FY 2017 Corporate Presentation Daimler Corporate Presentation / FY 2017 /
Contents Divisional information Group financials Daimler Group Strategy Outlook Funding Appendix Daimler Corporate Presentation / FY 2017 / Page 2
Mercedes-Benz Cars: continued business growth based on strong product portfolio Unit sales Revenue EBIT in thousand units in billion euros in million euros 2,198 2,374 89.3 94.7 8,112 9,207 +8% +6% +13% 2016 2017 2016 2017 2016 2017 Daimler Corporate Presentation / FY 2017 / Page 3
Mercedes-Benz Cars Sales increase by 8% reflecting our strong product line-up in thousand units 27 2,198 144 25 2,374 136 smart Sports Cars 712 823 SUVs* 84 304 79 398 S-Class E-Class 490 493 C-Class 435 420 A-/B-Class 2016 2017 * incl. GLA Daimler Corporate Presentation / FY 2017 / Page 4
Mercedes-Benz Cars: EBIT in million euros + 1,095 9.1%* 8,112 Higher unit sales Foreign exchange rates Remeasurement of the equity investment in THERE Holding B.V. Negative one-time effects in 2016, mainly driven by Takata airbags and remeasurement of inventories Higher expenses for new technologies, future products and production capacity Higher expenses for raw material Expenses for voluntary service activities and a specific vehicle recall 9.7%* 9,207 * Return on sales EBIT 2016 EBIT 2017 Daimler Corporate Presentation / FY 2017 / Page 5
Daimler Trucks: rising demand in core markets in the course of the year Unit sales Revenue EBIT in thousand units in billion euros in million euros 415 471 33.2 35.7 1,948 2,380 +13% +8% +22% 2016 2017 2016 2017 2016 2017 Daimler Corporate Presentation / FY 2017 / Page 6
Daimler Trucks Sales increase by 13% mainly driven by NAFTA region and Asia in thousand units 471 415 37 125 27 146 44 149 31 165 Rest of world Asia Latin America NAFTA region 80 82 EU30* 2016 * European Union, Switzerland and Norway 2017 Daimler Corporate Presentation / FY 2017 / Page 7
Daimler Trucks Incoming orders increase primarily driven by NAFTA region and Indonesia in thousand units 501 47 Rest of world 386 36 162 Asia 125 26 119 29 180 Latin America NAFTA region 80 83 EU30* 2016 * European Union, Switzerland and Norway 2017 Daimler Corporate Presentation / FY 2017 / Page 8
Daimler Trucks: EBIT in million euros + 432 5.9%* 1,948 Higher unit sales especially in the NAFTA region Sale of real estate at the Kawasaki site in Japan Efficiency enhancements Higher expenses for raw material Expenses for fixed cost optimization 6.7%* 2,380 * Return on sales EBIT 2016 EBIT 2017 Daimler Corporate Presentation / FY 2017 / Page 9
Mercedes-Benz Vans: strong development based on very successful products Unit sales Revenue EBIT in thousand units in billion euros in million euros 359 401 12.8 13.2 1,170 1,181 +12% +3% +1% 2016 2017 2016 2017 2016 2017 Daimler Corporate Presentation / FY 2017 / Page 10
Mercedes-Benz Vans: EBIT in million euros + 11 9.1%* Higher unit sales 9.0%* Foreign exchange rates 1,170 1,181 Prior-year figures included expenses related to Takata airbags and workforce adjustments in Germany Higher expenses for new technologies and products End of contract manufacturing EBIT 2016 EBIT 2017 * Return on sales Daimler Corporate Presentation / FY 2017 / Page 11
Daimler Buses: EBIT at the high prior-year level Unit sales Revenue EBIT in thousand units in billion euros in million euros 26.2 28.7 4.2 4.4 249 243 +9% +4% -2% 2016 2017 2016 2017 2016 2017 Daimler Corporate Presentation / FY 2017 / Page 12
Daimler Buses: EBIT in million euros - 6 6.0%* 5.6%* Sales increase in Latin America 249 243 Further efficiency enhancements Cost inflation mainly in Latin America Foreign exchange rates EBIT 2016 EBIT 2017 * Return on sales Daimler Corporate Presentation / FY 2017 / Page 13
Daimler Financial Services: further business growth New business in billion euros Contract volume in billion euros EBIT in million euros 61.8 70.7 132.6 139.9 1,739 1,970 +14% +6% +13% 2016 2017 12/31/2016 12/31/2017 2016 2017 Daimler Corporate Presentation / FY 2017 / Page 14
Daimler Financial Services: EBIT in million euros + 231 17.4%* 1,739 Higher contract volume Cost of risk Higher interest-rate level Expenses for new businesses 17.6%* 1,970 * Return on equity EBIT 2016 EBIT 2017 Daimler Corporate Presentation / FY 2017 / Page 15
