Volkswagen Ag · XETR:VOW
Volkswagen — Q3 2023 Earnings Presentation
34 slides from Volkswagen's earnings presentation, Oct 26, 2023
Slide 1: Investor, Analyst and Media Call 9M 2023
Investor, Analyst and Media Call 9M 2023 October 26th 2023 1
Slide 2: Disclaimer
Disclaimer The following presentations as well as remarks/comments and explanations in this context contain forward-looking statements on the business development of the Volkswagen Group. These statements are based on assumptions relating to the development of the economic, political and legal envir
Slide 3: Highlights, Financials
1 Highlights 2 Financials
Slide 4: Volkswagen Group Highlights Q3 2023
Volkswagen Group Highlights Q3 2023 Marina sucht Foto ohne Mauer VW ID series: Tech upgrades for the Success by design: Stronger focus on VW ID.7 wins German Car of the Year ID.4 and ID.5 design strategy and orientation 2024 award Refreshing product portfolio with Presentation IAA: Decisive progress
Slide 5: Volkswagen Group Deliveries: 6.7mn vehicles delivered globally
Volkswagen Group Deliveries 900 Deliveries [‘000 units / per month] 6.7mn vehicles 2022 2023 delivered globally 800 700 600 500 400 01 02 03 04 05 06 07 08 09 10 11 12 Global deliveries BEV deliveries Slovenia flooding Q3 +7% YoY increased by impacted production 9M +11% YoY 45% YoY in 9M by >100k un
Slide 6: BEV Deliveries: 532k BEVs delivered to customers
BEV Deliveries: 532k BEVs delivered to customers Full year target of 8 to 10% in 2023 in sight after 9M Quarterly Development Outlook BEV Deliveries [‘000 units] BEV share [%] 2023 BEV Share [%] 8-10% 9% 8% 210 206 7% 181 7% 141 149 5% 118 122 108 99 60 58 33 30 Q1 Q2 Q3 Q4 2021 2022 2023e 2021 2022
Slide 7: Highlights, Financials
1 Highlights 2 Financials
Slide 8: Financial Overview
Financial Overview Solid underlying performance Vehicle Sales Sales Revenue Operating Result and Margin 2 [m vehicles] [€ bn] [€ bn] Margin [%] Fair value of derivatives outside hedge accounting 3 +16% 235.1 8.6% 6.9% 202.9 -7% ∑ 17.4 0.8 ∑ 16.2 +8% 6.2 6.8 16.7 18.7 +18% (8.2%) (8.0%) Excl. 3.9 4.
Slide 9: Automotive Net Cash Flow and Net Liquidity
Automotive Net Cash Flow and Net Liquidity Strong gross cash flow partially offset back by working capital build-up Rep. Net Cash Flow [CCR] 1 'Clean' Net Cash Flow 1, 2 Net Liquidity 1 [€ bn] [€ bn] [€ bn] -15% 43.0 -35% 9.2 36.7 -11% 5.6 6.0 4.9 43% 37% Jan-Sep Jan-Sep Jan-Sep Jan-Sep 31 Dec 30 Se
Slide 10: Automotive Net Liquidity
Automotive Net Liquidity Well within target corridor of € 35bn to € 40bn despite high dividend payments to shareholders Reported Net Cash Flow (€ 4.9bn) 1 Clean Net Cash Flow 1.6 -0.5 -0.5 4.4 -4.4 43.0 -6.5 thereof € -5.6bn due to 1.0 -1.3 increase in inventories 36.7 31 Dec Operating Dividend of D
Slide 11: Operating Result by Division
Operating Result by Division Passenger Cars held back by € -2.5bn hedging effects; Commercial Vehicles strongly improved Automotive Division Financial Services Division Passenger Cars 2, 3 Commercial Vehicles 2, 4 Financial Services Operating Result [€ bn] Operating Result [€ bn] Operating Result [€
Slide 12: Operating Result Passenger Cars
Operating Result Passenger Cars Robust underlying performance overshadowed by significant swing in derivatives Operating Result 1 Operating Result [€ bn] Margin [%] -3.5 6.3 -15% 12.1 12.1 -3.4 10.3 -1.3 10.3 Thereof: Volume & other: +4.5 Mix: +0.4 Price: +1.4 8.8% 6.5% Jan-Sep Jan-Sep Jan-Sep Volu
