Volkswagen Group – Moving ahead

Comments

Transcription

Volkswagen Group – Moving ahead
Volkswagen Group – Moving ahead
Frank Witter
Member of the Board of Management
UniCredit Kepler Cheuvreux German Corporate Conference, Frankfurt, 20 January 2016
Disclaimer
The following presentations contain forward-looking statements and information on the business development of the Volkswagen 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 are based on assumptions relating to the development of the economies of individual
countries, and in particular of the automotive industry, which we have made on the basis of the information available to us and which we consider to be
realistic at the time of going to press. The estimates given involve a degree of risk, and the actual developments may differ from those forecast.
Consequently, any unexpected fall in demand or economic stagnation in our key sales markets, such as in Western Europe (and especially Germany) or in
the USA, Brazil or China, will have a corresponding impact on the development of our business. The same applies in the event of a significant shift in
current exchange rates relative to the US dollar, sterling, yen, Brazilian real, Chinese renminbi and Czech koruna.
If any of these or other risks occur, or if the assumptions underlying any of these statements prove incorrect, the actual results may significantly differ
from those expressed or implied by such statements.
We do not update forward-looking statements retrospectively. Such statements are valid on the date of publication and can be superceded.
This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities.
2
How the NOx issue will be solved
Europe (approved by KBA)
EA189 2.0l (EU5): ~ 5.2m units
• Software fix only
• Working time ca 30 min.
• Fix starts in Q1 2016
USA
EA189 2.0 l
(Gen 1)
EA189 2.0 l
(Gen 2)
EA288 2.0 l
(Gen 3)
~ 0.4 million units
~ 0.1 million units
~ 0.1 million units
EA189 1.6l (EU5): ~ 3m units
• Soft- and Hardware fix required
• Working time < 1h
• Fix starts in Q3 2016
EA189 1.2l (EU5): ~ 0.3m units
• Software fix only
• Working time ca 30 min.
• Fix starts in Q2 2016
Currently coordinating viable solution concepts and
time lines with the responsible authorities EPA and CARB
3
Our 5 top priorities
Helping our customers
Communicating & providing effective technical solutions
Uncovering what happened
Finding out the truth and learning from it
New structure
Launching a more entrepreneurial & decentralized Group structure
New mindset
Profoundly changing the way we do things
New destination
Re-evaluating what we do & re-defining our targets
4
Volkswagen Group reduces level of capex and accelerates the
achievement of Group synergies
Investments in property, plant and equipment
Prior planning as of November 2014
Prioritization and focus on digitalization and e-mobility
New planning as of
November 2015
€64.3 bn
Uncertainty requires
prioritization of
investments
Cancellation or delay of all
projects that are not
absolutely necessary
Not jeopardizing our future:
spending on digitalization
and alternative drive train
technologies will be
increased further
Focus: new products,
continuing rollout and
enhancement of toolkits,
completion of ongoing
capacity expansion
~€13 bn
max €12 bn
2015 - 2019
Ø per year
2016
5
Development World Car Market vs. Volkswagen Group Car Deliveries to Customers1)
(Growth y-o-y in deliveries to customers, January to December 2015 vs. 2014)
bf
World: Market: 2.6% Volkswagen Group: -1.8%
Market
VW Group
Market
VW Group
Market
VW Group
Cars + LCV
6.1%
4.3%
9.0%
5.1%
-7.7%
-23.3%
North America
Market
-21.2%
VW Group
Market
VW Group
2.5%
2.6%
Figures excl. Volkswagen Commercial Vehicles, Scania and MAN.
