Slide 1: FY 2017 Corporate Presentation
FY 2017 Corporate Presentation Daimler Corporate Presentation / FY 2017 /
Slide 2: Contents
Contents Divisional information Group financials Daimler Group Strategy Outlook Funding Appendix Daimler AG Daimler Corporate Presentation / FY 2017 / Page 2
Slide 3: Mercedes-Benz Cars: continued business growth based on strong product portfolio
Mercedes-Benz Cars: continued business growth based on strong product portfolio Unit sales Revenue EBIT in thousand units in billion euros in million euros 2,374 94.7 2,198 89.3 9,207 8,112 +8% +6% +13% 2016 2017 2016 2017 2016 2017 Daimler AG Daimler Corporate Presentation / FY 2017 / Page 3
Slide 4: Mercedes-Benz Cars: sales increase by 8%
Mercedes-Benz Cars Sales increase by 8% reflecting our strong product line-up in thousand units 2,374 2,198 136 smart 25 Sports Cars 144 27 823 SUVs* 712 79 S-Class 84 304 398 E-Class 490 493 C-Class 435 420 A-/B-Class 2016 2017 * incl. GLA Daimler AG Daimler Corporate Presentation / FY 2017 / Page
Slide 5: Mercedes-Benz Cars: EBIT
Mercedes-Benz Cars: EBIT in million euros + 1,095 Higher unit sales Foreign exchange rates 9.7%* 9.1%* Remeasurement of the equity investment in THERE Holding B.V. 9,207 8,112 Negative one-time effects in 2016, mainly driven by Takata airbags and remeasurement of inventories Higher expenses for new
Slide 6: Daimler Trucks: rising demand in core markets
Daimler Trucks: rising demand in core markets in the course of the year Unit sales Revenue EBIT in thousand units in billion euros in million euros 471 35.7 415 33.2 2,380 1,948 +13% +8% +22% 2016 2017 2016 2017 2016 2017 Daimler AG Daimler Corporate Presentation / FY 2017 / Page 6
Slide 7: Daimler Trucks: sales increase by 13%
Daimler Trucks Sales increase by 13% mainly driven by NAFTA region and Asia in thousand units 471 415 44 Rest of world 37 149 Asia 125 31 Latin America 27 165 NAFTA region 146 80 82 EU30* 2016 2017 * European Union, Switzerland and Norway Daimler AG Daimler Corporate Presentation / FY 2017 / Page 7
Slide 8: Daimler Trucks: incoming orders
Daimler Trucks Incoming orders increase primarily driven by NAFTA region and Indonesia in thousand units 501 47 Rest of world 386 36 162 Asia 125 29 Latin America 26 180 NAFTA region 119 80 83 EU30* 2016 2017 * European Union, Switzerland and Norway Daimler AG Daimler Corporate Presentation / FY 201
Slide 9: Daimler Trucks: EBIT
Daimler Trucks: EBIT in million euros + 432 6.7%* 5.9%* Higher unit sales especially in the NAFTA region 2,380 Sale of real estate at the Kawasaki site in Japan 1,948 Efficiency enhancements Higher expenses for raw material Expenses for fixed cost optimization EBIT EBIT 2016 2017 * Return on sales D
Slide 10: Mercedes-Benz Vans: strong development based on very successful products
Mercedes-Benz Vans: strong development based on very successful products Unit sales Revenue EBIT in thousand units in billion euros in million euros 401 12.8 13.2 1,181 359 1,170 +12% +3% +1% 2016 2017 2016 2017 2016 2017 Daimler AG Daimler Corporate Presentation / FY 2017 / Page 10
Slide 11: Mercedes-Benz Vans: EBIT
Mercedes-Benz Vans: EBIT in million euros + 11 9.1%* Higher unit sales 9.0%* Foreign exchange rates 1,170 1,181 Prior-year figures included expenses related to Takata airbags and workforce adjustments in Germany Higher expenses for new technologies and products End of contract manufacturing EBIT EBI
Slide 12: Daimler Buses: EBIT at the high prior-year level
Daimler Buses: EBIT at the high prior-year level Unit sales Revenue EBIT in thousand units in billion euros in million euros 28.7 4.4 249 26.2 4.2 243 +9% +4% -2% 2016 2017 2016 2017 2016 2017 Daimler AG Daimler Corporate Presentation / FY 2017 / Page 12
Slide 13: Daimler Buses: EBIT
Daimler Buses: EBIT in million euros -6 6.0%* 5.6%* Sales increase in Latin America 249 243 Further efficiency enhancements Cost inflation mainly in Latin America Foreign exchange rates EBIT EBIT 2016 2017 * Return on sales Daimler AG Daimler Corporate Presentation / FY 2017 / Page 13
Slide 14: Daimler Financial Services: further business growth
Daimler Financial Services: further business growth New business Contract volume EBIT in billion euros in billion euros in million euros 70.7 139.9 132.6 1,970 61.8 1,739 +14% +6% +13% 2016 2017 12/31/2016 12/31/2017 2016 2017 Daimler AG Daimler Corporate Presentation / FY 2017 / Page 14
