Daimler Financial Service at a Glance. Fiscal Year 2011.Document Transcript
Daimler Financial Services at a Glance.Fiscal Year 2011.
Fiscal Year 2011 | 3Contents Foreword3 Foreword4 Daimler at a glance6 Daimler Financial Services leadership team Dear readers,8 Key figures As far as Daimler Financial Services was concerned, 2011 was a very successful10 Global presence year. In particular, we achieved three new records. Not only did new business, contract volume, and EBIT reach all-time highs; we also put around 40 percent12 Products of all the vehicles produced by Daimler on the road worldwide. Around the globe, we concluded a financing or leasing contract for a car, van, bus, or truck from14 Guiding principles Daimler every 30 seconds on average. We have also achieved a new all-time high for the number of motor insurance policies we broker.15 Strategy From a regional viewpoint, our business continued to develop very dynamically,16 Social responsibility especially in Asia. Our financial service operations immediately got off to a resounding start in India, which will be an important automotive market in the18 Milestones future. In addition, we also achieved record contract volumes in Europe and the Americas. And all of this business was highly profitable. Our return on equity20 Contacts reached 25.5 percent, which is well above the average figure we are aiming for.22 Daimler brand portfolio One of the key reasons for all these successes was the further improvement in customer and dealer satisfaction — a feat we accomplished on a broad scale. We received many awards for the quality of our service all over the world. And this has given us an extra incentive to remain a reliable partner for Daimler’s cus- tomers and dealers. Our long-term goal is clear: We aim to become the world’s best captive financial services provider. And we want to — and will — come closer to achieving this goal in 2012. I hope this publication will provide you with some interesting insights into our business operations. Sincerely, Klaus Entenmann Chairman of the Board of Management of Daimler Financial Services AG
4 | Daimler Financial Services at a Glance Fiscal Year 2011 | 5Daimler at a glanceA global enterpriseDaimler AG is one of the world’s most successful automakers. With its Daimler Groupdivisions Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, DaimlerBuses, and Daimler Financial Services, the company is one of the world’s (in millions of euros) 2011 2010 11/10largest suppliers of premium vehicles and the largest globally operating % changecommercial vehicle manufacturer. Daimler Financial Services offers financing,leasing, fleet management, insurance, and innovative mobility services. Revenue 106,540 97,761 +91 Western Europe 39,387 38,478 +2The company’s founders, Gottlieb Daimler and Carl Benz, made history thereof Germany 19,753 19,281 +2with their invention of the automobile in 1886. As a pioneer in automotive NAFTA 26,026 23,582 +10engineering, Daimler continues to shape the future of mobility. For example, thereof United States 22,222 20,216 +10the company is focusing on innovative and green technologies as well as on Asia 22,643 19,659 +15safe, high-quality vehicles that fascinate and thrill customers. For many years thereof China 11,093 9,094 +22now, Daimler has been consistently investing in the development of alternative Other markets 18,484 16,042 +15drive systems in order to make emission-free driving possible over the long Employees (December 31) 271,370 260,100 +4term. In this context, Daimler offers not only hybrid vehicles but also the Investment in property, plant and equipment 4,158 3,653 +14widest range of locally emission-free battery and fuel cell electric vehicles. Research and development expenditure 5,634 4,849 +16After all, Daimler regards acting responsibly toward society and the environment thereof capitalized 1,460 1,373 +6as both a duty and a challenge. Cash provided by (used for) operating activities -696 8,544 · (including discontinued operations) Daimler sells vehicles and services in almost every country and has production EBIT 8,755 7,274 +20facilities on five continents. Alongside Mercedes-Benz, the world’s most Value added 3,726 2,773 +34valuable automobile brand, the current portfolio includes smart, Maybach, (including discontinued operations) Freightliner, Western Star, BharatBenz, Fuso, Setra, Orion, and Thomas Net profit (loss) 6,029 4,674 +29Built Buses. The company is listed on the stock exchanges in Frankfurt and Earnings (loss) per share (in €) 5.32 4.28 +24Stuttgart. In 2011 the Group sold 2.1 million vehicles and employed more 1 Adjusted for the effects of currency translation and changes in the consolidated Group,than 271,000 people. Its revenues totaled €106.5 billion and its EBIT was increase in revenue of 10%.€8.8 billion. EBIT by division (in millions of euros) 2011 2010 11/10 % change Mercedes-Benz Cars 5,192 4,656 +12 Daimler Trucks 1,876 1,332 +41 Mercedes-Benz Vans 835 451 +85 Daimler Buses 162 215 -25 Daimler Financial Services 1,312 831 +58
6 | Daimler Financial Services at a Glance Fiscal Year 2011 | 7Daimler Financial ServicesOur leadership team Bodo Uebber Chairman of the Supervisory Board of Daimler Financial Services AG, Member of the Board of Management of Daimler AG, with responsibility for Finance and Controlling/Financial Services Klaus Entenmann David Olsen Chairman of the Board of Management of Member of the Board of Management and Daimler Financial Services AG Chief Financial Officer, responsible for Finance, Controlling, Risk Management and Global Services Dr. Dieter Buhl Franz Reiner Member of the Board of Management, Member of the Board of Management, responsible for Human Resources, responsible for the region Europe, Sales & Financial Services Chairman of Mercedes-Benz Bank AG Richard Howard Peter Zieringer Member of the Board of Management, Member of the Board of Management, responsible for the region Africa & Asia-Pacific responsible for the region Americas, President and CEO of Mercedes-Benz Financial Services USA LLC
