Slide 1: Corporate Presentation
July 12, 2019 Corporate Presentation
Slide 2: Contents
Contents Group Financials Divisional Information Outlook Daimler Group Strategy Funding Appendix Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 2
Slide 3: Key figures
Key figures Unit sales Revenue in thousands of units in billions of euros World premiere of the new CLA Coupe and CLA Shooting Brake 807 774 39.8 39.7 -4% -0% Presentation of the upgraded GLC and GLC Coupe World premiere of the Vision URBANETIC and the Concept EQV as Q1 2018 Q1 2019 Q1 2018 Q1 2019
Slide 4: High level of net liquidity
High level of net liquidity Free cash flow industrial business 16.3 -3.2 Q1 2019: minus €2.0 billion 13.1 +0.4 -2.4 -0.0 +0.2 11.3 Net industrial Effects from Net industrial Earnings and Working capital M&A effects Other Net industrial liquidity initial application liquidity other cash flow impact l
Slide 5: Net liquidity impacted by initial application of IFRS 16 and higher working capital
Net liquidity impacted by initial application of IFRS 16 and higher working capital Impact of €3.2 billion due to initial application of IFRS 16 for lessee accounting: Recognition of right-of-use assets and lease liabilities leads to a one-time increase of financing liabilities stated in the balance
Slide 6: Contents
Contents Group Financials Divisional Information Outlook Daimler Group Strategy Funding Appendix Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 6
Slide 7: Mercedes-Benz Cars
Mercedes-Benz Cars Unit sales Revenue EBIT in thousands of units in billions of euros in millions of euros 594 23.0 2,060 555 21.2 1,298 -7% -8% -37% Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 7
Slide 8: Mercedes-Benz Cars: sales decrease due to life cycle effects and model changes
Mercedes-Benz Cars: sales decrease due to life cycle effects and model changes in thousands of units 594 30 555 5 30 smart 6 Sports Cars 212 179 SUVs 23 17 S-Class 105 104 E-Class 120 111 C-Class 98 109 A-/B-Class Q1 2018 Q1 2019 Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 8
Slide 9: Mercedes-Benz Cars: EBIT
Mercedes-Benz Cars: EBIT in million euros - 762 9.0%* 2,060 Lower unit sales and less favorable model mix Net pricing 6.1%* Foreign exchange rates 1,298 Higher expenses for new technologies and future products EBIT EBIT Q1 2018 Q1 2019 * Return on sales Daimler AG Daimler Corporate Presentation / Ju
Slide 10: Mercedes-Benz Vans
Mercedes-Benz Vans Unit sales Revenue EBIT in thousands of units in billions of euros in millions of euros 97.0 3.4 172 93.0 3.1 +4% +9% -98 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 10
Slide 11: Mercedes-Benz Vans: sales increase by 4%
Mercedes-Benz Vans: sales increase by 4% mainly due to higher demand for the Sprinter in thousands of units 97.0 93.0 41.3 49.4 Sprinter 27.0 24.8 Vito 15.7 13.6 V-Class 3.2 3.7 X-Class 5.9 5.5 Citan Q1 2018 Q1 2019 Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 11
Slide 12: Mercedes-Benz Vans: EBIT
Mercedes-Benz Vans: EBIT in millions of euros - 270 Higher unit sales 5.6%* Expenses related to the adjustment of production capacities in Argentina and Russia 172 Higher expenses for new technologies and future products Warranty and goodwill costs Foreign exchange rates Governmental proceedings and
Slide 13: Daimler Trucks
Daimler Trucks Unit sales Revenue EBIT in thousands of units in billions of euros in millions of euros 114 116 9.5 647 8.6 582 +2% +11% -10% Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 13
Slide 14: Daimler Trucks: sales increase by 2% mainly driven by NAFTA region
Daimler Trucks: sales increase by 2% mainly driven by NAFTA region in thousands of units 114 116 9 6 Rest of world 34 Asia 38 9 Latin America 9 48 NAFTA region 41 17 19 EU30* Q1 2018 Q1 2019 * European Union, Switzerland and Norway Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 14
Slide 15: Daimler Trucks: significant decrease in incoming orders
Daimler Trucks: significant decrease in incoming orders mainly driven by NAFTA region in thousands of units 184 12 51 8 101 6 Rest of world 39 Asia 89 9 Latin America 27 NAFTA region 24 20 EU30* Q1 2018 Q1 2019 * European Union, Switzerland and Norway Daimler AG Daimler Corporate Presentation / July
Slide 16: Daimler Trucks: EBIT
Daimler Trucks: EBIT in millions of euros - 65 7.5%* Higher unit sales especially in the NAFTA region 6.1%* 647 Foreign exchange rates 582 Higher expenses for new technologies and future products Higher costs, mainly related to raw material and supply chain constraints Valuation of provisions EBIT E
Slide 17: Daimler Buses
Daimler Buses Unit sales Revenue EBIT in thousands of units in billions of euros in millions of euros 37 5.7 5.5 0.9 0.8 -4% -8% -21 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 17
Slide 18: Daimler Buses: sales decrease by 4%
Daimler Buses: sales decrease by 4% despite higher demand in Brazil and India in thousands of units 5.7 5.5 0.7 1.1 Rest of world 1.2 0.9 Latin America (excl. Brazil and Mexico) 1.9 2.2 Brazil 0.5 0.4 Mexico 1.4 0.9 EU30* Q1 2018 Q1 2019 * European Union, Switzerland and Norway Daimler AG Daimler Co
Slide 19: Daimler Buses: EBIT