Slide 15: Daimler Financial Services: EBIT
Daimler Financial Services: EBIT in million euros + 231 17.6%* 17.4%* Higher contract volume 1,970 1,739 Cost of risk Higher interest-rate level Expenses for new businesses EBIT EBIT 2016 2017 * Return on equity Daimler AG Daimler Corporate Presentation / FY 2017 / Page 15
Slide 16: Contents
Contents Divisional information Group financials Daimler Group Strategy Outlook Funding Appendix Daimler AG Daimler Corporate Presentation / FY 2017 / Page 16
Slide 17: Key figures
Key figures in billion euros 2016 2017 Unit sales (in thousands of units) 2,998 3,274 Revenue 153.3 164.3 EBIT 12.9 14.7 Net profit 8.8 10.9 Free cash flow of the industrial business 3.9 2.0 Earnings per share (in euros) 7.97 9.84 Dividend per share (in euros) 3.25 3.65 Daimler AG Daimler Corporate
Slide 18: Continued high level of net industrial liquidity
Continued high level of net industrial liquidity in billion euros Free cash flow industrial business FY 2017: €2.0 billion +6.1 -1.2 -3.0 +0.1 -3.5 19.7 -1.6 16.6 Net industrial Earnings and Working capital Contribution into Sale of real Dividend payment Other Net industrial liquidity other cash flo
Slide 19: Further investment growth as a basis for profitable growth
Further investment growth as a basis for profitable growth and development of future mobility in billion 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 2014 2015
Slide 20: Contents
Contents Divisional information Group financials Daimler Group Strategy Outlook Funding Appendix Daimler AG Daimler Corporate Presentation / FY 2017 / 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 Daimler AG Daimler Corporate Presentation / FY 2017 / Page 21
Slide 22: Clear aspiration for all divisions
Clear aspiration for all divisions Mercedes-Benz Daimler Mercedes-Benz Daimler Daimler Financial Cars Trucks Vans Buses Services „Most successful „No 1 in the global „Most successful „No 1 in the global „Best financial and premium Truck business“ company in global Bus business“ mobility services man
Slide 23: Profit targets
Profit targets Profit targets Return on sales / Return on Equity1) in % 8-10 8 9 6 17 Mercedes-Benz Daimler Mercedes-Benz Daimler Daimler Financial Cars Trucks Vans Buses Services Return on sales target for the automotive business: 9 percent 1) Daimler Financial Services Daimler AG Daimler Corporate
Slide 24: Daimler Group Strategy: Mercedes-Benz Cars – Core
Daimler Group Strategy Mercedes-Benz Cars Core Daimler AG Daimler Corporate Presentation / FY 2017 / Page 24
Slide 25: Mercedes-Benz Cars: globally balanced sales structure
Mercedes-Benz Cars Globally balanced sales structure in thousand units 2,374 2,198 403 Rest of world 383 694 Europe 666 excl. Germany 320 Germany 314 338 United States 347 619 China 488 2016 2017 Daimler AG Daimler Corporate Presentation / FY 2017 / Page 25
Slide 26: Mercedes-Benz Cars in China: huge sales growth
Mercedes-Benz Cars in China: huge sales growth with higher share of locally produced vehicles in thousand units imported locally produced 619 488 196 400 171 293 150 239 208 423 147 123 317 108 250 116 146 100 2012 2013 2014 2015 2016 2017 Daimler AG Daimler Corporate Presentation / FY 2017 / Page 2
Slide 27: Mercedes-Benz Network Development in China
Mercedes-Benz Network Development in China Number of Outlets +27 +37 +55 566 529 +106 502 447 +79 341 +55 +41 262 207 166 2010 2011 2012 2013 2014 2015 2016 2017 Daimler AG Daimler Corporate Presentation / FY 2017 / Page 27
Slide 28: Made in China for China
Made in China for China: we’re producing four car models and three engine models at BBAC M270 Rear wheel drive E-Class (V/W 213) + As announced in July 2017, a localized BEV model under EQ GLC (X253) brand will be produced in BBAC M274 C-Class (V/W 205) … M276 GLA (X156) Daimler AG Daimler Corporate
Slide 29: Mercedes-Benz Cars and Vans: continued product offensive
Mercedes-Benz Cars and Vans: continued product offensive G-Class GLC F-CELL* Mercedes-Maybach C-Class S-Class Pullmann Sedan C-Class S-Class Wagon Coupé CLS C-Class Coupe S-Class C-Class … and more to come Cabriolet A-Class Convertible 2018 Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Oc
