depreciation.

Earnings after tax increased by EUR 71 million, or 22.8%,from EUR 312 million for the three months ended March 31,2018 to EUR 383 million for the three months endedMarch 31, 2019.

Fiscal year ended December 31, 2018 compared to thefiscal year ended December 31, 2017

The Group’s sales revenue increased by EUR 1,561 million,or 6.4%, from EUR 24,366 million in the fiscal year endedDecember 31, 2017 to EUR 25,927 million in the fiscal yearended December 31, 2018. The increase was primarily drivenby increased vehicle sales and improvements in aftersales.Sales revenue from vehicle sales increased as a result of afavorable product mix following the introduction of Scania’s

9

new truck generation (“NTG”) as well as increased demandfor vehicles which drove unit volumes.

Operating profit increased by EUR 1 million, or 0.1%, fromEUR 1,512 million for the fiscal year ended December 31,2017 to EUR 1,513 million for the fiscal year endedDecember 31, 2018 as a result of improved gross profit,offset by increased costs of labor and administrativeexpenses (including costs in relation with the preparation ofcapital market readiness) and other operating expensesincluding one-off expenses in 2018 for restructuring in India.

Earnings after tax increased by EUR 362 million, or 34.8%,from EUR 1,039 million for the fiscal year endedDecember 31, 2017 to EUR 1,401 million for the fiscal yearended December 31, 2018, primarily due to an increase inthe share of the result of equity-accounted investments, anincrease in the result from discontinued operations, net of taxand higher income from deferred tax.

Fiscal year ended December 31, 2017 compared to thefiscal year ended December 31, 2016

The Group’s sales revenue increased by EUR 2,451 million,or 11.2%, from EUR 21,915 million in the fiscal year endedDecember 31, 2016 to EUR 24,366 million in the fiscal yearended December 31, 2017. The increase was primarily drivenby increased revenue from vehicle sales, but also supportedby increases in other revenue from services, and engines andcomponents sales due to the continued expansion of therolling fleet, which resulted in higher demand for spare partsand workshop demand. The increase in revenue from vehiclesales was predominantly due to volume growth in manyrecovering economies (e.g. Russia, Brazil, Middle East andChina), increased used vehicle sales with a small increaseattributable to favorable price movements.

Operating profit increased by EUR 785 million, or 108.0%,from EUR 727 million for the fiscal year ended December 31,2016 to EUR 1,512 million for the fiscal year endedDecember 31, 2017 as a result of the increase in revenue,offset in part by extra costs attributable to the developmentof Scania’s new truck generation, higher raw material pricesand development costs for a new MAN heavy medium rangetruck. Large one-off expenses for restructuring and antitrustproceedings incurred in 2016 also contributed to thesignificant increase in 2017.

Earnings after tax increased by EUR 820 million, or 374.4%,from EUR 219 million for the fiscal year ended December 31,2016 to EUR 1,039 million for the fiscal year endedDecember 31, 2017. This increase primarily was due to animproved operating profit and partly to an improved financialresult, and was offset in part by higher tax expense.

Significant changes in the issuer’s balance sheet

As of March 31, 2019 compared to December 31, 2018

The Group’s total assets decreased to EUR 43.3 billion as ofMarch 31, 2019 compared to EUR 46.4 billion at the end of2018 mainly as a result of the sale of TRATON’s powerengineering business (“PE Business”) and the decrease incurrent assets following the payments of EUR 4.2 billion ofreceivables from the profit and loss transfer agreement withVolkswagen AG. The first-time adoption of IFRS 16 resultedin increases in both assets and liabilities (lease liabilitiesamounted to EUR 1.1 billion as of March 31, 2019). Total

10

equity decreased to EUR 13.3 billion as of March 31, 2019from EUR 16.8 billion as of December 31, 2018 mainly as aresult of a contribution of capital reserves to Volkswagen AGwhich negatively impacted retained earnings.

