Traton Se · XETR:8TRA
Traton — FY2021 Earnings Presentation
57 slides from Traton's earnings presentation, Mar 15, 2022
Slide 1: IR Conference Call for Fiscal Year 2021
IR CONFERENCE CALL FOR FISCAL YEAR 2021 Christian Levin, CEO | Annette Danielski, CFO Munich, 03-15-2022 .
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: Agenda
Agenda 1. FY 2021 2. Outlook 3. Back up 03-15-2022 Conference Call for fiscal year 2021 | Investor Relations 3 .
Slide 4: New reporting structure increases transparency on operative performance
New reporting structure increases transparency on operative performance Part of the TRATON outlook and report on expected developments TRATON GROUP TRATON Corporate Segment TRATON Operations Financial Items1 reporting Services Scania Navistar Volkswagen MAN Key figures Vehicle & Sales & Caminhões e
Slide 5: Russia-Ukraine conflict – Facts & figures
Russia-Ukraine conflict – Facts & figures It cannot be ruled out that as this conflict unfolds, it may have a material negative impact on the TRATON GROUP’s net assets, financial position, Unit sales and results of operations <5% of TRATON GROUP unit sales generated in Russia and Ukraine in FY 2021
Slide 6: 1. FY 2021
1. FY 2021 03-15-2022 Conference Call for fiscal year 2021 | Investor Relations 6 .
Slide 7: Highlights 2021
Highlights 2021 MAN realignment MAN joins the Science Based Targets Initiative Start of the introduction Navistar of the Common Base acquisition Engine (CBE) TRATON, Daimler Truck, and Volvo Group sign JV agreement for European high-performance Scania joins The Climate Pledge charging network 03-15-
Slide 8: Key facts 2021
Key facts 2021 Business recovery continues, Incoming orders Unit sales Sales revenue but environment challenging and impacted by supply chain constraints up 66% to up 43% to up 36% to 359,975 units 271,608 units € 30,620 mn Adjusted operating result Adjusted operating result Restructuring expenses a
Slide 9: Strong order intake, but distortion in unit sales due to supply constraints
Underlying transportation activities lead to strong order intake, but distortion in unit sales due to supply constraints Excluding Navistar Incoming orders & Unit sales 100 k units 90 80 70 60 50 40 Pre-COVID-19 Recovery 30 pandemic 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 18 18 18 18
Slide 10: Unit sales nevertheless at a good level
Unit sales nevertheless at a good level Unit sales Navistar contribution Lost unit sales k units 271.6 242.2 190.2 FY 19 FY 20 FY 21 03-15-2022 Conference Call for fiscal year 2021 | Investor Relations 10 .
Slide 11: Electrification continues to progress
Electrification continues to progress Press release March 1, 2022: Scania to deliver over 100 electric trucks to Copenhagen municipal waste company ARC Incoming orders and unit sales of fully TRATON GROUP BEV product range electric vehicles, FY 2021 Units Incoming orders Unit sales TRATON GROUP 1,71
Slide 12: Service business gaining importance
Service business gaining importance Service business sales revenue1 Services business sales revenue1 by brand In % of TRATON Operations Navistar contribution Service business in % of brand 21% 21% sales revenue 6.4 € bn 19% 4.7 3.0 21% 6.4 Scania V&S € bn MAN T&B 5.0 4.7 2.6 Navistar S&S VWCO 2.3 21
Slide 13: TRATON w/o Navistar: Key figures on pre-COVID-19 level
TRATON w/o Navistar: Key figures on pre-COVID-19 level but supply constraints impact earnings quality Incoming Unit Sales Adj. Strong recovery in demand orders sales revenue operating results in high incoming (k units) (k units) (€ bn) result (€ mn) orders and strong backlog. Adj. RoS 317 (%) Despit
Slide 14: TRATON w/o Navistar: H2 2021 impacted by supply chain bottlenecks