Daimler Buses: EBIT in millions of euros - 58 4.4%* 37 Delivery delays caused by a changed internal certification process for coaches and intercity buses -21 -2.7%* EBIT EBIT Q1 2018 Q1 2019 * Return on sales Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 19
Slide 20: Daimler Financial Services
Daimler Financial Services New business Contract volume EBIT in billions of euros in billions of euros in millions of euros 17.9 17.3 154.1 157.4 1,209 -3% +2% 548 +121% Q1 2018 Q1 2019 12/31/2018 3/31/2019 Q1 2018 Q1 2019 Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 20
Slide 21: Daimler Financial Services: slight increase in contract volume
Daimler Financial Services: slight increase in contract volume in billions of euros 154.1 157.4 33.7 35.0 Africa & Asia-Pacific 56.1 57.1 Americas 38.0 38.8 Europe (excl. Germany) 26.2 26.4 Germany 12/31/2018 3/31/2019 Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 21
Slide 22: Daimler Financial Services: EBIT
Daimler Financial Services: EBIT in millions of euros + 661 35.7%* Merger of mobility services of Daimler and BMW 1,209 Higher contract volume 17.9%* Higher interest-rate level 548 Cost of risk in some markets EBIT EBIT Q1 2018 Q1 2019 * Return on equity Daimler AG Daimler Corporate Presentation / J
Slide 23: Contents
Contents Group Financials Divisional Information Outlook Daimler Group Strategy Funding Appendix Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 23
Slide 24: Assumptions for automotive markets in 2019
Assumptions for automotive markets in 2019 Global around the prior-year level Europe around the prior-year level Car markets USA slight decrease China slight decrease NAFTA region around the prior-year level Medium- and EU30 around the prior-year level heavy-duty truck Japan* around the prior-year l
Slide 25: 2019 sales outlook
2019 sales outlook Slightly higher unit sales Further Successgrowth based on particularly attractive in and China innovative model portfolio Mercedes-Benz Cars Strong momentum from athe dozen widenew range andof upgraded attractivevehicles and innovative vehicles Significantly Slightly higher higher
Slide 26: 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 prior year level. Return on sales in the range of 3 to 5% Mercedes-Benz Cars Return on sales in the range of 7 to 9% Daimler Trucks Return on sales in the range of -15 to -17% Mercedes-Benz
Slide 27: Improving future profits to invest in future technologies
Improving future profits to invest in future technologies and sustainably achieve our target margins Sustainable return to Sustainable achievement of target RoS level target RoS range and exploitation of additional potential 10% 9% 8% over 8% 8% the cycle 7% 6% Mercedes-Benz Daimler Cars & Vans Truc
Slide 28: Contents
Contents Group Financials Divisional Information Outlook Daimler Group Strategy Funding Appendix Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 28
Slide 29: Daimler has set the course for a successful future
Daimler has set the course for a successful future Profitable CORE business Strategic CASE business CUSTOMER COMPANY structure CULTURE change Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 29
Slide 30: A sustainable business strategy: Ambition 2039
A sustainable business strategy: A M B I T I O N 2 0 3 9 We aim to have a carbon-neutral new passenger car fleet in 20 years. 2030 2039 a transformation within less than 3 product cycles We want to offer our customers a carbon-neutral driving experience. 2030 2039 50% xEV (BEV & Plug-in) carbon-neut
Slide 31: Investment to remain at a high level
Investment to remain at a high level as a basis for profitable growth and development of future mobility in billion euros 16.6 16.4 15.5 13.5 Investment in 11.6 7.5 7.3 property, plant 6.7 and equipment 10.5 Research and 8.7 9.1 9.2 development expenditure Actual Actual Actual Actual Actual Plan 201
Slide 32: Mercedes-Benz Cars & Vans
Mercedes-Benz Cars & Vans Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 32
Slide 33: Exciting and promising future ahead of us
Exciting and promising future ahead of us CORE Electric Connected Autonomous Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 33
Slide 34: Mercedes-Benz Cars: globally balanced sales structure
Mercedes-Benz Cars: globally balanced sales structure in thousands of units 594 555 100 83 Rest of world 166 157 Europe excl. Germany 79 78 Germany 70 64 United States 179 173 China Q1 2018 Q1 2019 Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 34
Slide 35: Mercedes-Benz Cars in China: continued strong sales growth
Mercedes-Benz Cars in China: continued strong sales growth with higher share of locally produced vehicles in thousands of units imported locally produced 678 619 193 488 196 400 171 293 150 485 423 147 173 317 28 250 146 145 2014 2015 2016 2017 2018 2019 YTD 03 Daimler AG Daimler Corporate Presentat
Slide 36: Made in China for China: five car models at BBAC
Made in China for China: we are producing five car models and three engine models at BBAC + M270 E-Class (V 213) Rear wheel drive GLC (V253) As announced in July 2017, a M264 localized BEV model under EQ C-Class (V/W 205) brand will be produced in BBAC … M274 GLA (X156) A-Class L Sedan (Z177) Daimle