The Group’s total liabilities (sum of current and noncurrentliabilities) increased by EUR 0.4 billion, or 1.5%, fromEUR 29.6 billion as of December 31, 2018 to EUR 30.0 billionas of March 31, 2019.

As of December 31, 2018 compared to December 31, 2017

The Group’s total assets increased by EUR 3.6 billion, or8.5%, from EUR 42.8 billion as of December 31, 2017 toEUR 46.4 billion as of December 31, 2018. The increase wasprimarily driven by increases in current assets, particularlyother financial assets which includes a EUR 2.0 billionreceivable from a Volkswagen AG subsidiary outside theTRATON GROUP relating to the disposal of the PE Businessand EUR 4.2 billion of receivables from the profit and losstransfer agreement and tax allocation procedure withVolkswagen AG. The composition of the Group’s assetschanged significantly due to the disposition of the PEBusiness, which was effective as of December 31, 2018,resulting in a decrease in property, plant and equipment andintangible assets associated with the PE Business and anincrease of a receivable mentioned in the previous sentence.

The Group’s liabilities were also impacted by the sale of thePE Business. The Group’s total liabilities (sum of current andnoncurrent liabilities) decreased by EUR 1.4 billion, or 4.4%,from EUR 31.0 billion as of December 31, 2017 toEUR 29.6 billion as of December 31, 2018.

The Group’s total equity increased by EUR 5.0 billion, or42.3%, from EUR 11.8 billion as of December 31, 2017 toEUR 16.8 billion as of December 31, 2018. The increase wasprimarily driven by an improvement in retained earnings,which represent earnings after tax in previous periods as wellas the difference between the value of the MAN SE shares atwhich they were contributed to TRATON SE and therecognized book value of the corresponding assets andliabilities.

As of December 31, 2017 compared to December 31, 2016

The Group’s total assets increased by EUR 1.5 billion, or 3.6%,from EUR 41.3 billion as of December 31, 2016 toEUR 42.8 billion as of December 31, 2017. The increase wasprimarily driven by increases in lease assets and financialservices receivables in addition to increases in inventories,primarily finished goods and purchased merchandise.

The Group’s total liabilities (sum of current and noncurrentliabilities) increased by EUR 0.6 billion (rounded), or 2.1%,from EUR 30.3 billion (rounded) as of December 31, 2016 toEUR 31.0 billion (rounded) as of December 31, 2017. Theincrease was driven by an increase in non-current liabilitiesespecially in non-current financial liabilities following theissuance of notes in Scania’s medium term note program andincreases in deferred tax liabilities. These were partially offsetby lower provisions for taxes and other provisions andreduced current liabilities.

The Group’s total equity increased by EUR 0.9 billion, or8.0%, from EUR 10.9 billion as of December 31, 2016 toEUR 11.8 billion as of December 31, 2017. The increase was

11

primarily driven by 2017 earnings after tax, a cashcontribution by Volkswagen AG and pension planremeasurements partly contributed by exchange differenceson translating foreign operations.

Recent Developments

On February 25, 2019, the shareholders’ meeting of theCompany resolved to increase the Company’s share capitalof EUR 10,000,200 by EUR 489,999,800 to EUR 500,000,000in preparation of the Company’s planned IPO. The capitalincrease was implemented by converting the capital reservesshown on the Company’s unconsolidated annual financialstatements prepared in accordance with German generallyaccepted accounting principles (“German GAAP”) pursuantto the German Commercial Code (Handelsgesetzbuch)(“HGB”) as of December 31, 2018 in the amount ofEUR 489,999,800 into share capital and issuing 489,999,800new no-par value bearer shares (Stückaktien). The capitalincrease was registered in the Company’s commercialregister and thus became effective on March 12, 2019.

