Mercedes-benz Group Ag · XETR:MBG
Mercedes-benz — Daimler — Investor Presentation (February 2020)
63 slides from Mercedes-benz's investor presentation, February 2020
Slide 1: Daimler AG Corporate Presentation
DAIMLER AG CORPORATE PRESENTATION February 2020
Slide 2: Key Messages
OK DAIMLER AG KEY MESSAGES Mercedes-Benz safeguarded No.1 position in luxury segment, sales recovery in second half of year accomplished Underlying performance in line with 2019 Capital Market Day outlook; material adjustments booked Net Industrial Liquidity: target of >10 bn. euros achieved Strateg
Slide 3: Key Figures
DAIMLER AG KEY FIGURES 2019 172.7 SALES 2019 3.34 REVENUE in million units 2018 3.35 in billion euros 2018 167.4 2019 4.3 EBIT EBIT 2019 10.3 in billion euros 2018 11.1 adjusted in billion euros FREE FREE 1.4 2019 2019 CASH FLOW 2019 2.7 CASH FLOW 2018 2.9 2018 in billion euros adjusted in billion e
Slide 4: I. Review 2019
I. Review 2019 4
Slide 5: Mercedes-Benz Cars Highlights 2019
MERCEDES-BENZ CARS HIGHLIGHTS 2019 Mercedes-Benz leading luxury car brand; first time ever No.1 in premium segment in China Ramping-up supply of high-demand vehicles; significantly reduced inventories in Q4 Committed to carbon-neutral mobility: “Ambition 2039” defined, all-new EQC introduced to the
Slide 6: Mercedes-Benz Cars Financials
MERCEDES-BENZ CARS FINANCIALS SALES 2019 2.39 in million units 2018 2.38 REVENUE 2019 93.9 in billion euros 2018 93.1 EBIT 2019 3.4 in billion euros 2018 7.2 EBIT 2019 5.8 adjusted in billion euros 6
Slide 7: Mercedes-Benz Cars EBIT & RoS
MERCEDES-BENZ CARS Net pricing Foreign exchange rates EBIT & RoS Higher expenses for new technologies and product costs Valuation Aston Martin Governmental and legal proceedings and measures relating to diesel vehicles Expenses in connection with Takata airbags in million euros 7,216 +318 -667 -1,00
Slide 8: Mercedes-Benz Vans Highlights 2019
MERCEDES-BENZ VANS HIGHLIGHTS 2019 Continued sales growth to new record level New V-Class introduced and all-new EQV presented; series production of eSprinter started; development of new electric product in small-van segment Industrial situation stabilized Efficiency measures initiated Streamlining
Slide 9: Mercedes-Benz Vans Financials
MERCEDES-BENZ VANS FINANCIALS SALES 2019 438 in thousand units 2018 421 REVENUE 2019 14.8 in billion euros 2018 13.6 EBIT -3.1 2019 in billion euros 2018 0.3 EBIT 2019 0.3 adjusted in billion euros 9
Slide 10: Mercedes-Benz Vans EBIT & RoS
MERCEDES-BENZ VANS Higher unit sales Model mix EBIT & RoS Foreign exchange rates Higher expenses for new products and product-related cost Governmental and legal proceedings and measures relating to diesel vehicles Product portfolio review and prioritization in million euros Expenses in connection w
Slide 11: Daimler Trucks Highlights 2019
DAIMLER TRUCKS HIGHLIGHTS 2019 Daimler Trucks world’s leading truck manufacturer Strong performance in NAFTA despite softening market in Q4/2019 Launch of new Actros,“Truck of the year” EU market weakened faster than expected in Q4/2019; first effects from efficiency programs at MB Trucks EU Goal of
Slide 12: Daimler Trucks Financials
DAIMLER TRUCKS FINANCIALS SALES 2019 489 in thousand units 2018 517 2019 40.2 REVENUE in billion euros 2018 38.3 EBIT 2019 2.5 in billion euros 2018 2.8 12
Slide 13: Daimler Trucks EBIT & RoS
DAIMLER TRUCKS Higher unit sales in NAFTA region supported by positive foreign exchange rates Lower unit sales especially in the EU30 and Asia region EBIT & RoS Valuation adjustments for used trucks Higher expenses for new technologies and capacity adjustments in million euros +192 -434 2,753 -48 Ro
