Slide 1: Annual Press Conference
Jahrespressekonferenz Annual Press Conference February 6, 2019 Daimler AG
Slide 2: Annual Press Conference - Dr. Dieter Zetsche
Annual Press Conference Dr. Dieter Zetsche Chairman of the Board of Management of Daimler AG Head of Mercedes-Benz Cars February 6, 2019
Slide 3: Contents
Contents Highlights 2018 Divisional Information Group financials Outlook Guidance
Slide 4: Mercedes-Benz Cars
Mercedes-Benz Cars Group sales Mercedes-Benz and smart in million units +0.4% 2.38 2.37 2 1,5 1 0,5 0 2017 2018
Slide 5: Mercedes-Benz Cars Withstanding headwinds
Mercedes-Benz Cars Business challenges and our answers Withstanding headwinds Changeover to WLTP - Number of vehicles in stock back at normal level - Certification completed by the due date September 1, 2018 Initiated measures to prevent air pollution - Software updates - Financial support for hardw
Slide 6: Mercedes-Benz Vans
Mercedes-Benz Vans Group sales in thousand units +5% 421 401 400 300 200 100 0 2017 2018
Slide 7: Daimler Trucks
Daimler Trucks +10% Group sales in thousand units 517 471 400 200 0 2017 2018
Slide 8: Daimler Buses
Daimler Buses Group sales in thousand units +8% 31 30 29 20 10 0 2017 2018
Slide 9: Daimler Financial Services
Daimler Financial Services Contract volume in billion euros +10% 154.1 150 139.9 100 50 0 2017 2018
Slide 10: Mobility Services
Mobility Services Number of customers in million +75% 31 30 18 20 10 0 2017 2018
Slide 11: Key financials
Key financials Daimler 2018 +2% -22% -11% 164.2 167.4 14.3 3.65 3.25 11.1 2017 2018 2017 2018 2017 2018 Revenue EBIT Dividend proposed in billion euros* in billion euros* in euros *The 2017 figures have been adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9)
Slide 12: Annual Press Conference - Bodo Uebber
Annual Press Conference Bodo Uebber Member of the Board of Management Finance & Controlling and Daimler Financial Services February 6, 2019
Slide 13: Contents
Contents Highlights 2018 Divisional Information Group financials Outlook Guidance
Slide 14: Mercedes-Benz Cars
Mercedes-Benz Cars New sales record in a challenging environment +0.4% -1% -18% 2,374 2,383 94.4* 93.1 8,843* 7,216 2017 2018 2017 2018 2017 2018 Unit sales Revenue EBIT in thousand units in billion euros in million euros *Adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9)
Slide 15: Mercedes-Benz Cars EBIT
Mercedes-Benz Cars EBIT in million euros / Return on sales in % 9.4% -1,627 8,843* 7.8% 7,216 + Remeasurement of the investment in Aston Martin + Expenses for voluntary service activities and expenses for a specific vehicle recall in 2017 - Weaker net pricing - Foreign exchange rates - Expenditure f
Slide 16: Mercedes-Benz Vans
Mercedes-Benz Vans Continued growth of business volume +5% +4% -73% 421 13.2* 13.6 1,147* 401 312 2017 2018 2017 2018 2017 2018 Unit sales Revenue EBIT in thousand units in billion euros in million euros *Adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9)
Slide 17: Mercedes-Benz Vans EBIT
Mercedes-Benz Vans EBIT in million euros / Return on sales in % 8.7% - 835 1,147* + Higher unit sales - Higher expenses for new technologies and future products 2.3% - Impacts from Sprinter model change 312 - Governmental proceedings and measures related to diesel vehicles and delivery delays - Reme
Slide 18: Daimler Trucks
Daimler Trucks Strong business development based on attractive products and rising demand in core markets +10% +7% +16 % 2,753 517 38.3 471 35.8* 2,383* 2017 2018 2017 2018 2017 2018 Unit sales Revenue EBIT in thousand units in billion euros in million euros *Adjusted based on new IFRS 15 standards
Slide 19: Daimler Trucks EBIT
Daimler Trucks EBIT in million euros / Return on sales in % +370 7.2% 6.7% 2,753 2,383* + Higher unit sales especially in the NAFTA region + Efficiency enhancements + Expenses for fixed cost optimization in 2017 - Higher costs, mainly related to supply chain constraints and raw material - Foreign ex
Slide 20: Daimler Buses
Daimler Buses Very heterogeneous business development in our core regions +8% +0% -6% 30.9 28.7 4.5* 4.5 281* 265 2017 2018 2017 2018 2017 2018 Unit sales Revenue EBIT in thousand units in billion euros in million euros *Adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9)
