Traton Se · XETR:8TRA
Traton — H1 2020 Earnings Presentation
42 slides from Traton's earnings presentation, Jul 31, 2020
Slide 1: IR Conference Call – Half-Year Financial Report 2020
Munich, 31 July 2020 IR CONFERENCE CALL – HALF-YEAR FINANCIAL REPORT 2020 MATTHIAS GRÜNDLER, CEO CHRISTIAN SCHULZ, CFO ISIN: DE000TRAT0N7 WKN: TRAT0N Bloomberg Ticker: 8TRA GY / 8TRA SS http://ir.traton.com
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 TRATON GROUP in a
Slide 3: Contents
CONTENTS Current Situation TRATON GROUP Highlights Segment Industrial Business Segment Financial Services Status Update Appendix July 31, 2020 / Investor Relations / Half-Year Financial Report 2020 3
Slide 4: Current Situation – Business Climate
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX CURRENT SITUATION – BUSINESS CLIMATE An unprecedented situation because of the Global economic outlook for 20201 significantly COVID-19 pandemic impact deteriorated; contraction is expected to be much wo
Slide 5: Current Situation – April Responsible for Most of the Decline in Q2 2020
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX CURRENT SITUATION – APRIL RESPONSIBLE FOR MOST OF THE DECLINE IN Q2 2020 Industrial Business Q2 2020 Financial Services Q2 2020 Key performance indicators largely derailed by Key performance indicators l
Slide 6: Current Situation – Positive Direction Established Since May
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX CURRENT SITUATION – POSITIVE DIRECTION ESTABLISHED SINCE MAY UNIT SALES (`000 units) UNIT SALES (Y-o-Y change) Book-to-bill1 (ratio in units) 1.05 1.05 1.04 66.7 66.2 16% 17% 13% 63.1 10% 12% 58.9 57.2 7
Slide 7: Current Situation – Vehicle Utilization Near Pre-Crisis Levels
returned to February 2020 levels end of June CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX CURRENT SITUATION – VEHICLE UTILIZATION NEAR PRE-CRISIS LEVELS CHINA EUROPE BRAZIL After the trough beginning of April, After the trough beginning of April, L
Slide 8: Current Situation – Act Here and Now, Long-Term Goals (1)
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX CURRENT SITUATION – IT‘S MORE IMPORTANT THAN EVER BEFORE TO ACT HERE AND NOW WHILE NOT LOSING SIGHT OF OUR STRATEGIC LONG TERM GOALS (1) Act today while planning for tomorrow Investing focused into the f
Slide 9: Current Situation – Act Here and Now, Long-Term Goals (2)
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX CURRENT SITUATION – IT‘S MORE IMPORTANT THAN EVER BEFORE TO ACT HERE AND NOW WHILE NOT LOSING SIGHT OF OUR STRATEGIC LONG TERM GOALS (2) Act today... …while planning for tomorrow • Temporary production s
Slide 10: Current Situation – Financial Resilience
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX CURRENT SITUATION – FINANCIAL RESILIENCE SOUND BALANCE SHEET POSITION SOUND LIQUIDITY POSITION (Industrial Business; as of June 30, 2020) (Industrial Business; as of June 30, 2020) • Equity ratio: solidl
Slide 11: Current Situation – Debut Syndicated Revolving Credit Facility (RCF)
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX CURRENT SITUATION – DEBUT SYNDICATED REVOLVING CREDIT FACILITY (RCF) €3.75 bn RCF successfully signed by TRATON SE on 29 July 2020 Ample frame amount (€3.75 bn) The debut syndicated RCF marks an import
Slide 12: TRATON Group Highlights
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX TRATON GROUP HIGHLIGHTS • Impacts of the COVID-19 pandemic visible • Incoming orders decreased by -27% to 87,431 units H1 • Unit sales declined by -37% to 77,738 units 2020 • Sales revenue decreased by -
Slide 13: Group – Segment Highlights Q2 / H1 2020
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – SEGMENT HIGHLIGHTS Q2 / H1 2020 Industrial Business (IB) Financial Services (FS) Q2 20 Y-o-Y H1 20 Y-o-Y Q2 20 Y-o-Y H1 20 Y-o-Y 2 Incoming orders (units) 33,270 -41% 87,431 -27% Net portfolio (€
Slide 14: Group – Sales Revenue and Return on Sales
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – SALES REVENUE AND RETURN ON SALES SALES REVENUE (€mn) Return on sales (%) Growth Y-o-Y (%) -38% -11% -26% 7,128 7,075 6,413 6,286 5,679 4,394 7.6 8.2 6.5 5.7 2.8 10,073 5,679 -8.7 2.8 -2.2 Q1 19
