daimler q2 and half-year 2017 results · q2 and half-year 2017 results / july 26, 2017 / page 21...

July 26, 2017

Q2 and Half-Year 2017 Results

Q2 and Half-Year 2017 Results / July 26, 2017 /

Daimler AG

Contents


Results for Q2 2017

Outlook for 2017

Development at the divisions

Daimler AG

Highlights of Q2 2017


Launch of the new S-Class sedan and start of production of the

E-Class Cabriolet

World premiere of the Concept A Sedan at Auto Shanghai

The Mercedes-Benz Untertürkheim plant will be further developed

into a high-tech location for electric components

Acquisition of 15% of LSH Auto International Limited to foster the

long-lasting cooperation with the Mercedes-Benz dealer group

Laying the foundation stone for the second battery plant in

Kamenz

Unit sales– in thousands of units –

Q2 2016 Q2 2017

761823

+8%

Net profit– in billions of euros –

Q2 2016 Q2 2017

2.5 2.5

+2%

Revenue– in billions of euros –

Q2 2016 Q2 2017

38.641.2

+7%

EBIT– in billions of euros –

Q2 2016 Q2 2017

3.33.7

+15%

Expansion of the ride-hailing business by investments in Clever

Taxi (Romania) and Careem (Dubai)

Presentation of the all-new heavy-duty truck FUSO Super Great

Daimler AG

Strong free cash flow in line with good business development


Free cash flow industrial business

H1 2017: €3.0 billion

Net industrial

liquidity

12/31/2016

Earnings and

other cash flow

impact

Working capital

impact

Other(mainly FX effects)

Net industrial

liquidity

6/30/2017

+1.0

18.4-0.819.7

+1.9

- in billions of euros -

+0.1

Sale of real

estate in Japan

and M&A effects

-3.5

Dividend payment

Daimler AG

Daimler AG

Strong financial and balance sheet figures support our

financial strength and A-rating


Daimler Group Dec. 31, 2016 June 30, 2017

Equity ratio 22.9% 24.6%

Gross liquidity 21.7 21.8

Funded status of pension obligations -7.8 -8.1

Funding ratio 75% 74%

Industrial business

Equity ratio 44.7% 47.9%

Net liquidity 19.7 18.4

Free cash flow (January-June) 2.1 3.0

in billions of euros

Daimler AG

Financial flexibility over a 12-month period


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

Available or short-term accessible liquidity is higher than the total

maturities over the next 12 months

A high financial flexibility is a key support to our A-Rating

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 businessAvailable oraccessible

liquidity

42.2

39.5

Maturitiesover next

12 months

Other

Bank loans

Bonds

Accountdeposits

Commercialpaper

- in billions of euros -

Creditfacility

LiquidityFinancialServices

Liquidityindustrialbusiness

ABSpotential

Daimler AG

Higher units sales in all divisions


Q2 2016 Q2 2017 % change

Daimler Group 761.3 822.5 +8

of which

Mercedes-Benz Cars 546.5 595.2 +9

Daimler Trucks 108.3 116.4 +8

Mercedes-Benz Vans 99.6 103.4 +4

Daimler Buses 7.0 7.5 +8

in thousands of units

Daimler AG

Mercedes-Benz Cars: product highlightsSales launch of the new S-Class sedan


Daimler AG

Mercedes-Benz Cars: product highlightsSeries production of the new E-Class Cabriolet has started at the plant in Bremen


Daimler AG

Mercedes-Benz Cars: product highlightsThe Concept A Sedan celebrated its world premiere at Auto Shanghai


Daimler AG

Daimler Trucks: product highlightsPresentation of the all-new heavy-duty truck FUSO Super Great


Daimler AG

Daimler Trucks: product highlightsFleetboard – the leading supplier of digital services for connected trucks


Daimler AG

Mercedes-Benz Vans: product highlightsMercedes-Benz Vito and Sprinter: “CEP* Vans of the Year 2017”


* courier, express and postal sectors

Daimler AG

Daimler Buses: product highlights


World premiere of the new touring coach Mercedes-Benz Tourismo RHD

Daimler AG

Daimler Financial Services: highlights Mobility ServicesOngoing business expansion


Members in millions

Cities

Combined

change*

+118%

+15%

2.6

26

8.2

>65

YTD 06/17

Transactions in millions

+156% 12.5 26.0

* car2go and mytaxi (incl. Taxibeat) combined, 06/17 (YTD) vs. 06/16 (YTD)

