Volkswagen Ag · XETR:VOW
Volkswagen — FY 2022 Earnings Presentation
42 slides from Volkswagen's earnings presentation, Mar 14, 2023
Slide 1: Volkswagen AG Annual Media and Analyst and Investor Conference 2023
Volkswagen AG Annual Media and Analyst and Investor Conference 2023 FY 2022 March 14, 2023
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: Volkswagen Group Highlights 2022
Volkswagen Group Highlights 2022 3
Slide 4: Volkswagen Group Key Results 2022
Volkswagen Group Key Results 2022 8.3 -7% Deliveries in m units 279.2 +12% 22.5 +13% Revenue in € bn Oper. Result in € bn1 43.0 +61% 8.70/8.76 Net Liquidity in € bn2 Dividend in €3 Payout-ratio at 29% Note: Group Key Results Full Year 2022, compared to Full Year 2021 1 Before special items 2 Automot
Slide 5: TOP 10 Volkswagen Group Program
TOP 10 Volkswagen Group Program 01 02 03 04 05 Planning Round Products China NAR CARIAD 06 07 08 09 10 SSP / Technology Battery / Mobility Solutions Sustainability Capital Market Charging / Energy 5
Slide 6: Fields of Action 2023
Fields of Action 2023 PLANNING ROUND PRODUCTS CHINA NAR CARIAD 01 02 03 04 05 • Realistic, robust 5Y • Design, Quality, • Tech competitiveness • Growth mode and • Software SOP eMacan planning Technology and return • BEV competiveness localization (incl. IRA) & Q6 e-tron • Financial KPIs set and on i
Slide 7: Solid figures despite lower sales are testimony to our robust business model
Solid figures despite lower Sales are Testimony to our robust Business Model January to December 2019 vs. 2021 vs. 2022 Vehicle Sales Sales Revenue Operating Result and Margin 1 [m vehicles] [€ bn] [€ bn] Margin [%] +12% 7.6% 8.0% 8.1% 279.2 252.6 250.2 +13% 22.5 19.3 20.0 -1% 11.0 8.6 8.5 Jan - Dec
Slide 8: Automotive Net Cash impacted by supply situation; Net Liquidity strengthened by Porsche IPO (1/2)
Automotive Net Cash impacted by supply situation and disruptions in the logistics chains; Automotive Net Liquidity strengthened by Porsche IPO (1/2) Reported Net Cash Flow 1 'Clean' Net Cash Flow 1, 2 Net Liquidity 1, 3 [€ bn] [€ bn] [€ bn] 43.0 6.5 3 26.7 19.8 15.5 36.5 13.5 10.8 8.6 9.1 4.8 Jan -
Slide 9: Automotive Net Liquidity strengthened by Porsche IPO (2/2)
Automotive Net Liquidity strengthened by Porsche IPO (2/2) [€ bn] Reported Net Cash flow (€ 4.8bn) 43.0 Clean Net Cash flow (€ 9.1bn) -1.3 15.7 2.7 -3.0 -0.3 6.4 -3.8 26.7 thereof thereof € 16.1bn € -8.3bn increase Porsche IPO in inventories Proceeds € 6.5bn special dividend (net) paid in Jan. 2023
Slide 10: Solid Margins in Passenger Cars and Financial Services Division
Solid Margins in Passenger Cars and Financial Services Division January to December 2019 vs. 2021 vs. 2022 Automotive Division Financial Services Division Passenger Cars 1, 2 Commercial Vehicles 1, 3 Financial Services 1 Operating Result [€ bn] Operating Result [€ bn] Operating Result [€ bn] Margin
Slide 11: Operating Result Passenger Cars driven by strong mix and pricing
Operating Result Passenger Cars driven by strong mix and pricing January to December 2021 vs. 2022 Operating Result Operating Result [€ bn] [€ bn] Margin [%] 0.1 7.6% 7.9% -7.8 15.0 12.1 13.8 -3.2 15.0 13.8 Thereof: Volume -0.9 Russia 1 -1.3 Mix +7.0 Porsche IPO -0.6 Price +6.0 Seat -0.2 Jan - Dec J
Slide 12: Volume Brand Group Performance
Volume Brand Group Performance January to December 2021 vs. 2022 Key Takeaways Volume Brand Group • VW Brand: 3.6% RoS; burdened by material costs and Russia business; non-recurring items of € 0.5bn booked (net) Vehicle Sales [‘000 units] Sales Revenue [€ bn] • Skoda: delivering 3.0% RoS; -2% +12% d
Slide 13: Premium Brand Group Performance
Premium Brand Group Performance January to December 2021 vs. 2022 Key Takeaways Premium Brand Group 1 • Audi Brand: 11.3% RoS; fair value effects € 1.1bn; resilient demand for well-equipped premium Vehicle Sales [‘000 units] Sales Revenue [€ bn] vehicles, strong order bank +4% +11% • Bentley: 20.9%
Slide 14: Sport & Luxury Brand Group Performance
Sport & Luxury Brand Group Performance January to December 2021 vs. 2022 Key Takeaways Sport & Luxury Brand Group • Porsche’s operating margin advanced to 18.6% on higher volume, improved pricing and better product mix as well as positive FX effects Vehicle Sales [‘000 units] Sales Revenue [€ bn] •
Slide 15: Software – CARIAD Performance
