Slide 1: Q3 and January-September 2017 Results
Q3 and January-September 2017 Results Bodo Uebber Member of the Board of Management Finance & Controlling and Daimler Financial Services October 20, 2017 Q3 and January-September 2017 Results / October 20, 2017 /
Slide 2: Contents
Contents Results for Q3 2017 Outlook for 2017 Development at the divisions Daimler AG Q3 and January-September 2017 Results / October 20, 2017 / Page 2
Slide 3: Highlights of Q3 2017
Highlights of Q3 2017 Unit sales Revenue – in thousands of units – – in billions of euros – World premiere of the the Concept EQA, the smart vision EQ fortwo, the GLC F-CELL and the Mercedes-AMG Project ONE 824 40.8 38.6 754 Launch of the FUSO eCanter – the world’s first series-produced all-electric
Slide 4: Daimler Board of Management decides on first steps to strengthen the divisional structure
Daimler Board of Management decides on first steps to strengthen the divisional structure Plans for three legally independent entities under the roof and lead of Daimler AG Strengthening of the corporate structure will serve future success of Daimler Agreement with employee representatives on corner
Slide 5: Strong free cash flow in line with good business development
Strong free cash flow in line with good business development - in billions of euros - Free cash flow industrial business January-September 2017: €5.8 billion +0.9 -0.0 -3.5 +4.9 -1.2 20.8 19.7 Net industrial Earnings and Working capital Sale of real Dividend payment Other Net industrial liquidity ot
Slide 6: Strong financial and balance sheet figures support our financial strength and A-rating
Strong financial and balance sheet figures support our financial strength and A-rating Daimler Group Dec. 31, 2016 Sept. 30, 2017 Equity ratio 22.9% 24.5% Gross liquidity 21.7 26.9 Funded status of pension obligations -7.8 -8.0 Funding ratio 75% 75% Industrial business Equity ratio 44.7% 46.7% Net l
Slide 7: Financial flexibility over a 12-month period
Financial flexibility over a 12-month period - in billions of euros - 46.9 The financial flexibility provides support to mitigate risk and volatility 42.0 ABS Other through a balanced mix of funding instruments and clear principles potential Commercial paper Daimler follows a financial management to
Slide 8: Higher units sales in all divisions based on strong product portfolio
Higher units sales in all divisions based on strong product portfolio Q3 2016 Q3 2017 % change Daimler Group 754.1 824.1 +9 of which Mercedes-Benz Cars 565.6 597.3 +6 Daimler Trucks 97.1 126.6 +30 Mercedes-Benz Vans 85.2 93.1 +9 Daimler Buses 6.2 7.2 +17 in thousands of units Daimler AG Q3 and Janua
Slide 9: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights The Concept EQA – the first all-electric EQ concept vehicle from Mercedes-Benz in the compact segment Daimler AG Q3 and January-September 2017 Results / October 20, 2017 / Page 9
Slide 10: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights The Mercedes-Benz GLC F-CELL – the first electric vehicle with fuel-cell and battery drive Daimler AG Q3 and January-September 2017 Results / October 20, 2017 / Page 10
Slide 11: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights World premiere of the Mercedes-AMG Project ONE Daimler AG Q3 and January-September 2017 Results / October 20, 2017 / Page 11
Slide 12: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights Presentation of the Vision Mercedes-Maybach 6 Cabriolet Daimler AG Q3 and January-September 2017 Results / October 20, 2017 / Page 12
Slide 13: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights World premiere of the smart vision EQ fortwo Daimler AG Q3 and January-September 2017 Results / October 20, 2017 / Page 13
