Slide 1: May 2018 Corporate Presentation
May 2018 Corporate Presentation
Slide 2: Contents
Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix Daimler AG Daimler Corporate Presentation / May 2018 / Page 2
Slide 3: Highlights of Q1 2018
Highlights of Q1 2018 Unit sales Revenue – in thousands of units – – in billions of euros – World premiere of the new Mercedes-Benz A-Class 807 38.6* 39.8 754 Presentation of the upgraded C-Class sedan, wagon, coupe +7% +3% and cabriolet Q1 2017 Q1 2018 Q1 2017 Q1 2018 World premiere of the new Merc
Slide 4: Continued high level of net industrial liquidity
Continued high level of net industrial liquidity - in billions of euros - Free cash flow industrial business Q1 2018: €1.8 billion +0.3 -0.0 +0.3 18.7 +1.5 16.6 Net industrial Earnings and Working capital M&A effects Other Net industrial liquidity other cash flow impact (mainly dividends liquidity 1
Slide 5: Further investment growth as a basis for profitable growth and development of future mobility
Further investment growth as a basis for profitable growth and development of future mobility in billion euros 16.3 15.5 13.5 Investment in 11.6 7.4 property, plant 6.7 and equipment 10.5 10.5 5.9 Research and 8.7 8.9 development 7.6 expenditure Actual Actual Actual Actual Actual Plan 2013 2014 2015
Slide 6: Application of new accounting standards IFRS 9 and IFRS 15
Application of new accounting standards IFRS 9 and IFRS 15 New IFRS 9 and IFRS 15 standards to be applied for the first time for financial year 2018 Retrospective adjustment of Financial Statements 2017 for comparability reasons The introduction of IFRS 15 results in changes regarding revenue recogn
Slide 7: Contents
Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix Daimler AG Daimler Corporate Presentation / May 2018 / Page 7
Slide 8: Mercedes-Benz Cars: continued business growth based on strong product portfolio
Mercedes-Benz Cars: continued business growth based on strong product portfolio Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 568 594 22.5* 23.0 1,998* 2,060 +5% +2% +3% Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 * adjusted based on new IFRS
Slide 9: Mercedes-Benz Cars: EBIT
Mercedes-Benz Cars: EBIT - in millions of euros - + 62 Higher unit sales 8.9%** Aperiodic negative effect in Q1 2017 arising 9.0%** from application of the new IFRS 15 1,998* 2,060 Higher expenses for raw material Higher expenses for new technologies and future products Valuation of the German leasi
Slide 10: Mercedes-Benz Cars: sales increase by 5%
Mercedes-Benz Cars: sales increase by 5% reflecting our strong product line-up 594 568 smart 30 34 5 Sports Cars 6 188 212 SUVs 18 23 S-Class 95 105 E-Class 125 120 C-Class 102 98 A-/B-Class Q1 2017 Q1 2018 Daimler AG Daimler Corporate Presentation / May 2018 / Page 10
Slide 11: Daimler Trucks: strong business development
Daimler Trucks: strong business development Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 114 8.6 662* 8.0* 647 94 +21% +8% -2% Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 * adjusted based on new IFRS 15 standards including cost of hedging (I
Slide 12: Daimler Trucks: sales increase by 21%
Daimler Trucks: sales increase by 21% mainly driven by NAFTA region and Asia - in thousands of units - 114 9 Rest of world 94 8 38 Asia 30 9 Latin America 6 41 NAFTA region 33 17 17 EU30* Q1 2017 Q1 2018 * European Union, Switzerland and Norway Daimler AG Daimler Corporate Presentation / May 2018 /
Slide 13: Daimler Trucks: significant increase in incoming orders
Daimler Trucks: significant increase in incoming orders mainly driven by NAFTA region - in thousands of units - 184 12 Rest of world 51 Asia 124 12 8 Latin America 40 5 89 NAFTA region 46 21 24 EU30* Q1 2017 Q1 2018 * European Union, Switzerland and Norway Daimler AG Daimler Corporate Presentation /
Slide 14: Daimler Trucks: EBIT
Daimler Trucks: EBIT - in millions of euros - - 15 8.3%** 7.5%** Higher unit sales especially in the NAFTA region 662* 647 Efficiency enhancements Higher expenses for raw material Foreign exchange rates Sale of real estate at the Kawasaki site in Q1 2017 EBIT EBIT Q1 2017 Q1 2018 * adjusted based on
Slide 15: Mercedes-Benz Vans: strong development
Mercedes-Benz Vans: strong development based on very successful products Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 93.0 3.1 86.8 3.0* 337* +7% +4% -49% 172 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 * adjusted based on new IFRS 15 standa
Slide 16: Mercedes-Benz Vans: EBIT
Mercedes-Benz Vans: EBIT - in millions of euros - - 165 11.3%** 337* Higher unit sales Impacts from the Sprinter model change 5.6%** Higher expenses for raw material 172 Higher expenses for new technologies and future products EBIT EBIT Q1 2017 Q1 2018 * adjusted based on new IFRS 15 standards inclu
Slide 17: Daimler Buses: positive development
