Daimler Truck Holding AG · XETR:DTG
Daimler Truck — Non-Deal Roadshow (August 2023)
56 slides from Daimler Truck's roadshow presentation, August 2023
Slide 1: Roadshow Presentation
ROADSHOW PRESENTATION August, 2023 ISIN: DE 000 DTR0CK8 Bloomberg Ticker: DTG:GR WKN: DTR0CK Reuters Ticker: DTGGe.DE
Slide 2: Our Purpose: For All Who Keep the World Moving
OUR PURPOSE: FOR ALL WHO KEEP THE WORLD MOVING We keep our heritage and lay the foundations for the future 2025 2030 TRUCKS WILL REMAIN THE BACKBONE OF OUR ECONOMY WE ARE THE VOICE OF OUR INDUSTRY WE DRIVE THE TRANSFORMATION WITH GREAT ZEV PRODUCTS WE SUPPORT OUR CUSTOMERS WITH THE RIGHT SOLUTIONS D
Slide 3: Transforming for Sustainable Growth
TRANSFORMING FOR SUSTAINABLE GROWTH We deliver our 2025 ambitions and further enhance profit and cash flow by 2030 2025 2030 DELIVER HIGHER PROFITABILITY AND FURTHER UPLIFT INCREASED RESILIENCE, PROFITABILITY AND FREE INCREASE SHAREHOLDER CASH FLOW REWARDS LAY THE FOUNDATION FOR EXECUTE THE OUR TRAN
Slide 4: How We Win
HOW WE WIN We build our foundations on strong strategic pillars & a high-performance culture #1 #2 #3 PROFITABILITY SERVICES ZEV Implementation Build recurring revenue Leverage our scale of our self-help streams, increase with global platforms measures to increase resilience and customer for ICE and
Slide 5: Why Invest in Daimler Truck
WHY INVEST IN DAIMLER TRUCK Capitalize on our strong position and unlock profit and free cash flow potential 1 STRONG POSITION – ALREADY TODAY − Strong brands, teams and cutting edge technologies in all regions − Significant scale to capitalize on commonality and lower costs − Significant investme
Slide 6: Why Invest in Daimler Truck
WHY INVEST IN DAIMLER TRUCK Leading sustainable transformation with cutting-edge technology 4 ACCELERATING SUSTAINABLE AND HIGHLY AUTOMATED TRANSPORTATION − Leading in sustainable transportation with broad ZEV vehicles portfolio in all segments − Unbiased technology strategy for best fit sustainabil
Slide 7: Daimler Truck Global Leadership
1 DAIMLER TRUCK GLOBAL LEADERSHIP Platform, powertrain and system commonality Sales Revenue EBIT adjusted in Units in million Euro in million Euro 1 +14% +28% +55% 520,291 50,945 3,959 455,445 39,764 2,552 2021 2022 #1 #1 #3 #2 #1 GLOBAL LEADER2 NORTH AMERICA Class 6-8 EU-303 MDT/HDT JAPAN Trucks To
Slide 8: Daimler Truck North America: From Strong to Stronger
1 DAIMLER TRUCK NORTH AMERICA: FROM STRONG TO STRONGER On-highway business presents a very clear framework for vocational success LEADING POSITION… 1 …STRONG FOUNDATIONS… ….RIGHT PRODUCT PORTFOLIO 40% Market share2 975k+ Uncompromised CASCADIAS BUILT3 customer focus On-highway #1 On-highway large/me
Slide 9: Mercedes-Benz: Rebuilding Profitability
1 MERCEDES-BENZ: REBUILDING PROFITABILITY Strong market position in key markets and strong product portfolio STRONG MARKET POSITION ACROSS REGIONS … … AND PRODUCT PORTFOLIO KEY MARKETS Brazil 26% market share1 EU 30 21% market share1 HEAVY DUTY TRUCKS #2 BRAND BRAZIL1 #1 BRAND EU-301 Finland Kassel
Slide 10: Daimler Truck Asia: Opportunity and Growth
