Traton Se · XETR:8TRA
Traton — Investor Day (September 2018)
24 slides from Traton's investor day presentation, Sep 20, 2018
Slide 1: Creating a Global Champion
CREATING A GLOBAL CHAMPION IAA ANALYST AND INVESTOR PRESENTATION| 20-SEP-2018
Slide 2: Disclaimer
DISCLAIMER The following presentation contains forward-looking statements and information on the business development of TRATON. These statements and information may be spoken or written and can be recognized by terms such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estima
Slide 3: Today's Presenters
TODAY’S PRESENTERS Andreas Renschler Christian Schulz CEO of TRATON and Board Member of Volkswagen AG CFO of TRATON Appointed CEO of Appointed CFO of Volkswagen Truck & Bus in 2015 Volkswagen Truck & Bus in 2018 30 years of experience in 19 years of experience in automotive and truck industry automo
Slide 4: Topics for Today
TOPICS FOR TODAY Where we come from Status Global Champion Way forward Strategy and Alliances 4
Slide 5: Since the last IAA in 2016, we have delivered on our strategic goals
SINCE WE MET AT THE LAST IAA IN 2016, WE HAVE DELIVERED ON OUR STRATEGIC GOALS New legal entity On the way to become Capital Market Ready Collaboration among brands fully on track New corporate identity Return on Sales 6.1% 6.9% +1.9 pp 5.0% Significant Successful creation performance and implementa
Slide 6: Transportation Traffic Tradition
TRANSPORTATION TRAFFIC TRADITION ONLINE TRACTOR ALWAYS-ON TRUCK AUTONOMOUS TRADE TRACTION TONNAGE TRANSFORMATION Better transportation makes a better world 6
Slide 7: TRATON at a Glance – Leading Global Brands and Partnerships
TRATON AT A GLANCE – LEADING GLOBAL BRANDS AND PARTNERSHIPS Fully consolidated Associates Strategic partner 25% + 1 share c. 17% Successful collaboration Path to Global Champion Win-win partnership structure 7
Slide 8: TRATON at a Glance – Snapshot 2017
TRATON AT A GLANCE – SNAPSHOT 2017 TRATON sales volume1 (k): 205 TRATON revenue by brand (€bn): 23.9 TRATON financials 2017 Buses VW Caminhões e Ônibus 19 1.1 (9%) (5%) € 23.9bn Revenues 10.0 12.8 Scania (54%) (42%) MAN € 1.7bn Operating profit 183 (91%) 6.9% Return on Sales Trucks2 Note: Trucks >6t
Slide 9: TRATON at a Glance – Unique Global Truck and Bus Platform
Relates to % of total TRATON sales volume in 2017 (excl. associates and strategic partners) TRATON AT A GLANCE – UNIQUE GLOBAL TRUCK AND BUS PLATFORM WITH FOCUS ON HEAVY DUTY TRUCKS TRATON Associates Strategic partner Home base Europe and Brazil Europe Brazil China North America Japan Trucks 82 813
Slide 10: TRATON at a Glance – Unique Positioning of Brands
TRATON AT A GLANCE – UNIQUE POSITIONING OF BRANDS Creating a global champion Driving the shift towards a Simplifying business by being the Less you don’t want sustainable transport system most reliable business partner more you don’t need Premium customer-focused innovation Reliable business partner
Slide 11: TRATON – Creating a Global Champion
1 GLOBAL CHAMPION 2 GROWTH 3 PROFITABILITY AND SYNERGIES 4 EXECUTION TRATON – CREATING A GLOBAL CHAMPION 1 Our leading brands and alliances provide scale GLOBAL for our unique platform, enabling global expansion CHAMPION and positioning us for best in class profitability 2 GROWTH Customer value focu
Slide 12: Truck Profit Pools Are Spread Globally with Further Long-Term Upside
1 GLOBAL CHAMPION 2 GROWTH 3 PROFITABILITY AND SYNERGIES 4 EXECUTION Share of global profit pool 20171 TRUCK PROFIT POOLS ARE SPREAD GLOBALLY WITH FURTHER LONG-TERM UPSIDE POTENTIAL In €bn Attractive market Europe/ 3,8 with positive Attractive market Russia3 momentum from NAFTA2 3,8 with high margin
Slide 13: TRATON with #1 Truck Market Positions in Europe and LatAm
1 GLOBAL CHAMPION 2 GROWTH 3 PROFITABILITY AND SYNERGIES 4 EXECUTION : TRATON truck market share in 2017 (>15t) Core markets of TRATON brands TRATON WITH #1 TRUCK MARKET POSITIONS IN EUROPE AND LATAM Europe1 32% Market leader with 32% market share Market leader in Germany with 37% market share LatAm