Daimler AG

Revenue by division


Q2 2016 Q2 2017 % change


of which

Mercedes-Benz Cars 22.1 23.6 +7

Daimler Trucks 8.7 9.0 +4

Mercedes-Benz Vans 3.4 3.3 -3

Daimler Buses 1.1 1.2 +3

Daimler Financial Services 5.0 5.9 +18

Contract volume of Daimler Financial Services* 132.6 134.2 +1


* figures as of December 31, 2016 and June 30, 2017

Daimler AG

Revenue by region


Q2 2016 Q2 2017 % change


of which

Europe 16.4 17.2 +4

of which Germany 6.2 6.0 -2

NAFTA 11.5 11.8 +3

of which United States 10.0 10.2 +2

Asia 8.4 9.6 +14

of which China* 3.9 4.7 +18

Other markets 2.3 2.6 +13


* excluding revenue of not fully consolidated companies

Daimler AG

EBIT by division


Q2 2016 Q2 2017

- EBIT in millions of euros; RoS/RoE in % - EBIT RoS/RoE* EBIT RoS/RoE*

Daimler Group 3,258 8.3 3,746 9.2

of which

Mercedes-Benz Cars 1,410 6.4 2,404 10.2

Daimler Trucks 621 7.2 543 6.0

Mercedes-Benz Vans 401 11.7 358 10.8

Daimler Buses 88 7.8 64 5.5

Daimler Financial Services 479 19.3 522 18.8

Reconciliation 259 – -145 –

* Return on sales for automotive business, return on equity for Daimler Financial Services; Daimler Group excluding Daimler Financial Services

Daimler AG

Group EBIT in Q2 2017


- in millions of euros -

-465 3,746

-2183,258

+135+278

• Cars +368• Trucks -14• Vans -57• Buses -19

• Cars +83• Trucks +23• Vans +22• Buses +7

• Cars -256• Trucks -127• Vans -68• Buses -14

+715

Actual

Q2 2016

Volume/

Structure/

Net pricing

Foreign

exchange

rates

Other cost

changes

Actual

Q2 2017

ReconciliationFinancial

Services

+43

Disclosed

items

Q2 2016

of which:

• Cars:Remeasurementof inventories +284

Patent dispute +64

• Cars and Vans:Takata airbags +499

• Reconciliation:Pension plan assets -605

Legal proceedings +400

Daimler AG

Contents


Results for Q2 2017

Outlook for 2017


Daimler AG

Mercedes-Benz Cars and Vans: continued product offensive


E-Class Coupé

E-Class All Terrain E-Class CabrioletS-Class facelift

AMG GT Roadster X-Class smart forfourelectric drive

smart cabrioelectric drive

GLA facelift smart fortwoelectric drive

20182017

Jan. Feb. March May June July August Sept. Oct. Nov. Dec.April

Daimler AG

Assumptions for automotive markets in 2017


* including light-duty trucks

Car markets

Global

Europe

Medium- and

heavy-duty truck

markets

NAFTA region

EU30

Japan*

Brazil

EU30

Bus marketsEU30

Brazil

+1 to 2%

slight decrease, with Class 8 weaker than Class 6-8

USA

Van markets

Indonesia*

China slight growth

USA

around the prior-year level


slight decrease


slight growth

significant growth from low level

slight growth

slight decrease

significant growth

slight growth

Daimler AG

2017 sales outlook


Significantly higher unit sales

Further growth particularly in China and Europe

Strong momentum especially from new E-Class models and SUV portfolio

Slightly higher unit sales

Unit sales around the prior-year level in Europe and Japan; slight growth in North America

Sales in Brazil around the low level of prior year; sales increase in Indonesia and India


Significant growth in core market EU30

Continued momentum from “Mercedes-Benz Vans goes global” strategy


Maintain market leadership in core markets

Moderate growth in EU30 region, significant sales increase in Brazil

Mercedes-Benz Cars

Daimler Trucks

Mercedes-Benz Vans

Daimler Buses

Daimler AG

2017 outlook for EBIT


Significantly above the prior-year level

Around the prior-year level

Slightly above the prior-year level

Around the prior-year level

Slightly above the prior-year level

We expect Group EBIT for FY 2017 to increase significantly

based on the following expectations for divisional EBIT:

