Live INVESTOR and ANALYST Audio Webcast and Conference Call - April 29th, 2020
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Analyst and Investor Conference 2020 Live INVESTOR and ANALYST Audio Webcast and Conference Call April 29th, 2020
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, 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. These assumptions relate in particular to the development of the economies of individual countries and markets, the regulatory framework and the development of the automotive industry. Therefore the estimates given involve a degree of risk, and the actual developments may differ from those forecast. The Volkswagen Group currently faces additional risks and uncertainty related to pending claims and investigations in a number of jurisdictions in connection with findings of irregularities relating to exhaust emissions from diesel engines in certain Volkswagen Group vehicles. The degree to which the Volkswagen Group may be negatively affected by these ongoing claims and investigations remains uncertain. The recent outbreak of COVID-19 (commonly referred to as coronavirus) has negatively impacted economic and social conditions in primary markets of Volkswagen, including China and Europe, as public, private, and government entities have implemented containment measures. The continued spread of COVID-19 has caused shortages of necessary materials and parts from suppliers directly or indirectly affected by the outbreak and has caused operational disruptions and interruptions at Volkswagen's production facilities, which led to production downtimes. The COVID-19 pandemic and the respective containment measures might continue to have a negative impact in the future. A negative development relating to ongoing claims or investigations, the continuation of COVID-19, an 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, and trade disputes among major trading partners 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 in particular 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 superseded. This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities.
Analyst and Investor Conference Q1 2020
Frank Witter Dr. Christian Dahlheim Helen Beckermann
Chief Financial Officer Director Group Sales Head of Group Investor Relations
Volkswagen AG Volkswagen AG Volkswagen AG
3Financial Highlights January – March 2020
Volkswagen Group’s business sustains a substantial blow from Covid-19 pandemic in first quarter of 2020
Deliveries to Volkswagen Group customers 23.0% down on previous year at 2.0 (2.6) million vehicles;
declines especially in Asia-Pacific and Europe
Group sales revenue decreases by 8.3% to €55.1 billion
Operating profit of €0.9 billion down €3.0 billion on prior-year figure including special items; demand-related fall in
volumes, fair value measurement of commodity hedges and exchange-rate effects have a negative impact
Profit before tax decreases to €0.7 (4.1) billion
Automotive Division’s net cash flow down €4.5 billion on prior-year period to €–2.5 billion; capex ratio of 4.7 (4.0)%
Net liquidity in the Automotive Division at €17.8 billion
4Volkswagen Group – Deliveries to Customers by Brands1)
(January to March 2020 vs. 2019)
[thsd. units]
January - March 2019
January - March 2020
Volume Premium Sport & Luxury Truck & Bus
-23.0% -24.1 % -21.0 % -4.2 % -19.5 %
3,000
2,606
2,500
2,006 -25.1%
2,000
1,456
1,500
1,092
-21.1%
1,000 -24.3%
-14.0% -24.4% -4.6%
-2.4% +5.6% -17.2% -22.9%
447 353
500 308 233
152 130 126 95
2 2 56 53 2 2 34 28 24 18
0
1) Volkswagen Group excl. Ducati 5Development World Car Market vs. Volkswagen Group Car Deliveries to Customers1)
(Growth y-o-y in deliveries to customers, January to March 2020 vs. 2019)
Car Market VW Group Car Market VW Group Car Market VW Group
-6.5% -9.3%
-13.1% -12.9%
-19.5%
-27.0%
North America (incl. LCV) Western Europe Central & Eastern Europe
Car Market VW Group Car Market VW Group Car Market VW Group
-4.2%
-14.9%
-23.3% -23.0%
-31.2% -33.6%
South America (incl. LCV) World 2) Asia Pacific
1) Volkswagen Group Passenger Cars excl. Volkswagen Commercial Vehicles 2) incl. LCV in North America & South America
6Volkswagen Group – Analysis of Operating Profit1)
(January to March 2020)
[€ billion]
5
1.0 -1.1
4
3
-1.8
4.8
2 3.9 -0.1
-0.7
1 -0.3 0.0 0.0
0.9
0
Jan-March Special Items Jan - March Volume/ Exchange Product Costs Fixed Costs Commercial Power Financial Jan - March
