Traton Se · XETR:8TRA
Traton — 9M 2019 Earnings Presentation
38 slides from Traton's earnings presentation, Nov 4, 2019
Slide 1: 9M 2019 Results
Munich, 04 November 2019 9M 2019 RESULTS CHRISTIAN SCHULZ, CFO 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 November 04, 2019 / Investor Relations / 9M 2019 Results 3
Slide 4: TRATON Group Highlights
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX TRATON GROUP HIGHLIGHTS • Unit sales up by +7.7% to a nine month record of 179,091 units • Sales revenue increased by +9.3%1 to €19,827 mn; all brands contributed 9M 2019 • Operating profit improved by +33.8% to €1,482 mn2 • Ro
Slide 5: Group – Segment Highlights Q3 / 9M 2019
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – SEGMENT HIGHLIGHTS Q3 / 9M 2019 Industrial Business (IB) Financial Services (FS) Q3 19 Y-o-Y 9M 19 Y-o-Y Q3 19 Y-o-Y 9M 19 Y-o-Y 2 Order intake (units) 49,217 -7.0% 169,708 -6.0% Net portfolio (€bn) 9.7 +11.0% Unit sale
Slide 6: 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 (%) +4.5% +6.0% +7.4% +6.5% 7,128 6,5582 6,413 6,286 6,0512 6,0142 19,827 8.2 7.6 6.5 13,541 7.3 6.4 6.5 4.13 6,413 7.6 7.9 7.5 Q1
Slide 7: Group – Unit Sales Development
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – UNIT SALES DEVELOPMENT Unit sales (units) +2.9% Growth Y-o-Y (%) 66,173 +7.4% +10.0% +7.7% 58,913 57,163 6,014 55,755 53,221 6,139 54,194 4,210 Buses 5,112 5,142 5,551 179,091 15,775 123,336 60,159 10,224 Trucks 1 48,10
Slide 8: Group – Strong Sales Growth in Core Markets
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – STRONG SALES GROWTH IN CORE MARKETS Truck unit sales in core markets1; 2019 (units) Growth 9M (Y-o-Y) Market growth3 Q1 31,948 2 H1 66,430 +11.1% +5.2% 9M 92,285 FY Q1 8,938 H1 18,822 +13.6% +8.2% 9M 26,051 FY Q1 10,398
Slide 9: 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 1.13 0.85 0.88 -4.5% -5.5% -6.0% -7.0% 67,359 64,357 60,184 56,134 52,925 169,708 49,217 120,491 64,357 1.13
Slide 10: Industrial Business – Unit Sales
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX INDUSTRIAL BUSINESS – UNIT SALES Unit sales (units) Growth Y-o-Y (%) +2.9% +7.4% +10.0% +7.7% 66,173 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 19 H1 19 9M 19 FY
Slide 11: 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 (%) +9.4% +10.4% +9.3% +7.0% 7,015 6,303 6,305 6,171 5,765 5,770 19,491 7.9 6.9 7.3 6.0 13,320 6.1 6.0 3.32 6,305 7.3
Slide 12: 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 Q3 2019 (€mn) SALES REVENUES 9M 2019 (€mn) Growth rate (%) Return on sales1 (%) Growth rate (%) Return on sales1 (%) 1.3% 11.5% 2.5% 6.0% 3.6% 11.6
Slide 13: Industrial Business – Indebtedness
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX INDUSTRIAL BUSINESS – INDEBTEDNESS NET FINANCIAL INDEBTEDNESS / NET LIQUIDITY BRIDGE (€mn) Net Debt 896 (227) (2,060) 1,047 (1,119) (Net Cash) 256 (1,207) Net financial Capital Acquisitions Change in working IFRS 16 Other Net f
Slide 14: MAN Truck & Bus – Summary 9M 2019
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX MAN TRUCK & BUS – SUMMARY 9M 2019 • Vehicle sales up by +6% primarily driven by MAN TGE (Germany, UK, France) • Order intake down by -10% mainly due to Germany, Poland, Russia, India und Turkey • Operating profit increased by +
Slide 15: 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) -13.4% -2.3% -0.12 30.2 29.4 29.9 29.1 1.37 25.0 27.0 25.0 1.20 24.1 23.0 22.5 1.09 1.05 20.8 22.1 0.93 0.86 Q
Slide 16: Scania Vehicles & Services – Summary 9M 2019
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX SCANIA VEHICLES & SERVICES – SUMMARY 9M 2019 • Unit sales of trucks up by +11%, primarily driven by strong growth in EU28+2 and Brazil; truck sales declined substantially in Russia, Asia/Pacific and in the Middle East • Order i
Slide 17: 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) -11.0% +6.1% -15bpt 29.8 1.31 26.7 27.9 1.13 22.7 22.1 22.6 24.1 23.6 23.2 20.0 21.9 0.94 0.91 17.8
Slide 18: Volkswagen Caminhões e Ônibus – Summary 9M 2019
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX VOLKSWAGEN CAMINHÕES E ÔNIBUS – SUMMARY 9M 2019 • Brazilian truck market continued to recover in tandem with economic upturn; truck unit sales increased by +20% • Export sales declined on sluggish demand in other relevant marke
Slide 19: 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) +14.9% +11.4% +0.03 10.4 11.1 10.5 11.2 1.03 9.7 10.0 9.8 0.96 0.99 0.99 8.8 8.9 8.8 8.6 0.91 0.
