Dr. Christian Dahlheim, Director Sales Volkswagen GroupDeutsche Bank Global Auto Industry Conference, Detroit, 16 January 2019
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1) Figures excl. Volkswagen Commercial Vehicles, Scania and MAN. 3
bf
Development World Car Market vs. Volkswagen Group Car Deliveries to Customers1)
(Growth y-o-y in deliveries to customers, January to December 2018 vs. 2017)
World Asia-PacificSouth America
Central & Eastern EuropeNorth America Western Europe
-0.7%-0.6%
-0.6%
-2.1%
11.0%6.8%
-1.2%
0.6%
6.2%
11.3%
-2.3%
0.9%
Car MarketCars + LCV
Car Market Car MarketVW Group VW Group VW Group
Car Market Car MarketVW Group VW Group VW GroupCar MarketCars + LCV Cars + LCV
Cars + LCV
4
Volkswagen Group – Deliveries to Customers by Brands1)
(January to December 2018 vs. 2017)
1) Incl. all brands of Volkswagen Group (Passenger Cars and Commercial Vehicles); +0.6% excl. Volkswagen Commercial Vehicles, Scania and MAN.2) MAN incl. MAN Latin America Trucks and Busses GVW > 5t.
Volume Premium Sport & Luxury Truck & Bus
+1.4 % -3.4 % +3.6 % +13.7 %
[thsd. units]
January - December 2017January - December 2018
6,000
0
5,000
11,000
4,000
2,000
8,000
7,000
3,000
10,000
1,000
9,000
518114
6,245
1,878
10,834
50091 96
1,254468
6,230
10,742
1,201498 137
1,812
4 2566 246 11 11
+0.9%
+0.2%
+4.4%+10.5% +0.4%
-3.5%
+50.7% +4.0% -5.3% +19.6% +6.3%
2)
Volkswagen Group – Outlook for 2018
5
Deliveries to customers(‘000 vehicles)
+ 4.3%
Sales revenue(€ billion)
+ 6.2%
2016
Operating return on sales
(%)
2017
Deliveries to customersmoderately above prior year
Sales revenue by as much as 5% year-on-year
Operating return on sales between 6.5% to 7.5% before Special Items 2)
Full Year
6.7
7.4
10,297
10,741
217.3230.7
1)
1)
1) before Special Items. 2) Operating return on sales after Special Items is expected to be moderately below that range.
Improving Group Return on Sales despite significant headwinds
6
6.7%6.5 - 7.5%
2020Target
2017
6.5 - 7.5%
2025Target
2018 Outlook
7.4%
Industry transition Emission costs / CO2
2016Base
7.0 - 8.0%
Performance improvement programs
Return on Sales
USA1) Western Europe Russia
Brazil1) World1) China
Actuals Forecast Data source: IHS Automotive (11.2018)
m units
2017 20202019
17.3 16.8 16.7
2017 2019 2020
14.3 14.5 14.4
2017 2019 2020
1.5 2.0 2.3
2017 2019 2020
2.2 2.7 2.9
2017 20202019
86.684.588.8
20202017 2019
24.0 25.0 26.2
1) Volume for North & South America includes light commercial vehicles (definition ‘Light Vehicles’)
Global Passenger Car Market 2017 - 2020China remains largest driver of passenger car demand, Western Europe stable, Slowdown in the US from a high level, Recovery in Brazil and Russia from a low level
17.2
2018 2018
14.5
1.7
2018
2018
2.4
2018
85.223.9
2018
7
New and forthcomming Product Highlights*
8
Portfolio expansion and successor models ICE Portfolio expansion BEV
Sagitar (NF)T-Cross B-SUV 5-Seater (US/CH) A1 City Carver
Q3 Octavia Combi (NF) Tarraco
Leon (NF) 911 Carrera (NF) Cayenne Coupé Flying Spur (NF)
Bora BEV (CH) Lavida BEV (CH)
e-tron e-tron Sportback
Citigo BEV Taycan
ŠKODA Scala
* selected models
9
Strong increase in our Worldwide SUV Mix1)
SUV share in % of regional Group deliveries to customers
10
20
30
40
50
60
70
2014 2015 2016 2017 2018 2019 2020
NAR
Europe
ChinaWorld
1) Actual figures 2014-2018; 5-Year Planning (PR 67) 2019-2020
Strong Electrification of Product Portfolio
BEV volume per region in thousand units
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
China
Europe
NAR
World
2.000
1.000
5.000
3.000
4.000
Until 2025:+50 new BEVs
VW ID. NeoPorsche Taycan
VW ID. CrozzAudi A SUVe
VW ID. Buzz
VW ID. Vizzion
VW ID. Lounge
Audi e-tron
101) As of 19th November, 2018 / Communication of 5-Year Planning (PR67)
The Future Sales Model
11
Retail partnerships ready for the future – Customer is central to all touch-points
Entrepreneurship
Consumer Centricity
Profitability &Efficiency
Ecosystemfor more
customer loyalty
Digital products, functions on demand and new services
for additional business
New joint customerapproach between OEM,
importer and dealer
Seamless online andoffline customer journey
to meet expectations
Integrated, direct online channel for
lean sales and service activities
Over-the-Airdiagnosis and updates
sales and service
Efficient and lean processes and IT
Efficient retail/service network (market area concept) and formats
Integrated customerdata management fordirect customer access
Segment-specific customer orientation
12
Car Park Development Volkswagen Group
Car Park by Region
40
60
20
0
120
80
100
10
30
50
70
90
110
2010
45
1858
6
5
2012
112
2011 2013
55
2014 2015 2016 2017 2019 2022 2023
52
74
81
94 12
66
105
73
15
5
695
21
77
24
5
27
6
85
31
6
906
96
38
7
101
42
7
1078
34
9
41 42 43 45 46 46 47 48 49
49
51 52 53 55
2021 20242018
63
2020
47 50
in Mil.
China
USA
Europa
Driving forward Strategy 2025: Implementation is accelerating
Joint venture for rapid charging network in place
Fuel cell technology partnership agreed
Strategic cooperation in discussion
Volkswagen becomes largest shareholder
Autonomy for Truck & Bus making good progress
Product & technology offensive in China agreed
Positioning of Group brands sharpened
SEDRIC developed and presented
Strategic partnership with Microsoft agreed
13
Powering electric mobility
Volkswagen Brand – Pushing the Turnaround in the US with new products
14
0
250
500
2012 2013 2014 2015 2016 2017 2018
Deliveries to US customers, ‘000’ units
MarketShare % 2.2 2.0 2.03.0 2.6
2017 2018-19 2019-21
Jetta
Arteon
Passat
Midsize SUV 5s
Compact SUV
SUV offensive #1 Sedans SUV offensive #2
ID CrozzRefreshed Golf
Tiguan
Atlas
1.8 2.0
We are stepping on the gas in terms of profitability,innovative power and sustainability
Appendix
17
Volkswagen Group – Deliveries to Customers by Markets1)
(January to December 2018 vs. 2017)
VolkswagenGroup
1,000
0
2,000
5,000
3,000
4,000
6,000
7,000
8,000
9,000
11,000
10,000
976522
4,546
590797
3,584
360409
3,584
10,834
745 957
4,506
10,742
+0.9%
0.0%
+7.1% -2.0% +13.1%
+0.9%
-11.9%
January - December 2017 January - December 2018[thsd. units]
Western Europe Central- & Eastern Europe
North America South America Asia-Pacific Rest of World
1) Incl. all brands of Volkswagen Group (Passenger Cars and Commercial Vehicles), excl. Ducati; +0.6% excl. Volkswagen Commercial Vehicles, Scania and MAN.