Traton Se · XETR:8TRA
Traton — Q1 2020 Earnings Presentation
31 slides from Traton's earnings presentation, May 4, 2020
Slide 1: TRATON GROUP – Press Conference Call 3M 2020
TRATON GROUP – PRESS CONFERENCE CALL 3M 2020 ANDREAS RENSCHLER, CEO CHRISTIAN SCHULZ, CFO MAY 4, 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: 3M 2020 Press Conference – Your Presenters Today
3M 2020 PRESS CONFERENCE – YOUR PRESENTERS TODAY Andreas Christian Julia Renschler Schulz Kroeber-Riel Chief Executive Officer Chief Financial Officer Head of Group Communications & Governmental Relations 3
Slide 4: Agenda
AGENDA 1. Challenging environment 2020 2. TRATON’s strategic framework 3. Core KPIs 3M 2020 4. Going forward 5. Q&A 4
Slide 5: Overall Challenging Environment: Status 2020
OVERALL CHALLENGING ENVIRONMENT: STATUS 2020 Numerous crises Global economy collapsing as a result and conflicts of corona virus pandemic Ambitious CO2- Worldwide pandemic reduction spread COVID-19 Difficult trade Overall downturn Political environment is relations worldwide in the industry challeng
Slide 6: Global Economic Outlook 2020 Significantly Deteriorated
DEEP DIVE GLOBAL ECONOMY GLOBAL ECONOMIC OUTLOOK 20201 SIGNIFICANTLY DETERIORATED - CONTRACTION IS EXPECTED TO BE WORSE THAN DURING FINANCIAL CRISIS2 GDP forecast1 (%) 6.0 4.4 3.3 2.0 2.2 1.6 1.3 1.4 1,2 1.1 -1.0 -3.0 -5.3 -6.1 -5.9 -6.5 Emerging -7.0 -7.5 Market & World Advanced Developing Economie
Slide 7: Vehicle Utilization Decreased Due to Corona Crisis
DEEP DIVE BUSINESS CLIMATE VEHICLE UTILIZATION DECREASED DUE TO CORONA CRISIS During corona crisis transportation kept the economy and health system running …but other sectors had been interrupted due to production stops and transportation decreased heavily German Toll Index march 2020 Data shows a
Slide 8: Agenda
AGENDA 1. Challenging environment 2020 2. TRATON’s strategic framework 3. Core KPIs 3M 2020 4. Going forward 5. Q&A 8
Slide 9: Our Way to Global Champion Is Based on Four Pillars
OUR WAY TO GLOBAL CHAMPION IS 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 Transformi
Slide 10: Agenda
AGENDA 1. Challenging environment 2020 2. TRATON’s strategic framework 3. Core KPIs 3M 2020 4. Going forward 5. Q&A 10
Slide 11: Group Unit Sales Growth in Core Markets
GROUP UNIT SALES GROWTH IN CORE MARKETS Truck unit sales in core markets1; 2020 (units) Growth 3M (Y-o-Y) Market growth3 2 3M 20,783 H1 -35% -27% 9M FY 3M 6,117 H1 -32% -26% 9M FY 3M 10,865 H1 +4% ~-10% 9M FY 9,649 3M H1 +5% -5% 9M FY 11 1 Excluding MAN TGE vans 2 EU27+3 region (defined as the EU27
Slide 12: Snapshot TRATON Group Core KPIs 3M 2020
SNAPSHOT TRATON GROUP CORE KPIS 3M 2020 3M 2020 3M 2019 Change in % Trucks and buses (units) Order intake 54,161 64,357 -16% Book to bill1 (ratio in units) 1.18 1.13 0.05 bpt Unit sales 45,990 57,163 -20% of which trucks2 41,960 52,953 -21% of which buses 4,030 4,210 -4% Financial key performance in
Slide 13: Deep Dive Core KPIs 3M 2020 – Two Segments
Change in € million DEEP DIVE CORE KPIS 3M 2020 – TRATON‘S TWO SEGMENTS INDUSTRIAL BUSINESS AND FINANCIAL SERVICES 3M 2020 3M 2019 Change in % Industrial Business (€ million) Sales revenue 5,564 6,305 -12% Operating profit 135 457 -70% Operating RoS (in %) 2.4% 7.3% -4.8 pp Capital expenditures1 218
Slide 14: Scania Vehicles & Services – Core KPIs 3M 2020
SCANIA VEHICLES & SERVICES – CORE KPIS 3M 2020 3M 2020 3M 2019 Change in % Trucks and buses (units) Order intake 20,671 26,703 -23% Unit sales 18,184 23,576 -23% of which trucks 16,605 22,186 -25% of which buses 1,579 1,390 14% Financial key performance indicators (€ million) Sales revenue 2,982 3,3
Slide 15: MAN Truck & Bus – Core KPIs 3M 2020
MAN TRUCK & BUS – CORE KPIS 3M 2020 3M 2020 3M 2019 Change in % Trucks and buses (units) Order intake 24,098 29,866 -19% Unit sales 18,166 24,972 -27% of which trucks1 17,060 23,558 -28% of which buses 1,106 1,414 -22% Financial key performance indicators (€ million) Sales revenue 2,267 2,615 -13% O
Slide 16: Volkswagen Caminhões e Ônibus – Core KPIs 3M 2020
VOLKSWAGEN CAMINHÕES E ÔNIBUS – CORE KPIS 3M 2020 3M 2020 3M 2019 Change in % Trucks and buses (units) Order intake 9,517 8,917 7% Unit sales 9,860 9,842 0% of which trucks 8,505 8,342 2% of which buses 1,355 1,500 -10% Financial key performance indicators (€ million) Sales revenue 383 416 -8% Opera
