Mercedes-Benz South Africa Annual Business Results Presentation

Transcription

1 Mercedes-Benz South Africa Annual Business Results Presentation Sustaining Growth An earlier version of this presentation stated the revenue incorrectly for The correct figure has been added.

2 The four strategic focus areas of Daimler Strengthening core business Growing globally Leading in technology Pushing digitalisation

3 Holding on to the position at the top of the podium The most inspired automotive brands in South Africa Sustained production excellence #1in Customer Service excellence A great place to work

4 Answering a dynamic environment with a passionate workforce and inspired leadership Labour Stability Benchmark Siyaphambili agreement signed Education & Skills Pool Mercedes-Benz Learning Academy achieves success Exchange Rate Developments, economic growth Steadily increasing local production of C-Class International and National Policy environment Continuous engagement with stakeholders/apdp

5 Daimler footprint in South Africa

6 Responsible Corporate Citizen Contributing to the South African Economy Nearest Competitor MBSA *Figures are for MBSA + MBFS

7 Investing in our own people Growing our own talent employees enrolled employees enrolled employees enrolled Training for hourly paid workers in 2016: Training for talent development in 2016: Learnerships for people living with disability in 2016: Leadership development: 251 employees 295 employees 27 employees 33 employees * *The above selection does not constitute the full training offering for the year

8 Mercedes-Benz Learning Academy officially opened in March Training for the broader business community in partnership with Jobs Fund

9 Relationship with our labour partners is imperative Successful negotiations in 2016

10 APDP Programme Stable policy environment delivered on by government and promised for the future Forecast I want to convey this as clearly as I can that the APDP is here to stay. Dr Rob Davies, Minister of Trade and Industry, May 2014 APDP Incentive Scheme A post-apdp support framework will be developed during the course of 2016 in order to provide a certain policy environment for automotive manufacturing in South Africa after Dr Rob Davies, Minister of Trade and Industry, November 2015

11 Daimler AG Financial Results

12 Daimler Yet another record year for unit sales, revenue and EBIT Numbers in bn % 2.8% % Revenue in bn EBIT adjusted for special items Net Profit Dividend Proposed in bn Source: Daimler AG Press Conference

13 Mercedes-Benz South Africa Financial Results

14 Healthy revenue and EBIT growth Revenue in ZAR bn 73.4 EBIT from ongoing business in ZAR bn ** 4.4* +10.8% +27.3% * * 2016 figures are unaudited *Excludes impact of sale of Atlantis Foundries **Excludes impact of sale of some dealerships

15 Financial summary Resilience will carry us through Record export & robust sales Changing Economic Climate EXCHANGE RATE UNSTABLE ECONOMY UNCERTAINTY INCREASING Subdued economic cycle ahead Production numbers PRODUCT OFFENSIVE CONTINUES FURTHER INCREASE IN PRODUCTION PUTTING THE CUSTOMER FIRST

16 East London Plant

17 Mercedes-Benz East London Plant Remaining a pioneer in the industry C-Class CKD 4320

18 Electrifying our passion The C350e Plug-in Hybrid Most advanced shopfloor in South Africa Certified consumption figures of just 2.1 litres of fuel per 100 kilometres. This corresponds to CO 2 emissions of 48 grams per kilometre.

19 Continuously investing to further improve efficiencies and build for the future Improving and preparing C 350 e Launched in Q Total Investment in 2016: R461m Product projects: (including Hybrid) R259.3m Plant projects: (quality improvements etc) R98.6m Structure projects: R98.7m

20 Production steadily increasing Benchmark Efficiency East London Plant - a strong partner in the Daimler network PRODUCTION HOURS PER VEHICLE W205 28% improvement Commercial Vehicles C-Class Passenger Car production volume rounded to the nearest thousand. Commercial Vehicle production volume rounded to the nearest hundred.

