Daimler Truck Holding Ag · XETR:DTG
Daimler Truck — FY2021 Earnings Presentation
44 slides from Daimler Truck's earnings presentation, Mar 24, 2022
Slide 1: FY 2021 Annual Results Conference
FY 2021 Annual Results Conference March 24, 2022 Martin Daum, CEO ISIN: DE 000 DTR0CK8 Bloomberg Ticker: DTG:GR Jochen Goetz, CFO WKN: DTR0CK Reuters Ticker: DTGGe.DE
Slide 2: FY2021 Annual Results Conference: Highlights
FY2021 Annual Results Conference Highlights 01 Financials 02 Outlook 03 Appendix 04 Daimler Truck Holding AG | Annual Results Daimler Truck Group | FY 2021 Annual Results Conference 2 2 Conference | March 24, 2022
Slide 3: We are Daimler Truck.
Strong position today • Strong brands and teams in all regions We are • Cutting-edge technologies • Rock solid balance sheet Daimler Truck. Clear strategic ambitions for value creation going forward For all who keep the world moving. • Lead sustainable transportation • Unlock profit and free cash fl
Slide 4: We consistently executed our strategic ambitions in 2021
We consistently executed our strategic ambitions in 2021 Accelerating sustainable transportation • Launch of Mercedes-Benz eActros series production • eCitaro accounts for almost half of total market for electric city buses in Germany • Start of fuel cell joint venture cellcentric • Partnerships for
Slide 5: We consistently executed our strategic ambitions in 2021
We consistently executed our strategic ambitions in 2021 Fixed cost1 Capex1, 2 and R&D cost1, 3 Services share of revenue Main driver for achievement of Capital allocation focused on future Increasing recurring revenue 2025 profitability ambitions return on capital -15% BY 2023 -15% BY 2025 -12% -18
Slide 6: Key markets recovered in 2021 – due to constraints still below average
Key markets recovered in 2021 – due to constraints still below average units North America3 Class 8 350.000 300.000 273,200 average 250.000 40.0% 40.0% 200.000 SoM 1 SoM 1 150.000 2016 2017 2018 2019 2020 2021 units EU 304 HDT 350.000 293,700 average 300.000 250.000 200.000 18.5% 18.6% SoM 2 SoM 2 1
Slide 7: Strong sales increase and extremely strong orders in 2021
Strong sales increase and extremely strong orders in 2021 Daimler Truck Group Full year comparison: Group and business segments units units 2020 2021 180,000 174,971 Incoming Group sales Book-to-bill Incoming Group sales Book-to-bill 170,000 166,181 orders ratio orders ratio 160,000 151,123 Daimler
Slide 8: Zero-emission vehicle sales more than tripled in 2021
Zero-emission vehicle sales more than tripled in 2021 Zero-emission trucks & buses sold in 2021 712 Zero-emission trucks & buses sold in 2020 193 Daimler Truck Group | FY 2021 Annual Results Conference 8
Slide 9: Despite headwinds we achieved strong results in 2021
Despite headwinds we achieved strong results in 2021 • Strong aftermarket performance and used truck business • Financial services strongly contributed with ramp-up in biggest markets • Constraint costs and raw material inflation with negative impact, especially in the fourth quarter • Achieved fina
Slide 10: We are on track to achieve our 2025 margin ambitions
We are on track to achieve our 2025 margin ambitions ROS/ROE adjusted - in % - Daimler Trucks Mercedes–Benz Truck IB1 North America Trucks Asia Daimler Buses Financial Services2 2025 AMBITION >10% 12% 10% 9% 7.5% 14% 8 – 9% 9 – 10% 8 – 9% 7 – 8% 4 – 6% 10 – 12% 6 – 7% 7 – 8% 5 – 7% 5 – 6% 2 – 4% 6 –
Slide 11: Financials
FY2021 Annual Results Conference Highlights 01 Financials 02 Outlook 03 Appendix 04 Daimler Truck Holding AG | Annual Results Daimler Truck Group | FY 2021 Annual Results Conference 11 11 Conference | March 24, 2022
