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TRATON SE Investor Presentation 2019
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Investor Presentation
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9M 2019 RESULTS Munich, 04 November 2019
CHRISTIAN SCHULZ, CFO
ISIN: DE000TRAT0N7 WKN: TRAT0N Bloomberg Ticker: 8TRA GY / 8TRA SS http://ir.traton.com
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 any jurisdiction. Neither this presentation, nor any part of it, nor the fact of its distribution, shall form the basis of, or be relied on in connection with, any contractual commitment or investment decision in relation to the securities of Volkswagen AG, TRATON SE or any company of TRATON GROUP in any jurisdiction, nor does it constitute a recommendation regarding any such securities.
The following presentation contains forward-looking statements and information on the business development of the TRATON GROUP. These statements may be spoken or written and can be recognized by terms such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", "will" or words with similar meaning. These statements and information are based on assumptions relating in particular to TRATON GROUP's business and operations and the development of the economies in the countries in which the TRATON GROUP is active. TRATON GROUP has made such forward-looking statements on the basis of the information available to it and assumptions it believes to be reasonable. The forwardlooking statements and information may involve risks and uncertainties, and actual results may differ materially from those forecasts. If any of these or other risks or uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, the actual results may significantly differ from those expressed or implied by such forward looking statements and information. TRATON GROUP will not update the following presentation, particularly not the forward-looking statements. The presentation is valid on the date of publication only.
Certain financial information and financial data included in this presentation are preliminary, unaudited and may be subject to revision. Due to their preliminary nature, statements contained in this presentation should not be unduly relied upon and past events or performance should not be taken as a guarantee or indication of future events or performance. Financial figures expressed in EUR might be translated from different currencies into EUR, using the exchange rate prevailing at the relevant date or for the relevant period that the relevant financial figures relate to.
All statements with regard to markets or market position(s) of TRATON SE or any company of TRATON GROUP or any of its competitors are estimates of TRATON GROUP based on data available to TRATON GROUP. Such data are neither comprehensive nor independently verified. Consequently, the data used are not adequate for and the statements based on such data are not meant to be an accurate or proper definition of regional and/or product markets or markets shares of TRATON GROUP and any of the participants in any market.
Unless otherwise stated, all amounts are shown in million of EUR. Please note that rounding differences may arise when adding or subtracting the individual items together. The percentage figures may also be subject to rounding differences because these are calculated based on whole numbers in the year-on-year or quarterly comparisons. Due to different proportions and scaling in graphs, data shown in different graphs are not comparable.
CONTENTS
TRATON GROUP Highlights
Segment Industrial Business (MAN T&B, Scania V&S and VWCO)
Segment Financial Services
Outlook
TRATON GROUP HIGHLIGHTS
- Unit sales up by +7.7% to a nine month record of 179,091 units
- Sales revenue increased by +9.3%1 to €19,827 mn; all brands contributed
- Operating profit improved by +33.8% to €1,482 mn2 9M 2019
- RoS 7.5% (+153bpt)2
