Mercedes-benz Group Ag · XETR:MBG

Mercedes-benz — Daimler — Q1 2019 Earnings Presentation

53 slides from Mercedes-benz's earnings presentation, Apr 26, 2019

  1. Slide 1: Q1 2019 Results

    Q1 2019 Results Bodo Uebber Member of the Board of Management Finance & Controlling and Daimler Financial Services April 26, 2019

  2. Slide 2: Contents

    Contents Results for Q1 2019 Outlook for 2019 Development at the divisions Daimler AG Q1 2019 Results / April 26, 2019 / Page 2

  3. Slide 3: Highlights of Q1 2019

    Highlights of Q1 2019 Unit sales Revenue in thousands of units in billions of euros World premiere of the new CLA Coupe and CLA Shooting Brake 807 774 39.8 39.7 -4% -0% Presentation of the upgraded GLC and GLC Coupe World premiere of the Vision URBANETIC and the Concept EQV as Q1 2018 Q1 2019 Q1 201

  4. Slide 4: High level of net liquidity

    High level of net liquidity in billions of euros Free cash flow industrial business 16.3 -3.2 Q1 2019: minus €2.0 billion 13.1 +0.4 -2.4 -0.0 +0.2 11.3 Net industrial Effects from Net industrial Earnings and Working capital M&A effects Other Net industrial liquidity initial application liquidity oth

  5. Slide 5: Net liquidity impacted by initial application of IFRS 16 and higher working capital

    Net liquidity impacted by initial application of IFRS 16 and higher working capital Impact of €3.2 billion due to initial application of IFRS 16 for lessee accounting: Recognition of right-of-use assets and lease liabilities leads to a one-time increase of financing liabilities stated in the balance

  6. Slide 6: Key balance sheet and financial figures

    Key balance sheet and financial figures in billions of euros Daimler Group Dec. 31, 2018 March 31, 2019 Equity ratio 22.2% 21.6% Gross liquidity 25.4 26.7 Funded status of pension obligations -6.2 -6.9 Funding ratio 80% 79%* Industrial business Equity ratio 42.8% 39.2% Net liquidity 16.3 11.3 Free c

  7. Slide 7: Financial flexibility over a 12-month period

    Financial flexibility over a 12-month period in billions of euros 58.8 53.4 Other, incl. The financial flexibility provides support to mitigate risk and volatility finance lease through a balanced mix of funding instruments and clear principles ABS Commercial potential paper Daimler follows a financ

  8. Slide 8: Unit sales by division

    Unit sales by division in thousands of units Q1 2018 Q1 2019 % change Daimler Group 806.9 773.8 -4 of which Mercedes-Benz Cars 594.3 555.3 -7 Daimler Trucks 113.8 115.9 +2 Mercedes-Benz Vans 93.0 97.0 +4 Daimler Buses 5.7 5.5 -4 Daimler AG Q1 2019 Results / April 26, 2019 / Page 8

  9. Slide 9: Revenue by division

    Revenue by division in billions of euros Q1 2018 Q1 2019 % change Daimler Group 39.8 39.7 -0 of which Mercedes-Benz Cars 23.0 21.2 -8 Daimler Trucks 8.6 9.5 +11 Mercedes-Benz Vans 3.1 3.4 +9 Daimler Buses 0.9 0.8 -8 Daimler Financial Services 6.3 6.9 +10 Daimler AG Q1 2019 Results / April 26, 2019 /

  10. Slide 10: Revenue by region

    Revenue by region in billions of euros Q1 2018 Q1 2019 % change Daimler Group 39.8 39.7 -0 of which Europe 16.4 16.6 +1 of which Germany 6.0 6.4 +7 NAFTA 10.6 11.6 +9 of which United States 9.1 10.1 +12 Asia 10.3 9.0 -13 of which China* 5.2 4.4 -15 Other markets 2.4 2.5 +4 * excluding revenue of not

  11. Slide 11: EBIT by division

    EBIT by division EBIT in millions of euros; RoS/RoE in % Q1 2018 Q1 2019 EBIT RoS/RoE* EBIT RoS/RoE* Daimler Group 3,335 8.3 2,802 4.9 of which Mercedes-Benz Cars 2,060 9.0 1,298 6.1 Daimler Trucks 647 7.5 582 6.1 Mercedes-Benz Vans 172 5.6 -98 -2.9 Daimler Buses 37 4.4 -21 -2.7 Daimler Financial Se

  12. Slide 12: Group EBIT in Q1 2019

    Group EBIT in Q1 2019 in millions of euros 3,335 -637 -77 +718 2,802 -441 • Cars -792 • Cars -143 • Trucks • Vans +151 +31 • Trucks +77 -57 -39 • Vans -24 • Buses -27 • Cars +173 • Buses +13 • Trucks -293 • DFS: Merger of • Vans -277 mobility services • Buses -44 of Daimler and BMW +718 Actual Volum

