Slide 1: Roadshow Presentation Q3 2021
Roadshow Presentation Q3 2021 Daimler AG Daimler AG
Slide 2: Agenda
AGENDA I. RESULTS Q3 2021 II. OUTLOOK FY 2021 III. STRATEGY 1. DAIMLER GROUP 2. MERCEDES-BENZ CARS & VANS 3. DAIMLER TRUCKS & BUSES 4. DAIMLER MOBILITY Daimler AG Roadshow Presentation | Q3 2021 2
Slide 3: Daimler: Key messages
Daimler: Key messages ▸ Business development Q3: strongly influenced by supply constraints due to semiconductor shortage; resilience of business further improved ▸ Favorable development of Net Industrial Liquidity & Free Cash Flow supporting financial flexibility ▸ Strategy execution: ramp-up of EV
Slide 4: Q3/Q4 Reporting Changes
Q3/Q4 Reporting Changes Group P&L (Financial Statements)1 Segment P&L Q3/Q4/FY Until Q3 2021 (unchanged) Continued Mainly: Mercedes-Benz Cars & Vans, Mercedes-Benz Daimler Daimler Trucks Reconciliation Operations (CO) Daimler Mobility², Reconciliation Cars & Vans Mobility & Buses Presented as usual
Slide 5: Daimler key figures Q3 2021
Daimler key figures: Despite significantly lower volumes, revenue was at about last year’s third quarter Free Cash Net Industrial Sales Revenue EBIT EBIT adj. in thousand units in billion euros in billion euros in billion euros Flow (IB) Liquidity in billion euros in billion euros 40.3 40.1 5.1 773
Slide 6: Daimler Q3 2021: Group EBIT
Daimler Q3 2021: Group EBIT (incl. Discontinued Operations – DO) in million euros +409 3,479 -242 +342 +146 3,611 -32 3,579 -680 +559 3,070 -114 Mercedes-Benz Cars & Vans: • Legal proceedings -74 2,899 2,511 • Restructuring measures -97 Daimler Trucks & Buses: • Restructuring measures -16 • M&A Tran
Slide 7: Mercedes-Benz Cars & Vans: Highlights
Mercedes-Benz Cars & Vans: Highlights ▸ Strong demand for Mercedes-Benz products in all markets. Especially electric and high-end vehicles with high growth rates ▸ Sales significantly restricted by ongoing semiconductor shortage ▸ Favorable mix and net pricing offset semi-driven supply constraints a
Slide 8: Mercedes-Benz Cars unit sales
Mercedes-Benz Cars unit sales: Significantly impacted by shortage of semiconductor components in thousand units BY REGIONS BY SEGMENT 567 567 71 10 3 146 383 242 383 6 smart 71 Rest of world 2 Sports Cars 84 Europe 14 88 186 52 excl. Germany SUVs 83 45 Germany 46 United States 84 26 S-Class 214 53 E
Slide 9: Mercedes-Benz Cars & Vans financials
Mercedes-Benz Cars & Vans financials: Revenues remained at about last year’s level Sales Revenue EBIT adj. CFBIT adj. in thousand units in billion euros in billion euros in billion euros 673 4.8 25.8 25.6 4.1 2.4 471 2.2 -30% -1% -10% -14% Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2
Slide 10: Mercedes-Benz Cars & Vans EBIT & RoS
Mercedes-Benz Cars & Vans EBIT & RoS: Exceptionally favorable structure effects and improved net pricing Favourable product mix Improved net pricing in million euros Significantly lower unit sales due to worldwide shortage of semiconductor components Disruptions in production network and supply chai
Slide 11: Daimler Trucks & Buses: Highlights
Daimler Trucks & Buses: Highlights ▸ Q3 sales significantly impacted by semi-conductor shortages with shortfall mostly felt in heavy duty markets North America and Europe; significant amount of trucks awaiting completion ▸ Order Book for 2022 opened for North America with record incoming orders duri
Slide 12: Daimler Trucks: unit sales and incoming orders
Daimler Trucks: growth in unit sales and strong incoming orders in thousand units UNIT SALES BY REGIONS INCOMING ORDERS** 162 12 Rest of world 35 Asia 102 100 94 20 Latin America 8 Rest of world 9 7 22 31 Asia 25 8 8 67 16 Latin America North America 42 34 North America 42 15 EU30* 27 EU30** 13 16 Q
