Traton Se · XETR:8TRA
Traton — FY2022 Earnings Presentation
52 slides from Traton's earnings presentation, Mar 7, 2023
Slide 1: Annual Results Conference, Munich, 03-07-2023
Christian Levin, CEO | Annette Danielski, CFO Annual Results Conference, Munich, 03-07-2023 .
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: TRATON Annual Results Conference 2023
TRATON Annual Results Conference 2023 1. Key results & achievements 2. Financial results 3. Strategic focus areas 2023: Deliver 4. Outlook 5. Backup 03-07-2023 Annual Results Conference 2023 | Investor Relations 3 .
Slide 4: Robust performance in a challenging environment
Robust performance in a challenging environment FY 2022 Order intake 335k (-25k) Unit sales 305k (+34k) Sales revenue €40.3 bn (+€10 bn) Vehicle Services €8.5 bn (+€2.1 bn) Adj. operating result €2.1 bn (+€0.5 bn) Adj. RoS 5.1% (-0.1 pp) 03-07-2023 Annual Results Conference 2023 | Investor Relations
Slide 5: Business environment 2022
Business environment 2022 Severe, yet gradually improving bottlenecks Robust truck markets defying in global supply chains high economic uncertainty War in Ukraine hitting Significant inflationary vulnerable economic pressures and resolute post-COVID-19 recovery action of central banks 03-07-2023 An
Slide 6: Continued strong customer demand – restrictive order intake management
UPDATE Continued strong customer demand – restrictive order intake management 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 Q3 Q4 2019 2020 2021 2022 03-07-2023 Annual Results Conference 2023 | Investor Relations 6 .
Slide 7: Group portfolio of battery electric vehicles further expanded in 2022
TRATON GROUP portfolio of battery electric vehicles further expanded in 2022 New MAN eTruck for long-haul heavy-duty transport, to be produced from 2024. Scania expands portfolio, introducing battery electric trucks for regional haulage. TRATON driving sustainable mobility with more electric bus sol
Slide 8: Charging future road transport: Milence starts operations
Charging future road transport: Milence starts operations Milence high-performance charging infrastructure JV launched operations. Organization ramped up, experienced management team in place. Roll-out of Europe’s first large-scale public charging network for heavy-duty trucks and coaches. 03-07-202
Slide 9: Scania decarbonizing its supply chain by 2030
Scania decarbonizing its supply chain by 2030 Already an industry frontrunner, Scania takes its sustainability journey to the next level. Elimination of largest carbon emissions sources from most common production materials and batteries. 2030 target: 100% green batteries, green steel, green aluminu
Slide 10: Key steps in implementation of the TRATON Modular System
Key steps taken in Group-wide implementation of the TRATON Modular System Highly competitive Scania Super launched based on Common Base Engine (CBE). Full production ramp-up to be completed at Scania in H1 23. Key Group-wide development and major step to go common. Cross-brand Product Management and
Slide 11: Actively shaping the transport and logistics ecosystem of the future
TRATON actively shaping the transport and logistics ecosystem of the future VWTB with first sale of self-driving truck used by harvesters in fields and sugarcane crops. Scania and Rio Tinto launched new trials on autonomous mining trucks. Scania and HAVI start pilot of autonomous trucks carrying goo
Slide 12: In summary
In summary TRATON with robust performance in a highly challenging business environment. Record levels in unit sales and sales revenue with continued strong customer demand and high order book. Significant progress along strategic priorities. Disposal of business activities in Russia completed. 03-07
Slide 13: TRATON Annual Results Conference 2023
TRATON Annual Results Conference 2023 1. Key results & achievements 2. Financial results 3. Strategic focus areas 2023: Deliver 4. Outlook 5. Backup 03-07-2023 Annual Results Conference 2023 | Investor Relations 13 .