Slide 37: Daimler and Geely Holding form global joint venture to develop smart
Daimler and Geely Holding form global joint venture to develop smart 50:50 joint venture between Daimler and Geely based in China to develop and operate smart brand globally as all electric carmaker smart joint venture to gain shared expertise in manufacturing, engineering and design from both group
Slide 38: Vehicle architecture and modular strategy
With vehicle architecture and modular strategy, we aim at being more cost efficient, faster and more flexible Powertrain E/E Chassis Exterior Interior Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 38
Slide 39: High degree of modularity of the entire drive train
High degree of modularity of the entire drive train Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 39
Slide 40: Development of CO2 emissions
Development of CO2 emissions Average CO2-emissions in g/km Mercedes-Benz Cars fleet in Europe 230 CO2-emissions in (g/km) 173 160 158 150 140 134 132 129 125 123 123 EU Legislation* 95 1995 … 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2020 * Target value for average weight of European fl
Slide 41: Degree of electrification
Overview CO2 reduction measures CO2 measures in and on the vehicle CO2 measures ICE powertrain Electrification of powertrain 0% Aerodynamics Energy recovery 48V-starting system (e.g. ISG) Efficient high-tech diesel and gasoline engines Degree of electrification Rolling resistance Eco-Mode, Intellige
Slide 42: Mercedes-Benz Cars and Vans: continued product offensive
Mercedes-Benz Cars and Vans: continued product offensive 2019 B-Class CLA 4-door Coupe CLA Shooting Brake smart (upgraded) GLE GLC & GLC Coupe EQC GLS GLB (upgraded) eVito V-Class eSprinter (upgraded) Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 42
Slide 43: Mercedes-Benz Cars' target: remain No.1 premium car brand
Mercedes-Benz Cars’ target: remain No.1 premium car brand Sales target Strategic target In thousand units Return on Sales in % 2,374 2,383 8-10% 2017 2018 2020 Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 43
Slide 44: Mercedes-Benz Vans' target
Mercedes-Benz Vans’ target: No. 1 provider of holistic transport and mobility solutions Sales target Strategic target In thousand units Return on Sales in % 401 421 9% over the cycle 2017 2018 2020 Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 44
Slide 45: CASE trends leading to fundamental changes in the automotive industry
CASE trends leading to fundamental changes in the automotive industry Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 45
Slide 46: Successful launch of MBUX in Compact Cars
Successful launch of MBUX in Compact Cars Touch Controls Touchscreen Hey Mercedes Speech Control Take Rate Take Rate Take Rate On-Board- High End Entry Navigation Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 46
Slide 47: Development steps towards fully automated driving
Development steps towards fully automated driving - Currently offered by MB Level 5 & legally permissible - Level 4 Level 3 Full Level 2 High Automation Level 1 Conditional Automation Partial Automation Driver Automation Assistance Vehicle can perform all Vehicle can perform all dynamic driving task
Slide 48: In the future - driver controlled and system controlled
In the future - driver controlled and system controlled Driver controlled System controlled Safety technologies and automated systems, Automated systems, which drive the vehicle from which are situational activated by the driver the starting point to the destination Daimler AG Daimler Corporate Pres
Slide 49: Daimler joined forces with Bosch
To stay ahead of competition, Daimler joined forces with Bosch + • Hardware (Sensors, • Vehicles Actuators, ECUs) System • Integration of • Software for HW Sensor Algorithms SW Infrastructure system into the components vehicle line Motion Control Testing Environment Fusion IT & Process Support Behav
Slide 50: San José first pilot testing city for automated driving in 2019
San José will become first pilot testing city for automated MOBILITY SERVICES driving in 2019 Start in H2 of 2019 with demonstration of autonomous service Automated MB S-Class vehicles mounted with latest AD Systems On-demand ride-hailing service to simulate a real-life operating scenario Day time o
Slide 51: Daimler AG and BMW Group to jointly develop automated driving
Daimler AG and BMW Group to jointly develop next- generation technologies for automated driving Scope of cooperation Goal of cooperation Next generation of technologies for driver assistance systems and • The joint development of a scalable system with series highly automated driving: maturity which
Slide 52: Vision URBANETIC
Vision URBANETIC - Mobility concept for needs-based, efficient and sustainable mobility Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 52
Slide 53: EQ - intelligent electromobility
EQ - intelligent electromobility. The new product and technology brand represents “emotion and intelligence”. Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 53
Slide 54: Pushing ahead with our electric vehicle offensive