  13. Slide 13: Mercedes-Benz Cars: product highlights

    Mercedes-Benz Cars: product highlights World premiere of the new CLA Coupe and CLA Shooting Brake Daimler AG Q1 2019 Results / April 26, 2019 / Page 13

  14. Slide 14: Mercedes-Benz Cars: product highlights

    Mercedes-Benz Cars: product highlights Market launch of the new B-Class Daimler AG Q1 2019 Results / April 26, 2019 / Page 14

  15. Slide 15: Mercedes-Benz Cars: product highlights

    Mercedes-Benz Cars: product highlights Presentation of the next generation of the GLC SUV and GLC Coupe Daimler AG Q1 2019 Results / April 26, 2019 / Page 15

  16. Slide 16: Mercedes-Benz Cars: product highlights

    Mercedes-Benz Cars: product highlights Shortly before its market launch, the fully-electric EQC* is undergoing final tests * Combined electricity consumption: 20.8 to 19.7 kWh/100 km; combined CO2 emissions: 0 g/km. Electricity consumption and range were determined on the basis of Regulation 692/200

  17. Slide 17: Daimler Trucks: product highlights

    Daimler Trucks: product highlights Daimler Trucks and Torc Robotics join forces to bring highly automated trucks on roads Daimler AG Q1 2019 Results / April 26, 2019 / Page 17

  18. Slide 18: Daimler Trucks: product highlights

    Daimler Trucks: product highlights Delivery of the first FUSO eCanter to Penske Truck Leasing for urban delivery Daimler AG Q1 2019 Results / April 26, 2019 / Page 18

  19. Slide 19: Mercedes-Benz Vans: product highlights

    Mercedes-Benz Vans: product highlights Presentation of the upgraded V-Class at the Geneva International Motor Show Daimler AG Q1 2019 Results / April 26, 2019 / Page 19

  20. Slide 20: Mercedes-Benz Vans: product highlights

    Mercedes-Benz Vans: product highlights World premiere of the Concept EQV, the first purely battery-electric people mover in the premium segment Daimler AG Q1 2019 Results / April 26, 2019 / Page 20

  21. Slide 21: Mercedes-Benz Vans: product highlights

    Mercedes-Benz Vans: product highlights Presentation of the Vision URBANETIC at the CES in Las Vegas Daimler AG Q1 2019 Results / April 26, 2019 / Page 21

  22. Slide 22: Daimler Buses: product highlights

    Daimler Buses: product highlights Presentation of the Setra TopClass S 531 DT double-decker and the Mercedes-Benz Safety Coach Tourismo at the Bus2Bus show in Berlin Daimler AG Q1 2019 Results / April 26, 2019 / Page 22

  23. Slide 23: Daimler Financial Services: creating one of the leading providers of urban mobility

    Daimler Financial Services: creating one of the leading providers of urban mobility 31 million Mobility joint ventures with BMW Daimler mobility service customers including ride hailing, car sharing, parking, at the end of 2018 on-demand multimodal mobility and charging Daimler AG Q1 2019 Results /

  24. Slide 24: YOUR NOW Joint Ventures

    YOUR NOW Joint Ventures The Mobility Powerhouse Q1 2019 Interactions in millions 124.2 9.2 53.2 7.7 54.1* 0.06 Customers** in millions >66 >4 24.4 6.7 30.9* 0.02 Cities** >1,200 30 >110 20 >1,200* n/a GMV RR*** in bn € 3.2* * For U.S. entity of PARK, March 2019 figure estimated ** Partially, data su

  25. Slide 25: Daimler Mobility Services: developments in Q1 2019

    Daimler Mobility Services: developments in Q1 2019 NOW Joint Ventures Mpay integration platform has just been Cooperation Autonomous Daimler Payment launched for the remaining 13 of total 32 Management Services Solutions markets worldwide of the Mercedes me connect Store. An Urban Mobility Team has

  26. Slide 26: Contents

    Contents Results for Q1 2019 Outlook for 2019 Development at the divisions Daimler AG Q1 2019 Results / April 26, 2019 / Page 26

  27. Slide 27: Mercedes-Benz Cars and Vans: continued product offensive

    Mercedes-Benz Cars and Vans: continued product offensive 2019 B-Class CLA 4-door Coupe CLA Shooting Brake smart (upgraded) GLE GLC & GLC Coupe EQC GLS GLB (upgraded) eVito V-Class eSprinter (upgraded) Daimler AG Q1 2019 Results / April 26, 2019 / Page 27