Contents Divisional information Group financials Daimler Group Strategy Outlook Funding Appendix Daimler Corporate Presentation / FY 2017 / Page 16
Key figures in billion euros 2016 2017 Unit sales (in thousands of units) 2,998 3,274 Revenue 153.3 164.3 EBIT 12.9 14.7 Net profit 8.8 10.9 Free cash flow of the industrial business 3.9 2.0 Earnings per share (in euros) 7.97 9.84 Dividend per share (in euros) 3.25 3.65 Daimler Corporate Presentation / FY 2017 / Page 17
Continued high level of net industrial liquidity in billion euros Free cash flow industrial business FY 2017: 2.0 billion +6.1-1.2-3.0 19.7 +0.1-3.5-1.6 16.6 Net industrial liquidity 12/31/2016 Earnings and other cash flow impact Working capital impact Contribution into German pension plan assets Sale of real estate in Japan and M&A effects Dividend payment Other (mainly FX effects) Net industrial liquidity 12/31/2017 Daimler Corporate Presentation / FY 2017 / Page 18
Further investment growth as a basis for profitable growth and development of future mobility in billion euros 15.5 16.3 10.5 10.5 11.6 13.5 5.9 6.7 7.4 Investment in property, plant and equipment 7.6 8.7 8.9 Research and development expenditure Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Plan 2018/19 (average p.a.) Daimler Corporate Presentation / FY 2017 / Page 19
Contents Divisional information Group financials Daimler Group Strategy Outlook Funding Appendix Daimler Corporate Presentation / FY 2017 / Page 20
CORE, CASE, CULTURE, COMPANY: We have set the course for a successful future Daimler Corporate Presentation / FY 2017 / Page 21
Clear aspiration for all divisions Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services Most successful premium manufacturer No 1 in the global Truck business Most successful company in global Vans business No 1 in the global Bus business Best financial and mobility services provider Daimler Corporate Presentation / FY 2017 / Page 22
Profit targets Profit targets Return on sales / Return on Equity1) in % 8-10 8 9 6 17 Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services Return on sales target for the automotive business: 9 percent 1) Daimler Financial Services Daimler Corporate Presentation / FY 2017 / Page 23
Daimler Group Strategy Mercedes-Benz Cars Core Daimler Corporate Presentation / FY 2017 / Page 24
Mercedes-Benz Cars Globally balanced sales structure in thousand units 2,198 383 2,374 403 Rest of world 666 314 347 488 694 320 338 619 Europe excl. Germany Germany United States China 2016 2017 Daimler Corporate Presentation / FY 2017 / Page 25
Mercedes-Benz Cars in China: huge sales growth with higher share of locally produced vehicles in thousand units imported locally produced 619 488 196 400 171 293 150 208 108 239 123 147 250 317 423 100 116 146 2012 2013 2014 2015 2016 2017 Daimler Corporate Presentation / FY 2017 / Page 26
Mercedes-Benz Network Development in China Number of Outlets +27 +37 +106 +55 502 529 566 447 +79 +55 341 +41 262 166 207 2010 2011 2012 2013 2014 2015 2016 2017 Daimler Corporate Presentation / FY 2017 / Page 27
Rear wheel drive Made in China for China: we re producing four car models and three engine models at BBAC M270 M274 E-Class (V/W 213) GLC (X253) + As announced in July 2017, a localized BEV model under EQ brand will be produced in BBAC C-Class (V/W 205) M276 GLA (X156) Daimler Corporate Presentation / FY 2017 / Page 28
Mercedes-Benz Cars and Vans: continued product offensive G-Class GLC F-CELL* Mercedes-Maybach S-Class Pullmann S-Class Coupé S-Class Cabriolet CLS A-Class C-Class Sedan C-Class Wagon C-Class Coupe C-Class Convertible and more to come 2018 Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Oct. X--Class Sprinter Study Cars state market introduction dates, long versions China and Mercedes-AMG not stated respectively among more to come *pre-production vehicle Daimler Corporate Presentation / FY 2017 / Page 29
The new Mercedes-Benz G-Class - luxury off-road vehicle and design icon Daimler Corporate Presentation / FY 2017 / Page 30
The new Mercedes-Benz CLS - unique design combined with luxurious interior Daimler Corporate Presentation / FY 2017 / Page 31
