Corporate Presentation First Quarter 2013

Transcription

1 Corporate Presentation First Quarter 2013

2 Contents Actuals Q Daimler Group Divisions Outlook 2013 Additional Information to the First Quarter Appendix 2

3 Actuals Q Development in Q Very weak European markets at the beginning of 2013 Demand for passenger cars, trucks and vans in Europe lower than expected Weak demand for trucks in North America and Japan In USA, high demand for passenger cars and early signs of recovery of the truck market Increase in market share in core markets In China, sales of Mercedes-Benz passenger cars not yet back on a sustainable growth path Great acceptance of the new A- and CLA-Class Very positive response to the new E-Class Product offensive of Daimler Trucks largely completed by new Arocs and new Atego 3

4 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 were adjusted for the effects of the application of the revised IAS 19. Further information related to the adjustments of the prior-year figures is disclosed in charts no. 38 and 39 of this presentation. 4

5 Actuals Q Key balance-sheet figures - in billions of euros - Daimler Group Dec. 31, 2012 March 31, 2013 Equity ratio 22.7%* 22.5% Gross liquidity Industrial business Equity ratio 39.8%* 38.3% Net liquidity * Figures adjusted for the effects of the application of the revised IAS 19. Further information related to the adjustments of the prior-year figures is disclosed in charts no. 38 and 39 of this presentation. 5

6 Net industrial liquidity: Development in Q in billions of euros - Actuals Q Free cash flow industrial business Q1 2013: minus 1.2 billion * Net liquidity industrial 12/31/2012 Earnings and other cash flow impact Working capital impact M&A Other Net liquidity industrial 3/31/2013 * Including investments in property, plant and equipment and capitalized development cost of 1.4 billion 6

7 Actuals Q Unit sales - in thousand units- Q Q % Change Daimler Group of which Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses

8 Actuals Q Product highlights New E-Class A-Class A 45 AMG New CLA-Class 8

9 Actuals Q Product highlights Mercedes-Benz Arocs Mercedes-Benz Antos Freightliner Cascadia BharatBenz trucks Auman truck Fuso Canter Eco Hybrid 9

10 Actuals Q Product highlights Mercedes-Benz Sprinter, Vito and Citan 10

11 Actuals Q Product highlights Mercedes-Benz Citaro Euro VI Setra ComfortClass 500 Mercedes-Benz Travego Euro VI 11

12 Actuals Q Revenue by segment - in billions of euros - Q Q % Change Daimler Group of which Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services Contract volume of Daimler Financial Services* * Figures as of December 31, 2012 and March 31,

13 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 * Return on sales; Daimler Group excluding Daimler Financial Services 13

14 Contents Actuals Q Daimler Group Divisions Outlook 2013 Additional Information to the First Quarter Appendix 14

15 Daimler Group Daimler s identity: a unique combination of leading technologies, strong brands and market leverage 15

16 Daimler Group Daimler strategy: Combining growth and efficiency across the entire group 16

17 Combining growth and efficiency in every division Examples for Mercedes-Benz Cars and Daimler Trucks Daimler Group 17

18 Daimler Group Our growth targets 18

19 Daimler Group Our financial targets 19

20 Contents Actuals Q Daimler Group Divisions Outlook 2013 Additional Information to the First Quarter Appendix 20

21 Divisions Mercedes-Benz Cars On our way to leadership in the premium segment 21

22 Divisions Mercedes-Benz Cars Balanced sales structure - Unit sales in thousands Rest of world Western Europe excl. Germany Germany Q Q USA China 22

23 Increase in unit sales mainly of A-/B-Class and SUVs - Unit sales in thousands - Divisions Mercedes-Benz Cars smart SUV segment A-/B-Class C-Class Q Q E-Class S-Class 23

