Slide 1: Capital Market Presentation Q2 and Half-Year 2019
Capital Market Presentation Q2 and Half-Year 2019 July 24, 2019
Slide 2: Contents
Contents Presentation charts on Q2 and H1 2019 results Additional financial details Strategy and technology Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 2
Slide 3: Highlights of Q2 2019
Highlights of Q2 2019 • Strong product portfolio, defending global market leadership • Earnings impacted by exceptional items reported on June 23 and July 12, 2019 • Free Cash Flow of the industrial business reflecting high level of investments for future products and working capital • Portfolio rev
Slide 4: Market developments in Q2 2019
Market developments in Q2 2019 • Slowdown of global passenger car market continues in Q2, premium segment proves more resilient • Mercedes-Benz Cars sales volume minus 5% in H1; recovery in H2 expected to FY 2018 level • Favorable truck market development in NAFTA, EU30 and Brazil; headwinds in some
Slide 5: Financial performance in Q2 2019
Financial performance in Q2 2019 Unit sales Revenue Free cash flow (ind. business) in thousands of units in billions of euros in billions of euros 1.8 833 822 40.8 42.7 -1% +5% -3.3 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q1-Q2 2018 Q1-Q2 2019 EBIT Net profit Earnings per share in billions of euros in billi
Slide 6: Group EBIT in Q2 2019
Group EBIT in Q2 2019 in millions of euros 2,640 +60 -213 +418 -4,166 2,611 -351 • Cars -170 • Cars -235 -53 +110 • Diesel -2,553 • Vans -62 • Trucks +232 • Vans -30 • Takata -987 • Cars -334 • DFS: • Buses +60 • Trucks +56 Toll collect • Product • Buses -4 • Vans +61 arbitration portfolio -459 • Tr
Slide 7: Net industrial liquidity
Net industrial liquidity in billions of euros Free cash flow industrial business H1 2019: minus €3.3 billion 16.3 -3.2 +1.9 -3.5 +3.6 -5.0 13.1 -0.3 -3.5 +0.3 6.6 Net industrial Effects from Net industrial Earnings and Working Depreciation and Additions to Investments in Dividend Other Net industria
Slide 8: Mercedes-Benz Cars
Mercedes-Benz Cars Unit sales Revenue EBIT in thousands of units in billions of euros in millions of euros 1,901 591 576 22.6 22.3 -3% -1% -672 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 8
Slide 9: Mercedes-Benz Cars: EBIT
Mercedes-Benz Cars: EBIT in millions of euros - 2,573 8.4%* Lower unit sales Governmental and court Net pricing proceedings and measures 1,901 relating to diesel vehicles Foreign exchange rates 5.2%* Expenses in connection Other cost changes with Takata airbags 1,162 (except disclosed items) Vehicle
Slide 10: Mercedes-Benz Vans
Mercedes-Benz Vans Unit sales Revenue EBIT in thousands of units in billions of euros in millions of euros 152 110.9 111.1 3.5 3.7 +4% -2,050 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 10
Slide 11: Mercedes-Benz Vans: EBIT
Mercedes-Benz Vans: EBIT in millions of euros - 2,202 4.3%* 3.3%* 152 121 Net pricing Governmental and court proceedings and measures Foreign exchange rates relating to diesel vehicles Product portfolio review Expenses in connection with Takata airbags -2,050 -56.1%* EBIT Disclosed items EBIT EBIT Q
Slide 12: Daimler Trucks
Daimler Trucks Unit sales Revenue EBIT in thousands of units in billions of euros in millions of euros 124 126 10.5 725 9.2 546 +2% +14% +33% Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 12
Slide 13: Daimler Trucks: EBIT
Daimler Trucks: EBIT in millions of euros + 179 7.4%* 6.9%* Higher unit sales, especially Expenses in connection 772 5.9%* in the NAFTA region with Takata airbags 725 Net pricing 546 Foreign exchange rates Other cost changes (except disclosed items) EBIT Disclosed items EBIT EBIT Q2 2019 Q2 2018 in
Slide 14: Daimler Trucks: Incoming Orders
Daimler Trucks: Incoming Orders in thousands of units 144 11 41 96 8 7 Rest of world 33 Asia 63 10 Latin America 28 NAFTA region 21 18 EU30* Q2 2018 Q2 2019 * European Union, Switzerland and Norway Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 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 8.4 1.3 106 7.5 1.1 66 +12% +18% +61% Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 15
Slide 16: Daimler Buses: EBIT
Daimler Buses: EBIT in millions of euros + 40 8.4%* Higher unit sales in EU30 region and Brazil, partially reduced by weaker product mix 106 6.1%* Delivery delays in Q1/2019 caused by a changed 66 internal certification process for coaches and intercity buses partially compensated in Q2/2019 Foreign
Slide 17: Daimler Financial Services
Daimler Financial Services New business Contract volume EBIT in billions of euros in billions of euros in millions of euros 18.3 18.4 154.1 156.5 431 +2% +553% 66 Q2 2018 Q2 2019 12/31/2018 6/30/2019 Q2 2018 Q2 2019 Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page
Slide 18: Daimler Financial Services: EBIT
