Slide 1: Fixed Income Presentation Q1 2021
Fixed Income Presentation Q1 2021 Daimler AG Daimler AG Fixed Income Presentation | Q1 2021 1
Slide 2: Agenda
AGENDA I. DAIMLER AG REVIEW Q1 2021 II. DIVISIONAL REVIEW Q1 2021 III. OUTLOOK 2021 IV. PROJECT FOCUS V. FUNDING VI. SUSTAINABILITY Daimler AG Fixed Income Presentation | Q1 2021 2
Slide 3: Daimler: Key messages
Daimler: Key messages ▸ Q1 margin at Mercedes-Benz Cars & Vans demonstrates strength of portfolio and ability to lower break-even point ▸ Excellent Net Industrial Liquidity & effective Working Capital management ▸ Project Focus: spin-off and listing of Daimler Truck in preparation ▸ World premieres
Slide 4: Daimler: Key figures
Daimler: Key figures Free Cash Net Industrial Sales Revenue EBIT EBIT adj. in thousand units in billion euros in billion euros in billion euros Flow (IB) Liquidity in billion euros in billion euros 729 41.0 20.1 644 5.7 37.2 1.8 5.0 +13% +10% +832% +591% +4.1 9.3 117% 0.6 0.7 -2.3 Q1 2020 Q1 2021 Q1
Slide 5: Q1 2021 reconciliation from CFBIT to Free Cash Flow
Daimler Q1 2021 reconciliation from CFBIT to Free Cash Flow: On our way towards a cash flow oriented culture in million euros +1,022 2,832 +621 -355 -100 -126 1,968 -198 1,810 • Legal proceedings +1,063 • Restructuring measures +550 • M&A transactions -591 CFBIT CFBIT Income Interest Effects from Ot
Slide 6: Daimler Net Industrial Liquidity: Healthy Net Cash position
Daimler Net Industrial Liquidity: Healthy Net Cash position leaves us with significant financial flexibility in billion euros +1.8 -1.9 20.1 +0.6 +0.5 +0.4 17.9 +0.8 Free cash flow industrial business Q1 2021: € 1,810 million Net industrial Earnings and Working Depreciation and Additions to Investme
Slide 7: YTD Q1 2021 development of gross industrial liquidity
Daimler YTD Q1 2021 development of gross industrial liquidity Financial Services in billion euros Industrial Business 1.9 -0.7 -1.9 2.7 -5.4 4.5 -0.3 1.8 32.0 29.4 -0.1 4.2 3.6 25.8 27.9 Gross Dividend FCF FCF Other ABS New Bond New FX & Gross Liquidity Payment IB DMO Debt Maturities ABS Maturities
Slide 8: Q1 2021 financial flexibility over a 12-month period
Daimler Q1 2021 financial flexibility over a 12-month period in billion euros 65.5 Other incl. ABS potential 52.0 Fin. Lease Net industrial liquidity at €20.1 billion improved significantly Commercial paper Gross industrial liquidity at €27.9 billion Bank loans Credit facility Financial flexibility
Slide 9: Agenda
AGENDA I. DAIMLER AG REVIEW Q1 2021 II. DIVISIONAL REVIEW Q1 2021 III. OUTLOOK 2021 IV. PROJECT FOCUS V. FUNDING VI. SUSTAINABILITY Fixed Income Presentation | Q1 2021 9
Slide 10: Mercedes-Benz Cars: Highlights
Mercedes-Benz Cars: Highlights ▸ Positive trend from H2 2020 continued ▸ Favourable sales momentum with record sales in China ▸ Fascinating products and favourable mix drive pricing ▸ Global EV share of Mercedes-Benz Cars at about 10%, in Europe above 25% ▸ Improved industrial performance; significa
Slide 11: Mercedes-Benz Cars: Business recovery in all core regions
Mercedes-Benz Cars: Business recovery in all core regions Group sales of Mercedes-Benz passenger cars per month in thousand units China Europe United States 80 90 40 70 80 35 60 70 30 60 50 25 50 40 20 40 30 15 30 20 20 10 10 10 5 0 0 0 Jan 20 Mar 21 Jan 20 Mar 21 Jan 20 Mar 21 Daimler AG Fixed Inco
Slide 12: Mercedes-Benz Cars & Vans financials
Mercedes-Benz Cars & Vans financials: CFBIT adj. turned positive, demonstrating focus on cash flow Sales Revenue EBIT adj. CFBIT adj. in thousand units in billion euros in billion euros in billion euros 26.9 627 3.8 23.2 547 3.1 +15% +16% +537% +4.4 0.6 -1.3 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q
Slide 13: Mercedes-Benz Cars & Vans EBIT FY & RoS
