Slide 1: Daimler AG Roadshow Presentation October 2020
DAIMLER AG ROADSHOW PRESENTATION October 2020
Slide 2: Agenda
AGENDA I. REVIEW Q3 2020 II. OUTLOOK FY 2020 III. STRATEGY I. SUSTAINABILITY II. MERCEDES BENZ CARS & VANS III. DAIMLER TRUCKS & BUSES IV. DAIMLER MOBILITY
Slide 3: Daimler Group Key Topics Q3 2020
DAIMLER GROUP KEY TOPICS Q3 2020 New Mercedes-Benz Cars strategy presented Diesel US settlement: Important step towards legal certainty Right path to reducing break-even Industrial FCF reflects strong business performance and extensive cost and cash preservation measures Issuance of first green bond
Slide 4: Daimler Group Key Topics Q3 2020
DAIMLER GROUP KEY TOPICS Q3 2020 Unit sales Revenue EBIT EBIT adjusted in thousands of units in billions of euros in billions of euros in billions of euros 3.5 3.1 3.1 839 43.3 2.7 773 40.3 -8% -7% +14% +11% Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Net profit Earnings per shar
Slide 5: Net Industrial Liquidity Q3 2020
DAIMLER GROUP NET INDUSTRIAL LIQUIDITY Q3 2020 in billions of euros Free cash flow industrial business Q3 2020: €5.1 billion +2.1 -1.8 +0.6 -0.1 -1.0 +4.3 -0.5 13.1 9.5 Net industrial Earnings and Working Depreciation and Additions to Investments in Dividend Other Net industrial liquidity other cash
Slide 6: Financial Flexibility Over a 12-Month Period
DAIMLER GROUP FINANCIAL FLEXIBILITY OVER A 12-MONTH PERIOD in billions of euros, as of Q3 2020 70,2 Bridge loan facility Other incl. Net industrial liquidity at €13.1 billion continues to be at a solid level 51,7 Fin. Lease ABS potential Commercial Gross industrial liquidity at €29.1 billion paper C
Slide 7: Mercedes-Benz Cars & Vans Key Topics Q3 2020
MERCEDES-BENZ CARS & VANS KEY TOPICS Q3 2020 Positive development of unit sales in third quarter due to recovery of many markets Favorable development in model mix and pricing Indicators of change show operative improvement, e.g. accelerating headcount reduction, fixed cost coming down Electric firs
Slide 8: Business Recovery YTD 09/2020
MERCEDES-BENZ CARS & VANS BUSINESS RECOVERY YTD 09/2020 Group sales Mercedes-Benz Passenger Cars per month in thousands of units 80 China 60 40 20 0 80 60 Europe 40 20 0 40 30 United 20 States 10 0 Jun 19 Jan 20 Sep 20 Daimler AG Roadshow Presentation / October 2020 / Page 8
Slide 9: Key Figures Q3 2020
MERCEDES-BENZ CARS & VANS KEY FIGURES Q3 2020 Unit sales Revenue EBIT adjusted CFBIT in thousands of units in billions of euros in millions of euros in millions of euros 4,617 705 26.6 25.8 673 2,417 1,868 1,825 -4 % -3% +29% +153% Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Daim
Slide 10: Unit Sales Q3 2020
MERCEDES-BENZ CARS & VANS UNIT SALES Q3 2020 in thousands of units, Mercedes-Benz Cars only BY REGIONS BY SEGMENT Daimler AG Roadshow Presentation / October 2020 / Page 10
Slide 11: EBIT and RoS Q3 2020
MERCEDES-BENZ CARS & VANS EBIT AND ROS Q3 2020 Significant fixed cost reduction in all areas in millions of euros Favorable model mix and pricing Positive one-time pension/healthcare effect in USA Lower unit sales Gross profit -353 +196 +34 2,417 -299 +635 +37 2,118 398 1,868 -337 RoS: -36 +20 9.4%
