Slide 1: Capital Market Presentation Q3 and January-September 2019
Capital Market Presentation Q3 and January-September 2019 Harald Wilhelm Member of the Board of Management Finance & Controlling and Daimler Mobility October 24, 2019
Slide 2: Contents
Contents Presentation charts on Q3 and January-September 2019 results Additional financial details Daimler AG Capital Market Presentation Q3 and January-September 2019 / October 24, 2019 / Page 2
Slide 3: Highlights of Q3 2019
Highlights of Q3 2019 • Strong Q3 sales for Mercedes-Benz Cars and Vans • Acquisition of a majority interest in Torc Robotics completed • BAIC investment in Daimler supports long-term partnership • Administrative offense proceedings of the Stuttgart district attorney’s office against Daimler AG full
Slide 4: Market developments in Q3 2019
Market developments in Q3 2019 • Premium car segment proves more resilient again in Q3 vs. global passenger car market decline • Mercedes-Benz Cars sales volume increased 8% in Q3, raising YTD unit sales to prior-year level • Favorable truck market volume in NAFTA and Brazil; weaker demand in EU30;
Slide 5: Financial performance in Q3 2019
Financial performance in Q3 2019 Unit sales Revenue Free cash flow (ind. business) in thousands of units in billions of euros in billions of euros 839 43.3 795 40.2 -0.1 +6% +8% -0.5 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q1-Q3 2018 Q1-Q3 2019 EBIT Net profit Earnings per share in billions of euros in bill
Slide 6: Group EBIT in Q3 2019
Group EBIT in Q3 2019 in millions of euros +1,167 -163 -628 • Cars -184 • Vans -52 • Trucks +48 • Buses +25 +21 -45 -185 • Cars -585 +39 2,694 2,655 2,488 • Vans +114 • Cars: • Trucks: • Trucks -139 • Buses Investment Takata • Cars +1,004 -18 in Aston airbags +39 • Vans +145 Martin -185 • Trucks -23
Slide 7: Net industrial liquidity
Net industrial liquidity in billions of euros Free cash flow industrial business January-September 2019: minus €0.5 billion +5.4 -7.6 +5.4 -3.5 16.3 -3.2 13.1 -0.2 -3.5 +0.5 9.6 Net industrial Effects from Net industrial Earnings and Working Depreciation and Additions to Investments in Dividend Othe
Slide 8: Mercedes-Benz Cars
Mercedes-Benz Cars Unit sales Revenue EBIT in thousands of units in billions of euros in millions of euros 605 23.5 1,423 560 21.7 1,372 +8% +9% +4% Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Daimler AG Capital Market Presentation Q3 and January-September 2019 / October 24, 2019 / Page 8
Slide 9: Mercedes-Benz Cars: EBIT
Mercedes-Benz Cars: EBIT in millions of euros + 51 6.3%* 6.0%* 5.5%* Remeasurement of the Higher unit sales 1,372 investment in Aston Martin 1,423 Net pricing 1,187 Foreign exchange rates Higher expenses for new technologies and product costs EBIT Q3 2018 EBIT Disclosed items EBIT before disclosed Q
Slide 10: Mercedes-Benz Vans
Mercedes-Benz Vans Unit sales Revenue EBIT in thousands of units in billions of euros in millions of euros 113 100.3 3.5 91.4 3.0 +10% +15% -93 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Daimler AG Capital Market Presentation Q3 and January-September 2019 / October 24, 2019 / Page 10
Slide 11: Mercedes-Benz Vans: EBIT
Mercedes-Benz Vans: EBIT in millions of euros + 206 Higher unit sales 3.2%* Model mix 113 Governmental proceedings and measures relating to diesel vehicles in Q3 2018 Higher expenses for new products and product-related cost -93 Foreign exchange rates -3.1%* EBIT EBIT Q3 2018 Q3 2019 * Return on sal
