Traton Se · XETR:8TRA
Traton — Q1 2020 Earnings Presentation
39 slides from Traton's earnings presentation, May 4, 2020
Slide 1: 3M 2020 Results
Munich, 04 May 2020 3M 2020 RESULTS ANDREAS RENSCHLER, CEO CHRISTIAN SCHULZ, CFO ISIN: DE000TRAT0N7 WKN: TRAT0N Bloomberg Ticker: 8TRA GY / 8TRA SS http://ir.traton.com
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: Contents
CONTENTS Current Situation TRATON GROUP Highlights Segment Industrial Business Segment Financial Services Status Update Appendix May 04, 2020 / Investor Relations / 3M 2020 Results 3
Slide 4: Current Situation – Business Climate
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX CURRENT SITUATION – BUSINESS CLIMATE An unprecedented situation because of the impact of the corona pandemic and government requirements • Significant decline in demand and supply chain interruptions. •
Slide 5: Current Situation – Our Reaction / Our Priorities
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX CURRENT SITUATION – OUR REACTION / OUR PRIORITIES Countermeasures • Implementation of emergency plan with strong focus on employee health & safety. • Temporary production stops in all plants worldwide. •
Slide 6: Current Situation – Financial Resilience
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX CURRENT SITUATION – FINANCIAL RESILIENCE SOUND BALANCE SHEET POSITION SOLID LIQUIDITY POSITION (Industrial Business, as of March 31, 2020) (Industrial Business, as of April 30, 2020) Equity ratio: solidl
Slide 7: Current Situation – Economic Recovery from COVID-19 Crisis
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX CURRENT SITUATION – ECONOMIC RECOVERY FROM COVID-19 CRISIS LIKELY TO BE DETERMINED BY A COMBINATION OF FACTORS Major drivers expected to influence recovery € Supply disruption Demand disruption Economic
Slide 8: TRATON GROUP Highlights
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX TRATON GROUP HIGHLIGHTS • First impacts of the COVID-19 pandemic visible. • Unit sales down by -20% to 45,990 units. Q1 • Sales revenue decreased by -11% to €5,679 mn. 2020 • Operating profit declined by
Slide 9: Group – Segment Highlights Q1 2020
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – SEGMENT HIGHLIGHTS Q1 2020 Industrial Business (IB) Financial Services (FS) Q1 20 Y-o-Y Q1 20 Y-o-Y 2 Incoming orders (units) 54,161 -16% Net portfolio (€bn) 9.4 +3% Unit sales (units) 45,990 -20
Slide 10: Group – Sales Revenue and Return on Sales
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – SALES REVENUE AND RETURN ON SALES SALES REVENUE (€mn) Return on sales1 (%) Growth Y-o-Y (%) -11% -11% 7,128 7,075 6,413 6,286 5,679 8.2 7.6 6.5 5.7 5,679 2.8 2.8 2.8 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20
Slide 11: Group – Unit Sales Development
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – UNIT SALES DEVELOPMENT UNIT SALES (units) Growth Y-o-Y (%) -20% 66,173 -20% 63,128 57,163 6,014 55,755 5,721 Buses 4,210 5,551 45,990 4,030 1 60,159 57,407 Trucks 52,953 50,204 41,960 45,990 Buse
Slide 12: Group – Unit Sales Growth in Core Markets
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – UNIT SALES GROWTH IN CORE MARKETS Truck unit sales in core markets1; 2020 (units) Growth Q1 (Y-o-Y) Market growth3 Q1 20,783 2 H1 -35% -27% 9M FY Q1 6,117 H1 -32% -26% 9M FY Q1 10,865 H1 +4% ~-10
Slide 13: Industrial Business – Incoming Orders
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX INDUSTRIAL BUSINESS – INCOMING ORDERS INCOMING ORDERS (units) Book-to-bill1 (ratio in units) Growth Y-o-Y (%) 1.13 0.85 0.88 0.91 1.18 -16% -16% 64,357 56,134 57,532 54,161 49,217 54,161 1.18 Q1 19 Q2 19
Slide 14: Industrial Business – Unit Sales