Daimler Buses: positive development driven by strong European business and higher unit sales in Latin America Unit sales Revenue EBIT – in thousands of units – – in billions of euros – – in millions of euros – 5.7 0.9* 72* 5.4 0.85 37 +6% -8% -49% Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 * ad
Slide 18: Daimler Buses: EBIT
Daimler Buses: EBIT - in millions of euros - - 35 7.8%** 72* 72* Efficiency enhancements Product mix 4.4%** Higher expenses for raw material 37 EBIT EBIT Q1 2017 Q1 2018 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** Return on sales Daimler AG Daimler Corporate Prese
Slide 19: Daimler Financial Services: further business growth
Daimler Financial Services: further business growth New business Contract volume EBIT – in billions of euros – – in billions of euros – – in millions of euros – 17.9 139.9 141.7 548 16.8 524 +6% +1% +5% Q1 2017 Q1 2018 12/31/2017 3/31/2018 Q1 2017 Q1 2018 Daimler AG Daimler Corporate Presentation /
Slide 20: Daimler Financial Services: EBIT
Daimler Financial Services: EBIT + 24 19.3%* 17.9%* 524 548 Higher contract volume Higher interest-rate level Foreign exchange rates EBIT EBIT Q1 2017 Q1 2018 * Return on equity Daimler AG Daimler Corporate Presentation / May 2018 / Page 20
Slide 21: Contents
Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix Daimler AG Daimler Corporate Presentation / May 2018 / Page 21
Slide 22: CORE, CASE, CULTURE, COMPANY: We have set the course for a successful future
CORE, CASE, CULTURE, COMPANY: We have set the course for a successful future Daimler AG Daimler Corporate Presentation / May 2018 / Page 22
Slide 23: Clear aspiration for all divisions
Clear aspiration for all divisions Mercedes-Benz Mercedes-Benz Daimler Daimler Daimler Financial Cars Vans Trucks Buses Services „Most successful „No 1 provider of „No 1 in the global „No 1 in the global „Best financial and premium holistic transport Truck business“ Bus business“ mobility services m
Slide 24: Profit targets
Profit targets Profit targets Return on sales / Return on Equity1) in % 8-10 9 8 6 17 Mercedes-Benz Mercedes-Benz Daimler Daimler Daimler Financial Cars Vans Trucks Buses Services Return on sales target for the automotive business: 9 percent 1) Daimler Financial Services Daimler AG Daimler Corporate
Slide 25: Core CASE
Our transformation is based on a position of strength. Core and CASE are two pillars of one strategy. Core CASE The basis… … for investments into the future. Daimler AG Daimler Corporate Presentation / May 2018 / Page 25
Slide 26: Exciting and promising future ahead of us
Exciting and promising future ahead of us Daimler AG Daimler Corporate Presentation / May 2018 / Page 26
Slide 27: Daimler Group Strategy: Mercedes-Benz Cars Core
Daimler Group Strategy Mercedes-Benz Cars Core Daimler AG Daimler Corporate Presentation / May 2018 / Page 27
Slide 28: Mercedes-Benz Cars: globally balanced sales structure
Mercedes-Benz Cars: globally balanced sales structure with strong development especially in China - in thousands of units - 594 568 100 Rest of world 94 166 Europe 167 excl. Germany 74 79 Germany 78 70 United States 155 179 China Q1 2017 Q1 2018 Daimler AG Daimler Corporate Presentation / May 2018 /
Slide 29: Mercedes-Benz Cars in China: huge sales growth
Mercedes-Benz Cars in China: huge sales growth with higher share of locally produced vehicles - in thousands of units - imported locally produced 619 488 196 400 171 293 150 239 147 423 179 123 317 52 250 146 116 127 2013 2014 2015 2016 2017 2018 Q1 Daimler AG Daimler Corporate Presentation / May 20
Slide 30: Mercedes-Benz Network Development in China
Mercedes-Benz Network Development in China Number of Outlets +6 +37 +27 572 +55 566 529 +106 502 447 +79 341 +55 +41 262 207 166 2010 2011 2012 2013 2014 2015 2016 2017 Q1 2018 Daimler AG Daimler Corporate Presentation / May 2018 / Page 30
Slide 31: Made in China for China
Made in China for China: we’re producing four car models and three engine models at BBAC M270 Rear wheel drive E-Class (V/W 213) + As announced in July 2017, a localized BEV model under EQ GLC (X253) brand will be produced in BBAC M274 C-Class (V/W 205) … M276 GLA (X156) Daimler AG Daimler Corporate
Slide 32: Mercedes-Benz Cars and Vans: continued product offensive
Mercedes-Benz Cars and Vans: continued product offensive AMG 4-door Coupe G-Class (upgraded) Mercedes-Maybach GLC F-CELL S-Class Pullman (upgraded) A-Class Sedan S-Class C-Class Coupe (upgraded) Sedan (upgraded) C-Class A-Class Wagon (upgraded) Sedan (long wheelbase) CLS C-Class S-Class Cabriolet (u
Slide 33: Vehicle architecture and modular strategy
With vehicle architecture and modular strategy, we will be more cost efficient, faster and more flexible Powertrain E/E Chassis Exterior Interior Daimler AG Daimler Corporate Presentation / May 2018 / Page 33
Slide 34: High degree of modularity of the entire drive train
High degree of modularity of the entire drive train Daimler AG Daimler Corporate Presentation / May 2018 / Page 34