Daimler Financial Services: EBIT in millions of euros + 365 15.5%* 484 12.5%* Settlement of the Toll Higher contract volume Collect arbitration 431 proceedings Normalization of cost of risk Higher expenses for new mobility solutions 2.1%* 66 EBIT Q2 2018 EBIT Disclosed items EBIT before disclosed Q2
Slide 19: YOUR NOW Joint Ventures
YOUR NOW Joint Ventures The Mobility Powerhouse H1 2019 Interactions in millions 268.6 122.0 18.2 16.4 111.9 0.12 Customers** in millions >75 30.4 >4 7.5 33.4 0.02 Cities** >1,200 130 31 22 >1,200* n/a GMV RR*** in bn € 3.4 * For U.S. entity of PARK NOW, June 2019 figure estimated ** Partially, data
Slide 20: 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 around the prior-year level NAFTA region slight growth Heavy- and EU30 around the prior-y
Slide 21: 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 Unit sales at the prior-year level Growth in the United States and in EU30 region, lower unit sales in Russia and Turkey Mercedes-Benz Vans Addition
Slide 22: 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 7 to
Slide 23: Measures and priorities for H2
Measures and priorities for H2 • Focus on 2019 operational challenges and financial targets • Improve Daimler efficiency in the short and medium term • Enhance free cash flow focus and prioritize capital allocation • Continue company transformation and establish sustainable business strategy Daimler
Slide 24: Contents
Contents Presentation charts on Q2 and H1 2019 results Additional financial details Strategy and technology Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 24
Slide 25: Unit sales by division
Unit sales by division in thousands of units Q2 2018 Q2 2019 % change Daimler Group 833.0 821.7 -1 of which Mercedes-Benz Cars 590.7 575.6 -3 Mercedes-Benz Vans 110.9 111.1 +0 Daimler Trucks 123.9 126.5 +2 Daimler Buses 7.5 8.4 +12 Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July
Slide 26: Revenue by division
Revenue by division in billions of euros Q2 2018 Q2 2019 % change Daimler Group 40.8 42.7 +5 of which Mercedes-Benz Cars 22.6 22.3 -1 Mercedes-Benz Vans 3.5 3.7 +4 Daimler Trucks 9.2 10.5 +14 Daimler Buses 1.1 1.3 +18 Daimler Financial Services 6.6 7.1 +9 Daimler AG Capital Market Presentation Q2 an
Slide 27: Revenue by region
Revenue by region in billions of euros Q2 2018 Q2 2019 % change Daimler Group 40.8 42.7 +5 of which Europe 17.3 17.2 -0 of which Germany 6.2 6.7 +8 NAFTA 11.5 13.2 +15 of which United States 9.7 11.4 +17 Asia 9.5 9.7 +2 of which China* 4.5 4.7 +4 Other markets 2.5 2.5 +1 * excluding revenue of not f
Slide 28: EBIT by division
EBIT by division EBIT in millions of euros; RoS/RoE in % Q2 2018 Q2 2019 EBIT RoS/RoE* EBIT RoS/RoE* Daimler Group 2,640 7.5 -1,555 -5.6 of which Mercedes-Benz Cars 1,901 8.4 -672 -3.0 Mercedes-Benz Vans 152 4.3 -2,050 -56.1 Daimler Trucks 546 5.9 725 6.9 Daimler Buses 66 6.1 106 8.4 Daimler Financi
Slide 29: Key balance sheet and financial figures
Key balance sheet and financial figures in billions of euros Daimler Group Dec. 31, 2018 June 30, 2019 Equity ratio 22.2% 21.0% Gross liquidity 25.4 21.5 Funded status of pension obligations -6.2 -8.7 Funding ratio 80% 76%* Industrial business Equity ratio 42.8% 38.2% Net liquidity 16.3 6.6 Free cas
Slide 30: Consolidated statement of income (condensed)
Consolidated statement of income (condensed) in millions of euros Daimler Group Industrial Business Q2 2018 Q2 2019 Q2 2018 Q2 2019 Revenue 40,756 42,650 34,186 35,505 Cost of sales -32,506 -37,104 -26,853 -30,878 Gross profit 8,250 5,546 7,333 4,627 Selling expenses -3,253 -3,072 -3,045 -2,875 Gene
Slide 31: Statement of cash flows (condensed)
Statement of cash flows (condensed) in millions of euros Daimler Group Industrial Business Q1-Q2 2018 Q1-Q2 2019 Q1-Q2 2018 Q1-Q2 2019 Cash provided by operating activities 960 2,198 5,797 2,356 of which: Profit before income taxes 5,777 951 5,165 -685 Depreciation and amortization/impairments 2,973
Slide 32: Statement of financial position (condensed)
Statement of financial position (condensed) in millions of euros Daimler Group Industrial Business Dec. 31, 2018 June 30, 2019 Dec. 31, 2018 June 30, 2019 Intangible assets 14,801 15,383 13,913 14,504 Property, plant and equipment 30,948 35,794 30,859 35,445 Receivables from financial services & equ
Slide 33: Financial flexibility over a 12-month period
Financial flexibility over a 12-month period in billions of euros 58.5 Other, incl. finance lease 50.6 Commercial paper ABS Bank loans The financial flexibility provides support to mitigate risk and volatility potential through a balanced mix of funding instruments and clear principles Credit Daimle
Slide 34: Mercedes-Benz Cars: unit sales by segments
