Slide 1: Q3 and January-September 2018 Results
Q3 and January-September 2018 Results Bodo Uebber Member of the Board of Management Finance & Controlling and Daimler Financial Services October 25, 2018
Slide 2: Contents
Contents Results for Q3 2018 Outlook for 2018 Development at the divisions Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 2
Slide 3: Highlights of Q3 2018
Highlights of Q3 2018 Unit sales Revenue – in thousands of units – – in billions of euros – World premiere of the new, fully-electric EQC** 824 795 40.7* 40.2 Presentation of the new A-Class sedan, B-Class and GLE -4% -1% World premiere of the new Mercedes-Benz Actros with Active Drive Assist Q3 201
Slide 4: Support of the German federal government's concept for cleaner air
Support of the German federal government’s concept for cleaner air Mercedes-Benz offers an exchange premium for diesel vehicles up to €10,000 in 14 priority regions in Germany The trade-in program will be supplemented by attractive financing and leasing offers The package of measures builds on the e
Slide 5: High level of net liquidity
High level of net liquidity - in billions of euros - Free cash flow industrial business January-September 2018: minus €0.1 billion +3.0 -3.1 16.6 +0.0 -3.9 +0.9 13.5 Net industrial Earnings and Working capital M&A effects Dividend payment Other Net industrial liquidity other cash flow impact Daimler
Slide 6: Key balance sheet and financial figures
Key balance sheet and financial figures Daimler Group Dec. 31, 2017 Sept. 30, 2018 Equity ratio 24.0% 23.7% Gross liquidity 22.1 24.9 Funded status of pension obligations -4.5 -4.8 Funding ratio 86% 85% Industrial business Equity ratio 46.4% 45.3% Net liquidity 16.6 13.5 Free cash flow (January-Sept
Slide 7: Financial flexibility over a 12-month period
Financial flexibility over a 12-month period - in billions of euros - 55.2 The financial flexibility provides support to mitigate risk and volatility 47.1 through a balanced mix of funding instruments and clear principles ABS Other potential Commercial paper Daimler follows a financial management to
Slide 8: Units sales by division
Units sales by division Q3 2017 Q3 2018 % change Daimler Group 824.1 794.7 -4 of which Mercedes-Benz Cars 597.3 559.5 -6 Daimler Trucks 126.6 136.1 +8 Mercedes-Benz Vans 93.1 91.4 -2 Daimler Buses 7.2 7.7 +7 in thousands of units Daimler AG Q3 and January-September 2018 Results / October 25, 2018 /
Slide 9: Revenue by division
Revenue by division Q3 2017* Q3 2018 % change Daimler Group 40.7 40.2 -1 of which Mercedes-Benz Cars 23.4 21.7 -7 Daimler Trucks 9.2 10.0 +9 Mercedes-Benz Vans 3.1 3.0 -2 Daimler Buses 1.0 1.1 +3 Daimler Financial Services 5.8 6.3 +7 Contract volume of Daimler Financial Services** 139.9 148.8 +6 in
Slide 10: Revenue by region
Revenue by region Q3 2017* Q3 2018 % change Daimler Group 40.7 40.2 -1 of which Europe 16.7 16.2 -3 of which Germany 5.8 5.9 +2 NAFTA 11.5 11.7 +2 of which United States 9.9 10.1 +2 Asia 9.9 9.7 -2 of which China** 4.6 4.7 +3 Other markets 2.6 2.6 +1 in billions of euros * adjusted based on new IFRS
Slide 11: EBIT by division
EBIT by division Q3 2017* Q3 2018 - EBIT in millions of euros; RoS/RoE in % - EBIT RoS/RoE** EBIT RoS/RoE** Daimler Group 3,409 8.3 2,488 6.2 of which Mercedes-Benz Cars 2,105 9.0 1,372 6.3 Daimler Trucks 614 6.7 850 8.5 Mercedes-Benz Vans 214 6.9 -93 -3.1 Daimler Buses 32 3.1 30 2.8 Daimler Financi
Slide 12: Group EBIT in Q3 2018
Group EBIT in Q3 2018 - in millions of euros - 3,409* -810 -274 +708 2,488 • Cars -942 -430 • Trucks +149 • Cars -237 • Vans • Buses -27 +10 • Trucks -31 -116 +1 • Vans -6 • Buses 0 • Cars -191 • Trucks +49 • Cars: • Vans -275 Remeasurement Aston Martin +185 • Buses -13 Specific vehicle recall** +23
Slide 13: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights World premiere of the new fully-electric EQC* * electricity consumption combined: 22.2 kWh/100 km; CO2 emissions combined: 0 g/km, preliminary figures (figures on electricity consumption and CO2 emissions are preliminary and calculated by Technical Service. Fig
Slide 14: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights Presentation of the Mercedes-Benz A-Class Sedan Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 14
Slide 15: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights Presentation of the new Mercedes-AMG A 35 4MATIC* * combined fuel consumption: 7.4-7.3 l/100 km; combined CO2 emissions: 169-167 g/km Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 15
Slide 16: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights World premiere of the new Mercedes-Benz B-Class Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 16
Slide 17: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights The new Mercedes-AMG C 63 family is available to order* * combined fuel consumption: 10.4-9.9 l/100 km; combined CO2 emissions: 236-227 g/km Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 17
