Professional Documents
Culture Documents
Frank Witter
Chief Financial Officer
Barclays and Exane BNP Paribas Motor Show Conference 2017,
Geneva, 7 March 2017
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. The Volkswagen Group currently
faces additional risks and uncertainty related to pending claims and investigations of Volkswagen Group members 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.
Consequently, a negative impact relating to ongoing claims or investigations, 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 Such statements are valid on the date of publication and can be superseded.
This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities.
2
TOGETHER – Strategy 2025 Financials Outlook 2017 Diesel Status Volkswagen going forward
In `000 units
12,000 +3.4%
8,000
6,000
+0.6% +1.9% +3.8% +7.2%
4,000
2,340 2,353 2,390 2,435 2,251 2,337 2,341 2,510
2,000
1) Figures excl. Volkswagen Commercial Vehicles, Scania and MAN Commercial Vehicles.
11
TOGETHER – Strategy 2025 Financials Outlook 2017 Diesel Status Volkswagen going forward
-1.1%
-4.7% -14.0%
1) Figures excl. Volkswagen Commercial Vehicles, Scania and MAN Commercial Vehicles.
12
TOGETHER – Strategy 2025 Financials Outlook 2017 Diesel Status Volkswagen going forward
+2.7%
8,000
5,823 5,980
6,000
4,000 +3.6%
+6.7%
1,803 1,868 +2.2%
2,000 +5.6% +10.9% -0.2%
1,056 1,126 +6.2%
400 409 225 238 431 478
102 102 77 81
Volkswagen 2)
Group
1) Incl. all brands of Volkswagen Group (Passenger Cars and Commercial Vehicles); +3.4% excl. Volkswagen Commercial Vehicles, Scania and MAN.
13
2) MAN Commercial Vehicles incl. MAN Latin America Trucks and Busses GVW > 5t
TOGETHER – Strategy 2025 Financials Outlook 2017 Diesel Status Volkswagen going forward
400
-13.5% +2.4%
+16.5%
143 124 +0.5% +12.1% -5.1%
92 94 +3.3%
28 32 20 20 31 35 7 6 5 6
0
Volkswagen 2)
Group
1) Incl. all brands of Volkswagen Group (Passenger Cars and Commercial Vehicles); -4.7% excl. Volkswagen Commercial Vehicles, Scania and MAN.
14
2) MAN Commercial Vehicles incl. MAN Latin America Trucks and Busses GVW > 5t
TOGETHER – Strategy 2025 Financials Outlook 2017 Diesel Status Volkswagen going forward
8,000
+3.0% +9.7%
6,000
4,319
3,935
4,000 3,431 3,533
Volkswagen Western Central & North America South America Asia Pacific Rest of World
Group Europe Eastern Europe
1) Incl. all brands of Volkswagen Group (Passenger Cars and Commercial Vehicles); +3.4% excl. Volkswagen Commercial Vehicles, Scania and MAN. 15
TOGETHER – Strategy 2025 Financials Outlook 2017 Diesel Status Volkswagen going forward
600 -13.9%
427
+5.8% 368
400
249 263
+13.6% +9.0% +8.6% -12.7%
200
44 50 61 67
36 40 30 27
0
Volkswagen Western Central & North America South America Asia Pacific Rest of World
Group Europe Eastern Europe
1) Incl. all brands of Volkswagen Group (Passenger Cars and Commercial Vehicles); -4.7% excl. Volkswagen Commercial Vehicles, Scania and MAN. 16
TOGETHER – Strategy 2025 Financials Outlook 2017 Diesel Status Volkswagen going forward
20.8 21 21.2 14 14
13.2
6.0% 3.4%
3.3%
0.17
-1.3 -1.4
-4.12)
2015 2016 2015 2016 2015 2016 2015 2016 2015 2016
1) Before Special items 3) Dividend proposal to Annual General x.x% Operating profit / profit before tax in %
2) After Special items Meeting on 10 May 2017 for preferred shares of sales revenue 18
TOGETHER – Strategy 2025 Financials Outlook 2017 Diesel Status Volkswagen going forward
1) All figures shown are rounded, so minor discrepancies may arise from addition of these amounts. Including allocation of consolidation adjustments between the Automotive and Financial Services divisions.
2) Volume data including the unconsolidated Chinese joint ventures. 19
TOGETHER – Strategy 2025 Financials Outlook 2017 Diesel Status Volkswagen going forward
20 30 27.2
24.5
15 25
-12.8
10 20.3 20 17.7
16.9
5 -3.1 15
4.3
10
-12.7
20153) 23.8 -2.2 8.9
(6.9%4)) 5
Cash flow Capex Other Net
from operation investing cash flow 0
activities cash flow 2013 2014 2015 2016
1) All figures shown are rounded, minor discrepancies may arise from addition of these amounts.
