Volkswagen Brand
Financial Results January to June 2020
Wolfsburg | July 31, 2020
ID.CROZZ: The vehicle is a concept car
Disclaimer
The following presentations contain forward-looking statements and information on the business development of the Volkswagen Brand. 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 Brand 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 Brand vehicles. The degree to which the Volkswagen Brand 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 and may continue to impact economic and social conditions in some of Volkswagen's primary markets, including China and Europe, as public, private, and government entities implement containment and quarantine measures. The continued spread of COVID-19 may cause shortages of necessary materials and parts from suppliers directly or indirectly affected by the outbreak and may cause operational disruptions and interruptions at Volkswagen's production facilities, leading to significant production downtimes
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.
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This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities.
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Conference Call on the results January - June 2020
Alexander Seitz | Jürgen Stackmann | Thomas Küter |
Member of the Volkswagen Brand | Member of the Volkswagen Brand | Head of Investor Relations |
Board of Management for | Board of Management for Sales, | Volkswagen Brand |
Controlling and Accounting | Marketing and After Sales |
3
COVID-19 with severe impacts on operating performance of the Volkswagen brand from January to June 2020
1.1 million vehicles | |
-40% | |
2019 | 2020 |
€ 28.6 billion | ||
-35% | € -16bn | |
2019 | 2020 |
- -1.5 billion
5.2%
2019 2020
SALES1) | SALES REVENUE | OPERATING PROFIT |
before special items | ||
% Return on sales | ||
1) These figures do not include sales of our Chinese joint ventures. | 4 |
ID.3 Pro Performance, 150 kW / combined power consumption in kWh/100 km: 16.9 - 15.4 (WLTP); 15.4 - 14.5 (NEDC); combined CO2 emissions in g/km: 0
ID.3 Pro S, 150 kW / combined power consumption in kWh/100 km: 17.7 - 15.9 (WLTP); 14.1 - 13.5 (NEDC); combined CO2 emissions in g/km: 0
Massive impact of Corona crisis on total markets…
World | -26.7% | … but we gained market shares in SAM + CN, stable elsewhere | |||||
39,867 | -28.4% | ||||||
28,563 | North America VW MS | Europe | VW MS | ||||
2,998 | -25.2% | VW MS | |||||
-38.1% | China incl. HK | ||||||
2,198 | -23.0% | ||||||
South America | VW MS | ||||||
-40.8% | |||||||
Total market | VW | Total market | VW | ||||
01-06 | Deliveries | 01-06 | Deliveries | ||||
2019 | 2019 | 2020 | 2020 | ||||
units in thousand | |||||||
Total market passenger cars / Deliveries to Customer | Jan - June 2020 (Year to Date) | |||||||
5 |
Regions show different speeds of recovery
Sales in China | Sales in Europe |
Deliveries to | Deliveries to |
customers | customers |
medium recovery | |
fast recovery | |
back to 100% |
Jan F M A M J J A S O N DezJan F M A M J J A S O N Dez
Sales in North America | Sales in South America | |||||
Deliveries to | ||||||
slow recovery | Deliveries to | slow recovery | ||||
customers | ||||||
customers | ||||||
back to 100%
Jan | F | M | A | M | J | J | A | S | O | N | Dez | Jan | F | M | A | M | J | J | A | S | O | N | Dez |
6
Deliveries to customer show strong signs of recovery in June & July
North America
-26 | -21 | ||
-48 | -42 | ||
April | May | June | July1) |
SouthAmerica
-28 | -20 | ||
-81 | -74 | ||
April | May | June | July1) |
China incl. HK
Europe | 2 | 2 | ||||||
-7 | ||||||||
-30 | -2 | |||||||
-57 | ||||||||
-76 | -6 | |||||||
April | May | June | July1) | April May | June | July1) | ||
World | ||||||||
-6 | ||||||||
-18 | ||||||||
-38 | -30 | |||||||
April | May | June | July1) |
Deliveries to customer in % | April - July1) 2020 vs. April - July 2019
1) Expectation | 7 |
Positive press feedback on the ID.3 after media event
VW ID.3 (2020):
Neuvorstellung -
Marktstart - Preise - Info
VW ID.3 FULL REVIEW
Driving the new
Volkswagen EV ID.3
8
Der neue König unter den
Elektroautos??
