Traton Se · XETR:8TRA
Traton — FY2020 Earnings Presentation
40 slides from Traton's earnings presentation, Mar 22, 2021
Slide 1: Annual Media Conference for Fiscal Year 2020
ANNUAL MEDIA CONFERENCE FOR FISCAL YEAR 2020 MATTHIAS GRÜNDLER, CEO CHRISTIAN SCHULZ, CFO MUNICH - MARCH 22, 2021
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
ANNUAL MEDIA CONFERENCE ON FISCAL YEAR 2020 – YOUR PRESENTERS TODAY Matthias Gründler Christian Schulz Julia Kroeber-Riel Chief Executive Officer Chief Financial Officer Head of Group Communications & Governmental Relations 3
Slide 4: Agenda
AGENDA 1. Challenging Environment 2020 2. Core KPIs Fiscal Year 2020 3. Road To The Future 4. Q&A 4
Slide 5: COVID-19 Pandemic with Huge Impact in 2020 and Beyond
COVID-19 PANDEMIC WITH HUGE IMPACT IN 2020 AND BEYOND GLOBAL ECONOMY Recovering from severe impact of COVID-19 POLITICAL ENVIRONMENT pandemic, but still under pressure European Green Deal and US elections PEOPLE PLANET PERFORMANCE BUSINESS CLIMATE COMPANY ENVIRONMENT European truck and bus market de
Slide 6: Global Economy Is Recovering from Setback from the Pandemic
DEEP DIVE GLOBAL ECONOMY GLOBAL ECONOMY IS RECOVERING FROM SETBACK FROM THE PANDEMIC Growth expected for 2021, but environment still fragile 5.4 5.5 6.0 4.5 5.1 4.2 3.3 3.4 1.3 1.4 2.0 1.7 -3.5 -3.4 -4.9 -7.2 -8.0 -10.2 2020 2021 2020 2021 2020 2021 World Euro Area US GDP forecasts for 2020/2021 as
Slide 7: Business Climate Is Brightening, Not Yet on Normal Level
DEEP DIVE BUSINESS CLIMATE BUSINESS CLIMATE IS BRIGHTENING, NOT YET ON NORMAL LEVEL Truck registrations (> 16t) in Europe improving1 60 40 20 2021 2021 2021 0 -20 -40 -60 2017 2018 2019 2020 Monthly European truck registrations (k units) YoY change (in %) 1 ACEA new heavy commercial vehicles (HCV) r
Slide 8: Global Trade Relations and CV Industry Are Transforming
DEEP DIVE POLITICAL ENVIRONMENT GLOBAL TRADE RELATIONS AND CV INDUSTRY ARE TRANSFORMING A NEW BEGINNING? MARKET RAMP-UP ALTERNATIVE Restructuring of the international trade DRIVES & AUTOMATION. relations Purchase incentives for customers and investments in charging infrastructure needed First road t
Slide 9: Strong Second Half of the Year After Steep Decline
DEEP DIVE COMPANY ENVIRONMENT STRONG SECOND HALF OF THE YEAR AFTER STEEP DECLINE Incoming orders & unit sales (k units) 80 70 70.3K 60 62.5K 50 40 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 18 18 18 18 19 19 19 19 20 20 20 20 9
Slide 10: Agenda
AGENDA 1. Challenging Environment 2020 2. Core KPIs Fiscal Year 2020 3. Road To The Future 4. Q&A 10
Slide 11: Snapshot TRATON Group Core KPIs FY 2020
DEEP DIVE COMPANY ENVIRONMENT SNAPSHOT TRATON GROUP CORE KPIS FY 2020 Trucks and buses (units) 2020 2019 Change 2020 2019 Change 216,251 227,240 -5% 190,180 242,219 -21% INCOMING ORDERS UNIT SALES 2020 2019 Change 2020 2019 Change 2020 2019 Change 174,006 220,723 -21% 16,174 21,496 -25% 1.14 0.94 0.
