Mercedes-benz Group Ag · XETR:MBG
Mercedes-benz — Investor Day (September 2017)
13 slides from Mercedes-benz's investor day presentation, Sep 11, 2017
Slide 1: MBC Capital Market Day 2017 – Beyond Next Stage – Facing F4L 4.0
MBC Capital Market Day 2017 Beyond Next Stage – Facing F4L 4.0 Frank Lindenberg, Member of the Divisional Board Mercedes-Benz Cars Executive Vice President Finance & Controlling September, 11th 2017
Slide 2: Solid profitability track record for Mercedes-Benz Cars
Solid profitability track record for Mercedes-Benz Cars. Profit Performance per year … ROS w/o SRI in % 10 10 10* 9 8.1 8.9 7.2 8.3 6.5 EBIT w/o SRI in bn EUR 6 5.2 4.4 4.6 4.2 2011 2012 2013 2014 2015 2016 YTD 06/2017 2017e 2018e * Reported figures incl. Items for Disclosure
Slide 3: Flashback Capital Market Day 2015: short-term targets promised, mid-term challenges ahead
Flashback “Capital Market Day 2015”: We promised short-term financial target achievement, but highlighted mid-term challenges ahead… Tightening CO2 regulations EbIT-projection MBC “Plan 2015” Growth in small segments Attractive products at competitive costs CMD 2015 Capital Market Day June 2015 Targ
Slide 4: Our status today: short term targets delivered, more challenges ahead
… Our status today: We delivered regarding short term target achievement, but now see even more challenges in the future. EbIT-projection MBC “Plan 2017” Capital Market Day September 2017 Target EbIT EbIT Baseline 2017 Fast achievement Need for structural change of target level increases additionall
Slide 5: Challenges are getting bigger
Challenges are getting bigger. The Reason The Impact The Answer Boost of EV share with significantly lower margins compared to combustion engine vehicles Rising hybridization & CO2 measures with significant margin loss in EbIT-projection the classic ICE based business Capacity expansion & technology
Slide 6: Electrification of product portfolio is mandatory but a mid-term margin challenge
„Electrification“ of product portfolio is mandatory but turns into mid-term margin challenge. Change in MBC Profit Structure EbIT-Impact in % Revenues 10 % RoS Contribution Margin Funding Ratio Fixed Cost Ratio RoS
Slide 7: Development of R&D and CapEx ratios due to increasing CASE spending
Development of R&D and CapEx ratios for MBC due to increasing CASE spending. CASH view … - In % of revenue - ~7 ~7 6.5 6.3 6.4 R&D* ~6 5.7 5.8 5.6 5.5 4.9 ~5 4.7 4.6 CapEx** 4.3 Share of CASE 2011 2012 2013 2014 2015 2016 2017e 2018e * Capitalized and non-capitalized R&D ** CapEx for pp&e
Slide 8: Fit For Leadership remains our backbone for continuous optimization
Fit For Leadership remains our backbone for continuous optimization … but the program develops! „Classic“ „Next Stage“ „4.0“ „Transfer Leading Position into Future“ 2 bn € cost savings Profit Profit Sales Sales Sales Profit 2 1 3 2011 2015 2011 2020 2011 2025 „Revitalization of „Profit Turnaround „S
Slide 9: The 2-Pillar Strategy integrates two dimensions
The „2-Pillar Strategy” integrates two dimensions. Mercedes-Benz Cars Integrated overall strategy Core Strengthening of competitiveness in Customer-centric creation classic industrial business system of new business model Ensures CO2 compliance Game Changing EV‘s and drives cultural change 2 1 3 Pro
Slide 10: Our central transformation activities have two lines of attack
Bottom-line, our central transformation activities have also two lines of attack. „balance business system “ „initiate the right business change“ Transformation of Transformation of our Profit Structure our Business System
Slide 11: The Core of CASE is a customer-centric integration of future hardware and service offerings
The Core of CASE is a customer-centric integration of future Hardware- & Service-offerings ... Create Game Changing EV’s Revolutionize Mobility Services Innovate Infrastructure Beyond Car-Mobility Classic car owner Progressive Car User „Premium Shared Mobility“ „Infrastructure Offering“ goes „digita
Slide 12: F4L 4.0: Cross-functional approach with strong ExCom leadership
F4L 4.0: Cross-functional approach with strong ExCom leadership … Product based optimization Compacts SUV‘s Sedan‘s Pure EV‘s Cost structure optimization Product concept optimization Klaus Zehender Product cost optimization Overlapping work packages with cross-functional focus Direct ExCom Lead
Slide 13: 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