Today, Volkswagen ($VOW (+1%) ) also held its investor and analyst conference today. I would like to summarize an insight from the meeting for you.

Oliver Blume looked back on a year 2024 that was characterized by strategic decisions in a rapidly changing environment. Despite weak demand in Europe, rising trade barriers, challenging industrial conditions in Germany and strong price competition in China, the Volkswagen Group the Volkswagen Group was not discouraged. On the contrary, it has pursued a determined course and pushed ahead with the transformation along the TOP 10 program.

One important point was the comprehensive model offensive with over 30 new models from Volkswagen, Skoda, Cupra, Audi and Porsche. The design was sharpened, the brand identities emphasized and the quality of products and services measurably improved. quality of products and services was measurably improvedwhich was reflected in the positive feedback from customers and the trade press.

In China a new strategy has been implemented, which relies on strong regional technology partners (such as Xiaopeng), an innovation center in Hefei, accelerated development times, revised cost structures and a product strategy tailored to Chinese customers. Blume emphasized that, unlike many other manufacturers in China, Volkswagen continues to be profitable which makes it possible to invest in new models and technologies.

North America remains a key market for the Group's growth strategy. Investments and strategic partnerships are intended to drive growth in new market segments. The revitalization of the Scout brand for pickups and robust SUVs with flexible drive options met with great interest, with almost 80,000 pre-orders already received.

In the area of software important milestones were also reached. Software activities were realigned and the team strengthened with new partners: Xiaopeng for China and Rivian for other regions are to develop the electronic architectures and software solutions of the future. CARIAD will focus on the further development of central digital services, autonomous driving, infotainment, cloud services and data processing. Responsibility and control over the software will lie more strongly with the brands.

Another important success was the future package for Volkswagenwhich forms the basis for an economically successful future for the German sites. The key points are the reduction of overcapacities in Germany, the reduction of labor costs, the increase in productivity and competitive plant costs.

Despite these challenges and restructuring measures, the Group was able to generate Group sales of almost 325 billion euros and an operating result of 19.5 billion euros. were achieved. Blume emphasized the resilience and the will to shape of the company. Based on these results, a dividend of Annual General Meeting a dividend of 6.36 euros per preference share which corresponds to a payout ratio of 30% of net profit.

Arno Antlitz presented the financial details for 2024 and the outlook for 2025. vehicle sales amounted to 9 million units, a decrease of 3% compared to the previous year. The turnover increased slightly by 1% to around 325 billion euros. The operating result fell by 15 % to 19.1 billion euros, which corresponds to an operating margin of 5.9%. corresponds to an operating margin of 5.9 %. The result was burdened by costs for new products, increased fixed costs and restructuring expenses of around 3 billion euros.

The net cash flow in the Automotive Division exceeded expectations and amounted to 5 billion euros. The net liquidity remained at a solid level of 36.1 billion euros.

For the year 2025 Antlitz expects a significant tailwind from the renewed model portfolio and a slightly positive volume trend outside China. The implementation of the future package for Volkswagen and continued cost discipline should have a positive impact. However, the expansion of BEV volumesvolumes, particularly in Europe, as well as start-up costs for new models and battery activities will have a negative impact on earnings. Overall, a sales growth of up to 5 % is expected, with an operating return on sales of between 5.5% and 6.5with the first quarter expected to be lower-margin. The investment ratio in the automotive sector should be between 12% and 13%, and the net cash flow is expected to be in the range of EUR 2 to 5 billion. This outlook does not take into account the potential impact of customs duties, changes in CO2 regulations or further restructuring measures.

In the subsequent Q&A, the analysts asked various questions, which I would like to summarize thematically here:

Strategy and execution: Tim Rokossa from Deutsche Bank asked whether execution was now the main priority after products, partners and costs. Oliver Blume emphasized that after 2.5 challenging years and extensive restructuring, the focus is now on accelerating the implementation is now the focus. The programs are on schedule and in many cases faster than expected.

Cash flow and margins: Rokossa asked about free cash flow and the stronger start to the year. Arno Antlitz explained that the 2025 free cash flow will be reduced by restructuring expenses of 2 billion euros and continued high investments. In addition, the lower result of the Chinese joint ventures would have an impact on the dividend and therefore on cash flow. The stronger start to the year is due to a significant increase in the share of BEV which is reducing margins in the short term. Mike Tyndall from HSBC asked about the further burdens the BEV mix that are limiting operating profit growth. Antlitz referred to higher depreciation due to the investments made.

CO2 regulation: George Galliers-Pratt from Goldman Sachs addressed the European CO2 regulation regulation. Oliver Blume was positive about a possible adjustment that could bring more flexibility for 2025. Further discussions on more flexibility are also underway for the 2030 and 2035 targets.

Investments and capital allocation: Patrick Hummel from UBS discussed the reduction of the 5-year investment plan and and possible higher distributions in the future. Arno Antlitz emphasized that the initial focus was on achieving the targets set, in particular the reduction of R&D and investment expenditure to 10% by 2027. A possible increase in the payout ratio could be discussed in one to two years.

