Daimler Truck Holding Ag · XETR:DTG
Daimler Truck — Societe Generale Investor Roundtable, London 2022
16 slides from Daimler Truck's conference presentation, Oct 13, 2022
Slide 1: Daimler Truck Financial Services – Societe Generale Investor Roundtable
DAIMLER TRUCK FINANCIAL SERVICES SOCIETE GENERALE – INVESTOR ROUNDTABLE LONDON, 13TH OCTOBER 2022 Stephan Unger
Slide 2: 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
Slide 3: Driving Enduring Customer Relationships
DRIVING ENDURING CUSTOMER RELATIONSHIPS DAIMLER TRUCK FINANCIAL SERVICES IS POWERING ▸ Increased sales of trucks and buses TRUCK AND ▸ Active lifecycle management of the vehicles DEALERS BUS BRANDS ▸ More services around trucks and buses ▸ Contribution to profit and cash flow of Daimler Truck DTFS C
Slide 4: Recap: Top Priorities 2022
RECAP: TOP PRIORITIES 2022 PEOPLE, CULTURE & COMMUNICATION GETTING THE BUSINESS ROLLING PHASE 2 MARKETS AND STANDARD IT SYSTEM NEW MARKETS SERVICE STRATEGY Daimler Truck Daimler Truck Financial Services | Stephan Unger | Societe Generale Investor Roundtable | October 13th, 2022 4
Slide 5: DTFS Foundation According to Plan
DTFS FOUNDATION ACCORDING TO PLAN Every 5th Daimler Truck / Bus financed or leased Phase 1 Phase 2 Foundation Contract Volume Contracts ‘21 ‘22 ‘ 23 [in EUR bn] [in k-units] Dec Apr Aug Oct Nov Feb 21 390 +10% +14% in 2022 in 2022 Penetration Rate Actuals [in %] 27 24 18 ∅20 North America Europe & A
Slide 6: Inside Our Portfolio
INSIDE OUR PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO BY REGION BY PRODUCT BY ASSET Asia & Overseas Lease Non EU & South Wholesale 10% DAI CV 14% 20% America 22% 4% North Finance 74% Daimler 90% America 66% 1) illustrates planned 2022 portfolio after international rollout as of June 2022 Daimler Truck
Slide 7: Inside Our Portfolio: Our Risk Management Pays Off
INSIDE OUR PORTFOLIO Our Risk Management pays-off HIGH QUALITY ACQUISITIONS … … SUPPORTED BY CLEAR RISK GOVERNANCE QUALITY OF ACQUISITIONS NET CREDIT LOSSES % Policies & Expected losses % Guidelines EXCELLENT AND 0.82% Risk VERY GOOD Business Strategy Provisioning Tier 4 QUALITY LOANS & Planning Tie
Slide 8: Diversified Sources of Funding
DIVERSIFIED SOURCES OF FUNDING Conservative capital structure based on solid “Investment Grade” credit rating and balanced funding mix in place STRONG EQUITY RATIO … … AND BALANCED FUNDING MIX WITH CLEAR FUNDING STRATEGY LEVERAGE (Debt/Equity) ~10 ~10 Bank Loans CAPITAL Strengthen global footprint a
Slide 9: DTFS on Track to Achieve Sustainable Profit Contribution for the Group
DTFS ON TRACK TO ACHIEVE SUSTAINABLE PROFIT CONTRIBUTION FOR THE GROUP ACTUALS 2021 5.8 17 41 193 12 New Business (in EUR bn) Portfolio (in EUR bn) Cost Income Ratio (in %) EBIT adj. (in EUR mill) Return on Equity adj. (in%) YTD JUNE 2022 3.9 New Business (in EUR bn) 20.9 Portfolio (in EUR bn) 49 Co
Slide 10: Unprecedent Change – Profound Opportunities
UNPRECEDENT CHANGE – PROFOUND OPPORTUNITIES ZERO EMMISSION CONNECTIVITY EVOLVING SOLUTIONS Daimler Truck Daimler Truck Financial Services | Stephan Unger | Societe Generale Investor Roundtable | October 13th, 2022 10
Slide 11: Differentiation
OUR STRATEGIC POSITION: ‘Cost-leadership’ compared to other captives and ‘Service-differentiation’ compared to banks DTFS faces a bi-polar competitive situation... High Differentiation Compete: Captives Truck customers Capital Market funding Market - Captives - talents - Banks - Banks low High Relat
Slide 12: Four Main Pillars of Our Service Strategy
FOUR MAIN PILLARS OF OUR SERVICE STRATEGY GROW SERVICES & ACCELERATE THE CORE SOLUTIONS EFFICIENT SETUP - SCALEABLE IT PEOPLE Daimler Truck Daimler Truck Financial Services | Stephan Unger | Societe Generale Investor Roundtable | October 13th, 2022 12
Slide 13: Building on Successful DT Markets Provide Great Opportunities to Accelerate the Core
BUILDING ON SUCCESSFUL DT MARKETS PROVIDE GREAT OPPORTUNITIES TO ACCELERATE THE CORE More markets, higher penetration KEY INITIATIVES Trucks & Buses Sales/FS contracts Current business Potential Integrate sales with Industrial Business Accelerate the Core Increase penetration in core business
Slide 14: Offering More Services Along the Lifecycle
OFFERING MORE SERVICES ALONG THE LIFECYCLE Increase value add and share of wallet 1st lifecycle 2nd lifecycle KEY INITIATIVES New Truck/bus Used Truck/bus financing Financing & leasing & leasing From bundled services to solutions Introduction of usage based products Data Management Insurance
Slide 15: Clear and Attractive Financial Ambitions
CLEAR AND ATTRACTIVE FINANCIAL AMBITIONS Profitability ambition of >14% RoE adjusted CLEAR FINANCIAL AMBITIONS AND ATTRACTIVE RETURNS close gap to EQUITY Self-funded growth from 2025 onward best-in-class competitors PENETRATION RATE - in % - >30 >30% net payout-ratio targeted to industrial DIVIDENDS
Slide 16: Financial Services
FINANCIAL SERVICES DRIVING ENDURING CUSTOMER RELATIONSHIPS
Daimler Truck Holding — Societe Generale Investor Roundtable, London 2022 on 6ix