Mercedes-Benz Cars & Vans EBIT FY & RoS: Favourable sales momentum translated in a significant increase in volume, structure and pricing Higher unit sales (mainly in China), favourable mix Favourable net pricing in million euros Improved industrial performance; significant fixed cost reduction Highe
Slide 14: Mercedes-Benz Cars & Vans Reconciliation from EBIT to CFBIT
Mercedes-Benz Cars & Vans Reconciliation from EBIT to CFBIT: Controlled inventory management given the increased sales volume and richer model-mix in million euros +844 +186 -1,586 +1,498 -3,052 4,078 +1,161 3,129 1,968 t/o • US penalty payments -912 • Legal Proceedings +1,062 • Cellcentric -604 • R
Slide 15: Daimler Trucks & Buses: Highlights
MD Daimler Trucks & Buses: Highlights ▸ Increase in truck sales, mainly in Europe and North America due to improved market conditions and SoM gains ▸ Incoming truck orders in all regions significantly above prior-year’s quarter ▸ Further reduction of used vehicles stocks and favourable net pricing ▸
Slide 16: Daimler Trucks & Buses Financials
Daimler Trucks & Buses Financials: Strong improvement of EBIT adj. and CFBIT adj. Sales Revenue EBIT adj. CFBIT adj. in thousand units in billion euros in million euros in million euros 101 8.7 8.7 98 518 435 +4% -1% 247 +110% +520 -85 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021
Slide 17: Daimler Trucks & Buses EBIT & RoS
Daimler Trucks & Buses EBIT & RoS: Positive volume, structure and net pricing Higher truck unit sales mainly in EU30 and North America Positive contribution from used vehicle business and favourable development of net pricing Higher costs, mainly related to raw material, supply chain constraints and
Slide 18: Daimler Trucks & Buses reconciliation from EBIT to CFBIT
Daimler Trucks & Buses reconciliation from EBIT to CFBIT: Underlining our focused investment approach in million euros +287 -664 1,041 +314 -198 -159 621 -186 435 t/o • Restructuring • cellcentric -622 measures +95 • Fuel Cell JV -281 EBIT Change in Net financial Net investments Depreciation and Oth
Slide 19: Daimler Mobility: Highlights
Daimler Mobility: Highlights ▸ Strong loyalty and retention driving new business above Q1 2020, especially in China ▸ Stable credit reserve level with continuously low net credit losses ▸ Further improvements at mobility services: ▸ Ongoing optimization of its holdings ▸ PARK NOW - Announcement of i
Slide 20: Daimler Mobility Financials
Daimler Mobility Financials: Significant increase in EBIT adj. New Contract EBIT adj. business volume in million euros in billion euros in billion euros 16.2 16.8 150.6 152.7 691 +4% +1% +633 58 Q1 2020 Q1 2021 12/31/2020 3/31/2021 Q1 2020 Q1 2021 For more details on financials please see Daimler Ca
Slide 21: Daimler Mobility EBIT & RoE
Daimler Mobility EBIT & RoE: Main impact from lower credit risk provisions and higher interest margins Lower addition to credit risk reserve Favourable margin development in million euros OPEX improvement Gross profit* 638 +53 744 +102 +3 +25 0 691 +536 RoE: RoE: RoE: • Restructuring RoE: 1.6% 1.6%
Slide 22: Agenda
AGENDA I. DAIMLER AG REVIEW Q1 2021 II. DIVISIONAL REVIEW Q1 2021 III. OUTLOOK 2021 IV. PROJECT FOCUS V. FUNDING VI. SUSTAINABILITY Daimler AG Fixed Income Presentation | Q1 2021 22
Slide 23: Performance: Market Guidance 2021
Performance: Market Guidance 2021 ASSUMPTION Our expectations for the development of business in 2021 are based on the assumption of a gradual normalization of economic conditions in the markets that are important to us. In particular, we assume that the world economy will be able to recover from th
Slide 24: Performance: Daimler Group Guidance 2021
Performance: Daimler Group Guidance 2021 ASSUMPTION Our expectations for the development of business in 2021 are based on the assumption of a gradual normalization of economic conditions in the markets that are important to us. In particular, we assume that the world economy will be able to recover
