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TRATON SE Investor Presentation 2021
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Investor Presentation
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TRATON
SCHOOL BUS
Press Call
9M 2021 Interim Statement
Christian Levin, CEO | Annette Danielski, CFO
Munich, 10-28-2021
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 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 the TRATON GROUP in any jurisdiction, nor does it constitute a recommendation regarding any such securities.
It contains forward-looking statements and information on the business development of the TRATON GROUP. These statements and information are based on assumptions relating in particular to the TRATON GROUP's business and operations and the development of the economies in the countries in which the TRATON GROUP is active.
The 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 forward-looking 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. The TRATON GROUP will not update this 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 might be translated from different currencies, 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 affiliated company or any of its competitors are estimates based on data available to the TRATON GROUP.
IHS Markit Data referenced herein are the copyrighted property of IHS Markit Ltd. and its subsidiaries ("IHS Markit"). The IHS Markit Data are from sources considered reliable; however, the accuracy and completeness thereof are not warranted, nor are the opinions and analyses published by IHS Markit representations of fact. The IHS Markit Data speak as of the original publication date thereof and are subject to change without notice. IHS Markit and other trademarks appearing in the IHS Markit Data are the property of IHS Markit or their respective owners.
The percentage figures shown may be subject to rounding differences. Due to different proportions and scaling graphs, data shown in different graphs are not comparable.
TRATON
10-28-2021 Press Call 9M 2021 Interim Statement
Press Call 9M 2021 Interim Statement
Christian Levin
Chief Executive Officer
Annette Danielski
Chief Financial Officer
Pietro Zollino¹
Head of Group Communications
¹ as of 11-01-2021
TRATON 10-28-2021 Press Call 9M 2021 Interim Statement
TRATON GROUP Executive Board Members
MANAGEMENT
Christian Levin¹
CEO TRATON SE and Scania
Annette Danielski¹
CFO TRATON SE
Bernd Osterloh
CHRO TRATON SE and MAN Truck & Bus
Dr. Ing. h.c. Andreas Tostmann
CEO MAN Truck & Bus
Antonio Roberto Cortes
CEO Volkswagen Caminhões e Ônibus
Mathias Carlbaum¹
CEO and President Navistar International Corporation
1 newly appointed
TRATON 10-28-2021 Press Call 9M 2021 Interim Statement
4
Agenda
- Environment
- Core KPIs 9M 2021
- Going forward
- Q&A
TRATON 10-28-2021 Press Call 9M 2021 Interim Statement
TRATON GROUP delivers good results despite chip shortage
Limited comparison of figures due to Navistar consolidation
| KEY FACTS 9M 2021 | ||
|---|---|---|
| Incoming orders | Unit sales | |
| up more than 80% to | ||
| 268,317 | up more than 50% to | |
| 195,422 | ||
| NAVISTAR |
First Navistar reporting as part of the TRATON GROUP | | |
| | Planned EV charging JV with Daimler Truck and Volvo Group | New strategy with focus on sustainability, transformation and China |
TRATON 10-28-2021 Press Call 9M 2021 Interim Statement
Supply chain management and decarbonization in focus
TR/ATON 10-28-2021 Press Call 9M 2021 Interim Statement
Political Environment
CV industry committed to decarbonization, but needs the right framework from politics
Global Economy
IMF lowered global growth outlook as supply bottlenecks burden recovery
TRANSFORMING TRANSPORTATION TOGETHER
Business Climate
Strong customer demand, but problems with supply of semiconductors and other materials
TR/ATON
Deep dive global economy
G1
Global economy continues to recover, with less momentum
"Supply disruptions pose another policy challenge. ... pandemic outbreaks and weather disruptions have resulted in shortages of key inputs and dragged manufacturing activity lower in several countries."