On June 4, 2019, the shareholders’ meeting of the Companyresolved to increase the Company’s share capital ofEUR 500,000,000 by EUR 16,000,000,000 toEUR 16,500,000,000 by converting capital reserves shown onthe Company’s unconsolidated German GAAP annualfinancial statements as at December 31, 2018 in the amountof EUR 16,000,000,000 into share capital without issuingnew shares (the “June 2019 Capital Increase”). This capitalincrease was registered in the Company’s commercialregister and thus became effective on June 12, 2019. As aresult, the share capital represented by each ordinary no-parvalue bearer share (Stückaktie) increased from EUR 1.00 toEUR 33.00.

Also on June 4, 2019, the shareholders’ meeting of theCompany resolved that, upon effectiveness of the June 2019Capital Increase, the increased Company’s share capital ofEUR 16,500,000,000 shall be reduced byEUR 16,000,000,000 to EUR 500,000,000 withoutcancellation of shares (the “June 2019 Capital Decrease”).This capital decrease was registered in the Company’scommercial register and thus became effective on June 12,2019. As a result, the share capital represented by eachordinary no-par value bearer share (Stückaktie) decreasedfrom EUR 33.00 to EUR 1.00. Under German corporate law,creditors of the Company who became creditors prior topublication of the registration of the capital decrease, areentitled to demand that the Company provides collateral fortheir claims. Requests can be logged with the Company forthe period of six months following publication of theregistration of the capital decrease, which occurred onJune 12, 2019.

B.8 Selected key pro formafinancial information.

Not applicable. The Company has not prepared pro formafinancial information for inclusion in the Prospectus.

B.9 Profit forecast or estimate. For the period from January 1, 2019 to December 31, 2019,the TRATON GROUP currently expects Operating Return onSales of the TRATON GROUP to be in the range of 6.5% to7.5%. This forecast is based on assumed sales revenues ofthe TRATON GROUP for the period from January 1, 2019 toDecember 31, 2019 slightly above fiscal year 2018.

12

B.10 Qualifications in the auditreport on the historical financialinformation.

Not applicable. The audit reports on the historical financialinformation included in this Prospectus have been issuedwithout qualifications.

B.11 Insufficiency of the issuer’sworking capital for its presentrequirements.

Not applicable. The Company is of the opinion that the Groupis in a position to meet the payment obligations that becomedue within at least 12 months from the date of thisProspectus.

C – Securities

C.1 Type and class of the securitiesbeing offered and/or admittedto trading, including securityidentification number.

Ordinary bearer shares (auf den Inhaber lautendeStammaktien) of the Company with no par value(Stückaktien), each such share representing a notional valueof EUR 1.00 and with full dividend rights as of January 1,2019.

International Securities Identification Number (ISIN):DE000TRAT0N7

German Securities Code (Wertpapierkennnummer, WKN):TRAT0N

Common Code: 196390065

Ticker Symbol: 8TRA

C.2 Currency of the securities issue. The shares of the Company are denominated in EUR.

C.3 Number of shares issued andfully paid.

At the date of the Prospectus, the share capital of theCompany amounts to EUR 500,000,000.00 and is divided into500,000,000 ordinary bearer shares (auf den Inhaber lautendeStammaktien ohne Nennbetrag) with no par value(Stückaktien). All shares of the Company have been fully paidup.

Par value per share, or that theshares have no par value.

Each of the Company’s shares represents a notional value ofEUR 1.00 in the share capital of the Company.

C.4 Rights attached to thesecurities.

Each share of the Company entitles the shareholder to onevote at the Company’s general shareholders’ meeting. Thereare no restrictions on voting rights. The shares of theCompany carry full dividend rights in EUR as of January 1,2019.

C.5 Any restrictions on the freetransferability of the securities.

Except for the restrictions set forth in E.5, there are norestrictions on the transferability of the shares of theCompany.

C.6 Application for admission totrading on a regulated marketand the identity of regulatedmarkets where the securitiesare to be traded.

