Traton Se · XETR:8TRA
Traton — FY2019 Earnings Presentation
28 slides from Traton's earnings presentation, Mar 23, 2020
Slide 1: TRATON Group – Annual Press Presentation FY 2019
TRATON GROUP – ANNUAL PRESS PRESENTATION FY 2019 MARCH 23, 2020
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: Agenda
AGENDA 01. TRATON’s strategic framework 02. Company milestones 2019 03. TRATON’s environment 04. Core KPIs FY 2019 3
Slide 4: Clearly defined strategic goals: global champion in the transportation industry
CLEARLY DEFINED STRATEGIC GOALS Creating a GLOBAL CHAMPION IN THE TRANSPORTATION INDUSTRY Leader in PROFITABILITY GLOBAL PRESENCE INNOVATION 4
Slide 5: 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 and Leverage scale through Transforming tran
Slide 6: Agenda
AGENDA 01. TRATON’s strategic frame 02. Company milestones 2019 03. TRATON’s environment 04. Core KPIs FY 2019 6
Slide 7: TRATON Group has continuously delivered on its strategic goals in 2019
TRATON GROUP HAS CONTINUOUSLY DELIVERED ON ITS 5 STRATEGIC GOALS IN 2019 Financial TRATON Innovation Day 2019 PERFORMANCE TRATON WANTS TO BECOME LEADER IN E-MOBILITY 4 OF THE GROUP 7.0% Operating return on sales Order intake (in units) 8TRA TRATON LISTED IN 227,240 New CORPORATE IDENTITY FRANKFURT &
Slide 8: Agenda
AGENDA 01. TRATON’s strategic frame 02. Company milestones 2019 03. TRATON’s environment 04. Core KPIs FY 2019 8
Slide 9: Challenges & changes – macroeconomic environment 2019 and 2020
CHALLENGES & CHANGES – MACROECONOMIC ENVIRONMENT 2019 AND 2020 Political environment Challenging and changing Numerous crises and conflicts Unclear pandemic spread Covid-19 (Corona) Ambitious CO2- Global economic situation reduction Still challenging Overall Uncertainty Difficult trade Downturn tren
Slide 10: Group – sales growth in core markets
GROUP – SALES GROWTH IN CORE MARKETS Truck unit sales in core markets1; 2019 (units) Growth FY (Y-o-Y) Market growth3 2 Q1 31,948 H1 66,430 +3% +0% 9M 92,285 FY 120,645 Q1 8,938 H1 18,822 +5% +2% 9M 26,051 FY 33,645 Q1 10,398 H1 23,068 +20% +15% 9M 36,818 FY 48,350 Q1 9,226 H1 20,732 +32% +34% 9M 33
Slide 11: Agenda
AGENDA 01. TRATON’s strategic frame 02. Company milestones 2019 03. TRATON’s environment 04. Core KPIs FY 2019 11
Slide 12: 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 and Leverage scale through Transforming tran
Slide 13: Snapshot TRATON Group core KPIs FY 2019
Creating a Global Champion Customer Brand Cooperation Global Focused Performance & Synergies Expansion Innovation SNAPSHOT TRATON GROUP CORE KPIS FY 2019 2019 2018 Change in % Trucks and buses (units) Order intake 227,240 243,714 -7% Book to bill1 (ratio in units) 0.91 0.95 -0.04 bpt Unit sales 242,
Slide 14: Deepdive core KPIs FY 2019 – two segments
Creating a Global Champion Customer Brand Cooperation Global Focused Performance & Synergies Expansion Innovation DEEPDIVE CORE KPIS FY 2019 – TRATON‘S TWO SEGMENTS INDUSTRIAL BUSINESS AND FINANCIAL SERVICES 2019 2018 Change in % Industrial Business (€ million) Sales revenue 26,444 24,963 6% Operati
Slide 15: Scania Vehicles & Services – core KPIs FY 2019
Creating a Global Champion Customer Brand Cooperation Global Focused Performance & Synergies Expansion Innovation SCANIA VEHICLES & SERVICES – CORE KPIS FY 2019 2019 2018 Change in % Trucks and buses (units) Order intake 88,739 97,446 -9% Unit sales 99,457 96,475 3% of which trucks 91,680 87,993 4%
Slide 16: MAN Truck & Bus – core KPIs FY 2019
Creating a Global Champion Customer Brand Cooperation Global Focused Performance & Synergies Expansion Innovation MAN TRUCK & BUS – CORE KPIS FY 2019 2019 2018 Change in % Trucks and buses (units) Order intake 100,652 112,915 -11% Unit sales 104,887 102,556 2% of which trucks1 97,524 95,352 2% of wh
