Slide 1: Corporate Presentation December 2018
December 2018 Corporate Presentation
Slide 2: Contents
Contents Group Financials Divisional Information Outlook Daimler Group Strategy Funding Appendix Daimler AG Daimler Corporate Presentation / December 2018 / Page 2
Slide 3: Highlights of Q3 2018
Highlights of Q3 2018 Unit sales Revenue – in thousands of units – – in billions of euros – World premiere of the new, fully-electric EQC** 824 795 40.7* 40.2 Presentation of the new A-Class sedan, B-Class and GLE -4% -1% World premiere of the new Mercedes-Benz Actros with Active Drive Assist Q3 201
Slide 4: Support of the German federal government's concept for cleaner air
Support of the German federal government’s concept for cleaner air Mercedes-Benz offers an exchange premium for diesel vehicles up to €10,000 in 14 priority regions in Germany The trade-in program will be supplemented by attractive financing and leasing offers The package of measures builds on the e
Slide 5: High level of net liquidity
High level of net liquidity - in billions of euros - Free cash flow industrial business January-September 2018: minus €0.1 billion +3.0 -3.1 16.6 +0.0 -3.9 +0.9 13.5 Net industrial Earnings and Working capital M&A effects Dividend payment Other Net industrial liquidity other cash flow impact Daimler
Slide 6: Further investment growth as a basis for profitable growth and 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 7: Contents
Contents Group Financials Divisional Information Outlook Daimler Group Strategy Funding Appendix Daimler AG Daimler Corporate Presentation / December 2018 / Page 7
Slide 8: Mercedes-Benz Cars
Mercedes-Benz Cars Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 597 23.4* 2,105* 560 21.7 1,372 -6% -7% -35% Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler AG
Slide 9: Mercedes-Benz Cars: EBIT
Mercedes-Benz Cars: EBIT - in millions of euros - - 733 Remeasurement of the investment in Aston Martin 9.0%** Expenses for a specific vehicle recall in Q3 2017 Expenses for voluntary service activities in connection with a 2,105* comprehensive plan for diesel engines in Q3 2017 Lower unit sales 6.3
Slide 10: Mercedes-Benz Cars: sales decrease due to delivery delays and model changes
Mercedes-Benz Cars: sales decrease due to delivery delays and model changes of A- and C-Class - in thousands of units - 597 30 560 6 31 smart 4 Sports Cars 211 195 SUVs 18 17 S-Class 99 99 E-Class 127 111 C-Class 105 102 A-/B-Class Q3 2017 Q3 2018 Daimler AG Daimler Corporate Presentation / December
Slide 11: Mercedes-Benz Vans
Mercedes-Benz Vans Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 93.1 91.4 3.1* 3.0 214* -2% -2% -93 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler AG Daimler C
Slide 12: Mercedes-Benz Vans: sales decrease by 2%
Mercedes-Benz Vans: sales decrease by 2% mainly due to temporary delivery delays - in thousands of units - 93.1 91.4 46.2 49.3 Sprinter 26.0 20.7 Vito 14.6 13.3 V-Class 2.5 X-Class 6.2 5.7 Citan Q3 2017 Q3 2018 Daimler AG Daimler Corporate Presentation / December 2018 / Page 12
Slide 13: Mercedes-Benz Vans: EBIT
Mercedes-Benz Vans: EBIT - in millions of euros - - 307 Lower unit sales caused by delivery delays 6.9%** Governmental proceedings and measures relating 214* to diesel vehicles Higher expenses for new technologies and future products Impacts from the Sprinter model change -93 -3.1%** EBIT EBIT Q3 20
Slide 14: Daimler Trucks
Daimler Trucks Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 136 10.0 850 127 9.2* 614* +8% +9% +38% Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler AG Daimler C
Slide 15: Daimler Trucks
Daimler Trucks Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 136 10.0 850 127 9.2* 614* +8% +9% +38% Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler AG Daimler C