TRATON w/o Navistar: H2 2021 significantly impacted by supply chain bottlenecks TRATON Classic H1 2021 H2 2021 Business development H2 2021: Incoming orders (k units) 170.9 146.4 Unit sales decreased due to supply chain bottlenecks. Unit sales (k units) 126.5 114.9 Increased negative influence of hi
Slide 15: All operating segments contributed positively to improved results
All operating segments contributed positive to the improved results Sales revenue FY 2021 Adjusted operating result FY 2021 Adjusted return on sales (%) 10.1% 2.3% 1.2% 8.1% 6.3% 26.9% 5.2%1 2,113 30,103 964 30,620 259 3,557 € mn € mn -429 -447 171 9 1,883 10,934 249 41 1,599 1,412 -543 13,927 Scani
Slide 16: Q4 2021 – Key figures (1)
Q4 2021 – Key figures (1) Navistar contribution Incoming Unit sales Sales Incoming orders excluding Navistar orders (units) revenue (units) (€ mn) increased by 3%. Especially on the truck side, continued strong demand is not fully +30% +31% reflected due to long lead times and already large order bo
Slide 17: Q4 2021 – Key figures (2)
Q4 2021 – Key figures (2) Navistar contribution Operating Adj. operating Net cash Operating result burdened by one-time result1 result1 flow (€ mn) (€ mn) Group ex. FS items of €525 mn and purchase price RoS1 Adj. RoS1 (€ mn) allocation. Adj. RoS1 (%) (%) (%) Adjusted operating result positively €-8
Slide 18: Navistar Sales & Services
Navistar Sales & Services Key figures Q3/Q4 2021 Q3 2021 Q4 2021 Incoming orders (units) 23,638 18,950 1 Trucks 19,961 12,842 Buses 3,677 6,108 Unit sales (units) 14,074 16,231 Trucks 1 11,261 13,852 Buses 2,813 2,379 Book-to-bill (units) 1.7 1.2 Sales revenue (€ mn) 1,681 1,876 Q3 | Q4 Operating re
Slide 19: Net cash flow 2021 impacted by Navistar acquisition, supply shortages and MAN restructuring
Net cash flow 2021 impacted by acquisition of Navistar, supply shortages and MAN restructuring Net cash flow TRATON GROUP excluding Financial Reduced Working Capital tied up in Q4 Services 2021 despite stronger operating activities FY 21: €-2,089 mn1 due to decreased inventories and higher FY 20: €6
Slide 20: Net liquidity impacted by Navistar acquisition as expected
Net liquidity impacted by Navistar acquisition as expected Total financial debt bridge TRATON Group excluding Financial Services € mn 27 -127 -587 -347 -3,118 -2,746 788 -6,110 -2,648 -8,758 Net Dividend MAN MAN T&B Purchase Net debt Other Net debt Pensions Total debt liquidity TRATON Merger restruc
Slide 21: 3. Outlook
3. Outlook 03-15-2022 Conference Call for fiscal year 2021 | Investor Relations 21 .
Slide 22: Truck market outlook – Uncertainties due to geopolitical and economic risks
This outlook Truck market outlook – Uncertainties due does not take into account the current to high geopolitical and economic risks developments due to the war in Ukraine 400 320 k units, > 6t 352 300 320 Market expectations2 EU27+31 200 273 2022e 100 0 +0% – +10% 2010 2012 2014 2016 2018 2020 2022
Slide 23: TRATON outlook 2022 – Further recovery, but high risks
This outlook is subject to the TRATON outlook 2022 – Further recovery, further development of the war in Ukraine and in particular the impact but high geopolitical and economic risks on TRATON’s supply chains and the global economy as a whole FY 2020 FY 2021 FY 2022 Outlook1 190.2 k 271.6 k very sha
Slide 24: TRATON – Key takeaways
TRATON – Key takeaways Business climate Global economy truck markets in core regions recovering, but continues to recover, but challenging year also in not yet reaching pre-pandemic level in Europe 2022 due to uncertainties and severe impacts and North America; supply chain constraints from COVID-19
Slide 25: Capital Markets Day
Capital Markets Day TRATON Capital Markets Day ► May 18, 2022 ► Södertälje, Sweden at the Scania plant ► Agenda for a full day - Teach Ins & Driving event - New strategy and deep dive into brand performance - Q&A session and management discussion 03-15-2022 Conference Call for fiscal year 2021 | Inv