Slide 12: Daimler Trucks
Daimler Trucks Unit sales Revenue EBIT in thousands of units in billions of euros in millions of euros 136 10.3 850 125 10.0 774 -8% +3% -9% Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Daimler AG Capital Market Presentation Q3 and January-September 2019 / October 24, 2019 / Page 12
Slide 13: Daimler Trucks: EBIT
Daimler Trucks: EBIT in millions of euros - 76 8.5%* Net pricing Remeasurement of risks Foreign exchange rates in connection with Takata 7.5%* 7.1%* 850 airbags Lower unit sales especially in 774 735 the EU30 and Asia region Higher expenses for new technologies and future products EBIT Disclosed ite
Slide 14: Daimler Trucks: Incoming Orders
Daimler Trucks: Incoming Orders in thousands of units 129 11 40 92 7 Rest of world 9 35 Asia 51 12 Latin America 26 NAFTA region 18 12 EU30* Q3 2018 Q3 2019 * European Union, Switzerland and Norway Daimler AG Capital Market Presentation Q3 and January-September 2019 / October 24, 2019 / Page 14
Slide 15: Daimler Buses
Daimler Buses Unit sales Revenue EBIT in thousands of units in billions of euros in millions of euros 9.0 1.2 79 7.7 1.1 +16% +16% +163% 30 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Daimler AG Capital Market Presentation Q3 and January-September 2019 / October 24, 2019 / Page 15
Slide 16: Daimler Buses: EBIT
Daimler Buses: EBIT in millions of euros + 49 6.4%* Higher unit sales in EU30 region and Brazil 79 Foreign exchange rates 2.8%* 30 EBIT EBIT Q3 2018 Q3 2019 * Return on sales Daimler AG Capital Market Presentation Q3 and January-September 2019 / October 24, 2019 / Page 16
Slide 17: Daimler Mobility
Daimler Mobility New business Contract volume EBIT in billions of euros in billions of euros in millions of euros 18.3 154.1 160.4 413 16.6 392 +10% +4% +5% Q3 2018 Q3 2019 12/31/2018 9/30/2019 Q3 2018 Q3 2019 Daimler AG Capital Market Presentation Q3 and January-September 2019 / October 24, 2019 /
Slide 18: Daimler Mobility: EBIT
Daimler Mobility: EBIT in millions of euros + 21 12.5%* 11.9%* Higher interest result 413 392 Higher contract volume Normalization of cost of risk Higher expenses for new mobility solutions EBIT EBIT Q3 2018 Q3 2019 * Return on equity Daimler AG Capital Market Presentation Q3 and January-September 2
Slide 19: Assumptions for automotive markets in 2019
Assumptions for automotive markets in 2019 Global slight decrease Europe slight decrease Car markets USA slight decrease China slight decrease EU30 slight growth in the midsize and large segment Van markets USA slight growth NAFTA region slight growth Heavy- and EU30 slight decrease medium-duty Japa
Slide 20: 2019 sales outlook
2019 sales outlook Unit sales at the prior-year level Momentum from an increased product availability in the second half of the year Mercedes-Benz Cars Slightly higher unit sales Growth in the United States and in EU30 region; lower unit sales in Russia and Turkey Mercedes-Benz Vans Additional momen
Slide 21: 2019 outlook for Group EBIT and divisional RoS/RoE
2019 outlook for Group EBIT and divisional RoS/RoE We expect Group EBIT for FY 2019 to be significantly below the prior-year level Return on sales in the range of 3 to 5% Mercedes-Benz Cars Return on sales in the range of minus 15 to minus 17% Mercedes-Benz Vans Return on sales in the range of 6 to