Slide 16: Daimler Trucks: sales increase by 8% driven by NAFTA
Daimler Trucks: sales increase by 8% mainly driven by NAFTA region - in thousands of units - 136 127 9 Rest of world 13 42 Asia 40 10 Latin America 8 45 53 NAFTA region 21 22 EU30* Q3 2017 Q3 2018 * European Union, Switzerland and Norway Daimler AG Daimler Corporate Presentation / December 2018 / Pa
Slide 17: Daimler Trucks: significant increase in incoming orders
Daimler Trucks: significant increase in incoming orders mainly driven by NAFTA region - in thousands of units - 129 117 11 Rest of world 12 40 Asia 43 9 Latin America 8 51 NAFTA region 35 19 18 EU30* Q3 2017 Q3 2018 * European Union, Switzerland and Norway Daimler AG Daimler Corporate Presentation /
Slide 18: Daimler Trucks: EBIT
Daimler Trucks: EBIT - in millions of euros - + 236 8.5%** Higher unit sales especially in the NAFTA region Efficiency enhancements 850 6.7%** Expenses for fixed cost optimization in Q3 2017 614* Higher expenses for raw material Higher costs, mainly related to supply chain constraints EBIT EBIT Q3 2
Slide 19: Daimler Buses
Daimler Buses Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 7.7 1.0* 1.1 32* 7.2 30 +7% +3% -6% Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler AG Daimler Corpor
Slide 20: Daimler Buses: higher unit sales in Brazil and India
Daimler Buses: higher unit sales in Brazil and India - in thousands of units - 7.7 7.2 1.3 Rest of world 0.8 1.2 Latin America 1.6 (excl. Brazil and Mexico) 2.3 Brazil 2.1 0.8 0.9 Mexico 1.9 2.1 EU30* Q3 2017 Q3 2018 * European Union, Switzerland and Norway Daimler AG Daimler Corporate Presentation
Slide 21: Daimler Buses: EBIT
Daimler Buses: EBIT - in millions of euros - -2 3.1%** 2.8%** 32* Efficiency enhancements 30 Product mix Inflation-related cost increases EBIT EBIT Q3 2017 Q3 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** Return on sales Daimler AG Daimler Corporate Presentatio
Slide 22: Daimler Financial Services
Daimler Financial Services New business Contract volume EBIT – in billions of euros – – in billions of euros – – in millions of euros – 17.4 16.6 148.8 508 139.9 392 -5% +6% -23% Q3 2017 Q3 2018 12/31/2017 9/30/2018 Q3 2017 Q3 2018 Daimler AG Daimler Corporate Presentation / December 2018 / Page 22
Slide 23: Daimler Financial Services: contract volume increase to 148.8 billion euros
Daimler Financial Services: further increase in contract volume to 148.8 billion euros - in billions of euros - 148.8 139.9 32.4 Africa & Asia-Pacific 29.4 50.7 53.6 Americas 35.6 37.2 Europe (excl. Germany) 24.1 25.6 Germany 12/31/2017 9/30/2018 Daimler AG Daimler Corporate Presentation / December
Slide 24: Daimler Financial Services: EBIT
Daimler Financial Services: EBIT - in millions of euros - - 116 18.5%* 508 Higher contract volume 12.5%* Higher interest-rate level 392 Cost of risk situation in Turkey EBIT EBIT Q3 2017 Q3 2018 * Return on equity Daimler AG Daimler Corporate Presentation / December 2018 / Page 24
Slide 25: Contents
Contents Group Financials Divisional Information Outlook Daimler Group Strategy Funding Appendix Daimler AG Daimler Corporate Presentation / December 2018 / Page 25
Slide 26: 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 slight growth heavy-duty truck Japan* slight decrease markets Brazil significant growth from low level In
Slide 27: 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 28: 2018 outlook for EBIT
2018 outlook for EBIT We expect Group EBIT for FY 2018 to be significantly below the prior- year level based on the following expectations for divisional EBIT: Significantly below the prior-year level Mercedes-Benz Cars Significantly above the prior-year level Daimler Trucks Significantly below the
Slide 29: Contents
Contents Group Financials Divisional Information Outlook Daimler Group Strategy Funding Appendix Daimler AG Daimler Corporate Presentation / December 2018 / Page 29