Slide 21: Daimler Buses EBIT
Daimler Buses EBIT in million euros / Return on sales in % -16 6.2% 5.9% 281* 265 + Higher unit sales - Product mix - Inflation-related cost increases EBIT EBIT 2017 2018 *Adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9)
Slide 22: Daimler Financial Services
Daimler Financial Services Further business growth EBIT impacted by settlement of Toll Collect arbitration proceedings +2% +10% -30% 154.1 70.7 71.9 139.9 1,970 1,384 2017 2018 12/31/17 12/31/18 12/31/17 12/31/18 2017 2018 New business Contract volume EBIT in billion euros in billion euros in millio
Slide 23: Creating one of the leading providers of urban mobility
Daimler Financial Services 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
Slide 24: Daimler Financial Services EBIT
Daimler Financial Services EBIT in million euros / Return on equity in % - 586 17.7% 1,970 11.1% + Higher contract volume 1,384 - Settlement of the Toll Collect arbitration proceedings - Higher interest-rate level - Cost of risk in some markets EBIT EBIT 2017 2018
Slide 25: Contents
Contents Highlights 2018 Divisional Information Group financials Outlook Guidance
Slide 26: Daimler: Key figures
Daimler: Key figures in billion euros 2017 2018 Unit sales (in thousands of units) 3,274 3,352 Revenue* 164.2 167.4 EBIT* 14.3 11.1 Net profit* 10.6 7.6 Free cash flow of the industrial business 2.0 2.9 Earnings per share (in euros)* 9.61 6.78 Dividend per share (in euros) 3.65 3.25 *The 2017 figure
Slide 27: Continued high level of net industrial liquidity
Continued high level of net industrial liquidity in billion euros Free cash flow industrial business FY 2018: 2.9 billion euros +5.7 -2.8 +0.0 -3.9 16.6 +0.7 16.3 Net industrial Earnings and Working capital M&A Dividend Other Net industrial liquidity other cash flow impact effects payment (mainly FX
Slide 28: Development of dividend per share
Development of dividend per share in euros 3.65 3.25 3.25 3.25 2.45 2014 2015 2016 2017 2018 proposed
Slide 29: 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 6.7 7.5 7.3 property, plant 10.5 and equipment Research and 8.7 9.1 9.2 development expenditure 2014 2015 2016 2017 2018 Plan 2019/20 (aver
Slide 30: Project Future: Our new corporate structure
Project Future: Our new corporate structure Next steps Decision July 2018 Board of Management and Supervisory Board DAIMLER AG Strategy, Governance & Services May Decision 2019 Annual Shareholders‘ Meeting MERCEDES-BENZ AG DAIMLER MOBILITY AG November Planned start Cars & Vans Financial & Mobility S
Slide 31: Annual Press Conference - Dr. Dieter Zetsche
Annual Press Conference Dr. Dieter Zetsche Chairman of the Board of Management of Daimler AG Head of Mercedes-Benz Cars February 6, 2019
Slide 32: Contents
Contents Highlights 2018 Divisional Information Group financials Outlook Guidance
Slide 33: Connectivity: Making our cars even more intelligent
Connectivity: Making our cars even more intelligent Introduction of gesture control functions Ability to solve even more complex issues Further improvement of voice control system
Slide 34: Autonomous driving: Taking it up to the next level
Autonomous driving: Taking it up to the next level Testing Level 4 on public roads in Beijing Pioneering an automated car service in San José
Slide 35: Automated driving: Leading the change in logistics
Automated driving: Leading the change in logistics New unit to work on autonomous vans Partially-automated trucks in serial production Highly automated trucks on the road within a decade
Slide 36: Shared: Teaming up for mobility services
Shared: Teaming up for mobility services Merging our services with BMW’s Developing premium ride-hailing for China
Slide 37: E-mobility: Entering a new era
E-mobility: Entering a new era Preparing for EQC’s serial production in Bremen and Beijing Offering 130 electrified Mercedes-Benz Cars variants by 2022 Combined power consumption: 22.2 kWh/100 km; combined CO₂ emissions: 0 g/km, provisional figures.