Slide 13: Steering Framework for Group management
Steering Framework for Group management Proof points YTD Core Progressive Sport Luxury Truck & Bus • 100%TechCo teams up with ThunderSoft and Horizon Robotics • Progress in CARIAD realignment, intensified tech partnerships and Architecture “local-for-local” approach • Dry Coating of battery cells as
Slide 14: Increasing contribution from overhead cost program
Increasing contribution from overhead cost program Group overhead cost 1 Group overhead cost 1 [in €bn as % of Automotive revenue] TRATON [in €bn] Power Engineering1 [in €bn] Passenger Cars [in €bn] Plant program 19.5% 17.2% 17.1% Working capital 45 15.7% management 41.4 40.0 40 1.2 1.0 5.2 Purchasi
Slide 15: Brand Group Core
Brand Group Core Vehicle Sales [‘000 units] Sales Revenue [€ bn] Key Takeaways +21% +24% Results driven by volume and 3,575 101 price, partially offset by product 2,957 81 and fixed costs increases Significant impact on ICE Jan-Sep Jan-Sep Jan-Sep Jan-Sep production from Slovenia flooding 2022 2023
Slide 16: Brand Group Progressive
Brand Group Progressive Vehicle Sales [‘000 units] Sales Revenue [€ bn] Key Takeaways +23% +13% Operating result supported 945 50 by volume but held back by lower 766 45 residual values and product costs Fair value of derivatives outside Jan-Sep Jan-Sep Jan-Sep Jan-Sep hedge accounting of € -0.9bn;
Slide 17: Brand Group Sport Luxury
Brand Group Sport Luxury Vehicle Sales [‘000 units] Sales Revenue [€ bn] Key Takeaways +13% +14% Increased sales and unchanged 250 28 strong demand at good mix & 221 24 pricing with more balanced global sales footprint Jan-Sep Jan-Sep Jan-Sep Jan-Sep 2022 2023 2022 2023 Operating Result 1 [€ bn / Ro
Slide 18: Software – CARIAD
Software – CARIAD Contracted Licenses [‘000 units] Sales Revenue [€ bn] Key Takeaways +34% +29% Negative operating result driven by 0.5 accelerated efforts to secure 17,829 0.4 13,274 upcoming software launches Total Total Operating Cash flow of 30 Sep 30 Sep Jan-Sep Jan-Sep ~ € -2.5bn partially off
Slide 19: Battery Business
Battery Business Operating Result [€ bn] Key Takeaways Three sites for cell factories decided: Salzgitter, Valencia and St. Thomas in Canada -0.0 “Gamechanger”: Dry Coating to save ~30% energy, ~15% floor space -0.2 required and millions of Euros production costs Jan-Sep Jan-Sep 2022 2023 Groundbrea
Slide 20: Brand Group Trucks – TRATON
Brand Group Trucks – TRATON 1 Vehicle Sales [‘000 units] Sales Revenue [€ bn] Key Takeaways +15% +19% Vehicle sales increased by 15% due 250 33 to very high order backlog and 218 28 improved supply chains Revenue growth driven by higher Jan-Sep Jan-Sep Jan-Sep Jan-Sep volume, positive market/product
Slide 21: Volkswagen Group Mobility
Volkswagen Group Mobility Contracts [‘000 units] Credit Loss Ratio [%] Key Takeaways Financing Leasing Insurance/Services Stable contract volume = -4bps 21,958 22,049 0.4 0.32 0.28 Credit loss ratio decreased YoY 0.0 30 Sep 30 Sep Jan-Sep Jan-Sep Normalization of 2022 2023 2022 2023 used car prices
Slide 22: Automotive Investment Ratio
