Volkswagen Ag · XETR:VOW
Volkswagen — FY2021 Earnings Presentation
22 slides from Volkswagen's earnings presentation, Mar 15, 2022
Slide 1: Analyst and Investor Conference 2022
ANALYST AND INVESTOR CONFERENCE 2022 VOLKSWAGEN GROUP
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: Key Highlights 2021
Key Highlights 2021 SIGNIFICANT PROGRESS Improved earnings quality based on product, mix and pricing in profitability and robustness of our Overhead program ahead of schedule; significant progress in 2021 business model shown despite Volkswagen brand achieved break-even in North- and South Ame
Slide 4: Despite lower Sales, solid Figures due to our robust Business
Despite lower Sales, solid Figures due to our robust Business January to December 2019 vs. 2020 vs. 2021 VEHICLES SALES OPERATING PROFIT 1 SALES REVENUE AND MARGIN [m vehicles] [€ bn] [€ bn] Margin [%] 7.6% 4.8% 8.0% −2.4m −1% +0.7bn 11.0 252.6 250.2 19.3 20.0 9.2 222.9 8.6 10.6 2019 2020 2021 2019
Slide 5: Strong Automotive Net Cash Flow safeguards the Funding of the Transformation
Strong Automotive Net Cash Flow safeguards the Funding of the Transformation January to December 2019 vs. 2020 vs. 2021 'CLEAN' NET REPORTED NET NET LIQUIDITY 1 C A S H F L O W 1, 2 CASH FLOW 1 [€ bn] [€ bn] [€ bn] +2.0bn +5.4bn 15.5 13.5 −2.2bn 26.8 26.7 10.8 21.3 10.0 8.6 6.4 2019 2020 2021 2019 2
Slide 6: Solid Margins at Passenger Cars and Financial Services, Earnings at Commercial Vehicles impacted
Solid Margins at Passenger Cars and Financial Services, Earnings at Commercial Vehicles impacted by extraordinary Effects January to December 2019 vs. 2020 vs. 2021 AUTOMOTIVE DIVISION FINANCIAL SERVICES DIVISION P A S S E N G E R C A R S 1,2 COMMERCIAL VEHICLES FINANCIAL SERVICES EBIT [€ bn] incl.
Slide 7: Operating Result Passenger Cars – EBIT Bridge
Operating Result Passenger Cars (before special items) – EBIT Bridge January to December 2020 vs. 2021 Thereof fair value of commodities and FX hedges: 2.5 Operating result [€ bn] incl. Margin [%] 2.9 −1.9 5.2% 8.0% −4.3 13.8 13.8 9.0 thereof: - Overhead program: 1.0 8.2 8.2 - R&D (incl. cap./depr.)
Slide 8: Commercial Vehicles EBIT
Commercial Vehicles EBIT January to December 2020 vs. 2021 COMMERCIAL VEHICLES/ TRUCKS EBIT 1 [€ m] EBIT1 [€ m] incl. Margin [%] incl. Margin [%] Volume −5.8% −2.1% Product mix −276 −0.4% 0.4% −631 Fixed costs 1,300 2020 2021 Restructuring costs 6.5% 6.5% Shortage of semiconductors • Incl. Restructu
Slide 9: China Joint Ventures – Proportionate Operating Profit
China Joint Ventures – Proportionate Operating Profit DRIVERS [€ bn] Continued strong premium performance, especially FAW-VW 4.4 Sales recovery in Q4 after very weak Q3 impacted by semiconductors 3.6 Investment in SAIC Audi to strengthen local production 3.0 footprint Q4 Q1–Q3 2022E 2019 2020
Slide 10: Volkswagen Group Financial Result and Profit after Tax
Volkswagen Group Financial Result and Profit after Tax Financial Result 1,991 Profit after Tax [€ m] [€ bn] 15.4 1,396 14.0 851 8.8 2019 2020 2021 2019 2020 2021
Slide 11: Dividend Proposal for our Shareholders for Business Year 2021
Dividend Proposal for our Shareholders for Business Year 2021 Earnings per share [€] Dividend per share [€] +56% 29.59 29.65 7.50 7.56 26.60 26.66 4.80 4.86 4.80 4.86 16.60 16.66 2019 2020 2021 2019 2020 2021 Ordinary Share Preferred Share
Slide 12: Automotive Division – Significant increase in Return on Investment (RoI)
Automotive Division – Significant increase in Return on Investment (RoI) 10.4% RoI [%] 1 9.0% Minimum required rate of return on invested capital 6.5% 2020 2021 1 Including proportional inclusion of the Chinese joint ventures (including relevant sales and component companies) and allocation of conso
Slide 13: Volkswagen Group – Outlook for 2022
Volkswagen Group – Outlook for 2022 1 ACTUAL OUTLOOK 20221 Deliveries to customers 5% to 10% up [m vehicles] 9.3 8.9 on the previous year Sales revenue 222.9 250.2 8% to 13% higher [€ bn] than the prior-year figure Operating return 8.0 2 In the range of on sales [%] 4.8 2 7.0% to 8.5% Automotive Cle
Slide 14: What is in our Guidance?