Slide 30: We have set the course for a successful future
We have set the course for a successful future Profitable CORE business Strategic CASE business COMPANY structure CULTURE change Daimler AG Daimler Corporate Presentation / December 2018 / Page 30
Slide 31: Mercedes-Benz Cars & Vans
Mercedes-Benz Cars & Vans Daimler AG Daimler Corporate Presentation / December 2018 / Page 31
Slide 32: Exciting and promising future ahead of us
Exciting and promising future ahead of us CORE Electric Connected Autonomous Daimler AG Daimler Corporate Presentation / December 2018 / Page 32
Slide 33: Mercedes-Benz Cars: globally balanced sales structure
Mercedes-Benz Cars: globally balanced sales structure with strong development especially in China - in % of unit sales - Rest of world 16% China 30% Europe excl. Germany 27% United States 14% Germany 13% Q3 2018 Daimler AG Daimler Corporate Presentation / December 2018 / Page 33
Slide 34: 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 619 516 488 196 458 400 146 171 143 293 150 239 147 423 123 371 317 315 250 146 116 2013 2014 2015 2016 2017 2017 2018 YTD 09 YTD 09 Daimler A
Slide 35: Mercedes-Benz Network Development in China
Mercedes-Benz Network Development in China Number of Outlets +16 +119 Region Dealer# 566 582 +281 North 175 447 South 136 East 172 166 West 99 2010 2014 2017 2018 YTD 09 Daimler AG Daimler Corporate Presentation / December 2018 / Page 35
Slide 36: Made in China for China
Made in China for China: we’re producing five car models and four engine models at BBAC + M270 E-Class (V 213) Rear wheel drive GLC (X/V 253)* M264 As announced in July 2017, a localized BEV model under EQ C-Class (V/W 205) brand will be produced in BBAC M274 … GLA (X156) A-Class L Sedan M276 (Z177)
Slide 37: Vehicle architecture and modular strategy
With vehicle architecture and modular strategy, we aim at being more cost efficient, faster and more flexible Powertrain E/E Chassis Exterior Interior Daimler AG Daimler Corporate Presentation / December 2018 / Page 37
Slide 38: High degree of modularity of the entire drive train
High degree of modularity of the entire drive train Daimler AG Daimler Corporate Presentation / December 2018 / Page 38
Slide 39: 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 40: 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 41: 48 Volt electrification advantages
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 42: Hybrid offensive as further step to reach CO2 targets
Hybrid offensive as further step to reach CO2 targets Fuel consumption combined: 2,1 l/100 km, CO2-emissions combined: 49 g/km, weighted power consumption: 15.5 kWh/100 km, all-electric range of around 50 kilometers. Daimler AG Daimler Corporate Presentation / December 2018 / Page 42
Slide 43: Mercedes-Benz Cars and Vans: continued product offensive
Mercedes-Benz Cars and Vans: continued product offensive 2018 2019 smart (upgraded) A-Class A-Class Sedan & B-Class CLA 4-door Coupe CLA Shooting Brake Sedan (long wheelbase) C-Class Sedan, Wagon, C-Class Sedan (long Coupe, Cabriolet (upgraded) wheelbase, upgraded) CLS S-Class Coupe & AMG 4-door Mer
Slide 44: 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 / December 2018 / Page 44
Slide 45: New Sprinter plant in North Charleston - Amazon largest Sprinter customer
New Sprinter plant in North Charleston - Amazon becomes the world’s largest Sprinter customer Daimler AG Daimler Corporate Presentation / December 2018 / Page 45
Slide 46: 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 / December 2018 / Page 46
Slide 47: 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 / December 2018 / Page 47
Slide 48: 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 / December 2018 / Page 48
Slide 49: Connect - Anytime. Anywhere.
