Annual Press Conference - MAN Group · MAN SE Annual Press Conference March 11, 2015 < 4 > ... The engine: MAN B&W 12 cylinder two-stroke ... New cement mill gearbox most powerful

1 < > MAN SE Annual Press Conference March 11, 2015

Annual Press Conference MAN SE

Munich, March 11, 2015


Dr. Georg Pachta-Reyhofen CEO of MAN SE



The MAN Group in 2014 Economic boundary conditions

Fiscal 2014 was significantly influenced by:

Pull-forward effects of Euro 6 for trucks at

the end of 2013 in Europe

Market slump Brazil

Political crises,

particularly Russia/Ukraine

Low oil prices

Exchange rates,

particularly Brazilian real, ruble, yen


The MAN Group in 2014 At a glance

€15.3 billion (€16.2 billion)

Order intake down 5%

€14.3 billion (€15.9 billion)

Sales revenue 10% lower year-on-year

€384 million (€309 million)

Slight improvement in operating profit

2.7% (1.9%)

Operating return on sales up, but at a low level


Annual Press Conference

WHAT CAN

WE ACHIEVE?

WHAT DO WE WANT

TO MOVE?

WHAT DO OUR

CUSTOMERS EXPECT?



Efficiency

WHAT DO OUR

CUSTOMERS

EXPECT?

Reliability

Premium Services


What do our customers expect? Efficiency – MAN EfficientLine 2

6.6% in fuel savings when compared

with its Euro 5 predecessor acc. to

service corporation TÜV:

Optimizing consumption of Euro 6-

engine series and reduced CO2

emissions as a result

Energy tires for lower rolling

resistance

Aero package significantly reduces

aerodynamic resistance


What do our customers expect? Reliability – MAN again secures top spot in TÜV report on commercial vehicles

Indicators for MAN’s high quality:

For the third year in a row, MAN is

the truck manufacturer with the

highest number of vehicles

passing the TÜV inspection with no

defects.

TGL, TGM, TGS and TGX had

lowest defect ratios for 1, 3, 4 and

5-year-old vehicles.

Further strengthening of lead

position for one-year-old trucks:

83.2% of vehicles had no defects at

all (2013: 82%).


What do our customers expect? Reliability – MAN buses prove to be most reliable means of transportation

MAN offers free bus convoy for

soccer fans:

Deutsche Bahn cancel trains again

due to German train driver strike.

At the beginning of November 2014

MAN made a total of 10 buses

available to replace trains for fans

traveling from both Munich to

Frankfurt and Hamburg to Wolfsburg.

Can you put trains on the road? MAN can.


What do our customers expect? Reliability – Deutsche Bahn stocks up on bus fleet

Deutsche Bahn commission MAN

with up to 815 local and regional

buses:

Deutsche Bahn uses around 2,000

vehicles made by MAN und

NEOPLAN.

DB Regio Bus has 22 bus companies

and is one of the leading players in

German bus services.


What do our customers expect? Premium services – Up to 10% in fuel savings thanks to

MAN TeleMatics® und MAN ProfiDrive®

MAN Telematics®:

Online data transfer allows efficient

fleet management

Detailed analysis of vehicle use

identifies savings potential for fuel

consumption and wear and tear

Intelligent planning for repair works

MAN ProfiDrive®:

Driver-efficiency training

Training in consumption and wear

can reduce costs up to 30%


What do our customers expect? Premium Services – MAN PrimeServ 24/7 worldwide

PrimeServ Diesel:

Extension of the global network for

the profitable and less cyclical

business area

Academies for training customers

around the globe

Successful retrofit solutions, e.g.:

Convert two-stroke diesel

engines into natural gas

engines – unique worldwide

Conventional ship propellers

replaced by Improved

propulsion efficient Kappel

propellers


WHAT DO WE WANT

TO MOVE?


Increased market penetration

with first-rate products


What do we want to move? First-rate products – MAN Lion’s City GL CNG named Bus of the Year 2015

Outstanding features lead to award:

Clean, powerful and economical

CNG engine with high range

5 double doors guarantee

passengers to board and alight

quickly

Comprehensive passenger

information system


What do we want to move? First-rate products – MAN Lion’s City Hybrid

A success story:

Up to 30% less fuel consumption by

recovering braking energy and

automatic start-stop system

No pollutants and significantly lower

noise emissions when approaching

and leaving the bus stop

Many European cities have already

changed to hybrid buses

184 hybrid buses have been sold

since 2010.

