DOCSLIB.ORG

Volkswagen AG RR October 2019

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Volkswagen AG RR October 2019 Robert Streda Cathy Cheng +1 416 597 7397 +1 416 597 538 [email protected] [email protected] RATING REPORT Volkswagen AG Ratings Debt Rating Action Rating Trend Volkswagen AG – Issuer Rating A (low) Upgraded/Trend Change Stable VW Credit Canada Inc. – Senior Unsecured Debt * A (low) Upgraded/Trend Change Stable VW Credit Canada Inc. – Commercial Paper * R-1 (low) Upgraded/Trend Change Stable * Guaranteed by Volkswagen AG. Rating Update On October 25, 2019, DBRS Limited (DBRS Morningstar) upgrad- notes that VW’s corporate governance assessment continues to ed the Issuer Rating of Volkswagen AG (VW or the Company) adversely affect the Company’s ratings. to A (low) from BBB (high). Concurrently, DBRS Morningstar upgraded VW Credit Canada, Inc.’s Senior Unsecured Debt rat- DBRS Morningstar notes that VW has proven resilient to the ing and its Commercial Paper rating to A (low) and R-1 (low), Diesel Issue, with the Company’s global sales performance in respectively, from BBB (high) and R-2 (high), respectively. DBRS 2018 and through the first half of 2019 (H1 2019) continuing to Morningstar also changed the trend on all ratings to Stable from moderately outpace that of the overall industry. Financial per- Positive. The ratings incorporate VW’s solid business risk assess- formance over this period has also remained solid, with VW’s ment as an automotive original equipment manufacturer (OEM) Automotive business generating sound operating margins of 7.1% of substantial scale with a highly diversified brand portfolio. and 7.0% (trailing 12-month periods; both figures as calculated Moreover, the ratings upgrades recognize VW’s ongoing solid by DBRS Morningstar) in 2018 and H1 2019, respectively. DBRS operating performance despite sizeable challenges and cash out- Morningstar observes further that Company’s relative perfor- flows stemming from its diesel issue (the Diesel Issue), which, ap- mance in H1 2019 has readily exceeded that of many of its im- proximately four years following its initial onset, appears to have mediate peers that have reported markedly weaker earnings this been largely addressed by the Company, although there remain year in line with declining sales volumes, higher raw material numerous outstanding (primarily civil) actions across various costs and increasing investment requirements. Finally, VW’s per- jurisdictions. Notwithstanding the upgrade, DBRS Morningstar formance in China (accounted for using the equity method and Continued on P.2 Financial Information 12 mos. to 6 mos. to June 30 June 30 For the year ended December 31 (EUR millions) 2019 2018 2019 2018 2017 2016 2015 2014 Revenue 1 106,126 101,715 205,478 201,067 195,817 186,016 183,936 177,538 Net income before non-recurring items 7,485 7,466 13,834 13,812 13,163 9,794 8,896 10,847 Adjusted Interest coverage – EBITDA 1 17.4 16.4 24.5 22.7 18.4 16.5 13.0 13.8 Adjusted DEBT / EBITDA 0.8 0.6 0.9 0.9 0.6 0.6 0.8 0.8 Adjusted % gross debt in capital structure 1 20.7% 16.3% 20.7% 20.8% 16.1% 15.8% 19.5% 18.9% Note: Certain figures in this and in subsequent tables are subject to adjustments made by DBRS Morningstar. 1 Excludes financial services division. Issuer Description VW is the largest auto manufacturer in Europe and ranks first globally (according to 2018 data). The Company has a portfolio of 12 brands that, among others, includes Volkswagen, Volkswagen Commercial Vehicles, Porsche, Audi, Skoda, SEAT, Bentley, Lamborghini and Bugatti. VW’s Truck and Bus business, Traton, features the Scania and MAN brands. VW also has a sizable financial services business, and operates VW Credit Canada, Inc., its wholly owned subsidiary. October 31, 2019 1 Rating Report | Volkswagen AG Rating Update (CONTINUED) thus not included in the above-cited operating-margin figures) DBRS Morningstar notes further that the Company maintains has also remained robust, notwithstanding the ongoing contrac- several additional options to further bolster its liquidity position, tion of the Chinese market. including the sale of further equity stakes of its Truck and Bus business, Traton SE (Traton), and other potential divestitures of DBRS Morningstar recognizes that VW, like all of its automotive non-core assets. peers, will face meaningful industry headwinds over the next several years amid moderating global sales growth and sizeable Consistent with the Stable trend, the ratings are expected to re- investment requirements, in line with the increasing electrifi- main constant over the near to medium term. DBRS Morningstar cation of its product portfolio (to meet tightening environmen- notes that VW’s financial risk assessment provides some cush- tal regulations, notably in Europe and China). The Company is ion against unexpected challenges at the current ratings levels. also targeting additional investments into new mobility busi- Conversely, additional rating upgrades are not anticipated over nesses. (Regarding the Diesel Issue, while associated