Slide 30: The new Mercedes-Benz G-Class
The new Mercedes-Benz G-Class - luxury off-road vehicle and design icon Daimler AG Daimler Corporate Presentation / FY 2017 / Page 30
Slide 31: The new Mercedes-Benz CLS
The new Mercedes-Benz CLS - unique design combined with luxurious interior Daimler AG Daimler Corporate Presentation / FY 2017 / Page 31
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 / FY 2017 / 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 / FY 2017 / Page 33
Slide 34: Our roadmap for sustainable mobility
Our roadmap for sustainable mobility High-tech Plug-in Electric vehicles combustion engines hybrids with battery or fuel-cell Daimler AG Daimler Corporate Presentation / FY 2017 / Page 34
Slide 35: 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 36: 48 Volt electrification
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 / FY 2017 / Page 37
Slide 38: All-new powertrain setup from ICE to xEV
All-new powertrain setup guarantees flexibility with a wide range of concepts from ICE to xEV HEV = Hybrid Electric Vehicle; PHEV = Plug-in Hybrid Electric Vehicle; BEV = Battery Electric Vehicle; F-Cell = Fuel Cell Drive Daimler AG Daimler Corporate Presentation / FY 2017 / Page 38
Slide 39: Our target: remain No.1 premium car manufacturer
Our target: remain No.1 premium car manufacturer 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 / FY 2017 / Page 39
Slide 40: Daimler Group Strategy: Mercedes-Benz Cars – CASE
Daimler Group Strategy Mercedes-Benz Cars CASE Daimler AG Daimler Corporate Presentation / FY 2017 / Page 40
Slide 41: Daimler AG Daimler Corporate Presentation / FY 2017 / Page 41
Daimler AG Daimler Corporate Presentation / FY 2017 / Page 41
Slide 42: Revolution in the cockpit: Mercedes-Benz User Experience
Revolution in the cockpit: Mercedes-Benz User Experience Touchpads Touchscreen Hey Mercedes Speech Control Daimler AG Daimler Corporate Presentation / FY 2017 / Page 42
Slide 43: Development steps towards fully autonomous driving
Development steps towards fully autonomous 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 Vehicle can perform the dynamic driving Vehicle
Slide 44: The S-Class: on the way to autonomous driving
The S-Class - On the way to autonomous and accident-free driving Daimler AG Daimler Corporate Presentation / FY 2017 / Page 44
Slide 45: Sensors for Driver Assistance Package
Sensors for Driver Assistance Package Daimler AG Daimler Corporate Presentation / FY 2017 / Page 45
Slide 46: 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 47: Intelligent World Drive
Intelligent World Drive: On our road to autonomy Daimler AG Daimler Corporate Presentation / FY 2017 / Page 47
Slide 48: In the future - driver controlled and system controlled
In the future - driver controlled and system controlled Driver controlled System controlled Automated systems, which are situational Automated systems, which drive the vehicle from activated by the driver the starting point to the destination Daimler AG Daimler Corporate Presentation / FY 2017 / Pag
Slide 49: Bundling of our forces with Bosch
Bundling of our forces with Bosch Aim: To put fully automated driving and driverless cars on the road in urban environments by early in the next decade. System Sensor Algorithms Embed. SW Infrastr. • Hardware (Sensors, • Vehicles Motion Control Testing Actors, ECUs) • Integration of • Software for H
Slide 50: New brand EQ – Electric mobility
New brand EQ – Electric mobility @Mercedes-Benz Cars Daimler AG Daimler Corporate Presentation / FY 2017 / Page 50
Slide 51: EQ concept vehicle with battery-electric drive
EQ concept vehicle with battery-electric drive Daimler AG Daimler Corporate Presentation / FY 2017 / Page 51
Slide 52: Foundation of new Mercedes-Benz electric vehicle strategy
Foundation of new Mercedes-Benz electric vehicle strategy Daimler AG Daimler Corporate Presentation / FY 2017 / Page 52
Slide 53: New e-mobility platform
New e-mobility platform: modular set up of drive train technologies will allow a variety of derivatives Illustrative Daimler AG Daimler Corporate Presentation / FY 2017 / Page 53
Slide 54: Ambitious definition of our EV market targets
Ambitious definition of our EV market targets Daimler AG Daimler Corporate Presentation / FY 2017 / Page 54
