Traton Se · XETR:8TRA
Traton — 9M 2021 Earnings Presentation
36 slides from Traton's earnings presentation, Oct 28, 2021
Slide 1: Press Call 9M 2021 Interim Statement
Press Call 9M 2021 Interim Statement Christian Levin, CEO | Annette Danielski, CFO Munich, 10-28-2021
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: Your Presenters Today
Press Call 9M 2021 Interim Statement YOUR PRESENTERS TODAY Christian Levin Annette Danielski Pietro Zollino1 Chief Executive Officer Chief Financial Officer Head of Group Communications 1 as of 11-01-2021 10-28-2021 Press Call 9M 2021 Interim Statement 3
Slide 4: TRATON GROUP Executive Board Members
TRATON GROUP Executive Board Members MANAGEMENT Christian Levin1 Annette Danielski1 Bernd Osterloh CEO TRATON SE and Scania CFO TRATON SE CHRO TRATON SE and MAN Truck & Bus Dr. Ing. h.c. Andreas Tostmann Antonio Roberto Cortes Mathias Carlbaum1 CEO MAN Truck & Bus CEO Volkswagen Caminhões e Ônibus C
Slide 5: Agenda
Agenda 1. Environment 2. Core KPIs 9M 2021 3. Going forward 4. Q&A 10-28-2021 Press Call 9M 2021 Interim Statement 5
Slide 6: TRATON GROUP delivers good results despite chip shortage
TRATON GROUP delivers good results despite chip shortage Limited comparison of figures due to Navistar consolidation KEY FACTS 9M 2021 Incoming orders Unit sales Business recovery continued, up more than 80% to up more than 50% to 268,317 195,422 but supply chain management was very challenging FY 2
Slide 7: Supply chain management and decarbonization in focus
Supply chain management and decarbonization in focus Political Environment Global Economy CV industry committed to IMF lowered global growth decarbonization, but needs the outlook as supply bottlenecks right framework from politics burden recovery TRANSFORMING TRANSPORTATION TOGETHER Company Environ
Slide 8: Global economy continues to recover, with less momentum
Deep dive global economy Global economy continues to recover, with less momentum 2020 2021 2022 2020 2021 2022 2020 2021 2022 7.0% 5.9% 6.0% 6.0% 4.9% 5.2% 5.0% 4.6% 4.3% Oct July Oct July Oct July –3.1% –3.4% –6.3% World Euro Area US „Supply disruptions pose another policy challenge. … pandemic out
Slide 9: Business climate in Europe getting weaker since peak in March
Deep dive business climate Business climate in Europe getting weaker since peak in March 2017 2018 2019 2020 2021 100 80 60 40 20 0 –20 –40 –60 Monthly European truck (> 16t) registrations (k units)1 YoY change (in %) 1) ACEA new heavy commercial vehicles (HCV) registrations of 16t and over for EU +
Slide 10: Electrification plays a major role in TRATON's new strategy
Deep dive political environment Electrification plays a major role in TRATON’s new strategy Right political framework must be in place very soon CO2-based tolls, subsidy programs for the purchase of electrified HDVs, development of DC fast- Clear E-Mobility Strategy charging infrastructure on High i
Slide 11: Nearly 100.000 incoming orders in Q3 2021
Deep dive company environment Nearly 100.000 incoming orders in Q3 2021 Limited comparison of figures due to Navistar consolidation 100 97 K1 90 80 69 K1 70 60 k units 50 40 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 18 18 18 18 19 19 19 19 20 20 20 20 21 21 21 Incoming orders Unit sale
Slide 12: Agenda
Agenda 1. Environment 2. Core KPIs 9M 2021 3. Going forward 4. Q&A 10-28-2021 Press Call 9M 2021 Interim Statement 12
Slide 13: TRATON GROUP is growing with Navistar integration
TRATON GROUP is growing with Navistar integration TRATON GROUP prior to Navistar acquisition + TRATON GROUP including Navistar Navistar Industrial Business Financial Services integration Industrial Business Financial Services Navistar Manufacturing Navistar Financial Operations Services Effects base