Slide 13: Daimler Trucks & Buses financials
Daimler Trucks & Buses financials: Strong sales and unfavorable regional and product mix Sales Revenue EBIT adj. CFBIT adj. in thousand units in billion euros in million euros in million euros 9.2 8.9 1,142 106.4 99.3 603 489 +7% -4% -19% -1,670 -527 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q
Slide 14: Daimler Trucks & Buses EBIT & RoS
Daimler Trucks & Buses EBIT & RoS: Industrial performance burdened mainly by higher raw material prices Net pricing Positive contributions from used vehicle business and from aftermarket Positive one-time effects from BFDA Impairment reversal Unfavorable regional heavy duty sales mix due to supply c
Slide 15: Daimler Mobility: Highlights
Daimler Mobility: Highlights ▸ Reduced portfolio due to semi-conductor shortage and lower dealer stock ▸ Support for EV-sales at level comparable to ICEs ▸ Interest result benefitting from lower refinancing cost ▸ No new credit risk provisions required in Q3 due to high portfolio quality ▸ Improved
Slide 16: Daimler Mobility Financials
Daimler Mobility Financials: EBIT adj. benefitting especially from favorable refinancing costs New Contract EBIT adj. business volume in million euros in billion euros in billion euros 943 18.7 150.6 148.1 14.6 601 -22% -2% +57% Q3 2020 Q3 2021 12/31/2020 9/30/2021 Q3 2020 Q3 2021 For more details o
Slide 17: Daimler Mobility net credit losses
Daimler Mobility net credit losses*: Strong credit quality of the portfolio 0.89% 0.83% 0.68% 0.61% 0.50% 0.51% 0.43% 0.36% 0.37% 0.34% 0.33% 0.31% 0.31% 0.26% 0.26% 0.24% 0.21% 0.20% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 per Sep 2021 * as a percentage
Slide 18: Daimler Mobility EBIT & RoE
Daimler Mobility EBIT & RoE: Main driver were lower refinancing costs which improved the interest margin Margin benefiting from lower refinancing costs Improved operative business performance at Mobility Services and Fleet Management Negative impact in Q3 2020 due to impairment of software in contex
Slide 19: Agenda
AGENDA I. RESULTS Q3 2021 II. OUTLOOK FY 2021 III. STRATEGY 1. DAIMLER GROUP 2. MERCEDES-BENZ CARS & VANS 3. DAIMLER TRUCKS & BUSES 4. DAIMLER MOBILITY Roadshow Presentation | Q3 2021 19
Slide 20: Market Guidance 2021
Market Guidance 2021 Assumption The economic conditions for worldwide demand are likely to remain favourable during the rest of the year. One must assume, however, that strained supply chains and bottlenecks for key components will continue to have a considerable impact on worldwide vehicle producti
Slide 21: Divisional Guidance 2021
Divisional Guidance 2021 Assumption The economic conditions for worldwide demand are likely to remain favourable during the rest of the year. One must assume, however, that strained supply chains and bottlenecks for key components will continue to have a considerable impact on worldwide vehicle prod
Slide 22: Daimler Group Guidance 2021
Daimler Group Guidance 2021 Assumption The economic conditions for worldwide demand are likely to remain favourable during the rest of the year. One must assume, however, that strained supply chains and bottlenecks for key components will continue to have a considerable impact on worldwide vehicle p
Slide 23: Agenda
AGENDA I. RESULTS Q3 2021 II. OUTLOOK FY 2021 III. STRATEGY 1. DAIMLER GROUP 2. MERCEDES-BENZ CARS & VANS 3. DAIMLER TRUCKS & BUSES 4. DAIMLER MOBILITY Roadshow Presentation | Q3 2021 23
Slide 24: Separation of Daimler into two pure-play companies
Daimler Group Separation of Daimler into two pure-play companies: Driving value creation, greater focus and financial discipline TODAY TOMORROW DAIMLER MERCEDES-BENZ DAIMLER TRUCK MERCEDES- DAIMLER DAIMLER BENZ TRUCK MOBILITY MERCEDES- FINANCIAL BENZ SERVICES MOBILITY Separate ▸ Capital Structure an