Slide 35: Our roadmap for sustainable mobility
Our roadmap for sustainable mobility High-tech Plug-in Electric vehicles combustion engines hybrids with battery or fuel-cell Daimler AG Daimler Corporate Presentation / May 2018 / Page 35
Slide 36: Development of CO2 emissions
Development of CO2 emissions Average CO2-emissions in g/km Mercedes-Benz Cars fleet in Europe 230 CO2-emissions in (g/km) 173 160 158 150 140 134 129 125 123 123 EU Legislation* 95 9.2 l 6.9 l 6.4 l 6.3 l 6.0 l 5.6 l 5.4 l 5.2 l 5.0 l 5.0 l 5.0 l <4.0 l 1995 … 2008 2009 2010 2011 2012 2013 2014 2015
Slide 37: 48 Volt electrification
48 Volt electrification: Several advantages regarding CO2 and comfort Integrated starter-generator Combined performance with NVH C02-reduced hybrid functions Calm starting of automatic start-stop function Comfort CO2 48 Volt Agility Turbocharger Air conditioning Innovative boost concept with AC work
Slide 38: Highly efficient combustion engines with 48 volt onboard network
Highly efficient combustion engines with additional 48 volt onboard network with a belt-driven starter/alternator Example C 200 Estate Fuel consumption combined: 6,2 l/100 km; CO2-emission combined: 142 g/km Daimler AG Daimler Corporate Presentation / May 2018 / Page 38
Slide 39: Hybrid offensive as further step to reach CO2 targets
Hybrid offensive as further step to reach CO2 targets Daimler AG Daimler Corporate Presentation / May 2018 / Page 39
Slide 40: Next milestone in hybridization
Next milestone in hybridization Example 560 e Plug-in-Hybrid Fuel consumption combined: 2,1 l/100 km, CO2-emissions combined: 49 g/km, weighted power consumption: 15.5 kWh/100 km, all-electric range of around 50 kilometres. Daimler AG Daimler Corporate Presentation / May 2018 / Page 40
Slide 41: All-new powertrain setup from ICE to xEV
All-new powertrain setup guarantees flexibility with a wide range of concepts from ICE to xEV HEV = Hybrid Electric Vehicle; PHEV = Plug-in Hybrid Electric Vehicle; BEV = Battery Electric Vehicle; F-Cell = Fuel Cell Drive Daimler AG Daimler Corporate Presentation / May 2018 / Page 41
Slide 42: Our target: remain No.1 premium car manufacturer
Our target: remain No.1 premium car manufacturer achieved already in 2016! Sales target Profitability target In thousand units Return on Sales in % 2,198 2,374 No. 1 8-10% Corridor during transition phase 2016 2017 2020 Daimler AG Daimler Corporate Presentation / May 2018 / Page 42
Slide 43: Daimler Group Strategy: Mercedes-Benz Cars CASE
Daimler Group Strategy Mercedes-Benz Cars CASE Daimler AG Daimler Corporate Presentation / May 2018 / Page 43
Slide 44: CASE trends leading to fundamental changes in the automotive industry
CASE trends leading to fundamental changes in the automotive industry Daimler AG Daimler Corporate Presentation / May 2018 / Page 44
Slide 45: Revolution in the cockpit: Mercedes-Benz User Experience
Revolution in the cockpit: Mercedes-Benz User Experience Touchpads Touchscreen Hey Mercedes Speech Control Daimler AG Daimler Corporate Presentation / May 2018 / Page 45
Slide 46: Development steps towards fully automated driving
Development steps towards fully automated driving - Currently offered by MB Level 5 & legally permissible - Level 4 Level 3 Full Level 2 High Automation Level 1 Conditional Automation Partial Automation Driver Automation Assistance Vehicle can perform all Vehicle can perform all dynamic driving task
Slide 47: Sensors for Driver Assistance Package
Sensors for Driver Assistance Package Daimler AG Daimler Corporate Presentation / May 2018 / Page 47
Slide 48: HD MAP for highly automated driving and HERE cooperation
HD MAP for highly automated driving and HERE cooperation • The HD Live Map is a mandatory part for the HAD* system for planning and positioning • The HD Map is the only sensor that delivers context information and a long road horizon • Close strategic cooperation with HERE for: - map content, format
Slide 49: Intelligent World Drive: On our road to autonomy
Intelligent World Drive: On our road to autonomy Daimler AG Daimler Corporate Presentation / May 2018 / Page 49
Slide 50: In the future - driver controlled and system controlled
In the future - driver controlled and system controlled Driver controlled System controlled Safety technologies and automated systems, Automated systems, which drive the vehicle from which are situational activated by the driver the starting point to the destination Daimler AG Daimler Corporate Pres
Slide 51: Bundling of our forces with Bosch
Bundling of our forces with Bosch Aim: To put automated driving and driverless cars on the road in urban environments by early in the next decade. Bosch System Sensor Algorithms Embed. SW Infrastr. • Hardware (Sensors, • Vehicles Motion Control Testing Actors, ECUs) • Integration of • Software for H
Slide 52: High investments in electric vehicles, powertrains and portfolio
