Traton Se · XETR:8TRA
Traton — H1 2019 Earnings Presentation
36 slides from Traton's earnings presentation, Jul 29, 2019
Slide 1: H1 2019 Results
Munich, 29 July 2019 H1 2019 RESULTS 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 TRATON GROUP Highlights Segment Industrial Business (MAN T&B, Scania V&S and VWCO) Segment Financial Services Outlook Appendix July 29, 2019 / Investor Relations / H1 2019 Results 3
Slide 4: TRATON Group Highlights H1 2019
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX TRATON GROUP HIGHLIGHTS H1 2019 • Deliveries up by +10.0% to a first half record of 123,336 units • Sales revenue increased by +10.4%1 to €13,541 mn; all brands contributed • Operating profit improved significantly by +24.5% to
Slide 5: Group – Segment Highlights Q2 / H1 2019
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – SEGMENT HIGHLIGHTS Q2 / H1 2019 Industrial Business (IB) Financial Services (FS) Q2 19 Y-o-Y H1 19 Y-o-Y Q2 19 Y-o-Y H1 19 Y-o-Y Order intake (units) 56,134 -6.7% 120,491 -5.5% Net portfolio2 (€bn) 9.5 +9.0% Deliveries
Slide 6: Group – Sales Revenue and Return on Sales
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – SALES REVENUE AND RETURN ON SALES SALES REVENUE (€mn) Return on sales1 (%) Growth Y-o-Y (%) +8.7% +6.0% +7.4% 7,128 6,5582 6,413 6,0512 8.2 7.3 7.6 13,541 6.4 6,413 7.6 7.9 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 1
Slide 7: Group – Deliveries Development
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – DELIVERIES DEVELOPMENT DELIVERIES (units) +12.3% Growth Y-o-Y (%) 66,173 +7.4% +10.0% 58,913 57,163 6,014 53,221 6,139 4,210 Buses 5,112 123,336 60,159 10,224 Trucks 1 48,109 52,774 52,953 57,163 Buses 4,210 113,112 1 T
Slide 8: Group – Strong Sales Growth in Core Markets
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – STRONG SALES GROWTH IN CORE MARKETS Truck Deliveries in core markets1; 2019 (units) Growth H1 (Y-o-Y) Market growth3 Q1 31,948 2 H1 66,430 +16.6% +15.3% 9M FY Q1 8,938 H1 18,822 +18.8% +19.3% 9M FY Q1 10,398 H1 23,068 +
Slide 9: Industrial Business – Order Intake
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX INDUSTRIAL BUSINESS – ORDER INTAKE ORDER INTAKE (units) Book-to-bill1 (ratio in units) Growth Y-o-Y (%) 1.27 1.02 1.13 0.85 -4.5% -5.5% -6.7% 67,359 64,357 60,184 56,134 120,491 64,357 1.13 0.98 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2
Slide 10: Industrial Business – Deliveries
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX INDUSTRIAL BUSINESS – DELIVERIES DELIVERIES (units) Growth Y-o-Y (%) +12.3% +7.4% +10.0% 66,173 58,913 57,163 53,221 123,336 57,163 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 19 H1 19 9M 19 FY 19 • Strong growth in core
Slide 11: Industrial Business – Sales Revenue and Return on Sales
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX INDUSTRIAL BUSINESS – SALES REVENUE AND RETURN ON SALES SALES REVENUE (€mn) Return on sales1 (%) Growth Y-o-Y (%) +11.3% +9.4% +10.4% 7,015 6,303 6,305 5,765 7.9 6.9 7.3 13,320 6.1 6,305 7.3 7.6 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2
Slide 12: Industrial Business – Sales Revenue by Brand and Return on Sales
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX INDUSTRIAL BUSINESS – SALES REVENUE BY BRAND AND RETURN ON SALES SALES REVENUES Q2 2019 (€mn) SALES REVENUES H1 2019 (€mn) Growth rate (%) Return on sales1 (%) Growth rate (%) Return on sales1 (%) 4.5% 12.2% 2.2% 7.9% 4.6% 11.6
Slide 13: Industrial Business – Indebtedness
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX INDUSTRIAL BUSINESS – INDEBTEDNESS NET FINANCIAL INDEBTEDNESS / NET LIQUIDITY BRIDGE (€mn) Net Debt 578 (Net Cash) (227) (764) 1,072 (1,973) (689) 625 Net financial Capital Acquisitions Change in working IFRS 16 Other Net finan
