Slide 1: Annual Results Conference 2024
ANNUAL RESULTS CONFERENCE 2024 Christian Levin, CEO Dr. Michael Jackstein, CFO & CHRO Munich, 3/5/2024
Slide 2: Agenda
Annual Results Conference 2024 2 Investor Relations 3/5/2024 AGENDA 1. Key results & highlights 2. Review of financial performance 3. Full year 2024 outlook 4. Backup
Slide 3: Disclaimer
Annual Results Conference 2024 3 Investor Relations 3/5/2024 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
Slide 4: Key Results & Highlights
Annual Results Conference 2024 4 Investor Relations 3/5/2024 KEY RESULTS & HIGHLIGHTS
Slide 5: A very successful year 2023 for Traton Group
Annual Results Conference 2024 5 Investor Relations 3/5/2024 A VERY SUCCESSFUL YEAR 2023 FOR TRATON GROUP Vehicles Sales Adjusted Net cash flow Earnings sold revenue return on sales TRATON per share Operations 338,183 €46.9 bn 8.6% €3.6 bn 1 €4.90 +11% YoY +16% YoY +3.5 pp YoY +€4.2 bn YoY +€2.62 Yo
Slide 6: We continue to deliver – the Traton way forward
Annual Results Conference 2024 6 Investor Relations 3/5/2024 WE CONTINUE TO DELIVER – THE TRATON WAY FORWARD MAN re-alignment successfully TRATON Financial Services TRATON Modular System TRATON advances on its way to executed, supporting strong established and expanded driven forward, first deliveri
Slide 7: We are transforming transportation – 2023 BEV highlights
Annual Results Conference 2024 7 Investor Relations 3/5/2024 WE ARE TRANSFORMING TRANSPORTATION – 2023 BEV HIGHLIGHTS Market launch of the new VWTB starts series production Scania’s battery assembly Milence opens first charging Navistar partners with Scania & sennder establish MAN eTruck of e-Delive
Slide 8: Traton still benefits from a well filled order book
Annual Results Conference 2024 8 Investor Relations 3/5/2024 TRATON STILL BENEFITS FROM A WELL FILLED ORDER BOOK ― Increased production in 2023 with more Incoming orders & Unit sales (k units) resilient supply chains. ― Unit sales up with shortening lead times. Incoming orders Unit sales 110 ― Incom
Slide 9: Review of Financial Performance
Annual Results Conference 2024 9 Investor Relations 3/5/2024 REVIEW OF FINANCIAL PERFORMANCE
Slide 10: Top-line growth driven by high new vehicles sales
Annual Results Conference 2024 10 Investor Relations 3/5/2024 TOP-LINE GROWTH DRIVEN BY HIGH NEW VEHICLES SALES Sales revenue benefited from: Unit sales (k units) Sales revenue (€ bn) ― Tailwinds from market environment and improved supply chains. FY 23 FY 23 Vehicle Services business 338.2 (+11%) 4
Slide 11: Strong underlying earnings and profitability
Annual Results Conference 2024 11 Investor Relations 3/5/2024 STRONG UNDERLYING EARNINGS AND PROFITABILITY Earnings benefited from: Adjusted operating result (€ mn) Adjusted return on sales (%) ― Higher production capacity utilization leading to better fixed cost absorption. FY 23 FY 23 4,034 (+95%)
Slide 12: Strong brand performance
Annual Results Conference 2024 12 Investor Relations 3/5/2024 STRONG BRAND PERFORMANCE TRATON TRATON Operations Financial Services FY Sales revenue 45,736 17,878 14,811 11,042 2,477 1,589 23 (in € mn, YoY) (+16%) (+17%) (+31%) (+5%) (-16%) (+23%) Adjusted RoS 9.3% 12.7% 7.3% 6.6% 8.8% 17.0% (YoY) (+
Slide 13: Earnings per share more than doubled
Annual Results Conference 2024 13 Investor Relations 3/5/2024 EARNINGS PER SHARE MORE THAN DOUBLED Adjusted operating result to earnings after tax, FY 23 (€ mn, YoY in %) ― Earnings per share at €4.90 in FY 23, up from €2.28 in FY 22. ― Dividend proposal of €1.50 per share1, equivalent to 30.6% of e
Slide 14: Strong net cash flow development
Annual Results Conference 2024 14 Investor Relations 3/5/2024 STRONG NET CASH FLOW DEVELOPMENT … ― Strong net cash flow in Q4 23 driven by considerably improved Net cash flow TRATON Operations (€ mn) operating performance and seasonally better working capital development. FY 23 ― Working capital bui
Slide 15: Significantly reduced net debt position
Annual Results Conference 2024 15 Investor Relations 3/5/2024 … LEADING TO SIGNIFICANTLY REDUCED NET DEBT POSITION Net debt of TRATON Operations incl. Corporate Net financial debt bridge, FY 23 (€ mn) Items (CI) reduced by €2.0 bn vs. year-end 2022 driven by: + Strongly improved operating performanc
Slide 16: Full Year 2024 Outlook
Annual Results Conference 2024 16 Investor Relations 3/5/2024 FULL YEAR 2024 OUTLOOK
Slide 17: Optimistic about 2024 despite a more challenging market environment
Annual Results Conference 2024 17 Investor Relations 3/5/2024 OPTIMISTIC ABOUT 2024 DESPITE A MORE CHALLENGING MARKET ENVIRONMENT FY 2023 FY 2024 Outlook TRATON GROUP Unit sales (€ million) 338,183 -5 ‒ +10% Sales revenue (€ million) 46,872 -5 ‒ +10% Operating return on sales (adjusted) (in %) 8.61
