Daimler Truck Holding Ag · XETR:DTG
Daimler Truck — FY2023 Earnings Presentation
44 slides from Daimler Truck's earnings presentation, Mar 1, 2024
Slide 1: Annual Results Conference
FY 2023 Annual Results Conference March 1, 2024 Martin Daum, CEO and Interim CFO ISIN: DE 000 DTR0CK8 Bloomberg Ticker: DTG:GR WKN: DTR0CK Reuters Ticker: DTGGe.DE Claus Bässler, Vice President Treasury & Tax, acting Head of Finance & Controlling ADR Program Symbol: DTRUY
Slide 2: FY 2023 Annual Results Conference
FY 2023 Annual Results Conference Business Update 01 Financials 02 Outlook and 03 Transformation Appendix 04 Daimler Truck Holding AG | Annual Results Daimler Truck Group | FY 2023 Annual Results Conference 2 Conference | March 24, 2022
Slide 3: We achieved truly profitable growth in 2023
We achieved truly profitable growth in 2023 1 10 39 61 percent percent percent percent Unit Sales Group Revenue Group EBIT adj. Free Cash Flow growth growth growth Industrial Business growth Daimler Truck Group | FY 2023 Annual Results Conference 3
Slide 4: We achieved record profitability in 2023
We achieved record profitability in 2023 5.5 9.9 billion Euro percent Group EBIT adj. return on sales adj. Industrial Business Daimler Truck Group | FY 2023 Annual Results Conference 4
Slide 5: We are on track to achieve our 2025 margin ambitions
We are on track to achieve our 2025 margin ambitions ROS/ROE adjusted Daimler Trucks Mercedes–Benz Truck IB1 North America Trucks Asia Daimler Buses Financial Services2 2025 ambition in >10% 12% 10% 9% 8% >14% markets 2023 9.9% 12.3% 10.2% 4.7% 4.7% 9.1% 2022 7.7% 10.8% 8.1% 2.6% 0.4% 9.9% 2021 6.1%
Slide 6: We are continuously working on our self-help measures
We are continuously working on our self-help measures SERVICE REVENUE IB FIXED COSTS IB1 CAPEX PPE & R&D GROUP2 in € in € in € >+25% -15% -15% +18% -6% -3% Additional Business Autonomous 2019A 2023A 2025 2019A 2023A 2025 2019A 2023A 2025 AMBITION AMBITION AMBITION ON TRACK WORK IN PROGRESS INVESTMEN
Slide 7: 2023 HD markets in important regions on high levels
2023 HD markets in important regions on high levels units North America3 Class 8 FY23 350,000 300,000 298,695 average 331,423 total market units 250,000 40.0% 39.1% 200,000 SoM1 SoM1 150,000 2018 2019 2020 2021 2022 2023 units EU304 HDT FY23 350,000 300,000 298,183 average 341,585 total market units
Slide 8: FY23 Incoming Orders and Unit Sales
FY23 Incoming Orders and Unit Sales Daimler Truck Group Highlights • Order backlog shows normalization in all regions units 160,000 155,072 • North America: ongoing strong replacement demand for on-highway segment, strong 155,000 demand for new vocational trucks – high quality order book 150,000 • S
Slide 9: FY 2023 Annual Results Conference
FY 2023 Annual Results Conference Business Update 01 Financials 02 Outlook and 03 Transformation Appendix 04 Daimler Truck Holding AG | Annual Results Daimler Truck Group | FY 2023 Annual Results Conference 9 9 Conference | March 24, 2022
Slide 10: FY23 Key Figures Group
FY23 Key Figures Group in million Euro Revenue EBIT EBIT adjusted Free Cash Net Industrial Flow IB Liquidity +10% 55,890 +11% 50,945 8,322 7,530 +39% +48% 5,489 +61% 5,183 3,959 2,811 3,496 1,746 FY22A FY23A Daimler Truck Group | FY 2023 Annual Results Conference 10
Slide 11: FY23 Revenue and EBIT Industrial Business
FY23 Revenue and EBIT Industrial Business in million Euro Industrial Business 53,216 49,186 Trucks North Mercedes-Benz America 23,492 22,039 21,638 20,213 Trucks Asia Daimler Buses 5,278 4,997 7,060 6,499 3,767 3,185 2,887 4,566 2,379 2,199 3,689 1,629 330 214 171 14 Revenue EBIT EBIT adj. Revenue E
Slide 12: FY23 EBIT Group
