Traton Se · XETR:8TRA
Traton — Investor Day (January 2019)
188 slides from Traton's investor day presentation, Jan 29, 2019
Slide 1: TRATON GROUP – Creating a Global Champion
TRATON GROUP – CREATING A GLOBAL CHAMPION CAPITAL MARKETS DAY LONDON – JANUARY 29, 2019
Slide 2: Disclaimer
DISCLAIMER The following presentation contains forward-looking statements and information on the business development of TRATON GROUP. These statements and information may be spoken or written and can be recognized by terms such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “
Slide 3: Agenda for the day (1/2)
AGENDA FOR THE DAY (1/2) TOPIC PRESENTER PAGE 01. INTRODUCTION A. Renschler 6 02. COMPANY HIGHLIGHTS A. Renschler 13 03. INDUSTRY AND MARKET ENVIRONMENT C. Schulz 26 04. INTRODUCTION TO TRATON GROUP A. Renschler 41 BRAND PERFORMANCE SCANIA H. Henriksson 49 BRAND PERFORMANCE MAN T&B J. Drees 72 BRAND
Slide 4: Agenda for the day (2/2)
AGENDA FOR THE DAY (2/2) TOPIC PRESENTER PAGE COOPERATIONS & SYNERGIES C. Schulz, C. Levin 105 GLOBAL EXPANSION C. Schulz 115 CUSTOMER FOCUSED INNOVATION C. Levin 122 05. FINANCIALS C. Schulz 142 06. WRAP UP A. Renschler 173 Q&A SESSION II R. Woller, All Presenters 4
Slide 5: Andreas Renschler
ANDREAS RENSCHLER MEMBER OF THE BOARD OF MANAGEMENT OF VOLKSWAGEN AG CHIEF EXECUTIVE OFFICER TRATON GROUP
Slide 6: Today's Agenda
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT TODAY'S AGENDA 01. INTRODUCTION 02. COMPANY HIGHLIGHTS 03. INDUSTRY AND MARKET ENVIRONMENT 04. TRATON GROUP 05. FINANCIALS 06. WRAP UP 6
Slide 7: Today's Speakers
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT TODAY’S SPEAKERS Andreas Christian Christian Dr. Carsten Renschler Schulz Levin Intra CEO CFO CTO CHRO Henrik Joachim Antonio Roberto Henriksson Drees Cortes CEO Scania CEO MAN CEO VWCO 7
Slide 8: Clearly defined strategic goal: global champion
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT CLEARLY DEFINED STRATEGIC GOAL Creating a GLOBAL CHAMPION IN THE TRANSPORTATION INDUSTRY Leader in PROFITABILITY GLOBAL PRESENCE INNOVATION 8
Slide 9: TRATON GROUP has continuously delivered on its strategic goal
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT TRATON GROUP HAS CONTINUOUSLY DELIVERED ON ITS STRATEGIC GOAL SINCE THE INCEPTION OF VOLKSWAGEN TRUCK & BUS Successful creation and implementation of New corporate identity Collaboration among strategic a
Slide 10: Leading global brands and strategic alliance partners
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT LEADING GLOBAL BRANDS AND STRATEGIC ALLIANCE PARTNERS FULLY CONSOLIDATED ASSOCIATES STRATEGIC PARTNER 16.8%1 25% + 1 share2 Leader in core markets Powerful strategic alliance partners enabling leading glo
Slide 11: Unique global truck and bus platform with focus on heavy duty trucks
Relates to % of total TRATON GROUP unit COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP sales in 2017 (excl. associates and HIGHLIGHTS MARKET ENVIRONMENT strategic partner) UNIQUE GLOBAL TRUCK AND BUS PLATFORM WITH FOCUS ON HEAVY DUTY TRUCKS TRATON GROUP ASSOCIATES STRATEGIC PARTNE
Slide 12: Snapshot TRATON GROUP
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT SNAPSHOT TRATON GROUP 2017 UNIT SALES1 BY GEOGRAPHY SALES REVENUE BY BRAND ADJ. OPERATING PROFIT BY BRAND % of total € bn / % of total € bn / Adj. RoS % VWCO VWCO6 Germany Other 1.2 MAN T&B 16% 27% (5%) 0
Slide 13: Today's Agenda
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT TODAY'S AGENDA 01. INTRODUCTION 02. COMPANY HIGHLIGHTS 03. INDUSTRY AND MARKET ENVIRONMENT 04. TRATON GROUP 05. FINANCIALS 06. WRAP UP 13
Slide 14: Key company highlights
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT KEY COMPANY HIGHLIGHTS • Scale and global reach through leading brands and 1 GLOBAL CHAMPION • strategic alliance partners Unique platform enabling growth and positioning us for best-in-class profitabilit
Slide 15: #1 truck market position in Europe and South America
COMPANY INDUSTRY AND GLOBAL PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT CHAMPION AND SYNERGIES TRATON GROUP WITH #1 TRUCK MARKET POSITION IN EUROPE AND SOUTH AMERICA Core markets of TRATON GROUP brands TRATON GROUP truck market share in 2
Slide 16: Expanding global reach through alliance partners
COMPANY INDUSTRY AND GLOBAL PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT CHAMPION AND SYNERGIES EXPANDING GLOBAL REACH THROUGH ALLIANCE PARTNERS TO ADDRESS ALL MAJOR PROFIT POOLS Core markets of TRATON GROUP brands Truck market share in 20
Slide 17: Leading heavy duty platform as basis for expansion and synergies
COMPANY INDUSTRY AND GLOBAL PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT CHAMPION AND SYNERGIES LEADING HEAVY DUTY PLATFORM AS BASIS FOR FURTHER EXPANSION AND SYNERGY REALIZATION Potential heavy duty platform reach of top OEMs incl. associ
Slide 18: Multiple strategic levers for growth
COMPANY INDUSTRY AND GLOBAL PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT CHAMPION AND SYNERGIES TRATON GROUP WITH MULTIPLE STRATEGIC LEVERS FOR GROWTH TRATON GROUP SALES REVENUE SUSTAIN CORE GO GLOBAL €24.4bn1 GROW SHARE DRIVE INNOVATION 2
Slide 19: Sustain core and go global
COMPANY INDUSTRY AND GLOBAL PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT CHAMPION AND SYNERGIES SUSTAIN CORE AND GO GLOBAL – STRONG CORE MARKETS AND INCREASING EXPOSURE TO GLOBAL MARKETS FORM THE BASIS FOR FUTURE TOPLINE GROWTH SUSTAIN COR
Slide 20: Grow share – attractive product pipeline
COMPANY INDUSTRY AND GLOBAL PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT CHAMPION AND SYNERGIES GROW SHARE – BENEFIT FROM HIGHLY ATTRACTIVE PRODUCT PIPELINE % of truck units of respective brand affected post full production ramp-up NTG NEW
