Traton Se · XETR:8TRA
Traton — FY2019 Earnings Presentation
47 slides from Traton's earnings presentation, Mar 23, 2020
Slide 1: FY 2019 Results
Munich, 23 March 2020 FY 2019 RESULTS ISIN: DE000TRAT0N7 WKN: TRAT0N Bloomberg Ticker: 8TRA GY / 8TRA SS http://ir.traton.com
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: Contents
CONTENTS TRATON GROUP Highlights Segment Industrial Business (MAN T&B, Scania V&S and VWCO) Segment Financial Services Outlook Appendix March 23, 2020 / Investor Relations / FY 2019 Results 3
Slide 4: TRATON Group has continuously delivered on its strategic goals in 2019
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX 5 TRATON GROUP HAS CONTINUOUSLY DELIVERED ON ITS STRATEGIC GOALS IN 2019 TRATON Innovation Day 2019 Financial PERFORMANCE TRATON WANTS TO BECOME LEADER IN E-MOBILITY 4 OF THE GROUP 7.0% Operating return on sales Order intake (i
Slide 5: TRATON Group Highlights
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX TRATON GROUP HIGHLIGHTS • Unit sales up by +4% to a year record of 242,219 units. • Sales revenue increased by +6%1 to €26,901 mn; all brands contributed. FY 2019 • Operating profit improved by +25% to €1,884 mn2. • RoS 7.0% (+
Slide 6: Group – 2019, a year with two faces
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – 2019, A YEAR WITH TWO FACES New registrations EU28+21 (in %) TRATON truck unit sales2 (in %) 60 2019 55 2019 51 49 50 50 Average seasonality 2017 - 2018 45 40 H1 H2 H1 H2 • European truck market in 2019 with a exception
Slide 7: Group – Segment Highlights Q4 / FY 2019
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – SEGMENT HIGHLIGHTS Q4 / FY 2019 Industrial Business (IB) Financial Services (FS) Q4 19 Y-o-Y FY 19 Y-o-Y Q4 19 Y-o-Y FY 19 Y-o-Y 2 Order intake (units) 57,532 -9% 227,240 -7% Net portfolio (€bn) 9.9 +14% Unit sales (uni
Slide 8: Group – Sales Revenue and Return on Sales
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – SALES REVENUE AND RETURN ON SALES SALES REVENUE (€mn) Return on sales1 (%) Growth Y-o-Y (%) -3% +6% +7% +6% +4% 7,3032 7,128 7,075 26,901 6,5582 6,413 6,286 6,0512 6,0142 19,827 8.2 7.6 13,541 7.3 6.4 6.5 5.53 5.7 4.13
Slide 9: Group – Unit Sales Development
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – UNIT SALES DEVELOPMENT UNIT SALES (units) -5% Growth Y-o-Y (%) 66,664 66,173 +7% +10% +8% +4% 63,128 58,913 6,236 57,163 6,014 242,219 53,221 6,139 54,194 55,755 5,721 4,210 5,551 21,496 Buses 5,112 5,142 179,091 15,775
Slide 10: Group – Sales Growth in Core Markets
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – SALES GROWTH IN CORE MARKETS Truck unit sales in core markets1; 2019 (units) Growth FY (Y-o-Y) Market growth3 Q1 31,948 2 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 H
Slide 11: Industrial Business – Order Intake
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX INDUSTRIAL BUSINESS – ORDER INTAKE ORDER INTAKE (units) Book-to-bill1 (ratio in units) Growth Y-o-Y (%) 1.27 1.02 0.98 0.95 1.13 0.85 0.88 0.91 -4% -6% -6% -7% -9% 227,240 67,359 63,246 64,357 60,184 57,532 56,134 52,925 169,70
Slide 12: Industrial Business – Unit Sales
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX INDUSTRIAL BUSINESS – UNIT SALES UNIT SALES (units) Growth Y-o-Y (%) -5% +7% +10% +8% +4% 66,664 66,173 63,128 242,219 58,913 57,163 54,194 55,755 53,221 179,091 123,336 57,163 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1
Slide 13: Industrial Business – Sales Revenue and Return on Sales
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX INDUSTRIAL BUSINESS – SALES REVENUE AND RETURN ON SALES SALES REVENUE (€mn) Return on sales1 (%) Growth Y-o-Y (%) -2% +9% +10% +9% +6% 7,124 7,015 6,953 26,444 6,303 6,305 6,171 5,765 5,770 19,491 7.9 6.9 7.3 13,320 6.1 6.0 5.1
Slide 14: Industrial Business – Sales Revenue by Brand and Return on Sales
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX INDUSTRIAL BUSINESS – SALES REVENUE BY BRAND AND RETURN ON SALES SALES REVENUES Q4 2019 (€mn) SALES REVENUES FY 2019 (€mn) Growth rate (%) Return on sales1 (%) Growth rate (%) Return on sales1 (%) 8.5% 2.8% 6.3% 5.2% 10.8% 3.3%
Slide 15: Industrial Business – Indebtedness
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX INDUSTRIAL BUSINESS – INDEBTEDNESS NET FINANCIAL INDEBTEDNESS / NET LIQUIDITY BRIDGE (€mn) Net Debt 1,460 (2,032) 1,075 (227) (2,085) 309 (Net Cash) (1,500) Net financial Capital Acquisitions Change in working IFRS 16 Other Net
Slide 16: Industrial Business – Solvency Ratios