Pushing ahead with our electric vehicle offensive New brand EQ for electric mobility €20 billion supplier contracts to ensure battery cell supply €10 billion invest into e-mobility fleet > €1 billion invest in a global battery production network Above 130 electrified alternatives envisaged
Slide 55: Electrification of powertrain portfolio
On the road to emission free mobility – Electrification of powertrain portfolio Plug-In Hybrids Highly efficient 48 V Performance-Hybrids Battery Electric Vehicles & Technology Fuel Cell Electric Vehicles Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 55
Slide 56: EQC - the first Mercedes of the EQ brand
EQC* - the first Mercedes of the product- and technology brand EQ 20.8 – 19.7 kWh/100km 0 g/km combined electric combined energy consumption CO2 emissions approx. 40 min. charging 80 kWh time for DC charging of battery capacity 110 kW (80% SOC) (NEDC) 445 - 471 km range (NEDC) * Combined electricity
Slide 57: GLC F-CELL - first fuel cell vehicle with plug-in hybrid technology
GLC F-CELL* - worldwide first fuel cell vehicle with plug-in- hybrid-technology approx. 0.34kg/100 km 0 g CO2/100 km combined hydrogen combined CO2-emissions consumption 13.7 kWh/100km combined electric 13.5/9.3 kWh energy consumption battery capacity approx. 430/480 km approx. 3 min. electric range
Slide 58: eDrive@VANs electric future of the van business
With eDrive@VANs MB Vans provides holistic solutions for the electric future of the van business • eVito successfully introduced into the market • The eSprinter will follow in the second half of 2019 • The ecosystem of apps and services sets the focus beyond the car and offers solutions from chargin
Slide 59: Ambitious definition of our EV market targets
Ambitious definition of our EV market targets 50% Greater China 25% NAFTA WEU 0% 100% 2 1 3 EV share Mercedes-Benz Cars sales 2025 Highest potential EV share Mercedes-Benz Cars 2025 Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 59
Slide 60: Highly flexible production for electric vehicles and batteries
Highly flexible production for electric vehicles and batteries Europe Germany Poland USA France America China Asia Thailand Location vehicle production Location battery production Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 60
Slide 61: Charging network together with partners
Charging network together with partners improve customer experience Home Work Public Mercedes-Benz EQC: Combined electricity consumption: 20.8 to 19.7 kWh/100 km; combined CO2 emissions: 0 g/km. Electricity consumption and range were determined on the basis of Regulation 692/2008/EC. Power consumpti
Slide 62: Daimler Trucks & Buses
Daimler Trucks & Buses Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 62
Slide 63: Our answers to master future challenges
Our answers to master future challenges CORE Electric Connected Automated Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 63
Slide 64: Daimler Trucks: our strategy
Daimler Trucks: our strategy Customer Global Market Presence Focus Innovation Global Leadership Platforms Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 64
Slide 65: Strong brands and strong market positions around the world
Strong brands and strong market positions around the world #1 NAFTA #1 EU 30 Russia #3 Japan China #1 Brazil #4 India Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 65
Slide 66: China: well prepared to tap into the biggest market
China: we are well prepared to tap into the biggest market Biggest market Strengthen our market of commercial position by further vehicles. enhancing our product portfolio. Strong, committed partnership with Foton Market shifting Our Joint venture towards premium BFDA delivers strong segment and sal
Slide 67: Our Mission: make our customers more successful
Our Mission: make our customers more successful Best-in-class products Customer experience Services beyond in all regions as differentiator the hardware Service and Extended Warranty Parts Network & Service Products Continuous Process Connectivity & Improvement Uptime Customer-focused End—to-End Sup
Slide 68: Efficiency: improving our customers' bottom line
Efficiency: improving our customers’ bottom line Europe: Mercedes-Benz Actros NAFTA: Freightliner New Cascadia Japan: FUSO Super Great Fuel reduction up to -3%*on Fuel reduction up to -8%* Fuel reduction up to -15%* motor-ways and up to -5%* Next efficiency step by 2019 Complete efficiency makeover
Slide 69: Global Platforms: leveraging global scale in technology & cost
Global Platforms: leveraging our global scale in technology & cost EU LA China Heavy-duty engines Medium-duty engines Transmissions Chassis Electric/ ECU1 ECU2 Electronic ECU3 Cab architecture Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 69
Slide 70: Global platforms are a great competitive advantage
Global platforms are a great competitive advantage – they achieve several goals at the same time: Speed of Innovation Economies of Scale R&D Efficiency Sideguard HDEP FE1 Assist ABA4 MDEG Pedestrian NAFTA & Jp Global platforms enable Global platforms can secure pass-car- Common base development in a
Slide 71: Daimler Trucks - target: leader in the truck industry