Slide 25: Structure of the planned transaction
Daimler Group Structure of the planned transaction Separate listing of Daimler Truck Distribution of Daimler Truck shares held by Daimler to existing Daimler shareholders Majority in free-float, Daimler ceases control over DT but intends to retain a minority shareholding No additional investment nee
Slide 26: Project Focus: Mercedes-Benz, the pre-eminent luxury car business
Daimler Group Project Focus: Mercedes-Benz, the pre-eminent luxury car business Mercedes-Benz Leading Global “pure play” OEM with unique brand recognition automotive “Ambition 2039” amplifying clear commitment to Sustainability as strategic priority luxury brand Attractive captive financial services
Slide 27: Project Focus: Daimler Truck unlocking the full potential
Daimler Group Project Focus: Daimler Truck unlocking the full potential Daimler Truck Global Global market presence with market-leading brands in triad markets #1 Ready to seize opportunities in emerging markets CV player Leverage existing global platforms to turn scale into profit Lead in Powertrai
Slide 28: Daimler Truck AG majority spin-off: transaction structure and details
Daimler Group Daimler Truck AG majority spin-off: Intended transaction structure and details Transfer of the majority of Daimler Truck to Daimler shareholders True independent governance of Attractive financial profiles Prime listing for Daimler Truck Daimler Truck for both companies Daimler Truck A
Slide 29: Daimler Truck listing planned by year-end 2021
Daimler Group The listing of Daimler Truck is planned to be complete by year-end 2021 Decision & Extraordinary Listing of Announcement of Shareholder Meeting Daimler Truck Project Focus targeted February 3, 2021 May 20, 2021 October1, November 11, End of 2021 2021 2021 Capital Market Update Capital
Slide 30: Three levers to sustainably improve our cash flow
Three levers to sustainably improve our cash flow “Improve “Establish “Free up cash” cash flow steering” cash flow culture” Reduction of working Creating more Cash flow as part of the capital: from purchase to transparency and Daimler DNA: from production to sales visibility management to empl
Slide 31: Sustainable Working Capital development
Mercedes-Benz Cars & Vans – Sustainable Working Capital development despite Covid, semiconductor and supply chain impacts 19.5 CCC: 75 in bill. €, in days Trade payables 17.2 CCC: 72 Trade receivables 15.8 CCC: 64 Inventories Working capital 7.6 DSO: 26 6.8 DSO: 25 5.9 DSO: 20 21.0 DIO: 86 19.1 20.4
Slide 32: Establishing a cash flow culture
Establishing a cash flow culture — clear vision as starting point Daimler is a cash-focused and cash-oriented company Employees in a cash-focused and cash-oriented organization understand… ...the meaning and the ...how to influence ...how to act cash importance of cash flow and improve cash flow-ori
Slide 33: Agenda
AGENDA I. RESULTS Q3 2021 II. OUTLOOK FY 2021 III. STRATEGY 1. DAIMLER GROUP 2. MERCEDES-BENZ CARS & VANS 3. DAIMLER TRUCKS & BUSES 4. DAIMLER MOBILITY Roadshow Presentation | Q3 2021 33
Slide 34: Ambition 2039
Mercedes-Benz Cars With our Ambition 2039 we put a stake into the ground Our ambition: carbon-neutrality by 2039 Now it’s time to accelerate with the full and rapid electrification of our products Daimler AG Roadshow Presentation | Q3 2021 34
Slide 35: Our electric product rollout is running at full speed
