Mercedes-benz Group Ag · XETR:MBG
Mercedes-benz — Daimler — Debt Investor Presentation (April 2020)
61 slides from Mercedes-benz's debt investor presentation, Apr 29, 2020
Slide 1: Daimler AG Fixed Income Presentation Q1 2020
Capital Market Presentation Q1 2020 DAIMLER AG FIXED INCOME PRESENTATION Q1 2020
Slide 2: Daimler AG Q1 2020
I.I. DaimlerAG DAIMLER AGQ1-2020 2019 Daimler AG Fixed Income Presentation Q1 2020 / April 29, 2020 2
Slide 3: Daimler Q1 2020 Key Topics
DAIMLER Q1 2020 KEY TOPICS Q1 in line with our expectations Significant decline in all markets caused by COVID-19 pandemic Strict actions taken to safeguard employees Immediate measures taken to preserve cash and safeguard financial flexibility Shutdown of production in almost all plants with short-
Slide 4: Daimler Q1 2020 Key Figures
DAIMLER Q1 2020 KEY FIGURES Unit sales Revenue EBIT EBIT adjusted in thousands of units in billions of euros in billions of euros in billions of euros 774 39.7 2.8 2.3 37.2 644 -17% -6% -78% -69% 0.7 0.6 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Net profit Earnings per share Fr
Slide 5: Daimler Financial Framework
DAIMLER FINANCIAL FRAMEWORK Equity & debt markets DAIMLER Dividend Funding MERCEDES-BENZ DAIMLER TRUCK DAIMLER MOBILITY (Subgroup) (Subgroup) (Subgroup) ▸ CAPITAL MARKET ACCESS ▸ GROUP FUNDING AND LIQUIDITY MANAGEMENT ▸ CAPITAL STRUCTURE ▸ CAPITAL ALLOCATION ▸ SET AND MONITOR PERFORMANCE TARGETS ▸ D
Slide 6: Net Industrial Liquidity
DAIMLER Q1 2020 NET INDUSTRIAL LIQUIDITY in billions of euros Free cash flow industrial business Q1 2020: minus €2.3 billion 11.0 -1.7 -0.1 -0.1 -2.3 +0.6 9.3 +1.9 Net industrial Earnings and Working Investments in Additions to Depreciation and Other Net industrial liquidity other cash capital impac
Slide 7: Development of Gross Industrial Liquidity
DAIMLER Q1 2020 DEVELOPMENT OF GROSS INDUSTRIAL LIQUIDITY in billions of euros Financial Services Industrial Business 27.6 -2.3 +1.3 -1.9 +3.3 -5.8 3.9 -1.5 +3.2 +0.3 24.1 3.2 23.7 20.8 Gross Free cash flow Free cash flow Other debt ABS New ABS Bond New bonds FX and Gross liquidity industrial Daimle
Slide 8: Financial Flexibility Over a 12-Month Period
DAIMLER Q1 2020 FINANCIAL FLEXIBILITY OVER A 12-MONTH PERIOD in billions of euros 68 Credit facility of €12 billion as of April 1 56 Other, incl. 54 finance lease Net industrial liquidity at €9.3 billion continues to be at a Commercial comfortable level ABS paper potential Gross industrial liquidity
Slide 9: 2020 Outlook Assumptions for Automotive Markets
2020 OUTLOOK ASSUMPTIONS FOR AUTOMOTIVE MARKETS CAR MARKETS Global significant decrease Europe significant decrease USA significant decrease China significant decrease VAN MARKETS EU30 significant decrease USA significant decrease HEAVY-DUTY North America significant decrease TRUCK MARKETS EU30 sign
Slide 10: 2020 Outlook Guidance
2020 OUTLOOK GUIDANCE GROUP SALES Daimler Group Below the prior-year level REVENUE Daimler Group Below the prior-year level EBIT Daimler Group Below the prior-year level FREE CASH FLOW Industrial business Below the prior-year level INVESTMENT IN PP&E Daimler Group Below the prior-year level R&D EXPE
