Daimler Truck Holding Ag · XETR:DTG
Daimler Truck — Investor Day (July 2023)
69 slides from Daimler Truck's investor day presentation, Jul 11, 2023
Slide 1: Daimler Truck Capital Market Day 2023
DAIMLER TRUCK CAPITAL MARKET DAY 2023
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 e
Slide 3: Today's agenda
TRANSFORMING FOR SUSTAINABLE GROWTH Today’s agenda TRANSFORMING ELEVATING LEVERAGING FOR SUSTAINABLE TECHNOLOGY FINANCIAL STRENGTH GROWTH LEADERSHIP FOR 2030 AMBITION MARTIN DAUM ANDREAS GORBACH JOCHEN GOETZ CHIEF EXECUTIVE OFFICER CHIEF TECHNOLOGY OFFICER CHIEF FINANCIAL OFFICER WRAP-UP MARTIN DAUM
Slide 4: Transforming for Sustainable Growth
TRANSFORMING FOR SUSTAINABLE GROWTH Martin Daum
Slide 5: 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
Slide 6: 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 North America EU 30 India years
Slide 7: Transforming for sustainable growth
TRANSFORMING FOR SUSTAINABLE GROWTH We deliver our 2025 ambitions and further enhance profit and cash flow by 2030 2025 2030 DELIVER HIGHER PROFITABILITY AND FURTHER UPLIFT INCREASED RESILIENCE, PROFITABILITY AND FREE INCREASE SHAREHOLDER CASH FLOW REWARDS LAY THE FOUNDATION FOR EXECUTE THE OUR TRAN
Slide 8: 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 and
Slide 9: We achieved a lot so far
#1 WE ACHIEVED A LOT SO FAR Delivering on ambitions despite a challenging environment TECHNOLOGY NEW PRODUCTS FOR OUR TRANSFORMATION CUSTOMERS ▸ 10 zero-emission vehicles ▸ Product-led growth in China, in series production Vocational and Bus in before end of 2023 North America CLEAR FINANCIAL AMBITI
Slide 10: Momentum increasing: increased guidance for 2023
#1 MOMENTUM INCREASING Increased guidance for 2023 ROS/ROE adjusted Actual Guidance New Guidance 2022 2023 2023 IB ROS adjusted 7.7% 7.5 – 9% 8.5 – 10% Trucks North America 10.8% 10 – 12% 11 – 13% Mercedes-Benz 8.1% 7 – 9% 8 – 10% Trucks Asia 2.6% 3 – 5% 4 – 6% Daimler Buses 0.4% 2 – 4% 3 – 5% Finan
Slide 11: Outlook 2025: we reaffirm our financial ambitions
#1 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 cus
Slide 12: Solutions to serve our customers' needs
#2 SOLUTIONS TO SERVE OUR CUSTOMERS NEEDS We work with partners to establish ecosystems and build recurring revenues PARTS & SERVICES INFRASTRUCTURE DIGITAL SERVICES AUTONOMOUS FINANCIAL SERVICES Specially optimized for Optimally adapted to the Solutions to create full Trucks designed for Specially
Slide 13: We use our scale to free up capital and build global platforms
#3 WE USE OUR SCALE TO FREE UP CAPITAL AND BUILD UP GLOBAL PLATFORMS Capitalizing on commonality and partnerships to maximize scale advantage H2 eActros eActros GenH2 eEconic 300/400 600 Truck eCitaro eCitaro fuel cell Chassis Focus on captive high-margin heavy-duty ICE and partnership for medium-du
Slide 14: Our vehicle portfolio combines different technologies
#3 OUR VEHICLE PORTFOLIO COMBINES 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
Slide 15: The transformation path remains uncertain
#3 THE TRANSFORMATION PATH REMAINS UNCERTAIN We have a flexible approach and a dynamic modular strategy TRANSFORMATION OUR APPROACH Geopolitical Emission We pursue a flexible modular strategy tensions regulations We leverage on our global scale ZEV infrastructure Uncertain availability technology pa
Slide 16: Emission regulation and government policies drive adoption
