Volkswagen - CP-Dealer-Meeting 25th August 2010

Transcription

1 Volkswagen - CP-Dealer-Meeting 25th August 2010

2 Agenda a.m p.m. Presentations p.m p.m. Q & A Session p.m p.m. Buffet Lunch 2.00 p.m p.m. Guided Tour Autostadt 2

3 Speakers Albrecht Möhle - Head of Global Markets & Group Funding Volkswagen AG Kai Otto - Head of Capital Markets & Asset Management Volkswagen AG Bernd Bode - Head of Treasury Volkswagen Financial Services AG Olivier Brissaud - Managing Director Volkswagen Group Services SA 3

4 Volkswagen Group Management: Common Vision, Central Coordination, Local Excellence Common vision and goals Customer focus Strategy 2018 targets Top employer >10 million units sold p.a. VW Group PBT margin >8% 1 Autonomous brand management and market approach Central management functions build foundation and provide scale benefits Production & toolkits Global purchasing & local sourcing Model cycle plan Marketing Product development Financial Services Note: All stated Volkswagen Group figures represent financial targets for % stake since 7 December

5 Volkswagen Group Is Already a Strong Multi Brand Car Producer Today Global Top 5 OEMs globally Market share Unit sales 2009 (million) 11.6% 7.2 Toyota 6.3 Volkswagen Group Top 5 OEMs in Europe 10.1% 9.9% 7.8% 7.7% GM Hyundai Ford Volkswagen Group market share development globally 11% 2nd 10% 4th 9% 8% 7% Europe Volkswagen Group market share development in Europe Market share Unit sales 2009 (million) 18.6% 3.3 Volkswagen Group 12.6% 9.9% 9.1% 8.8% PSA Ford Renault GM 20% 19% 18% 17% 16% 15% Source: Volkswagen Group for Volkswagen Group data; Global Insight for data relating to all other companies and for market figures used to calculate market shares (2009 Global Insight figures represent estimates) Note: Market and company numbers represent Cars and LCVs ; Europe excludes Turkey and includes Cyprus and Malta; Volkswagen Group numbers represent deliveries excluding buses / trucks and Scania 1st 1st 5

6 Highlights January June 2010 Performance significantly better in H compared to prior year Operating Profit more than doubles versus weak prior year period Early entry to emerging markets paying off Excellent brand mix captures premium opportunity and volume sector demand Automotive net liquidity improves further 6

7 Outlook 2010 Volkswagen Group Deliveries to customers Million vehicles Large number of new models in the second half of deliveries to customers expected to be significantly higher than in 09 Sales revenue billions Sales revenue 2010 expected to exceed prior year significantly Operating profit billions Exchange rate effects will have a positive effect on earnings Disciplined cost management Operating profit in 2010 expected to exceed prior-year significantly Before special items 7

8 Speaker Albrecht Möhle - Head of Global Markets & Group Funding Volkswagen AG Kai Otto - Head of Capital Markets & Asset Management Volkswagen AG Bernd Bode - Head of Treasury Volkswagen Financial Services AG Olivier Brissaud - Managing Director Volkswagen Group Services SA 8

9 We Are Well Positioned to Reach Our Strategic Goal of Achieving Sustainable Profitable Growth Medium-term Group targets Group no. of units sold 8.0 million (incl. Scania) Medium-term China targets China no. of units sold 2.0 million Automotive EBIT margin 5%+ Automotive capex/sales c.6% Automotive EBIT margin 6%+ Financial Services pre-tax RoE 15% 1 China RoI 20%+ Financial Services cost-income ratio c.55% Credit rating Maintain A Investments 6.0 billion 2 Note: Porsche AG not reflected ¹ Normalized RoE based on 8% equity ratio 2 Represents total investment of Joint Ventures, new investments announced in April

10 Volkswagen is Financially Stable Supported by Significant Liquidity and Stable Rating Automotive net liquidity billions Development of OEMs' credit ratings during financial crisis 1 S&P ratings AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B+ B B- CCC+ CCC CCC- CC C Toyota (AA) Honda (A+) VW AG (A-) BMW (A-) Daimler (BBB+) Hyundai (BBB-) Peugeot (BB+) Fiat (BB+) Renault (BB) Ford (B-) Dec 08 Dec 09 Mar 10 Jun 10 1 Credit ratings based on Automotive Business as of August 1st, 2010 Source: Volkswagen Group Jan 08 May Sep Jan 09 May Sep Jan 10 May 10