Mercedes-Benz Cars Our electric product rollout is running at full speed EQS order intake is strong even though sales only started in August In the first three quarters of the year, sales of hybrid and EQB EQA electric vehicles surged to a record 184,369 units (+143%) 2021 61,652 plug-in hybrids and
Slide 36: Electrifying our brands
Mercedes-Benz Cars Electrifying our brands: leveraging their full potential Launch of a sophisticated luxury electric Mercedes-Maybach SUV in 2023 Launch of the fully electric G-Class in 2024 AMG will go electric and will redefine high performance with a completely new electric architecture Daimler
Slide 37: Our focus will be on BEV only
Mercedes-Benz Cars At the end of the decade, our focus will be on BEV only By 2025 our customers will be able to choose an all-electric alternative for every model we make It’s our ambition to drive the plug-in hybrid & BEV share up to 50% in 2025. By the end of the decade, we will be ready to go al
Slide 38: We will launch three EV-only architectures in 2025
Mercedes-Benz Cars We will launch three EV-only architectures in 2025 Following the launch of MMA, the compact “electric first” architecture in 2024, all new Mercedes-Benz vehicle MB.EA architectures will be electric only MB.EA: will cover all medium and large size cars. Scalable modular system as e
Slide 39: Expanding activities in battery cells and systems
Mercedes-Benz Cars: Together with our partners, we will expand our activities in battery cells and systems Our targets: Needed battery volume for all car lines Capacity of more than 200 Gigawatt hours 200 Gwh 8 new cell factories around the world: one in the U.S., four in Europe with our partner
Slide 40: By joining ACC, we build a European battery champion
Mercedes-Benz Cars By joining ACC, we build a European battery champion We take a one third stake in Automotive Cells Company (ACC). Our goal: Joint development and production of cells and modules in Europe. ACC will reach a capacity of at least 120 Gigawatt hours in Europe by the end of the decade.
Slide 41: Our batteries will be highly standardized
Mercedes-Benz Cars Our batteries will be highly standardized Differentiating factors More than 90% of all future Mercedes-Benz vehicles will be based on a common battery platform Chemistry We are aiming for a modular battery system that consists of uniformly designed components and standard interfac
Slide 42: Next generation battery cell technology
Mercedes-Benz Cars Developing the next generation battery cell technology High-Silicon Anode: increasing energy density Expected energy density by using silicon-carbon composite in the anode Solid-State: pushing energy density beyond limits Solid-State of conventional lithium-ion cell, doubling ener
Slide 43: In-house electric motors
Mercedes-Benz Cars In-house electric motors are a key part of our strategy Ultra-high performance axial motors for our forthcoming AMGs. Axial flux technology allows for unmatched power density, performance, acceleration Electric motor and power electronics company YASA Ltd. will be a fully owned su
Slide 44: Green and CO2 neutral supply chain
Mercedes-Benz Cars We are establishing a green and CO2 neutral supply chain In the future, raw materials for battery Raw materials components only from IRMA-certified mines Processed materials & components Intention to partner with lithium producer Albemarle Recycling for future lithium supply, lith
Slide 45: Premium charging experience
Mercedes-Benz Cars We want to provide a premium charging experience Mercedes me Charge currently comprising more than 530,000 AC and DC charging points worldwide. We will expand and enhance our charging network with partners like Ionity and ChargePoint Mercedes-Benz customers will get enhanced acces
Slide 46: Vision EQXX: efficiency is the new currency