Slide 12: 2021 key figures Group – strong progress
2021 key figures Group – strong progress Revenue EBIT EBIT adjusted Free Cash Net Industrial in million Euro in million Euro in million Euro Flow IB Liquidity +10% in million Euro in million Euro 39,764 36,013 +584% +289% +284% -13% 3,357 2,552 1,781 6,024 1,556 657 1,570 491 2020A 2021A Daimler Tru
Slide 13: 2021 Revenue and EBIT Industrial Business
2021 Revenue and EBIT Industrial Business Industrial Business Highlights FY2021 vs. FY2020 38,641 in million Euro • Strong recovery in truck sales translates into 34,806 higher revenues partly offset by FX and ongoing weak Bus markets • Significant headwinds in Q4 from raw material costs and product
Slide 14: 2021 EBIT Group
2021 EBIT Group Highlights + Strong Group sales in 2021 supported by market recovery + Improved net pricing + Positive contributions from aftersales, used business and Financial Services + Positive one-time effects from valuation measures, in particular China − Significant headwinds from increase in
Slide 15: 2021 Revenue and EBIT Industrial Business by segment
2021 Revenue and EBIT Industrial Business by segment in million Euro Trucks North America Mercedes-Benz Trucks Asia Daimler Buses 16,113 15,782 13,790 13,847 5,969 5,579 4,598 4,419 4,326 4,024 3,438 3,211 770 1,452 1,482 1,613 1,015 1,160 1,168 379 323 427 248 235 111 42 67 37 Revenue EBIT Revenue
Slide 16: 2021 EBIT Industrial Business
2021 EBIT Industrial Business in million Euro 825 3,184 390 19 2,359 1,001 -144 t/o • Restruct. -141 • M&A 966 438 153 655 501 t/o • Restruct. 153 2020 EBIT (IB) Adjustments 2020 EBIT (IB) Trucks North America Mercedes-Benz Trucks Asia Daimler Buses Reconciliation 2021 EBIT (IB) Adjustments 2021 EBI
Slide 17: 2021 key figures Financial Services
2021 key figures Financial Services New Business Penetration Contract EBIT adjusted ROE adjusted in million Euro in million Euro in % Rate Volume in % in million Euro at end of period +1% +6% +10,940% +12.3 ppts -3.1 ppts 5,708 5,767 22.7% 16,866 193 12.4% 15,914 19.6% 2 0.1% 2020A 2021A Daimler Tru
Slide 18: 2021 Cash Flow Industrial Business
2021 Cash Flow Industrial Business in million Euro 1,109 3,184 CCR adjusted -356 0.8 2,160 -564 -1,213 1,556 -524 -80 1,308 -248 t/o • Restruct. 143 • M&A -392 2021 EBIT (IB) Change in Net Depreciation and Provisions, 2021 CFBIT (IB) Income taxes Interest paid/received, 2021 FCF (IB) Adjustments 202
Slide 19: End 2021 Net Industrial Liquidity – strong cash level
End 2021 Net Industrial Liquidity – strong cash level 342 6,024 in million Euro 1,556 2,556 1,570 t/o • received capital injections from 5.4 bn. former DAI as part of spin-off • paid to former DAI for acquisition 2.8 bn. of spin-off entities Net Industrial Spin-off Effects Industrial Free Cash Flow
Slide 20: Outlook
FY2021 Annual Results Conference Highlights 01 Financials 02 Outlook 03 Appendix 04 Daimler Truck Holding AG | Annual Results Daimler Truck Group | FY 2021 Annual Results Conference 20 20 Conference | March 24, 2022
Slide 21: Market assumptions 2022
Market assumptions 2022 Heavy Duty Truck Market1 2022 North America2 255 – 295 k units EU-303 240 – 280 k units Assumption The macroeconomic conditions will continue to be comparatively favorable for the global demand for our vehicles in 2022. However, this outlook is subject to the further developm
Slide 22: Daimler Truck Group/Industrial Business assumptions 2022
