Traton Se · XETR:8TRA
Traton — 9M 2019 Earnings Presentation
29 slides from Traton's earnings presentation, Nov 4, 2019
Slide 1: TRATON Group – Press Conference Call 9M
TRATON GROUP – PRESS CONFERENCE CALL 9M ANDREAS RENSCHLER, CEO CHRISTIAN SCHULZ, CFO NOVEMBER 04, 2019
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: Press Conference Call 9M 2019 – Your Presenters Today
PRESS CONFERENCE CALL 9M 2019 – YOUR PRESENTERS TODAY Andreas Christian Julia Renschler Schulz Kroeber-Riel Chief Executive Officer Chief Financial Officer Head of Group Communications & Governmental Relations 3
Slide 4: Agenda
AGENDA 01. TRATON’s strategic framework 02. Company milestones 03. TRATON’s environment 04. Core KPIs 9M 2019 05. Q&A 4
Slide 5: Clearly Defined Strategic Goals
CLEARLY DEFINED STRATEGIC GOALS Creating a GLOBAL CHAMPION IN THE TRANSPORTATION INDUSTRY Leader in PROFITABILITY GLOBAL PRESENCE INNOVATION 5
Slide 6: Way to Global Champion Based on Four Pillars
WAY TO GLOBAL CHAMPION BASED ON FOUR PILLARS Creating a Global Champion Leader in Profitability | Global Presence | Innovation Brand Cooperation Global Customer Focused Performance & Synergies Expansion Innovation Increase performance Increase cooperation Leverage scale through Transforming of brand
Slide 7: Agenda
AGENDA 01. TRATON’s strategic frame 02. Company milestones 03. TRATON’s environment 04. Core KPIs 9M 2019 05. Q&A 7
Slide 8: TRATON Group Has Continuously Delivered on Its Strategic Goals Since 2015
TRATON GROUP HAS CONTINUOUSLY DELIVERED ON ITS 6 STRATEGIC GOALS SINCE STARTING IN 2015 TRATON Innovation Day 2019 TRATON WANTS TO BECOME 5 LEADER IN E-MOBILITY Significant PERFORMANCE Successful creation and IMPROVEMENT OF THE GROUP COLLABORATION implementation of strategic 4 among Volkswagen T&B A
Slide 9: Agenda
AGENDA 01. TRATON’s strategic frame 02. Company milestones 03. TRATON’s environment 04. Core KPIs 9M 2019 05. Q&A 9
Slide 10: Overall Challenging Political and Macroeconomic Environment
OVERALL CHALLENGING POLITICAL AND MACROECONOMIC ENVIRONMENT Political environment challenging ▪ Potential hard Brexit and threatening trade war between USA and China ▪ Numerous others crises and conflicts (e.g. Iran, Venezuela, Turkey) Global economic situation shows downturn trend ▪ General GDP for
Slide 11: Still Strong Sales for TRATON in Core Markets Despite Challenging Environment
STILL STRONG SALES FOR TRATON IN CORE MARKETS DESPITE THE CHALLENGING ENVIRONMENT AND DOWNTURN TREND IN THE INDUSTRY Truck Deliveries in core markets1; 2019 (units) Growth 9M (Y-o-Y) Market growth3 2 Q1 31,948 H1 66,430 +11.1% +5.2% 9M 92,285 FY Q1 8,938 H1 18,822 +13.6% +8.2% 9M 26,051 FY Q1 10,398
Slide 12: Agenda
AGENDA 01. TRATON’s strategic frame 02. Company milestones 03. TRATON’s environment 04. Core KPIs 9M 2019 05. Q&A 12
Slide 13: Our Performance Along Our Strategic Framework
OUR PERFORMANCE ALONG OUR STRATEGIC FRAMEWORK Creating a Global Champion Leader in Profitability | Global Presence | Innovation Brand Cooperation Global Customer Focused Performance & Synergies Expansion Innovation Increase performance Increase cooperation Leverage scale through Transforming of bran
Slide 14: Snapshot TRATON Group Core KPIs 9M 19
Creating a Global Champion Customer Brand Cooperation Global Focused Performance & Synergies Expansion Innovation SNAPSHOT TRATON GROUP CORE KPIS 9M 19 9M 19 9M 18 Change in % Trucks and buses (units) Order intake 169,708 180,468 -6% Book to bill1 (ratio in units) 0.95 1.09 -14 bpt Unit sales 179,09
Slide 15: Deepdive Core KPIs – Industrial Business and Financial Services
Creating a Global Champion Customer Brand Cooperation Global Focused Performance & Synergies Expansion Innovation DEEPDIVE CORE KPIS – TRATON‘S TWO SEGMENTS INDUSTRIAL BUSINESS AND FINANCIAL SERVICES 9M 19 9M 18 Change in % Industrial Business (€ million) Sales revenue 19,491 17,839 9% Operating pro
Slide 16: MAN Truck & Bus – Core KPIs 9M 2019
Creating a Global Champion Customer Brand Cooperation Global Focused Performance & Synergies Expansion Innovation MAN TRUCK & BUS – CORE KPIS 9M 2019 9M 19 9M 18 Change in % Trucks and buses (units) Order intake 75,712 83,686 -10% Unit sales 76,510 72,041 6% of which trucks1 71,647 67,401 6% of whic
