German Investment Conference UniCredit Group,

Transcription

1 German Investment Conference UniCredit Group, Dr. Michael Mühlbayer Senior Vice President, Investor Relations and Treasury, Daimler AG Stuttgart

2 2 Contents Actuals Q and Outlook 2013 Mercedes-Benz Strategy Daimler Trucks Strategy Financing Strategy

3 3 Daimler s identity: a unique combination of leading technologies, strong brands and market leverage Daimler Group

4 4 Daimler strategy: Combining growth and efficiency across the entire group Growth Strategies Strengthening core business Growing in new markets Leading in green and safety technologies Shaping new mobility services Daimler Group Efficiency Programs Modularization Cost reduction Flexibility

5 5 Actuals Q Highlights of Q Group unit sales 605,800 (+6%) Record unit sales at Mercedes-Benz Cars 404,700 (+9%) Strong order intake at Daimler Trucks 125,800 (+19%) Increased share of core markets World premiere of new S-Class Launch of new E-Class coupe and convertible Euro VI portfolio of Mercedes-Benz trucks completed by new Arocs and new Atego Sale of remaining stake in EADS

6 6 Actuals Q Key financials - in billions of euros - Q Q Revenue EBIT* as reported from ongoing business Net profit* Earnings per share (in euros)* Net liquidity industrial business (2012: year-end) Free cash flow industrial business * The previous year s figures have been adjusted, primarily for effects arising from application of the amended version of IAS 19. Additional information on the adjustments to the prior-year figures is disclosed in chart No. 40 of this presentation.

7 7 Net industrial liquidity: development in Q in billions of euros - Actuals Q Free cash flow industrial business Q2 2013: 3.5 billion Net liquidity industrial 3/31/2013 Earnings and other cash flow impact Working capital impact EADS and other M&A Dividend payment Daimler AG Other Net liquidity industrial 6/30/2013

8 8 Actuals Q Unit sales - in thousands of units- Q Q % change Daimler Group of which Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses

9 Actuals Q EBIT by division - EBIT in millions of euros; RoS in % - Q Q EBIT RoS* EBIT RoS* Daimler Group 2, , of which Mercedes-Benz Cars 1, , Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services Reconciliation -72 3,217 * Return on sales; Daimler Group excluding Daimler Financial Services German Investment Conference - Dr. Michael Mühlbayer,

10 10 Capital expenditure / Research and development - in billions of euros - Actuals Q2 2013

11 11 Outlook 2013 Assumptions for automotive markets in 2013 Car markets Global Western Europe U.S./Asia +2% to +4% decline growth in China and USA Truck markets NAFTA region Europe Japan Brazil up to -5% around -5% up to -5% up to +10% Van markets Europe around -5% Bus markets Western Europe Brazil at prior year s level moderate growth

12 Outlook 2013 Sales outlook FY 2013 Further unit sales increase Strong momentum from new compact cars and SUVs Launch of new CLA, E-Class and S-Class Unit sales slightly above prior year Further increase based on strong product portfolio Growth of market share in major regions Growth in unit sales Support from new Citan city van and new generation of Sprinter Launch of Sprinter Classic in Russia Higher unit sales Growth supported by new Mercedes-Benz Citaro and Setra 500 Maintain market leadership in core markets German Investment Conference - Dr. Michael Mühlbayer,

13 expectations for EBIT from ongoing business Outlook 2013 Second half of 2013: Significant earnings improvement expected compared with the level of the first half, due to planned new models, increasing effects of the efficiency measures that have been initiated and assumptions made for the development of markets important to Daimler. Full year 2013: Daimler Group: Based on our current market expectations and since there will be no further equity-method earnings from EADS, Group EBIT from ongoing business is expected to be below the previous year s level. Mercedes-Benz Cars: Full-year EBIT is expected to be below the previous year s level. Daimler Trucks and Mercedes-Benz Vans: Full-year EBIT is expected in the magnitude of the prior year. Daimler Buses: Earnings are expected to be better than in the prior year and the following years: Improvements in operative profit expected for all automotive divisions and for the Group. Daimler Financial Services: Stable development of earnings anticipated in the next two years.