What is in our Guidance? ELEMENTS ALREADY INCLUDED WHAT IS NOT IN GUIDANCE FOR 2022 COVERED BY FOR THE OPERATING PROFIT OUR GUIDANCE Favorable Price and Mix continue to support operating results A resurgence of the COVID-19-Pandemic situation Headwinds from raw material costs incl. product cos
Slide 15: Proof Points of our Strategy – CFO Perspective
Proof Points of our Strategy – CFO Perspective STRATEGIC CFO TARGETS CFO FOCUS AREAS Focus on product transformation towards electric Focused financial steering of the transformation Digitalization: Advancing (allocation of resources to future topics) in software/services Groupwide cost & efficiency
Slide 16: BEV ramp up pushing for Scale Effects
BEV ramp up pushing for Scale Effects Q1–Q4 2021 and Outlook 2022 5.1% 7–8% [BEV share in %] 453,000 vehicles 8.3% 6.2% 4.4% [BEV share in %] 2.5% Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 2022E
Slide 17: Financing the Transformation: Overhead Cost Program ahead of Schedule
Financing the Transformation: Overhead Cost Program ahead of Schedule, significant Progress in 2021 1 DELIVERIES TO CUSTOMERS [in m units] 10.7 10.8 11.0 10.4 Plant program 9.3 8.9 (Productivity & Overhead) Working capital GROUP WIDE OVERHEAD management / cashflow COST PROGRAM orientation ~ −10% (w/
Slide 18: Increase in R&D especially for Software successfully compensated with CAPEX Discipline
Increase in R&D especially for Software successfully compensated with CAPEX Discipline Reducing complexity / variances Focus on synergies Multi brand production in MQB plants Investment in software 18
Slide 19: Increase in R&D especially for Software successfully compensated with CAPEX Discipline
Increase in R&D especially for Software successfully compensated with CAPEX Discipline R&D / CAPEX – ABSOLUTE AND RATIO (AUTOMOTIVE DIVISION) [%, €] ∑ 13.7% Reducing ∑ 13.3% (€ 25.0 bn) ∑ 12.7% complexity / variances (€ 28.3 bn) (€ 26.1 bn) ∑ 12.5% ~ 6.6% ~ 6.1% ~ 5.1% Focus on synergies (€ 14.0 bn)
Slide 20: Sales according to EU Taxonomy already above 10% of total Sales
Sales according to EU Taxonomy already above 10% of total Sales 1 January – December 2021 SALES GROUP REVENUES [%] [€ bn] EU taxonomy – aligned 2 34.4% PHEV/Others 229.0 21.2 EU taxonomy 10.1% ELECTRIFIED 250.2 (91.5%) (8.5%) – aligned 3 65.6% CONVENTIONAL BEV 89.4% Not taxonomy – aligned 1 excludin
Slide 21: Capital Expenditure according to EU Taxonomy – Passenger Cars and Light Commercial Vehicles
Capital Expenditure according to EU Taxonomy – Passenger Cars (PC) and Light Commercial Vehicles (LCV) January – December 2021 EU taxonomy [€ bn] – aligned TAXONOMY – ALIGNED CAPITAL EXPENDITURE FOR BEV [€ bn] 3.8 3.5 39.9 14.2 54.0 (73.8%) (26.2%) PROPERTY, PLANT CAPITALIZED & EQUIPMENT DEVELOPMENT
Slide 22: Overall Ambition: Leading the Transformation with Integrity and Based on our Values
Overall Ambition: Leading the Transformation with Integrity and Based on our Values STRONG BRANDS FINANCIAL STRENGTH INTEGRITY BEV SOFTWARE AI / MOBILITY SERVICES