2019 2019 Mix/ Prices Rates / Vehicles** Engineering** Services 2020
incl. Special excl. Special Derivatives Division
Items Items
Passenger Cars*/**
1) All figures shown are rounded, minor discrepancies may arise from addition of these amounts. *) without FS ** ) including PPA
7Volkswagen Group – Analysis by Business Line1)
(January to March 2020)
Vehicle sales Sales revenue Operating profit Operating margin
thousand vehicles / € million / percentage 2020 2019 2020 2019 2020 2019 2020 2019
Volkswagen Passenger Cars 765 910 18,965 21,538 481 921 2.5 4.3
Audi 268 305 12,454 13,812 15 1,100 0.1 8.0
ŠKODA 237 275 4,850 4,920 307 410 6.3 8.3
SEAT 140 176 2,558 3,053 -48 89 -1.9 2.9
Bentley 3 3 620 456 56 49 9.0 10.7
Porsche Automotive 2) 56 57 5,394 5,224 529 829 9.8 15.9
Volkswagen Commercial Vehicles 99 129 2,671 3,294 14 291 0.5 8.8
Scania 3) 19 24 2,982 3,350 256 370 8.6 11.0
MAN Commercial Vehicles 28 34 2,633 2,988 -83 115 -3.2 3.8
Power Engineering - - 922 891 16 9 1.7 1.0
VW China 4) 503 901 - - - - - -
Other 5) -180 -229 -8,842 -8,220 -1,293 28 - -
Volkswagen Financial Services - - 9,847 8,706 654 638 - -
Volkswagen Group before Special Items - - - - 904 4,849 1.6 8.1
Special Items - - - - - -981 - -
Volkswagen Group 1,937 2,583 55,054 60,012 904 3,868 1.6 6.4
Automotive Division 6) 1,937 2,583 44,650 50,777 197 3.166 - -
of which: Passenger Cars 1,891 2,526 38.165 43,581 120 2,803 - -
of which: Commercial Vehicles) 46 57 5,564 6,305 121 420 - -
of which: Power Engineering - - 922 891 -44 -56 - -
Financial Services Division - - 10,404 9,236 707 701 - -
1)All figures shown are rounded, minor discrepancies may arise from addition of these amounts. 2) Porsche (Automotive and Financial Services): sales revenue € 6,016 (5,799) million, operating profit € 572 (868) million. 3) Scania (Automotive and Financial Services): sales revenue € 3,098 (3,458)
million, operating profit € 282 (402) million. 4) The sales revenue and operating profits of the joint venture companies in China are not included in the figures for the Group. These Chinese companies are accounted for using the equity method and recorded a proportionate operating profit of
€ 276 (1,074) million. 5) In operating profit mainly intragroup items recognized in profit or loss, in particular from the elimination of intercompany profits; the figure includes depreciation and amortization of identifiable assets as part of purchase price allocation for Scania, Porsche Holding
Salzburg, MAN and Porsche. 6) Including allocation of consolidation adjustments between the Automotive and Financial Services divisions. 8Automotive Division – Net Cash Flow1)
(January to March 2020)
[€ billion]
0
-1.5
-2.5
0.5
-2
0.5
-4
2019 2.0 0.2 0.3 2.5
Net Cash flow Diesel outflow Aquisition and Net Cash flow
including Diesel disposal of equity underlying business
payments and M&A investments
1) Including allocation of consolidation adjustments between Automotive and Financial Services divisions.
9Automotive Division – Net Cash Flow Development1)2)
(January to March 2020)
[€ billion]
2
1
1.5
-2.1
0
-1 -2.0
-1.6 -2.5
-2 0.1
-0.5
-3
2019 5.4 -2.0 -1.1 0.0 2.3 -0.3 2.0
Cash flow from Capex Capitalized Other Net cash flow before Acquisition Net Cash flow
operating activities development equity and disposal
costs investments of equity
investments
1) All figures shown are rounded, minor discrepancies may arise from addition of these amounts. 2) Including allocation of consolidation adjustments between Automotive and Financial Services divisions.
10Automotive Division – Analysis of Net Liquidity1)
(January to March 2020)
[€ billion]
25
-0.5 -0.5 0.0
20 -1.5 -0.1 -0.7 -0.1
15
Net Cash flow (€ -2.5 bn)
10 21.3
17.8
5
0
31.12.2019 Diesel Outflow M&A China Dividend Operating IFRS 16 Fair Value Other 31.03.2020
Business Valuation ²)
1) All figures shown are rounded, minor discrepancies may arise from addition of these amounts. 2) Valuation at Fair Value of securities and financial liabilities.
11Volkswagen Group – Outlook for 2020
+1.3%
Deliveries to 10.8 11.0
customers significantly below prior year
(‘000 vehicles)
2018 2019 2020
+7.1%
Sales revenue 235.8 252.6
(€ billion) significantly below prior year
2018 2019 2020
Operating result severely below prior year
Operating 1)
7.3 7.6
1)
return on sales However, positive
(%)
2018 2019 2020
1) before Special Items.
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