Software – CARIAD Performance January to December 2021 vs. 2022 Key Takeaways CARIAD • Sales Revenue improved by 54% driven by license revenues with brand groups Contracted Licenses [‘000 units] Sales Revenue [€ bn] • Operating Result impacted by higher development costs and personnel costs +36% +60
Slide 16: Commercial Vehicles – TRATON Performance
Commercial Vehicles – TRATON Performance January to December 2021 vs. 2022 Key Takeaways TRATON Operations 1 • Unit sales up 12% with positive dynamics in second half-year (-7% excl. Navistar consolidation) Vehicle Sales [‘000 units] Sales Revenue [€ bn] • Results strongly affected by supply shortag
Slide 17: Volkswagen Financial Services Performance
Volkswagen Financial Services Performance January to December 2021 vs. 2022 Key Takeaways Volkswagen Financial Services • Stable number of contracts and solid growth in leasing business despite supply constraints Contracts [‘000 units] Credit Loss Ratio [%] • No significant increase in credit risks
Slide 18: China Joint Ventures Proportionate Operating Result
China Joint Ventures Proportionate Operating Result 2020, 2021 and 2022 Key Takeaways [€ m] • FY proportionate Operating Result Q4 3,602 clearly above 2021 Q3 3,280 • Muted Q4 driven by low chip availability Q2 and Covid related lockdowns 970 3,026 Q1 • FAW-VW with strong contribution 722 from Audi
Slide 19: Volkswagen Group Outlook for 2023
Volkswagen Group Outlook for 20231 Actual Outlook 2021 2022 2023 1 Deliveries to customers 8.9m vehicles 8.3m vehicles About 9.5m vehicles Sales revenue € 250.2bn € 279.2bn € 307bn to € 321bn Operating return on sales 2 8.0% 8.1% 7.5% to 8.5% Automotive R&D / Capex 7.6% / 5.1% 8.2% / 5.5% ~8.0% / ~6
Slide 20: Decent increase in Dividend proposed for FY 2022
Decent increase in Dividend proposed for FY 2022 Strategic goal: Payout Ratio of at least 30% Dividend per Preferred Share 1 and Payout Ratio [in € / in %] 19.06 29% 29% 25% 20% 18% 18% 8.76 7.56 4.86 4.86 4.86 3.96 2017 2018 2019 2020 2021 2022 Proposal 2022 Extraordinary Dividend 1 Ordinary Shares
Slide 21: Proof Points of our Strategy – CFO Perspective
Proof Points of our Strategy CFO Perspective Strategic CFO Targets CFO Focus Areas Focus on product transformation towards electric Focused financial steering of the transformation Digitalization: Advancing in software/services (allocation of resources to future topics) Group-wide cost & efficiency
Slide 22: BEV Sales and Share rose significantly in 2022
BEV Sales and Share rose significantly in 2022 All set for accelerated BEV growth in 2023 Quarterly Development Outlook BEV Share [%]; BEV Deliveries [‘000 units] 9% ~10% 206 7% 6% 5% 149 7% 118 5% 99 3% Q1 Q2 Q3 Q4 2020 2021 2022 2023E 2020 2021 2022 BEV share 2022 22
Slide 23: Overhead Cost Program contributed to increase robustness of our business
Overhead Cost Program contributed to increase robustness of our business Group-wide Overhead Cost Program (w/o R&D, CAPEX) Plant program [in % of Automotive Sales Revenue] (Productivity & Overhead) 19.5% 18.2% 17.2% Working capital management / cashflow [€ bn] orientation 41.4 39.9 1.2 37.5 1.0 5.2
Slide 24: Accelerating transformation and final phase of ICE investments
Accelerating our transformation efforts and final phase of ICE investments in preparation for extensive product launches starting from 2024 and Battery Plants R&D / Capex – Absolute and Ratio (Automotive Division) Reducing complexity / [%, €] CAPEX R&D variances ∑ ~14.5% ∑ 13.3% ∑ 13.7% ∑ 12.7% (€ 3
Slide 25: Stringent framework for Capex and R&D allocation
Stringent framework for Capex and R&D allocation Increase in share of electrification & digitalization R&D and CAPEX combined over 5Y planning cycle R&D and CAPEX combined, 5Y planning cycle (PR 71) [€ bn; %] Electrification and digitalization [€ bn] ICE related investments 41% 49% 56% 68% 180 1 159
Slide 26: Financial steering model to master the transformation
Financial steering model to master the transformation Volume Premium Sports Truck & Bus Proof points as of FY 2022: • Product launch ID. Buzz • MoU Mahindra Non- • Cariad: Horizon Robotics JV to reporting BEV Hardware strengthen ADAS China entity localization • Commercial Vehicles: Software Realignm
Slide 27: Porsche AG Facts on IPO from September 2022
Porsche AG Facts on IPO from 29 September 2022 Porsche IPO Highlights Net Liquidity strengthened to € 36.5bn after special dividend [€ bn] With around € 78bn 1 Porsche AG IPO is the largest IPO ever carried out in +16.1 Europe and the largest all-time global 43.0 automotive IPO (by market cap). 6.5
