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Traton — Non-Deal Roadshow (April 2024)
35 slides from Traton's roadshow presentation, April 2024
Slide 1: Q1 2024 Results Roadshow Presentation
Q1 2024 RESULTS ROADSHOW PRESENTATION Investor Relations | April 2024
Slide 2: Disclaimer
Roadshow Presentation 2 Investor Relations 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, TR
Slide 3: We're a transportation powerhouse
Roadshow Presentation 3 Investor Relations WE‘RE A TRANSPORTATION POWERHOUSE … Four strong global brands under one roof 103,621 Employees worldwide Transforming Transportation Together. For a sustainable world. €46.9 bn Sustainability as core principle and as top priority in Sales revenue the Group’
Slide 4: With four strong global brands under one roof
… WITH FOUR STRONG GLOBAL BRANDS UNDER ONE ROOF
Slide 5: We are dedicated to be the sustainability leader in heavy transport
Roadshow Presentation 5 Investor Relations WE ARE DEDICATED TO BE THE SUSTAINABILITY LEADER IN THE HEAVY TRANSPORT SECTOR Decarbonization Circularity Human Rights Reduce greenhouse gas Decouple the use of resources Respect Human Rights and emissions across the value from our business growth enable a
Slide 6: Our production & assembly sites span around the globe
Roadshow Presentation 6 Investor Relations OUR PRODUCTION & ASSEMBLY SITES SPAN AROUND THE GLOBE 4 Commercial vehicle brands Södertälje, Sweden Lisle, Illinois, USA Munich, Germany 12 Countries Countries where TRATON GROUP has production and assembly sites. Our brands also have regional product cent
Slide 7: Our captive financial services business is ramping up its offering
Roadshow Presentation 7 Investor Relations OUR CAPTIVE FINANCIAL SERVICES BUSINESS IS RAMPING UP ITS OFFERING FOR ALL BRANDS Objectives/business model Ramp-up in three overarching steps Comprehensive financing options Step 1 Step 2 Step 3 to meet the demand for new Short-term foundation Medium-term
Slide 8: TRATON is one of the largest global truck & bus producers
Roadshow Presentation 8 Investor Relations TRATON IS ONE OF THE LARGEST GLOBAL TRUCK & BUS PRODUCERS … Sales revenue FY 2023 (€ bn) 55.9 46.9 34.5 32.5 16.2 Daimler Truck Volvo Paccar Iveco Note: For Volvo only business segments Trucks & Buses are included. Source: Company data, own calculations.
Slide 9: Well-diversified regional and brand mix
Roadshow Presentation 9 Investor Relations … WITH A WELL-DIVERSIFIED REGIONAL AND BRAND MIX Unit sales per region, FY 2023 (units) Sales revenue per brand, FY 2023 (€ mn) Financial Services Other regions Germany 3% South America 11% 13% (excl. Brazil) 3% Navistar 24% Scania 38% Brazil 12% 338.183 46
Slide 10: Profitable growth path with increasing sales and margins
Roadshow Presentation 10 Investor Relations WE ARE ON A PROFITABLE GROWTH PATH WITH INCREASING SALES AND MARGINS Incoming orders (k units) Unit sales (k units) Book-to-bill (ratio in units) 360 335 338 1.33 305 1.14 265 272 1.10 227 242 0.94 216 190 0.78 2019 2020 2021 2022 2023 2019 2020 2021 2022
Slide 11: Major milestones on our TRATON way forward
Roadshow Presentation 11 Investor Relations MAJOR MILESTONES ON OUR TRATON WAY FORWARD 2015 2019 2021 2021 2022 2023 2024 Establishment of Successful IPO Acquisition of Introduction Milence charging JV with First S13 units Transition to One VW Truck & Bus of TRATON SE Navistar of new Daimler Truck d
Slide 12: The TRATON Way Forward translates into a long-term vision
Roadshow Presentation 12 Investor Relations THE TRATON WAY FORWARD TRANSLATES INTO A LONG-TERM VISION FOR THE GROUP Responsible The TRATON GROUP and its portfolio brands are Company committed to becoming more sustainable, focusing on a number of areas, including decarbonization and circularity. Valu