Game changing Volkswagen ID.3
ID.3 Pro Performance, 150 kW / combined power consumption in kWh/100 km: 16.9 - 15.4 (WLTP); 15.4 - 14.5 (NEDC); combined CO2 emissions in g/km: 0
ID.3 Pro S, 150 kW / combined power consumption in kWh/100 km: 17.7 - 15.9 (WLTP); 14.1 - 13.5 (NEDC); combined CO2 emissions in g/km: 0
ID.3 order take on target. Fast conversion of pre-bookers to first mover customers
37,000 |
YTD conversion |
of 41% |
> 15,000 |
ID.3 Pre-Booker First Mover Customer
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ID.3 Pro Performance, 150 kW / combined power consumption in kWh/100 km: 16.9 - 15.4 (WLTP); 15.4 - 14.5 (NEDC); combined CO2 emissions in g/km: 0
ID.3 Pro S, 150 kW / combined power consumption in kWh/100 km: 17.7 - 15.9 (WLTP); 14.1 - 13.5 (NEDC); combined CO2 emissions in g/km: 0
ID.3 distributed via the agency model in GER & AUT - enabling omni- channel sales
Agent
Online
Offline
Info | Consulting | Configuration | Dealer selection Offer | Deal | Handover |
Info | Consulting | Configuration Test Drive Dealer selection Offer | Deal | Handover |
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ID.3 Pro Performance, 150 kW / combined power consumption in kWh/100 km: 16.9 - 15.4 (WLTP); 15.4 - 14.5 (NEDC); combined CO2 emissions in g/km: 0
ID.3 Pro S, 150 kW / combined power consumption in kWh/100 km: 17.7 - 15.9 (WLTP); 14.1 - 13.5 (NEDC); combined CO2 emissions in g/km: 0
Rapidly growing BEV/ PHEV portfolio - journey "to zero" has kicked off
Q3 | Q4 | |||
2020 | 2021 | |||
1) The vehicle is a near-production prototype | 11 |
- ID.3 Pro Performance, 150 kW / combined power consumption in kWh/100 km: 16.9 - 15.4 (WLTP); 15.4 - 14.5 (NEDC); combined CO2 emissions in g/km: 0
- ID.3 Pro S, 150 kW / combined power consumption in kWh/100 km: 17.7 - 15.9 (WLTP); 14.1 - 13.5 (NEDC); combined CO2 emissions in g/km: 0
Exciting new launches to push brand communication & sales - 2nd half- year
Extended launch through Corona
Q1 | Q2 | Q3 | Q4 | 2021 |
2020 | ||||
1) The vehicle is a near-production prototype | 12 |
- ID.3 Pro Performance, 150 kW / combined power consumption in kWh/100 km: 16.9 - 15.4 (WLTP); 15.4 - 14.5 (NEDC); combined CO2 emissions in g/km: 0
- ID.3 Pro S, 150 kW / combined power consumption in kWh/100 km: 17.7 - 15.9 (WLTP); 14.1 - 13.5 (NEDC); combined CO2 emissions in g/km: 0
Temporary production and dealer shutdowns led to a huge earnings drop, however, the monthly trend is clearly heading towards break-even
OPERATING PROFIT | ||
€ million | 1,365 | |
2019 | 2020 | 921 |
481 |
-1,972
Q1Q2
SALES VOLUME | 910 | -16% | 765 | 976 | -62% | 369 |
('000 unit) | ||||||
13 |
Volume losses due to COVID-19 are the main reason for the negative earnings development
OPERATING PROFIT
€ billion
2.3
€ | |
-4.0 | |
H1 2019 | Volume / |
Mix / Prices |
-3.8
Mainly | ||||||||||
measures to | -1.5 | |||||||||
reduce CO2 + | -2.1 | |||||||||
Emissions | 0.4 | |||||||||
-0.2 | -0.6 | |||||||||
Product Costs | Fixed Costs, | H1 2020 | Special Items | H1 2020 | ||||||
others | ||||||||||
All figures shown are rounded, so minor discrepancies may arise from addition of these amounts. | 14 |
T-Roc R NEDC fuel consumption, l/100 km: urban 9.5-9.1 /extra-urban6.6-6.5 / combined 7.7-7.5; combined CO₂ emissions, g/km: 176-171; efficiency class: D
We have pushed the brakes on expenditures except for our strategic priorities
- billion/ % percentage of sales revenue
1.3 | 1.3 |
0.5-0.5
39%1)
4.5%
Total R&D Costs
H1 2020
of which capitalized | amortization |
Recognized in the income statement
H1 2019: 1.6 | 0.5 | -0.5 | 1.6 |
1) Capitalization ratio | 15 |
We have intensively challenged our investment needs but kept the focus on our transformation towards electrification and digitalization
- million/ % percentage of sales revenue
-5%
1,7361,651
3.9%5.8%
Capex | Capex |
H1 2019 | H1 2020 |
Efficiency measures | |
Capital discipline | |
Complexity reduction | Strategic target: |
4-5% | |
Intra-Group synergies | |
MQB/MEB/VW.OS |
16
ID.3 Pro Performance, 150 kW / combined power consumption in kWh/100 km: 16.9 - 15.4 (WLTP); 15.4 - 14.5 (NEDC); combined CO2 emissions in g/km: 0
ID.3 Pro S, 150 kW / combined power consumption in kWh/100 km: 17.7 - 15.9 (WLTP); 14.1 - 13.5 (NEDC); combined CO2 emissions in g/km: 0
Cash flow development reflects the negative earnings development but proactive management of stocks provided some relief
€ billion | € billion |
-11%
-3.7 | |||||||
-5.6 | 10.6 | ||||||
9.8 | 9.4 | ||||||
-1.9 | |||||||
Net cash flow | Net cash flow | 30.06.2019 | 31.03.2020 | 30.06.2020 | |||
Special Items mainly | |||||||
underlying business | Diesel and M&A | ||||||
All figures shown are rounded, so minor discrepancies may arise from addition of these amounts. | 17 |
Our countermeasures to limit the negative impacts of Corona
Close alignment of sales and | Strong focus on liquidity + | Rigourous cost reductions | Steering of crisis response |
production planning | Working Capital | and spending freeze | measures in the regions |
management + | |||
prioritizing Investments |
18
ID.3 Pro Performance, 150 kW / combined power consumption in kWh/100 km: 16.9 - 15.4 (WLTP); 15.4 - 14.5 (NEDC); combined CO2 emissions in g/km: 0
ID.3 Pro S, 150 kW / combined power consumption in kWh/100 km: 17.7 - 15.9 (WLTP); 14.1 - 13.5 (NEDC); combined CO2 emissions in g/km: 0
Pushing for as much recovery as possible
The positive aspects of the first half 2020:
- Successful crisis management in one of the worst economic situations in recent history
- Significant recovery in monthly development of sales volumes and financial performance
- Clear reduction of fixed costs, R&D spending and investments
- Net-inventoriessignificantly reduced against prior year
Outlook 2020 | Target 2025 | |||
Sales revenue | Significantly below prior year | tbd | ||
Operating result | Operating result severely below prior year | > 6 % | ||
before special items | However, positive | |||
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Volkswagen AG published this content on 31 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2020 09:16:06 UTC