Traton Se · XETR:8TRA
Traton — Investor Day (May 2022)
34 slides from Traton's investor day presentation, May 18, 2022
Slide 1: TRATON Way Forward
TRATON Way Forward TRATON Capital Markets Day Christian Levin, CEO Södertälje, 05-18-2022 .
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: A lot has been achieved in the past six years
A lot has been achieved in the past six years 2015 2019 2021 2021+ Establishment of Successful IPO Acquisition New VW Truck & Bus of TRATON SE of Navistar TRATON Strategy 2018 2021 2021 2021 Re-branding/ Squeeze-Out of MAN SE, Charging JV with Introduction of new identity realignment MAN T&B Daimler
Slide 4: Key strategic questions for TRATON Way Forward have changed
Key strategic questions for “TRATON Way Forward” have changed Global Champion Strategy: Strategic questions (2015-21) 1 How to develop a group/own entity for trucks & buses? 2 Where to focus for economies of scale? 3 What are most important profit pools globally and how to tap into them? 4 Will elec
Slide 5: Key strategic questions for TRATON Way Forward have changed
Key strategic questions for “TRATON Way Forward” have changed TRATON Way Forward: Strategic questions (2022-30+) Global Champion Strategy: Strategic questions (2015-21) How to ensure sustainable business and uphold needs of environment, 1 How to develop a group/own entity for trucks & buses? society
Slide 6: Our new strategy guides our path towards the future
Our new strategy guides our path towards the future Responsible TRATON Company Accelerated! Value Creation 6 .
Slide 7: Responsible Company
Responsible Company Make responsible behavior a top priority in everything we do Decarbonization & Circularity Responsible People & Diversity Company TRATON Value Accelerated! Governance & Ethics Creation 7 .
Slide 8: Our approach to sustainability and ESG management is science-, risk- and impact-based
Responsible Company Our approach to sustainability and ESG management is science-, risk- and impact-based Sustainability ESG 8 .
Slide 9: We are fully committed to the Paris Agreement
Responsible Company We are fully committed to the Paris Agreement Scope -50% -70% -28/-19% -20% 1+2 t CO2e t CO2e (2030 vs. 2019)1 Electricity/Gas usage (2022 vs. 2018)2 Energy intensity improvement (2025 vs. 2015)1 (2030 vs. 2018)3 Well to wheel Well to wheel Tank to wheel Scope 35 -20% -28% -24/-2
Slide 10: Our CO2 impact stems almost exclusively from our products' use phase
Responsible Company Our CO2 impact stems almost exclusively from our products’ use phase – but will change in the future Combustion engine BEV BEV (electricity mix)1 (green electricity)2 Use Production Maintenance Recovery 1 Based on EU 2016 electricity mix 2 Based on prognosed EU 2030 electricity m
Slide 11: Comparison of system efficiency between BEV and FEV
Responsible Company Our strategic focus is underlined by a comparison of system efficiency between BEV and FEV Production Refueling Operation Electrical 100% energy distribution & inversion AC/DC mix of slow & fast charging DC-AC, engine & transmission 90% 90% 90% BEV efficiency efficiency efficienc
Slide 12: We see battery electric vehicles become the majority technology for trucks and buses
Responsible Company We see battery electric vehicles become the majority technology for trucks and buses % ICE Additional alternative technologies competing with diesel BEV 2022 2030 2040 12 .
Slide 13: We boost our e-mobility investments
Responsible Company We boost our e-mobility investments Investment increase 2022 Investment increase 2021 €1.6 bn €2.6 bn €1.0 bn 2020 - 2025 2021 - 20261 1 Incl. Navistar 13 .
Slide 14: All TRATON brands with BEV products across major applications and weight classes
Responsible Company All TRATON brands with BEV products across major applications and weight classes MAN electric truck Scania electric bus Navistar electric bus VWCO electric truck (eTGM) (Citywide LF) (IC Bus electric CE Series) (e-Delivery) Scania electric truck Navistar electric truck MAN electr
Slide 15: No limits for BEV technology: Technical capability for use cases >70t GVW
Responsible Company No limits for BEV technology: Technical capability for use cases >70t GVW 74-tonne Proven High load Reduce electrified technical capacity emissions Scania truck feasibility and longer in the road sold to of electric range freight sector Boliden vehicles 15 .
