Q Corporate Presentation

Transcription

1 Q Corporate Presentation

2 Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix Daimler Corporate Presentation / Q / Page 2

3 Highlights of Q Unit sales in thousands of units Revenue in billions of euros Market launch of the new Mercedes-Benz A-Class % Q Q EBIT in billions of euros 3.7* -30% * 40.8 Q Q Net profit in billions of euros 2.5* -1% -27% 1.8 World premiere of the new A-Class L Sedan and C-Class L Sedan for the Chinese market Market launch of the new Mercedes-Benz Sprinter Daimler and Bosch intensify the development of fully-automated and driverless driving New research and development center for automated trucks and buses in Portland, Oregon Formation of the new global E-Mobility Group for electric driven commercial vehicles Q Q Q Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Settlement of the Toll Collect arbitration proceedings Daimler Corporate Presentation / Q / Page 3

4 High level of net liquidity 50% of dividend payment recovered in H1 - in billions of euros - Free cash flow industrial business H1 2018: 1.8 billion Net industrial liquidity 12/31/2017 Earnings and other cash flow impact Working capital impact M&A effects Dividend payment Other Net industrial liquidity 6/30/2018 Daimler Corporate Presentation / Q / Page 4

5 Further investment growth as a basis for profitable growth and development of future mobility - in billions of euros Investment in property, plant and equipment Research and development expenditure Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Plan 2018/19 (average p.a.) Daimler Corporate Presentation / Q / Page 5

6 Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix Daimler Corporate Presentation / Q / Page 6

7 Mercedes-Benz Cars Unit sales in thousands of units Revenue in billions of euros EBIT in millions of euros * ,365* 1,901-1% -4% -20% Q Q Q Q Q Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler Corporate Presentation / Q / Page 7

8 Mercedes-Benz Cars: EBIT - in millions of euros %** 2,365* Warranty costs Temporarily weaker net pricing Foreign exchange rates Higher expenses for new technologies and future products Initiated service activities for diesel vehicles Production shortfall due to a fire at a supplier s facility 8.4%** 1,901 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** Return on sales EBIT Q EBIT Q Daimler Corporate Presentation / Q / Page 8

9 Mercedes-Benz Cars: slight sales decrease due to model change of A- and C-Class - in thousands of units smart Sports Cars SUVs S-Class E-Class C-Class 112 Q Q A-/B-Class Daimler Corporate Presentation / Q / Page 9

10 Daimler Trucks Unit sales in thousands of units Revenue in billions of euros EBIT in millions of euros * * % +2% -0% Q Q Q Q Q Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler Corporate Presentation / Q / Page 10

11 Daimler Trucks: sales increase by 6% mainly driven by Asia and NAFTA region - in thousands of units Rest of world Asia Latin America NAFTA region 20 Q * European Union, Switzerland and Norway 21 Q EU30* Daimler Corporate Presentation / Q / Page 11

12 Daimler Trucks: significant increase in incoming orders mainly driven by NAFTA region - in thousands of units Rest of world Asia Latin America NAFTA region 20 Q * European Union, Switzerland and Norway 21 Q EU30* Daimler Corporate Presentation / Q / Page 12

13 Daimler Trucks: EBIT - in millions of euros %** Higher unit sales especially in the NAFTA region 5.9%** Efficiency enhancements 548* 546 Customer service measures at Mercedes-Benz Trucks in Q Higher expenses for raw material Foreign exchange rates Higher costs, mainly related to supply chain constraints EBIT Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** Return on sales EBIT Q Daimler Corporate Presentation / Q / Page 13

14 Mercedes-Benz Vans Unit sales in thousands of units Revenue in billions of euros EBIT in millions of euros * * +7% +6% -56% 152 Q Q Q Q Q Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler Corporate Presentation / Q / Page 14

15 Mercedes-Benz Vans: EBIT - in millions of euros %** 349* Higher unit sales Higher expenses for new technologies and new products Impacts from the Sprinter model change Initiated service activities for diesel vehicles and delivery delays 4.3%** 152 EBIT Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** Return on sales EBIT Q Daimler Corporate Presentation / Q / Page 15

16 Daimler Buses Unit sales Revenue EBIT in thousands of units in billions of euros in millions of euros * * 66 +0% -12% -15% Q Q Q Q Q Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Daimler Corporate Presentation / Q / Page 16

17 Daimler Buses: EBIT - in millions of euros %** 78* Efficiency enhancements Foreign exchange rates Product mix Inflation-related cost increases 6.1%** 66 EBIT Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** Return on sales EBIT Q Daimler Corporate Presentation / Q / Page 17

18 Daimler Financial Services New business in billions of euros Contract volume in billions of euros EBIT in millions of euros % +5% -87% 66 Q Q /31/2017 6/30/2018 Q Q Daimler Corporate Presentation / Q / Page 18

19 Daimler Financial Services: EBIT - in millions of euros %* 522 Higher contract volume Settlement of the Toll Collect arbitration proceedings Higher interest-rate level Foreign exchange rates 2.1%* 66 EBIT Q EBIT Q * Return on equity Daimler Corporate Presentation / Q / Page 19

20 Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix Daimler Corporate Presentation / Q / Page 20