Slide 14: Strongly improved unit sales and very high order book
Strongly improved unit sales and very high order book Incoming orders Unit sales (k units) (k units) FY 22: 334.6 FY 22: 305.5 Incoming orders on high level with book- (-7%) (+12%) to-bill of 1.1x in FY 22: order acceptance -14% still restrictive, tightly managing supply +16% 95.6 chain and input co
Slide 15: Substantial top-line growth supported by all brands
Substantial top-line growth supported by all brands Sales revenue (€ bn) FY 22: 40.3 (+32%) Sales revenue increased by nearly one third to more than €40 bn for the first time. 32% 11.8 Dynamic quarterly revenue trend due to 10.6 9.5 higher unit sales, favorable price/mix and 8.9 8.5 strong Vehicle S
Slide 16: Positive earnings trajectory throughout 2022
Positive earnings trajectory throughout 2022 Adj. operating result Adj. RoS (€ mn) (%) FY 22: 2,071 FY 22: 5.1 Adjusted operating result significantly up (+472) (-0.1 pp) YoY, benefiting from higher volumes, +448 +3.1 pp price/mix compensating strong input cost 724 6.1 headwinds. 5.2 Profitability r
Slide 17: Q4 2022 performance and key drivers by brands/segments
Q4 2022 performance and key drivers by brands/segments Financial Services Sales revenue 4,645 3,511 2,861 654 361 (in € mn, YoY) (+26%) (+20%) (+53%) (+33%) (+28%) Adj. RoS 10.5% 1.8% 5.9% 9.3% 23.7% (YoY) (+2.0 pp) (+1.7 pp) (+5.9 pp) (+1.4 pp) (-5.1 pp) Key drivers + Strong unit sales + Price + Un
Slide 18: Earnings per share substantially increased
Earnings per share substantially increased Adjusted operating result to earnings after tax, FY 2022 (€ mn, change vs prior-year) 2,071 (+472) EPS at €2.28, up -477 1,564 1,560 (+1,171) (+912) from €0.91 in 2021. -30 -4 -419 1,141 (27%)1 (+684) Adjustments mainly related to sale of activities in Russ
Slide 19: Strong net cash flow in final quarter 2022
Strong net cash flow in final quarter 2022, yet with only small reversal of working capital Net cash flow TRATON Operations (€ mn) 709 Positive net cash flow trend towards year-end 2022 mainly due to improved operating performance. 139 61 -177 Lower than anticipated effect from release of working ca
Slide 20: Net debt position increased due to working capital and cut-off date effects
Net debt position increased due to working capital and cut-off date effects Net financial debt bridge, FY 2022 (€ mn) -2,847 4,171 Purchase price of -1,950 €0.4 bn received for -1,694 -571 sale of Scania FS -672 -3,563 -3,118 Russia following Debt related to closing in Jan 2023. Navistar acquisition
Slide 21: TRATON Annual Results Conference 2023
TRATON Annual Results Conference 2023 1. Key results & achievements 2. Financial results 3. Strategic focus areas 2023: Deliver 4. Outlook 5. Backup 03-07-2023 Annual Results Conference 2023 | Investor Relations 21 .
Slide 22: TRATON Way Forward
TRATON Way Forward Full focus and commitment on execution along strategic framework Decarbonization & Circularity Responsible People & Diversity Company Governance & Ethics Performance-driven Value Navistar as part of TRATON family Creation TRATON goes China Business Model Expansion TRATON Partnersh
Slide 23: TRATON continues path to decarbonization
Responsible Company TRATON continues path to decarbonization with tangible steps in product, supplies and infrastructure First Scania 40-ton regional- haulage eTruck deliveries to customers. Scania with start of production at battery assembly plant in Södertälje/Sweden. Construction of large series
Slide 24: MAN re-alignment on track
Value Creation MAN re-alignment on track with significant benefits from structural measures materializing throughout 2023 Full P&L benefit from sale of Steyr/Austria plant from June. Shift of production capacity to Krakow to be completed in Q4: 2/3 of MAN truck assembly in best-cost countries. Perso
Slide 25: TRATON Financial Services to go live in 2023
TRATON Accelerated! TRATON Financial Services to go live in 2023 Preparations for launch of TRATON FS nearly completed, Current setup most regulatory approvals TRATON SE received and decisions taken. MAN T&B Navistar VWTB Scania Successful global Scania FS operation will be building the FS via partn
Slide 26: Roll-out of TRATON Modular System with focus on Navistar
Strategy Execution & Governance Roll-out of TRATON Modular System continues with particular focus on Navistar First deliveries of new International S13 Integrated Powertrain in H2 2023. New powertrain, based on CBE, combined with updated aerodynamics package. Offering up to 15% improved fuel efficie
Slide 27: Implementing new steering philosophy
Strategy Execution & Governance Implementing new steering philosophy to support roll-out of TRATON Modular System Establishment of Truck Board reflecting Group responsibilities for Product Management, R&D, Procurement and Production. New steering structure to strengthen collaboration, coordination a
Slide 28: Shared values across the TRATON GROUP
Strategy Execution & Governance Shared values across the TRATON GROUP supporting collaboration and execution One shared purpose: Transforming Transportation CUSTOMER FIRST Together. For a sustainable world. CORE VALUES ELIMINATION Updated five shared values OF WASTE RESPECT help us to create the des
Slide 29: TRATON Annual Results Conference 2023
TRATON Annual Results Conference 2023 1. Key results & achievements 2. Financial results 3. Strategic focus areas 2023: Deliver 4. Outlook 5. Backup 03-07-2023 Annual Results Conference 2023 | Investor Relations 29 .