2) Including allocation of consolidation adjustments between Automotive and Services divisions.
3) prior- year figures adjusted 4) Capital expenditure for property, plant and equipment in% of Automotive sales revenue. 20
TOGETHER – Strategy 2025 Financials Outlook 2017 Diesel Status Volkswagen going forward
+ 1.9%
217.3
Sales revenue
(€ billion)
213.3 Sales revenue
Up to 4% above prior year level
21
TOGETHER – Strategy 2025 Financials Outlook 2017 Diesel Status Volkswagen going forward
22
US Diesel-related settlements (status 16 February 2017)
Issue 2.0L TDI 3.0L TDI Criminal & civil-related claims VW-Branded Franchise Dealers
Scope • ~475,000 vehicles • ~78,000 vehicles • 2.0L + 3.0L TDI • 2.0L, 3.0L and other matters asserted
concerning the value of the franchise
With • US Federal & State Regulators • US Federal & State Regulators (DOJ, EPA, • DOJ (incl. on behalf of EPA), Customs & • 644 VW-Branded Franchise Dealers
(DOJ, EPA, CARB, FTC) CARB, FTC) Border Protection
whom? • Private Plaintiffs represented through • Private Plaintiffs represented through
Plaintiffs’ Steering Committee (PSC) Plaintiffs’ Steering Committee (PSC)
Claims • As of February 12, 2017, 306,663 • As of February 1, 2017 all proposed • Finalized; plea agreement and consent • As of February 14, 2017, 91% of class
customers have been issued offers and agreements submitted but pending U.S. decree both require U.S. federal court members submitted individual
status 249,172 offers have been accepted. federal court approval approval releases to receive initial payment, and
• More than 25% of the 475,000 affected Volkswagen has already paid out half
2.0L vehicles have already been either of the settlement proceeds.
modified or taken off the road.
Approval • Per October 2016 max funding pool of • Pay up to ~ $1.2 billion total benefits in • Combined fines & penalties $4.3bn: • Final Approval granted on
~$10bn eligible for: settlement program to: o Plea agreement incl. guilty plea January 23, 2017
status o Buyback/Lease terminations or o Recall and repair ~58,000 vehicles o Criminal fine of $2.8bn o $1,193 billion cash component,
o Emissions modifications (~70k to originally certified emissions o Independent monitor as well as additional non-cash
vehicles approved per Jan 2017) standards; or offer buyback, o Federal environmental and benefits
o + Cash payments for affected trade-in, lease termination or customs-related civil
customers emissions modifications for claims $1.45bn
• Pay $2.7bn over 3 years to environmental ~20,000 older vehicles o DOJ civil FIRREA penalty $50m
trust o + cash payments for all eligible
• Invest $2bn over 10 years in zero class members
emission infrastructure • Pay $225m into environmental trust,
• Resolution with 44 states, the District of $25m to CARB to support ZEV in CA
Columbia and Puerto Rico (~$603m incl. • Final approval hearing to be held on May
3.0L) 11, 2017
23
TOGETHER – Strategy 2025 Financials Outlook 2017 Diesel Status Volkswagen going forward
Product portfolio is lagging behind international trends and requirements of local customers
High level of vertical integration / need for investment in fields without differentiation from competitors
26
Volkswagen Brand
Volkswagen going forward Group Volkswagen Truck & Bus Regions / FS Trends
Strategy 2025+
27
Volkswagen Brand
Volkswagen going forward Group Volkswagen Truck & Bus Regions / FS Trends
Strategy 2025+
>€700 million
lower initial investment
32
Volkswagen Brand
Volkswagen going forward Group Volkswagen Truck & Bus Regions / FS Trends
Strategy 2025+
MQB
Currently
Incl. global MQB
13 PQx
Conventional toolkit Using MQB for second product life cycle minimises the expenditure necessary for the transformation
(MQB) (no further changes to platform basis necessary)
Old platforms Avoiding expenses for maintaining and upgrading vehicles by discontinuing eleven of the PQ platforms
(PQx)
33
Volkswagen Brand
Volkswagen going forward Group Volkswagen Truck & Bus Regions / FS Trends
Strategy 2025+
34
Volkswagen Brand
Volkswagen going forward Group Volkswagen Truck & Bus Regions / FS Trends
Strategy 2025+
• Market-oriented pricing
Jetta Passat
35
Volkswagen Brand
Volkswagen going forward Group Volkswagen Truck & Bus Regions / FS Trends
Strategy 2025+
36
Volkswagen Brand
Volkswagen going forward Group Volkswagen Truck & Bus Regions / FS Trends
Strategy 2025+
Head NAR
F V E B P S GS
G2 – Compact G4 – e-Mobility
Head CHN
GS, G1-
F V E 3 G4 Project EBO*
New organisation model implemented in all product lines New organisation model implemented for the regions
Enthusiastic Secure
We are putting the future customers earnings power
into series production –
as the global leader
Volkswagen for e-mobility.
