Volkswagen On the Road of Success Hans Dieter Pötsch

Transcription

1 Volkswagen On the Road of Success Hans Dieter Pötsch Member of the Board of Management, Volkswagen AG Geneva, March 2011

2 Disclaimer United States Legend These materials do not constitute an offer of securities for sale or a solicitation of an offer to purchase securities in the United States, Germany or any other jurisdiction. The shares (the Shares ) of Porsche Automobil Holding SE (the Company ) may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. The Company does not intend to register any portion of the offering in the United States or to conduct a public offering of Shares in the Company in the United States. Diese Mitteilung stellt weder ein Angebot zum Kauf von Wertpapieren noch die Aufforderung zur Abgabe eines Angebots zum Kauf von Wertpapieren in den Vereinigten Staaten von Amerika, Deutschland oder sonstigen Staaten dar. Die Aktien (die Aktien ) der Porsche Automobil Holding SE (die Gesellschaft ) dürfen in den Vereinigten Staaten von Amerika nur nach vorheriger Registrierung oder ohne vorherige Registrierung nur aufgrund einer Ausnahmeregelung von dem Registrierungserfordernis nach den Vorschriften des U.S. Securities Act von 1933 in der derzeit gültigen Fassung verkauft oder zum Kauf angeboten werden. Die Gesellschaft beabsichtigt nicht, das Angebot von Aktien vollständig oder teilweise in den Vereinigten Staaten zu registrieren oder ein öffentliches Aktienangebot in den Vereinigten Staaten durchzuführen. German Legends Diese Veröffentlichung stellt weder ein Angebot zum Verkauf noch eine Aufforderung zum Kauf irgendwelcher Wertpapiere dar. Ein etwaiges künftiges Angebot im Hinblick auf Aktien der Porsche Automobil Holding SE würde ausschließlich durch und auf Basis eines zu veröffentlichenden Prospektes erfolgen. Dieser Prospekt würde bei der Porsche Automobil Holding SE, Porscheplatz 1, Stuttgart, sowie auf der Webseite der Porsche Automobil Holding SE unter kostenfrei erhältlich sein. This publication constitutes neither an offer to sell nor a solicitation to buy securities. A possible offer with regard to securities of Porsche Automobil Holding SE would be made solely by means of, and on the basis of, a securities prospectus to be published. Such securities prospectus would be available free of charge from Porsche Automobil Holding SE, Porscheplatz 1, Stuttgart, as well as on the Porsche Automobil Holding SE website under 2

3 Volkswagen Group: Global Automotive Leader by 2018 Strategy 2018 Economic and environmental leadership in the global automotive industry Economic leadership Environmental leadership Expansion of brand and product portfolio Increasing global footprint and emerging markets presence Realisation of cost savings, toolkit modularisation and localisation of production Creation of sustainable value Diversified portfolio of drivetrain technologies Continuous improvements in internal combustion engines Leadership in alternative powertrain technologies High quality standards Brand implementation 1 ¹ 49.9% stake since 7 December

4 Volkswagen Group Strategy 2018: Substantial Growth and Sustainable Profitability 1 Growth market focus 6 Potential upside Product portfolio extension North American expansion and market recovery Commercial vehicle strategy and market recovery Financial Services: strengthen the automotive value chain 5 Synergy potential Leveraging best practices across the Group Purchasing, production, and distribution benefits Increased market penetration Emerging markets expansion Balanced global footprint Top employer Leading in customer satisfaction and quality Volumes > 10 million units p.a. 2 Volkswagen Group profit before tax margin > 8% 4 Operating profit measures Strong cost control Process/product optimization Regional scale effects 2 Modular toolkit strategy Reduction in investment, development and unit costs Scale and efficiency effects Increased production flexibility Reduced time to market 3 Capital discipline > 16% RoI target in automotive business 20% RoE 1 goal in Financial Services Around 6% automotive capex in PPE/sales 1 Pretax 2 Including China Source: Volkswagen Group Note: All stated Volkswagen Group figures represent financial targets for

5 Volkswagen Group Headline Figures January December 2010 thousand vehicles/ million /- (%) Deliveries to customers units 3,266 7,203 6,336 3,086 Vehicle sales units 7,278 6, Production units 7,358 6, Earnings per ordinary share (basic) 56, , x Earnings per preferred share (basic) , x Dividend per ordinary share x Dividend per preferred share x Automotive division 2 Cash flows from operating activities 3 million 13,930 5,112 12, Cash flows from investing activities 3,4 million 2,822 9,095 10, Of which investments in property, plant & equipment million 5,656 5, Net cash flow million 2,290 4,835 2,563 5, Net liquidity million 15,103 18,639 10,636 11, Volume data including the vehicle production investments Shanghai-Volkswagen Automotive Company Ltd. and FAW-Volkswagen Automotive Company Ltd. These companies are accounted for using the equity method. All figures shown are rounded, so minor discrepancies may arise from addition of these amounts deliveries updated on the basis of statistical extrapolations. 2 Including allocation of consolidation adjustments between the Automotive and Financial Services divisions adjusted. 4 Excluding acquisition and sale of investees: 7,034 million ( 7,585 million). 5