FY23 EBIT Group + Strong net pricing + Higher unit sales and positive product mix despite ongoing supplier bottlenecks and market decline in Brazil + Strong aftersales business in million Euro − Inflation related cost increases, especially in material costs, and higher personnel costs Industrial Bus
Slide 13: FY23 EBIT Industrial Business
FY23 EBIT Industrial Business in million Euro 199 76 5,278 159 4,997 569 -281 508 581 3,767 3,185 t/o • Restruct. -16 • M&A -264 t/o • Restruct. +224 • M&A +357 FY22 EBIT (IB) Adjustments FY22 EBIT (IB) Trucks North America Mercedes-Benz Trucks Asia Daimler Buses Reconciliation FY23 EBIT (IB) Adjust
Slide 14: FY23 Key Figures Financial Services
FY23 Key Figures Financial Services New Business Penetration Contract EBIT adjusted ROE adjusted in million Euro Rate Volume in million Euro in % in % in million Euro at end of period +20% -0.6 ppts +17% +10% -0.8 ppts 11,267 21.2 20.7 28,277 211 9.9 193 9.1 9,428 24,200 Due to rounding, individual
Slide 15: FY23 Cash Flow Industrial Business
FY23 Cash Flow Industrial Business Net Industrial Liquidity (NIL) at end of Q3/23 Q4/23 in million Euro Cash Conversion 7.7 bn. 8.3 bn. Rate adjusted 1,173 0 0.8 7,685 8,322 -536 4,997 929 3,972 NIL Q3/23 FCF IB Dividend Others/ NIL Q4/23 Payment Buyback -1,400 492 3,303 1,115 252 2,811 -1,413 t/o -
Slide 16: Dividend proposal
Dividend proposal 1.90 Net Profit Earnings per Share Free Cash Flow IB in million Euro in Euro in million Euro +44% +43% +61% 3,971 4.62 2,811 2,763 3.24 1,746 Euro dividend proposal (+46% vs. 2022) FY22A FY23A Daimler Truck Group | FY 2023 Annual Results Conference 16
Slide 17: FY 2023 Annual Results Conference
FY 2023 Annual Results Conference Business Update 01 Financials 02 Outlook and 03 Transformation Appendix 04 Daimler Truck Holding AG | Annual Results Daimler Truck Group | FY 2023 Annual Results Conference 17 17 Conference | March 24, 2022
Slide 18: Market Assumptions 2024
Market Assumptions 2024 Heavy Duty Truck Market1 2024 North America2 280 – 320 k units EU303 260 – 300 k units Assumption The outlook is especially subject to further macroeconomic and geopolitical developments. 1 Source: Company estimate 2 USA, Canada and Mexico 3 European Union, United Kingdom, Sw
Slide 19: Daimler Truck Group/Industrial Business Assumptions 2024
Daimler Truck Group/Industrial Business Assumptions 2024 Group FY 2023 Guidance 2024 Revenue 55.890 bn. € 55 – 57 bn. € EBIT 5.183 bn. € on prior-year level EBIT adjusted 5.489 bn. € on prior-year level R&D cost1 and 2.991 bn. € slight increase Investment IB Unit Sales 526,053 units 490 – 510 k unit
Slide 20: Daimler Truck Segment Assumptions 2024
Daimler Truck Segment Assumptions 2024 Unit Sales ROS/ROE adjusted in thousand units in % FY 2023 Guidance 2024 FY 2023 Guidance 2024 Trucks North 195 180 – 200 12.3 11 – 13 America Mercedes-Benz 159 140 – 160 10.2 8.5 – 10.5 Trucks Asia 161 130 – 150 4.7 3–5 Daimler Buses 26 23 – 28 4.7 5–7 Financi
Slide 21: We consistently work towards our two strategic ambitions
We consistently work towards our two strategic ambitions Lead Lead profitability transformation Daimler Truck Group | FY 2023 Annual Results Conference 21
Slide 22: Continued strong progress in zero-emission trucks and buses
Continued strong progress in zero-emission trucks and buses Orders in 2023 Orders in 2022 2,091 4,598 Sales in 2023 3,443 Sales in 2022 914 Daimler Truck Group | FY 2023 Annual Results Conference 22
Slide 23: New vehicles in Europe, North America and Japan CO2-neutral by 2039
Daimler Truck ambition: New vehicles in Europe, North America and Japan CO2-neutral by 2039 2021 2023 2020 202X 2022 2024 202X 2021 2018 2022 2023 2022 2017 Thomas Built RIZON Freightliner Mercedes-Benz Freightliner Mercedes-Benz Mercedes-Benz Mercedes-Benz Mercedes-Benz Mercedes-Benz Freightliner M