Slide 21: Drive innovation – transforming transportation
COMPANY INDUSTRY AND GLOBAL PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT CHAMPION AND SYNERGIES DRIVE INNOVATION – TRATON GROUP IS TRANSFORMING TRANSPORTATION Hybrid Broadest range of Natural Gas Autonomous transport system Large connected
Slide 22: Track record of performance improvement across brands
COMPANY INDUSTRY AND GLOBAL PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT CHAMPION AND SYNERGIES TRATON GROUP WITH STRONG TRACK RECORD OF PERFORMANCE IMPROVEMENT ACROSS BRANDS. FURTHER POTENTIAL TO BE REALIZED A BRAND PERFORMANCE IMPROVEMEN
Slide 23: Well positioned to fund new technologies
COMPANY INDUSTRY AND GLOBAL PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT CHAMPION AND SYNERGIES WITH THE INTRODUCTION OF THE NEW TRUCK GENERATIONS, TRATON GROUP VERY WELL POSITIONED TO FUND NEW TECHNOLOGIES % of TRATON GROUP sales revenue
Slide 24: TRATON GROUP – Creating a Global Champion
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT TRATON GROUP – CREATING A GLOBAL CHAMPION GROWTH · PROFITABILITY AND SYNERGIES EXECUTION 24
Slide 25: Christian Schulz
CHRISTIAN SCHULZ CHIEF FINANCIAL OFFICER TRATON GROUP
Slide 26: Today's Agenda
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT TODAY'S AGENDA 01. INTRODUCTION 02. COMPANY HIGHLIGHTS 03. INDUSTRY AND MARKET ENVIRONMENT 04. TRATON GROUP 05. FINANCIALS 06. WRAP UP 26
Slide 27: Trucks are capital goods: total cost of ownership
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT TRUCKS ARE CAPITAL GOODS: PURCHASE DECISIONS ARE BASED ON RATIONAL FACTORS – TOTAL COST OF OWNERSHIP (TCO) TRUCKS PASSENGER CARS Sector Capital goods Consumer goods Customer focus Total cost of ownership
Slide 28: Truck industry driven by total cost of ownership
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT TRUCK INDUSTRY DRIVEN BY TOTAL COST OF OWNERSHIP (TCO) ADMIN AND KEY ELEMENTS2 SERVICES VEHICLE FUEL Annual mileage, driving behavior, powertrain efficiency REPAIR AND DRIVER MAINTENANCE Driver salary, re
Slide 29: Truck industry with limited number of global OEMs
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT TRUCK INDUSTRY CHARACTERIZED BY A LIMITED NUMBER OF OEMS COMPETING GLOBALLY LIMITED NUMBER OF GLOBAL PLAYERS • Trucks are highly customized products given HDT market share 2017 held by top 3 in each regio
Slide 30: Evolving truck market offers new opportunities
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT EVOLVING TRUCK MARKET OFFERS NEW OPPORTUNITIES TRANSPORT SOLUTIONS NEW TRUCK + SERVICES “TRADITIONAL” TRUCK BUSINESS • End-to-end logistic solutions/ fleet management • Repair & maintenance • Proactive ma
Slide 31: Megatrends influencing the transportation sector
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT 3 MEGATRENDS INFLUENCING THE TRANSPORTATION SECTOR GLOBALIZATION DIGITALIZATION SUSTAINABILITY FUNDAMENTALLY GROWING INDUSTRY, CONNECTIVITY TRANSITION TO ELECTRIFICATION GLOBALLY • Penetration rising rapi
Slide 32: Strong growth in global road transportation
COMPANY INDUSTRY AND GLOBALIZATION DIGITALIZATION SUSTAINABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT STRONG GROWTH IN GLOBAL ROAD TRANSPORTATION x% 2018-25e CAGR GLOBAL ROAD TRANSPORTATION MARKET DRIVERS $ bn Global GDP is expected to continue to grow ~7% p.a.
Slide 33: Sales volumes still far from historical peaks
COMPANY INDUSTRY AND GLOBALIZATION DIGITALIZATION SUSTAINABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT SALES VOLUMES IN TRATON GROUP'S CORE MARKETS AND THE US ARE STILL FAR FROM HISTORICAL PEAKS x% Current-to-peak variation Truck sales volumes (>6t)1, in k units
Slide 34: Outlook for core markets positive
COMPANY INDUSTRY AND GLOBALIZATION DIGITALIZATION SUSTAINABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT OUTLOOK FOR TRATON GROUP'S CORE MARKETS POSITIVE – EUROPE PROFITABLE AND INNOVATION DRIVEN, SOUTH AMERICA RECOVERING MARKET VOLUME TRUCK SALES >6t PROFIT POOL O
Slide 35: Addressable market for technology leaders expected to increase
COMPANY INDUSTRY AND GLOBALIZATION DIGITALIZATION SUSTAINABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT ADDRESSABLE MARKET FOR TECHNOLOGY LEADERS EXPECTED TO INCREASE – DRIVEN BY EVOLVING REGULATORY AND CUSTOMER REQUIREMENTS INCREASING LEVEL OF REGULATION & CUSTOM
Slide 36: Connectivity – monetizing connected services
COMPANY INDUSTRY AND GLOBALIZATION DIGITALIZATION SUSTAINABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT CONNECTIVITY – MONETIZING CONNECTED SERVICES AND SOLUTIONS VARIOUS VALUE DRIVERS STEMMING CONNECTED TRUCKS BECOMING STANDARD IN EUROPE FROM CONNECTED SERVICES C
Slide 37: Autonomous driving – near-term impact for selected applications
COMPANY INDUSTRY AND GLOBALIZATION DIGITALIZATION SUSTAINABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT AUTONOMOUS DRIVING – NEAR-TERM IMPACT FOR SELECTED APPLICATIONS, WHILE FULL IMPACT OF AUTONOMOUS DRIVING LIKELY TO MATERIALIZE ONLY IN THE LONG TERM EXPECTED DE
Slide 38: Electrification driven by TCO and regulation
COMPANY INDUSTRY AND GLOBALIZATION DIGITALIZATION SUSTAINABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT ELECTRIFICATION DRIVEN BY TCO AND REGULATION – FASTEST ADOPTION FOR CITY BUSES Indicative potential timeframe for TCO parity1 broader market adoption in Europe
Slide 39: Well positioned at forefront of new technologies
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT TRATON GROUP WELL POSITIONED TO BE AT THE FOREFRONT OF NEW TECHNOLOGIES GLOBALIZATION DIGITALIZATION SUSTAINABILITY FUNDAMENTALLY GROWING INDUSTRY CONNECTIVITY TRANSITION TO ELECTRIFICATION • Global Champ
Slide 40: Andreas Renschler
ANDREAS RENSCHLER MEMBER OF THE BOARD OF MANAGEMENT OF VOLKSWAGEN AG CHIEF EXECUTIVE OFFICER TRATON GROUP