11 Volkswagen - Short Term Rating Moody s Long Term Short Term S & P Long Term Short Term Investment Grade Aaa Aa1 Aa2 Aa3 A1 A2 A3 Baa1 Baa2 Baa3 Prime-1 Prime-2 Prime-3 AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- A-1+ A-1 A-2 A-3 as of August 1st,

12 Group Funding Strategy Highly successful track record in the Eurobond market Diversification of Funding Sources 1 Combining benchmark transactions with private issuances to optimize funding costs and maturity profile Making use of domestic issuance programs, Direct Banking Deposits 24% Commercial Paper 5% e.g. Japanese Samurai market Leading Auto issuer of Asset Backed Securities Global use of Commercial Paper markets Medium Term Notes 34% Significant volume of undrawn committed credit facilities High level of Direct Banking Deposits differentiates VW Bank Loans 18% from its peers ABS 19% VW has a strong focus to further diversify its funding into untapped Capital Markets 1 as of June 30, 2010 Source: Volkswagen Group Total: 79.1 billion 12

13 Funding Overview - Volkswagen Group June 30, 2010 in billions Money and Capital Market Programs Commercial Paper (100%) Medium Term Notes (100%) Other ABS (100%) Direct Banking Deposits Bank Borrowings Committed Lines thereof: Syndicated Line Volkswagen AG Uncommitted Lines Other (incl. Supranationals) Frame Utilization Total 79.1 Source: Volkswagen Group 13

14 Commercial Paper Programmes EUR 10.0 bn. Multi-Currency Commercial Paper Programme Volkswagen AG Volkswagen International Finance N.V. (guaranteed by VW AG) VW Credit, Inc. (guaranteed by VW AG) Volkswagen Financial Services AG Volkswagen Leasing GmbH (guaranteed by VW FS AG) Volkswagen Financial Services N.V. (guaranteed by VW FS AG) Volkswagen Financial Services (UK) Limited (guaranteed by VW FS AG) SkoFIN s.r.o. (guaranteed by VW FS AG) Volkswagen Finans Sverige AB (publ) Volkswagen Group Services SA EUR 2.5 bn. Multi-Currency Commercial Paper Programme Volkswagen Bank GmbH Euro 5.0 bn. Billets de Trésorerie Programme (CP Programme under French law) Volkswagen Group Services SA USD 4.0 bn. Commercial Paper Programme Volkswagen Group of America (guaranteed by VW AG) CAD 1.0 bn. Commercial Paper Programme VW Canada (guaranteed by VW AG) VW Credit Canada, Inc. (guaranteed by VW AG) MXN 15.0 bn. Dual Capital Market Programme Volkswagen Leasing S.A. de C.V. (guaranteed by VW FS AG) PLN 3.0 bn. Debt Issuance Programme Volkswagen Bank Polska S.A. (guaranteed by VW FS AG) Volkswagen Leasing Polska Sp. Z.o.o. (guaranteed by VW FS AG) AUD 1.0 bn. Debt Issuance Programme Volkswagen Financial Services Australia PTY Limited JPY 60.0 bn. Electronic Commercial Paper Programme Volkswagen Financial Services Japan Ltd. 14

15 Volkswagen Group Major Funding Vehicles / Guarantors Volkswagen AG EUR 20.0 bn. Debt Issuance Programme Volkswagen FS AG EUR 18.0 bn. Debt Issuance Programme Volkswagen Bank GmbH EUR 10.0 bn. Debt Issuance Programme EUR 10.0 bn. Multi-Currency Commercial Paper Programme Volkswagen AG Volkswagen International Finance N.V. (guaranteed by VW AG) VW Credit, Inc. (guaranteed by VW AG) Volkswagen Financial Services AG Volkswagen Leasing GmbH (guaranteed by VW FS AG) Volkswagen Financial Services N.V. (guaranteed by VW FS AG) Volkswagen Financial Services (UK) Limited (guaranteed by VW FS AG) SkoFIN s.r.o.(guaranteed by VW FS AG) Volkswagen Finans Sverige AB (publ) Volkswagen Group Services SA EUR 2.5 bn. Multi CCY CP-Programme Volkswagen Bank GmbH 15