Slide 22: Contents
Contents Presentation charts on Q3 and January-September 2019 results Additional financial details Daimler AG Capital Market Presentation Q3 and January-September 2019 / October 24, 2019 / Page 22
Slide 23: Unit sales by division
Unit sales by division in thousands of units Q3 2018 Q3 2019 % change Daimler Group 794.7 839.3 +6 of which Mercedes-Benz Cars 559.5 604.7 +8 Mercedes-Benz Vans 91.4 100.3 +10 Daimler Trucks 136.1 125.4 -8 Daimler Buses 7.7 9.0 +16 Daimler AG Capital Market Presentation Q3 and January-September 2019
Slide 24: Revenue by division
Revenue by division in billions of euros Q3 2018 Q3 2019 % change Daimler Group 40.2 43.3 +8 of which Mercedes-Benz Cars 21.7 23.5 +9 Mercedes-Benz Vans 3.0 3.5 +15 Daimler Trucks 10.0 10.3 +3 Daimler Buses 1.1 1.2 +16 Daimler Mobility 6.4 7.1 +11 Daimler AG Capital Market Presentation Q3 and Januar
Slide 25: Revenue by region
Revenue by region in billions of euros Q3 2018 Q3 2019 % change Daimler Group 40.2 43.3 +8 of which Europe 16.2 17.3 +7 of which Germany 5.9 6.6 +11 NAFTA 11.7 13.1 +11 of which United States 10.1 11.4 +13 Asia 9.7 10.3 +7 of which China* 4.7 4.6 -2 Other markets 2.6 2.6 -3 * excluding revenue of no
Slide 26: EBIT by division
EBIT by division EBIT in millions of euros; RoS/RoE in % Q3 2018 Q3 2019 EBIT RoS/RoE* EBIT RoS/RoE* Daimler Group 2,488 6.2 2,694 6.3 of which Mercedes-Benz Cars 1,372 6.3 1,423 6.0 Mercedes-Benz Vans -93 -3.1 113 3.2 Daimler Trucks 850 8.5 774 7.5 Daimler Buses 30 2.8 79 6.4 Daimler Mobility 392 1
Slide 27: Key balance sheet and financial figures
Key balance sheet and financial figures in billions of euros Daimler Group Dec. 31, 2018 Sept. 30, 2019 Equity ratio 22.2% 20.6% Gross liquidity 25.4 26.0 Funded status of pension obligations -6.2 -10.5 Funding ratio 80% 72%* Industrial business Equity ratio 42.8% 36.3% Net liquidity 16.3 9.6 Free c
Slide 28: Consolidated statement of income (condensed)
Consolidated statement of income (condensed) in millions of euros Daimler Group Industrial Business Q3 2018 Q3 2019 Q3 2018 Q3 2019 Revenue 40,211 43,270 33,826 36,184 Cost of sales -32,247 -34,596 -26,686 -28,416 Gross profit 7,964 8,674 7,140 7,768 Selling expenses -3,191 -3,136 -2,963 -2,941 Gene
Slide 29: Statement of cash flows (condensed)
Statement of cash flows (condensed) in millions of euros Daimler Group Industrial Business Q1-Q3 2018 Q1-Q3 2019 Q1-Q3 2018 Q1-Q3 2019 Cash provided by operating activities -830 6,560 6,629 8,217 of which: Profit before income taxes 8,122 3,526 7,119 1,480 Depreciation and amortization/impairments 4
Slide 30: Statement of financial position (condensed)
Statement of financial position (condensed) in millions of euros Daimler Group Industrial Business Dec. 31, 2018 Sept. 30, 2019 Dec. 31, 2018 Sept. 30, 2019 Intangible assets 14,801 15,874 13,913 14,985 Property, plant and equipment 30,948 36,665 30,859 36,311 Receivables from financial services & e
Slide 31: Financial flexibility over a 12-month period
Financial flexibility over a 12-month period in billions of euros 55.4 55.1 Other, incl. finance lease Commercial ABS paper potential Bank loans The financial flexibility provides support to mitigate risk and volatility through a balanced mix of funding instruments and clear principles Credit facili