As many as 141 hybrid buses have

already been ordered in 2015.


What do we want to move? First-rate products – MAN long-haul truck TGX Hybrid in testing

Parallel hybrid system saves up to 8% fuel

in long-haul transport.

440 hp diesel engine D2676 combined with

177 hp electric motor

Lithium-ion battery with 5 kWh usable

capacity

Recuperates energy downhill and during

braking.

Battery, power electronics and cooling circuit

AC motor (650 V / 130 kW)


What do we want to move? First-rate products – The new MAN six-cylinder in-line engine D38

Technical details of the

MAN D3876:

Horsepower of up to 640 and

3,000 Nm out of 15.2 liters

Full torque from as low as 930 rpm

thanks to a two-stage turbocharger

Common rail injection with an

injection pressure of up to 2,500 bar

Significant weight savings due to

consistent lightweight design using

high-tensile materials


What do we want to move? First-rate products – Premiere of MAN flagship TGX D38 at IAA trade fair 2014

Technological highlights of the new

MAN TGX D38:

Efficient Euro 6 engines boasting

520, 560 and 640 hp

GPS-controlled cruise control

MAN EfficientCruise saves up to six

percent in fuel

New fuel-saving transmission

functions

Emergency brake assistant warns

about collisions and brakes

automatically in the event of an

emergency


What do we want to move? First-rate products – Power range of high-speed marine engines extended

5,000 – 10,000 kW 1,500 – 5,000 kW

500 – 1,300 kW


What do we want to move? First-rate products – Premiere of the MAN 175D at SMM trade fair 2014

Technical details:

Market entry as V12 diesel engine

Performance: 1,440 to 2,220 kW

Engine speed: 1,500 to 1,900 rpm

Applicable as mechanical drive for

on-board electricity or diesel-electric

drives

First applications are yachts, Navy,

and commercial shipping


What do we want to move? First-rate products – MAN first OEM to fulfill IMO Tier III regulation

IMO Tier III enters into force in 2016:

One propulsion system demonstrates

conformity already in October 2012

Certified by classification company

DNV GL

The propulsion system is a MAN

four-stroke engine 8L21/31 retrofitted

with a SCR system

The system is used on the RoRo

ferry “Petunia Seaways“


What do we want to move? First-rate products – Suitable drive trains for continuously growing commercial ships

CSCL-Globe, the world’s largest

container ship up to the end of 2014:

Length: 399.67 m

Width: 58.6 m

Draught: 16 m

Capacity: 19,100 TEU

The engine:

MAN B&W 12 cylinder two-stroke

inline engine S90ME-C9.2, built by

HHI under license

Power: 69,720 kW at 84 rpm

Torque: 8.2 million Nm

The engine measures 15 m in height,

22.5 m in length and weighs 2,080 to.


What do we want to move? First-rate products – Natural-gas-powered DF marine engines enter market

Successful market entry of natural-

gas-powered two-stroke engines:

Delivery of first ME-GI engine

powered by LNG in June 2014

Over 140 engines of this type sold in

the meantime

Orders for methane but also ethane

and methanol engines

Overall power of engines sold

amounts to a total of 2.6 GW.


What do we want to move? First-rate products – New natural gas four-stroke engine generation

delivered to VW power plant

Combined heat and power plant for

VW factory in Braunschweig:

The combined heat and power plant

(CHP) supplies the factory with

electricity and heat.

The CHP’s heart is the gas engine

35/44G with 10.3 MW electric power

and an additional thermal output

of 9.2 MW.

Overall, the CHP achieves efficiency

of 85%.

This modernization can lead to

annual savings of around 30,000 to

of CO2 on site.


What do we want to move? First-rate products – MAN delivers six compressor units for gas fields to Oman

MAN Diesel & Turbo receives one of

the largest orders for compressors

in the oil & gas industry:

The compressors compress natural

gas/acid gas to more than 450 bar

discharge pressure.

The compressed gas is led into the

gas fields, which pressurizes them

and thus increases the extraction

capacity.