Mercedes-Benz Cars: unit sales by segments in thousands of units 591 576 36 32 smart 5 7 Sports Cars 208 181 SUVs 19 18 S-Class 107 102 E-Class 113 C-Class 118 97 124 A-/B-Class Q2 2018 Q2 2019 Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 34
Slide 35: Mercedes-Benz Cars: unit sales by regions
Mercedes-Benz Cars: unit sales by regions in thousands of units 591 576 96 88 Rest of world 168 162 Europe excl. Germany 82 83 Germany 78 75 United States 167 168 China Q2 2018 Q2 2019 Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 35
Slide 36: Mercedes-Benz Cars: unit sales in China
Mercedes-Benz Cars: unit sales in China in thousands of units imported locally produced 678 619 193 488 196 400 171 341 293 150 59 485 423 147 317 282 250 146 2014 2015 2016 2017 2018 2019 YTD 06 Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 36
Slide 37: Mercedes-Benz Vans: unit sales by segments
Mercedes-Benz Vans: unit sales by segments in thousands of units 110.9 111.1 51.7 59.1 Sprinter 27.5 27.0 Vito 18.7 15.4 V-Class 5.2 3.1 X-Class 7.7 6.4 Citan Q2 2018 Q2 2019 Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 37
Slide 38: Daimler Trucks: unit sales by regions
Daimler Trucks: unit sales by regions in thousands of units 124 126 11 7 Rest of world 34 Asia 40 10 Latin America 8 55 NAFTA region 44 21 20 EU30* Q2 2018 Q2 2019 * European Union, Switzerland and Norway Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 38
Slide 39: Daimler Buses: unit sales by regions
Daimler Buses: unit sales by regions in thousands of units 8.4 7.5 1.2 Rest of world 1.1 Latin America 1.0 0.9 (excl. Brazil and Mexico) 2.7 Brazil 2.5 0.7 Mexico 0.8 2.8 EU30* 2.2 Q2 2018 Q2 2019 * European Union, Switzerland and Norway Daimler AG Capital Market Presentation Q2 and Half-Year 2019 /
Slide 40: Daimler Financial Services: contract volume
Daimler Financial Services: contract volume in billions of euros 154.1 156.5 33.7 33.9 Africa & Asia-Pacific 56.1 57.1 Americas 38.0 38.7 Europe (excl. Germany) 26.2 26.7 Germany 12/31/2018 6/30/2019 Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 40
Slide 41: Daimler Financial Services: net credit losses
Daimler Financial Services: 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% 0.20% 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
Slide 42: Contents
Contents Presentation charts on Q2 and H1 2019 results Additional financial details Strategy and technology Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 42
Slide 43: Daimler's investments go beyond the actual vehicle
Daimler’s investments go beyond the actual vehicle We focus on future-oriented technologies and invest in innovative companies and startups.* C A S E ** * Not all investments have been disclosed. ** Subject to approval by authorities. Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / Ju
Slide 44: Sustainability is one of the basic principles of Daimler's corporate strategy
Sustainability is one of the basic principles of Daimler’s corporate strategy embedded in the entire value chain AMBITION2039 Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 44
Slide 45: Mercedes-Benz: Leading premium car and van brand
Mercedes-Benz: Leading premium car and van brand CORE Electric Connected Autonomous Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 45
Slide 46: With our unique products we are well positioned for growth
With our unique products we are well positioned for growth Roadmap to Growth Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 46
Slide 47: Mercedes-Benz brand experience – transferring technology into a luxury experience
Mercedes-Benz brand experience – we are transferring technology into a luxury experience Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 47
Slide 48: MBUX is the digital revolution in the cockpit
MBUX is the digital revolution in the cockpit Intuitive and intelligent multimedia system with ability to learn thanks to artificial intelligence. Touch Controls Take Rates Compact Cars Take Rate On-Board- Navigation Touchscreen Take Rate Hey High End Mercedes Speech Control Take Rate Entry Interior
Slide 49: Mercedes-Benz is developing DRIVE PILOT, an SAE Level 3 system
Mercedes-Benz is developing DRIVE PILOT, an SAE Level 3 conditional automated driving system feature DRIVE PILOT has the potential to transform the way people live and work. The possibilities offered by automated driving have captured the public’s imagination in a way that few new vehicle technologi
Slide 50: Daimler and BMW launch long-term development cooperation for automated driving
Daimler and BMW launch long-term development cooperation 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 on highways and automated parkin
Slide 51: Daimler and Bosch are pilot testing on-demand ride-hailing service in San José