Slide 12: Reconciliation from EBIT to CFBIT Q3 2020
MERCEDES-BENZ CARS & VANS RECONCILIATION FROM EBIT TO CFBIT Q3 2020 in millions of euros +204 4,821 +1,980 4,617 • Restructuring Measures +204 +435 -58 -1,604 +1,745 2,118 • BBAC 2019 dividend +1,151 • Other liabilities (cash-out Q4) +586 • Other assets (mainly short-term work) +241 EBIT Change in N
Slide 13: Daimler Trucks & Buses Key Topics Q3 2020
DAIMLER TRUCKS & BUSES KEY TOPICS Q3 2020 Significant sales recovery vs. H1; significant decreases vs. Q3 2019 due to ongoing COVID-19 pandemic Incoming truck orders in most key regions significantly above Q2; Europe and North America also positive compared to Q3 2019 Ongoing strong focus on cash pr
Slide 14: Business Recovery YTD 09/20
DAIMLER TRUCKS & BUSES BUSINESS RECOVERY YTD 09/20 Group sales of Daimler Trucks per month in thousands of units 8 6 EU30 4 2 0 20 15 North 10 America 5 0 12 9 6 Asia 3 0 Jun 19 Jan 20 Sep 20 Daimler AG Roadshow Presentation / October 2020 / Page 14
Slide 15: Key Figures Q3 2020
DAIMLER TRUCKS & BUSES KEY FIGURES Q3 2020 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 101 104 134 11.5 1,142 9.2 99 +3% -26% -20% 838 736 603 -28% +55% Q3 2019 Q3 2020 Q3 2019 Q3 2
Slide 16: Incoming Orders and Unit Sales
DAIMLER TRUCKS & BUSES INCOMING ORDERS AND UNIT SALES in thousands of units, Daimler Trucks only INCOMING ORDERS UNIT SALES * * Net order intake, adjusted for cancellations ** European Union, United Kingdom, Switzerland and Norway Daimler AG Roadshow Presentation / October 2020 / Page 16
Slide 17: EBIT and RoS Q3 2020
DAIMLER TRUCKS & BUSES EBIT AND ROS Q3 2020 Significant fixed cost reduction in all areas in millions of euros Significantly lower unit sales in all regions due to market downturns Industrial performance: Q3 2019 characterized by favorable Takata one-time- Gross profit -567 effect 838 -512 RoS: 7.3%
Slide 18: Reconciliation from EBIT to CFBIT Q3 2020
DAIMLER TRUCKS & BUSES RECONCILIATION FROM EBIT TO CFBIT Q3 2020 in millions of euros +251 1,142 +332 +184 -35 -131 541 EBIT Change in Net financial Net investments Depreciation and Provisions, other CFBIT Q3 2020 working capital investments in pp&e and amortization/ Q3 2020 intangible assets impair
Slide 19: Daimler Mobility Key Topics Q3 2020
DAIMLER MOBILITY KEY TOPICS Q3 2020 New business stabilized with recovery effect in almost all regions Payment restructuring programs expired in most markets with majority of customers returning to normal payment mode No further increase of credit provisions required in Q3 Implemented efficiency mea
Slide 20: Key Figures Q3 2020
DAIMLER MOBILITY KEY FIGURES Q3 2020 New business Contract volume EBIT adjusted in billions of euros in billions of euros in millions of euros 601 18.3 18.7 162.8 469 149.8 +2% -8% +28% Q3 2019 Q3 2020 12/31/2019 9/30/2020 Q3 2019 Q3 2020 Daimler AG Roadshow Presentation / October 2020 / Page 20
Slide 21: EBIT and RoE Q3 2020
DAIMLER MOBILITY EBIT AND ROE Q3 2020 Fixed cost reductions in all areas No further increase of credit risk reserve in millions of euros Impairment of software in context of streamlining IT-architecture Gross profit* +96 +169 +36 601 589 +33 +10 RoE -12 16.5% RoE +56 469 -73 Pers. Prog, -12 16.2% 41
