Volkswagen Ag · XETR:VOW
Volkswagen — Q1 2023 Earnings Presentation
33 slides from Volkswagen's earnings presentation, May 3, 2023
Slide 1: Investor, Analyst and Media Call Q1 2023
Investor, Analyst and Media Call Q1 2023 May 4th 2023 1
Slide 2: Disclaimer
Disclaimer The following presentations as well as remarks/comments and explanations in this context contain forward-looking statements on the business development of the Volkswagen Group. These statements are based on assumptions relating to the development of the economic, political and legal envir
Slide 3: Agenda: Highlights
AGENDA Highlights
Slide 4: Volkswagen Group Highlights Q1 2023
Volkswagen Group Highlights Q1 2023 Gigafactory Valencia: Starting of New version, next level: World premiere of new efficiency construction of second cell factory Launch of the new ID.3 Facelift champion: Volkswagen ID.7 Canada chosen as location for first Iconic Scout brand to deliver More luxury,
Slide 5: The Volkswagen ID.7 – Our New Efficiency Champion on MEB Platform
The Volkswagen ID.7 – Our New Efficiency Champion on MEB Platform Range of up to 700km, superior powertrain, spacious interior and ICV technologies High efficiency and impressive performance New body design • Range of up to 700km acc. to WLTP • Fast charging of up to 200kW • Spaciousness • Performan
Slide 6: Deliveries improving since February 2023
Deliveries improving since February 2023 Deliveries Volkswagen Group Key Takeaways Q1 2023 [‘000 units / per month] 900 • Q1 2023: 2.0m vehicles delivered; 7.5% above prior year; March +24% YoY 800 • Supply situation: disruptions in the logistic chains still impact Q1 deliveries 700 • BEV share is i
Slide 7: BEV Sales up significantly year over year
BEV Sales up significantly year over year Full year target of ~10% in 2023 firmly in sight Quarterly Development Outlook BEV Share [%]; BEV Deliveries [‘000 units] BEV Share [%] ~10% 7% 141 7% 5% 3% Q1 Q2 Q3 Q4 2020 2021 2022 2023e 2020 2021 2022 2023 BEV share 2023 7
Slide 8: Agenda: Financials
AGENDA Financials
Slide 9: Solid Q1 figures are Testimony to our robust Business Model
Solid Q1 figures are Testimony to our robust Business Model January to March 2022 1 vs. 2023 Vehicle Sales Sales Revenue Operating Result and Margin 2 [m vehicles] [€ bn] [€ bn] Margin [%] Fair value of derivatives outside hedge accounting 3 +22% 13.5% 7.5% 76.2 +6% ∑8.5 2.1 62.7 2.0 ∑5.7 3.2 +23%
Slide 10: Automotive Net Cash still impacted by inventory constraints
Automotive Net Cash still impacted by inventory constraints; Automotive Net Liquidity strengthened largely by Porsche IPO Reported Net Cash Flow 1 'Clean' Net Cash Flow 1, 2 Net Liquidity 1 [€ bn] [€ bn] [€ bn] +24% 38.4 31.1 +51% +26% 2.7 2.2 2.2 1.5 Jan – Mar Jan – Mar Jan – Mar Jan – Mar 31 March
Slide 11: Automotive Net Liquidity remains very solid
Automotive Net Liquidity remains very solid Reported Net Cash Flow (€ 2.2bn) Clean Net Cash Flow (€ 2.7bn) -0.1 -0.4 2.7 43.0 -6.5 thereof € -4.6bn increase in 38.4 inventories -0.3 [€ bn] 31 December Operating Diesel M&A Special Other 31 March 2022 Business Outflow Dividend 2023 Porsche IPO (net) 1
Slide 12: Solid Margins across both Divisions
Solid Margins across both Divisions; Passenger Cars impacted by hedging effects January to March 2022 1 vs. 2023 Automotive Division Financial Services Division Passenger Cars 2, 3 Commercial Vehicles 2, 4 Financial Services Operating Result [€ bn] Operating Result [€ bn] Operating Result [€ bn] Mar
Slide 13: Operating Result Passenger Cars down due to fair value effects
Operating Result Passenger Cars down due to large swing in fair value effects January to March 2022 vs. 2023 Operating Result 1 Operating Result [€ bn] [€ bn] Margin [%] 15.5% 7.0% 3.1 -4.6 6.5 6.5 -0.9 3.6 -0.6 3.6 Thereof: Volume/other: +2.7 Mix: -0.3 Price: +0.7 Jan – Mar Jan – Mar Jan – Mar Vol
Slide 14: Financial steering model to master the transformation
Financial steering model to master the transformation Volume Premium Sports Truck & Bus Proof points YTD: • Product launch ID.3 Facelift • World premiere of ID.7 Non- reporting BEV Hardware • Presentation of ID.2All concept entity • New CARIAD tech hub in the US • Launch of a new uniform app store i
Slide 15: Brand Group Volume Performance
Brand Group Volume Performance January to March 2022 vs. 2023 Vehicle Sales [‘000 units] Sales Revenue [€ bn] Key Takeaways +30% +36% • Vehicle sales up by 30% outpaced by 33.2 sales revenue growing 36% 1,193 918 24.4 • Brand Group Volume result almost doubled compared to Q1 2022 mainly driven by vo
Slide 16: Brand Group Premium Performance
Brand Group Premium Performance January to March 2022 vs. 2023 Vehicle Sales [‘000 units] Sales Revenue [€ bn] Key Takeaways +32% +18% • BGP with solid underlying performance 16.9 with RoS at 13.4% excluding negative 323 14.3 244 effect from fair values from raw material hedging; primarily driven by
Slide 17: Brand Group Sport & Luxury Performance
