Traton Se · XETR:8TRA
Traton — H1 2022 Earnings Presentation
39 slides from Traton's earnings presentation, Jul 28, 2022
Slide 1: 2022 Half-Year Financial Report
2022 Half-Year Financial Report Christian Levin, CEO | Annette Danielski, CFO Munich, 07-28-2022 .
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: Q2 2022 – Main developments
Q2 2022 1. Main developments 2. Financials 3. Outlook 4. Backup 07-28-2022 2022 Half-Year Financial Report | Investor Relations 3 .
Slide 4: TRATON GROUP Highlights
TRATON GROUP Highlights European high-performance charging Scania introduces electric trucks Scania’s battery lab starts operations network Joint Venture kicked off for regional long-haul MAN to build battery factory Navistar prepares Huntsville plant Volkswagen Truck & Bus with new name in Nurember
Slide 5: Increasingly challenging and volatile environment
Increasingly challenging and volatile environment Geopolitical Business Supply chain Inflationary environment climate bottlenecks pressure Ukraine war continuing with Truck demand remains Shortages continue beyond Strong pressure from broadened sanction regime robust with increasing fleet semiconduc
Slide 6: Key facts Q2 2022
Key facts Q2 2022 Incoming orders Unit sales Sales revenue 68,619 units 69,527 units €9,457 mn (-23%) (+5%) (+34%) Adj. operating result Adj. return on sales Net cash flow €396 mn 4.2 % TRATON Operations (€-215 mn) (-4.5 pp) Adj. operating result excl. PPA Adj. return on sales excl. PPA €-1,534 mn €
Slide 7: Restrictive order acceptance due to high order backlog and long lead times
Restrictive order acceptance due to high order backlog and long lead times, unit sales affected by supply constraints Excluding Navistar Incoming orders & Unit sales (k units) 110 100 90 80 70 60 50 40 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 19 19 19 19 20 20 20 20 21 21 21 21 22 22 07-
Slide 8: Severe impact from supply shortages on Q2 unit sales
Severe impact from supply shortages on Q2 unit sales Unit sales (k units) Navistar contribution Lost unit sales (semiconductors & truck wiring harnesses) 69.5 66.2 66.1 31.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 19 19 19 19 20 20 20 20 21 21 21 21 22 22 07-28-2022 2022 Half-Year Financial Report
Slide 9: Strong progress in first half 2022 in driving electrification
Investments Update TRATON with strong progress in first half 2022 in driving electrification process and positioning Charging infrastructure Technology & production Products TRATON GROUP, Daimler Truck, and E-mobility investments of €2.6 bn Scania introduces electric trucks for Volvo Group kick off
Slide 10: TRATON's electric vehicles business evolving
TRATON’s electric vehicles business evolving Incoming orders and unit sales of fully All TRATON brands with BEV products electric vehicles (units) across major applications/weight classes 566 554 523 542 410 417 424 Scania electric truck MAN electric bus Navistar electric bus VWTB electric truck (45
Slide 11: Financials
Q2 2022 1. Main developments 2. Financials 3. Outlook 4. Backup 07-28-2022 2022 Half-Year Financial Report | Investor Relations 11 .
Slide 12: Robust development of sales revenue despite strong headwinds
Robust development of sales revenue despite strong headwinds in production and unit sales Incoming Unit Sales orders sales revenue (units) (units) (€ mn) -23% +34% 89,204 9,457 Incoming orders significantly below very +5% strong prior-year quarter, in particular in 68,619 69,527 7,076 trucks, driven
Slide 13: Vehicle Services business continuing to gain traction
Vehicle Services business continuing to gain traction Service business sales revenue1 (€ bn) In % of TRATON Operations Navistar contribution 24% 23% Sales revenue in Vehicle Services business increased by 62% YoY in Q2 2022 19% 2.1 Expansion of service business fostered by 17% strong investments and
Slide 14: Results development underscores improving resilience
Results development underscores improving resilience in highly challenging environment Adj. operating Adj. RoS1 Net cash flow result1 (%) TRATON Operations (€ mn) (€ mn) Adjusted operating result €0.2 bn below prior year severly impacted by supply €-215 mn -4.5 pp €-1,722 mn shortages and production
Slide 15: Sales revenue and adj. operating result by segment
Sales revenue and adj. operating result by segment Sales revenue Q2 2022 (€ mn) Adj. operating result Q2 2022 (€ mn) Adj. RoS (∆ YoY) 8.0% -0.9% 3.1% 11.1% 4.6% 24.1% 4.2% (-4.1 pp) (-4.8 pp) (n/a) (+3.1 pp) (-4.1 pp) (+1.1 pp) (-4.5 pp) 755 311 9,457 9,271 (+46%) 75 (+36%) (+34%) 2,597 (+33%) (n/a)
Slide 16: Scania V&S still held back in Q2 by supply bottlenecks
Scania V&S still held back in Q2 by supply bottlenecks and higher costs Adj. operating return on sales (%) 12.2 12.0 12.1 11.0 11.5 Truck unit sales 25% lower YoY due to 9.7 supply shortages of semiconductors, further 8.5 8.6 8.7 8.5 7.7 7.6 8.0 key components and logistics capacity Double-digit % i
Slide 17: Massive impact on MAN T&B truck production from Ukraine
Massive impact on MAN T&B truck production from developments in Ukraine – restructuring on track Adj. operating return on sales (%) Truck unit sales (units) Impact of production standstill Truck production strongly affected by supply gaps for wiring harnesses and subsequent production stops, resulti
Slide 18: Net cash flow impacted by working capital and legal payments
Net cash flow impacted by increased working capital and payments related to legal proceedings Net cash flow TRATON Operations (€ mn) -676 862 Gross cash flow almost on par with prior year level thanks to improved operating -1,3571 result Significantly increased working capital -2,033 -363 due to inv
Slide 19: Development of net financial debt
Development of net financial debt Net financial debt development TRATON Operations incl. Corporate Items (€ mn) -1,574 -1,694 -1,513 -1,3571 -2,931 Debt for purchase price payment Navistar -3,118 -1,282 -4,400 -7,331 TRATON TRATON TRATON Corporate TRATON Operations Operations Operations Items Operat
Slide 20: Outlook
Q2 2022 1. Main developments 2. Financials 3. Outlook 4. Backup 07-28-2022 2022 Half-Year Financial Report | Investor Relations 20 .