Slide 11: Looking Forward
DAIMLER Q1 2020 LOOKING FORWARD Comprehensive set of countermeasures implemented to counteract top-line decline Ready to ramp-up and capture opportunities Fully committed to CO2 plans and electrification plans Fully committed to transformation plans Daimler AG Fixed Income Presentation Q1 2020 / Apr
Slide 12: Divisional Review
I. II. Daimler AGREVIEW DIVISIONAL 2019 Q1-2020 Daimler AG Fixed Income Presentation Q1 2020 / April 29, 2020 12
Slide 13: Mercedes-Benz Cars & Vans Key Topics Q1 2020
MERCEDES-BENZ CARS & VANS KEY TOPICS Q1 2020 Start into the year 2020 was very encouraging before demand dropped due to COVID-19 pandemic Encouraging sales development in March in China and South Korea Our attractive products are in strong demand, especially GLE and GLS Focus on xEV ramp-up Digital
Slide 14: Mercedes-Benz Business Recovery in China
MERCEDES-BENZ BUSINESS RECOVERY IN CHINA Open MB dealerships Production volume in % in % vs. operational planning 99 100** 113 ** 74 74 29 0* Jan 20 Feb 20 Mar 20 Apr 20 Jan 20 Feb 20 Mar 20 Apr 20 Showroom traffic Unit sales in % vs. prior year in % vs. prior year ** 97 100 90 74 29 21 Jan 20 Feb 2
Slide 15: Mercedes-Benz Cars & Vans Key Figures
MERCEDES-BENZ CARS & VANS KEY FIGURES Unit sales Revenue EBIT adjusted CFBIT in thousands of units in billions of euros in millions of euros in millions of euros 652 24.1 23.2 1,372 547 -16% -4% -56% 603 -835 -1,729 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Daimler AG Fixed Inc
Slide 16: Mercedes-Benz Cars & Vans EBIT and ROS
MERCEDES-BENZ CARS & VANS EBIT AND ROS Favorable model mix Contribution of the smart brand into smart Automobile Co., Ltd. in millions of euros Charges related to product portfolio review in Q1 2019 Valuation effects due to interest increases Lower unit sales Gross profit -962 Expenses for enhanced
Slide 17: Mercedes-Benz Cars & Vans Reconciliation from EBIT to CFBIT
MERCEDES-BENZ CARS & VANS RECONCILIATION FROM EBIT TO CFBIT Q1 2020 in millions of euros +128 -118 510 -2,113 +1,614 -1,750 -1,281 -1,729 448 EBIT Change in Net financial Net investments Depreciation and Other CFBIT Adjustments CFBIT Q1 2020 working capital investments in pp&e and amortization/ Q1 2
Slide 18: Daimler Trucks & Buses Key Topics Q1 2020
DAIMLER TRUCKS & BUSES KEY TOPICS Q1 2020 Headwinds in all major markets, with expected market declines in North America and Europe Progressive implementation of the announced restructuring measures Immediate and consistent COVID-19 crisis management with a production ramp-up since April 21 Signed a
Slide 19: Daimler Trucks & Buses Key Figures
DAIMLER TRUCKS & BUSES KEY FIGURES Incoming orders* Unit sales Revenue EBIT adjusted CFBIT in thousands of units in thousands of units in billions of euros in millions of euros in millions of euros 110 121 10.2 553 93 98 8.7 -85 -15% -20% -14% -55% 247 -232 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1
Slide 20: Daimler Trucks & Buses EBIT and ROS
DAIMLER TRUCKS & BUSES EBIT AND ROS Cost improvements in all functional areas partly related to COVID-19 pandemic Lower material costs partly related to raw material in millions of euros Positive valuation effects, e.g. changes in discount rates Significantly lower unit sales, esp. in North America