Brand Group Sport & Luxury Performance January to March 2022 vs. 2023 Vehicle Sales [‘000 units] Sales Revenue [€ bn] Key Takeaways +29% +28% • Porsche AG maintained an excellent 85 9.3 RoS of 18.5% supported by vehicle 66 7.3 sales growth and continued positive pricing and mix effects • BEV share a
Slide 18: Software – CARIAD Performance
Software – CARIAD Performance January to March 2022 vs. 2023 Contracted Licenses [‘000 units] Sales Revenue [€ bn] Key Takeaways +35% +53% • Sales revenue improved by 53% driven 0.2 by license revenues with Brand Groups 15,417 10,402 0.1 • Operating result stable • Net cash flow in Q1 2023 benefitte
Slide 19: Battery Business – Performance
Battery Business – Performance January to March 2022 vs. 2023 Operating Result [€ bn] Key Takeaways • Building a global battery business incl. PowerCo • With adding Valencia in Spain and St. Thomas in Canada, PowerCo has now 0.0 decided three sites for cell factories; two of them already under const
Slide 20: Commercial Vehicles – TRATON Performance
Commercial Vehicles – TRATON 1 Performance January to March 2022 vs. 2023 Vehicle Sales [‘000 units] Sales Revenue [€ bn] Key Takeaways +25% +31% • Unit sales up by 25% 85 • Sales revenue up 31% driven by strong 68 10.9 8.4 volume expansion, positive price/mix and vehicle services • Operating margin
Slide 21: Volkswagen Financial Services Performance
Volkswagen Financial Services Performance January to March 2022 1 vs. 2023 Contracts [‘000 units] Credit Loss Ratio [%] Key Takeaways Financing Leasing Insurance/Services +0.05ppts • Overall stable contract volume; slightly -3% lower financing contracts compensated 22,099 21,498 0.32 by more insuran
Slide 22: China Joint Ventures
China Joint Ventures Proportionate Operating Result 2020, 2021, 2022 and 2023 Key Takeaways 3,602 • Slow start to 2023 in January and 3,280 February, especially for SAIC-Volkswagen 970 3,026 722 • FAW-Volkswagen performed solid and ended the first quarter roughly on par 1,064 with prior year • Propo
Slide 23: Volkswagen Group Outlook for 2023 confirmed
Volkswagen Group Outlook for 2023 1 confirmed Actual Outlook 2022 7 Q1 2023 2023 1 2.0m vehicles About 9.5m vehicles Deliveries to customers 8.3m vehicles (+7%) (+15%) € 76.2bn € 307bn to € 321bn Sales revenue € 279.2bn (+22%) (+10% to +15%) 7.5% Operating return on sales ² 8.1% 7.5% to 8.5% (underl
Slide 24: Accelerating our transformation efforts
Accelerating our transformation efforts Final phase of ICE investments in preparation for extensive product launches starting from 2024 and battery plant invest R&D / Capex – Absolute and Ratio (Automotive Division) [€ bn] CAPEX Reducing complexity / R&D variances ∑ 13.7% ∑ 11.8% ∑ 11.9% ∑ ~14.5% ∑
Slide 25: Volkswagen Group Capital Markets Day Agenda
Volkswagen Group Capital Markets Day Agenda Agenda item Timing 21st of June 2023 Shuttle transfer 1 (from dbAccess German Swiss Austrian Conference in FFM) 11:00 am and 2:00 pm Starting 12:00 pm Porsche Pre-CMD event Experience Center, 2 (Driving event and Brand & design experience) 12:30 pm – 3:30
Slide 26: Overall Ambition
Overall Ambition Leading the Transformation with Integrity and Based on our Values Strong brands BEV Financial strength Software ESG / Integrity AI / mobility services 26
Slide 27: Backup
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Slide 28: Financial Calendar
Financial Calendar Annual General Meeting 2023 May 10, 2023 Capital Markets Day 2023 June 21, 2023 Half-Year Financial Results 2023 July 27, 2023 Third Quarter Financial Results 2023 October 26, 2023 28
Slide 29: Volkswagen Group – Analysis by Brand and Business Field
Volkswagen Group – Analysis by Brand and Business Field January to March 2023 (Q1) VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 1 Q1 2023 Q1 2022 1 Brand Group Volume 1,193 918 33,163 24,361 1,742 877 5.3 3.6 Vol
Slide 30: Continued resilient Performance of the underlying operative results
Continued resilient Performance of the underlying operative results Development of Sales, Operating Result and Margin Underlying Operating Result 1, 2 [€ bn] Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 8.5 3.2 7.1 7.1 Reported operating profit 1 5.7 5.2 5.1 1.1 Fair value of derivatives 4.7 4.3 4.4 -1.3
Slide 31: Automotive Division – Bridge from Net Cash Flow to Clean Net Cash Flow
Automotive Division – Bridge from Net Cash Flow to Clean Net Cash Flow 1 January to March 2023 0.4 2.7 0.1 2.2 [€ bn] Reported net Diesel Acquisition and Clean net cash flow outflow disposal of equity cash flow investments 1 Including allocation of consolidation adjustments between Automotive and Fi
Slide 32: Solid Financial Foundation of Automotive Division
Solid Financial Foundation of Automotive Division Resilience further enhanced Balance Sheet Automotive Division [€ bn / in %] 31 December 31 December 31 March 2021 2022 4 2023 301 300 Other liabilities 272 Provisions for pensions Equity and equity ratio 27 27 41 136 139 109 45% 46% 40% Goodwill 1 [€
Slide 33: Volkswagen Group
VOLKSWAGEN GROUP