1 DAIMLER TRUCK ASIA: OPPORTUNITY AND GROWTH Leveraging true Asian footprint and Daimler Truck technology LEADING POSITION… 1 …STRONG FOUNDATIONS… ….LOCALIZED FULL PORTFOLIO Renowned and true Top 3 Japan local brands HEAVY DUTY # 1 Indonesia Balance of markets TRUCKS China Proven recurring 11% Marke
Slide 11: Daimler Buses: Global Market Leader
1 DAIMLER BUSES: GLOBAL MARKET LEADER #1 in all core markets through intense customer focus # 1 IN OUR KEY MARKETS Direct sales, service and spare parts – from one single customer touchpoint EU 30 BRAZIL MEXICO 26% market share1 47% market share1 43% market share1 FULL LINE Covering all segments
Slide 12: Daimler Truck Financial Services Is Scaling Up
1 DAIMLER TRUCK FINANCIAL SERVICES IS SCALING UP Driving deeper customer relationships and contribution to Group’s profit and cash flow Phase 1 Phase 2 Foundation Contract Volume Penetration Rate ‘21 ‘22 ‘23 in billion Euro in % Dec Apr Aug Oct Nov Mar 25 27 22 Ø18 15 North Europe & Asia America Sou
Slide 13: Outlook 2025: We Reaffirm Our Financial Ambitions
2 OUTLOOK 2025: WE REAFFIRM OUR FINANCIAL AMBITIONS Self-help measures build greater resilience in a challenging environment GROW SERVICES KEEP STRICT FOCUS ON FOCUS ON THE RIGHT FIXED COST REDUCTION INVESTMENTS ▸ Translating our long-term ▸ Confirmed relative ambitions ▸ Rightsized investments cust
Slide 14: We Are on Track to Deliver on 2025 Ambition
2 WE ARE ON TRACK TO DELIVER ON 2025 AMBITION ROS of >10% within reach ROS ADJUSTED (in %) TRUCKS NORTH AMERICA MERCEDES-BENZ INDUSTRIAL BUSINESS 11.5 11-13 12.0 10.8 8-10 10.0 8.1 0.4 8.5-10 >10.0 2019A 2022A 2023 2025 2019A 2022A 2023 2025 GUIDANCE AMBITION GUIDANCE AMBITION 7.7 TRUCKS ASIA DAIMLE
Slide 15: Continuously Working on Our Self-Help Measures
2 WE ARE CONTINUOUSLY WORKING ON OUR SELF-HELP MEASURES Services and CapEx PPE & R&D on track, fixed cost ambitions remain key focus SERVICE REVENUE IB FIXED COSTS IB1 CAPEX PPE & R&D GROUP2 - in € - - in € - - in € - Before: >+20% >+25% -15% -15% +15% -8% -12% 2019A 2022A 2025 2019A 2022A 2025 2019
Slide 16: Our Capital Allocation Framework
2 OUR CAPITAL ALLOCATION FRAMEWORK SETS CLEAR USE-OF-CASH PRIORITIES Focus on attractive return while investing in future value creation STRONG OPERATING CASH FLOW ▸ Based on Active Portfolio WITH SOLID BALANCE SHEET AS Management in most attractive KEY PRIORITY businesses ▸ Pivot towards heavy-duty
Slide 17: Introducing Our Share Buyback Program
2 INTRODUCING OUR SHARE BUYBACK PROGRAM Enhanced dividend policy and up to 2 billion € buyback SHARE BUYBACK PROGRAM HIGH & LESS CYCLICAL UP TO 2 BILLION € DIVIDEND PAYOUT 40–60% EXECUTION UP TO TWO TRANCHES Range to maintain a stable dividend level even in tougher market environments DURATION TIME
Slide 18: Fixed Cost Ambitions Remain Key Focus
2 FIXED COST AMBITIONS REMAIN KEY FOCUS Additional measures identified especially at Mercedes-Benz 2019 2020 2021 2022 2023 2024 2025 2026-2030 ∑ -15% FOH REDUCTION IB: -8% -7% MERCEDES-BENZ HEADCOUNT REDUCTION ∼ -3% ACTIVE PORTFOLIO MANAGEMENT E.g. restructuring of MB Brazil, Bus shell production f
Slide 19: We Already Improved Resilience