Slide 14: MAN Truck & Bus – Highlights H1 2019
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX MAN TRUCK & BUS – HIGHLIGHTS H1 2019 • Total vehicle sales up by 10% during first six month primarily attributable to the growth in Germany, Brazil and the UK • Order intake down by 8% in H1 2019 mainly due to Germany, Poland,
Slide 15: MAN Truck & Bus – Key Figures per Quarter
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX MAN TRUCK & BUS – KEY FIGURES PER QUARTER Order intake (k units) Deliveries (k units) Book-to-bill1 (ratio in units) +7.7% -15.0% 30.2 29.9 1.37 -23bpt 29.4 29.1 25.0 27.0 25.0 1.20 1.09 22.1 0.86 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19
Slide 16: Scania Vehicles & Services – Highlights H1 2019
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX SCANIA VEHICLES & SERVICES – HIGHLIGHTS H1 2019 • Unit sales of trucks up by 14%; the growth was primarily driven by strong growth in EU28+2 and Brazil; however truck sales declined in Russia and were substantially lower in the
Slide 17: Scania Vehicles & Services – Key Figures per Quarter
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX SCANIA VEHICLES & SERVICES – KEY FIGURES PER QUARTER Order intake (k units) Deliveries (k units) Book-to-bill1 (ratio in units) +15.8% -2.9% -15bpt 29.8 1.31 26.7 27.9 1.13 22.7 22.1 22.6 24.1 23.6 0.94 0.79 Q1 18 Q2 18 Q3 18 Q
Slide 18: Volkswagen Caminhões e Ônibus – Highlights H1 2019
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX VOLKSWAGEN CAMINHÕES E ÔNIBUS – HIGHLIGHTS H1 2019 • Brazilian truck market continued to recover in tandem with the economic upturn; therefore unit sales increased and are up by 15% in H1 2019. Export sales declined on sluggish
Slide 19: Volkswagen Caminhões e Ônibus – Key Figures per Quarter
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX VOLKSWAGEN CAMINHÕES E ÔNIBUS – KEY FIGURES PER QUARTER Order intake (k units) Deliveries (k units) Book-to-bill1 (ratio in units) +18.2% +23.2% -4bpt 10.4 9.8 10.5 1.03 0.99 8.8 8.9 8.8 8.6 0.91 0.91 8.0 Q1 18 Q2 18 Q3 18 Q4 1
Slide 20: Financial Services – Sales Revenue and Return on Sales
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX FINANCIAL SERVICES – SALES REVENUE AND RETURN ON SALES SALES REVENUE (€mn) Return on sales1 (%) Growth Y-o-Y (%) +13.3% +10.3% +7.6% 216 201 203 179 16.5 17.5 17.1 16.2 419 203 16.2 16.6 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 1
Slide 21: Financial Services – Net Portfolio and Penetration Rate
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK 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 2019 the +14.4% +17.4% -37bpt -7bpt customer finance portfolio a
Slide 22: Outlook – Truck Market
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX OUTLOOK – TRUCK MARKET TRUCK MARKET DEVELOPMENT (˃ 6t, k units) EU 28+21 SOUTH AMERICA 372 126 2009 2011 2013 2015 2017 2019E 2009 2011 2013 2015 2017 2019E GERMANY BRAZIL 84 72 2009 2011 2013 2015 2017 2019E 2009 2011 2013 201
Slide 23: Outlook Group – Track Record, Outlook 2019 and Over-the-Cycle Target
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX OUTLOOK GROUP – RECENT TRACK RECORD, OUTLOOK 2019 AND OVER-THE-CYCLE TARGET Over-the-cycle RoS FY 2018 H1 2019 2019 Outlook target Slight increase Deliveries 233.0k 123.3 compared with (Units; Growth in %) 13.7% 10.0% previous
Slide 24: Appendix
Appendix July 29, 2019 / Investor Relations / H1 2019 Results 24
Slide 25: Contacts Investor Relations
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX CONTACTS INVESTOR RELATIONS Rolf Woller Helga Würtele Thomas Paschen + 49 89 360 98 335 + 49 89 360 98 334 + 49 89 360 98 474 rolf.woller@traton.com helga.wuertele@traton.com thomas.paschen@traton.com TRATON SE Dachauer Str. 64