–
We drive our customers
TRANSFORM
Moving and society forwards –
People
Forward
with passion and innovation. 2025+
We use our strengths– A strong
to shape the transformation team that gets Sustainable
together. things moving mobility
38
Volkswagen Brand
Volkswagen going forward Group Volkswagen Truck & Bus Regions / FS Trends
Strategy 2025+
39
Volkswagen Brand
Volkswagen going forward Group Volkswagen Truck & Bus Regions / FS Trends
Strategy 2025+
After sales and new After sales increasingly important as alternative source of revenues
business
New business models (e.g. enhanced telematics) can stabilize revenues
opportunities
40
Volkswagen Brand
Volkswagen going forward Group Volkswagen Truck & Bus Regions / FS Trends
Strategy 2025+
41
Volkswagen Brand
Volkswagen going forward Group Volkswagen Truck & Bus Regions / FS Trends
Strategy 2025+
Deep roots and strong market position combined with further growth
potential continues robust performance in China
Deliveries to customers – strong Jan-Dec 2016 Strong operational & financial track record
(thousand units)
2015 2016 +12.2% (in € bn)
5.2 5.2 Proportionate
3,982 4.3 4.5 Operating Profit
3,548 3.7 3.6 3.6
2.8 3.0
2.6
1.9 2.0 Dividends paid to
1.2 Volkswagen Group
898 956 845 907 835 992 971 1,128 0.8
Implementation of locally produced NEVs 10 additional SUVs within the next 3-4 years
Phase 1
Phase 2
Phase 3
A6 L e-tron Phideon
PHEV
Pure Electric
further Plug- Vehicles based on Electric toolkit
in Hybrids current toolkits (MEB)
42
Volkswagen Brand
Volkswagen going forward Group Volkswagen Truck & Bus Regions / FS Trends
Strategy 2025+
in ‘000 contracts
7,064
6,322
4,549 Total
3,796 portfolio
3,281 2,692
2,246 2,691 2,274 2,518
1,964 2,148 1,808 1,983 15,818
1,508 1,524 1,623
1,505
4,551 4,946 5,560 5,833 6,062
3,163 3,567 3,712 3,930
1) Excluding Financial Services activities of Scania, Porsche AG and Porsche Holding Salzburg; including MAN Financial Services 43
Volkswagen Brand
Volkswagen going forward Group Volkswagen Truck & Bus Regions / FS Trends
Strategy 2025+
Shorter
270 EU US-LDV China
Grams CO2 per kilometer, normalized to NEDC
(PC+LDT)
Digitalization
250 lifecycles
230
US baseline: 219
210
130 US 2025:107
EU baseline: 142 Automated Shift in
110 driving priorities
EU 2020: 95
90
2000 2005 2010 2015 2020 2025
44
Volkswagen Brand
Volkswagen going forward Group Volkswagen Truck & Bus Regions / FS Trends
Strategy 2025+
Up to 500 km
* basis: eGolf with comparable battery volume 800 Wh/l
improved anode
and cathode
Up to 420 km
700 Wh/l
Up to 380 km
Up to 300 km 650 Wh/l
Up to 190 km 410 Wh/l
230 Wh/l
New battery
Lithium ion technology technologies
2014 2017 2018 2020 2025
1) Energy density reflects volume in liters (Wh/l)
45
Volkswagen Brand
Volkswagen going forward Group Volkswagen Truck & Bus Regions / FS Trends
Strategy 2025+
300
MQB
200
MEB Target:
battery cell < 100€ / kWh
100
2013 2020
46
Volkswagen Brand
Volkswagen going forward Group Volkswagen Truck & Bus Regions / FS Trends
Strategy 2025+
Pouch
e.g. NMC
Lithium (Lithium Nickel Manganese
Cobalt Oxide)
Nickel Prizmatic
Manganese
1.1.1
Cobalt
6.2.2
Graphite Round
8.1.1
…
CCS Standard
48
Volkswagen Brand
Volkswagen going forward Group Volkswagen Truck & Bus Regions / FS Trends
Strategy 2025+
49
Volkswagen Brand
Volkswagen going forward Group Volkswagen Truck & Bus Regions / FS Trends
Strategy 2025+
51
Volkswagen Brand
Volkswagen going forward Group Volkswagen Truck & Bus Regions / FS Trends
Strategy 2025+
52
“Together, we will create
a new Volkswagen
PLACEHOLDER FOR PICTURE
and play a key role in designing
the mobility world
of tomorrow” M. Müller, CEO, June 16th 2016