Slide 14: TRATON GROUP Core KPIs 9M 2021
Deep dive company environment TRATON GROUP Core KPIS 9M 2021 Limited comparison of figures due to Navistar consolidation Units 9M 2021 9M 2020 Change Trucks and buses Incoming orders 268,317 145,933 84% Unit sales 195,422 127,660 53% Book to bill1 1.37 1.14 23 bp (ratio in units) Of which trucks2 18
Slide 15: Deep Dive Group Core KPIs
Deep dive company environment Deep Dive Group Core KPIS Limited comparison of figures due to Navistar consolidation Units 9M 2021 9M 2020 Change Industrial Business (€ million) Sales revenue 21,305 15,419 38% Adj. operating result1 1,157 –91 1,247 Adj. operating ROS2 5.4% –0.6% 6.0 pp Capex3 622 602
Slide 16: Scania Vehicles & Services – Core KPIs
Deep dive company environment Scania Vehicles & Services – Core KPIS Units 9M 2021 9M 2020 Change Trucks and buses Incoming orders 100,460 60,207 67% Unit sales 67,235 47,735 41% Financial KPIs (€ million) Sales revenue 10,251 8,094 27% Operating result 1,099 419 680 Operating ROS 10.7% 5.2% 5.5 pp
Slide 17: MAN Truck & Bus – Core KPIs
Deep dive company environment MAN Truck & Bus – Core KPIS Units 9M 2021 9M 2020 Change Trucks and buses Incoming orders 100,630 59,745 68% Unit sales 68,622 53,543 28% Financial KPIs (€ million) Sales revenue 8,018 6,567 22% Adj. operating result1 245 –414 659 Adj. operating ROS2 3.1% –6.3% 9.4 pp 1
Slide 18: Volkswagen Caminhões e Ônibus – Core KPIs
Deep dive company environment Volkswagen Caminhões e Ônibus – Core KPIS Units 9M 2021 9M 2020 Change Trucks and buses Incoming orders 43,631 26,287 66% Unit sales 45,608 26,772 70% Financial KPIs (€ million) Sales revenue 1,623 931 74% Operating result 132 –6 138 Operating ROS 8.1% –0.6% 8.8 pp 10-2
Slide 19: Navistar Manufacturing Operations – Core KPIs
Deep dive company environment Navistar Manufacturing Operations – Core KPIS Units 9M 20211 Trucks and buses Incoming orders 23.638 Unit sales 14.074 Financial KPIs (€ million) Sales revenue 1.681 Operating result 42 Operating ROS 2.5% 1) July 1 until Sept 30 2021 10-28-2021 Press Call 9M 2021 Interi
Slide 20: Positive truck market outlook, but risks increasing
Deep dive company environment Positive truck market outlook, but risks increasing 376 400 k units > 6t 341 300 300 Market expectations2 EU27+31 200 273 2021e 100 0 +10% – +25% 2009 2011 2013 2015 2017 2019 2021e 300 k units > 6t 144 Market expectations2 South 200 180 100 161 2021e America 129 +25% –
Slide 21: TRATON Outlook 2021 – Recovery after strong decline, but challenges increasing
TRATON Outlook 2021 – Recovery after strong decline, but challenges increasing TRATON Classic TRATON Classic TRATON FY 2021 Outlook FY 2021 Outlook FY 2020 07-28-211 10-28-212 190.2 k sharp very sharp Unit sales –21% increase increase €22.6 bn substantial very sharp Sales revenue –16% increase incre
Slide 22: Agenda
Agenda 1. Environment 2. Core KPIs 9M 2021 3. Going forward 4. Q&A 10-28-2021 Press Call 9M 2021 Interim Statement 22
Slide 23: We set clear priorities going forward
We set clear priorities going forward 1 Responsible Company Decarbonization & Circularity Make responsible behavior a People & Pluralism top priority in everything we do Governance & Ethics 2 Value Creation Performance-driven Focus on sustainable value creation Navistar as a part of TRATON family fo
Slide 24: Electrification is already on its way
Responsible company Electrification is already on its way ELECTRIC VEHICLES INCOMING ORDERS UNIT SALES 9M 2021 TRATON GROUP 1151 666 Trucks (incl. MAN TGE) 830 606 Trucks Scania 117 21 Scania electric truck MAN electric bus Trucks MAN 2 3 (25 P BEV) (Lion´s City E) MAN TGE 699 582 Trucks Navistar1 1
Slide 25: Responsible behavior as top priority