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 / FY 2017 / Page 32
High degree of modularity of the entire drive train Daimler Corporate Presentation / FY 2017 / Page 33
Our roadmap for sustainable mobility High-tech combustion engines Plug-in hybrids Electric vehicles with battery or fuel-cell Daimler Corporate Presentation / FY 2017 / Page 34
Development of CO 2 emissions Average CO 2 -emissions in g/km Mercedes-Benz Cars fleet in Europe 230 CO 2 -emissions in (g/km) 173 160 158 150 140 134 129 123 123 125 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 2016 2017 2020 * Target value for average weight of European fleet. Daimler Corporate Presentation / FY 2017 / Page 35
48 Volt electrification: Several advantages regarding CO2 and comfort NVH Calm starting of autoamtic 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 / FY 2017 / Page 36
Hybrid offensive as further step to reach CO 2 targets Daimler Corporate Presentation / FY 2017 / Page 37
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 Corporate Presentation / FY 2017 / Page 38
Our target: remain No.1 premium car manufacturer achieved already in 2016! Sales target In thousand units Profitability target Return on Sales in % 2,198 8-10% No. 1 2,373 Corridor during transition phase 2016 2017 2020 Daimler Corporate Presentation / FY 2017 / Page 39
Daimler Group Strategy Mercedes-Benz Cars CASE Daimler Corporate Presentation / FY 2017 / Page 40
Daimler Corporate Presentation / FY 2017 / Page 41
Revolution in the cockpit: Mercedes-Benz User Experience Touchpads Touchscreen Hey Mercedes Speech Control Daimler Corporate Presentation / FY 2017 / Page 42
Development steps towards fully autonomous 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 Singe control functions such as speed selection, braking or lane keeping are automated. Driver in charge. More than one control function is automated. Driver expected to take care of all remaining aspects of the dynamic driving task. Vehicle can perform the dynamic driving task in certain modes. Driver expected to respond to requests to take control. Vehicle can perform the dynamic driving task in certain modes. Driver not expected to respond to requests to take control. Vehicle can perform the dynamic driving task in all modes that can also be managed by a human driver. No driver needed. Autonomous Driving + enabler for new & complementary mobility services Daimler Corporate Presentation / FY 2017 / Page 43
The S-Class - On the way to autonomous and accident-free driving Daimler Corporate Presentation / FY 2017 / Page 44
Sensors for Driver Assistance Package Daimler Corporate Presentation / FY 2017 / Page 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 / FY 2017 / Page 46
Intelligent World Drive: On our road to autonomy Daimler Corporate Presentation / FY 2017 / Page 47
In the future - driver controlled and system controlled Driver controlled System controlled 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 / FY 2017 / Page 48
Bundling of our forces with Bosch Aim: To put fully automated driving and driverless cars on the road in urban environments by early in the next decade. 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 / FY 2017 / Page 49
New brand EQ Electric mobility @Mercedes-Benz Cars Daimler Corporate Presentation / FY 2017 / Page 50
EQ concept vehicle with battery-electric drive Daimler Corporate Presentation / FY 2017 / Page 51
Foundation of new Mercedes-Benz electric vehicle strategy Daimler Corporate Presentation / FY 2017 / Page 52
New e-mobility platform: modular set up of drive train technologies will allow a variety of derivatives Illustrative Daimler Corporate Presentation / FY 2017 / Page 53
Ambitious definition of our EV market targets Daimler Corporate Presentation / FY 2017 / Page 54
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 Peking EQ Vehicles Battery 1) Competence center for EQ production 2) smart production Daimler Corporate Presentation / FY 2017 / Page 55
Taking electric mobility further: Setup of eroaming and loading infrastructure together with strong partners Home Work 80 % 20 % Charging Processes Highway Public Charging Stations 1) 2) 3) Founding shareholder of the eroaming platform Hubject JV for high-power charging network for BEVs in Europe Partnership with ChargePoint: Support of market entry in Europe 1) 2012/ VW 2017 2) Contract 2016 3) Contract 2017 Daimler Corporate Presentation / FY 2017 / Page 56