Slide 25: Performance: Divisional Guidance 2021
Performance: Divisional Guidance 2021 ASSUMPTION Our expectations for the development of business in 2021 are based on the assumption of a gradual normalization of economic conditions in the markets that are important to us. In particular, we assume that the world economy will be able to recover fro
Slide 26: Strategic priorities in 2021
Strategic priorities in 2021 Raising Accelerating Preparing Performance Technology Project Focus MBC&V RoS Q1 14.3% FYe 10-12% World Premiers of Capital Market Update Daimler DT&B RoS Q1 6.0% FYe 6-7% EQS, EQB, EQA Truck on May 20 DMO RoE Q1 18.7% FYe 14-15% Daimler AG Fixed Income Presentation | Q1
Slide 27: Agenda
AGENDA I. DAIMLER AG REVIEW Q1 2021 II. DIVISIONAL REVIEW Q1 2021 III. OUTLOOK 2021 IV. PROJECT FOCUS V. FUNDING VI. SUSTAINABILITY Daimler AG Fixed Income Presentation | Q1 2021 27
Slide 28: Project Focus: Two independent businesses with maximum focus
Project Focus: We want to create two independent businesses with maximum focus Today Tomorrow One face to the market Two separate credits Separate ▸ Capital Structure and Rating ▸ Capital Market Access ▸ Group Funding and Liquidity Management Schematic representation for both groups after spin-off D
Slide 29: Project Focus Fixed Income: Intended transaction structure and key messages
Daimler Project TruckFixed Focus: AG majority Income spin-off: Intended transaction structure and key messages details Strong balance sheet: 20 bn Euro Net Industrial liquidity end of Q1 2021 Solid financial position for both entities at Day 1: net industrial liquidity exceeding pensions deficit Dai
Slide 30: Project Focus: Mercedes-Benz, the pre-eminent luxury car business
Project Focus: Mercedes-Benz, the pre-eminent luxury car business Mercedes-Benz Leading Global “pure play” OEM with unique brand recognition automotive “Ambition 2039” amplifying clear commitment to Sustainability as strategic priority luxury brand Attractive captive financial services business supp
Slide 31: Project Focus: Daimler Truck unlocking the full potential
Project Focus: Daimler Truck unlocking the full potential Daimler Truck Global Global market presence with market-leading brands in triad markets #1 Ready to seize opportunities in emerging markets CV player Leverage existing global platforms to turn scale into profit Lead in Powertrain: technologic
Slide 32: Structure of the planned transaction
Structure of the planned transaction Separate listing of Daimler Truck Distribution of Daimler Truck shares held by Daimler to existing Daimler shareholders Majority in free-float, Daimler ceases control over DT but intends to retain a minority shareholding No additional investment needed from share
Slide 33: Daimler Truck majority spin-off: Intended transaction structure and details
Daimler Daimler Truck Truck AGAG majority majority spin-off: spin-off: Intended Intended transaction transaction structure structure and and details details Transfer of the majority of Daimler Truck to Daimler shareholders True independent governance of Attractive financial profiles Prime listing fo
Slide 34: The listing of Daimler Truck is planned to be complete by year-end 2021
The listing of Daimler Truck is planned to be complete by year-end 2021 Decision & Extraordinary Listing of Announcement of Shareholder Meeting Daimler Truck Project Focus planned targeted February 3, 2021 May 20, 2021 Fall 2021 End of 2021 Capital Market Update Daimler Truck Capital Market Day for
Slide 35: Agenda
AGENDA I. DAIMLER AG REVIEW Q1 2021 II. DIVISIONAL REVIEW Q1 2021 III. OUTLOOK 2021 IV. PROJECT FOCUS V. FUNDING VI. SUSTAINABILITY Fixed Income Presentation | Q1 2021 35