- Profit after tax rose by +18.5% to €1,235 mn3
- Net cash flow Industrial Business at €2,323 mn (before the sale of Power Engineering €345 mn); Net liquidity Industrial Business at €1,207 mn (incl. recognition of IFRS 16)
- 2019
- TRATON SE celebrated its successful stock market debut in Frankfurt and Stockholm on June 28, 2019
- TRATON SE listed on the SDAX
- TRATON hosts Innovation Day on October 2, 2019
- Global procurement joint venture with Hino established
1 Prior year excluding €487 mn VGSG sales revenue, which was sold as at January 01, 2019 2 Adjusted operating profit +20.2% to €1,470 mn, adjusted RoS 7.4% (+85bpt); Q1 2019 including €19 mn insurance claim 3 +29.4% before discontinued operations (€111 mn in 9M 2018) Note: Delta 9M 2019 vs. 9M 2018
GROUP – SEGMENT HIGHLIGHTS Q3 / 9M 2019
| Industrial Business (IB) | ||||
|---|---|---|---|---|
| Q3 19 | Y-o-Y | 9M 19 | Y-o-Y | |
| Order intake (units) | 49,217 | -7.0% | 169,708 | -6.0% |
| Unit sales (units) | 55,755 | +2.9% | 179,091 | +7.7% |
| Book-to-bill (units) | 0.88 | -9bpt | 0.95 | -14bpt |
| Sales revenue (€mn) | 6,171 | +7.0% | 19,491 | +9.3% |
| Operating profit (€mn)1 | 369 | +90.9% | 1,377 | +40.5% |
| Return on sales (%)1 | 6.0 | +263bpt | 7.1 | +157bpt |
| Profit after tax (€mn) | 451 | -11.5% | 1,142 | +22.8% |
| Net cash flow (€mn)3 | 539 | +€687mn | 2,323 | +€2,722mn |
| Financial Services (FS) | ||||
|---|---|---|---|---|
| Q3 19 | Y-o-Y | 9M 19 | Y-o-Y | |
| Net portfolio2 (€bn) |
9.7 | +11.0% | ||
| Penetration rate (%) | 42.9 | -77bpt | 41.9 | -33bpt |
| Sales revenue (€mn) | 215 | +11.4% | 635 | +10.7% |
| Operating profit (€mn) | 35 | -5.6% | 105 | +3.1% |
| Profit after tax (€mn) | 23 | -1.4% | 75 | +4.3% |
- Strong unit sales, book-to-bill mainly lower in Q3 2019 due to a noticeable decrease in truck order intake in the EU28+2 region
- Operating profit of Industrial Business up due to the positive volume effect and the elimination of parallel production at Scania, partially offset by inflationary cost increases and higher depreciation. 2018 impacted by restructuring of Indian activities (€115 mn)
- Net cash flow in the Industrial Business in Q3 2019 improved considerably as a result of increased operating profit and improved working capital
1 Adjusted operating profit Q3 2019: +19.7% to €369 mn, adjusted RoS 6.0% (+64bpt); Adjusted operating profit 9M 2019: +24.6% to €1,365 mn, adjusted RoS 7.0% (+86bpt); Q1 2019 including €19 mn insurance claim 2 Reflecting closing balances, as of September 30, 2019 vs. December 31, 2018; 3 Adjusted net cash flow €314 mn in Q3 2019 / €120 mn in 9M 2019; before the sale of Power Engineering (€1,978 mn), parts of the RMMV Joint Venture (€111 mn incl. dividend) and repayment for amounts and interest resulting from security deposits provided in Brazil (€114 mn) Note: Delta Q3 2019 vs. Q3 2018 / 9M 2019 vs. 9M 2018
GROUP – SALES REVENUE AND RETURN ON SALES
SALES REVENUE (€mn)
1 Calculated as the ratio of operating profit to sales revenue 2 Including €196 mn (Q1 2018) / €151 mn (Q2 2018) / €140 mn (Q3 2018) VGSG sales revenue, which was sold as at January 01, 2019; adjusted growth rates: Q1 2019 9.5% / Q2 2019: 11.2% / Q3 2019: 7.0% 3 Q3 2018 impacted by the restructuring of the activities in India (€115 mn), adjusted RoS 6.0%
GROUP – UNIT SALES DEVELOPMENT
Unit sales (units)
- TRATON benefits from its strong core markets and sustains a leading position in the truck segment in the EU28+2 region2
- Noticeable growth in the European commercial vehicle market in the first nine months of 2019; first half positively influenced by the mandatory introduction of the digital tachograph. Continued substantial increase in truck registrations in Brazil
- Trucks unit sales up by +2% in Q3 2019; trucks unit sales ex MAN TGE stable in Q3 2019