Slide 22: Net Credit Losses
DAIMLER MOBILITY NET CREDIT LOSSES* 0,89% 0,83% 0,68% 0,61% 0,50% 0,51% 0,36% 0,43% 0,37% 0,34% 0,31% 0,35% 0,31% 0,24% 0,26% 0,26% 0,21% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD * as a percentage of portfolio, subject to credit risk Daimler AG Roadsho
Slide 23: Your Now Joint Ventures
DAIMLER MOBILITY YOUR NOW JOINT VENTURES 1. FREE NOW & REACH NOW 2. SHARE NOW 3. PARK NOW & CHARGE NOW 09/2020 YTD Interactions in millions 279 124 7.9 12.6 134 0.52 Customers* in millions 95.8 47.3 2.1 2.8 43.5 0.09 Cities* >1,100 153 6 16 >1,100 n/a GMV RR in bn € n/a** * Partially, data summation
Slide 24: Agenda
AGENDA I. REVIEW Q3 2020 II. OUTLOOK FY 2020 III. STRATEGY I. SUSTAINABILITY II. MERCEDES BENZ CARS & VANS III. DAIMLER TRUCKS & BUSES IV. DAIMLER MOBILITY
Slide 25: 2020 Outlook
DAIMLER GROUP 2020 OUTLOOK ASSUMPTION Daimler assumes that the economic conditions in our most important markets continue to normalize and in particular that no further setbacks occur as a result of the Covid-19 pandemic. Daimler Group Revenue Significant decrease Daimler Group EBIT At prior-year le
Slide 26: 2020 Outlook
DAIMLER GROUP 2020 OUTLOOK ASSUMPTION Daimler assumes that the economic conditions in our most important markets continue to normalize and in particular that no further setbacks occur as a result of the Covid-19 pandemic. Unit Sales Cars Significant decrease Vans Significant decrease Trucks Signific
Slide 27: Agenda
AGENDA I. REVIEW Q3 2020 II. OUTLOOK FY 2020 III. STRATEGY I. SUSTAINABILITY II. MERCEDES BENZ CARS & VANS III. DAIMLER TRUCKS & BUSES IV. DAIMLER MOBILITY
Slide 28: Sustainability as an Integral Part
DAIMLER GROUP SUSTAINABILITY AS AN INTEGRAL PART… Sustainability & Culture & Climate Integrity Protection Market & Growth Cooperations MOVE Efficiency Automated & Autonomous Driving PERFORM TRANSFORM Customer and Brand Digital Services & Digital Platforms Platforms and Electrification of our Drivetr
Slide 29: Focus on Six Action Fields
DAIMLER GROUP …WITH FOCUS ON: Climate Protection & Air Quality Human Rights Resource 6 ACTION FIELDS Preservation Data 3 ENABLER Responsibility Livable Cities Traffic Safety + Integrity // People // Partnerships Daimler AG Roadshow Presentation / October 2020 / Page 29
Slide 30: Green Finance Framework
DAIMLER GROUP GREEN FINANCE FRAMEWORK Daimler AG Roadshow Presentation / October 2020 / Page 30
Slide 31: Agenda
AGENDA I. REVIEW Q3 2020 II. OUTLOOK FY 2020 III. STRATEGY I. SUSTAINABILITY II. MERCEDES BENZ CARS & VANS III. DAIMLER TRUCKS & BUSES IV. DAIMLER MOBILITY
Slide 32: Our Refocused Strategy
MERCEDES-BENZ CARS & VANS OUR REFOCUSED STRATEGY SUSTAINABILITY AS A GUIDING PRINCIPLE DRIVEN BY A HIGHLY QUALIFIED AND MOTIVATED TEAM Daimler AG Roadshow Presentation / October 2020 / Page 32
Slide 33: Luxury Is Where We Belong, and Where the Growth Is