#3 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 Infrastr
Slide 17: Flexibility and scale
#3 FLEXIBILITY AND SCALE Our strategy is flexible to meet different adoption speeds EXPECTED ZEV ADOPTION RATE NORTH AMERICA (CL. 6-8) EUROPE (HDT) up to 60% OUR AMBITION up to 40% ▸ ZEV leader in most of our focus ~10% markets by 2030 <1% 4% <1% 2022A 2025 2030 2022A 2025 2030 ▸ Products ready when
Slide 18: We execute our active portfolio strategy
#4 WE EXECUTE OUR ACTIVE PORTFOLIO STRATEGY Potential merger of Mitsubishi Fuso and Hino Motors to create major player in Asia SCALE UP ASIA TRUCK BUSINESS INCREASING MARKET SHARE IN ASIA GENERATING SCALE FOR HDT TO REDUCE COSTS SHARED INVESTMENTS TO MASTER ZEV TRANSFORMATION PARTNERSHIP BASED ON FA
Slide 19: Autonomous with dual track strategy
#5 AUTONOMOUS WITH DUAL TRACK STRATEGY Offering our customers maximum flexibility and leading in high-margin business CAPTIVE SOLUTION NON-CAPTIVE SOLUTION Pioneer in heavy-duty Connect trucking industry leaders autonomous technology with autonomous technology Fully integrated pure-play trucking Str
Slide 20: Torc is making significant progress
#5 TORC IS MAKING SIGNIFICANT PROGRESS On our way to delivering the best-in-class autonomous trucking solution AD-HARDWARE CUSTOMER PILOTS Start of testing with Two on-going pilots with major industry first vehicle platform. U.S. carriers and expanding Finalize production-intent scope to reefer trai
Slide 21: Our ESG framework drives sustainability transformation
#6 OUR ESG FRAMEWORK DRIVES SUSTAINABILITY TRANSFORMATION We have set clear ambitions and are making good progress ENVIRONMEMT SOCIAL GOVERNANCE Green products Our people Responsible governance Compliance & ESG risk Green production Human rights management Green supply chain Traffic safety Reporting
Slide 22: We are transforming for sustainable growth
WE ARE TRANSFORMING FOR SUSTAINABLE GROWTH We deliver on our ambitions for 2025 and further enhance ROS by 2030 2025 2030 1 +40–60% REVENUE GROWTH GROUP 2025 TO 2030 1 1 >10% >12% ADJUSTED ROS IB ADJUSTED ROS IB 1 Ambition in sunny conditions
Slide 23: In a nutshell – transforming for sustainable growth
IN A NUTSHELL – TRANSFORMING FOR SUSTAINABLE GROWTH We are on track to achieve >10% ROS and are building the pillars for further growth INCREASE RESILIENCE BUILD UP THROUGH OUR SELF-HELP MEASURES NEW SERVICES AND SOLUTIONS COMMITTED TO TRANSFORM EXECUTE TO ZERO EMISSIONS PRODUCTS ACTIVE PORTFOLIO MA
Slide 24: Elevating Technology Leadership
ELEVATING TECHNOLOGY LEADERSHIP Andreas Gorbach
Slide 25: Technology is a key lever to create shareholder value
TECHNOLOGY IS A KEY LEVER TO CREATE SHAREHOLDER VALUE By providing value for customers and scale for Daimler Truck TEST TEST ▸ Test ▸ Test ▸ Test ▸ Test
Slide 26: Propulsion & software offer highest differentiation for customers
PROPULSION & SOFTWARE OFFER HIGHEST DIFFERENTIATION FOR CUSTOMERS And biggest lever for scale TEST TEST TEST POWER INTELLIGENCE ▸TOTest DRIVE ▸ Test ▸ Test TO DRIVE ▸ Test ▸ Test ▸ Test
Slide 27: Four global platforms for power and intelligence
FOUR GLOBAL PLATFORMS FOR POWER AND INTELLIGENCE Leveraging commonality and partnerships whenever possible POWER INTELLIGENCE TO DRIVE TO DRIVE SOFTWARE & DIESEL BEV HYDROGEN ELECTRONICS CREATING CUSTOMER VALUE CREATING SCALE
Slide 28: Decarbonization requires a transition with diesel