The Company expects to apply for the admission of itsshares to trading on the regulated market (regulierter Markt)of the Frankfurt Stock Exchange (FrankfurterWertpapierbörse) and the regulated market (regleradmarknad) of Nasdaq Stockholm (börsen), as well as to thesub-segment of the Frankfurt Stock Exchange (FrankfurterWertpapierbörse) with additional post-admission obligations(Prime Standard) and the Large Cap segment of NasdaqStockholm (börsen). The Company expects to make suchapplications on or about June 17, 2019 (for the FrankfurtStock Exchange (Frankfurter Wertpapierbörse)) and on orabout June 27, 2019 (for Nasdaq Stockholm (börsen)). Thelisting approvals (admission decisions) for the Company’sshares are expected to be granted on June 27, 2019. Tradingin the Company’s shares on both the Frankfurt StockExchange (Frankfurter Wertpapierbörse) and NasdaqStockholm (börsen) is expected to commence on June 28,2019.

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C – Securities

The shares of the Company will be traded in EUR on theregulated market (regulierter Markt) of the Frankfurt StockExchange (Frankfurter Wertpapierbörse) and in SEK on theregulated market (reglerad marknad) of Nasdaq Stockholm(börsen).

C.7 Description of dividend policy. The Company envisages paying a dividend of between 30%and 40% of the Company’s annual consolidated net income.Any determination to pay dividends will be made inaccordance with applicable laws, and will depend upon,among other factors, the Company’s results of operations,distributable reserves under HGB, financial condition,contractual restrictions and capital requirements. TheCompany’s future ability to pay dividends may be limited bythe terms of any existing and future debt or preferredsecurities and regulatory requirements.

D –Risks An investment in the shares of the Company is subject torisks. In addition to the other information contained in thisProspectus, investors should carefully consider the followingrisks when deciding whether to invest in the shares. Themarket price of the shares could fall if any of these risks wereto materialize, in which case investors could lose all or part oftheir investments. The following risks, alone or together withadditional risks and uncertainties not currently known to theCompany, or that the Company might currently deemimmaterial, could materially adversely affect its business,assets, financial condition and results of operations.

The order in which the risk factors are presented is not anindication of the likelihood of the risks actually materializing,or the significance or degree of the risks or the scope of anypotential impairment to the Company’s business, assets,financial condition and results of operations.

D.1 Key risks specific to the issuerand its industry.

Risks related to the Group’s Business and Industry

• Demand for the Group’s products depends on economicand political conditions globally and in the Group’s keymarkets, including Europe and South America.

• The commercial vehicle industry is subject to significantcyclicality.

• The Group’s business could be adversely affected by theimposition or, in certain cases, the elimination of,protectionist measures, including tariffs and other barriersto trade.

• The truck and bus manufacturing industry is highlycompetitive.

• The Group’s future business success depends on itsability to respond to evolving market trends withinnovative, attractive and energy-efficient products,technology and services on competitive terms.

• The Group may fail to achieve the targeted benefits fromthe strategic collaboration among its brands andoperational performance improvements, including cost-saving measures.

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D – Risks

• The Group’s future success is dependent on successfulgeographic expansion beyond its core markets of Europeand South America.

• The Group is subject to risks relating to its cooperationwith strategic partners and joint venture partners.

• Governmental regulations regarding climate change andvehicle exhaust emissions could result in substantial costsfor the Group and there can be no assurance that theGroup will be able to develop commercially viableproducts that comply with such regulations.Non-compliance with such regulations could result inregulatory proceedings, substantial fines and limitationson the Group’s ability to market its products.

• Unforeseen business interruptions at production facilitiesmay lead to production bottlenecks or downtime.

• Deviations from planning in connection with largeprojects, including, in particular, new vehicle generations,may result in cost overruns, delays and otherwise hindertheir successful realization.

• The Group may not be able to adjust its productioncapacity in line with demand for its products.

• The Group is dependent on third-party suppliers anddepends on the timely availability of high-quality rawmaterials, parts and components at reasonable prices.

• Vehicle defects and other quality issues could lead torecalls, regulatory inquiries, delays in new productlaunches, penalties and legal liability.