Slide 17: Scania Vehicles & Services – Core KPIs 9M 2019
Creating a Global Champion Customer Brand Cooperation Global Focused Performance & Synergies Expansion Innovation SCANIA VEHICLES & SERVICES – CORE KPIS 9M 2019 9M 19 9M 18 Change in % Trucks and buses (units) Order intake 66,581 72,489 -8% Unit sales 74,720 68,639 9% of which trucks 68,996 62,133 1
Slide 18: Volkswagen Caminhões e Ônibus – Core KPIs 9M 2019
Creating a Global Champion Customer Brand Cooperation Global Focused Performance & Synergies Expansion Innovation VOLKSWAGEN CAMINHÕES E ÔNIBUS – CORE KPIS 9M 2019 9M 19 9M 18 Change in % Trucks and buses (units) Order intake 30,453 26,469 15% Unit sales 31,551 27,358 15% of which trucks 26,177 21,8
Slide 19: Cooperation Is Key – RIO Digitizes Volkswagen Group Logistics
Creating a Global Champion Customer Brand Cooperation Global Focused Performance & Synergies Expansion Innovation COOPERATION IS KEY – RIO DIGITIZES VOLKSWAGEN GROUP LOGISTICS Collaboration plan announced October 2, 2019 on our Innovation Day ▪ RIO and Volkswagen Group Logistics plan to develop a di
Slide 20: TRATON Goes Canada – Navistar and Scania Intend to Cooperate
Creating a Global Champion Customer Brand Cooperation Global Focused Performance & Synergies Expansion Innovation TRATON GOES CANADA – NAVISTAR AND SCANIA INTEND TO COOPERATE IN THE SALES AND SERVICING OF MINING OPERATIONS IN CANADA Signing memorandum of understanding Scania & Navistar ▪ Strategic a
Slide 21: TRATON and Hino Establish a Procurement Joint Venture
Creating a Global Champion Customer Brand Cooperation Global Focused Performance & Synergies Expansion Innovation TRATON AND HINO JUST ESTABLISHED A PROCUREMENT JOINT VENTURE - DETERMINEDLY EXECUTING THE GLOBAL CHAMPION STRATEGY ▪ Strategic long-term partnership agreed in Apr 2018 ▪ Alliance Board b
Slide 22: Innovation Day 2019: TRATON Wants to Become Leader in E-Mobility
Creating a Global Champion Customer Brand Cooperation Global Focused Performance & Synergies Expansion Innovation INNOVATION DAY 2019: TRATON WANTS TO BECOME LEADER IN E- MOBILITY By 2020 ▪ common modular electric powertrain toolkit, used in 2020 in the first serial produced all-electric city buses
Slide 23: Outlook Group – Track Record, Outlook 2019 and Over-the-Cycle Target
OUTLOOK GROUP – RECENT TRACK RECORD, OUTLOOK 2019 AND OVER-THE-CYCLE TARGET Over-the-cycle RoS FY 2018 9M 2019 2019 Outlook target Slight increase Deliveries 233.0k 179.1 compared with (Units; Growth in %) 13.7% 7.7% previous year Group sales revenue €25.9bn €19.8bn Slightly above (in €bn; Growth in
Slide 24: Outlook – Truck Market
OUTLOOK – TRUCK MARKET TRUCK MARKET DEVELOPMENT (˃ 6t, k units) EU 28+21 SOUTH AMERICA 372 2019: stable 126 2020: -10% to -20% 2009 2011 2013 2015 2017 2019E 2009 2011 2013 2015 2017 2019E GERMANY BRAZIL 2019: ˃ 30% 84 2020: +5% to 10% 72 2009 2011 2013 2015 2017 2019E 2009 2011 2013 2015 2017 2019E
Slide 25: Possible Measures in Case of Rapid Market Downturn
POSSIBLE MEASURES IN CASE OF RAPID MARKET DOWNTURN Market Scenarios 2020: Truck Market EU28+21 -10% -20% Measures possibly to be evaluated Reduction of time accounts Reduction of temporary workers Reduction of non - personnel overhead costs Reduction of direct personnel costs (e.g. short-time work)
Slide 26: In a Nutshell – Group Key Financials 9M 19
IN A NUTSHELL – GROUP KEY FINANCIALS 9M 19 Rise in operating return on sales to Truck1 and bus sales up by around 7.5% Sales revenues increased by 8% at 179,091 units Operating profit increased by around 34% to 6% to 19,8 billion € 1.5 Order intake down by billion 6% 26 1 including MAN TGE
Slide 27: Agenda
AGENDA 01. TRATON’s strategic frame 02. Company milestones 03. TRATON’s environment 04. Core KPIs 9M 2019 05. Q&A 27
Slide 28: TRATON Group – Press Conference Call 9M
TRATON GROUP – PRESS CONFERENCE CALL 9M ANDREAS RENSCHLER, CEO CHRISTIAN SCHULZ, CFO NOVEMBER 04, 2019
Slide 29: Contacts Group Communications
CONTACTS GROUP COMMUNICATIONS Julia Kroeber-Riel Sebastian Rausch Head of Group Communications Financial Media Relations & Governmental Relations julia.kroeber-riel@traton.com sebastian.rausch@traton.com TRATON SE Dachauer Str. 641 80995 Munich 29 www.traton.com