Volkswagen Ag · XETR:VOW
Volkswagen — H1 2020 Earnings Presentation
19 slides from Volkswagen's earnings presentation, Jul 30, 2020
Slide 1: Volkswagen Brand Financial Results January to June 2020
Volkswagen Brand Financial Results January to June 2020 Wolfsburg | July 31, 2020 ID.CROZZ: The vehicle is a concept car
Slide 2: Disclaimer
Disclaimer The following presentations contain forward-looking statements and information on the business development of the Volkswagen Brand. These statements may be spoken or written and can be recognized by terms such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimate
Slide 3: Conference Call on the results January – June 2020
Conference Call on the results January – June 2020 Alexander Seitz Jürgen Stackmann Thomas Küter Member of the Volkswagen Brand Member of the Volkswagen Brand Head of Investor Relations Board of Management for Board of Management for Sales, Volkswagen Brand Controlling and Accounting Marketing and A
Slide 4: COVID-19 with severe impacts on operating performance January to June 2020
COVID-19 with severe impacts on operating performance of the Volkswagen brand from January to June 2020 1.1 million vehicles € 28.6 billion € -1.5 billion -40% -35% € -16bn 5.2% 2019 2020 2019 2020 2019 2020 SALES1) SALES REVENUE OPERATING PROFIT before special items % Return on sales 1) These figur
Slide 5: Massive impact of Corona crisis on total markets
Massive impact of Corona crisis on total markets… World … but we gained market shares in SAM + CN, stable elsewhere -26.7% -28.4% 39,867 VW MS 28,563 North America VW MS 2,998 -25.2% Europe VW MS -38.1% China incl. HK 2,198 -23.0% VW MS South America -40.8% Total market VW Total market VW 01-06 Deli
Slide 6: Regions show different speeds of recovery
Regions show different speeds of recovery Sales in China Sales in in Sales Europe Europe Deliveries to Deliveries to customers customers medium recovery fast recovery back to 100% Jan F M A M J J A S O N Dez Jan F M A M J J A S O N Dez Sales in North America Sales in South America Sales in South Ame
Slide 7: Deliveries to customer show strong signs of recovery in June & July
Deliveries to customer show strong signs of recovery in June & July China incl. HK North America Europe 2 2 -7 -26 -21 -30 -2 -42 -57 -48 -76 -6 April May June July1) April May June July1) April May June July1) South America World -6 -20 -28 -18 -30 -81 -74 -38 April May June July1) April May June J
Slide 8: Positive press feedback on the ID.3 after media event
Positive press feedback on the ID.3 after media event Der neue König unter den Elektroautos?? VW ID.3 (2020): Neuvorstellung – Game changing Volkswagen ID.3 Marktstart – Preise - Info VW ID.3 FULL REVIEW Driving the new Volkswagen EV ID.3 8 ID.3 Pro Performance, 150 kW / combined power consumption i
Slide 9: ID.3 order take on target. Fast conversion of pre-bookers to first mover customers
ID.3 order take on target. Fast conversion of pre-bookers to first mover customers 37,000 YTD conversion of 41% > 15,000 ID.3 Pre-Booker First Mover Customer CW 38 First handover to customer 9 ID.3 Pro Performance, 150 kW / combined power consumption in kWh/100 km: 16.9 - 15.4 (WLTP); 15.4 - 14.5 (N
Slide 10: ID.3 distributed via the agency model in GER & AUT
ID.3 distributed via the agency model in GER & AUT – enabling omni- channel sales Online Info Consulting Configuration Dealer selection Offer Deal Handover Offline Info Consulting Configuration Test Drive Dealer selection Offer Deal Handover Agent 10 ID.3 Pro Performance, 150 kW / combined power con
Slide 11: Rapidly growing BEV/PHEV portfolio – journey to zero has kicked off
Rapidly growing BEV/ PHEV portfolio – journey “to zero” has kicked off Touareg eHybrid1 ID.41 Golf GTE1 Tiguan PA eHybrid1 Q3 Q4 2021 2020 ID.32/3 Arteon PA eHybrid1 Arteon Shooting 1) The vehicle is a near-production prototype 11 Brake eHybrid1 2) ID.3 Pro Performance, 150 kW / combined power consu
Slide 12: Exciting new launches to push brand communication & sales – 2nd half-year
Exciting new launches to push brand communication & sales – 2nd half- year Golf GTD1 GTI Clubsport1 The New Golf Golf GTE1 Tiguan PA Extended launch through Corona Q1 Q2 Q3 Q4 2020 2021 Arteon Shooting Brake Golf 8 Variant Golf GTI1 1) The vehicle is a near-production prototype 12 2) ID.3 Pro Perfor
Slide 13: Temporary shutdowns led to a huge earnings drop, trend heading towards break-even
Temporary production and dealer shutdowns led to a huge earnings drop, however, the monthly trend is clearly heading towards break-even OPERATING PROFIT € million 1,365 2019 2020 921 481 -1,972 Q1 Q2 SALES VOLUME 910 765 976 369 (‘000 unit) -16% -62% 13
Slide 14: Volume losses due to COVID-19 are the main reason for negative earnings development
Volume losses due to COVID-19 are the main reason for the negative earnings development OPERATING PROFIT € billion -3.8 2.3 Mainly measures to reduce CO2 + -1.5 Emissions -2.1 € 0.4 -4.0 -0.2 -0.6 H1 2019 Volume / Product Costs Fixed Costs, H1 2020 Special Items H1 2020 (before special Mix / Prices
Slide 15: We have pushed the brakes on expenditures except for our strategic priorities
We have pushed the brakes on expenditures except for our strategic priorities € billion/ % percentage of sales revenue 1.3 1.3 0.5 -0.5 39%1) 4.5% Total R&D Costs of which capitalized amortization Recognized in the H1 2020 income statement H1 2019: 1.6 0.5 -0.5 1.6 1) Capitalization ratio 15
Slide 16: We have intensively challenged our investment needs but kept the focus on transformation
We have intensively challenged our investment needs but kept the focus on our transformation towards electrification and digitalization € million/ % percentage of sales revenue -5% 1,736 1,651 Efficiency measures Capital discipline 3.9% 5.8% Complexity reduction Strategic target: 4-5% Intra-Group
Slide 17: Cash flow development reflects negative earnings but proactive management of stocks
Cash flow development reflects the negative earnings development but proactive management of stocks provided some relief Net-Cash flow from January to June 2020 Development of net inventories € billion € billion -11% -3.7 -5.6 10.6 9.8 9.4 -1.9 Net cash flow Special Items mainly Net cash flow 30.06.
Slide 18: Our countermeasures to limit the negative impacts of Corona
Our countermeasures to limit the negative impacts of Corona Close alignment of sales and Strong focus on liquidity + Rigourous cost reductions Steering of crisis response production planning Working Capital and spending freeze measures in the regions management + prioritizing Investments 18 ID.3 Pro
Slide 19: Pushing for as much recovery as possible
Pushing for as much recovery as possible The positive aspects of the first half 2020: Successful crisis management in one of the worst economic situations in recent history Significant recovery in monthly development of sales volumes and financial performance Clear reduction of fixed costs, R&