MERCEDES-BENZ CARS & VANS LUXURY IS WHERE WE BELONG, AND LUXURY IS WHERE THE GROWTH IS Global # of wealthy individuals Per region (private investable wealth > $250k, individuals in min) (private investable wealth > $250k, individuals in mn) Source: BCG Analysis September 2020; based on a COVID-19 qu
Slide 34: We Will Focus on Profitable Growth
MERCEDES-BENZ CARS & VANS WE WILL FOCUS ON PROFITABLE GROWTH Profit Price Portfolio Rethink volume ambitions Reorientate pricing Reshape future product – profitability first and channel portfolio to optimize Profit Price Volume Daimler AG Roadshow Presentation / October 2020 / Page 34
Slide 35: Reshape Product Portfolio
MERCEDES-BENZ CARS & VANS RESHAPE PRODUCT PORTFOLIO CAGR sales 2019-2030 CAGR sales 2019- CAGR sales 2019- 2030 2030 WE WILL REFOCUS PRODUCT DEVELOPMENT RESOURCES TO GROW IN THE MOST PROFITABLE PARTS OF OUR RELEVANT SEGMENTS 1 Total global LV market; 2 Top 20 premium definition; 3 Large luxury vehic
Slide 36: We Will Unlock the Potential of Our Sub-Brands
MERCEDES-BENZ CARS & VANS WE WILL UNLOCK THE POTENTIAL OF OUR SUB-BRANDS Daimler AG Roadshow Presentation / October 2020 / Page 36
Slide 37: Clear Growth Plan for Every Sub-Brand
MERCEDES-BENZ CARS & VANS CLEAR GROWTH PLAN FOR EVERY SUB-BRAND Brand Maturity Time Daimler AG Roadshow Presentation / October 2020 / Page 37
Slide 38: Our Economic Responsibility
MERCEDES-BENZ CARS & VANS OUR ECONOMIC RESPONSIBILITY Our challenge Our answer Contribution margins on EVs Driving down powertrain costs Technology and eDrive investments Intelligent platform strategy Legacy activities Clear plan for the transition Daimler AG Roadshow Presentation / October 2020 / P
Slide 39: Our Path to Higher EV Profitability
MERCEDES-BENZ CARS & VANS OUR PATH TO HIGHER EV PROFITABILITY Costs of batteries coming down faster than originally expected Other measures (€/kWh) Significantly below €100/kWh system level by mid-decade (cell/module/system) Simplified Modular Strategy will drive economies of scale Partnerships and
Slide 40: Our Aim Is to Lead in Electric Drive
MERCEDES-BENZ CARS & VANS OUR AIM IS TO LEAD IN ELECTRIC DRIVE We will rapidly We will accelerate We will offer a expand our portfolio range and efficiency state of the art of luxury xEVs charging experience WE WILL BUILD THE WORLD‘S MOST DESIRABLE ELECTRIC CARS Daimler AG Roadshow Presentation / Oc
Slide 41: Aiming to Take the Lead in EV
MERCEDES-BENZ CARS & VANS AIMING TO TAKE THE LEAD IN EV Quality & Luxury Sublime World class Exceptional digital craftsmanship refinement ride & drive safety experience …WITH A TRUE MERCEDES-BENZ LUXURY EXPERIENCE – THE COMBINATION OF AESTHETICS AND TECHNOLOGY Daimler AG Roadshow Presentation / Octo
Slide 42: An Electric Future
MERCEDES-BENZ CARS & VANS AN ELECTRIC FUTURE WE WILL RAPIDLY EXPAND OUR ELECTRIC PORTFOLIO Daimler AG Roadshow Presentation / October 2020 / Page 42
Slide 43: Significant Reduction of Combustion Engines
MERCEDES-BENZ CARS & VANS SIGNIFICANT REDUCTION OF COMBUSTION ENGINES Daimler AG Roadshow Presentation / October 2020 / Page 43
Slide 44: Electric First
MERCEDES-BENZ CARS & VANS ELECTRIC FIRST Today EQC EQA EQB EQS EQE EQS-SUV EQE-SUV WE ARE FULLY COMMITTED TO DEDICATED ELECTRIC ARCHITECTURES Daimler AG Roadshow Presentation / October 2020 / Page 44