Slide 26: Financial Calendar
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX FINANCIAL CALENDAR DATE EVENT / PUBLICATION OF May 7, 2019 Q1 2019 July 29, 2019 Half-year 2019 November 4, 2019 9-month 2019 July 29, 2019 / Investor Relations / H1 2019 Results 26
Slide 27: Share Data
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX SHARE DATA SHARE DATA ISIN (International Securities Identification Number) DE000TRAT0N7 WKN (German Security Identification number) TRAT0N Common code 196390065 Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) Stock exch
Slide 28: Group – Regional Truck Deliveries Development
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – REGIONAL TRUCK DELIVERIES DEVELOPMENT1 EU 28+22 (units) Germany (units) South America (units) Brazil (units) +16.0% 34,482 31,948 29,728 27,264 +30.1% +56.3% +12.8% 12,670 11,506 9,884 10,398 8,763 8,938 9,487 9,736 9,2
Slide 29: Group – Operating Profit and Return on Sales
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – OPERATING PROFIT AND RETURN ON SALES OPERATING PROFIT (€mn) Return on sales1 (%) Growth Y-o-Y (%) +26.8% +24.5% +22.7% 585 477 490 386 8.2 7.3 7.6 1,075 6.4 490 7.6 7.9 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1
Slide 30: MAN Truck & Bus – Key Figures Cumulative
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX MAN TRUCK & BUS – KEY FIGURES CUMULATIVE Order intake (k units) Deliveries (k units) Book-to-bill1 (ratio in units) Growth Y-o-Y (%) Growth Y-o-Y (%) Growth Y-o-Y (%) -1.0% -8.0% +13.2% +10.2% -17bpt -20bpt 1.20 1.02 54.9 54.0
Slide 31: Scania Vehicles & Services – Key Figures Cumulative
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX SCANIA VEHICLES & SERVICES – KEY FIGURES CUMULATIVE Order intake (k units) Deliveries (k units) Book-to-bill1 (ratio in units) Growth Y-o-Y (%) Growth Y-o-Y (%) Growth Y-o-Y (%) -10.3% -7.1% +4.1% +10.1% -18bpt -18bpt 1.13 0.95
Slide 32: Volkswagen Caminhões e Ônibus – Key Figures Cumulative
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX VOLKSWAGEN CAMINHÕES E ÔNIBUS – KEY FIGURES CUMULATIVE Order intake (k units) Deliveries (k units) Book-to-bill1 (ratio in units) Growth Y-o-Y (%) Growth Y-o-Y (%) Growth Y-o-Y (%) +11.8% +15.1% +12.1% +17.6% 0bpt -2bpt 0.91 0.
Slide 33: Group – Consolidated Income Statement (IFRS)
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – CONSOLIDATED INCOME STATEMENT (IFRS) in EUR million H1 2019 H1 2018 Sales revenue 13,541 12,609 Cost of sales -10,762 -10,094 Gross profit 2,778 2,515 Distribution expenses -1,214 -1,165 Administrative expenses -502 -51
Slide 34: Group – Consolidated Balance Sheet (IFRS)
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – CONSOLIDATED BALANCE SHEET: ASSETS / EQUITY AND LIABILITIES (IFRS) in EUR million 30.06.2019 31.12.2018 in EUR million 30.06.2019 31.12.2018 Equity and Liabilities Equity Assets Subscribed capital 500 10 Noncurrent asse
Slide 35: Group – Consolidated Statement of Cash-Flows (IFRS)
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – CONSOLIDATED STATEMENT OF CASH-FLOWS (IFRS) in EUR million H1 2019 H1 2018 in EUR million H1 2019 H1 2018 Cash and cash equivalents at beginning of period 2,997 4,593 Change in investments in marketable securities -1,38
Slide 36: Group – Adjustments
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – ADJUSTMENTS Adjustments (in € mn - costs) 2016 2017 2018 1H 2019 Expense for antitrust proceedings (Scania) 403 Release of restructuring provisions at MAN Truck & Bus -50 Expenses in relation to India market exit at MAN