Slide 21: Trucks & Buses Reconciliation from EBIT to CFBIT
DAIMLER TRUCKS & BUSES RECONCILIATION FROM EBIT TO CFBIT Q1 2020 in millions of euros 247 -129 +333 -341 -9 -186 -85 EBIT Change in Net financial Net investments Depreciation and Other CFBIT Q1 2020 working capital investments in pp&e and amortization/ Q1 2020 intangible assets impairments Daimler A
Slide 22: Daimler Mobility Key Topics Q1 2020
DAIMLER MOBILITY KEY TOPICS Q1 2020 Decrease in new business due to COVID-19 pandemic Q1 EBIT positive despite significant increase of credit risk provisions in anticipation of economic downturn with rising delinquencies Immediate measures implemented to react to the effects of the crisis, including
Slide 23: Daimler Mobility Key Figures
DAIMLER MOBILITY KEY FIGURES New business Contract volume EBIT adjusted in billions of euros in billions of euros in millions of euros 17.3 162.8 159.6 491 16.2 -7% -2% -88% 58 Q1 2019 Q1 2020 12/31/2019 3/31/2020 Q1 2019 Q1 2020 Daimler AG Fixed Income Presentation Q1 2020 / April 29, 2020 / Page 2
Slide 24: Daimler Mobility EBIT and ROE
DAIMLER MOBILITY EBIT AND ROE in millions of euros Implemented cost-saving measures Consideration of worsening macroeconomic outlook results in higher cost of credit risk Merger of mobility services of Daimler and BMW in Q1 2019 1,209 -718 RoE: 35.7% Gross profit -449 491 +2 -448 RoE: 14.5% RoE: 1.6
Slide 25: Group EBIT
DAIMLER Q1 2020 GROUP EBIT in millions of euros 2,798 -488 2,310 -769 • M&A -718 • Legal proceedings +123 • Restructuring measures +107 -306 -433 -83 719 -102 617 • Legal proceedings -102 EBIT Adjustments EBIT Mercedes-Benz Daimler Daimler Reconciliation EBIT Adjustments EBIT Q1 2019 adjusted Cars &
Slide 26: Reconciliation from CFBIT to Free Cash Flow
DAIMLER Q1 2020 RECONCILIATION FROM CFBIT TO FREE CASH FLOW in millions of euros -1,729 -85 -1,862 -431 +16 -87 -2,316 454 CFBIT CFBIT Income Interest Other Free cash flow Adjustments Free cash flow Mercedes-Benz Daimler taxes paid paid reconciling (IB) (IB) Cars & Vans Trucks & Buses items adjusted
Slide 27: Funding
I. III. Daimler AG 2019 FUNDING Daimler AG Fixed Income Presentation Q1 2020 / April 29, 2020 27
Slide 28: One Face to the Market
ONE FACE TO THE MARKET Daimler’s business model is based on a central liquidity and risk management Guarantor for all debt Funding Support by Daimler AG Credit Support via DPLTA* from Mercedes-Benz AG and Daimler Truck AG Daimler Mobility AG Daimler Iambition Mercedes Daimler Truck (Subgroup) Benz A
Slide 29: Daimler Follows a Prudent Financial Policy
DAIMLER FOLLOWS A PRUDENT FINANCIAL POLICY Financial Stability Dividend Balanced Pensions: policy approach keeping Focus on • 40% pay-out between No share ratio* funded ratio at strict liquidity shareholder buybacks • Dividend should high level management be covered by interest and planned (currentl
Slide 30: Our Funding Strategy Is Built on Strict Principles
OUR FUNDING STRATEGY IS BUILT ON STRICT 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 Maximizing K
Slide 31: New Corporate Structure but No Change to 'One Credit' Approach