Slide 26: 4. Back-up TRATON GROUP
4. Back-up TRATON GROUP 03-15-2022 Conference Call for fiscal year 2021 | Investor Relations 26 .
Slide 27: Group – Segment highlights TRATON
Group – Segment highlights TRATON TRATON Operations (TO) Q4 2021 YoY FY 2021 YoY Financial Services (FS) Q4 2021 YoY FY 2021 YoY Incoming orders (units) 1 91,658 +30% 359,975 +66% Sales revenue (€ mn) 281 +35% 964 +18% 1 Unit sales (units) 76,186 +22% 271,608 +43% Operating result (€ mn) 81 €+56 mn
Slide 28: Group – Sales revenue
Group – Sales revenue Sales revenue Growth YoY (%) +15% +35% +38% +36% +31% € mn € mn 8,950 30,620 8,049 6,839 6,544 7,076 21,670 5,679 5,667 4,394 13,621 6,544 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 H1 9M FY 20 20 20 20 21 21 21 21 21 21 21 21 03-15-2022 Conference Call for fiscal year 2021 | Investor Relation
Slide 29: Group – Adjusted operating result and adjusted return on sales
Group – Adjusted operating result and adjusted return on sales Adjusted operating result1 Growth YoY (€ mn) Adjusted return on sales1 (%) +355 +1,348 +1,331 +1,464 €+133 mn € mn € mn 612 516 277 1,599 211 7.9 8.6 195 161 144 1,322 3.7 2.1 2.4 3.1 1,128 2.8 -8.7 516 -382 7.9 8.3 6.1 5.2 Q1 Q2 Q3 Q4 Q
Slide 30: 4. Back-up Segment TRATON Operations
4. Back-up Segment TRATON Operations 03-15-2022 Conference Call for fiscal year 2021 | Investor Relations 30 .
Slide 31: TRATON Operations – Incoming orders
TRATON Operations – Incoming orders Incoming orders Growth YoY (%) Book-to-bill (ratio in units) +51% +96% +84% +66% 1.18 1.05 1.17 1.12 1.36 1.35 1.41 1.20 +30% 97,371 89,204 91,658 359,975 units units 81,742 70,318 268,317 58,502 54,161 170,946 33,270 81,742 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 H1 9M FY 20
Slide 32: TRATON Operations – Unit sales
TRATON Operations – Unit sales Unit sales Growth YoY (%) +31% +63% +53% +43% +22% 76,186 units units 271,608 68,972 66,135 62,520 60,315 49,922 195,422 45,990 31,748 126,450 60,315 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 21 H1 21 9M 21 FY 21 20 20 20 20 21 21 21 21 Trucks Buses MAN TGE vans Trucks Buses MAN TGE
Slide 33: TRATON Operations – Incoming orders and unit sales by brands
TRATON Operations – Incoming orders and unit sales by brands Units Q4 2021 Q4 2020 +/- Q4 2021 Q4 2020 +/- Q4 2021 Q4 2020 +/- Q4 2021 Q4 2020 +/- Incoming orders 16,338 32,733 -50% 42,901 25,176 70% 18,950 n/a n/a 13,610 12,518 9% Trucks 1 15,869 32,003 -50% 34,228 18,356 86% 12,842 n/a n/a 12,414
Slide 34: TRATON Operations – Regional unit sales
TRATON Operations – Regional unit sales Trucks unit sales in core markets (units) Growth FY 2021 (%) Market growth2 (%) Q1 24,169 H1 48,993 +19% EU27+31 +13% 9M 66,805 FY 92,019 Q1 6,587 H1 12,582 Germany 9M 17,592 -3% +10% FY 24,042 Q1 16,956 South H1 36,827 9M 56,651 +73% +47% America FY 72,955 Q1
Slide 35: TRATON Operations – Sales revenue and adjusted return on sales
