Daimler Truck Holding Ag · XETR:DTG
Daimler Truck — Investor Day (May 2021)
53 slides from Daimler Truck's investor day presentation, May 20, 2021
Slide 1: Daimler Truck Strategy Day
Daimler Truck Strategy Day May 20, 2021
Slide 2: Important information
Important information The presentation has been prepared by Daimler Truck AG (the “Company” and together with its subsidiaries and those entities to become its subsidiaries, the "Group") for information and background purposes only. This document is not, and should not be construed as, a prospectus
Slide 3: Agenda
AGENDA ▸ INTRODUCTION TRANSFORMING DAIMLER ▸ DAIMLER TRUCK UNLOCKING THE POTENTIAL ▸ FINANCIALS DELIVERING ON OUR AMBITIONS ▸ NORTH AMERICA FROM STRONG TO STRONGER ▸ MERCEDES-BENZ REBUILDING PROFITABILITY ▸ TRUCKS ASIA OPPORTUNITY AND GROWTH ▸ TECHNOLOGY LEADING THE WAY TO ZERO EMISSIONS ▸ Q&A
Slide 4: Introduction: Transforming Daimler
INTRODUCTION TRANSFORMING DAIMLER Ola Källenius
Slide 5: Separation of Daimler into two pure-play companies
SEPARATION OF DAIMLER INTO TWO PURE-PLAY COMPANIES Driving value creation, greater focus and financial discipline TODAY TOMORROW DAIMLER MERCEDES-BENZ DAIMLER TRUCK MERCEDES- DAIMLER DAIMLER BENZ TRUCK MOBILITY MERCEDES- FINANCIAL BENZ SERVICES MOBILITY Schematic representation
Slide 6: On track with transactional and operational separation
ON TRACK WITH TRANSACTIONAL AND OPERATIONAL SEPARATION Significant progress made towards expected timeline TRUE INDEPENDENT ATTRACTIVE FINANCIAL PRIME LISTING FOR GOVERNANCE OF PROFILES DAIMLER TRUCK DAIMLER TRUCK FOR BOTH COMPANIES SPIN-OFF OF SIGNIFICANT STRONG CAPITAL FRANKFURT LISTING MAJORITY S
Slide 7: Daimler Truck: Unlocking the Potential
DAIMLER TRUCK UNLOCKING THE POTENTIAL Martin Daum
Slide 8: Time to unlock the potential
TIME TO UNLOCK THE POTENTIAL Targeting higher financial performance as an independent company OUR STRENGTHS OUR CHALLENGES OUR OPPORTUNITY REVENUE SHARE 2019* ▸ True global No.1 ▸ Leveraging scale ▸ New regional structure ~10% BUS ▸ Unmatched scale ▸ Regional inconsistency ▸ Target regional profit ~
Slide 9: Our mission as an independent company is clear
OUR MISSION AS AN INDEPENDENT COMPANY IS CLEAR RESET LEAD THE WAY PROFITABILITY TO ZERO EMISSIONS IN PURSUIT OF PROFIT AND TECHNOLOGY LEADERSHIP
Slide 10: Reset profitability
RESET PROFITABILITY Willing to take the hard decisions to create value for shareholders OUR STRATEGIC FINANCIAL GOALS LOWER TARGET REGIONAL FOCUS ON BREAKEVEN TO PROFIT HIGHEST RETURN MANAGE BENCHMARKS SEGMENTS CYCLICALITY SYSTEMATIC GROW NO EXCUSES: LOWERING OF SERVICES AND EVERY REGION FIXED AND R
Slide 11: Lead the way to zero emissions
LEAD THE WAY TO ZERO EMISSIONS We are going ‘all in’ on zero-emission trucks to achieve technology leadership OUR STRATEGIC TECHNOLOGY GOALS TECHNOLOGY BUSINESS AMBITIOUS COST PATH SET ROADMAP FOR TARGETS FOR TO GET TO ZEV IN PLACE ZEV & TCO PARITY ZERO EMISSIONS IN-HOUSE TECH DEDICATED BEV FCEV FOR
Slide 12: Infrastructure requires a dual zero-emission strategy
INFRASTRUCTURE REQUIRES A DUAL ZERO-EMISSION STRATEGY Battery electric and fuel-cell electric – both technologies needed REVERSED SCALING EFFECTS ZEV PENETRATION LOW HIGH H2 LEVERAGING REFUELING EFFICIENCY AND EXISTING ENERGY CAPACITIES H2 PRODUCTION PLANNED HUB CHARGING FLEXIBLE ON-DEMAND BEV: Easi