21 CORE, CASE, CULTURE, COMPANY: We have set the course for a successful future CORE Strengthen our global core business CASE Lead in tomorrow's technologies CULTURE Innovation, integrity, sustainability, learning CUSTOMER The focus of all our products and services COMPANY A modern corporate structure Daimler Corporate Presentation / Q / Page 21

22 Clear aspiration for all divisions Mercedes-Benz Cars Mercedes-Benz Vans Daimler Trucks Daimler Buses Daimler Financial Services Most successful premium manufacturer No 1 provider of holistic transport and mobility solutions No 1 in the global Truck business No 1 in the global Bus business Best financial and mobility services provider Daimler Corporate Presentation / Q / Page 22

23 Profit targets Profit targets Return on sales / Return on Equity1) in % Mercedes-Benz Cars Mercedes-Benz Vans Daimler Trucks Daimler Buses Daimler Financial Services Return on sales target for the automotive business: 9 percent 1) Daimler Financial Services Daimler Corporate Presentation / Q / Page 23

24 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 Corporate Presentation / Q / Page 24

25 Exciting and promising future ahead of us Daimler Corporate Presentation / Q / Page 25

26 Daimler Group Strategy Mercedes-Benz Cars Core Daimler Corporate Presentation / Q / Page 26

27 Mercedes-Benz Cars: globally balanced sales structure with strong development especially in China - in thousands of units Rest of world Europe excl. Germany Germany United States China Q Q Daimler Corporate Presentation / Q / Page 27

28 Mercedes-Benz Cars in China: continued strong sales growth with higher share of locally produced vehicles - in thousands of units - imported locally produced YTD 06 Daimler Corporate Presentation / Q / Page 28

29 Mercedes-Benz Network Development in China Number of Outlets YTD 2018 Daimler Corporate Presentation / Q / Page 29

30 Rear wheel drive Made in China for China: we re producing four car models and three engine models at BBAC M270 M264 E-Class (V/W 213) GLC (X253) + As announced in July 2017, a localized BEV model under EQ brand will be produced in BBAC M274 C-Class (V/W 205) M276 GLA (X156) Daimler Corporate Presentation / Q / Page 30

31 Mercedes-Benz Cars and Vans: continued product offensive AMG 4-door Coupe G-Class (upgraded) GLC F-CELL Mercedes-Maybach S-Class Pullman (upgraded) S-Class Coupe (upgraded) S-Class Cabriolet (upgraded) 2018 CLS A-Class Nov. Dec. Jan. Feb. Mar. Apr. May C-Class Sedan (upgraded) C-Class Wagon (upgraded) C-Class Coupe (upgraded) C-Class Cabriolet (upgraded) C-Class Sedan (long wheelbase, upgraded) A-Class Sedan Jun. Jul. Aug. Sep. Oct. Nov. A-Class Sedan (long wheelbase) and more X-Class Sprinter evito Daimler Corporate Presentation / Q / Page 31

32 With vehicle architecture and modular strategy, we will be more cost efficient, faster and more flexible Powertrain E/E Chassis Exterior Interior Daimler Corporate Presentation / Q / Page 32

33 High degree of modularity of the entire drive train Daimler Corporate Presentation / Q / Page 33

34 CO 2 -emissions in (g/km) Development of CO 2 emissions Average CO 2 -emissions in g/km Mercedes-Benz Cars fleet in Europe EU Legislation* 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 * Target value for average weight of European fleet. Daimler Corporate Presentation / Q / Page 34

35 Overview CO 2 reduction measures CO 2 measures in and on the vehicle CO 2 measures ICE powertrain Electrification of powertrain 0% Aerodynamics Energy recovery 48V-starting system (e.g. ISG) Efficient high-tech diesel and gasoline engines Rolling resistance Weight Eco-Mode, Intelligent Drive Energy efficient operational strategy Efficient transmissions Efficient ancillary units PHEV Long Range PHEV BEV / FCEV Degree of electrification 100% Daimler Corporate Presentation / Q / Page 35

36 48 Volt electrification: Several advantages regarding CO2 and comfort NVH Calm starting of automatic start-stop function Integrated starter-generator Combined performance with C0 2 -reduced hybrid functions Comfort CO 2 48 Volt Agility Turbocharger Innovative boost concept with two-stage turbocharger and electric supercharger Air conditioning AC works without running engine Daimler Corporate Presentation / Q / Page 36

37 Hybrid offensive as further step to reach CO 2 targets Daimler Corporate Presentation / Q / Page 37

38 Our target: remain No.1 premium car brand achieved already in 2016! Sales target In thousand units Profitability target Return on Sales in % 2, % No. 1 2,374 Corridor during transition phase Daimler Corporate Presentation / Q / Page 38

39 Daimler Group Strategy Mercedes-Benz Cars CASE Daimler Corporate Presentation / Q / Page 39

40 CASE trends leading to fundamental changes in the automotive industry Daimler Corporate Presentation / Q / Page 40

41 Revolution in the cockpit: Mercedes-Benz User Experience Touch Controls Touchscreen Hey Mercedes Speech Control Daimler Corporate Presentation / Q / Page 41