Responsible company Responsible behavior as top priority RESPONSIBLE BEHAVIOR Scania joins The Climate Pledge MAN joins the Science Based Targets Initiative Scania is joining Amazon and Global Optimism in The Climate Sustainability is a key component of the "NewMAN" Pledge, and is now one of the com
Slide 26: Achieving sustainable profitability of MAN is top priority
Value creation Achieving sustainable profitability of MAN is top priority OBJECTIVES AND ACHIEVEMENTS Reduction of about 3,500 jobs in Germany ► Clear focus on sustainable profitability of MAN Truck & Bus ► Profitability as basis for investments in future technologies Restructuring of the production
Slide 27: Navistar at a glance
Value creation Navistar at a glance KEY FACTS LOCATIONS #4 Independent Employees Dealers North America USA Huntsville (AL) Lisle (IL) New Carlisle (IN) Springfield (OH) Tulsa (OK) San Antonio (TX, 2022) Mexico Escobedo Engine plant Manufacturing plant > 1,000 ~14,300 In US market Proving grounds for
Slide 28: Strengthen Navistar to regain market share
Value creation Strengthen Navistar to regain market share HDT market share development over time (combined class 8) HISTORICAL MARKET SHARES POTENTIAL Financial MaxxForce engine issues crisis 26% 13% 2009 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2025 10-28-2021 Press Call 9M 2021 Interim Stateme
Slide 29: Navistar has multiple opportunities for value creation
Value creation Navistar has multiple opportunities for value creation Expand beyond the core Leverage dealer & 3 service network Strengthen Navistar to 2 Largest dealer network in North America regain market share After sales uplift / Industry leading aftersales support Common Base 1 Continued stron
Slide 30: Navistar as important new member in our strong family
Value creation Navistar as important new member in our strong family The TRATON GROUP has matured Modularization is key on our way to stronger profitability Our future focus will be much more on execution The GROUP has a clear value for all its brands We will use scalability for better performance P
Slide 31: Common Base Engine introduction
Value creation Common Base Engine introduction Powertrain package introduced Planned market introduction across brands Scania: Introduction of the new 13-litre range in November; start of production scheduled during the second quarter of 2022 MAN: Construction has started on CBE production site in N
Slide 32: China is one of the most important profit pools
TRATON Accelerated! China is one of the most important profit pools 1.6 mn No.1 Trucks sold in 2020 World’s largest single market for CV Scania 1st 40% Independent Production Scania will be first western truck manufacturer with fully of global sales independent production in China are generated in C
Slide 33: High performance charging network for Europe
TRATON Accelerated! High performance charging network for Europe . >1,700 Public charging points Memorandum of Understanding signed Pioneer high-performance public charging network 500 Mio for battery electric heavy-duty long-haul trucks and coaches across Europe planned EUR Invest Accelerate the bu
Slide 34: Agenda
Agenda 1. Environment 2. Core KPIs 9M 2021 3. Going forward 4. Q&A 10-28-2021 Press Call 9M 2021 Interim Statement 34
Slide 35: Contacts Corporate Communications
Contacts Corporate Communications CORPORATE COMMUNICATIONS Pietro Zollino1 Sacha Klingner Matthias Karpstein Head of Group Communications Head of Corporate Communications Business Media Relations TRATON SE Dachauer Str. 641 | 80995 Munich www.traton.com 1 as of 11-01-2021 10-28-2021 Press Call 9M 20
Slide 36: Press Call 9M 2021 Interim Statement
Press Call 9M 2021 Interim Statement Christian Levin, CEO | Annette Danielski, CFO Munich, 10-28-2021