Mercedes-Benz Cars

Daimler Trucks

Mercedes-Benz Vans

Daimler Buses

Daimler Financial Services

Daimler AG

Contents


Results for Q2 2017

Outlook for 2017


Daimler AG Q2 and Half-Year 2017 Results / July 26, 2017 /

Mercedes-Benz Cars: continued business growth based on

strong product portfolio

Unit sales – in thousands of units –

Q2 2016 Q2 2017


EBIT– in millions of euros –

547595

Q2 2016 Q2 2017

22.123.6

Q2 2016 Q2 2017

1,410

2,404

+9% +7% +70%

Daimler AG

Mercedes-Benz Cars: EBIT



* Return on sales

EBIT

Q2 2016

EBIT

Q2 2017

1,410

2,404

+ 994

6.4%*

10.2%*Higher unit sales

Foreign exchange rates

Negative one-time effects in Q2 2016, mainly

driven by Takata airbags and remeasurement

of inventories

Higher expenses for new technologies and

future products


Mercedes-Benz Cars: sales increase by 9% reflecting our

strong product line-up- in thousands of units -

Q2 2016

547

595

Q2 2017

112

122

100

18

6

113

128

58

23

6

smart

E-Class

C-Class

A-/B-Class

S-Class

Sports Cars37

40

SUVs180

201


Mercedes-Benz Cars: globally balanced sales structure

- in thousands of units -

Q2 2016

547

595

Q2 2017

150

78

85

185

117

87

84

172

Rest of world

Germany

United States

China

Europeexcl. Germany

87

97


Mercedes-Benz Cars in China: huge sales growth with higher

share of locally produced vehicles- in thousands of units -

208239

293

400

305

locally produced

imported

2017

YTD 06

201420132012 2015

108

100

123

116

147

146

150

250

94

211

488

2016

171

317


Daimler Trucks: unit sales and revenue above, EBIT below

prior year


Q2 2016 Q2 2017



108116

Q2 2016 Q2 2017

8.7 9.0

Q2 2016 Q2 2017

621543

+8% +4% -13%

Daimler AG

Daimler Trucks: EBIT



* Return on sales

EBIT

Q2 2016

EBIT

Q2 2017

621543

- 78

7.2%*

6.0%*

Efficiency enhancements

Customer service measures at

Mercedes-Benz Trucks


Daimler Trucks: sales increase by 8% mainly driven by

Indonesia and Middle East- in thousands of units -

* European Union, Switzerland and Norway

Q2 2016

108116

Q2 2017

20

42

7

36

20

41

7

30

Rest of world

Latin America

NAFTA region

EU30*

Asia

10

11


Daimler Trucks: incoming orders increase, primarily driven by

NAFTA region and Indonesia


- in thousands of units -

Q2 2016

94

114

Q2 2017

20

36

7

39

20

25

7

32

Rest of world

Latin America

NAFTA region

EU30*

Asia10

12


Mercedes-Benz Vans: strong development based on very

successful products


Q2 2016 Q2 2017



99.6 103.4

Q2 2016 Q2 2017

3.4 3.3

Q2 2016 Q2 2017

401358

+4% -11%-3%

Daimler AG

Mercedes-Benz Vans: EBIT



* Return on sales

EBIT

Q2 2016

EBIT

Q2 2017

401358

- 43

11.7%*

10.8%*

Lower warranty costs

Higher expenses for new technologies and

future products

End of contract manufacturing


Mercedes-Benz Vans: sales increase by 4% due to market

success of attractive product portfolio- in thousands of units -

Q2 2016

99.6103.4

Q2 2017

7.1

15.7

29.3

51.2

6.9

13.9

24.7

54.1

Vito

V-Class

Citan

Sprinter


Daimler Buses: positive development driven by strong

European business and higher unit sales in America


Q2 2016 Q2 2017



7.07.5

Q2 2016 Q2 2017

1.1 1.2

Q2 2016 Q2 2017

88

64

+8% +3% -27%

Daimler AG

Daimler Buses: EBIT



* Return on sales

EBIT

Q2 2016

EBIT

Q2 2017

88

64

- 24

7.8%*

5.5%*Efficiency enhancements

Lower unit sales in Turkey

Cost inflation in Latin America


Daimler Buses: sales increase by 8% mainly due to higher

demand in emerging markets- in thousands of units -

Q2 2016

7.0

7.5

Q2 2017

2.2

1.0

2.1

1.3

2.2

0.6

1.8

1.2

Rest of world

Brazil

Mexico

EU30*

Latin America(excl. Brazil and Mexico)

1.2

0.9



Daimler Financial Services: further business growth

New business – in billions of euros –

Q2 2016 Q2 2017

Contract volume– in billions of euros –


15.4

17.9

12/31/2016 6/30/2017

132.6 134.2

Q2 2016 Q2 2017

479522

+16% +1% +9%

Daimler AG

Daimler Financial Services: EBIT



* Return on equity

EBIT

Q2 2016

EBIT

Q2 2017

479522

+ 43

19.3%*18.8%*

Higher contract volume

Cost of risk

Higher interest-rate level


Daimler Financial Services: further increase in contract

volume to 134.2 billion euros (+1%)- in billions of euros -

12/31/2016

132.6 134.2

6/30/2017

23.0

33.1

51.3

26.7

21.8

31.6

54.2

24.9

Americas

Europe (excl. Germany)

Germany

Africa & Asia-Pacific


Daimler Financial Services: net credit losses* at low level

due to disciplined risk approach

* as a percentage of portfolio, subject to credit risk

0.69% 0.68%

0.50%

0.61%

0.36%

0.51%

0.89%0.83%

0.43%

0.34% 0.37%0.31%

0.24%0.31%

0.24%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2017

YTD

2015 2016

Daimler AG

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.

daimler q2 and half-year 2017 results · q2 and half-year 2017 results / july 26, 2017 / page 21...

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