cash out- the similar time horizon given the slowing growth prospects and flows will persist, these are anticipated to be of a substantially cost headwinds facing the industry, with the Company’s corpo- lesser magnitude going forward.) However, DBRS Morningstar rate governance issues also serving to constrain further positive estimates that VW’s liquidity position will remain robust amid rating actions. such headwinds given its consistent free cash flow generation. Rating Considerations Strengths 4. Financial services earnings smooth profitability VW’s financial services business has provided a stable and mean- 1. Size provides economies of scale ingful source of earnings, with annual operating profit totalling VW is the largest automobile manufacturer in the world and the EUR 2.8 billion in 2018. Financial services earnings help to re- leader in Europe. VW has the size and critical mass to attain the duce the volatility of earnings associated with the Company’s economies of scale necessary to be cost-competitive. Automotive operations. 2. Above-average financial strength Challenges The Company has above-average credit metrics and a strong li- quidity position. The Company’s Automotive operations (exclud- 1. Diesel Issue ing financial services) had a net cash position of EUR 9.4 billion VW faces challenges as the Company attempts to recover from (as calculated by DBRS Morningstar) as at June 30, 2019 (exclud- the Diesel Issue, which initially spanned 482,000 thousand ing the impact of International Financial Reporting Standards vehicles in the United States, only to quickly increase to ap- (IFRS) 16 Leases, which was adopted as of January 1, 2019, and proximately 11 million worldwide. DBRS Morningstar notes negatively affected the Automotive operations’ reported debt by that related provisions incurred by the Company have totalled approximately EUR 5.1 billion). EUR 30 billion as of H1 2019. While this likely represents the ma- jority of such charges, DBRS Morningstar notes that there may 3. Market leader in Western Europe; yet be additional increases pending further developments, litiga- globally diversified tion and regulatory sanctions. Notwithstanding the Diesel Issue and amid ongoing competition across markets worldwide, the Company’s competitive position 2. Corporate governance challenges in terms of market share has held essentially firm. VW’s world- VW’s corporate governance framework is considered to be sub- wide market share in 2018 increased slightly to 12.3% compared optimal as indicated by the following characteristics: with 12.0% in 2017. In North America, the Company’s share de- 1. VW’s Supervisory Board is composed primarily of share- creased slightly and remained low at 4.6% (compared with 4.7% holders and worker representatives, with only a nominal in 2017). In Western Europe, VW’s market share remained con- proportion of independent members; stant (at a level of 22.0% in 2018), with the Company remaining the region’s market leader by a sizable margin. Moreover, VW’s 2. The Diesel Issue highlighted the lack of oversight and ac- market position remained solid in Central and Eastern Europe, countability from VW’s Management Board; and notwithstanding a moderate decline in market share in 2018 to 3. External investors have very little voting rights as the ma- 21.2% (compared with 22.0% in 2017). jority of voting shares are held by a small group of share- October 31, 2019 2 Rating Report | Volkswagen AG Rating Considerations (CONTINUED) holders (as of year-end 2018, Porsche Automobil Hold- source of production for the Company (the country having ac- ing SE, Stuttgart owns 52.2% of voting shares (53.1% as of counted for approximately 20.9% of VW Group production in March 2019), State of Lower Saxony owns 20.0% and Qa- H1 2019). VW is seeking to improve its productivity through tar Holding owns 17.0%). Overall, the challenges in VW’s greater application of modular architectures, which will make it easier to build a wider variety of cars in future factories. Moreover, corporate governance have resulted in a downward adjust- VW’s existing labour agreement cites specific objectives of the ment of the Company’s ratings. Volkswagen brand and the German production facilities, target- ing savings and efficiency improvements and projected declines 3. Earnings volatility from cyclical automotive in headcount (primarily through attrition taking into consider- industry conditions ation the demographic curve of its labour force). VW’s operating performance is largely dependent on automotive business conditions, which fluctuate generally in line with eco- 5. Modest U.S. presence nomic cycles. VW has a modest presence in the United States, which is among the largest automotive markets in the world. Moreover, the 4. Significant production in Germany Diesel Issue (which originated in the United States) continues DBRS Morningstar notes that Germany, a relatively high-cost to represent an ongoing headwind for future sales growth in jurisdiction, continues to represent a material (albeit declining) that country.