  28. Slide 28: Assumptions for automotive markets in 2019

    Assumptions for automotive markets in 2019 Global around the prior-year level Europe around the prior-year level Car markets USA slight decrease China slight decrease NAFTA region around the prior-year level Medium- and EU30 around the prior-year level heavy-duty truck Japan* around the prior-year l

  29. Slide 29: 2019 sales outlook

    2019 sales outlook Slightly higher unit sales Further Successgrowth based on particularly attractive in and China innovative model portfolio Mercedes-Benz Cars Strong momentum from athe dozen widenew range andof upgraded attractivevehicles and innovative vehicles Significantly Slightly higher higher

  30. Slide 30: 2019 outlook for Group EBIT and divisional RoS/RoE

    2019 outlook for Group EBIT and divisional RoS/RoE We expect Group EBIT for FY 2019 to be slightly above the prior-year level Return on sales in the range of 6 to 8% Mercedes-Benz Cars Return on sales in the range of 7 to 9% Daimler Trucks Return on sales in the range of 0 to 2% Mercedes-Benz Vans R

  31. Slide 31: Contents

    Contents Results for Q1 2019 Outlook for 2019 Development at the divisions Daimler AG Q1 2019 Results / April 26, 2019 / Page 31

  32. Slide 32: Mercedes-Benz Cars

    Mercedes-Benz Cars Unit sales Revenue EBIT in thousands of units in billions of euros in millions of euros 594 23.0 2,060 555 21.2 1,298 -7% -8% -37% Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Daimler AG Q1 2019 Results / April 26, 2019 / Page 32

  33. Slide 33: Mercedes-Benz Cars: EBIT

    Mercedes-Benz Cars: EBIT in millions of euros - 762 9.0%* 2,060 Lower unit sales and less favorable model mix Net pricing 6.1%* Foreign exchange rates 1,298 Higher expenses for new technologies and future products EBIT EBIT Q1 2018 Q1 2019 * Return on sales Daimler AG Q1 2019 Results / April 26, 201

  34. Slide 34: Mercedes-Benz Cars: sales decrease due to life cycle effects and model changes

    Mercedes-Benz Cars: sales decrease due to life cycle effects and model changes in thousand of units 594 30 555 5 30 smart 6 Sports Cars 212 179 SUVs 23 17 S-Class 105 104 E-Class 120 111 C-Class 98 109 A-/B-Class Q1 2018 Q1 2019 Daimler AG Q1 2019 Results / April 26, 2019 / Page 34

  35. Slide 35: Mercedes-Benz Cars: globally balanced sales structure

    Mercedes-Benz Cars: globally balanced sales structure in thousands of units 594 555 100 83 Rest of world 166 157 Europe excl. Germany 79 78 Germany 70 64 United States 179 173 China Q1 2018 Q1 2019 Daimler AG Q1 2019 Results / April 26, 2019 / Page 35

  36. Slide 36: Mercedes-Benz Cars in China: continued strong sales

    Mercedes-Benz Cars in China: continued strong sales with increasing share of locally produced vehicles in thousands of units imported locally produced 678 619 193 488 196 400 171 293 150 485 423 147 173 317 28 250 146 145 2014 2015 2016 2017 2018 2019 YTD 03 Daimler AG Q1 2019 Results / April 26, 20

  37. Slide 37: Daimler Trucks

    Daimler Trucks Unit sales Revenue EBIT in thousands of units in billions of euros in millions of euros 114 116 9.5 647 8.6 582 +2% +11% -10% Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Daimler AG Q1 2019 Results / April 26, 2019 / Page 37

  38. Slide 38: Daimler Trucks: EBIT

    Daimler Trucks: EBIT in millions of euros - 65 7.5%* Higher unit sales especially in the NAFTA region 6.1%* 647 Foreign exchange rates 582 Higher expenses for new technologies and future products Higher costs, mainly related to raw material and supply chain constraints Valuation of provisions EBIT E

  39. Slide 39: Daimler Trucks: sales increase by 2% mainly driven by NAFTA region

    Daimler Trucks: sales increase by 2% mainly driven by NAFTA region in thousands of units 114 116 9 6 Rest of world 34 Asia 38 9 Latin America 9 48 NAFTA region 41 17 19 EU30* Q1 2018 Q1 2019 * European Union, Switzerland and Norway Daimler AG Q1 2019 Results / April 26, 2019 / Page 39

  40. Slide 40: Daimler Trucks: significant decrease in incoming orders

    Daimler Trucks: significant decrease in incoming orders mainly driven by NAFTA region in thousands of units 184 12 51 8 101 6 Rest of world 39 Asia 89 9 Latin America 27 NAFTA region 24 20 EU30* Q1 2018 Q1 2019 * European Union, Switzerland and Norway Daimler AG Q1 2019 Results / April 26, 2019 / Pa