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX INDUSTRIAL BUSINESS – UNIT SALES UNIT SALES (units) Growth Y-o-Y (%) -20% -20% 66,173 63,128 57,163 55,755 45,990 45,990 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 20 H1 20 9M 20 FY 20 • European
Slide 15: Industrial Business – Sales Revenue and Return on Sales
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX INDUSTRIAL BUSINESS – SALES REVENUE AND RETURN ON SALES SALES REVENUE (€mn) Return on sales1 (%) Growth Y-o-Y (%) -12% -12% 7,015 6,953 6,305 6,171 5,564 7.3 7.9 6.0 5.2 5,564 2.4 2.4 Q1 19 Q2 19 Q3 19 Q
Slide 16: Industrial Business – Sales Revenue by Brand and Return on Sales
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX INDUSTRIAL BUSINESS – SALES REVENUE BY BRAND AND RETURN ON SALES SALES REVENUE Q1 2020 (€mn) Growth rate (%) Return on sales1 (%) 8.6% -3.4% 3.1% 2.4% 383 5,564 2,267 (69) -8% -13% 2,982 -12% -11% Scania
Slide 17: Industrial Business – Indebtedness
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX INDUSTRIAL BUSINESS – INDEBTEDNESS NET FINANCIAL INDEBTEDNESS [DEBT] / NET LIQUIDITY [CASH] BRIDGE (€mn) Net debt as of March 31, 2020 amounted to €162 mn, mainly due to the cash outflow of €1,404 mn res
Slide 18: Industrial Business – Leverage Ratios
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX INDUSTRIAL BUSINESS – LEVERAGE RATIOS GEARING RATIO1 (in %) NET DEBT/ADJUSTED EBITDA2 (x) Net debt as of March 31, 2020 amounted to €162 mn, mainly due to the cash outflow of €1,404 mn resulting from the
Slide 19: Financial Services – Sales Revenue and Return on Sales
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX FINANCIAL SERVICES – SALES REVENUE AND RETURN ON SALES SALES REVENUE (€mn) Return on sales1 (%) Growth Y-o-Y (%) +6% +6% 216 215 215 216 203 17.1 17.6 16.2 16.2 12.0 216 12.0 Q1 19 Q2 19 Q3 19 Q4 19 Q1 2
Slide 20: Financial Services – Net Portfolio and Penetration Rate
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX FINANCIAL SERVICES – NET PORTFOLIO AND PENETRATION RATE NET PORTFOLIO1 (€bn) PENETRATION RATE2 (%) COMMENTARY Growth Y-o-Y (%) Growth Y-o-Y (%) • By the end of Q1 2020 the +14% +17% +18% +14% +3% -37bpt
Slide 21: Status Update
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX STATUS UPDATE Business outlook for FY 2020 currently not reliably possible • The environment continues to be characterized by substantial uncertainties regarding the duration and severity of the disrupti
Slide 22: Status Update – Truck Market
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX STATUS UPDATE – TRUCK MARKET Economic effects of COVID-19 pandemic will impact the market development in 2020; a reliable forecast is currently impossible as announced TRUCK MARKET DEVELOPMENT (˃ 6t, k u
Slide 23: Status Update – Recent Track Record and Over-the-Cycle Target
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX STATUS UPDATE – RECENT TRACK RECORD Economic effects of COVID-19 pandemic will impact the market and business development in 2020; a reliable forecast is currently impossible as AND OVER-THE-CYCLE TARGET
Slide 24: Appendix
Appendix May 04, 2020 / Investor Relations / 3M 2020 Results 24
Slide 25: Contacts Investor Relations
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX CONTACTS INVESTOR RELATIONS Rolf Woller Philipp Lotz Head of Treasury & Analysts and Investors, Rating, Investor Relations Debt Capital Markets +49 89 360 98 335 +49 89 360 98 283 rolf.woller@traton.com
Slide 26: Financial Calendar
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX FINANCIAL CALENDAR DATE EVENT / PUBLICATION OF May 4, 2020 3M 2020 Quarterly Statement July 31, 2020 Half-Yearly Financial Report 2020 November 2, 2020 9M 2020 Quarterly Statement TRATON SE Dachauer Str.