1 Including MAN TGE vans (units in 2018: Q1 1,335 / Q2 1,843 / Q3 1,689; units in 2019: Q1 3,122 / Q2 4,144 / Q3 2,845) 2 EU member states excluding Malta plus Norway and Switzerland
GROUP – STRONG SALES GROWTH IN CORE MARKETS
1 Excluding MAN TGE vans 2 EU28+2: EU member states excluding Malta plus Norway and Switzerland 3 Information shown might include estimates or preliminary data; for EU28+2 and Germany data collected from ACEA provisional new registrations figures as at October 24 2019, trucks ˃ 16t; for Brazil data collected from ANFAVEA trucks ˃ 6t as at October 07, 2019; South America own estimates
INDUSTRIAL BUSINESS – ORDER INTAKE
• Order intake trend in 2019 continued downwards quarter on quarter. Noticeable decrease mainly due to lower orders in the EU28+2 region, driven in particular by Germany and UK. However, book-to-bill still at 0.95
• Substantial declines in Russia, India, and Turkey. Strong increase in Brazil in the wake of the economic recovery
1 Book-to-bill is defined as the ratio of trucks and buses units ordered to trucks and buses units delivered
INDUSTRIAL BUSINESS – UNIT SALES
Unit sales (units)
Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19
- Solid development in core truck markets, first half influenced by the pre-buy effect ahead of the introduction of the digital tachograph. Strong growth of MAN TGE
- Bus sales increased in Q3 2019 by +8%, but down slightly on the previous quarter due to seasonal effects
INDUSTRIAL BUSINESS – SALES REVENUE AND RETURN ON SALES SALES REVENUE (€mn)
• All brands with increased sales revenue, Q3 2019 driven by all product groups, 9M 2019 after-sales grew by +5% (share at 19%)
• Return on sales benefited from increased volume and the end of parallel production at Scania, higher costs ahead of rollout of new truck and bus generations weighed on MAN Truck & Bus; 2018 impacted by restructuring of Indian activities
November 04, 2019 / Investor Relations / 9M 2019 Results 1 Calculated as the ratio of operating profit to sales revenue 2 Q3 2018 impacted by the restructuring of the activities in India (€115 mn), adjusted RoS 5.3%
INDUSTRIAL BUSINESS – SALES REVENUE BY BRAND AND RETURN ON SALES
Note: Figures shown as at Q3 2019 / 9M 2019; percentage change calculated YoY, Q3 2019 vs. Q3 2018 / 9M 2019 vs. 9M 2018 1 Calculated as the ratio of operating profit to sales revenue
INDUSTRIAL BUSINESS – INDEBTEDNESS NET FINANCIAL INDEBTEDNESS / NET LIQUIDITY BRIDGE (€mn)
1 Investments in PP&E and intangible assets 2 Amongst others reflecting the Power Engineering disposal 3 Including, amongst others, €-994 mn payments for tendered MAN shares, €-3,250 mn contribution of capital reserves and €4,161 mn DPLTA with VW AG 4 €-376 mn before the sale of Power Engineering (€1,978 mn) 5 €314 mn before the sale of parts of the RMMV Joint Venture (€111 mn incl. dividends) and repayment for amounts and interest resulting from security deposits provided in Brazil (€114 mn) 6 €120 mn before the sale of Power Engineering (€1,978 mn), the sale of parts of the RMMV Joint Venture (€111 mn incl. dividends) and repayment for amounts and interest resulting from security deposits provided in Brazil (€114 mn)
MAN TRUCK & BUS – SUMMARY 9M 2019
- Vehicle sales up by +6% primarily driven by MAN TGE (Germany, UK, France)
- Order intake down by -10% mainly due to Germany, Poland, Russia, India und Turkey
- Operating profit increased by +6% (adjusted down by -26%)
- positive effects from higher sales revenues were offset by a less favorable product mix and a difficult market environment for used vehicles, fixed cost increases as well as increased costs ahead of the rollout of the new truck and bus generations
- prior-year period contained an earnings effect resulting from the transfer of the RIO brand to a TRATON GROUP company (€19 mn). Prior-year period included expenses for the market exit India (€115 mn)
• MAN presented the electric bus Lion's City E at the BUS2BUS fair in Berlin
