MAN Group - Bourse · Jan-Henrik Lafrentz Chief Financial Officer ... MAN Group Company Presentation July 2016 < 15 >

1 < > MAN Group Company Presentation July 2016

MAN Group

Company Presentation Half Year 2016

July 2016


Agenda

1 The History of the MAN Group

2 The MAN Group Today

3 The Business Areas

4 Business Performance Half Year 2016


MAN Group Birthplace of the Diesel Engine


1873:

Gutehoffnungshütte Actienverein (GHH)

1758:

St. Antony ironworks, Oberhausen

1908:

M.A.N.

Maschinenfabrik Augsburg-Nürnberg AG

1898:

Merger with Maschinenbau-Aktien-Gesellschaft

Nürnberg, which was founded in 1841

1808:

Merger of several works in the Ruhr region

1840:

Sander’sche

Maschinen-Fabrik

Augsburg

1844:

Change of name to

C.Reichenbach’sche

Maschinenfabrik, Augsburg

1857:

Change of name to Maschinenfabrik Augsburg

1921: GHH acquires majority share of M.A.N.

The MAN Group has twin roots:

MAN Group History


1986:

M.A.N. merges with GHH, renamed MAN AG, based in Munich, Germany;

individual business areas restructured by industry as public limited

companies.

2016:

The MAN Group is one of Europe’s leading industrial players in transport-

related engineering, with a revenue of approximately €13.7 billion in 2015.

As a supplier of trucks, buses, diesel engines, turbomachinery, and special

gear units, MAN employs approximately 55,000 people worldwide. In

November 2011, the Company became part of the Volkswagen Group.

MAN Group History






Agenda


Company Structure

Power Engineering Business Areas

Divisions

Commercial Vehicles

MAN SE

Investments Sinotruk (25.0% + 1 share), Scania (17.4% voting rights)

MAN Diesel & Turbo

Revenue in 2015: €3.3 bn

MAN Latin America

Revenue in 2015: €1.0 bn

MAN Truck & Bus

Revenue in 2015: €9.0 bn Revenue in 2015: €0.5 bn

Renk (76 %)


MAN at a Glance

Key Figures

in € mn 2015 2014 D

Order intake 14,381 15,332 -6%

Sales revenue 13,702 14,286 -4%

Operating profit before special items1) 277 384 €-107 mn

Operating profit 92 384 €-292 mn

Operating return on sales (%) 0.7 2.7 -2.0%-pts.

Headcount (NO.)2) 55,030 55,903 -2%

Net cash flow 495 -849 €1,345 mn

Net financial debt2) -1,311 -1,360 €49 mn

1) 2015: Special items include restructuring expenses of €185 million for the future growth program at MAN Truck & Bus. 2) As of December 31, 2015 vs. December 31, 2014

.


Shareholder Structure*

The free float for MAN’s common share amounts to 24.44% as of June 30, 2016. Apart from its largest single shareholder,

Volkswagen Truck & Bus GmbH, MAN SE still has an international investor base made up of both private and institutional

investors. The latter are predominantly based in Germany, the United Kingdom, and the United States.

* Basis: 140,974,350 common shares; as of June 2016

** Voting rights and capital in MAN SE are held by Volkswagen Truck & Bus GmbH, a wholly-owned subsidiary of Volkswagen AG.

24.44% Free float

75.56% Volkswagen AG**


MAN SE

Executive Board and Management Board

Management Board Members only

Joachim Drees

Chief Executive Officer

Jan-Henrik Lafrentz

Chief Financial Officer

Josef Schelchshorn Chief

Human Resources Officer

Antonio R. Cortes

President

MAN Latin America

Dr. Uwe Lauber

Chief Executive Officer

MAN Diesel & Turbo SE


Focus on transportation and

energy

Profitable international growth

Customer orientation

Continuous expansion of

after-sales business

Technology leadership

Sustainable value creation

MAN Group Strategic Alignment


Guiding Principles Code of Conduct

reliable

dynamic

innovative

open

Corporate Values

MAN Group Principles of Conduct


We measure ourselves by the

best

All divisions must be profitable,

zero tolerance for losses

Maximize synergies where

advisable

Live our values and take on

responsibility

MAN Group Corporate Governance






Agenda


The largest MAN Group company and a leading supplier of commercial

vehicles and transportation solutions.