Central & Eastern Europe
Market
VW Group
4.0%
-3.0%
-29.0%
South America
1)
Western Europe
Rest of World
Asia Pacific
6
Volkswagen Group – Deliveries to Customers by Brands
(January to December 2015 vs. 2014)
‘000 units
12,000
10,000
-2.0%
January – December 2014
January – December 2015
1)
10,1379,931
Passenger Cars
Commercial Vehicles
-4.8%
8,000
6,119
6,000
4,000
5,823
+3.6%
+1.8%
+2.4%
1,741 1,803
2,000
1,037 1,056
391 400
+18.6%
190 225
Volkswagen
Group
1)
2)
Incl. all brands of Volkswagen Group (Passenger Cars and Commercial Vehicles); -1.8% excl. Volkswagen Commercial Vehicles, Scania and MAN.
MAN incl. MAN Latin America Trucks and Busses GVW > 5t
-3.5%
-14.7%
447 431
-4.0%
120 102
80
77
2)
7
Volkswagen Group – Generating cash and robust financial position
Automotive Division - Net Liquidity
Funding programs as of September 30 1)
(in € bn)
(in € bn)
30
Money and Capital Markets
25
Commercial Papers
Medium Term Notes / Bonds
thereof: Hybrid Bonds
ABS2)
20
15
Borrowings
10
Committed Lines
Uncommitted Lines
Supranationals, development banks, government, other
Direct Banking Deposits
Total Amount
5
Utilization
5.5
60.0
7.5
26.5
2.2
7.7
16.0
23.5
141.4
1) Outstandings excluding Porsche, MAN, Scania
2) Including Porsche, MAN
Source: Volkswagen Group
0
2013
2014
Sept 30 2015
8
Volkswagen Group – Outlook for 2015
+ 4.2%
Deliveries to
customers
9,731
10,137
(‘000 vehicles)
Sales revenue
+ 2.8%
202.5
197.0
(€ billion)
We expect …
■ deliveries to customers for the Volkswagen Group in 2015 to remain on a level with the
previous year in a persistently challenging market environment.
■ 2015 sales revenue for the Volkswagen Group and its business areas to increase by up
to 4% y-o-y, depending on the economic conditions. However, economic trends in Latin
America and Eastern Europe will need to be continuously monitored in the Commercial
Vehicles/Power Engineering Business Area.
In terms of operating profit…
■ due to the impact relating to the Diesel issue we anticipate a Group operating profit as
well as for the Passenger Cars Business Area significantly below the prior year level.
Before special items…
■ we anticipate a Group operating return on sales of between 5.5% and 6.5% in 2015 in
light of the challenging economic environment.
Operating return
on sales
5.9
6.3
(%)
2014
2013
Full Year
■ the operating return on sales is expected to be in the 6.0% to 7.0% range in the
Passenger Cars Business Area and between 2.0% and 4.0% in Commercial
Vehicles/Power Engineering.
For the Financial Services Division, we are forecasting an operating profit at the prior-year
level.
9
Passenger car market forecast 2016 – most of the regions are expected
bfto grow
19.6
2014
20.6
2015
21.2
12.1
2016
North America 1)
5.2
2014
2014
3.8
2015
2016
South America 1)
2015
2014
30.9
2015
3.6
2.7
2.8
2014
2015
2016
2016
Western Europe
30.4
4.2
13.3
13.1
Eastern Europe
75.1
75.8
77.9
2014
2015
2016
32.6
2016
Asia-Pacific
4.0
4.2
4.3
2014
2015
2016
World
Rest of World
Source: *IHS Economics as of December 2015
1) Passenger cars and Light Commercial Vehicles
10
Product firework1) in line with expected future market trends
New models 2016 and to follow
Body group trends until 20202)
Sedan
+9%
SUV
+30%
Hatchback
+15%
Pick-Up
+11%
MPV
+4%
Transporter
+13%
Micro Van
+14%
Estate
+20%
Coupe
+15%
1)
10
Schematic overview – does not show all models
A6L e-tron
3)preliminary
Magotan
Q2
A+ SUV
Bentayga
B-SUV
Tiguan
Q5
Entry SUV
SEAT A-SUV
Hatchback
Rapid (IND)
A3
up!