Slide 15: Group – Unit Sales Development
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – UNIT SALES DEVELOPMENT UNIT SALES (units) Growth Y-o-Y (%) -52% 66,173 -20% -37% 63,128 57,163 6,014 55,755 5,721 Buses 4,210 5,551 45,990 4,030 31,748 1 60,159 57,407 3,219 Trucks 52,953 50,204
Slide 16: Group – Unit Sales Growth in Core Markets
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – UNIT SALES GROWTH IN CORE MARKETS Truck unit sales in core markets1; 2020 (units) Growth H1 (Y-o-Y) Market growth3 Q1 20,783 2 H1 33,617 -49% -44% 9M FY Q1 6,117 H1 9,617 -49% -41% 9M FY Q1 10,86
Slide 17: Industrial Business – Incoming Orders
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX INDUSTRIAL BUSINESS – INCOMING ORDERS INCOMING ORDERS (units) Book-to-bill1 (ratio in units) Growth Y-o-Y (%) 1.13 0.85 0.88 0.91 1.18 1.05 -16% -27% -41% 64,357 56,134 57,532 54,161 49,217 33,270 87,431
Slide 18: Industrial Business – Unit Sales
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX INDUSTRIAL BUSINESS – UNIT SALES UNIT SALES (units) Growth Y-o-Y (%) -52% -20% -37% 66,173 63,128 57,163 55,755 45,990 31,748 77,738 45,990 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 20 H1 20 9M
Slide 19: Industrial Business – Sales Revenue and Return on Sales
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX INDUSTRIAL BUSINESS – SALES REVENUE AND RETURN ON SALES SALES REVENUE (€mn) Return on sales (%) Growth Y-o-Y (%) -39% -12% -26% 7,015 6,953 6,305 6,171 5,564 7.9 4,290 7.3 6.0 5.2 2.4 9,854 5,564 -9.3 2.
Slide 20: Industrial Business – Sales Revenue by Brand and Return on Sales
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX INDUSTRIAL BUSINESS – SALES REVENUE BY BRAND AND RETURN ON SALES SALES REVENUES Q2 2020 (€mn) SALES REVENUES H1 2020 (€mn) Growth rate (%) Return on sales (%) Growth rate (%) Return on sales (%) -1.5% -1
Slide 21: Industrial Business – Indebtedness
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX INDUSTRIAL BUSINESS – INDEBTEDNESS NET FINANCIAL INDEBTEDNESS [DEBT] / NET LIQUIDITY [CASH] BRIDGE (€mn) Net debt as of June 30, 2020 amounted to €376 mn, mainly due to the net cash outflow of €1.4 bn re
Slide 22: Industrial Business – Leverage Ratios
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX INDUSTRIAL BUSINESS – LEVERAGE RATIOS GEARING RATIO1 (in %) NET DEBT/ADJUSTED EBITDA2 (x) Net debt as of June 30, 2020 amounted to €376 mn, mainly due to the net cash outflow of €1.4 bn resulting primari
Slide 23: Financial Services – Sales Revenue and Return on Sales
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX FINANCIAL SERVICES – SALES REVENUE AND RETURN ON SALES SALES REVENUE (€mn) Return on sales (%) Growth Y-o-Y (%) +6% -2% -9% 216 215 215 216 203 197 413 17.1 17.6 16.2 16.2 12.0 216 9.5 12.0 10.8 Q1 19 Q2
Slide 24: Financial Services – Net Portfolio and Penetration Rate
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX FINANCIAL SERVICES – NET PORTFOLIO AND PENETRATION RATE NET PORTFOLIO1 (€bn) PENETRATION RATE2 (%) COMMENTARY Growth Y-o-Y (%) Growth Y-o-Y (%) • By the end of H1 2020 the +14% +17% +18% +14% +3% -2% -37
Slide 25: Status Update – Economic Recovery from COVID-19 Crisis Still Highly Uncertain
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX STATUS UPDATE – ECONOMIC RECOVERY FROM COVID-19 CRISIS LIKELY TO BE DETERMINED BY A COMBINATION OF FACTORS AND STILL HIGHLY UNCERTAIN Major drivers expected to influence recovery € Supply disruption Dema
Slide 26: Status Update – Future Development
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX STATUS UPDATE – FUTURE DEVELOPMENT The impact of the COVID-19 pandemic on customer demand and supply chains still cannot be estimated with any degree of reliability. Business outlook for FY 2020 currentl
Slide 27: Status Update – Truck Market
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX STATUS UPDATE – TRUCK MARKET Economic effects of COVID-19 pandemic will impact the market development in 2020; a reliable forecast is currently not possible TRUCK MARKET DEVELOPMENT (˃ 6t, k units) EU27+