Slide 14: Daimler Buses Highlights 2019
DAIMLER BUSES HIGHLIGHTS 2019 Daimler Buses continues to be industry benchmark in profitability Maintained leading position in our core markets Serving high demand for our electric city bus eCitaro Delivered on target margin; continued efficiency effort 14
Slide 15: Daimler Buses Financials
DAIMLER BUSES FINANCIALS SALES 2019 33 in thousand units 2018 31 2019 4.7 REVENUE in billion euros 2018 4.5 EBIT 2019 283 in million euros 2018 265 15
Slide 16: Daimler Buses EBIT & RoS
DAIMLER BUSES EBIT & RoS Higher unit sales in million euros Foreign exchange rates Lower capitalization of development costs +41 -81 +58 283 265 RoS: RoS: 6.0% 5.9% EBIT 2018 Volume/ Foreign Other cost EBIT 2019 Structure/ exchange changes Net pricing rates 16
Slide 17: Daimler Mobility Highlights 2019
DAIMLER MOBILITY HIGHLIGHTS 2019 Continued strong support of industrial business: Financing about half of new vehicle sales Prudent risk management Maintained attractive returns despite higher equity demands due to regulatory requirements Start of YOUR NOW joint ventures and prioritization of mobili
Slide 18: Daimler Mobility Financials
DAIMLER MOBILITY FINANCIALS NEW 2019 74.4 BUSINESS 2018 71.9 in billion euros CONTRACT 2019 162.8 VOLUME 2018 154.1 in billion euros EBIT 2019 2.1 in billion euros 2018 1.4 EBIT 2019 1.8 adjusted in billion euros 18
Slide 19: Daimler Mobility EBIT & RoE
DAIMLER MOBILITY Higher contract volume Settlement of the Toll Collect arbitration proceedings in 2018 EBIT & RoE Normalization of cost of risk Merger of mobility services of Daimler and BMW Realignment of the YOUR NOW group in million euros +731 2,140 313 RoE: 1,827 +301 -150 15.3% +50 -176 RoE: 1,
Slide 20: ParentCo. Highlights & Actions 2019
DAIMLER ParentCo. HIGHLIGHTS & ACTIONS 2019 New group structure established Role of ParentCo. redefined: focus on governance, capital allocation & access to financial market Streamlining initiated, reduction of administrative cost and staff in 2019 vs. 2018 20
Slide 21: 2019 Group Financials
DAIMLER 2019 GROUP FINANCIALS 4.3 NET 2019 2.7 EBIT 2019 in billion euros 2018 11.1 PROFIT 2018 7.6 in billion euros NET FREE 2019 1.4 2019 11.0* INDUSTRIAL CASH FLOW 2018 2.9 2018 16.3 in billion euros LIQUIDITY in billion euros * -3.2 bn. € resulting from initial application of IFRS 16 21
Slide 22: 2019 Group EBIT
DAIMLER 2019 GROUP EBIT in million euros +410 -556 11,132 -1,550 • Cars +318 • Cars -667 5,963 10,292 • Vans +82 • Vans -122 +25 +130 -5,262 • Trucks -48 • Trucks +192 • Buses +58 • Buses +41 • Cars -1,002 • Vans -33 • Trucks -434 • Buses -81 4,329 EBIT 2018 Volume/ Foreign Other cost Daimler Reconc
Slide 23: 2019 Adjustments in Group EBIT
DAIMLER 2019 ADJUSTMENTS IN GROUP EBIT in million euros 23
Slide 24: 2019 Net Industrial Liquidity
DAIMLER 2019 NET INDUSTRIAL LIQUIDITY in billion euros Free Cash Flow industrial business FY 2019: €1.4 billion +7.6 -10.6 +7.1 -2.1 16.3 -3.2 -0.6 -3.5 13.1 11.0 Net industrial Effects from Net industrial Earnings and Working Depreciation and Additions to Investments in Dividend Net industrial liqu
Slide 25: 2019 Dividend
DAIMLER 2019 DIVIDEND NET PROFIT 2019 2.7 in billion euros 2018 7.6 EARNINGS 2019 2.22 PER SHARE 2018 6.78 in euros 2018 DIVIDEND 2019 0.90 proposed in euros 2018 3.25 25
Slide 26: II. Outlook 2020
OK II. Outlook 2020 26
Slide 27: 2020 Outlook Divisions