Slide 14: Daimler Trucks: product highlights
Daimler Trucks: product highlights Launch of the FUSO eCanter – the world’s first series-produced all-electric truck Daimler AG Q3 and January-September 2017 Results / October 20, 2017 / Page 14
Slide 15: Daimler Trucks: product highlights
Daimler Trucks: product highlights FUSO Super Great now also available as tractor Daimler AG Q3 and January-September 2017 Results / October 20, 2017 / Page 15
Slide 16: Daimler Trucks: product highlights
Daimler Trucks: product highlights Daimler Trucks tests truck platooning on public highways in the United States Daimler AG Q3 and January-September 2017 Results / October 20, 2017 / Page 16
Slide 17: Mercedes-Benz Vans: product highlights
Mercedes-Benz Vans: product highlights World premiere of the Mercedes-Benz X-Class premium pickup Daimler AG Q3 and January-September 2017 Results / October 20, 2017 / Page 17
Slide 18: Mercedes-Benz Vans: product highlights
Mercedes-Benz Vans: product highlights Joint venture for on-demand shared rides and pilot project for on-demand delivery of e-commerce goods * courier, express and postal sectors Daimler AG Q3 and January-September 2017 Results / October 20, 2017 / Page 18
Slide 19: Daimler Buses: product highlights
Daimler Buses: product highlights World premiere the new Setra S 531 DT double-decker coach Daimler AG Q3 and January-September 2017 Results / October 20, 2017 / Page 19
Slide 20: Daimler Financial Services: highlights Mobility Services
Daimler Financial Services: highlights Mobility Services Ongoing business expansion Combined YTD 09/17 change* 18.5 16.4 52.2 +162% Transactions in millions 26 14** >70 +25% Cities 2.8 3.4 9.7 +116% Members in millions * car2go, moovel and mytaxi (incl. Taxibeat and Clevertaxi) combined, 09/17 (YTD)
Slide 21: Revenue by division
Revenue by division Q3 2016 Q3 2017 % change Daimler Group 38.6 40.8 +6 of which Mercedes-Benz Cars 23.3 23.4 +1 Daimler Trucks 7.9 9.2 +17 Mercedes-Benz Vans 3.1 3.1 -1 Daimler Buses 0.9 1.0 +8 Daimler Financial Services 5.1 5.8 +14 Contract volume of Daimler Financial Services* 132.6 135.8 +2 in b
Slide 22: Revenue by region
Revenue by region Q3 2016 Q3 2017 % change Daimler Group 38.6 40.8 +6 of which Europe 15.6 16.8 +8 of which Germany 5.8 5.7 -1 NAFTA 11.3 11.6 +3 of which United States 9.8 9.9 +2 Asia 9.4 9.8 +4 of which China* 4.1 4.5 +10 Other markets 2.4 2.6 +9 in billions of euros * excluding revenue of not ful
Slide 23: EBIT by division
EBIT by division Q3 2016 Q3 2017 - EBIT in millions of euros; RoS/RoE in % - EBIT RoS/RoE* EBIT RoS/RoE* Daimler Group 4,037 10.8 3,458 8.4 of which Mercedes-Benz Cars 2,746 11.8 2,147 9.2 Daimler Trucks 464 5.9 614 6.7 Mercedes-Benz Vans 312 10.0 218 7.1 Daimler Buses 45 4.8 26 2.6 Daimler Financia
Slide 24: Group EBIT in Q3 2017
Group EBIT in Q3 2017 - in millions of euros - +409 -84 -337 4,037 • Cars -28 +69 -86 -550 • Trucks -25 • Vans -2 • Cars +108 • Buses -29 • Cars -141 • Trucks +339 • Trucks -139 • Vans -57 • Buses +19 • Vans • Buses -42 -15 3,458 of which: • Cars: Specific vehicle recall -230 Voluntary service activ
Slide 25: Contents
Contents Results for Q3 2017 Outlook for 2017 Development at the divisions Daimler AG Q3 and January-September 2017 Results / October 20, 2017 / Page 25
Slide 26: Mercedes-Benz Cars and Vans: continued product offensive
Mercedes-Benz Cars and Vans: continued product offensive 2017 2018 E-Class E-Class S-Class Coupé All Terrain facelift GLA facelift AMG GT E-Class S-Class Coupé/ Roadster Cabriolet Cabriolet facelift smart fortwo/forfour smart cabrio electric drive electric drive X-Class New Sprinter Daimler AG Q3 an
Slide 27: Assumptions for automotive markets in 2017