High investments in electric vehicles, powertrains and portfolio €10 billion investment in electric vehicle fleet More than 10 BEV until 2022 Over 50 electrified passenger cars until 2022 New brand EQ for electric mobility smart fully electric in EU/USA until 2020 „3-pillar“ strategy: IC
Slide 53: New brand EQ – Electric mobility
New brand EQ – Electric mobility @Mercedes-Benz Cars Daimler AG Daimler Corporate Presentation / May 2018 / Page 53
Slide 54: Ambitious definition of our EV market targets
Ambitious definition of our EV market targets Daimler AG Daimler Corporate Presentation / May 2018 / Page 54
Slide 55: Flexible integration of e-mobility in global production network
Flexible integration of e-mobility in global production network Europe Bremen1) (2019 EQC) Rastatt1) Kamenz Hambach2) Sindelfingen1) USA Untertürkheim Tuscaloosa Asia Beijing EQ Vehicles Battery 1) Competence center for EQ production 2) smart production Daimler AG Daimler Corporate Presentation / Ma
Slide 56: Flexible architecture to integrate all electrified powertrains
Flexible architecture to integrate all types of electrified powertrains On-board-charger On-board-charger Combustion engine Electric Drive Unit HV-battery Charging inlet Transmission and integrated E-motor Electric Drive Unit HV-battery Inverter and DCDC Daimler AG Daimler Corporate Presentation / M
Slide 57: Charging solutions dedicated to specific customer requirements
Charging solutions dedicated to specific customer requirements AC Charging Inductive Charging DC Charging Daimler AG Daimler Corporate Presentation / May 2018 / Page 57
Slide 58: eRoaming and charging infrastructure with strong partners
Taking electric mobility further: Setup of eRoaming and loading infrastructure together with strong partners Work Highway Home 80 % 20 % Public Charging Stations Charging Processes 1) 2) 3) Founding shareholder of the JV for high-powered DC charging network Partnership with ChargePoint: eRoaming pla
Slide 59: Daimler Group Strategy: Mercedes-Benz Vans Core & CASE
Daimler Group Strategy Mercedes-Benz Vans Core & CASE Daimler AG Daimler Corporate Presentation / May 2018 / Page 59
Slide 60: 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 - 93.0 86.8 41.3 Sprinter 45.0 27.0 Vito 23.2 15.7 V-Class 13.2 3.2 X-Class 5.4 5.9 Citan Q1 2017 Q1 2018 Daimler AG Daimler Corporate Presentation / May 2018 / Page 60
Slide 61: eVito: electrically powered, mid-sized van
eVito: Electrically powered, mid-sized van has been available to order since the end of 2017 Daimler AG Daimler Corporate Presentation / May 2018 / Page 61
Slide 62: The future of logistics: van as data center on wheels
Turning the van into a data center on wheels The future of logistics: • range of up to 270km • fully automated cargo space • integrated drones Daimler AG Daimler Corporate Presentation / May 2018 / Page 62
Slide 63: Our target: No 1 provider of holistic transport and mobility solutions
Our target: No 1 provider of holistic transport and mobility solutions Sales target Profitability target In thousand units Return on Sales in % 359 401 >500 9% over the cycle 2016 2017 2020 Daimler AG Daimler Corporate Presentation / May 2018 / Page 63
Slide 64: Daimler Group Strategy: Daimler Trucks Core
Daimler Group Strategy Daimler Trucks Core Daimler AG Daimler Corporate Presentation / May 2018 / Page 64
Slide 65: Our strategy @ Daimler Trucks
Our strategy @ Daimler Trucks Innovation Global Leadership Platforms Global Market Presence Daimler AG Daimler Corporate Presentation / May 2018 / Page 65
Slide 66: Strong brands and strong market positions around the world
Strong brands and strong market positions around the world #1 NAFTA #1 EU 30 Russia #3 Japan China #2 Brazil #4 India Daimler AG Daimler Corporate Presentation / May 2018 / Page 66
Slide 67: Daimler Trucks further strengthens its global footprint
Daimler Trucks further strengthens its global footprint Russia: NAFTA: Ramp-up cabin All new heavy-duty production with truck New Cascadia Joint Venture China: Captive Powertrain partner Kamaz Europe: Production of Auman New medium-duty trucks with joint MB Uptime & engine venture partner Fleetboard
Slide 68: Efficiency: improving our customers' bottom line
Efficiency: improving our customers’ bottom line Europe: Mercedes-Benz Actros NAFTA: Freightliner New Cascadia Japan: FUSO Super Great Fuel reduction up to -15%* Fuel reduction up to -8%* Fuel reduction up to -15%* Next efficiency step by 2018 Next efficiency step by 2019 Complete efficiency makeove
Slide 69: Intelligent Platform Management
Intelligent Platform Management: leveraging our global scale in technology & cost EU LA China Heavy-duty engines Medium-duty engines Transmissions Chassis Electric/ Electronic Cab architecture Daimler AG Daimler Corporate Presentation / May 2018 / Page 69
Slide 70: Captive component strategy to strengthen market leadership in NAFTA