16 Commercial Paper Funding Key Notes VW Group is a frequent issuer in CP and BT Markets (major focus EUR, SEK) Investor interest in all relevant currencies appreciated Benchmark: all in discounted EURO price after swap (Multi-Currency Programme) CP s backed by either Volkswagen AG / Volkswagen Financial Services AG guarantees or by stand-alone ratings KEY PRINCIPLE: ONE GROUP - ONE RISK - ONE PRICE 16

17 Volkswagen Group 10 bn CP Programme - Utilization mn , , , , ,62 822,31 571, Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 July 10 amounts weighted in EUR; Source: Volkswagen Group 17

18 Volkswagen Group 10 bn CP Programme by Issuer by maturity by currency 72,0 31,0 373,7 20,0 430,2 373,7 323,0 706,5 435,0 1141,5 639,0 Volkswagen Financial Services AG 1 month SEK EUR Volkswagen Leasing GmbH 2 months Volkswagen Finans Sverige AB (publ) 3 months 4 months 5 months 6 months as of July 31, 2010; amounts weighted in EUR; Source: Volkswagen Group 18

19 Spread development since January 2009 for Volkswagen International Finance N.V. in bps month 6-month April May June July 19 January 09 February March April May June July August September October November December January 10 February March

20 Reuters Page VOWG01 Volkswagen AG Front Office 20

21 Reuters Page VOWG01 Volkswagen Financial Services AG Front Office 21

22 Reuters Page VWCC01 Volkswagen Group Services SA - Billets de Trésorerie 22

23 Contacts Commercial Paper Contact Persons Volkswagen AG Guido Aldag Björn Bätge Group Line Frank Marchefka

24 Speaker Albrecht Möhle - Head of Global Markets & Group Funding Volkswagen AG Kai Otto - Head of Capital Markets & Asset Management Volkswagen AG Bernd Bode - Head of Treasury Volkswagen Financial Services AG Olivier Brissaud - Managing Director Volkswagen Group Services SA 24

25 Volkswagen Financial Services AG at a Glance (06/30/2010) Worldwide presence Company figures Total assets Equity Direct Bank deposits 63.7 bn. 6.8 bn bn. Employees 6,639 Receivables 51.4 bn. Receivables Volkswagen Financial Services AG is affiliated with companies in 38 countries through shareholdings and service agreements Leasing 13.7 bn. Wholesale 8.5 bn. Credit 29.2 bn. as of 06/30/

26 Integrating Automotive and Financial Services: Utilisation of the entire Potential along the Automotive Value Chain Improving Customer Loyalty and maximizing Profit Potential Automotive Mobility R&D Procurement Production Sales After Sales Total Mobility Financial Mobility Dealer Financing Credit / Leasing Insurance Services 26

27 Captive Financial Services Our unique vantage Financial Services at Volkswagen Group is a highly focused business model Competitive edge due to close exchange with the automotive brands Effective steering and management of risks lead to sound asset quality 27

28 Volkswagen Financial Services AG: Stable portfolio growth Existing Contracts ('000) + 0.5% 4,188 4, % 4, % 5, , % 5, , % + 0.3% 6,028 6, ,621 1,580 1,504 1,552 1,708 1,772 1,823 1,890 2,317 2,390 2,806 2, ,092 1,101 1, /2010 Leasing Financing Insurance Services 28

29 Refinancing Strategy The strategic vision for 2018 Deposits ABS 1 / 3 1 / 3 1 / 3 Capital Market Refinancing business requires strategy, speed, foresight and flexibility Diversification is the key factor 29

30 Refinancing Profile Deposits ABS total 1/3 1/ bn. others 3.8 bn. equity 6.8 bn. bonds issued 14.0 bn. 1/3 Capital market commercial paper 2.7 bn. customer deposits 18.8 bn. asset backed securitization 5.7 bn. liabilities to financial institutions 7.0 bn. liabilities to affiliated companies 4.9 bn. as of 06/30/2010 Increase of direct-bank deposits Step-by-step increase of ABS capabilities independent from Automotive business established programs, new markets & asset classes Independence from Automotive funding tap further Automotive liquidity in an opportunistic manner only Further diversification of investor base unsecured issues / secured transactions 30

