Mercedes-Benz South Africa 2018 Annual Investor Roadshow Corporate Presentation Peter Zirwes

Transcription

1

2 Mercedes-Benz South Africa 2018 Annual Investor Roadshow Corporate Presentation Peter Zirwes

3 Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix

4 Highlights of Q Unit sales in thousands of units Revenue in billions of euros World premiere of the new Mercedes-Benz A-Class * % +3% Presentation of the upgraded C-Class sedan, wagon, coupe and cabriolet Q Q EBIT in billions of euros Q Q Net profit in billions of euros World premiere of the new Mercedes-Benz Sprinter Daimler and BMW Group agreed to combine their mobility services 3.8* -12% * -11% 2.4 Daimler further strengthened its electric mobility commitment in China through investment in BJEV, a subsidiary of BAIC Group Q Q Q Q Chinese entrepreneur Li Shufu acquired a 9.69% stake in

5 Continued high level of net industrial liquidity - in billions of euros - Free cash flow industrial business Q1 2018: 1.8 billion Net industrial liquidity 12/31/2017 Earnings and other cash flow impact Working capital impact M&A effects Other (mainly dividends from DFS) Net industrial liquidity 3/31/2018

6 Further investment growth as a basis for profitable growth and development of future mobility in billion 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.)

7 Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix

8 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 * ,998* 2,060 +5% +2% +3% Q Q Q Q Q Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9)

9 Mercedes-Benz Cars: sales increase by 5% reflecting our strong product line-up smart Sports Cars SUVs S-Class E-Class C-Class 102 Q Q A-/B-Class

10 Daimler Trucks: strong business development Unit sales Revenue EBIT in thousands of units in billions of euros in millions of euros * * % +8% -2% Q Q Q Q Q Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9)

11 Daimler Trucks: sales increase by 21% mainly driven by NAFTA region and Asia - in thousands of units Rest of world Asia Latin America NAFTA region 17 Q * European Union, Switzerland and Norway 17 Q EU30*

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 Q * European Union, Switzerland and Norway 24 Q EU30*

13 Daimler Financial Services: further business growth New business Contract volume EBIT in billions of euros in billions of euros in millions of euros % +1% +5% Q Q /31/2017 3/31/2018 Q Q1 2018

14 Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix

15 CORE, CASE, CULTURE, COMPANY: We have set the course for a successful future

16 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

17 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.

18 Exciting and promising future ahead of us

19 Daimler Group Strategy Mercedes-Benz Cars Core

20 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 Q1 2018

21 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 Nov. Dec. Jan. Feb. Mar. Apr. May Sprinter CLS A-Class C-Class Sedan (upgraded) C-Class Wagon (upgraded) C-Class Coupe (upgraded) C-Class Cabriolet (upgraded) Jun. Jul. Aug. Sep. Oct. A-Class Sedan A-Class Sedan (long wheelbase) evito and more

22 Our roadmap for sustainable mobility High-tech combustion engines Plug-in hybrids Electric vehicles with battery or fuel-cell

23 Hybrid offensive as further step to reach CO 2 targets

24 Our target: remain No.1 premium car manufacturer achieved already in 2016! Sales target In thousand units Profitability target Return on Sales in % 2, % No. 1 2,374 Corridor during transition phase

25 Daimler Group Strategy Mercedes-Benz Cars CASE

26 CASE trends leading to fundamental changes in the automotive industry

27 Revolution in the cockpit: Mercedes-Benz User Experience Touchpads Touchscreen Hey Mercedes Speech Control

28 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

29 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

30 New brand EQ Electric Cars

31 Flexible integration of e-mobility in global production network Europe Bremen 1) (2019 EQC) Rastatt 1) Kamenz USA Tuscaloosa Hambach 2) Sindelfingen 1) Untertürkheim Asia Beijing EQ Vehicles Battery 1) Competence center for EQ production 2) smart production

32 Daimler Group Strategy Mercedes-Benz Vans Core & CASE

33 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

34 evito: Electrically powered, mid-sized van has been available to order since the end of 2017

35 Turning the van into a data center on wheels The future of logistics: range of up to 270km fully automated cargo space integrated drones

36 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%

37 Daimler Group Strategy Daimler Trucks Core

38 Our Daimler Trucks Innovation Leadership Global Platforms Global Market Presence

39 Strong brands and strong market positions around the world NAFTA EU 30 #1 #1 #3 Russia Japan China #2 Brazil #4 India

40 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

41 Sticking to our target: leader in the truck industry Sales target In thousand units Profitability target Return on Sales in % over the cycle 8%

42 Daimler Group Strategy Daimler Trucks CASE

43 Daimler trucks are online in every region Mercedes-Benz Uptime

44 Connected: MB Uptime boosts logistics performance Real-time maintenance support Efficient repair and upkeep management Helps to avoid breakdowns Tested in trucks covering 200 million km during pilot phase Available in 19 countries now, 8 additional countries in 2018 Extension for trailer since March 2018