Daimler Trucks - sticking to our target: leader in the truck industry Sales target Strategic target In thousand units Return on Sales in % 471 517 8% over the cycle 2017 2018 2020 Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 71
Slide 72: Target: leading in the bus industry
Target: leading in the bus industry Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 72
Slide 73: Daimler Buses' target: No. 1 in the global bus business
Daimler Bus's target: No. 1 in the global bus business Sales target Strategic target In thousand units Return on Sales in % 28.7 30.9 6% over the cycle 2017 2018 2020 Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 73
Slide 74: Our investment in future technologies @ DT
Our invest in future technologies @ DT Avg. R&D investment Investment in Automated Driving (Level 4) (2019 & 2020) ~ 1.4 bn € > 500 mn € Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 74
Slide 75: We make a lot of progress in future technologies
We make a lot of progress in future technologies Connected Electric Automated Gain Headline Gain Knowledge MB Uptime Gain Business Active Safety Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 75
Slide 76: Connectivity: trucks online in every region
Connectivity: today our trucks are online in every region* with real benefits for our customers and ourselves internally One common global backbone Real customer benefit optimizing Uptime Big Data Analytics as basis to further optimize our products Mercedes-Benz Uptime Daimler AG * Provided internet
Slide 77: New Actros and Level 2 series trucks in the US
After introducing the New Actros in Europe, we have also launched Level 2 series trucks in the US. New Cascadia: • Active Brake Assist 5.0: Full Emergency Braking on stationary objects incl. Pedestrians. • Lane Keep Assist: Lateral control at all vehicle speeds. • Lane Departure Protection: Active s
Slide 78: We are working on all aspects of automated trucking
We are working on all aspects of automated trucking Driving Dynamic Modelling HD Localization / Interactive Connected Maps Deep Learning/ Truck Artificial Intelligence (online) Learning from examples Environment Perception Sensor Fusion Software In-vehicle computing power Connectivity & IT Backend O
Slide 79: Highly automated trucks including majority stake in TORC Robotics
Daimler Trucks strives to develop highly automated trucks for market launch within next 10 years; investing 500+ Mio Euros including majority stake in TORC Robotics • Torc Robotics is one of most experienced self-driving vehicle teams • Torc Robotics to retain location, name, and team members while
Slide 80: The road map towards the fully automated truck
The Theroad truck roadmap maptowards towardsthe thefully fullyautomated automated truck LEVEL 5 Full automation 4 High LEVEL automation 3 Conditional LEVEL automation 2 LEVEL Partial automation 1 Function-specific LEVEL automation 0 Driver LEVEL Daimler AG Daimler Corporate Presentation / July 12, 2
Slide 81: Electric: we have been the pioneers for many years
Electric: we have been the pioneers for many years 2014-2017: 09/2016: 09/2017: 11/2017: 06/2018: 12/2018 FUSO eCanter Mercedes-Benz eActros prototype, FUSO eCanter World premiere of Thomas Presentation of Freightliner First handover of eM2 fleet tests in Europe FUSO eCanter in new design market lau
Slide 82: Battery-powered commercial vehicles for urban areas
Locally emission-free and quiet: our battery-powered commercial vehicles for urban areas. Mercedes-Benz FUSO Thomas Built Buses eActros, eCitaro eCanter Saf-T-Liner® eC2 eCascadia & eM2 2018: Customer Fleet Test 2014: Innovation fleet 2017: World premiere 2016/18: World premiere 2018: Market introdu
Slide 83: Daimler Financial Services
Daimler Financial Services Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 83
Slide 84: Daimler Mobility – We move you
Daimler Mobility – We move you Daimler Mobility Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 84
Slide 85: We finance nearly every second vehicle sold by Daimler
We finance nearly every second vehicle sold by Daimler Penetration rates per vehicle segment Global penetration rate DFS in Q1 2019 57% ~50% 43% 41% 21% Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 85
Slide 86: We operate in over 40 countries and have grown our portfolio
We operate in over 40 countries and we have successfully grown our portfolio over the years 7.8 % CAGR Wholesale 154 157 140 Loan 133 117 Lease 99 Others 80 84 72 72 Trucks 62 71 Portfolio 64 58 Buses (in bn €) 48 38 41 Vans Acquisitions 34 (in bn €) 29 Passengers Cars 2010 2011 2012 2013 2014 2015
Slide 87: Net credit losses at low level
Daimler Financial Services: net credit losses* at low level due to disciplined risk approach 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% 0.17% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD * as a percentag
Slide 88: Daimler Financial Services' target
Daimler Financial Services’ target: best financial and mobility services provider Portfolio target Strategic target in billions of EUR Return on Equity in % 139.9 154.1 17% over the cycle 2017 2018 2020 Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 88
Slide 89: AutoGravity: showcase example for digital financing