Connect - Anytime. Anywhere. 25 . million connected vehicles Daimler AG Daimler Corporate Presentation / December 2018 / Page 49
Slide 50: 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 51: Sensors for Driver Assistance Package
Sensors for Driver Assistance Package Daimler AG Daimler Corporate Presentation / December 2018 / Page 51
Slide 52: 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 53: 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 54: 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 55: 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 / December 2018 / Page 55
Slide 56: Vision URBANETIC autonomous driving platform
Vision URBANETIC – autonomous driving platform with cargo or people-mover body Daimler AG Daimler Corporate Presentation / December 2018 / Page 56
Slide 57: EQ - Electric Intelligence
EQ - Electric Intelligence. The new brand for electric mobility as part of our brand portfolio. Daimler AG Daimler Corporate Presentation / December 2018 / Page 57
Slide 58: 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 / December 2018 / Page 58
Slide 59: 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 60: World premiere of the new fully-electric EQC
World premiere of the new fully-electric EQC* Power consumption (NEDC) 22.2* kWh/100 km Range (NEDC) more than 450* km Output 300 kW (408 hp) Peak torque 765 Nm Top speed 180 km/h (governed) Acceleration 0-100 km/h 5.1 s Battery Lithium-ion Battery energy content (NEDC) 80 kWh Battery weight 650 kg
Slide 61: smart fully electric in Europe & US by 2020
smart fully electric in Europe & US by 2020 smart EQ fortwo: power consumption combined: 13,0-12,9 kWh/100km; CO2-emission combined: 0 g/km smart EQ forfour: power consumption combined: 13,2-13,1 kWh/100km; CO2-emission combined: 0 g/km Daimler AG Daimler Corporate Presentation / December 2018 / Pag
Slide 62: eVito: electrically powered mid-sized van
eVito: Electrically powered, mid-sized van has been available to order since the end of 2017 • Ecosystem to electrify commercial fleets • Range of up to 150 km • Designed for inner- city delivery, commercial and passenger transport Daimler AG Daimler Corporate Presentation / December 2018 / Page 62
Slide 63: Ambitious definition of our EV market targets
Ambitious definition of our EV market targets Daimler AG Daimler Corporate Presentation / December 2018 / Page 63
Slide 64: 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 / December 2018 / Page 64
Slide 65: Flexible architecture to integrate all types of electrified powertrains
Flexible architecture to integrate all types of electrified powertrains On-board-charger Combustion engine On-board-charger Electric drive module HV-battery Charging inlet Transmission and integrated E-motor Electric drive module Inverter and DCDC HV-battery Illustration Daimler AG Daimler Corporate
Slide 66: Charging network together with partners
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 67: Daimler Trucks & Buses
Daimler Trucks & Buses Daimler AG Daimler Corporate Presentation / December 2018 / Page 67
Slide 68: Our answers to master future challenges
Our answers to master future challenges CORE Electric Connected Autonomous Daimler AG Daimler Corporate Presentation / December 2018 / Page 68
Slide 69: 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 / Dec
Slide 70: 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 / December 2018 / Page 70
Slide 71: 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 72: 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 73: 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 -3%*on Fuel reduction up to -8%* Fuel reduction up to -15%* motor-ways and up to -5%* Next efficiency step by 2019 Complete efficiency makeover
Slide 74: Safe: leading safety assistance systems
Safe: We offer leading safety assistance systems Active Brake Assist 5 Brakes to full stop for pedestrians. soon soon Active Brake Assist 4 Detects moving pedestrians. Sideguard Assist soon Detects pedestrians and cyclists. Daimler AG Daimler Corporate Presentation / December 2018 / Page 74
