Volkswagen Ag · XETR:VOW
Volkswagen — H1 2023 Earnings Presentation
39 slides from Volkswagen's earnings presentation, Jul 27, 2023
Slide 1: Investor, Analyst and Media Call H1 2023
Investor, Analyst and Media Call H1 2023 July 27th 2023
Slide 2: Disclaimer
Disclaimer The following presentations as well as remarks/comments and explanations in this context contain forward-looking statements on the business development of the Volkswagen Group. These statements are based on assumptions relating to the development of the economic, political and legal envir
Slide 3: Highlights, Financials
1 Highlights 2 Financials
Slide 4: Recap of the Capital Markets Day (June 21st, 2023)
Recap of the Capital Markets Day (June 21st, 2023) ~200 in-person guests ~16,000 virtual guests at Porsche Experience Center attending live-webcasts 4
Slide 5: Poll: What would be your preferred next CMD event?
Poll: What would be your preferred next CMD event?1 #1 China Strategy 33 #2 Battery Strategy 25 #3 Software Strategy 18 #4 Brand Group Core 9 #5 Mobility Strategy 5 #6 Brand Group Progressive 2 1. Brand Group Sport Luxury and Brand Group Truck & Bus pursue an individual capital market communication
Slide 6: Next building blocks of Volkswagen Group success story
Next building blocks of Volkswagen Group success story Q3 2023 FY 2023 China Brand Group Conference Call Annual Results Strategy Day Core CMD Oct. 26, 2023 March 2024 H1 2024 H2 2024 Volkswagen Group Presentation of FY Update on ‘in China Presentation of Brand CFO A. Antlitz 2023 financial results f
Slide 7: Group TOP 10 program: Focus on execution
Group TOP 10 program: Focus on execution 01 02 03 04 05 Planning Round Products China NAR CARIAD 06 07 08 09 10 Platforms / Battery / Mobility Sustainability Capital Market Technology Charging / Solutions Energy 7
Slide 8: Recap on our China Strategy (CMD June 21, 2023)
Recap on our China Strategy (CMD June 21, 2023) #1 international OEM Tailored, Target & among TOP 3 superior ICV 1 proportionate OP in Chinese market product offerings mid-term >€2.5bn 2 1. ICV = Intelligent connected vehicle | 2. Proportionate operating result accounted at equity within financial r
Slide 9: Group Product & Tech Strategy China
Group Product & Tech Strategy China 100% Tech Co. 1 ADAS New partnerships Anhui Horizon Robotics Xpeng CARIAD Infotainment Local JV partners China Thundersoft FAW & SAIC Expansion of our Technology partnerships Product partnerships development capabilities to enforce customer to broaden & upgrade wi
Slide 10: New strategic partnership with Xiaopeng Motors (XPeng)
New strategic partnership with Xiaopeng Motors (“XPeng”) Acceleration for VW brand Unique Partnership Tailored & competitive Technical collaboration ICV 1 product offerings for the Chinese market Optimize cost base with Strategic minority investment focus on B-segment of approximately 4.99% 2 2 mode
Slide 11: Deepened & differentiated partnerships of Audi brand
Deepened & differentiated partnerships of Audi brand Acceleration for Audi brand Differentiated partnerships Broaden existing Audi FAW NEV Company premium portfolio FAW on track starting end of 2024 Tailored & competitive Focus on PPE platform ICV 1 product offerings Model launches Current portfolio
Slide 12: Volkswagen Group Deliveries improving further
Volkswagen Group Deliveries improving further 900 Deliveries [‘000 units / per month] 2022 2023 4,372 thousand vehicles delivered globally 800 700 600 500 400 01 02 03 04 05 06 07 08 09 10 11 12 Global deliveries BEV deliveries Bottlenecks in H1 +13% YoY increased by logistics impacted Q2 +18% YoY 4
Slide 13: BEV Share of deliveries up significantly year over year
BEV Share of deliveries up significantly year over year Full year target of 8 to 10% in 2023 Quarterly Development Outlook BEV Deliveries [‘000 units] BEV share [%] 2023 BEV Share [%] 8% 206 8-10% 7% 181 160 141 149 7% 111 118 122 5% 99 60 Q1 Q2 Q3 Q4 2021 2022 2023e 2021 2022 2023 13