Captive component strategy to strengthen market leadership in NAFTA Penetration rate integrated powertrain in % 95 96 79 75 Year End 2017 As of March 2018 Year End 2017 As of March 2018 Heavy Duty Engines HDEP Automated Manual Transmission DT12 Daimler AG Daimler Corporate Presentation / May 2018 /
Slide 71: Sticking to our target: leader in the truck industry
Sticking to our target: leader in the truck industry Sales target Profitability target In thousand units Return on Sales in % 415 471 8% over the cycle 2016 2017 2020 Daimler AG Daimler Corporate Presentation / May 2018 / Page 71
Slide 72: Daimler Group Strategy: Daimler Trucks CASE
Daimler Group Strategy Daimler Trucks CASE Daimler AG Daimler Corporate Presentation / May 2018 / Page 72
Slide 73: Daimler trucks are online in every region
Daimler trucks are online in every region Mercedes-Benz Uptime Daimler AG Daimler Corporate Presentation / May 2018 / Page 73
Slide 74: Connected: MB Uptime boosts logistics performance
Connected: MB Uptime boosts logistics performance Real-time maintenance support Efficient repair and upkeep management Helps to avoid breakdowns • Tested in 1.400 trucks covering 200 million km during pilot phase • Available in 19 countries now, 8 additional countries in 2018 • Extension for trailer
Slide 75: Connected: Fleetboard boosts logistics performance
Connected: Fleetboard boosts logistics performance • Mapping: Allows carriers to check the position and status of their entire fleet on a single map • Trailer management: Offers transparency even for the trailer • Logistics: Enables customers to manage orders more efficiently • Performance analysis:
Slide 76: Connected: Detroit Connect boosts logistics performance
Connected: Detroit Connect boosts logistics performance Analytics Virtual Technician Remote Updates Improves fuel Reduces service-related Updates firmware consumption and safety downtime „over-the-air“ • Detects changes in fuel • Alerts customers to • Installs firmware consumption and offers vehicle
Slide 77: Safety: partially automated trucks customer-ready by 2020
Safety: partially automated trucks customer-ready by 2020 Highway Pilot Proof of concept 2014 Serial tests in 9 European countries and USA, over 100,000km on the road Market introduction by the end of 2020 Highway Pilot Connect: Proof of concept for Europe in 2015; checking out new opportunities in
Slide 78: Testing Truck Platooning in Europe, North America & Asia
Testing Truck Platooning in Europe, North America & Asia 2016 2017 2018 Daimler AG Daimler Corporate Presentation / May 2018 / Page 78
Slide 79: Battery-powered commercial vehicles for urban areas
Electric, locally emission-free und quiet: Our battery-powered commercial vehicles for urban areas Thomas Built Buses Mercedes-Benz FUSO E-FUSO Jouley eActros eCanter Vision One 2017: World premiere 2016: World premiere 2014: Innovation fleet 2017: World premiere 2018: Innovation fleet 2018: Innovat
Slide 80: Daimler Group Strategy: Daimler Buses Core & CASE
Daimler Group Strategy Daimler Buses Core & CASE Daimler AG Daimler Corporate Presentation / May 2018 / Page 80
Slide 81: Daimler Buses: sales increase by 6%
Daimler Buses: sales increase by 6% mainly due to higher demand in Latin America - in thousands of units - 5.7 5.4 0.7 Rest of world 0.9 1.2 Latin America 1.0 (excl. Brazil and Mexico) 1.4 1.9 Brazil 0.7 0.5 Mexico 1.4 1.4 EU30* Q1 2017 Q1 2018 * European Union, Switzerland and Norway Daimler AG Dai
Slide 82: The future of public transport
The future of public transport Daimler AG Daimler Corporate Presentation / May 2018 / Page 82
Slide 83: Our target: No 1 in the global bus business
Our target: No 1 in the global bus business Sales target Profitability target In thousand units Return on Sales in % 26.2 28.6 ~45 6% over the cycle 2016 2017 2020 Daimler AG Daimler Corporate Presentation / May 2018 / Page 83
Slide 84: Daimler Group Strategy: Daimler Financial Services Core
Daimler Group Strategy Daimler Financial Services Core Daimler AG Daimler Corporate Presentation / May 2018 / Page 84
Slide 85: We offer a broad variety of financial and mobility services
We offer a broad variety of financial and mobility services vehicles in fleet management banking customers car2go customers insurance policies mytaxi customers financed or leased vehicles moovel customers Daimler AG Daimler Corporate Presentation / May 2018 / Page 85
Slide 86: We finance nearly every second vehicle sold by Daimler
WE FINANCE NEARLY EVERY SECOND VEHICLE SOLD BY DAIMLER Penetration rates per vehicle segment Global penetration rate DFS in Q1 2018 57% ~51% 46% 44% 24% Daimler AG Daimler Corporate Presentation / May 2018 / Page 86
Slide 87: Daimler Financial Services: contract volume of 141.7 billion euros