Slide 36: Our funding strategy is built on strict principles
Our funding strategy is built on strict 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 Maximizing K
Slide 37: Portfolio of Daimler Mobility on a high level
Portfolio of Daimler Mobility on a high level Wholesale 163 Loan 150 150 153 140 Lease 133 117 99 Trucks & Buses about 20% of 80 84 portfolio Trucks Others 71 72 74 Portfolio 68 62 Buses (in bn €) 58 48 38 41 Vans Acquisitions (in bn €) 17 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1-2021 Passeng
Slide 38: Daimler Mobility business model: credit management and refinancing
Daimler Mobility business model based on stringent credit management and solid refinancing Net credit losses as a percentage of portfolio, subject to credit risk Net credit losses still on a low level, not showing any severe CoViD-19 impact Despite expected macroeconomic recovery, net credit losses
Slide 39: Well balanced Bond Maturity Profile
Well balanced Bond Maturity Profile in billions of € as of 31 March 2021 Issued in 2021 Maturities 18.2 14.8 0.1 11.6 0.3 9.2 1.8 14.7 6.0 11.3 5.1 0.9 3.5 3.5 7.4 3.1 2.0 2.4 0.4 4.2 1.0 1.3 3.0 0.5 1.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2033 2034 2037 Duration of Bondmaturities
Slide 40: Financing liabilities show a diversified funding mix
Financing liabilities show a diversified funding mix in billions of € Fin. Lease (IFRS 16) Acc. Deposits Other (ex Fin. Lease) Bank Loans Com. Paper Bonds ABS 161.8 3% 146.9 145.0 0% 145.8 3% 2% 1% 9% 1% 1% 1% 127.4 0% 9% 2% 2% 1% 8% 11% 0% 12% 2% 9% 8% 1% 10% 10% 9% 25% 27% 22% 22% 27% 53% 53% 53%
Slide 41: Balanced mix of funding instruments
To ensure sustainable portfolio growth, we mitigate risk and volatility through a balanced mix of funding instruments Capital Markets Strengthen our global footprint and use market opportunities Other Fin. Lease (IFRS 16) 1% 2% Deepen our excellent Bank Loans bank relationships Bank loans Bank loans
Slide 42: Diversified global funding base matched with DMO requirements
Diversified global funding base: continuously matched with DMO requirements Canada EMTN Domestic Bonds ABS Euro Market Japan CP EMTN Program Domestic CP EUR CP Program EMTN USA ABS China ABS 144a / RegS PP Italian domestic Turkey Domestic Bonds CP Hungarian domestic Domestic Bonds ABS ABS Korea Dome
Slide 43: Daimler's financial KPIs set to support a strong rating
Daimler‘s financial KPIs set to support a strong rating Agency Long-term Outlook Short-term Standard & Poor's: BBB+ Positive A-2 Moody’s: A3 Stable P-2 Current Ratings: Fitch: BBB+ Positive F1 DBRS: BBB (high) Stable R-2 (high) Scope: A Stable S-1 Daimler AG Fixed Income Presentation | Q1 2021 43
Slide 44: Discount Rate: high contributions stabilized funded ratio
In low interest rate environment high contributions stabilized funded ratio 14 11.5 11.0 12 9.8 10 8.6 8.4 8.4 7.4 7.8 in EUR bn 8 6 6.2 Significant contributions of 4.5 4 3.4 2.2 2.0 3.1 2.4 3.7 EUR 17.4bn since 2010 1.9 2 0.3 1.1 0.5 0.7 0.7 0.8 0.1 support the solid capital 0 2010 2011 2012 2013
Slide 45: Agenda
AGENDA I. DAIMLER AG REVIEW Q1 2021 II. DIVISIONAL REVIEW Q1 2021 III. OUTLOOK 2021 IV. PROJECT FOCUS V. FUNDING VI. SUSTAINABILITY Daimler AG Fixed Income Presentation | Q1 2021 45
Slide 46: Sustainability - integral part of divisional business strategies
SUSTAINABILITY - integral part of divisional business strategies We aim to achieve New vehicles in Europe, We intend to have CO2 neutrality Japan and North globally CO2-neutral • for our new passenger America are planned to locations and car fleet by be CO2 neutral in administration by • operation (
Slide 47: Sustainable value for all stakeholder groups