China strategy: Several analysts asked about the China strategy. Blume reiterated the "in China, for China" strategy and the successful cooperation with local partners. Antlitz explained that conscious decisions are being made in China between margin and market share and that a further decline in market share is expected in 2025 before the company intends to attack again with new products from 2026.

Software and partnerships: Horst Schneider from Bank of America inquired about the progress of the progress of the software partnerships with Rivian and Xiaopeng. Blume was satisfied with the progress. The first Volkswagen models are to be launched on the market with Xiaopeng in 2026 and work is being carried out jointly on a Volkswagen China platform. Rivian is on schedule, with the first vehicles for winter tests in 2025/2626.

CARIAD and PowerCo: Harald Hendrikse from Bank of America asked about the outlook for outlook for the losses of CARIAD and PowerCo and when they might reach the break-even point. Arno Antlitz promised to provide more detailed information on this at the next event in Frankfurt.

My impression from the analysts' conference is that Volkswagen AG is undergoing a challenging transformation process process, but solid results for 2024 were able to present. The strategic decisions seem to be bearing fruit, even though the challenges in the global market continue to exist. The focus for 2025 is clearly on cost efficiency, the successful launch of new models and strengthening our presence in China and North America.

Overall, the management appeared focused and determinedto achieve the targets set. The coming quarters will show to what extent the ambitious plans can be implemented.

Good morning ,

$VOW (+1%) was able to minimize a few losses. I am now back in the green. What do you think - hold or sell?

Biontech $BNTX (+1,95%) has high hopes for its new drug candidate BNT327, which is being developed for the treatment of advanced cancer. This innovative approach aims to combat the tumor-related effects that weaken the body's own immune system. The acquisition of the Chinese company Biotheus secured Biontech the worldwide rights to this promising drug. But while the future looks promising, the Mainz-based company is facing a significant net loss of around 700 million euros in 2024. This continues the decline that began with the declining business around the Covid-19 vaccine. In 2022, Biontech was still able to record a profit of around 9.4 billion euros, but in 2023 this fell dramatically to only around 930 million euros. This is a clear indication that the company is in a transition phase and needs to develop new strategies to get back on the road to success.

In Germany, Volkswagen $VOW (+1%) is providing positive news for its employees: they can look forward to uncapped bonuses this year! Despite an ongoing austerity program and an agreement with IG Metall, which temporarily suspends profit sharing from 2026, the bonus for 2024 remains unaffected. Head of the Works Council Daniela Cavallo announced at the last works meeting that the bonus will continue to be paid in full. However, the exact amount of the bonus is still unclear, as it depends on the previous year's profit, which is to be published on March 11. Volkswagen has revised its profit forecast for 2024 downwards several times in recent months and now expects an operating profit of 18 billion euros. Despite the uncertainties and challenges, the company remains committed not only to supporting its employees, but also to keeping their motivation high.

Sources:

https://www.spiegel.de/wirtschaft/biontech-teure-entwicklung-von-krebsmedikamenten-fuehrt-zu-stellenabbau-a-23a1a698-7b5c-465d-bd3f-01032ea3288d

https://www.spiegel.de/wirtschaft/volkswagen-vw-mitarbeiter-duerfen-mit-praemien-in-voller-hoehe-rechnen-a-51abf27a-b728-4a48-8cc1-7c4c04c2ffd4

...while vehicle sales fall by 2.3 percent to 9.03 million models. Chief Human Resources Officer Gunnar Kilian announces further sausage variants after new products such as the hot dog sausage contributed to the success. (no satire) $VOW (+1%)

Good evening, what do you think of the $VOW (+1%) id.every1? Do you think it could be something?

my opinion is that the car looks cool and fortunately it's inexpensive, but why not until 2027? That's too late to keep it competitive!

here is an article from the SZ:

https://www.sueddeutsche.de/wirtschaft/autoindustrie-das-elektroauto-auf-das-die-ganze-welt-gewartet-hat-li.3213383

VW plans emergency plan due to US tariffs

In the USA, Volkswagen has $VOW (+1%) has activated a comprehensive emergency plan due to new tariffs against Mexico, which comes as a surprise to many observers. These strategic measures are designed to protect business and supply chains in the USA. VW operates a large plant in Puebla, Mexico, which is critical to the production of models for the US market. The tariffs are already having a noticeable impact on the automotive industry and dealers in the United States. An open appeal to US President Donald Trump emphasizes the need to reconsider the tariffs as they could potentially have a negative impact on jobs and economic growth in the US. Nevertheless, VW shares were unimpressed by possible tariffs on Wednesday and rose by around 4%.