Slide 14: Expanding Globally Through Alliance Partners
1 GLOBAL CHAMPION 2 GROWTH 3 PROFITABILITY AND SYNERGIES 4 EXECUTION Truck market share in 2017 (>15t) Core markets of TRATON brands Core markets of alliances EXPANDING GLOBALLY THROUGH ALLIANCE PARTNERS TO ADDRESS ALL MAJOR PROFIT POOLS North America 12%1 • Signing of strategic alliance in 2016 • T
Slide 15: Leading Alliance of Heavy Duty Brands as Basis for Expansion
1 GLOBAL CHAMPION 2 GROWTH 3 PROFITABILITY AND SYNERGIES 4 EXECUTION LEADING ALLIANCE OF HEAVY DUTY BRANDS AS BASIS FOR EXPANSION AND SYNERGY REALIZATION Potential heavy duty platform reach of top OEMs incl. associates and strategic partners Leverage technologies and expertise through global brands
Slide 16: TRATON with Multiple Layers of Growth
1 GLOBAL CHAMPION 2 GROWTH 3 PROFITABILITY AND SYNERGIES 4 EXECUTION TRATON WITH MULTIPLE LAYERS OF GROWTH Drive innovation Customer focused innovative solutions Grow share Leading technology/services targeted at optimizing customer value Go global Significant expansion in accessible profit pools th
Slide 17: Sustain Core and Go Global – Strong Core Markets
1 GLOBAL CHAMPION 2 GROWTH 3 PROFITABILITY AND SYNERGIES 4 EXECUTION Addressable market volume Additional market volume SUSTAIN CORE AND GO GLOBAL – STRONG CORE MARKETS AND INCREASING EXPOSURE TO GLOBAL MARKETS FORM THE BASIS FOR FUTURE TOPLINE GROWTH Sustain core Go global Market volume truck sales
Slide 18: Drive Innovation – Answer to Disruptive Developments
1 GLOBAL CHAMPION 2 GROWTH 3 PROFITABILITY AND SYNERGIES 4 EXECUTION DRIVE INNOVATION – TRATON HAS AN ANSWER TO ALL DISRUPTIVE DEVELOPMENTS AND AN ACTIVE ROLE IN SHAPING THE FUTURE Autonomous 450k Connected vehicles on Introduction of CitE pilot in mining and the road globally across harbor logistic
Slide 19: Strong Track Record of Performance Improvement Across Brands
1 GLOBAL CHAMPION 2 GROWTH 3 PROFITABILITY AND SYNERGIES 4 EXECUTION TRATON WITH STRONG TRACK RECORD OF PERFORMANCE IMPROVEMENT ACROSS BRANDS AND FURTHER POTENTIAL TO BE REALIZED Brand performance, Return on Sales Tangible synergies TRATON: Attractive margin upside 2015 9.8% 1 Joint powertrain 2017
Slide 20: Stand-Alone Upside: Brand Performance Programs
1 GLOBAL CHAMPION 2 GROWTH 3 PROFITABILITY AND SYNERGIES 4 EXECUTION STAND-ALONE UPSIDE: RECENT BRAND PERFORMANCE PROGRAMS ARE WELL UNDERWAY OR HAVE BEEN SUCCESSFULLY COMPLETED FOCUS & AMBITION PACE2017 TURNAROUND PLAN Improvement and sustaining of operational Completion of the program has created a
Slide 21: Significant Profitability Upside from Improvement and Synergies
1 GLOBAL CHAMPION 2 GROWTH 3 PROFITABILITY AND SYNERGIES 4 EXECUTION SIGNIFICANT PROFITABILITY UPSIDE DRIVEN BY PERFORMANCE IMPROVEMENT PROGRAMS AND ONGOING SYNERGY REALIZATION Profitability Target Return on Sales (Operating Profit)1 9.0% Synergy realization 2017 6.9% Performance improvement 2015 5.
Slide 22: Tangible Synergies: Joint Powertrain Platform and Components
1 GLOBAL CHAMPION 2 GROWTH 3 PROFITABILITY AND SYNERGIES 4 EXECUTION TANGIBLE SYNERGIES: KEY PROFITABILITY DRIVER – JOINT POWERTRAIN PLATFORM AND COMPONENTS AS ONE KEY LEVER TO REALIZE SYNERGIES Legend CBE – E-drives / Common after- GW Key technology new 13l engine batteries treatment transmission c
Slide 23: We Continue to Deliver on Our Strategy
1 GLOBAL CHAMPION 2 GROWTH 3 PROFITABILITY AND SYNERGIES 4 EXECUTION WE CONTINUE TO DELIVER ON OUR STRATEGY 2015 Today Operating Profit (€m) 1.651 1.301 1.023 2015 16 2017 Inception of VW Collaboration among Successful creation Significant New corporate Significant progress Hino: Agreed to Truck & B
Slide 24: TRATON Executive Management Team
1 GLOBAL CHAMPION 2 GROWTH 3 PROFITABILITY AND SYNERGIES 4 EXECUTION TRATON EXECUTIVE MANAGEMENT TEAM WITH STRONG TRACK RECORD AND LONGSTANDING INDUSTRY EXPERIENCE Andreas Christian Henrik Joachim Drees Renschler Schulz Henriksson CEO MAN CEO CFO CEO Scania Antonio Anders Nielsen Carsten Intra Dirk