Daimler Truck Group/Industrial Business assumptions 2022 Group Revenue € 45.5 – 47.5 bn. EBIT slight decrease EBIT adjusted significant increase Investment pp&e slight increase R&D cost1 slight increase IB Unit Sales Revenue 500 – 520 k units € 44 – 46 bn. ROS adjusted 7 – 9% FCF on prior-year level
Slide 23: Daimler Truck segment assumptions 2022
Daimler Truck segment assumptions 2022 Unit Sales ROS/ROE adjusted - in thousand units - - in % - Trucks North America 175 – 195 10 – 12% Mercedes-Benz 155 – 175 6 – 8% Trucks Asia 140 – 160 3 – 5% Daimler Buses 20 – 25 > 0% Financial Services € 8 – 9 bn. 1 5 – 7% 2 Assumption The macroeconomic cond
Slide 24: 2022 Strategic priorities: Unlocking profit potential
2022 Strategic priorities: Unlocking profit potential Manage environment • Take advantage of strong markets • Fight risks related to supply chain and inflation, especially in Q1 • Monitor potential impact of war in Ukraine Increase resilience • Strict fixed cost control • Grow services, for example
Slide 25: 2022 Strategic priorities: Leading sustainable transportation
2022 Strategic priorities: Leading sustainable transportation Accelerating zero emissions • Launching heavy-duty truck Freightliner eCascadia, range up to 400 kilometers • Launching refuse collection specialist Mercedes-Benz eEconic • Launching next generation light truck FUSO eCanter, first introdu
Slide 26: We are Daimler Truck.
We are Daimler Truck. For all who keep the world moving.
Slide 27: Appendix
FY2021 Annual Results Conference Highlights 01 Financials 02 Outlook 03 Appendix 04 Daimler Truck Holding AG | Annual Results Daimler Truck Group | FY 2021 Annual Results Conference 27 27 Conference | March 24, 2022
Slide 28: 2021 Incoming Orders and Group Sales
2021 Incoming Orders and Group Sales Trucks North America Mercedes-Benz Trucks Asia Daimler Buses units 6,452 96,680 57,625 55,810 6,067 45,613 43,664 50,242 53,047 42,896 5,601 5,222 68,088 40,826 40,444 43,040 54,344 38,072 42,289 39,548 4,477 38,717 34,688 4,378 4,618 47,626 43,233 4,267 31,770 3
Slide 29: 2021 IB Performance: Revenue by Segment
2021 IB Performance: Revenue by Segment in million Euro Daimler Truck Industrial Business Reconciliation 11,081 10,570 9,961 8,745 8,854 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 -515 -540 -607 -624 -664 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Trucks North America Mercedes-Benz Trucks Asia Daimler Buses Financial Service
Slide 30: 2021 IB Performance: EBIT by Segment
2021 IB Performance: EBIT by Segment Daimler Truck Industrial Business Reconciliation in million Euro 1,663 1,175 798 810 585 552 522 502 475 358 365 -25 -28 -28 -47 -48 -147 -155 -105 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 -113 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 ROS adj. 5.5% 6.3% 8.1% 5.4% 4.7% REVENUE 10,570 8
Slide 31: 2021 Net Profit
2021 Net Profit in million Euro 3,357 3,274 -83 2,383 -891 EBIT 2021 Interest Income/Expense Profit before Income Taxes Incomes Taxes Net Profit 2021 Due to rounding, individual figures may not add up precisely to the totals shown and percentages presented may not accurately reflect the absolute val
Slide 32: Trucks North America: Highlights 2021
Trucks North America: Highlights 2021 • Significant group sales increase vs FY 2020 despite supply constraints • Constraint cost and warranty impacting Q4 • Aftermarket performance remains strong with record level daily parts sales • Used trucks business leveraged strategic pricing and maintained hi
Slide 33: Trucks North America Q4 FY
Trucks North America in million Euro Q4/2021 vs. Q4/2020 379 0 379 Q4 -36 -13 + Increase in volumes + Favorable aftermarket and used truck performance 8 41 248 235 − Supply chain constraints impacted operational -87 -13 effectiveness in Q4 -29 − Recall costs -16 − Fixed costs normalization after 202