is a showcase example for digital financing Daimler investment rationale behind AutoGravity engagement Lead the digitization of the industry by launching disruptive approach towards automotive financing Provide outstanding customer experiences by offering first-of-its-kind comparison app for vehicle
Slide 90: Urban customers prefer to consume mobility as a service
Increasingly more urban customers prefer to consume mobility as a service BUYING CONSUMING Mobility as a product Mobility as a service Enabler Finance and Lease Enabler Finance and Lease Generate New Revenue by entering a three-digit billion USD market 5.3mn 5.0mn 0.4mn 0.4mn Extend Daimler Ecosyste
Slide 91: Daimler and BMW joining forces in urban mobility
Daimler and BMW are joining forces: creating one of the leading providers of urban mobility 31 million Mobility joint ventures with BMW Daimler mobility service customers including ride hailing, car sharing, parking, at the end of 2018 on-demand multimodal mobility and charging Daimler AG Daimler Co
Slide 92: YOUR NOW Joint Ventures
YOUR NOW Joint Ventures The Mobility Powerhouse Q1 2019 Interactions in millions 124.2 9.2 53.2 7.7 54.1* 0.06 Customers** in millions >66 >4 24.4 6.7 30.9* 0.02 Cities** >1,200 30 >110 20 >1,200* n/a GMV RR*** in bn € 3.2* * For U.S. entity of PARK, March 2019 figure estimated ** Partially, data su
Slide 93: SHARE NOW global market leader in free-floating car sharing
SHARE NOW is the global market leader in free-floating car sharing 30 13 cities in countries Q1 2019 Highlights - Start of Paris as a new location with 400 fully electric smart 9.2 million rentals in Q1 2019 - fortwo vehicles. Introduction of deep-linking on Day One of the Joint Venture: Customers c
Slide 94: FREE NOW ride-hailing and micromobility
FREE NOW ride-hailing and micromobility 24+ million 53 million tours customers 500,000 drivers Launch in Mexico City: Rebrand Chauffeur Launch in Palermo Rebranding Clever European market most successful Privé => Kapten and 6 more Taxi => Clever; introduction: Paris, launch ever Launch in Geneva Eur
Slide 95: REACH NOW global Mobility-as-a-service platform
REACH NOW creating a global Mobility-as-a-service platform Highlights Q1 2019 Mobility Budget: • REACH NOW extends MaaS platform to employers to manage, track and distribute commuter benefits and fares • In March 2019, Mobility Budget was launched for more than 3,000 Daimler Financial Services emplo
Slide 96: PARK NOW digital parking provider
PARK NOW one of the leading digital parking providers in Europe and North America 31 million 54 million transactions* in Q1 2019 customers • PARK NOW available for mobile parking payment in Zürich since April 1st, 2019 1,200+ cities ~7 Transactions • Europe: March 2019 highest number of transactions
Slide 97: CHARGE NOW largest charging network in Europe
CHARGE NOW already providing access to the largest charging network in Europe and beyond 110,000+charge 60,000 interactions in Q1 2019 points • Go-live of an additional charging 250+ Integrated 20,000 customers service solution in Germany charge point • New app features: voice control and operators
Slide 98: Mobility Services portfolio to conquer the customer interface
Our Mobility Services portfolio is a strong starting point to conquer the customer interface Developments in Q1 2019 Cooperation Autonomous Daimler Payment Management Services Solutions Mpay integration platform has just been launched for the remaining 13 of total 32 markets worldwide of the Mercede
Slide 99: Self-driving technology will increase demand for shared mobility
Self-driving technology will likely increase the demand for shared mobility services Self-driving car services are expected to ... Leading to a reinforcing cycle of mobility services …Deliver a unique customer experience Prices will Customer demand decrease due to will increase due to …Enhance traff
Slide 100: Daimler Group Strategy: Culture
Daimler Group Strategy Culture Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 100
Slide 101: Transforming the Mindset
Transforming the Mindset Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 101
Slide 102: We are investing in the future
we are investing in the future* C A S E ** *** * Not all investments have been disclosed. ** Subject to approval by authorities. *** Subject to closing. Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 102
Slide 103: Daimler Group Strategy: Company
Daimler Group Strategy Company Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 103
Slide 104: PROJECT FUTURE: three legally independent divisions
We expect PROJECT FUTURE to create a strong family of companies with three legally independent divisions In the future, the Daimler Group will consist of three legally independent entities DAIMLER AG and Daimler AG as the parent Strategy, guidance and services company. ~2,400 employees in governance
Slide 105: New structure expected to lead to significant benefits
Our new structure is expected to lead to significant benefits for Daimler Sharpen Strengthen Ensure Winning Increasing focus entrepreneurial synergies innovation attractiveness action partners on the capital market Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 105
Slide 106: What does the new structure mean for Daimler employees?