42 Connect - Anytime. Anywhere. 15 >. million active users Daimler Corporate Presentation / Q / Page 42

43 Development steps towards fully automated driving Level 1 Driver Assistance - Currently offered by MB & legally permissible - Level 2 Partial Automation Level 3 Conditional Automation Level 4 High Automation Level 5 Full Automation Single control functions such as speed selection, braking or lane keeping are automated. Driver in charge. More than one control function is automated under certain conditions. Driver expected to take care of all remaining aspects of the dynamic driving task. Vehicle can perform the dynamic driving task under certain conditions. Driver expected to respond to requests to take control. Vehicle can perform all dynamic driving tasks within a certain use case. Driver not expected to take control. Vehicle can perform all dynamic driving tasks that can also be managed by a human driver. No driver needed. Autonomous Driving + enabler for new & complementary mobility services Daimler Corporate Presentation / Q / Page 43

44 Sensors for Driver Assistance Package Daimler Corporate Presentation / Q / Page 44

45 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, accuracy, coverage, - quality assurance, maintenance and - update concept *highly automated driving - illustrative examples - Daimler Corporate Presentation / Q / Page 45

46 Intelligent World Drive: On our road to autonomy Daimler Corporate Presentation / Q / Page 46

47 In the future - driver controlled and system controlled Driver controlled System controlled Safety technologies and automated systems, which are situational activated by the driver Automated systems, which drive the vehicle from the starting point to the destination Daimler Corporate Presentation / Q / Page 47

48 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, Actors, ECUs) Software for HW components Motion Control Environment Fusion Testing IT & Process Support Vehicles Integration of systems in vehicle line Behavior Generation Vehicle Control Center Daimler Corporate Presentation / Q / Page 48

49 Californian metropolis will become first pilot testing city for automated driving in 2019 Daimler Corporate Presentation / Q / Page 49

50 EQ - Electric Intelligence. The new brand for electric mobility as part of our brand portfolio. Daimler Corporate Presentation / Q / Page 50

51 We are on our way to emission-free mobility High-tech combustion engines Plug-in hybrids Performance hybrids Electric vehicles with battery or fuel cell Daimler Corporate Presentation / Q / Page 51

52 Pushing ahead with our electric vehicle offensive 10 billion investment into e-mobility fleet Above 130 electrified alternatives by 2022 Thereof more than 10 BEV vehicle types In each series of Mercedes-Benz at least one electrified version BEV volume share between 15% and 25% until 2025 smart fully electric in EU/USA until 2020 New brand EQ for electric mobility Implementation of charging infrastructure in Europe via joint venture IONITY Daimler Corporate Presentation / Q / Page 52

53 EQC first all electric Mercedes-Benz of the new product and technology brand to be revealed in September 2018 Daimler Corporate Presentation / Q / Page 53

54 Ambitious definition of our EV market targets Daimler Corporate Presentation / Q / Page 54

55 Flexible integration of e-mobility in global production network Europe Bremen (2019 EQC) Rastatt Kamenz USA Tuscaloosa Hambach Sindelfingen Untertürkheim Asia Beijing Bangkok EQ Vehicles Battery Daimler Corporate Presentation / Q / Page 55

56 Flexible architecture to integrate all types of electrified powertrains On-board-charger Combustion engine On-board-charger Electric Drive Unit HV-battery Charging inlet Transmission and integrated E-motor Inverter and DCDC Electric Drive Unit HV-battery Illustration Daimler Corporate Presentation / Q / Page 56

57 Charging network together with partners improve customer experience Home Work Public Mercedes-Benz GLC F-CELL: Preproduction model Mercedes-Benz GLE 500 e 4MATIC: comb. fuel consumption: l/100hm; comb. power consumption: kwh/100km; CO2 emissions combined: g/km smart EQ fortwo: combined power consumption: kwh/100km; CO2 emissions combined: 0 g/km Daimler Corporate Presentation / Q / Page 57

58 Daimler Group Strategy Mercedes-Benz Vans Core & CASE Daimler Corporate Presentation / Q / Page 58

59 Mercedes-Benz Vans: sales increase by 7% due to market success of attractive product portfolio - in thousands of units Sprinter Q Q Vito V-Class X-Class Citan Daimler Corporate Presentation / Q / Page 59

60 evito: Electrically powered, mid-sized van has been available to order since the end of 2017 Daimler Corporate Presentation / Q / Page 60

61 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 Corporate Presentation / Q / Page 61

62 Our target: No 1 provider of holistic transport and mobility solutions Sales target In thousand units Profitability target Return on Sales in % >500 over the cycle 9% Daimler Corporate Presentation / Q / Page 62

63 Daimler Group Strategy Daimler Trucks Core Daimler Corporate Presentation / Q / Page 63

64 Our Daimler Trucks We improve total cost of ownership and shape future transportation We expand economies of scale and speed up innovation efficient & electric safe & automated reliable & connected We have a global reach and meet local needs Daimler Corporate Presentation / Q / Page 64

65 Our Mission: Make our customers more successful Best-in-class products in all regions Customer experience as differentiator Services beyond the hardware Service and Parts Network Extended Warranty & Service Products Continuous Process Improvement Connectivity & Uptime Customer-focused product development End to-end Support & Consulting Measurable Benefits Ease of Doing Business Trusted Partner Daimler Corporate Presentation / Q / Page 65

