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TRATON SE Investor Presentation 2022
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Investor Presentation
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TR/ITON
2022 Half-Year Financial Report
Christian Levin, CEO | Annette Danielski, CFO
Munich, 07-28-2022
SCANIA / MANI / SUN RAILWAY / NAVISTAR / IT
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 in graphs, data shown in different graphs are not comparable.
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
Press call for the 2022 Half-Year Financial Report – Your speakers today
Christian Levin
Chief Executive Officer
Annette Danielski
Chief Financial Officer
Pietro Zollino
Head of Group Communications
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
Agenda
- Core KPIs H1 2022
- Going forward
- Q&A
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
TRATON GROUP performing well in an extremely difficult environment
| KEY FACTS H1 2022 AND GOING FORWARD | ||
|---|---|---|
| Unit sales | ||
| up 9% to | ||
| 137,294 | Revenue | |
| up 32% to | ||
| €17,982 mn | Operating result (adjusted) | |
| down by €330 mn to | ||
| €798 mn | ||
| €500 mn | ||
| combined investment | ||
| In electric vehicle charging joint | ||
| venture with Daimler Truck and | ||
| Volvo Group | TRATON boosts e-mobility with | |
| investments in battery technology | "TRATON Way Forward" | |
| strategy with focus on | ||
| execution and modularization |
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
Increasingly challenging and volatile environment
Geopolitical environment
- War in Ukraine continuing with broadened sanction regime against Russia
- Energy security and gas supply in parts of Europe at risk
- Global economic activity strongly affected and high risk for industrial outlook
Business climate
- Truck demand remains robust with increasing fleet ages and long delivery times
- Used truck market and prices continue on high level
- Truck market still below pre-pandemic levels in key markets
Supply chain bottlenecks
- Shortages continue beyond semiconductors in raw materials and pre-products
- Logistics capacity bottlenecks
- Softening supply gaps for wiring harnesses produced in Ukraine
Inflationary pressure
- Strong pressure from broad-based increase of procurement prices
- Highest inflation since decades for consumer and industrial goods
- Rising interest rate environment and wage demands
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
Severe impact from supply shortages on Q2 unit sales
Unit sales (k units)
TR/ATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
Vehicle Services business continuing to gain traction
Service business sales revenue¹ (€ bn)
In % of TRATON Operations
Navistar contribution
1 Including spare parts and workshop services
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
- Sales revenue in Vehicle Services business increased by 62% YoY in Q2 2022
- Expansion of service business fostered by strong investments and the inclusion of Navistar Sales & Services
- Enhancing business mix and customer focus: Non-cyclical revenue stream with superior margins, and compelling long-term growth trend
TRATON GROUP Core KPIs
| Units | H1 2022 | H1 2021 | Change |
|---|---|---|---|
| Trucks and buses | |||
| Incoming orders | 164,213 | 170,946 | -4% |
| Unit sales | 137,294 | 126,450 | 9% |
| of which trucks | 115,115 | 108,665 | 6% |
| of which buses | 12,894 | 6,503 | 98% |
| of which MAN TGE vans | 9,285 | 11,282 | -18% |
| Financial KPIs | |||
| (€ million) | |||
| Sales revenue | 17,982 | 13,621 | 32% |
| Operating result (adj.) | 798 | 1,128 | -330 |
| Operating return on sales (adj.) | 4.4% | 8.3% | -3.8 pp |
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
Deep Dive Group Core KPIs
| Units | H1 2022 | H1 2021 | Change |
|---|---|---|---|
| TRATON Operations (€ million) | |||
| Sales revenue | 17,634 | 13,402 | 32% |
| Operating result (adj.) | 869 | 1,117 | -248 |
| Operating return on sales (adj.) | 4.9% | 8.3% | -3.4 pp |
| Capex | 469 | 345 | 36% |
| Primary R&D costs | 896 | 614 | 46% |
| Net cash flow | -1,395 | 941 | -2,335 |
| Net liquidity¹ | -2,931 | -1,694 | -1,237 |
| Financial Services (€ million) | |||
| Sales revenue | 609 | 419 | 45% |
| Operating result (adj.) | 146 | 100 | 47 |
¹As of June 30, 2022, and December 31, 2021
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
Scania Vehicles & Services – Core KPIs
| Units | H1 2022 | H1 2021 | Change |
|---|---|---|---|
| Trucks and buses | |||
| Incoming orders | 39,213 | 75,437 | -48% |
| Unit sales | 36,834 | 49,229 | -25% |
| Financial KPIs | |||
| (€ million) | |||
| Sales revenue | 6,839 | 7,155 | -4% |
| Operating result (adj.) | 534 | 860 | -327 |
| Operating return on sales (adj.) | 7.8% | 12.0% | -4.2 pp |
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
MAN Truck & Bus – Core KPIs
| Units | H1 2022 | H1 2021 | Change |
|---|---|---|---|
| Trucks and buses | |||
| Incoming orders | 47,735 | 67,414 | -29% |
| Unit sales | 34,858 | 47,317 | -26% |
| Financial KPIs | |||
| (€ million) | |||
| Sales revenue | 4,973 | 5,408 | -8% |
| Operating result (adj.) | 34 | 179 | -145 |
| Operating return on sales (adj.) | 0.7% | 3.3% | -2.6 pp |
