Daimler Truck Holding Ag · XETR:DTG
Daimler Truck — Debt Investor Presentation (September 2024)
28 slides from Daimler Truck's debt investor presentation, September 2024
Slide 1: Fixed Income Roadshow Presentation
FIXED INCOME ROADSHOW PRESENTATION September 2024 ISIN: DE 000 DTR0CK8 Bloomberg Ticker: DTG:GR Level I ADR Program WKN: DTR0CK Reuters Ticker: DTGGe.DE ISIN: US23384L1017
Slide 2: Our Purpose: For All Who Keep the World Moving
OUR PURPOSE: FOR ALL WHO KEEP THE WORLD MOVING We keep our heritage and lay the foundations for the future 2025 2030 TRUCKS WILL REMAIN THE BACKBONE OF OUR ECONOMY WE ARE THE VOICE OF OUR INDUSTRY WE DRIVE THE TRANSFORMATION WITH GREAT ZEV PRODUCTS WE SUPPORT OUR CUSTOMERS WITH THE RIGHT SOLUTIONS D
Slide 3: Transport Is the Backbone of Our Economy and Society
TRANSPORT IS THE BACKBONE OF OUR ECONOMY AND SOCIETY Trucking remains a growth industry as global economy transitions to lower carbon CORE TRUCK MARKETS TO STAY ON A HIGH LEVEL, INDIA WITH SIGNIFICANT GROWTH POTENTIAL ▸ Global transport volume has grown over the past years and will continue to grow
Slide 4: How We Win
HOW WE WIN We build our foundations on strong strategic pillars & a high -performance culture #1 #2 #3 PROFITABILITY SERVICES ZEV Implementation Build recurring revenue Leverage our scale of our self-help streams, increase with global platforms measures to increase resilience and customer for ICE an
Slide 5: Daimler Truck Global Leadership
DAIMLER TRUCK GLOBAL LEADERSHIP Platform, powertrain and system commonality Sales Revenue EBIT adjusted in Units in million € in million € 1 +1% +10% +39% 55,890 5,489 50,945 526,053 520,291 3,959 2022 2023 #1 #1 #3 #2 #1 GLOBAL LEADER2 NORTH AMERICA Class 6-8 EU-303 MDT/HDT JAPAN Trucks Total BRAZI
Slide 6: Daimler Truck North America: From Strong to Stronger
DAIMLER TRUCK NORTH AMERICA: FROM STRONG TO STRONGER On-highway business presents a very clear framework for vocational success LEADING POSITION… 1 …STRONG FOUNDATIONS… ….RIGHT PRODUCT PORTFOLIO 40% Market share 2 1M+ Uncompromised CASCADIAS BUILT3 customer focus On-highway On-highway large/mega fle
Slide 7: Mercedes-Benz: Rebuilding Profitability
MERCEDES-BENZ: REBUILDING PROFITABILITY Strong market position in key markets and strong product portfolio STRONG MARKET POSITION ACROSS REGIONS … … AND PRODUCT PORTFOLIO Brazil KEY MARKETS 23% market share1 EU 30 20% market share1 HEAVY DUTY TRUCKS #2 BRAND BRAZIL1 #1 BRAND EU-301 Finland Kassel Ma
Slide 8: Daimler Truck Asia: Opportunity and Growth
DAIMLER TRUCK ASIA: OPPORTUNITY AND GROWTH Leveraging true Asian footprint and Daimler Truck technology LEADING POSITION… 1 …STRONG FOUNDATIONS… ….LOCALIZED FULL PORTFOLIO Renowned and true Top 3 Japan local brands HEAVY DUTY # 1 Indonesia Balance of markets TRUCKS China Proven recurring 12% Market
Slide 9: Daimler Buses: Global Market Leader
DAIMLER BUSES: GLOBAL MARKET LEADER #1 in all core markets through intense customer focus # 1 IN OUR KEY MARKETS ▪ Direct sales, service and spare parts – from one single customer touchpoint EU 30 BRAZIL MEXICO 20% market share1 55% market share1 41% market share1 FULL LINE ▪ Covering all segments i
Slide 10: Daimler Truck Financial Services Is Scaling Up