Slide 12: Group Core KPIs: Sales Revenue, Adj. Operating Result
DEEP DIVE COMPANY ENVIRONMENT DEEP DIVE GROUP CORE KPIS Financial key performance indicators (€ million) 2020 2019 Change 2020 2019 Change 22,580 26,901 -16% 135 1,871 -1,736 SALES REVENUE ADJ. OPERATING RESULT1 2020 2019 Change 0.6 7.0 -6.4 pp ADJ. OPERATING ROS (in %)2 1 FY 2020: Operating Result
Slide 13: Group Core KPIs: Industrial Business
DEEP DIVE COMPANY ENVIRONMENT DEEP DIVE GROUP CORE KPIS Industrial Business (€ million) 2020 2019 Change 2020 2019 Change 22,156 26,444 -16% 28 1,729 -1,701 SALES REVENUE ADJ. OPERATING RESULT1 2020 2019 Change 0.1 6.5 -6.4 pp ADJ. OPERATING ROS (in %)2 1 FY 2020: operating result €-26 mn; Operating
Slide 14: Group Core KPIs: Capex, R&D, Cash Flow, Net Liquidity
DEEP DIVE COMPANY ENVIRONMENT DEEP DIVE GROUP CORE KPIS Industrial Business (€ million) 2020 2019 Change 2020 2019 Change 992 993 0% 1,165 1,376 -15% CAPEX1 PRIMARY R&D COSTS 2020 2019 Change 2020 2019 Change 676 2,711 -2,036 27 1,500 -1,473 NET CASH FLOW2 NET LIQUIDITY3 1 Capital expenditures in pr
Slide 15: Group Core KPIs: Financial Services
DEEP DIVE COMPANY ENVIRONMENT DEEP DIVE GROUP CORE KPIS Financial Services (€ million) 2020 2019 Change 2020 2019 Change 820 849 -3% 107 142 -35% SALES REVENUE OPERATING RESULT 15
Slide 16: Positive Truck Market Outlook, Depending on COVID-19 Development
DEEP DIVE COMPANY ENVIRONMENT POSITIVE TRUCK MARKET OUTLOOK, DEPENDING ON COVID-19 DEVELOPMENT Truck market (˃ 6t, k units) 376 Market expectations2 273 341 EU27+31 300 2021e +10% to +25% 2009 2011 2013 2015 2017 2019 2021e Market expectations2 145 122 171 AMERICA 134 SOUTH 2021e +10% to +40% 2009 2
Slide 17: Outlook 2021: Recovery After Strong Decline
DEEP DIVE COMPANY ENVIRONMENT OUTLOOK 2021: RECOVERY AFTER STRONG DECLINE TRATON GROUP Core KPIs FY 2019 FY 2020 2021 Outlook1 FY 2019 FY 2020 2021 Outlook1 242.2 k 190.2 k Sharp €26.9 bn €22.6 bn Substantial increase increase + 4% -21% + 4% -16% UNIT SALES SALES REVENUE FY 2019 FY 2020 2021 Outlook
Slide 18: H2 2020 Significantly Stronger Than H1 2020
DEEP DIVE COMPANY ENVIRONMENT H2 2020 SIGNIFICANTLY STRONGER THAN H1 2020 SALES REVENUE (€ bn) 12.5 Noticeable market recovery, 10.1 though business activities still significantly impacted by the COVID-19 pandemic Incoming orders: +47% vs. H1 2020 H1 18 H2 18 H1 19 H2 19 H1 20 H2 20 ADJ. OPERATING R
Slide 19: Snapshot TRATON - Strategic and Product Highlights 2020
DEEP DIVE COMPANY ENVIRONMENT SNAPSHOT TRATON - STRATEGIC AND PRODUCT HIGHLIGHTS 2020 The TRATON GROUP successfully followed its Global Champion Strategy Strategy November November October September TRATON GROUP to expand Agreement for acquisition TRATON and Hino start Global partnership with TuSimp
Slide 20: Agenda
AGENDA 1. Challenging Environment 2020 2. Core KPIs Fiscal Year 2020 3. Road To The Future 4. Q&A 20
Slide 21: Successful Execution of Our Global Champion Strategy
SUCCESSFUL EXECUTION OF OUR GLOBAL CHAMPION STRATEGY Leader in Profitability | Global Presence | Innovation Brand Cooperation Global Customer-focused Performance & Synergies Expansion Innovation Increase performance Increase cooperation and Leverage scale through Transforming of brands with individu
