Slide 1: Q1 2018 Results
Q1 2018 Results Bodo Uebber Member of the Board of Management Finance & Controlling and Daimler Financial Services April 27, 2018 Q1 2018 Results / April 27, 2018 /
Slide 2: Contents
Contents Results for Q1 2018 Outlook for 2018 Development at the divisions Daimler AG Q1 2018 Results / April 27, 2018 / Page 2
Slide 3: Highlights of Q1 2018
Highlights of Q1 2018 Unit sales Revenue – in thousands of units – – in billions of euros – World premiere of the new Mercedes-Benz A-Class 807 38.6* 39.8 754 Presentation of the upgraded C-Class sedan, wagon, coupe +7% +3% and cabriolet Q1 2017 Q1 2018 Q1 2017 Q1 2018 World premiere of the new Merc
Slide 4: Continued high level of net industrial liquidity
Continued high level of net industrial liquidity - in billions of euros - Free cash flow industrial business Q1 2018: €1.8 billion +0.3 -0.0 +0.3 18.7 +1.5 16.6 Net industrial Earnings and Working capital M&A effects Other Net industrial liquidity other cash flow impact (mainly dividends liquidity 1
Slide 5: Daimler balance sheet supports A-rating
Daimler balance sheet supports A-rating Daimler Group Dec. 31, 2017 March 31, 2018 Equity ratio 24.0% 24.0% Gross liquidity 22.1 24.5 Funded status of pension obligations -4.5 -4.9 Funding ratio 86% 84% Industrial business Equity ratio 46.4% 45.8% Net liquidity 16.6 18.7 Free cash flow (January-Marc
Slide 6: Financial flexibility over a 12-month period
Financial flexibility over a 12-month period - in billions of euros - 51.5 The financial flexibility provides support to mitigate risk and volatility 43.3 through a balanced mix of funding instruments and clear principles ABS Other potential Commercial paper Daimler follows a financial management to
Slide 7: Continued strong growth in units sales
Continued strong growth in units sales Q1 2017 Q1 2018 % change Daimler Group 754.3 806.9 +7 of which Mercedes-Benz Cars 568.1 594.3 +5 Daimler Trucks 94.0 113.8 +21 Mercedes-Benz Vans 86.8 93.0 +7 Daimler Buses 5.4 5.7 +6 in thousands of units Daimler AG Q1 2018 Results / April 27, 2018 / Page 7
Slide 8: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights World premiere of the new Mercedes-Benz A-Class Daimler AG Q1 2018 Results / April 27, 2018 / Page 8
Slide 9: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights Presentation of the upgraded C-Class sedan and wagon at the Geneva Motor Show Daimler AG Q1 2018 Results / April 27, 2018 / Page 9
Slide 10: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights The upgraded C-Class coupe and cabriolet celebrated world premiere in New York Daimler AG Q1 2018 Results / April 27, 2018 / Page 10
Slide 11: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights Launch of the new Mercedes-Benz CLS Daimler AG Q1 2018 Results / April 27, 2018 / Page 11
Slide 12: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights Presentation of the new Mercedes-AMG GT 4-Door Coupe Daimler AG Q1 2018 Results / April 27, 2018 / Page 12
Slide 13: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights smart EQ fortwo/forfour nightsky edition – the first series-produced models of the EQ product and technology brand Daimler AG Q1 2018 Results / April 27, 2018 / Page 13
Slide 14: Daimler Trucks: product highlights
Daimler Trucks: product highlights The all-electric Mercedes-Benz eActros to be tested by customers under real-life conditions Daimler AG Q1 2018 Results / April 27, 2018 / Page 14
Slide 15: Daimler Trucks: product highlights
Daimler Trucks: product highlights FUSO Super Great heavy-duty truck participating in a platooning test in Japan Daimler AG Q1 2018 Results / April 27, 2018 / Page 15
Slide 16: Mercedes-Benz Vans: product highlights
Mercedes-Benz Vans: product highlights World premiere of the new Mercedes-Benz Sprinter Daimler AG Q1 2018 Results / April 27, 2018 / Page 16
Slide 17: Mercedes-Benz Vans: product highlights