Slide 30: Main themes in 2023
UPDATE Main themes in 2023 Global economic output expected to grow at slow pace; continued inflationary pressures and high interest rates drag. Resilient truck market based on high replacement demand and above-average fleet ages. Supply chains continue to gradually ease, while selected bottlenecks a
Slide 31: Key truck markets continue to be supportive
Key truck markets continue to be supportive, while economic uncertainties remain 400 337 371 k units, > 6t 300 320 Market expectations2 - Above-average fleet age & high pent-up demand EU27+31 200 2023e - Robust logistics demand 100 0 -5% – +10% and freight rates 09 11 13 15 17 19 21 23 600 k units,
Slide 32: Outlook 2023: significant performance improvement
Outlook 2023: TRATON striving to achieve significant performance improvement FY 2022 FY 2023 Outlook Unit sales 305.5 k +5 to +15% +12% Sales revenue €40.3 bn +5 to +15% +32% Operating RoS 5.1% 6.0 to 7.0% (incl. PPA, expected to be (adjusted) (incl. PPA of €317 mn) ~€300 mn) Net cash flow €-625 mn
Slide 33: Key takeaways
Key takeaways TRATON shows resilience and achieves robust financial performance in a highly challenging market environment. Positive sales and earnings trajectory with gradually improving supply chain and production. Key steps taken along TRATON Way Forward strategic agenda and full focus on continu
Slide 34: TRATON Annual Results Conference 2023
TRATON Annual Results Conference 2023 1. Key results & achievements 2. Financial results 3. Strategic focus areas 2023: Deliver 4. Outlook 5. Backup 03-07-2023 Annual Results Conference 2023 | Investor Relations 34 .
Slide 35: 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 6.0-7.0 TRATON Operations 2022 2023e Sales revenue (€ million) 39,554 +5-15% Adjusted RoS (in %) 5.7 6.5-7.5 Net cash flow (€ million) -625 1,300-1,800 Cap
Slide 36: TRATON GROUP – Electric vehicles
TRATON GROUP – Electric vehicles 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) FY 22 FY 22 2,366 1,740 744 586 554 542 526 487 Scania electric bus Navistar electric bus VWT
Slide 37: Sales revenue and adjusted operating result by segment
TRATON GROUP – Sales revenue and adjusted operating result by segment Sales revenue, Q4 2022 (€ mn) Adj. operating result, Q4 2022 (€ mn) Adj. RoS (∆ YoY) 10.5% 1.8% 5.9% 9.3% 6.8% 23.7% 6.1% (+2.0 pp) (+1.7 pp) (+5.9 pp) (+1.4 pp) (+2.6 pp) (-5.1 pp) (+3.1 pp) 654 361 11,789 11,559 (+28%) 86 2,861
Slide 38: TRATON GROUP – Stringent capital allocation
UPDATE TRATON GROUP – Stringent capital allocation FY 2022 Primary R&D Capex Dividend per share TRATON Operations TRATON Operations for 20221 €1.9 bn €1.3 bn €0.70 Primary R&D costs up Investments primarily Increased dividend by 29%, largely due to in new products, incl. proposed to AGM, Navistar co
Slide 39: 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 Group 6,544 7,076 8,049 8,950 30,620 8,525 9,457 10,563 11,789 40,335 TRATON Operations 6,437 6,965 7,900 8,800 30,103 8,363 9,271 10,361 11,559 39,554 Scania Vehicles & Services 3,420 3,735
Slide 40: (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 Q4 22 FY 22 Adj. operating result (€ mn) Q1 21 Q2 21 Q3 21 Q4 21 F