Slide 41: Today's Agenda
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT TODAY'S AGENDA 01. INTRODUCTION 02. COMPANY HIGHLIGHTS 03. INDUSTRY AND MARKET ENVIRONMENT 04. TRATON GROUP Brand Performance | Cooperations & Synergies | Global Expansion | Customer Focused Innovation 05
Slide 42: Our heritage: three leading innovative brands
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT OUR HERITAGE: A GROUP OF THREE LEADING INNOVATIVE BRANDS Focus on truck sales … 42
Slide 43: At present: ready for the future
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT AT PRESENT: READY FOR THE FUTURE …converting into a transport solution provider 43
Slide 44: Governance structure and shared values
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT ESTABLISHED GOVERNANCE STRUCTURE AND SHARED VALUES ARE FUNDAMENTAL PILLARS THAT SECURE SUCCESSFUL BRAND COOPERATION GOVERNANCE SHARED VALUES TEAM SPIRIT We join forces to be the number ONE CEO/ Chairman o
Slide 45: Way to global champion based on four pillars
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT 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 I
Slide 46: Clear positioning of brands
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT CLEAR POSITIONING OF BRANDS 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 custom
Slide 47: Today's Agenda
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT TODAY'S AGENDA 01. INTRODUCTION 02. COMPANY HIGHLIGHTS 03. INDUSTRY AND MARKET ENVIRONMENT 04. TRATON GROUP Brand Performance | Cooperations & Synergies | Global Expansion | Customer Focused Innovation 05
Slide 48: Henrik Henriksson
HENRIK HENRIKSSON MEMBER OF THE EXECUTIVE BOARD OF TRATON GROUP CHIEF EXECUTIVE OFFICER SCANIA
Slide 49: Driving the shift towards a sustainable transport system
DRIVING THE SHIFT TOWARDS A SUSTAINABLE TRANSPORT SYSTEM 49
Slide 50: Scania overview
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT BRAND PERFORMANCE SCANIA OVERVIEW SCANIA GROUP SALES REVENUE BY OFFER (FY2017) SCANIA GROUP EMPLOYEES BY FUNCTION (FY2017) Financial Services3 Financial Services Other 6% 9% 2% Other2 17% Commercial 44% P
Slide 51: Consistent profitability leadership over decades
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT BRAND PERFORMANCE SCANIA CONSISTENT PROFITABILITY LEADERSHIP OVER DECADES Scania V&S reported (excl. FS) Scania V&S adjusted (excl. FS)1 Truck peer index2 >80 consecutive years of profitability 12% over t
Slide 52: Our purpose: sustainable transport system
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT BRAND PERFORMANCE SCANIA OUR PURPOSE: DRIVING THE SHIFT TOWARDS A SUSTAINABLE TRANSPORT SYSTEM SUSTAINABLE Alternative Smart & Energy TRANSPORT efficiency fuels & electrification safe transport Doing the
Slide 53: Scania strategy: growth, profitability, execution
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT BRAND PERFORMANCE SCANIA DRIVING THE SHIFT TOWARDS A SUSTAINABLE TRANSPORT SYSTEM • Ramp-up New Truck Generation 1GROWTH • Broadest range of alternative fuel technologies • Strong captive network and expa
Slide 54: Continue successful growth path
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE SCANIA CONTINUE SUCCESSFUL GROWTH PATH Scania Group1 sales revenue 1 Ramp-up New Truck Generation Broadest range of alternative fuel 2 techno
Slide 55: Ramp-up New Truck Generation
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE SCANIA RAMP-UP NEW TRUCK GENERATION PREVIOUS BODY IN WHITE GENERATIONS AND FACELIFTS SELECTED AWARDS FOR NTG NTG IN FIGURES New Body In White
Slide 56: Broadest range of alternative fuel technologies
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE SCANIA BROADEST RANGE OF ALTERNATIVE FUEL TECHNOLOGIES1 COMPETITIVE EDGE FOR DRIVING THE SHIFT TOWARDS A SUSTAINABLE TRANSPORT SYSTEM WHEN TH
Slide 57: Strong captive network and expanding connected fleet
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE SCANIA STRONG CAPTIVE NETWORK AND EXPANDING CONNECTED FLEET CAPTIVE NETWORK CAPTIVE FINANCING EXPANDING ROLLING FLEET >20,000 ~€6.1bn >350k E
Slide 58: Service growth
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE SCANIA SERVICE GROWTH ALL BUILDING BLOCKS IN PLACE FOR SERVICE GROWTH AHEAD Continued service growth targeted CAPTIVE NETWORK & with CAPTIVE
Slide 59: Target to increase profitability to 12% return on sales
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE SCANIA TARGET TO INCREASE PROFITABILITY TO 12% RETURN ON SALES1 Scania Group2 adj. RoS Premium pricing through unique customer 1 12% understa
Slide 60: Premium pricing through unique customer understanding
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE SCANIA PREMIUM PRICING THROUGH UNIQUE CUSTOMER UNDERSTANDING FACILITATED BY THE SALES OF HOLISTIC CUSTOMER SOLUTIONS EXAMPLE NTG – SCANIA BUS
Slide 61: Byggladan modular toolbox across technologies
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE SCANIA LEVERAGE BYGGLADAN, SCANIA’S MODULAR TOOLBOX, ACROSS TECHNOLOGIES MORE TAILORED PRODUCTS WITH FEWER COMPONENTS APPROACH EXECUTION BENE
Slide 62: Tailored products with limited components
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE SCANIA LEVERAGE BYGGLADAN, SCANIA’S MODULAR TOOLBOX, ACROSS TECHNOLOGIES TAILORED PRODUCTS WITH LIMITED COMPONENTS COMPARISON OF PRODUCT VARI
Slide 63: Modular toolbox enables niche applications profitably
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE SCANIA LEVERAGE BYGGLADAN, SCANIA’S MODULAR TOOLBOX, ACROSS TECHNOLOGIES AS ENABLER TO PROFITABLY OFFER APPLICATIONS FOR NICHE CUSTOMERS PRIC
Slide 64: Flexible and lean global production system (1/2)