66 Strong brands and strong market positions around the world NAFTA EU 30 #1 #1 #3 Russia Japan China #2 Brazil #4 India Daimler Corporate Presentation / Q / Page 66

67 CHINA: We are well prepared to tap into the biggest market Biggest market of commercial vehicles and promising growth perspective. Market shifting towards premium segment and new technologies. Strong, committed partnership with Foton Product Launches 2017 EST-A ETX EST GTL Our Joint venture BFDA delivers strong sales. Over 100k trucks sold in Daimler Corporate Presentation / Q / Page 67

68 Efficiency: improving our customers bottom line Europe: Mercedes-Benz Actros NAFTA: Freightliner New Cascadia Japan: FUSO Super Great Fuel reduction up to -15%* Next efficiency step by 2018 Fuel reduction up to -8%* Next efficiency step by 2019 Fuel reduction up to -15%* Complete efficiency makeover *Fuel reductions compared to previous model Daimler Corporate Presentation / Q / Page 68

69 Our global platform roll-out has come far EU LA China Heavy-duty engines Medium-duty engines Transmissions Chassis Electric/ Electronic ECU1 ECU3 ECU2 Cab architecture Daimler Corporate Presentation / Q / Page 69

70 Global platforms are a great competitive advantage they achieve several goals at the same time: Speed of Innovation Economies of Scale R&D Efficiency ABA4 Pedestrian Sideguard Assist HDEP FE1 MDEG NAFTA & Jp Global platforms enable fast rollout of innovations Global platforms can secure pass-carlike volumes. Common base development in an efficient R&D network. Daimler Corporate Presentation / Q / Page 70

71 Captive component strategy to strengthen market leadership in NAFTA Penetration rate integrated powertrain in % Year End 2017 As of June 2018 Heavy Duty Engines HDEP Year End 2017 As of June 2018 Automated Manual Transmission DT12 Daimler Corporate Presentation / Q / Page 71

72 Daimler Trucks is setting the stage for a total of >1,400 mn improvement fully effective in 2019 EBIT Impact 1 Growth & Customer focus Global optimized network Cost reduction initiative Stream Net improvements Net improvements >1,400 mn Fully effective in 2019 Daimler Corporate Presentation / Q / Page 72

73 Sticking to our target: leader in the truck industry Sales target In thousand units Profitability target Return on Sales in % over the cycle 8% Daimler Corporate Presentation / Q / Page 73

74 Daimler Group Strategy Daimler Trucks CASE Daimler Corporate Presentation / Q / Page 74

75 Our invest in future technologies in 2018 and DT Total R&D investment ( ) Investment in Connectivity, Automated, Electric ( ) > 2.5 bn > 500 mn Daimler Corporate Presentation / Q / Page 75

76 We make a lot of progress in future technologies Connected Electric Automated Gain Headline Gain Knowledge Platooning Gain Business MB Uptime Active Safety Daimler Corporate Presentation / Q / Page 76

77 Daimler trucks are online in every region Mercedes-Benz Uptime Daimler Corporate Presentation / Q / Page 77

78 Connected: Detroit Connect boosts logistics performance Analytics Virtual Technician Remote Updates Improves fuel consumption and safety Detects changes in fuel consumption and offers recommendations Reports safety-related events Analysis on the basis of trip, vehicle, and fleet Helps to reduce servicerelated downtime Alerts customers to vehicle faults Provides immediate steps for action Analysis of entire fleet history Updates firmware over-the-air Installs firmware for engine, transmission and aftertreatment without workshop visit Remote access to truck from customer office Daimler Corporate Presentation / Q / Page 78

79 We are pioneering automated trucking for many years Mercedes-Benz Future Truck 2025 Freightliner Inspiration Truck Test license for German autobahn Automated snow clearance Platooning trials in entire triad Daimler Corporate Presentation / Q / Page 79

80 We will deliver level 2 soon LEVEL 5 Full automation LEVEL 1 Function-specific LEVEL 2 Partial automation LEVEL automation 3 Conditional automation LEVEL High 4automation LEVEL0 Driver Daimler Corporate Presentation / Q / Page 80

81 We are pioneering electric trucks for many years : FUSO ecanter fleet tests in Europe 09/2016: Mercedes-Benz eactros prototype, FUSO ecanter in new design 09/2017: FUSO ecanter market launch 11/2017: World premiere of Thomas Built Buses Jouley 06/2018: Presentation of Freightliner ecascadia and em2 09/2010: First prototype of FUSO ecanter 07/2016: Mercedes-Benz eactros technology concept, one of the first e-trucks for heavy distribution 07/2017: Start of production FUSO ecanter 10/2017: New brand E-FUSO and heavy-duty e-truck Vision One 02/2018: Presentation of Mercedes-Benz eactros Daimler Corporate Presentation / Q / Page 81

82 Electric, locally emission-free and quiet: Our battery-powered commercial vehicles for urban areas Thomas Built Buses Jouley Mercedes-Benz eactros FUSO ecanter Freightliner ecascadia & em2 2017: World premiere 2018: Innovation fleet 2019: Small series 2016: World premiere 2018: Innovation fleet ~2021: Market introduction 2014: Innovation fleet 2017: Market introduction End of decade: Large series 2018: World premiere 2019: Innovation fleet 2021: Market introduction Daimler Corporate Presentation / Q / Page 82