Slide 55: Flexible integration of e-mobility in global production network
Flexible integration of e-mobility in global production network Europe Bremen1) (2019 EQC) Rastatt1) Kamenz Hambach2) Sindelfingen1) USA Untertürkheim Tuscaloosa Asia Beijing EQ Vehicles Battery 1) Competence center for EQ production 2) smart production Daimler AG Daimler Corporate Presentation / FY
Slide 56: eRoaming and loading infrastructure with strong partners
Taking electric mobility further: Setup of eRoaming and loading infrastructure together with strong partners Work Highway Home 80 % 20 % Public Charging Stations Charging Processes 1) 2) 3) Founding shareholder of the JV for high-power charging network for Partnership with ChargePoint: eRoaming plat
Slide 57: Creating synergies for electrification across the group
Creating synergies for electrification across the group Daimler AG Daimler Corporate Presentation / FY 2017 / Page 57
Slide 58: Daimler Group Strategy: Daimler Trucks – Core
Daimler Group Strategy Daimler Trucks Core Daimler AG Daimler Corporate Presentation / FY 2017 / Page 58
Slide 59: Our strategy @ Daimler Trucks
Our strategy @ Daimler Trucks Innovation Global Leadership Platforms Global Market Presence Daimler AG Daimler Corporate Presentation / FY 2017 / Page 59
Slide 60: A true global player with strong brands in all key markets
A true global player with strong brands in all key markets #1 NAFTA #1 EU 30 Russia #3 Japan #2 Brazil #4 India China Daimler AG Daimler Corporate Presentation / FY 2017 / Page 60
Slide 61: Daimler Trucks further strengthens its global footprint
Daimler Trucks further strengthens its global footprint Russia: NAFTA: Ramp-up cabin All new heavy-duty production with truck New Cascadia Joint Venture China: Captive Powertrain partner Kamaz Europe: Production of Auman New medium-duty trucks with joint MB Uptime & engine venture partner Fleetboard
Slide 62: 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 makeover F
Slide 63: Intelligent Platform Management
Intelligent Platform Management: leveraging our global scale in technology & cost EU LA China Heavy-duty engines Medium-duty engines Transmissions Chassis Electric/ Electronic Cab architecture Daimler AG Daimler Corporate Presentation / FY 2017 / Page 63
Slide 64: Captive component strategy in NAFTA
Captive component strategy to strengthen market leadership in NAFTA Penetration rate integrated powertrain in % 94 95 75 64 Year End 2016 Year End 2017 Year End 2016 Year End 2017 Heavy-Duty Automated Manual Engines HDEP Transmission DT12 Daimler AG Daimler Corporate Presentation / FY 2017 / Page 64
Slide 65: 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 / FY 2017 / Page 65
Slide 66: Daimler Group Strategy: Daimler Trucks – CASE
Daimler Group Strategy Daimler Trucks CASE Daimler AG Daimler Corporate Presentation / FY 2017 / Page 66
Slide 67: Daimler trucks are online in every region
Daimler trucks are online in every region with the Mercedes-Benz Actros, Freightliner New Cascadia and FUSO Super Great Daimler AG Daimler Corporate Presentation / FY 2017 / Page 67
Slide 68: Connectivity: boosting logistics performance
Connectivity: boosting logistics performance Mercedes-Benz Uptime Fleetboard Store Improves uptime by analyzing real-time data „One-stop-shop“ for apps on transport & logistics Detects potential breakdown situations Open to all industry partners Organizes “pit-stop” in case of emergency Optimizes re
Slide 69: Connectivity: boosting logistics performance
Connectivity: boosting logistics performance Detroit Connect Analytics Detroit Connect Remote Updates Improves fuel and safety performance by “Flash Over the Air” service for engine, transmission & - detecting changes in fuel consumption & recommending aftertreatment firmware - safety event reportin
Slide 70: Safety: semi-autonomous trucks customer-ready by 2020
Safety: semi-autonomous trucks customer-ready by 2020 Highway Pilot Proof of concept 2014 Serial tests in 9 European countries and USA, over 100,000km on the road Market introduction by the end of 2020 Highway Pilot Connect: Proof of concept for Europe in 2015; checking out new opportunities in othe
Slide 71: Testing Truck Platooning in Europe, North America & Asia