Load more

Recommended publications
  • Traton Group – Creating a Global Champion
    TRATON GROUP – CREATING A GLOBAL CHAMPION ANALYST & INVESTOR FACTBOOK APRIL 2021 DISCLAIMER This presentation has been prepared for information purposes only. It does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of Volkswagen AG, TRATON SE, or any company of the TRATON GROUP in any jurisdiction. Neither this presentation, nor any part of it, nor the fact of its distribution, shall form the basis of, or be relied on in connection with, any contractual commitment or investment decision in relation to the securities of Volkswagen AG, TRATON SE, or any company of the TRATON GROUP in any jurisdiction, nor does it constitute a recommendation regarding any such securities. It contains forward-looking statements and information on the business development of the TRATON GROUP. These statements and information are based on assumptions relating in particular to the TRATON GROUP’s business and operations and the development of the economies in the countries in which the TRATON GROUP is active. As far as information or statements on Navistar are concerned, the same applies to Navistar. Please note that TRATON SE has signed definitive agreements on the acquisition of Navistar but the acquisition requires a number of approvals and is therefore not yet closed. The TRATON GROUP has made such forward-looking statements on the basis of the information available to it and assumptions it believes to be reasonable. The forward-looking statements and information may involve risks and uncertainties, and actual results may differ materially from those forecasts.
    [Show full text]
  • Separate Financial Statements Fiscal Year 2019
    201Separate financial9 statements PPorscheorsche TaycanTaycan TurboTurbo S 3 Content Group management report and management report of Porsche Automobil Holding SE 6 Fundamental information about the group 10 Report on economic position 12 Significant events and developments at the Porsche SE Group 12 Significant events and developments at the Volkswagen Group 20 Business development 24 Results of operations, financial position and net assets 31 Porsche Automobil Holding SE (financial statements pursuant to the German Commercial Code) 37 Sustainable value enhancement in the Porsche SE Group 41 Overall statement on the economic situation of Porsche SE and the Porsche SE Group 43 Remuneration report 44 Opportunities and risks of future development 52 Publication of the declaration of compliance and corporate governance report 78 Subsequent events 79 Forecast report and outlook 80 Glossary 85 4 Financials 86 Balance sheet of Porsche Automobil Holding SE 90 Income statement of Porsche Automobil Holding SE 91 Notes to the consolidated fi nancial statements 92 Independent auditor’s report 212 Responsibility statement 220 5 VVolkswagenolkswagen IID.3D.3 6 1 Group management report and management report of Porsche Automobil Holding SE 7 8 Group management report and management report of Porsche Automobil Holding SE 6 Fundamental information about the group 10 Report on economic position 12 Significant events and developments at the Porsche SE Group 12 Significant events and developments at the Volkswagen Group 20 Business development 24 Results
    [Show full text]
  • Presse Info | Comunicado De Imprensa |新闻稿 | プレスリリース | Comunicado De Prensa | Communiqué De Presse | Informacja Prasowa