Slide 13: TRATON Modular System for efficient future growth
Roadshow Presentation 13 Investor Relations WITH OUR TRATON MODULAR SYSTEM WE ARE WELL POSITIONED FOR EFFICIENT FUTURE GROWTH TRATON Realized value Modular Profitable mass customization based on a modular System system ensures long-term competitive advantage Principles of the TRATON Modular System R
Slide 14: Why TRATON is an attractive investment
Roadshow Presentation 14 Investor Relations WHY TRATON IS AN ATTRACTIVE INVESTMENT Strong competitive position State-of-the-art products and Substantial potential from Clear plan and commitment to with a diversified regional and services strongly geared towards leveraging know-how of brands execute
Slide 15: Electrification is gaining momentum
Roadshow Presentation 15 Investor Relations ELECTRIFICATION IS GAINING MOMENTUM
Slide 16: CO2 impact stems almost exclusively from products' use phase
Roadshow Presentation 16 Investor Relations OUR CO 2 IMPACT STEMS ALMOST EXCLUSIVELY FROM OUR PRODUCTS’ USE PHASE – BUT WILL CHANGE IN THE FUTURE Combustion engine BEV BEV (electricity mix)1 (green electricity)2 Use Production Maintenance Recovery 1 Based on EU 2016 electricity mix. 2 Based on progn
Slide 17: Battery electric vehicles become the leading technology for trucks and buses
Roadshow Presentation 17 Investor Relations WE SEE BATTERY ELECTRIC VEHICLES BECOME THE LEADING TECHNOLOGY FOR TRUCKS AND BUSES Additional alternative technologies ICE competing with diesel BEV 2022 2030 2040 Note: Illustrative visualization; development of BEV in the relevant regions: EU27+3, USA,
Slide 18: BEV with a clear total cost of ownership advantage
Roadshow Presentation 18 Investor Relations BEV WITH A CLEAR TOTAL COST OF OWNERSHIP ADVANTAGE FOR OUR CUSTOMERS Production Refueling Operation BEV Electrical energy distribution & mix of slow & DC-AC, engine & 75% inversion AC/DC fast charging transmisson of energy reaches the wheels 100% – 10% – 5
Slide 19: Cost distribution will change significantly with fully electric trucks
Roadshow Presentation 19 Investor Relations THE COST DISTRIBUTION WILL CHANGE SIGNIFICANTLY WITH FULLY ELECTRIC TRUCKS Cost distribution of a typical Cost distribution electric long-haul long-haul heavy-duty truck - today heavy-duty truck ~2025-30 Savings Energy potential incl. infrastructure Electr
Slide 20: Transforming transportation together: recent BEV highlights
Roadshow Presentation 20 Investor Relations OUR PURPOSE: TRANSFORMING TRANSPORTATION TOGETHER. FOR A SUSTAINABLE WORLD. TRATON’s recent BEV highlights Incoming orders of fully electric Unit sales of fully electric vehicles vehicles (units) (units) 2,430 2,107 2,366 1,740 Market launch of the new MAN
Slide 21: Q1 2024 Highlights & Review of Financial Performance
Roadshow Presentation 21 Investor Relations Q1 2024 HIGHLIGHTS & REVIEW OF FINANCIAL PERFORMANCE
Slide 22: A strong start into 2024 for TRATON
Roadshow Presentation 22 Investor Relations A STRONG START INTO 2024 FOR TRATON Q1 2024 Vehicles Sales Adjusted Net cash flow Earnings per share sold revenue return on sales TRATON Operations 81,148 €11.8 bn 9.4% €438 mn €1.50 -4% YoY +5% YoY +1.0 pp YoY -€299 mn YoY1 +€0.39 YoY 1 Q1 2023 including
Slide 23: We accelerate the transformation journey
Roadshow Presentation 23 Investor Relations WE ACCELERATE THE TRANSFORMATION JOURNEY Highlights TRATON establishes One Group R&D High demand for Navistar MAN launches a small series of Scania adds more solutions to its Partnership with Plus takes TRATON organization to efficiently drive Internationa
Slide 24: We continue to capitalize on our high order book