Slide 75: Global Platforms: leveraging global scale in technology and cost
Global Platforms: Leveraging our global scale in technology & cost EU LA China Heavy-duty engines Medium-duty engines Transmissions Chassis Electric/ ECU1 ECU2 Electronic ECU3 Cab architecture Daimler AG Daimler Corporate Presentation / December 2018 / Page 75
Slide 76: 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 77: 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 78: 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 / December 2018 / Page 78
Slide 79: 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 6% over the cycle 2016 2017 2020 Daimler AG Daimler Corporate Presentation / December 2018 / Page 79
Slide 80: Investment in future technologies 2018 and 2019
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 / December 2018 / Page 80
Slide 81: 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 / December 2018 / Page 81
Slide 82: Connected: Daimler trucks are online in every region
Connected: Daimler trucks are online in every region Mercedes-Benz Uptime Daimler AG Daimler Corporate Presentation / December 2018 / Page 82
Slide 83: 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 84: 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 / December 2018 / Page 84
Slide 85: The road map towards the fully automated truck
The Theroad truck roadmap maptowards towardsthe thefully fullyautomated automated truck 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 / December 2
Slide 86: Electric: We have been the pioneers for many years
Electric: We have been the pioneers 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 eCascad
Slide 87: 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 88: Freightliner eCascadia and eM2: leading the charge
Freightliner eCascadia and eM2: leading the charge Daimler AG Daimler Corporate Presentation / December 2018 / Page 88
Slide 89: The all-electric Citaro: Emission-free through the city
The all-electric Citaro: Emission-free through the city Daimler AG Daimler Corporate Presentation / December 2018 / Page 89
Slide 90: Daimler Financial Services
Daimler Financial Services Daimler AG Daimler Corporate Presentation / December 2018 / Page 90
Slide 91: Daimler Mobility – We move you
Daimler Mobility – We move you Daimler Mobility Daimler AG Daimler Corporate Presentation / December 2018 / Page 91
Slide 92: 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 / December 2018 / Page 92
Slide 93: 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 Q3 2018 55% ~49% 39% 29% 25% Daimler AG Daimler Corporate Presentation / December 2018 / Page 93
Slide 94: We operate in over 40 countries and have grown our portfolio
We operate in over 40 countries and we have successfully grown our portfolio in over the years 11.9 % CAGR Wholesale 149 140 CHINA 133 CHINA 117 AAP AAP Loan 99 AMERICAS Lease AMERICAS 84 80 72 71 71 72* Others 64 62 62 Portfolio 58 58 58 Trucks (in bn €) 48 48 38 38 41 41 Buses 34 34 Acquisitions 2
Slide 95: Portfolio to perform on excellent level based on acquisition quality
Our portfolio will continue to perform on an excellent level, based on our outstanding acquisition quality NET CREDIT LOSSES QUALITY OF ACQUISITIONS BY CATEGORY Q-cat 4 Q-Cat 3 High share Q-cat 2 of excellent & very good acquisition quality 0.31% 0.26% 0.20%* Q-cat 1 2008 2009 2010 2011 2012 2013 20
Slide 96: 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 / December 2018 / Page 96
Slide 97: 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 / December 2018 / Page 97
Slide 98: Daimler Financial Services represents the S in CASE
Daimler Financial Services represents the S in CASE SERVICES SHARED Daimler AG Daimler Corporate Presentation / December 2018 / Page 98
Slide 99: 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 100: 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 101: Daimler Mobility Services
Daimler Mobility Services Total customers in m 26.0* 17.8 8.5 4.2 2.0 1.1 *Q3 2018 Daimler AG Daimler Corporate Presentation / December 2018 / Page 101