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE SCANIA OPTIMIZE PRODUCT COST THROUGH FLEXIBLE AND LEAN GLOBAL PRODUCTION SYSTEM (1/2) FLEXIBLE GLOBAL PRODUCTION SYSTEM LEAN GLOBAL PRODUCTIO
Slide 65: Flexible and lean global production system (2/2)
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE SCANIA OPTIMIZE PRODUCT COST THROUGH FLEXIBLE AND LEAN GLOBAL PRODUCTION SYSTEM (2/2) PARALLEL PRODUCT GENERATIONS DURING NTG RAMP-UP DETAILS
Slide 66: Expansion of service offering through smart and connected services
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE SCANIA EXPANSION OF SERVICE OFFERING THROUGH SMART AND CONNECTED SERVICES SCANIA HAS A LARGE AND CONTINUOUSLY GROWING DATA BASE ... ... AND K
Slide 67: Execution – the Scania Way
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE SCANIA EXECUTION – THE “SCANIA WAY” Leader in sustainable transport CUSTOMER-CENTRIC / CONTINUOUS 1 IMPROVEMENT PARTNERSHIPS IN THE ECO-SYSTE
Slide 68: Partnerships in the eco-system of transport and logistics
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE SCANIA PARTNERSHIPS IN THE ECO-SYSTEM OF TRANSPORT AND LOGISTICS CREATING VALUE FOR CUSTOMERS WITH PARTNERSHIPS FOR HOLISTIC SOLUTIONS H&M1 A
Slide 69: Highly experienced and open-minded leadership
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE SCANIA HIGHLY EXPERIENCED AND OPEN-MINDED LEADERSHIP – STRONG TRACK RECORD: DELIVERING ABOVE INDUSTRY AVERAGE MARGINS Years of experience rel
Slide 70: Scania – key takeaways
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT BRAND PERFORMANCE SCANIA SCANIA – KEY TAKEAWAYS EXECUTION - THE “SCANIA WAY” PROFITABILITY AND SYNERGIES 3 CUSTOMER-CENTRIC / CONTINOUS GROWTH 2 IMPROVEMENT PREMIUM PRICING THROUGH UNIQUE PARTNERSHIPS IN
Slide 71: Joachim Drees
JOACHIM DREES MEMBER OF THE EXECUTIVE BOARD OF TRATON GROUP CHIEF EXECUTIVE OFFICER MAN
Slide 72: Simplifying business by being the most reliable business partner
SIMPLIFYING BUSINESS BY BEING THE MOST RELIABLE BUSINESS PARTNER 72
Slide 73: MAN T&B overview
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT BRAND PERFORMANCE MAN T&B OVERVIEW MAN T&B SALES REVENUE BY OFFER (FY2017) MAN T&B EMPLOYEES BY FUNCTION (FY2017) Other1 Other 20% 13% 60% Production & 54% Aftersales2 20% Vehicles Marketing & 33% Logisti
Slide 74: Unlocking potential
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT BRAND PERFORMANCE MAN T&B UNLOCKING POTENTIAL STRONG PERIOD OF EXECUTION OF ROOTS CHANGE FUTURE LION STRATEGY • MAN T&B’s roots date • Global financial crisis back to the 18th • High leadership century fl
Slide 75: Unlocking potential
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT BRAND PERFORMANCE MAN T&B UNLOCKING POTENTIAL STRONG PERIOD OF PLANTING PROFITABILITY NEW ERA OF ROOTS CHANGE SEEDS STABILIZATION PROFITABILITY • MAN T&B’s roots date • Global financial crisis • Setup of
Slide 76: MAN T&B strategy: growth, profitability, execution
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT BRAND PERFORMANCE MAN T&B SIMPLIFYING BUSINESS BY BEING THE MOST RELIABLE BUSINESS PARTNER • Replicate German market success story in European Focus Markets 1GROWTH • Execute launch of high quality produc
Slide 77: MAN T&B – strong platform with substantial growth potential
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE MAN T&B MAN T&B – STRONG PLATFORM WITH SUBSTANTIAL GROWTH POTENTIAL MAN T&B sales revenue Replicate German market success story in 1 European
Slide 78: Replicate German market success in European focus markets
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE MAN T&B REPLICATE GERMAN MARKET SUCCESS STORY IN EUROPEAN FOCUS MARKETS KEY STRENGTHS OF MARKET SIZE, ANNUAL MAN T&B 3 MAN T&B IN GERMANY IHS
Slide 79: Replicate German success – selected case studies
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE MAN T&B REPLICATE GERMAN MARKET SUCCESS STORY IN EUROPEAN FOCUS MARKETS SELECTED CASE STUDIES – HOW CAN WE EXPAND OUR MARKET SHARE? MARKET PO
Slide 80: Launch high quality product portfolio
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE MAN T&B LAUNCH HIGH QUALITY PRODUCT PORTFOLIO STRONG PIPELINE OF PRODUCT AND APPLICATION INNOVATIONS (SERIES LAUNCHES) New truck generation N
Slide 81: New truck generation
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE MAN T&B LAUNCH HIGH QUALITY PRODUCT PORTFOLIO (CONT’D) NEW TRUCK GENERATION KEY HIGHLIGHT OF INNOVATION PIPELINE 2000 2007 2019-2021 LAUNCH O
Slide 82: Key product highlights and features
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE MAN T&B LAUNCH HIGH QUALITY PRODUCT PORTFOLIO (CONT’D) KEY PRODUCT HIGHLIGHTS AND FEATURES PRODUCT HIGHLIGHTS Fuel consumption reduction1 Pri
Slide 83: New truck generation with operative improvements
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE MAN T&B LAUNCH HIGH QUALITY PRODUCT PORTFOLIO (CONT’D) NEW TRUCK GENERATION COMES WITH SIGNIFICANT OPERATIVE IMPROVEMENTS ACROSS THE WHOLE OR
Slide 84: Expand aftersales and service offering
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE MAN T&B EXPAND AFTERSALES AND SERVICE OFFERING AS THE MAIN LAYER OF GROWTH MATERIAL UPSIDE POTENTIAL THROUGH ENHANCED SERVICE OFFERING AFTERS
Slide 85: Target to increase profitability to 8% return on sales
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE MAN T&B TARGET TO INCREASE PROFITABILITY TO 8% RETURN ON SALES1 MAN T&B adj. RoS 1 OPERATIONAL EXCELLENCE PROGRAM Synergies within TRATON GRO
Slide 86: Operational Excellence program
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE MAN T&B OPERATIONAL EXCELLENCE IS AIMING TO MAKE MAN T&B “FIT FOR THE FUTURE" AND TO STRIVE FOR THE NEXT LEVEL OF PERFORMANCE MODULES SELECTE
Slide 87: High quality team in place