Daimler Financial Services: further increase in contract volume to 141.7 billion euros - in billions of euros - 139.9 141.7 29.4 31.3 Africa & Asia-Pacific 50.7 49.4 Americas 35.6 36.1 Europe (excl. Germany) 24.1 24.7 Germany 12/31/2017 3/31/2018 Daimler AG Daimler Corporate Presentation / May 2018
Slide 88: 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% 0.16% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD * as a percentage of portfo
Slide 89: Our target: best financial and mobility services provider
Our target: best financial and mobility services provider Portfolio target Profitability target In EUR bn Return on Equity in % 132.6 139.9 Annual growth ≥ 5.5% > 17% 2016 2017 2020 Daimler AG Daimler Corporate Presentation / May 2018 / Page 89
Slide 90: Daimler Group Strategy: Daimler Financial Services CASE
Daimler Group Strategy Daimler Financial Services CASE Daimler AG Daimler Corporate Presentation / May 2018 / Page 90
Slide 91: We aim to build a holistic mobility ecosystem
We aim to build a holistic mobility ecosystem 1. Offer broad 2. Create frequent variety of mobility customer solutions interaction OUR AMBITION VEHICLE VEHICLE FINANCING LEASING “DFS’ AMBITION IS TO BECOME AN 7. Create lock-in MOBILITY 3. Gain large- ENTIRELY CUSTOMER-CENTRIC, FULLY effects & SOLUTI
Slide 92: AutoGravity: showcase example for digital financing
is a showcase example for digital financing Daimler investment rationale behind AutoGravity engagement LEAD THE DIGITIZATION OF THE INDUSTRY BY LAUNCHING DISRUPTIVE APPROACH TOWARDS AUTOMOTIVE FINANCING PROVIDE OUTSTANDING CUSTOMER EXPERIENCES BY OFFERING FIRST-OF-ITS-KIND COMPARISON APP FOR VEHICLE
Slide 93: Daimler Mobility Services
Daimler Mobility Services Total customers in m 21.4* 17.8 8.5 4.2 2.0 1.1 0 10 20 *Q1 2018 Daimler AG Daimler Corporate Presentation / May 2018 / Page 93
Slide 94: Three main pillars of our mobility business
Three main pillars of our mobility business The world’s first taxi app and The worldwide leading free floating moovel radically simplifies leading e-hailing app in Europe with carsharing concept. The car2go individual mobility by 13.9 mn customers, available in service is used by 3.1 mn customers co
Slide 95: Daimler Mobility Services: current portfolio as starting point
Daimler Mobility Services: our current portfolio is a strong starting point to conquer the customer interface DAIMLER MOBILITY SERVICES STRATEGIC BUSINESS PORTFOLIO* TARGETS CAR SHARING RIDE-HAILING MULTI-MODAL car2go mytaxi CleverTaxi moovel Turo Chauffeur Beat shareholding Privé GENERATE NEW REVEN
Slide 96: Daimler Mobility Services: ongoing business expansion
Daimler Mobility Services: ongoing business expansion Combined YTD 03/18 change* 6.3 6.2 25.0 +76% Interactions in millions 26 17** >70 +43% Cities 3.1 4.4 13.9 +86% Customers in millions * car2go, moovel and mytaxi (incl. Beat since 02/17, Clever Taxi since 06/17 and Chauffeur Privé since 03/18) co
Slide 97: Building an integrated mobility ecosystem
Building an integrated mobility ecosystem VEHICLE ASSET FLEET SERVICE MULTI-MODAL FUTURE MOBILITY MANUFACTURER PROVIDER OPERATOR PLATFORM PLATFORM CUSTOMER “Somebody needs to “Somebody needs “Somebody needs “Somebody needs to “Somebody needs to Consuming „mobility- develop, produce and to pay for an
Slide 98: Mobility services as entry point for self-driving car services
Our current mobility services will be the entry point for tomorrow’s self-driving car services X% SELF-DRIVING CAR SERVICES SHARE Daimler Mobility Services builds key capabilities for self-driving car services DAIMLER MOBILITY SERVICES FUTURE DAIMLER MOBILITY BUSINESS VOLUME TODAY SERVICES BUSINESS
Slide 99: Daimler AG and BMW Group to combine their mobility services business
Daimler AG and BMW Group to combine their mobility services business Daimler and BMW signed an agreement to merge their mobility services business units Combination of expertise and experience to develop a unique, sustainable ecosystem for urban mobility Offer of on-demand mobility in the areas of c
Slide 100: Daimler Group Strategy: Culture
Daimler Group Strategy Culture Daimler AG Daimler Corporate Presentation / May 2018 / Page 100
Slide 101: Transforming the Mindset
Transforming the Mindset Daimler AG Daimler Corporate Presentation / May 2018 / Page 101
Slide 102: Cultural changes supported by DigitalLife@Daimler
Cultural changes supported by DigitalLife@Daimler Examples 2017 Daimler AG Daimler Corporate Presentation / May 2018 / Page 102
Slide 103: Global Partner Network
Silicon Valley Stuttgart Beijing Future of Mobility Digital Lifestyle China Mobility OUR Global Partner Network Austin, TX Mobility DAIMLER NETWORK Brazil Singapore STARTUP AUTOBAHN NETWORK Sales Trucks IT Sales / DFS Overseas Daimler AG Daimler Corporate Presentation / May 2018 / Page 103
Slide 104: Daimler Group Strategy: Company
Daimler Group Strategy Company Daimler AG Daimler Corporate Presentation / May 2018 / Page 104
Slide 105: Project Future: plans for new divisional structure