Slide 13: Dedicated leadership to unlock the potential
DEDICATED LEADERSHIP TO UNLOCK THE POTENTIAL The Future Daimler Truck Management Team KARIN RÅDSTRÖM HARTMUT SCHICK JOHN O‘LEARY STEPHAN UNGER Head of Europe & Latin America Head of Asia Head of North America Head of Financial Services ANDREAS GORBACH JÜRGEN HARTWIG JOCHEN GOETZ MARTIN DAUM CTO Head
Slide 14: Financials: Delivering on our ambitions
FINANCIALS DELIVERING ON OUR AMBITIONS Jochen Goetz
Slide 15: Daimler Truck: the starting point
DAIMLER TRUCK: THE STARTING POINT Financial performance needs improvement THE CHALLENGE: OUR AMBITION: COST COMPETITIVENESS TARGET THE BENCHMARK Benchmark ▸ Global EBIT margin ~11-12% not competitive ~10-11% ~10-11% ▸ Profit leader in North America but problems in 7% ~7-8% Europe, Brazil & Asia 6% 6
Slide 16: Progress in 2020 – but not enough
PROGRESS IN 2020 – BUT NOT ENOUGH Learn from 2020; make savings permanent; push further FIXED COST REDUCTION STRUCTURAL ACTIONS -15% BY 2025 ▸ Personnel cost reduction target for Mercedes-Benz of €300M by 2022 ▸ Process streamlining and complexity reduction ▸ Sustainable implementation of COVID-19 l
Slide 17: Smarter capital allocation essential
SMARTER CAPITAL ALLOCATION ESSENTIAL Greater focus on our most profitable segments and regions LOWER CAPEX AND R&D IMPROVE FOOTPRINT ▸ Focus on heavy duty in main -15% BY 2025 regions ▸ Manage portfolio actively to focus and reduce complexity ▸ Reduce spending on ICE powertrain ▸ Standardize global
Slide 18: Grow services and raise profitability
GROW SERVICES AND RAISE PROFITABILITY Leverage technology to grow recurring revenues and reduce cyclicality SERVICES TODAY SERVICES 2030 ~30% ~50% of Daimler Truck revenues of Daimler Truck revenues Reman Dynamic service On-site 24h guarantee Traditional Spare parts contracts maintenance Financing &
Slide 19: No excuses: every region and unit must deliver
NO EXCUSES: EVERY REGION AND UNIT MUST DELIVER Systematic focus on financial performance across the five reporting segments TRUCKS MERCEDES-BENZ FINANCIAL TRUCKS ASIA DAIMLER BUSES NORTH AMERICA TRUCKS SERVICES ~42%|204k* ~34%|138k* ~14%|150k* ~10%|33k* MAINTAIN DRAMATICALLY MAXIMIZE PROFIT POOL HIG
Slide 20: Our 2025 financial ambitions for Daimler Truck
OUR 2025 FINANCIAL AMBITIONS FOR DAIMLER TRUCK Unlock potential; manage cyclicality; fully reward shareholders MARKET ENVIRONMENT FIXED COST -15% VS. 2019 CAPEX / R&D -15% VS. 2019 PROFITABILITY 6 - 7% 8 - 9% >10% CASH CONVERSION 0.8 - 1.0X FULL FINANCIAL TARGETS AND GUIDANCE TO BE PROVIDED AHEAD OF
Slide 21: Trucks North America: From strong to stronger
TRUCKS NORTH AMERICA FROM STRONG TO STRONGER John O’Leary
Slide 22: Unparalleled strength: the North American success story
UNPARALLELED STRENGTH: THE NORTH AMERICAN SUCCESS STORY Winning with a sophisticated and demanding customer base KEY SUCCESS FACTORS THAT WILL CONTINUE TO MAKE US STRONG IN THE FUTURE ▸ Industry-leading, continuously updated technology ▸ Best-in-class production footprint ▸ World-class dealer networ