83 Freightliner ecascadia and em2: leading the charge Daimler Corporate Presentation / Q / Page 83

84 Daimler Group Strategy Daimler Buses Core & CASE Daimler Corporate Presentation / Q / Page 84

85 Daimler Buses: higher unit sales in Brazil and India - in thousands of units Rest of world Latin America (excl. Brazil and Mexico) Brazil Mexico EU30* Q * European Union, Switzerland and Norway Q Daimler Corporate Presentation / Q / Page 85

86 World premiere of fully electrically powered Mercedes-Benz Citaro Daimler Corporate Presentation / Q / Page 86

87 The future of public transport Daimler Corporate Presentation / Q / Page 87

88 Our target: No 1 in the global bus business Sales target In thousand units Profitability target Return on Sales in % ~45 over the cycle 6% Daimler Corporate Presentation / Q / Page 88

89 Daimler Group Strategy Daimler Financial Services Core Daimler Corporate Presentation / Q / Page 89

90 We offer a broad variety of financial and mobility services vehicles in fleet management banking customers car2go customers insurance policies Ride-Hailing Group customers financed or leased vehicles moovel customers Daimler Corporate Presentation / Q / Page 90

91 WE FINANCE NEARLY EVERY SECOND VEHICLE SOLD BY DAIMLER 40% Penetration rates per vehicle segment 42% 23% 56% Global penetration rate DFS in Q ~50% Daimler Corporate Presentation / Q / Page 91

92 Daimler Financial Services: further increase in contract volume to billion euros - in billions of euros Africa & Asia-Pacific Americas Europe (excl. Germany) /31/ /30/2018 Germany Daimler Corporate Presentation / Q / Page 92

93 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% 0,24% 0,31% 0,26% 0.21% YTD * as a percentage of portfolio, subject to credit risk Daimler Corporate Presentation / Q / Page 93

94 Our target: best financial and mobility services provider Portfolio target in billions of EUR Profitability target Return on Equity in % > Annual growth 5.5% 17% Daimler Corporate Presentation / Q / Page 94

95 Daimler Group Strategy Daimler Financial Services CASE Daimler Corporate Presentation / Q / Page 95

96 We aim to build a holistic mobility ecosystem 7. Create lock-in effects & loyalty 1. Offer broad variety of mobility solutions 6. Become trusted mobility companion MOBILITY SOLUTIONS BEYOND CAR VEHICLE FINANCING CAR-BASED MOBILITY SERVICES CAR RENTAL VEHICLE LEASING INSURANCE SERVICES FLEET MANAGE- MENT 2. Create frequent customer interaction 3. Gain largescale customer data 4. Optimize understanding of customer needs OUR AMBITION DFS AMBITION IS TO BECOME AN ENTIRELY CUSTOMER-CENTRIC, FULLY DIGITIZED, INTEGRATED FINANCIAL & MOBILITY SERVICES PROVIDER, OPERATING IN THE MOST EFFICIENT WAY. 5. Capitalize on upselling opportunities Daimler Corporate Presentation / Q / Page 96

97 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 SHOPPING AND FINANCING TOP FACTS AUTOGRAVITY Q million users Top-ranked Android & Apple app Over $3 bn in total finance requests BUILD ADDITIONAL ASSET-LIGHT REVENUE SOURCES BY BUILDING COMMISSION-BASED PLATFORM BUSINESS MAINTAIN CUSTOMER CONTACT AND ENABLE GROWTH WHILE RELIEVING DAIMLER BALANCE SHEET VIA THIRD PARTY FINANCING Daimler Corporate Presentation / Q / Page 97

98 Our Customers mobility needs will change TODAY BUYING (car-based) mobility as a product Enabler: Finance & Lease TOMORROW CONSUMING (car-based) mobility as a service Enabler: Finance & Lease Daimler Corporate Presentation / Q / Page 98

99 Daimler Mobility Services Total customers in m 23.5 * *Q Daimler Corporate Presentation / Q / Page 99

100 The expansion of our footprint is a result of our comprehensive mobility strategy Investment 2013 Acquisition Merger Daimler Corporate Presentation / Q / Page 100

101 Three main pillars of our mobility business The Ride-Hailing Group contains the brands mytaxi, Beat, Clever Taxi and Chauffeur Privé with 15.3 mn customers, available in over 80 cities within 13 countries. In Europe a mytaxi hail is accepted every second by one of mytaxi s 100,000+ drivers. The worldwide leading free floating carsharing concept. The car2go service is used by 3.2 mn customers with more than 14,000 vehicles at numerous locations in Europe, North America and Asia. moovel radically simplifies individual mobility by combining & offering innovative mobility services to more than 5.0 mn users worldwide via our services: ticketing apps, on-demand shuttle service, fare connect. Daimler Corporate Presentation / Q / Page 101