DECARBONIZATION REQUIRES A TRANSITION WITH DIESEL Staying competitive and compliant in a consolidated portfolio CREATING CUSTOMER VALUE CREATING SCALE ▸ Global rollout of latest COMMONALITY generation heavy-duty Diesel ▸ One heavy-duty Diesel platform platform completed – another efficiency push for
Slide 29: Different perspectives required: dual strategy with BEV and H2
TO DERIVE TARGET TECHNOLOGIES, DIFFERENT PERSPECTIVES ARE REQUIRED Dual strategy with BEV and H2 is the right answer TECHNICAL VIEW CUSTOMER VIEW INFRASTRUCTURE VIEW All transportation tasks could be Depending on customer use cases A decarbonized world needs both: solved with either battery or H2 –
Slide 30: From fast to market to high volume production
FROM FAST TO MARKET TO HIGH VOLUME PRODUCTION Electrify at global scale across all brands with battery and fuel cell platform CREATING CUSTOMER VALUE Upscaling passcar technology CREATING SCALE Truckified platforms eCanter 1.0, eCanter 2.0 eCitaro eJouley eActros, eCascadia, eM2 eActros 600 GenH2 ‘1
Slide 31: Trucking requires a dedicated battery platform
TRUCKING REQUIRES A DEDICATED BATTERY PLATFORM Commonality and partnering enable the right scale and flexible ramp-up CREATING CUSTOMER VALUE CREATING SCALE ▸ Purpose-built chemistry and cell COMMONALITY format, optimized for safety, longevity and cost ▸ One global cell and pack platform to cover >8
Slide 32: 30 years fuel cell know-how evolve in a tailor-made truck system
30 YEARS FUEL CELL KNOW HOW EVOLVE IN A TAILOR MADE TRUCK SYSTEM Partnership with Volvo Group provides scale and industry leadership CREATING CUSTOMER VALUE CREATING SCALE ▸ Purpose-built fuel cell design, COMMONALITY optimized for efficiency, longevity and high volume production ▸ One global platfo
Slide 33: H2 combustion engine as complementary technology
H2 COMBUSTION ENGINE AS COMPLEMENTARY TECHNOLOGY Depending on transportation task it can be the better choice CREATING CUSTOMER VALUE CREATING SCALE ▸ Beneficial over BEV & FCEV for use COMMONALITY cases with high power demand, moderate mileage, packaging ▸ Relevant core engine parts and constraints
Slide 34: Higher overall vehicle cost of ZEV will remain
IN ANY CASE: HIGHER OVERALL VEHICLE COST OF ZEV WILL REMAIN And cost reduction remains crucial BASELINE DIESEL ZEV DEPENDING ON TRANSPORTATION TASK Diesel Vehicle Diesel Components eDrive & Battery Pack BEV eComponents Exemplary illustration for BEV
Slide 35: Better TCO for the customer needs external policy support
BETTER TCO FOR THE CUSTOMER NEEDS EXTERNAL POLICY SUPPORT Cost of energy and CO2 will be decisive for the decarbonization speed STRONGLY STRONGLY DEPENDING DEPENDING ON ON “CO2 PRICE” “GREEN ENERGY PRICE” OR OR ICE ZEV Exemplary illustration for total cost of ownership - ICE vs. ZEV
Slide 36: Next to great products and TCO – infrastructure is key
NEXT TO GREAT PRODUCTS AND TCO - INFRASTRUCTURE IS KEY Consulting, kick-starting and show-casing as accelerator DEPOT CHARGING & PUBLIC ROADSIDE CHARGING LIGHTHOUSE-PROJECTS CONSULTING & REFUELING & STANDARDS ▸ Onsite consulting ▸ European charging network ▸ Partnerships for charger installation ▸ U
Slide 37: Four global platforms for power and intelligence
FOUR GLOBAL PLATFORMS FOR POWER AND INTELLIGENCE Leveraging commonality and partnerships whenever possible POWER INTELLIGENCE TO DRIVE TO DRIVE SOFTWARE & DIESEL BEV HYDROGEN ELECTRONICS CREATING CUSTOMER VALUE CREATING SCALE
Slide 38: Software and electronics as powertrain-agnostic foundation
