Traton Se · XETR:8TRA
Traton — Q1 2022 Earnings Presentation
40 slides from Traton's earnings presentation, May 4, 2022
Slide 1: 3M 2022 Interim Statement
3M 2022 INTERIM STATEMENT Christian Levin, CEO | Annette Danielski, CFO Munich, 05-04-2022 .
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: Q1 2022 Agenda
Q1 2022 1. Main developments 2. Financials 3. Outlook 4. Backup 05-04-2022 3M 2022 Interim Statement | Investor Relations 3 .
Slide 4: TRATON GROUP Q1 Highlights
TRATON GROUP Q1 Highlights Scania to deliver over 100 electric trucks Navistar opens its San Antonio MAN lays the foundations for to Copenhagen municipal waste company manufacturing plant expansion of the plant in Krakow MAN autonomous driving: Scania Super wins prestigious VWCO joins the UN Global
Slide 5: Operating in a highly challenging environment
Operating in a highly challenging environment Geopolitical Business Supply chain Inflationary environment climate bottlenecks pressure War in Ukraine Truck demand remains Shortages continuing, Significant increase of robust in particular prices for raw materials, Broad sanctions against semiconducto
Slide 6: Developments in Ukraine with strong impact on our business
Developments in Ukraine with strong impact on our business Supply Supply gaps for trucks wiring harnesses have been causing standstill at MAN Truck & Bus truck production plants from March 14, 2022. Truck production restarted end of April, gradually ramping up. Assets Impairments related directly to
Slide 7: Key facts Q1 2022
Key facts Q1 2022 Incoming orders Unit sales Sales revenue 95,594 units 67,767 units €8,525 mn (+17%) (+12%) (+30%) Adj. operating result Adj. return on sales Net cash flow € 402 mn 4.7 % TRATON Operations (€-114 mn) (-3.2 pp) Adj. operating result excl. PPA Adj. return on sales excl. PPA € 476 mn 5
Slide 8: High order backlog thanks to continued high transportation demand - unit sales held back
High order backlog thanks to continued high transportation demand - unit sales held back by supply constraints Excluding Navistar Incoming orders & Unit sales (k units) 110 100 90 80 70 60 50 40 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 19 19 19 19 20 20 20 20 21 21 21 21 22 05-04-2022 3M 20
Slide 9: Unit sales still held back by supply constraints
Unit sales still held back by supply constraints Unit sales (k units) Navistar contribution Lost unit sales (semiconductors & truck wiring harnesses) 67.8 60.3 57.2 46.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 19 19 19 19 20 20 20 20 21 21 21 21 22 05-04-2022 3M 2022 Interim Statement | Investor Rela
Slide 10: TRATON's electric vehicles business evolving
TRATON’s electric vehicles business evolving Incoming orders and unit sales of fully TRATON GROUP offering broad electric vehicles (units) BEV product range 566 554 523 410 417 MAN electric truck Scania electric bus Navistar electric bus VWCO electric truck (eTGM) (Citywide LF) (IC Bus electric CE S
Slide 11: Service business gaining further traction & importance
Service business gaining further traction & importance Service business sales revenue1 (€ bn) In % of TRATON Operations Navistar contribution 23% 24% 20% Sales revenue in Vehicle Services business 20% up by 57% YoY in Q1 2022 2.0 Increasing importance of service business also thanks to the inclusion
Slide 12: Q1 2022 Agenda
Q1 2022 1. Main developments 2. Financials 3. Outlook 4. Backup 05-04-2022 3M 2022 Interim Statement | Investor Relations 12 .