Project Future: plans for new divisional structure Project Future Cornerstones • Plans for three legally independent entities under the roof and lead of Daimler AG Daimler AG • Targeted new structure will help to better focus on changing requirements of markets and customers Daimler Financial Cars &
Slide 106: Project Future: current activities
Project Future: current activities • Based on positive results of a first feasibility study, the Board of Management and the Supervisory Board decided in October 2017 to pursue the Project “Future“. • Agreement with employee representatives on a comprehensive balance of interests including job guara
Slide 107: Contents
Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix Daimler AG Daimler Corporate Presentation / May 2018 / Page 107
Slide 108: 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 109: 2018 sales outlook
2018 sales outlook Slightly higher unit sales Further growth particularly in China Mercedes-Benz Cars Strong momentum from the wide range of attractive and innovative vehicles Significantly higher unit sales Significant growth in NAFTA region, Brazil, Indonesia and India Daimler Trucks Unit sales ar
Slide 110: 2018 outlook for EBIT
2018 outlook for EBIT We expect Group EBIT for FY 2018 to be slightly above the prior-year level* based on the following expectations for divisional EBIT: Slightly above the prior-year level Mercedes-Benz Cars Significantly above the prior-year level Daimler Trucks Slightly below the prior-year leve
Slide 111: Contents
Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix Daimler AG Daimler Corporate Presentation / May 2018 / Page 111
Slide 112: Daimler follows a conservative Financial Policy
Daimler follows a conservative Financial Policy Clear commitment to a single A rating Balanced approach between shareholder interest and credit providers Dividend policy on a sustainable basis (40% target pay-out ratio) No share buybacks planned, further pension contributions will be evaluated Daiml
Slide 113: Significantly improved Funded Ratio
Positive Asset Returns and Contributions led to a significantly improved Funded Ratio Daimler Group’s Funded Ratio Development Funded Ratio Group & Discount Rate Development DAG 2010 – 03/2018 in % 100 10 +21% 86% 84% 80 8 75% 73% 66% 63% 63% 62% 59% 60 6 5.0% 4.7% 40 4 3.4% 3.1% 2.6% 1.9% 1.9% 1.8%
Slide 114: Conservative financial management and strengthened balance sheet
Daimler follows a conservative financial management approach and further strengthened the balance sheet… Gross Group Liquidity (in bn EUR) Net Industrial Liquidity (in bn EUR) Financial Services Industrial Business 24.5 21.7 22.1 3.1 19.7 18.6 18.7 3.5 3.7 17.0 18.2 16.6 16.3 2.8 13.8 2.8 13.0 11.5
Slide 115: Financing Liabilities Structure 2012 – 2018 YTD
Financing Liabilities Structure 2012 – 2018 YTD in billions of EUR Other Acc. Deposits Com. Paper Bank Loans ABS Bonds 127.4 129.7 2.0 1.8 117.6 1.0 11.2 11.0 1.0 2.4 10.6 1.7 100.6 11.5 11.5 1.5 11.6 86.4 7.4 3.0 1.5 77.7 10.5 34.6 36.1 75.6 1.3 1.4 6.0 2.3 29.7 5.1 1.8 6.1 1.1 10.9 11.3 27.3 12.1
Slide 116: Consequent development to global bond funding
Consequent development to global bond 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 EMTN ABS EMTN
Slide 117: Funding Base further diversified to a true Global Set-Up
Funding Base further diversified to a true Global Set-Up in billions of EUR 129,7 1% 9% 2% 9% 28% Currency Volume % EUR 30,5 46% USD 23,5 35% GBP 3,3 5% Other 57,3 2% CAD 2,2 3% Com. Paper 0% Currency Volume % CNY 2,2 3% ABS 22% 2% EUR 19,5 66% ZAR 1,7 2% Acc. Deposits USD 7,8 27% AUD 0,7 1% Bank Lo
Slide 118: Maturity profile Daimler Group
Maturity profile Daimler Group in billions of EUR as of 12 April 2018 15.4 13.5 1.2 0.1 Issued in 2018 Maturities 11.1 2.0 14.2 13.4 4.3 9.1 3.2 2.6 2.3 1.7 1.7 1.5 4.3 1.3 1.0 1.3 0.5 1.3 1.3 0.2 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2037 Daimler AG Daimler Corporate Presentat
Slide 119: 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 120: Solid rating supports Daimler's funding
Solid rating supports Daimler‘s funding Current ratings: S&P: A stable A-1 Moody’s: A2 stable P-1 Fitch: A- stable F2 DBRS: A stable R-1 (low) Scope: A stable S-1 Daimler target: Sustaining the A rating at all rating agencies Daimler AG Daimler Corporate Presentation / May 2018 / Page 120
Slide 121: Contents
Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix Daimler AG Daimler Corporate Presentation / May 2018 / Page 121
Slide 122: Daimler's transition to IFRS 15
Daimler’s transition to IFRS 15 What is IFRS 15 is a new Standard regarding revenue recognition to be applied from IFRS 15? January 1, 2018. Major effects on • Earlier recognition of sales incentives Revenue and/or • Earlier recognition of certain repurchase agreements EBIT due to… • Different accou
Slide 123: Retrospective application of IFRS 15