Creating synergies for electrification across the group Daimler Corporate Presentation / FY 2017 / Page 57
Daimler Group Strategy Daimler Trucks Core Daimler Corporate Presentation / FY 2017 / Page 58
Our strategy @ Daimler Trucks Innovation Leadership Global Platforms Global Market Presence Daimler Corporate Presentation / FY 2017 / Page 59
A true global player with strong brands in all key markets NAFTA EU 30 #1 #1 #3 Russia Japan #2 Brazil #4 India China Daimler Corporate Presentation / FY 2017 / Page 60
Daimler Trucks further strengthens its global footprint NAFTA: All new heavy-duty truck New Cascadia Captive Powertrain New medium-duty engine Brazil: New Atego & Actros Brazil 2017 2022: 600 mn. investment Europe: MB Uptime & Fleetboard App Store MB Sideguard Assist & Active Brake Assist 4 Russia: Ramp-up cabin production with Joint Venture partner Kamaz India: Adding another 10 export markets for FUSO trucks ex Chennai China: Production of Auman trucks with joint venture partner Foton Indonesia: Japan: local production of MB heavyduty trucks New heavy-duty truck and new brand E-FUSO Entering new markets in LatAm, Africa, Asia, Australia with Regional Centers Daimler Corporate Presentation / FY 2017 / Page 61
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 / FY 2017 / Page 62
Intelligent Platform Management: leveraging our global scale in technology & cost Heavy-duty engines Medium-duty engines Transmissions EU LA China Chassis Electric/ Electronic Cab architecture Daimler Corporate Presentation / FY 2017 / Page 63
Captive component strategy to strengthen market leadership in NAFTA Penetration rate integrated powertrain in % 94 95 64 75 Year End 2016 Year End 2017 Heavy-Duty Engines HDEP Year End 2016 Year End 2017 Automated Manual Transmission DT12 Daimler Corporate Presentation / FY 2017 / Page 64
Sticking to our target: leader in the truck industry Sales target In thousand units Profitability target Return on Sales in % 415 471 over the cycle 8% 2016 2017 2020 Daimler Corporate Presentation / FY 2017 / Page 65
Daimler Group Strategy Daimler Trucks CASE Daimler Corporate Presentation / FY 2017 / Page 66
Daimler trucks are online in every region with the Mercedes-Benz Actros, Freightliner New Cascadia and FUSO Super Great Daimler Corporate Presentation / FY 2017 / Page 67
Connectivity: boosting logistics performance Mercedes-Benz Uptime Fleetboard Store Improves uptime by analyzing real-time data Detects potential breakdown situations Organizes pit-stop in case of emergency Optimizes regular workshop stops One-stop-shop for apps on transport & logistics Open to all industry partners Daimler Corporate Presentation / FY 2017 / Page 68
Connectivity: boosting logistics performance Detroit Connect Analytics Detroit Connect Remote Updates Improves fuel and safety performance by - detecting changes in fuel consumption & recommending - safety event reporting (hard braking, lane departures) Analysis on trip, vehicle and fleet basis Flash Over the Air service for engine, transmission & aftertreatment firmware Remote access on the truck (max vehicle speed, idle shut down) from customer office Daimler Corporate Presentation / FY 2017 / Page 69
Safety: semi-autonomous 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 other regions Daimler Corporate Presentation / FY 2017 / Page 70
Testing Truck Platooning in Europe, North America & Asia 2016 2017 2018 Daimler Corporate Presentation / FY 2017 / Page 71
Light and heavy all-electric trucks for urban distribution FUSO ecanter 2017: our first all-electric, series-produced light-duty truck 2019: larger scale production Mercedes-Benz Electric Truck 2016: world premiere 2018: innovation fleet Beg. of next decade: series production E-FUSO Vision One 2017: world premiere ~2021 market introduction Daimler Corporate Presentation / FY 2017 / Page 72
Daimler Group Strategy Mercedes-Benz Vans Core & CASE Daimler Corporate Presentation / FY 2017 / Page 73