Slide 14: Highlights, Financials
1 Highlights 2 Financials
Slide 15: Solid H1 figures testify our robust Business Model
Solid H1 figures testify our robust Business Model Vehicle Sales Sales Revenue Operating Result and Margin 2 [m vehicles] [€ bn] [€ bn] Margin [%] Fair value of derivatives outside hedge accounting 3 +18% 156.3 10.0% 7.3% -14% l∑ 13.2l 132.2 0.9 ∑ 11.3 +11% 12.3 13.9 4.0 4.4 (9.3%) (8.9%) +20% Ex 2
Slide 16: Automotive Net Cash impacted by working capital build-up
Automotive Net Cash impacted by working capital build-up Rep. Net Cash Flow [CCR] 1 'Clean' Net Cash Flow 1, 2 Net Liquidity 1 [€ bn, CCR in %] [€ bn] [€ bn] -22% 43.0 33.6 -40% 5.8 +8% 3.4 2.3 2.5 24% 27% Jan-Jun Jan-Jun Jan-Jun Jan-Jun 31 Dec 30 Jun 2022 2023 2022 2023 2022 2023 1. Automotive Divi
Slide 17: Automotive Net Liquidity remains very solid
Automotive Net Liquidity remains very solid Reported Net Cash Flow (€ 2.5bn) Clean Net Cash Flow 1.0 -0.4 -0.6 43.0 2.4 -4.4 thereof € -8.2bn due to increase in inventories -6.5 -1.0 33.6 31 Dec Operating Dividend Diesel M&A Dividend to Special Other 30 Jun 2022 Business of chinese Outflow VW AG Div
Slide 18: Solid Margins across both Divisions
Solid Margins across both Divisions Passenger Cars impacted by € -2.5bn hedging effects in H1 2023 Automotive Division Financial Services Division Passenger Cars 2, 3 Commercial Vehicles 2, 4 Financial Services Operating Result [€ bn] Operating Result [€ bn] Operating Result [€ bn] Margin [%] Margi
Slide 19: Operating Result Passenger Cars
Operating Result Passenger Cars down due to € -3.4bn YoY swing in fair value effects Operating Result 1 Operating Result [€ bn] Margin [%] -3.3 5.3 -24% 9.3 9.3 -2.3 7.1 -1.9 7.1 Thereof: Volume & other: +4.1 Mix: +0.2 10.4% 6.7% Price: +1.0 Jan-Jun Jan-Jun Jan-Jun Volume & Exchange Product Costs F
Slide 20: Steering framework for Group management
Steering framework for Group management Proof points YTD Core Progressive Sport Luxury Truck & Bus • CMD 2023: Strategic alignment and launch of performance programs Architecture • Presentation of ID.2All concept • CARIAD restructuring intensified tech partnerships and “local-for- Software local” ap
Slide 21: Brand Group Core
Brand Group Core Vehicle Sales [‘000 units] Sales Revenue [€ bn] Key Takeaways +25% +30% Strong result driven by 2,450 69 volume, price/mix; 1,956 53 Russia deconsolidation effect of € -0.4bn Jan-Jun Jan-Jun Jan-Jun Jan-Jun VW brand 3.8% RoS 2022 2023 2022 2023 Operating Result 1 [€ bn / RoS] Net Ca
Slide 22: Brand Group Progressive
Brand Group Progressive Vehicle Sales [‘000 units] Sales Revenue [€ bn] Key Takeaways +28% +14% Underlying margin 12.6% 655 30 34 513 Audi 8.0% RoS burdened by fair value effects; underlying margin 10.9% Jan-Jun Jan-Jun Jan-Jun Jan-Jun 2022 2023 2022 2023 Bentley 23.2% RoS Operating Result 1 [€ bn /
Slide 23: Brand Group Sport Luxury
Brand Group Sport Luxury Vehicle Sales [‘000 units] Sales Revenue [€ bn] Key Takeaways +15% +15% Excellent RoS of 19.3% 149 171 16 19 BEV share ~11% Net cash flow declined slightly Jan-Jun Jan-Jun Jan-Jun Jan-Jun to 2022 2023 2022 2023 € 2.2bn due to investments Operating Result 1 [€ bn / RoS] Net C
Slide 24: Software – CARIAD
Software – CARIAD Contracted Licenses [‘000 units] Sales Revenue [€ bn] Key Takeaways +35% +32% Sales revenue up 32% 16,623 0.3 12,338 0.2 NCF in H1 2023 Total benefitted from € 1bn Total intragroup income tax refund Jan-Jun Jan-Jun Jan-Jun Jan-Jun 2022 2023 2022 2023 Negative Operating Operating Re
Slide 25: Battery Business
Battery Business Operating Result [€ bn] Key Takeaways Three sites for cell factories decided: Salzgitter, Valencia and St. Thomas in Canada 0.0 “Gamechanger”: Dry Coating to save ~30% energy, ~15% floor -0.2 space required and millions of Euros production costs Jan-Jun Jan-Jun 2022 2023 Net Cash Fl