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE MAN T&B HIGH QUALITY TEAM IN PLACE TO DEFINE STRATEGY AND CONTINUE TO DELIVER EXECUTION Years in the automotive / truck industry 1 MAN T&B EX
Slide 88: MAN T&B – key takeaways
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT BRAND PERFORMANCE MAN T&B MAN T&B – KEY TAKEAWAYS EXECUTION PROFITABILITY AND SYNERGIES 3 STRONG LEADERSHIP – COMMITMENT VISION GROWTH 2 AND EXECUTION FOCUS STRONG TEAM CULTURE 1 REPLICATE GERMAN MARKET S
Slide 89: Antonio Roberto Cortes
ANTONIO ROBERTO CORTES MEMBER OF THE EXECUTIVE BOARD OF TRATON GROUP CHIEF EXECUTIVE OFFICER VOLKSWAGEN CAMINHÕES E ÔNIBUS
Slide 90: Less you don't want, more you don't need
LESS YOU DON’T WANT, MORE YOU DON’T NEED 90
Slide 91: VWCO overview
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT BRAND PERFORMANCE VWCO OVERVIEW VWCO SALES REVENUE BY OFFER (FY2017) VWCO EMPLOYEES BY FUNCTION (FY2017) Other2 Aftersales1 Third parties VWCO 9% 4% 2% (purchased service) 28% 39% 87% 89% Modular 33% Cons
Slide 92: Well-positioned to benefit from market recovery in Brazil
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT BRAND PERFORMANCE VWCO WELL-POSITIONED TO BENEFIT FROM THE ONGOING MARKET RECOVERY IN BRAZIL PRE-CRISIS TURNAROUND PERIOD FUTURE • Benchmark performance • Deteriorating profitability • Market recovery • S
Slide 93: VWCO strategy: growth, profitability, execution
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT BRAND PERFORMANCE VWCO LESS YOU DON’T WANT MORE YOU DON’T NEED • Well-positioned to benefit from ongoing market recovery in Brazil 1GROWTH • • Expand export business (South America, Mexico, Africa and Mid
Slide 94: VWCO – strong platform with growth potential
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE VWCO VWCO – STRONG PLATFORM WITH SUBSTANTIAL GROWTH POTENTIAL VWCO sales revenue 1 Benefit from Brazil recovery Expand footprint outside Braz
Slide 95: Brazil: large market with growth potential
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE VWCO BRAZIL: LARGE MARKET WITH SIGNIFICANT GROWTH POTENTIAL Real GDP growth Key success VWCO factors Brazil truck market position 2017 Actual
Slide 96: Roadmap to become #1 in South America
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE VWCO DETAILED ROADMAP IN PLACE TO BECOME #1 IN SOUTH AMERICA AND GROW IN MEXICO, AFRICA AND MIDDLE EAST SELECTED FOCUS COUNTRIES IN SOUTH AME
Slide 97: Strong pipeline of products
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE VWCO STRONG PIPELINE OF PRODUCTS TO FURTHER STRENGTHEN VWCO’S TAILORED SOLUTIONS PORTFOLIO TYPE OF INNOVATION DESCRIPTION KEY PRODUCT LAUNCHE
Slide 98: Expansion of service offering
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE VWCO EXPANSION OF SERVICE OFFERING THROUGH FOCUS ON SERVICE AVAILABILITY AND STRONG RELIABILITY GLOBAL SERVICES FOOTPRINT EXPANSION OF SERVIC
Slide 99: Clear path to 8% return on sales target
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE VWCO CLEAR PATH TO ACHIEVE 8% OVER THE CYCLE RETURN ON SALES TARGET1 VWCO adj. RoS 1 Consórcio Modular 8% Operational improvements 1.7% Syner
Slide 100: Consórcio Modular – flexible production at low costs
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE VWCO “CONSÓRCIO MODULAR” – HIGHLY FLEXIBLE PRODUCTION AT LOW COSTS “CONSÓRCIO MODULAR” … … 100% OPERATED BY SUPPLIERS – “PARTNERS” … … DRIVIN
Slide 101: VWCO turnaround showing significant impact
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE VWCO VWCO TURNAROUND SHOWING SIGNIFICANT IMPACT SUPPORTED BY STRINGENT COST MANAGEMENT AND FLEXIBLE PRODUCTION SYSTEM VWCO TURNAROUND PLAN (2
Slide 102: Clearly assigned responsibilities and control
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE VWCO CLEARLY ASSIGNED RESPONSIBILITIES COMBINED WITH RIGID CONTROL AND TRACKING PROCESS Years of experience relate to automotive/truck indust
Slide 103: VWCO – key takeaways
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT BRAND PERFORMANCE VWCO VWCO – KEY TAKEAWAYS EXECUTION 3 PROFITABILITY AND SYNERGIES HIGHLY FOCUSED MANAGEMENT TEAM GROWTH 2 GREAT PLACE TO WORK CONSÓRCIO MODULAR 1 BENEFIT FROM BRAZIL RECOVERY DRIVE TURNA
Slide 104: Christian Levin
CHRISTIAN LEVIN CHIEF TECHNOLOGY OFFICER TRATON GROUP
Slide 105: Today's Agenda
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT TODAY'S AGENDA 01. INTRODUCTION 02. COMPANY HIGHLIGHTS 03. INDUSTRY AND MARKET ENVIRONMENT 04. TRATON GROUP Brand Performance | Cooperations & Synergies | Global Expansion | Customer Focused Innovation 05
Slide 106: Synergies ramping up across five categories
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT COOPERATIONS & SYNERGIES TRATON GROUP SYNERGIES RAMPING UP ON THE BACK OF FIVE INDIVIDUAL CATEGORIES Production footprint 5th Category and logistics ~€0.7bn 4th Category New technologies 3rd Category Join
Slide 107: Structured approach to synergy exploration
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT COOPERATIONS & SYNERGIES TRATON GROUP WITH STRUCTURED APPROACH TO SYNERGY EXPLORATION AND VISIBLE SYNERGIES AHEAD CUMULATIVE SYNERGY CONTRIBUTION SCHEMATIC TARGETED TARGETED DESCRIPTION TIMING OF SYNERGY
Slide 108: Purchasing/lead buying
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT COOPERATIONS & SYNERGIES Focus of next page A PURCHASING/LEAD BUYING IS THE GLOBAL COLLABORATION MODEL WITHIN PROCUREMENT Initial Assessment Implementation Phase Holistic approach to Lead Buying strategy
Slide 109: Deep dive: joint lead buying – tires
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT COOPERATIONS & SYNERGIES A DEEP DIVE: JOINT COMMERCIAL COLLABORATION/LEAD BUYING - TIRES Independent procurement process One Dedicated Lead Buyer Key Benefits Estimated tires volume (in m), mid-term x2 c.