Mercedes-Benz Vans Sales increase by 12% due to market success of attractive product portfolio in thousand units 359.1 401.0 193.4 200.5 Sprinter 92.1 111.8 Vito 48.7 24.9 2016 59.3 V-Class 3.3 X-Class 26.1 Citan 2017 Daimler Corporate Presentation / FY 2017 / Page 74
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 / FY 2017 / Page 75
Our target: Most successful company in global Van business Sales target In thousand units Profitability target Return on Sales in % 359 401 >500 over the cycle 9% 2016 2017 2020 Daimler Corporate Presentation / FY 2017 / Page 76
Daimler Group Strategy Daimler Buses Core & CASE Daimler Corporate Presentation / FY 2017 / Page 77
Daimler Buses Sales increase by 9% mainly driven by Latin America in thousand units 26.2 3.8 4.9 4.9 3.8 28.7 3.9 5.5 7.2 3.4 Rest of world Latin America (excl. Brazil and Mexico) Brazil Mexico 8.8 8.7 EU30* 2016 * European Union, Switzerland and Norway 2017 Daimler Corporate Presentation / FY 2017 / Page 78
The future of public transport Daimler Corporate Presentation / FY 2017 / Page 79
Our target: Undisputed leader in the bus industry Sales target In thousand units Profitability target Return on Sales in % 26.2 28.6 ~45 over the cycle 6% 2016 2017 2020 Daimler Corporate Presentation / FY 2017 / Page 80
Daimler Group Strategy Daimler Financial Services Core Daimler Corporate Presentation / FY 2017 / Page 81
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 Corporate Presentation / FY 2017 / Page 82
WE FINANCE NEARLY EVERY SECOND VEHICLE SOLD BY DAIMLER 31% Penetration rates per vehicle segment 42% 27% 56% Global penetration rate DFS in 2017 ~51% Daimler Corporate Presentation / FY 2017 / Page 83
Managing a portfolio of 140 billion in 40 countries (Portfolio by region in % as of December 31, 2017) Americas 36% Europe 43% 9% China 12% Daimler Corporate Presentation / FY 2017 / Page 84
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% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 * as a percentage of portfolio, subject to credit risk Daimler Corporate Presentation / FY 2017 / Page 85
Our target: first-choice provider of financial and mobility services Portfolio target In EUR bn Profitability target Return on Equity in % 132.6 139.9 > Annual growth 5.5% 17% 2016 2017 2020 Daimler Corporate Presentation / FY 2017 / Page 86
Daimler Group Strategy Daimler Financial Services CASE Daimler Corporate Presentation / FY 2017 / Page 87
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 / FY 2017 / Page 88
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 2017 1.4+ million users Top-ranked Android & Apple app $ 2 bn in 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 / FY 2017 / Page 89
Daimler Mobility Services Total customers in m 17.8 8.5 4.2 2.0 1.1 0 5 10 15 Daimler Corporate Presentation / FY 2017 / Page 90
Three main pillars of our mobility business The world's first taxi app and the leading e-hailing app in Europe, available in over 80 cities within 13 countries. In Europe, a mytaxi hail is accepted every second by one of mytaxi s 120,000+ drivers. The worldwide leading free floating carsharing concept. The car2go service is used by 3.0m 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 3.7m users worldwide via our services: ticketing apps, on-demand shuttle service, fare connect Daimler Corporate Presentation / FY 2017 / Page 91
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 Chauffeur Privé GENERATE NEW REVENUE BY ENTERING A THREE-DIGIT BILLION USD MARKET Flixbus shareholding Blacklane shareholding EXTEND DAIMLER ECOSYSTEM BY OFFERING ONE-STOP SHOPPING Via shareholding Careem shareholding 17.8mn 116mn >100 CUSTOMERS INTERACTIONS CITIES PREPARE FOR THE FUTURE BY BUILDING CUSTOMER BASE AND SKILLS GROW CUSTOMER BASE BY ADRESSING THEIR FINANCE & MOBILITY NEEDS * YTD December 2017; numbers for car2go, moovel, mytaxi, Taxibeat and CleverTaxi. Daimler Corporate Presentation / FY 2017 / Page 92
Daimler Mobility Services: ongoing business expansion YTD 12/17 Combined change* 24.9 22.3 68.9 +132% Transactions in millions 26 16** >70 +22% Cities 3.0 3.7 11.1 +109% Members in millions * car2go, moovel and mytaxi (incl. Taxibeat since 02/17 and Clevertaxi since 06/17) combined, 12/17 (YTD) vs. 12/16 (YTD) ** Number of cities with ticketing capability of public transit Daimler Corporate Presentation / FY 2017 / Page 93