Slide 24: We are making great progress in unlocking our full profit potential
We are making great progress in unlocking our full profit potential 2021 2022 2023 2024 2025 2030 Actual Actual Actual Guidance Ambition* Ambition* 9– 6.1% 7.7% 9.9% >10% >12% 10.5% +40–60% Revenue Growth Group Adjusted Return On Sales Industrial Business * in good (sunny) market conditions Daimler
Slide 25: FY 2023 Annual Results Conference
FY 2023 Annual Results Conference Business Update 01 Financials 02 Outlook and 03 Transformation Appendix 04 Daimler Truck Holding AG | Annual Results Daimler Truck Group | FY 2023 Annual Results Conference 25 25 Conference | March 24, 2022
Slide 26: Q4/22 – Q4/23 Incoming Orders and Unit Sales by Segment
Q4/22 – Q4/23 Incoming Orders and Unit Sales by Segment Trucks North America Mercedes-Benz Trucks Asia Daimler Buses units 51,489 65,734 9,101 51,319 8,761 8,553 44,706 47,735 57,545 8,002 7,628 42,812 50,618 41,915 50,007 48,891 48,256 40,077 40,210 40,097 47,249 39,236 38,052 6,980 6,789 6,181 34,
Slide 27: Q4/22 – Q4/23 IB Performance: Revenue by Segment
Q4/22 – Q4/23 IB Performance: Revenue by Segment in million Euro Daimler Truck Industrial Business Reconciliation 14,211 14,208 13,248 13,173 12,588 -828 -853 -919 -919 -941 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Trucks North America Mercedes-Benz 6,150 5,971 5,992 5,807 5,722 5
Slide 28: Q4/22 – Q4/23 IB Performance: EBIT by Segment
Q4/22 – Q4/23 IB Performance: EBIT by Segment Daimler Truck Industrial Business Reconciliation in million Euro 1,509 1,424 1,323 1,363 1,295 1,173 1,077 1,110 999 876 -66 -87 -95 -107 -104 -103 -112 -147 -148 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 -170 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 adj. ROS 7.0% 8.8% 10.3% 9
Slide 29: Industrial Business: Q4/23 EBIT
Industrial Business: Q4/23 EBIT + Strong net pricing + Favorable effects from warranty + Improved material cost efficiency − Less unit sales and unfavorable product mix in million Euro − Slight decrease in the aftersales business 57 1,509 253 32 -6 -6 1,424 -85 220 -40 124 999 876 EBIT Q4/22 Adjustm
Slide 30: Group: Net Profit 2023
Group: Net Profit 2023 in million Euro 144 5,327 5,183 3,971 -1,355 EBIT FY23 Interest Income/Expense Profit before Income Taxes FY23 Incomes Taxes Net Profit FY23 Due to rounding, individual figures may not add up precisely to the totals shown and percentages presented may not accurately reflect th
Slide 31: Group: Key Topics 2023
Group: Key Topics 2023 • Daimler Truck again with increased unit sales (+1%), despite supplier bottlenecks in important regions. • Incoming orders and order backlog overall decreased due to normalization of demand, while at the same time ZEV units increased significantly. • Strong enforcement of new
Slide 32: Trucks North America: Key Topics 2023
Trucks North America: Key Topics 2023 • 750,000th Truck produced at manufacturing plant in Mt. Holly: a M2 106 delivered to Miller Industries. • FCCC delivered the first electric walk-in van MT50e to Penske Truck Leasing. • Start of Series Production of Freightliner eM2 Battery Electric Trucks, the
Slide 33: Trucks North America: Q4/23 and FY23 EBIT
Trucks North America: Q4/23 and FY23 EBIT in million Euro Q4 728 3 731 155 17 21 718 0 718 Q4/2022 vs. Q4/2023 -16 -33 + Positive pricing + Positive effects from warranty and improved -153 -4 material cost efficiency − Lower sales volume due to supply constraints − Inflation-related cost increases,
Slide 34: Mercedes-Benz: Key Topics 2023
