Slide 1: 2023 Half-Year Financial Report
Christian Levin, CEO | Dr. Michael Jackstein, CFO & CHRO 2023 Half-Year Financial Report, Munich, 07-26-2023 .
Slide 2: Disclaimer
Disclaimer This presentation has been prepared for information purposes only. It does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of Volkswagen AG, TRATON SE, or any company of the TRATON GROUP
Slide 3: Your presenters today
TRATON 2023 Half-Year Financial Report Your presenters today Christian Levin Dr. Michael Jackstein CEO CFO and CHRO 07-26-2023 2023 Half-Year Financial Report | Investor Relations 3 .
Slide 4: Key developments & strategy execution
TRATON 2023 Half-Year Financial Report 1. Key developments & strategy execution 2. Review of financial performance 3. Full year outlook 2023 4. Backup 07-26-2023 2023 Half-Year Financial Report | Investor Relations 4 .
Slide 5: Robust demand and improved production levels in uncertain markets
Robust demand and improved production levels in still uncertain and unpredictable markets Higher industrial production Overall robust truck demand driven by stabilizing supply with high replacement needs, chains with regional differences lower transport activity in and select disturbances some marke
Slide 6: Very strong sales and earnings trajectory
Very strong sales and earnings trajectory Q2 2023 Incoming orders 56.8k (-17%) Unit sales 83.5k (+20%) Sales revenue €11.7 bn (+23%) Vehicle Services €2.2 bn (+3%) Adj. oper. result €1,038 mn (+€642 mn) Adj. RoS 8.9% (+4.7 pp) 2023 Half-Year Financial Report | Investor Relations 6 .
Slide 7: Key milestone for global captive TRATON Financial Services business
Key milestone reached to establish global captive and integrated TRATON Financial Services business Take-over of MAN and VWTB Financial Services activities from VWFS and VW Bank. Step-by-step transfers of country operations, existing portfolio remaining with VWFS. One common backbone, while customer
Slide 8: Continued execution of strategic roadmap towards electrified transport
Continued execution of strategic roadmap towards electrified transport Scania and Northvolt unveil green battery capable to power trucks for 1.5 million km. MAN prepares start of series production of long-distance electric truck: already more than 500 pre-orders. VWTB started series production of e-
Slide 9: Increasing demand for electrified solutions with broadening product offerings
Increasing demand for electrified solutions addressed with broadening product offerings MAN to supply eTrucks to Duvenbeck and Navistar delivers first DB Schenker from 2024 onwards International eMV series to Sysco Scania to supply first regional-haul battery-electric Electric buses in Hamburg: 4x2
Slide 10: MAN achieves next milestone in re-alignment program
MAN achieves next milestone in the execution of the re-alignment program Capacity expansion of Krakow plant successfully completed. Production of entire MAN truck portfolio across light, medium and heavy-duty series. Ramp-up of production until end of 2023 with daily rate of up to 300 vehicles and c
Slide 11: Scania reshaping bus and coach business
Scania reshaping bus and coach business Cessation of production of bodies for Scania bus chassis at the plant in Słupsk, Poland. Body production to be gradually ended by Q1 2024. Scania continues to offer complete buses and coaches via increased cooperation with bodybuilders and partners. Providing
Slide 12: TRATON advances strategic initiatives to become more sustainable
TRATON advances in its strategic initiatives to become more sustainable company Navistar to set emissions reductions targets for validation by the Science- Based Targets Initiative (SBTi). Scania places first green steel order in further step towards decarbonized supply chain. 07-26-2023 2023 Half-Y
Slide 13: In summary
In summary TRATON continues to deliver strong top and bottom-line performance in demanding business environment. Strongly increased unit sales with overall truck demand remaining robust, restrictive order intake continues. TRATON with continued focus on strategy execution and significant progress al
Slide 14: Review of financial performance
TRATON 2023 Half-Year Financial Report 1. Key developments & strategy execution 2. Review of financial performance 3. Full year outlook 2023 4. Backup 07-26-2023 2023 Half-Year Financial Report | Investor Relations 14 .