Building an integrated mobility ecosystem VEHICLE MANUFACTURER ASSET PROVIDER FLEET OPERATOR SERVICE PLATFORM MULTI-MODAL 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 Somebody needs to turn various mobility options into one-stopshopping solutions and ensure integration into smart city transportation solutions Consuming mobilityas-a-service/ self-driving car services Daimler Corporate Presentation / FY 2017 / Page 94
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 / FY 2017 / Page 95
Daimler Group Strategy Culture Daimler Corporate Presentation / FY 2017 / Page 96
CULTURE: Redefining our way of collaboration Daimler Corporate Presentation / FY 2017 / Page 97
Transforming the Mindset Daimler Corporate Presentation / FY 2017 / Page 98
The future of our corporate culture Daimler Corporate Presentation / FY 2017 / Page 99
HIGH 5 Newsletter 2016 2015 2014 2013 2010 2011 2012 Re-Manufacturing 2008 2009 Mercedes-Benz Ex-Factory Driving Aids Daimler Corporate Presentation / FY 2017 / Page 100
Silicon Valley Mobility Stuttgart Future of Mobility Beijing Digital Lifestyle China OUR Global Partner Network Austin, TX Mobility DAIMLER NETWORK STARTUP AUTOBAHN NETWORK Brazil Sales Trucks Singapore IT Sales / DFS Overseas Daimler Corporate Presentation / FY 2017 / Page 101
Daimler Group Strategy Company Daimler Corporate Presentation / FY 2017 / Page 102
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 Daimler Corporate Presentation / FY 2017 / Page 103
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 guarantees until the end of 2029 and an extraordinary pension contribution of 3 billion. Current activities include an extensive and thorough due diligence of all economic, tax-related and organizational issues of the projected structure. Analyses comprise more than 700 subsidiaries in more than 60 countries. In the case of a positive result of the current feasibility study, the Board of Management and Supervisory Board would give the go-ahead for the new company structure in the course of the year 2018. Finally, the new structure would need approval from at least 75% of the Daimler shareholders at the Annual General Meeting in 2019. Given the size and complexity of the project, we are well on track. Daimler Corporate Presentation / FY 2017 / Page 104
Contents Divisional information Group financials Daimler Group Strategy Outlook Funding Appendix Daimler Corporate Presentation / FY 2017 / Page 105
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 around the prior-year level significant growth * including light-duty trucks Daimler Corporate Presentation / FY 2017 / Page 106
2018 sales outlook Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Slightly higher unit sales Further growth particularly in China Strong momentum 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 growth in EU30 region, China 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 Latin America Daimler Corporate Presentation / FY 2017 / Page 107
2018 outlook for EBIT We expect Group EBIT for FY 2018 to be around 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 Around the prior-year level Significantly above the prior-year level Slightly below the prior-year level Significantly above the prior-year level Around the prior-year level Daimler Corporate Presentation / FY 2017 / Page 108
Contents Divisional information Group financials Daimler Group Strategy Outlook Funding Appendix Daimler Corporate Presentation / FY 2017 / Page 109
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 / FY 2017 / Page 110
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 2009 2017 in % 10 80 +22% 73% 75% 86% 8 60 64% 5.3% 63% 5.0% 66% 4.7% 59% 63% 62% 6 40 3.1% 3.4% 2.6% 4 20 1.9% 1.9% 1.8% 2 0 2009 2010 2011 2012 2013 2014 2015 2016 12/2017 Discount Rate Funded Ratio Daimler Group 0 Extraordinary contribution of EUR 3.0 bn in cash to German pension plans and positive asset returns in 2017 lead to a funded ratio of 86%. Daimler Corporate Presentation / FY 2017 / Page 111