Mercedes-Benz Vans: product highlights ViaVan has launched app-based on-demand ridesharing service in Amsterdam Daimler AG Q1 2018 Results / April 27, 2018 / Page 17
Slide 18: Daimler Buses: product highlights
Daimler Buses: product highlights World premiere of the new Setra S 531 DT double-decker touring coach Daimler AG Q1 2018 Results / April 27, 2018 / Page 18
Slide 19: Daimler Buses: product highlights
Daimler Buses: product highlights The new Mercedes-Benz Citaro with full-electric drive system Daimler AG Q1 2018 Results / April 27, 2018 / Page 19
Slide 20: Daimler Financial Services: highlights Mobility Services
Daimler Financial Services: highlights Mobility Services Ongoing business expansion Combined YTD 03/18 change* 6.3 6.2 25.0 +76% Interactions in millions 26 17** >70 +43% Cities 3.1 4.4 13.9 +86% Customers in millions * car2go, moovel and mytaxi (incl. Beat since 02/17, Clever Taxi since 06/17 and C
Slide 21: Daimler and BMW Group to combine their mobility services business
Daimler and BMW Group to combine their mobility services business Daimler and BMW signed an agreement to merge their mobility services business units Combination of expertise and experience to develop a unique, sustainable ecosystem for urban mobility Offer of on-demand mobility in the areas of car
Slide 22: Revenue by division
Revenue by division Q1 2017* Q1 2018 % change Daimler Group 38.6 39.8 +3 of which Mercedes-Benz Cars 22.5 23.0 +2 Daimler Trucks 8.0 8.6 +8 Mercedes-Benz Vans 3.0 3.1 +4 Daimler Buses 0.9 0.9 -8 Daimler Financial Services 5.9 6.0 +2 Contract volume of Daimler Financial Services** 139.9 141.7 +1 in b
Slide 23: Revenue by region
Revenue by region Q1 2017* Q1 2018 % change Daimler Group 38.6 39.8 +3 of which Europe 16.1 16.4 +2 of which Germany 5.8 6.0 +3 NAFTA 10.8 10.6 -2 of which United States 9.4 9.1 -4 Asia 9.2 10.3 +12 of which China** 4.3 5.2 +19 Other markets 2.4 2.4 +1 in billions of euros * adjusted based on new IF
Slide 24: EBIT by division
EBIT by division Q1 2017* Q1 2018 - EBIT in millions of euros; RoS/RoE in % - EBIT RoS/RoE** EBIT RoS/RoE** Daimler Group 3,771 9.9 3,335 8.3 of which Mercedes-Benz Cars 1,998 8.9 2,060 9.0 Daimler Trucks 662 8.3 647 7.5 Mercedes-Benz Vans 337 11.3 172 5.6 Daimler Buses 72 7.8 37 4.4 Daimler Financi
Slide 25: Group EBIT in Q1 2018
Group EBIT in Q1 2018 - in millions of euros - +859 -101 -461 • Cars +8 • Trucks -115 +24 -67 -690 • Vans +8 3,771* • Buses -2 • Cars -265 • Trucks -13 • Cars • Trucks +502* +379 • Vans • Buses -172 -11 3,335 • Vans -1 • Buses -21 • Cars: New investors in HERE -183 • Trucks: Sale of real estate in J
Slide 26: Application of new accounting standards IFRS 9 and IFRS 15
Application of new accounting standards IFRS 9 and IFRS 15 New IFRS 9 and IFRS 15 standards to be applied for the first time for financial year 2018 Retrospective adjustment of Financial Statements 2017 for comparability reasons The introduction of IFRS 15 results in changes regarding revenue recogn
Slide 27: Adjusted key figures due to transition to IFRS 9 and IFRS 15 FY 2017
Adjusted key figures due to transition to IFRS 9 and IFRS 15 FY 2017 Revenue EBIT - in millions of euros - as reported adjusted change as reported adjusted change Daimler Group 164,330 164,154 -176 14,682 14,348 -334 of which Mercedes-Benz Cars 94,695 94,351 -344 9,207 8,843 -364 Daimler Trucks 35,7
Slide 28: Adjusted key figures due to transition to IFRS 9 and IFRS 15 Q1 2017
Adjusted key figures due to transition to IFRS 9 and IFRS 15 Q1 2017 Revenue EBIT - in millions of euros - as reported adjusted change as reported adjusted change Daimler Group 38,776 38,582 -194 4,008 3,771 -237 of which Mercedes-Benz Cars 22,723 22,521 -202 2,234 1,998 -236 Daimler Trucks 7,940 7,
Slide 29: Contents
Contents Results for Q1 2018 Outlook for 2018 Development at the divisions Daimler AG Q1 2018 Results / April 27, 2018 / Page 29
Slide 30: Mercedes-Benz Cars and Vans: continued product offensive
