Traton Se · XETR:8TRA
Traton — Investor Day (May 2022)
14 slides from Traton's investor day presentation, May 18, 2022
Slide 1: Full focus on enhancing financial performance and resilience
Full focus on enhancing financial performance and resilience TRATON Capital Markets Day Annette Danielski, CFO Södertälje, 05-18-2022 .
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 the TRATON GROUP
Slide 3: TRATON GROUP financial performance to-date
TRATON GROUP financial performance to-date Sales revenue (excl. Navistar) improved almost Successful IPO and stringent execution of back to pre-pandemic level with high order backlog Global Champion strategy Strong RoS trend interrupted by pandemic effects, Significantly increased net debt level, in
Slide 4: We have defined clear set of financial ambitions
We have defined clear set of financial ambitions Safeguard Focus on investments in Reduce sustainable common debt levels profitability components, and strengthen and resilience new business capital of results models and new structure technologies 4 .
Slide 5: Ambitious, yet achievable RoS target for TRATON GROUP
Ambitious, What we want yet to achievable achieve RoS target for TRATON GROUP Strategic RoS 12% 8% 9% 8% 9%1 targets in 2024 Adjusted RoS 10.1% 2.3% 1.2% 8.1% 5.2%1 2021 1 Including effects of the purchase price allocation (PPA) 5 .
Slide 6: Stringent execution along clearly defined building blocks towards RoS target
Stringent execution along clearly defined building blocks towards RoS target Volume 9% increase MAN T&B 5.2% realignment Improved Input cost price & mix inflation Efficiency gains R&D expenses across Group in future trends TRATON GROUP TRATON GROUP 2021 TARGET 2024 6 .
Slide 7: Building blocks driving margin upside and earnings resilience
Building blocks driving margin upside and earnings resilience Volume, mix & pricing MAN T&B realignment program Highly competitive products & services Improved fixed cost structure and leading to volume increases and better increased productivity thanks to stringent price positioning & mix across th
Slide 8: Key drivers for future investments
Key drivers for future investments Go captive FS TCO optimization Growth Embrace digital 9% RoS Decarbonization Uptime Go common Go China TRATON Customer needs strategic ambition Charging infrastructure MAN realignment Electrification Driver shortage Services & solutions Substantial investments requ
Slide 9: Securing future competitiveness with targeted investments in R&D and capex
Securing future competitiveness with targeted investments in R&D and capex Distribution of primary R&D costs Distribution of capex Primary R&D costs in % of TRATON Operations sales revenue Capex in % of TRATON Operations sales revenue 4.8% ~4% 4.2% ~4% 100% 100% 80% 80% Two thirds of total budget Re
Slide 10: TRATON's capital framework – Focus on optimizing pillars to deleverage
TRATON’s capital framework – Focus on optimizing pillars to deleverage Operating funding Effective use Structural sources of funds measures Improving Targeted, Strengthening cash conversion earnings future-oriented Strong capital momentum R&D and Capex commitment Improved structure to further deleve
Slide 11: New bonus system aligned to deliver profitable growth and efficient capital allocation
New bonus system aligned to deliver profitable growth and efficient capital allocation Mix of TRATON GROUP and Brands 100% TRATON GROUP RoS Enhance profitability & operational efficiency Stock price Drive attractive Profit Long shareholder returns Return on Capital Bonus Term Bonus Focus on efficien
Slide 12: Full focus on enhancing TRATON's financial performance and resilience
Full focus on enhancing TRATON’s financial performance and resilience Executing towards Improving resilience ambitious RoS target and cost efficiency Strong financial policy Remuneration system and capital allocation aligned to strategic framework targets Focus on deleveraging Leveraging potential w
Slide 13: Why TRATON is an attractive investment
Why TRATON is an attractive investment Strong competitive position with a diversified regional and brand portfolio in an attractive global growth market and profit pool State-of-the-art products and services strongly geared towards future trends in order to capture the opportunities in our industry
Slide 14: TRATON – Exciting pathway ahead
TRATON – Exciting pathway ahead Responsible Company Strategy Execution & Governance Value TRATON Creation Accelerated! 14 .