The Key to Mobility. Creating Value with Financial Services. Fixed Income Investor Update September 2012

Transcription

1 The Key to Mobility Creating Value with Financial Services Fixed Income Investor Update September 2012 Ulrich Hauswaldt Investor Relations Volkswagen Financial Services AG Nils Allnoch Debt Capital Markets & Rating Volkswagen Financial Services AG

2 Volkswagen Group Structure Automotive Division Passenger Cars and Light Commercial Vehicles Financial Services Division Volkswagen Financial Services Europe / Asia - Pacific / North - and South America Financial Services Trucks and Busses, Power Engineering USA / Canada / Spain / Argentina Scania Financial Services MAN Financial Services Porsche Holding Salzburg Financial Services Remaining Companies Porsche Financial Services 2

3 Volkswagen Financial Services AG at a glance (06/30/2012) Worldwide Presence Key Company figures Total Assets Equity Customer Deposits Operating Profit bn 8.72 bn bn 413 mn Employees Receivables Volkswagen Financial Services AG is conducting Business in 38 Countries Leasing 15.2 bn Wholesale 11.4 bn Credit 36.3 bn 3

4 A wide product range around the car 1. Das Auto 2. SERVICE 3. FLEXIBILITY New Mobility Ownership Insurance Micro Mobility Bank Retail Finance Dealer Finance Automotive Warranty Payment Protection Mobile Online Services Short Term Rental Services Direct Banking Fleet Management Deposits Leasing Gas Card Instalment Loans Finance Lease Operating Lease Tyre Wear & Tear Brokerage Products 4

5 Volkswagen Financial Services: Strategy WIR2018 VISION The best automotive financial services group in the world. BRAND GUIDELINE STRATEGIC GOALS Customers To be the most attractive supporter of sales for the brands To be the quality leader in business with customers and dealers Employees We are a top team! Profitability 20% ROE 1) with 50% CIR The key to mobility. customer - focused FS product brands follow the brand guidelines of the respective automotive brand Volume Comprehensive support for the Volkswagen Group Brands To cover at least every 2nd new car from the Volkswagen Group with one or more FS products To become market leader for financial services products for young used cars of the Volkswagen Group 1) excl. LeasePlan, factoring, employee leasing; based on the necessary capital to run the business (today 8%) 5

6 Strategic Benefit from a Captive Equipment Turnover Brand Loyality + 27% + 25% + 10% Equipment Level Holding Period Switch to Competitor Stay loyal Cash Payer 100% Cash Payer 7.8 years Cash Payer 39% 61% Captive Leasing-Customer 127% Captive Customer 5.8 years Captive Customer 33% 67% Source: NCBS 2011, EU 5 6

7 Volkswagen Financial Services Supports Launch of up!: Integrated Concept for Financial Services Benefit Customer Cost Transparency ( All In One ) Affordability Facilitating sales process Benefit Brand Volkswagen Secure Profitability per Customer Secure Volume Targets Increase Customer Satisfaction 7

8 After Sales 1 After sales products 2 After sales products 3 add advantages to brands and dealers after meet today s customer needs financing & leasing After sales represents strong growth area of VW FS Especially dealers benefit: Higher wages & parts turnover in workshops Commission income Customer retention Use more important than ownership Cost transparency/total cost of ownership Objective: 50% profit increase market Germany from Substantial contribution from After sales products 8

9 Expansion of After Sales Products in Foreign Markets Experiences from Germany are transferred step by step 1 New cars Fleet customers Small commercial Retail customers Cash customers 2 Used cars Retail customers Cash customers 3 Foreign markets for example 2 years free servicing for used cars 9

10 Risk Profile of Volkswagen Financial Services AG Residual Value Risk Shareholder Risk Earning Risk Credit Risk Market Price Risk Operational Risk Underwriting Risk Other Risk* Retail Credit Risk is the predominant risk type whereof the major share is originated from well diversified retail business with a low risk profile Corporate * Liquidity Risk, Strategic Risk, Reputational Risk 10

11 Development of Credit Risk June 2010 to June 2012 billion billion Retail Retail in % Corporate billion in % in % 70 5% % 40 3% 30 2% % 0 0% Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Exposure Provision Ratio Loss Ratio (ann) Default Ratio The Credit Risk Losses are under Control and completely covered by Provisions 11

12 Residual Value Risk June June 2012 per unit 12

13 Volkswagen Financial Services AG: Stable portfolio growth Existing contracts (`000) 2,992 2,627 2,121 2,189 1,963 1,092 1,101 1,120 1,203 1,282 2,390 2,806 2,835 3,022 3, H Finance Leasing Service / Insurance 13

