Traton Se · XETR:8TRA
Traton — Investor Day (May 2022)
17 slides from Traton's investor day presentation, May 18, 2022
Slide 1: Navistar - Accelerate the impact of sustainable mobility
Navistar - Accelerate the impact of sustainable mobility TRATON Capital Markets Day Mathias Carlbaum, CEO and President of Navistar Södertälje, 05-18-2022 .
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: Navistar today
Navistar today Core business: Largest dealer and Primary business Class 6-8 trucks and buses service network operations in: in U.S. and Canada in North America1 U.S. Canada TWO-FIFTHS Mexico of all U.S. school buses on the #1 brand in school buses2 Headquarters: road today are our IC Bus® brand Lisl
Slide 4: Establishing new strategic momentum post-merger
Establishing new strategic momentum post-merger Accomplished since the merger … … and there is much more to come Strong progress in integrating Navistar into Unify our values and culture with TRATON to TRATON’s operations guide us every day Broadened management team with strong Create solutions that
Slide 5: Navistar's new strategy: Accelerating our impact
Navistar’s new strategy: Accelerating our impact Sustainable Impact Profitable Culture & Performance Leadership Foundation 5 for Future 5 .
Slide 6: Uniting our cultures makes us stronger together
Uniting our cultures makes us stronger together / / / 6 .
Slide 7: Sustainable impact: Our commitment
Sustainable impact: Our commitment Achieve 50% Establishing Develop circular zero-emissions science-based business model by 2030, 100% targets for to maximize by 2040, and decarbonization resources and carbon-neutral minimize waste by 2050 Total social impact Diversity, equity and inclusion positive
Slide 8: Building blocks to deliver stronger profitable performance
Building blocks to deliver stronger profitable New integrated powertrain and electric offerings to 1 grow customer satisfaction and profitability through value- based pricing 9% 2 Dealer performance improvement through ownership rationalization and improved effectiveness 3 New service and solutions
Slide 9: Modular integrated powertrain to drive improved class 8 profitability
1 Modular integrated powertrain to drive Class 8 improved class 8 profitability Navistar’s 13L/15L engine split Value proposition Service business 15L Day 1 sale Heavy truck engine proportion 15L Profit potential 5x service potential Industry split 40% margin increase 2x 13L at least 13L Today Ambit
Slide 10: Substantial opportunity to lead electric transition
1 Substantial opportunity to lead electric transition Class 6/7 & Bus Bus market share Electrification IC Bus® brand is #1 in School Bus Medium Duty the school bus industry by 2032… Average market size: 32k Ideal 95% 70% markets electric electric Class 6/7 (medium duty) market share for electric Ele
Slide 11: Drive greater dealer performance
2 Drive greater dealer performance Rationalizing dealer network Improving the performance Increasing customer base 50% increase Dealer ownership groups Customer count 133 2018 2021 2024 Today Ambition 11 .
Slide 12: Expand service and solution offerings
3 Expand service and solution offerings Expanding our solution offerings Strong revenue and margin growth Parts and hardware Service and solutions Doubling revenues & increase margin by Revenue potential (per vehicle %) Aftersales and solutions revenue 500 bps Un-tapped Bundled potential solution of
Slide 13: Optimize cost efficiency and group technology
4 Optimize cost efficiency and group technology Modularization Production footprint optimization Reducing complexity through collaboration Driving conversion cost improvement Shared R&D Global purchasing scale Integrating Group technologies Transitioning effectively component spend 13 .
Slide 14: Expand financial services
5 Expand financial services Captive finance potential Adding value for the customer Expand into new revenue streams 3 to support the transition to new technologies and business models Share of vehicles financed 3x Offer tailor-made and bundled growth 2 financing solutions potential Exit outsourced a
Slide 15: Resulting in market share recovery
6 Resulting in market share recovery Class 6-8 market share Factors driving market share growth Introduction of world class group driveline Ambition: To grow at least 1% point of share per year Electrification Market share potential #1 dealer network in North America Expanded service offerings 14% t
Slide 16: Foundation for future
Foundation for future Digitalization Unlocking Zero-emissions Key strategic principle new 50% of vehicles sold by 2030 business models Autonomous Common Group components Cooperative future solution offerings Group-wide modular components 16 .
Slide 17: Navistar is accelerating its impact
Navistar is accelerating its impact 1 Recover market share through offering new technologies, services and solutions 9% Strategic 2 Create greater value for our customers by leveraging TRATON RoS GROUP Modular System target 3 Optimize our assets with a benchmark cost structure and investment efficie