Slide 1: Q2 and Half-Year 2018 Results
Q2 and Half-Year 2018 Results July 26, 2018 Q2 and Half-Year 2018 Results / July 26, 2018 /
Slide 2: Contents
Contents Results for Q2 2018 Outlook for 2018 Development at the divisions Daimler AG Q2 and Half-Year 2018 Results / July 26, 2018 / Page 2
Slide 3: Highlights of Q2 2018
Highlights of Q2 2018 Unit sales Revenue – in thousands of units – – in billions of euros – Market launch of the new Mercedes-Benz A-Class 823 833 41.2* 40.8 World premiere of the new A-Class L Sedan and C-Class L Sedan +1% -1% for the Chinese market Market launch of the new Mercedes-Benz Sprinter Q
Slide 4: High level of net liquidity – 50% of dividend payment recovered in H1
High level of net liquidity – 50% of dividend payment recovered in H1 - in billions of euros - Free cash flow industrial business H1 2018: €1.8 billion +2.3 -0.5 +0.0 -3.9 16.6 -0.0 14.5 Net industrial Earnings and Working capital M&A effects Dividend payment Other Net industrial liquidity other cas
Slide 5: Key balance sheet and financial figures
Key balance sheet and financial figures Daimler Group Dec. 31, 2017 June 30, 2018 Equity ratio 24.0% 23.8% Gross liquidity 22.1 24.7 Funded status of pension obligations -4.5 -5.2 Funding ratio 86% 84% Industrial business Equity ratio 46.4% 45.6% Net liquidity 16.6 14.5 Free cash flow (January-June)
Slide 6: Financial flexibility over a 12-month period
Financial flexibility over a 12-month period - in billions of euros - 53.4 The financial flexibility provides support to mitigate risk and volatility 45.4 through a balanced mix of funding instruments and clear principles ABS Other potential Commercial paper Daimler follows a financial management to
Slide 7: 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 8: Units sales by division
Units sales by division Q2 2017 Q2 2018 % change Daimler Group 822.5 833.0 +1 of which Mercedes-Benz Cars 595.2 590.7 -1 Daimler Trucks 116.4 123.9 +6 Mercedes-Benz Vans 103.4 110.9 +7 Daimler Buses 7.5 7.5 +0 in thousands of units Daimler AG Q2 and Half-Year 2018 Results / July 26, 2018 / Page 8
Slide 9: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights World premiere of the Mercedes-Benz A-Class L Sedan for the Chinese market Daimler AG Q2 and Half-Year 2018 Results / July 26, 2018 / Page 9
Slide 10: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights The new long-wheelbase version of the Mercedes-Benz C-Class Sedan celebrated its world premiere at Auto China 2018 Daimler AG Q2 and Half-Year 2018 Results / July 26, 2018 / Page 10
Slide 11: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights Market launch of the new Mercedes-AMG GT S Roadster Daimler AG Q2 and Half-Year 2018 Results / July 26, 2018 / Page 11
Slide 12: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights Market launch of the new Mercedes-Benz G-Class Daimler AG Q2 and Half-Year 2018 Results / July 26, 2018 / Page 12
Slide 13: Mercedes-Benz Cars: product highlights
Mercedes-Benz Cars: product highlights World premiere of the Vision Mercedes-Maybach Ultimate Luxury Daimler AG Q2 and Half-Year 2018 Results / July 26, 2018 / Page 13
Slide 14: Daimler Trucks: product highlights
Daimler Trucks: product highlights Introduction of Freightliner EconicSD in the North American market Daimler AG Q2 and Half-Year 2018 Results / July 26, 2018 / Page 14
Slide 15: Daimler Trucks: product highlights
Daimler Trucks: product highlights Presentation of fully electric Freightliner eCascadia and Freightliner eM2 in the U.S. Daimler AG Q2 and Half-Year 2018 Results / July 26, 2018 / Page 15
Slide 16: Mercedes-Benz Vans: product highlights
Mercedes-Benz Vans: product highlights Range of the new Mercedes-Benz Sprinter Daimler AG Q2 and Half-Year 2018 Results / July 26, 2018 / Page 16
Slide 17: Daimler Buses: product highlights
Daimler Buses: product highlights First orders for fully electrically powered Mercedes-Benz Citaro received already before celebrating world premiere Daimler AG Q2 and Half-Year 2018 Results / July 26, 2018 / Page 17
Slide 18: Daimler Buses: product highlights
Daimler Buses: product highlights World premiere of the Mercedes Benz minibus based on the new Sprinter Daimler AG Q2 and Half-Year 2018 Results / July 26, 2018 / Page 18
Slide 19: Daimler Financial Services: product highlights
Daimler Financial Services: product highlights Launch of the new mobility service SSB Flex in Stuttgart Daimler AG Q2 and Half-Year 2018 Results / July 26, 2018 / Page 19