Slide 110: Modularization and components
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT COOPERATIONS & SYNERGIES B MODULARIZATION AND COMPONENTS Initial Assessment Implementation Phase Modularization and components strategy What is the objective? Wave 1 Wave 2 Wave 3 Wave 4 3% longer • Reduc
Slide 111: Joint powertrain projects
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT COOPERATIONS & SYNERGIES C A NUMBER OF JOINT POWERTRAIN PROJECTS ARE CURRENTLY BEING IMPLEMENTED OR DEVELOPED Focus on ENGINES next page CBE – new 13l engine ATS Axle Expected to be installed in >50% GW G
Slide 112: Deep dive CBE: jointly developed engine
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT COOPERATIONS & SYNERGIES C DEEP DIVE CBE: JOINTLY DEVELOPED BEST-IN-CLASS ENGINE SOLUTION TO OPTIMIZE CUSTOMERS’ TCO CBE – NEW 13L ENGINE SYNERGY AREAS P&L IMPACT Annual • Savings on targeted 80% common p
Slide 113: CBE leveraged across brands, synergy ramp-up
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT COOPERATIONS & SYNERGIES C DEEP DIVE CBE: LEVERAGING ENGINE ACROSS BRANDS ENSURES SIGNIFICANT SYNERGY RAMP-UP OVER YEARS TO COME Start of production TRATON GROUP brands Leverage CBE engine across brands (
Slide 114: Christian Schulz
CHRISTIAN SCHULZ CHIEF FINANCIAL OFFICER TRATON GROUP
Slide 115: Today's Agenda
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT TODAY'S AGENDA 01. INTRODUCTION 02. COMPANY HIGHLIGHTS 03. INDUSTRY AND MARKET ENVIRONMENT 04. TRATON GROUP Brand Performance | Cooperations & Synergies | Global Expansion | Customer Focused Innovation 05
Slide 116: Global expansion through strong alliance partners
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT GLOBAL EXPANSION GLOBAL EXPANSION THROUGH STRONG ALLIANCE PARTNERS Associates Strategic partner A B C Technology cooperation and Intention to localize MAN truck in China; e-mobility, procurement and techn
Slide 117: Strong governance steering among alliance partners
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT GLOBAL EXPANSION STRONG GOVERNANCE STEERING AMONG ALLIANCE PARTNERS BASED ON OUR GUIDING PRINCIPLES COMPRISING THREE GOVERNANCE LEVELS TO EFFICIENTLY ORCHESTRATE ALLIANCE ACTIVITIES1 Win-win Trusted long
Slide 118: Alliance agreement with Navistar
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT GLOBAL EXPANSION A OVERVIEW AND OBJECTIVES OF ALLIANCE AGREEMENT WITH NAVISTAR OVERVIEW OBJECTIVES Technology cooperation: joint powertrain Common powertrain systems give Navistar access to excellent powe
Slide 119: Cooperation agreement with Sinotruk
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT GLOBAL EXPANSION B OVERVIEW AND OBJECTIVES OF COOPERATION AGREEMENT WITH SINOTRUK OVERVIEW OBJECTIVES Localization of MAN truck Intention to localize MAN heavy-duty truck in world’s largest market Long-te
Slide 120: Cooperation agreement with Hino
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT GLOBAL EXPANSION C OVERVIEW AND OBJECTIVES OF COOPERATION AGREEMENT WITH HINO OVERVIEW OBJECTIVES E-Mobility cooperation Shared development efforts and combined marketing of products – Hino with largest r
Slide 121: Christian Levin
CHRISTIAN LEVIN CHIEF TECHNOLOGY OFFICER TRATON GROUP
Slide 122: Today's Agenda
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT TODAY'S AGENDA 01. INTRODUCTION 02. COMPANY HIGHLIGHTS 03. INDUSTRY AND MARKET ENVIRONMENT 04. TRATON GROUP Brand Performance | Cooperations & Synergies | Global Expansion | Customer Focused Innovation 05
Slide 123: An innovation leader for over a century
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT CUSTOMER FOCUSED INNOVATION AN INNOVATION LEADER FOR OVER A CENTURY Consórcio 1893 – 1897 1932 World's most 1961 MAN's first 1996 Modular 2004 2010 World's first powerful D20 Common Hybrid city modular bu
Slide 124: Ready for the next wave of technological trends
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT CUSTOMER FOCUSED INNOVATION WE CONTINUE TO BE READY FOR THE NEXT WAVE OF TECHNOLOGICAL TRENDS TRATON GROUP focuses on applications with clear customer value proposition Solutions to all ACE1 trends Custom
Slide 125: What the future might look like
WHAT THE FUTURE MIGHT LOOK LIKE 125
Slide 126: Autonomous driving only in defined areas near term
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT CUSTOMER FOCUSED INNOVATION FULL AUTONOMOUS DRIVING FOR THE NEAR FUTURE ONLY IN DEFINED AREAS. DRIVER ASSISTANCE SYSTEMS TO GROW FURTHER CUSTOMER DRIVEN EXPECTED IMPACT ON TCO BREAKDOWN1 EXPECTED CUSTOMER
Slide 127: Multiple autonomous driving solutions today
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT CUSTOMER FOCUSED INNOVATION ALREADY TODAY TRATON GROUP HAS MULTIPLE SOLUTIONS FOR AUTONOMOUS DRIVING ON THE WAY… Scania project in mining system MAN project with German • Autonomous vehicle operates Feder
Slide 128: Pipeline in autonomous technologies is strong
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT CUSTOMER FOCUSED INNOVATION … AND THE PIPELINE IN AUTONOMOUS TECHNOLOGIES IS STRONG COMPREHENSIVE PLATFORM OVERVIEW – ENVIRONMENTAL PERCEPTION TO ENABLE AUTONOMY The sensor setup is: • Multimodal for redu
Slide 129: What the future might look like
WHAT THE FUTURE MIGHT LOOK LIKE V2V and V2X communication 129
Slide 130: Connectivity is a reality today
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT CUSTOMER FOCUSED INNOVATION CONNECTIVITY IS ALREADY A REALITY TODAY – VISIBLE UPSIDE FOR CUSTOMERS AND FOR TRATON GROUP EXPECTED UPSIDE FOR EXPECTED IMPACT ON TCO BREAKDOWN1 EXPECTED UPSIDE FOR CUSTOMERS2
Slide 131: Variety of connected services solutions
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT CUSTOMER FOCUSED INNOVATION VARIETY OF CONNECTED SERVICES SOLUTIONS INTRODUCED SCANIA SERVICE OFFERING – SELECTED EXAMPLES MAN T&B SERVICE OFFERING – SELECTED EXAMPLES Scania Zone – position-based service
Slide 132: Recap: connectivity at Scania
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT CUSTOMER FOCUSED INNOVATION RECAP: CONNECTIVITY AT SCANIA Connected vehicles on the road What data does Scania have? How can Scania monetize the data? • Customers pay for reduced TCO... and Scania benefit
Slide 133: Multiple partnerships for new business models
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT CUSTOMER FOCUSED INNOVATION MULTIPLE PARTNERSHIPS ESTABLISHED TO EXPLORE NEW BUSINESS MODELS & LOGISTICS SOLUTIONS AND ACQUIRE CRUCIAL KNOW-HOW RIO SOLERA PARTNERSHIP SELECTED INVESTMENTS TRATON GROUP con
Slide 134: What the future might look like
WHAT THE FUTURE MIGHT LOOK LIKE 134
Slide 135: Adoption of e-mobility driven by TCO and regulation
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT CUSTOMER FOCUSED INNOVATION ADOPTION OF E-MOBILITY DRIVEN BY TCO CONSIDERATIONS AND REGULATORY ENVIRONMENT CUSTOMER DRIVEN EXPECTED IMPACT ON TCO BREAKDOWN1 EXPECTED CUSTOMER VALUE2 INNOVATION EXAMPLES Re
Slide 136: Electric solutions already in operation
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT CUSTOMER FOCUSED INNOVATION ELECTRIC SOLUTIONS ARE ALREADY IN OPERATION TODAY AND NEW PROTOTYPES ARE REGULARLY TESTED IN COLLABORATION WITH CUSTOMERS VEHICLES IN REGULAR OPERATION OR IN PRACTICAL TRIALS P
Slide 137: E-mobility portfolio pipeline until 2025
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT CUSTOMER FOCUSED INNOVATION TRATON GROUP E-MOBILITY PORTFOLIO CONTINUOUSLY BEING DEVELOPED WITH FULL PIPELINE UNTIL 2025 AND BEYOND Pilot Series readiness e-Delivery e-Delivery e-Truck e-Truck CitE e-Truc
Slide 138: Cooperation in electrification – modular kit
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT CUSTOMER FOCUSED INNOVATION COOPERATION IN ELECTRIFICATION – SYSTEMATIC APPROACH TO GAIN A MODULAR KIT FOR ALL SEGMENTS AND ALL BRANDS BATTERY PROPULSION CHARGING OTHERS Cells/Modules PHEV/HEV/mHEV Plug (
