Slide 1: 9M 2023 Interim Statement
Christian Levin, CEO | Dr. Michael Jackstein, CFO & CHRO 9M 2023 Interim Statement, Munich, 10-25-2023 .
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 the TRATON GROUP
Slide 3: Your presenters today
TRATON 9M 2023 Interim Statement Your presenters today Christian Levin Dr. Michael Jackstein CEO CFO and CHRO 10-25-2023 9M 2023 Interim Statement | Investor Relations 3 .
Slide 4: Key results & highlights
TRATON 9M 2023 Interim Statement 1. Key results & highlights 2. Review of financial performance 3. Full year outlook 2023 4. Backup 10-25-2023 9M 2023 Interim Statement | Investor Relations 4 .
Slide 5: Sustained strong earnings performance
Sustained strong earnings performance Q3 2023 Incoming orders 64.4k (-30%) Unit sales 81.4k (+2%) Sales revenue €11.3 bn (+7%) Vehicle Services business €2.1 bn (-3%) Adj. oper. result €955 mn (+€406 mn) Adj. RoS 8.4% (+3.2 pp) 9M 2023 Interim Statement | Investor Relations 5 .
Slide 6: GROUP highlights
TRATON GROUP highlights Navistar Financial re-launches Scania’s battery assembly VWTB delivers Argentina’s retail capabilities starts operations first electric truck First MAN eBus Navistar joins Scania Super: the most fuel-efficient delivered in Africa UN Global Compact truck in comparison test 10-
Slide 7: Demand normalizing with continued high levels of unit sales
Demand normalizing with continued high levels of unit sales Incoming orders Unit sales (k units) (k units) 9M 23 9M 23 189.6 249.5 Incoming orders lower year-on-year (-26%) (+15%) compared to high prior-year basis due to a normalization of demand; book-to-bill at 0.8x. -30% +2% 92.0 88.3 Order book
Slide 8: Demand remains at high level, but normalization of demand and active order book management
Demand remains at high level, but normalization of demand and active order book management Incoming orders & Unit sales (k units) For Scania, MAN and Navistar lead Scania Vehicles & Services MAN Truck & Bus 50 50 Europe: times Demandstillweakening clearly above long-term in some 40 40 markets, avera
Slide 9: Review of financial performance
TRATON 9M 2023 Interim Statement 1. Key results & highlights 2. Review of financial performance 3. Full year outlook 2023 4. Backup 10-25-2023 9M 2023 Interim Statement | Investor Relations 9 .
Slide 10: Top-line growth driven by higher new vehicle sales
Top-line growth driven by higher new vehicle sales Sales revenue (€ bn) 9M 23 34.2 Sales revenue increased to €11.3 bn, up by (+20%) 7% compared to high prior-year basis. +7% 11.8 11.7 Higher unit sales of new vehicles, a favorable 11.3 11.2 10.6 market and product mix and better unit price realizat
Slide 11: Continued strong underlying earnings and profitability
Continued strong underlying earnings and profitability Adj. operating result Adj. RoS (€ mn) (%) 9M 23 9M 23 2,929 8.6 Adjusted operating result and margins (+1,582 mn) (+3.9 pp) with strong growth. +406 Earnings benefited in particular from +3.2 8.9 − higher utilization of production capacity and 1
Slide 12: 9M/Q3 2023 performance and key drivers by brands/segments
9M/Q3 2023 performance and key drivers by brands/segments TRATON Financial Services Sales revenue 12,646 (+18%) 10,643 (+36%) 8,357 (+9%) 1,943 (-15%) 1,158 (+24%) (in € mn, YoY) 9M Adj. RoS (YoY) 12.8% (+5.1 pp) 7.1% (+6.1 pp) 6.5% (+2.2 pp) 9.6% (-1.2 pp) 19.1% (-4.3 pp) Sales revenue 4,027 (+5%)
Slide 13: Positive net cash flow development despite working capital headwinds
Positive net cash flow development due to strong operating performance despite ongoing working capital headwinds Net cash flow TRATON Operations (€ mn) 9M 23 2,403 Strong net cash flow in Q3 23 driven by (€+3,737 mn) considerably improved operating performance. 1,018 €1.4 bn working capital build-up
Slide 14: Net debt position further improved
Net debt position further improved due to strong operating performance Net financial debt bridge, 9M 2023 (€ mn) €-1.1 bn Net debt of TRATON Operations -1,448 incl. Corporate Items reduced by -372 4,223 -527 €1.1 bn vs. year-end 2022 -1,687 -3,118 Debt driven by + strongly improved operating related
Slide 15: Full year outlook 2023
TRATON 9M 2023 Interim Statement 1. Key results & highlights 2. Review of financial performance 3. Full year outlook 2023 4. Backup 10-25-2023 9M 2023 Interim Statement | Investor Relations 15 .