Slide 17: Volkswagen Caminhões e Ônibus – core KPIs FY 2019
Creating a Global Champion Customer Brand Cooperation Global Focused Performance & Synergies Expansion Innovation VOLKSWAGEN CAMINHÕES E ÔNIBUS – CORE KPIS FY 2019 2019 2018 Change in % Trucks and buses (units) Order intake 41,103 36,535 13% Unit sales 41,891 36,362 15% of which trucks 35,282 29,018
Slide 18: 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 19: TRATON and Hino procurement joint venture up and running
Creating a Global Champion Customer Brand Cooperation Global Focused Performance & Synergies Expansion Innovation TRATON AND HINO PROCUREMENT JOINT VENTURE UP AND RUNNING - DETERMINEDLY EXECUTING THE GLOBAL CHAMPION STRATEGY Strategic long-term partnership agreed in Apr 2018 Now TRATON & HINO Al
Slide 20: Successful Innovation Day 2019: TRATON wants to become leader in e-mobility
Creating a Global Champion Customer Brand Cooperation Global Focused Performance & Synergies Expansion Innovation SUCCESSFUL 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 c
Slide 21: Outlook – truck market
OUTLOOK – TRUCK MARKET TRUCK MARKET DEVELOPMENT (˃ 6t, k units) EU27+31 SOUTH AMERICA 372 375 144 2020E: -10% to -20% 126 2009 2011 2013 2015 2017 2019 2020E 2009 2011 2013 2015 2017 2019 2020E GERMANY BRAZIL 2020E: +5% to 10% 84 87 97 72 2009 2011 2013 2015 2017 2019 2020E 2009 2011 2013 2015 2017
Slide 22: Outlook Group – recent track record, outlook 2020 and over-the-cycle target
OUTLOOK GROUP – RECENT TRACK RECORD, OUTLOOK 2020 AND OVER-THE-CYCLE TARGET Over-the-cycle RoS FY 2018 FY 2019 2020 Outlook target Moderate decline Unit sales 233.0k 242.2k compared with (Units; Growth in %) +14% +4% previous year Moderate reduction Group sales revenue €25.9bn €26.9bn compared with
Slide 23: Due to EU27+3 market downturn first measures have been taken
DUE TO EU27+3 MARKET DOWNTURN FIRST MEASURES HAVE BEEN TAKEN EU27+3 truck markets1 Measure already taken Production rate reduced for Scania and MAN Truck & Bus by 20% in Q4 2019. -10% to -20% Additional closing days within production and reduction of time accounts (e.g. extension of Christmas br
Slide 24: Simple MAN formula for structural transformation need
SIMPLE MAN FORMULA FOR STRUCTURAL TRANSFORMATION NEED Insufficient financial performance vs competition Urgent need for transformation with focus on… + Game-changing structural measures (current/ future core) Investment needs for new technologies (such as digital services, Sustainable fixed cost
Slide 25: Structural improvements across MAN
TO ACHIEVE OUR ASPIRATION, WE WILL MAKE STRUCTURAL IMPROVEMENTS ACROSS MAN Focus of Transformation On top aspiration Fixed cost (Overhead cost & indirect labor) Direct labor Direct material Margin expansion Transformation contribution to achieve 8% RoS target 25
Slide 26: TRATON performed in challenging environment
TRATON PERFORMED IN CHALLENGING ENVIRONMENT Operating Return on sales up to 7.0% Sales revenues up to EUR 26.9 billion Operating Profit up to EUR 1,9 billion Proposed dividend of EUR 1 per share1 MAN Truck & Bus transformation Moderate decline in sales revenues Due to Corona not possible to state on
Slide 27: TRATON Group – Annual Press Presentation FY 2019
TRATON GROUP – ANNUAL PRESS PRESENTATION FY 2019 MARCH 23, 2020
Slide 28: Contacts Group Communications
CONTACTS GROUP COMMUNICATIONS Julia Kroeber-Riel Sacha Klingner Sebastian Rausch Matthias Karpstein Head of Group Communications Head of Corporate Financial Media Relations Business Media Relations & Governmental Relations Communications julia.kroeber-riel@traton.com sacha.klingner@traton.com sebast