MAN TRUCK & BUS – KEY FIGURES PER QUARTER
Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19
Q3 18 Q2 19 Q3 19 Q1 18 Q2 18 Q4 18 Q1 19 Q4 19
Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19
1 Book-to-bill is defined as the ratio of trucks and bus units ordered to trucks and bus units delivered 2 Q2 2018 contained an earnings effect of €19 mn resulting from the transfer of the RIO brand to a TRATON GROUP company; Q3 2018 impacted by the restructuring of the activities in India (€115 mn), adjusted RoS 4.0% 3 Calculated as the ratio of operating profit to sales revenue
GROUP HIGHLIGHTS INDUSTRIAL BUSINESS FINANCIAL SERVICES OUTLOOK
APPENDIX
SCANIA VEHICLES & SERVICES – SUMMARY 9M 2019
- Unit sales of trucks up by +11%, primarily driven by strong growth in EU28+2 and Brazil; truck sales declined substantially in Russia, Asia/Pacific and in the Middle East
- Order intake declined by -8%; order intake for trucks was also down by -8% mainly because of negative trends in the UK, Russia, and Iran
- Operating profit increased by +36% benefiting from higher volumes, positive foreign exchange effects, end of the previous parallel production of old and new truck series and a more favorable market mix
- The successful rollout of the new Scania truck generation in Latin America and Asia marked the end of the previous parallel production of old and new series
- Revealing of Scania AXL, a fully autonomous concept truck, without a cab
SCANIA VEHICLES & SERVICES – KEY FIGURES PER QUARTER
Q3 18 Q1 18 Q2 18 Q3 19 Q4 18 Q1 19 Q2 19 Q4 19
Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19
Sales revenue (€mn) Return on sales2 Operating profit (€mn) (%)
1 Book-to-bill is defined as the ratio of trucks and bus units ordered to trucks and bus units delivered 2 Calculated as the ratio of operating profit to sales revenue
VOLKSWAGEN CAMINHÕES E ÔNIBUS – SUMMARY 9M 2019
- Brazilian truck market continued to recover in tandem with economic upturn; truck unit sales increased by +20%
- Export sales declined on sluggish demand in other relevant markets in South America
- Operating profit benefited from the increase in sales revenue. This was offset by foreign exchange effects and inflation-related cost increases, e.g., for materials, and higher depreciation charges. Figure includes a gain of €13 mn from reversal of a restructuring provision
- More than 3,400 Volksbus units are being delivered as part of the Caminho da Escola "Way to School" program, and a further 430 buses will be on the road to support social projects
VOLKSWAGEN CAMINHÕES E ÔNIBUS – KEY FIGURES PER QUARTER
Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19
Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q4 19 Q3 19
Sales revenue (€mn) Return on sales2,3 Operating profit (%) 2 (€mn)
Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19
1 Book-to-bill is defined as the ratio of trucks and bus units ordered to trucks and bus units delivered 2 Q2 2019 includes an adjustment of (€13 mn) from the reversal of a restructuring provision 3 Calculated as the ratio of operating profit to sales revenue
FINANCIAL SERVICES OUTLOOK
APPENDIX
FINANCIAL SERVICES – SALES REVENUE AND RETURN ON SALES SALES REVENUE (€mn)
- Operating profit in Q3 2019 decreased by -6% to €35 mn
- Portfolio growth and currency effects positive, while lower margins and higher operating cost had negative effects
1 Calculated as the ratio of operating profit to sales revenue
FINANCIAL SERVICES – NET PORTFOLIO AND PENETRATION RATE
- By the end of 9M 2019 the customer finance portfolio amounted to €9.7 bn; this represents an increase of +11% compared to YE 2018
- The penetration rate on new trucks was 41.9% in 9M 2019 (9M 2018: 42.2%) in those markets where Financial Services operates
1 Reflecting closing balances; net portfolio defined as gross portfolio less bad debt provisions; growth excl. currency effects 2 Trucks only