Slide 27: Share Data
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX SHARE DATA SHARE DATA ISIN (International Securities Identification Number) DE000TRAT0N7 WKN (German Security Identification number) TRAT0N Common code 196390065 Frankfurt Stock Exchange (Frankfurter Wer
Slide 28: Group – Operating Profit and Return on Sales
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – OPERATING PROFIT AND RETURN ON SALES OPERATING PROFIT (€mn) Return on sales1 (%) Growth Y-o-Y (%) -67% -67% 585 490 407 401 8.2 7.6 6.5 5.7 161 161 2.8 2.8 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3
Slide 29: Industrial Business – Regional Truck Unit Sales Development
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX INDUSTRIAL BUSINESS – REGIONAL TRUCK UNIT SALES DEVELOPMENT1 EU27+32 (units) Germany (units) South America (units) Brazil (units) -35% 34,482 31,948 28,360 25,855 20,783 +4% +5% 13,750 -32% 11,532 12,543
Slide 30: Scania Vehicles & Services – Key Figures per Quarter
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX SCANIA VEHICLES & SERVICES – KEY FIGURES PER QUARTER Incoming orders (k units) Unit sales (k units) Book-to-bill1 (ratio in units) 0bpt -23% -23% 1.13 1.14 26.7 27.9 23.6 23.2 24.7 0.90 22.1 22.2 20.7 0.
Slide 31: MAN Truck & Bus – Key Figures per Quarter
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX MAN TRUCK & BUS – KEY FIGURES PER QUARTER Incoming orders (k units) Unit sales (k units) Book-to-bill1 (ratio in units) +13bpt -19% -27% 29.9 29.1 28.4 1.33 1.20 25.0 24.9 24.1 25.0 20.8 22.5 0.93 18.2 0
Slide 32: Volkswagen Caminhões e Ônibus – Key Figures per Quarter
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX VOLKSWAGEN CAMINHÕES E ÔNIBUS – KEY FIGURES PER QUARTER Incoming orders (k units) Unit sales (k units) Book-to-bill1 (ratio in units) +7% 0% +6bpt 11.1 10.7 11.2 0.99 0.99 1.03 0.97 10.4 9.8 10.5 10.3 9.
Slide 33: Group – Income Statement
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – INCOME STATEMENT May 04, 2020 / Investor Relations / 3M 2020 Results 33
Slide 34: Group – Balance Sheet: Assets
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – BALANCE SHEET: ASSETS May 04, 2020 / Investor Relations / 3M 2020 Results 34
Slide 35: Group – Balance Sheet: Equity
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – BALANCE SHEET: EQUITY May 04, 2020 / Investor Relations / 3M 2020 Results 35
Slide 36: Group – Cash Flow Statement (1)
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – CASH FLOW STATEMENT (1) May 04, 2020 / Investor Relations / 3M 2020 Results 36
Slide 37: Group – Cash Flow Statement (2)
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – CASH FLOW STATEMENT (2) May 04, 2020 / Investor Relations / 3M 2020 Results 37
Slide 38: Group – Net Liquidity
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – NET LIQUIDITY May 04, 2020 / Investor Relations / 3M 2020 Results 38
Slide 39: Group – Adjustments
CURRENT SITUATION GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES STATUS UPDATE APPENDIX GROUP – ADJUSTMENTS Adjustments (€mn) 2016 2017 2018 2019 3M 2020 OPERATING PROFIT 727 1,512 1,513 1,884 161 Expense for antitrust proceedings (Scania) 403 Release of restructuring provisions at MAN Truc