102 Daimler Mobility Services: our current portfolio is a strong starting point to conquer the customer interface DAIMLER MOBILITY SERVICES BUSINESS PORTFOLIO* STRATEGIC TARGETS CAR SHARING RIDE-HAILING MULTI-MODAL car2go mytaxi CleverTaxi moovel Turo shareholding Beat Flixbus shareholding Via shareholding Taxify shareholding Chauffeur Privé Blacklane shareholding Careem shareholding 23.5mn 42.4mn >120 CUSTOMERS INTERACTIONS CITIES * YTD June 2018; numbers for car2go, moovel, mytaxi, Beat, Clever Taxi and Chauffeur Privé. GENERATE NEW REVENUE BY ENTERING A THREE-DIGIT BILLION USD MARKET EXTEND DAIMLER ECOSYSTEM BY OFFERING ONE-STOP SHOPPING PREPARE FOR THE FUTURE BY BUILDING CUSTOMER BASE AND SKILLS GROW CUSTOMER BASE BY ADRESSING THEIR FINANCE & MOBILITY NEEDS Daimler Corporate Presentation / Q / Page 102

103 Combining forces with BMW to enhance the offer for the customer Subject to antitrust approval Daimler Corporate Presentation / Q / Page 103

104 BMW and DAIMLER share a joint target picture CHARGING MAINTENANCE PARKING FLEET DISTRIBUTION VEHICLE PROVISION SELF- DRIVING & ELECTRIC ON-DEMAND FLEETS IN CITIES SUPPORT SERVICES CONNECTIVITY & AI ROUTING Daimler Corporate Presentation / Q / Page 104

105 Our business is strongly future oriented VEHICLE MANUFACTURER ASSET PROVIDER FLEET OPERATOR SERVICE PLATFORM FUTURE MOBILITY CUSTOMER Somebody needs to develop, produce and sell the vehicle Somebody needs to pay for and own the vehicle Somebody needs to take care of the vehicles Somebody needs to offer the individual mobility service to customers Consuming mobilityas-a-service/ self-driving car services SCOPE OF CURRENT DFS BUSINESS Daimler Corporate Presentation / Q / Page 105

106 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 BUSINESS VOLUME TODAY (non-autonomous) FUTURE DAIMLER MOBILITY SERVICES BUSINESS VOLUME (incl. autonomous) Daimler Corporate Presentation / Q / Page 106

107 Self-driving technology will increase the demand for shared mobility services Self-driving car services will... Leading to a reinforcing cycle of mobility services DELIVER A UNIQUE CUSTOMER EXPERIENCE ENHANCE TRAFFIC SAFETY IMPROVE QUALITY OF LIFE IN CITIES PROVIDE A HUGE MARKET OPPORTUNITY Prices will decrease due to higher fleet utilization FUTURE SELF- DRIVING CAR SERVICES Customer demand will increase due to higher attractiveness Increasing need for self-driving car services Daimler Corporate Presentation / Q / Page 107

108 Daimler Group Strategy Culture Daimler Corporate Presentation / Q / Page 108

109 Our success is rooted in a strong and evolving culture Daimler Corporate Presentation / Q / Page 109

110 Transforming the Mindset Daimler Corporate Presentation / Q / Page 110

111 Daimler Group Strategy Company Daimler Corporate Presentation / Q / Page 111

112 PROJECT FUTURE will create a strong family of companies with three legally independent divisions Our guiding principles The Daimler family will be preserved and further strengthened We will be less complex and closer to our customers We will build legally independent divisions under the umbrella of Daimler AG alongside the existing legally independent division Daimler Financial Services The new divisions will retain a substantial size and will continue to work closely together and leverage synergies All divisions will be German codetermined companies The structure we envision We are a family united under the umbrella of 1) Mercedes-Benz AG Daimler Truck AG Daimler Mobility AG 2) Mercedes- Benz Cars Mercedes- Benz Vans Daimler Trucks Daimler Buses Daimler Financial Services Daimler Mobility Services 1) After the Board of Management and the Supervisory Board of made their final decision on implementing the new structure in July 2018, our shareholders will have to make their vote in the general annual meeting in ) Daimler Financial Services AG is planning to rename itself Daimler Mobility AG. The business division Daimler Financial Services already represents the Daimler group's mobility portfolio. Daimler Corporate Presentation / Q / Page 112

113 Our new structure will create significant benefits for Daimler Strengthen own business units accountability/ transparency Strengthen entrepreneurial spirit & focus Facilitate cooperation potential Analysis and process provide strategic business impulses Gain optionality and speed to address changing competitive environment Increase management focus on strategic decision making Increase operational efficiency Clear legal entity structures Enhance transparency of underlying business Create flexibility Daimler Corporate Presentation / Q / Page 113

114 PROJECT FUTURE is a consecutive building block of an even more customer-oriented company structure Customers Markets Organization Customer Dedication New organizational structure to increase customer proximity We have been working to focus our divisions completely on our customers' needs Legal Entity Dedication Organizational realignment through legal entities We have set up new companies in our international markets to better adapt to the specific needs of each country and market PROJECT FUTURE Legal separation of divisions We are continuing down this road by creating the right corporate structure Revenue increase Daimler Corporate Presentation / Q / Page 114