Slide 18: Truck demand still high while markets are normalizing
Annual Results Conference 2024 18 Investor Relations 3/5/2024 TRUCK DEMAND STILL HIGH WHILE MARKETS ARE NORMALIZING EU27+31 (k units, >6t) North America (k units, class 6-82) South America (k units, >6t) 600 600 600 500 500 500 445 400 387 400 400 300 300 300 200 200 200 154 100 100 100 0 0 0 09 11
Slide 19: Main themes 2024 on our way to transform transportation
Annual Results Conference 2024 19 Investor Relations 3/5/2024 MAIN THEMES 2024 ON OUR WAY TO TRANSFORM TRANSPORTATION BEV transition Cost improvement measures Navistar profitable growth TRATON Modular System ― Successfully launch new BEV ― Cost efficiency initiatives in all ― Successful ramp-up of ―
Slide 20: Dedicated to be the sustainability leader in the heavy transport sector
Annual Results Conference 2024 20 Investor Relations 3/5/2024 DEDICATED TO BE THE SUSTAINABILITY LEADER IN THE HEAVY TRANSPORT SECTOR Decarbonization Circularity Human Rights Reduce greenhouse gas Decouple the use of resources Respect Human Rights and emissions across the value from our business gro
Slide 21: Key takeaways
Annual Results Conference 2024 21 Investor Relations 3/5/2024 KEY TAKEAWAYS ― We created significant shareholder value in 2023. ― We are highly cash generative and continue to reduce debt. ― We are confident for 2024 with a well filled order book. ― We are driving BEV transformation and invest into
Slide 22: Backup
Annual Results Conference 2024 22 Investor Relations 3/5/2024 BACKUP
Slide 23: Traton Operations – Incoming orders
Annual Results Conference 2024 23 Investor Relations 3/5/2024 TRATON OPERATIONS – INCOMING ORDERS Incoming orders (units) Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 TRATON Operations 54,161 33,270 58,502 70,318 216,251 81,7
Slide 24: Traton Operations – Unit sales
Annual Results Conference 2024 24 Investor Relations 3/5/2024 TRATON OPERATIONS – UNIT SALES Unit sales (units) Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 TRATON Operations 45,990 31,748 49,922 62,520 190,180 60,315 66,135
Slide 25: Traton Group – Sales revenue
Annual Results Conference 2024 25 Investor Relations 3/5/2024 TRATON GROUP – SALES REVENUE Sales revenue (€ mn) Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 TRATON GROUP 6,544 7,076 8,049 8,950 30,620 8,525 9,457 10,563 11,789 40,335 11,186 11,669 11,321
Slide 26: Traton Group – Operating result & return on sales
Annual Results Conference 2024 26 Investor Relations 3/5/2024 TRATON GROUP – OPERATING RESULT & RETURN ON SALES Operating result (€ mn) Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 TRATON GROUP 155 301 186 -248 393 355 306 -52 955 1,564 834 966 895 1,068
Slide 27: Traton Group – Adjusted operating result & adjusted return on sales
Annual Results Conference 2024 27 Investor Relations 3/5/2024 TRATON GROUP – ADJUSTED OPERATING RESULT & ADJUSTED RETURN ON SALES Adj. operating result (€ mn) Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 TRATON GROUP 516 612 195 277 1,599 402 396 549 724
Slide 28: Traton Group – Adjustments
Annual Results Conference 2024 28 Investor Relations 3/5/2024 TRATON GROUP – ADJUSTMENTS Adjustments (€ mn) FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Operating result 81 155 301 186 -248 393 355 306 -52 955 1,564 834 966 895 1,068 3,763 Scania V&
Slide 29: Traton Operations – Cash and liquidity
Annual Results Conference 2024 29 Investor Relations 3/5/2024 TRATON OPERATIONS – CASH AND LIQUIDITY TRATON Operations (€ mn) Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Net cash flow 753 188 -788 786 938 139 -1,534 61 709 -625 737 1,018 649 1,191 3,594
Slide 30: Traton Group – Debt maturity profile
Annual Results Conference 2024 30 Investor Relations 3/5/2024 TRATON GROUP – DEBT MATURITY PROFILE Major financings Maturity profile (€ bn)1 ― €700 mn Schuldschein (tranches of 3y, 5y and 7y) ― Total of €8.3 bn TFL Bonds 8.0 7.6 (tranches of 1.75y to 12y) ― €4.5 bn syndicated RCF 7.0 (undrawn) 5.9 6
Slide 31: Traton Investor Relations team
Annual Results Conference 2024 31 Investor Relations 3/5/2024 TRATON INVESTOR RELATIONS TEAM Ursula Querette Thomas Paschen Head of Investor Relations Analysts and Investors, Consensus, Private Investors +49 152 021 52 400 +49 170 907 34 94 ursula.querette@traton.com thomas.paschen@traton.com Marie
Slide 32: Upcoming events
Annual Results Conference 2024 32 Investor Relations 3/5/2024 UPCOMING EVENTS ― 2024/04/26 3M 2024 Interim Statement ― 2024/06/13 2024 Annual General Meeting ― 2024/07/26 2024 Half-Year Financial Report ― 2024/10/28 9M 2024 Interim Statement TRATON SE Hanauer Strasse 26 80992 Munich Germany www.trat