Slide 1: Q2 2018 Corporate Presentation
Q2 2018 Corporate Presentation
Slide 2: Contents
Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 2
Slide 3: Highlights of Q2 2018
Highlights of Q2 2018 Unit sales Revenue – in thousands of units – – in billions of euros – Market launch of the new Mercedes-Benz A-Class 823 833 41.2* 40.8 World premiere of the new A-Class L Sedan and C-Class L Sedan +1% -1% for the Chinese market Market launch of the new Mercedes-Benz Sprinter Q
Slide 4: High level of net liquidity – 50% of dividend payment recovered in H1
High level of net liquidity – 50% of dividend payment recovered in H1 - in billions of euros - Free cash flow industrial business H1 2018: €1.8 billion +2.3 -0.5 +0.0 -3.9 16.6 -0.0 14.5 Net industrial Earnings and Working capital M&A effects Dividend payment Other Net industrial liquidity other cas
Slide 5: Further investment growth as a basis for profitable growth and development of future mobility
Further investment growth as a basis for profitable growth and development of future mobility - in billions of euros - 16.3 15.5 13.5 Investment in 11.6 7.4 property, plant 6.7 and equipment 10.5 10.5 5.9 Research and 8.7 8.9 development 7.6 expenditure Actual Actual Actual Actual Actual Plan 2013 2
Slide 6: Contents
Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 6
Slide 7: Mercedes-Benz Cars
Mercedes-Benz Cars Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 595 591 23.6* 22.6 2,365* 1,901 -1% -4% -20% Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler AG
Slide 8: Mercedes-Benz Cars: EBIT
Mercedes-Benz Cars: EBIT - in millions of euros - - 464 10.0%** Warranty costs 2,365* 8.4%** Temporarily weaker net pricing Foreign exchange rates 1,901 Higher expenses for new technologies and future products Initiated service activities for diesel vehicles Production shortfall due to a fire at a s
Slide 9: Mercedes-Benz Cars: slight sales decrease due to model change of A- and C-Class
Mercedes-Benz Cars: slight sales decrease due to model change of A- and C-Class - in thousands of units - 595 591 37 36 smart 6 5 Sports Cars 201 208 SUVs 18 19 S-Class 100 107 E-Class 122 118 C-Class 112 97 A-/B-Class Q2 2017 Q2 2018 Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 9
Slide 10: Daimler Trucks
Daimler Trucks Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 124 9.0* 9.2 548* 546 116 +6% +2% -0% Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler AG Daimler Cor
Slide 11: Daimler Trucks: sales increase by 6% mainly driven by Asia and NAFTA region
Daimler Trucks: sales increase by 6% mainly driven by Asia and NAFTA region - in thousands of units - 124 116 11 Rest of world 11 40 Asia 36 7 8 Latin America 42 44 NAFTA region 20 21 EU30* Q2 2017 Q2 2018 * European Union, Switzerland and Norway Daimler AG Daimler Corporate Presentation / Q2 2018 /
Slide 12: Daimler Trucks: significant increase in incoming orders mainly driven by NAFTA region
Daimler Trucks: significant increase in incoming orders mainly driven by NAFTA region - in thousands of units - 144 11 Rest of world 114 41 Asia 12 8 Latin America 39 7 63 NAFTA region 36 20 21 EU30* Q2 2017 Q2 2018 * European Union, Switzerland and Norway Daimler AG Daimler Corporate Presentation /
Slide 13: Daimler Trucks: EBIT
Daimler Trucks: EBIT - in millions of euros - -2 6.1%** Higher unit sales especially in the NAFTA region 5.9%** Efficiency enhancements 548* 546 Customer service measures at Mercedes-Benz Trucks in Q2 2017 Higher expenses for raw material Foreign exchange rates Higher costs, mainly related to supply
Slide 14: Mercedes-Benz Vans
Mercedes-Benz Vans Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 110.9 3.5 103.4 3.3* 349* +7% +6% -56% 152 Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler AG Da
Slide 15: Mercedes-Benz Vans: EBIT
Mercedes-Benz Vans: EBIT - in millions of euros - - 197 10.5%** Higher unit sales 349* Higher expenses for new technologies and new products 4.3%** Impacts from the Sprinter model change Initiated service activities for diesel vehicles and 152 delivery delays EBIT EBIT Q2 2017 Q2 2018 * adjusted bas
Slide 16: Daimler Buses
Daimler Buses Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 7.5 7.5 1.2* 78* 1.1 66 +0% -12% -15% Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler AG Daimler Corp
Slide 17: Daimler Buses: EBIT
Daimler Buses: EBIT - in millions of euros - - 12 6.4%** Efficiency enhancements 6.1%** 78* Foreign exchange rates 66 Product mix Inflation-related cost increases EBIT EBIT Q2 2017 Q2 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** Return on sales Daimler AG Daim
Slide 18: 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 18.3 139.9 146.7 522 +2% +5% -87% 66 Q2 2017 Q2 2018 12/31/2017 6/30/2018 Q2 2017 Q2 2018 Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 18
Slide 19: Daimler Financial Services: EBIT
Daimler Financial Services: EBIT - in millions of euros - - 456 18.8%* 522 Higher contract volume Settlement of the Toll Collect arbitration proceedings Higher interest-rate level Foreign exchange rates 2.1%* 66 EBIT EBIT Q2 2017 Q2 2018 * Return on equity Daimler AG Daimler Corporate Presentation /
Slide 20: Contents
Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 20
Slide 21: CORE, CASE, CULTURE, COMPANY: We have set the course for a successful future
CORE, CASE, CULTURE, COMPANY: We have set the course for a successful future CORE CASE Strengthen our global core business Lead in tomorrow's technologies CUSTOMER The focus of all our products and services CULTURE COMPANY Innovation, integrity, sustainability, A modern corporate structure learning