Sustainable value for all stakeholder groups Climate protection Resource Livable & air quality conservation cities Traffic safety Data responsibility Human rights Integrity People Partnerships Daimler AG Fixed Income Presentation | Q1 2021 47
Slide 48: CO2 neutrality at Mercedes-Benz Cars
CO2 neutrality at Mercedes-Benz Cars 2039 2030 We aim to achieve CO2 neutrality for our new Our goal is to have plug-in 2025 hybrids or all-electric vehicles car and van fleet by 2039. account for more than 50 2022 Depending on how conditions develop, we at Mercedes-Benz percent of our car and van s
Slide 49: Electric First at Mercedes-Benz Cars
“ELECTRIC FIRST” at Mercedes-Benz Cars – we are fully committed to dedicated electric architectures Powertrain flexible architecture EQC EQA EQB Dedicated large electric platform (EVA) EQS EQE EQS-SUV EQE-SUV Dedicated compact and mid-size * electric platform (MMA) Stay tuned! Daimler AG * “Electric
Slide 50: Daimler Trucks & Buses: Making CO2-neutral transport a reality
Daimler Trucks & Buses: Making CO2-neutral transport a reality 2050 2nd half of 2039 We intend to enable the 2022 2020s Daimler Truck AG has set itself use of CO2-neutral transportation on all the goal of offering only new We intend to offer series-produced vehicles that are CO2-neutral streets and
Slide 51: Customers may decide for electric or hydrogen trucks
Customers may decide for electric or hydrogen trucks based on their specific needs GenH2 Truck • Based on fuel cell and hydrogen • Range up to1000km • First customer testing in 2023 • Series production in second half of 2020s eActros Battery Electric Truck: Hydrogen Truck: • Locally CO2-neutral heav
Slide 52: On the road to CO2-neutral production
On the road to CO2-neutral production By 2022: CO -neutral production at our Mercedes-Benz Car and Van plants worldwide* 2 By 2022: CO -neutral production at our European plants of Daimler Trucks & Buses* 2 By 2030: Fifty percent CO emissions reductions from production operations 2 SBTI By 2039: CO
Slide 53: Committed investments as part of our electrification strategy
Committed investments as part of our electrification strategy €10 bn About €10 billion to expand our fleet of electric vehicles. €1 bn More than €1 billion to expand our battery production. Buying battery cells for more than €20 billion in €20 bn order to systematically promote our Group’s entry int
Slide 54: Strategy guided by international framework agreements
Our strategy is guided by international framework agreements,… The ten principles of the UN Global Compact provide a fundamental guide for our business operations. Our internal principles and policies are founded on this international frame of reference and other international principles. Our goal i
Slide 55: Corporate principles and integrity
… our corporate principles and integrity. Doing the right thing by living our values We adhere to internal and external rules, we act according to our corporate principles and we listen to our inner compass. We have incorporated integrity-related issues in our culture and our compliance management s
Slide 56: Daimler's green finance framework
Daimler’s green finance framework is part of our sustainable business strategy Project Management of Use of proceeds evaluation and Reporting External review proceeds selection Daimler’s green finance framework is developed to be in line with both the ICMA Green Bond Principles, as well as LMA and A
Slide 57: Second Opinion on green bonds by CICERO
Second Opinion by leading provider of independent reviews of green bonds SHADES OF GREEN Daimler’s green finance framework was rated by CICERO as Dark Green. Dark Green is allocated to projects and solutions that correspond to the long-term vision of a low carbon and climate resilient future. GOVE
Slide 58: Disclaimer
Daimler Q1 2021 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 identif