Slide 23: Behind the results, hard work
BEHIND THE RESULTS, HARD WORK Targeted, rigorously executed measures for sustained high performance INDUSTRY-LEADING MARGINS… …DRIVEN BY INTENSE FOCUS ON PERFORMANCE DOUBLE-DIGIT PROFITABILITY ▸ Continued focus on TECHNOLOGY LEADERSHIP ▸ Non-negotiable CUSTOMER FOCUS 10% ▸ Highest focus on rigorous
Slide 24: How we will continue to win
HOW WE WILL CONTINUE TO WIN New opportunities, new profit pools and relentless execution VOCATIONAL STRATEGY AFTERMARKET TECHNOLOGY PUSH BOOSTING FUTURE GROWTH FULL RANGE OF SERVICES EXPAND LEADERSHIP POSITION ▸ New dedicated platform 49X ▸ 24hrs customer turnaround ▸ Accelerate ZEV strategy ▸ Overa
Slide 25: Mercedes-Benz: Rebuilding profitability
MERCEDES-BENZ REBUILDING PROFITABILITY Karin Rådström
Slide 26: European performance unacceptable
EUROPEAN PERFORMANCE UNACCEPTABLE Mercedes-Benz was once the benchmark MARKET SHARE [%] PRODUCT RANKING #4 23 20 SALES RANKING #5 SERVICE 2012 2019 RANKING #6 2019 last representative year Results of a benchmark study 2020 THE CHALLENGES: LACK OF CUSTOMER FOCUS AND COST COMPETITIVENESS
Slide 27: New customer-focused strategy
NEW CUSTOMER-FOCUSED STRATEGY We need to raise our game to win back customer trust PRODUCT ▸ Involve customers in R&D process ▸ Focus on TCO improvements SALES ▸ Integrated offering of our portfolio ▸ Improve support for frontline ▸ Extend training and digitalization SERVICES ▸ Strengthen service ne
Slide 28: Accelerated performance initiatives
ACCELERATED PERFORMANCE INITIATIVES Systematic plan to drive a European profit turnaround PERFORMANCE MANAGEMENT ▸ Multiple previous initiatives now in one program ▸ Program management: >6,000 cost items targeted ▸ Direct steering by Head of Mercedes-Benz Trucks PERFORMANCE TARGETS ▸ Fixed cost redu
Slide 29: Brazil: intense recovery program
BRAZIL: INTENSE RECOVERY PROGRAM Comprehensive restructuring and product cost actions underway MARKET DEMAND [k] THE CHALLENGE OUR PLAN PROGRESS 96 85 72 ▸ Market volume ▸ Reduce FX ▸ New localized 48 decline from exposure: localize Actros with higher peak and exports margins ▸ Severe currency ▸ Str
Slide 30: Mercedes-Benz Trucks: rebuilding profitability
MERCEDES-BENZ TRUCKS: REBUILDING PROFITABILITY ▸ NEW PERSPECTIVES ▸ REVISED STRATEGY ▸ TARGET BENCHMARK IN EUROPE ▸ FIX BRAZIL ▸ INTENSIFIED COST MANAGEMENT ▸ INTENSE CUSTOMER FOCUS
Slide 31: Trucks Asia: Opportunity and growth
TRUCKS ASIA OPPORTUNITY AND GROWTH Hartmut Schick
Slide 32: Daimler Truck in Asia: opportunity and growth
DAIMLER TRUCK IN ASIA: OPPORTUNITY AND GROWTH Strong technology, low cost production, clear growth potential JAPAN INDONESIA CHINA INDIA 42k UNITS 39k UNITS 82k UNITS (JV) 14k UNITS MARGIN STABILITY HIGH ROIC GROWTH HIGH POTENTIAL LOCAL TECHNOLOGY LEADER Figures refer to 2019
Slide 33: FUSO: maximizing the potential
FUSO: MAXIMIZING THE POTENTIAL Stable core business; high ROIC Asian operations; electric leader JAPAN INDONESIA & OTHER ELECTRIC LEADER MAXIMIZE THE POTENTIAL HIGH ROIC OPERATIONS PIONEERING EV TECHNOLOGY ▸ Stable margins ▸ Indonesian market leader ▸ 1st mover advantage ▸ Very strong service revenu