Slide 22: Clear aspiration for all divisions
Clear aspiration for all divisions Mercedes-Benz Mercedes-Benz Daimler Daimler Daimler Financial Cars Vans Trucks Buses Services „Most successful „No 1 provider of „No 1 in the global „No 1 in the global „Best financial and premium holistic transport Truck business“ Bus business“ mobility services m
Slide 23: Profit targets
Profit targets Profit targets Return on sales / Return on Equity1) in % 8-10 9 8 6 17 Mercedes-Benz Mercedes-Benz Daimler Daimler Daimler Financial Cars Vans Trucks Buses Services Return on sales target for the automotive business: 9 percent 1) Daimler Financial Services Daimler AG Daimler Corporate
Slide 24: Core CASE
Our transformation is based on a position of strength. Core and CASE are two pillars of one strategy. Core CASE The basis… … for investments into the future. Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 24
Slide 25: Exciting and promising future ahead of us
Exciting and promising future ahead of us Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 25
Slide 26: Daimler Group Strategy: Mercedes-Benz Cars Core
Daimler Group Strategy Mercedes-Benz Cars Core Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 26
Slide 27: Mercedes-Benz Cars: globally balanced sales structure with strong development especially in China
Mercedes-Benz Cars: globally balanced sales structure with strong development especially in China - in thousands of units - 595 591 97 96 Rest of world 185 168 Europe excl. Germany 85 82 Germany 78 78 United States 150 167 China Q2 2017 Q2 2018 Daimler AG Daimler Corporate Presentation / Q2 2018 / P
Slide 28: Mercedes-Benz Cars in China: continued strong sales growth
Mercedes-Benz Cars in China: continued strong sales growth with higher share of locally produced vehicles - in thousands of units - imported locally produced 619 488 196 400 171 346 293 150 94 239 147 423 123 317 250 252 146 116 2013 2014 2015 2016 2017 2018 YTD 06 Daimler AG Daimler Corporate Prese
Slide 29: Mercedes-Benz Network Development in China
Mercedes-Benz Network Development in China Number of Outlets +13 +37 +27 579 +55 566 529 +106 502 447 +79 341 +55 +41 262 207 166 2010 2011 2012 2013 2014 2015 2016 2017 YTD 2018 Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 29
Slide 30: Made in China for China: four car models and three engine models at BBAC
Made in China for China: we’re producing four car models and three engine models at BBAC Rear wheel drive + M270 E-Class (V/W 213) M264 As announced in July 2017, a GLC (X253) localized BEV model under EQ brand will be produced in BBAC … M274 C-Class (V/W 205) M276 GLA (X156) Daimler AG Daimler Corp
Slide 31: Mercedes-Benz Cars and Vans: continued product offensive
Mercedes-Benz Cars and Vans: continued product offensive AMG 4-door Coupe G-Class (upgraded) GLC F-CELL Mercedes-Maybach S-Class Pullman (upgraded) C-Class Sedan (long wheelbase, upgraded) A-Class S-Class Sedan Coupe (upgraded) C-Class A-Class Sedan (upgraded) CLS Sedan (long wheelbase) S-Class C-Cl
Slide 32: Vehicle architecture and modular strategy
With vehicle architecture and modular strategy, we will be more cost efficient, faster and more flexible Powertrain E/E Chassis Exterior Interior Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 32
Slide 33: High degree of modularity of the entire drive train
High degree of modularity of the entire drive train Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 33
Slide 34: Development of CO2 emissions
Development of CO2 emissions Average CO2-emissions in g/km Mercedes-Benz Cars fleet in Europe 230 CO2-emissions in (g/km) 173 160 158 150 140 134 129 125 123 123 EU Legislation* 95 9.2 l 6.9 l 6.4 l 6.3 l 6.0 l 5.6 l 5.4 l 5.2 l 5.0 l 5.0 l 5.0 l <4.0 l 1995 … 2008 2009 2010 2011 2012 2013 2014 2015
Slide 35: Degree of electrification
Overview CO2 reduction measures CO2 measures in and on the vehicle CO2 measures ICE powertrain Electrification of powertrain 0% Aerodynamics Energy recovery 48V-starting system (e.g. ISG) Efficient high-tech diesel and gasoline engines Degree of electrification Rolling resistance Eco-Mode, Intellige
Slide 36: 48 Volt electrification: Several advantages regarding CO2 and comfort
48 Volt electrification: Several advantages regarding CO2 and comfort Integrated starter-generator Combined performance with NVH C02-reduced hybrid functions Calm starting of automatic start-stop function Comfort CO2 48 Volt Agility Turbocharger Air conditioning Innovative boost concept with AC work
Slide 37: Hybrid offensive as further step to reach CO2 targets
Hybrid offensive as further step to reach CO2 targets Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 37
Slide 38: Our target: remain No.1 premium car brand
Our target: remain No.1 premium car brand achieved already in 2016! Sales target Profitability target In thousand units Return on Sales in % 2,198 2,374 No. 1 8-10% Corridor during transition phase 2016 2017 2020 Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 38
Slide 39: Daimler Group Strategy: Mercedes-Benz Cars CASE
Daimler Group Strategy Mercedes-Benz Cars CASE Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 39
Slide 40: CASE trends leading to fundamental changes in the automotive industry
CASE trends leading to fundamental changes in the automotive industry Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 40
Slide 41: Revolution in the cockpit: Mercedes-Benz User Experience
Revolution in the cockpit: Mercedes-Benz User Experience Touch Controls Touchscreen Hey Mercedes Speech Control Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 41
Slide 42: Connect - Anytime. Anywhere.