14 14 Contents Actuals Q and Outlook 2013 Mercedes-Benz Strategy Daimler Trucks Strategy Financing Strategy

15 15 Divisions Mercedes-Benz Cars On our way to leadership in the premium segment

16 16 Divisions Mercedes-Benz Cars Four levers of Mercedes-Benz 2020 Brand Product Sales Profit

17 Divisions Mercedes-Benz Cars Brand: Development of brand value and perception Product reliability AMS Survey % Safety AMS Survey % Perception of advertisement AMS Survey % Good aftersales AMS Survey % Competitor A Competitor B German Investment Conference - Dr. Michael Mühlbayer,

18 18 Divisions Mercedes-Benz Cars Products: Adding 12 new models to our existing portfolio by 2020

19 19 Divisions Mercedes-Benz Cars Products: Our new A-Class

20 20 Divisions Mercedes-Benz Cars Products: Our new CLA-Class

21 21 Divisions Mercedes-Benz Cars Products: Our new E-Class Family

22 22 Divisions Mercedes-Benz Cars Products: SUV Offensive Our new GLK-, G- and GL-Class

23 23 Products: New compact SUV the new GLA Divisions Mercedes-Benz Cars

24 24 Products: Our flagship the new S-Class Divisions Mercedes-Benz Cars

25 25 Products: Our flagship the new S-Class Divisions Mercedes-Benz Cars

26 26 Products: Our flagship the new S-Class Divisions Mercedes-Benz Cars

27 27 Products: The new Concept S-Class Coupé Divisions Mercedes-Benz Cars

28 28 Mercedes-Benz Vans Product highlights New Mercedes-Benz Sprinter

29 29 Divisions Mercedes-Benz Cars & Vans Launch of new vehicles Mercedes-Benz Cars & Vans Compact cars A-Class CLA-Class GLA-Class C-, E-, S-Class E-Class E-Class coupe and convertible S-Class C-Class S-Class coupe SUV/smart GL-Class smart Vans Citan Sprinter Classic Russia Sprinter Mid-size van

30 30 Products: Three essential drive systems Divisions Mercedes-Benz Cars

31 31 Divisions Mercedes-Benz Cars Reducing CO2 emissions Average CO 2 emissions per kilometer of our Mercedes-Benz Car fleet in Europe

32 32 Divisions Mercedes-Benz Cars Connecting growth and efficiency

33 33 Mercedes-Benz Cars: Fit for Leadership Divisions Mercedes-Benz Cars Flight path towards benefits Key levers Additional top-line effects Cost reductions *Implementation level as of H1 2013: 30% 2.0bn Material costs/net-zero approach Further reduction of hours per vehicle Optimization of funding requirements Reduction of fixed costs Increased efficiency in application of funds Higher flexibility of MBC business model 30%* 12/ / /2014

34 34 Divisions Mercedes-Benz Cars Module strategy on track Rollout of module strategy within all passenger car models, schematic representation

35 35 Divisions Mercedes-Benz Cars We are picking up the pace in China

36 36 Divisions Mercedes-Benz Cars Future Sales Structure in China - Imports and Domestic Wholesale

37 37 Divisions Mercedes-Benz Cars Integrated sales organization put locally produced and imported Mercedes cars under one roof

38 38 Divisions Mercedes-Benz Cars Dealer network expansion will be further accelerating both in quantity and quality Mercedes-Benz PC Network Development Number of outlets, including AS only outlets The 2 nd largest training Mercedes-Benz Training Center worldwide

39 39 Divisions Mercedes-Benz Cars In 2013, we ll celebrate 7 product premieres in China New A-Class LWB E-Class Facelift New S-Class E-Class Coupe Facelift E-Class Cabriolet Facelift New CLS Shooting Break New GL-Class

40 40 Divisions Mercedes-Benz Cars Overall, we will introduce around 20 new or face-lifted vehicles in China by 2015

41 41 Divisions Mercedes-Benz Cars Further developed our sales activities regarding our financial services

42 42 Divisions Mercedes-Benz Cars Extension of local R&D capacity and competence Road Testing Telematic & Infotainment Mercedes-Benz Advanced Design Center

43 43 Divisions Mercedes-Benz Cars By 2015 two flexible manufacturing networks will be established We will be more flexible: Within products across plants Within plants across products Within architecture across plants and products