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX INDUSTRIAL BUSINESS – SOLVENCY RATIOS GEARING RATIO1 (in %) NET DEBT / ADJUSTED EBITDA2 (x) -9.8bpt -0.4bpt -1 -0.1 -5 -0.2 -5 -0.2 -9 -0.4 -11 -0.5 FY 18 Q1 19 H1 19 9M 19 FY 19 FY 18 Q1 19 H1 19 9M 19 FY 19 Note: Industrial B
Slide 17: Scania Vehicles & Services – Summary FY 2019
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX SCANIA VEHICLES & SERVICES – SUMMARY FY 2019 • Order intake declined by -9%; order intake for trucks was down by -8% mainly because of negative trends in the EU28+2 region, mainly the UK, Germany and Poland. • Sales of trucks u
Slide 18: Scania Vehicles & Services – Key Figures per Quarter
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX SCANIA VEHICLES & SERVICES – KEY FIGURES PER QUARTER Order intake (k units) Unit sales (k units) Book-to-bill1 (ratio in units) -11% -11% 0bpt 29.8 1.31 26.7 27.8 27.9 1.13 25.0 24.1 23.6 23.2 24.7 22.7 22.1 22.2 22.6 21.9 0.94
Slide 19: MAN Truck & Bus – Summary FY 2019
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX MAN TRUCK & BUS – SUMMARY FY 2019 • Order intake for trucks down by -17% mainly due to accelerated negative trends in the EU28+2 region. • Truck sales up by +2% primarily driven by MAN TGE (Truck sales excluding MAN TGE -5%). •
Slide 20: MAN Truck & Bus – Key Figures per Quarter
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX MAN TRUCK & BUS – KEY FIGURES PER QUARTER Order intake (k units) Unit sales (k units) Book-to-bill1 (ratio in units) -7% -15% 30.2 29.9 30.5 1.37 -8bpt 29.4 29.2 29.1 28.4 25.0 24.9 27.0 25.0 1.20 24.1 23.0 22.5 1.09 1.05 20.8
Slide 21: Simple MAN Formula for Structural Transformation Need
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX 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
Slide 22: Structural Improvements Across MAN
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX 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 contr
Slide 23: Volkswagen Caminhões e Ônibus – Summary FY 2019
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX VOLKSWAGEN CAMINHÕES E ÔNIBUS – SUMMARY FY 2019 • Brazilian truck market continued to recover in tandem with economic upturn; truck unit sales increased by +22%. • Export sales declined on sluggish demand in other relevant mark
Slide 24: Volkswagen Caminhões e Ônibus – Key Figures per Quarter
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX VOLKSWAGEN CAMINHÕES E ÔNIBUS – KEY FIGURES PER QUARTER Order intake (k units) Unit sales (k units) Book-to-bill1 (ratio in units) +6% +15% -9bpt 11.1 10.7 11.2 1.12 10.1 10.4 10.0 9.8 10.5 10.3 1.03 0.96 0.99 0.99 1.03 9.7 8.9
Slide 25: Financial Services – Sales Revenue and Return on Sales
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX FINANCIAL SERVICES – SALES REVENUE AND RETURN ON SALES SALES REVENUE (€mn) Return on sales1 (%) Growth Y-o-Y (%) +13% +10% +11% +12% +15% 216 215 215 201 203 849 193 186 179 635 19.7 19.1 19.7 419 16.5 17.5 17.1 16.2 17.6 16.2
Slide 26: Financial Services – Net Portfolio and Penetration Rate
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX FINANCIAL SERVICES – NET PORTFOLIO AND PENETRATION RATE NET PORTFOLIO1 (€bn) PENETRATION RATE2 (%) COMMENTARY Growth Y-o-Y (%) Growth Y-o-Y (%) • By the end of FY 2019 the +14% +17% +18% +14% -37bpt +7bpt -33bpt -95bpt customer
Slide 27: Challenges & Changes – Macroeconomic Environment 2019 and 2020
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX CHALLENGES & CHANGES – MACROECONOMIC ENVIRONMENT 2019 AND 2020 Political environment Challenging and changing Numerous crises and conflicts Pandemic spread Covid-19 (Corona) Ambitious CO2- reduction Global economic situation St
Slide 28: Due to EU27+3 Market Downturn First Measures Have Been Taken
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX 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% Y-o-Y in Q4 2019. -10% to -20% • Additional closing days w
Slide 29: Outlook – Truck Market
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX OUTLOOK – TRUCK MARKET TRUCK MARKET DEVELOPMENT (˃ 6t, k units) EU27+31 SOUTH AMERICA 372 375 126 144 2020E: -10% to -20% 2009 2011 2013 2015 2017 2019 2020E 2009 2011 2013 2015 2017 2019 2020E GERMANY BRAZIL 84 87 2020E: +5% t
Slide 30: Outlook Group – Track Record, Outlook 2020 and Over-the-Cycle Target
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX 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 y
Slide 31: Appendix
Appendix March 23, 2020 / Investor Relations / FY 2019 Results 31