Slide 139: Common base engine compatible with alternative fuels
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT CUSTOMER FOCUSED INNOVATION COMMON BASE ENGINE (13L) COMPATIBLE WITH CONVENTIONAL AND ALTERNATIVE FUELS COMMON BASE 13L ENGINE (CBE) – PART OF OUR IN THE SHIFT TO ALTERNATIVE FUELS TRATON GROUP EXPECTS TO
Slide 140: Common conventional powertrain and future technology platform
Common conventional powertrain Common future technology platform - ACE 140
Slide 141: Christian Schulz
CHRISTIAN SCHULZ CHIEF FINANCIAL OFFICER TRATON GROUP
Slide 142: Today's Agenda
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT TODAY'S AGENDA 01. INTRODUCTION 02. COMPANY HIGHLIGHTS 03. INDUSTRY AND MARKET ENVIRONMENT 04. TRATON GROUP 05. FINANCIALS 06. WRAP UP 142
Slide 143: Three pillars for success
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT INTRODUCTION THREE PILLARS FOR SUCCESS 1 Realising growth 2 Enhancing performance 3 Leveraging synergies Launch costs for new truck Full upgrade of truck Purchasing (incl. lead buying) absorbed, upside po
Slide 144: Operational performance improvements across all three brands
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT INTRODUCTION OPERATIONAL PERFORMANCE IMPROVEMENTS IN PLACE ACROSS ALL THREE BRANDS Vehicle & Services Phase-out of double Ramp-up/“dual costs” for new Leverage recovering Current Focus production line tru
Slide 145: Future reporting along two separate segments
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT INTRODUCTION FUTURE REPORTING ALONG TWO SEPARATE SEGMENTS Reporting structure Commentary • TRATON GROUP is a 100% subsidiary of Volkswagen AG TRATON GROUP • TRATON GROUP with three consolidated subsidiari
Slide 146: Relevant core KPIs at group and unit level
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT INTRODUCTION RELEVANT CORE KPIS DISCLOSED AT GROUP AND OPERATING UNIT LEVEL Industrial Business Financial GROUP 2017A Scania V&S MAN T&B VWCO Other1 Services Sales Revenue €12.4bn €10.0bn €1.2bn (€0.2bn)
Slide 147: Adjustments to historical operating profit
COMPANY INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT INTRODUCTION LIMITED AMOUNT OF ADJUSTMENTS TO HISTORICAL OPERATING PROFIT FOR TRATON GROUP Operating Profit to Adj. Operating Profit table (€m) Commentary in €m 2016A 2017A 9M 2017A 9M 2018A • Scania prov
Slide 148: Performance improvements and synergies across operating units
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = INTRODUCTION PERFORMANCE IMPROVEMENTS AND SYNERGIES POTENTIAL ACROSS ALL OPERATING UNITS PROVIDING A BASIS FOR PROFITA
Slide 149: Scania V&S: strong truck volume growth
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = SCANIA V&S 1 SCANIA VEHICLES & SERVICES: STRONG TRUCK VOLUME GROWTH Volume delivered (k units and % of total) Volume d
Slide 150: Scania V&S: sales revenue growth
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = SCANIA V&S 1 SCANIA VEHICLES & SERVICES: SALES REVENUE GROWTH ON THE BACK OF STRONG TRUCK SALES Sales revenue (€m) Com
Slide 151: Scania V&S: adj. operating profit
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = SCANIA V&S 1 SCANIA VEHICLES & SERVICES: INCREASE IN VOLUMES ENHANCING ADJ. OPERATING PROFIT Adj. Operating Profit (€m
Slide 152: MAN T&B: volumes
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = MAN T&B 2 MAN TRUCK & BUS: VOLUMES DRIVEN BY POSITIVE ECONOMIC DEVELOPMENT Volume delivered (k units and % of total) V
Slide 153: MAN T&B: sales revenue
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = MAN T&B 2 MAN TRUCK & BUS: PARTICIPATING IN STRONG EU MARKET AND MARKETING CAMPAIGNS CONTRIBUTING TO SALES REVENUE Sal
Slide 154: MAN T&B: adj. operating profit
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = MAN T&B 2 MAN TRUCK & BUS: STRONG SALES INCREASE DRIVING ADJ. OPERATING PROFIT IN 2017 Adj. Operating Profit (€m) Comm
Slide 155: VWCO: volume increase
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = VWCO 3 VWCO: 27.1% INCREASE IN VOLUMES ON THE BACK OF AN ECONOMIC RECOVERY Volume delivered (k units and % of total) V
Slide 156: VWCO: sales revenue growth
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = VWCO 3 VWCO: SUBSTANTIAL SALES REVENUE GROWTH ON THE BACK OF VOLUME AND PRICE RECOVERY Sales revenue (€m) Commentary •
Slide 157: VWCO: break-even reached in 9M 2018
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = VWCO 3 VWCO: BREAK-EVEN REACHED IN 9M 2018 Adj. Operating Profit (€m) Commentary 18 • Cost measures showing visible re
Slide 158: Industrial Business: volumes and order intake
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = IND. BUSINESS 4 INDUSTRIAL BUSINESS: INCREASING VOLUMES AND STRONG ORDER INTAKE Volume delivered1 (k units and % of to
Slide 159: Industrial Business: global network
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = IND. BUSINESS 4 INDUSTRIAL BUSINESS: GLOBAL NETWORK CONTRIBUTING POSITIVELY Sales revenue1 by region (€m and % of tota
Slide 160: Industrial Business: growth beyond core markets
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = IND. BUSINESS 4 INDUSTRIAL BUSINESS: GROWTH BEYOND CORE MARKETS Sales revenue1 (€m) Commentary • Sales revenue driven
Slide 161: Industrial Business: adj. operating profit
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = IND. BUSINESS 4 INDUSTRIAL BUSINESS: ADJ. OPERATING PROFIT EXPANDING Adj. Operating Profit1 (€m) Commentary • Profit e
Slide 162: Industrial Business: income statement overview
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = IND. BUSINESS 4 INDUSTRIAL BUSINESS: INCOME STATEMENT OVERVIEW in €m 2016A 2017A Commentary Sales revenue1 21,023 23,4
Slide 163: Industrial Business: R&D costs
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = IND. BUSINESS 4 INDUSTRIAL BUSINESS: NEW PRODUCT DEVELOPMENT DRIVING RESEARCH AND DEVELOPMENT COSTS Total research and
Slide 164: Industrial Business: optimizing investments
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = IND. BUSINESS 4 INDUSTRIAL BUSINESS: SUSTAINED INITIATIVES TO OPTIMIZE INVESTMENTS Capex spending1 (€m, % of sales rev
Slide 165: Industrial Business: net cash flow
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = IND. BUSINESS 4 INDUSTRIAL BUSINESS: NET CASH FLOW EVOLUTION in €m 2016A 2017A Earnings before tax 440 1,172 Commentar
Slide 166: Financial Services overview
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = FIN. SERVICES 5 FINANCIAL SERVICES: SCANIA HAS ITS OWN FINANCIAL SERVICES UNIT WHILE VW FS PROVIDES FINANCIAL SERVICES
Slide 167: Financial Services: financing income
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = FIN. SERVICES 5 FINANCIAL SERVICES: FINANCIAL SERVICES AS SOLID CONTRIBUTOR AND CATALYST FOR NEW TRUCK SALES Financing
Slide 168: Financial Services: return on equity
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = FIN. SERVICES 5 FINANCIAL SERVICES: STRONG RETURN ON EQUITY OF 15.9% Earnings before tax (€m) Commentary • Strong incr
Slide 169: Financial Services: net portfolio
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = FIN. SERVICES 5 FINANCIAL SERVICES: DEVELOPMENT OF NET PORTFOLIO Net portfolio1 development (€m) Commentary • 14.2% in
Slide 170: TRATON GROUP: income statement overview
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = TRATON GROUP 6 TRATON GROUP: INCOME STATEMENT OVERVIEW in €m 2016A 2017A Commentary Sales revenue 21,915 24,366 Cost o
Slide 171: Track record of performance improvement and further potential
COMPANY INDUSTRY AND Industrial Financial TRATON INTRODUCTION TRATON GROUP FINANCIALS WRAP UP Scania V&S MAN T&B VWCO Business Services Group HIGHLIGHTS MARKET ENVIRONMENT + + = + = TRATON GROUP 6 TRATON GROUP: STRONG TRACK RECORD OF PERFORMANCE IMPROVEMENT AND FURTHER POTENTIAL TO BE REALIZED Adj.