Mercedes-Benz Cars and Vans: continued product offensive AMG 4-door Coupe G-Class (upgraded) Mercedes-Maybach GLC F-CELL S-Class Pullman (upgraded) A-Class Sedan S-Class C-Class Coupe (upgraded) Sedan (upgraded) C-Class A-Class Wagon (upgraded) Sedan (long wheelbase) CLS C-Class S-Class Cabriolet (u
Slide 31: Assumptions for automotive markets in 2018
Assumptions for automotive markets in 2018 Global around +2% Europe slight growth Car markets USA around the prior-year level China slight growth NAFTA region significant growth Medium- and EU30 around the prior-year level heavy-duty truck Japan* slight decrease markets Brazil significant growth fro
Slide 32: 2018 sales outlook
2018 sales outlook Slightly higher unit sales Further growth particularly in China Mercedes-Benz Cars Strong momentum from the wide range of attractive and innovative vehicles Significantly higher unit sales Significant growth in NAFTA region, Brazil, Indonesia and India; India slight growth in Japa
Slide 33: 2018 outlook for EBIT
2018 outlook for EBIT We expect Group EBIT for FY 2018 to be slightly above the prior-year level* based on the following expectations for divisional EBIT: Slightly above the prior-year level Mercedes-Benz Cars Significantly above the prior-year level Daimler Trucks Slightly below the prior-year leve
Slide 34: Contents
Contents Results for Q1 2018 Outlook for 2018 Development at the divisions Daimler AG Q1 2018 Results / April 27, 2018 / Page 34
Slide 35: Mercedes-Benz Cars: continued business growth based on strong product portfolio
Mercedes-Benz Cars: continued business growth based on strong product portfolio Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 568 594 22.5* 23.0 1,998* 2,060 +5% +2% +3% Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 * adjusted based on new IFRS
Slide 36: Mercedes-Benz Cars: EBIT
Mercedes-Benz Cars: EBIT - in millions of euros - + 62 Higher unit sales 8.9%** Aperiodic negative effect in Q1 2017 arising 9.0%** from application of the new IFRS 15 1,998* 2,060 Higher expenses for raw material Higher expenses for new technologies and future products Valuation of the German leasi
Slide 37: Mercedes-Benz Cars: sales increase by 5%
Mercedes-Benz Cars: sales increase by 5% reflecting our strong product line-up - in thousands of units - 594 568 smart 30 34 5 Sports Cars 6 188 212 SUVs 18 23 S-Class 95 105 E-Class 125 120 C-Class 102 98 A-/B-Class Q1 2017 Q1 2018 Daimler AG Q1 2018 Results / April 27, 2018 / Page 37
Slide 38: Mercedes-Benz Cars: globally balanced sales structure
Mercedes-Benz Cars: globally balanced sales structure with strong development especially in China - in thousands of units - 594 568 100 Rest of world 94 166 Europe 167 excl. Germany 74 79 Germany 78 70 United States 155 179 China Q1 2017 Q1 2018 Daimler AG Q1 2018 Results / April 27, 2018 / Page 38
Slide 39: Mercedes-Benz Cars in China: huge sales growth
Mercedes-Benz Cars in China: huge sales growth with higher share of locally produced vehicles - in thousands of units - imported locally produced 619 488 196 400 171 293 150 239 147 423 179 123 317 52 250 146 116 127 2013 2014 2015 2016 2017 2018 Q1 Daimler AG Q1 2018 Results / April 27, 2018 / Page
Slide 40: Daimler Trucks: strong business development
Daimler Trucks: strong business development Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 114 8.6 662* 8.0* 647 94 +21% +8% -2% Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 * adjusted based on new IFRS 15 standards including cost of hedging (I
Slide 41: Daimler Trucks: EBIT
Daimler Trucks: EBIT - in millions of euros - - 15 8.3%** 7.5%** Higher unit sales especially in the NAFTA region 662* 647 Efficiency enhancements Higher expenses for raw material Foreign exchange rates Sale of real estate at the Kawasaki site in Q1 2017 EBIT EBIT Q1 2017 Q1 2018 * adjusted based on
Slide 42: Daimler Trucks: sales increase by 21%