Slide 16: Continued solid truck market demand, while economic uncertainties remain
Continued solid truck market demand, while economic uncertainties remain 600 k units, > 6t - Above-average fleet age 336 Expectation 400 & high pent-up demand EU27+31 2023e - Improving supply chains 200 +10% – +20% - Robust logistics demand 0 and freight rates 09 11 13 15 17 19 21 23 600 k units, cl
Slide 17: Outlook 2023 increased
Outlook 2023 increased: Backed by strong first nine month, TRATON targeting higher RoS and cash flow ranges FY 2022 FY 2023 FY 2023 Outlook Outlook 2023 Half-Year Financial Report 9M 2023 Interim Statement Unit sales 305.5 k +5 to +15% +5 to +15% +12% Sales revenue €40.3 bn +5 to +15% +5 to +15% +32
Slide 18: Key takeaways
Key takeaways TRATON continues to deliver strong performance across brands and businesses. Mastering challenging environment with strong focus on customer needs and market trends. Improved net cash flow of TRATON Operations and net debt position in Industrial Business. Outlook 2023 raised, targeting
Slide 19: Backup
TRATON 9M 2023 Interim Statement 1. Key results & highlights 2. Review of financial performance 3. Full year outlook 2023 4. Backup 10-25-2023 9M 2023 Interim Statement | Investor Relations 19 .
Slide 20: TRATON GROUP – Outlook
TRATON GROUP – Outlook TRATON GROUP 2022 2023e Unit sales (units) 305,485 +5-15% Sales revenue (€ million) 40,335 +5-15% Adjusted RoS (in %) 5.1 7.5-8.5 TRATON Operations 2022 2023e Sales revenue (€ million) 39,554 +5-15% Adjusted RoS (in %) 5.7 8.0-9.0 Net cash flow (€ million) -625 2,300-2,800 Cap
Slide 21: TRATON GROUP – Electric vehicles
TRATON GROUP – Electric vehicles Incoming orders of Unit sales of All TRATON brands with BEV products fully electric vehicles fully electric vehicles across major applications/weight classes (units) (units) 9M 23 9M 23 1,703 1,190 744 709 649 586 608 526 536 424 487 446 397 387 410 417 412 396 Navis
Slide 22: Sales revenue and adjusted operating result by segment
TRATON GROUP – Sales revenue and adjusted operating result by segment Sales revenue, Q3 2023 (€ mn) Adj. operating result, Q3 2023 (€ mn) Adj. RoS (∆ YoY) 11.5% 7.8% 7.3% 10.1% 9.2% 14.8% 8.4% (+3.9 pp) (+6.3 pp) (+1.4 pp) (-1.4 pp) (+3.4 pp) (-7.2 pp) (+3.2 pp) 421 11,321 677 11,018 (+30%) 62 (+7%)
Slide 23: TRATON GROUP – Sales revenue
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 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 TRATON Operations 6,437 6,965 7,900 8,800 30,103 8,363 9,271 10,361 11,559
Slide 24: (Adjusted) operating result and (adjusted) return on sales
TRATON GROUP – (Adjusted) operating result and (adjusted) return on sales Operating result & return on sales Adjusted operating result & adjusted 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 Adj. operating result (€ mn) Q1 21 Q
Slide 25: TRATON GROUP – Adjustments
TRATON GROUP – Adjustments FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Adjustments (€ mn) 20 21 21 21 21 21 22 22 22 22 22 23 23 23 Operating result 81 155 301 186 -248 393 355 306 -52 955 1,564 834 966 895 Scania V&S Expenses in connection with the EU antitrust proceedings 510 510 17 17 Expenses in c
Slide 26: TRATON Operations – Incoming orders and unit sales