24 Divisions Mercedes-Benz Cars Four levers of Mercedes-Benz

25 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 25

26 Divisions Mercedes-Benz Cars Adding 13 new models to our existing portfolio by

27 Divisions Mercedes-Benz Cars Products: Our new E-Class Family 27

28 Divisions Mercedes-Benz Cars Products: Our new A-Class 28

29 Divisions Mercedes-Benz Cars Products: Our new CLA-Class 29

30 Products: Our new CLS Shooting Brake Divisions Mercedes-Benz Cars 30

31 Divisions Mercedes-Benz Cars Products: Our new SL-Class 31

32 Divisions Mercedes-Benz Cars Products: SUV Offensive Our new GLK-, G- and GL-Class 32

33 Products: Three essential drive systems Divisions Mercedes-Benz Cars 33

34 Divisions Mercedes-Benz Cars Reducing CO2 emissions Average CO 2 emissions per kilometer of our Mercedes-Benz Car fleet in Europe 34

35 Divisions Mercedes-Benz Cars Connecting growth and efficiency 35

36 Mercedes-Benz Cars: Fit for Leadership Divisions Mercedes-Benz Cars Flight path towards benefits Key levers Additional top-line effects Cost reduction We aim to achieve a significant portion of cost reduction by the end of bn Material costs/net-zero approach Further reduction of hours per vehicle Optimization of funding requirements Reduction of fixed costs Increase of efficiency in use of funds Higher flexibility of MBC business model 12/ / /

37 Accelerated achievement of Net Zero Divisions Mercedes-Benz Cars 37

38 Divisions Mercedes-Benz Cars Module strategy on track Rollout of module strategy within all passenger car models, schematic representation 38

39 Divisions Mercedes-Benz Cars Increasing productivity even further Mercedes-Benz passenger cars: reduction of hours per vehicle 39

40 Structural improvement in our China business Divisions Mercedes-Benz Cars 40

41 Divisions Mercedes-Benz Cars Strategic investment in BAIC motor 41

42 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 42

43 Divisions Daimler Trucks DT#1 with right structure to strengthen leadership position: As global as possible, as local as necessary" 43

44 Divisions Daimler Trucks Sales decrease especially in Asia - in thousands of units Rest of world Asia Latin America NAFTA region 13 Q Q Western Europe 44

45 Divisions Daimler Trucks Truck industry offers positive mid-term dynamics 1 3.6% p.a. global growth, increasing relevance of RIC 2 Convergence of emission regulations 3 TCO increasingly relevant for customers 4 Vehicle upgrading "Modern Domestic" becoming biggest segment 5 Structural growth of high margin aftersales business

46 Divisions Daimler Trucks Mid-term industry dynamics give DT a clear advantage over its regional competitors in the future Industry trends Triad recovery and BRIC growth Convergence of emission regulations Vehicle upgrading new "Modern Domestic" Profit potential High Medium Key Peers Global winners Daimler Trucks Increasing TCO relevance Profit growth in aftersales Low Low Consolidation targets Medium Asia challengers High Growth potential

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 Divisions Daimler Trucks Achieving global scale effects 48

49 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

50 Divisions Daimler Trucks Accelerating Global Excellence: Daimler Trucks #1 50

51 Divisions Daimler Trucks Daimler Trucks #1 Flight path towards benefits Key levers We aim to achieve a significant portion of cost reduction by the end of 2013 Top-line 1.6bn 30% Cost reduction 70% Sales and aftersales push Module strategy to realize global scale Future Asia Business Model Strong efficiency push in all Operating Units: Fixed costs Material costs Production costs Warranty and quality costs 12/ / /

52 Divisions Daimler Trucks DT#1 with right structure to strengthen leadership position: As global as possible, as local as necessary" Operating Unit Excellence Programs Cross-business excellence initiatives Trucks EU/LA Trucks NAFTA Trucks Asia Global Powertrain MB TRUCKS#1 Road to Leadership Fuso 2015 GET Full Power 2 4 OU Excellence Initiatives covering our global business Sales and Aftersales push Cost optimization Quality push People and high performance culture 8 Work packages for synergy effects WP1: Daimler Trucks business portfolio WP2: Sales push (white spots) WP3: Truck sales & marketing dedication WP4: Aftersales & downstream push WP5: DT product strategy & management WP6: New setup Truck Product Engineering WP7: Lean Daimler Trucks WP8: Asia business Model