2 WE ALREADY IMPROVED RESILIENCE – AND THERE IS MORE TO COME Significant increase of resilience in rainy conditions ROS IB ADJUSTED: SIMULATION OF RAINY CONDITIONS SELF-HELP MEASURES >10% HIGHER RECURRENT SERVICE 7.7% 6-7% REVENUES 5.8% 4.0% LOWER CAPEX & R&D SPENDING DESPITE TRANSFORMATION 0.8% LOW
Slide 20: Solid Liquidity & Investment-Grade Rating
2 SOLID LIQUIDITY & INVESTMENT-GRADE RATING We have a rock-solid balance sheet SOLID RATING S&P: BBB+ Moody’s: A3 “Daimler Truck is building a positive track record of margin expansion, owing to ACTUALS ACTUALS efficiency improvements, cost-savings in billion Euro Dec 31, 2022 Jun 30, 2023 measures,
Slide 21: Well-Diversified Funding Mix
2 WELL-DIVERSIFIED FUNDING MIX We successfully issued several bonds supporting the growth of Financial Services MARKETS FUNDING INSTRUMENTS Others1 ABS Balanced financing through capital Japan market instruments, bank loans and selected ABS Mexico Bank Loans Daimler Truck Financial Services busi
Slide 22: Our Funding Strategy Is Built on Strict Principles
2 OUR FUNDING STRATEGY IS BUILT ON STRICT PRINCIPLES Ensuring financial flexibility and independence TARGETING FINANCIAL MAXIMIZING FUNDING MATCHING GLOBAL INDEPENDENCE FINANCIAL FLEXIBILITY BUSINESS NEEDS No dependence on single Keeping prudent amount Liquidity matched markets, instruments, of cash
Slide 23: Higher Profitability and Resilience in 2030
2 ALL THIS CONTRIBUTES TO A HIGHER PROFITABILITY AND RESILIENCE IN 2030 All segments drive 2030 ambition – ROS of >12% in sunny scenario ADJUSTED ROS/ROE - in % - HARDWARE/SERVICES SOFTWARE DTFS TRUCKS FINANCIAL DAIMLER MERCEDES- DAIMLER NORTH TRUCKS ASIA AUTONOMOUS SERVICES TRUCK (IB) BENZ BUSES AM
Slide 24: Focus on Maximizing Our Value Potential
2 FOCUS ON MAXIMIZING OUR VALUE POTENTIAL ROCE as key measure to efficiently deploy capital TRANSPARENT ROCE IB1 AMBITIONS IN ADDITION RETURN ON CAPITAL TO ROS DOES MATTER HIGHER FOCUS ON EVEN MORE IN VALUE CREATION TRANSFORMATIONAL 2022A 2025 2030 TIMES AMBITION AMBITION 29% 45% >50% VALUE CREATION
Slide 25: Performance on Track
3 PERFORMANCE ON TRACK Delivering on our financial targets even in challenging times Q2/23 Key Topics • Daimler Truck and Toyota Motor Corporation sign Memorandum of Understanding on intention to combine businesses of Mitsubishi Fuso Truck and Bus Corporation and Hino Motors • Restructuring of Merce
Slide 26: Q2/23 Financial Figures Daimler Truck Group
3 Q2/23 FINANCIAL FIGURES DAIMLER TRUCK GROUP Increase in Group Revenue, Profit, and Industrial Free Cash Flow Revenue EBIT adjusted EBIT Free Cash Net Industrial in million Euro in million Euro in million Euro Flow IB Liquidity in million Euro in million Euro +15% +28% +41% +25% 13,880 1,378 1,428
Slide 27: Q2/23 Revenue and EBIT Industrial Business
3 Q2/23 REVENUE AND EBIT INDUSTRIAL BUSINESS Increase in Revenue and EBIT adjusted in all segments in million Euro Industrial Business 13,248 11,706 Trucks North Mercedes-Benz America 5,971 5,150 5,553 4,880 Trucks Asia Daimler Buses 1,687 1,546 1,323 1,363 911 940 978 783 873 523 512 544 90 30 33 R
Slide 28: Q2/23 EBIT Group