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 13.0 2.2 10.8 11.9 1.8 10.1 18.1 3.0 15.1 16.3 2.8 13.5 18.2 2.8 15.4 21.7 3.5 18.2 22.1 3.7 18.4 12.0 11.5 13.8 19.7 18.6 17.0 16.6 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017 Note: Figures may not be additive due to rounding. Daimler Corporate Presentation / FY 2017 / Page 112
Financing Liabilities Structure 2013 2017 in billions of EUR Other Com. Paper ABS Acc. Deposits Bank Loans Bonds 77.7 6.1 11.3 19.1 1.4 1.1 86.4 6.0 10.9 22.9 1.5 2.3 100.6 7.4 10.5 27.3 1.5 3.0 117.6 10.6 11.6 29.7 1.0 1.7 127.4 11.0 11.5 34.6 2.0 1.0 38.7 42.9 50.8 63.0 67.3 2013 2014 2015 2016 2017 Note: Figures may not be additive due to rounding. Daimler Corporate Presentation / FY 2017 / Page 113
Consequent development to global bond funding Diversification will continue Daimler Corporate Presentation / FY 2017 / Page 114
Funding Base further diversified to a true Global Set-Up in billions of EUR 127,4 2% 9% 1% 9% Other Com. Paper ABS Acc. Deposits Bank Loans Bonds 57,3 22% 23% 51% Q4 2009 2% 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% Q4 2017 Currency Volume % EUR 30,5 46% USD 23,7 35% GBP 3,2 5% CAD 2,6 4% CNY 2,2 3% ZAR 1,6 2% AUD 0,7 1% KRW 0,6 1% INR 0,3 0% NOK 0,3 0% THB 0,3 0% Other (JPY, MXN 0,9 1% HKD, BRL, NZD, ARS) Total 67 Currencies 17 Note: Figures may not be additive due to rounding. Daimler Corporate Presentation / FY 2017 / Page 115
Financial Flexibility increased by extending our maturity profile in billions of EUR as of 15 November 2017 14.0 13.8 13.3 1.6 2.4 5.8 Total issued in 2017: EUR 21.5 bn thereof EUR 9.7 bn (45%) with maturity 2022 Issued in 2017 Maturities 7.7 12.4 10.9 8.0 1.9 5.9 4.1 2.3 1.9 1.3 3.2 1.3 1.9 2.3 1.3 1.1 1.0 1.7 1.3 1.5 0.2 1.3 1.3 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2037 Daimler Corporate Presentation / FY 2017 / Page 116
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 / FY 2017 / Page 117
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 / FY 2017 / Page 118
Contents Divisional information Group financials Daimler Group Strategy Outlook Funding Appendix Daimler Corporate Presentation / FY 2017 / Page 119
Strong financial and balance sheet figures support our financial strength and A-rating in billion euros Daimler Group Dec. 31, 2016 Dec. 31, 2017 Equity ratio 22.9% 24.0% Gross liquidity 21.7 22.1 Funded status of pension obligations -7.8-4.5 Funding ratio 75% 86% Industrial business Equity ratio 44.7% 46.4% Net liquidity 19.7 16.6 Free cash flow 3.9 2.0 Daimler Corporate Presentation / FY 2017 / Page 120
Dynamic sales development of all automotive divisions in thousand units 2016 2017 % change Daimler Group 2,998.4 3,273.9 +9 of which Mercedes-Benz Cars 2,198.0 2,373.5 +8 Daimler Trucks 415.1 470.7 +13 Mercedes-Benz Vans 359.1 401.0 +12 Daimler Buses 26.2 28.7 +9 Daimler Corporate Presentation / FY 2017 / Page 121
Revenue by division in billion euros 2016 2017 % change Daimler Group 153.3 164.3 +7 of which Mercedes-Benz Cars 89.3 94.7 +6 Daimler Trucks 33.2 35.7 +8 Mercedes-Benz Vans 12.8 13.2 +3 Daimler Buses 4.2 4.4 +4 Daimler Financial Services 20.7 23.8 +15 Contract volume of Daimler Financial Services* 132.6 139.9 +6 * figures as of December 31, 2016 and December 31, 2017 Daimler Corporate Presentation / FY 2017 / Page 122
Revenue by region in billion euros 2016 2017 % change Daimler Group 153.3 164.3 +7 of which Europe 63.4 68.4 +8 of which Germany 23.5 23.9 +2 NAFTA 45.0 46.9 +4 of which United States 39.2 40.5 +3 Asia 35.6 38.8 +9 of which China* 16.0 18.3 +14 Other markets 9.3 10.2 +10 * excluding revenue of not fully consolidated companies Daimler Corporate Presentation / FY 2017 / Page 123
Group EBIT in 2017 in million euros +1,698 +314-1,394 +1,341 14,682 12,902 Cars +1,278 Trucks +443 Vans -42 Buses +19 Cars +298 Trucks -2 Vans +58 Buses -40 Cars -1,054 Trucks -209 Vans -137 Buses +6 +231-503 +93 of which: Cars: Voluntary service activities and specific vehicle recall -425 New investors in HERE +183 Trucks: Sale of real estate in Japan +267 Fixed cost optimization -172 Reconciliation: Impairment reversal BAIC Motor +240 of which: Cars: Remeasurement of inventories +238 Cars and Vans: Takata airbags +563 Trucks, Vans, Buses: Workforce adjustments +138 Reconciliation: Contribution to pension plan -605 Legal proceedings +400 Impairment BAIC Motor +244 Currency transactions +241 Actual 2016 Volume/ Structure/ Net pricing Foreign exchange rates Other cost changes Financial Services Reconciliation Disclosed items 2017 Disclosed items 2016 Actual 2017 Daimler Corporate Presentation / FY 2017 / Page 124