Slide 34: Leveraging Asian footprint to grow in 'Next30' countries
LEVERAGING ASIAN FOOTPRINT TO GROW IN ‘NEXT30’ COUNTRIES Pursuing profitable growth in new markets ▸ India: export and low cost, high value service hub ▸ China: leverage industry-leading supplier network ▸ Leverage full Daimler Truck portfolio for best local customer-fit ▸ Focus resources on high po
Slide 35: Set up for success in China
SET UP FOR SUCCESS IN CHINA The time has come for 1st fully localized world-class Mercedes-Benz technology in China GROWTH OPPORTUNITY THE PATH AHEAD INCREASED SIZE OF OUR TARGET SEGMENT NEW GAME-CHANGER FOR GROWTH ADVANCED TRUCK SEGMENT ▸ SoP Q4 2022 with very high localization ~2% ~20% ▸ World-cla
Slide 36: Technology: Leading the way to zero emissions
TECHNOLOGY LEADING THE WAY TO ZERO EMISSIONS Andreas Gorbach
Slide 37: Technology will drive our customers' future success
TECHNOLOGY WILL DRIVE OUR CUSTOMERS’ FUTURE SUCCESS Maximizing return on truck investment KEY TECHNOLOGIES VEHICLE & SERVICES PROPULSION SYSTEM OPERATING SYSTEM/ VEHICLE SERVICES/ AUTONOMOUS DIGITIZATION
Slide 38: Convictions driving our propulsion system strategy
CONVICTIONS DRIVING OUR PROPULSION SYSTEM STRATEGY WE WILL WE ARE COMMITTED WE WILL MOVE RAMP DOWN TO BOTH BEV & RAPIDLY TO WIN CURRENT ICE HYDROGEN THE PROPULSION POWERTRAIN SOLUTIONS TECHNOLOGY RACE Manage the ICE ramp- BEV and FCEV We have the right down while staying are complementary and levers
Slide 39: ICE rampdown: actively managing the end of an era
ICE RAMPDOWN: ACTIVELY MANAGING THE END OF AN ERA Partnering, scaling and ramp down of investment OUR STRATEGIC LEVERS TRANSITION TO ZEV WITHIN NEXT 10-15 YEARS PARTNERING STAGE 1: initiated for MEDIUM DUTY engines with Cummins DIFFERENCES BY USE CASE, DISTANCE AND PARTNERING STAGE 2: VEHICLE CLASS
Slide 40: The transition to ZEV
THE TRANSITION TO ZEV High potential variability in timing – but we are ready for any outcome DT KEY 2030 ASSUMPTIONS TCO OUTCOMES UP TO 60% ZEV ▸ Governmental support incl. ▸ Parity for BEV 100% 100% carbon pricing & infrastructure possible after 2025 ICE ZEV ▸ Zero emission PT cost driven ▸ Parity
Slide 41: ZEV technology: both BEV and hydrogen will be needed
ZEV TECHNOLOGY: BOTH BEV AND HYDROGEN WILL BE NEEDED Three key factors drive our dual strategy COST PER RANGE: ENERGY DENSITY/CHARGING: GLOBAL ENERGY ECOSYSTEM: “THESE LINES MUST CROSS” “THESE LINES NEVER CROSS” “WILL BE ESTABLISHED ANYWAY” BEV (cell volume) ENERGY 3-15 x COST FCEV DENSITY 50-100 x
Slide 42: We will move rapidly to win the propulsion race
WE WILL MOVE RAPIDLY TO WIN THE PROPULSION RACE Committed to offering the strongest ZEV portfolio across all key segments and regions 2021 2020 2022 2018 2024 2027 2021 2022 2022 2017
Slide 43: BEV technology – ready to go
BEV TECHNOLOGY – READY TO GO New BEV trucks about to hit the market; next-gen technology will leap further CURRENT NEXT-GEN BEV BEV 500 km 800 km RANGE +60% ~1,3 kwh/km ~1,0 kwh/km EFFICIENCY -25% VARIABLE - 40% COST 425kW 700kW ~2MW CHARGING +170% Targeted performance gains
Slide 44: Accelerating BEV technology