45 Daimler Group Strategy Daimler Buses Core & CASE

46 Daimler Buses: sales increase by 6% mainly due to higher demand in Latin America - in thousands of units Rest of world Latin America (excl. Brazil and Mexico) Brazil Mexico EU30* Q * European Union, Switzerland and Norway Q1 2018

47 The future of public transport

48 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%

49 Daimler Group Strategy Daimler Financial Services Core

50 WE FINANCE NEARLY EVERY SECOND VEHICLE SOLD BY DAIMLER 46% Penetration rates per vehicle segment 44% 24% 57% Global penetration rate DFS in Q ~51%

51 Daimler Financial Services: further increase in contract volume to billion euros - in billions of euros Africa & Asia-Pacific Americas Europe (excl. Germany) Germany 12/31/2017 3/31/2018

52 Daimler Financial Services: net credit losses* at low level due to disciplined risk approach 0.89% 0.83% 0.69% 0.68% 0.50% 0.61% 0.36% 0.51% 0.43% 0.34% 0.37% 0.31% 0.24% 0.31% 0.26% 0.16% YTD * as a percentage of portfolio, subject to credit risk

53 Our target: best financial and mobility services provider Portfolio target In EUR bn Profitability target Return on Equity in % > Annual growth 5.5% 17%

54 Daimler Group Strategy Daimler Financial Services CASE

55 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

56 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 car sharing, ride hailing, parking, charging and multimodality Each company will hold a 50-percent stake in a joint venture comprising both companies mobility services The formation of the joint venture will produce a significantly positive earnings effect at Daimler Financial Services The transaction is subject to examination and approval by the responsible competition authorities

57 Daimler Group Strategy Culture

58 Transforming the Mindset

59 Daimler Group Strategy Company

60 Project Future: plans for new divisional structure Project Future Cornerstones Cars & Vans Trucks & Buses Daimler Financial Services Plans for three legally independent entities under the roof and lead of Targeted new structure will help to better focus on changing requirements of markets and customers Strengthening of the corporate structure will serve future success of Daimler Agreement with employee representatives on balance of interests will secure the future of Daimler employees Mercedes- Benz Cars Mercedes- Benz Vans Daimler Trucks Daimler Buses Daimler Financial Services Daimler Mobility Services No final decision yet by Board of Management or Supervisory Board to implement the new divisional structure Aim to seek approval for implementing possible new structure at the shareholders meeting in 2019

61 Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix

62 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: Mercedes-Benz Cars Slightly above the prior-year level Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services Significantly above the prior-year level Slightly below the prior-year level Slightly above the prior-year level Significantly above the prior-year level* * subject to the completion of the mobility services transaction of Daimler and BMW Group in 2018

63 Contents Group Financials Divisional Information Daimler Group Strategy Outlook Funding Appendix

64 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

65 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

66 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.

67 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.

68 Consequent development to global bond funding Diversification will continue

69 Funding Base further diversified to a true Global Set-Up in billions of EUR 129,7 9% 1% 2% 9% 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 28% 51% Q Currency Volume % EUR 30,5 46% USD 23,5 35% GBP 3,3 5% CAD 2,2 3% CNY 2,2 3% ZAR 1,7 2% AUD 0,7 1% KRW 0,7 1% INR 0,3 1% JPY 0,3 1% NOK 0,3 1% Other (THB, MXN 0,8 1% HKD, BRL, NZD, ARS) Total 67 Currencies 17 Note: Figures may not be additive due to rounding.

70 Maturity profile Daimler Group in billions of EUR as of 12 April Issued in 2018 Maturities

71 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

72 Solid rating supports Daimler s funding Current ratings: S&P: A stable A-1 Moody s: A3 positive P-2 Fitch: A- stable F2 DBRS: A (low) stable R-1 (low) Scope: A stable S-1 Daimler target: Sustaining the A rating at all rating agencies

73 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; 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.

74

75

76

77

78

79

80

81

82

83 Strong partner in the Daimler network with just over 50% of all C-Class units produced worldwide originating from East London Plant Consistent reduction in hours per vehicle achieved over W204 and W205 life cycles

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100

101

102

103

104 The Financial Services South Africa Balanced Strategy Big Grow core business Direct sales 50% penetration rate Insurance Pre-owned Digital Transformation Digital lending model Complete customer journey Involve customer in development Engage & Excite our Customers Eco system 24/7 All communication channels 4 5 Exciting Products & Services Agility Digital & connected Close corporation with the brands Our People Great Place to Work Leadership 2020 Talent development

105 38.5% +2.3pp 30.4% +8.1pp 46.5% -0.4pp 31.8% +14.9pp

106 EVERYBODY TALKS ABOUT DIGITALIZATION

107 WE EXECUTE! Automated Credit Decisioning Skip-Loss Leveraging Telematics Data Big Data Collections & Retentions E-KYC (Electronic Know Your Customer) Authentication & Fraud Mitigation

108

109

110

111

112

113

114