31 Capital Markets within VW Financial Services worldwide VCI $ 5bn CP Program (in progress) 10bn CP Program (VW Group) 20bn Debt Issuance Program (VW Group) VCCI 20bn Debt Issuance Program (VW Group) CAD CP and Debt Issuance Program VW FS Group 10bn CP Program 18bn Debt Issuance Program VW Bank 2.5bn CP Program 10bn Debt Issuance Program VW Bank Polska VW Leasing Polska PLN 3bn Debt Instrument Issuance Program VW FS Japan JPY 60bn ECP Program VW Leasing MXN 15bn Dual Program VW Bank MXN 10bn Dual Program (in progress) VDF Turkey Feasibility study VW FS India Feasibility study VW Finance (China) Feasibility study Banco VW Brazil Feasibility study VW FS Australia AUD 2bn Debt Issuance Program 31

32 Contacts Commercial Paper Contact Persons Volkswagen Financial Services AG Harald Kobbe Group Line Anja Knox Marko Müller Philipp Sandmann Hans Drössler Interim Report of Volkswagen Financial Services AG: 32

33 Speaker Albrecht Möhle - Head of Global Markets & Group Funding Volkswagen AG Kai Otto - Head of Capital Markets & Asset Management Volkswagen AG Bernd Bode - Head of Treasury Volkswagen Financial Services AG Olivier Brissaud - Managing Director Volkswagen Group Services SA 33

34 Fields of Business Factoring Services for the Volkswagen Group Intercompany Financing In House Bank 34

35 Volkswagen Group Services SA Recognition Statutory Seat Corporate Form Own Funds until as coordination center Brussels société anonyme (limited liability) EUR 5.8 bn. Shareholders Volkswagen AG: 99.99% Volkswagen International Finance: 1 share Board of Directors Executive Committee Dr. J. Boche President Mr. W. Hotze Director Mr O. Brissaud Managing Director Mr D. Paredis Managing Director Mr O. Brissaud Managing Director Mr D. Paredis Managing Director Mr V. Delva Head of Tax & Legal Mr F. Evers Head of Inhouse Bank 35

36 Factoring Financial Markets Copy of the invoice to VGS (per teleprocessing) June 30th Audi 3 Reimbursement (EUR) on August 30th Payment value 2 July (spot date) of the invoice amount in EUR 7 Invoice of costs of factoring (fees& funding costs) 1 Invoice to importer in EUR (June 30th) Payment term 60 days Bank borrowing in EUR June 30th / Value July 2nd Maturity August 30th No currency - or interest risk Payment of the invoice (EUR) on August 30th (60 days later) 5 Groupe Volkswagen France S.A. Importer 36

37 Summary of Factoring Processes in 2009 Group Customers (Factories & Brands) 14 Daily information flow Invoices 24,000 Volume 43,000,000,000 Daily average turnover 173,000,000 VGS Treasury Treasury Control Accounting Reporting Importers and Group Companies 57 Payments 38,000 Banks 40 Currencies 14 Banks Volume 6M bn. 37

38 Intercompany Financing Own funds VGS 5.8 bn. EUR & Group Deposits Financial Markets Loan 38

39 In House Bank One of three in-house banks (Wolfsburg, Brussels, Chattanooga (USA) ) (SAP IHC) Centralized external payments Internal payments Cash pooling IHB1 Germany, IHB2 Europe (VGS), IHB3 North America Connected companies maintain only operational collection accounts with external banks (incoming cash flow) In house bank has treasury accounts for cash pooling and external payments Cash pooling used to centrally bundle entire liquidity of connected subsidiaries 39

40 Source and Use of Funds Source of Funds as of Use of Funds as of % 662 6% % % % % 9 0% Commercial Paper Group Companies Banks Own Funds Other Liabilities Group Financing Bank Deposits Other Factoring 39 0% % Total: (mln ) Total: (mln ) 40

41 Disclaimer This presentation contains 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 rinminbi 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. 41

42 Volkswagen - CP-Dealer-Meeting 25th August 2010