  41. Slide 41: Mercedes-Benz Vans

    Mercedes-Benz Vans Unit sales Revenue EBIT in thousands of units in billions of euros in millions of euros 97.0 3.4 172 93.0 3.1 +4% +9% -98 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Daimler AG Q1 2019 Results / April 26, 2019 / Page 41

  42. Slide 42: Mercedes-Benz Vans: EBIT

    Mercedes-Benz Vans: EBIT in millions of euros - 270 Higher unit sales 5.6%* Expenses related to the adjustment of production capacities in Argentina and Russia 172 Higher expenses for new technologies and future products Warranty and goodwill costs Foreign exchange rates Governmental proceedings and

  43. Slide 43: Mercedes-Benz Vans: sales increase by 4% mainly due to higher demand for the Sprinter

    Mercedes-Benz Vans: sales increase by 4% mainly due to higher demand for the Sprinter in thousands of units 97.0 93.0 41.3 49.4 Sprinter 27.0 24.8 Vito 15.7 13.6 V-Class 3.2 3.7 X-Class 5.9 5.5 Citan Q1 2018 Q1 2019 Daimler AG Q1 2019 Results / April 26, 2019 / Page 43

  44. Slide 44: Daimler Buses

    Daimler Buses Unit sales Revenue EBIT in thousands of units in billions of euros in millions of euros 37 5.7 5.5 0.9 0.8 -4% -8% -21 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Daimler AG Q1 2019 Results / April 26, 2019 / Page 44

  45. Slide 45: Daimler Buses: EBIT

    Daimler Buses: EBIT in millions of euros - 58 4.4%* 37 Delivery delays caused by a changed internal certification process for coaches and intercity buses -21 -2.7%* EBIT EBIT Q1 2018 Q1 2019 * Return on sales Daimler AG Q1 2019 Results / April 26, 2019 / Page 45

  46. Slide 46: Daimler Buses: sales decrease by 4% despite higher demand in Brazil and India

    Daimler Buses: sales decrease by 4% despite higher demand in Brazil and India in thousands of units 5.7 5.5 0.7 1.1 Rest of world 1.2 0.9 Latin America (excl. Brazil and Mexico) 1.9 2.2 Brazil 0.5 0.4 Mexico 1.4 0.9 EU30* Q1 2018 Q1 2019 * European Union, Switzerland and Norway Daimler AG Q1 2019 Re

  47. Slide 47: Daimler Financial Services

    Daimler Financial Services New business Contract volume EBIT in billions of euros in billions of euros in millions of euros 17.9 17.3 154.1 157.4 1,209 -3% +2% 548 +121% Q1 2018 Q1 2019 12/31/2018 3/31/2019 Q1 2018 Q1 2019 Daimler AG Q1 2019 Results / April 26, 2019 / Page 47

  48. Slide 48: Daimler Financial Services: EBIT

    Daimler Financial Services: EBIT in millions of euros + 661 35.7%* Merger of mobility services of Daimler and BMW 1,209 Higher contract volume 17.9%* Higher interest-rate level 548 Cost of risk in some markets EBIT EBIT Q1 2018 Q1 2019 * Return on equity Daimler AG Q1 2019 Results / April 26, 2019 /

  49. Slide 49: Daimler Financial Services: slight increase in contract volume

    Daimler Financial Services: slight increase in contract volume in billions of euros 154.1 157.4 33.7 35.0 Africa & Asia-Pacific 56.1 57.1 Americas 38.0 38.8 Europe (excl. Germany) 26.2 26.4 Germany 12/31/2018 3/31/2019 Daimler AG Q1 2019 Results / April 26, 2019 / Page 49

  50. Slide 50: Daimler Financial Services: net credit losses at low level

    Daimler Financial Services: net credit losses* at low level due to disciplined risk approach 0.89% 0.83% 0.69% 0.68% 0.61% 0.50% 0.51% 0.36% 0.43% 0.34% 0.37% 0.31% 0.31% 0.24% 0.26% 0.21% 0.17% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD * as a percentag

  51. Slide 51: Q1 2019 Results Appendix

    DAIMLER Q1 2019 Results Appendix

  52. Slide 52: Initial application of IFRS 16

    Initial application of IFRS 16 (former) IAS 17 IFRS 16 FINANCE LEASE OPERATING LEASE Lease  Recognition of leased asset and  No recognition of leased asset  Recognition of a right-of-use liability or liability (“RoU”) asset and a lease liability Changes  Depreciation of leased asset  Recognitio

  53. Slide 53: 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

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