Daimler and Bosch are pilot testing on-demand ride-hailing service in San José in H-2 2019 • Hardware • Vehicles (Sensors, Actuators, ECUs) • Integration of system into the • Software for HW vehicle line components Project House with locations in Germany and USA Joint development of AD system Softwa
Slide 52: 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 53: Mercedes-Benz is electrifying its entire powertrain portfolio
On the road to emission free mobility – Mercedes-Benz is electrifying its entire powertrain portfolio Plug-In Hybrids Highly efficient 48 V Performance-Hybrids Battery Electric Vehicles & Technology Fuel Cell Electric Vehicles Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2
Slide 54: The future is electric and Mercedes-Benz is setting the course
The future is electric and Mercedes-Benz is setting the course for tomorrow today 2022: Above 130 electrified alternatives envisaged to be realized A total of more than 10 BEV vehicle types planned 2025: Estimated BEV volume share between 15% and 25% 2030: Ambition of 50% share xEV (BEV & Pl
Slide 55: We are developing a charging network together with partners
We are developing a charging network together with partners to improve our customer’s 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
Slide 56: Daimler Trucks: Leader in the world of truck and bus market
Daimler Trucks: Leader in the world of truck and bus market CORE Electric Connected Automated Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 56
Slide 57: Daimler Trucks mission is to make customers more successful
Daimler Trucks mission is to make customers more successful Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 57
Slide 58: Daimler Truck has leading brands and strong market positions around the world
Daimler Truck has leading brands and strong market positions around the world Our strategy For all who keep the world moving Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 58
Slide 59: China: we are well prepared to tap into the biggest market
China: we are well prepared to tap into the biggest market Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 59
Slide 60: We push innovation and shape the logistics and passenger transport of tomorrow
We push innovation and shape the logistics and passenger transport of tomorrow Daimler Truck avg. R&D investment Investment in Automated Level 4 (2020 & 2021) ~ 1.4 bn € > 500 mn € Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 60
Slide 61: Daimler Truck strives to develop highly automated trucks
Daimler Truck strives to develop highly automated trucks for market launch within next 10 years • Torc Robotics is one of most experienced self-driving vehicle teams • Torc Robotics to retain location, name, and team members while working closely with Daimler Trucks research and development teams, e
Slide 62: Wide range of electric solutions for customers and the environment
Already today we have a wide range of electric solutions that deliver maximum benefit for customers and the environment 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
Slide 63: Hundreds of thousands of trucks are online worldwide
Hundreds of thousands of trucks are online worldwide* Using one common piece of hardware: Truck Data Center Enabling flash over the air, starting with our new Freightliner Cascadia New Tech & Data Hub in Lisbon Mercedes-Benz Uptime * Provided internet availability. Daimler AG Capital Market Presenta
Slide 64: Daimler Mobility: providing automotive financing and innovative mobility services
Daimler Mobility: providing automotive financing as well as innovative mobility services Daimler AG Capital Market Presentation Q2 and Half-Year 2019 / July 24, 2019 / Page 64
Slide 65: Daimler Mobility drives the digitization of the industry
Daimler Mobility drives the digitization of the industry providing customer focused automotive services Vehicle Mobility Financing, Fleet Mobility Digital Mobility Future Mobility Manufacturer Leasing & Insurance Management & Solutions Customer Operations “Somebody needs to “Somebody needs “Somebody
Slide 66: Growing core financial services business generates brand retention and loyalty
With our growing core financial services business we generate brand retention and loyalty in over 40 countries Mobility Fleet Mobility Digital Financing, Leasing & Management & Mobility Insurance Operations Solutions 11.7 % CAGR 154 156 140 133 5.4mn 2018: >40% 117 Financed or Daimler share leased v
Slide 67: Daimler Mobility expands in strategic relevant channels and products
Daimler Mobility expands in strategic relevant channels and products utilizing market potential for Daimler vehicles Fleet Mobility Platform Business Innovative, sustainable and cost-efficient mobility solutions is a showcase example for digital financing Cross-brand premium used-vehicle platform fo
Slide 68: 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