TRATON Operations – Incoming orders and unit sales 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 TRATON Operations 54,161 33,270 58,502 70,318 216,251 81,742 89,204 97,371 91,658 359,975 95,594 68,619 91,978 78,392
Slide 27: Incoming orders and unit sales by brands
TRATON Operations – Incoming orders and unit sales by brands Units Q3 2023 Q3 2022 +/- Q3 2023 Q3 2022 +/- Q3 2023 Q3 2022 +/- Q3 2023 Q3 2022 +/- Incoming orders 23,083 19,337 19% 16,321 34,121 -52% 16,400 23,464 -30% 8,786 15,219 -42% Trucks 21,706 17,992 21% 9,221 25,435 -64% 13,784 18,474 -25% 7
Slide 28: Net cash flow and net liquidity/net financial debt
TRATON Operations – Net cash flow and net liquidity/ net financial debt Net cash flow Net cash flow (€ 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 TRATON Operations 753 188 -788 786 938 139 -1,534 61 709 -625 737 1,018 649 Net liquidity/net financial debt Net li
Slide 29: Scania Vehicles & Services – Key figures
Scania Vehicles & Services – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) +19% -1% +19 bp 1.26 26.8 1.08 21.0 18.2 19.3 23.5 18.9 19.8 23.1 20.2 21.6 22.6 23.8 21.3 0.90 0.90 0.88 0.84 0.83 16.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 30: MAN Truck & Bus – Key figures
MAN Truck & Bus – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) -104 bp -52% +34% 1.64 1.62 31.7 34.1 27.9 26.1 28.7 27.3 28.8 28.1 1.03 23.4 0.97 0.95 16.1 16.3 19.3 15.5 21.0 0.81 0.58 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 31: Navistar Sales & Services – Key figures
Navistar Sales & Services – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) 1.75 -1% -31 bp -30% 29.9 1.02 1.04 20.6 23.5 17.1 20.3 22.6 22.0 22.5 23.2 22.4 0.71 0.73 15.9 16.4 0.55 12.1 5.2 0.22 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 32: Volkswagen Truck & Bus – Key figures
Volkswagen Truck & Bus – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) -12 bp -42% 1.37 -35% 1.06 0.89 1.01 1.03 0.91 13.1 13.8 15.2 14.9 14.7 13.7 14.8 0.63 7.7 8.4 8.8 10.9 12.1 7.9 9.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 33: TRATON GROUP – Bonds outstanding
TRATON GROUP – Bonds outstanding TRATON with well-tested access to the debt capital markets €7.4 bn in bonds outstanding per September 30, 2023 Issuer TRATON Finance Luxembourg S.A. Guarantor TRATON SE (Ticker: 8TRA, Country: DE) Sustainability TRATON SE features an ESG rating from ISS ESG (Prime, C
Slide 34: TRATON GROUP – Debt maturity profile
TRATON GROUP – Debt maturity profile Maturity profile (€ bn)1 Major financings Debt overview (€ bn) • €700 mn Schuldschein TRATON financial debt 20.7 (tranches of 3y, 5y and 7y) thereof CI/OP 8.8 • Total of €7.4 bn bonds (tranches of 1.75y to 12y) thereof FS 11.9 • €4.5 bn syndicated RCF (undrawn) L
Slide 35: Investor Relations Team
TRATON Investor Relations Team Thomas Paschen Michael Lankes Analysts and Investors, Private Investors Annual General Meeting, Events +49 170 907 34 94 +49 89 360 98 328 thomas.paschen@traton.com michael.lankes@traton.com Contact Navistar: Fabian Schimpf Marvin Kalberlah Analysts and Investors, Priv
Slide 36: 9M 2023 Interim Statement
Christian Levin, CEO | Dr. Michael Jackstein, CFO & CHRO 9M 2023 Interim Statement, Munich, 10-25-2023 .