Gol
Leon
Other
Cayman
911
Beetle
IHS
Panamera
SUV
20
2) Source:
Voyage
C-Modell (CN)
-6%
City Van
million 0
Sedan
until 2020
Volume in 2015 3)
figures
Amarok
Saveiro
A5
Boxster
11
Tightening environmental regulation and major trends
driving R&D expenditures
… CO₂ and EU6 regulations
… Market / consumer trends
Grams CO2 per kilometer, normalized to NEDC
Status and forecast of CO₂-regulations
EU
270
US-LDV
(PC+LDT)
China
250
Digitalization
Shorter
lifecycles
E-mobility
SUV
trend
Automated
driving
Shift in
priorities
230
US baseline: 219
210
China baseline: 185
190
170
China 2015: 167
150
US 2025:107
EU baseline: 142
130
110
90
2000
Source: based on ICCT
EU 2020: 95
2005
2010
2015
2020
2025
12
Volkswagen Brand: Substantial efficiency measures across all business
areas to ensure €5 billion earnings improvement
Sales &
Distribution
Revenue
• Adapt lifecycle strategy to meet core
regional competition
• Focus on models providing sustainable
profitability
• Expand after-sales business
Cost
• Reduce complexity and improve
decision making process
• Increase use of common parts and
reduction of number of variants
• Sharpen target-oriented investment
• Increase localization in core markets
• Enhance R&D efficiency
• Leverage scale effects and groupwide
synergy potential further
Regional
business models
Fixed
costs
Production
Procurement
R&D
2014
2015
13
Efficiency program well on the way in all business areas
Complexity reduction1)
Glove box
Logistics cost improvement
Steering wheel packages
~65%
Interior paneling
~40%
Front seats
Production location optimization
~50%
Battery
Interior lamps
~50%
1)
~20%
Percentage of reduction in number of variants, Example: Golf 7
~50%
14
USA - Shorter life cycles, presence in growth segments and realizing scale
• Moving towards a 2 x 5 year life cycle
• Extending the product range by offering more models in growth segments
• Design, size and interieur are steered by North American Planning &
Engineering Center in Chattanooga, TE
• Moving all major models on MQB to realize economies of scale
• Significant increase of local production, sourcing and working on costs
New products from 2016 onwards
Nafta Production in ‘000
units on MQB
…
New Passat (USA)
New Jetta (Mex)
Golf Alltrack
B-SUV
CC
New Tiguan LWB (Mex)
New B-SUV (USA)
Tiguan
T-Roc 1)
Golf SportWagen (Mex)
Golf 7 (Mex)
1) T-Roc
is a concept car and could
be subject to change
100
2014
2015
2016
2017
…
15
Product innovation and cost reduction are the key pillars of Volkswagen’s
strategy to cope with challenges in emerging markets
Intensified competitive environment
Profitability
Volume under pressure in difficult environment
Export difficult due to high cost base & trade barriers
3
-14%
-16%
2
-36%
2012
2013
2014
Volkswagen Group
Deliveries to Customers
[Brazil, Passenger Cars and LCVs]
Introduce range of MQB vehicles incl. A0/SUVs
utilizing global sourcing and synergies in R&D and
production
Time
Refresh existing product portfolio and extend range of
drivetrain technologies
2015
1
Restructure business, streamline cost position and intensify export
16
Deep roots and strong market position combined with further growth
potential assures continued profitable growth in China
Deliveries to customers - solid 4th quarter
3,675
(thousand units)
Strong operational & financial track record
(in € bn / million units)
3,549
5.2
2014
4.5
4.3
3.7
881 898
Q1
933 845
Q2
906 835
Q3
FY
Localization of New Electric Vehicles
0.40.3
0.8
0.4
0.8
2008
2009
2010
1.2
2011
Dividends paid to
Volkswagen AG
2012
2013
30%
24%
76%
70%
…
2013
import
2016
local production
2014
2015
Significant extension of SUV portfolio until 2020
Market Segmentation
2014
2015
> 15 models
3.0
2.0
1.9
2015
Q4
2.8
2.6
955 969
Proportionate
Operating Profit
Other Bodystyles
Locally produced SUVs
2015
mid-term
4
>10
SUVs
17
Core challenges in commercial vehicle industry ...