Roadshow Presentation 24 Investor Relations WE CONTINUE TO CAPITALIZE ON OUR HIGH ORDER BOOK ― Truck unit sales as expected with a slight Incoming orders & Unit sales (k units) decline year-on-year due to Europe and North America Incoming orders Unit sales ― Overall truck demand remains solid with 1
Slide 25: Sales revenue benefiting from mix effects and pricing
Roadshow Presentation 25 Investor Relations SALES REVENUE BENEFITING FROM MIX EFFECTS AND PRICING … ― Unit sales at solid, normalized level Unit sales (k units) Sales revenue (€ bn) ― Favorable product and market mix Vehicle Services business ― Better unit price realization ― Continued high customer
Slide 26: Efficiency gains leading to record margin level
Roadshow Presentation 26 Investor Relations … TOGETHER WITH EFFICIENCY GAINS LEADING TO RECORD MARGIN LEVEL ― Increased sales revenue per unit Adjusted operating result (€ mn) Adjusted return on sales (%) ― Improved cost structure, despite lower production capacity utilization ― Positive impact from
Slide 27: Strong Q1 2024 with different growth dynamics
Roadshow Presentation 27 Investor Relations STRONG Q1 2024 WITH DIFFERENT GROWTH DYNAMICS TRATON TRATON Operations Financial Services Q1 Sales revenue 11,477 4,879 3,516 2,430 773 453 24 (in € mn, YoY) (+5%) (+17%) (+3%) (-11%) (+9%) (+29%) Adjusted RoS 10.4% 14.3% 7.9% 5.0% 11.0% 13.2% (Return on e
Slide 28: Net debt further reduced despite higher working capital
Roadshow Presentation 28 Investor Relations NET DEBT FURTHER REDUCED DESPITE HIGHER WORKING CAPITAL ― Net cash flow of TRATON Operations driven by: Net financial debt bridge, Q1 24 (€ mn) Net debt ― improved operating performance reduction by ― seasonally weaker working capital, with a -€296 mn capi
Slide 29: Full Year 2024 Outlook
Roadshow Presentation 29 Investor Relations FULL YEAR 2024 OUTLOOK
Slide 30: Optimistic outlook for 2024 confirmed
Roadshow Presentation 30 30 Investor Investor Relations Relations OPTIMISTIC OUTLOOK FOR 2024 CONFIRMED FY 2023 FY 2024 Outlook TRATON GROUP Unit sales (€ million) 338,183 -5 ‒ +10% Sales revenue (€ million) 46,872 -5 ‒ +10% Operating return on sales (adjusted) (in %) 8.61 8.0 ‒ 9.01 TRATON Operatio
Slide 31: Truck demand remains solid while markets are normalizing
Roadshow Presentation 31 Investor Relations TRUCK DEMAND REMAINS SOLID WHILE MARKETS ARE NORMALIZING EU27+31 (k units, >6t) North America (k units, class 6-82) South America (k units, >6t) 600 600 600 500 500 500 445 400 387 400 400 300 300 300 200 200 200 154 100 100 100 0 0 0 09 11 13 15 17 19 21
Slide 32: TRATON – gaining pace on our transformation journey
Roadshow Presentation 32 Investor Relations TRATON – GAINING PACE ON OUR TRANSFORMATION JOURNEY Transformation execution with attractive return On track to Resilience materially Positioned for tangible Leading position profile best-in-class improved after upside with clear in a growing performance s
Slide 33: Save the date: Capital Markets Day October 1, 2024
Roadshow Presentation 33 Investor Relations SAVE THE DATE CAPITAL MARKETS DAY OCTOBER 1, 2024 MUNICH, GERMANY
Slide 34: TRATON Investor Relations Team
Roadshow Presentation 34 Investor Relations TRATON INVESTOR RELATIONS TEAM Ursula Querette Thomas Paschen Head of Investor Relations Analysts and Investors, Consensus, Private Investors +49 152 021 52 400 +49 170 907 34 94 [email protected] [email protected] Marie Fischhaber Fabian
Slide 35: Upcoming events
Roadshow Presentation 35 Investor Relations UPCOMING EVENTS ― 2024/06/13 2024 Annual General Meeting ― 2024/07/26 2024 Half-Year Financial Report ― 2024/10/01 TRATON Capital Markets Day ― 2024/10/28 9M 2024 Interim Statement TRATON SE Hanauer Strasse 26 80992 Munich Germany www.traton.com investor.r