Risks related to the Group’s General Operations

• The Group is subject to risks related to its internationaloperations.

• The Group is dependent on good relationships with itsemployees, their trade unions as well as employeerepresentative bodies and stakeholders and is party to anumber of collective agreements, some of which imposeobligations and restrictions on the Group in connectionwith reorganizations, restructurings or similar corporateactions.

Legal, Regulatory and Tax Risks

• The Group’s operations are subject to a range of differentregulatory requirements worldwide, compliance withwhich is costly and burdensome and non-compliance withwhich may result in significant cost. The Group is alsosubject to risks arising from legal disputes andgovernment proceedings, including antitrust and relatedenforcement actions and damage claims, and tax risks.

• The Group’s compliance, internal control and riskmanagement systems may prove to be inadequate toprevent and discover breaches of laws and regulationsand generally to manage risks.

• The diesel issue at Volkswagen AG has led to a reviewand ongoing reforms of internal controls, the compliancesystem and company culture within the VolkswagenGroup, including the TRATON GROUP. If these reformsare not successfully implemented and future materialcompliance failures occur, the Volkswagen Group,

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D – Risks

including the TRATON GROUP, could be exposed tosignificant adverse consequences.

Risks related to the Group’s Separation from theVolkswagen Group

• The separation from the Volkswagen Group may lead tothe loss of business opportunities and decreasedpurchasing power and result in a loss of synergies.

• The Group may not realize potential benefits from theseparation of its business from the Volkswagen Group’sother businesses.

Risks related to the Group’s Shareholder Structure

• The Existing Shareholder could, also after the completionof the Offering, exert substantial influence on decisionsreached by the general shareholders’ meeting and couldhave diverging interests from those of the Group’s othershareholders following completion of the Offering. Underthe existing domination and profit and loss transferagreement with the Company, as controlled entity, andExisting Shareholder, as controlling entity, the Company’sunconsolidated German GAAP net income for the fiscalyear ending December 31, 2019 will be transferred to theExisting Shareholder and the Existing Shareholder couldissue instructions to the Company that are detrimental tothe Company.

• Membership of the same individuals on the boards of theCompany and of the Volkswagen Group as well as otherrelationships with the Volkswagen Group or companies ofthe Volkswagen Group may result in conflicts of interest.

D.3 Key information specific to thesecurities.

Risks related to the Shares and the Listing

• The Company’s shares have not been publicly listed, andthere is no guarantee that an active and liquid market forthe Company’s shares will develop.

• The market price and trading volume of the Company’sshares may fluctuate significantly and could decline uponcompletion of the Offering, and investors could lose all orparts of their investment. There is no assurance that theprice at which the shares will be traded following theOffering will be equivalent to or above the Offer Price.

• The Company is a holding company with no materialbusiness operations of its own and relies on operatingsubsidiaries to provide the Company with the fundsrequired to meet its financial obligations and makedividend payments.

• Future sales of the Company’s shares by the ExistingShareholder or investors acquiring shares in the Offeringor the perception that such sales may occur could depressthe price of the shares.

E – Offer

E.1 The total net proceeds. The Company will not receive any proceeds from theOffering. The Existing Shareholder will receive the proceedsresulting from the sale of the Base Shares (as defined belowin E.3) and from a potential sale of the Over- AllotmentShares (as defined below in E.3), if and to the extent the

16

E – Offer

Greenshoe Option (as defined below in E.3) in relation to theOver-Allotment Shares is exercised.

Assuming that only the maximum amount of the Base Sharesis placed and no placement of Over-Allotment Shares and noexercise of the Greenshoe Option (and assuming that all suchplaced shares are paid in EUR), the Company estimates thatat the low end, mid-point and high end of the Price Range (asdefined below in E.3), net proceeds to the ExistingShareholder would amount to approximately EUR 1,241million, EUR 1,389 million and EUR 1,536 million respectively.