SOFTWARE AND ELECTRONICS AS POWERTRAIN-AGNOSTIC FOUNDATION Decoupling scalable hardware from differentiating software GENERIC 2024 2030 CUSTOMER VALUE ▸ Improvement of the truck ▸ Improvement of the business system CREATING APPLICATIONS ▸ Roll-out in global portfolio – including CREATING SCALE truck
Slide 39: Roll-out of next evolution applications starts in 2024
ROLL-OUT OF NEXT EVOLUTION APPLICATIONS STARTS IN 2024 Global electronics hardware platform remains the foundation 2024 2030 CUSTOMER VALUE ▸ Set the industry benchmark with digital human-machine interface (HMI) CREATING ▸ Stay best in class in active safety APPLICATIONS ▸ Boost digital services wit
Slide 40: The vision is making the truck a programmable device
THE VISION IS MAKING THE TRUCK A PROGRAMMABLE DEVICE Standardized hardware and operating system enable fast product updates and scales 2030 CUSTOMER VALUE PRODUCT AND BUSINESS IMPROVEMENT WITH SOFTWARE CREATING ▸ Potential differentiator no. 1 at zero variable cost ▸ Fully decoupled from hardware wi
Slide 41: In a nutshell – elevating technology leadership
IN A NUTSHELL – ELEVATING TECHNOLOGY LEADERSHIP We enable highest customer value creation and highest scale advantage through technology KEEP DIESEL CREATE CUSTOMER VALUE COMPETITIVE AND CLEAN WITH OPTIMIZED TCO CREATE SCALE WITH DECARBONIZE WITH BEV AND H2 COMMONALITY & PARTNERS DIGITALIZE WITH SOF
Slide 42: Leveraging Financial Strength
LEVERAGING FINANCIAL STRENGTH Jochen Goetz
Slide 43: How we leverage our financial strength to deliver 2030 ambition
HOW WE LEVERAGE OUR FINANCIAL STRENGTH TO DELIVER 2030 AMBITION Strong foundations of 2025 underpin return of excess cash to shareholders #1 #1 #2 #2 #3 #3 #4 #5 2023 2025 2030 2023 2025 2030 Focus on maximizing Rewarding Improved ROS Improved RoS Use Use self-help self-help Take advantage Take adva
Slide 44: Momentum increasing: increased market assumption for 2023
#1 MOMENTUM INCREASING Increased market assumption for 2023 Heavy-duty Truck Market1 Assumption 2023 New Assumption 2023 North America2 280 – 320 k units 290 – 330 k units EU 303 280 – 320 k units 300 – 340 k units Assumption The outlook is especially subject to the further developments in the war i
Slide 45: Momentum increasing: increased guidance for 2023 (Group)
#1 MOMENTUM INCREASING Increased guidance for 2023 Actual 2022 Guidance 2023 New Guidance 2023 GROUP Revenue 51 billion € 55 – 57 billion € 56 – 58 billion € EBIT 3.5 billion € significant increase significant increase EBIT adjusted 4.0 billion € significant increase significant increase Investment
Slide 46: Momentum increasing: increased guidance for 2023 (segments)
#1 MOMENTUM INCREASING Increased guidance for 2023 Unit Sales ROS/ROE adjusted in thousand units Actual Guidance New Guidance Actual Guidance New Guidance 2022 2023 2023 2022 2023 2023 Trucks North America 187 190 – 210 190 – 210 10.8% 10 – 12% 11 – 13% Mercedes-Benz 166 150 – 170 155 – 175 8.1% 7 –
Slide 47: We are on track to deliver on 2025 ambition
#1 WE ARE ON TRACK TO DELIVER ON 2025 AMBITION ROS of >10% within reach ROS ADJUSTED (in %) TRUCKS NORTH AMERICA MERCEDES-BENZ INDUSTRIAL BUSINESS 11.5 11-13 12.0 10.8 8-10 10.0 8.1 0.4 8.5-10 >10.0 2019A 2022A 2023 2025 2019A 2022A 2023 2025 GUIDANCE AMBITION GUIDANCE AMBITION 7.7 TRUCKS ASIA DAIML
Slide 48: We are continuously working on our self-help measures