Slide 32: Mercedes-Benz Cars: unit sales by segments
Mercedes-Benz Cars: unit sales by segments in thousands of units 605 560 23 smart 7 Sports Cars 31 4 197 SUVs 195 18 S-Class 17 105 E-Class 99 110 C-Class 111 145 A-/B-Class 102 Q3 2018 Q3 2019 Daimler AG Capital Market Presentation Q3 and January-September 2019 / October 24, 2019 / Page 32
Slide 33: Mercedes-Benz Cars: unit sales by regions
Mercedes-Benz Cars: unit sales by regions in thousands of units 605 560 103 Rest of world 91 168 Europe 151 excl. Germany 72 85 Germany 76 76 United States 170 173 China Q3 2018 Q3 2019 Daimler AG Capital Market Presentation Q3 and January-September 2019 / October 24, 2019 / Page 33
Slide 34: Mercedes-Benz Cars: unit sales in China
Mercedes-Benz Cars: unit sales in China in thousands of units imported locally produced 678 619 193 515 488 196 90 400 171 293 150 485 423 425 147 317 250 146 2014 2015 2016 2017 2018 2019 YTD 09 Daimler AG Capital Market Presentation Q3 and January-September 2019 / October 24, 2019 / Page 34
Slide 35: Mercedes-Benz Vans: unit sales by segments
Mercedes-Benz Vans: unit sales by segments in thousands of units 100.3 91.4 52.4 Sprinter 49.3 20.7 25.3 Vito 13.3 15.8 V-Class 2.5 3.2 X-Class 5.7 3.7 Citan Q3 2018 Q3 2019 Daimler AG Capital Market Presentation Q3 and January-September 2019 / October 24, 2019 / Page 35
Slide 36: Daimler Trucks: unit sales by regions
Daimler Trucks: unit sales by regions in thousands of units 136 9 125 6 Rest of world 42 34 Asia 10 12 Latin America 53 53 NAFTA region 22 20 EU30* Q3 2018 Q3 2019 * European Union, Switzerland and Norway Daimler AG Capital Market Presentation Q3 and January-September 2019 / October 24, 2019 / Page
Slide 37: Daimler Buses: unit sales by regions
Daimler Buses: unit sales by regions in thousands of units 9.0 7.7 1.0 Rest of world 1.3 1.2 Latin America (excl. Brazil and Mexico) 1.2 3.5 Brazil 2.3 0.9 0.8 Mexico 2.1 2.5 EU30* Q3 2018 Q3 2019 * European Union, Switzerland and Norway Daimler AG Capital Market Presentation Q3 and January-Septembe
Slide 38: Daimler Mobility: contract volume
Daimler Mobility: contract volume in billions of euros 160.4 154.1 33.7 34.9 Africa & Asia-Pacific 56.1 59.7 Americas 38.0 39.9 Europe (excl. Germany) 26.2 25.8 Germany 12/31/2018 9/30/2019 Daimler AG Capital Market Presentation Q3 and January-September 2019 / October 24, 2019 / Page 38
Slide 39: Daimler Mobility: net credit losses
Daimler Mobility: net credit losses* 0.89% 0.83% 0.69% 0.68% 0.61% 0.50% 0.51% 0.36% 0.43% 0.34% 0.37% 0.31% 0.31% 0.24% 0.26% 0.21% 0.21% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD * as a percentage of portfolio, subject to credit risk Daimler AG Capita
Slide 40: YOUR NOW Joint Ventures
YOUR NOW Joint Ventures The Mobility Powerhouse 09/2019 YTD Interactions in millions 421 199 26.3 25.4 171* 0.19 Customers** in millions >83 35.1 >4 8.4 36.0* 0.03 Cities** >1,300 140 31 19 >1,300* n/a GMV RR*** in bn € 3.5 * For U.S. entity of PARK NOW, September 2019 figure estimated ** Partially,
Slide 41: Disclaimer
Disclaimer This document contains forward-looking statements that reflect our current views about future events. The words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” “may,” ”can,” “could,” “plan,” “project,” “should” and similar expressions are used to identify forward-lookin