TRATON Operations – Sales revenue and adjusted return on sales Sales revenue Growth YoY (%) Adjusted return on sales (%) +16% +36% +38% +36% €+31% € mn € mn 8,800 30,103 7,900 6,735 6,437 6,965 21,302 5,564 5,565 4,290 8.0 8.7 5.1 4.1 13,402 2.4 3.1 2.7 -9.3 6,437 8.0 8.3 7.1 6.3 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 36: TRATON Operations – Adjustments
TRATON Operations – Adjustments TRATON Operations Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Operating result €151 mn €294 mn €393 mn €-161 mn €677 mn Operating margin 2.3% 4.2% 5.0% -1.8% 2.2% Adjustments €362 mn €311 mn €9 mn €525 mn €1,205 mn MAN T&B: Expenses for €362 mn €311 mn €9 mn €15 mn €696 m
Slide 37: Net Liquidity – Leverage ratios
TRATON GROUP excluding Financial Services – Leverage ratios Net liquidity in H2/FY 21 impacted by the acquisition of Navistar Gearing ratio1 Equity ratio: at 28% Net debt/adjusted EBITDA2 Industrial Business FY 19 – 9M 21 Industrial Business FY 19 – 9M 21 % x 11 Net Liquidity Net Liquidity 0.5 5 0.2
Slide 38: Scania Vehicles & Services – Key figures
Scania Vehicles & Services – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) -50% -64 bp -5% 1.60 1.47 36.9 38.5 1.50 1.34 1.39 32.7 1.14 1.11 20.7 25.9 25.0 24.4 23.0 26.2 23.1 16.3 18.2 17.3 18.0 0.71 13.6 12.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 39: MAN Truck & Bus – Key figures
MAN Truck & Bus – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) +70% +82 bp 42.9 -11% 1.71 1.56 32.1 35.3 33.2 1.33 1.37 1.48 28.1 1.04 0.99 24.1 21.6 25.2 18.2 21.9 23.4 24.0 21.3 25.0 0.89 14.1 13.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 40: Navistar Sales & Services – Key figures
Navistar Sales & Services – Key figures Incoming orders1 (k units) Unit sales1 (k units) Book-to-bill (ratio in units) 1.68 1.17 23.6 19.0 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 20 20 20 20 21 21 21 21 20 20 20 20 21 21 21 21 20 20 20 20 21 21 21 21 Sales r
Slide 41: Volkswagen Caminhões e Ônibus – Key figures
Volkswagen Caminhões e Ônibus – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) -7 bp +9% +16% 1.23 1.15 0.97 0.94 1.02 0.91 0.96 0.99 15.4 15.5 13.6 16.0 15.6 9.5 11.1 12.5 12.8 9.9 10.9 10.2 14.0 11.8 5.7 6.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 42: 4. Back-up Segment Financial Services
4. Back-up Segment Financial Services 03-15-2022 Conference Call for fiscal year 2021 | Investor Relations 42 .
Slide 43: Financial Services – Sales revenue and return on sales
Financial Services – Sales revenue and return on sales Sales revenue Growth YoY (%) Return on sales (%) -5% +1% +12% +18% € mn € mn +35% 964 281 264 216 214 683 197 200 208 205 29.8 24.6 23.1 25.5 419 18.7 12.0 9.5 12.2 205 24.6 23.8 26.1 26.9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 H1 9M FY 20 20 20 20 21 21 21
Slide 44: Financial Services – Operating result
Financial Services – Operating result Operating result Growth YoY (€ mn) +25 +55 +97 +152 €+56 mn 81 € mn € mn 79 259 51 178 49 37 100 26 25 19 51 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 H1 9M FY 20 20 20 20 21 21 21 21 21 21 21 21 ► Excluding Navistar, operating result for FY 2021 would have been €229 mn. ► Str