Slide 20: 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 (%) +13.3% +10.3% +10.7% +11.4% 216 215 201 203 193 179 635 19.1 19.1 16.2 419 16.5 17.5 16.2 17.1 16.2 203 16.2 16.6
Slide 21: 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 9M 2019 the +14.4% +17.4% +17.6% -37bpt +7bpt -33bpt customer finan
Slide 22: Outlook – Truck Market
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX OUTLOOK – TRUCK MARKET TRUCK MARKET DEVELOPMENT (˃ 6t, k units) EU28+21 SOUTH AMERICA 372 2019: stable 126 2020: -10% to -20% 2009 2011 2013 2015 2017 2019E 2009 2011 2013 2015 2017 2019E GERMANY BRAZIL 2019: ˃ +30% 84 2020: +5
Slide 23: Outlook Group – Track Record, Outlook 2019 and Over-the-Cycle Target
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX OUTLOOK GROUP – RECENT TRACK RECORD, OUTLOOK 2019 AND OVER-THE-CYCLE TARGET Over-the-cycle RoS FY 2018 9M 2019 2019 Outlook target Slight increase Unit sales 233.0k 179.1 compared with (Units; Growth in %) 13.7% 7.7% previous y
Slide 24: Possible Measures in Case of Rapid Market Downturn
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX POSSIBLE MEASURES IN CASE OF RAPID MARKET DOWNTURN Market Scenarios 2020: Truck Market EU28+21 -10% -20% Measures possibly to be evaluated Reduction of time accounts Reduction of temporary workers Reduction of non - personnel o
Slide 25: Appendix
Appendix November 04, 2019 / Investor Relations / 9M 2019 Results 25
Slide 26: 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 89 360 98 334 + 49 89 360 98 474 + 49 89 36098-283 rolf.woller@traton.com helga.wuertele@traton.com thomas.paschen@traton
Slide 27: Financial Calendar
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX FINANCIAL CALENDAR DATE EVENT / PUBLICATION OF May 7, 2019 Q1 2019 July 29, 2019 Half-year 2019 November 4, 2019 9-month 2019 March 27, 2020 Annual Press Conference & Annual Report 2019 May 4, 2020 Q1 2020 May 28, 2020 Annual G
Slide 28: 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 29: 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 By 2020 Common modular electric powertrai
Slide 30: Group – Regional Truck Unit Sales Development
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – REGIONAL TRUCK UNIT SALES DEVELOPMENT1 EU28+22 (units) Germany (units) South America (units) Brazil (units) -0.7% 34,482 31,948 29,728 27,264 26,041 25,855 +32.2% +39.2% +2.1% 13,750 12,670 12,543 11,506 8,938 9,884 9,4
Slide 31: 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 (%) +26.8% +24.5% +33.8% +66.5% 585 477 490 407 1,482 386 1,075 245 8.2 7.3 7.6 6.4 6.5 490 4.12 7.6 7.9 7.5 Q1 18 Q2 18 Q3 1
Slide 32: 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 (%) -1.0% -8.0% -9.5% +13.2% +10.2% +6.2% -17bpt -20bpt -17bpt 7
Slide 33: 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 (%) -10.3% -7.1% -8.2% +4.1% +10.1% +8.9% -18bpt -18b
Slide 34: 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 (%) +11.8% +15.1% +15.1% +12.1% +17.6% +15.3% 0bpt
Slide 35: Group – Consolidated Income Statement (IFRS)
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – CONSOLIDATED INCOME STATEMENT (IFRS) in € million 9M 2019 9M 2018 Sales revenue 19,827 18,623 Cost of sales -15,825 -14,965 Gross profit 4,001 3,658 Distribution expenses -1,811 -1,741 Administrative expenses -734 -736
Slide 36: Group – Consolidated Balance Sheet (IFRS)
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – CONSOLIDATED BALANCE SHEET: ASSETS / EQUITY AND LIABILITIES (IFRS) in € million 09/30/2019 12/31/2018 in € million 09/30/2019 12/31/2018 Equity and Liabilities Assets Equity Noncurrent assets Subscribed capital 500 10 I
Slide 37: Group – Consolidated Statement of Cash-Flows (IFRS)
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – CONSOLIDATED STATEMENT OF CASH-FLOWS (IFRS) in € million 9M 2019 9M 2018 in EUR million 9M 2019 9M 2018 Cash and cash equivalents as of January 1 2,997 4,593 Change in marketable securities and investment deposits -2,81
Slide 38: Group – Adjustments
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK APPENDIX GROUP – ADJUSTMENTS Adjustments (€ million) 2016 2017 2018 9M 2019 OPERATING PROFIT 727 1,512 1,513 1,482 Expense for antitrust proceedings (Scania) 403 Release of restructuring provisions at MAN T&B -50 Expenses in relation to