Testing Truck Platooning in Europe, North America & Asia 2016 2017 2018 Daimler AG Daimler Corporate Presentation / FY 2017 / Page 71
Slide 72: Light and heavy all-electric trucks for urban distribution
Light and heavy all-electric trucks for urban distribution FUSO Mercedes-Benz E-FUSO eCanter Electric Truck Vision One 2017: our first all-electric, 2016: world premiere 2017: world premiere series-produced light-duty truck 2018: innovation fleet ~2021 market introduction 2019: larger scale producti
Slide 73: Daimler Group Strategy: Mercedes-Benz Vans – Core & CASE
Daimler Group Strategy Mercedes-Benz Vans Core & CASE Daimler AG Daimler Corporate Presentation / FY 2017 / Page 73
Slide 74: Mercedes-Benz Vans: sales increase by 12%
Mercedes-Benz Vans Sales increase by 12% due to market success of attractive product portfolio in thousand units 401.0 359.1 200.5 Sprinter 193.4 111.8 Vito 92.1 48.7 59.3 V-Class 3.3 X-Class 24.9 26.1 Citan 2016 2017 Daimler AG Daimler Corporate Presentation / FY 2017 / Page 74
Slide 75: 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 / FY 2017 / Page 75
Slide 76: Our target: most successful company in global Van business
Our target: Most successful company in global Van business 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 / FY 2017 / Page 76
Slide 77: Daimler Group Strategy: Daimler Buses – Core & CASE
Daimler Group Strategy Daimler Buses Core & CASE Daimler AG Daimler Corporate Presentation / FY 2017 / Page 77
Slide 78: Daimler Buses: sales increase by 9%
Daimler Buses Sales increase by 9% mainly driven by Latin America in thousand units 28.7 26.2 3.9 Rest of world 3.8 5.5 Latin America 4.9 (excl. Brazil and Mexico) 4.9 7.2 Brazil 3.8 3.4 Mexico 8.8 8.7 EU30* 2016 2017 * European Union, Switzerland and Norway Daimler AG Daimler Corporate Presentation
Slide 79: The future of public transport
The future of public transport Daimler AG Daimler Corporate Presentation / FY 2017 / Page 79
Slide 80: Our target: undisputed leader in the bus industry
Our target: Undisputed leader in the bus industry 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 / FY 2017 / Page 80
Slide 81: Daimler Group Strategy: Daimler Financial Services – Core
Daimler Group Strategy Daimler Financial Services Core Daimler AG Daimler Corporate Presentation / FY 2017 / Page 81
Slide 82: 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 mytaxi customers financed or leased vehicles moovel customers Daimler AG Daimler Corporate Presentation / FY 2017 / Page 82
Slide 83: 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 2017 56% ~51% 42% 31% 27% Daimler AG Daimler Corporate Presentation / FY 2017 / Page 83
Slide 84: Managing a portfolio of 140 billion € in 40 countries
Managing a portfolio of 140 billion € in 40 countries (Portfolio by region in % as of December 31, 2017) 43% Americas 36% Europe 9% China 12% Daimler AG Daimler Corporate Presentation / FY 2017 / Page 84
Slide 85: 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% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 * as a percentage of portfolio, subject to
Slide 86: Our target: first-choice provider of financial and mobility services
Our target: first-choice provider of financial and mobility services Portfolio target Profitability target In EUR bn Return on Equity in % 132.6 139.9 Annual growth ≥ 5.5% > 17% 2016 2017 2020 Daimler AG Daimler Corporate Presentation / FY 2017 / Page 86
Slide 87: Daimler Group Strategy: Daimler Financial Services – CASE
Daimler Group Strategy Daimler Financial Services CASE Daimler AG Daimler Corporate Presentation / FY 2017 / Page 87
Slide 88: 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 89: AutoGravity: 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 90: Daimler Mobility Services
Daimler Mobility Services Total customers in m 17.8 8.5 4.2 2.0 1.1 0 5 10 15 Daimler AG Daimler Corporate Presentation / FY 2017 / Page 90
Slide 91: Three main pillars of our mobility business
Three main pillars of our mobility business The world's first taxi app and the The worldwide leading free floating moovel radically simplifies leading e-hailing app in Europe, carsharing concept. The car2go individual mobility by available in over 80 cities within 13 service is used by 3.0m customer
