Traton Se · XETR:8TRA
Traton — 9M 2022 Earnings Presentation
38 slides from Traton's earnings presentation, Oct 28, 2022
Slide 1: 9M 2022 Interim Statement
9M 2022 Interim Statement Christian Levin, CEO | Annette Danielski, CFO Munich, 10-28-2022 .
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: Q3 2022 agenda
Q3 2022 1. Main developments 2. Financials 3. Outlook 4. Backup 10-28-2022 9M 2022 Interim Statement | Investor Relations 3 .
Slide 4: TRATON GROUP Q3 2022 highlights
TRATON GROUP Q3 2022 highlights Scania with first European pilot of fully Navistar presents new global VWTB starts international autonomous vehicles carrying integrated powertrain (CBE) sales of e-Delivery commercial goods on public roads Exhibition premiere of the near-series VWTB begins testing th
Slide 5: Pressures in environment remain high and dynamic
Pressures in environment remain high and dynamic Geopolitical Commercial vehicles Supply chain Inflationary environment business climate bottlenecks pressure Ukraine war continuing Robust truck demand: High Semiconductor shortage Continued pressure from with spill-over effects on activity, long lead
Slide 6: Key facts Q3 2022
Key facts Q3 2022 Incoming orders Unit sales Sales revenue 91,978 units 79,849 units €10,563 mn (-6%) (+16%) (+31%) Adj. operating result Adj. return on sales Net cash flow €549 mn 5.2 % TRATON Operations (€+355 mn) (+2.8 pp) Adj. operating result excl. PPA Adj. return on sales excl. PPA €634 mn 6.0
Slide 7: Positive momentum in both incoming orders and unit sales
Positive momentum in both incoming orders and unit sales, supported by continued strong demand and high order book Incoming orders & Unit sales (k units) Strong comeback of incoming orders in 110 Q3 2022: MAN T&B catching up, continued restrictive 100 90 order acceptance especially by Scania V&S. 80
Slide 8: TRATON GROUP at IAA Transportation 2022: Shaping the transition
Scania at IAA 2022: Visionary solutions brought to life Near-series prototype of the MAN eTruck TRATON GROUP at IAA Transportation 2022: Shaping the transition . MAN Lion's City E wins prestigious "Bus of the Year" award Recently introduced new Scania BEV for regional purposes
Slide 9: TRATON's electric vehicles business evolving
TRATON’s electric vehicles business evolving Incoming orders of Unit sales of fully All TRATON brands with BEV products fully electric vehicles electric vehicles across major applications/weight classes (units) (units) 586 554 542 526 410 417 424 412 397 Navistar electric bus MAN electric van Scania
Slide 10: Common base engine (CBE) entering markets
Common base engine (CBE) entering markets with strong benefits for customers and TRATON GROUP brands No.1 The world’s most sustainable powertrain with a 13L common base engine (CBE) 2022 2023 2024 … 2028 8% long-haulage Up to 15% gain 80% fuel savings1 in fuel efficiency2 Ready for Better efficiency
Slide 11: Q3 2022 agenda
Q3 2022 1. Main developments 2. Financials 3. Outlook 4. Backup 10-28-2022 9M 2022 Interim Statement | Investor Relations 11 .