Slide 172: Andreas Renschler
ANDREAS RENSCHLER MEMBER OF THE BOARD OF MANAGEMENT OF VOLKSWAGEN AG CHIEF EXECUTIVE OFFICER TRATON GROUP
Slide 173: Today's Agenda
INVESTMENT INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT TODAY'S AGENDA 01. INTRODUCTION 02. COMPANY HIGHLIGHTS 03. INDUSTRY AND MARKET ENVIRONMENT 04. TRATON GROUP 05. FINANCIALS 06. WRAP UP 173
Slide 174: TRATON GROUP – unique profitable growth profile
INVESTMENT INDUSTRY AND INTRODUCTION TRATON GROUP FINANCIALS WRAP UP HIGHLIGHTS MARKET ENVIRONMENT TRATON GROUP – UNIQUE PROFITABLE GROWTH PROFILE • Scania: Enters harvesting period on New Truck Generation, profits from short- Three strong brands… term improvement of cost base and attractive afterma
Slide 175: Appendix
TRATON APPENDIX
Slide 176: Corporate sustainability – overview
TRATON GROUP CORPORATE SUSTAINABILITY – OVERVIEW • Ability to contribute to leading the transport sector towards sustainability is a prerequisite for TRATON GROUP’s long-term TRATON GROUP success Corporate Sustainability • Transparent sustainability reporting according to GRI standards1 • Corporate
Slide 177: Corporate sustainability at Scania
CORPORATE SUSTAINABILITY AT SCANIA DRIVING THE SHIFT TOWARDS A SUSTAINABLE TRANSPORT SYSTEM Sustainable transport: Doing the right things Responsible business: Doing things right Sustainable transport KPIs Business area Selected targets Energy • Ecolution by Scania • Driver training and coaching 1 E
Slide 178: Corporate sustainability at MAN T&B/VWCO
CORPORATE SUSTAINABILITY AT MAN T&B/VWCO STRUCTURED APPROACH APPLIED TO DERIVE MAN/VWCO SUSTAINABILITY ACTION FIELDS SUSTAINABILITY ACTION FIELDS • Reduce • Reduce greenhouse gas, • Allocation relevance greenhouse gas pollutant emission of CS standards • Focus on global challenges Identification of
Slide 179: Scania – deep dive: captive financing network
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE SCANIA SCANIA – DEEP DIVE: SCANIA’S CAPTIVE FINANCING NETWORK SHARE OF VEHICLES SOLD WITH FINANCIAL SERVICES SOLUTIONS1 FINANCIAL SERVICES PR
Slide 180: MAN T&B: selected case studies
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE MAN T&B MAN T&B: REPLICATE GERMAN MARKET SUCCESS STORY IN EUROPEAN FOCUS MARKETS – SELECTED CASE STUDIES – HOW CAN WE EXPAND OUR MARKET SHARE
Slide 181: MAN T&B: selected case studies
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE MAN T&B MAN T&B: REPLICATE GERMAN MARKET SUCCESS STORY IN EUROPEAN FOCUS MARKETS – SELECTED CASE STUDIES – HOW CAN WE EXPAND OUR MARKET SHARE
Slide 182: MAN T&B: selected case studies
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE MAN T&B MAN T&B: REPLICATE GERMAN MARKET SUCCESS STORY IN EUROPEAN FOCUS MARKETS – SELECTED CASE STUDIES – HOW CAN WE EXPAND OUR MARKET SHARE
Slide 183: MAN T&B – market share following product launches
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE MAN T&B MAN T&B – LAUNCH HIGH QUALITY PRODUCT PORTFOLIO MAN MARKET SHARE FOLLOWING NEW PRODUCT LAUNCHES TGS / TGX TGA (2007) Next Truck Gener
Slide 184: MAN T&B – expand aftersales and service offering
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE MAN T&B MAN T&B – EXPAND AFTERSALES AND SERVICE OFFERING AS THE MAIN LAYER OF GROWTH: SPECIFIC MEASURES IN PLACE DRIVING FURTHER POTENTIAL Ne
Slide 185: MAN T&B – turnaround with PACE2017
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE MAN T&B MAN T&B – MAN TURNAROUND WITH VISIBLE EFFECTS FROM OPERATIONAL IMPROVEMENT PROGRAM PACE2017 – TARGETS PER MODULE • Complexity managem
Slide 186: MAN T&B Operational Excellence Program (1/2)
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE MAN T&B MAN T&B – MAN T&B OPERATIONAL EXCELLENCE PROGRAM (1/2) SELECTED TARGETED SELECTED INITIATIVES TARGET EFFECTS GROSS IMPACT COUNTER EFF
Slide 187: MAN T&B Operational Excellence Program (2/2)
COMPANY INDUSTRY AND PROFITABILITY INTRODUCTION TRATON GROUP FINANCIALS WRAP UP GROWTH EXECUTION HIGHLIGHTS MARKET ENVIRONMENT AND SYNERGIES BRAND PERFORMANCE MAN T&B MAN T&B – MAN T&B OPERATIONAL EXCELLENCE PROGRAM (2/2) SELECTED TARGETED SELECTED INITIATIVES TARGET EFFECTS GROSS IMPACT COUNTER EFF
Slide 188: Glossary
GLOSSARY ACE Autonomous driving, connectivity, electrification/alternative fuels MAN T&B MAN Truck & Bus Commercial vehicles player which has partnership with TRATON Medium Duty Truck (MDT) Comprises trucks with weight between 6 and 15 tons Alliance Partner GROUP NTG Scania’s new truck generation In