Connect - Anytime. Anywhere. 15 > . million active users Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 42
Slide 43: Development steps towards fully automated driving
Development steps towards fully automated driving - Currently offered by MB Level 5 & legally permissible - Level 4 Level 3 Full Level 2 High Automation Level 1 Conditional Automation Partial Automation Driver Automation Assistance Vehicle can perform all Vehicle can perform all dynamic driving task
Slide 44: Sensors for Driver Assistance Package
Sensors for Driver Assistance Package Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 44
Slide 45: HD MAP for highly automated driving and HERE cooperation
HD MAP for highly automated driving and HERE cooperation • The HD Live Map is a mandatory part for the HAD* system for planning and positioning • The HD Map is the only sensor that delivers context information and a long road horizon • Close strategic cooperation with HERE for: - map content, format
Slide 46: Intelligent World Drive: On our road to autonomy
Intelligent World Drive: On our road to autonomy Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 46
Slide 47: In the future - driver controlled and system controlled
In the future - driver controlled and system controlled Driver controlled System controlled Safety technologies and automated systems, Automated systems, which drive the vehicle from which are situational activated by the driver the starting point to the destination Daimler AG Daimler Corporate Pres
Slide 48: Bundling of our forces with Bosch
Bundling of our forces with Bosch Aim: To put automated driving and driverless cars on the road in urban environments by early in the next decade. Bosch System Sensor Algorithms Embed. SW Infrastr. • Hardware (Sensors, • Vehicles Motion Control Testing Actors, ECUs) • Integration of • Software for H
Slide 49: Californian metropolis first pilot testing city for automated driving in 2019
Californian metropolis will become first pilot testing city for automated driving in 2019 Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 49
Slide 50: EQ - Electric Intelligence
EQ - Electric Intelligence. The new brand for electric mobility as part of our brand portfolio. Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 50
Slide 51: We are on our way to emission-free mobility
We are on our way to emission-free mobility High-tech Plug-in hybrids Performance hybrids Electric vehicles with battery or combustion engines fuel cell Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 51
Slide 52: Pushing ahead with our electric vehicle offensive
Pushing ahead with our electric vehicle offensive €10 billion investment into e-mobility fleet Above 130 electrified alternatives by 2022 Thereof more than 10 BEV vehicle types In each series of Mercedes-Benz at least one electrified version BEV volume share between 15% and 25% until 2025
Slide 53: EQC first all electric Mercedes-Benz of the new EQ brand
EQC first all electric Mercedes-Benz of the new product and technology brand to be revealed in September 2018 Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 53
Slide 54: Ambitious definition of our EV market targets
Ambitious definition of our EV market targets Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 54
Slide 55: Flexible integration of e-mobility in global production network
Flexible integration of e-mobility in global production network Europe Bremen (2019 EQC) Rastatt Kamenz Hambach Sindelfingen USA Untertürkheim Tuscaloosa Asia Beijing Bangkok EQ Vehicles Battery Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 55
Slide 56: Flexible architecture to integrate all types of electrified powertrains
Flexible architecture to integrate all types of electrified powertrains On-board-charger On-board-charger Combustion engine Electric Drive Unit HV-battery Charging inlet Transmission and integrated E-motor Electric Drive Unit HV-battery Inverter and DCDC Illustration Daimler AG Daimler Corporate Pre
Slide 57: Charging network together with partners improve customer experience
Charging network together with partners improve customer experience Home Work Public Mercedes-Benz GLC F-CELL: Preproduction model Mercedes-Benz GLE 500 e 4MATIC: comb. fuel consumption: 3.7-3.3 l/100hm; comb. power consumption: 18.0-16.7 kWh/100km; CO2 emissions combined: 84-78 g/km smart EQ fortwo
Slide 58: Daimler Group Strategy: Mercedes-Benz Vans Core & CASE
Daimler Group Strategy Mercedes-Benz Vans Core & CASE Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 58
Slide 59: Mercedes-Benz Vans: sales increase by 7% due to attractive product portfolio
Mercedes-Benz Vans: sales increase by 7% due to market success of attractive product portfolio - in thousands of units - 110.9 103.4 51.7 Sprinter 51.2 27.5 Vito 29.3 18.7 V-Class 15.7 5.2 X-Class 7.1 7.7 Citan Q2 2017 Q2 2018 Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 59