Slide 12: High level of incoming orders and improved unit sales
High level of incoming orders and improved unit sales, backed by gradually improved supply chain Incoming orders Unit sales (units) (units) Incoming orders on high level with book- -6% to-bill of 1.2x, yet slightly below very strong 97,371 91,978 +16% prior-year quarter: 79,849 68,972 Strong comebac
Slide 13: Strong development of sales revenue in Q3 2022
Strong development of sales revenue in Q3 2022, exceeding €10 billion mark for the first time Sales revenue Sales revenue (€ mn) Vehicle Services business1 (€ mn) +31% +17% 10,563 2,199 Sales revenue increased by nearly one third 1,884 due to higher unit sales, favorable price/mix 8,049 and strong V
Slide 14: Positive momentum in adjusted operating result and profitability
Positive momentum in adjusted operating result and profitability Operating Adj. Adj. RoS1 result1 operating (%) (€ mn) result1 (€ mn) Adjusted operating result significantly up €+355 mn y-o-y, benefiting from higher volumes, price/mix compensating strong input cost 549 +2.8 pp headwinds. 5.2 Profita
Slide 15: Q3 2022 performance and key drivers by brand
Q3 2022 performance and key drivers by brand Sales revenue 3,833 2,847 2,975 853 (in € mn, YoY) (+24%) (+9%) (+77%) (+42%) Adj. RoS 7.6% 1.5% 5.9% 11.6% (YoY) (-0.1 pp) (-1.1 pp) (+3.4 pp) (+2.4 pp) Key drivers + Vehicle deliveries and + Price + Unit sales up by 60% + Price sales improved + Increase
Slide 16: Sales revenue and adjusted operating result by segment
Sales revenue and adjusted operating result by segment Sales revenue, Q3 2022 (€ mn) Adj. operating result, Q3 2022 (€ mn) Adj. RoS (∆ YoY) 7.6% 1.5% 5.9% 11.6% 5.8% 22.0% 5.2% (-0.1 pp) (-1.1 pp) (+3.4 pp) (+2.4 pp) (+0.8 pp) (-7.7 pp) (+2.8 pp) 853 324 10,563 10,361 (+23%) 71 (+42%) (+31%) 2,975 (
Slide 17: Positive net cash flow despite further build-up of working capital
Positive net cash flow despite further build-up of working capital Net cash flow TRATON Operations, Q3 2022 (€ mn) Gross cash flow improved versus prior-year level and Q2 2022 mainly due to increased -532 operating performance. 1,036 Further strong build-up of working capital: − Increased inventory
Slide 18: Development of net financial debt
Development of net financial debt Net financial debt development TRATON Operations incl. Corporate Items (€ mn) -1,574 -1,928 -1,694 -1,3571 -1,3571 -2,931 -3,285 Debt for purchase price payment Navistar -3,118 -1,004 -4,122 -7,407 TRATON TRATON TRATON Corporate TRATON Operations Operations Operatio
Slide 19: Q3 2022 agenda
Q3 2022 1. Main developments 2. Financials 3. Outlook 4. Backup 10-28-2022 9M 2022 Interim Statement | Investor Relations 19 .
Slide 20: Truck market outlook
Truck market outlook – Uncertainties due to high geopolitical and economic risks 400 320 k units, > 6t 352 300 320 Market expectations2 EU27+31 200 2022e 100 0 +0% – +10% 2010 2012 2014 2016 2018 2020 2022 300 k units, > 6t 184 193 Market expectations2 South 200 100 175 2022e America -5% – +5% 0 201
Slide 21: TRATON outlook 2022 confirmed
TRATON outlook 2022 confirmed, while geopolitical and economic risks are high FY 2021 FY 2022 Outlook 9M 2022 Interim Statment1 271.6 k substantial Unit sales +43% increase €30.6 bn very sharp Sales revenue +36% increase Operating RoS 5.0 – 6.0% 5.2% (incl. PPA, expected to be (adjusted) ~€300 – 320
Slide 22: Q3 2022 – Key takeaways
Q3 2022 – Key takeaways TRATON delivers robust financial performance and continues stringent execution of strategic agenda. High level of incoming orders, improved unit sales and strongly increased sales revenues, backed by gradually improved supply chain. Positive momentum in adjusted operating res
Slide 23: Backup
Q3 2022 1. Main developments 2. Financials 3. Outlook 4. Backup 10-28-2022 9M 2022 Interim Statement | Investor Relations 23 .