Slide 15: Restrictive order intake management, strong production and unit sales increase
Continued restrictive order intake management, while production and unit sales increase strongly Incoming orders Unit sales (k units) (k units) H1 23: H1 23: 125.3 168.1 Incoming orders lower YoY with book-to-bill (-24%) (+22%) at 0.7x. -17% +20% Order book and lead times further reduced, 92.0 88.3
Slide 16: Order intake held back by order book management
Order intake held back by active order book management, US book being not yet open for 2024 and Brazil weakness Incoming orders & Unit sales (k units) Scania Vehicles & Services MAN Truck & Bus 50 50 Scania and MAN still with very 40 40 long lead times - demand in 30 30 Europe robust but dampened by
Slide 17: Substantial top-line growth
Substantial top-line growth due to higher new vehicle sales and increased Vehicle Services revenue Sales revenue (€ bn) H1 23: 22.9 Sales revenue increased to €11.7 bn in Q2, (+27%) up by 23% compared to low prior-year basis. +23% 11.8 11.7 Strong volume growth, favorable market and 11.2 10.6 produc
Slide 18: Continued strong underlying earnings and margin growth
Continued strong underlying earnings and margin growth Adj. operating result Adj. RoS (€ mn) (%) H1 23: H1 23: 1,973 8.6 Adjusted operating result and profitability (+147%) (+4.2 pp) more than doubled compared to prior year. +4.7 Earnings benefited in particular from +642 8.9 − higher volumes and pr
Slide 19: H1/Q2 2023 performance and key drivers by brands/segments
H1/Q2 2023 performance and key drivers by brands/segments TRATON Financial Services Sales revenue 8,619 (+26%) 7,036 (+41%) 5,585 (+20%) 1,265 (-12%) 737 (+21%) (in € mn, YoY) H1 Adj. RoS 13.4% (+5.6 pp) 6.8% (+6.1 pp) 6.2% (+2.8 pp) 9.3% (-1.1 pp) 21.5% (-2.6 pp) (YoY) Sales revenue 4,447 (+22%) 3,
Slide 20: Improved net cash flow despite working capital headwinds
Improved net cash flow despite working capital headwinds, supported by one-time effects Net cash flow TRATON Operations (€ mn) H1 23: 1,754 Positive net cash flow in particular driven by (€+3,149 mn) strongly improved operating performance. 1,018 Positive underlying development supported by 709 737
Slide 21: Net debt position improved due to strong operating performance
Net debt position improved in particular due to strong operating performance Net financial debt bridge, 6M 2023 (€ mn) Net debt of TRATON Operations -1,211 incl. Corporate Items reduced by 2,870 96 -293 €0.6 bn vs. year-end 2022 -2,101 -3,118 driven by -3,563 Debt related to + strongly improved oper
Slide 22: Full year outlook 2023
TRATON 2023 Half-Year Financial Report 1. Key developments & strategy execution 2. Review of financial performance 3. Full year outlook 2023 4. Backup 07-26-2023 2023 Half-Year Financial Report | Investor Relations 22 .
Slide 23: Key truck markets continue to be supportive
Key truck markets continue to be supportive, while economic uncertainties remain 600 k units, > 6t - Above-average fleet age 336 Expectation 400 & high pent-up demand EU27+31 2023e - Improving supply chains 200 +5% – +20% - Robust logistics demand 0 and freight rates 09 11 13 15 17 19 21 23 600 k un
Slide 24: Outlook 2023 confirmed
Outlook 2023 confirmed: Backed by strong first half year, TRATON targeting high end of RoS and cash flow ranges FY 2022 FY 2023 Outlook Unit sales 305.5 k +5 to +15% +12% Sales revenue €40.3 bn +5 to +15% +32% Operating RoS 5.1% 7.0 to 8.0% (adjusted) (incl. PPA of €317 mn) (incl. PPA, expected to b
Slide 25: Key takeaways
Key takeaways TRATON continues to deliver strong performance across brands and businesses. Mastering demanding environment with strong focus on customer needs and market trends, while vigorously driving strategic agenda. Strong momentum in underlying earnings and margins, in particular driven by Sca
Slide 26: Backup
TRATON 2023 Half-Year Financial Report 1. Key developments & strategy execution 2. Review of financial performance 3. Full year outlook 2023 4. Backup 07-26-2023 2023 Half-Year Financial Report | Investor Relations 26 .
Slide 27: TRATON GROUP – Outlook
TRATON GROUP – Outlook TRATON GROUP 2022 2023e Unit sales (units) 305,485 +5-15% Sales revenue (€ million) 40,335 +5-15% Adjusted RoS (in %) 5.1 7.0-8.0 TRATON Operations 2022 2023e Sales revenue (€ million) 39,554 +5-15% Adjusted RoS (in %) 5.7 7.5-8.5 Net cash flow (€ million) -625 1,800-2,3001 Ca
Slide 28: TRATON GROUP – Electric vehicles
TRATON GROUP – Electric vehicles Incoming orders of Unit sales of All TRATON brands with BEV products fully electric vehicles fully electric vehicles across major applications/weight classes (units) (units) 744 709 586 608 526 487 446 397 387 410 417 424 412 396 Navistar electric truck MAN electric
Slide 29: Sales revenue and adjusted operating result by segment
TRATON GROUP – Sales revenue and adjusted operating result by segment Sales revenue, Q2 2023 (€ mn) Adj. operating result, Q2 2023 (€ mn) Adj. RoS (∆ YoY) 13.6% 7.7% 6.0% 9.4% 9.7% 19.8% 8.9% (+5.6 pp) (+8.6 pp) (+2.9 pp) (-1.8 pp) (+5.1 pp) (-4.3 pp) (+4.7 pp) 556 385 11,669 11,395 76 2,847 (-26%)
Slide 30: TRATON GROUP – Sales revenue
TRATON GROUP – Sales revenue Sales revenue (€ mn) Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Group 6,544 7,076 8,049 8,950 30,620 8,525 9,457 10,563 11,789 40,335 11,186 11,669 TRATON Operations 6,437 6,965 7,900 8,800 30,103 8,363 9,271 10,361 11,559 39,554 10,940 11,39
Slide 31: Operating result and return on sales
TRATON GROUP – (Adjusted) operating result and (adjusted) return on sales Operating result & return on sales Adjusted operating result & adjusted return on sales 07-26-2023 2023 Half-Year Financial Report | Investor Relations 31 .