Slide 102: Expansion of our footprint through 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 / December 2018 / Page 102
Slide 103: 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 16.9 mn service is used by 3.4 mn customers
Slide 104: Daimler Mobility Services: current portfolio 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 105: Combining forces with BMW
Combining forces with BMW: We are bringing together complementary pieces FREE-FLOATING CAR SHARING IN EU CAR-AS-A-SERVICE OFFERING IN NA ELECTRIC CHARGING SERVICES MOBILE PARKING SOLUTIONS WORLD LEADER IN FREE-FLOATING CAR SHARING LEADING RIDE-HAILING APP IN EUROPE INNOVATIVE SOLUTIONS FOR URBAN MOB
Slide 106: 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 107: Current mobility services 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 108: Self-driving technology will likely increase demand for shared mobility
Self-driving technology will likely 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 h
Slide 109: moovel providing on-demand shuttle services
is providing on-demand shuttle services • LAUNCHED BY SSB IN 06/2018 (SUCCESSFUL MOOVEL PILOT FROM 12/2017-05/2018) • FLEET & STAFF PROVIDED BY SSB, TECHNOLOGY PROVIDED BY MOOVEL • DEEP INTEGRATION INTO PUBLIC TRANSPORT SYSTEM (TARIFF, BRAND, INTERMODALITY) • FIRST SERVICE OF ITS KIND IN GERMANY WIT
Slide 110: Daimler Group Strategy: Culture
Daimler Group Strategy Culture Daimler AG Daimler Corporate Presentation / December 2018 / Page 110
Slide 111: 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 / December 2018 / Page 111
Slide 112: Transforming the Mindset
Transforming the Mindset Daimler AG Daimler Corporate Presentation / December 2018 / Page 112
Slide 113: Daimler Group Strategy: Company
Daimler Group Strategy Company Daimler AG Daimler Corporate Presentation / December 2018 / Page 113
Slide 114: PROJECT FUTURE: three legally independent divisions
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 115: New structure designed to create significant benefits
Our new structure is designed to 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 entrepreneuri
Slide 116: PROJECT FUTURE: customer-oriented company 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 117: 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 118: Contents
Contents Group Financials Divisional Information Outlook Daimler Group Strategy Funding Appendix Daimler AG Daimler Corporate Presentation / December 2018 / Page 118
Slide 119: Daimler follows a prudent Financial Policy
Daimler follows a prudent 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, current fu
Slide 120: 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 121: Prudent financial management and strengthened balance sheet
Daimler follows a prudent 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 24.9 21.7 22.1 3.8 19.7 18.6 18.2 3.5 3.7 17.0 16.6 16.3 2.8 13.5 2.8 21.1 18.2 18.4 15.4
Slide 122: Financing Liabilities with a balanced mix
Financing Liabilities with a balanced mix in billions of EUR Other Acc. Deposits Com. Paper Bank Loans ABS Bonds 141.6 1.8 127.4 2.0 12.0 3.0 117.6 1.0 1.0 11.0 11.6 10.6 1.7 100.6 11.5 1.5 11.6 86.4 7.4 3.0 37.5 1.5 10.5 34.6 6.0 2.3 29.7 10.9 27.3 22.9 75.6 63.0 67.3 50.8 42.9 2014 2015 2016 2017
Slide 123: Development to Global Capital Market Funding
Consequent Development to Global Capital Market 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 EMT
Slide 124: Funding base further diversified to a global set-up
Funding base further diversified to a true global set-up in billions of EUR 141,6 1% 8% 2% 8% 27% Currency Volume % EUR 35,2 46% USD 25,3 33% GBP 3,7 5% Other CNY 3,1 4% 57,3 2% Com. Paper 0% Currency Volume % CAD 3,1 4% ABS 22% 2% EUR 19,5 66% ZAR 1,7 2% Acc. Deposits USD 7,8 27% AUD 0,7 1% 23% 53%
Slide 125: Maturity profile further lengthened
Maturity profile further lengthened in billions of EUR as of 30 September 2018 17.0 Issued in 2018 14.5 2.8 14.7 Maturities 1.1 7.0 14.2 6.0 13.4 1.7 4.2 4.2 3.6 7.7 1.0 1.3 2.2 2.0 2.9 1.5 4.3 1.0 0.5 1.3 1.3 3.2 0.7 2.3 1.7 0.2 1.3 1.3 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20