3 Q2/23 EBIT GROUP EBIT driven by strong pricing, increased sales and favorable mix + Strong net pricing + Significant increase in unit sales and favorable product mix + Improvement in the aftersales business − Inflation related cost increases, especially in material and energy in million Euro Indus
Slide 29: Q2/23 EBIT Industrial Business by Segment
3 Q2/23 EBIT INDUSTRIAL BUSINESS BY SEGMENT Driven by all our segments in million Euro 43 27 1,363 61 1,323 33 -40 260 28 940 911 t/o • Restruct. +6 • M&A -46 t/o • Restruct. +13 • M&A +15 Q2/22 EBIT (IB) Adjustments Q2/22 Trucks North America Mercedes-Benz Trucks Asia Daimler Buses Reconciliation Q
Slide 30: Q2/23 Key Figures Financial Services
3 Q2/23 KEY FIGURES FINANCIAL SERVICES Daimler Truck Financial Services is now live in 16 markets New Business Penetration Contract adjusted EBIT adjusted ROE in million Euro Rate Volume in million Euro in % in % in billion Euro at end of period +6% +5.0% -2.7 ppts -8.5% -3.7 ppts 2,507 21.0% 25.4 7
Slide 31: Q2/23 Cash Flow Industrial Business
3 Q2/23 CASH FLOW INDUSTRIAL BUSINESS FCF adjusted of 0.5 bn. € Net Industrial Liquidity (NIL) at end of Q1/23 Q2/23 in million Euro 7.5 bn. 6.8 bn. 7,526 382 6,827 -1,070 -10 1,323 adjusted Cash Conversion Rate NIL Q1/23 FCF IB Dividend Others NIL Q2/23 0.8 Payment 277 -282 916 -122 -280 114 496 3
Slide 32: Elevating Technology Leadership
4 ELEVATING TECHNOLOGY LEADERSHIP We enable highest customer value creation and highest scale advantage through technology KEEP DIESEL CREATE CUSTOMER VALUE COMPETITIVE AND CLEAN WITH OPTIMIZED TCO CREATE SCALE WITH DECARBONIZE WITH BEV AND H2 COMMONALITY & PARTNERS DIGITALIZE WITH SOFTWARE KEEP THE
Slide 33: Full Range of Zero-Emission Trucks & Buses
4 WE DELIVER: FULL RANGE OF ZERO-EMISSION TRUCKS & BUSES Numerous zero-emission trucks & buses in series production in 2023 2021 2023 2020 202X 2022 2024 2027+ 2021 2018 2022 2023 2022 2017 Thomas Built RIZON Freightliner Mercedes-Benz Freightliner Mercedes-Benz Mercedes-Benz Mercedes-Benz Mercedes-
Slide 34: Using Scale to Build Global Platforms
4 WE USE OUR SCALE TO FREE UP CAPITAL AND BUILD UP GLOBAL PLATFORMS Capitalizing on commonality and partnerships to maximize scale advantage H2 eActros eActros GenH2 eEconic 300/400 600 Truck eCitaro eCitaro fuel cell Chassis Focus on captive high-margin heavy-duty ICE and partnership for medium-dut
Slide 35: Progress in Zero-Emission Trucks and Buses
4 PROGRESS IN ZERO-EMISSION TRUCKS AND BUSES We are ready bringing our vision to the road Orders YTD*/23 Orders YTD*/22 1,280 1,793 Unit Sales YTD*/23 670 Unit Sales YTD*/22 446 * January – June Daimler Truck Group | Roadshow Presentation | August, 2023 35
Slide 36: Emission Regulation and Government Policies Drive Adoption
4 EMISSION REGULATION AND GOVERNMENT POLICIES DRIVE ADOPTION Policymakers on all levels strongly push towards global CO2-neutrality WINNING FORMULA PUSH FOR CO2-NEUTRALITY FACTOR 1 Product Offering x PARIS AGREEMENT & GLOBAL RACE EUROPEAN GREEN DEAL: -55% CO2 FACTOR 2 TO NET ZERO EMISSIONS Infrastru
Slide 37: Dual Strategy with BEV and H2
4 TO DERIVE TARGET TECHNOLOGIES, DIFFERENT PERSPECTIVES ARE REQUIRED Dual strategy with BEV and H2 is the right answer SYSTEM VIEW TECHNICAL VIEW CUSTOMER VIEW INFRASTRUCTURE VIEW All transportation tasks could be solved Depending on customer use cases and ecosystem, A decarbonized world needs both:
Slide 38: Software and Electronics as Powertrain-Agnostic Foundation
4 SOFTWARE AND ELECTRONICS AS POWERTRAIN-AGNOSTIC FOUNDATION Decoupling scalable hardware from differentiating software GENERIC 2024 2030 CUSTOMER VALUE ▸ Improvement of the truck ▸ Improvement of the business system CREATING APPLICATIONS ▸ Roll-out in global portfolio – including CREATING SCALE tru
Slide 39: Roll-Out of Next Evolution Applications Starts in 2024
4 ROLL-OUT OF NEXT EVOLUTION APPLICATIONS STARTS IN 2024 Global electronics hardware platform remains the foundation 2024 2030 CUSTOMER VALUE ▸ Set the industry benchmark with digital human-machine interface (HMI) CREATING ▸ Stay best in class in active safety APPLICATIONS ▸ Boost digital services w
Slide 40: The Vision Is Making the Truck a Programmable Device
4 THE VISION IS MAKING THE TRUCK A PROGRAMMABLE DEVICE Standardized hardware and operating system enable fast product updates and scales 2030 CUSTOMER VALUE PRODUCT AND BUSINESS IMPROVEMENT WITH SOFTWARE CREATING ▸ Potential differentiator no. 1 at zero variable cost ▸ Fully decoupled from hardware
Slide 41: Autonomous with Dual Track Strategy
4 AUTONOMOUS WITH DUAL TRACK STRATEGY Offering our customers maximum flexibility and leading in high-margin business CAPTIVE SOLUTION NON-CAPTIVE SOLUTION Pioneer in heavy-duty Connect trucking industry leaders autonomous technology with autonomous technology Fully integrated pure-play trucking Stro
Slide 42: Torc Is Making Significant Progress
4 TORC IS MAKING SIGNIFICANT PROGRESS On our way to delivering the best-in-class autonomous trucking solution AD-HARDWARE CUSTOMER PILOTS Start of testing with Two on-going pilots with major industry first vehicle platform. U.S. carriers and expanding Finalize production-intent scope to reefer trail
Slide 43: Decarbonization Requires a Transition with Diesel
4 DECARBONIZATION REQUIRES A TRANSITION WITH DIESEL Staying competitive and compliant in a consolidated portfolio CREATING CUSTOMER VALUE CREATING SCALE ▸ Global rollout of latest COMMONALITY generation heavy-duty Diesel ▸ One heavy-duty Diesel platform platform completed – another for all Daimler T
Slide 44: Strategic Partnerships in Key ZEV Technologies
5 STRATEGIC PARTNERSHIPS IN KEY ZEV TECHNOLOGIES Accelerating technological development and sharing costs H2 Initiate pan-European Start public charging Offer Industry-leading Develop dedicated high performance infrastructure across the depot charging truck battery cells public charging U.S. for bat
Slide 45: ZEV: Supporting Charging and Kick-Starting Infrastructure
5 ZEV: SUPPORTING CHARGING AND KICK-STARTING INFRASTRUCTURE Customer support, depot charging solutions, high speed roadside CUSTOMER AND DEPOT CHARGING PUBLIC ROADSIDE CHARGING EUROPEAN H2 INFRASTRUCTURE Daimler Truck charging management European high-performance Germany and charging network J
Slide 46: Our ESG Framework Drives Sustainability Transformation