NEW CORPORATE STRUCTURE BUT NO CHANGE TO ‘ONE CREDIT’ APPROACH / FINANCIAL RISK STEERING ON GROUP LEVEL DPLTAs between Daimler AG and Mercedes-Benz AG, Daimler Truck AG and Daimler Mobility AG as centerpiece of the DPLTA* new structure from a financing perspective Maintains access to all operati
Slide 32: Sustainable Portfolio at Daimler Mobility
SUSTAINABLE PORTFOLIO AT DAIMLER MOBILITY Wholesale 163 160 154 140 Loan 133 117 Lease 99 Others 84 80 72 74 Trucks 72 71 Portfolio 62 Buses (in bn €) 58 48 Vans 38 41 Acquisitions 34 (in bn €) 16 Passengers Cars 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1-2020 Daimler AG Fixed Income Presentati
Slide 33: Daimler Mobility Business Model: Credit Management and Refinancing
DAIMLER MOBILITY BUSINESS MODEL BASED ON STRINGENT CREDIT MANAGEMENT AND SOLID REFINANCING Net credit losses as a percentage of portfolio, subject to credit risk Net credit losses still on a very favorable level, not yet showing any COVID-19 impacts; nevertheless, already high demand of payment defe
Slide 34: Maturity Profile Further Lengthened
MATURITY PROFILE FURTHER LENGTHENED in billions of EUR as of 31 March 2020 18.5 0.0 Bonds Issued in 2020 Bond Maturities 13.9 0.8 12.0 9.5 18.5 1.5 7.0 13.2 4.2 3.6 8.0 3.0 3.1 0.1 2.1 2.4 3.8 3.4 1.4 1.3 0.4 0.5 0.9 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2034 2037 Daimler AG Fi
Slide 35: EUR 12bn Bridge Facility Signed
EUR 12BN BRIDGE FACILITY SIGNED EUR 12bn bridge facility signed to cover mainly volatility and uncertainty in capital markets Tenor one year, two extension options of six months each Quick reaction on current crisis secured additional liquidity buffer in high speed Additionally, EUR 11bn Backup Faci
Slide 36: Financing Liabilities Show a Diversified Funding Mix
FINANCING LIABILITIES SHOW A DIVERSIFIED FUNDING MIX in billions of EUR Fin. Lease (IFRS 16) Acc. Deposits Other (ex Fin. Lease) Bank Loans Com. Paper Bonds ABS 161.8 158.3 0.0 4.2 4.2 145.0 1.8 1.7 2.0 13.9 15.8 127.4 0.0 12.5 2.8 3.3 2.7 13.1 117.6 0.0 2.0 12.9 11.0 11.8 1.0 1.0 10.6 1.7 11.5 39.8
Slide 37: Balanced Mix of Funding Instruments
TO ENSURE SUSTAINABLE PORTFOLIO GROWTH, WE MITIGATE RISK AND VOLATILITY THROUGH A BALANCED MIX OF FUNDING INSTRUMENTS Capital Markets Strengthen our global footprint and use market opportunities Other Fin. Lease (IFRS 16) 1% 3% Deepen our excellent Bank Loans bank relationships Bank loans 20% Bank l
Slide 38: Development to Global Capital Market Funding
CONSEQUENT DEVELOPMENT TO GLOBAL CAPITAL MARKET FUNDING - DIVERSIFICATION WILL CONTINUE Canada EMTN Domestic Bonds Euro Market ABS EMTN Program Korea CP Italian domestic Domestic Bond Prog. Hungarian domestic EUR CP Program ABS China USA Japan Turkey Domestic Bonds 144a / RegS PP Domestic CP ABS CP
Slide 39: Funding Base Further Diversified to a Global Set-up
FUNDING BASE FURTHER DIVERSIFIED TO A TRUE GLOBAL SET-UP in billions of EUR 158,3 3% 1% 10% 2% Currency Volume % 8% EUR 37,2 45% USD 29,2 36% CNY 4,4 5% 24% GBP 3,5 4% CAD 2,3 3% Currency Volume % ZAR 1,5 2% EUR 19,5 66% KRW 0,8 1% USD 7,8 27% MXN 0,6 1% Fin. Lease (IFRS 16) 0% ZAR 0,8 3% AUD 0,5 1%