14 Volkswagen Financial Services AG Key data 2008 H (IFRS) H Portfolio ( 000) 5,793 6,028 6,144 6,852 7,604 Retail + Leasing receivables ( mn) 36,825 40,538 44,148 47,513 51,469 Wholesale receivables ( mn) 9,584 8,391 8,828 10,412 11,366 Customer deposits ( mn) 12,835 19,532 20,129 23,795 24,257 Employees 6,639 6,775 6,797 7,322 8,456 IFRS profit before tax ( mn)

15 Outlook 2012 Volumes are expected to stabilise in saturated markets with opportunities in growth markets Refinancing costs will be stable Highly uncertain economic environment might have impact on risk costs Earnings in 2012 are expected to be at the level of

16 Volkswagen Financial Services AG Funding Structure Funding Deposits billion As of Total 83.8 bn Customer DepositsTotal 24.3 bn 17

17 Refinancing Strategy Deposits ABS 1 / 3 1 / 3 1 / 3 Capital Market Focus on three fundamental funding sources 18

18 VW Financial Services Worldwide Capital Market Activities VW Credit Inc. $ 4 bn CP Program (VWoA) 10 bn CP Program (VW Group) 25 bn Debt Issuance Program (VW Group) 144a Bond Emission via VIF / VW Group VW Credit Canada Inc. 25 bn Debt Issuance Program (VW Group) CAD 1 bn CP Program (VW Canada) VW FS Group 10 bn CP Program 18 bn Debt Issuance Program VW Bank 2.5 bn CP Program 10 bn Debt Issuance Program VW Bank Polska VW Leasing Polska PLN 3 bn Debt Issuance Program VW Bank Rus Feasibility study VW FS Japan JPY 60 bn ECP Program VW Leasing Mexico MXN 15 bn Dual Program* VW Bank Mexico MXN 3 bn CP Program (in progress) MXN 7 bn Debt Issuance Program VDF Turkey Feasibility study VW FS India INR CP + Bond Issuance VW Finance (China) Feasibility study *Dual = CP + Debt Issuance Banco VW Braszil Letra Financeira VW FS Australia AUD 2 bn Debt Issuance Program 19

19 Security for Investors Three Layer of Protection 1. Solvability and Creditworthiness of the Issuer (Volkswagen Leasing, VW FS NV Amsterdam) Irrevocable and Unconditional Guarantee + Letter of Comfort 2. Solvability and Creditworthiness of the Guarantor (Volkswagen Financial Services AG) S&P Rating: A- stable / Moody s: A3 positive Control & Profit + Loss Transfer Agreement 3. Solvability and Creditworthiness of Volkswagen AG S&P Rating: A- stable / Moody s: A3 positive One Risk One Price! 20

20 VW Financial Services Worldwide ABS Activities DFM DFM Master S.A. VW FS UK ABCP-Conduit, Driver UK Program VW Bank / VW Leasing Driver- & VCL-Program VCL Master VW FS Japan Ltd ABCP Conduit in Japan, Driver Japan Program VCI / VCCI Separate ABS expertise in the USA and Canada VW Bank France Current ABS-project VW Finance Spain Driver España Program VW FS China Current ABS-project Banco VW Brazil Driver Brazil Program VW FS Australia Current ABS-project 21

21 Recent Public CM and ABS Deals Capital Market VW Leasing GmbH: 09/2012, 1bn due 09/2022 VW FS NV: 05/2012, GBP 250m, due 10/2015 VW FS Australia: 02/2012, AUD 150m, due 01/2014 VW FS Australia: 06/2012, AUD 150m, due 06/2017 Banco VW, Brazil: 06/2012, BRL 300m, due 06/2014 VW Bank Mexico S.A. de C.V.: 06/2012, MXN 1bn, due 06/2016 Asset-Backed Securities VCL 16, Germany: 1.1bn (September 2012) Driver Brasil One, Brazil: BRL 1bn (July 2012) Driver Japan One, 25m (January 2012 Driver España One, 687m (June 2011) Driver Nine, Germany: 714.4m (May 2011) 22

22 Liquidity Reserve of Volkswagen Financial Services AG Committed credit lines (VW Bank GmbH) 1.16 bn Committed credit lines international 0.18 bn Cash reserves 1.77 bn Uncommitted credit lines international 5.71 bn ECB security deposits (VW Bank GmbH) 1.20 bn Government bonds 1.74 bn Total: bn As of 08/31/

23 Thank you for your attention! 24

24 Contact Ulrich Hauswaldt Investor Relations Tel.: