Mercedes-benz Group Ag · XETR:MBG
Mercedes-benz — Daimler — Investor Presentation (February 2019)
145 slides from Mercedes-benz's investor presentation, February 2019
Slide 1: FY 2018 Corporate Presentation
FY 2018 Corporate Presentation
Slide 2: Contents
Contents Group Financials Divisional Information Outlook Daimler Group Strategy Funding Appendix Daimler AG Daimler Corporate Presentation / FY 2018 / Page 2
Slide 3: Key figures
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 figures have
Slide 4: 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 +5.7 -2.8 +0.0 -3.9 16.6 +0.7 16.3 Net industrial Earnings and Working capital M&A effects Dividend payment Other Net industrial liquidity other cash flow impact Daimler AG (mai
Slide 5: 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) Daimler AG Daimler Corporate Presentation / FY 2018 / Page 5
Slide 6: Contents
Contents Group Financials Divisional Information Outlook Daimler Group Strategy Funding Appendix Daimler AG Daimler Corporate Presentation / FY 2018 / Page 6
Slide 7: Mercedes-Benz Cars: new sales record in a challenging environment
Mercedes-Benz Cars: new sales record in a challenging environment Unit sales Revenue EBIT in thousand units in billion euros in million euros 2,374 2,383 94.4* 93.1 8,843* 7,216 +0% -1% -18% 2017 2018 2017 2018 2017 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Da
Slide 8: Mercedes-Benz Cars
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 9: Mercedes-Benz Cars: EBIT
Mercedes-Benz Cars: EBIT in million euros - 1,627 Remeasurement of the investment in Aston Martin Expenses for voluntary service activities and expenses for a specific 9.4%** vehicle recall in 2017 8,843* 7.8%** Weaker net pricing Foreign exchange rates 7,216 Expenditure for new technologies and fut
Slide 10: Mercedes-Benz Vans: continued growth of business volume
Mercedes-Benz Vans: continued growth of business volume Unit sales Revenue EBIT in thousand units in billion euros in million euros 421 13.6 401 13.2* 1,147* +5% +4% -73% 312 2017 2018 2017 2018 2017 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler AG Daimler
Slide 11: Mercedes-Benz Vans
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 Daimler AG Daimler Corporate Presentation / FY 2018 / Page 11
Slide 12: Mercedes-Benz Vans: EBIT
Mercedes-Benz Vans: EBIT in million euros - 835 8.7%** Higher unit sales 1,147* Higher expenses for new technologies and future products Impacts from Sprinter model change Governmental proceedings and measures related to diesel vehicles and delivery delays 2.3%** Remeasurement of assets in connectio
Slide 13: Daimler Trucks: strong business development
Daimler Trucks: strong business development based on attractive products and rising demand in core markets Unit sales Revenue EBIT in thousand units in billion euros in million euros 517 38.3 471 35.8* 2,753 2,383* +10% +7% +16% 2017 2018 2017 2018 2017 2018 * adjusted based on new IFRS 15 standards
Slide 14: Daimler Trucks
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 Daimler AG Daimler Corporate Presentation / FY 2018 / Page 14
Slide 15: Daimler Trucks
Daimler Trucks Incoming orders increase primarily driven by NAFTA region in thousand units 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 Daimler AG Daimler Corporate Presentation / FY 2018 / Page 15
Slide 16: Daimler Trucks: EBIT
Daimler Trucks: EBIT in million euros + 370 Higher unit sales especially in the NAFTA region 7.2%** 6.7%** Efficiency enhancements 2,753 Expenses for fixed cost optimization in 2017 2,383* Higher costs, mainly related to supply chain constraints and raw material Foreign exchange rates Sale of real e
Slide 17: Daimler Buses: very heterogeneous business development
Daimler Buses: very heterogeneous business development in our core regions Unit sales Revenue EBIT in thousand units in billion euros in million euros 30.9 4.5* 4.5 281* 28.7 265 +8% +0% -6% 2017 2018 2017 2018 2017 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Da
Slide 18: Daimler Buses
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 Daimler AG Daimler Corporate Presentation / FY 2018 / Page 18
Slide 19: Daimler Buses: EBIT
Daimler Buses: EBIT in million euros - 16 6.2%** 5.9%** 281* Higher unit sales 265 Product mix Inflation-related cost increases EBIT EBIT 2017 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** Return on sales Daimler AG Daimler Corporate Presentation / FY 2018 / Pa
Slide 20: Daimler Financial Services: further business growth
Daimler Financial Services: further business growth; EBIT impacted by settlement of Toll Collect arbitration proceedings New business Contract volume EBIT in billion euros in billion euros in million euros 70.7 71.9 154.1 139.9 1,970 1,384 +2% +10% -30% 2017 2018 12/31/2017 12/31/2018 2017 2018 Daim
Slide 21: Daimler Financial Services
Daimler Financial Services Further increase in contract volume to 154.1 billion euros (+10%) in billion euros 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 Daimler AG Daimler Corporate Presentation / FY 2018 /
Slide 22: Daimler Financial Services: EBIT
Daimler Financial Services: EBIT in million euros - 586 17.7%* Higher contract volume 1,970 11.1%* Settlement of the Toll Collect arbitration proceedings Higher interest-rate level 1,384 Cost of risk in some markets EBIT EBIT 2017 2018 * Return on equity Daimler AG Daimler Corporate Presentation / F
Slide 23: Contents
Contents Group Financials Divisional Information Outlook Daimler Group Strategy Funding Appendix Daimler AG Daimler Corporate Presentation / FY 2018 / Page 23
Slide 24: 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 25: 2019 sales outlook
2019 sales outlook Slightly higher unit sales Further growth particularly Strong momentum in China from a dozen new and upgraded vehicles Mercedes-Benz Cars Significantly Slightly higher higher unit sales unit sales Significant growth Slight growth in NAFTA in NAFTA region,region, and EU30 Brazil,si
Slide 26: 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 slightly above the prior-year level Return on sales in the range of 6 to 8% Mercedes-Benz Cars Return on sales in the range of 7 to 9% Daimler Trucks Return on sales in the range of 5 to 7% Mercedes-Benz Vans R
Slide 27: 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 28: Contents
Contents Group Financials Divisional Information Outlook Daimler Group Strategy Funding Appendix Daimler AG Daimler Corporate Presentation / FY 2018 / Page 28
Slide 29: Daimler has set the course for a successful future
Daimler has set the course for a successful future Profitable CORE business Strategic CASE business CUSTOMER COMPANY structure CULTURE change Daimler AG Daimler Corporate Presentation / FY 2018 / Page 29
Slide 30: 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 7.5 7.3 property, plant 6.7 and equipment 10.5 Research and 8.7 9.1 9.2 development expenditure Actual Actual Actual Actual Actual Plan 201
Slide 31: Mercedes-Benz Cars & Vans
Mercedes-Benz Cars & Vans Daimler AG Daimler Corporate Presentation / FY 2018 / Page 31
Slide 32: Exciting and promising future ahead of us
Exciting and promising future ahead of us CORE Electric Connected Autonomous Daimler AG Daimler Corporate Presentation / FY 2018 / Page 32
Slide 33: 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 Daimler AG Annual Press Conference / February 6, 2019 / Draft 24.01.2019 14:00 Page 33
Slide 34: Mercedes-Benz Cars in China: strong sales growth
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 Daimler AG Daimler Corporate Presentation / FY 2018 /
Slide 35: Mercedes-Benz Network Development in China
Mercedes-Benz Network Development in China Number of Outlets Outlets by regions 2018 +30 Region Dealer# +119 596 +281 566 North 181 447 South 138 166 East 174 West 103 2010 2014 2017 2018 Daimler AG Daimler Corporate Presentation / FY 2018 / Page 35
Slide 36: Made in China for China
Made in China for China: we are producing five car models and four engine models at BBAC + M270 E-Class (V 213) Rear wheel drive GLC (V253) M264 As announced in July 2017, a localized BEV model under EQ C-Class (V/W 205) brand will be produced in BBAC M274 … GLA (X156) A-Class L Sedan M276 (Z177) Da
Slide 37: Vehicle architecture and modular strategy
With vehicle architecture and modular strategy, we aim at being more cost efficient, faster and more flexible Powertrain E/E Chassis Exterior Interior Daimler AG Daimler Corporate Presentation / FY 2018 / Page 37
Slide 38: High degree of modularity of the entire drive train
High degree of modularity of the entire drive train Daimler AG Daimler Corporate Presentation / FY 2018 / Page 38
Slide 39: Development of CO2 emissions
Development of CO2 emissions Average CO2-emissions in g/km Mercedes-Benz Cars fleet in Europe 230 CO2-emissions in (g/km) 173 160 158 150 140 134 132 129 125 123 123 EU Legislation* 95 1995 … 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2020 * Target value for average weight of European fl
Slide 40: Degree of electrification
Overview CO2 reduction measures CO2 measures in and on the vehicle CO2 measures ICE powertrain Electrification of powertrain 0% Aerodynamics Energy recovery 48V-starting system (e.g. ISG) Efficient high-tech diesel and gasoline engines Degree of electrification Rolling resistance Eco-Mode, Intellige
Slide 41: 48 Volt electrification advantages
48 Volt electrification: several advantages regarding CO2 and comfort Integrated starter-generator Combined performance with NVH C02-reduced hybrid functions Calm starting of automatic start-stop function Comfort CO2 48 Volt Agility Turbocharger Air conditioning Innovative boost concept with AC work
Slide 42: Hybrid offensive to reach CO2 targets
Hybrid offensive as further step to reach CO2 targets Example S 560 e Plug-in-Hybrid Combined fuel consumption: 2.6-2.5 l/100 km, combined CO2 emissions: 59-57 g/km*, combined electrical consumption: 20.2-20.0 kWh/100 km 1 The stated figures were determined in accordance with the prescribed measurin
Slide 43: 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 44: Mercedes-Benz Cars' target: remain No.1 premium car brand
Mercedes-Benz Cars’ target: remain No.1 premium car brand Sales target Strategic target In thousand units Return on Sales in % 2,374 2,383 8-10% 2017 2018 2020 Daimler AG Daimler Corporate Presentation / FY 2018 / Page 44
Slide 45: New Sprinter plant in North Charleston
New Sprinter plant in North Charleston - Amazon becomes the world’s largest Sprinter customer Daimler AG Daimler Corporate Presentation / FY 2018 / Page 45
Slide 46: Mercedes-Benz Vans' target
Mercedes-Benz Vans’ target: No. 1 provider of holistic transport and mobility solutions Sales target Strategic target In thousand units Return on Sales in % 401 421 9% over the cycle 2017 2018 2020 Daimler AG Daimler Corporate Presentation / FY 2018 / Page 46
Slide 47: CASE trends leading to fundamental changes
CASE trends leading to fundamental changes in the automotive industry Daimler AG Daimler Corporate Presentation / FY 2018 / Page 47
Slide 48: Successful launch of MBUX in Compact Cars
Successful launch of MBUX in Compact Cars Touch Controls Touchscreen Hey Mercedes Speech Control Take Rate Take Rate Take Rate On-Board- High End Entry Navigation Daimler AG Daimler Corporate Presentation / FY 2018 / Page 48
Slide 49: Connect - Anytime. Anywhere.
Connect - Anytime. Anywhere. >27 . million connected vehicles Daimler AG Daimler Corporate Presentation / FY 2018 / Page 49
Slide 50: Development steps towards fully automated driving
Development steps towards fully automated driving - Currently offered by MB Level 5 & legally permissible - Level 4 Level 3 Full Level 2 High Automation Level 1 Conditional Automation Partial Automation Driver Automation Assistance Vehicle can perform all Vehicle can perform all dynamic driving task
Slide 51: Sensors for Driver Assistance Package
Sensors for Driver Assistance Package Daimler AG Daimler Corporate Presentation / FY 2018 / Page 51
Slide 52: HD MAP for highly automated driving and HERE cooperation
HD MAP for highly automated driving and HERE cooperation • The HD Live Map is a mandatory part for the HAD* system for planning and positioning • The HD Map is the only sensor that delivers context information and a long road horizon • Close strategic cooperation with HERE for: - map content, format
Slide 53: Driver controlled and system controlled
In the future - driver controlled and system controlled Driver controlled System controlled Safety technologies and automated systems, Automated systems, which drive the vehicle from which are situational activated by the driver the starting point to the destination Daimler AG Daimler Corporate Pres
Slide 54: San José first pilot testing city for automated driving
San José will become first pilot testing city for automated MOBILITY SERVICES driving in 2019 Starting in H2 of 2019 Automated MB S-Class vehicles SAE level 4/5 Joint pilot of Daimler & Bosch Daimler AG Daimler Corporate Presentation / FY 2018 / Page 54
Slide 55: Vision URBANETIC
Vision URBANETIC - Mobility concept for needs-based, efficient and sustainable mobility Daimler AG Daimler Corporate Presentation / FY 2018 / Page 55
Slide 56: EQ - intelligent electromobility
EQ - intelligent electromobility. The new product and technology brand represents “emotion and intelligence”. Daimler AG Daimler Corporate Presentation / FY 2018 / Page 56
Slide 57: On our way to emission-free mobility
We are on our way to emission-free mobility High-tech Plug-in hybrids Performance hybrids Electric vehicles with battery or combustion engines fuel cell Daimler AG Daimler Corporate Presentation / FY 2018 / Page 57
Slide 58: Pushing ahead with our electric vehicle offensive
Pushing ahead with our electric vehicle offensive New brand EQ for electric mobility €20 billion invest into battery cells €10 billion invest into e-mobility fleet > €1 billion invest in a global battery production network Above 130 electrified alternatives by 2022: In each series of Merce
Slide 59: World premiere of the new fully-electric EQC
World premiere of the new fully-electric EQC* Power consumption (NEDC) 22.2* kWh/100 km Range (NEDC) more than 450* km Output 300 kW (408 hp) Peak torque 765 Nm Top speed 180 km/h (governed) Acceleration 0-100 km/h 5.1 s Battery Lithium-ion Battery energy content (NEDC) 80 kWh Battery weight 650 kg
Slide 60: smart fully electric in Europe & US by 2020
smart fully electric in Europe & US by 2020 smart EQ fortwo: power consumption combined: 13,0-12,9 kWh/100km; CO2-emission combined: 0 g/km smart EQ forfour: power consumption combined: 13,2-13,1 kWh/100km; CO2-emission combined: 0 g/km Daimler AG Daimler Corporate Presentation / FY 2018 / Page 60
Slide 61: eVito: electrically powered mid-sized van
eVito: electrically powered, mid-sized van has been available to order since the end of 2017 • Ecosystem to electrify commercial fleets • Range of up to 150 km • Designed for inner- city delivery, commercial and passenger transport Daimler AG Daimler Corporate Presentation / FY 2018 / Page 61
Slide 62: Ambitious definition of our EV market targets
Ambitious definition of our EV market targets 50% Greater China 25% NAFTA WEU 0% 100% 2 1 3 EV share Mercedes-Benz Cars sales 2025 Highest potential EV share Mercedes-Benz Cars 2025 Daimler AG Daimler Corporate Presentation / FY 2018 / Page 62
Slide 63: Highly flexible production for electric vehicles and batteries
Highly flexible production for electric vehicles and batteries Europe Germany Poland USA France America China Asia Thailand Location vehicle production Location battery production Daimler AG Daimler Corporate Presentation / FY 2018 / Page 63
Slide 64: Flexible architecture for all electrified powertrains
Flexible architecture to integrate all types of electrified powertrains On-board-charger Combustion engine On-board-charger Electric drive module HV-battery Charging inlet Transmission and integrated E-motor Electric drive module Inverter and DCDC HV-battery Illustration Daimler AG Daimler Corporate
Slide 65: Charging network together with partners
Charging network together with partners improve customer experience Home Work Public Mercedes-Benz GLC F-CELL: Combined hydrogen consumption: 0.34 kg/100 km, combined CO2 emissions: 0 g/km, combined electrical consumption: 13.7 kWh/100 km; Figures for fuel consumption, electrical consumption and CO2
Slide 66: Daimler Trucks & Buses
Daimler Trucks & Buses Daimler AG Daimler Corporate Presentation / FY 2018 / Page 66
Slide 67: Our answers to master future challenges
Our answers to master future challenges CORE Electric Connected Automated Daimler AG Daimler Corporate Presentation / FY 2018 / Page 67
Slide 68: Daimler Trucks: our strategy
Daimler Trucks: our strategy Customer Global Market Presence Focus Innovation Global Leadership Platforms Daimler AG Daimler Corporate Presentation / FY 2018 / Page 68
Slide 69: Strong brands and strong market positions around the world
Strong brands and strong market positions around the world #1 NAFTA #1 EU 30 Russia #3 Japan China #1 Brazil #4 India Daimler AG Daimler Corporate Presentation / FY 2018 / Page 69
Slide 70: China: well prepared to tap into the biggest market
China: we are well prepared to tap into the biggest market Biggest market Strengthen our market of commercial position by further vehicles. enhancing our product portfolio. Strong, committed partnership with Foton Market shifting Our Joint venture towards premium BFDA delivers strong segment and sal
Slide 71: Our Mission: make our customers more successful
Our Mission: make our customers more successful Best-in-class products Customer experience Services beyond in all regions as differentiator the hardware Service and Extended Warranty Parts Network & Service Products Continuous Process Connectivity & Improvement Uptime Customer-focused End—to-End Sup
Slide 72: Efficiency: improving our customers' bottom line
Efficiency: improving our customers’ bottom line Europe: Mercedes-Benz Actros NAFTA: Freightliner New Cascadia Japan: FUSO Super Great Fuel reduction up to -3%*on Fuel reduction up to -8%* Fuel reduction up to -15%* motor-ways and up to -5%* Next efficiency step by 2019 Complete efficiency makeover
Slide 73: Leading safety assistance systems
We already offer leading safety assistance systems in all of our core markets. Active Brake Assist 5 Brakes to full stop for pedestrians. soon Active Brake Assist 4 Detects moving pedestrians. Sideguard Assist Detects pedestrians and cyclists. Daimler AG Daimler Corporate Presentation / FY 2018 / Pa
Slide 74: Global Platforms: leveraging global scale
Global Platforms: leveraging our global scale in technology & cost EU LA China Heavy-duty engines Medium-duty engines Transmissions Chassis Electric/ ECU1 ECU2 Electronic ECU3 Cab architecture Daimler AG Daimler Corporate Presentation / FY 2018 / Page 74
Slide 75: Global platforms are a great competitive advantage
Global platforms are a great competitive advantage – they achieve several goals at the same time: Speed of Innovation Economies of Scale R&D Efficiency Sideguard HDEP FE1 Assist ABA4 MDEG Pedestrian NAFTA & Jp Global platforms enable Global platforms can secure pass-car- Common base development in a
Slide 76: Daimler Trucks >1,400 mn € improvement fully effective in 2019
Daimler Trucks is setting the stage for a total of >1,400 mn € improvement fully effective in 2019 EBIT Impact 1 Growth & Customer focus 2 Global optimized network Net improvements >1,400 mn € 3 Cost reduction initiative Net improvements Fully effective in 2019 2017 2018 2019 4 Stream Daimler AG Dai
Slide 77: Daimler Trucks target: leader in the truck industry
Daimler Trucks - sticking to our target: leader in the truck industry Sales target Strategic target In thousand units Return on Sales in % 471 517 8% over the cycle 2017 2018 2020 Daimler AG Daimler Corporate Presentation / FY 2018 / Page 77
Slide 78: Leading in the bus industry
Leading in the bus industry Daimler AG Daimler Corporate Presentation / FY 2018 / Page 78
Slide 79: Daimler Bus's target: No. 1 in the global bus business
Daimler Bus's target: No. 1 in the global bus business Sales target Strategic target In thousand units Return on Sales in % 28.7 30.9 6% over the cycle 2017 2018 2020 Daimler AG Daimler Corporate Presentation / FY 2018 / Page 79
Slide 80: Our invest in future technologies in 2018 and 2019
Our invest in future technologies in 2018 and 2019 @ DT Total R&D investment Investment in Connectivity, Automated, Electric (2018 – 2019) (2018-2019) > 2.5 bn € ~ 500 mn € Daimler AG Daimler Corporate Presentation / FY 2018 / Page 80
Slide 81: Progress in future technologies
We make a lot of progress in future technologies Connected Electric Automated Gain Headline Gain Knowledge MB Uptime Gain Business Active Safety Daimler AG Daimler Corporate Presentation / FY 2018 / Page 81
Slide 82: Connectivity: trucks online in every region
Connectivity: today our trucks are online in every region with real benefits for our customers and ourselves internally One common global backbone Real customer benefit optimizing Uptime Big Data Analytics as basis to further optimize our products Mercedes-Benz Uptime Daimler AG Daimler Corporate Pr
Slide 83: Connected: Detroit Connect boosts logistics performance
Connected: Detroit Connect boosts logistics performance Analytics Virtual Technician Remote Updates Improves fuel Helps to reduce service- Updates firmware consumption and safety related downtime „over-the-air“ • Detects changes in fuel • Alerts customers to • Installs firmware consumption and offer
Slide 84: Pioneering automated trucking for many years
We are pioneering automated trucking for many years Mercedes-Benz Freightliner Test license for Automated Platooning trials Future Truck 2025 Inspiration Truck German autobahn snow clearance in entire triad 2014 2015 2016 – 2018 Daimler AG Daimler Corporate Presentation / FY 2018 / Page 84
Slide 85: Level 2 series trucks launch in the US
After introducing the New Actros in Europe, we are ready to launch Level 2 series trucks in the US. New Cascadia: • Active Brake Assist 5.0: Full Emergency Braking on stationary objects incl. Pedestrians. • Lane Keep Assist: Lateral control at all vehicle speeds. • Lane Departure Protection: Active
Slide 86: All aspects of autonomous trucking
We are working on all aspects of autonomous trucking Driving Dynamic Modelling HD Localization / Interactive Connected Maps Deep Learning/ Truck Artificial Intelligence (online) Learning from examples Environment Perception Sensor Fusion Software In-vehicle computing power Connectivity & IT Backend
Slide 87: The road map towards the fully automated truck
The Theroad truck roadmap maptowards towardsthe thefully fullyautomated automated truck LEVEL 5 Full automation 4 High LEVEL automation 3 Conditional LEVEL automation 2 LEVEL Partial automation 1 Function-specific LEVEL automation 0 Driver LEVEL Daimler AG Daimler Corporate Presentation / FY 2018 /
Slide 88: Electric: pioneers for many years
Electric: we have been the pioneers for many years 2014-2017: 09/2016: 09/2017: 11/2017: 06/2018: FUSO eCanter Mercedes-Benz eActros prototype, FUSO eCanter World premiere of Thomas Presentation of Freightliner fleet tests in Europe FUSO eCanter in new design market launch Built Buses Saf-T-Liner® e
Slide 89: Battery-powered commercial vehicles for urban areas
Locally emission-free and quiet: our battery-powered commercial vehicles for urban areas. 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 premiere 2018: Market introdu
Slide 90: Freightliner eCascadia and eM2: leading the charge
Freightliner eCascadia and eM2: leading the charge Daimler AG Daimler Corporate Presentation / FY 2018 / Page 90
Slide 91: The all-electric Citaro
The all-electric Citaro: emission-free through the city Daimler AG Daimler Corporate Presentation / FY 2018 / Page 91
Slide 92: Daimler Financial Services
Daimler Financial Services Daimler AG Daimler Corporate Presentation / FY 2018 / Page 92
Slide 93: Daimler Mobility – We move you
Daimler Mobility – We move you Daimler Mobility Daimler AG Daimler Corporate Presentation / FY 2018 / Page 93
Slide 94: Broad variety of financial and mobility services
We offer a broad variety of financial and mobility services vehicles in fleet management banking customers car2go customers insurance policies Ride-Hailing Group customers financed or leased vehicles moovel customers Daimler AG Daimler Corporate Presentation / FY 2018 / Page 94
Slide 95: We finance nearly every second vehicle sold by Daimler
We finance nearly every second vehicle sold by Daimler Penetration rates per vehicle segment Global penetration rate DFS in 2018 57% ~50% 38% 30% 27% Daimler AG Daimler Corporate Presentation / FY 2018 / Page 95
Slide 96: We operate in over 40 countries and have grown our portfolio
We operate in over 40 countries and we have successfully grown our portfolio in over the years 11.7 % CAGR Wholesale 154 140 133 Loan 117 AAP Lease 99 AMERICAS 84 80 Others 72 71 72* 64 62 Trucks 58 62 71 72 Portfolio 58 (in bn €) 48 58 Buses 38 41 48 38 41 Vans 34 Acquisitions 25 29 34 29 EUROPE (i
Slide 97: Net credit losses at low level
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 Daimler AG Daimler Corporate Presenta
Slide 98: Daimler Financial Services' target
Daimler Financial Services’ target: best financial and mobility services provider Portfolio target Strategic target in billions of EUR Return on Equity in % 139.9 154.1 17% 2017 2018 2020 Daimler AG Daimler Corporate Presentation / FY 2018 / Page 98
Slide 99: Customers prefer to consume mobility as a service
Increasingly more urban customers prefer to consume mobility as a service TODAY TOMORROW BUYING CONSUMING mobility as a product mobility as a service Enabler: Finance & Lease Enabler: Finance & Lease Daimler AG Daimler Corporate Presentation / FY 2018 / Page 99
Slide 100: Daimler Financial Services represents the S in CASE
Daimler Financial Services represents the S in CASE SERVICES SHARED Daimler AG Daimler Corporate Presentation / FY 2018 / Page 100
Slide 101: Building a holistic mobility ecosystem
We aim to build a holistic mobility ecosystem 1. Offer broad 2. Create frequent variety of mobility customer solutions interaction OUR AMBITION VEHICLE VEHICLE FINANCING LEASING “DFS’ ambition is to become an 7. Create lock-in MOBILITY 3. Gain large- entirely customer-centric, fully digitized, effec
Slide 102: AutoGravity: showcase example for digital financing
is a showcase example for digital financing Daimler investment rationale behind AutoGravity engagement Lead the digitization of the industry by launching disruptive approach towards automotive financing Provide outstanding customer experiences by offering first-of-its-kind comparison app for vehicle
Slide 103: Daimler Mobility Services
Daimler Mobility Services Total customers in mn 2018 31.0 2017 17.7 2016 8.5 2015 4.2 2014 2.0 2013 1.1 Daimler AG Daimler Corporate Presentation / FY 2018 / Page 103
Slide 104: Expansion of our footprint
The expansion of our footprint is a result of our comprehensive mobility strategy 2008 2012 2013 2014 2015 2016 2017 2018 Investment Acquisition Merger Daimler AG Daimler Corporate Presentation / FY 2018 / Page 104
Slide 105: Three strategic focus areas of on-demand mobility services
Three strategic focus areas of our on-demand mobility services CAR SHARING RIDE-HAILING Manage IoT fleets & strengthen MB brand Scale customer base & geographic footprint MULTI-MODAL Build mobility marketplace & city relationships The Ride-Hailing Group contains the brands The worldwide leading free
Slide 106: Intelligent apps cover different market segments
Intelligent apps covers different market segments Licensed Taxi in Europe Private Hire Vehicles in Europe Private Hire Vehicles in Latin America Daimler AG Daimler Corporate Presentation / FY 2018 / Page 106
Slide 107: Daimler Mobility Services: current portfolio
Daimler Mobility Services: our current portfolio is a strong starting point to conquer the customer interface Daimler Mobility Services Strategic Business Portfolio* Targets CAR SHARING RIDE-HAILING MULTI-MODAL car2go mytaxi CleverTaxi moovel Turo Beat Chauffeur shareholding Privé Generate New Reven
Slide 108: BMW and Daimler join forces on mobility services
BMW and Daimler will join forces when it comes to mobility services CAR SHARING RIDE-HAILING MULTI-MODAL CHARGING PARKING Daimler and BMW each hold a 50% stake in each of the verticals Daimler AG Daimler Corporate Presentation / FY 2018 / Page 108
Slide 109: Our business is strongly future oriented
Our business is strongly future oriented Vehicle ASSET FLEET SERVICE Future Manufacturer PROVIDER OPERATOR PLATFORM Mobility Customer “Somebody “Somebody needs “Somebody needs “Somebody needs to Consuming needs to to pay for and to take care of offer the individual „mobility- develop, own the vehicl
Slide 110: Current mobility services as entry point for self-driving services
Our current mobility services will be the entry point for tomorrow’s self-driving car services X% Self-driving Car Services Share Daimler Mobility Services builds key capabilities for self-driving car services Daimler Mobility Services Future Daimler Mobility Business Volume Today Services Business
Slide 111: Self-driving technology will increase demand for shared mobility
Self-driving technology will likely increase the demand for shared mobility services Self-driving car services will ... Leading to a reinforcing cycle of mobility services …Deliver a unique customer experience Prices will Customer demand decrease due to will increase due to …Enhance traffic safety h
Slide 112: On-demand shuttle services
is providing on-demand shuttle services • Launched by SSB in 06/2018 (successful moovel pilot from 12/2017-05/2018) • Fleet & staff provided by SSB, technology provided by moovel • Deep integration into public transport system (tariff, brand, intermodality) • First service of its kind in Germany wit
Slide 113: Daimler Group Strategy: Culture
Daimler Group Strategy Culture Daimler AG Daimler Corporate Presentation / FY 2018 / Page 113
Slide 114: Transforming the Mindset
Transforming the Mindset Daimler AG Daimler Corporate Presentation / FY 2018 / Page 114
Slide 115: We are investing in the future
we are investing in the future* C A S E ** ** * Not all investments have been disclosed. ** Subject to approval by authorities. Daimler AG Daimler Corporate Presentation / FY 2018 / Page 115
Slide 116: Daimler Group Strategy: Company
Daimler Group Strategy Company Daimler AG Daimler Corporate Presentation / FY 2018 / Page 116
Slide 117: Daimler's way forward will lead to more flexibility
Daimlers way forward will lead to more flexibility... ...to exploit new growth ...to give Daimler's ...to be a strong ...to secure the long- ...to provide promising opportunities divisions more freedom to partner for new term commitment of future perspectives in order to be even more make decisions
Slide 118: PROJECT FUTURE: three legally independent divisions
PROJECT FUTURE will create a strong family of companies with three legally independent divisions1 In the future, the Daimler Group will consist of three legally independent entities DAIMLER AG and Daimler AG as the parent Strategy, guidance and services company. ~2,000 employees in governance functi
Slide 119: PROJECT FUTURE: more customer-oriented company structure
PROJECT FUTURE is a consecutive building block of an even more customer-oriented company structure Customers Markets Organization Customer Dedication Legal Entity Dedication PROJECT FUTURE New organizational structure to Organizational realignment Legal separation increase customer proximity through
Slide 120: Major milestones of PROJECT FUTURE
Major milestones of PROJECT FUTURE 16.10.2017 26.07.2018 22.05.2019 (AGM) November 2019 Start Company decision Decision of Go-live Board of Approval of shareholders Following share- Management and implementation by Final approval holder approval, Supervisory Board Board of would have to be w
Slide 121: Contents
Contents Group Financials Divisional Information Outlook Daimler Group Strategy Funding Appendix Daimler AG Daimler Corporate Presentation / FY 2018 / Page 121
Slide 122: Daimler follows a prudent Financial Policy
Daimler follows a prudent Financial Policy Clear commitment to a single A rating Balanced approach between shareholder interest and credit providers Dividend policy of 40% target pay-out ratio* No share buybacks planned Pensions: current funded ratio at 80% *Based on net profit attributable to share
Slide 123: Our funding strategy is built on prudent principles
Our funding strategy is built on prudent principles No dependence from single markets, instruments, banks or investors Targeting Diversification of funding sources and instruments: Financial Bank Loans, Bonds, ABS, CP, Deposits Independence No Covenants, no MAC, no asset pledges, no CSAs Keeping pru
Slide 124: Project Future – Financial Principles for One Credit
Project Future – Financial Principles for “One Credit” Liquidity Centralized steering of Group liquidity Management Centralized steering of group funding supported by written guarantees Rating Group Funding Centralized management of the impact of market fluctuations (FX, Interest, Commodities,
Slide 125: Daimler pension funded ratio increased to 80% since 2010