Automotive Investment Ratio Final phase of ICE investments for 2024, numerous upcoming product launches and software R&D / Capex – Absolute and Ratio (Automotive Division) [€ bn] CAPEX Reducing complexity / R&D variances ∑ 12.7% ∑ 13.7% ∑ 12.5% ∑ 12.5% ∑ ~14.5% (€ 26.1bn) (€ 31.6bn) (€ 21.0bn) (€ 24
Slide 23: China Joint Ventures
China Joint Ventures Proportionate Operating Result 2021 until 2023 Key Takeaways ∑ 3,280 ICE market leadership ∑ 3,026 strengthened, BEV sales 722 momentum accelerating 2,479 Q4 1,064 Operating results holding up ~600 well in challenging competitive 1,156 environment Q3 690 727 Proportionate operat
Slide 24: Volkswagen Group Outlook for 2023 updated
Volkswagen Group Outlook for 2023 1 updated Actual 9M Outlook 2022 1 2023 2023 2 Deliveries to customers 8.3m vehicles 6.7m vehicles 9.0m to 9.5m vehicles (+11%) (+8% to +15%) Sales revenue € 279.2bn € 235.1bn € 307bn to € 321bn (+16%) (+10% to +15%) €22.5 bn € 16.2 bn around level of previous Opera
Slide 25: Investor, Analyst and Media Call 9M 2023
Investor, Analyst and Media Call 9M 2023 October 26th 2023 25
Slide 26: BACKUP
VOLKSWAGEN a
Slide 27: Our path along our sustainability commitment
Our path along our sustainability commitment 2023 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 1) Association Climate Responsible Raw Volkswagen Group Review 2023 published Material Report Sustainability published on Report 2022 2) ISS ESG Rating: human rights published Volkswagen Group supply ch
Slide 28: Underlying operating result
Underlying operating result Underlying Operating Result 1, 2 [€ bn] Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 1.3 7.1 1.2 6.8 5.1 5.7 5.6 4.9 0.0 4.9 Reported operating profit 1 4.3 0.1 4.4 4.0 Fair value of derivatives outside hedge accounting -1.1 Underlying operating profit 1 Deliveries [‘000] 2,18
Slide 29: Solid Financial Foundation of Automotive Division
Solid Financial Foundation of Automotive Division Resilience further enhanced Balance Sheet Automotive Division [€ bn / in %] 31 December 31 December 30 September 2021 2022 1 2023 350 301 306 300 272 Other liabilities 250 133 Provisions for pensions 138 200 122 Equity (and equity ratio) 150 27 25 41
Slide 30: Volkswagen Group 9M – Analysis by Brand and Business Field
Volkswagen Group 9M – Analysis by Brand and Business Field VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 1 9M 2023 9M 2022 1 Brand Group Core 3,575 2,957 101,060 81,356 4,985 3,720 4.9 4.6 Volkswagen Passenger Car
Slide 31: Volkswagen Group Q3 – Analysis by Brand and Business Field
Volkswagen Group Q3 – Analysis by Brand and Business Field VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 1 Q3 2023 Q3 2022 1 Brand Group Core 1,125 1,001 32,296 28,346 1,213 1,074 3.8 3.8 Volkswagen Passenger Cars
Slide 32: Volkswagen Group Q2 – Analysis by Brand and Business Field
Volkswagen Group Q2 – Analysis by Brand and Business Field VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 1 Q2 2023 Q2 2022 1 Brand Group Core 1,257 1,038 35,601 28,649 2,031 1,769 5.7 6.2 Volkswagen Passenger Cars
Slide 33: Volkswagen Group Q1 – Analysis by Brand and Business Field
Volkswagen Group Q1 – Analysis by Brand and Business Field VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 1 Q1 2023 Q1 2022 1 Brand Group Core 1,193 918 33,163 24,361 1,742 877 5.3 3.6 Volkswagen Passenger Cars 731
Slide 34: VOLKSWAGEN GROUP
VOLKSWAGEN GROUP