Slide 60: eVito: Electrically powered mid-sized van available to order
eVito: Electrically powered, mid-sized van has been available to order since the end of 2017 Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 60
Slide 61: The future of logistics: van as a data center on wheels
Turning the van into a data center on wheels The future of logistics: • range of up to 270km • fully automated cargo space • integrated drones Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 61
Slide 62: Our target: No 1 provider of holistic transport and mobility solutions
Our target: No 1 provider of holistic transport and mobility solutions Sales target Profitability target In thousand units Return on Sales in % 359 401 >500 9% over the cycle 2016 2017 2020 Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 62
Slide 63: Daimler Group Strategy: Daimler Trucks Core
Daimler Group Strategy Daimler Trucks Core Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 63
Slide 64: Our Strategy @ Daimler Trucks
Our Strategy @ Daimler Trucks We improve total We expand cost of ownership economies of scale and shape future and speed up transportation innovation efficient & electric safe & automated We have a global reach and meet reliable & connected local needs Daimler AG Daimler Corporate Presentation / Q2
Slide 65: Our Mission: Make our customers more successful
Our Mission: Make our customers more successful Best-in-class products Customer experience Services beyond in all regions as differentiator the hardware Service and Extended Warranty Parts Network & Service Products Continuous Process Connectivity & Improvement Uptime Customer-focused End—to-End Sup
Slide 66: Strong brands and strong market positions around the world
Strong brands and strong market positions around the world #1 NAFTA #1 EU 30 Russia #3 Japan China #2 Brazil #4 India Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 66
Slide 67: CHINA: We are well prepared to tap into the biggest market
CHINA: We are well prepared to tap into the biggest market Biggest market Product Launches 2017 of commercial vehicles and promising growth EST-A EST perspective. Strong, committed ETX GTL partnership with Foton Market shifting Our Joint venture towards premium BFDA delivers strong segment and sales
Slide 68: Efficiency: improving our customers' bottom line
Efficiency: improving our customers’ bottom line Europe: Mercedes-Benz Actros NAFTA: Freightliner New Cascadia Japan: FUSO Super Great Fuel reduction up to -15%* Fuel reduction up to -8%* Fuel reduction up to -15%* Next efficiency step by 2018 Next efficiency step by 2019 Complete efficiency makeove
Slide 69: Our global platform roll-out has come far
Our global platform roll-out has come far EU LA China Heavy-duty engines Medium-duty engines Transmissions Chassis Electric/ ECU1 ECU2 Electronic ECU3 Cab architecture Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 69
Slide 70: Global platforms are a great competitive advantage
Global platforms are a great competitive advantage – they achieve several goals at the same time: Speed of Innovation Economies of Scale R&D Efficiency Sideguard HDEP FE1 Assist ABA4 MDEG Pedestrian NAFTA & Jp Global platforms enable Global platforms can secure pass-car- Common base development in a
Slide 71: Captive component strategy to strengthen market leadership in NAFTA
Captive component strategy to strengthen market leadership in NAFTA Penetration rate integrated powertrain in % 95 96 81 75 Year End 2017 As of June 2018 Year End 2017 As of June 2018 Heavy Duty Engines HDEP Automated Manual Transmission DT12 Daimler AG Daimler Corporate Presentation / Q2 2018 / Pag
Slide 72: Daimler Trucks setting the stage for >1,400 mn € improvement
Daimler Trucks is setting the stage for a total of >1,400 mn € improvement fully effective in 2019 EBIT Impact 1 Growth & Customer focus 2 Global optimized network Net improvements >1,400 mn € 3 Cost reduction initiative Net improvements Fully effective in 2019 2017 2018 2019 4 Stream Daimler AG Dai
Slide 73: Sticking to our target: leader in the truck industry
Sticking to our target: leader in the truck industry Sales target Profitability target In thousand units Return on Sales in % 415 471 8% over the cycle 2016 2017 2020 Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 73
Slide 74: Daimler Group Strategy: Daimler Trucks CASE
Daimler Group Strategy Daimler Trucks CASE Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 74
Slide 75: Our investment in future technologies in 2018 and 2019 @ DT
Our invest in future technologies in 2018 and 2019 @ DT Total R&D investment Investment in Connectivity, Automated, Electric (2018 – 2019) (2018-2019) > 2.5 bn € > 500 mn € Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 75
Slide 76: We make a lot of progress in future technologies