Mercedes-Benz Cars Vision EQXX: efficiency is the new currency Our Vision: a real range of over 1,000 kilometres with a compact car segment sized battery Our target: single digit kWh per 100 km Reducing consumption with extraordinary efficiency improvements in almost all areas. Integrating new techn
Slide 47: We are ready to accelerate EV production
Mercedes-Benz Cars We are ready to accelerate EV production Bremen Kamenz Ready to scale up: our largest plants in Beijing, Bremen, Stuttgart Jawor Kecskemét, Rastatt, Sindelfingen, and Tuscaloosa are all Sindelfingen Kecskemét capable of building EVs and are currently assembling 5 Rastatt different
Slide 48: Our new cooperation with GROB
Mercedes-Benz Cars Our new cooperation with GROB We plan to cooperate with GROB, a global leader in highly innovative battery production and automation systems Strengthening our battery production capacity and know-how Focus of cooperation on battery module assembly and pack assembly Daimler AG Road
Slide 49: Closing the loop: from value chain to value cycle
Mercedes-Benz Cars Closing the loop: from value chain to value cycle 2022: Carbon-neutral production at all Mercedes- Benz AG passenger car and battery assembly sites Establishing remanufacturing processes and repurpose of key components, e.g. batteries can be reused to help balance electricity grid
Slide 50: The transformation of our workforce
Mercedes-Benz Cars The transformation of our workforce Re-shape Re-skill Re-charge Streamlining Developing Meeting the our organization in a future-oriented Mercedes-Benz standard responsible way qualifications as an employer Continue effective process of cost reduction Ensure that motivated and qua
Slide 51: Our transition plan to go BEV-only
Mercedes-Benz Cars Our transition plan to go BEV-only What we told you 2025 BEV alternative Ready to go all-electric Faster ramp down PHEV transition for every model by end of decade of ICE vehicles technology What we are going to do New BEV architecture New BEV models New battery factories New coop
Slide 52: Revenue quality rising – driven by mix and pricing
Mercedes-Benz Cars Revenue quality rising – driven by mix and pricing Key levers Net revenue per unit* Net pricing performance Positive mix from high end electric vehicles Digital services revenue Direct sales model * schematic graph Daimler AG Roadshow Presentation | Q3 2021 52
Slide 53: BEV cost reduction focus
Mercedes-Benz Cars BEV cost reduction focus Key levers Variable costs per unit* Material and manufacturing cost reduction of 1% until 2025 Further cost reduction on electric drive train from 2025 to 2030 Decreasing cell costs and common battery platforms Scalable modular electric only architectures
Slide 54: Radical shift in capital allocation
Mercedes-Benz Cars Radical shift in capital allocation – from EV-first to EV-only Key levers CAPEX and R&D investments* Additional investments for new BEV architecture MB.EA, AMG.EA, VAN.EA and intensified battery footprint Radically reduced non-BEV investments Capex share of investments decreasing
Slide 55: Fixed cost reduction targets stepped up
Mercedes-Benz Cars Fixed cost reduction targets stepped up Key levers Fixed cost development* Covid 2020: significant fixed cost reduction 2021: temporary effects replaced by permanent measures >20% fixed cost reduction until 2025 vs. 2019 2025ff: digitization of all business areas 2019 2025 2030 Af
Slide 56: Strategy Mercedes-Benz Vans
Mercedes-Benz Vans Strategy Mercedes-Benz Vans “Moving transportation to the next level” We exceed customers’ expectations with the most desirable vans and services Lead Target Focus Embrace Lower in electric premium on customers and total drive and digital segments profitable grow recurrent cost ba