Mercedes-Benz: Key Topics 2023 • Mercedes-Benz celebrates world premiere of gamechanger in long-haul transportation: the battery-electric long-haul eActros 600. This new heavy duty model defines new standards in road freight transport in terms of technology, sustainability, design and profitability
Slide 35: Mercedes-Benz: Q4/23 and FY23 EBIT
Mercedes-Benz: Q4/23 and FY23 EBIT in million Euro Q4 37 55 679 7 638 Q4/2022 vs. Q4/2023 72 230 8 -33 -41 + Strong price realization + Strong aftersales business − Material cost increases 65 302 − Lower Brazilian volume as consequence of Euro 6 237 introduction − Used market normalization EBIT Adju
Slide 36: Trucks Asia: Key Topics 2023
Trucks Asia: Key Topics 2023 • Daimler Truck, Mitsubishi FUSO, HINO and Toyota Motor Corporation conclude an MoU on accelerating development of Advanced Technologies and integrating Mitsubishi FUSO and HINO Motors. • Trucks Asia officially kicked off series production of the new generation eCanter T
Slide 37: Trucks Asia: Q4/23 and FY23 EBIT
Trucks Asia: Q4/23 and FY23 EBIT in million Euro Q4 71 16 Q4/2022 vs. Q4/2023 44 -7 114 0 114 -7 + Positive net pricing -12 + Improvement in aftersales business − FX and inflation-related cost increases 65 2 67 -56 − Decrease in sales volume due to market slowdown especially in Indonesia EBIT Adjust
Slide 38: Daimler Buses: Key Topics 2023
Daimler Buses: Key Topics 2023 • Significantly higher global market demand – European coach segment recovering from low level (at 70% pre-Corona level). • World premiere of the eCitaro fuel cell - the first series-production electric bus with fuel cell as a range extender. • Presentation of newly de
Slide 39: Daimler Buses: Q4/23 and FY23 EBIT
Daimler Buses: Q4/23 and FY23 EBIT in million Euro Q4 12 72 Q4/2022 vs. Q4/2023 27 101 0 101 + Significantly increased sales volume -9 + Improved net pricing -3 -37 + Positive effects from FX -6 − Inflation-related cost increases, especially in 31 46 material and personnel costs 15 EBIT Adjustments
Slide 40: Financial Services: Key Topics 2023
Financial Services: Key Topics 2023 • Portfolio increased by €4 billion (+17%) mainly driven by the retail business in North America and major market ramp-ups in Europe as well as the wholesale business in all regions. • Globally, in 2023 we had an overall balanced credit risk situation, with cost o
Slide 41: Financial Services: Q4/23 and FY23 EBIT
Financial Services: Q4/23 and FY23 EBIT in million Euro Q4 14 50 Q4/2022 vs. Q4/2023 41 + Gross Profit driven by higher volume in all markets 9 + Lower G&A / Selling expenses impacted by office -9 relocation in USA in previous year 28 3 26 24 -2 -15 -10 EBIT Adjustments EBIT Foreign Cost of Risk Vol
Slide 42: Capital Structure
Capital Structure in million Euro Jun 30, 2023 Sep 30, 2023 Dec 31, 2023 Group liquidity Cash and cash equivalents 7,906 9,982 7,067 Marketable debt securities and similar investments 1,621 1,905 1,808 Group Gross Liquidity 9,528 11,888 8,875 Total Financing Liabilities -25,381 -28,406 -26,096 Group
Slide 43: Definition of Guidance Sensitivities
Definition of Guidance Sensitivities Guidance KPI Sensitivities Definition significant decrease below -15.0% slight decrease -15.0% to -5.0% EBIT on prior-year level -5.0% to 5.0% slight increase +5.0% to +15.0% significant increase above +15.0% significant decrease below -15.0% slight decrease -15.
Slide 44: Disclaimer
Disclaimer Forward-looking statements This document contains forward-looking statements that reflect our current views about future events. The words “aim”, “ambition”, “anticipate”, “assume”, “believe”, “estimate”, “expect”, “intend”, “may”, ”can”, “could”, “plan”, “project”, “should” and similar e