Slide 28: Overall Ambition
Overall Ambition Leading the Transformation with Integrity and Based on our Values Strong brands Financial strength BEV Software ESG / AI / mobility services Integrity 28
Slide 29: Financial Calendar
Financial Calendar First Quarter Financial Results 2023 May 4, 2023 Annual General Meeting 2023 May 10, 2023 Capital Markets Day 2023 June 21, 2023 Half-Year Financial Results 2023 July 27, 2023 Third Quarter Financial Results 2023 October 26, 2023 29
Slide 30: Backup
VOLKSWAGEN 30
Slide 31: Balanced Capital Allocation
Balanced Capital Allocation Capital Allocation Automotive Division FY2022 [in % of gross cashflow 1] M&A 5% Research & Development (Cash) Focused financial steering of the transformation Financial Robustness (esp. increase in net liquidity 21% 31% and working capital) Safeguarding and 22% strengthen
Slide 32: Strong Credit Metrics and Ratings
Strong Credit Metrices and Ratings Testifying Volkswagen resilient and integrated business model Volkswagen Group’s Credit Positioning Credit Rating Development Agency A3 A2 A3 A- A A- BBB+ 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Current Credit Ratings Agency Volkswagen AG V
Slide 33: Well balanced debt maturity profile
Well balanced debt maturity profile with a focus on shorter duration to secure liquidity at favourable conditions [€ bn] 12 months breakdown 4.4 1.4 2.9 19.1 2.8 0.9 2.2 0.4 1.8 1.8 1.8 16.7 0.3 0.3 1.6 3.0 15.7 0.4 1.2 0.8 1.0 1.5 1.5 0.6 0.5 1.2 0.1 0.8 0.5 11.2022 12.2022 01.2023 02.2023 03.2023
Slide 34: Solid Financial Foundation of Automotive Division
Solid Financial Foundation of Automotive Division Resilience further enhanced Balance Sheet Automotive Division [€ bn; in %] 31 Dec 2019 31 Dec 2021 31 Dec 2022 301 272 247 Other liabilities Provisions for pensions Equity and equity ratio 27 41 41 109 136 93 40% 45% 38% Goodwill 1 [€ bn] 23 26 26 EB
Slide 35: Bridge from Net Cash Flow to Clean Net Cash Flow
Automotive Division – Bridge from Net Cash Flow to Clean Net Cash Flow 1 January to December 2022 [€ bn] 9.1 3.0 4.8 1.3 Reported net cash flow Diesel outflow Aquisition and disposal Clean net cash flow of equity investments 1 Including allocation of consolidation adjustments between Automotive and
Slide 36: Continued resilient Operating Performance
Continued resilient Operating Performance Development of Sales, Operating Result and Margin Underlying Operating Result 1, 2 [€ bn] Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Reported operating profit 1 22.5 1.8 Fair value derivatives 20.7 outside hedge accounting Underlying operating profit 1 8.5 3.2
Slide 37: Analysis by Brand and Business Field Q1 2022
Volkswagen Group – Analysis by Brand and Business Field January to March 2022 (Q1) VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Volume brand group 918 1,197 24,361 27,354 877 1,366 3.6 5.0 Volkswa
Slide 38: Analysis by Brand and Business Field Q2 2022
Volkswagen Group – Analysis by Brand and Business Field April to June 2022 (Q2) VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Volume brand group 1,038 1,191 28,649 27,992 1,769 1,508 6.2 5.4 Volksw
Slide 39: Analysis by Brand and Business Field Q3 2022
Volkswagen Group – Analysis by Brand and Business Field July to September 2022 (Q3) VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) Q3 2022 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 2021 Volume brand group 1,001 783 28,346 19,531 1,074 -396 3.8 -2.0 Volk
Slide 40: Analysis by Brand and Business Field 9M 2022
Volkswagen Group – Analysis by Brand and Business Field January to September 2022 (9M) VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) 9M 2022 9M 2021 9M 2022 9M 2021 9M 2022 9M 2021 9M 2022 9M 2021 Volume brand group 2,957 3,171 81,356 74,876 3,720 2,478 4.6 3.3
Slide 41: Analysis by Brand and Business Field Q4 2022
Volkswagen Group – Analysis by Brand and Business Field October to December 2022 (Q4) VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Volume brand group 1,112 962 32,406 26,982 324 1,010 1.0 3.7 Volk
Slide 42: Analysis by Brand and Business Field FY 2022
Volkswagen Group – Analysis by Brand and Business Field January to December 2022 (FY) VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 Volume brand group 4,069 4,133 113,762 101,858 4,045 3,488 3.6 3.