1 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Press Conference for the Half-Yearly Report MAN SE
Munich, July 28, 2015
2 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Dr. Georg Pachta-Reyhofen CEO of MAN SE
Munich, July 28, 2015
3 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Fiscal Year 2015 Economic situation
Global economy
European commercial vehicles market growing again, particularly in
southern European countries.
Persistent recession in Brazil and Russia.
Noticeable economic slowdown in China.
Iran new hope for all of the MAN Group’s products.
Exchange rates
Appreciation, U.S. dollar benefits from European products vis-à-vis
U.S. competition.
Yen at a low level with upward trend:
European products currently at disadvantage in view of Japanese
competition.
Oil price
Reduced oil price: almost at 2005 level.
Slump in investments in the oil and gas industry; positive impact on
other MDT markets, e.g. commercial shipping.
4 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Fiscal Year 2015 First six months at a glance (2014 figures)
€7.5 billion (€7.7 billion)
Slight decline in order intake, particularly in Latin America
€6.7 billion (€6.7 billion)
Revenue at prior-year level
€15 million (€222 million)
Operating profit
This includes €170 million in provisions in Q2 for
restructuring expenses for the program to safeguard future
growth at MAN Truck & Bus.
55,196 (55,903)
Slight decrease in number of employees worldwide since the
end of the year
5 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Agenda
1 Current Topics Commercial Vehicles & Power Engineering Dr. Pachta-Reyhofen
2 Business Performance & Outlook Dr. Park
6 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Current Topics – Commercial Vehicles Market situation trucks >6 tons in Europe (YTD May 2015 vs. 2014)
MAN currently has a market share of 16.2% compared to 16.0% in the prior-year period
EU market volume [units] Market change [2015 vs. 2014]
4,027
4,233
4,876
7,246
7,502
9,553
10,060
19,026
20,648
39,003
152,456
Austria
Belgium
Czech Republic
Netherlands
Italy
Spain
Poland
UK
France
Germany
Europe
2%
4%
11%
72%
34%
46%
22%
49%
8%
-1%
17%
Austria
Belgium
Czech Republic
Netherlands
Italy
Spain
Poland
UK
France
Germany
Europe
7 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Current Topics – Commercial Vehicles Market situation buses >8 tons in Europe (YTD May 2015 vs. 2014)
MAN currently has a market share of 12.0% compared to 11.7% in the prior-year period
EU market volume [units] Market change [2015 vs. 2014]
241
295
424
451
486
499
569
962
1,078
2,127
2,259
2,471
13,485
Netherlands
Norway
Sweden
Austria
Belgium
Czech Republic
Poland
Italy
Spain
UK
Germany
France
Europe
-15%
10%
-2%
-4%
19%
19%
33%
22%
62%
20%
4%
16%
13%
Netherlands
Norway
Sweden
Austria
Belgium
Czech Republic
Poland
Italy
Spain
UK
Germany
France
Europe
8 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Current Topics – Commercial Vehicles Substantiating the efficiency program at MAN Truck & Bus
Starting Point:
Unsatisfactory results between 2012 and 2015 (Ø ROS: 2.2%)
Objective: Sustainable increase in profitability
Creating efficient structures and processes
Adapting production capacities, increasing flexibility, and focusing on core
components and core competencies.
Reducing selling and administrative expenses.
9 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Current Topics – Commercial Vehicles Optimizing the bus production network of MAN Truck & Bus
Downsizing number of bus production plants
from five to two:
Relocating coach production from Plauen to
Ankara. Plauen site was converted into a Bus
Modification Center (e.g. the team coach for FC
Augsburg is currently being built in Plauen).
Relocating city bus production from Posen to
Starachowice. Job guarantee for employees of
the Posen plant at the Volkswagen
Nutzfahrzeuge plant nearby.
Relocating chassis assembly from Salzgitter to
Ankara.
Starachowice
All city buses
Ankara
Coaches
Intercity buses
Bus chassis
Future organization
10 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Current Topics – Commercial Vehicles Optimizing the truck production network of MAN Truck & Bus
Focus of truck production sites:
Clear focus of truck production network on
component and assembly plants:
Focus of assembly lines on series and of component
plant on core competencies
Concentrate on central spare part logistics
Future organization
Salzgitter
Component production
CKD
Central spare part logistics
Krakow
Assembly heavy truck series
Steyr
Light & medium truck series:
Assembly
Driver’s cab equipment
Munich
Heavy truck series
Assembly & driver’s cab equipment
Drive axle
Driver’s cab body for all series
11 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
0.8
2.9
0.5 0.3
1.8
2012 2013 2014 2015p 2016p
5.5
4.2
1.9
2.8
3.5
2012 2013 2014 2015p 2016p
4.0
4.9 4.6
3.2 3.3
2012 2013 2014 2015p 2016p
4.0
1.4
2.1
2.7
3.3
2012 2013 2014 2015p 2016p
5.6
1.3
(3.6)
(5.9)
(1.5)
2012 2013 2014 2015p 2016p
10.8 11.0
23.9
18.8
25.7
2012 2013 2014 2015p 2016p
2.4 1.9 3.7 3.8 3.1
2012 2013 2014 2015p 2016p
3.6 4.0 4.1 3.1 3.4
2012 2013 2014 2015p 2016p
20.1
56.2
68.5
122.5
89.4
2012 2013 2014 2015p 2016p
1.5 3.0
4.6 3.4 3.0
2012 2013 2014 2015p 2016p
5.8 5.9 6.4
9.1
5.6
2012 2013 2014 2015p 2016p
GDP growth (% full year)
Consumer inflation (% full year)
Argentina Chile Colombia Mexico Venezuela Brazil
Current
Projection
Argentina Chile Colombia Mexico Venezuela Brazil
Current Topics – Commercial Vehicles Economic situation in Latin America
1.8
2.7
0.1
(1.5)
1.0
2012 2013 2014 2015p 2016p
12 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Current Topics – Commercial Vehicles MAN Latin America remains market leader
Market share increase in spite of
drastic market slump.