Daimler pension funded ratio increased to 80% since 2010 14 11.5 12 9.8 10 8.6 7.8 in EUR bn 8 7.4 6.2 6 4.5 4 3.4 2.2 3.1 2.4 3.7 Significant contributions of EUR 2.0 1.9 2 0.3 1.1 0.5 0.7 15.8bn since 2010 support the solid 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 capital structure Pension
Slide 126: Prudent financial management strengthened the balance sheet
Daimler follows a prudent financial management approach and further strengthened the balance sheet… Gross Group Liquidity (in bn EUR) Net Industrial Liquidity (in bn EUR) Financial Services Industrial Business 25.4 21.7 22.1 4.3 19.7 18.6 3.5 3.7 17.0 16.6 16.3 18.2 16.3 2.8 2.8 21.2 18.2 18.4 15.4
Slide 127: Financing Liabilities with a balanced mix
Financing Liabilities with a balanced mix in billions of EUR Other Acc. Deposits Com. Paper Bank Loans ABS Bonds 145.0 2.0 127.4 2.0 12.5 2.8 117.6 1.0 1.0 11.8 11.0 10.6 1.7 100.6 11.5 1.5 11.6 39.4 86.4 7.4 3.0 1.5 10.5 34.6 6.0 2.3 29.7 10.9 27.3 22.9 76.6 63.0 67.3 50.8 42.9 2014 2015 2016 2017
Slide 128: Global Capital Market Funding Diversification will continue
Consequent Development to Global Capital Market Funding Diversification will continue Canada EMTN Domestic Bonds Euro Market ABS Korea CP EMTN Program Italian domestic Domestic Bond Prog. EUR CP Program ABS China USA Japan Turkey Domestic Bonds 144a / RegS PP Domestic Bonds ABS CP Domestic Bonds EMT
Slide 129: Funding base further diversified to a global set-up
Funding base further diversified to a true global set-up in billions of EUR 145,0 1% 9% 2% 8% 27% Currency Volume % EUR 34,4 45% USD 26,6 35% CNY 3,7 5% Other GBP 3,7 5% 57,3 2% CAD 2,8 4% Com. Paper 0% Currency Volume % 2% EUR 19,5 66% ZAR 1,7 2% ABS 22% Acc. Deposits USD 7,8 27% KRW 0,7 1% 23% ZAR
Slide 130: Maturity profile further lengthened
Maturity profile further lengthened in billions of EUR as of 31 December 2018 17,4 16.3 Issued in 2018 15.2 3.4 Maturities 1.7 8.6 13.5 14,0 6.2 1.9 4.2 4.2 3.7 7.7 1.0 1.4 2.2 2.0 3.0 1.5 4.3 1.0 0.5 1.3 1.3 3.2 0.7 1.2 2.3 1.7 1.3 0.2 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 203
Slide 131: 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 132: Solid rating supports Daimler's funding
Solid rating supports Daimler‘s funding Current ratings: S&P: A stable A-1 Moody’s: A2 stable P-1 Fitch: A- stable F2 DBRS: A stable R-1 (low) Scope: A stable S-1 Daimler target: Sustaining the A rating at all rating agencies Daimler AG Daimler Corporate Presentation / FY 2018 / Page 132
Slide 133: Contents
Contents Group Financials Divisional Information Outlook Daimler Group Strategy Funding Appendix Daimler AG Daimler Corporate Presentation / FY 2018 / Page 133
Slide 134: Financial and balance sheet figures support financial strength
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 135: Unit sales by division
Units sales by division 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 Daimler AG Daimler Corporate Presentation / FY 2018 / Page 135
Slide 136: 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 137: 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 138: EBIT by division
EBIT by division 2017* 2018 EBIT in million euros; RoS/RoE in % 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 139: EBIT in Q4 2018
EBIT in Q4 2018 Q4 2017* Q4 2018 EBIT in million euros; RoS/RoE in % 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 140: 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 • Buses -10 +33 -168 -132 -457 • Cars -1,176 -93 11,132 • Trucks -106 of which: of which: • Vans -882 • Cars: • Buses -72 • Cars: Remeasurement Voluntary ser
Slide 141: 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 142: 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 143: Daimler Investor Relations Events Q1-2019
Daimler Investor Relations Events Q1-2019 Feb 14 2019 CFO Roadshow London Feb 18 2019 CFO Roadshow Frankfurt Feb 19-21 2019 CFO Roadshow New York/Chicago/Los Angeles Feb 21 2019 IR Meetings Miami Feb 26-27 2019 CFO Roadshow Geneva/Zurich Feb 27 2019 CFO Roadshow Stockholm Mar 5-6 2019 IR Meetings Ge
Slide 144: Daimler Investor Relations Financial Calendar 2019
Daimler Investor Relations Financial Calendar 2019 Feb 06 2019 Annual Press Conference 2019 / Full Year Results 2018 Feb 07 2019 Investor and Analyst Conference Feb 15 2019 Annual Report 2018 online available Apr 26 2019 Interim Report 1st Quarter 2019 May 22 2019 Annual Meeting 2019 Jul 24 2019 Int
Slide 145: Disclaimer
Disclaimer The figures in this document are preliminary and have neither been approved yet by the Supervisory Board nor audited by the external auditor. This document contains forward-looking statements that reflect our current views about future events. The words “anticipate,” “assume,” “believe,”