Slide 17: Economic Effects of COVID-19 Will Impact Market Development in 2020
ECONOMIC EFFECTS OF COVID-19 PANDEMIC WILL IMPACT THE MARKET DEVELOPMENT IN 2020; A RELIABLE FORECAST IS CURRENTLY IMPOSSIBLE as announced on March 23, 2020 and confirmed on April 21, 2020 17 For detailed slides see IR presentation 3M 2020
Slide 18: Agenda
AGENDA 1. Challenging environment 2020 2. TRATON’s strategic framework 3. Core KPIs 3M 2020 4. Going forward 5. Q&A 18
Slide 19: Overall Challenging Environment: Status 2020
OVERALL CHALLENGING ENVIRONMENT: STATUS 2020 Numerous crises Global economy collapsing as a result and conflicts of corona virus pandemic Ambitious CO2- Worldwide pandemic reduction spread COVID-19 Difficult trade Overall downturn Political environment is relations worldwide in the industry challeng
Slide 20: Re-start Our Business Balancing Health Risks and Business Needs
DEEP DIVE CHALLENGING COMPANY ENVIRONMENT MOST IMPORTANT IS TO RE-START OUR BUSINESS IN A WAY THAT BALANCES HEALTH RISKS AND BUSINESS NEEDS Start of production planned in four phases with incremental ease of safety measures Vehicles produced exemplary Phase Phase Phase Phase 1 2 3 4 List of potentia
Slide 21: Secured Gradual Re-start of Key Manufacturing Facilities – CW 16
DEEP DIVE CHALLENGING COMPANY ENVIRONMENT SECURED GRADUAL RE-START OF OUR KEY MANUFACTURING FACILITIES TO VERIFY SUPPLY CHAINS Europe CALENDER WEEK 16 Poland (APRIL 13 – APRIL 19, 2020) Kraków Austria Starachowice Steyr Wrezsnia France Angers Sweden Södertälje Germany Munich (HQ) Turkey Nuremberg An
Slide 22: Secured Gradual Re-start of Key Manufacturing Facilities – CW 17
DEEP DIVE CHALLENGING COMPANY ENVIRONMENT SECURED GRADUAL RE-START OF OUR KEY MANUFACTURING FACILITIES TO VERIFY SUPPLY CHAINS Europe CALENDER WEEK 17 Poland (APRIL 20 – APRIL 26, 2020) Kraków Austria Starachowice Steyr Wrezsnia France Angers Sweden Södertälje Germany Munich (HQ) Turkey Nuremberg An
Slide 23: Secured Gradual Re-start of Key Manufacturing Facilities – CW 18
DEEP DIVE CHALLENGING COMPANY ENVIRONMENT SECURED GRADUAL RE-START OF OUR KEY MANUFACTURING FACILITIES TO VERIFY SUPPLY CHAINS Europe CALENDER WEEK 18 Poland (APRIL 27 – MAY 3, 2020) Kraków Austria Starachowice Steyr Wrezsnia France Angers Sweden Södertälje Germany Munich (HQ) Turkey Nuremberg Ankar
Slide 24: Secured Gradual Re-start of Key Manufacturing Facilities – CW 19
DEEP DIVE CHALLENGING COMPANY ENVIRONMENT SECURED GRADUAL RE-START OF OUR KEY MANUFACTURING FACILITIES TO VERIFY SUPPLY CHAINS Europe CALENDER WEEK 19 Poland (MAY 4 – MAY 10, 2020) Kraków Austria Starachowice Steyr Wrezsnia France Angers Sweden Södertälje Germany Munich (HQ) Turkey Nuremberg Ankara
Slide 25: Focus on Safeguarding Liquidity
DEEP DIVE CHALLENGING COMPANY ENVIRONMENT FOCUS ON SAFEGUARDING LIQUIDITY SOLID LIQUIDITY POSITION (as of April 30, 2020) (€bn) 5.5 Strict cash and cost management Unrestricted cash1 totaling more than €2 bn Credit lines totaling more than €5.5 bn 2.0 Re-prioritize of investments and R&D expenditure
Slide 26: There Is No "Next Normal" Without Transportation
DEEP DIVE CHALLENGING COMPANY ENVIRONMENT THERE IS NO “NEXT NORMAL“ WITHOUT TRANSPORTATION 26
Slide 27: Economic Recovery From COVID-19 Crisis Determined by Combination of Factors
DEEP DIVE CHALLENGING COMPANY ENVIRONMENT ECONOMIC RECOVERY FROM COVID-19 CRISIS LIKELY TO BE DETERMINED BY A COMBINATION OF FACTORS Major drivers expected to influence recovery € Economic policy Health and safety measures Supply disruption Demand disruption V-shape scenario Return to pre-shock leve
Slide 28: Enormous Efforts Made to Stabilize Economy and Employment – Now We Need a Re-start
DEEP DIVE CHALLENGING COMPANY ENVIRONMENT ENORMOUS EFFORTS HAVE ALREADY BEEN MADE TO STABILIZE ECONOMY AND EMPLOYMENT - NOW WE NEED A RE-START Employees’ health comes first. Targeted measures to protect our employees will enable us to restart production gradually. Coordinated reopening of the indust
Slide 29: Agenda
AGENDA 1. Challenging environment 2020 2. TRATON’s strategic framework 3. Core KPIs 3M 2020 4. Going forward 5. Q&A 29
Slide 30: TRATON GROUP – Press Conference Call 3M 2020
TRATON GROUP – PRESS CONFERENCE CALL 3M 2020 ANDREAS RENSCHLER, CEO CHRISTIAN SCHULZ, CFO MAY 04, 2020
Slide 31: 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