6 Financial Overview January December 2010 vs Sales Revenues Operating Profit Profit before tax Profit after tax in million in million in million in million 126,875 8, ,187 7,141 7,226 1,855 1,

7 Dividend development Preferred shares in Ordinary shares in

8 1 Substantial Growth Opportunities Market growth (Million units) Total +40% % +40% North America +54% Western Europe % Eastern Europe (incl. Russia) +101% India +59% China (incl. HK) % % Japan 14.3 South America Rest of world Includes Central America and Caribbean 2 Includes Turkey Source: IHS Global Insight (data status: 07/02/11), rounded Note: Market = Cars and LCVs 8

9 1 China: Volkswagen with Leading Market Position, Highly Profitable and Cash Generative 1 Market development in China Million units Volkswagen Group position in China % CAGR No. 1 automotive company Investment plan : 10.6 billion funded through local liquidity and cash flows Typical local content: ~ 80-98% Consolidated at equity 2009: 774 million (2008: 395 million) China is Volkswagen Group's No. 1 country market since incl. Hong Kong 2 Based on volume Source: IHS Global Insight (data status: 07/02/11), rounded Note: Market = Cars and LCVs 9

10 1 Brazil: Set to Benefit From Global Recovery Combined Growth and Profitability Market development in Brazil Million units Volkswagen Group position in Brazil No. 2 in cars and LCV % CAGR Other South America Market share 22% (2010) Total capacity ~ 920,000 units Investment plan : 2.3 billion Typical local content: ~ 90% Brazil k units p.a. Source: IHS Global Insight (data status: 07/02/11), rounded Note: Market = Cars and LCVs 10

11 1 Russia/India: Volkswagen Strengthening Position by Investing in Local Capacities/Markets Russia Market development, Million units India Market development, Million units % CAGR % CAGR Volkswagen Kaluga Plant Investment: 970 million Capacity: 150,000 units p.a. Typical local content: ~ 34% Volkswagen Pune Plant Investment: 700 million Capacity: 110,000 units p.a. Typical local content: ~ 75% 1 1 By 2012 Source: IHS Global Insight (data status: 07/02/11), rounded Note: Market = Cars and LCVs 11

12 1 ASEAN: Volkswagen with an Excellent Basis, Rapid Growth Perspectives Market development in the ASEAN-Region Million units Volkswagen Group position in the ASEAN-Region Malaysia Local sales company founded % CAGR 3.5 Memorandum of understanding with DRB-Hicom. Goal is production of VW models from Other Thailand Malaysia Indonesia Production since June 2009 with local partner. Indomobil for Volkswagen brand. Other Group brands to follow Indonesia Source: IHS Global Insight (data status: 07/02/11), rounded Note: Market = Cars and LCVs 12

13 2 Significant Competitive Advantages From Modular Toolkit Strategy Technical concept Financial Elements Previously Introduction of modular strategy Introduction of modular toolkit strategy Reduction targets from MQB 1,2 Unit costs ~ 20% Body Platform Module Module D C B A A0 A00 Synergies D C B A A0 A00 Synergies E D C B A A0 A00 Synergies One-off expenditure ~ 20% Body Vehicle-specific Vehicle-specific Modules Platform Platform Modularisation enables standardisation with visible customisation 100% vehicle Engineered hours per vehicle Significant weight and emission reduction ~ 30% 1 MQB: Modularer Querbaukasten 2 Reduction targets illustrate benefits from MQB implementation Source: Volkswagen Group 13

14 2 With One of the Broadest Product and Segment Coverages of any OEM, Volkswagen is Well Positioned to Capture Profitable Growth World 2011 Hatchback Saloon Estate MPV SUV Coupé Convertible Roadster City Van Pick-Up E D C 1 B 1 1 A A0 A % stake since 7 December 2009 Source: Volkswagen Group Product to be launched in

15 2 Local Sourcing of Key Components Examples for local parts Europe India Polo twist beam rear axle Polo steering system Electronic hydraulic power system Electric power system Cost savings: 15-25% Source: Volkswagen Group 15