Source: Own calculation and estimates based on publicly available sources (ACEA, IHS Markit, ANFAVEA, …)
1 EU28+2 region consisting of EU member states excluding Malta plus Norway and Switzerland 2 In addition to the EU28+2 countries with particular focus on Germany, these markets comprise Brazil, Russia, South Africa, and Turkey
OUTLOOK GROUP – RECENT TRACK RECORD, OUTLOOK 2019 AND OVER-THE-CYCLE TARGET
Note: VGSG operations (sold as of January 2019) included in 2018
1 FY 2018: Adjusted RoS 6.4%, adjusted operating profit €1.7 bn, 9M 2019: Adjusted RoS 7.4%, adjusted operating profit €1.5 bn; 9M 2019 including €19 mn insurance claim proceeds 2 No adjustments applied to estimated return on sales 2019
POSSIBLE MEASURES IN CASE OF RAPID MARKET DOWNTURN
| Scenarios 2020: Truck Market EU28+21 Market |
|||
|---|---|---|---|
| -10% | -20% | ||
| Measures possibly to be evaluated |
|||
| Reduction of time accounts | |||
| Reduction of temporary workers | |||
| Reduction of non - personnel overhead costs |
|||
| Reduction of direct personnel costs (e.g. short-time work) |
|||
| Reduction of indirect personnel costs (e.g. reduction working hours) |
|||
| Reduction of non-product investments | |||
| Reduction of external R&D costs |
1 EU28+2 region consisting of EU member states excluding Malta plus Norway and Switzerland, (˃ 6t)
Appendix
CONTACTS INVESTOR RELATIONS
Rolf Woller
- 49 89 360 98 335 [email protected]
Helga Würtele
- 49 89 360 98 334 [email protected]
Thomas Paschen
- 49 89 360 98 474 [email protected]
Philipp Lotz
- 49 89 36098-283 [email protected]
TRATON SE Dachauer Str. 641 80995 Munich www.traton.com
FINANCIAL CALENDAR
| DATE | EVENT / PUBLICATION OF |
|---|---|
| May 7, 2019 | Q1 2019 |
| July 29, 2019 |
Half-year 2019 |
| November 4, 2019 | 9-month 2019 |
| March 27, 2020 | Annual Press Conference & Annual Report 2019 |
| May 4, 2020 | Q1 2020 |
| May 28, 2020 | Annual General Meeting 2020 |
| July 28, 2020 |
Half-year 2020 |
| November 3, 2020 | 9-month 2020 |
SHARE DATA
SHARE DATA
| ISIN (International Securities Identification Number) | DE000TRAT0N7 |
|---|---|
| WKN (German Security Identification number) | TRAT0N |
| Common code | 196390065 |
| Stock exchange | Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) & Nasdaq Stockholm (börsen) |
| Market segment | Regulated market (Prime Standard) of Frankfurt Stock Exchange & Large Cap segment of Nasdaq Stockholm |
| Bloomberg ticker | 8TRA GY / 8TRA SS |
| Reuters ticker | 8TRA.DE / 8TRA.ST |
| Shares outstanding | 500.000.000 |
| Type of share | Bearer shares / common shares |
INNOVATION DAY 2019 – TRATON WANTS TO BECOME A LEADER IN E- MOBILITY
Within 10-15 years, one of three of our vehicles will have an alternative powertrain. In most cases it is electric
By 2020
Common modular electric powertrain toolkit, used in 2020 in the first serial produced all-electric city buses made by Scania and MAN
By 2025
- €1 bn in R&D expenditures on e-mobility (in total 2019-2024)
- €1 bn in R&D expenditures on digitization (in total 2019-2024)
- Aim: more than a million connected vehicles on the road
GROUP – REGIONAL TRUCK UNIT SALES DEVELOPMENT1
1 Excluding MAN TGE vans 2 EU member states excluding Malta plus Norway and Switzerland
GROUP – OPERATING PROFIT AND RETURN ON SALES OPERATING PROFIT (€mn)
1 Calculated as the ratio of operating profit to sales revenue 2 Q3 2018 impacted by the restructuring of the activities in India (€115 mn), adjusted RoS 6.0%
MAN TRUCK & BUS – KEY FIGURES CUMULATIVE
1 Book-to-bill is defined as the ratio of trucks and bus units ordered to trucks and bus units delivered 2 H1 2018 contained an earnings effect of €19 mn resulting from the transfer of the RIO brand to a TRATON GROUP company; 9M 2018 impacted by the restructuring of the activities in India (€115 mn) 2 Calculated as the ratio of operating profit to sales revenue
SCANIA VEHICLES & SERVICES – KEY FIGURES CUMULATIVE