44 44 Divisions Mercedes-Benz Cars Financial Outlook and Targets Sales leadership Milestones: >1.5 in 2014 / >1.6 in 2015 Technology leadership Milestone: 125 g CO 2 / km fleet average in 2016 Flexible footprint and productivity improvement Milestone: HPV 30h in 2015 Capital and cost discipline Milestones: CapEx Ratio ~7% / R&D Ratio ~6% Strategic Return Target 10% RoS on average

45 45 Contents Actuals Q and Outlook 2013 Mercedes-Benz Strategy Daimler Trucks Strategy Financing Strategy

46 46 Divisions Daimler Trucks DT#1 with right structure to strengthen leadership position: As global as possible, as local as necessary"

47 47 Divisions Daimler Trucks The foundation for profitable growth has been laid with a strong product pipeline with new global platforms SFTP Cascadia Super Great HDEP Actros Brazil Antos Severe Duty Line Canter Hybrid MDEG/HDEP Bharat Benz Auman Product offensive to continue over next years

48 48 Divisions Daimler Trucks Product highlights Mercedes-Benz Actros, Antos and Arocs

49 49 Divisions Daimler Trucks Product highlights BharatBenz product portfolio

50 50 Divisions Daimler Trucks Product highlights New Mercedes-Benz SLT

51 51 Daimler Buses Product highlights Mercedes-Benz Citaro Euro VI Mercedes-Benz Citaro FuelCELL-Hybrid New Setra ComfortClass 500 New Setra TopClass 500

52 52 Divisions Daimler Trucks Buses Launch of new vehicles Daimler Trucks & Buses Trucks Antos Arocs Atego Unimog Actros/Arocs SLT Trucks Canter Eco Hybrid BharatBenz HDT Cascadia Evolution BharatBenz LDT/MDT HDT/LDT Fuso Super Great Buses Citaro Euro VI Travego Euro VI ComfortClass 500 Setra TopClass 500

53 53 Divisions Daimler Trucks BRIC expansion: Excellent global coverage of Triad and Brazil RIC coverage implemented in Unit sales ('000) Triad JV Kamaz and BFDA (Auman) DICV 1. Excluding JV sales Auman brand Target of selling 500 thousand 1 units in 2013 and 700 thousand 1 in 2020

54 54 Platform and module strategy to fully leverage commonality for powertrain and vehicles Common platforms for all brands Divisions Daimler Trucks Engines Transmissions Exhaust aftertreatment Common powertrain components Axles Cabin Chassis Shared vehicle modules Mechatronics

55 55 Divisions Daimler Trucks Increasing Global Commonality of Engines and Powertrain Components Strong product base......and a clear vision HDEP/MDEG The new global engine platforms Integrated Powertrain with global application (Daimler inside) PowerShift Perfect integration for high performance Common Axle Platform Cutting edge, globally

56 Scale benefits of common modules just starting Divisions Daimler Trucks Up to 70% of vehicle sharable Significant scale benefits (example engine) SFTP cost structure Other Market specific Cost index on synergy parts (in %) 100% HD engine volumes Production Frame/cabin Common vehicle platform, ca. 20% Mechatronics Axle Transmission Global Powertrain, sharing, ca. 50% Engine German Investment Conference - Dr. Michael Mühlbayer,

57 Further flexibility in global production network Selected facility flexibility across 27 sites Divisions Daimler Trucks Germany Mannheim Wörth USA Portland/OR Redford/MI Turkey Aksaray Japan Kawasaki Mexico Saltillo Santiago Tianguistenco Indonesia Jakarta Brazil São Bernardo do Campo German Investment Conference - Dr. Michael Mühlbayer,

58 58 Divisions Daimler Trucks Flexibility Measures: Strong progress in increasing DT's flexibility in production plants Wörth, Mount Holly NC, Kawasaki +30% units/year -30% units/year Workforce flexibility Flexible working hours Flexible shift models Flexible cycle time units/day

59 59 Technology dynamics will lead to significant vehicle upgrading Share of total M/HDT market Divisions Daimler Trucks 24% 29% High-end 32% 55% "Modern Domestic" Mid Market 43% 16% Low-end Not targeted Strong DT lineup in "Modern Domestic" to play leading role in RIC Products from DT toolbox localized to RIC needs