Slide 18: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights Sales launch of the new Mercedes-AMG GT 4-door Coupé Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 18
Slide 19: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights Presentation of the new Mercedes-Benz GLE Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 19
Slide 20: Daimler Trucks: product highlights
Daimler Trucks: product highlights World premiere of the new Mercedes-Benz Actros with Active Drive Assist and MirrorCam Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 20
Slide 21: Daimler Trucks: product highlights
Daimler Trucks: product highlights Start of practical trials for the all-electric heavy-duty eActros truck Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 21
Slide 22: Daimler Trucks: product highlights
Daimler Trucks: product highlights The all-electric FUSO eCanter and the E-FUSO Vision One were presented at the IAA in Hanover Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 22
Slide 23: Mercedes-Benz Vans: product highlights
Mercedes-Benz Vans: product highlights Presentation of the Concept Sprinter F-CELL Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 23
Slide 24: Mercedes-Benz Vans: product highlights
Mercedes-Benz Vans: product highlights The new Sprinter for the North American market will be produced in South Carolina Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 24
Slide 25: Mercedes-Benz Vans: product highlights
Mercedes-Benz Vans: product highlights Presentation of the Vision URBANETIC mobility concept Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 25
Slide 26: Daimler Buses: product highlights
Daimler Buses: product highlights The new Mercedes-Benz Tourismo won the IBC competition 2018 and the Mercedes Benz Citaro hybrid is “Bus of the Year 2019” Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 26
Slide 27: Daimler Buses: product highlights
Daimler Buses: product highlights World premiere of the all-electric Mercedes-Benz eCitaro Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 27
Slide 28: Daimler Financial Services: product highlights
Daimler Financial Services: product highlights car2go opened its tenth North American location in Chicago Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 28
Slide 29: Daimler Financial Services: highlights Mobility Services
Daimler Financial Services: highlights Mobility Services Ongoing business expansion Ride-Hailing Group Combined YTD 09/18 change* 18.4 20.4 87.9 +60% Interactions in millions 25 19** >110 +63% Cities 3.4 5.7 16.9 +64% Customers in millions * car2go, moovel and Ride-Hailing Group (incl. mytaxi, Beat
Slide 30: Contents
Contents Results for Q3 2018 Outlook for 2018 Development at the divisions Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 30
Slide 31: Mercedes-Benz Cars and Vans: continued product offensive
Mercedes-Benz Cars and Vans: continued product offensive 2018 2019 smart (upgraded) A-Class A-Class Sedan & B-Class CLA 4-door Coupe CLA Shooting Brake Sedan (long wheelbase) C-Class Sedan, Wagon, C-Class Sedan (long Coupe, Cabriolet (upgraded) wheelbase, upgraded) CLS S-Class Coupe & AMG 4-door Mer
Slide 32: 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 slight growth heavy-duty truck Japan* slight decrease markets Brazil significant growth from low level In
Slide 33: 2018 sales outlook
2018 sales outlook Slightly higher Unit sales unitthe around sales prior-year level Further growth Supported particularly by wide in China and innovative vehicles range of attractive Mercedes-Benz Cars Strong Furthermomentum from the wide range of attractive and innovative vehicles growth in China S
Slide 34: 2018 outlook for EBIT
2018 outlook for EBIT We expect Group EBIT for FY 2018 to be significantly below the prior- year level based on the following expectations for divisional EBIT: Significantly below the prior-year level Mercedes-Benz Cars Significantly above the prior-year level Daimler Trucks Significantly below the
Slide 35: Contents
Contents Results for Q3 2018 Outlook for 2018 Development at the divisions Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 35
Slide 36: Mercedes-Benz Cars
Mercedes-Benz Cars Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 597 23.4* 2,105* 560 21.7 1,372 -6% -7% -35% Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler AG
Slide 37: Mercedes-Benz Cars: EBIT
Mercedes-Benz Cars: EBIT - in millions of euros - - 733 Remeasurement of the investment in Aston Martin 9.0%** Expenses for a specific vehicle recall in Q3 2017 Expenses for voluntary service activities in connection with a 2,105* comprehensive plan for diesel engines in Q3 2017 Lower unit sales 6.3
Slide 38: Mercedes-Benz Cars: sales decrease due to delivery delays and model changes
Mercedes-Benz Cars: sales decrease due to delivery delays and model changes of A- and C-Class - in thousands of units - 597 30 560 6 31 smart 4 Sports Cars 211 195 SUVs 18 17 S-Class 99 99 E-Class 127 111 C-Class 105 102 A-/B-Class Q3 2017 Q3 2018 Daimler AG Q3 and January-September 2018 Results / O