Slide 32: TRATON GROUP – Adjustments
TRATON GROUP – Adjustments FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Adjustments (€ mn) 20 21 21 21 21 21 22 22 22 22 22 23 23 Operating result 81 155 301 186 -248 393 355 306 -52 955 1,564 834 966 Scania V&S Expenses in connection with the EU antitrust proceedings 510 510 17 17 Expenses in connection
Slide 33: Incoming orders and unit sales
TRATON Operations – Incoming orders and unit sales Incoming orders (units) Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 TRATON Operations 54,161 33,270 58,502 70,318 216,251 81,742 89,204 97,371 91,658 359,975 95,594 68,619 91,978 78,392 334,5
Slide 34: Incoming orders and unit sales by brands
TRATON Operations – Incoming orders and unit sales by brands Units Q2 2023 Q2 2022 +/- Q2 2023 Q2 2022 +/- Q2 2023 Q2 2022 +/- Q2 2023 Q2 2022 +/- Incoming orders 19,780 18,225 9% 23,423 16,059 46% 5,226 20,608 -75% 8,411 13,827 -39% Trucks 18,568 16,740 11% 15,949 9,489 68% 2,803 17,678 -84% 7,328
Slide 35: Net cash flow and net liquidity/net financial debt
TRATON Operations – Net cash flow and net liquidity/ net financial debt Net cash flow Net cash flow (€ mn) Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 TRATON Operations 753 188 -788 786 938 139 -1,534 61 709 -625 737 1,018 Net liquidity/net financial debt Net liquidity/ne
Slide 36: Scania Vehicles & Services – Key figures
Scania Vehicles & Services – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) +9% +18% -7 bp 1.26 26.8 21.0 18.2 19.3 23.5 18.9 19.8 21.6 22.6 23.8 0.90 0.90 0.88 0.84 0.84 16.6 20.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 22 22
Slide 37: MAN Truck & Bus – Key figures
MAN Truck & Bus – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) -22 bp +46% +86% 1.64 1.62 31.7 34.1 27.9 26.1 28.7 27.3 28.8 1.03 23.4 21.0 0.97 0.95 19.3 0.81 16.1 15.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 22 22 22 22 23
Slide 38: Navistar Sales & Services – Key figures
Navistar Sales & Services – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) 1.75 -79 bp -75% +15% 29.9 1.02 1.04 20.6 23.5 17.1 20.3 22.6 22.0 22.5 23.2 0.71 15.9 0.55 12.1 5.2 0.22 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 22 22
Slide 39: Volkswagen Truck & Bus – Key figures
Volkswagen Truck & Bus – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) +5 bp -39% -42% 1.37 1.06 0.89 1.01 1.03 13.1 13.8 15.2 14.9 14.7 13.7 14.8 0.63 7.7 8.4 10.9 12.1 7.9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 22 22 22 22
Slide 40: TRATON GROUP – Bonds outstanding
TRATON GROUP – Bonds outstanding TRATON with well-tested access to the debt capital markets €7.5 bn in bonds outstanding per June 30, 2023 Issuer TRATON Finance Luxembourg S.A. Guarantor TRATON SE (Ticker: 8TRA, Country: DE) Sustainability TRATON SE features an ESG rating from ISS ESG (Prime, C+) Fo
Slide 41: TRATON GROUP – Debt maturity profile
TRATON GROUP – Debt maturity profile Maturity profile (€ bn)1 Major financings Debt overview (€ bn) • €700m Schuldschein TRATON financial debt 20.4 (tranches of 3y, 5y and 7y) thereof CI/OP 9.1 • Total of €7.5bn Bonds (tranches of 1.5y to 12y) thereof FS 11.3 • €4.5bn syndicated RCF (undrawn) Leasin
Slide 42: Investor Relations Team
TRATON Investor Relations Team Lars Korinth Thomas Paschen Head of Investor Relations Analysts and Investors, Consensus, Private Investors +49 152 313 73 138 +49 170 907 34 94 lars.korinth@traton.com thomas.paschen@traton.com Marie Fischhaber Fabian Schimpf Annual General Meeting, Events Analysts an
Slide 43: 2023 Half-Year Financial Report
Christian Levin, CEO | Dr. Michael Jackstein, CFO & CHRO 2023 Half-Year Financial Report, Munich, 07-26-2023 .