Slide 34: Mercedes-Benz: Highlights 2021
Mercedes-Benz: Highlights 2021 • Significant group sales increase despite supply constraints • Aftersales business’ growth and efficiency driving favorable development • Used truck business back on track with a restrictive buyback policy and healthy stock level • Major step towards CO2-neutral road
Slide 35: Mercedes-Benz Q4 FY
Mercedes-Benz in million Euro 29 Q4/2021 vs. Q4/2020 Q4 121 + Better aftersales performance in main European markets and in Brazil 85 323 -97 + Price increases partially compensated raw -15 material cost increase and FX devaluation 238 -65 235 + Used truck market recovery due to constrained -18 new
Slide 36: Trucks Asia: Highlights 2021
Trucks Asia: Highlights 2021 • Significant sales increase due to market recovery especially in international markets despite supply constraints • Cost headwinds from raw material and constraint costs addressed by overall net pricing • Timely and disciplined fixed cost steering keeping level of 2020
Slide 37: Trucks Asia Q4 FY
Trucks Asia in million Euro 65 111 Q4/2021 vs. Q4/2020 Q4 87 -10 102 + Improvement from volume/mix mainly in Indonesia as well as overseas -3 91 + Strong pricing in international markets, Indonesia, MENA and India -23 -12 − Headwinds from raw material and constraint costs 6 -5 -10 -89 EBIT Q4/20 Adj
Slide 38: Daimler Buses: Highlights 2021
Daimler Buses: Highlights 2021 • Heterogeneous business development: stable city markets, coach segment in Europe still weak due to COVID-19 pandemic and market recovery from low level in Latin America • Launch of Mercedes-Benz Tourrider to reconquer North American coach market • More than 400 fully
Slide 39: Daimler Buses Q4 FY
Daimler Buses in million Euro 42 0 42 Q4/2021 vs. Q4/2020 Q4 28 9 2 + Aftersales performance + Stringent fix cost management -4 1 − Volume & pricing in Europe − Material cost -60 -41 -24 -53 -78 EBIT Q4/20 Adjustments EBIT Q4/20 Volume/ Foreign Industrial Selling General Research & Others EBIT Q4/21
Slide 40: Financial Services: Highlights 2021
Financial Services: Highlights 2021 • Successful go-live of 7 phase 1 markets in December 2021 • Stable new business volume of € 5.8 bn. • Portfolio increase mainly due to positive FX effects from USA and Canada • Significant improvement in interest margin as well as Cost of Credit Risk decrease in
Slide 41: Financial Services Q4 FY
Financial Services in million Euro 16 Q4/2021 vs. Q4/2020 Q4 12 -8 72 + Higher interest margin mainly in North 10 America -10 10 51 0 52 + Less non-recurring expenses for 41 restructuring measures -20 + Lower Cost of Credit Risk in USA − Normalization of cost situation − Non-recurring fee for the re
Slide 42: Capital structure
Capital structure in million Euro Dec 31, 2020 Sep 30, 2021 Dec 31, 2021 Group liquidity Cash and cash equivalents 1,663 1,475 7,244 Marketable debt securities and similar investments 5,841 4,368 138 Group Gross Liquidity 7,504 5,842 7,383 Total Financing Liabilities -20,419 -18,788 -16,612 Group Ne
Slide 43: Definition of guidance sensitivities
Definition of guidance sensitivities Guidance KPI Sensitivities Definition significant decrease above -15.0% slight decrease -15.0% to -5.0% EBIT on prior-year level -5.0% to 5.0% slight increase +5.0% to +15.0% significant increase above +15.0% significant decrease above -15.0% slight decrease -15.
Slide 44: Disclaimer
Disclaimer 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 expressions are used to iden