IMF WORLD ECONOMIC OUTLOOK
October 2021
TRATON
10-28-2021 Press Call 9M 2021 Interim Statement
Deep dive business climate
D
Business climate in Europe getting weaker since peak in March
1) ACEA new heavy commercial vehicles (HCV) registrations of 16t and over for EU + EFTA + UK
TRATON 10-28-2021 Press Call 9M 2021 Interim Statement
Deep dive political environment
Electrification plays a major role in TRATON's new strategy
Clear E-Mobility Strategy
High investments in electrified CVs especially in long-distance transport, where the greatest potential for CO₂ savings is expected
Right political framework must be in place very soon
CO₂-based tolls, subsidy programs for the purchase of electrified HDVs, development of DC fast-charging infrastructure on motorways and higher prices on fossil fuels are necessary
Dense network of charging infrastructure is needed
Private and public investments in Pan-European high performance charging infrastructure for battery-electric long-haulage HDVs
TRATON 10-28-2021 Press Call 9M 2021 Interim Statement
Deep dive company environment
TR/TON
Nearly 100.000 incoming orders in Q3 2021
TR/TON 10-28-2021 Press Call 9M 2021 Interim Statement
Agenda
- Environment
- Core KPIs 9M 2021
- Going forward
- Q&A
TRATON 10-28-2021 Press Call 9M 2021 Interim Statement
TRATON GROUP is growing with Navistar integration
| TRATON GROUP
prior to Navistar acquisition | | +
Navistar integration | TRATON GROUP
including Navistar | |
| --- | --- | --- | --- | --- |
| Industrial Business | Financial Services | | Industrial Business | Financial Services |
| | | | ▶ Navistar Manufacturing Operations
▶ Effects based on transaction: Purchase Price Allocation | ▶ Navistar Financial Services
▶ Effects based on transaction: Purchase Price Allocation |
Adjusted operating result 9M 2021 (€ million)
TRATON
10-28-2021 Press Call 9M 2021 Interim Statement
Deep dive company environment
TR/TON
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 bill^{1} | |||
| (ratio in units) | 1.37 | 1.14 | 23 bp |
| Of which trucks^{2} | 182,836 | 115,820 | 58% |
| Of which buses | 12,586 | 11,840 | 6% |
| Financial KPIs | |||
| (€ million) | |||
| Sales revenue | 21,670 | 15,740 | 38% |
| Adj. operating result^{3} | 1,322 | -9 | 1,331 |
| Adj. operating ROS^{4} | 6.1% | -0.1% | 6.2 pp |
TR/TON
10-28-2021 Press Call 9M 2021 Interim Statement
1) Units ordered to units delivered
2) Including MAN TGE (9M 2021: 16,020 units, 9M 2020: 11,392 units)
3) 9M 2021: Operating Result €641 mn; 9M 2020: Operating Result €-58 mn
4) 9M 2021: Operating RoS 3.0%; 9M 2020: Operating RoS -0.4%
Deep dive company environment
TR/TON
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 | 3% |
| Primary R&D costs | 989 | 796 | 24% |
| Net cash flow | -2,842 | -148 | -2,694 |
| Net liquidity | -6,806 | 27 | -6,832 |
| Financial Services (€ million) | |||
| Sales revenue | 683 | 612 | 12% |
| Operating result | 170 | 82 | 88 |
1) 9M 2021: Operating Result €476 mn; 9M 2020: Operating Result €-140 mn
2) 9M 2021: Operating RoS 2.2%; 9M 2020: Operating RoS -0.9%
3) Capital expenditures in property, plant, and equipment and intangible assets (€ million)
TR/TON 10-28-2021 Press Call 9M 2021 Interim Statement
Deep dive company environment
TR/TON
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 |
TR/TON 10-28-2021 Press Call 9M 2021 Interim Statement
Deep dive company environment
TR/TON
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 result^{1} | 245 | -414 | 659 |
| Adj. operating ROS^{2} | 3.1% | -6.3% | 9.4 pp |
TR/TON 10-28-2021 Press Call 9M 2021 Interim Statement
1) 9M 2021: Operating Result €-436 mn; 9M 2020: Operating Result €-414 mn
2) 9M 2021: Operating RoS -5.4%; 9M 2020: Operating RoS -6.3%
Deep dive company environment
TR/TON
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 |
TR/TON 10-28-2021 Press Call 9M 2021 Interim Statement
Deep dive company environment
TR/TON
Navistar Manufacturing Operations – Core KPIs
| Units | 9M 2021^{1} |
|---|---|
| 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
TR/TON 10-28-2021 Press Call 9M 2021 Interim Statement
Deep dive company environment
TR/TON
Positive truck market outlook, but risks increasing
EU27+3¹
Market expectations²
2021e
+10% - +25%
South America
Market expectations²
2021e
+25% - +40%
North America
Market expectations²
2021e
+10% - +30%
Source: Historical data based on own calculations and estimates.