16 3 Volkswagen is Financially Stable Supported by Strong Capital Discipline and Significant Liquidity Cost and Capital Discipline Investments in property, plant and equipment Automotive Division Automotive net liquidity billion / in % of sales revenue 6.8 billion % 6.2% % 4.6% Source: Volkswagen Group 16

17 4 Volkswagen Way: Lower Product Investment and Higher Productivity Sharan New Sharan Reduction by 20% Source: Volkswagen Group Lower Product Investment via Process standardisation Re-Tooling 3P-Workshop s Flex-line production: Sharan together with Scirocco, Eos VW Purchasing Process 17

18 4 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 10.6 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 November

19 5 Volkswagen with Excellent Position in Fuel Efficiency 220 Models 130g CO 2 /km Number of Models g CO2/km 120g CO2/km 130g CO2/km Source: Volkswagen Group (status: March 2011) 19

20 5 Volkswagen Group on Track for E-Mobility Hybrid 2014 Touareg Audi A8 Golf Audi Q5 Jetta E-car 2014 From 2011: e-testfleet in Europe, NAR, China Up! blue-e-motion Golf blue-e-motion Source: Volkswagen Group 20

21 6 US: Substantial Potential on the Back of Market Recovery Market development in North America Million units Recent progress in the US market % CAGR Above-average increase in deliveries to customers (+6.8% January 2011 vs. 2010) With new Jetta and new Passat 2 key products have been launched in 2010/11 New factory in Chattanooga on schedule (SOP 2011). New engine plant in Silao, Mexico from 2013 Typical local content: ~ 85% 1 Changing > 50% of dealer network ( ) Local content of all-new Passat to be produced in Chattanooga, of which US > 45%; Localisation rate within the first year after production start Source: IHS Global Insight (data status: 07/02/11), rounded Note: Market = Cars and LCVs 21

22 6 Integrated Automotive Group with Porsche Multi-Stage Transaction To Ensure Stable Rating Transaction steps Phase Signing of implementation and loan agreements; partial transfer of PAG Phase / 2011 Capital raising and acquisition of PHS Signing of comprehensive agreements Resolution of risk of Porsche SE s option portfolio of shares in Volkswagen Restructuring of financing of Porsche SE and Porsche AG Signing and notarisation of detailed implementation agreements Acquisition of a 49.9% stake in Porsche Zwischenholding GmbH by Volkswagen Capital increase at Volkswagen (preferred shares) Acquisition of Porsche Holding Salzburg Capital increase at Porsche SE (ordinary and preferred shares) Envisaged timeline 2011 Phase onwards Integration Merger of Volkswagen with Porsche SE Exercise of put/call option for Porsche AG as a fall-back solution 2011 or later Possible in period between end of 2012 and early 2015 Note: Transaction steps in phases 2 and 3 are planned and subject to various conditions 22

23 6 Integration of Porsche Holding Salzburg s Highly Profitable Retailing and Import Business Key Data NL 2001 G 1997 CR 1992 PL 2005 SK 1992 UKR billion revenue 432,000 new cars, 133, 000 used : Total 565,000 20,859 employees F 1999 A 1949 H 1990 RO 1997 I 2004 SLO 1993 HR 1999 SRB 2004 AL 2005 MC 2005 GR 2008 BG 2004 Strategic integration Unique opportunity to become owner of highly profitable automotive trading company and the largest dealer and trading network in Europe Wholesale, Retail, Financial Services of Volkswagen Group brands/porsche China 2004 Strong presence and rich experience in the key growth markets of Eastern Europe, from which the entire Volkswagen Group will benefit Significant import of vehicles into China Wholesale/Retail of non-volkswagen Group brands Porsche Holding Salzburg provides a wealth of customer relationships and information 1 Source: Porsche Holding Salzburg information, Calendar year 2010 (preliminary) 23

24 6 Volkswagen Financial Services: Supporting the Automotive Business in Strategic Markets and Contributing to Profitability Expanding activities New Market entry (China, Russia, India) Current Organisation Source: Volkswagen Group 24

25 6 Volkswagen Financial Services has a Diversified Portfolio in Brand and Product Offer Segment Brands Captive Product Bank Direct Banking Leasing Insurance Services Volume / Premium Volume Volume Premium Luxury () () Luxury () () Luxury () () LCV 25

26 6 World Car Markets and VW Group Deliveries to Customers 1 January 2011 vs World car market: +12.8% VW Group: +19.6% North America Western Europe Central & Eastern Europe Car market Cars + LCV 15.3% VW Group Car market VW Group Car market VW Group 9.4% 5.8% 42.0% 30.0% -1.9% South America Rest of World Asia Pacific Car market VW Group Car market VW Group 66.4% Car market VW Group 21.6% 16.6% 13.3% 17.1% 32.5% 1 Source: Volkswagen Group; w/o Scania 26