Number of registrations in the first
six months of 2015 down 42% as
against 2014.
MAN market share (trucks >5t) on
June 30, 2015, increased to 27.7%
(+1%).
Unit sales figures for trucks and
buses incl. exports declined by 50%.
Austerity program is highly
efficient; personnel costs have
been drastically reduced.
13 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Current Topics – Commercial Vehicles Unit sales figures MAN Latin America since 2000 and outlook 2015
1,594 1,351 1,405 2,714 5,725
8,868 9,932 10,801 8,623
5,194
8,331 9,527 8,980 8,264
6,362
17,034
21,785 22,443
26,136
28,600 26,992
27,266
36,304
44,896
41,005
57,299
62,575
47,325
52,093
41,799
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Domestic
Export
28,850
34,325 35,860 37,198
47,105
53,519
46,199
65,630
72,102
56,305
60,357
48,161
23,848 23,136
18,628
-40%
to -50%
14 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Current Topics – Power Engineering MAN Diesel & Turbo gas engine portfolio for power plant applications
Efficiency of new engine series
over 50 percent:
Portfolio includes engines that run
on liquid gas with a mechanical
output of 7 to 20.7 MW.
The most powerful engine of this
series, the 51/60G TS reaches a
mechanical efficiency of more
than 50%.
When applied in combined heat and
power systems, its utilization factor
can exceed 90%. 35/44G 35/44G TS 51/60G TS 51/60G
15 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Current Topics – Power Engineering Air Liquide relies on MAN compressor for largest air separation unit worldwide
MAN’s compressor sets new
standards for an entire industry:
The air separation plant will generate
5,000 tons of oxygen per day.
For this purpose, the compressor will
compress 1 million cubic meters of
air per hour to 6 bar with 65 MW
propulsion power.
Another MAN compressor further
compresses part of the air to 40 bar.
The plant will be put into operation at
the end of 2017.
Oil supply
E-motor
Compressor
Air cooler
16 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Current Topics – Power Engineering MAN Diesel & Turbo receives major reactor order from Oman Oil Refineries
and Petroleum Industries Company (ORPIC) in Muscat
Reference with strategic significance
for refinery industry:
Is is a first that such a huge reactor
weighing 680 tons will be exchanged
during a general overhaul.
The order value in a two-digit million
range will comprise more than
100,000 working hours.
Additional major order:
Eight additional compressor trains for
national oil company Petroleum
Development of Oman (PDO).
17 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Current Topics – Power Engineering MAN Diesel & Turbo takes over Indian steam turbine specialist
MAN Diesel & Turbo acquires
MaxWatt Turbines Pvt. Ltd.:
MaxWatt is an established player on
the Indian and Asian market for
small-capacity steam turbines with
central offices in Bangalore.
This acquisition adds to MAN Diesel
& Turbo’s existing high-end range of
steam turbine products for numerous
standard applications.
18 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Current Topics – Power Engineering Renk receives order for over 70 wind turbine transmissions for offshore wind farm
Baltic Sea wind farm “Wikinger”:
70 Adwen (formerly Areva Wind)
wind power plants of 5MW each are
currently being built northeast of the
island of Rügen.
Renk is a specialist for equipping
such wind turbines. Including
previous orders, more than 210 wind
farms will generate energy with
transmissions from Renk in future.
The required transmissions have a
weight of 50 tons each.