1) EU27+3 region (EU27 countries without Malta, plus the United Kingdom, Norway, and Switzerland).
2) Includes estimates from different institutes, companies, and data/information services.
3) Class 4-8.
TR/TON
10-28-2021 Press Call 9M 2021 Interim Statement
TRATON Outlook 2021 – Recovery after strong decline, but challenges increasing
| TRATON Classic | TRATON Classic | TRATON | |
|---|---|---|---|
| FY 2020 | FY 2021 Outlook 07-28-21^{1} | FY 2021 Outlook 10-28-21^{2} | |
| Unit sales | 190.2 k | ||
| -21% | sharp increase | very sharp increase | |
| Sales revenue | €22.6 bn | ||
| -16% | substantial increase | very sharp increase | |
| Operating RoS & operating result | 0.4% | ||
| €81 mn | 5.0 – 7.0% | ||
| upper area achievable | 5.0 – 6.0% | ||
| (approx. 4.0 – 5.0% incl. Navistar PPA)^{3} | |||
| Net cash flow (Industrial Business) | €676 mn | €500 – 700 mn | |
| upper area achievable | €0 – 300 mn^{4} |
1) Before expenses for restructuring measures for the repositioning of MAN Truck & Bus and before effects from the merger with Navistar International Corporation. 2) Navistar International Corporation included from July 1, 2021 (excluding Navistar purchase price allocation), before expenses for restructuring measures for the repositioning of MAN Truck & Bus. 3) Including earnings effects from Navistar purchase price allocation. 4) Excluding negative impact of the purchase price for Navistar (€2,584 mn after deduction of cash and cash equivalents at Navistar Manufacturing Operations at the time of acquisition) and excluding expenses for restructuring measures for the repositioning of MAN Truck & Bus.
TRATON 10-28-2021 Press Call 9M 2021 Interim Statement
Agenda
- Environment
- Core KPIs 9M 2021
- Going forward
- Q&A
TRATON 10-28-2021 Press Call 9M 2021 Interim Statement
We set clear priorities going forward
| 1 | Responsible Company
Make responsible behavior a top priority in everything we do | ▶ Decarbonization & Circularity
▶ People & Pluralism
▶ Governance & Ethics |
| --- | --- | --- |
| 2 | Value Creation
Focus on sustainable value creation for our stakeholders | ▶ Performance-driven
▶ Navistar as a part of TRATON family
▶ TRATON goes China |
| 3 | TRATON Accelerated!
Shape our role in the future logistics ecosystem | ▶ Business Model Expansion
▶ Partnership Culture
▶ Embrace Digital |
TRATON 10-28-2021 Press Call 9M 2021 Interim Statement
Responsible company
24
Electrification is already on its way
| ELECTRIC VEHICLES
9M 2021 | INCOMING ORDERS | UNIT SALES |
| --- | --- | --- |
| TRATON GROUP | 1151 | 666 |
| Trucks (incl. MAN TGE) | 830 | 606 |
| Trucks Scania | 117 | 21 |
| Trucks MAN | 2 | 3 |
| MAN TGE | 699 | 582 |
| Trucks Navistar¹ | 12 | 0 |
| Buses | 321 | 60 |
| Bus Scania | 28 | 8 |
| Bus MAN | 179 | 49 |
| Bus Navistar¹ | 114 | 3 |
Scania electric truck (25 P BEV)
MAN electric bus (Lion's City E)
VWCO electric truck (eDelivery)
Electric International eMV Series
1) Order backlog
TRATON 10-28-2021 Press Call 9M 2021 Interim Statement
Responsible company
Responsible behavior as top priority
RESPONSIBLE BEHAVIOR
Scania joins The Climate Pledge
Scania is joining Amazon and Global Optimism in The Climate Pledge, and is now one of the companies committing to reach net zero carbon emissions by 2040 – ten years ahead of the Paris Agreement.