115 Major milestones of PROJECT FUTURE (AGM) Autumn 2019 Start Board of Management and Supervisory Board greenlight start of project Company decision Approval of implementation by Board of Management and Supervisory Board Decision of shareholders Final approval would have to be given by shareholders at our general meeting Go-live Following shareholder approval, we will implement the new structure in autumn Due diligence Implementation Go Live Annual general meeting Annual Press Conference 2019 Full Year Results 2018 Daimler Corporate Presentation / Q / Page 115

116 Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix Daimler Corporate Presentation / Q / Page 116

117 Assumptions for automotive markets in 2018 Car markets Medium- and heavy-duty truck markets Van markets Bus markets Global Europe USA China NAFTA region EU30 Japan* Brazil Indonesia* EU30 USA EU30 Brazil around +2% slight growth around the prior-year level slight growth significant growth around the prior-year level slight decrease significant growth from low level positive development slight growth slight growth slight growth significant growth * including light-duty trucks Daimler Corporate Presentation / Q / Page 117

118 2018 sales outlook Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Slightly Unit sales higher around unit the sales prior-year level Further Supported growth by wide particularly range of attractive in China and innovative vehicles Strong Further momentum growth in China from the wide range of attractive and innovative vehicles Significantly higher unit sales Significant growth in NAFTA region, Brazil, Indonesia and India; slight growth in Japan Slight Unit sales decrease around in the EU30 prior-year region level in EU30 region and Japan Significantly higher unit sales Significant Slight growth growth in EU30 in EU30 region, region, significant China growth and the in United China States and the United States Additional momentum from new X-Class and new Sprinter Significantly higher unit sales Maintain market leadership in core markets Significant sales increase in EU30 region and further growth in Latin America Daimler Corporate Presentation / Q / Page 118

119 2018 outlook for EBIT We expect Group EBIT for FY 2018 to be slightly below the prior-year level* based on the following expectations for divisional EBIT: Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services Slightly below the prior-year level Significantly above the prior-year level Significantly below the prior-year level In the prior-year magnitude In the prior-year magnitude* * subject to the completion of the mobility services transaction of Daimler and BMW Group in 2018 Daimler Corporate Presentation / Q / Page 119

120 Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix Daimler Corporate Presentation / Q / Page 120

121 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 Daimler Corporate Presentation / Q / Page 121

122 Daimler renewed and increased its syndicated credit facility Renewal of syndicated 9 billion credit facility (maturing in September 2020) Increase to 11 billion Tenor of 5 years , i. e. until years Syndicate of international banks mostly unchanged together with excellent support by relationship banks No covenants, rating triggers, etc. It is not intended to draw the credit facility Secure significant long-term liquidity reserve at favorable cost Daimler Corporate Presentation / Q / Page 122

123 Positive Asset Returns and Contributions led to a significantly improved Funded Ratio 100 Daimler Group s Funded Ratio Development Funded Ratio Group & Discount Rate Development DAG /2018 in % % 86% 84% 80 73% 75% % 66% 59% 63% 62% 6 5.0% 4.7% % 3.4% 2.6% % 1.9% 1.8% 1.8% / Discount Rate Funded Ratio Daimler Group Daimler Corporate Presentation / Q / Page 123

124 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 Q Q Note: Figures may not be additive due to rounding. Daimler Corporate Presentation / Q / Page 124

125 Financing Liabilities Structure YTD in billions of EUR Other Com. Paper ABS Acc. Deposits Bank Loans Bonds Q Note: Figures may not be additive due to rounding. Daimler Corporate Presentation / Q / Page 125

126 Consequent development to global bond funding diversification will continue Canada USA EMTN Domestic Bonds ABS CP 144a / RegS PP CP ABS Mexico Domestic Issuance Prog. Brazil Letras Financeiras Euro Market EMTN Program Italian domestic EUR CP Prog. ABS Turkey Domestic Bonds EMTN India China Domestic Bonds ABS Domestic Bonds Domestic CP Thailand Domestic Bond Prog. Malaysia Korea Domestic Bond Prog. Domestic Bond Prog. Japan Domestic Bonds EMTN Argentina Domestic Debt Issuance Prog. South Africa Domestic Debt Issuance Prog. Australia EMTN Domestic CP Prog. ABS Daimler Corporate Presentation / June 2018 / Page 126

127 Funding base further diversified to a true global set-up in billions of EUR 137,4 7% 1% 2% 8% Other Com. Paper ABS Acc. Deposits Bank Loans Bonds 57,3 22% 23% 51% Q % 0% 2% Currency Volume % EUR 19,5 66% USD 7,8 27% ZAR 0,8 3% JPY 0,6 2% GBP 0,3 1% CHF 0,2 1% Other (AUD, 0,2 1% MXN, ARS) Total 29 Currencies 9 27% 53% Q Currency Volume % EUR 32,0 44% USD 27,2 37% GBP 3,7 5% CAD 2,8 4% CNY 2,6 4% ZAR 1,5 2% KRW 0,7 1% AUD 0,6 1% INR 0,4 0% JPY 0,3 0% NOK 0,3 0% Other (MXN, THB 0,9 1% HKD, BRL, NZD, MYR) Total 73 Currencies 18 Note: Figures may not be additive due to rounding. Daimler Corporate Presentation / Q / Page 127

128 Maturity profile Daimler Group in billions of EUR as of 30 June Issued in 2018 Maturities Daimler Corporate Presentation / Q / Page 128