21 Driving performance Built right here in Africa Announcing production of AMG models in South Africa Investment in excess of: R200m

22 Mercedes-Benz South Africa - Plant Reliable flexibility and programme delivery

23 Mercedes-Benz Cars

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25 Mercedes-Benz Cars keeps top spot in difficult market Total Passenger Car Market ,8% Mercedes-Benz Outsold closest competitor with units Product offensive assisted in increasing market share to 7% -10,9% PC Market PC Market MB (excl. smart, Vito & V-Class) MB (excl. smart, Vito & Viano) (Source: DTI)

26 Ongoing Portfolio-expansion for continuous conquering models models* 2020 More than 40 models *Available in South Africa

27 Driving Performance. Extended.

28 The most powerful E-Class E 63 S 4MATIC+

29 Most intelligent executive sedan E-Class adds two to the family

30 Rejuvenating the brand further Refreshing the compact cars

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32 Welcome to a world of exclusivity

33 Mercedes me connect Next level user experience move connect assist finance inspire

34 EQ An emission-free future

35 Mercedes-Benz Vans

36 Celebrating our successes

37 Robust sales in competitive market LARGE VAN % % Large Van market share Increase MID-SIZE VAN +24% % MB Volume growth TOTAL MARKET % Series 44.5% 47.3% Series 5.0% 5.6% Unit sales MBSA unit sales Unit sales MBSA unit sales

38 Market Share % 45% 47% 45.00% % 5.00% 5.60% 6.00% 5.00% % % % % % 0.00% Large Van Volume Large Van Market Share Mid-size Van Volume Mid-size Van Market Share Significant volume growth in mid-size Market share in increase in large van despite overall market drop

39 Concept X-

40 Daimler Trucks & Buses

41 Daimler Trucks & Buses Remains market leader Market leader in a decreasing market % Remained resilient in 2016, despite economic conditions The market leader with unit sales of All business units contributed to success Category 1 Source: DTI and MB Total Internal Commercial Vehicles Market

42 Freightliner Retention. Relationship. Research.

43 Daimler Value Chain portfolio keeps growing Possibilities for the Southern African region pp 6pp pp CharterWay FleetBoard MB Financial Services

44 Growing consistently since % +23% +8% +35% +5%

45 FUSO growth based on product offensive Second DICV* product launched FJ *Daimler India Commercial Vehicles

46 Mercedes-Benz Bus & Coach Leadership in technology with Dual Fuel Products

47 Mercedes-Benz Financial Services

48 Mercedes-Benz Financial Services Total Acquisitions Total Portfolio Total Penetration 2016 R9 475m vs R28 612m vs % vs R10 688m 2015 R26 989m %

49 Mercedes-Benz Financial Services Helping to sell more vehicles to more customers, more often Mercedes-Benz Cars Mercedes-Benz Vans Passenger Car Penetration 36.2% -7.8pp Vans Penetration 22.3% +1.3pp Daimler Trucks Daimler Buses Daimler Truck Penetration 46.8% +4pp Bus Penetration 16.9% +2.7pp

50 Dealer Satisfaction Index & Customer Satisfaction Index #1 PC Passenger Cars Overall Customer Satisfaction Index: 81 (84) Overall Dealer Satisfaction Index: 89 (91) Commercial Vehicles Overall Customer Satisfaction Index: 90 (87) Overall Dealer Satisfaction Index: 85 (80) C V Source: Nielsen

51 Conclusion

52 Leadership Culture Engineering our own blend of leaders

53 Strengthening leadership

54 From silos to swarm

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56 Disclaimer The MBSA revenue and EBIT figures in this document are preliminary and have neither been approved yet by the Board nor audited by the independent auditor. An external auditor has conducted a review of historic financial information in in accordance with International Standard on Review es engagements to review historical financial information other than interim financial information of an audit client. A review of historic financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. It is substantially less in scope than an audit conducted in accordance with International Standards on Auditing. Based on the review, nothing has come to the attention of the auditor that causes it to believe that the Revenue and EBIT numbers provided is not prepared, in all material respects, in accordance with the JSE Debt Listing Requirements and the recognition and measurement criteria of IFRS. This document contains forwardd to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions; events of force majeure including natural disasters, epidemics, acts of terrorism, political unrest, industrial l 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 utilise our production capacities etc. If any of these risks and uncertainties materialises 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.