Eutelsat share price jumps

The Eutelsat share $ETL (-4,27%) made an impressive leap on Wednesday, leaving even experienced investors in awe. Since last Friday, the French-British satellite group, which is pushing its OneWeb systems onto the market, has gained almost 200% in value. Yesterday, the share price shot up by up to 123% to EUR 4.50 before settling at EUR 3.57, an increase of around 77%. And that's not all: today the share price surpassed the magical EUR 5 mark and reached EUR 5.87, its highest level since July last year. A week ago, the share price was still below 1.15 euros - a dramatic rise that has analysts sitting up and taking notice. They see Eutelsat's OneWeb systems as a promising European alternative to Elon Musk's Starlink, especially when it comes to supplying Ukraine with communication services.

SMA Solar targets profit

In Germany, SMA Solar $S92 (+7,45%) is putting its cards on the table and has ambitious plans to return to profit following an operating loss last year. CEO Jürgen Reinert has set the target of achieving EBITDA of €70 million to €110 million by 2025, which is in line with analysts' expectations. However, the road ahead is rocky: an operating loss of EUR 16 million is forecast for 2024, a severe setback after an impressive profit of EUR 311 million in the previous year. The share price jumped 23.90% to EUR 16.95 in the morning, boosted by the prospect of a historic financial package in Germany that promotes investment in energy technology. In order to reduce costs and streamline the corporate structure, SMA is also planning a cost-cutting program that could potentially result in the elimination of up to 1,100 jobs.

Sources:

https://www.finanzen.net/nachricht/aktien/appell-an-trump-volkswagen-aktie-in-gruen-vw-aktiviert-notfallplan-in-usa-14293023

https://www.finanzen.net/nachricht/aktien/hoehenflug-eutelsat-aktie-weiter-im-rallymodus-hoffnung-auf-starlink-alternative-und-unterstuetzung-fuer-ukraine-treiben-14292935

https://www.finanzen.net/nachricht/aktien/vorlaeufige-zahlen-sma-solar-aktie-schiesst-hoch-erwartung-operativer-gewinne-fuer-2025-nach-verlustjahr-2024-14292311

The EU Commission wants to make it easier for European car manufacturers to meet the climate targets for 2025. This was announced by EU Commission President Ursula von der Leyen (CDU) at a press conference on Monday. She had previously met with industry representatives in Brussels to discuss the current situation in the industry.

The solution is to be a so-called "quick fix" for the industry, which is to be presented as early as this month. According to this, the CO2 targets for 2025, 2026 and 2027 are to be combined into one compensation period. Achieving the targets on an annual basis is therefore off the table.

This caused a clear market reaction on the stock exchange. Shares in German car manufacturers benefited in particular, all of which rose by more than two percent. The shares of $DTG (+2,02%) Daimler Truck and $VOW (+1%) Volkswagen rose the most, each by more than five percent. Also $BMW (+0,08%) BMW, $MBG (+0,46%) Mercedes Benz and $P911 (-0,77%) Porsche also participated with rising share prices.

On Wednesday, von der Leyen will officially present the action plan for the automotive industry, which was jointly developed in the Strategic Dialogue and will include further measures such as the expansion of the charging infrastructure. In addition, money is to be made available for a social leasing program via the Climate Social Fund.

Source (excerpt): Handelsblatt, 03.03.25 | Graphic: ChatGPT

Dear Community,

I have a 300k securities account with 50% shares, divided between $AAPL (+1%)
$ALV (+1,19%)
$AMZN (+1,21%)
$NOVO B (+0,6%) and some $VOW (+1%) the other 50% in ETFs, split between $CSPX (+1,3%)
$EXUS (+1,44%)
$NADQ (+1,58%) and something $DE000LS9U6W1 (+3,01%) ...

A strong US (tech) focus is desirable. Not because I believe that the USA does a lot of things right, but shareholder & shareholder value primarily have an influence on entrepreneurship in the USA, ok and the Mag7++ have a top position in other ETFs anyway.

I use the MSCI EX USA to shift the focus away from/to the USA as required.

I have built up this status quo over the last 2 years, after having a lot of individual stocks in the years before and following the "greed eats brains" strategy with some losses (see other post).

Now I would like to read your opinion or collect a few points of view, knowing that there is not THE right one. In the near future I will receive an inheritance of around 400,000 euros. Now I am torn. No, I don't really know what to do. My reflex was "keep going and split up if you're happy with the above strategy/allocation", but perhaps more asset classes could be included with this sum .... and/or more focus on crypto, or more diversification or or or or .... Or everything on GTAA , @Epi :-D hehe - What do you think?

PS: I am 58, IT manager, EFH paid for, 2 children, studies feddich. Controlled build-up with withdrawal plan start in about 5 years. Shift from 50% individual stocks to 75% ETF planned in 2025.

The discussion about the dividend at Volkswagen $VOW (+1%) is becoming more heated. During the current labor disputes, employees are demanding that shareholders, such as major shareholder Wolfgang Porsche, also bear part of the burden. An agreement is now emerging that will mean less dividends for shareholders - but only a small step.

Interestingly, the board members are also waiving part of their salaries in order to take the pressure off the employees. These measures are part of a larger negotiation process that focuses on both the financial stability of the company and employee satisfaction.

How do you feel about these compromises? Is it fair that shareholders and board members also have to make sacrifices in difficult times? 🤔