Traton Se · XETR:8TRA
Traton — H1 2020 Earnings Presentation
29 slides from Traton's earnings presentation, Jul 31, 2020
Slide 1: Press Conference Call – Half-Year Financial Report 2020
PRESS CONFERENCE CALL – HALF-YEAR FINANCIAL REPORT 2020 MATTHIAS GRÜNDLER, CEO CHRISTIAN SCHULZ, CFO MUNICH - JULY 31, 2020
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: Your Presenters Today
PRESS CONFERENCE CALL HALF-YEAR FINANCIAL REPORT 2020 – YOUR PRESENTERS TODAY Matthias Christian Julia Gründler Schulz Kroeber-Riel Chief Executive Officer Chief Financial Officer Head of Group Communications & Governmental Relations 3
Slide 4: Agenda
AGENDA 1. TRATON Team Setup 2. Challenging Environment 2020 3. Core KPIs Half-Year 2020 4. Going forward 5. Q&A 4
Slide 5: Executive Board TRATON SE
EXECUTIVE BOARD TRATON SE Matthias Christian Christian Gründler Schulz Levin CEO CFO COO Finance R&D Business Development Procurement Henrik Dr. Andreas Antonio Roberto Henriksson Tostmann Cortes CEO Scania CEO MAN CEO VWCO 5
Slide 6: Agenda
AGENDA 1. TRATON Team Setup 2. Challenging Environment 2020 3. Core KPIs Half-Year 2020 4. Going forward 5. Q&A 6
Slide 7: Overall Challenging Environment: Status 2020
OVERALL CHALLENGING ENVIRONMENT: STATUS 2020 Global economy collapsing as a result of coronavirus pandemic Political environment is challenging and changing Business climate in transportation industry in downturn Challenging company environment balancing health and business 7
Slide 8: Global Economic Outlook 2020 Significantly Deteriorated
DEEP DIVE GLOBAL ECONOMY GLOBAL ECONOMIC OUTLOOK 20201 SIGNIFICANTLY DETERIORATED – CONTRACTION IS EXPECTED TO BE WORSE THAN DURING FINANCIAL CRISIS2 GDP forecast1 (%) 6.0 4.4 6,0 3.3 2.0 2.2 1.6 1.3 1.1 1.4 1.2 1.0 -1.0 -3.0 -3.0 -4.9 -5.3 -6.1 -5.9 -7.0 -6.5 -8.0 -8.0 -7.5 -7.8 -9.1 -10.2 -10.2 Em
Slide 9: Good Political Measures for a Restart Are Discussed
DEEP DIVE POLITICAL ENVIRONMENT GOOD POLITICAL MEASURES FOR A RESTART ARE DISCUSSED – NOW IT IS TIME TO PUT THEM INTO PRACTICE Kick-starting the transport sector. EU-wide investment program would help environment and economy ... now Europe has to follow suit. EU recovery fund needs to be concluded a
Slide 10: Business Climate in the Transport Sector Still Challenging
DEEP DIVE BUSINESS CLIMATE BUSINESS CLIMATE IN THE TRANSPORT SECTOR STILL CHALLENGING… Road freight Transport & Logistics 60 60 40 40 Business climate in Germany in both sectors 20 continues to be negative 20 2.0 0 0 2017 2018 2019 2020 Assessment of the 2017 2018 2019 2020 - 4 .2 situation is clear
Slide 11: But Positive Direction Established Since May
DEEP DIVE COMPANY ENVIRONMENT …BUT POSITIVE DIRECTION ESTABLISHED SINCE MAY UNIT SALES (`000 units) UNIT SALES (Y-o-Y change) Book-to-bill1 (ratio in units) 1.05 1.05 1.04 66.7 66.2 16% 17% 13% 63.1 10% 12% 58.9 57.2 7% 53.2 54.2 55.8 3% 46.0 -5% 31.7 -20% -37% 14.5 7.4 9.8 -52% -56% -64% Q1 Q2 Q3 Q
Slide 12: Current Situation – Vehicle Utilization Near Pre-Crisis Levels
DEEP DIVE COMPANY ENVIRONMENT CURRENT SITUATION – VEHICLE UTILIZATION NEAR PRE-CRISIS LEVELS CHINA EUROPE BRAZIL Long-haulage truck business back to After the trough beginning of April, After the trough beginning of April, normal levels since long-haulage truck business long-haulage truck business m
Slide 13: Agenda
AGENDA 1. TRATON Team Setup 2. Challenging Environment 2020 3. Core KPIs Half-Year 2020 4. Going forward 5. Q&A 13
Slide 14: Current Situation – April Responsible for Most of the Decline in Q2
DEEP DIVE COMPANY ENVIRONMENT CURRENT SITUATION – APRIL RESPONSIBLE FOR MOST OF THE DECLINE IN Q2 Industrial Business Q2 2020 Financial Services Q2 2020 Key performance indicators largely derailed by Comparatively stable business production stoppage and the decline in over the quarter economic activ
Slide 15: Snapshot TRATON Group Core KPIs Half-Year 2020
DEEP DIVE COMPANY ENVIRONMENT SNAPSHOT TRATON GROUP CORE KPIS HALF-YEAR 2020 H1 2020 H1 2019 Change Trucks and buses (units) Order intake 87,431 120,491 -27% Book to bill1 (ratio in units) 1.12 0.98 +0.14 bpt Unit sales 77,738 123,336 -37% of which trucks2 70,489 113,112 -38% of which buses 7,249 10
Slide 16: Core KPIs Half-Year 2020 – Industrial Business and Financial Services
DEEP DIVE COMPANY ENVIRONMENT DEEP DIVE CORE KPIS HALF-YEAR 2020 – TRATON‘S TWO SEGMENTS INDUSTRIAL BUSINESS AND FINANCIAL SERVICES H1 2020 H1 2019 Change Industrial Business (€ million) Sales revenue 9,854 13,320 -26% Operating profit -265 1,008 €-1,273 mn Operating RoS (in %) -2.7 7.6 -10,3 ppt Ca
Slide 17: Scania Vehicles & Services – Core KPIs Half-Year 2020
DEEP DIVE COMPANY ENVIRONMENT SCANIA VEHICLES & SERVICES – CORE KPIS HALF-YEAR 2020 H1 2020 H1 2019 Change Trucks and buses (units) Order intake 34,273 48,789 -30% Unit sales 30,437 51,524 -41% of which trucks 27,655 47,995 -42% of which buses 2,782 3,529 -21% Financial key performance indicators (€
Slide 18: MAN Truck & Bus – Core KPIs Half-Year 2020
DEEP DIVE COMPANY ENVIRONMENT MAN TRUCK & BUS – CORE KPIS HALF-YEAR 2020 H1 2020 H1 2019 Change Trucks and buses (units) Order intake 38,192 54,878 -30% Unit sales 31,662 54,028 -41% of which trucks1 29,531 50,890 -42% of which buses 2,131 3,138 -32% Financial key performance indicators (€ million)
Slide 19: Volkswagen Caminhões e Ônibus – Core KPIs Half-Year 2020
DEEP DIVE COMPANY ENVIRONMENT VOLKSWAGEN CAMINHÕES E ÔNIBUS – CORE KPIS HALF-YEAR 2020 H1 2020 H1 2019 Change Trucks and buses (units) Order intake 15,175 19,362 -22% Unit sales 15,887 20,384 -22% of which trucks 13,540 16,681 -19% of which buses 2,347 3,703 -37% Financial key performance indicators
Slide 20: Economic Effects of COVID-19 Will Impact Market Development in 2020
DEEP DIVE COMPANY ENVIRONMENT ECONOMIC EFFECTS OF COVID-19 PANDEMIC WILL IMPACT THE MARKET DEVELOPMENT IN 2020; A RELIABLE FORECAST IS CURRENTLY IMPOSSIBLE For detailed slides see IR presentation Half-Year 2020 20
Slide 21: Focus on Safeguarding Liquidity
DEEP DIVE COMPANY ENVIRONMENT FOCUS ON SAFEGUARDING LIQUIDITY SOLID LIQUIDITY POSITION (as of June 30, 2020) (€bn) 5.6 Strict cash and cost management Unrestricted cash1 totaling more than €2.6 bn Credit lines totaling more than €5.6 bn 2.6 Re-prioritize of our capital expenditures and our research
Slide 22: Debut Syndicated Revolving Credit Facility (RCF)
DEEP DIVE COMPANY ENVIRONMENT DEBUT SYNDICATED REVOLVING CREDIT FACILITY (RCF) €3.75 BN RCF SUCCESSFULLY SIGNED BY TRATON SE ON JULY 29, 2020 Ample frame amount (€3.75 bn) The debut syndicated RCF marks an Comfortable maturity (“3+1+1y”) important step to back TRATON’s recently TRATON published
Slide 23: Agenda
AGENDA 1. TRATON Team Setup 2. Challenging Environment 2020 3. Core KPIs Half-Year 2020 4. Going forward 5. Q&A 23
Slide 24: It's More Important Than Ever to Act Here and Now
DEEP DIVE COMPANY ENVIRONMENT IT‘S MORE IMPORTANT THAN EVER BEFORE TO ACT HERE AND NOW WHILE NOT LOSING SIGHT OF OUR STRATEGIC LONG TERM GOALS Act today while planning for tomorrow Investing focused into the future Pursuing known opportunity spaces Shoring up core business Saving liquidity and minim
Slide 25: Act Today While Planning for Tomorrow
DEEP DIVE COMPANY ENVIRONMENT IT‘S MORE IMPORTANT THAN EVER BEFORE TO ACT HERE AND NOW WHILE NOT LOSING SIGHT OF OUR STRATEGIC LONG TERM GOALS Act today while planning for tomorrow Act today... …while planning for tomorrow • Temporary production stops and restart in all plants • All important innova
Slide 26: Future Development
DEEP DIVE COMPANY ENVIRONMENT FUTURE DEVELOPMENT The impact of the COVID-19 pandemic on customer demand and supply chains still cannot be estimated with any degree of reliability. Business outlook for FY 2020 currently not reliably possible. Conditional upon a further increase in the number of COVID
Slide 27: Agenda
AGENDA 1. TRATON Team Setup 2. Challenging Environment 2020 3. Core KPIs Half-Year 2020 4. Going forward 5. Q&A 27
Slide 28: Press Conference Call – Half-Year Financial Report 2020
PRESS CONFERENCE CALL – HALF-YEAR FINANCIAL REPORT 2020 MATTHIAS GRÜNDLER, CEO CHRISTIAN SCHULZ, CFO MUNICH - JULY 31, 2020
Slide 29: Contacts Group Communications
CONTACTS GROUP COMMUNICATIONS Julia Kroeber-Riel Sacha Klingner Sebastian Rausch Matthias Karpstein Head of Group Communications Head of Corporate Financial Media Relations Business Media Relations & Governmental Relations Communications julia.kroeber-riel@traton.com sacha.klingner@traton.com sebast