    PRESS RELEASE | PRESSE INFO | COMUNICADO DE IMPRENSA |新闻稿 | プレスリリース | COMUNICADO DE PRENSA | COMMUNIQUÉ DE PRESSE | INFORMACJA PRASOWA TRATON and Chinese Sinotruk significantly expand strategic partnership • TRATON´s brand MAN and CNHTC’s Sinotruk plan to establish joint venture • MAN to localize heavy-duty truck in China • Extension of technology cooperation will be evaluated in key focus areas • Broadened cooperation to further strengthen TRATON´s position in world´s largest heavy-duty truck market • Andreas Renschler: “Increasing transport volumes, regulation and digitization require change and flexibility. Partnerships are the right answer to turn these challenges into opportunities.” Hanover, Germany, September 18, 2018 – TRATON GROUP and Chinese CNHTC Group announced a further expansion of their long-term partnership today. MAN and Sinotruk have been working together highly successfully since 2009 and have agreed to broaden this cooperation by establishing a joint venture to localize a MAN heavy-duty truck in China and evaluating and intensifying technology and procurement cooperation. Since the beginning of the partnership, MAN has held a 25% stake plus one share in Sinotruk, one of the leading heavy-duty truck manufacturers in China. Andreas Renschler, Chief Executive Officer of TRATON AG and member of the Management Board of Volkswagen AG responsible for Commercial Vehicles, said: “Sinotruk is amongst the strongest players in the Chinese heavy-duty market. The challenges the transportation sector is facing require joint forces and close alliances. Increasing transport volumes, regulation and digitization require change and flexibility. Partnerships are the right answer to turn these challenges into opportunities.” Cai Dong, President of Sinotruk, said: “The cooperation with MAN has always been highly satisfactory.
    [Show full text]
  • Tratonproposestoacquireallo
    Media information NO. 28/2020 TRATON Proposes To Acquire All Outstanding Common Shares Of Navistar For USD 35 Per Share Munich, January 30, 2020 – TRATON SE (“TRATON”), one of the world’s largest commercial vehicle manufacturers, today offered to acquire all of the outstanding shares of common stock of Navistar International Corporation (“Navistar”) (NYSE: NAV) not already owned by TRATON at a price of USD 35 per share in cash. This represents a 45% premium over Navistar’s closing share price of USD 24.11 on January 29, 2020 and a 19% premium over Navistar’s 90-day volume weighted average price of USD 29.40. TRATON currently owns 16.8% of the outstanding common shares of Navistar. Since 2017, TRATON and Navistar have benefitted from a strategic alliance that has delivered significant value to both companies through increased purchasing power and the integration of new technologies. As the global commercial vehicle industry continues to evolve, TRATON believes that the proposed transaction is the logical next step and would result in even greater benefits. If the proposed offer were accepted and the acquisition completed, the combined company would have an enhanced ability to meet the demands of new regulations and rapidly developing technologies in connectivity, propulsion and autonomous driving. Combining TRATON’s leading position in the European and South American markets with Navistar’s presence in North America would create a leader with global reach and complementary capabilities. The transaction would also provide substantial value to Navistar stockholders through an immediate and certain cash premium. “Over the past three years, we have benefitted from a highly collaborative and productive strategic alliance with Navistar.