Slide 92: Daimler Mobility Services: current portfolio as a 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 Chauffeur Beat shareholding Privé GENERATE NEW REVEN
Slide 93: Daimler Mobility Services: ongoing business expansion
Daimler Mobility Services: ongoing business expansion Combined YTD 12/17 change* 24.9 22.3 68.9 +132% Transactions in millions 26 16** >70 +22% Cities 3.0 3.7 11.1 +109% Members in millions * car2go, moovel and mytaxi (incl. Taxibeat since 02/17 and Clevertaxi since 06/17) combined, 12/17 (YTD) vs.
Slide 94: Building an integrated mobility ecosystem
Building an integrated mobility ecosystem VEHICLE ASSET FLEET SERVICE MULTI-MODAL FUTURE MOBILITY MANUFACTURER PROVIDER OPERATOR PLATFORM PLATFORM CUSTOMER “Somebody needs to “Somebody needs “Somebody needs “Somebody needs to “Somebody needs to Consuming „mobility- develop, produce and to pay for an
Slide 95: Current mobility services as 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 96: Daimler Group Strategy: Culture
Daimler Group Strategy Culture Daimler AG Daimler Corporate Presentation / FY 2017 / Page 96
Slide 97: CULTURE: Redefining our way of collaboration
CULTURE: Redefining our way of collaboration Daimler AG Daimler Corporate Presentation / FY 2017 / Page 97
Slide 98: Transforming the Mindset
Transforming the Mindset Daimler AG Daimler Corporate Presentation / FY 2017 / Page 98
Slide 99: The future of our corporate culture
The future of our corporate culture Daimler AG Daimler Corporate Presentation / FY 2017 / Page 99
Slide 100: HIGH 5 Newsletter Re-Manufacturing
HIGH 5 Newsletter 2016 2015 2014 2013 2012 2011 2010 2009 Re-Manufacturing 2008 Mercedes-Benz Ex-Factory Driving Aids Daimler AG Daimler Corporate Presentation / FY 2017 / Page 100
Slide 101: Global Partner Network
Silicon Valley Stuttgart Beijing Future of Mobility Digital Lifestyle China Mobility OUR Global Partner Network Austin, TX Mobility DAIMLER NETWORK Brazil Singapore STARTUP AUTOBAHN NETWORK Sales Trucks IT Sales / DFS Overseas Daimler AG Daimler Corporate Presentation / FY 2017 / Page 101
Slide 102: Daimler Group Strategy: Company
Daimler Group Strategy Company Daimler AG Daimler Corporate Presentation / FY 2017 / Page 102
Slide 103: Project Future: plans for new divisional structure
Project Future: plans for new divisional structure Project Future Cornerstones • Plans for three legally independent entities under the roof and lead of Daimler AG Daimler AG • Targeted new structure will help to better focus on changing requirements of markets and customers Daimler Financial Cars &
Slide 104: Project Future: current activities
Project Future: current activities • Based on positive results of a first feasibility study, the Board of Management and the Supervisory Board decided in October 2017 to pursue the Project “Future“. • Agreement with employee representatives on a comprehensive balance of interests including job guara
Slide 105: Contents
Contents Divisional information Group financials Daimler Group Strategy Outlook Funding Appendix Daimler AG Daimler Corporate Presentation / FY 2017 / Page 105
Slide 106: 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 107: 2018 sales outlook
2018 sales outlook Slightly higher unit sales Further growth particularly in China Mercedes-Benz Cars Strong momentum from the wide range of attractive and innovative vehicles Significantly higher unit sales Significant growth in NAFTA region, Brazil, Indonesia and India; India slight growth in Japa
Slide 108: 2018 outlook for EBIT
2018 outlook for EBIT We expect Group EBIT for FY 2018 to be around the prior-year level based on the following expectations for divisional EBIT: Around the prior-year level Mercedes-Benz Cars Significantly above the prior-year level Daimler Trucks Slightly below the prior-year level Mercedes-Benz V
Slide 109: Contents
Contents Divisional information Group financials Daimler Group Strategy Outlook Funding Appendix Daimler AG Daimler Corporate Presentation / FY 2017 / Page 109
Slide 110: 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 111: Positive asset returns led to 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 2009 – 2017 in % 100 10 86% +22% 80 8 75% 73% 66% 64% 63% 63% 62% 60 59% 6 5.3% 5.0% 4.7% 40 4 3.4% 3.1% 2.6% 1.9% 1.9% 1.