Cyclical
markets
Further
globalization
Emission
regulations
Connectivity &
digitalization
After sales and
new business
opportunities
Strong correlation to GDP in developed world
Not all regions hit by economic downturns at the same time
Local OEMs dominating in BRIC markets
Improving infrastructure, stronger regulations open opportunities for Volkswagen
Europe with aggressive regulations, focus shifting to diesel lock-outs
BRIC trailing behind, but with ambitious roadmap
Platooning and partly-autonomous driving as transition solutions
Data management for customers and traffic of broad interest
New
solutions
& services
gaining
importance
Aftercustomer
sales increasingly
important
as alternative
source
of revenues
• After sales increasingly important as alternative source of revenues
New business models (e.g. enhanced telematics) can stabilize revenues
• New business models (e.g. enhanced telematics) can stabilize revenues
18
... require Volkswagen truck brands to cooperate closely
Cyclical
markets
Further
globalization
Emission
regulations
Connectivity &
digitalization
After sales and
new business
opportunities
Global market reach to ensure sufficient
volume in local up- & downturns
Close cooperation
going forward
Reduced fixed costs through
modularization and shared components
Combined R&D know-how for
competitive product development
Additional value through customer
services
19
VW Financial Services1): A global, well diversified and successful business
Strong global presence
Continuous portfolio expansion
in ‘000 contracts
Existing
markets
Focus
markets
1,964
1,505
2,148
1,508
2,246
1,524
3,163
3,567
3,712
2,691
3,930
1,623
3,281
3,796
1,808
1,983
4,551
4,946
4,549
4,727
2,274
2,371
5,560
5,719
Total
portfolio
12,817
Start /
market entry
Financing
32.5%
32.9%
34.9%
36.3%
44.3%
44.5%
Insurance / Services
Diversified funding structure
Rising penetration rates
40.7%
Leasing
45.8%
w/o China
Equity, liabilities to
affiliated companies,
other
30%
Asset backed securitization
15%
with China
26.4%
25.0%
24.7%
25.4%
27.5%
28.9%
30.6%
31.0%
17%
38%
Customer deposits
Bonds,
Commercial Paper,
liabilities to financial
institutions
September 2015: €148.2 bn
1)
All shown figures show VW Financial Services as of 30 June 2015, excluding financial service activities of Scania, Porsche AG and Porsche Holding Salzburg; MAN financial services activities are included from 1 January 2014
20
Strategy 2025 is currently being developed to prepare the Volkswagen
Group for the new challenges in the automotive industry
New focus areas
Digitalization
• New function reporting to
Group CEO
• Group-wide initiative
• Digital Future Labs
• Industry / Business 4.0
Sustainability
• 20 additional
e-models by 2020
• Focus on battery technology
• Innovative conventional
drive trains
Integrity/Compliance
• New function in Board of
Management
• Firmly anchored in
structures and processes
Foundation
Strategy
2025
(to be presented
mid-2016)
Strategy 2018
Future Tracks
21
Appendix
22
Volkswagen Tiguan
23
Volkswagen Budd-e
24
Audi e-tron quattro concept
25
Audi A4 TFSI quattro
26
Porsche 911 Turbo S Cabrio
Porsche 911 Turbo S
27
Porsche Mission E Concept
28
ŠKODA Superb Combi SportLine
29
SEAT Leon Cross Sport
30
Bentley Bentayga
31
Lamborghini Huracán LP 610-4 Spyder
32
Volkswagen Multivan
33
MAN TGX D38
34
Scania R 730 6x4 Streamline
35
Volkswagen Group – Moving ahead
Frank Witter
Member of the Board of Management
UniCredit Kepler Cheuvreux German Corporate Conference, Frankfurt, 20 January 2016

Similar documents