Slide 126: Financial flexibility over a 12-month period
Financial flexibility over a 12-month period - in billions of euros - 55.2 The financial flexibility provides support to mitigate risk and volatility 47.1 through a balanced mix of funding instruments and clear principles ABS Other potential Commercial paper Daimler follows a financial management to
Slide 127: 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 128: Daimler pension funded ratio increased to 85%
Daimler pension funded ratio increased to 85% 14 11.5 12 9.8 10 8.6 7.8 in EUR bn 8 7.4 6 4.5 4.9 4 3.4 2.2 3.1 2.4 3.7 Significant contributions of EUR 2.0 1.9 2 0.3 1.1 0.5 0.1 15.3bn since 2010 support the solid 0 2010 2011 2012 2013 2014 2015 2016 2017 Q3 2018 capital structure Pension Provisi
Slide 129: Stable rating supports Daimler's funding
Stable 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 / December 2018 / Page 129
Slide 130: Contents
Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix Daimler AG Daimler Corporate Presentation / December 2018 / Page 130
Slide 131: Key balance sheet and financial figures
Key balance sheet and financial figures Daimler Group Dec. 31, 2017 Sept. 30, 2018 Equity ratio 24.0% 23.7% Gross liquidity 22.1 24.9 Funded status of pension obligations -4.5 -4.8 Funding ratio 86% 85% Industrial business Equity ratio 46.4% 45.3% Net liquidity 16.6 13.5 Free cash flow (January-Sept
Slide 132: Units sales by division
Units sales by division Q3 2017 Q3 2018 % change Daimler Group 824.1 794.7 -4 of which Mercedes-Benz Cars 597.3 559.5 -6 Daimler Trucks 126.6 136.1 +8 Mercedes-Benz Vans 93.1 91.4 -2 Daimler Buses 7.2 7.7 +7 in thousands of units Daimler AG Daimler Corporate Presentation / December 2018 / Page 132
Slide 133: Revenue by division
Revenue by division Q3 2017* Q3 2018 % change Daimler Group 40.7 40.2 -1 of which Mercedes-Benz Cars 23.4 21.7 -7 Daimler Trucks 9.2 10.0 +9 Mercedes-Benz Vans 3.1 3.0 -2 Daimler Buses 1.0 1.1 +3 Daimler Financial Services 5.8 6.3 +7 Contract volume of Daimler Financial Services** 139.9 148.8 +6 in
Slide 134: Revenue by region
Revenue by region Q3 2017* Q3 2018 % change Daimler Group 40.7 40.2 -1 of which Europe 16.7 16.2 -3 of which Germany 5.8 5.9 +2 NAFTA 11.5 11.7 +2 of which United States 9.9 10.1 +2 Asia 9.9 9.7 -2 of which China** 4.6 4.7 +3 Other markets 2.6 2.6 +1 in billions of euros * adjusted based on new IFRS
Slide 135: EBIT by division
EBIT by division Q3 2017* Q3 2018 - EBIT in millions of euros; RoS/RoE in % - EBIT RoS/RoE** EBIT RoS/RoE** Daimler Group 3,409 8.3 2,488 6.2 of which Mercedes-Benz Cars 2,105 9.0 1,372 6.3 Daimler Trucks 614 6.7 850 8.5 Mercedes-Benz Vans 214 6.9 -93 -3.1 Daimler Buses 32 3.1 30 2.8 Daimler Financi
Slide 136: Group EBIT in Q3 2018
Group EBIT in Q3 2018 - in millions of euros - 3,409* -810 -274 +708 2,488 • Cars -942 -430 • Trucks +149 • Cars -237 • Vans • Buses -27 +10 • Trucks -31 -116 +1 • Vans -6 • Buses 0 • Cars -191 • Trucks +49 • Cars: • Vans -275 Remeasurement Aston Martin +185 • Buses -13 Specific vehicle recall** +23
Slide 137: 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 138: Daimler Investor Relations Events Q4-2018/Jan-2019
Daimler Investor Relations Events Q4-2018/Jan-2019 Nov 01-07 2018 IR Meetings Japan/Australia Nov 05-07 2018 CFO Roadshow London/New York/Boston Nov 12 2018 CFO Roadshow Frankfurt Nov 14 2018 IR Meetings London Nov 15 2018 IR Meetings Silicon Valley Nov 28-29 2018 IR Meetings Paris Nov 28-29 2018 IR
Slide 139: Daimler Investor Relations Financial Calendar 2018/2019
Daimler Investor Relations Financial Calendar 2018/2019 Feb 06 2019 Full Year Results 2018 / Annual Press Conference 2019 Feb 07 2019 Investor and Analyst Conference Apr 26 2019 Interim Report 1st Quarter 2019 May 22 2019 Annual Meeting 2019 Jul 24 2019 Interim Report 2nd Quarter 2019 Oct 24 2019 In
Slide 140: 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