Slide 22: Start of Introduction of the Common Base Engine in H2 2021
COOPERATION & SYNERGIES START OF INTRODUCTION OF THE COMMON BASE ENGINE (CBE) IN H2 2021 50% Common base engine (CBE) CBE Enhanced fuel efficiency expected to be installed in almost half of TRATON heavy- Reduced weight duty trucks per year from 2025e Low maintenance onwards. $ The majority of the ma
Slide 23: TRATON Increases R&D Investment in E-Mobility to €1.6 Billion
CUSTOMER-FOCUSED INNOVATIONS TRATON INCREASES R&D INVESTMENT IN E-MOBILITY TO €1.6 BILLION TRATON invests All brands are shifting budgets from €1.6 billion in R&D for conventional drives to e-mobility e-mobility from 2021 to 2025 Share of product development1 for e-mobility will be doubled until 202
Slide 24: Our Brands Focus on E-Mobility Leadership
CUSTOMER-FOCUSED INNOVATIONS OUR BRANDS FOCUS ON E-MOBILITY LEADERSHIP SINCE 2020 BY 2025 BY 2030 Common modular electric powertrain Electrified vehicles will account for Electrified vehicles will account for toolkit, used in the first series produced around 10% of Scania’s total vehicle 50% of Scan
Slide 25: BEV Will Become Mainstream in All Major CV Segments
CUSTOMER-FOCUSED INNOVATIONS BEV WILL BECOME MAINSTREAM IN ALL MAJOR CV SEGMENTS Total cost of ownership is the most important driver for adoption of new drivetrains, exceeding regulatory impact. We see BEV as the most cost-efficient solution, especially in long-distance applications (due to high en
Slide 26: Scania and MAN Have Several Autonomous Initiatives Ongoing
CUSTOMER-FOCUSED INNOVATIONS SCANIA AND MAN HAVE SEVERAL AUTONOMOUS INITIATIVES ONGOING SÖDERTÄLJE | H2H TL TuS MUNICH | H2H INITIATIVE SHANGHAI | PORT TUS PILOT ULM | ANITA HAMBURG | TRUCKPILOT QATAR | QATAR MOBILITY DAMPIER | RIO TINTO IRON/ORE AV Initiatives @ SCANIA AV Initiatives @ MAN 26
Slide 27: MAN T&B Measures to Improve Earnings
BRAND PERFORMANCE MAN T&B MEASURES TO IMPROVE EARNINGS Overview by item type (€ mn) Key issues paper to realign MAN T&B agreed 1.700 • Strong focus on future technologies • Repositioning of the production and development 550 network • Reduction of ~3,500 jobs across all areas in Germany by the end o
Slide 28: Consistent Implementation of Site Restructuring - Production
BRAND PERFORMANCE CONSISTENT IMPLEMENTATION OF SITE RESTRUCTURING - PRODUCTION Salzgitter Starachowice Lead location for global logistics activities Low-floor-city bus / ebus Components-plant • Non-driven axle • Crankshaft Krakow Nuremberg Volume balancing plant Truck Lead production plant for motor
Slide 29: Status and Next Steps with Navistar
GLOBAL EXPANSION STATUS AND NEXT STEPS WITH NAVISTAR Signing and announcement of merger agreement on November 7, 2020 Navistar shareholder approval received at Navistar Annual Meeting on March 2, 2021 Regulatory approvals expected in H1 2021 Closing expected mid-2021 29
Slide 30: After Strong Headwinds in 2020 TRATON Is Ready for 2021