Slide 24: TRATON GROUP – Outlook
TRATON GROUP – Outlook TRATON GROUP 2021 2022e1 Unit sales (units) 271,608 substantial increase Sales revenue (€ million) 30,620 very sharp increase Adjusted RoS (in %) 5.2 5.0-6.0 TRATON Operations 2021 2022e1 Sales revenue (€ million) 30,103 very sharp increase Adjusted RoS (in %) 6.3 5.5-6.5 Net
Slide 25: 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 Group 6,544 7,076 8,049 8,950 30,620 8,525 9,457 10,563 TRATON Operations 6,437 6,965 7,900 8,800 30,103 8,363 9,271 10,361 Scania Vehicles & Services 3,420 3,735 3,096 3,676 13,927 3,180 3,659 3,833 MA
Slide 26: TRATON GROUP – (Adjusted) operating result and 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 Adj. operating result (€ mn) Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q
Slide 27: TRATON GROUP – Adjustments
TRATON GROUP – Adjustments FY FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Adjustments (€ mn) 19 20 21 21 21 21 21 22 22 22 Operating result 1,884 81 155 301 186 -248 393 355 306 -52 Scania V&S Expenses in connection with the EU antitrust proceedings 510 510 17 Expenses in connection with the realignment of productio
Slide 28: TRATON Operations – Incoming orders and unit sales
TRATON Operations – Incoming orders and unit sales Incoming orders (units) Q1 19 Q2 19 Q3 19 Q4 19 FY 19 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 TRATON Operations 64,357 56,134 49,217 57,532 227,240 54,161 33,270 58,502 70,318 216,251 81,742 89,204 97,371 91,658
Slide 29: Incoming orders and unit sales by brands
TRATON Operations – Incoming orders and unit sales by brands Units Q3 2022 Q3 2021 +/- Q3 2022 Q3 2021 +/- Q3 2022 Q3 2021 +/- Q3 2022 Q3 2021 +/- Incoming orders 19,337 25,023 -23% 34,121 33,216 3% 23,464 23,638 -1% 15,219 15,502 -2% Trucks 17,992 23,784 -24% 25,435 24,973 2% 18,474 19,961 -7% 12,9
Slide 30: 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 TRATON Operations 753 188 -788 786 938 139 -1,534 61 Net liquidity/net financial debt Net liquidity/net financial debt (€ mn) 3/31/21 6/30/21 9/3
Slide 31: Scania Vehicles & Services – Key figures
Scania Vehicles & Services – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) -49 bp 36.9 38.5 -23% +20% 1.60 1.47 1.39 1.26 25.0 21.0 18.2 19.3 23.0 26.2 23.1 20.2 21.6 0.90 0.90 16.3 18.0 16.6 0.71 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 32: MAN Truck & Bus – Key figures
MAN Truck & Bus – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) +3% +7 bp 42.9 1.71 1.64 1.62 1.56 32.1 35.3 33.2 31.7 34.1 -1% 1.37 1.48 23.4 24.0 21.3 25.0 1.03 16.1 19.3 15.5 21.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 21
Slide 33: Navistar Sales & Services – Key figures
Navistar Sales & Services – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) -64 bp -1% 1.68 1.75 +60% 29.9 1.17 23.6 1.02 1.04 19.0 20.6 23.5 17.1 20.3 22.6 14.1 16.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 21 21 21 21 22 22 22
Slide 34: Volkswagen Truck & Bus – Key figures
Volkswagen Truck & Bus – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) +3 bp -2% -5% 1.15 0.91 0.96 0.99 0.89 1.01 1.03 12.8 15.4 15.5 13.6 13.1 13.8 15.2 14.0 16.0 15.6 11.8 14.7 13.7 14.8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 35: TRATON GROUP – Bonds outstanding
TRATON GROUP – Bonds outstanding TRATON with well-tested access to the debt capital markets €5.1 bn in bonds outstanding Issuer TRATON Finance Luxembourg S.A. Guarantor TRATON SE (Ticker: 8TRA, Country: DE) Guarantor Ratings Baa1 neg. / BBB stab. Baa2 stab. / BBB stab. Issue Ratings Baa1 / BBB Baa2
Slide 36: TRATON GROUP – Debt maturity profile
TRATON GROUP – Debt maturity profile Maturity profile (€ bn)1 Major developments Debt 9 overview (€ bn) TRATON financial debt 19.9 • €700 mn Schuldschein issued (tranches of 3y, 5y and 7y) thereof CI/OP 9.1 • Total of €5.1 bn Bonds issued (tranches of thereof FS 10.8 1.5y, 1.75y, 2y, 3y, 4y, 8y and
Slide 37: TRATON Investor Relations Team
TRATON Investor Relations Team Lars Korinth Thomas Paschen Head of Investor Relations Analysts and Investors, Consensus, Private Investors +49 152 313 73 138 +49 170 907 34 94 lars.korinth@traton.com thomas.paschen@traton.com Margit Hartmann Fabian Schimpf Annual General Meeting, Events Analysts and
Slide 38: 9M 2022 Interim Statement
9M 2022 Interim Statement Christian Levin, CEO | Annette Danielski, CFO Munich, 10-28-2022 .