Assumptions for automotive markets in 2017 Global around +2% Europe slight growth Car markets USA slight decrease China slight growth NAFTA region slight decrease, with Class 8 weaker than Class 6-8 Medium- and EU30 around the prior-year level heavy-duty truck Japan* around the prior-year level mark
Slide 28: 2017 sales outlook
2017 sales outlook Significantly higher unit sales Further growth particularly in China and Europe Mercedes-Benz Cars Strong momentum especially from new E-Class models and SUV portfolio Significantly higher unit sales Slight growth in EU30 and Brazil; significant growth in NAFTA region, Indonesia a
Slide 29: 2017 outlook for EBIT
2017 outlook for EBIT We expect Group EBIT for FY 2017 to increase significantly based on the following expectations for divisional EBIT: Significantly above the prior-year level Mercedes-Benz Cars Significantly above the prior-year level Daimler Trucks Around the prior-year level Mercedes-Benz Vans
Slide 30: Contents
Contents Results for Q3 2017 Outlook for 2017 Development at the divisions Daimler AG Q3 and January-September 2017 Results / October 20, 2017 / Page 30
Slide 31: Mercedes-Benz Cars: EBIT below prior year due to one-time effects
Mercedes-Benz Cars: EBIT below prior year due to one-time effects Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 597 566 23.3 23.4 2,746 2,147 +6% +1% -22% Q3 2016 Q3 2017 Q3 2016 Q3 2017 Q3 2016 Q3 2017 Daimler AG Q3 and January-September 2017 Re
Slide 32: Mercedes-Benz Cars: EBIT
Mercedes-Benz Cars: EBIT - in millions of euros - - 599 11.8%* Higher unit sales 2,746 Expenses for voluntary service activities in 9.2%* connection with a comprehensive plan for 2,147 diesel engines Expenses for a specific vehicle recall Higher expenses for new technologies and future products EBIT
Slide 33: Mercedes-Benz Cars: sales increase by 6% reflecting our strong product line-up
Mercedes-Benz Cars: sales increase by 6% reflecting our strong product line-up - in thousands of units - 597 566 30 smart 32 6 Sports Cars 8 211 SUVs 186 21 18 S-Class 85 99 E-Class 124 127 C-Class 109 105 A-/B-Class Q3 2016 Q3 2017 Daimler AG Q3 and January-September 2017 Results / October 20, 2017
Slide 34: Mercedes-Benz Cars: globally balanced sales structure
Mercedes-Benz Cars: globally balanced sales structure - in thousands of units - 597 566 109 Rest of world 105 170 Europe 165 excl. Germany 83 Germany 79 82 United States 90 127 153 China Q3 2016 Q3 2017 Daimler AG Q3 and January-September 2017 Results / October 20, 2017 / Page 34
Slide 35: 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 488 458 400 171 143 293 150 239 208 147 123 317 108 315 250 146 100 116 2012 2013 2014 2015 2016 2017 YTD 09 Daimler AG Q3 and January-September 2017 Resu
Slide 36: Daimler Trucks: EBIT positively impacted by higher unit sales
Daimler Trucks: EBIT positively impacted by higher unit sales Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 127 9.2 614 7.9 97 464 +30% +17% +32% Q3 2016 Q3 2017 Q3 2016 Q3 2017 Q3 2016 Q3 2017 Daimler AG Q3 and January-September 2017 Results / O
Slide 37: Daimler Trucks: EBIT
Daimler Trucks: EBIT - in millions of euros - + 150 6.7%* Higher units sales especially in the NAFTA region 5.9%* and Asia 614 Efficiency enhancements 464 Expenses for planned fixed cost optimization Higher expenses mainly for raw material, new technologies and future products EBIT EBIT Q3 2016 Q3 2
Slide 38: Daimler Trucks: sales increase by 30% mainly driven by NAFTA region and Asia
Daimler Trucks: sales increase by 30% mainly driven by NAFTA region and Asia - in thousands of units - 127 13 Rest of world 97 9 40 Asia 28 8 Latin America 8 45 NAFTA region 31 21 21 EU30* Q3 2016 Q3 2017 * European Union, Switzerland and Norway Daimler AG Q3 and January-September 2017 Results / Oct