DAIMLER TRUCK FINANCIAL SERVICES IS SCALING UP DTFS live in 17 markets & continues its profitable growth in a challenging market environment Phase 1 Phase 2 Foundation Phase Contract Volume Penetration Rate ‘21 ‘22 ‘23 ‘24 ‘25 in billion Euro in % Dec Apr Aug Oct Nov Mar Jan Early 30 * 30 Ø 24 19 25
Slide 11: Outlook 2025: We Reaffirm Our Financial Ambitions
OUTLOOK 2025: WE REAFFIRM OUR FINANCIAL AMBITIONS Self-help measures build greater resilience in a challenging environment GROW SERVICES KEEP STRICT FOCUS ON FOCUS ON THE RIGHT FIXED COST REDUCTION INVESTMENTS ▸ Translating our long-term ▸ Confirmed relative ambitions ▸ Rightsized investments custom
Slide 12: We Are on Track to Deliver on 2025 Ambition
WE ARE ON TRACK TO DELIVER ON 2025 AMBITION ROS of >10% within reach ROS/ROE adjusted Daimler Trucks Mercedes–Benz Truck IB1 North America Trucks Asia Daimler Buses Financial Services2 in % 2025 ambition in >10% 12% 10% 9% 8% >14%3 markets 2023 9.9% 12.3% 10.2% 4.7% 4.7% 9.1% 2022 7.7% 10.8% 8.1% 2.
Slide 13: We Are Continuously Working on Our Self-Help Measures
WE ARE CONTINUOUSLY WORKING ON OUR SELF-HELP MEASURES Fixed cost ambitions remain key focus, investments in transformation ramping-up SERVICE REVENUE IB FIXED COSTS IB1 CAPEX PPE & R&D GROUP2 in € in € in € >+25% -15% -15% +18% -6% -3% Additional Business Autonomous 2019A 2023A 2025 2019A 2023A 2025
Slide 14: Executing Our Share Buyback Program
EXECUTING OUR SHARE BUYBACK PROGRAM Enhanced dividend policy and up to 2 billion € buyback SHARE BUYBACK PROGRAM HIGH & LESS CYCLICAL UP TO 2 BILLION € DIVIDEND PAYOUT 40–60% EXECUTION UP TO TWO TRANCHES Started: August 2023 Executed by end of July 2024: 0.9 billion € Range to maintain a stable divi
Slide 15: Solid Liquidity & Investment-Grade Rating
SOLID LIQUIDITY & INVESTMENT-GRADE RATING Upgrade by S&P to A- in June 2024 S&P: A- Moody’s: A3 SOLID RATING Outlook: stable Outlook: stable ACTUALS ACTUALS in billion € Dec 31, 2023 Jun 30, 2024 DAIMLER TRUCK “We expect Daimler Truck's operating Equity ratio 32% 30% performance to show resiliency i
Slide 16: Well-Diversified Funding Mix
WELL-DIVERSIFIED FUNDING MIX Using a variety of instruments in our relevant markets MARKETS FUNDING INSTRUMENTS Others1 CP ABS Japan ▪ Balanced financing through capital Mexico market instruments, bank loans, commercial paper and selected ABS Bank Loans Brasil ▪ Daimler Truck Financial Services USA
Slide 17: Bond Maturity Profile
BOND MATURITY PROFILE Well balanced Bond Maturity Profile MATURITY PROFILE BONDS in billion EUR as of Jun 30, 2024 4,1 0,1 Issued in 2024 3,2 3,2 Maturities 0,1 2,1 1,8 4,0 1,8 3,1 1,2 0,9 0,7 0,7 1,4 0,5 0,5 2024 2025 2026 2027 2028 2029 2031 2033 2034 Daimler Truck Group | Fixed Income Roadshow Pr
Slide 18: Our Funding Strategy Is Built on Strict Principles
OUR FUNDING STRATEGY IS BUILT ON STRICT PRINCIPLES Ensuring financial flexibility and independence TARGETING FINANCIAL MAXIMIZING FUNDING MATCHING GLOBAL INDEPENDENCE FINANCIAL FLEXIBILITY BUSINESS NEEDS No dependence on single Keeping prudent amount Liquidity matched markets, instruments, of cash a
Slide 19: Higher Profitability and Resilience in 2030