#2 WE ARE CONTINUOUSLY WORKING ON OUR SELF-HELP MEASURES Services and CapEx PPE & R&D on track, fixed cost ambitions remain key focus SERVICE REVENUE IB FIXED COSTS IB1 CAPEX PPE & R&D GROUP2 - in € - - in € - - in € - Before: >+20% >+25% -15% -15% +15% -8% -12% 2019A 2022A 2025 2019A 2022A 2025 201
Slide 49: Fixed cost ambitions remain key focus
#2 FIXED COST AMBITIONS REMAIN KEY FOCUS Additional measures identified especially at Mercedes-Benz 2019 2020 2021 2022 2023 2024 2025 2026-2030 ∑ -15% FOH REDUCTION IB: -8% -7% MERCEDES-BENZ HEADCOUNT REDUCTION ∼ -3% ACTIVE PORTFOLIO MANAGEMENT E.g. restructuring of MB Brazil, Bus shell production
Slide 50: We already improved resilience – and there is more to come
#2 WE ALREADY IMPROVED RESILIENCE – AND THERE IS MORE TO COME Significant increase of resilience in rainy conditions ROS IB ADJUSTED: SIMULATION OF RAINY CONDITIONS SELF-HELP MEASURES >10% HIGHER RECURRENT SERVICE 7.7% 6-7% REVENUES 5.8% 4.0% LOWER CAPEX & R&D SPENDING DESPITE TRANSFORMATION 0.8% LO
Slide 51: Significant revenue growth opportunities to 2030
#3 SIGNIFICANT REVENUE GROWTH OPPORTUNITIES TO 2030 With strong foundations in place, increased emphasis on exploiting new growth TOTAL REVENUE GROUP - in € - ∼+40–60% Depending on penetration rate and technology mix AMBITION MARKET SOM ZEV SERVICE AUTONOMOUS FS AMBITION 2025 2030 WE SEE WE EXPLORE
Slide 52: Truck is a growing industry
#3 TRUCK IS A GROWING INDUSTRY North America and EU 30 with solid growth, India with high growth potential TOTAL MARKET - units - NORTH AMERICA (CL. 6-8) EU 30 (HDT/MDT) +10% +10% 2025 2030 2025 2030 ASSUMPTION ASSUMPTION BRAZIL (HDT/MDT) INDIA (HDT/UPPER MDT) +70% +20% 2025 2030 2025 2030 ASSUMPTIO
Slide 53: We increase our share of market by exploiting white spots
#3 WE INCREASE OUR SHARE OF MARKET BY EXPLOITING WHITE SPOTS Share of market increasing due to new product initiatives SHARE OF MARKET - in % - NORTH AMERICA INDIA JAPAN (CI. 6-8) (HDT/UPPER MDT) (TRUCKS TOTAL) 40 45 23 25 14 8 2025 2030 2025 2030 2025 2030 AMBITION AMBITION AMBITION AMBITION AMBITI
Slide 54: We transform to zero emissions
#3 WE TRANSFORM TO ZERO EMISSIONS The transformation to ZEV unlocks huge revenue potential TOTAL REVENUE KEY LEVERS FOR REVENUE NEW VEHICLE IB INCREASE - in € - ▸ ZEV trucks with high revenue Up to +60% potential ▸ BEV, FCEV and H2-ICE with higher average selling price than Diesel ICE ▸ Mix and pene
Slide 55: Service – we focus on customer needs
#3 SERVICE – WE FOCUS ON CUSTOMER NEEDS Customer solutions will result in significant increase in customer lifetime value SERVICE REVENUE INDUSTRIAL BUSINESS - in € - ∼60% ∼30% ∼10% +50% SERVICES & PARTS ZEV ECOSYSTEM DIGITAL SERVICES ▸ Expanding parts ▸ Charging station ▸ Fleet management portfolio
Slide 56: We deliver autonomous trucks
#3 WE DELIVER AUTONOMOUS TRUCKS Software driven virtual driver offers significant customer value HUB-TO-HUB, PHASE 1 I-40 MILES DEVELOPMENT with scaling plan across US Southwest, then country-wide On-highway US hub-to-hub only - in miles - 2027 MARKET ENTRY >3 billion € REVENUE POTENTIAL IN 2030 Pha
Slide 57: Financial services revenue grows significantly
#3 FINANCIAL SERVICES REVENUE GROWS SIGNIFICANTLY Revenue growth due to higher penetration, portfolio extension and new offerings ASSETS UNDER MANAGEMENT FS REVENUE FS KEY REVENUE DRIVERS - in € - - in € - ▸ Increase penetration and extend product portfolio with >+50% innovative products ▸ ZEV trans