Key assumptions FX headwinds; no additional tariffs, no impact from Brexit; moderate GDP growth; no major political and economic crisis; 2020 OUTLOOK No major Corona virus impact, stable penetration rate, interest rate & regulatory environment; sales in line with luxury segment; significant truck ma
Slide 28: 2020 Outlook Group
2020 OUTLOOK GROUP Daimler Group EBIT Significant increase Free Cash Flow (industrial business) Significant increase* Investment in PP&E and R&D expenditure At prior-year level * excluding possible expenses relating to legal and governmental proceedings 28
Slide 29: III. 2020 Agenda
III. 2020 Agenda 1. Business performance 2. Electrification 3. Digitalization 4. Leadership 29
Slide 30: Business Performance: Cash & Cost Measures
1. BUSINESS PERFORMANCE CASH & COST MEASURES Total investment in 2020 capped at 2019 level Aggressive material cost savings targets, e.g. cumulative RoS effect of 3% at Cars by 2022; 2020 target on track Streamline product portfolio, e.g. end of production X-Class in May Variable cost reduction, e.g
Slide 31: Business Performance: Personnel Cost Reduction
1. BUSINESS PERFORMANCE PERSONNEL COST REDUCTION 1.4 billion euros savings by 2022; headcount targets have been defined in each division; management positions to be reduced by 10% Measures agreed upon with social partners: termination offers, early retirement offers, more appealing part-time, reduct
Slide 32: Electrification: Roadmap EU CO2 Compliance
2. ELECTRIFICATION ROADMAP EU CO2 COMPLIANCE CO2 g/km, M1 fleet (Cars & Vans), NEDC ~137 2019 xEV, 48V Technical Super Phase-In Outlook Target & prognosis Credits 2020 2020 portfolio 2020 Mercedes-Benz EQC 400 4MATIC: combined power consumption: 20.8 - 19.7 kWh/100 km; combined CO2 emissions: 0 g/km
Slide 33: Electrification: Expanding xEV Portfolio
2. ELECTRIFICATION EXPANDING xEV PORTFOLIO Ramp-up of EQC production to meet high demand; smart from now on EV only; market launch EQV this summer; world premiere EQA later this year. More than 20 Plug-In hybrid variants by 2020; comprehensive roll-out of 48V technology Ramping-up battery production
Slide 34: Digitalization: We Make Our Claim in the Digital Realm
3. DIGITALIZATION WE MAKE OUR CLAIM IN THE DIGITAL REALM Rollout of latest MBUX system across entire fleet. New S-Class will raise the bar also in connectivity Thinking the car inside out: Concept defined for software-driven architecture Development of comprehensive operating system underway Growing
Slide 35: Leadership: Driving Transformation
4. LEADERSHIP DRIVING TRANSFORMATION We continue to drive cultural change across Daimler with Leadership 20X In line with new group structure we push empowerment, transparency & accountability Stronger focus on performance culture also reflected in cash flow component in management compensation 35
Slide 36: Outro
OUTRO Auto von hinten 36
Slide 37: IV. Appendix
IV. Appendix 37
Slide 38: 2019 Unit Sales by Division
DAIMLER 2019 UNIT SALES BY DIVISION in thousand units 2018 2019 % change Daimler Group 3,352.4 3,345.0 -0 of which Mercedes-Benz Cars 2,382.8 2,385.4 +0 Mercedes-Benz Vans 421.4 438.4 +4 Daimler Trucks 517.3 488.5 -6 Daimler Buses 30.9 32.6 +6 38
Slide 39: 2019 Revenue by Division
DAIMLER 2019 REVENUE BY DIVISION in billion euros 2018 2019 % change Daimler Group 167.4 172.7 +3 of which Mercedes-Benz Cars 93.1 93.9 +1 Mercedes-Benz Vans 13.6 14.8 +9 Daimler Trucks 38.3 40.2 +5 Daimler Buses 4.5 4.7 +5 Daimler Mobility 26.3 28.6 +9 39