What does the new structure mean for Daimler employees? Planned structure Current structure DAIMLER AG ~6,000 DAIMLER AG ~136,000 MERCEDES- DAIMLER BENZ AG MOBILITY AG DAIMLER TRUCK AG DAIMLER FINANCIAL SERVICES AG 1) Figures only include employees that are subject to transfer of establishments Daim
Slide 107: Hive-down will become effective in Q4 2019
The hive-down approved by our shareholders at the Annual General Meeting will become effective in Q4 2019 MB AG DT AG DAG DM AG 2018-2019 22.05.2019 November 2019 Start New PROJECT DAIMLER FUTURE structure Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 107
Slide 108: Contents
Contents Group Financials Divisional Information Outlook Daimler Group Strategy Funding Appendix Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 108
Slide 109: Daimler follows a prudent Financial Policy
Daimler follows a prudent Financial Policy Clear commitment to a single A rating Balanced approach between shareholder interest and credit providers Dividend policy of 40% target pay-out ratio* No share buybacks planned Pensions: current funded ratio at 79% *Based on net profit attributable to share
Slide 110: Our funding strategy is built on prudent principles
Our funding strategy is built on prudent principles No dependence from single markets, instruments, banks or investors Targeting Diversification of funding sources and instruments: Financial Bank Loans, Bonds, ABS, CP, Deposits Independence No Covenants, no MAC, no asset pledges, no CSAs Keeping pru
Slide 111: Project Future – Financial Principles for One Credit
Project Future – Financial Principles for “One Credit” Liquidity Centralized steering of Group liquidity Management Centralized steering of group funding supported by written guarantees Rating Group Funding Centralized management of the impact of market fluctuations (FX, Interest, Commodities,
Slide 112: Daimler pension funded ratio increased to 79% since 2010
Daimler pension funded ratio increased to 79% since 2010 14 11.5 12 9.8 10 8.6 7.8 in EUR bn 8 7.4 6.9 6.2 6 4.5 4 3.4 2.2 3.1 2.4 3.7 Significant contributions of EUR 2.0 1.9 2 0.3 1.1 0.5 0.7 0.0 15.9bn since 2010 support the solid 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1 2019 capital s
Slide 113: Gross Group Liquidity and Net Industrial Liquidity
Daimler follows a prudent financial management approach and further strengthened the balance sheet… Gross Group Liquidity (in bn EUR) Net Industrial Liquidity (in bn EUR) Financial Services Industrial Business 26.7 25.4 3.4 19.7 21.7 22.1 4.3 18.6 3.7 16.6 16.3 18.2 3.5 2.8 11.3 23.3 21.2 18.2 18.4
Slide 114: Financing Liabilities with a balanced mix
Financing Liabilities with a balanced mix in billions of EUR Fin. Lease (IFRS 16) Acc. Deposits Other (ex Fin. Lease) Bank Loans Com. Paper Bonds ABS 154.9 145.0 0.0 4.0 2.0 12.6 1.6 127.4 0.0 12.5 2.8 2.3 0.0 2.0 11.9 117.6 11.8 1.0 11.0 1.0 100.6 0.0 10.6 1.7 11.5 39.9 1.5 11.6 39.4 7.4 3.0 10.5 3
Slide 115: Development to Global Capital Market Funding
Consequent Development to Global Capital Market Funding Diversification will continue Canada EMTN Domestic Bonds Euro Market ABS Korea CP EMTN Program Italian domestic Domestic Bond Prog. EUR CP Program ABS China USA Japan Turkey Domestic Bonds 144a / RegS PP Domestic Bonds ABS CP Domestic Bonds EMT
Slide 116: Funding base further diversified to a global set-up
Funding base further diversified to a true global set-up in billions of EUR 154,9 3% 8% 1% 1% 8% 26% Currency Volume % EUR 35,6 43% USD 29,8 36% CNY 4,0 5% GBP 3,8 5% Fin. Lease (IFRS 16) 0% CAD 3,1 4% Other 57,3 2% Currency Volume % ZAR 1,9 2% Com. Paper 0% EUR 19,5 66% 22% KRW 0,7 1% ABS 2% USD 7,
Slide 117: Maturity profile further lengthened
Maturity profile further lengthened in billions of EUR as of 31 March 2019 17.8 0.2 16.7 Issued in 2019 0.4 Maturities 13.5 8.5 17.6 16.3 2.3 5.7 5.0 1.5 0.9 3.7 6.2 2.0 2.2 2.0 1.9 2.1 4.2 4.2 0.4 0.8 1.3 1.0 1.5 0.2 1.3 1.0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2037 Daim