Trucks with a gross vehicle weight of 7.5 to 44 t

Heavy special-purpose vehicles with a gross train weight of up to 250 t

MAN-branded city and intercity buses, coaches, and bus chassis as well

as NEOPLAN-branded luxury coaches

Industrial, marine, and on- and off-road engines

End-to-end passenger transportation and goods transportation services

Commercial Vehicles MAN Truck & Bus


Strategic objectives:

Clear premium approach with strong brands

Profitable growth in backbone Europe and overseas premium markets

Product focus

Trucks: Leading position in global premium segment with a

continuously upgraded TG-range (>7.5t)

Buses: Sustainable profitability with a lean and modular product

program

External Engines & components: Future portfolio derived out of

vehicle engines

Business solutions: Leading supplier of customer need oriented

services

Commercial Vehicles MAN Truck & Bus


Is a leading supplier of commercial vehicles and bus chassis for

growth markets, with one of the most advanced production facilities

worldwide for trucks and bus chassis that are marketed under both the

Volkswagen and MAN brands.

Trucks with a gross vehicle weight of 5 to 31 t

Tractor-trucks with a gross train weight of up to 74 t

Bus chassis from 5 to 26 t for all uses

Tailor-made special-purpose vehicles

Commercial Vehicles MAN Latin America



Internationalization

Lead the market in Latin America and global budget markets

Introduce MAN vehicles in Latin America

Customer orientation

Develop reliable and affordable products with leading quality in their

segments

Ensure customer and dealer satisfaction

Expand the after-sales business

Operational excellence

Be the center of competence within the Group for the development of

budget trucks and buses

Innovation

Leverage synergies within the Group to strengthen new business

concepts

Commercial Vehicles MAN Latin America


One of the world’s leading providers of large-bore diesel and gas

engines for marine and stationary applications and is also one of the

leading suppliers of turbomachinery on the global market.

Two- and four-stroke engines with high fuel flexibility for use in ships and

power plants

On-board gensets, exhaust-gas turbochargers, and propulsion systems

Diesel and gas power plants and power plant components

Comprehensive range of compressors, gas turbines, steam turbines, and

chemical reactors

Complete turbomachinery trains for the oil and gas industry, the

processing industry, and power generation

Global end-to-end after-sales services for the company’s entire product

range under the MAN PrimeServ brand

Power Engineering MAN Diesel & Turbo



Customer satisfaction

Technological leadership in terms of efficiency

Technological leadership in terms of ecology

Preferred after-sales partner

Increasing profitability

Increased sales

Improved margins

Reduced costs

Growth above market

Reinforcement of international presence

Top employer

Best employer in mechanical and plant engineering

Personal development opportunities

Power Engineering MAN Diesel & Turbo


A globally recognized manufacturer of high-quality special gear units,

propulsion components, and testing systems.

Vehicle transmissions for medium and heavy tracked vehicles

Special gear units for specialist marine and stationary applications

Standard gear units, primarily for merchant shipping, industrial

applications, and wind power

Slide bearing housings for mechanical and plant engineering as well as

solar applications

Turnkey testing systems for the automotive, rail, and aviation industries as

well as for wind power plants

Power Engineering Renk



Retain technology and market leadership for

Navy applications

Tracked vehicle transmissions

Standard E-bearings

Profitable growth with new products

mainly in

Marine and power generation

After-sales business

International expansion

Expansion of global service network to USA and China

International cooperation

Power Engineering Renk






Agenda


Business Performance Half Year 2016

1) 2016: Special items include restructuring expenses of €50 million at MAN Latin America.

2015: Special items include restructuring expenses of €170 million at MAN Truck & Bus. 2) As of June 30, 2016 vs. December 31, 2015.

.

Reporting period Januar, 1 to June, 30

in € mn 2016 2015 D

Order intake 7,408 7,469 -1 %

Sales revenue 6,457 6,719 -4 %

Operating profit before special items1) 286 185 €101 mn

Operating profit 236 15 €221 mn

Operating return on sales (%) 3.7 0.2 3.5 %-pts.

Operating return on sales (%) before special items1) 4.4 2.8 1.6 %-pts.

Headcount (NO.)2) 53,844 55,030 -2 %

Net cash flow 144 93 €51 mn

Net financial debt2) -1,703 -1,311 €-392 mn


Outlook 2016

Commercial Vehicles

Unit sales and sales revenue to be on a level with the previous year

Buoyed by the measures initiated, operating profit and operating return on sales will be up significantly year-on-year. Both key

indicators will also significantly exceed the 2015 figures before special items.

Power Engineering

Order intake to be on the prior-year level

Sales revenue will be noticeably lower than in the previous year

Operating profit and operating return on sales will be significantly lower than the prior-year figures due to strong competitive

pressure on the strained markets

MAN Group

Slight year-on-year decline in sales revenue

Operating profit and operating return on sales will be up significantly year-on-year


Do you have any more questions?

MAN SE

Ungererstr. 69

80805 Munich, Germany

Phone +49 89 36098-0

Fax +49 89 36098-250

www.corporate.man.eu

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MAN Group - Bourse · Jan-Henrik Lafrentz Chief Financial Officer ... MAN Group Company Presentation July 2016 < 15 >