Retrospective application of IFRS 15 Financial Statements 2018 contain: Transition effect of Comparative Period 2017 Actuals 2018 equity adjustment IFRS 15 (plus transition 1.1.2017 IFRS 15 impacts) Daimler will apply IFRS 15 for the first time for the financial year beginning January 1, 2018 Re
Slide 124: Income Statement FY 2017: Application of IFRS 15
Income Statement FY 2017: Application of IFRS 15 leads to reduction of earnings mainly in consequence of transition effects - in millions of euros - 2017 2017 Major effects: Delta (as reported) (adjusted) (1) - Earlier recognition of sales incentives Total revenue 164.330 164.154 -176 (1) - Differen
Slide 125: Adjusted key figures due to IFRS 9 and IFRS 15 in FY 2017
Adjusted key figures due to transition to IFRS 9 and IFRS 15 in FY 2017 Revenue EBIT - in millions of euros - as reported adjusted change as reported adjusted change Daimler Group 164,330 164,154 -176 14,682 14,348 -334 of which Mercedes-Benz Cars 94,695 94,351 -344 9,207 8,843 -364 Daimler Trucks 3
Slide 126: Adjusted key figures due to IFRS 9 and IFRS 15 in Q1 2017
Adjusted key figures due to transition to IFRS 9 and IFRS 15 in Q1 2017 Revenue EBIT - in millions of euros - as reported adjusted change as reported adjusted change Daimler Group 38,776 38,582 -194 4,008 3,771 -237 of which Mercedes-Benz Cars 22,723 22,521 -202 2,234 1,998 -236 Daimler Trucks 7,940
Slide 127: Balance sheet figures support our A-rating
Balance sheet figures support our A-rating Daimler Group Dec. 31, 2017 March 31, 2018 Equity ratio 24.0% 24.0% Gross liquidity 22.1 24.5 Funded status of pension obligations -4.5 -4.9 Funding ratio 86% 84% Industrial business Equity ratio 46.4% 45.9% Net liquidity 16.6 18.7 Free cash flow (January-M
Slide 128: Continued strong growth in units sales
Continued strong growth in units sales Q1 2017 Q1 2018 % change Daimler Group 754.3 806.9 +7 of which Mercedes-Benz Cars 568.1 594.3 +5 Daimler Trucks 94.0 113.8 +21 Mercedes-Benz Vans 86.8 93.0 +7 Daimler Buses 5.4 5.7 +6 in thousands of units Daimler AG Daimler Corporate Presentation / May 2018 /
Slide 129: Revenue by division
Revenue by division Q1 2017* Q1 2018 % change Daimler Group 38.6 39.8 +3 of which Mercedes-Benz Cars 22.5 23.0 +2 Daimler Trucks 8.0 8.6 +8 Mercedes-Benz Vans 3.0 3.1 +4 Daimler Buses 0.9 0.9 -8 Daimler Financial Services 5.9 6.0 +2 Contract volume of Daimler Financial Services** 139.9 141.7 +1 in b
Slide 130: Revenue by region
Revenue by region Q1 2017* Q1 2018 % change Daimler Group 38.6 39.8 +3 of which Europe 16.1 16.4 +2 of which Germany 5.8 6.0 +3 NAFTA 10.8 10.6 -2 of which United States 9.4 9.1 -4 Asia 9.2 10.3 +12 of which China** 4.3 5.2 +19 Other markets 2.4 2.4 +1 in billions of euros * adjusted based on new IF
Slide 131: EBIT by division
EBIT by division Q1 2017* Q1 2018 - EBIT in millions of euros; RoS/RoE in % - EBIT RoS/RoE** EBIT RoS/RoE** Daimler Group 3,771 9.9 3,335 8.3 of which Mercedes-Benz Cars 1,998 8.9 2,060 9.0 Daimler Trucks 662 8.3 647 7.5 Mercedes-Benz Vans 337 11.3 172 5.6 Daimler Buses 72 7.8 37 4.4 Daimler Financi
Slide 132: Group EBIT in Q1 2018
Group EBIT in Q1 2018 - in millions of euros - +859 -101 -461 • Cars +8 • Trucks -115 +24 -67 -690 • Vans +8 3,771* • Buses -2 • Cars -265 • Trucks -13 • Cars • Trucks +502* +379 • Vans • Buses -172 -11 3,335 • Vans -1 • Buses -21 • Cars: New investors in HERE -183 • Trucks: Sale of real estate in J
Slide 133: Capital expenditure / Research and development
Capital expenditure / Research and development in billion euros Investment in property, plant Research and development and equipment expenditure Actual Actual Plan* Actual Actual Plan* 2016 2017 2018-2019 2016 2017 2018-2019 Daimler Group 5.9 6.7 7.4 7.6 8.7 8.9 of which Mercedes-Benz Cars 4.1 4.8 5
Slide 134: Financial flexibility over a 12-month period
Financial flexibility over a 12-month period - in billions of euros - 51.5 The financial flexibility provides support to mitigate risk and volatility 43.3 through a balanced mix of funding instruments and clear principles ABS Other potential Commercial paper Daimler follows a financial management to
Slide 135: Daimler Investor Relations Events Q2-2018
Daimler Investor Relations Events Q2-2018 May 02 2018 IR Roadshow Frankfurt May 03-04 2018 IR Roadshow Toronto, New York May 04 2018 CFO Roadshow London May 08-09 2018 IR Meetings Beijing May 14-15 2018 IR Meetings New York May 15 2018 CFO Roadshow Paris May 2018 IR Roadshow Scandinavia Jun 05-06 20
Slide 136: Daimler Investor Relations Financial Calendar 2018/Q1 2019
Daimler Investor Relations Financial Calendar 2018/Q1 2019 Apr 27 2018 Interim Report 1st Quarter 2018 Jul 26 2018 Interim Report 2nd Quarter 2018 Oct 25 2018 Interim Report 3rd Quarter 2018 Feb 06 2019 Full Year Results 2018 / Annual Press Conference 2019 Feb 07 2019 Investor and Analyst Conference
Slide 137: 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