11. Structured FINANCE. Funding strategies in emerging markets. Ronny Flohr, November

Transcription

1 11. Structured FINANCE Funding strategies in emerging markets Ronny Flohr, November

2 Contents DAIMLER GROUP KEY FINANCIAL FIGURES DAIMLER TREASURY ORGANIZATION DAIMLER GROUP FUNDING PRINCIPLES DAIMLER MÉXICO AN OVERVIEW DAIMLER MÉXICO LOCAL FUNDING 2

3 Highlights of Q Group unit sales Highest unit sales so far at Mercedes-Benz Cars Increase in EBIT from ongoing business 720, , bn +13% +18% +31% World premieres at the IAA 2015 of S-Class Cabriolet, C-Class Coupé and smart cabrio World premiere of the new generation of the Euro VI engine OM 471 for Mercedes-Benz heavy-duty trucks Presentation of the new Mercedes-Benz Citaro NGT Agreement on joint acquisition of HERE digital mapping business together with Audi AG and BMW Group 3

4 Daimler Group key financials in billions of EUR Q Q Revenue EBIT as reported EBIT from ongoing business Net profit Earnings per share (in euros) Free cash flow industrial business (January-September) Dec 31, 2014 Sept 30, 2015 Equity ratio - Daimler Group 22.1% 24.1% Gross liquidity - Daimler Group Equity ratio - Industrial business 40.8% 44.3% Net liquidity - Industrial business

5 Contents DAIMLER GROUP KEY FINANCIAL FIGURES DAIMLER TREASURY ORGANIZATION DAIMLER GROUP FUNDING PRINCIPLES DAIMLER MÉXICO AN OVERVIEW DAIMLER MÉXICO LOCAL FUNDING 5

6 Daimler Treasury the global footprint 3 regional centers and 8 hubs in regulated financial markets with (production) exposure Montvale Utrecht Stuttgart Mexico City Chennai Beijing Bangkok Tokyo Singapore Sao Paulo Pretoria Melbourne AMERICAS in Montvale EMEA in Stuttgart APAC in Singapore Regional Treasury Centers = Center of Compentence with several countries serviced Regional Treasury Centers = Center of Compentence with one country serviced Daimler International Finance 6

7 Daimler Treasury a process-driven organization Central Location: HQ, Stuttgart Decentral Location: Region Strategic Decision Corporate Finance & Asset Liability Management Market Price Risk & Pension Management (FX-, CO, Pension Management) Export Credit & Trade Finance Treasury Controlling Execution & Decision within strategic parameters Regions Europe, Americas, Asia Pacific Financial Management of Group Companies/ Corporate Finance Execution of Strategies & Financial Transactions Cash Positioning/ Management Local Export Credit Treasury Settlement 7

8 Contents DAIMLER GROUP KEY FINANCIAL FIGURES DAIMLER TREASURY ORGANIZATION DAIMLER GROUP FUNDING PRINCIPLES DAIMLER MÉXICO AN OVERVIEW DAIMLER MÉXICO LOCAL FUNDING 8

9 Our funding strategy is built on prudent principles Targeting Financial Independence 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 Maximizing Financial Flexibility Stringent Global Funding Policy 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 9

10 Financial flexibility is key liquidity management tool General approach: Maturities of next 12 months need to be covered by financial flexibility* * Financial flexibility = Cash + Committed Credit Facilities + Receivables available for sale (RAFS) ABS Potential Credit Facility Liqui FS Liqui IB available Liquidity ~ 100% Maturity Other CP ABS Bank Loans Bonds Acc. Dep. The final size and structure of the financial flexibility is decided by ALCO and is the result of a liquidity risk evaluation process Ensures repayment of maturing debt in case of stress scenarios Agencies see necessity to support growing FS business with sufficient liquidity 10

11 Continuity and reliability define Daimler s bank relationships Balance Sheet Support (committed/drawn credit facilities) Deposits Cash Management Derivatives Capital Market Mandates Criteria for business allocation: Execution Capabilities Competitiveness Service and Quality Business allocation is tracked and reviewed on a regular basis 11

12 Contents DAIMLER GROUP KEY FINANCIAL FIGURES DAIMLER TREASURY ORGANIZATION DAIMLER GROUP FUNDING PRINCIPLES DAIMLER MÉXICO AN OVERVIEW DAIMLER MÉXICO LOCAL FUNDING 12