MAN joins the Science Based Targets Initiative
Sustainability is a key component of the "NewMAN" corporate strategy – this will now also manifest itself in concrete targets for reducing greenhouse gases.
TRATON
10-28-2021 Press Call 9M 2021 Interim Statement
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 and development network
- Steyr production site transferred to WSA, effective August 31, 2021
- Important contribution to cost efficiency
Financial impact
- Restructuring cost of €681 million booked in 9M 2021
- Package of measures to improve earnings by up to €1.7 billion
Strong product portfolio
- Focus on zero-emission technologies with an emphasis on e-mobility
- Autonomous vehicles and digital solutions as game changers
TRATON
10-28-2021 Press Call 9M 2021 Interim Statement
Value creation
U
Navistar at a glance
TR/ATON 10-28-2021 Press Call 9M 2021 Interim Statement
Value creation
U
Strengthen Navistar to regain market share
HDT market share development over time (combined class 8)
TRATON 10-28-2021 Press Call 9M 2021 Interim Statement
Value creation
29
Navistar has multiple opportunities for value creation
Expand beyond the core
- Common Base Engine introduction
- Use of our powerful component and technology set-up within the TRATON GROUP
- Leverage powertrain components within the Group
-
Introduction of our new 13 liter Common Base Engine
-
Strengthen Navistar to regain market share
- Continued strong positon in bus, medium and light duty
- Regain the class 8 market share
-
Establish a strong and competitive product in the class 8 segment
-
Leverage dealer & service network
- Largest dealer network in North America
- After sales uplift / Industry leading aftersales support
TRATON
10-28-2021 Press Call 9M 2021 Interim Statement
Value creation
L
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
- Push the TRATON strategy into a different gear, for more speed
- The brands will act with lots of freedom
TRATON 10-28-2021 Press Call 9M 2021 Interim Statement
Value creation
U
Common Base Engine introduction
Powertrain package introduced 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 Nuremberg/Germany
- Navistar: Preparation of production in Huntsville/USA
Planned market introduction
TR/ATON 10-28-2021 Press Call 9M 2021 Interim Statement
TRATON Accelerated!
TRATON
China is one of the most important profit pools
No.1
World's largest single market for CV
1.6 mn
Trucks sold in 2020
40%
of global sales are generated in China
Scania 1st
Independent Production
Scania will be first western truck manufacturer with fully independent production in China
TRATON
10-28-2021 Press Call 9M 2021 Interim Statement
TRATON Accelerated!
^{}[]
High performance charging network for Europe
>1,700
Public charging points
500 Mio
EUR Invest
- Memorandum of Understanding signed
- Pioneer high-performance public charging network for battery electric heavy-duty long-haul trucks and coaches across Europe planned
- Accelerate the build-up of green energy charging infrastructure
- Enhance customer confidence
- Support EU's transformation to climate-neutral transportation
TRATON
10-28-2021 Press Call 9M 2021 Interim Statement
Agenda
- Environment
- Core KPIs 9M 2021
- Going forward
- Q&A
TRATON 10-28-2021 Press Call 9M 2021 Interim Statement
Contacts Corporate Communications
Pietro Zollino¹
Head of Group Communications
Sacha Klingner
Head of Corporate Communications
Matthias Karpstein
Business Media Relations
TRATON SE
Dachauer Str. 641 | 80995 Munich
www.traton.com
¹ as of 11-01-2021
TRATON 10-28-2021 Press Call 9M 2021 Interim Statement
TRATON
SCHOOL BUS
Press Call
9M 2021 Interim Statement
Christian Levin, CEO | Annette Danielski, CFO
Munich, 10-28-2021
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