Slide 21: Truck market outlook – Uncertainties due to geopolitical and economic risks
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 184 202 Market expectations2 South 200 175 100 2022e America -5% – +10% 0 20
Slide 22: TRATON outlook 2022 largely confirmed
TRATON outlook 2022 largely confirmed, while geopolitical and economic risks are high FY 2021 FY 2022 FY 2022 Outlook Outlook Q1 2022 Interim Statement 2022 Half-Year Financial Report1 271.6 k sharp substantial Unit sales +43% increase increase €30.6 bn very sharp very sharp Sales revenue +36% incre
Slide 23: Q2 2022 – Key takeaways
Q2 2022 – Key takeaways TRATON pushing strategic agenda with strong progress in first half 2022 in driving electrification Robust development of sales revenue despite strong headwinds in production and unit sales Results development underscores improving resilience in highly challenging environment
Slide 24: Backup
Q2 2022 1. Main developments 2. Financials 3. Outlook 4. Backup 07-28-2022 2022 Half-Year Financial Report | Investor Relations 24 .
Slide 25: TRATON GROUP – New reporting structure from Q4 2021
TRATON GROUP – New reporting structure from Q4 2021 Part of the TRATON outlook and report on expected developments TRATON GROUP TRATON Corporate Segment TRATON Operations Financial Items1 reporting Services Scania Navistar MAN Volkswagen Key figures Vehicles & Sales & Truck & Bus Truck & Bus overvie
Slide 26: 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 Group 6,544 7,076 8,049 8,950 30,620 8,525 9,457 TRATON Operations 6,437 6,965 7,900 8,800 30,103 8,363 9,271 Scania Vehicles & Services 3,420 3,735 3,096 3,676 13,927 3,180 3,659 MAN Truck & Bus 2,645 2,763
Slide 27: (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 Adj. operating result (€ mn) Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 G
Slide 28: TRATON GROUP – Adjustments
TRATON GROUP – Adjustments FY FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Adjustments (€ mn) 16 17 18 18 18 18 18 19 19 19 19 19 20 20 20 20 20 21 21 21 21 21 22 22 Operating result 727 1,512 386 477 245 405 1,513 490 585 407 401 1,884 161 -382 162 139 81 155 301 186 -248 39
Slide 29: 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 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 91,658 359,9
Slide 30: Incoming orders and unit sales by brands
TRATON Operations – Incoming orders and unit sales by brands Units Q2 2022 Q2 2021 +/- Q2 2022 Q2 2021 +/- Q2 2022 Q2 2021 +/- Q2 2022 Q2 2021 +/- Incoming orders 18,225 38,493 -53% 16,059 35,344 -55% 20,608 n/a n/a 13,827 15,379 -10% Trucks 16,740 37,412 -55% 9,489 25,360 -63% 17,678 n/a n/a 12,172
Slide 31: 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 TRATON Operations 753 188 -788 786 938 139 -1,534 Net liquidity/net financial debt Net liquidity/net financial debt (€ mn) 3/31/21 6/30/21 9/30/21 12/3
Slide 32: Scania Vehicles & Services – Key figures
Scania Vehicles & Services – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) -53% -57 bp 36.9 38.5 -23% 1.60 1.47 1.39 1.26 25.0 21.0 18.2 23.0 26.2 23.1 0.90 16.3 18.0 16.6 20.2 0.71 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: MAN Truck & Bus – Key figures
MAN Truck & Bus – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) -55% -44 bp 42.9 -35% 1.71 1.64 1.56 32.1 35.3 33.2 31.7 1.37 1.48 23.4 24.0 21.3 25.0 1.03 16.1 19.3 15.5 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
Slide 34: Navistar Sales & Services – Key figures
Navistar Sales & Services – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) 1.68 1.75 29.9 1.17 23.6 1.02 19.0 20.6 20.3 14.1 16.2 17.1 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 22 21 21 21 21 22 22 22 22 21
Slide 35: Volkswagen Truck & Bus – Key figures
Volkswagen Truck & Bus – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) +5 bp -10% -15% 1.15 0.91 0.96 0.99 0.89 1.01 12.8 15.4 15.5 13.6 13.1 13.8 14.0 16.0 15.6 11.8 14.7 13.7 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
Slide 36: 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 37: TRATON GROUP – Debt maturity profile
TRATON GROUP – Debt maturity profile Maturity profile (€ bn)1 Major developments Debt 9 overview (€ bn) TRATON financial debt 19.8 • €700 mn Schuldschein issued (tranches of 3y, 5y and 7y) thereof CI/OP 10.6 • Total of €5.1 bn Bonds issued (tranches of thereof FS 9.2 1.5y, 1.75y, 2y, 3y, 4y, 8y and
Slide 38: 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 39: 2022 Half-Year Financial Report
2022 Half-Year Financial Report Christian Levin, CEO | Annette Danielski, CFO Munich, 07-28-2022 .