Slide 40: 2019 Revenue by Region
DAIMLER 2019 REVENUE BY REGION in billion euros 2018 2019 % change Daimler Group 167.4 172.7 +3 of which Europe 68.5 69.5 +2 of which Germany 24.8 26.3 +6 NAFTA 48.0 52.2 +9 of which United States 41.2 45.4 +10 Asia 40.6 40.7 +0 of which China* 19.8 19.0 -4 Other markets 10.3 10.4 +1 * excluding rev
Slide 41: 2019 EBIT by Division
DAIMLER 2019 EBIT BY DIVISION EBIT in million euros; RoS/RoE in % 2018 2019 EBIT RoS/RoE* EBIT RoS/RoE* Daimler Group 11,132 6.9 4,329 1.5 of which Mercedes-Benz Cars 7,216 7.8 3,359 3.6 Mercedes-Benz Vans 312 2.3 -3,085 -20.8 Daimler Trucks 2,753 7.2 2,463 6.1 Daimler Buses 265 5.9 283 6.0 Daimler
Slide 42: 2019 EBIT by Division (Q4)
DAIMLER 2019 EBIT BY DIVISION EBIT in million euros; RoS/RoE in % Q4 2018 Q4 2019 EBIT RoS/RoE* EBIT RoS/RoE* Daimler Group 2,669 5.8 388 0.8 of which Mercedes-Benz Cars 1,883 7.3 1,310 4.9 Mercedes-Benz Vans 81 2.0 -1,050 -24.5 Daimler Trucks 710 6.8 382 3.9 Daimler Buses 132 8.6 119 8.2 Daimler Mo
Slide 43: Reconciliation of EBIT Reported to EBIT Adjusted
DAIMLER 2019 RECONCILIATION OF EBIT REPORTED TO EBIT ADJUSTED in million euros Mercedes- Mercedes- Daimler Daimler Daimler Reconcil- Daimler Benz Cars Benz Vans Trucks Buses Mobility iation Group EBIT as reported 2019 3,359 -3,085 2,463 283 2,140 -831 4,329 Legal proceedings and related 2,482 2,541
Slide 44: Key Balance Sheet and Financial Figures
DAIMLER 2019 KEY BALANCE SHEET AND FINANCIAL FIGURES in billion euros Daimler Group Dec. 31, 2018 Dec. 31, 2019 Equity ratio 22.2% 20.5% Gross liquidity 25.4 27.5 Funded status of pension obligations -6.2 -8.4 Funding ratio 80% 77%* Industrial business Equity ratio 42.8% 36.7% Net liquidity 16.3 11.
Slide 45: Financial Flexibility Over a 12-Month Period
DAIMLER 2019 FINANCIAL FLEXIBILITY OVER A 12-MONTH PERIOD in billion euros 60.9 55.7 Other, incl. The financial flexibility provides support to mitigate risk finance lease and volatility through a balanced mix of funding ABS potential Commercial instruments and clear principles paper Bank loans Daim
Slide 46: Mercedes-Benz Cars Unit Sales by Segments
MERCEDES-BENZ CARS UNIT SALES BY SEGMENTS in thousand units 2,383 2,385 130 107 smart 19 28 Sports Cars 829 790 SUVs 84 75 S-Class 418 E-Class 434 440 C-Class 478 409 527 A-/B-Class 2018 2019 46
Slide 47: Mercedes-Benz Cars Unit Sales by Regions
MERCEDES-BENZ CARS UNIT SALES BY REGIONS in thousand units 2,383 2,385 395 386 Rest of world 659 657 Europe excl. Germany 324 335 Germany 327 313 United States 678 694 China 2018 2019 47
Slide 48: Mercedes-Benz Cars Unit Sales in China
MERCEDES-BENZ CARS UNIT SALES IN CHINA in thousand units imported locally produced 678 694 619 127 193 488 196 400 171 293 150 567 485 147 423 317 250 146 2014 2015 2016 2017 2018 2019 48
Slide 49: Mercedes-Benz Vans Unit Sales by Segments
MERCEDES-BENZ VANS UNIT SALES BY SEGMENTS in thousand units 438.4 421.4 206.3 231.5 Sprinter 108.3 109.3 Vito 63.9 63.1 V-Class 16.7 13.8 X-Class 26.3 20.7 Citan 2018 2019 49
Slide 50: Daimler Trucks Unit Sales by Regions
DAIMLER TRUCKS UNIT SALES BY REGIONS in thousand units 517 489 39 30 Rest of world 165 135 Asia 38 43 Latin America 190 201 NAFTA region 85 80 EU30* 2018 2019 * European Union, Switzerland and Norway 50
Slide 51: Daimler Trucks Incoming Orders
DAIMLER TRUCKS INCOMING ORDERS* in thousand units 589 43 163 399 35 26 Rest of world 139 Asia 256 42 Latin America 122 NAFTA region 92 70 EU30** 2018 2019 * net order intake, adjusted for cancellations ** European Union, Switzerland and Norway 51