Slide 41: TRATON GROUP – Adjustments
TRATON GROUP – Adjustments FY FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Adjustments (€ mn) 19 20 21 21 21 21 21 22 22 22 22 22 Operating result 1,884 81 155 301 186 -248 393 355 306 -52 955 1,564 Scania V&S Expenses in connection with the EU antitrust proceedings 510 510 17 17 Expenses in connection with the
Slide 42: 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 Q4 22 FY 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 9
Slide 43: Incoming orders and unit sales by brands
TRATON Operations – Incoming orders and unit sales by brands Units Q4 2022 Q4 2021 +/- Q4 2022 Q4 2021 +/- Q4 2022 Q4 2021 +/- Q4 2022 Q4 2021 +/- Incoming orders 23,521 16,338 44% 27,861 42,901 -35% 12,084 18,950 -36% 14,929 13,610 10% Trucks 22,396 15,869 41% 18,696 34,228 -45% 9,960 12,842 -22% 1
Slide 44: 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 TRATON Operations 753 188 -788 786 938 139 -1,534 61 709 -625 Net liquidity/net financial debt Net liquidity/net financial debt (€ mn
Slide 45: Scania Vehicles & Services – Key figures
Scania Vehicles & Services – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) +17 bp +16% 1.60 1.47 36.9 38.5 +44% 1.39 1.26 26.8 25.0 21.0 18.2 19.3 23.5 23.0 26.2 23.1 20.2 21.6 0.90 0.90 0.88 16.3 18.0 16.6 0.71 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 46: MAN Truck & Bus – Key figures
MAN Truck & Bus – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) -35% -74 bp 42.9 +14% 1.71 1.64 1.62 1.56 32.1 35.3 33.2 31.7 34.1 1.37 1.48 27.9 28.7 1.03 23.4 24.0 21.3 25.0 0.97 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
Slide 47: Navistar Sales & Services – Key figures
Navistar Sales & Services – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) -62 bp -36% 1.68 1.75 +35% 29.9 1.17 23.6 1.02 1.04 19.0 20.6 23.5 20.3 22.6 22.0 12.1 14.1 16.2 17.1 0.55 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 2
Slide 48: Volkswagen Truck & Bus – Key figures
Volkswagen Truck & Bus – Key figures Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) +22 bp +10% 1.37 -8% 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 14.9 14.0 16.0 15.6 11.8 14.7 13.7 14.8 10.9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 49: TRATON GROUP – Bonds outstanding
TRATON GROUP – Bonds outstanding TRATON with well-tested access to the debt capital markets €5.7 bn in bonds outstanding per 12-31-2022 Note: As of 01-31-2023 03-07-2023 Annual Results Conference 2023 | Investor Relations 49 .
Slide 50: TRATON GROUP – Debt maturity profile
TRATON GROUP – Debt maturity profile Maturity profile (€ bn)1 Major financings Debt overview (€ bn) 9 • €700 mn Schuldschein TRATON financial debt 19.9 (tranches of 3y, 5y and 7y) thereof CI/OP 9.3 • Total of €5.7 bn bonds (tranches of 1.5y to 12y) thereof FS 10.6 • €4.5 bn syndicated RCF Leasing (I
Slide 51: 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 Marie Fischhaber Fabian Schimpf Analysts and Investors +49 152 256 00 705
Slide 52: Annual Results Conference, Munich, 03-07-2023
Christian Levin, CEO | Annette Danielski, CFO Annual Results Conference, Munich, 03-07-2023 .