60 Divisions Daimler Trucks TCO increasingly relevant as key driver for customer decisions Typical operator cost structure (triad) DT benchmark in fuel efficiency - example Europe - Actros 1844 (Euro V) New Actros 1845 (Euro V) New Actros 1845 (Euro VI) Labor Tax, insurance, overhead, toll fee Fuel Service Vehicle purchase 26% 10% 29% 9% 3x % l/100 km Benchmark ,1 l/100 km 25.9 l/100 km -4.5 % Truck influenced % New global engine generation ensures benchmark position in all regions Source: Bundesverband Güterkraftverkehr, Logistik und Entsorgung; Trucker's Report German Investment Conference - Dr. Michael Mühlbayer,

61 61 Divisions Daimler Trucks Accelerating Global Excellence: Daimler Trucks #1

62 62 Divisions Daimler Trucks Daimler Trucks #1 Flight path towards benefits Key levers *Implementation level as of H1 2013: 30% Top-line 1.6bn 30% Cost reductions 70% Sales and aftersales push Module strategy to realize global scale New Asia Business Model Strong efficiency push in all operating units: Fixed costs Material costs Production costs Warranty and quality costs 30%* 12/ / /2014

63 63 Divisions Daimler Trucks Financial Outlook and Targets Outlook 2013 Increase in unit sales and EBIT in the magnitude of the prior year expected Target We continue to target a RoS of 8% on average over the cycle, supported by DT#1, however, from a later starting point. Sales leadership Milestones: over 500k in 2015 / 700k in 2020 Technology leadership We offer the best products in terms of TCO and fuel efficiency, globally. Our vision No. 1 in the global truck industry and sustainable leadership in profitability. DT#1 targets benefits of 1.6 B, coming from Sales / After Sales Push, variable / fixed cost reduction and platform/module rollout

64 64 Contents Actuals Q and Outlook 2013 Mercedes-Benz Strategy Daimler Trucks Strategy Financing Strategy

65 65 Financing Strategy Key balance-sheet figures - in billions of euros - Daimler Group Dec. 31, 2012 June 30, 2013 Equity ratio 22.7%* 24.0% Gross liquidity Industrial business Equity ratio 39.8%* 41.4% Net liquidity * Figures adjusted primarily for effects arising from application of the amended version of IAS 19. Additional information on the adjustments to the prior-year figures is disclosed in chart No. 40 of this presentation.

66 Financing Strategy Group s rating position German Investment Conference - Dr. Michael Mühlbayer,

67 Financing Strategy Financing liabilities as of June 30, 2013 in billions of (as reported) Other CP ABS Account Deposits % 15% Bank Loans 20 25% Bonds 39 50% German Investment Conference - Dr. Michael Mühlbayer,

68 Financing Strategy Automotive value chain 80% of profits are generated after the production phase financial services account for a large share of these profits. Financial services however requires the majority of the Groups funding volume. 20% 35% 35% 10% Production and Sales Financial services (financing, leasing, etc.) After-sales (service, spare parts) Pre-ownedvehicles Source: IXIS Securities, Mercer, Booz Allen Hamilton, Arthur D. Little 2006 German Investment Conference - Dr. Michael Mühlbayer,

69 Financing Strategy Worldwide access to capital markets Capital market programs: US offerings 144a / RegS Documentation Euro MTN Program (35 bn EUR, multi currency and multi issuers) Local Programs established in Mexico, Argentina, South Africa, Thailand und Japan In future: India, China, Korea, Brazil and others to be added, when capital markets open and funding requirements justify the effort German Investment Conference - Dr. Michael Mühlbayer,

70 Financing Strategy Bond Issuances by currencies / in billions of bn ytd 9.5 bn. NOK; 4% JPY; 3% ZAR; 4% Others; 4% AUD; 4% CAD; 5% EUR; 36% GBP; 2% ZAR; 4% Others; 4% AUD; 4% CAD; 5% JPY; 2% USD; 50% GBP; 9% USD; 30% EUR; 29% German Investment Conference - Dr. Michael Mühlbayer,

71 General policy: asset liability matched funding Financing Strategy Liquidity matched funding Interest rate matched funding Currency matched funding Country matched funding German Investment Conference - Dr. Michael Mühlbayer,

72 Disclaimer 72