Slide 57: The next generation of the eSprinter
Mercedes-Benz Vans The next generation of the eSprinter Daimler AG Roadshow Presentation | Q3 2021 57
Slide 58: Strategy priority: Electrifying MB Vans
Mercedes-Benz Vans Strategy priority: Electrifying MB Vans Mercedes-Benz Vans is fully committed and dedicated to electrification Holistic Approach: From small over mid-size to large, we electrify every van segment eCitan VAN.EA eVito eSprinter EQV Electric T-class Next Generation eSprinter 1st gene
Slide 59: Our financial ambitions for MB AG 2025
Mercedes-Benz AG Our financial ambitions for MB AG 2025 2021: On track towards double digit RoS despite supply constraints Market environment/revenues volume mix & pricing Contribution margin Profitable growth Fixed costs > -20% vs. 2019 > -20% vs. 2019 > -20% vs. 2019 on track CAPEX and R&D > -20%
Slide 60: We are committed to our margin target
Mercedes-Benz AG We are committed to our margin target – also in the BEV world Market environment/revenues Contribution margin Profitable growth Targets increased Fixed costs Target extended > -20% vs. 2019 > -20% vs. 2019 > -20% vs. 2019 CAPEX and R&D Target extended > -20% vs. 2019 > -20% vs. 2019
Slide 61: Agenda
AGENDA I. RESULTS Q3 2021 II. OUTLOOK FY 2021 III. STRATEGY 1. DAIMLER GROUP 2. MERCEDES-BENZ CARS & VANS 3. DAIMLER TRUCKS & BUSES 4. DAIMLER MOBILITY Roadshow Presentation | Q3 2021 61
Slide 62: Our mission as an independent company is clear
Daimler Trucks & Buses Our mission as an independent company is clear RESET PROFITABILITY LEAD THE WAY TO ZERO EMISSIONS ▸ Intense focus on fixing Europe ▸ Seek cost and performance leadership ▸ Target profit benchmarks in each region ▸ Dual-track BEV and FCEV strategy ▸ No excuses: every region mus
Slide 63: Reset profitability
Daimler Trucks & Buses Reset profitability Willing to take the hard decisions to create value for shareholders OUR STRATEGIC FINANCIAL GOALS LOWER TARGET REGIONAL FOCUS ON BREAKEVEN TO PROFIT HIGHEST RETURN MANAGE BENCHMARKS SEGMENTS CYCLICALITY SYSTEMATIC GROW NO EXCUSES: LOWERING OF SERVICES AND E
Slide 64: Lead the way to zero emissions
Daimler Trucks & Buses Lead the way to zero emissions: We are going ‘all in’ on zero-emission trucks to achieve technology leadership OUR STRATEGIC TECHNOLOGY GOALS TECHNOLOGY BUSINESS AMBITIOUS COST PATH SET ROADMAP FOR TARGETS FOR TO GET TO ZEV IN PLACE ZEV & TCO PARITY ZERO EMISSIONS IN-HOUSE TEC
Slide 65: Our 2025 financial ambitions for Daimler Truck
Daimler Trucks & Buses Our 2025 financial ambitions for Daimler Truck Unlock potential; manage cyclicality; fully reward shareholders MARKET ENVIRONMENT FIXED COST -15% VS. 2019 CAPEX / R&D -15% VS. 2019 PROFITABILITY 6 - 7% 8 - 9% >10% CASH CONVERSION 0.8 - 1.0X FULL FINANCIAL TARGETS AND GUIDANCE
Slide 66: Daimler Trucks & Buses
Daimler Trucks & Buses Daimler AG Roadshow Presentation | Q3 2021 66
Slide 67: Agenda
AGENDA I. RESULTS Q3 2021 II. OUTLOOK FY 2021 III. STRATEGY 1. DAIMLER GROUP 2. MERCEDES-BENZ CARS & VANS 3. DAIMLER TRUCKS & BUSES 4. DAIMLER MOBILITY Roadshow Presentation | Q3 2021 67
Slide 68: Strategy Daimler Mobility
Daimler Mobility Strategy Daimler Mobility Daimler AG Roadshow Presentation | Q3 2021 68
Slide 69: Daimler Mobility Our Role
Daimler Mobility Our Role We create demand for vehicles and services. We promote and ensure customer loyalty. We contribute to Daimler’s financial success. We open up new opportunities through innovative solutions. WE MO>E YOU Daimler AG Roadshow Presentation | Q3 2021 69
Slide 70: Daimler Q3 2021 Disclaimer
DAIMLER Q3 2021 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 identif