    [Show full text]
  • For TRATON, Sustainable Economic Growth Always Includes Treating People and Nature with Respect
    2020 ANNUAL REPORT “For TRATON, sustainable economic growth always includes treating people and nature with respect. We call this the People, Planet, and Performance triad, which will shape the future of our Company.” MATTHIAS GRÜNDLER, CEO of the TRATON GROUP To Our Shareholders Combined Management Report Operating Units Consolidated Financial Statements Further Information p. 5 p. 6 Electric city Batteries in everyday use The Munich Transport Corporation aims To reduce CO2 emissions, to operate all its buses with zero local Norwegian grocery wholesaler emissions by 2030 and is also relying on ASKO relies on battery-powered Equal opportunities at the wheel the MAN Lion’s City 12E for this purpose. trucks from Scania. Grace Adomako, the woman on our cover, is a bus driver in Accra, the capital city of Ghana. She stands for around 140 other women who have been trained as bus and truck drivers thanks to the support of Scania and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, a German agency p. 7 p. 8 for sustainable development. The aim is to promote equal opportunities in the West African country. p. 4 Pluralism & Inclusion (P&I) Sofia Vahlne, responsible for the P&I Digital, efficient, transparent Assembly 4.0 program at TRATON, talks to conductor RIO is developing a cloud-based platform Volkswagen Caminhões e Ônibus is using Jonathan Nott about how diversity and solution that organizes all processes for Industry 4.0 principles to align production success tie together — in the new TRATON Volkswagen Group Logistics — and the of the new Meteor truck even more podcast “Sustainability Stories.” potential is huge.
    [Show full text]
  • Annual Financial Statements of Traton Se
    2019 ANNUAL FINANCIAL STATEMENTS OF TRATON SE CONTENTS 1 Annual Financial Statements of TRATON SE 2 (until January 17, 2019: TRATON AG) for the fiscal year from January 1 Combined Management Report 43 through December 31, 2019 3 The management report for TRATON SE 3 Income Statement 4 and the management report for the Further Information 44 Balance Sheet 5 Group have been combined in accordan- ce with section 315 (5) of the Handels­ Notes to the Financial Statements 6 gesetzbuch (HGB — German Commer- Responsibility Statement 45 Members of the Supervisory Board cial Code) in conjunction with section Independent Auditor’s Report 46 and Executive Board and their 298 (2) of the HGB and published in Appointments 25 TRATON’s 2019 Annual Report. Publication Details 51 43 Combined Management Report ANNUAL FINANCIAL STATEMENTS OF TRATON SE Annual Financial Statements of TRATON SE 3 Income Statement 4 Balance Sheet 5 Notes to the Financial Statements 6 Members of the Supervisory Board and Executive Board and their Appointments 25 3 Annual Financial Statements of TRATON SE 43 Combined Management Report 44 Further Information ANNUAL FINANCIAL STATEMENTS OF TRATON SE Income Statement for the period from January 1 through December 31, 2019 € thousand Note 2019 2018 Net investment income (1) 1,931,618 –87,832 Write-downs of financial assets (2) –401,482 –1,181,823 Net interest income/expense (3) –973 837 Sales revenue (4) 13,134 13,795 Cost of sales –15,197 –13,684 Gross profit –2,063 111 General and administrative expenses (5) –135,046 –145,203 Other
    [Show full text]
  • TRATON SE 16 March 2021 Update Following Rating Affirmation
    CORPORATES CREDIT OPINION TRATON SE 16 March 2021 Update following Rating Affirmation Update Summary TRATON SE’s (TRATON) Baa1 rating reflects (i) the group's strong market positions in Europe and South America in the heavy-duty truck segment, (ii) the expectation of profitability improvements driven by a sizable synergy potential between the group brands and restructuring measures at its MAN subsidiary, (iii) a solid liquidity profile, (iv) the RATINGS company's commitment to preserve a capital structure in line with the requirements for a TRATON SE solid investment grade rating, as well as (v) the ownership and assumed support from its Domicile Germany main shareholder Volkswagen Aktiengesellschaft (VW, A3 negative), which is committed to Long Term Rating Baa1 remain a major shareholder going forward. Type LT Issuer Rating - Fgn Curr We expect the group's debt to EBITDA to be at around 2.0x on a stand-alone basis in 2021 Outlook Negative (i.e. excluding any impact from the pending acquisition of Navistar International Corp. Please see the ratings section at the end of this report (Navistar, B2 negative)) even in a scenario of continued weakness in truck markets because for more information. The ratings and outlook shown of a continued focus on debt repayment and supported by stringent financial policies. If fully reflect information as of the publication date. debt funded, we expect the acquisition of Navistar to increase TRATON's leverage to slightly above 3x in 2021, before declining towards 2x in 2022. Contacts Exhibit 1 Matthias
    [Show full text]
  • Porsche SE 2020 Financial Statements