Slide 45: The Next Step: MMA Compact & Mid-Size Car
MERCEDES-BENZ CARS & VANS THE NEXT STEP: MMA COMPACT & MID-SIZE CAR ELECTRIC PLATFORM Exceptional range Very competitive e-drivetrain costs Benchmark high Luxury: aiming to power charging offer best noise and comfort in the industry Highly energy efficient drivetrain & vehicle State-of-the-art digit
Slide 46: Software and Technology
MERCEDES-BENZ CARS & VANS SOFTWARE AND TECHNOLOGY WE HAVE ALREADY MADE HUGE STRIDES IN OUR SOFTWARE COMPETENCE AND TECHNOLOGY OFFER Daimler AG Roadshow Presentation / October 2020 / Page 46
Slide 47: Our Own Proprietary Operating System
MERCEDES-BENZ CARS & VANS OUR OWN PROPRIETARY OPERATING SYSTEM Compelling luxury experience Scalable, lower variable costs Speed of execution Lower complexity Higher customer loyalty Recurrent revenues … WILL DELIVER AN EXTRAORDINARY CUSTOMER EXPERIENCE Daimler AG Roadshow Presentation / October 202
Slide 48: What Exactly Is MB.OS?
MERCEDES-BENZ CARS & VANS WHAT EXACTLY IS MB.OS? AND WHAT WILL MERCEDES-BENZ DEVELOP? Vehicle software Cloud/ IoT Vehicle hardware Frontend Layer Sourced from suppliers 100% in-house 5 domains: but chipset specifications Applications Layer Drive train defined by Mercedes-Benz Mainly in-house 1 Auton
Slide 49: We Will Lower Capex and R&D
MERCEDES-BENZ CARS & VANS WE WILL LOWER CAPEX AND R&D Key levers Reduction of platforms/portfolio, and vehicle complexity > -20% Reduced spending on conventional powertrain and highly standardized EV architectures Streamlined industrial footprint Absolute € budgets year by year for CAPEX and R&D (no
Slide 50: We Will Significantly Reduce Our Fixed Costs
MERCEDES-BENZ CARS & VANS WE WILL SIGNIFICANTLY REDUCE OUR FIXED COSTS Comprehensive fixed cost optimization scope, including Absolute fixed cost reduction > -20% Personnel cost reduction targets continued through to 2025 Adjustment of production capacity Structural change in marketing & sales Susta
Slide 51: We Will Reduce Variable Costs to Mitigate CO2 Burden
MERCEDES-BENZ CARS & VANS WE WILL REDUCE VARIABLE COSTS TO MITIGATE CO2 BURDEN Comprehensive optimization of all external and internal variable cost levers, including Increased saving targets for material costs Ambitious targets for variable manufacturing costs Reduction of variable sales costs 2019
Slide 52: Our Financial Ambitions for MB AG 2025
MERCEDES-BENZ CARS & VANS OUR FINANCIAL AMBITIONS FOR MB AG 2025 Market environment/revenues Contribution margin Profitable growth Fixed costs > -20% vs. 2019 > -20% vs. 2019 > -20% vs. 2019 CAPEX and R&D (CF impact) > -20% vs. 2019 > -20% vs. 2019 > -20% vs. 2019 RoS MB AG Mid to high single digit
Slide 53: Vans Strategy
MERCEDES-BENZ CARS & VANS VANS STRATEGY Daimler AG Roadshow Presentation / October 2020 / Page 53
Slide 54: Full Range Supplier in the Commercial Segment
MERCEDES-BENZ CARS & VANS FULL RANGE SUPPLIER IN THE COMMERCIAL SEGMENT Daimler AG Roadshow Presentation / October 2020 / Page 54
Slide 55: A Force to Reckon With in the Private Segment, Too
