Slide 1: Fixed Income Presentation Q2 2019
Fixed Income Presentation Q2 2019 07.08.2019
Slide 2: Financial performance in Q2 2019 affected by model changeovers and restraint availability of vehicles
Financial performance in Q2 2019 affected by model changeovers and restraint availability of vehicles Unit sales Revenue Free cash flow (ind. business) in thousands of units in billions of euros in billions of euros 1.8 833 822 40.8 42.7 -1% +5% -3.3 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q1-Q2 2018 Q1-Q2
Slide 3: Net industrial liquidity affected by IFRS 16, dividend payment and industrial free cash flow
Net industrial liquidity affected by implementation of IFRS 16, dividend payment and industrial free cash flow development Free cash flow industrial business H1 2019: minus €3.3 billion 16.3 -3.2 +1.9 -3.5 +3.6 -5.0 13.1 -0.3 -3.5 +0.3 6.6 Net industrial Effects from Net industrial Earnings and Work
Slide 4: Daimler committed to keep a prudent level of Gross Liquidity
Daimler committed to keep a prudent level of Gross Liquidity Gross Group Liquidity (in bn EUR) Net Industrial Liquidity (in bn EUR) Financial Services Industrial Business 25.4 21.7 22.1 4.3 19.7 21.5 18.6 18.2 3.5 3.7 3.1 16.6 16.3 2.8 21.2 18.2 18.4 18.4 6.6 15.4 2015 2016 2017 2018 Q2 2019 2015 20
Slide 5: Financial flexibility over a 12-month period
Financial flexibility over a 12-month period in billions of euros 58,5 Other incl. 1,8 Fin. Lease 3,7 Commercial 50,6 paper The financial flexibility provides support to mitigate risk and volatility through a balanced mix of funding instruments and clear principles ABS 18,1 20,5 Bank loans potential
Slide 6: Daimler follows a prudent Financial Policy
Daimler follows a prudent Financial Policy Clear commitment to a single A rating Balanced approach between shareholder interest and credit providers Dividend policy of 40% target pay-out ratio* depending on supporting cash flows No share buybacks planned Pensions: current funded ratio at 76% *Based
Slide 7: Funding is the base to ensure sustainable portfolio growth at Daimler Mobility
Funding is the base to ensure sustainable portfolio growth at Daimler Mobility 11.7 % CAGR Wholesale 154 156 140 Loan 133 117 Lease 99 Others 80 84 72 Trucks 72 62 71 Portfolio (in bn €) 64 58 Buses 48 38 41 Vans Acquisitions 34 (in bn €) 29 Passengers Cars 2010 2011 2012 2013 2014 2015 2016 2017 20
Slide 8: Our portfolio continues to perform on an excellent level, based on our outstanding acquisition quality
Our portfolio continues to perform on an excellent level, based on our outstanding acquisition quality 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% 0.20% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD Net cr
Slide 9: Our Funding Strategy is built on prudent Principles
Our Funding Strategy is built on prudent 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 Keeping pru
Slide 10: To ensure sustainable portfolio growth, we mitigate risk and volatility through a 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 11: Financing Liabilities with a balanced mix
Financing Liabilities with a balanced mix in billions of EUR Fin. Lease (IFRS 16) Acc. Deposits Other (ex Fin. Lease) Bank Loans Com. Paper Bonds ABS 154.1 145.0 0.0 4.1 2.0 12.7 1.8 127.4 0.0 12.5 2.8 3.7 117.6 0.0 2.0 12.2 11.0 11.8 1.0 1.0 100.6 0.0 10.6 1.7 11.5 1.5 11.6 39.4 39.3 7.4 3.0 10.5 3
Slide 12: Consequent Development to Global Capital Market Funding Diversification will continue
Consequent Development to Global Capital Market Funding Diversification will continue Canada EMTN Domestic Bonds Euro Market ABS Korea CP EMTN Program Italian domestic Domestic Bond Prog. EUR CP Program ABS China USA Japan Turkey Domestic Bonds 144a / RegS PP Domestic Bonds ABS CP Domestic Bonds EMT
Slide 13: Funding base further diversified to a true global set-up
Funding base further diversified to a true global set-up in billions of EUR 154,1 3% 1% 8% 2% 8% 25% Currency Volume % EUR 34,5 43% USD 29,4 37% CNY 3,6 5% Fin. Lease (IFRS 16) 0% CAD 3,1 4% Other 57,3 2% Currency Volume % GBP 3,1 4% Com. Paper 0% EUR 19,5 66% ZAR 1,7 2% 22% KRW 0,8 1% ABS 2% USD 7,
Slide 14: Maturity profile further lengthened
Maturity profile further lengthened in billions of EUR as of 30 June 2019 17.5 0.2 17.1 0.5 Issued in 2019 Maturities 9.8 8.6 17.3 16.6 2.5 5.9 5.1 1.5 0.9 3.7 6.1 2.0 2.2 2.1 1.9 2.1 4.4 4.2 1.3 1.0 0.4 0.8 1.5 0.2 1.3 1.0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2037 Daimle
Slide 15: Project Future – Continuation of the “One Credit” Approach
Project Future – Continuation of the “One Credit” Approach 1 DPLTAs between Daimler AG and new entities as centerpiece of the new structure from a financing perspective DPLTA* Maintains access to all operating cash flows (contingent on up-stream dividend payments to Parent Co’s) 2 Centralized
Slide 16: Solid Rating supports Daimler's Funding
Solid Rating supports Daimler‘s Funding Current ratings: S&P: A negative A-1 Moody’s: A2 negative P-1 Fitch: A- stable F1 DBRS: A stable R-1 (low) Scope: A stable S-1 Daimler target: Sustaining the A rating at all rating agencies Daimler AG Daimler Fixed Income Presentation / Q2 2019 / Page 16
Slide 17: In low Interest Rate Environment high Contributions stabilized Funding Ratio
In low Interest Rate Environment high Contributions stabilized Funding Ratio 14 11.5 12 9.8 10 8.6 8.7 7.8 in EUR bn 8 7.4 6.2 6 4.5 4 3.4 2.2 3.1 2.4 3.7 Significant contributions of EUR 2.0 1.9 2 0.3 1.1 0.5 0.7 0.1 15.9bn since 2010 support the solid 0 2010 2011 2012 2013 2014 2015 2016 2017 20
Slide 18: 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