What do we want to move? First-rate products – MAN Diesel & Turbo’s new 6 MW gas turbine

MGT6100 and MGT6200:

MGT6100: Designed for generating

power in combined cycle power

plants

MGT6200: Optimum drive for

compressors in the petrochemical

industry

Lower operating costs due to highly

efficient turbine stages

Sharply reduced nitrogen oxide

emissions thanks to state-of-the-art

combustion technology

Gas turbine portfolio will be

scaled up in the next few years!


NEW !

What do we want to move? First-rate products – Fail-safe mill gearbox by RENK

Newly developed mill gearbox with

integrated electric engines:

New cement mill gearbox most

powerful in its class – product

family up to 13 MW

8 electric drives instead of one

large driver

Extremely high availability through

8 redundant electrical drivers

Virtually maintenance-free gearbox

More efficient than conventional

products

Predecessor

8 electric drives,

each with 1 MW power output



Technology leadership and Sustainability

create first-rate products and unique selling points

WHAT CAN

WE ACHIEVE?

Business success through high sales performance

and streamlining cost structures


What can we achieve? First-rate products with excellent quality secure European market success

MAN Truck & Bus had four winners

in the “Best Commercial Vehicles of

2014” reader poll

The four winners:

NEOPLAN Starliner wins in the

high-deck touring coach category.

MAN Lion’s Regio wins in the

intercity category.

MAN Lion’s City M wins in the

midi category.

MAN TGL wins in the

up to 7.5 to truck category.


What can we achieve? Customized products, lean structures and an outstanding sales network

secure success in growth markets

MAN Latin America is market leader

in Brazil – since 12 years:

The VW Constellation 24.280

remains best-selling truck with

7,673 registrations.

Lightweight truck VW Delivery 8.160

scores second with 5,742 units.

Three truck models are on the list of

the ten most sold trucks in Brazil.

MAN Latin America confirmed its

number two position in the Brazilian

bus market.


Reduction in CO2 emissions at MAN sites within

the framework of MAN’s climate strategy

What can we achieve? MAN global leader in climate protection

Awards:

“A”-rating in Climate Performance Leadership

Index of Carbon Disclosure Project (CDP)

97 out of 100 points in Climate Disclosure

Leadership Index of CDP achieving best results in

the “Industrials” sector

Included in the Dow Jones Sustainability Index

for the third time in a row (“top 3”)

Award as “sustainable investment”:

oekom research awards sustainability with

“B”-grade and “Prime” Status

540.900 to CO2 438.400 to

CO2 405.700 to

CO2

Reduction

-19 % Reduction

-25 %

2008 2014 2020


What can we achieve? MAN gains significant popularity as employer

Employer index:

MAN climbs from rank 30 to 19 in

trendence Graduate Barometer

MAN among top 10 companies in

Professional Survey by Universum.

MAN improves its position by

11 ranks in the Focus survey

securing rank 24.

Rank 19

Rank 30

Rank 10

Rank 11

Rank 24

Rank 33


What can we achieve? Comprehensive efficiency program within the MAN Group from 2015 to 2017

Target:

Significantly improved operating profit

through efficiency program by the end of 2017

Main driving forces:

Optimize sales margins and expand after sales business

Reduce material and warranty costs through procurement

network with Volkswagen and new products

Optimize production network

Reduce overhead costs

Streamline organization

Synergies regarding development with Volkswagen

and Scania


Dr. Peter Park Executive Vice President for Finance of MAN SE,

Chief Financial Officer of MAN Diesel & Turbo SE



Business performance Order intake 1)

€ mn

MAN Group: Fiscal year

2013 2014

16,207 -5% 15,332

MAN Group: Overview by quarter

1) 2013: Adjusted due to the retrospective application of the income statement structure used by Volkswagen.

2013

2014

€ mn

3,806 3,699

4,039 3,976

4,349

3,473

4,012 4,186

,0

,500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Q1 Q2 Q3 Q4


Business performance Order intake 1)

1) 2013: Adjusted due to the retrospective application of the income statement structure used by Volkswagen. 2) Consolidated presentation of business areas starting in 2014.