AFTER STRONG HEADWINDS IN 2020 TRATON IS READY FOR 2021 2020 Adjusted Operating Proposed dividend Operating Return on Sales Revenue down Result at €135 of €0.25 per share1 Sales at 0.4% to €22.6 billion million 2021 For 2021 Operating Key Issues Paper on Budget Shift Return on Sales of Closing on Na
Slide 31: Agenda
AGENDA 1. Challenging Environment 2020 2. Core KPIs Fiscal Year 2020 3. Road To The Future 4. Q&A 31
Slide 32: Contacts Group Communications
CONTACTS GROUP COMMUNICATIONS Julia Kroeber-Riel Sacha Klingner Sebastian Rausch Matthias Karpstein Head of Group Communications Head of Corporate Communications Financial Media Relations Business Media Relations & Governmental Relations julia.kroeber-riel@traton.com sacha.klingner@traton.com sebast
Slide 33: Annual Media Conference for Fiscal Year 2020
ANNUAL MEDIA CONFERENCE FOR FISCAL YEAR 2020 MATTHIAS GRÜNDLER, CEO CHRISTIAN SCHULZ, CFO MUNICH - MARCH 22, 2021
Slide 34: Appendix
APPENDIX
Slide 35: Scania Vehicles & Services – Core KPIs: Incoming Orders, Unit Sales
DEEP DIVE COMPANY ENVIRONMENT SCANIA VEHICLES & SERVICES – CORE KPIS Trucks and buses (units) 2020 2019 Change 2020 2019 Change 92,940 88,739 5% 72,085 99,457 -28% INCOMING ORDERS UNIT SALES 2020 2019 Change 2020 2019 Change 66,899 91,680 -27% 5,186 7,777 -33% OF WHICH TRUCKS OF WHICH BUSES 35
Slide 36: Scania Vehicles & Services – Core KPIs: Sales Revenue, Adj. Operating Result
DEEP DIVE COMPANY ENVIRONMENT SCANIA VEHICLES & SERVICES – CORE KPIS Financial key perfomance indicators (€ million) 2020 2019 Change 2020 2019 Change 11,521 13,934 -17% 802 1,506 -704 SALES REVENUE ADJ. OPERATING RESULT 2020 2019 Change 7.0 10.8 -3.9 pp ADJ. OPERATING ROS (in %) 36
Slide 37: MAN Truck & Bus – Core KPIs: Incoming Orders, Unit Sales
DEEP DIVE COMPANY ENVIRONMENT MAN TRUCK & BUS – CORE KPIS Financial key perfomance indicators (€ million) 2020 2019 Change 2020 2019 Change 84,921 100,652 -16% 81,673 104,887 -22% INCOMING ORDERS UNIT SALES 2020 2019 Change 2020 2019 Change 76,333 97,524 -22% 5,340 7,363 -27% OF WHICH TRUCKS1 OF WHI
Slide 38: MAN Truck & Bus – Core KPIs: Sales Revenue, Adj. Operating Result
DEEP DIVE COMPANY ENVIRONMENT MAN TRUCK & BUS – CORE KPIS Financial key perfomance indicators (€ million) 2020 2019 Change 2020 2019 Change 9,659 11,088 -13% -553 371 -925 SALES REVENUE ADJ. OPERATING RESULT 2020 2019 Change -5.7 3.3 -9.1 pp ADJ. OPERATING ROS (in %) 38
Slide 39: Volkswagen Caminhões e Ônibus – Core KPIs: Incoming Orders, Unit Sales
DEEP DIVE COMPANY ENVIRONMENT VOLKSWAGEN CAMINHÕES E ÔNIBUS – CORE KPIS Financial key perfomance indicators (€ million) 2020 2019 Change 2020 2019 Change 38,805 41,103 -6% 36,974 41,891 -12% INCOMING ORDERS UNIT SALES 2020 2019 Change 2020 2019 Change 31,242 35,282 -11% 5,732 6,609 -13% OF WHICH TRU
Slide 40: Volkswagen Caminhões e Ônibus – Core KPIs: Sales Revenue, Adj. Operating Result
DEEP DIVE COMPANY ENVIRONMENT VOLKSWAGEN CAMINHÕES E ÔNIBUS – CORE KPIS Financial key perfomance indicators (€ million) 2020 2019 Change 2020 2019 Change 1,235 1,738 -29% -15 43 -58 SALES REVENUE ADJ. OPERATING RESULT 2020 2019 Change -1.2 2.5 -3.7 pp ADJ. OPERATING ROS (in %) 40