Slide 26: Brand Group Trucks – TRATON
Brand Group Trucks – TRATON 1 Vehicle Sales [‘000 units] Sales Revenue [€ bn] Key Takeaways +22% +27% Vehicle sales +22%, 168 22 revenue +27% 138 18 Revenue growth driven by strong volume, positive Jan-Jun Jan-Jun Jan-Jun Jan-Jun price/mix and growth in 2022 2023 2022 2023 vehicle services Operating
Slide 27: Volkswagen Group Mobility
Volkswagen Group Mobility Contracts [‘000 units] Credit Loss Ratio [%] Key Takeaways Financing Leasing Insurance/Services Stable contract volume -1% +3bps 21,984 21,724 0.4 0.28 0.31 No significant increase in credit risks observed 0.0 Jan-Jun Jan-Jun Jan-Jun Jan-Jun Normalization of 2022 2023 2022
Slide 28: Accelerating our transformation efforts
Accelerating our transformation efforts Final phase of ICE investments for product launches starting 2024 and battery invest R&D / Capex – Absolute and Ratio (Automotive Division) [€ bn] CAPEX Reducing complexity / R&D variances ∑ 12.7% ∑ 13.7% ∑ 12.2% ∑ 12.1% ∑ ~14.5% (€ 26.1bn) (€ 31.6bn) ( €13.4b
Slide 29: China Joint Ventures
China Joint Ventures Proportionate Operating Result 2021 until 2023 Key Takeaways ∑ 3,280 Stable deliveries ∑ 3,026 after muted start 722 2,652 ICE market leadership Q4 1,064 strengthened and ongoing hybridization of products 1,156 BEV deliveries up 91% QoQ Q3 690 Q4 ∑ 1,152 Proportionate operating
Slide 30: Outlook for 2023 confirmed
Volkswagen Group Outlook for 2023 1 confirmed Actual H1 Outlook 2022 7 2023 2023 1 Deliveries to customers 8.3m vehicles 4.4m vehicles 9.0m to 9.5m vehicles (+13%) (+8% to +15%) Sales revenue € 279.2bn € 156.3bn € 307bn to € 321bn (+18%) (+10% to +15%) Operating return on sales ² 8.1% 7.3% 7.5% to 8
Slide 31: Investor, Analyst and Media Call H1 2023
Investor, Analyst and Media Call H1 2023 July 27th 2023 31
Slide 32: BACKUP
VOLKSWAGEN a
Slide 33: Our path along our sustainability commitment
Our path along our sustainability commitment 2023 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 1) Association Climate Responsible Raw Volkswagen Group Review 2023 published Material Report Sustainability published on Report 2022 2) ISS ESG Rating: human rights published Volkswagen Group supply ch
Slide 34: Continued resilient Performance of the underlying operating results
Continued resilient Performance of the underlying operating results Underlying Operating Result 1, 2 [€ bn] Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 2.4 7.1 4.3 0.1 4.4 5.1 1.3 7.1 1.2 6.8 4.0 5.7 5.6 Reported operating profit 1 4.7 Fair value of derivatives outside hedge accounting -1.1 Underlying o
Slide 35: Solid Financial Foundation of Automotive Division
Solid Financial Foundation of Automotive Division Resilience further enhanced Balance Sheet Automotive Division [€ bn / in %] 31 December 31 December 30 June 2021 2022 4 2023 350 301 301 300 272 Other liabilities 250 Provisions for pensions 138 136 200 122 Equity (and equity ratio) 150 27 27 41 100
Slide 36: Volkswagen Group H1 – Analysis by Brand and Business Field
Volkswagen Group H1 – Analysis by Brand and Business Field VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 1 H1 2023 H1 2022 1 Brand Group Core 2,450 1,956 68,764 53,010 3,773 2,646 5.5 5.0 Volkswagen Passenger Cars
Slide 37: Volkswagen Group Q2 – Analysis by Brand and Business Field
Volkswagen Group Q2 – Analysis by Brand and Business Field VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 1 Q2 2023 Q2 2022 1 Brand Group Core 1,257 1,038 35,601 28,649 2,031 1,769 5.7 6.2 Volkswagen Passenger Cars
Slide 38: Volkswagen Group Q1 – Analysis by Brand and Business Field
Volkswagen Group Q1 – Analysis by Brand and Business Field VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 1 Q1 2023 Q1 2022 1 Brand Group Core 1,193 918 33,163 24,361 1,742 877 5.3 3.6 Volkswagen Passenger Cars 731
Slide 39: Volkswagen Group
VOLKSWAGEN GROUP