53 Divisions Daimler Trucks Eight cross-business work-packages to achieve our vision Our Vision: We are No. 1 in the global Truck business, create superior value for our customers and are benchmark for quality and profitability, Wave 1 WP 1 WP 2 WP 3 WP 4 WP 5 WP 6 WP 7 WP 8 DT business portfolio Sales push (white spots) Truck S&M dedication Aftersales/ downstream push DT product strategy and management New TP setup Lean DT Asia business model Optimize funding allocation and portfolio: Businesses Products Projects Cooperations Develop untapped or not yet fully covered markets and product segments Optimize international market management model Optimize truck dedication and customer orientation for MB Europe Further improve integrated services for our customers Enhance global aftersales and remanufactur-ing business Realize global scale and sourcing advantages through enhanced platform/module strategy and optimized material costs Develop future TP setup Improve R&D allocation and efficiency Focus on platform, module and commonality Optimize indirect functions Establish lean processes and mindset Develop integrated business model for Asia to increase Asia market exploitation

54 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

55 Contents Actuals Q Daimler Group Divisions Outlook 2013 Additional Information to the First Quarter Appendix 55

56 Outlook 2013 Launch of new vehicles Compact cars New A-class New CLA-class New GLA-class Sedans New E-class New E-class New S-class coupe and cabriolet New C-class Trucks New Antos New Cascadia New Arocs New Atego New Unimog New Generation Evolution Fuso Super Great Vans New Citan Sprinter Classic Russia New Generation Sprinter New mid-size van Buses New Citaro Euro VI Travego Euro VI New Comfort- Class 500 New Setra TopClass

57 Assumptions for automotive markets in 2013 Outlook 2013 Car markets Global Western Europe U.S./Asia +2% to +4% decline growth in China and USA Truck markets NAFTA 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 57

58 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 Increase in unit sales Support from new city van Citan 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 58

59 Outlook expectations for EBIT from ongoing business Second half of 2013: Earnings improvement expected compared with the level of the first half, due to the planned new models, the assumptions made for the development of markets important to Daimler and the increasing effects of the efficiency measures that have been initiated. Full year 2013: Daimler: Due to the fact that there will be no further equity-method results from EADS in the course of the year as well as lowered market expectations and the weaker than expected EBIT in the first quarter, Group EBIT from the 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 higher 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. 59

60 Contents Actuals Q Daimler Group Divisions Outlook 2013 Additional Information to the First Quarter Appendix 60

61 Agenda 1 Mercedes Benz Passenger Cars Rollout of new Products MBC Business in China Fit For Leadership 2 Daimler Trucks Renewal of the Product Portfolio Daimler Trucks #1 61

62 MBC Retail Sales Development in April April 2013 April 2012 Change in % YTD 2013 YTD 2012 Change in % Mercedes-Benz ,7 % ,6 % of which: A-/B-/CLA-Class ,7 % ,0 % C-/SLK-Class ,6 % ,8 % E-/CLS-Class ,2 % ,7 % S-/CL/SL-Class/ SLS/Maybach ,9 % ,2 % M-/R-/GLK-/GL-/ ,5 % ,5 % G-Class smart ,5 % ,9 % Mercedes-Benz Cars ,0 % ,6 % Europe (incl. Germany) ,7 % ,2 % of which: Germany ,5 % ,4 % NAFTA ,4 % ,8 % Asia/Pacific ,0 % ,9 % of which: China (incl. Hongkong) ,0 % ,6 % Mercedes-Benz sold in April 11.7% more vehicles to customers than last year. In April, Mercedes-Benz also posted a double-digit sales increase in Europe, gained market shares, and secured its market leadership in several markets at the same time. The new Mercedes-Benz compacts and SUVs posted significant new growth and the launches of the new E-Class models and the CLA were very successful. 62

63 Global launches of new vehicles Compact cars New A-class New CLA-class New GLA-class Sedans New E-class New E-class New S-class coupe and cabriolet New C-class Vans New Citan Sprinter Classic Russia New Generation Sprinter New mid-size van 63

64 Retail Sales Development in April in China April 2013 April 2012 Change in % YTD 2013 YTD 2012 Change in % Mercedes-Benz ,1 % ,4 % of which: A-/B-Class ,1 % ,5 % C-/CLK-/SLK-Class ,9 % ,3 % E-Class/CLS-Class ,7 % ,1 % S-/CL/SL-Class/ SLR/Maybach ,8 % ,3 % ML-/R-/GLK-/GL-/G-Class ,3 % ,7 % smart ,7 % ,5 % Mercedes-Benz Cars ,6 % ,4 % 64