Slide 39: Daimler Trucks: incoming orders increase primarily driven by NAFTA region and Indonesia
Daimler Trucks: incoming orders increase primarily driven by NAFTA region and Indonesia - in thousands of units - 117 12 Rest of world 84 7 43 Asia 29 8 Latin America 7 35 NAFTA region 24 17 19 EU30* Q3 2016 Q3 2017 * European Union, Switzerland and Norway Daimler AG Q3 and January-September 2017 Re
Slide 40: Mercedes-Benz Vans: EBIT below prior-year level due to high investment in new products
Mercedes-Benz Vans: EBIT below prior-year level due to high investment in new products Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 93.1 3.1 3.1 312 85.2 218 +9% -1% -30% Q3 2016 Q3 2017 Q3 2016 Q3 2017 Q3 2016 Q3 2017 Daimler AG Q3 and January-
Slide 41: Mercedes-Benz Vans: EBIT
Mercedes-Benz Vans: EBIT - in millions of euros - - 94 10.0%* 312 7.1%* Higher unit sales Higher expenses for new products and raw material 218 End of contract manufacturing EBIT EBIT Q3 2016 Q3 2017 * Return on sales Daimler AG Q3 and January-September 2017 Results / October 20, 2017 / Page 41
Slide 42: Mercedes-Benz Vans: sales increase by 9%
Mercedes-Benz Vans: sales increase by 9% due to market success of attractive product portfolio - in thousands of units - 93.1 85.2 46.2 Sprinter 46.2 26.0 Vito 20.5 12.7 14.6 V-Class 5.8 6.2 Citan Q3 2016 Q3 2017 Daimler AG Q3 and January-September 2017 Results / October 20, 2017 / Page 42
Slide 43: Daimler Buses: negative exchange-rate effects and cost increases only partly offset
Daimler Buses: negative exchange-rate effects and cost increases only partly offset by higher unit sales Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 7.2 1.0 0.9 45 6.2 26 +17% +8% -42% Q3 2016 Q3 2017 Q3 2016 Q3 2017 Q3 2016 Q3 2017 Daimler AG
Slide 44: Daimler Buses: EBIT
Daimler Buses: EBIT - in millions of euros - - 19 4.8%* 45 Sales increase in Latin America Efficiency enhancements 2.6%* Foreign exchange rates 26 Cost inflation mainly in Latin America EBIT EBIT Q3 2016 Q3 2017 * Return on sales Daimler AG Q3 and January-September 2017 Results / October 20, 2017 /
Slide 45: Daimler Buses: sales increase by 17% mainly driven by Latin America
Daimler Buses: sales increase by 17% mainly driven by Latin America - in thousands of units - 7.2 6.2 0.8 Rest of world 0.9 1.6 Latin America (excl. Brazil and Mexico) 1.2 1.0 2.1 Brazil 1.2 0.8 Mexico 1.8 1.9 EU30* Q3 2016 Q3 2017 * European Union, Switzerland and Norway Daimler AG Q3 and January-S
Slide 46: 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 – 17.4 132.6 135.8 507 15.7 438 +11% +2% +16% Q3 2016 Q3 2017 12/31/2016 9/30/2017 Q3 2016 Q3 2017 Daimler AG Q3 and January-September 2017 R
Slide 47: Daimler Financial Services: EBIT
Daimler Financial Services: EBIT - in millions of euros - + 69 18.5%* 17.7%* 507 438 Higher contract volume Cost of risk Higher interest-rate level EBIT EBIT Q3 2016 Q3 2017 * Return on equity Daimler AG Q3 and January-September 2017 Results / October 20, 2017 / Page 47
Slide 48: Daimler Financial Services: further increase in contract volume to 135.8 billion euros
Daimler Financial Services: further increase in contract volume to 135.8 billion euros (+2%) - in billions of euros - 132.6 135.8 24.9 27.5 Africa & Asia-Pacific 54.2 50.5 Americas 31.6 33.9 Europe (excl. Germany) 21.8 23.8 Germany 12/31/2016 9/30/2017 Daimler AG Q3 and January-September 2017 Result
Slide 49: 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% 0.25% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD * as a percentage of portfolio, subjec
Slide 50: 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