Slide 112: Conservative financial management strengthened the 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 21.7 22.1 3.5 3.7 19.7 18.1 18.2 18.6 16.3 17.0 16.6 3.0 2.8 13.0 2.8 13.8 11.9 12.0
Slide 113: Financing Liabilities Structure 2013 – 2017
Financing Liabilities Structure 2013 – 2017 in billions of EUR Other Acc. Deposits Com. Paper Bank Loans ABS Bonds 127.4 117.6 1.0 2.0 11.0 1.0 10.6 1.7 100.6 11.5 1.5 11.6 3.0 86.4 1.5 7.4 77.7 10.5 34.6 1.4 6.0 2.3 29.7 6.1 1.1 10.9 11.3 27.3 22.9 19.1 63.0 67.3 50.8 38.7 42.9 2013 2014 2015 2016
Slide 114: Consequent development to global bond funding
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 115: Funding Base further diversified to a true Global Set-Up
Funding Base further diversified to a true Global Set-Up in billions of EUR 127,4 2% 9% 1% 9% 27% Currency Volume % EUR 30,5 46% USD 23,7 35% GBP 3,2 5% Other 57,3 2% CAD 2,6 4% Com. Paper 0% 2% CNY 2,2 3% ABS 22% Currency Volume % Acc. Deposits ZAR 1,6 2% EUR 19,5 66% AUD 0,7 1% Bank Loans 23% USD
Slide 116: Financial Flexibility increased by extending our maturity profile
Financial Flexibility increased by extending our maturity profile in billions of EUR as of 31 December 2017 14.0 13.8 13.3 1.6 Total issued in 2017: EUR 21.5 bn thereof Issued in 2017 2.4 EUR 9.7 bn (45%) with maturity ≥ 2022 Maturities 5.8 7.7 1.9 12.4 10.9 4.1 8.0 3.2 5.9 2.3 2.3 1.3 1.7 1.5 1.3 1
Slide 117: 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 118: 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 / FY 2017 / Page 118
Slide 119: Contents
Contents Divisional information Group financials Daimler Group Strategy Outlook Funding Appendix Daimler AG Daimler Corporate Presentation / FY 2017 / Page 119
Slide 120: Strong financial and balance sheet figures support A-rating
Strong financial and balance sheet figures support our financial strength and A-rating in billion euros Daimler Group Dec. 31, 2016 Dec. 31, 2017 Equity ratio 22.9% 24.0% Gross liquidity 21.7 22.1 Funded status of pension obligations -7.8 -4.5 Funding ratio 75% 86% Industrial business Equity ratio 4
Slide 121: Dynamic sales development of all automotive divisions
Dynamic sales development of all automotive divisions in thousand units 2016 2017 % change Daimler Group 2,998.4 3,273.9 +9 of which Mercedes-Benz Cars 2,198.0 2,373.5 +8 Daimler Trucks 415.1 470.7 +13 Mercedes-Benz Vans 359.1 401.0 +12 Daimler Buses 26.2 28.7 +9 Daimler AG Daimler Corporate Present
Slide 122: Revenue by division
Revenue by division in billion euros 2016 2017 % change Daimler Group 153.3 164.3 +7 of which Mercedes-Benz Cars 89.3 94.7 +6 Daimler Trucks 33.2 35.7 +8 Mercedes-Benz Vans 12.8 13.2 +3 Daimler Buses 4.2 4.4 +4 Daimler Financial Services 20.7 23.8 +15 Contract volume of Daimler Financial Services* 1
Slide 123: Revenue by region
Revenue by region in billion euros 2016 2017 % change Daimler Group 153.3 164.3 +7 of which Europe 63.4 68.4 +8 of which Germany 23.5 23.9 +2 NAFTA 45.0 46.9 +4 of which United States 39.2 40.5 +3 Asia 35.6 38.8 +9 of which China* 16.0 18.3 +14 Other markets 9.3 10.2 +10 * excluding revenue of not f