65 Rampup of new Products through successive Regional Rollout at the example of selected models in China Compact cars New A-class Sedans New E-class New S-class New E-class coupe and cabriolet 65

66 Future Sales Structure in China - Imports and Domestic Wholesale 66

67 Accelerating Expansion of Dealer Outlets in China Dealerships 350 > ~ ~ Around 20 additional dealers per year

68 Mercedes-Benz Cars: Fit for Leadership Flight path towards benefits Key levers Additional top-line effects Cost reduction We aim to achieve a significant portion of cost reduction by the end of bn Material costs/net-zero approach Further reduction of hours per vehicle Optimization of funding requirements Reduction of fixed costs Increase of efficiency in use of funds Higher flexibility of MBC business model 12/ / /

69 Fit for Leadership Comprises measures to accelerate growth and to improve efficiency. Key elements are based on the MB 2020 strategy Short term cost improvements: 2bn EUR cost improvement until end of The cost reductions will be achieved through enforcement and acceleration of already established and new measures. Around 30% effective in % are coming from material-cost improvements, 20% lower production costs and further 40% of fix cost reductions (incl. R&D and SG&A). Key Initiatives Net Zero Approach Modular strategy HPV improvement from 40 to 30 hours per vehicle by Medium term structural measures: Improvement of MBC business system e.g. structures in development, production, sales and marketing are under scrutiny. China Business Model. 69

70 Agenda 1 Mercedes Benz Passenger Cars Rollout of new Products MBC Business in China Fit For Leadership 2 Daimler Trucks Renewal of the Product Portfolio Daimler Trucks #1 70

71 Global launches of new vehicles Trucks New Antos New Cascadia New Arocs New Atego New Unimog New Generation Evolution Fuso Super Great Buses New Citaro Euro VI Travego Euro VI New Comfort- Class 500 New Setra TopClass

72 Strong product pipeline with new global platforms safeguards DT s competitiveness Trucks Europe / Latin Am. Actros (HD) Atego (MD) Cascadia New Actros Atego Facelift (BRA) Antos Arocs New Atego (EU) New Cascadia Evolution Trucks NAFTA Coronado Trucks Asia M2 SuperGreat Canter Auman Hybrid MB Engine SuperGreat Facelift RIC Kamaz LDT/HDT Ligh and Medium Duty Trucks MB Engine Heavy Duty Trucks Components HDEP MDEG Euro VI Euro VI 72

73 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 73

74 Scale benefits of common modules just starting 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

75 Daimler Trucks #1 Flight path towards benefits Key levers We aim to achieve a significant portion of cost reduction by the end of 2013 Top-line 1.6bn 30% Cost reduction 70% Sales and aftersales push Module strategy to realize global scale Future Asia Business Model Strong efficiency push in all Operating Units: Fixed costs Material costs Production costs Warranty and quality costs 12/ / /

76 Daimler Trucks: DT#1 DT#1 comprises of excellence programs in the operating units and cross business initiatives to support the average margin target of 8%. DT#1 targets sustainable improvements of 1.6bn by the end of Around 30% effective in /3 by increased revenues and 2/3 efficiency improvements 50% from lower material costs 20% efficiencies in the operations 30% of fix cost reductions (incl. SG&A and Fundings) Key Initiatives: Modular strategy e.g. for the complete drivetrain e.g engines, transmission and axles. Especially in Brasil and in Germany the focus is also on the reduction of fix cost levels and as one step we have recently decided to reduce our headcount in non-production areas by about 800 employees in each of the two countries. 76

77 Contents Actuals Q Daimler Group Divisions Outlook 2013 Additional Information to the First Quarter Appendix 77

78 Appendix EBIT Mercedes-Benz Cars - in millions of euros %* 1,230 Foreign exchange rates Regional and model mix Enhancement of product attractiveness Higher expenses, among others for new technologies, new products and additional capacity 3.3%* 460 EBIT Q EBIT Q * Return on sales 78