Slide 38: E-mobility: Flipping the switch
E-mobility: Flipping the switch Electrifying vans, trucks and buses Buying battery cells for 20 billion euros
Slide 39: Purpose: First move the world
Purpose: First move the world
Slide 40: Contents
Contents Highlights 2018 Divisional Information Group financials Outlook Guidance
Slide 41: Sales outlook
Sales outlook for 2019 Mercedes-Benz Cars Slightly higher unit sales Daimler Trucks Slightly higher unit sales Mercedes-Benz Vans Significantly higher unit sales Daimler Buses Significantly higher unit sales
Slide 42: Return on sales outlook
Return on sales outlook for 2019 EBIT Daimler group Slightly above the prior-year level Mercedes-Benz Cars Return on sales in the range of 6 to 8% Daimler Trucks Return on sales in the range of 7 to 9% Mercedes-Benz Vans Return on sales in the range of 5 to 7% Daimler Buses Return on sales in the ra
Slide 43: Improving future profits to achieve target margins
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 44: Setting the course for the next decade
Setting the course for the next decade
Slide 45: Appendix
Jahrespressekonferenz Annual Press Conference February 6, 2019 Appendix Daimler AG
Slide 46: Financial and balance sheet figures support our A-rating
Financial and balance sheet figures support our financial strength and A-rating in billion euros Daimler Group Dec. 31, 2017 Dec. 31, 2018 Equity ratio 24.0% 22.2% Gross liquidity 22.1 25.4 Funded status of pension obligations -4.5 -6.2 Funding ratio 86% 80% Industrial business Equity ratio 46.4% 42
Slide 47: Financial flexibility over a 12-month period
Financial flexibility over a 12-month period in billion euros 57.4 The financial flexibility provides support to mitigate risk and volatility 49.1 through a balanced mix of funding instruments and clear principles ABS Other potential Commercial paper Daimler follows a financial management to safegua
Slide 48: Sales development of all automotive divisions
Sales development of all automotive divisions in thousand units 2017 2018 % change Daimler Group 3,273.9 3,352.4 +2 of which Mercedes-Benz Cars 2,373.5 2,382.8 +0 Daimler Trucks 470.7 517.3 +10 Mercedes-Benz Vans 401.0 421.4 +5 Daimler Buses 28.7 30.9 +8
Slide 49: Revenue by division
Revenue by division in billion euros 2017* 2018 % change Daimler Group 164.2 167.4 +2 of which Mercedes-Benz Cars 94.4 93.1 -1 Daimler Trucks 35.8 38.3 +7 Mercedes-Benz Vans 13.2 13.6 +4 Daimler Buses 4.5 4.5 +0 Daimler Financial Services 24.5** 26.3 +7 Contract volume of Daimler Financial Services*
Slide 50: Revenue by region
Revenue by region in billion euros 2017* 2018 % change Daimler Group 164.2 167.4 +2 of which Europe 68.3 68.5 +0 of which Germany 24.3 24.8 +2 NAFTA 46.5 48.0 +3 of which United States 40.1 41.2 +3 Asia 39.1 40.6 +4 of which China** 18.8 19.8 +5 Other markets 10.2 10.3 +1 * adjusted based on new IFR
Slide 51: Group EBIT in 2018
Group EBIT in 2018 in million euros +644 -774 14,348* -2,236 • Cars -277 • Cars -527 • Trucks +841 • Trucks -270 • Vans • Buses +57 +23 • Vans -10 -168 -132 -457 • Buses +33 • Cars -1,176 -93 11,132 • Trucks -106 of which: • Vans -882 of which: • Cars: • Cars: • Buses -72 Remeasurement Voluntary ser
Slide 52: Group EBIT in Q4 2018
Group EBIT in Q4 2018 in million euros +787 -122 -1,115 • Cars -121 3,421* • Trucks • Vans -16 -9 • Buses +24 • Cars • Trucks +509 +185 -38 -90 -174 • Vans +58 • Cars -777 2,669 • Buses +35 • Trucks -96 • Vans -215 of which: • Buses -27 • Cars: Remeasurement Aston Martin -74 Voluntary service activi
Slide 53: EBIT by division
EBIT by division EBIT in million euros; RoS/RoE in % 2017* 2018 EBIT RoS/RoE** EBIT RoS/RoE** Daimler Group 14,348 8.9 11,132 6.9 of which Mercedes-Benz Cars 8,843 9.4 7,216 7.8 Daimler Trucks 2,383 6.7 2,753 7.2 Mercedes-Benz Vans 1,147 8.7 312 2.3 Daimler Buses 281 6.2 265 5.9 Daimler Financial Se
Slide 54: EBIT in Q4 2018
EBIT in Q4 2018 EBIT in million euros; RoS/RoE in % Q4 2017* Q4 2018 EBIT RoS/RoE** EBIT RoS/RoE** Daimler Group 3,421 8.1 2,669 5.8 of which Mercedes-Benz Cars 2,375 9.5 1,883 7.3 Daimler Trucks 559 5.8 710 6.8 Mercedes-Benz Vans 247 6.6 81 2.0 Daimler Buses 99 7.3 132 8.6 Daimler Financial Service
Slide 55: 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 around the prior-year level NAFTA region around the prior-year level Medium- and EU30 around the prior-year level heavy-duty truck Japan* slight decr
Slide 56: Capital expenditure / Research and development
Capital expenditure / Research and development in billion euros Investment in property, plant Research and development and equipment expenditure 9.1 9.2 8.7 7.5 7.3 6.7 Actual Actual Plan Actual Actual Plan 2017 2018 2019/2020 2017 2018 2019/2020 (average p.a.) (average p.a.)