Slide 20: Daimler Financial Services: highlights Mobility Services
Daimler Financial Services: highlights Mobility Services Ongoing business expansion Ride-Hailing Group Combined YTD 06/18 change* 12.4 12.9 54.6 +68% Interactions in millions 24 17** >80 +18% Cities 3.2 5.0 15.3 +62% Customers in millions * car2go, moovel and Ride-Hailing Group (incl. mytaxi, Beat s
Slide 21: Cooperation Daimler and Bosch: pilot testing city for automated driving in 2019
Cooperation Daimler and Bosch: Californian metropolis will become first pilot testing city for automated driving in 2019 Daimler AG Q2 and Half-Year 2018 Results / July 26, 2018 / Page 21
Slide 22: Revenue by division
Revenue by division Q2 2017* Q2 2018 % change Daimler Group 41.2 40.8 -1 of which Mercedes-Benz Cars 23.6 22.6 -4 Daimler Trucks 9.0 9.2 +2 Mercedes-Benz Vans 3.3 3.5 +6 Daimler Buses 1.2 1.1 -12 Daimler Financial Services 5.9 6.3 +6 Contract volume of Daimler Financial Services** 139.9 146.7 +7 in
Slide 23: Revenue by region
Revenue by region Q2 2017* Q2 2018 % change Daimler Group 41.2 40.8 -1 of which Europe 17.1 17.3 +1 of which Germany 6.2 6.2 +1 NAFTA 11.8 11.5 -2 of which United States 10.1 9.7 -4 Asia 9.7 9.5 -2 of which China** 4.8 4.5 -6 Other markets 2.6 2.5 -5 in billions of euros * adjusted based on new IFRS
Slide 24: EBIT by division
EBIT by division Q2 2017* Q2 2018 - EBIT in millions of euros; RoS/RoE in % - EBIT RoS/RoE** EBIT RoS/RoE** Daimler Group 3,747 9.1 2,640 7.5 of which Mercedes-Benz Cars 2,365 10.0 1,901 8.4 Daimler Trucks 548 6.1 546 5.9 Mercedes-Benz Vans 349 10.5 152 4.3 Daimler Buses 78 6.4 66 6.1 Daimler Financ
Slide 25: Group EBIT in Q2 2018
Group EBIT in Q2 2018 - in millions of euros - 3,747* -257 -278 • Cars -399 -164 • Trucks +113 -38 +24 -394 • Vans +30 • Cars -177 • Buses -1 • Trucks • Vans -109 -3 • Cars • Trucks +111 -31 2,640 • Buses +11 • Vans -223 • Buses -21 • DFS: Toll Collect arbitration -418 • Trucks: Fixed cost optimizat
Slide 26: Contents
Contents Results for Q2 2018 Outlook for 2018 Development at the divisions Daimler AG Q2 and Half-Year 2018 Results / July 26, 2018 / Page 26
Slide 27: Mercedes-Benz Cars and Vans: continued product offensive
Mercedes-Benz Cars and Vans: continued product offensive AMG 4-door Coupe G-Class (upgraded) GLC F-CELL Mercedes-Maybach S-Class Pullman (upgraded) C-Class Sedan (long wheelbase, upgraded) A-Class S-Class Sedan Coupe (upgraded) C-Class A-Class Sedan (upgraded) CLS Sedan (long wheelbase) S-Class C-Cl
Slide 28: 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 29: 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 30: 2018 outlook for EBIT
2018 outlook for EBIT We expect Group EBIT for FY 2018 to be slightly below the prior-year level* based on the following expectations for divisional EBIT: Slightly below the prior-year level Mercedes-Benz Cars Significantly above the prior-year level Daimler Trucks Significantly below the prior-year
Slide 31: Contents
Contents Results for Q2 2018 Outlook for 2018 Development at the divisions Daimler AG Q2 and Half-Year 2018 Results / July 26, 2018 / Page 31
Slide 32: Mercedes-Benz Cars
Mercedes-Benz Cars Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 595 591 23.6* 22.6 2,365* 1,901 -1% -4% -20% Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler AG
Slide 33: Mercedes-Benz Cars: EBIT
Mercedes-Benz Cars: EBIT - in millions of euros - - 464 10.0%** Warranty costs 2,365* 8.4%** Temporarily weaker net pricing Foreign exchange rates 1,901 Higher expenses for new technologies and future products Initiated service activities for diesel vehicles Production shortfall due to a fire at a s
Slide 34: Mercedes-Benz Cars: slight sales decrease due to model change of A- and C-Class
Mercedes-Benz Cars: slight sales decrease due to model change of A- and C-Class - in thousands of units - 595 591 37 36 smart 6 5 Sports Cars 201 208 SUVs 18 19 S-Class 100 107 E-Class 122 118 C-Class 112 97 A-/B-Class Q2 2017 Q2 2018 Daimler AG Q2 and Half-Year 2018 Results / July 26, 2018 / Page 3
Slide 35: Mercedes-Benz Cars: globally balanced sales structure
Mercedes-Benz Cars: globally balanced sales structure with strong development especially in China - in thousands of units - 595 591 97 96 Rest of world 185 168 Europe excl. Germany 85 82 Germany 78 78 United States 150 167 China Q2 2017 Q2 2018 Daimler AG Q2 and Half-Year 2018 Results / July 26, 201