    Financial statements 20202020 Note on the combined management report The management report of Porsche Automobil Holding SE and the group management report are combined and published in the Porsche Automobil Holding SE Annual Report 2020. The separate financial statements and the management report, which is combined with the group management report, of Porsche Automobil Holding SE for the fiscal year 2020 are submitted to the operator of the elektronischer Bundesanzeiger (Electronic German Federal Gazette) and are available on the website of the Company Register. In addition to this, the separate financial statements and the annual report including the combined management report of Porsche Automobil Holding SE are available on the homepage of Porsche Automobil Holding SE at www.porsche-se.com/en/investor-relations/financial-publications. 3 4 Financial statements 5 6 Content Balance sheet of Porsche Automobil Holding SE 8 Income statement of Porsche Automobil Holding SE 9 Notes to the financial statements 10 Independent auditor’s report 135 Responsibility statement 145 7 2 2 Balance sheet of Porsche Automobil Holding SE as of 31 December 2020 Balance sheet of Porsche Automobil Holding SE as of 31 December 2020 Note 31/12/2019 € thousand 31/12/2020 € thousand Note 31/12/2020 31/12/2019 Assets Assets Fixed assets [1] IntangibleFixed assets assets [1] 294 392 Property,Intangible plantassets and equipment 105294 142392 FinancialProperty, assetsplant and equipment 22,944,506105 22,960,669142 Financial assets 22,944,90522,944,506 22,961,20422,960,669
    [Show full text]
  • IESE Custom Program TRATON GROUP Executive Education Executive
    Executive Elite Program IESE Custom Program TRATON GROUP Executive Education Executive Executive Elite Program IESE Business School Executive Elite Program IESE Program for TRATON GROUP Executives Volkswagen Truck and Bus (officially named the TRATON GROUP in August 2018) was formed three years ago when Volkswagen Group “The Executive Elite program bundled together its truck and bus brands – MAN, Scania and Volkswagen Caminhões e Ônibus. is one of the most global and ambitious programs that The logic was simple: to enable the newly formed company to focus solely on the truck and bus business, with the explicit objective of I have directed. The combination creating “a global champion in the transportation business”. of a highly select group of participants from Germany, Since then, the company has made significant progress, improving collaboration between its 81,000 employees, integrating systems Sweden, Mexico, Brazil and the and processes, and leveraging its powerful brands. It has also US all working together to reinvent strengthened its presence in the North American and Asian markets through strategic alliances with Navistar and Hino Motors the company made the experience respectively. immensely memorable.” In 2017 VWT&B achieved sales of 205,000 vehicles, driving annual Neil Selby revenues up 12% to almost €24bn, and operating profit up 27% to Executive Elite Program Director €1.7bn. So far, so impressive. But Group CEO Andreas Renschler is intent on further enhancing efficiency, professionalism and innovation. The name of his current ‘Next Level’ project sums up his approach, with its objective of achieving capital market readiness, providing VWT&B with additional financing opportunities to accelerate profitable growth.
    [Show full text]
  • EN 19 Weitere Information EN.Indd
    www.traton.com TRATON Annual Report 2019 2019 ANNUAL REPORT COVER Examining things from a number of angles and bring- ing them together to create something new — this TRATON GROUP approach is symbolized by the cover image. It shows a mountain road in Brazil linking the east of São Paulo to the coast, fl ipped on itself to create a mirror image. The kaleidoscopic effect opens up a new way of looking at the big picture. To Our Shareholders Combined Management Report Operating Units Consolidated Financial Statements Further Information “In just a few years, we have shaped the TRATON GROUP into a viable young entity that rests on both strong traditions and huge technological competency and puts its customers at the center of everything it does. It is our strategic objective to become a Global Champion in the changing transportation industry.” ANDREAS RENSCHLER, CEO TRATON GROUP To Our Shareholders Combined Management Report Operating Units Consolidated Financial Statements Further Information With its brands MAN, Fiscal year Scania, Volkswagen 2019: Caminhões e Ônibus, and RIO, the TRATON GROUP 7.0%Operating return is one of the world’s on sales leading providers of transportation solutions. The Group aims to reinvent transportation — 227,240 Order intake (units) with its products, its services, and as a partner to its customers. 83,000 Employees (As of December 31, 2019) 29 TRATON PRODUCTION AND ASSEMBLY SITES 26,901 Sales revenue (€ million) 242,219 Sales (units) IN 17 ON 1,884 COUNTRIES Operating profit 4 (€ million) CONTINENTS To Our Shareholders Combined Management Report Operating Units Consolidated Financial Statements Further Information TRATON SPIRIT Lasting success is only possible when people work toward achieving a common goal.