Slide 118: Solid rating supports Daimler's funding
Solid rating supports Daimler‘s funding Current ratings: S&P: A stable A-1 Moody’s: A2 stable P-1 Fitch: A- stable F2 DBRS: A stable R-1 (low) Scope: A stable S-1 Daimler target: Sustaining the A rating at all rating agencies Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 118
Slide 119: Contents
Contents Group Financials Divisional Information Outlook Daimler Group Strategy Funding Appendix Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 119
Slide 120: Initial application of IFRS 16
Initial application of IFRS 16 (former) IAS 17 IFRS 16 FINANCE LEASE OPERATING LEASE Lease Recognition of leased asset and No recognition of leased asset Recognition of a right-of-use liability or liability (“RoU”) asset and a lease liability Changes Depreciation of leased asset Recognitio
Slide 121: Key balance sheet and financial figures
Key balance sheet and financial figures in billions of euros Daimler Group Dec. 31, 2018 March 31, 2019 Equity ratio 22.2% 21.6% Gross liquidity 25.4 26.7 Funded status of pension obligations -6.2 -6.9 Funding ratio 80% 79%* Industrial business Equity ratio 42.8% 39.2% Net liquidity 16.3 11.3 Free c
Slide 122: Unit sales by division
Units sales by division in thousand units Q1 2018 Q1 2019 % change Daimler Group 806.9 773.8 -4 of which Mercedes-Benz Cars 594.3 555.3 -7 Daimler Trucks 113.8 115.9 +2 Mercedes-Benz Vans 93.0 97.0 +4 Daimler Buses 5.7 5.5 -4 Daimler AG Daimler Corporate Presentation / July 12, 2019 / Page 122
Slide 123: Revenue by division
Revenue by division in billion euros Q1 2018 Q1 2019 % change Daimler Group 39.8 39.7 -0 of which Mercedes-Benz Cars 23.0 21.2 -8 Daimler Trucks 8.6 9.5 +11 Mercedes-Benz Vans 3.1 3.4 +9 Daimler Buses 0.9 0.8 -8 Daimler Financial Services 6.3 6.9 +10 Daimler AG Daimler Corporate Presentation / July
Slide 124: Revenue by region
Revenue by region in billion euros Q1 2018 Q1 2019 % change Daimler Group 39.8 39.7 -0 of which Europe 16.4 16.6 +1 of which Germany 6.0 6.4 +7 NAFTA 10.6 11.6 +9 of which United States 9.1 10.1 +12 Asia 10.3 9.0 -13 of which China* 5.2 4.4 -15 Other markets 2.4 2.5 +4 * excluding revenue of not ful
Slide 125: EBIT by division
EBIT by division Q1 2018 Q1 2019 EBIT in million euros; RoS/RoE in % EBIT RoS/RoE* EBIT RoS/RoE* Daimler Group 3,335 8.3 2,802 4.9 of which Mercedes-Benz Cars 2,060 9.0 1,298 6.1 Daimler Trucks 647 7.5 582 6.1 Mercedes-Benz Vans 172 5.6 -98 -2.9 Daimler Buses 37 4.4 -21 -2.7 Daimler Financial Servic
Slide 126: Group EBIT in Q1 2019
Group EBIT in Q1 2019 in million euros 3,335 -637 -77 +718 2,802 -441 • Cars -792 • Cars -143 • Trucks • Vans +151 +31 • Trucks +77 -57 -39 • Vans -24 • Buses -27 • Cars +173 • Buses +13 • Trucks -293 • DFS: Merger of • Vans -277 mobility services • Buses -44 of Daimler and BMW +718 Actual Volume/ F
Slide 127: Capital expenditure / Research and development
Capital expenditure / Research and development in billion euros Investment in property, plant Research and development and equipment expenditure Actual Actual Plan* Actual Actual Plan* 2017 2018 2019-2020 2017 2018 2019-2020 Daimler Group 6.7 7.5 7.3 8.7 9.1 9.2 of which Mercedes-Benz Cars 4.8 5.7 5
Slide 128: Daimler Investor Relations Events Q2-2019
Daimler Investor Relations Events Q2-2019 Apr 29 2019 CFO Roadshow Frankfurt Apr 30 2019 CFO Roadshow London May 7-8 2019 IR Roadshow New York/Boston May 10 2019 Treasury/IR Roadshow Munich May 27 2019 Treasury/IR Roadshow Frankfurt June 6 2019 CEO/CFO Meetings Stuttgart June 6 2019 UniCredit Automo
Slide 129: Daimler Investor Relations Financial Calendar 2019
Daimler Investor Relations Financial Calendar 2019 Feb 06 2019 Annual Press Conference 2019 / Full Year Results 2018 Feb 07 2019 Investor and Analyst Conference Feb 15 2019 Annual Report 2018 online available Apr 26 2019 Interim Report 1st Quarter 2019 May 22 2019 Annual Meeting 2019 Jul 24 2019 Int
Slide 130: 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