Daimler Trucks: sales increase by 21% mainly driven by NAFTA region and Asia - in thousands of units - 114 9 Rest of world 94 8 38 Asia 30 9 Latin America 6 41 NAFTA region 33 17 17 EU30* Q1 2017 Q1 2018 * European Union, Switzerland and Norway Daimler AG Q1 2018 Results / April 27, 2018 / Page 42
Slide 43: Daimler Trucks: significant increase in incoming orders
Daimler Trucks: significant increase in incoming orders mainly driven by NAFTA region - in thousands of units - 184 12 Rest of world 51 Asia 124 12 8 Latin America 40 5 89 NAFTA region 46 21 24 EU30* Q1 2017 Q1 2018 * European Union, Switzerland and Norway Daimler AG Q1 2018 Results / April 27, 2018
Slide 44: Mercedes-Benz Vans: EBIT impacted by Sprinter model change
Mercedes-Benz Vans: EBIT impacted by Sprinter model change and expenses for new technologies and products Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 93.0 3.1 86.8 3.0* 337* +7% +4% -49% 172 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 * adj
Slide 45: Mercedes-Benz Vans: EBIT
Mercedes-Benz Vans: EBIT - in millions of euros - - 165 11.3%** 337* Higher unit sales Impacts from the Sprinter model change 5.6%** Higher expenses for raw material 172 Higher expenses for new technologies and future products EBIT EBIT Q1 2017 Q1 2018 * adjusted based on new IFRS 15 standards inclu
Slide 46: Mercedes-Benz Vans: sales increase by 7%
Mercedes-Benz Vans: sales increase by 7% due to market success of attractive product portfolio - in thousands of units - 93.0 86.8 41.3 Sprinter 45.0 27.0 Vito 23.2 15.7 V-Class 13.2 3.2 X-Class 5.4 5.9 Citan Q1 2017 Q1 2018 Daimler AG Q1 2018 Results / April 27, 2018 / Page 46
Slide 47: Daimler Buses: revenue and EBIT impacted by unfavorable product mix
Daimler Buses: revenue and EBIT impacted by unfavorable product mix Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 5.7 0.9* 72* 5.4 0.85 37 +6% -8% -49% Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 * adjusted based on new IFRS 15 standards incl
Slide 48: Daimler Buses: EBIT
Daimler Buses: EBIT - in millions of euros - - 35 7.8%** 72* Efficiency enhancements Product mix 4.4%** Higher expenses for raw material 37 EBIT EBIT Q1 2017 Q1 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** Return on sales Daimler AG Q1 2018 Results / April 27,
Slide 49: Daimler Buses: sales increase by 6%
Daimler Buses: sales increase by 6% mainly due to higher demand in Latin America - in thousands of units - 5.7 5.4 0.7 Rest of world 0.9 1.2 Latin America 1.0 (excl. Brazil and Mexico) 1.4 1.9 Brazil 0.7 0.5 Mexico 1.4 1.4 EU30* Q1 2017 Q1 2018 * European Union, Switzerland and Norway Daimler AG Q1
Slide 50: Daimler Financial Services: further business growth
Daimler Financial Services: further business growth New business Contract volume EBIT – in billions of euros – – in billions of euros – – in millions of euros – 17.9 139.9 141.7 548 16.8 524 +6% +1% +5% Q1 2017 Q1 2018 12/31/2017 3/31/2018 Q1 2017 Q1 2018 Daimler AG Q1 2018 Results / April 27, 2018
Slide 51: Daimler Financial Services: EBIT
Daimler Financial Services: EBIT - in millions of euros - + 24 19.3%* 17.9%* 524 548 Higher contract volume Higher interest-rate level Foreign exchange rates EBIT EBIT Q1 2017 Q1 2018 * Return on equity Daimler AG Q1 2018 Results / April 27, 2018 / Page 51
Slide 52: Daimler Financial Services: further increase in contract volume
Daimler Financial Services: further increase in contract volume to 141.7 billion euros - in billions of euros - 139.9 141.7 29.4 31.3 Africa & Asia-Pacific 50.7 49.4 Americas 35.6 36.1 Europe (excl. Germany) 24.1 24.7 Germany 12/31/2017 3/31/2018 Daimler AG Q1 2018 Results / April 27, 2018 / Page 52
Slide 53: Daimler Financial Services: 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% 0.16% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD * as a percentage of portfo
Slide 54: 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