129 Our funding strategy is built on prudent principles Targeting Financial Independence Maximizing Financial Flexibility Stringent Global Funding Policy No dependence from single markets, instruments, banks or investors Diversification of funding sources and instruments: Bank Loans, Bonds, ABS, CP, Deposits No Covenants, no MAC, no asset pledges, no CSAs Keeping prudent amount of Cash and Committed Credit Facility New markets funded via global and local banks first Early capital market funding to save credit capacity in growth regions Liquidity matched funding Interest rate matched funding Currency matched funding Country matched funding Daimler Corporate Presentation / Q / Page 129

130 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 Corporate Presentation / Q / Page 130

131 Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix Daimler Corporate Presentation / Q / Page 131

132 Key balance sheet and financial figures Daimler Group Dec. 31, 2017 June 30, 2018 Equity ratio 24.0% 23.8% Gross liquidity Funded status of pension obligations Funding ratio 86% 84% Industrial business Equity ratio 46.4% 45.6% Net liquidity Free cash flow (January-June) in billions of euros Daimler Corporate Presentation / Q / Page 132

133 Units sales by division Q Q % change Daimler Group of which Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses in thousands of units Daimler Corporate Presentation / Q / Page 133

134 Revenue by division Q2 2017* Q % change Daimler Group of which Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services Contract volume of Daimler Financial Services** * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** figures as of December 31, 2017 and June 30, 2018 in billions of euros Daimler Corporate Presentation / Q / Page 134

135 Revenue by region Q2 2017* Q % change Daimler Group of which Europe of which Germany NAFTA of which United States Asia of which China** Other markets * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** excluding revenue of not fully consolidated companies in billions of euros Daimler Corporate Presentation / Q / Page 135

136 EBIT by division Q2 2017* Q EBIT in millions of euros; RoS/RoE in % - EBIT RoS/RoE** EBIT RoS/RoE** Daimler Group 3, , of which Mercedes-Benz Cars 2, , Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services Reconciliation * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** Return on sales for automotive business, return on equity for Daimler Financial Services; Daimler Group excluding Daimler Financial Services Daimler Corporate Presentation / Q / Page 136

137 Group EBIT in Q in millions of euros - 3,747* -257 Cars -399 Trucks +113 Vans +30 Buses Cars -177 Trucks -109 Vans -3 Buses Cars +111 Trucks -31 Vans -223 Buses DFS: Toll Collect arbitration -418 Trucks: Fixed cost optimization** +24 2,640 Actual Q Volume/ Structure/ Net pricing Foreign exchange rates Other cost changes Financial Services Reconciliation Disclosed items Actual Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** in Q Daimler Corporate Presentation / Q / Page 137

138 Capital expenditure / Research and development in billions of euros Investment in property, plant and equipment Research and development expenditure Actual 2016 Actual 2017 Plan* Actual 2016 Actual 2017 Plan* Daimler Group of which Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services * average p.a. Daimler Corporate Presentation / Q / Page 138

139 Financial flexibility over a 12-month period - in billions of euros ABS potential Credit facility Liquidity Financial Services 45.4 Other Commercial paper Bank loans The financial flexibility provides support to mitigate risk and volatility through a balanced mix of funding instruments and clear principles Daimler follows a financial management to safeguard our A-rating and thus our attractive refinancing conditions A high financial flexibility is a key support to our A-Rating Liquidity industrial business Bonds Available or short-term accessible liquidity is higher than the total maturities over the next 12 months Available or accessible liquidity Maturities over next 12 months Account deposits The current liquidity position reflects the volatile market environment, the currently required high investments for our future business model and the required financial flexibility for our business Daimler Corporate Presentation / Q / Page 139

140 Daimler Investor Relations Events Q Jul CFO Roadshow Frankfurt Jul IR Roadshow London Aug IR Roadshow Boston/New York Sep EQC me Convention Stockholm Sep IAA Commercial Vehicles Hanover Sep IR Meetings Munich Oct Paris Motor Show Paris For latest dates please see Daimler Corporate Presentation / Q / Page 140

141 Daimler Investor Relations Financial Calendar 2018/2019 Oct Interim Report 3rd Quarter 2018 Feb Full Year Results 2018 / Annual Press Conference 2019 Feb Investor and Analyst Conference Apr Interim Report 1st Quarter 2019 May Annual Meeting 2019 Jul Interim Report 2nd Quarter 2019 Oct Interim Report 3rd Quarter 2019 For latest dates please see Daimler Corporate Presentation / Q / Page 141

142 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-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a decline of demand in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activities; changes in currency exchange rates and tariff regulations; a shift in consumer preferences towards smaller, lower-margin vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; price increases for fuel or raw materials; disruption of production due to shortages of materials, labor strikes or supplier insolvencies; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization measures; the business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic cooperations and joint ventures; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety; the resolution of pending government investigations or of investigations requested by governments and the conclusion of pending or threatened future legal proceedings; and other risks and uncertainties, some of which we describe under the heading Risk and Opportunity Report in the current Annual Report. If any of these risks and uncertainties materializes or if the assumptions underlying any of our forward-looking statements prove to be incorrect, the actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication. Daimler Corporate Presentation / Q / Page 142