Slide 39: Mercedes-Benz Cars: globally balanced sales structure
Mercedes-Benz Cars: globally balanced sales structure with strong development especially in China - in thousands of units - 597 560 109 91 Rest of world 170 151 Europe excl. Germany 83 72 Germany 82 76 United States 153 170 China Q3 2017 Q3 2018 Daimler AG Q3 and January-September 2018 Results / Oct
Slide 40: 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 619 516 488 196 400 146 171 293 150 239 147 423 123 371 317 250 146 116 2013 2014 2015 2016 2017 2018 YTD 09 Daimler AG Q3 and January-Septemb
Slide 41: Daimler Trucks
Daimler Trucks Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 136 10.0 850 127 9.2* 614* +8% +9% +38% Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler AG Q3 and Ja
Slide 42: Daimler Trucks: EBIT
Daimler Trucks: EBIT - in millions of euros - + 236 8.5%** Higher unit sales especially in the NAFTA region Efficiency enhancements 850 6.7%** Expenses for fixed cost optimization in Q3 2017 614* Higher expenses for raw material Higher costs, mainly related to supply chain constraints EBIT EBIT Q3 2
Slide 43: Daimler Trucks: sales increase by 8% mainly driven by NAFTA region
Daimler Trucks: sales increase by 8% mainly driven by NAFTA region - in thousands of units - 136 127 9 Rest of world 13 42 Asia 40 10 Latin America 8 45 53 NAFTA region 21 22 EU30* Q3 2017 Q3 2018 * European Union, Switzerland and Norway Daimler AG Q3 and January-September 2018 Results / October 25,
Slide 44: Daimler Trucks: significant increase in incoming orders
Daimler Trucks: significant increase in incoming orders mainly driven by NAFTA region - in thousands of units - 129 117 11 Rest of world 12 40 Asia 43 9 Latin America 8 51 NAFTA region 35 19 18 EU30* Q3 2017 Q3 2018 * European Union, Switzerland and Norway Daimler AG Q3 and January-September 2018 Re
Slide 45: Mercedes-Benz Vans
Mercedes-Benz Vans Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 93.1 91.4 3.1* 3.0 214* -2% -2% -93 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler AG Q3 and Ja
Slide 46: Mercedes-Benz Vans: EBIT
Mercedes-Benz Vans: EBIT - in millions of euros - - 307 Lower unit sales caused by delivery delays 6.9%** Governmental proceedings and measures relating 214* to diesel vehicles Higher expenses for new technologies and future products Impacts from the Sprinter model change -93 -3.1%** EBIT EBIT Q3 20
Slide 47: Mercedes-Benz Vans: sales decrease by 2%
Mercedes-Benz Vans: sales decrease by 2% mainly due to temporary delivery delays - in thousands of units - 93.1 91.4 46.2 49.3 Sprinter 26.0 20.7 Vito 14.6 13.3 V-Class 2.5 X-Class 6.2 5.7 Citan Q3 2017 Q3 2018 Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 47
Slide 48: Daimler Buses
Daimler Buses Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 7.7 1.0* 1.1 32* 7.2 30 +7% +3% -6% Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler AG Q3 and January
Slide 49: Daimler Buses: EBIT
Daimler Buses: EBIT - in millions of euros - -2 3.1%** 2.8%** 32* Efficiency enhancements 30 Product mix Inflation-related cost increases EBIT EBIT Q3 2017 Q3 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** Return on sales Daimler AG Q3 and January-September 2018
Slide 50: Daimler Buses: higher unit sales in Brazil and India
Daimler Buses: higher unit sales in Brazil and India - in thousands of units - 7.7 7.2 1.3 Rest of world 0.8 1.2 Latin America 1.6 (excl. Brazil and Mexico) 2.3 Brazil 2.1 0.8 0.9 Mexico 1.9 2.1 EU30* Q3 2017 Q3 2018 * European Union, Switzerland and Norway Daimler AG Q3 and January-September 2018 R
Slide 51: Daimler Financial Services
Daimler Financial Services New business Contract volume EBIT – in billions of euros – – in billions of euros – – in millions of euros – 17.4 16.6 148.8 508 139.9 392 -5% +6% -23% Q3 2017 Q3 2018 12/31/2017 9/30/2018 Q3 2017 Q3 2018 Daimler AG Q3 and January-September 2018 Results / October 25, 2018
Slide 52: Daimler Financial Services: EBIT
Daimler Financial Services: EBIT - in millions of euros - - 116 18.5%* 508 Higher contract volume 12.5%* Higher interest-rate level 392 Cost of risk situation in Turkey EBIT EBIT Q3 2017 Q3 2018 * Return on equity Daimler AG Q3 and January-September 2018 Results / October 25, 2018 / Page 52
Slide 53: Daimler Financial Services: further increase in contract volume
Daimler Financial Services: further increase in contract volume to 148.8 billion euros - in billions of euros - 148.8 139.9 32.4 Africa & Asia-Pacific 29.4 50.7 53.6 Americas 35.6 37.2 Europe (excl. Germany) 24.1 25.6 Germany 12/31/2017 9/30/2018 Daimler AG Q3 and January-September 2018 Results / Oc
Slide 54: 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% 0.20% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD * as a percentage of portfo
Slide 55: 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