13 Three production facilities and a logistic center Saltillo Coahuila annual capacity 44,000 units Santiago Tianguistenco, Edo de México, annual capacity 36,564 units Monterrey N.L. annual capacity 9,490 units San Luis Potosí, parts distribution center 13

14 Daimler México Group corporate structure 1. Daimler México, S.A. de CV Debt issuer 99% 99.% 99% 99% 99.9% 99% 2. Mercedes-Benz Desarrollo de Mercados, S. de R.L. de C.V. 3. Daimler Vehículos Comerciales México, S. de R. L. de C.V. 4. Mercedes-Benz Mexico, S. de R.L. de C.V. 5. Daimler Financial Services México, S. de R.L de C.V. 6. DAIPRODCO México S. de RL de CV 7.Daimler Servicios Corporativos, S. de R.L. de C.V. 99% 8. Daimler Manufactura, S.A. de C.V. 99% 9. Detroit Diesel Allison, S. de R. L. de C.V 10. Polomex, S.A. de C.V. 26% 99% 11. Daimler Financial Services, S.A. de C.V. S.O.F.O.M. E.N.R. 1 Major shareholder for Daimler Group entities in Mexico. 2 Commercial Vehicles sales entity. 3 Commercial Vehicles manufacturer entity. 4 Mercedes-Benz cars sales entity. 5 Financial Services entity. 6 Dormant company. 7 Service Provider - holds the FS, MB and Daimler Mexico employees. 8 Service Provider holds the Commercial Vehicles employees. 9 Government sales and dealer s support. 10 Joint venture with Marcopolo to assembly buses. 11 Financial Services entity (specialized in urban bus market). 14

15 Daimler México Group key financials in millions of MXN YTD Q YTD Q Revenue 16,390 20,235 EBIT 1,129 1,422 Net Profit Daimler Group in Mexico Dec 31, 2014 Sept 31, 2015 Total Debt 24,295 24,594 Equity Ratio of Industrial business* 38.2% 37.9% Gross Liquidity 2,941 2,656 *Total Assetsl/Equity (Industrial business) 15

16 Contents DAIMLER GROUP KEY FINANCIAL FIGURES DAIMLER TREASURY ORGANIZATION DAIMLER GROUP FUNDING PRINCIPLES DAIMLER MÉXICO AN OVERVIEW DAIMLER MÉXICO LOCAL FUNDING 16

17 Daimler México funding setup Targeting Financial Independence No dependence from single markets Loans, bonds, CP s, IC-loans Diversification of funding sources and instruments No covenants, no MAC, no asset pledges, no CSAs 8 core banks defined (plus off-shore backups) 100% of core banks under standard contract Maximizing Financial Flexibility Cash and Committed Credit Facility Global and local banks first Early capital market funding Minimum cash targets applied Credit facilities doubled First frequent issuer MTN program in sector Stringent Global Funding Policy Liquidity matched funding Interest rate matched funding Currency matched funding Closed ALM position in each portfolio On-shore MXN funding Off-shore USD funding Country matched funding No synthetics in own books 17

18 Sep 2015 Dec 2011 Funding optimization 2012 through 2015 (MXN+USD) in millions of MXN DFSMex Debt Mix DMex Group Debt Mix DMex Group Maturity Profile 50% $14,304 26% 7% 21% 17,888 ~78% 14,001 24% 72% 12,941 9,166 1,823 1,725 2,064 2,050 FY Banks IC (=USD) Capital Market USD MXN 24,594 48% $18,343 10% 42% 40% 25% 35% 18,510 5,835 4,760 ~45% 7,720 6,750 8,878 5,000 2,162 2,000 FY

19 Five strategic adjustments between 2012 and Alignment of maturity structure 2. Creation of sufficient credit line environment Setup of contractual framework (8 1 standard framework) Unlocking of required capacities (MXN +9.0bn) Ensuring utilization rates 3. Implementation of an effective capital market program Increased flexibility (tripled in size, 18 instruments, three currencies, exchange control regime clause) Early adopter of frequent issuer option (improved time-to-market) Improved G&A procedures for legal, audit, regulation and rating 4. Optimization of funding mix Increase utilization of bonds by MXN 3.0bn Increase of CP s from MXN 1.0bn to MXN 3.0bn 5. Cash management improvements First in-house bank structure in Mexico outside the financial sector implemented Payment automation projects initiated 19

20 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 worsening of the sovereign-debt crisis and increasing uncertainty in the euro zone; an increase in political tension in Eastern Europe; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, acts of terrorism, political unrest, 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 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. 20