2013 2014

-5%

€ mn

MAN Group: Fiscal year

16,207 15,332

Fiscal year by division

€ mn 2013 2014

Δ

in %

MAN Truck & Bus 9,551 9,269 -3

MAN Latin America 2,955 2,253 -24

Commercial Vehicles 2) 12,506 11,429 -9

CV order intake (units) 137,743 121,748 -12

MAN Diesel & Turbo 3,407 3,280 -4

Renk 504 666 +32

Power Engineering 2) 3,911 3,929 0

MAN Group 16,207 15,332 -5


€ mn

Business performance Sales revenue 1)

2013 2014

-10%

,0

,500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Q1 Q2 Q3 Q4

2013

2014

3,594

3,138

4,036

3,561 3,712

3,515

4,520

4,072

€ mn

15,861

14,286

MAN Group: Fiscal year MAN Group: Overview by quarter

1) 2013: Adjusted due to the retrospective application of the income statement structure used by Volkswagen.


Business performance Sales revenue 1)

€ mn

2013 2014

-10%

€ mn 2013 2014

Δ

in %

MAN Truck & Bus 9,251 8,412 -9


Commercial Vehicles 2) 12,207 10,577 -13

CV unit sales (units) 140,333 120,088 -14

MAN Diesel & Turbo 3,390 3,273 -3

Renk 485 480 -1

Power Engineering 2) 3,875 3,732 -4

MAN Group 15,861 14,286 -10

15,861

14,286

MAN Group: Fiscal year Fiscal year by division



Business performance Operating profit 1)

€ mn

2013 2014

309

384 +€75 mn

€ mn 2013 2014

Δ

in € mn

MAN Truck & Bus 244 152 -92

MAN Latin America 220 65 -155

Commercial Vehicles 2) 464 221 -243

MAN Diesel & Turbo -41 206 +247

Renk 66 72 +6

Power Engineering 2) 25 278 +253

MAN Group 309 384 +75




Business performance Operating return on sales

%

2013 2014

1.9

2.7 +0.8%-pts.

1) Consolidated presentation of business areas starting in 2014.

% 2013 2014

Δ

in %-pts.

MAN Truck & Bus 2.6 1.8 -0.8

MAN Latin America 7.4 2.9 -4.5

Commercial Vehicles 1) 3.8 2.1 -1.7

MAN Diesel & Turbo -1.2 6.3 +7.5

Renk 13.5 15.0 +1,5

Power Engineering 1) 0.6 7.5 +6.9

MAN Group 1.9 2.7 +0.8



2013 2014

Business performance Headcount 1)

No.

MAN Group: As of December 31 As of December 31, by division

56,102 55,903 0%

1) Including employees in the passive phase of partial retirement and vocational trainees, excluding

subcontracted employees.

No. 2013 2014

Δ

in %

MAN Truck & Bus 36,887 36,450 -1


Commercial Vehicles 38,907 38,449 -1

MAN Diesel & Turbo 14,560 14,947 +3

Renk 2,306 2,196 -5

Power Engineering 16,866 17,143 +2

MAN Group 56,102 55,903 0


€ mn 2013 2014

Operating profit 309 384

Share of profits and losses of equity-method investments -41 16

Finance costs -217 -200

Other financial result 122 42

Financial result -137 -142

Profit before tax 172 242

Income tax expense -377 -100

Income/loss from discontinued operations, net of tax -308 124

Profit/loss after tax -513 267

Business performance Profit/loss after tax


2013 Q1 2014 Q2 2014 Q3 2014 2014

2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 2014

1 As of the reporting date.

-390 -350 -333 -308

142

-849 -1,315

-864

-1,225

-1,517

-1,360

€ mn Mo € € mn

MAN Group: Net cash flow MAN Group: Net financial debt 1)

Business performance Net cash flow | Net financial debt


Outlook for 2015

Commercial Vehicles

Unit sales slightly below the prior-year level

Sales revenue to match the 2014 figure

Operating profit and operating return on sales down slightly year-on-year amid continued

strong competition

Power Engineering

Order intake slightly below the prior-year level

Sales revenue up slightly on the previous year

Operating profit and operating return on sales will improve slightly

Higher single-digit operating return on sales due to the ongoing high competitive pressure

in the currently flat markets

MAN Group

Sales revenue on a level with the previous year

Stable operating profit and operating return to remain at roughly the 2014 figure


Annual Press Conference MAN SE


Annual Press Conference - MAN Group · MAN SE Annual Press Conference March 11, 2015 < 4 > ... The engine: MAN B&W 12 cylinder two-stroke ... New cement mill gearbox most powerful

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