We make a lot of progress in future technologies Connected Electric Automated Gain Headline Gain Knowledge Platooning MB Uptime Gain Business Active Safety Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 76
Slide 77: Daimler trucks are online in every region
Daimler trucks are online in every region Mercedes-Benz Uptime Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 77
Slide 78: Connected: Detroit Connect boosts logistics performance
Connected: Detroit Connect boosts logistics performance Analytics Virtual Technician Remote Updates Improves fuel Helps to reduce service- Updates firmware consumption and safety related downtime „over-the-air“ • Detects changes in fuel • Alerts customers to • Installs firmware consumption and offer
Slide 79: We are pioneering automated trucking for many years
We are pioneering automated trucking for many years Mercedes-Benz Freightliner Test license for Automated Platooning trials Future Truck 2025 Inspiration Truck German autobahn snow clearance in entire triad 2014 2015 2016 – 2018 Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 79
Slide 80: We will deliver level 2 soon
We will deliver level 2 soon LEVEL 5 Full automation 4 High LEVEL automation 3 Conditional LEVEL automation 2 LEVEL Partial automation 1 Function-specific LEVEL automation 0 Driver LEVEL Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 80
Slide 81: We are pioneering electric trucks for many years
We are pioneering electric trucks for many years 2014-2017: 09/2016: 09/2017: 11/2017: 06/2018: FUSO eCanter Mercedes-Benz eActros prototype, FUSO eCanter World premiere of Thomas Presentation of Freightliner fleet tests in Europe FUSO eCanter in new design market launch Built Buses Jouley eCascadia
Slide 82: Our battery-powered commercial vehicles for urban areas
Electric, locally emission-free and quiet: Our battery-powered commercial vehicles for urban areas Thomas Built Buses Mercedes-Benz FUSO Freightliner Jouley eActros eCanter eCascadia & eM2 2017: World premiere 2016: World premiere 2014: Innovation fleet 2018: World premiere 2018: Innovation fleet 20
Slide 83: Freightliner eCascadia and eM2: leading the charge
Freightliner eCascadia and eM2: leading the charge Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 83
Slide 84: Daimler Group Strategy: Daimler Buses Core & CASE
Daimler Group Strategy Daimler Buses Core & CASE Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 84
Slide 85: Daimler Buses: higher unit sales in Brazil and India
Daimler Buses: higher unit sales in Brazil and India - in thousands of units - 7.5 7.5 0.9 1.1 Rest of world 1.3 0.9 Latin America (excl. Brazil and Mexico) 2.1 2.5 Brazil 1.0 0.8 Mexico 2.2 2.2 EU30* Q2 2017 Q2 2018 * European Union, Switzerland and Norway Daimler AG Daimler Corporate Presentation
Slide 86: World premiere of fully electrically powered Mercedes-Benz Citaro
World premiere of fully electrically powered Mercedes-Benz Citaro Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 86
Slide 87: The future of public transport
The future of public transport Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 87
Slide 88: Our target: No 1 in the global bus business
Our target: No 1 in the global bus business Sales target Profitability target In thousand units Return on Sales in % 26.2 28.6 ~45 6% over the cycle 2016 2017 2020 Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 88
Slide 89: Daimler Group Strategy: Daimler Financial Services Core
Daimler Group Strategy Daimler Financial Services Core Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 89
Slide 90: We offer a broad variety of financial and mobility services
We offer a broad variety of financial and mobility services vehicles in fleet management banking customers car2go customers insurance policies Ride-Hailing Group customers financed or leased vehicles moovel customers Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 90
Slide 91: We finance nearly every second vehicle sold by Daimler
WE FINANCE NEARLY EVERY SECOND VEHICLE SOLD BY DAIMLER Penetration rates per vehicle segment Global penetration rate DFS in Q2 2018 56% ~50% 40% 42% 23% Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 91
Slide 92: Daimler Financial Services: further increase in contract volume to 146.7 billion euros
Daimler Financial Services: further increase in contract volume to 146.7 billion euros - in billions of euros - 146.7 139.9 32.4 Africa & Asia-Pacific 29.4 50.7 52.2 Americas 35.6 36.7 Europe (excl. Germany) 24.1 25.3 Germany 12/31/2017 6/30/2018 Daimler AG Daimler Corporate Presentation / Q2 2018 /
Slide 93: 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% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD * as a percentage of portfo
Slide 94: Our target: best financial and mobility services provider