79 Appendix EBIT Daimler Trucks - in millions of euros %* 376 Increased sales in Brazil Market-related sales decrease in NAFTA, Europe and Asia Expenses related to the expansion of business in India and China Production adjustments especially in NAFTA and Europe Higher warranty costs 1.7%* 116 EBIT Q EBIT Q * Return on sales 79

80 Appendix EBIT Mercedes-Benz Vans - in millions of euros %* 167 Product mix and regional sales structure Preparation for new products including launch costs for Sprinter Classic in Russia 4.1%* 81 EBIT Q EBIT Q * Return on sales 80

81 Appendix EBIT Daimler Buses - in millions of euros %* Increase in unit sales especially in Latin America Foreign exchange rates Efficiency enhancements Lower costs for business repositioning in Europe %* EBIT Q EBIT Q * Return on sales 81

82 Appendix EBIT Daimler Financial Services - in millions of euros Higher contract volume Higher cost of risk Lower interest margins 314 EBIT Q EBIT Q

83 Appendix Group EBIT in Q in millions of euros - 2, Cars -297 Trucks -19 Vans -52 Buses +30 Cars +55 Trucks +19 Vans +2 Buses +15 Cars -528 Trucks -248 Vans -36 Buses -4 thereof: Discounting of provisions +123 Cars +72 Trucks thereof: Workforce adjustments Daimler Trucks -13 Business repositioning Daimler Buses Actual Q Volume/ Structure/ Net pricing Foreign exchange rates Other cost changes Financial Services Other Actual Q

84 Appendix Special items affecting EBIT - in millions of euros - 1 st quarter Daimler Trucks Workforce adjustments* -13 Daimler Buses Business repositioning** * Daimler Trucks expects special items from workforce adjustments of up to 250 million. ** Daimler Buses expects special items from the business repositioning of up to 30 million in

85 Appendix EBIT from ongoing business - 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 * Return on sales; Daimler Group excluding Daimler Financial Services 85

86 Capital expenditure / Research and development Appendix - in billions of euros - 86

87 Appendix Higher level of order intake in most regions - in thousands of units Rest of world Asia Latin America* NAFTA 15 Q Q Western Europe * Due to the business model, incoming orders in Brazil correspond with unit sales. 87

88 Higher unit sales due to increase outside Western Europe - Unit sales in thousands - Appendix Vario Sprinter Q Q Vito Viano Citan 88

89 Increase in unit sales especially due to higher demand in Brazil - Unit sales in thousands - Appendix Rest of world Latin America (excl. Brazil) Brazil NAFTA region Europe Q Q

90 Appendix Increase in contract volume driven by growth in the Americas regions - in billions of euros Africa & Asia/Pacific Americas Europe (excl. Germany) Germany 12/31/2012 3/31/

91 Appendix Net credit losses* 0,89% 0,83% 0,69% 0,68% 0,61% 0,50% 0,36% 0,51% 0,43% 0,30% 0.30%** YTD * as a percentage of portfolio, subject to credit risk ** annualized rate 91

92 Appendix Effects of the application of the revised accounting standard IAS 19 Total equity (in billions of euros) Pensions Obligations for part-time early retirement Mainly deferred taxes -6.2 Net profit (in millions of euros) EBIT Interest result Taxes /2012 reported Adjustments 12/2012 adjusted Q IAS 19 old Adjustments Q reported Direct effect of actuarial gains and losses on equity Pro-rata addition to part-time early retirement provision EBIT: Effects of part-time early retirement provision Interest result: No amortization of actuarial gains and losses Net interest approach: expected rate of return of plan assets equals discount rate of defined benefit obligation 92

93 Effects of the application of IAS 19 on the major positions of the consolidated financial statements - in millions of euros - Appendix Effects on the consolidated statement of financial position Dec. 31, 2011 Dec. 31, 2012 Investments accounted for using the equity method Other assets Total equity -4,045-6,139 Provisions for pensions and similar obligations 4,682 8,264 Provisions for other risks Balance of deferred tax assets and deferred tax liabilities ,153 Effects on the consolidated statement of income Q FY 2012 EBIT Interest result Income taxes Net profit

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