Slide 45: 4. Back-up Appendix
4. Back-up Appendix 03-15-2022 Conference Call for fiscal year 2021 | Investor Relations 45 .
Slide 46: Incoming orders and unit sales
Incoming orders and unit sales Incoming orders (units) Q1 18 Q2 18 Q3 18 Q4 18 FY 18 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 Industrial Business 67,359 60,184 52,925 63,246 243,714 64,357 56,134 49,217 57,532 227,240 54,161 33,270 58,502 70,318 216,2
Slide 47: Sales revenue
Sales revenue Sales revenue (€ mn) Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Group 6,839 22,580 6,544 7,076 8,049 8,950 30,620 TRATON Operations 6,735 22,152 6,437 6,965 7,900 8,800 30,103 Scania Vehicles & Services 3,428 11,521 3,420 3,735 3,096 3,676 13,927 MAN Truck & Bus 3,092 9,659 2,645 2,763
Slide 48: (Adjusted) Operating result and (adjusted) return on sales
(Adjusted) Operating result and (adjusted) return on sales Operating result & return on sales Adjusted operating result & adjusted return on sales Operating result (€ mn) Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Adj. operating result (€ mn) Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Group 139 81 155
Slide 49: Adjustments
Adjustments FY FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Adjustments (€ mn) 16 17 18 18 18 18 18 19 19 19 19 19 20 20 20 20 20 21 21 21 21 21 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 -248 393 Scania: Expense for antit
Slide 50: Balance sheet
Balance sheet Assets (€ mn) Equity & liabilities (€ mn) Assets (€ mn) 12/31/20 12/31/21 Equity & liabilities (€ mn) 12/31/20 12/31/21 Total assets 42,767 55,120 Total equity and liabilities 42,767 55,120 Noncurrent assets 28,369 38,890 Equity 13,169 13,446 Goodwill 3,305 6,166 Subscribed Capital 500
Slide 51: Income statement
Income statement Income statement (€ mn) FY 18 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 Sales revenue 25,927 6,413 7,128 6,286 7,075 26,901 5,679 4,394 5,667 6,839 22,580 6,544 7,076 8,049 8,950 30,620 Cost of sales -20,946 -5,109 -5,653 -5,063 -5,792
Slide 52: Regional truck unit sales
Regional truck unit sales EU27+31 Germany Brazil North America2 units units units units -11% 28,380 24,169 24,824 25,214 +22% 20,783 19,722 17,434 17,812 16,838 14,489 14,040 12,834 -27% 12,810 10,481 11,460 8,818 9,649 9,337 6,117 6,390 6,587 5,995 6,450 6,271 3,500 5,010 320 214 325 251 297 447 Q1
Slide 53: Net cash flow & net liquidity Group excluding Financial Services
Net cash flow & net liquidity Group excluding Financial Services Net cash flow (€ mn), TRATON GROUP excluding Financial Services Net cash flow (€ mn) Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Reported 834 683 367 129 -3,337 752 -2,089 Net liquidity/net financial debt (€ mn), TRATON GROUP excluding F
Slide 54: Bonds outstanding
Bonds outstanding TRATON with well-tested access to the debt capital markets €4.6 bn in bonds outstanding (including €300 mn bond issued in January 2022) Issuer TRATON Finance Luxembourg S.A. Guarantor TRATON SE (Ticker: 8TRA, Country: DE) Guarantor Ratings Baa1 negative outlook (Moody's) / BBB stab
Slide 55: TRATON GROUP debt maturity profile
TRATON GROUP debt maturity profile Maturity profile (€ bn)1 2021 developments Debt overview (€ bn) 9 • €700 mn Schuldschein issued TRATON financial debt 17.0 (tranches of 3y, 5y and 7y) thereof CI/OP 8.5 • Total of €4.3 bn bonds issued (tranches of 2y, 3y, 4y, 8y and 12y) in 2021 thereof FS 8.5 • €2
Slide 56: TRATON Investor Relations Team
TRATON Investor Relations Team Marvin Kalberlah Thomas Paschen Head of Investor Relations (acting) Analysts and Investors, Consensus, Private Investors +49 162 168 51 87 +49 170 907 34 94 marvin.kalberlah@traton.com thomas.paschen@traton.com Margit Hartmann Fabian Schimpf Annual General Meeting, Eve
Slide 57: IR Conference Call for Fiscal Year 2021
IR CONFERENCE CALL FOR FISCAL YEAR 2021 Christian Levin, CEO | Annette Danielski, CFO Munich, 03-15-2022 .