ALL THIS CONTRIBUTES TO A HIGHER PROFITABILITY AND RESILIENCE IN 2030 All segments drive 2030 ambition – ROS of >12% in sunny scenario ADJUSTED ROS/ROE in % HARDWARE/SERVICES SOFTWARE DTFS TRUCKS FINANCIAL DAIMLER MERCEDES- DAIMLER NORTH TRUCKS ASIA AUTONOMOUS SERVICES TRUCK (IB) BENZ BUSES AMERICA
Slide 20: Our ZEV Vehicle Portfolio Will Cover Three Different Technologies
OUR ZEV VEHICLE PORTFOLIO WILL COVER THREE DIFFERENT TECHNOLOGIES Different solutions are driven by customer needs INNER-CITY TRANSPORT & ON-HIGHWAY VOCATIONAL LOCAL DISTRIBUTION FOTOS müssen neu! Battery Electric Vehicles Fuel Cell Electric Vehicles Combustion Engine Daimler Truck Group | Fixed Inc
Slide 21: Emission Regulation and Government Policies Drive Adoption
EMISSION REGULATION AND GOVERNMENT POLICIES DRIVE ADOPTION Policymakers on all levels strongly push towards global CO2 -neutrality WINNING FORMULA PUSH FOR CO2-NEUTRALITY FACTOR 1 Product Offering x PARIS AGREEMENT & GLOBAL RACE EUROPEAN GREEN DEAL: -55% CO2 FACTOR 2 TO NET ZERO EMISSIONS Infrastruc
Slide 22: Market Assumptions 2024
MARKET ASSUMPTIONS 2024 Heavy Duty Truck Market1 2024 North America2 280 – 320 k units EU303 260 – 300 k units Assumption The outlook is especially subject to further macroeconomic and geopolitical developments. 1 Source: Company estimate 2 USA, Canada and Mexico 3 European Union, United Kingdom, Sw
Slide 23: Daimler Truck Group/Industrial Business Assumptions 2024
DAIMLER TRUCK GROUP/INDUSTRIAL BUSINESS ASSUMPTIONS 2024 Group FY 2023 Guidance 2024 New Guidance 2024 Revenue 55.890 bn. € 55 – 57 bn. € 53 – 55 bn. € EBIT 5.183 bn. € on prior year level significant decrease EBIT adjusted 5.489 bn. € on prior year level slight decrease Investments in PP&E 2.991 bn
Slide 24: Daimler Truck Segment Assumptions 2024
DAIMLER TRUCK SEGMENT ASSUMPTIONS 2024 Unit Sales ROS/ROE adjusted in thousand units in % Guidance New Guidance Guidance New Guidance FY 2023 FY 2023 2024 2024 2024 2024 expected at Trucks North America 195 180 – 200 180 – 200 12.3 11 – 13 11 – 13 the top end Mercedes-Benz 159 140 – 160 120 – 135 10
Slide 25: Transforming for Sustainable Growth
TRANSFORMING FOR SUSTAINABLE GROWTH We are making great progress in unlocking our full profit potential 2021 2022 2023 2024 2025 2030 Actual Actual Actual Guidance Ambition* Ambition* 9– 6.1% 7.7% 9.9% >10% >12% 10.5% +40–60% Revenue Growth Group Adjusted Return On Sales Industrial Business in % * i
Slide 26: Speaker & Investor Relations Contact
SPEAKER & INVESTOR RELATIONS CONTACT ▪ Further information is available under www.daimlertruck.com/en/investors ▪ Q2 2024 Disclosure Presentation, Annual Report 2023, and our Factbook are available at the Daimler Truck Investor Relations website Claus Baessler Anatol Holland Vice President Treasury
Slide 27: Disclaimer
DISCLAIMER Forward-looking statements This document contains forward-looking statements that reflect our current views about future events. The words “aim”, “ambition”, “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” “may,” ”can,” “could,” “plan,” “project,” “should” and similar e
Slide 28: September 2024
September 2024 ISIN: DE 000 DTR0CK8 Bloomberg Ticker: DTG:GR Level I ADR Program WKN: DTR0CK Reuters Ticker: DTGGe.DE ISIN: US23384L1017
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