MERCEDES-BENZ CARS & VANS A FORCE TO RECKON WITH THE PRIVATE SEGMENT, TOO Daimler AG Roadshow Presentation / October 2020 / Page 55
Slide 56: Electrification of the Vehicle Fleet
MERCEDES-BENZ CARS & VANS ELECTRIFICATION OF THE VEHICLE FLEET – FOR BOTH PRIVATE AND COMMERCIAL USE Daimler AG Roadshow Presentation / October 2020 / Page 56
Slide 57: Agenda
AGENDA I. REVIEW Q3 2020 II. OUTLOOK FY 2020 III. STRATEGY I. SUSTAINABILITY II. MERCEDES BENZ CARS & VANS III. DAIMLER TRUCKS & BUSES IV. DAIMLER MOBILITY
Slide 58: Our Strategy
DAIMLER TRUCKS & BUSES OUR STRATEGY Product & portfolio • Increased focus on HD segment and increased commonization • Growing importance of connected trucks to provide real-time data and analytics to optimize customer operations Sustainability & CO2 • Battery Electric truck and fuel cell, both impor
Slide 59: Lead Globally
DAIMLER TRUCKS & BUSES LEAD GLOBALLY WE BALANCE LOCAL CYCLES WITH A STRONG GLOBAL SETUP. WE LEVERAGE OUR GLOBAL SCALE AND INTERNATIONAL NETWORK. WE MEET LOCAL DEMAND BASED ON STRONG LOCAL ROOTS AND BRANDS. Daimler AG Roadshow Presentation / October 2020 / Page 59
Slide 60: Programs Across All Regions and Segments
DAIMLER TRUCKS & BUSES PROGRAMS ACROSS ALL REGIONS AND SEGMENTS Daimler AG Roadshow Presentation / October 2020 / Page 60
Slide 61: The Future Is Electric
DAIMLER TRUCKS & BUSES THE FUTURE IS ELECTRIC THE DAIMLER TRUCK BATTERY ELECTRIC PORTFOLIO Daimler AG Roadshow Presentation / October 2020 / Page 61
Slide 62: Fuel Cell and Hydrogen
DAIMLER TRUCKS & BUSES FUEL CELL AND HYDROGEN Range: up to1,000 km Stands for a next generation of trucks based on fuel cells and hydrogen As capable as our customers expect Customer trials in 2023 Series production in the second half of this decade Daimler AG Roadshow Presentation / October 2020 /
Slide 63: Autonomous
DAIMLER TRUCKS & BUSES AUTONOMOUS DEVELOPMENT AND TESTING ON PUBLIC ROADS Daimler AG Roadshow Presentation / October 2020 / Page 63
Slide 64: Agenda
AGENDA I. REVIEW Q3 2020 II. OUTLOOK FY 2020 III. STRATEGY I. SUSTAINABILITY II. MERCEDES BENZ CARS & VANS III. DAIMLER TRUCKS & BUSES IV. DAIMLER MOBILITY
Slide 65: Our Role
DAIMLER MOBILITY OUR ROLE We create demand for vehicles and services. We promote and ensure customer loyalty. We contribute to Daimler’s financial success. We open up new opportunities through mobility services. WE MO>E YOU Daimler AG Roadshow Presentation / October 2020 / Page 65
Slide 66: Strategic Priorities
DAIMLER MOBILITY STRATEGIC PRIORITIES Daimler AG Roadshow Presentation / October 2020 / Page 66
Slide 67: Our Strengths
DAIMLER MOBILITY OUR STRENGTHS …CONTRIBUTE TO DAIMLER GROUP’S SUCCESS Daimler AG Roadshow Presentation / October 2020 / Page 67
Slide 68: We Are Putting Financial Services Front and Center Again
DAIMLER MOBILITY WE ARE PUTTING FINANCIAL SERVICES FRONT AND CENTER AGAIN FLEET MANAGEMENT, RENTAL AND SUBSCRIPTION SOLUTIONS AS WELL AS MOBILITY SHAREHOLDINGS WILL REMAIN IMPORTANT TO SUPPLEMENT OUR PORTFOLIO Daimler AG Roadshow Presentation / October 2020 / Page 68
Slide 69: Disclaimer
DAIMLER Q3 2020 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 identif