Slide 52: Daimler Buses Unit Sales by Regions
DAIMLER BUSES UNIT SALES BY REGIONS in thousand units 32.6 30.9 5.1 Rest of world 4.7 4.2 Latin America 4.9 (excl. Brazil and Mexico) 8.8 11.4 Brazil 3.2 2.6 Mexico 9.3 9.3 EU30* 2018 2019 * European Union, Switzerland and Norway 52
Slide 53: Daimler Mobility Contract Volume
DAIMLER MOBILITY CONTRACT VOLUME in billion euros 162.8 154.1 36.0 Africa & Asia-Pacific 33.7 56.1 59.6 Americas 38.0 41.3 Europe (excl. Germany) 26.2 25.9 Germany 12/31/2018 12/31/2019 53
Slide 54: Daimler Mobility Net Credit Losses
DAIMLER MOBILITY 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% 0.26% 0,21% * as a percentage of portfolio, subject to credit risk 54
Slide 55: Daimler Mobility YOUR NOW Joint Ventures
DAIMLER MOBILITY YOUR NOW JOINT VENTURES 1. FREE NOW & REACH NOW 2. SHARE NOW 3. PARK NOW & CHARGE NOW 12/2019 YTD Interactions in millions 588 286 33.5 34.4 234* 0.30 Customers** in millions >90 41.4 7.5 >4 37.9* 0.04 Cities** >1,300 151 20 27 >1,300* n/a GMV RR*** in bn € 3.8 * For U.S. entity of
Slide 56: 2020 Outlook Assumptions for Automotive Markets
2020 OUTLOOK ASSUMPTIONS FOR AUTOMOTIVE MARKETS CAR MARKETS Global around the prior-year level Europe around the prior-year level USA slight decrease China around the prior-year level VAN MARKETS EU30 around the prior-year level USA slight growth HEAVY-DUTY NAFTA region significant decrease TRUCK MA
Slide 57: 2020 Outlook Unit Sales
2020 OUTLOOK UNIT SALES Mercedes-Benz Cars SLIGHTLY LOWER UNIT SALES More than half a dozen new and upgraded vehicles Continuation of the electric mobility offensive Mercedes-Benz Vans SLIGHTLY LOWER UNIT SALES Daimler Trucks SLIGHTLY LOWER UNIT SALES Normalization of major truck markets Daimler Bus
Slide 58: 2020 Outlook Revenue
2020 OUTLOOK REVENUE REVENUE AT THE PRIOR-YEAR LEVEL Mercedes-Benz REVENUE AT THE PRIOR-YEAR LEVEL Cars & Vans Daimler SIGNIFICANT DECREASE IN REVENUE Trucks & Buses Daimler Mobility REVENUE AT THE PRIOR-YEAR LEVEL 58
Slide 59: 2020 Outlook Group EBIT and Divisional RoS/RoE
2020 OUTLOOK GROUP EBIT AND DIVISIONAL ROS/ROE WE EXPECT GROUP EBIT FOR FY 2020 TO BE SIGNIFICANTLY ABOVE THE PRIOR-YEAR LEVEL Mercedes-Benz RETURN ON SALES ADJUSTED: 4 TO 5% Cars & Vans Daimler RETURN ON SALES ADJUSTED: 5% Trucks & Buses Daimler Mobility RETURN ON EQUITY ADJUSTED: 12% 59
Slide 60: 2020 Outlook Capital Allocation
2020 OUTLOOK CAPITAL ALLOCATION INVESTMENT IN PP&E Daimler Group At the prior-year level AND R&D EXPENDITURE FREE CASH FLOW Industrial business Significantly above prior-year level* CASH CONVERSION RATE Cars & Vans 0.7x to 0.9x ADJUSTED Trucks & Buses 0.8x to 1.0x * excluding possible expenses relat
Slide 61: 2019 Capital Expenditure / Research and Development
DAIMLER 2019 CAPITAL EXPENDITURE / RESEARCH AND DEVELOPMENT in billion euros Investment in property, plant Research and development and equipment expenditure 7.5 9.7 9.4 7.2 6.9 9.1 Actual Actual Plan Actual Actual Plan 2018 2019 2020/2021 2018 2019 2020/2021 (average p.a.) (average p.a.) 61
Slide 62: 2019 Capital Expenditure / Research and Development
DAIMLER 2019 CAPITAL EXPENDITURE / RESEARCH AND DEVELOPMENT in billion euros Investment in property, plant Research and development and equipment expenditure Actual Actual Plan* Actual Actual Plan* 2018 2019 2020-2021 2018 2019 2020-2021 Daimler Group 7.5 7.2 6.9 9.1 9.7 9.4 of which Mercedes-Benz C
Slide 63: 2019 Disclaimer
DAIMLER 2019 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 f