    [Show full text]
  • Supplement to the Declaration of the Board of Management and Supervisory Board of AUDI AG
    Supplement to the declaration of the Board of Management and Supervisory Board of AUDI AG regarding the recommendations of the “Government Commission on the German Corporate Governance Code” pursuant to Section 161 of the German Stock Corporation Act 1. The Board of Management and Supervisory Board of AUDI AG have declared through their statement of compliance dated November 29, 2018, and the supplement dated February 21, 2019, that the recommendations of the “Government Commission on the German Corporate Governance Code” in its version dated February 7, 2017, as published by the Federal Ministry of Justice in the official section of the Federal Gazette on April 24, 2017, are being com- plied with, with the exception of the sections listed below: • 4.2.3, Para. 2, Sentence 3 (variable components of Management Board remuneration, multi-year measurement basis mainly relating to future periods) • 4.2.3, Para. 2, Sentence 6 (amount-based upper limit for short-term varia- ble remuneration, amount-based upper limit for total remuneration) • 5.3.2, Para. 3, Sentence 2 (independence of the Audit Committee Chairman) • 5.3.3 (Nominating Committee); • 5.4.1, Para. 6 (disclosure with regard to nominations) • 5.4.6, Para. 2, Sentence 2 (performance-related remuneration for Supervisory Board members) 2. Trading of the shares of TRATON SE on the Regulated Market of the Frankfurt Stock Exchange and of Nasdaq Stockholm commenced on June 28, 2019. Since then, the Audit Committee Chairman of the Supervisory Board of AUDI AG has served on the Supervisory Boards of three listed companies – AUDI AG, VOLKSWAGEN AG and TRATON SE – as well as on the Supervisory Board of Ber- telsmann SE & Co.
    [Show full text]
  • Volkswagen Subsidiary TRATON Refines Portfolio
    Media information NO.402/2018 Volkswagen subsidiary TRATON refines portfolio • Volkswagen AG acquires MAN Energy Solutions SE and all shares in Renk AG from MAN SE • TRATON AG is thereby focusing exclusively on trucks, buses and digital transportation solutions • Frank Witter, CFO: “In the light of our decision to prepare TRATON for a possible initial public offering (IPO), separating the Power Engineering business is a consistent step.” • Andreas Renschler, TRATON CEO: "With the sale, we are refining our portfolio and taking another step towards capital market readiness.” Wolfsburg, October 25, 2018 – In the context of achieving capital market readiness of TRATON AG, Volkswagen AG and TRATON AG with consent of their respective corporate bodies today have agreed on the sale of the 76 % stake of MAN SE in listed Renk Aktiengesellschaft as well as the 100 % stake of MAN SE in MAN Energy Solutions SE to a subsidiary of Volkswagen AG. The purchase price shall correspond to the expected IFRS equity book value of these participations as of 31 December 2018 in the range of approx. EUR 1.85 bn. to approx. EUR 2.05 bn. In addition, the indirect 100% participation of MAN SE in MAN Energy Solutions USA, Inc., will be sold and transferred to a subsidiary of Volkswagen AG for a purchase price of approx. USD 99 m. The transferred entities form MAN group’s business area Power Engineering. The sale is intended to be completed by year-end 2018. As a result of this transaction, TRATON AG will become the lead company of a pure truck & bus group.
    [Show full text]