Slide 13: Robust demand not fully reflected in unit sales
Robust demand not fully reflected in unit sales Incoming Unit Sales orders sales revenue Double-digit percentage increase of (units) (units) (€ mn) incoming orders, unit sales and sales revenue +17% +30% thanks to consolidation of Navistar 95,594 8,525 Adjusted for Navistar, incoming orders 81,742 +
Slide 14: Solid result in challenging environment
Solid result in challenging environment Operating Adj. operating Net cash result1 result1 flow (€ mn) (€ mn) TRATON Operations RoS1 Adj. RoS1 (€ mn) (%) (%) Adjusted operating result only €0.1 bn €-613 mn lower YoY despite significant impact from €-114 mn supply bottlenecks and war in Ukraine 753 €+
Slide 15: Sales revenue and adj. operating result by segment
Sales revenue and adj. operating result by segment Sales revenue Q1 2022 (€ mn) Adj. operating result Q1 2022 (€ mn) Adj. RoS 24.0% (-0.7 pp) 690 297 8,525 9.5% 5.3% 8,363 (+45%) 71 (+48%) (+30%) (-2.7 pp) 2,068 (+30%) (+2.5 pp) 4.7% (n/a) -135 3.7% (-3.2 pp) -124 (n/a) 65 441 PPA 2.2% 0 (€-75 mn) 4
Slide 16: Scania V&S with solid result despite continued headwinds
Scania V&S with solid result despite continued headwinds from semiconductor shortage and higher costs Adj. operating return on sales (%) Truck unit sales 28% lower YoY due to the 12.2 12.0 12.1 shortage of components in the supply chain 11.5 11.0 (mainly semiconductors) 9.7 8.5 8.6 8.7 8.5 7.7 7.6 D
Slide 17: Massive impact on MAN T&B truck production from Ukraine developments
Massive impact on MAN T&B truck production from developments in Ukraine - restructuring on track Adj. operating return on sales (%) Impact of production standstill Truck production strongly affected by supply gaps for wiring harnesses resulting in double- digit percentage decline in unit sales 4.7 4
Slide 18: Net cash flow impacted by increased working capital
Net cash flow impacted by increased working capital, supply shortages and MAN production stops Net cash flow TRATON Operations (€ mn) 753 786 Gross cash flow improved by €204 mn 188 thanks to higher operating result 139 Increased working capital mainly due to inventory build-up related to supply sho
Slide 19: Development of net financial debt
Development of net financial debt Net financial debt development TRATON Operations incl. Corporate Items (€ mn) -502 1,067 -426 42 -1,513 -1,694 Debt for purchase price payment Navistar -3,118 -1,266 -4,384 -5,896 Net debt Gross Change in Investing Other Net debt Net debt Net debt TRATON cash flow w
Slide 20: Q1 2022 Agenda
Q1 2022 1. Main developments 2. Financials 3. Outlook 4. Backup 05-04-2022 3M 2022 Interim Statement | Investor Relations 20 .
Slide 21: Truck market outlook – Uncertainties due to geopolitical and economic risks
Truck market outlook – Uncertainties due to high geopolitical and economic risks 400 320 k units, > 6t 352 300 320 Market expectations2 EU27+31 200 2022e 100 0 +0% – +10% 2010 2012 2014 2016 2018 2020 2022 300 k units, > 6t 184 202 Market expectations2 South 200 175 100 2022e America -5% – +10% 0 20
Slide 22: Robust TRATON outlook 2022, while risks remain high
Robust TRATON outlook 2022, while geopolitical and economic risks remain high FY 2021 FY 2022 FY 2022 Outlook Outlook Annual Report 20211 3M 2022 Interim Statement2 271.6 k very sharp sharp Unit sales +43% increase increase €30.6 bn sharp very sharp Sales revenue +36% increase increase Operating RoS
Slide 23: Q1 2022 – Key takeaways
Q1 2022 – Key takeaways Solid results delivery in highly challenging business environment Scania result impacted by continued headwinds from semiconductor shortages and higher costs MAN restructuring on track with strong underlying improvement of performance Strong delivery by VWCO, Navistar with im
Slide 24: What's next?
What’s next? TRATON Capital Markets Day ► May 18, 2022 ► Södertälje, Sweden at the Scania plant ► Agenda for a full day - Teach Ins & Driving event - New strategy and deep dive into brand performance - Q&A session and management discussion 05-04-2022 3M 2022 Interim Statement | Investor Relations 24
Slide 25: Q1 2022 Agenda
Q1 2022 1. Main developments 2. Financials 3. Outlook 4. Backup 05-04-2022 3M 2022 Interim Statement | Investor Relations 25 .