Slide 40: Financial KPIs Set to Support a Strong Rating
DAIMLER‘S FINANCIAL KPIS SET TO SUPPORT A STRONG RATING Agency Long-term Outlook Short-term S&P: BBB+ Negative A-2 Moody’s: A3 Under review P-2 Current ratings: Fitch: BBB+ Stable F1 DBRS: A Under review R-1 (low) Scope: A Stable S-1 Daimler AG Fixed Income Presentation Q1 2020 / April 29, 2020 40
Slide 41: Contributions Stabilized Pension Funded Ratio
IN LOW INTEREST RATE ENVIRONMENT HIGH CONTRIBUTIONS STABILIZED FUNDED RATIO 14 11,5 12 9,8 10 8,6 8,4 7,8 7,5 in EUR bn 8 7,4 6 4,5 6,2 Significant contributions of 4 3,4 2,2 3,1 2,4 3,7 EUR 16.6bn since 2010 2,0 1,9 2 0,3 1,1 0,5 0,7 0,7 0,1 support the solid capital 0 2010 2011 2012 2013 2014 20
Slide 42: Sustainability
I. IV. Daimler AG 2019 SUSTAINABILITY Daimler AG Fixed Income Presentation Q1 2020 / April 29, 2020 42
Slide 43: Our Sustainable Business Strategy
OUR SUSTAINABLE BUSINESS STRATEGY 43
Slide 44: Mercedes Benz Cars & Vans - Our Ambition & Targets
Mercedes Benz Cars & Vans - Our ambition & targets Ambition 2039 - CO2 neutrality for our new car fleet by 2039: This applies to all the stages of the value chain – from the supply chain to production, the vehicle use phase, and vehicle disposal and recycling. At Mercedes-Benz Vans we have set o
Slide 45: Daimler AG Fixed Income Presentation Q1 2020 / April 29, 2020 45
Daimler AG Fixed Income Presentation Q1 2020 / April 29, 2020 45
Slide 46: Mercedes-Benz Electrifying Our Entire Portfolio
MERCEDES-BENZ ELECTRIFYING OUR ENTIRE PORTFOLIO ▸ COMPREHENSIVE ROLL-OUT OF 48 VOLT TECHNOLOGY ▸ >20 NEW XEV LAUNCHES UNTIL 2022 2019 2020 2021 Gradual ~2% xEV share ~9% xEV share ~15% xEV share xEV increase Daimler AG Fixed Income Presentation Q1 2020 / April 29, 2020 46
Slide 47: Daimler Trucks & Buses - Our Ambition & Targets
Daimler Trucks & Buses - Our ambition & targets We aim to offer only new vehicles that are CO2-neutral in driving operation (“tank-to-wheel”) in the triad of Europe, Japan, and NAFTA by 2039. We plan to have a vehicle portfolio comprising series-produced vehicles with battery-electric drive syst
Slide 48: Daimler AG
Daimler AG
Slide 49: Trucks Alternative Powertrain Solutions to Reduce Emissions
DAIMLER TRUCKS ALTERNATIVE POWERTRAIN SOLUTIONS TO REDUCE EMISSIONS CO2 baseline setting ~ 1.1% p.a. -15% -30% ~ 2.7% p.a. Fuel cell BEV 1996 2016 2019 MB SK MB Actros Actros V 1996 2016 2019 2025 2030 49 Daimler AG 49
Slide 50: Additional Financial Slides
I. V. Daimler AG ADDITIONAL 2019 FINANCIAL SLIDES Daimler AG Fixed Income Presentation Q1 2020 / April 29, 2020 50 50
Slide 51: Q1 2020 Revenue by Divisions
DAIMLER Q1 2020 REVENUE BY DIVISIONS in billions of euros Q1 2019 Q1 2020 % change Daimler Group 39.7 37.2 -6 of which Mercedes-Benz Cars & Vans 24.1 23.2 -4 Daimler Trucks & Buses 10.2 8.7 --14 Daimler Mobility 6.9 7.1 +3 Daimler AG Fixed Income Presentation Q1 2020 / April 29, 2020 / Page 51
Slide 52: Q1 2020 Revenue by Regions
DAIMLER Q1 2020 REVENUE BY REGIONS in billions of euros Q1 2019 Q1 2020 % change Daimler Group 39.7 37.2 -6 of which Europe 16.6 15.3 -8 of which Germany 6.4 5.9 -7 North America 11.6 11.1 -4 of which United States 10.1 9.9 -3 Asia 9.0 8.6 -4 of which China* 4.4 3.8 -13 Other markets 2.5 2.1 -15 * e