Assuming placement of the maximum number of BaseShares and full exercise of the Greenshoe Option andplacement of the maximum number of Over-AllotmentShares (and assuming that all such placed shares are paid inEUR), the Company estimates that at the low end, mid-pointand high end of the Price Range, net proceeds to the ExistingShareholder would amount to approximately EUR 1,440million, EUR 1,610 million and EUR 1,779 million,respectively.

Estimate of the total expensesof the Offering and listing,including estimated expensescharged to the investor by theissuer.

Assuming that only the maximum amount of the Base Sharesis placed and no placement of Over-Allotment Shares and noexercise of the Greenshoe Option (and assuming that all suchplaced shares are paid in EUR), the Company estimates thatat the low end, mid-point and high end of the Price Range thetotal costs and expenses related to the Offering of the OfferShares and listing of the shares of the Company (includingunderwriting and placement commissions payable to theUnderwriters (assuming full payment of the discretionaryfee)) would amount to approximately EUR 109 million,EUR 111 million and EUR 114 million, respectively.

Assuming placement of the maximum number of BaseShares and full exercise of the Greenshoe Option andplacement of the maximum number of Over-AllotmentShares (and assuming that all such placed shares are paid inEUR), the Company estimates that at the low end, mid-pointand high end of the Price Range the total costs and expensesrelated to the Offering of the Offer Shares and listing of theshares of the Company (including underwriting andplacement commissions payable to the Underwriters(assuming full payment of the discretionary fee)) wouldamount to approximately EUR 112 million, EUR 115 millionand EUR 118 million, respectively.

Investors will not be charged expenses by the Company, theExisting Shareholder or the Underwriters. Investors will haveto bear customary transaction and handling fees charged bytheir brokers or other financial institutions through which theyhold their securities.

E.2a Reasons for the Offering, use ofproceeds, estimated netamount of the proceeds.

The Company intends to list the shares of the Company onthe regulated market (regulierter Markt) of the FrankfurtStock Exchange (Frankfurter Wertpapierbörse) and theregulated market (reglerad marknad) of Nasdaq Stockholm(börsen) simultaneously, as well as on the sub-segment withadditional post-admission obligations (Prime Standard) of theFrankfurt Stock Exchange (Frankfurter Wertpapierbörse) andthe Large Cap segment of Nasdaq Stockholm (börsen) to gainaccess to the capital markets.

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E – Offer

The Offering is intended to lay the foundation for theCompany’s further profitable growth. The Offering is furtherintended to provide the Company with enhancedentrepreneurial flexibility and access to the capital markets.

The Existing Shareholder will offer the Offer Shares topartially divest its shareholding in the Company. Followingthe Offering, Volkswagen AG intends to remain a committedshareholder of the Company.

The Company will not receive any proceeds from theOffering resulting from the sale of the Offer Shares by theExisting Shareholder in the Offering.

E.3 Terms and conditions of theoffer.

The Prospectus relates to the offering of 57,500,000 ordinarybearer shares (auf den Inhaber lautende Stammaktien ohneNennbetrag) of the Company with no par value (Stückaktien),each such share representing a notional value of EUR 1.00and with full dividend rights in EUR since January 1, 2019(the “Offering”), consisting of:

• 50,000,000 existing ordinary bearer shares (auf denInhaber lautende Stammaktien ohne Nennbetrag) with nopar value (Stückaktien) from the holdings of the ExistingShareholder (the “Base Shares”); and

• 7,500,000 existing ordinary bearer shares (auf den Inhaberlautende Stammaktien ohne Nennbetrag) with no par value(Stückaktien) from the holdings of the Existing Shareholder inconnection with a possible over-allotment (the “Over-Allotment Shares” and, together with the Base Shares, the“Offer Shares”).