Slide 32: Contacts Investor Relations
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX CONTACTS INVESTOR RELATIONS Rolf Woller Helga Würtele Thomas Paschen Philipp Lotz + 49 89 360 98 335 + 49 151 163 58 157 + 49 89 360 98 474 + 49 89 360 98 283 rolf.woller@traton.com helga.wuertele@traton.com thomas.paschen@trat
Slide 33: Financial Calendar
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX FINANCIAL CALENDAR DATE EVENT / PUBLICATION OF March 23, 2020 Annual Press Conference & Annual Report 2019 May 4, 2020 Q1 2020 May 28, 2020 Annual General Meeting 2020 July 31, 2020 Half-year 2020 November 2, 2020 9-month 2020
Slide 34: Share Data
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX SHARE DATA SHARE DATA ISIN (International Securities Identification Number) DE000TRAT0N7 WKN (German Security Identification number) TRAT0N Common code 196390065 Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) Stock exch
Slide 35: Innovation Day 2019 – TRATON Wants to Become a Leader in E-Mobility
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX INNOVATION DAY 2019 – TRATON WANTS TO BECOME A LEADER IN E- MOBILITY Within 10-15 years, one of three of our vehicles will have an alternative powertrain. In most cases it is electric Common modular electric powertrain toolki
Slide 36: Group – Regional Truck Unit Sales Development
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – REGIONAL TRUCK UNIT SALES DEVELOPMENT1 EU27+32 (units) Germany (units) South America (units) Brazil (units) -16% 33,652 34,482 31,948 29,728 28,360 27,264 26,041 25,855 +7% +7% 13,750 -18% 12,543 10,826 12,670 10,402 11
Slide 37: Group – Operating Profit and Return on Sales
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – OPERATING PROFIT AND RETURN ON SALES OPERATING PROFIT (€mn) Return on sales1 (%) Growth Y-o-Y (%) +27% +25% +34% +25% -1% 585 1,884 477 490 405 407 401 1,482 386 1,075 245 8.2 7.3 7.6 6.4 6.5 5.52 5.7 490 4.12 7.6 7.9 7
Slide 38: Scania Vehicles & Services – Key Figures Cumulative
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX SCANIA VEHICLES & SERVICES – KEY FIGURES CUMULATIVE Order intake (k units) Unit sales (k units) Book-to-bill1 (ratio in units) Growth Y-o-Y (%) Growth Y-o-Y (%) Growth Y-o-Y (%) -10% -7% -8% -9% +4% +10% +9% +3% -18bpt -18bpt -
Slide 39: MAN Truck & Bus – Key Figures Cumulative
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX MAN TRUCK & BUS – KEY FIGURES CUMULATIVE Order intake (k units) Unit sales (k units) Book-to-bill1 (ratio in units) Growth Y-o-Y (%) Growth Y-o-Y (%) Growth Y-o-Y (%) -1% -8% -10% -11% +13% +10% +6% +2% -17bpt -20bpt -17bpt -14
Slide 40: Volkswagen Caminhões e Ônibus – Key Figures Cumulative
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX VOLKSWAGEN CAMINHÕES E ÔNIBUS – KEY FIGURES CUMULATIVE Order intake (k units) Unit sales (k units) Book-to-bill1 (ratio in units) Growth Y-o-Y (%) Growth Y-o-Y (%) Growth Y-o-Y (%) +12% +15% +15% +13% +12% +18% +15% +15% 0bpt -
Slide 41: Group – Condensed Income Statement
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – CONDENSED INCOME STATEMENT March 23, 2020 / Investor Relations / FY 2019 Results 41
Slide 42: Group – Condensed Balance Sheet
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – CONDENSED BALANCE SHEET March 23, 2020 / Investor Relations / FY 2019 Results 42
Slide 43: Group – Condensed Cash Flow Statement
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – CONDENSED CASH FLOW STATEMENT March 23, 2020 / Investor Relations / FY 2019 Results 43
Slide 44: Group – Net Liquidity
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – NET LIQUIDITY March 23, 2020 / Investor Relations / FY 2019 Results 44
Slide 45: Group – Adjustments
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – ADJUSTMENTS Adjustments (€ million) 2016 2017 2018 2019 OPERATING PROFIT 727 1,512 1,513 1,884 Expense for antitrust proceedings (Scania) 403 Release of restructuring provisions at MAN Truck & Bus -50 Expenses in relati
Slide 46: Industrial Business – Adjusted EBITDA
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX INDUSTRIAL BUSINESS – ADJUSTED EBITDA Note: Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reflects the Industrial Business segment’s operating performance before interest, taxes, depreciation
Slide 47: Industrial Business – Return on Investment
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX INDUSTRIAL BUSINESS – RETURN ON INVESTMENT March 23, 2020 / Investor Relations / FY 2019 Results 47