Slide 28: Status Update – Recent Track Record and Over-the-Cycle Target
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX STATUS UPDATE – RECENT TRACK RECORD Economic effects of COVID-19 pandemic will impact the market and business development in 2020; a reliable forecast is currently not possible AND OVER-THE-CYCLE TARGET
Slide 29: Appendix
Appendix July 31, 2020 / Investor Relations / Half-Year Financial Report 2020 29
Slide 30: Contacts Investor Relations
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX CONTACTS INVESTOR RELATIONS Rolf Woller Philipp Lotz Head of Treasury & Investor Relations Analysts and Investors, Rating, Debt Capital Markets +49 89 360 98 335 +49 89 360 98 283 rolf.woller@traton.com
Slide 31: Financial Calendar
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX FINANCIAL CALENDAR Event / Publication of May 4, 2020 Interim Statement 3M 2020 July 31, 2020 Half-Year Financial Report 2020 September 23, 2020 Virtual Annual General Meeting 2020 November 10, 2020 Inte
Slide 32: TRATON Share
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX TRATON SHARE SHARE DATA ISIN (International Securities Identification Number) DE000TRAT0N7 WKN (German Security Identification number) TRAT0N Common code 196390065 Frankfurt Stock Exchange (Frankfurter W
Slide 33: Group – Operating Profit and Return on Sales
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – OPERATING PROFIT AND RETURN ON SALES OPERATING PROFIT (€mn) Return on sales (%) Growth Y-o-Y (€mn) €-328 €-1,295 €-967 mn 585 490 407 401 7.6 8.2 161 6.5 161 5.7 2.8 2.8 -8.7 -2.2 -382 -220 Q1 19
Slide 34: Industrial Business – Regional Truck Unit Sales Development
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX INDUSTRIAL BUSINESS – REGIONAL TRUCK UNIT SALES DEVELOPMENT1 EU27+32 (units) Germany (units) South America (units) Brazil (units) -63% 34,482 31,948 28,360 25,855 20,783 -43% -45% 13,750 12,834 11,532 12
Slide 35: Scania Vehicles & Services – Key Figures per Quarter
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX SCANIA VEHICLES & SERVICES – KEY FIGURES PER QUARTER Incoming orders (k units) Unit sales (k units) Book-to-bill1 (ratio in units) +32 bpt -56% -38% 1.13 1.14 1.11 26.7 27.9 23.6 23.2 24.7 0.90 22.1 22.2
Slide 36: MAN Truck & Bus – Key Figures per Quarter
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX MAN TRUCK & BUS – KEY FIGURES PER QUARTER Incoming orders (k units) Unit sales (k units) Book-to-bill1 (ratio in units) -54% +18 bpt -44% 29.9 29.1 28.4 1.33 25.0 1.20 24.9 24.1 25.0 1.04 20.8 22.5 0.93
Slide 37: Volkswagen Caminhões e Ônibus – Key Figures per Quarter
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX VOLKSWAGEN CAMINHÕES E ÔNIBUS – KEY FIGURES PER QUARTER Incoming orders (k units) Unit sales (k units) Book-to-bill1 (ratio in units) -46% -5 bpt -43% 11.1 10.7 11.2 0.99 0.99 1.03 0.97 10.4 9.8 10.5 10.
Slide 38: Group – Condensed Income Statement
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – CONDENSED INCOME STATEMENT July 31, 2020 / Investor Relations / Half-Year Financial Report 2020 38
Slide 39: Group – Condensed Balance Sheet
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – CONDENSED BALANCE SHEET July 31, 2020 / Investor Relations / Half-Year Financial Report 2020 39
Slide 40: Group – Condensed Statement of Cash Flows
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – CONDENSED STATEMENT OF CASH FLOWS July 31, 2020 / Investor Relations / Half-Year Financial Report 2020 40
Slide 41: Group – Net Liquidity
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – NET LIQUIDITY July 31, 2020 / Investor Relations / Half-Year Financial Report 2020 41
Slide 42: Group – Adjustments
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – ADJUSTMENTS Adjustments (€mn) 2016 2017 2018 2019 H1 2020 OPERATING PROFIT 727 1,512 1,513 1,884 -220 Expense for antitrust proceedings (Scania) 403 Release of restructuring provisions at MAN Tru