Our target: best financial and mobility services provider Portfolio target Profitability target in billions of EUR Return on Equity in % 132.6 139.9 Annual growth ≥ 5.5% > 17% 2016 2017 2020 Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 94
Slide 95: Daimler Group Strategy: Daimler Financial Services CASE
Daimler Group Strategy Daimler Financial Services CASE Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 95
Slide 96: We aim to build a holistic mobility ecosystem
We aim to build a holistic mobility ecosystem 1. Offer broad 2. Create frequent variety of mobility customer solutions interaction OUR AMBITION VEHICLE VEHICLE FINANCING LEASING “DFS’ AMBITION IS TO BECOME AN 7. Create lock-in MOBILITY 3. Gain large- ENTIRELY CUSTOMER-CENTRIC, FULLY effects & SOLUTI
Slide 97: AutoGravity: a showcase example for digital financing
is a showcase example for digital financing Daimler investment rationale behind AutoGravity engagement LEAD THE DIGITIZATION OF THE INDUSTRY BY LAUNCHING DISRUPTIVE APPROACH TOWARDS AUTOMOTIVE FINANCING PROVIDE OUTSTANDING CUSTOMER EXPERIENCES BY OFFERING FIRST-OF-ITS-KIND COMPARISON APP FOR VEHICLE
Slide 98: Our customers' mobility needs will change
Our Customers mobility needs will change TODAY TOMORROW BUYING CONSUMING (car-based) mobility as a product (car-based) mobility as a service Enabler: Finance & Lease Enabler: Finance & Lease Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 98
Slide 99: Daimler Mobility Services
Daimler Mobility Services Total customers in m 23.5* 17.8 8.5 4.2 2.0 1.1 0 10 20 *Q2 2018 Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 99
Slide 100: Expansion of our footprint through comprehensive mobility strategy
The expansion of our footprint is a result of our comprehensive mobility strategy 2008 2012 2013 2014 2015 2016 2017 2018 Investment Acquisition Merger Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 100
Slide 101: Three main pillars of our mobility business
Three main pillars of our mobility business The Ride-Hailing Group contains the The worldwide leading free floating moovel radically simplifies brands mytaxi, Beat, Clever Taxi and carsharing concept. The car2go individual mobility by Chauffeur Privé with 15.3 mn service is used by 3.2 mn customers
Slide 102: Daimler Mobility Services: current portfolio is a strong starting point
Daimler Mobility Services: our current portfolio is a strong starting point to conquer the customer interface DAIMLER MOBILITY SERVICES STRATEGIC BUSINESS PORTFOLIO* TARGETS CAR SHARING RIDE-HAILING MULTI-MODAL car2go mytaxi CleverTaxi moovel Turo Beat Chauffeur shareholding Privé GENERATE NEW REVEN
Slide 103: Combining forces with BMW to enhance the offer for the customer
Combining forces with BMW to enhance the offer for the customer Subject to antitrust approval Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 103
Slide 104: BMW and DAIMLER share a joint target picture
BMW and DAIMLER share a joint target picture CHARGING MAINTENANCE PARKING SELF- FLEET SUPPORT DRIVING & DISTRIBUTION SERVICES ELECTRIC ON-DEMAND FLEETS IN CITIES CONNECTIVITY VEHICLE & AI PROVISION ROUTING Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 104
Slide 105: Our business is strongly future oriented
Our business is strongly future oriented VEHICLE ASSET FLEET SERVICE FUTURE MANUFACTURER PROVIDER OPERATOR PLATFORM MOBILITY CUSTOMER “Somebody “Somebody needs “Somebody needs “Somebody needs to Consuming needs to to pay for and to take care of offer the individual „mobility- develop, own the vehicl
Slide 106: Current mobility services will be entry point for self-driving car services
Our current mobility services will be the entry point for tomorrow’s self-driving car services X% SELF-DRIVING CAR SERVICES SHARE Daimler Mobility Services builds key capabilities for self-driving car services DAIMLER MOBILITY SERVICES FUTURE DAIMLER MOBILITY BUSINESS VOLUME TODAY SERVICES BUSINESS
Slide 107: Self-driving technology will increase demand for shared mobility services
Self-driving technology will increase the demand for shared mobility services Self-driving car services will ... Leading to a reinforcing cycle of mobility services …DELIVER A UNIQUE CUSTOMER EXPERIENCE Prices will Customer demand decrease due to will increase due to …ENHANCE TRAFFIC SAFETY higher f
Slide 108: Daimler Group Strategy: Culture
Daimler Group Strategy Culture Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 108
Slide 109: Our success is rooted in a strong and evolving culture
Our success is rooted in a strong and evolving culture Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 109
Slide 110: Transforming the Mindset
Transforming the Mindset Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 110
Slide 111: Daimler Group Strategy: Company
Daimler Group Strategy Company Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 111
Slide 112: PROJECT FUTURE will create a strong family of companies