Slide 26: TRATON GROUP – New reporting structure from Q4 2021
TRATON GROUP – New reporting structure from Q4 2021 Part of the TRATON outlook and report on expected developments TRATON GROUP TRATON Corporate Segment TRATON Operations Financial Items1 reporting Services Scania Navistar Volkswagen MAN Key figures Vehicles & Sales & Caminhões e Truck & Bus overvie
Slide 27: TRATON GROUP – Sales revenue
TRATON GROUP – Sales revenue Sales revenue (€ mn) Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Group 6,544 7,076 8,049 8,950 30,620 8,525 TRATON Operations 6,437 6,965 7,900 8,800 30,103 8,363 Scania Vehicles & Services 3,420 3,735 3,096 3,676 13,927 3,180 MAN Truck & Bus 2,645 2,763 2,610 2,916 10,934 2,548
Slide 28: TRATON GROUP – (Adjusted) operating result and return on sales
TRATON GROUP – (Adjusted) operating result and (adjusted) return on sales Operating result & return on sales Adjusted operating result & adjusted return on sales Operating result (€ mn) Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Adj. operating result (€ mn) Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Group 155 301
Slide 29: TRATON GROUP – Adjustments
TRATON GROUP – Adjustments FY FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Adjustments (€ mn) 16 17 18 18 18 18 18 19 19 19 19 19 20 20 20 20 20 21 21 21 21 21 22 Operating result 727 1,512 386 477 245 405 1,513 490 585 407 401 1,884 161 -382 162 139 81 155 301 186 -248 393 355
Slide 30: TRATON Operations – Incoming orders and unit sales
TRATON Operations – Incoming orders and unit sales Incoming orders (units) Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 TRATON Operations 64,357 56,134 49,217 57,532 227,240 54,161 33,270 58,502 70,318 216,251 81,742 89,204 97,371 91,658 359,975 95,
Slide 31: TRATON Operations – Incoming orders and unit sales by brands
TRATON Operations – Incoming orders and unit sales by brands Units Q1 2022 Q1 2021 +/- Q1 2022 Q1 2021 +/- Q1 2022 Q1 2021 +/- Q1 2022 Q1 2021 +/- Incoming orders 20,988 36,944 -43% 31,676 32,070 -1% 29,863 n/a n/a 13,067 12,750 2% Trucks 19,323 35,937 -46% 22,488 22,915 -2% 26,101 n/a n/a 11,617 11
Slide 32: TRATON Operations – Net cash flow and net liquidity/net financial debt
TRATON Operations – Net cash flow and net liquidity/ net financial debt Net cash flow Net cash flow (€ mn) Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 TRATON Operations 753 188 -788 786 938 139 Net liquidity/net financial debt Net liquidity/net financial debt (€ mn) 3/31/21 6/30/21 9/30/21 12/31/21 3/31/22
Slide 33: Scania Vehicles & Services – Key figures
Scania Vehicles & Services – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) -43% -34 bp -28% 1.60 1.47 36.9 38.5 1.39 1.26 25.0 21.0 23.0 26.2 23.1 16.3 18.0 16.6 0.71 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 21 21 21 21 22 22
Slide 34: MAN Truck & Bus – Key figures
MAN Truck & Bus – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) +27 bp -1% 42.9 -17% 1.71 1.64 1.56 32.1 35.3 33.2 31.7 1.37 1.48 23.4 24.0 21.3 25.0 19.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 21 21 21 21 22 22 22 22 21 21
Slide 35: Navistar Sales & Services – Key figures
Navistar Sales & Services – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) 1.68 1.75 29.9 1.17 23.6 19.0 14.1 16.2 17.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 21 21 21 21 22 22 22 22 21 21 21 21 22 22 22 22 21 21 21 21 22 22
Slide 36: Volkswagen Caminhões e Ônibus – Key figures
Volkswagen Caminhões e Ônibus – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) -2 bp +2% +5% 1.15 0.91 0.96 0.99 0.89 12.8 15.4 15.5 13.6 13.1 14.0 16.0 15.6 11.8 14.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 21 21 21 21 22 22
Slide 37: TRATON GROUP – Bonds outstanding
TRATON GROUP – Bonds outstanding TRATON with well-tested access to the debt capital markets €4.6 bn in bonds outstanding (including €300 mn bond issued in January 2022) Issuer TRATON Finance Luxembourg S.A. Guarantor TRATON SE (Ticker: 8TRA, Country: DE) Guarantor Ratings Baa1 negative outlook (Mood
Slide 38: TRATON GROUP – Debt maturity profile
TRATON GROUP – Debt maturity profile Maturity profile (€ bn)1 Major developments Debt overview (€ bn) 9 • €700 mn Schuldschein issued TRATON financial debt 17.6 (tranches of 3y, 5y and 7y) thereof CI/OP 9.1 • Total of €4.6 bn Bonds issued (tranches of 1,5 y, 2y, 3y, 4y, 8y and 12y) thereof FS 8.5 •
Slide 39: TRATON Investor Relations Team
TRATON Investor Relations Team Lars Korinth Thomas Paschen Head of Investor Relations Analysts and Investors, Consensus, Private Investors +49 152 313 73 138 +49 170 907 34 94 lars.korinth@traton.com thomas.paschen@traton.com Margit Hartmann Fabian Schimpf Annual General Meeting, Events Analysts and
Slide 40: 3M 2022 Interim Statement
3M 2022 INTERIM STATEMENT Christian Levin, CEO | Annette Danielski, CFO Munich, 05-04-2022 .