1 Book-to-bill is defined as the ratio of trucks and bus units ordered to trucks and bus units delivered 2 Calculated as the ratio of operating profit to sales revenue
VOLKSWAGEN CAMINHÕES E ÔNIBUS – KEY FIGURES CUMULATIVE
1 Book-to-bill is defined as the ratio of trucks and bus units ordered to trucks and bus units delivered 2 Q2 2019 includes an adjustment of (€13 mn) from the reversal of a restructuring provision 3 Calculated as the ratio of operating profit to sales revenue
GROUP – CONSOLIDATED INCOME STATEMENT (IFRS)
| in € million | 9M 2019 | 9M 2018 |
|---|---|---|
| Sales revenue | 19,827 | 18,623 |
| Cost of sales | -15,825 | -14,965 |
| Gross profit | 4,001 | 3,658 |
| Distribution expenses | -1,811 | -1,741 |
| Administrative expenses | -734 | -736 |
| Net impairment losses on financial assets | -35 | -35 |
| Other operating income | 432 | 520 |
| Other operating expenses | -371 | -558 |
| Operating profit | 1,482 | 1,108 |
| Share of profits and losses of equity-method investments | 262 | 184 |
| Interest income | 59 | 61 |
| Interest expenses | -191 | -186 |
| Other financial result | -28 | 100 |
| Financial result | 103 | 159 |
| Profit before tax | 1,586 | 1,267 |
| Income taxes | -349 | -335 |
| Current | -319 | -266 |
| Deferred | -30 | -69 |
| Profit from continuing operations, net of tax | 1,237 | 931 |
| Profit/loss from discontinued operations, net of tax | -2 | 111 |
| Profit after tax | 1,235 | 1,042 |
| of which attributable to shareholders of TRATON SE | 1,202 | 1,036 |
| of which attributable to noncontrolling interests | 33 | 6 |
GROUP – CONSOLIDATED BALANCE SHEET: ASSETS / EQUITY AND LIABILITIES (IFRS)
| in € million | 09/30/2019 | 12/31/2018 |
|---|---|---|
| Assets | ||
| Noncurrent assets | ||
| Intangible assets | 6,548 | 6,597 |
| Property, plant and equipment | 6,456 | 5,469 |
| Assets leased out | 6,985 | 6,599 |
| Equity-method investments | 1,384 | 1,223 |
| Other equity investments | 49 | 37 |
| Noncurrent income tax receivables | 41 | 50 |
| Deferred tax assets | 953 | 939 |
| Noncurrent financial services receivables | 4,746 | 4,212 |
| Other noncurrent financial assets | 107 | 63 |
| Other noncurrent receivables | 305 | 663 |
| 27,574 | 25,851 | |
| Current assets | ||
| Inventories | 5,562 | 4,822 |
| Trade receivables | 2,153 | 2,319 |
| Current income tax receivables | 149 | 140 |
| Current financial services receivables | 2,973 | 2,688 |
| Other current financial assets | 321 | 6,371 |
| Other current receivables | 1,043 | 939 |
| Marketable securities and investment deposits | 2,907 | 98 |
| Cash and cash equivalents | 2,116 | 2,997 |
| Assets held for sale | - | 157 |
| 17,225 | 20,533 | |
| Total assets | 44,799 | 46,384 |
| in € million | 09/30/2019 | 12/31/2018 |
|---|---|---|
| Equity and Liabilities | ||
| Equity | ||
| Subscribed capital | 500 | 10 |
| Capital reserves | 20,841 | 21,331 |
| Retained earnings | -5,104 | -2,064 |
| Accumulated other comprehensive income | -2,892 | -2,478 |
| Equity attributable to shareholders of TRATON SE | 13,345 | 16,799 |
| Noncontrolling interests | 257 | 2 |
| 13,602 | 16,801 | |
| Noncurrent liabilities | ||
| Noncurrent financial liabilities | 6,010 | 5,449 |
| Provisions for pensions and other post-employment benefits | 1,832 | 1,506 |
| Noncurrent income tax payables | 123 | 122 |
| Deferred tax liabilities | 755 | 824 |
| Noncurrent income tax provisions | 18 | 16 |
| Other noncurrent provisions | 1,190 | 1,184 |
| Other noncurrent financial liabilities | 2,580 | 2,333 |
| Other noncurrent liabilities | 1,939 | 1,780 |
| 14,446 | 13,217 | |
| Current liabilities | ||
| Put options/compensation rights granted to noncontrolling interest shareholders | - | 1,827 |
| Current financial liabilities | 6,509 | 5,366 |
| Trade payables | 2,682 | 2,969 |
| Current income tax payables | 142 | 125 |
| Current income tax provisions | 32 | 137 |