27 6 1 Volkswagen Group Deliveries to Customers by Brands January 2011 vs units % % January 2010 January Volkswagen Group 1 Source: Volkswagen Group; w/o Scania Volkswagen Passenger Cars 22.6% 26.4% 5.7% % % Audi Škoda Seat Bentley Commercial Vehicles 36 27

28 6 Outlook 2011 Volkswagen Group 1 Deliveries to customers million vehicles Deliveries to customers are expected to increase versus 2010 thanks in part to our unique brand portfolio and growing presence in all key regions of the world Sales revenue billions Sales revenue is expected to be higher than the prior year Modular toolkit system will have an increasingly positive effect on the Group s cost structure Operating profit billions Continuing volatility in interest and exchange rate trends and commodities prices will weaken the positive volume effect Operating profit in 2011 is expected to be higher than in Source: Volkswagen Group; incl. Trucks & Busses (until February 2009) 28

29 Volkswagen On the Road of Success Hans Dieter Pötsch Member of the Board of Management, Volkswagen AG Geneva, March 2011

30 APPENDIX 30

31 Volkswagen Tiguan 31

32 Volkswagen Passat (US-Version) 32

33 Audi RS 3 Sportback 33

34 Audi A6 34

35 Škoda Octavia GreenLine 35

36 Seat Concept IBE 36

37 Bentley Continental GT 37

38 Lamborghini Concept Sesto Elemento 38

39 Volkswagen Amarok 39

40 Scania G 420 Highline 40

41 Volkswagen of America on Track to Achieve Targets Launches 2011 Market / 2012 Development USA Million Units New Passat New Eos New Tiguan New Beetle New Beetle Cabrio New CC New Jetta Hybrid Volkswagen Chattanooga Plant US-Market share development by month (VW Passenger Cars) [%] % Volkswagen of America achieved a 2.2% market share in January

42 1 Volkswagen Group Deliveries to Customers BRIC-markets January 2011 vs units 31.2% January 2010 January % % % 192.7% BRIC Brazil Russia India China 1 Source: Volkswagen Group; w/o Scania 42

43 Disclaimer United States Legend These materials do not constitute an offer of securities for sale or a solicitation of an offer to purchase securities in the United States, Germany or any other jurisdiction. The shares (the Shares ) of Porsche Automobil Holding SE (the Company ) may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. The Company does not intend to register any portion of the offering in the United States or to conduct a public offering of Shares in the Company in the United States. Diese Mitteilung stellt weder ein Angebot zum Kauf von Wertpapieren noch die Aufforderung zur Abgabe eines Angebots zum Kauf von Wertpapieren in den Vereinigten Staaten von Amerika, Deutschland oder sonstigen Staaten dar. Die Aktien (die Aktien ) der Porsche Automobil Holding SE (die Gesellschaft ) dürfen in den Vereinigten Staaten von Amerika nur nach vorheriger Registrierung oder ohne vorherige Registrierung nur aufgrund einer Ausnahmeregelung von dem Registrierungserfordernis nach den Vorschriften des U.S. Securities Act von 1933 in der derzeit gültigen Fassung verkauft oder zum Kauf angeboten werden. Die Gesellschaft beabsichtigt nicht, das Angebot von Aktien vollständig oder teilweise in den Vereinigten Staaten zu registrieren oder ein öffentliches Aktienangebot in den Vereinigten Staaten durchzuführen. German Legends Diese Veröffentlichung stellt weder ein Angebot zum Verkauf noch eine Aufforderung zum Kauf irgendwelcher Wertpapiere dar. Ein etwaiges künftiges Angebot im Hinblick auf Aktien der Porsche Automobil Holding SE würde ausschließlich durch und auf Basis eines zu veröffentlichenden Prospektes erfolgen. Dieser Prospekt würde bei der Porsche Automobil Holding SE, Porscheplatz 1, Stuttgart, sowie auf der Webseite der Porsche Automobil Holding SE unter kostenfrei erhältlich sein. This publication constitutes neither an offer to sell nor a solicitation to buy securities. A possible offer with regard to securities of Porsche Automobil Holding SE would be made solely by means of, and on the basis of, a securities prospectus to be published. Such securities prospectus would be available free of charge from Porsche Automobil Holding SE, Porscheplatz 1, Stuttgart, as well as on the Porsche Automobil Holding SE website under 43

44 Volkswagen On the Road of Success Hans Dieter Pötsch Member of the Board of Management, Volkswagen AG Geneva, March 2011