Slide 16: High-performance charging network for Europe
Responsible Company High-performance charging network for Europe >1,700 public charging points €500 mn investment (jointly) Joint Venture Agreement signed, Network will be open and accessible to subject to regulatory approvals all brands Core focus on heavy-duty long-haulage Intended to enha
Slide 17: Electrification will impact repair & maintenance but also open new profit pools
Responsible Company Electrification will impact how we do repair & maintenance but also will open new profit pools Win customers from 3rd party Shift business model Charging services providers for complex from product to service (e.g. eMSP, charging) repair/maintenance services Price based o
Slide 18: Circularity – Optimize resource consumption here & now
Responsible Company Circularity – Optimize resource consumption here & now Business model Today’s examples Reuse: Prioritization of recycled metals in foundries Remanufacturing: High- Produce Use quality scrap to serve spare- parts on a secondary market Battery recycling: Utilization of battery recy
Slide 19: Value Creation
Value Creation Focus on sustainable value creation for our stakeholders Performance-driven Responsible Navistar as part of TRATON family TRATON Company Value Accelerated! TRATON goes China Creation 19 .
Slide 20: Creating value for our stakeholders
Value Creation Creating value for our stakeholders 1 2 3 China important Successful integration growth market Performance driven of Navistar Brand performance Integration of Navistar and China as important future programs, brand cooperation realization of its full potential profit pool and a growth
Slide 21: Ambitious targets for each of our brands
Value Creation Ambitious targets for each of our brands Strategic RoS target 12% 8% 8% 9% Fully committed Realignment Volume growth and Deliver profitable to sustainability program & topline strong products performance improvement Focus More high-margin Higher margin by Benefit from Gr
Slide 22: Strong markets with transition to new technologies and solution offerings
Value Creation Strong markets with transition to new technologies and solution offerings as basis for future growth Market cycle Electrification Services maturity (Illustrative view) • Service/aftermarket Short-term Europe risks • Innovation front-runner expected to increase • Growth of solution off
Slide 23: China is one of the most important profit pools
Value Creation China is one of the most important profit pools 1.4 million trucks sold in 2021 World’s largest single market for commercial vehicles Segment shift towards more sophisticated products First western truck manufacturer with license for fully independent production in China 23 .
Slide 24: TRATON Accelerated!
TRATON Accelerated! Shape our role in the future logistics ecosystem Business Model Expansion Responsible Partnership Culture TRATON Company Value Accelerated! Embrace Digital Creation 24 .
Slide 25: ACE platform elements critical for all ACE-related business models
TRATON Accelerated! ACE1 platform elements critical for all ACE-related business models Autonomous vehicle Self-driving system Control Tower + service (SDS) (CT) ACE vehicle Virtual driver ensures Ensures basic dispatching control of vehicle of vehicles Maintenance & repair capabilities Au
Slide 26: We build a solution ecosystem around our customer
TRATON Accelerated! We build a solution ecosystem around our customer Administration Transport planning Charging Reports & analytics Transport facilities Real-time tracking management Route & flow optimization En-route Vehicle data & telematics Fleet Mobility Added services Cost optimization managem
Slide 27: Future Financial Services set-up currently being defined
TRATON Accelerated! Future Financial Services set-up currently being defined Status Scania Financial Services MAN branded VWCO directly via Financial Services is a fully integrated Financial Services VW Financial Services – provided through Bank captive Financial front-end no separate brandi
Slide 28: TRATON FS – Global multi-brand captive finance business
TRATON Accelerated! TRATON FS – Global multi-brand captive finance business leveraging existing structures Brand specific front office Common back office Increased funding capabilities 28 .
Slide 29: New strategy will guide path towards the future
New strategy will guide path towards the future - we will ensure successful strategy execution NEW Strategy Strategy Execution & Governance Responsible TRATON Company Accelerated! Value Creation 29 .
Slide 30: Build-up of a TRATON Modular System based on Scania principles
Strategy Execution & Governance Build-up of a TRATON Modular System based on Scania principles Scania Bygglåda TRATON Modular System TRATON Modular System We create standardized Group interfaces 2x Within Group: Same need – identical solution Enable profitable mass customization of broad variant off
Slide 31: From evolution to revolution
Strategy Execution & Governance From evolution to revolution TRATON MODULAR SYSTEM Realized value … Reusable, modular parts for Common ALL TRATON Brands components Joint negotiations Time 31 .
Slide 32: Strong Group Product Management and Solution Development planned
Strategy Execution & Governance Strong Group Product Management and Solution Development planned to be set up Group Product Management Group Solution Development ICE powertrain E-mobility (incl. battery) Autonomous, software, E/E Basic chassis/cab Bus solutions Modularization: Solution development b
Slide 33: One strong Group delivering
Strategy Execution & Governance More performance steps Faster time to market, and more customer one integration, then value to all brands “plug & play” for brands One strong Group delivering outstanding customer value Lower product/component/ Afford necessary system cost as well as technology integr
Slide 34: TRATON – Exciting pathway ahead
TRATON – Exciting pathway ahead Strategy Execution & Governance Responsible TRATON Company Accelerated! Value Creation 34 .