Slide 124: Group EBIT in 2017
Group EBIT in 2017 in million euros +314 -1,394 +1,698 +1,341 14,682 • Cars +298 • Trucks -2 +231 -503 • Vans +58 +93 • Buses 12,902 -40 • Cars -1,054 of which: of which: • Trucks -209 • Cars: • Cars: • Cars +1,278 • Vans -137 Remeasurement • Buses Voluntary service • Trucks +443 +6 activities and o
Slide 125: Group EBIT in Q4 2017
Group EBIT in Q4 2017 in million euros +750 -276 -373 • Cars -174 +27 -188 +71 3,470 3,459 • Trucks -54 • Vans -19 • Cars -352 • Cars +287 • Buses -29 • Trucks -67 of which: • Trucks +390 • Vans +16 • Cars: • Vans +65 • Buses +30 Voluntary service • Buses +8 activities and specific vehicle recall +2
Slide 126: EBIT by division
EBIT by division 2016 2017 EBIT in million euros; RoS/RoE in % EBIT RoS/RoE* EBIT RoS/RoE* Daimler Group 12,902 8.4 14,682 9.0 of which Mercedes-Benz Cars 8,112 9.1 9,207 9.7 Daimler Trucks 1,948 5.9 2,380 6.7 Mercedes-Benz Vans 1,170 9.1 1,181 9.0 Daimler Buses 249 6.0 243 5.6 Daimler Financial Ser
Slide 127: EBIT in Q4 2017
EBIT in Q4 2017 Q4 2016 Q4 2017 EBIT in million euros; RoS/RoE in % EBIT RoS/RoE* EBIT RoS/RoE* Daimler Group 3,459 8.7 3,470 8.1 of which Mercedes-Benz Cars 2,561 10.7 2,422 9.7 Daimler Trucks 347 4.1 555 5.8 Mercedes-Benz Vans 156 4.5 248 6.6 Daimler Buses 77 6.0 88 6.8 Daimler Financial Services
Slide 128: Development of dividend per share
Development of dividend per share in euros + 62% 3.65 3.25 3.25 2.45 2.25 2013 2014 2015 2016 2017 (proposed) Daimler AG Daimler Corporate Presentation / FY 2017 / Page 128
Slide 129: Capital expenditure / Research and development
Capital expenditure / Research and development in billion euros Investment in property, plant Research and development and equipment expenditure 8.7 8.9 7.4 7.6 6.7 5.9 Actual Actual Plan Actual Actual Plan 2016 2017 2018/2019 2016 2017 2018/2019 (average p.a.) (average p.a.) Daimler AG Daimler Corp
Slide 130: Capital expenditure / Research and development
Capital expenditure / Research and development in billion 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 4.8 5
Slide 131: Daimler Investor Relations Events Q1-2018
Daimler Investor Relations Events Q1-2018 Feb 22-23 2018 CFO Roadshow London, Frankfurt Feb 26 – Mar 02 2018 CFO Roadshow USA: East Coast, West Coast Mar 6-7 2018 Geneva Motor Show 2018 Geneva Q1 2018 IR Roadshow Belgium, Netherlands Q1 2018 IR Roadshow Munich Jun 05-06 2018 Capital Market Day Daiml
Slide 132: Daimler Investor Relations Financial Calendar 2018
Daimler Investor Relations Financial Calendar 2018 Feb 01 2018 Full Year Results 2017 Annual Press Conference Feb 02 2018 Investor and Analyst Conference Feb 13 2018 Annual Report 2017 online available Apr 05 2018 Annual Meeting 2018 Apr 27 2018 Interim Report 1st Quarter 2018 Jul 26 2018 Interim Re
Slide 133: 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