Group EBIT in Q4 2017 in million euros 3,459 +750 Cars +287 Trucks +390 Vans +65 Buses +8-276 Cars -174 Trucks -54 Vans -19 Buses -29-373 Cars -352 Trucks -67 Vans +16 Buses +30 +27-188 +71 3,470 of which: Cars: Voluntary service activities and specific vehicle recall +28 Trucks: Fixed cost optimization -78 Cars, Trucks, Vans: Restructuring of own dealer network* +71 Cars, Vans: Takata airbags* +33 Trucks, Vans, Buses: Workforce adjustments* +17 Actual Q4 2016 Volume/ Structure/ Net pricing Foreign exchange rates Other cost changes Financial Services Reconciliation Disclosed items Actual Q4 2017 * in Q4 2016 Daimler Corporate Presentation / FY 2017 / Page 125
EBIT by division 2016 2017 EBIT in million euros; RoS/RoE in % EBIT RoS/RoE* EBIT RoS/RoE* Daimler Group 12,902 8.4 14,682 9.0 of which Mercedes-Benz Cars 8,112 9.1 9,207 9.7 Daimler Trucks 1,948 5.9 2,380 6.7 Mercedes-Benz Vans 1,170 9.1 1,181 9.0 Daimler Buses 249 6.0 243 5.6 Daimler Financial Services 1,739 17.4 1,970 17.6 Reconciliation -316-299 * Return on sales for automotive business, return on equity for Daimler Financial Services; Daimler Group excluding Daimler Financial Services Daimler Corporate Presentation / FY 2017 / Page 126
EBIT in Q4 2017 Q4 2016 Q4 2017 EBIT in million euros; RoS/RoE in % EBIT RoS/RoE* EBIT RoS/RoE* Daimler Group 3,459 8.7 3,470 8.1 of which Mercedes-Benz Cars 2,561 10.7 2,422 9.7 Daimler Trucks 347 4.1 555 5.8 Mercedes-Benz Vans 156 4.5 248 6.6 Daimler Buses 77 6.0 88 6.8 Daimler Financial Services 390 15.2 417 14.2 Reconciliation -72-260 * Return on sales for automotive business, return on equity for Daimler Financial Services; Daimler Group excluding Daimler Financial Services Daimler Corporate Presentation / FY 2017 / Page 127
Development of dividend per share in euros + 62% 3.65 3.25 3.25 2.25 2.45 2013 2014 2015 2016 2017 (proposed) Daimler Corporate Presentation / FY 2017 / Page 128
Capital expenditure / Research and development in billion euros Investment in property, plant and equipment Research and development expenditure 5.9 6.7 7.4 7.6 8.7 8.9 Actual 2016 Actual 2017 Plan 2018/2019 (average p.a.) Actual 2016 Actual 2017 Plan 2018/2019 (average p.a.) Daimler Corporate Presentation / FY 2017 / Page 129
Capital expenditure / Research and development in billion euros Investment in property, plant and equipment Research and development expenditure Actual 2016 Actual 2017 Plan* 2018-2019 Actual 2016 Actual 2017 Plan* 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 5.5 5.7 6.6 7.0 Daimler Trucks 1.2 1.0 1.2 1.3 1.3 1.3 Mercedes-Benz Vans 0.4 0.7 0.4 0.4 0.6 0.5 Daimler Buses 0.1 0.1 0.1 0.2 0.2 0.2 Daimler Financial Services 0.04 0.04 0.05 * average p.a. Daimler Corporate Presentation / FY 2017 / Page 130
Daimler Investor Relations Events Q1-2018 Feb 22-23 2018 CFO Roadshow London, Frankfurt Feb 26 Mar 02 2018 CFO Roadshow USA: East Coast, West Coast Mar 6-7 2018 Geneva Motor Show 2018 Geneva Q1 2018 IR Roadshow Belgium, Netherlands Q1 2018 IR Roadshow Munich Jun 05-06 2018 Capital Market Day Daimler Trucks Portland, OR, USA Daimler Corporate Presentation / FY 2017 / Page 131
Daimler Investor Relations Financial Calendar 2018 Feb 01 2018 Full Year Results 2017 Annual Press Conference Feb 02 2018 Investor and Analyst Conference Feb 13 2018 Annual Report 2017 online available Apr 05 2018 Annual Meeting 2018 Apr 27 2018 Interim Report 1st Quarter 2018 Jul 26 2018 Interim Report 2nd Quarter 2018 Oct 25 2018 Interim Report 3nd Quarter 2018 For latest dates please see https://www.daimler.com/investors/events/financial-calendar/ Daimler Corporate Presentation / FY 2017 / Page 132
Disclaimer The figures in this document are preliminary and have neither been approved yet by the Supervisory Board nor audited by the external auditor. 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. Daimler Corporate Presentation / FY 2017 / Page 133