6 OUR ESG FRAMEWORK DRIVES SUSTAINABILITY TRANSFORMATION We have set clear ambitions and are making good progress ENVIRONMENT SOCIAL GOVERNANCE GREEN PRODUCTS OUR PEOPLE RESPONSIBLE GOVERNANCE We strive for our new trucks and buses We strive to be an employer of choice, and We follow corporate gover
Slide 47: Sustainability: ESG Reporting
6 SUSTAINABILITY: ESG REPORTING Active engagement with ESG rating agencies in order to increase transparency ESG Risk Rating ESG Rating 19.6 A We have the clear ambition to lead the industry’s (as of Nov 27, 2022) (as of Jan 20, 2023) transformation with an uncompromising Low Risk commitment to deli
Slide 48: Path to CO2-Neutral Transport
6 PATH TO CO2-NEUTRAL TRANSPORT Daimler Truck is committed to the Paris Climate Protection Agreement 100% OFFER AMBITION HYDROGEN-POWERED SERIES- OF NEW FOR SECOND PRODUCTION VEHICLES HALF OF THE FUEL-CELL TRUCKS AND BUSES CO2-NEUTRAL IN DECADE DRIVING OPERATION WORLDWIDE H2 by 2022 by 2030 SALES SH
Slide 49: Market Assumptions 2023
MARKET ASSUMPTIONS 2023 Heavy Duty Truck Market1 2023 North America2 290 – 330 k units EU303 300 – 340 k units 1 Source: Company estimate 2 USA, Canada and Mexico 3 European Union, United Kingdom, Switzerland and Norway Update on July 10, 2023 Daimler Truck Group | Roadshow Presentation | August, 20
Slide 50: Daimler Truck Group/Industrial Business Assumptions 2023
DAIMLER TRUCK GROUP/INDUSTRIAL BUSINESS ASSUMPTIONS 2023 Group FY 2022 Guidance 2023 Revenue 50,945 m. € 56 – 58 bn. € EBIT 3,496 m. € significant increase adjusted EBIT 3,959 m. € significant increase Investment 898 m. € slight increase R&D cost1 1,785 m. € slight increase IB Unit Sales Revenue 520
Slide 51: Daimler Truck Segment Assumptions 2023
DAIMLER TRUCK SEGMENT ASSUMPTIONS 2023 Unit Sales adjusted ROS/ROE in thousand units in % FY 2022 Guidance 2023 FY 2022 Guidance 2023 Trucks North 187 190 – 210 10.8% 11 – 13% America Mercedes-Benz 166 155 – 175 8.1% 8 – 10% Trucks Asia 156 160 – 180 2.6% 4 – 6% Daimler Buses 24 20 – 25 0.4% 3 – 5%
Slide 52: Transforming for Sustainable Growth
TRANSFORMING FOR SUSTAINABLE GROWTH Daimler Truck is on a journey with a clear way forward 2023 2025 2030 HOW WE WIN Implementation of 8.5–10% >10% >12% self-help measures ADJUSTED ROS IB ADJUSTED ROS IB ADJUSTED ROS IB Active Portfolio Management UP TO 2 BILLION € +40–60% SHARE BUYBACK REVENUE GROW
Slide 53: Daimler Truck Investor Relations
DAIMLER TRUCK INVESTOR RELATIONS Our team is here to support you Further information is available under www.daimlertruck.com/en/investors Q2 2023 Disclosure Presentation, Annual Report 2022, and our quarterly Factbook are available at the Daimler Truck Investor Relations website Christian Herrma
Slide 54: Upcoming Events, Conferences and Roadshows
DAIMLER TRUCK INVESTOR RELATIONS Upcoming Events, Conferences and Roadshows AUGUST 2023 02.-04. CEO & CFO Roadshow: USA, East Coast & Chicago 07. CEO & CFO Roadshow: Europe, Virtual SEPTEMBER 2023 06. Morgan Stanley CEO Unplugged, London 06. Coba/Oddo CorporateAPRIL 2023 Conference, Frankfurt 07. Je
Slide 55: 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
Slide 56: August, 2023
August, 2023 ISIN: DE 000 DTR0CK8 Bloomberg Ticker: DTG:GR WKN: DTR0CK Reuters Ticker: DTGGe.DE
Daimler Truck Holding — Non-Deal Roadshow (August 2023) on 6ix