Slide 53: Q1 2020 EBIT by Divisions
DAIMLER Q1 2020 EBIT BY DIVISIONS EBIT in millions of euros; RoS/RoE in % Q1 2019 Q1 2020 EBIT RoS/RoE* EBIT RoS/RoE* Daimler Group 2,798 4.8 617 1.9 of which Mercedes-Benz Cars & Vans 1,143 4.8 510 2.2 Daimler Trucks & Buses 553 5.4 247 2.8 Daimler Mobility 1,209 35.7 58 1.6 Reconciliation -107 – -
Slide 54: Q1 2020 Adjustments Affecting EBIT
DAIMLER Q1 2020 ADJUSTMENTS AFFECTING EBIT in millions of euros Mercedes-Benz Cars & Vans Q1 2019 Q1 2020 Legal proceedings and related measures 122 93 Restructuring measures 107 – Daimler Mobility M&A transactions -718 – Reconciliation Legal proceedings and related measures 1 9 Daimler AG Fixed Inc
Slide 55: Q1 2020 EBIT Adjusted by Divisions
DAIMLER Q1 2020 EBIT ADJUSTED BY DIVISIONS EBIT adjusted in millions of euros; RoS/RoE adjusted in % Q1 2019 Q1 2020 EBIT RoS/RoE EBIT RoS/RoE adjusted adjusted* adjusted adjusted* Daimler Group 2,310 5.5 719 2.2 of which Mercedes-Benz Cars & Vans 1,372 5.7 603 2.6 Daimler Trucks & Buses 553 5.4 247
Slide 56: Consolidated Statement of Income (Condensed)
DAIMLER Q1 2020 CONSOLIDATED STATEMENT OF INCOME (CONDENSED) in millions of euros Daimler Group Industrial Business Daimler Mobility Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Revenue 39,698 37,223 32,817 30,122 6,881 7,101 Cost of sales -32,127 -31,512 -26,150 -24,869 -5,977 -6,643 Gross profi
Slide 57: EBIT of the Industrial Business
DAIMLER Q1 2020 EBIT OF THE INDUSTRIAL BUSINESS in millions of euros Mercedes-Benz Daimler Reconciliation Cars & Vans Trucks & Buses Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Revenue 24,063 23,196 10,174 8,744 -1,420 -1,818 Cost of sales -19,214 -19,276 -8,268 -7,325 1,332 1,732 Gross profit 4
Slide 58: Statement of Cash Flows (Condensed)
DAIMLER Q1 2020 STATEMENT OF CASH FLOWS (CONDENSED) in millions of euros Daimler Group Industrial Business Q1 2019 Q1 2020 Q1 2019 Q1 2020 Cash provided by operating activities 620 1,510 860 221 of which: Profit before income taxes 2,623 690 1,416 635 Depreciation and amortization/impairments 1,801
Slide 59: Reconciliation to CFBIT Adjusted
DAIMLER Q1 2020 RECONCILIATION TO CFBIT ADJUSTED in millions of euros Mercedes-Benz Cars & Vans Daimler Trucks & Buses Q1 2019 Q1 2020 Q1 2019 Q1 2020 CFBIT -835 -1,729 -232 -85 Legal proceedings and related measures 79 147 – – Restructuring measures – 301 – – M&A transactions – – – – CFBIT adjusted
Slide 60: Key Balance Sheet and Financial Figures
DAIMLER Q1 2020 KEY BALANCE SHEET AND FINANCIAL FIGURES Daimler Group Dec. 31, 2019 March 31, 2020 Equity ratio 20.8% 20.9% Gross liquidity 27.5 24.1 Funded status of pension obligations -8.4 -7.5 Funding ratio 77% 77% Industrial business Equity ratio 37.5% 37.4% Net liquidity 11.0 9.3 Free cash flo
Slide 61: Statement of Financial Position (Condensed)
DAIMLER Q1 2020 STATEMENT OF FINANCIAL POSITION (CONDENSED) in millions of euros Daimler Group Industrial Business Dec. 31, 2019 March 31, 2020 Dec. 31, 2019 March 31, 2020 Intangible assets 15,978 16,306 15,077 15,409 Property, plant and equipment 37,143 36,905 36,782 36,563 Receivables from financ