| Other current provisions | 902 | 938 |
| Other current financial liabilities | 2,881 | 1,620 |
| Other current liabilities | 3,601 | 3,263 |
| Liabilities directly associated with assets held for sale | - | 123 |
| 16,750 | 16,366 | |
| Total equity and liabilities | 44,799 | 46,384 |
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GROUP – CONSOLIDATED STATEMENT OF CASH-FLOWS (IFRS)
| in € million | 9M 2019 | 9M 2018 |
|---|---|---|
| Cash and cash equivalents as of January 1 | 2,997 | 4,593 |
| Profit before tax | 1,586 | 1,267 |
| Income taxes paid | -398 | -392 |
| Depreciation and amortization of, and impairment losses on, intangible assets, | 626 | 479 |
| property, plant, and equipment, and investment property* | ||
| Amortization of and impairment losses on capitalized development costs* | 144 | 125 |
| Impairment losses on equity investments* | 0 | 6 |
| Depreciation of products leased out* | 838 | 799 |
| Change in pension obligations | -4 | 36 |
| Loss on disposal of noncurrent assets and equity investments | -95 | -13 |
| Share of losses of equity-method investments | -112 | -320 |
| Other noncash expense/income | 79 | -3 |
| Change in inventories | -769 | -931 |
| Change in receivables (excluding financial services) | 143 | -233 |
| Change in liabilities (excluding financial liabilities) | 241 | 514 |
| Change in provisions | -5 | 48 |
| Change in products leased out | -1,193 | -1,061 |
| Change in financial services receivables | -784 | -532 |
| Net cash used in operating activities - discontinued operations | - | -68 |
| Net cash used in operating activities | 297 | -280 |
| Payments to acquire property, plant, and equipment and intangible assets | ||
| (excluding capitalized development costs) | -572 | -535 |
| Additions to capitalized development costs | -327 | -269 |
| Payments to acquire other investees | -6 | -21 |
| Proceeds from the disposal of subsidiaries | 1,978 | 0 |
| Disposal of other equity investments | 101 | 0 |
| Proceeds from the disposal of intangible assets, property, plant, and equipment, and | ||
| investment property | 22 | 58 |
| Investing activities attributable to operating acitivities | 1,196 | -766 |
| Net cash flow - continuous operations | 1,494 | -978 |
| *Net of | impairment | reversals | ||
|---|---|---|---|---|
| --------- | -- | ------------ | ----------- | -- |
| in EUR million | 9M 2019 | 9M 2018 |
|---|---|---|
| Change in marketable securities and investment deposits | -2,813 | -30 |
| Changes in loans | 82 | 4 |
| Net cash used in investing activities – discontinued operations | - | -99 |
| Net cash provided by/used in investing activities | -1,536 | -891 |
| Loss absorption by Volkswagen AG | 4,161 | 28 |
| Distribution of retained earnings | -3,250 | - |
| Noncontrolling interest shareholders of MAN SE: acquisition of shares tendered and | -1,109 | -455 |
| compensation payments | ||
| Proceeds from issuance of bonds | 2,469 | 2,147 |
| Repayments of bonds | -1,144 | - |
| Change in miscellaneous financial liabilities | -639 | -506 |
| Repayment of lease liabilities | -125 | 0 |
| Net cash provided by/used in financing activities – discontinued operations | - | -2 |
| Net cash provided by/used in financing activities | 364 | 1,211 |
| Effect of exchange rate changes on cash and cash equivalents | -7 | -57 |
| Change in cash and cash equivalents | -881 | -17 |
| Cash and cash equivalents as of September 30 | 2,116 | 4,577 |
GROUP – ADJUSTMENTS
| Adjustments (€ million) |
2016 | 2017 | 2018 | 9M 2019 |
|---|---|---|---|---|
| OPERATING PROFIT | 727 | 1,512 | 1,513 | 1,482 |
| Expense for antitrust proceedings (Scania) |
403 | |||
| Release of restructuring provisions at MAN T&B |
-50 | |||
| Expenses in relation to India market exit at MAN T&B |
137 | |||
| Restructuring expenses at VWCO |
58 | -13 | ||
| OPERATING PROFIT (ADJUSTED) | 1,188 | 1,462 | 1,650 | 1,470 |