The Offering consists of an initial public offering in Germanyand Sweden and private placements in certain jurisdictionsoutside Germany and Sweden. In the United States ofAmerica (the “United States” or “U.S.”), the Offer Shareswill only be offered and sold to qualified institutional buyersas defined in Rule 144A under the United States SecuritiesAct of 1933, as amended (the “Securities Act”), intransactions exempt from the registration requirements ofthe Securities Act. Outside the United States, the OfferShares will only be offered and sold in offshore transactionsin compliance with Regulation S under the Securities Act.

Offer Period. The period during which investors may submit purchase ordersfor the Offer Shares is expected to commence on June 17,2019, and to expire on June 27, 2019 (the “Offer Period”).Offers to purchase Offer Shares may be submitted (i) until12:00 p.m. (noon) CET by private investors, and (ii) until2:00 p.m. CET by institutional investors on the last day of theOffer Period. Price limits for purchase orders in EUR fromprivate investors (other than Swedish Retail Investors (asdefined below)) must be expressed in full EUR amounts orincrements of 25, 50 or 75 cents.

Retail investors who participate in the public offering inSweden (“Swedish Retail Investors”) must place theirorders through SEB. Purchase orders from Swedish RetailInvestors must relate to a minimum of 40 shares and amaximum of 3,000 shares, in multiples of 20 shares.

Institutional investors may elect to place their orders inEUR or in SEK.

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E – Offer

Price Range and Offer Price. The price range for the Offering within which purchaseorders may be placed is EUR 27.00 to EUR 33.00 per OfferShare (the “Price Range”). The Price Range corresponds toSEK 288.92 to SEK 353.12 per Offer Share, as calculatedbased on the EUR/SEK exchange rate one day prior to thepublication of this Prospectus, i.e. June 13, 2019, at17.00 CET as displayed on the Bloomberg website underwww.bloomberg.com/quote/EURSEK:CUR.

The offer price (the “Offer Price”) and the final number ofshares placed in the Offering will be determined at the end ofthe bookbuilding process by the Existing Shareholder afterconsultation with the Joint Global Coordinators. The OfferPrice will be set on the basis of the purchase orderssubmitted by investors during the Offer Period that havebeen collated in the order book prepared during abookbuilding process. The Offer Price will be determined inEUR, and will be converted into SEK for Swedish RetailInvestors and institutional investors who have elected toplace their orders in SEK, based on the EUR/SEK exchangerate at 12:00 p.m. (noon) CET on the last day of the OfferPeriod (expected to be June 27, 2019) as displayed on theBloomberg website under www.bloomberg.com/quote/EURSEK:CUR (the “SEK Converted Offer Price”).

After the Offer Price has been set, the Offer Shares will beallotted to investors on the basis of the purchase offers thenavailable. The Offer Price, the final number of shares placedin the Offering (i.e. the results of the Offering) and the SEKConverted Offer Price are expected to be published onJune 27, 2019, by means of an ad hoc release on anelectronic information dissemination system and on theCompany’s website at www.traton.com under the section“Investor Relations.”

Amendments to the terms ofthe Offering.

Reductions in the number of Offer Shares, changes to thePrice Range or an extension or shortening of the Offer Periodwill not invalidate any offers to purchase Offer Shares thathave already been submitted. If such changes require thepublication of a supplement to the Prospectus, investors whosubmitted purchase orders prior to the publication of thesupplement have the right to withdraw such offers topurchase within two business days following the publicationof the supplement (Section 16 para. 3 WpPG). Instead ofwithdrawing their offers to purchase Offer Shares placedprior to the publication of the supplement, investors maychange their orders or place new limited or unlimited offersto purchase within two business days following thepublication of the supplement.

Delivery and payment. Delivery of the shares placed in the Offering against payment ofthe Offer Price or the SEK Converted Offer Price, as applicable,and customary security commissions is expected to take placeon July 2, 2019. The Offer Shares will be made available toinvestors as co-ownership interests in the global sharecertificate.

Swedish Retail Investors will pay for purchased shares to theextent such shares have been allotted to them in SEK basedon the SEK Converted Offer Price. Retail investorsparticipating in the public offering in Germany will pay forpurchased shares to the e