ACCELERATING BEV TECHNOLOGY Key announcements today DAIMLER TRUCK DAIMLER TRUCK DAIMLER TRUCK DAIMLER TRUCK E-DRIVE DEVELOPMENT BATTERY SYSTEM RAPID CHARGING NEXT-GEN E-TRUCK R&D NEW CATL – DT DT CHARGING NEXT GEN IN-HOUSE ENHANCED CELL TECHNOLOGY ULTIMATE BEV EXPERTISE PARTNERSHIP WITH PARTNERS TRU
Slide 45: Expanded battery partnership with CATL
ANNOUNCING AN EXPANDED BATTERY PARTNERSHIP WITH CATL Joint development of sophisticated truck-focused batteries and supply agreed beyond 2030 ▸ CATL to supply batteries for Mercedes-Benz eActros LongHaul truck starting 2024 ▸ Supply secured beyond 2030 ▸ Truck dedicated: Superior ultra-long cycle li
Slide 46: Building high-power charging in North America and Europe
BUILDING HIGH-POWER CHARGING IN NORTH AMERICA AND EUROPE Our plan: supporting customers and kick-starting charging infrastructure NORTH AMERICA WITH POWER ELECTRONICS EUROPE WITH SIEMENS AND ENGIE/EVBOX ▸ 350kW coverage across our key markets ▸ Daimler developed, intelligent charging management ▸ On
Slide 47: Hydrogen at the center of our ZEV strategy
HYDROGEN AT THE CENTER OF OUR ZEV STRATEGY GenH2 Truck with strong range and cost ambitions 2027 GENH2 TRUCK AMBITIONS ARE SET ~1200 km RANGE 24 t PAYLOAD 15 min REFUELING TIME today 2030 FC COST - 90%
Slide 48: Accelerating FCEV technology
ACCELERATING FCEV TECHNOLOGY Our key partnerships to deliver the future of hydrogen-powered transport FUEL CELL LIQUID HYDROGEN HYDROGEN NEW HYDROGEN SYSTEMS REFUELING INDUSTRY PUSH CORRIDOR LAUNCHED CELLCENTRIC LINDE GROUP H2ACCELERATE SHELL “Develop, produce and “Jointly develop “Expedite mass mar
Slide 49: European hydrogen corridor with Shell
ANNOUNCING A EUROPEAN HYDROGEN CORRIDOR WITH SHELL Kick-starting infrastructure with Rotterdam-Hamburg-Cologne DAIMLER AND SHELL KICK-START H2 REVOLUTION ▸ Technical and development collaboration Hamburg ▸ ~1,200km freight corridor in place by 2025 Rotterdam ▸ Shell to build H2 stations along corrid
Slide 50: Technology will drive our customers' future success
TECHNOLOGY WILL DRIVE OUR CUSTOMERS’ FUTURE SUCCESS Maximizing return on truck investment KEY TECHNOLOGIES VEHICLE & SERVICES PROPULSION SYSTEM OPERATING SYSTEM/ VEHICLE SERVICES/ AUTONOMOUS DIGITIZATION
Slide 51: Operating system at the core of the vehicle
OPERATING SYSTEM AT THE CORE OF THE VEHICLE Software architecture as platform for our next generation trucks and service offerings WHAT BENEFITS BENEFITS WE DO FOR CUSTOMERS FOR US ▸ Uptime: less and more ▸ Drive service ▸ In-house development efficient workshop revenues and of core elements visits
Slide 52: Redundant Cascadia and autonomous driving technology
REDUNDANT CASCADIA AND AUTONOMOUS DRIVING TECHNOLOGY Clear target: industry leading autonomous technology with our dual-track strategy WHAT WE DO BENEFITS FOR CLIENTS BENEFITS FOR US ▸ Global partnership ▸ Waymo’s industry- ▸ Strengthening of market between industry leading autonomous position gener
Slide 53: Our mission as an independent company is clear
OUR MISSION AS AN INDEPENDENT COMPANY IS CLEAR RESET PROFITABILITY LEAD THE WAY TO ZERO EMISSIONS ▸ Intense focus on fixing Europe ▸ Seek cost and performance leadership ▸ Target profit benchmarks in each region ▸ Dual-track BEV and FCEV strategy ▸ No excuses: every region must deliver ▸ Refocusing