53
Events 2017
14. March 2017 Annual Media Conference, Investor and Analyst Conference 2017
3. May 2017 Interim Report January - March 2017, Investor and Analyst Conference Call
27. July 2017 Half-Yearly Financial Report 2017, Investor and Analyst Conference Call
27. October 2017 Interim Report January - September 2017, Investor and Analyst Conference Call
54
Investor Relations Team
55
Volkswagen Group
Appendix
56
TOGETHER – Strategy 2025 Financials Outlook 2017 Diesel Status Volkswagen going forward
2.0 3.3
0.0
Jan – Sept Special Jan – Sept Volume/ Exchange Product Fixed Commercial Power Financial Jan – Sept Special Jan – Sept
2015 Items 2015 Mix/ Prices rates costs costs Vehicles Engineering Services 2016 Items 2016
after before Division before after
Special Items Special Items Passenger Cars Special Items Special Items
1) All figures shown are rounded, minor discrepancies may arise from addition of these amounts.
57
TOGETHER – Strategy 2025 Financials Outlook 2017 Diesel Status Volkswagen going forward
Aaa AAA
Aa1 AA+
Aa2 AA
Aa3 AA-
Investment
A1
A2 VW FS AG (N) A
A3 Volkswagen AG (N) A- Volkswagen Bank GmbH (N)
Ba1 BB+
Subinvestment
Ba2 BB
Ba3 BB-
grade
B1 B+
B2 B
--- B-- - -
Outlook -> (P)ositive, (S)table, (N)egative, RfD = Ratings under review for Downgrade, RfU = Ratings under review for Upgrade
59
Modular toolkits – Brand responsibilities
60
We have defined central fields of action for each phase
Major
Leap to the top of transformation
electric mobility 3
Radical restructuring
2
1
• Assert a global brand position – Top of • First choice for the aspiring • Leading digital ecosystem in the mobility
Volume middle class sector
• SUV as launch pad for emotionalization • Leader in transformation of the car industry • Business model for
and earnings power • Secure earnings from classic product • Autonomous driving
• Basis for market leadership in electric portfolio • Profitable coverage of new fields of mobility
mobility • First manufacturer with 1 million electric • Emission-free driving
• Create basis for market leadership in vehicles • Global and tailored vehicle portfolio
connectivity • Cost leadership in electric mobility
• Europe/China: secure market leadership • Leading digital ecosystem in the automotive
• Turnaround NAR sector
• Successful in economy regions/markets • Establish basis for autonomous mobility and
(SAM, RUS, IND) future business models
• Direct customer relationship, new sales • Profitable in NAR
and distribution concept • Growth and profitability in economy
• Implement „Future Pact“ segment
• Redirect resources • Operational excellence throughout the
• Decentralize organisation and make it entire value chain
more agile
• Concentrate on value creation in all 2020 2030
2015 business areas 2025 Global leader
Leading and profitable
Diesel crisis • New corporate culture, anchor
Global leader in e-mobility in auto-mobility
entrepreneurial thinking volume manufacturer
2% RoS* 4% RoS** 6% RoS** >6% RoS**
*) before special items **) Operating return based on adjusted sales revenue (without turnover from multi brand sales companies) 61
The SUV offensive has a global impact: Investment channeled into
high earnings and high growth segments
62
Volkswagen brand is planning an industry-leading ecosystem
Apps/ Services
63
Volkswagen Atlas
64
Volkswagen I.D
65
Audi Q5
66
Porsche 718 Boxster
67
ŠKODA KODIAQ
68
SEAT Ateca
69
Bentley Bentayga
70
Lamborghini Centenario
71
Bugatti Chiron
72
Volkswagen Crafter
73
MAN TGX
74
Scania R500 4x2
75
Volkswagen Group
Frank Witter
Chief Financial Officer
Barclays and Exane BNP Paribas Motor Show Conference 2017,
Geneva, 7 March 2017