Slide 57: 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 58: Mercedes-Benz Cars New sales record
Mercedes-Benz Cars New sales record in thousand units 2,374 2,383 136 130 smart 25 19 Sports Cars 823 829 SUVs* 79 84 S-Class 398 434 E-Class 493 478 C-Class 420 409 A-/B-Class The EQC – power consumption combined: 22.2 kWh/100 km; CO2 emissions combined: 0 g/km, preliminary figures (Information on
Slide 59: Mercedes-Benz Cars Globally balanced sales structure
Mercedes-Benz Cars Globally balanced sales structure in thousand units 2,374 2,383 403 395 Rest of world 694 659 Europe excl. Germany 320 324 Germany 338 327 United States 619 678 China 2017 2018
Slide 60: Mercedes-Benz Cars in China
Mercedes-Benz Cars in China: strong sales growth with increasing share of locally produced vehicles in thousand units imported locally produced 678 619 193 488 196 400 171 293 150 239 485 147 423 123 317 250 116 146 2013 2014 2015 2016 2017 2018
Slide 61: Daimler Trucks Sales increase by 10%
Daimler Trucks Sales increase by 10% in thousand units 517 471 39 Rest of world 44 165 Asia 149 38 Latin America 31 190 NAFTA region 165 82 85 EU30* 2017 2018 * European Union, Switzerland and Norway
Slide 62: Daimler Trucks Incoming orders increase
Daimler Trucks Incoming orders increase primarily in thousand units driven by NAFTA region 589 43 Rest of world 501 47 163 Asia 162 35 Latin America 29 256 NAFTA region 180 83 92 EU30* 2017 2018 * European Union, Switzerland and Norway
Slide 63: Mercedes-Benz Vans Sales increase by 5%
Mercedes-Benz Vans Sales increase by 5% in thousand units 421.4 401.0 206.3 Sprinter 200.5 108.3 Vito 111.8 63.9 V-Class 59.3 3.3 16.7 X-Class 26.1 26.3 Citan 2017 2018
Slide 64: Daimler Buses Sales increase by 8%
Daimler Buses Sales increase by 8% in thousand units 30.9 28.7 4.7 Rest of world 3.9 4.9 Latin America 5.5 (excl. Brazil and Mexico) 8.8 Brazil 7.2 3.4 3.2 Mexico 8.7 9.3 EU30* 2017 2018 * European Union, Switzerland and Norway
Slide 65: Daimler Financial Services Further increase in contract volume
Daimler Financial Services Further increase in contract volume in billion euros to 154.1 billion euros (+10%) 154.1 139.9 Africa & 33.7 Asia-Pacific 29.4 56.1 Americas 50.7 35.6 38.0 Europe (excl. Germany) 24.1 26.2 Germany 12/31/2017 12/31/2018
Slide 66: Daimler Mobility Services: ongoing business expansion
Daimler Mobility Services: ongoing business expansion Ride-Hailing Group Combined YTD 12/18 change* 25.3 27.7 132.9 +61% Interactions in millions 25 20** >110 +63% Cities 3.6 6.2 21.3 +75% Customers in millions * car2go, moovel and Ride-Hailing Group (incl. mytaxi, Beat since 02/17, Clever Taxi sinc
Slide 67: Daimler Financial Services: net credit losses at low level
Daimler Financial Services: net credit losses* at low level 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% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 * as a percentage of portfolio, subject to credit risk
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