PROJECT FUTURE will create a strong family of companies with three legally independent divisions Our guiding principles The structure we envision We are a family united under the umbrella of Daimler AG1) The Daimler family will be preserved and further strengthened We will be less complex and cl
Slide 113: Our new structure will create significant benefits for Daimler
Our new structure will create significant benefits for Daimler Strengthen own business units Gain optionality and speed to accountability/ transparency address changing competitive environment Enhance transparency Increase management focus on of underlying business Strengthen entrepreneurial spirit
Slide 114: PROJECT FUTURE is a building block of a more customer-oriented structure
PROJECT FUTURE is a consecutive building block of an even more customer-oriented company structure Customers Markets Organization Customer Dedication Legal Entity Dedication PROJECT FUTURE New organizational structure to Organizational realignment Legal separation increase customer proximity through
Slide 115: Major milestones of PROJECT FUTURE
Major milestones of PROJECT FUTURE 16.10.2017 26.07.2018 22.05.2019 (AGM) Autumn 2019 Start Company decision Decision of Go-live Board of Approval of shareholders Following share- Management and implementation by Final approval holder approval, Supervisory Board Board of would have to be we
Slide 116: Contents
Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 116
Slide 117: Assumptions for automotive markets in 2018
Assumptions for automotive markets in 2018 Global around +2% Europe slight growth Car markets USA around the prior-year level China slight growth NAFTA region significant growth Medium- and EU30 around the prior-year level heavy-duty truck Japan* slight decrease markets Brazil significant growth fro
Slide 118: 2018 sales outlook
2018 sales outlook Slightly higher Unit sales unitthe around sales prior-year level Further growth Supported particularly by wide in China and innovative vehicles range of attractive Mercedes-Benz Cars Strong Furthermomentum from the wide range of attractive and innovative vehicles growth in China S
Slide 119: 2018 outlook for EBIT
2018 outlook for EBIT We expect Group EBIT for FY 2018 to be slightly below the prior-year level* based on the following expectations for divisional EBIT: Slightly below the prior-year level Mercedes-Benz Cars Significantly above the prior-year level Daimler Trucks Significantly below the prior-year
Slide 120: Contents
Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 120
Slide 121: Daimler follows a conservative Financial Policy
Daimler follows a conservative Financial Policy Clear commitment to a single A rating Balanced approach between shareholder interest and credit providers Dividend policy on a sustainable basis (40% target pay-out ratio) No share buybacks planned, further pension contributions will be evaluated Daiml
Slide 122: Daimler renewed and increased its syndicated credit facility
Daimler renewed and increased its syndicated credit facility Renewal of syndicated €9 billion credit facility (maturing in September 2020) Increase to €11 billion Tenor of 5 years + 1 + 1, i. e. until 2023 + 2 years Syndicate of international banks mostly unchanged together with excellent support by
Slide 123: Improved Funded Ratio
Positive Asset Returns and Contributions led to a significantly improved Funded Ratio Daimler Group’s Funded Ratio Development Funded Ratio Group & Discount Rate Development DAG 2010 – 06/2018 in % 100 10 +21% 86% 84% 80 8 75% 73% 66% 63% 63% 62% 59% 60 6 5.0% 4.7% 40 4 3.4% 3.1% 2.6% 1.9% 1.9% 1.8%
Slide 124: Conservative financial management and strengthened balance sheet
Daimler follows a conservative financial management approach and further strengthened the balance sheet… Gross Group Liquidity (in bn EUR) Net Industrial Liquidity (in bn EUR) Financial Services Industrial Business 24.7 21.7 22.1 3.4 19.7 18.6 3.5 3.7 17.0 18.2 16.6 16.3 2.8 14.5 13.8 2.8 13.0 11.5
Slide 125: Financing Liabilities Structure 2012 – 2018 YTD
Financing Liabilities Structure 2012 – 2018 YTD in billions of EUR Other Acc. Deposits Com. Paper Bank Loans ABS Bonds 137.4 127.4 2.0 1.9 10.1 3.0 117.6 1.0 1.0 11.0 11.5 10.6 1.7 100.6 11.5 1.5 11.6 86.4 7.4 3.0 37.7 1.5 77.7 10.5 34.6 75.6 1.3 1.4 6.0 2.3 29.7 5.1 1.8 6.1 1.1 10.9 12.1 11.3 27.3
Slide 126: Global bond funding diversification will continue
Consequent development to global bond funding diversification will continue Canada EMTN Domestic Bonds Euro Market ABS Korea CP EMTN Program Italian domestic Domestic Bond Prog. EUR CP Program ABS China USA Japan Turkey Domestic Bonds 144a / RegS PP Domestic Bonds ABS CP Domestic Bonds EMTN ABS EMTN
Slide 127: Funding base further diversified to a true global set-up