19 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Agenda
1 Current Topics Commercial Vehicles & Power Engineering Dr. Pachta-Reyhofen
2 Business Performance & Outlook Dr. Park
20 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Dr. Peter Park Executive Vice President Finance MAN SE,
CFO MAN Diesel & Turbo SE
Munich, Tuesday, July 28, 2015
21 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Business Performance Order intake
2014 2015
-3%
€ mn
MAN Group: January – June 2015
7,674 7,469
By division
€ mn
H1
2014
H1
2015
Δ
in %
Q2
2014
Q2
2015
Δ
in %
MAN Truck & Bus 4,656 5,095 +9 2,390 2,566 +7
MAN Latin America 1,195 593 -50 625 303 -52
Commercial Vehicles 5,784 5,637 -3 2,984 2,850 -4
CV order intake (units) 62,646 55,277 -12 32,874 27,885 -15
MAN Diesel & Turbo 1,687 1,576 -7 901 749 -17
Renk 226 293 +30 102 129 +27
Power Engineering 1,906 1,852 -3 1,001 866 -14
MAN Group 7,674 7,469 -3 3,976 3,708 -7
22 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Business Performance Sales revenue
€ mn
2014 2015
0% 6,699 6,719
€ mn
H1
2014
H1
2015
Δ
in %
Q2
2014
Q2
2015
Δ
in %
MAN Truck & Bus 3,913 4,367 +12 2,131 2,347 10
MAN Latin America 1,195 593 -50 625 303 -52
Commercial Vehicles 5,071 4,917 -3 2,735 2,625 -4
CV unit sales (units) 57,635 49,876 -13 31,249 27,826 -11
MAN Diesel & Turbo 1,426 1,582 +11 726 885 +22
Renk 216 240 +11 108 133 +23
Power Engineering 1,634 1,813 +11 830 1,013 +22
MAN Group 6,699 6,719 0 3,561 3,631 +2
By division MAN Group: January – June 2015
23 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Business Performance Operating profit/loss
€ mn
MAN Group: January – June 2015
2014 2015
222 -€37 mn
€ mn
H1
2014
H1
2015
Δ
in € mn
Q2
2014
Q2
2015
Δ
in € mn
MAN Truck & Bus
before special items 79 121 +42 68 94 +26
after special items 79 -49 -128 68 -76 -144
MAN Latin America 67 -21 -88 36 -9 -45
Commercial Vehicles 150 -74 -224 107 -85 -192
MAN Diesel & Turbo 88 93 +5 55 53 -2
Renk 26 43 +17 12 30 +18
Power Engineering 114 135 +21 67 83 +16
MAN Gruppe
before special items 222 185 -37 154 151 -3
after special items 222 15 -207 154 -19 -173
By division
15 2)
185 1)
1) before special items 2) after special items .
24 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Business Performance Operating return on sales
%
MAN Group: January – June 2015
2014 2015
3.3 -0.5%-pts.
By division
%
H1
2014
H1
2015
Δ
in %-pts.
Q2
2014
Q2
2015
Δ
in %-pts.
MAN Truck & Bus
before special items 2.0 2.8 +0.8 3.2 4.0 +0.8
after special items 2.0 -1.1 -3.1 3.2 -3.2 -6.4
MAN Latin America 5.6 -3.5 -9.2 5.7 -3.0 -8.7
Commercial Vehicles 3.0 -1.5 -4.5 3.9 -3.2 -7.1
MAN Diesel & Turbo 6.2 5.9 -0.3 7.5 6.0 -1.5
Renk 11.9 17.8 +5.9 11.0 22.6 +11.6
Power Engineering 7.0 7.4 +0.5 8.0 8.2 +0.2
MAN Gruppe
before special items 3.3 2.8 -0.5 4.3 4.2 -0.1
after special items 3.3 0.2 -3.1 4.3 -0.5 -4.8
0.2 2)
2.8 1)
1) before special items 2) after special items .
25 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
2014 2015
Business Performance Headcount 1)
MAN Group: Dec. 31, 2014 vs. June 30, 2015
55,903 55,196 -1%
1) Including employees in the passive phase of partial retirement and vocational trainees,
excluding subcontracted employees.
Dec. 31, 2014 vs. June 30, 2015 by division
No.
2014
2015
Δ
in %
MAN Truck & Bus 36,450 35,904 -1
MAN Latin America 1,999 1,934 -3
Commercial Vehicles 38,449 37,838 -2
MAN Diesel & Turbo 14,947 14,850 -1
Renk 2,196 2,186 0
Power Engineering 17,143 17,036 -1
MAN Group 55,903 55,196 -1
No.
26 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
H1 2014 H1 2015
2014 H1 2015
-684
€ mn € mn
MAN Group: Net cash flow January – June 2015 MAN Group: Net financial debt as of Dec. 31, 2014 vs. June 30, 2015
Business Performance Net cash flow | Net financial debt
93
-1,360
-1,732
+€776 mn
-€372 mn
27 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Outlook 2015
Commercial Vehicles
Unit sales significantly below previous year due to the market situation in Brazil
Sales revenue to fall slightly short of the prior-year figure
Operating loss, primarily as a result of expenses associated with the restructuring program at MAN Truck &
Bus; negative return on sales as a result
Power Engineering
Order intake slightly below the prior-year level, which was dominated by a major order
Sales revenue roughly unchanged as against the previous year
Operating profit and operating return on sales will improve slightly
Higher single-digit operating return on sales due to ongoing high competitive pressure in the currently flat
markets
MAN Group
Slight year-on-year decline in sales revenue
Operating profit significantly impacted primarily by restructuring expenses
Operating return on sales will more than halve year-on-year
28 < > MAN SE Press Conference for the Half-Yearly Report 7/28/2015
Press Conference for the Half-Yearly Report MAN SE
Munich, Tuesday, July 28, 2015