MAN SE 

Significant earnings improvement driven by Commercial Vehicles

Interim Report as of March 31, 2011 – Q1 2011

Dear Shareholders,

The MAN Group has made a strong start to 2011. The Commercial Vehicles business area in particular contributed to a significant improvement in earnings compared with the prior-year quarter. While the European commercial vehicles business continued its steady recovery, MAN again set new records in Latin America. MAN’s international growth strategy is paying off and is being actively driven forward. This is also reflected in our globally focused Power Engineering business area, which again generated high earnings for MAN in Q1/2011.

In the first quarter of 2011, MAN increased its order intake by 26% year-on-year to €4.4 billion. MAN Truck & Bus recorded particularly strong growth of 47% to €2.5 billion, primarily in heavy trucks. At €0.9 billion, MAN Latin America achieved the best quarterly figure in its history. Orders in the Power Engineering business area totaled €1.1 billion (–3%), with Turbomachinery seeing a sharp increase (+72%). Order intake was also up at the largest strategic business unit, Engines & Marine Systems (+5%), and at Renk (+13%).

At €3.7 billion, the MAN Group’s revenue in the first three months was 19% higher than in the previous year. The European commercial vehicles business grew by 35% to €2.0 billion. The 91% increase in unit sales of trucks compared with the weak prior-year quarter was particularly remarkable. In Latin America MAN lifted its revenue by 20% to €0.9 billion, which is another historic high for this division. Revenue in the Power Engineering business area was down slightly year-on-year to €0.9 billion (–6%). While Engines & Marine Systems increased its revenue by 5% to €402 million, the other strategic business units recorded declines. This is due mainly to the volatile nature of the large plant business.

In the first quarter, MAN more than doubled its operating profit from the crisis-related low prior-year figure of €128 million to €325 million. This improvement was driven primarily by the Commercial Vehicles business area, which contributed €196 million. This reflects the sharp rise in capacity utilization at MAN Truck & Bus and the sustained high earnings generated by MAN Latin America. The Power Engineering business area made another significant earnings contribution of €122 million and recorded a strong return on sales of 13.3%. Return on sales for the MAN Group as a whole was up from 4.1% in the prior-year quarter to 8.7%.

The figures from the commercial vehicles business clearly reflect the economic upturn, especially in Europe. However, the debt situation in Europe and the United States as well as political unrest in the Arab countries are repeatedly causing considerable uncertainty in the financial and commodity markets. This makes it all the more important for companies to position themselves strategically in good time. MAN has done this with its international growth strategy that focuses on the BRIC countries. This strategy gives us a presence in the world’s largest and fastest growing transportation and energy markets. At the same time, our activities in Europe and other markets enable us to offset different economic phases and extend technology lifecycles.

We are continuing this successful strategy in 2011: In Brazil, we will increase our capacity from 72,000 to around 82,000 vehicles and leverage market potential as the industry leader. This year, we will build a new truck plant at our St. Petersburg site in Russia. This local production facility will allow MAN — the leading western brand on the Russian market — to benefit from the strong growth in the industry. Together with our Chinese partner Sinotruk, we will develop heavy trucks tailored to the emerging economies in Asia and Africa under the new SITRAK brand by the end of the year. Delivery of the first vehicles to customers will already be underway in around one year’s time. Unit sales of 200,000 are planned in the long term.

The Power Engineering business area also gives MAN a strong presence worldwide. Around one half of global trade continues to be transported using large-bore diesel engines produced by MAN. We can offer a large number of options for the power generation of the future, such as flexible, environmentally friendly diesel/gas engines and components for solar thermal energy and wind power. The market potential and our ideas in this area know almost no bounds.

We are forecasting revenue growth of 7 to 10% for the MAN Group in fiscal 2011; return on sales will increase by at least 1 percentage point year-on-year.

Dr.-Ing. Georg Pachta-Reyhofen

CEO of MAN SE