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
Navistar Sales & Services – Core KPIs
| Units | H1 2022 |
|---|---|
| Trucks and buses | |
| Incoming orders | 50,471 |
| Unit sales | 37,333 |
| Financial KPIs | |
| (€ million) | |
| Sales revenue | 4,666 |
| Operating result | 157 |
| Operating return on sales | 3.4% |
Navistar included from July 1, 2021
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
Volkswagen Truck & Bus – Core KPIs
| Units | H1 2022 | H1 2021 | Change |
|---|---|---|---|
| Trucks and buses | |||
| Incoming orders | 26,894 | 28,129 | -4% |
| Unit sales | 28,423 | 30,011 | -5% |
| Financial KPIs | |||
| (€ million) | |||
| Sales revenue | 1,445 | 1,021 | 42% |
| Operating result | 149 | 77 | 72 |
| Operating return on sales | 10.3% | 7.6% | 2.8 pp |
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
Truck market outlook – Uncertainties due to high geopolitical and economic risks
15
Market expectations²
2022e
+0% – +10%
Market expectations²
2022e
-5% – +10%
Market expectations²
2022e
+0% – +15%
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 US and Canada class 6-8, Mexico class 4-8
Source: Historical data based on own calculations and estimates
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
TRATON outlook 2022 largely confirmed, while geopolitical and economic risks are high
| | FY 2021 | FY 2022
Outlook
Q1 2022 Interim Statement | FY 2022
Outlook
2022 Half-Year Financial Report¹ |
| --- | --- | --- | --- |
| Unit sales | 271.6 k
+43% | sharp
increase | substantial
increase |
| Sales revenue | €30.6 bn
+36% | very sharp
increase | very sharp
increase |
| Operating RoS
(adjusted) | 5.2% | 5.0 – 6.0%
(incl. PPA, expected to be
~€270 – 290 mn²) | 5.0 – 6.0%
(incl. PPA, expected to be
~€270 – 290 mn²) |
| Net cash flow
(TRATON Operations) | €938 mn | €700 – 1,000 mn³ | €700 – 1,000 mn³ |
1 It remains impossible to predict the effects of the impact of the continuing supply chain bottlenecks, possible energy shortages, and the further course of the war in Ukraine with sufficient certainty. Therefore, the risk remains that as these issues evolve, they may have a negative impact on the TRATON GROUP's business activities. Moreover, negative effects may still arise if the COVID-19 situation were to deteriorate once more, bringing with it further supply chain difficulties.
2 Based on preliminary purchase price allocation
3 The forecast does not include expenses at Scania Vehicles & Services in connection with the EU antitrust proceedings
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
Agenda
- Core KPIs H1 2022
- Going forward
- Q&A
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
Strategy TRATON Way Forward
Focus on sustainable value creation for our stakeholders
- Performance-driven
- Navistar as part of TRATON family
- TRATON goes China
Make responsible behavior a top priority in everything we do
- Decarbonization & Circularity
- People & Pluralism
- Governance & Ethics
Shape our role in the future logistics ecosystem
- Business Model Expansion
- Partnership Culture
- Embrace Digital
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
TRATON continues to drive electrification forward
Charging infrastructure
- TRATON GROUP, Daimler Truck, and Volvo Group kick off European charging infrastructure JV following regulatory clearance
- Combined investment of €500 mn to install and operate at least 1,700 high-performance charging points
Technology & production
- E-mobility investments of €2.6 bn (2021–2026)
- Scania’s new battery lab in operation
- MAN production of heavy-duty e-trucks now scheduled to begin in early 2024
- MAN builds battery factory in Nuremberg with annual capacity of up to 100k
Products
- Scania introduces electric trucks for regional long-haul
- Electric Scania trucks in operation at LKAB mine in Northern Sweden
- 74-tonne electrified Scania truck delivered to Boliden
- MAN Truck & Bus to be offering eBus chassis for the global market
- MAN heavy-duty long-haul prototype with 600-800 km daily range in partnership with ABB E-mobility
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
TRATON's electric vehicles business evolving
Incoming orders and unit sales of fully electric vehicles (units)
All TRATON brands with BEV products across major applications / weight classes
Note: Q3 21 and Q4 21 Navistar order backlog
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
Modularization is key on our way to stronger profitability
Build up a TRATON Modular System
We create standardized Group interfaces
Within the Group: same need – identical solution
Differentiate via balanced performance steps
Enable profitable mass customization of broad variant offering and ensure long-term competitive advantage
TRATON 07-28-2022 Press Conference Cell 2022 Half-Year Financial Report
Agenda
- Core KPIs 3M 2022
- Going forward
- Q&A
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
Contacts Corporate Communications
Pietro Zollino
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
TRATON 07-28-2022 Press Conference Call 2022 Half-Year Financial Report
TR/ITON
2022 Half-Year Financial Report
Christian Levin, CEO | Annette Danielski, CFO
Munich, 07-28-2022
SCANIA / MANI / SUN RAILWAY / NAVISTAR / IT