Funding base further diversified to a true global set-up in billions of EUR 137,4 1% 7% 2% 8% 27% Currency Volume % EUR 32,0 44% USD 27,2 37% GBP 3,7 5% Other 57,3 2% CAD 2,8 4% Com. Paper 0% Currency Volume % CNY 2,6 4% ABS 22% 2% EUR 19,5 66% ZAR 1,5 2% Acc. Deposits USD 7,8 27% KRW 0,7 1% Bank Lo
Slide 128: Maturity profile Daimler Group
Maturity profile Daimler Group in billions of EUR as of 30 June 2018 16.5 Issued in 2018 2.3 14.0 Maturities 0.6 12.5 4.8 14.2 13.4 5.7 1.4 3.5 3.2 3.6 7.7 1.3 2.0 2.2 1.7 1.5 1.3 4.3 1.0 0.7 1.3 2.3 0.2 1.3 1.3 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2037 Daimler AG Daimler
Slide 129: Our funding strategy is built on prudent principles
Our funding strategy is built on prudent principles No dependence from single markets, instruments, banks or investors Targeting Diversification of funding sources and instruments: Financial Bank Loans, Bonds, ABS, CP, Deposits Independence No Covenants, no MAC, no asset pledges, no CSAs Keeping pru
Slide 130: Solid rating supports Daimler's funding
Solid rating supports Daimler‘s funding Current ratings: S&P: A stable A-1 Moody’s: A2 stable P-1 Fitch: A- stable F2 DBRS: A stable R-1 (low) Scope: A stable S-1 Daimler target: Sustaining the A rating at all rating agencies Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 130
Slide 131: Contents
Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 131
Slide 132: Key balance sheet and financial figures
Key balance sheet and financial figures Daimler Group Dec. 31, 2017 June 30, 2018 Equity ratio 24.0% 23.8% Gross liquidity 22.1 24.7 Funded status of pension obligations -4.5 -5.2 Funding ratio 86% 84% Industrial business Equity ratio 46.4% 45.6% Net liquidity 16.6 14.5 Free cash flow (January-June)
Slide 133: Units sales by division
Units sales by division Q2 2017 Q2 2018 % change Daimler Group 822.5 833.0 +1 of which Mercedes-Benz Cars 595.2 590.7 -1 Daimler Trucks 116.4 123.9 +6 Mercedes-Benz Vans 103.4 110.9 +7 Daimler Buses 7.5 7.5 +0 in thousands of units Daimler AG Daimler Corporate Presentation / Q2 2018 / Page 133
Slide 134: Revenue by division
Revenue by division Q2 2017* Q2 2018 % change Daimler Group 41.2 40.8 -1 of which Mercedes-Benz Cars 23.6 22.6 -4 Daimler Trucks 9.0 9.2 +2 Mercedes-Benz Vans 3.3 3.5 +6 Daimler Buses 1.2 1.1 -12 Daimler Financial Services 5.9 6.3 +6 Contract volume of Daimler Financial Services** 139.9 146.7 +7 in
Slide 135: Revenue by region
Revenue by region Q2 2017* Q2 2018 % change Daimler Group 41.2 40.8 -1 of which Europe 17.1 17.3 +1 of which Germany 6.2 6.2 +1 NAFTA 11.8 11.5 -2 of which United States 10.1 9.7 -4 Asia 9.7 9.5 -2 of which China** 4.8 4.5 -6 Other markets 2.6 2.5 -5 in billions of euros * adjusted based on new IFRS
Slide 136: EBIT by division
EBIT by division Q2 2017* Q2 2018 - EBIT in millions of euros; RoS/RoE in % - EBIT RoS/RoE** EBIT RoS/RoE** Daimler Group 3,747 9.1 2,640 7.5 of which Mercedes-Benz Cars 2,365 10.0 1,901 8.4 Daimler Trucks 548 6.1 546 5.9 Mercedes-Benz Vans 349 10.5 152 4.3 Daimler Buses 78 6.4 66 6.1 Daimler Financ
Slide 137: Group EBIT in Q2 2018
Group EBIT in Q2 2018 - in millions of euros - 3,747* -257 -278 • Cars -399 -164 • Trucks +113 -38 +24 -394 • Vans +30 • Cars -177 • Buses -1 • Trucks • Vans -109 -3 • Cars • Trucks +111 -31 2,640 • Buses +11 • Vans -223 • Buses -21 • DFS: Toll Collect arbitration -418 • Trucks: Fixed cost optimizat
Slide 138: Capital expenditure / Research and development
Capital expenditure / Research and development in billions of euros Investment in property, plant Research and development and equipment expenditure Actual Actual Plan* Actual Actual Plan* 2016 2017 2018-2019 2016 2017 2018-2019 Daimler Group 5.9 6.7 7.4 7.6 8.7 8.9 of which Mercedes-Benz Cars 4.1 4
Slide 139: Financial flexibility over a 12-month period
Financial flexibility over a 12-month period - in billions of euros - 53.4 The financial flexibility provides support to mitigate risk and volatility 45.4 through a balanced mix of funding instruments and clear principles ABS Other potential Commercial paper Daimler follows a financial management to
Slide 140: Daimler Investor Relations Events Q3-2018
Daimler Investor Relations Events Q3-2018 Jul 26-27 2018 CFO Roadshow Frankfurt Jul 30-31 2018 IR Roadshow London Aug 02-03 2018 IR Roadshow Boston/New York Sep 04 2018 EQC premiere @ me Convention Stockholm Sep 20-21 2018 IAA Commercial Vehicles Hanover Sep 25-26 2018 IR Meetings Munich Oct 02 2018
Slide 141: Daimler Investor Relations Financial Calendar 2018/2019
Daimler Investor Relations Financial Calendar 2018/2019 Oct 25 2018 Interim Report 3rd Quarter 2018 Feb 06 2019 Full Year Results 2018 / Annual Press Conference 2019 Feb 07 2019 Investor and Analyst Conference Apr 25 2019 Interim Report 1st Quarter 2019 May 22 2019 Annual Meeting 2019 Jul 24 2019 In
Slide 142: 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