Slide 58: Significant EBIT growth and higher profitability in 2030
#3 SIGNIFICANT EBIT GROWTH AND HIGHER PROFITABILITY IN 2030 Significant growth driven by all levers EBIT ADJUSTED IB & ROS ADJUSTED IB - in € - New Vehicle Services and Driven by Autonomous expanded business >10% >12% 2025 Volume Contribution Fixed Other 2030 AMBITION Margin Overheads AMBITION
Slide 59: All this contributes to a higher profitability and resilience in 2030
#3 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 A
Slide 60: Focus on maximizing our value potential
#4 FOCUS ON MAXIMIZING OUR VALUE POTENTIAL ROCE as key measure to efficiently deploy capital TRANSPARENT ROCE IB1 AMBITIONS IN ADDITION RETURN ON CAPITAL TO ROS DOES MATTER HIGHER FOCUS ON EVEN MORE IN VALUE CREATION TRANSFORMATIONAL 2022A 2025 2030 TIMES AMBITION AMBITION 29% 45% >50% VALUE CREATIO
Slide 61: Highest ROCE opportunities identified by active portfolio management
#4 HIGHEST ROCE OPPORTUNITIES ARE IDENTIFIED BY ACTIVE PORTFOLIO MGT Increasing pivot towards heavy-duty and rationalization of line-up ACTIVE PORTFOLIO POTENTIAL MERGER OF MANAGEMENT FOCUSES ON MITSUBISHI FUSO & HINO MOTORS ALL LEVELS HEAVY-DUTY MEDIUM-DUTY LIGHT-DUTY DT ▸ Execution of vocational ▸
Slide 62: Focus on disciplined capital allocation in transformation
#4 FOCUS ON DISCIPLINED CAPITAL ALLOCATION IN TRANSFORMATION Keep core spending stable despite significant increase in ZEV investments INCREASE OF FUNDING DUE TO NEW BUSINESSES INCREASE OF ZEV SHARE CAPEX PPE & R&D CAPEX PPE & R&D - in € - - in € - -15% ICE ZEV ACTUAL 2019 AMBITION 2025 Autonomous A
Slide 63: High cash generation results in strong liquidity position
#5 HIGH CASH GENERATION RESULTS IN STRONG LIQUIDITY POSITION We strictly allocate capital and sustain on high cash generation FCF IB /PRE-TAX CCR ADJ. NET INDUSTRIAL LIQUIDITY - in € /absolute figure - - in billion € - 0.9 ~0.9 ~0.9 Available 7.5 liquidity >4-6 Operating liquidity range 2022A 2025 2
Slide 64: Our capital allocation framework sets clear use-of-cash priorities
#5 OUR CAPITAL ALLOCATION FRAMEWORK SETS CLEAR USE-OF-CASH PRIORITIES Focus on attractive return while investing in future value creation STRONG OPERATING CASH FLOW WITH SOLID BALANCE SHEET AS ▸ Based on Active Portfolio Management in most attractive KEY PRIORITY businesses ▸ Pivot towards heavy-dut
Slide 65: Introducing our share buyback program
#5 INTRODUCING 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 Range to maintain a stable dividend level even in tougher market environments DURATION TIME
Slide 66: In a nutshell – leveraging financial strength for 2030 ambition
IN A NUTSHELL – LEVERAGING FINANCIAL STRENGTH FOR 2030 AMBITION We are well on track to achieve >10% ROS and are building the pillars for further growth ON OUR WAY TO >10% ROS UPLIFT PROFITABILITY TO >12% ROS UNTIL 2025 IN SUNNY CONDITIONS UNTIL 2030 IN SUNNY CONDITIONS DISCIPLINED AND ROCE-BASED HI
Slide 67: Wrap-up
WRAP-UP Martin Daum
Slide 68: Daimler Truck is on a journey with a clear way forward
TRANSFORMING FOR SUSTAINABLE GROWTH Daimler Truck is on a journey with a clear way forward 2023 2025 2030 HOW WE WIN Implementation of 8.5–10% >10% >12% self-help measures ADJUSTED ROS IB ADJUSTED ROS IB ADJUSTED ROS IB Active Portfolio Management UP TO 2 BILLION € +40–60% SHARE BUYBACK REVENUE GROW
Slide 69: Daimler Truck Capital Market Day 2023
DAIMLER TRUCK CAPITAL MARKET DAY 2023