Slide 36: 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 619 488 196 400 171 346 293 150 94 239 147 423 123 317 250 252 146 116 2013 2014 2015 2016 2017 2018 YTD 06 Daimler AG Q2 and Half-Year 2018 R
Slide 37: Daimler Trucks
Daimler Trucks Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 124 9.0* 9.2 548* 546 116 +6% +2% -0% Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler AG Q2 and Half
Slide 38: Trucks: EBIT
Daimler Trucks: EBIT - in millions of euros - -2 6.1%** Higher unit sales especially in the NAFTA region 5.9%** Efficiency enhancements 548* 546 Customer service measures at Mercedes-Benz Trucks in Q2 2017 Higher expenses for raw material Foreign exchange rates Higher costs, mainly related to supply
Slide 39: Trucks: sales increase by 6% mainly driven by Asia and NAFTA region
Daimler Trucks: sales increase by 6% mainly driven by Asia and NAFTA region - in thousands of units - 124 116 11 Rest of world 11 40 Asia 36 7 8 Latin America 42 44 NAFTA region 20 21 EU30* Q2 2017 Q2 2018 * European Union, Switzerland and Norway Daimler AG Q2 and Half-Year 2018 Results / July 26, 2
Slide 40: Trucks: significant increase in incoming orders
Daimler Trucks: significant increase in incoming orders mainly driven by NAFTA region - in thousands of units - 144 11 Rest of world 114 41 Asia 12 8 Latin America 39 7 63 NAFTA region 36 20 21 EU30* Q2 2017 Q2 2018 * European Union, Switzerland and Norway Daimler AG Q2 and Half-Year 2018 Results /
Slide 41: Mercedes-Benz Vans
Mercedes-Benz Vans Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 110.9 3.5 103.4 3.3* 349* +7% +6% -56% 152 Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler AG Q2
Slide 42: Mercedes-Benz Vans: EBIT
Mercedes-Benz Vans: EBIT - in millions of euros - - 197 10.5%** Higher unit sales 349* Higher expenses for new technologies and new products 4.3%** Impacts from the Sprinter model change Initiated service activities for diesel vehicles and 152 delivery delays EBIT EBIT Q2 2017 Q2 2018 * adjusted bas
Slide 43: Mercedes-Benz Vans: sales increase by 7%
Mercedes-Benz Vans: sales increase by 7% due to market success of attractive product portfolio - in thousands of units - 110.9 103.4 51.7 Sprinter 51.2 27.5 Vito 29.3 18.7 V-Class 15.7 5.2 X-Class 7.1 7.7 Citan Q2 2017 Q2 2018 Daimler AG Q2 and Half-Year 2018 Results / July 26, 2018 / Page 43
Slide 44: Daimler Buses
Daimler Buses Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 7.5 7.5 1.2* 78* 1.1 66 +0% -12% -15% Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler AG Q2 and Half-
Slide 45: Buses: EBIT
Daimler Buses: EBIT - in millions of euros - - 12 6.4%** Efficiency enhancements 6.1%** 78* Foreign exchange rates 66 Product mix Inflation-related cost increases EBIT EBIT Q2 2017 Q2 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** Return on sales Daimler AG Q2 a
Slide 46: Buses: higher unit sales in Brazil and India
Daimler Buses: higher unit sales in Brazil and India - in thousands of units - 7.5 7.5 0.9 1.1 Rest of world 1.3 0.9 Latin America (excl. Brazil and Mexico) 2.1 2.5 Brazil 1.0 0.8 Mexico 2.2 2.2 EU30* Q2 2017 Q2 2018 * European Union, Switzerland and Norway Daimler AG Q2 and Half-Year 2018 Results /
Slide 47: Daimler Financial Services
Daimler Financial Services New business Contract volume EBIT – in billions of euros – – in billions of euros – – in millions of euros – 17.9 18.3 139.9 146.7 522 +2% +5% -87% 66 Q2 2017 Q2 2018 12/31/2017 6/30/2018 Q2 2017 Q2 2018 Daimler AG Q2 and Half-Year 2018 Results / July 26, 2018 / Page 47
Slide 48: Financial Services: EBIT
Daimler Financial Services: EBIT - in millions of euros - - 456 18.8%* 522 Higher contract volume Settlement of the Toll Collect arbitration proceedings Higher interest-rate level Foreign exchange rates 2.1%* 66 EBIT EBIT Q2 2017 Q2 2018 * Return on equity Daimler AG Q2 and Half-Year 2018 Results /
Slide 49: Financial Services: further increase in contract volume to 146.7 billion euros
Daimler Financial Services: further increase in contract volume to 146.7 billion euros - in billions of euros - 146.7 139.9 32.4 Africa & Asia-Pacific 29.4 50.7 52.2 Americas 35.6 36.7 Europe (excl. Germany) 24.1 25.3 Germany 12/31/2017 6/30/2018 Daimler AG Q2 and Half-Year 2018 Results / July 26, 2
Slide 50: 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% 0.21% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD * as a percentage of portfo
Slide 51: 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