8 | Daimler Financial Services at a Glance Fiscal Year 2011 | 9Daimler Financial ServicesKey figuresDaimler Financial Services Contract volume in 2011 by vehicle segment (in units)(in millions of euros) 2011 2010 11/10 % change All segments 2,612,000 EBIT 1,312 831 +58Revenues 12,080 12,788 -6 Mercedes-Benz Cars Other brands 226,000New business 33,521 29,267 +15 1,740,000Total portfolio 71,730 63,725 +13 Daimler Trucks 311,000 Europe 31,173 29,159 +7 Americas 30,605 25,910 +18 Africa & Asia/Pacific 9,936 8,656 +15 Mercedes-Benz VansPortfolio (in units) 2,612,000 2,488,000 +5 291,000Employees (Dec. 31) 7,065 6,742 +5 Daimler Buses 44,000Daimler Financial Services contract volume (in millions of euros) Contract volume in 2011 by market (in millions of euros) 71,730 63,353 63,725 59,143* 58,350 56,408 54,414 United States 21,601 Brazil 3,990 UK 3,919 Canada 3,014 Germany 17,000 Japan 2,736 Australia 2,116 France 1,966 Italy 1,648 South Africa 1,618 2005 2006 2007 2008 2009 2010 2011 Other markets 12,122 US-GAAP IFRS * Portfolio on balance (otherwise portfolio serviced)
10 | Daimler Financial Services at a Glance Fiscal Year 2011 | 11Approximately 7,000 employeesGlobal presence in nearly 40 countries Germany Denmark Russia Canada UK Sweden France Hungary Italy Poland Netherlands Czech Republic United States Belgium Slovakia South Korea Luxembourg Slovenia Japan Switzerland Croatia China Austria Greece Taiwan Mexico Spain Turkey India Hong Kong Portugal Romania Thailand Singapore Brazil Australia Argentina South Africa New Zealand Employees (as of Dec. 31, 2011) Europe 4,325 Americas 1,588 Africa & Asia-Pacific 1,152
12 | Daimler Financial Services at a Glance Fiscal Year 2011 | 13Outstanding financial servicesOur productsDaimler Financial Services offers a comprehensive range of automobile-related financial services. The products extend from leasing, retail financing,and dealer financing to commercial fleet management, insurance solutions,banking services, and innovative mobility services. All of these offers helpcustomers make their automotive dreams come true, support the DaimlerGroup’s vehicle sales, and promote customer and dealer loyalty. Studies showthat customers who lease or finance their vehicles remain loyal to their brandsmuch longer than those who purchase their cars outright. They also morefrequently invest in new vehicles and high-end equipment packages. Fleet management In many countries, Daimler Financial Services is one of the leading providers of fleet management services for cars and commercial vehicles. Its Daimler FleetFinancing Management and Mercedes-Benz CharterWay subsidiaries in Europe offerIn many countries, Daimler Financial Services has received banking licenses comprehensive fleet management packages for cars and commercial vehicles,that allow the company to issue loans. Customers who opt for this form of respectively. If the customer desires, such services can be expanded to includefinancing usually plan to obtain ownership of the vehicle by paying fixed the complete management of entire fleets.monthly installments over the term of the financing contract. Afterward thecar belongs to them. Customers not only select the contract’s duration and the Deposits and credit cardsamount of the down payment; they can also make balloon payments in many In selected markets and in close cooperation with the Group’s automotivemarkets. As in a leasing contract, they can thus take advantage of low monthly brands, Daimler Financial Services provides credit cards. In addition,rates. In the case of three-way financing contracts, customers decide at the Mercedes-Benz Bank offers call money accounts, savings plans, and fixed-end of the financing period whether they want to return the vehicle, refinance interest term deposits.the remainder of the loan, or pay it off all at once. Innovative mobility servicesLeasing Customers’ mobility demands are changing — and so are we. The best exampleDaimler Financial Services remains the owner of the vehicle in all leasing of this is car2go — an urban mobility concept provided by Daimler Financialcontracts. Customers merely pay to use the vehicle and return it after the Services in which smart brand vehicles can be rented at favorable rates bycontract expires. Service-leasing packages combine the leasing contract with the minute anywhere and at any time. In short, customers are not dependentvarious service components such as maintenance, repairs, and tire services. on fixed rental stations and can rent vehicles on the spur of the moment. The vehicles can be located and booked via cell phone or the Internet. The feeInsurance is processed by a telematics unit.Our range of insurance services includes motor insurance, GAP insurance,and payment protection insurance. In addition to insuring Daimler productionlocations and transport and product liability risks worldwide, the company’sInsurance Services unit manages the company and private pension plans ofthe Group’s employees in Germany.
14 | Daimler Financial Services at a Glance Fiscal Year 2011 | 15Vision, Mission, Values Keeping our eyes on the goalOur guiding principles Our strategyOur vision is simple but at the same time ambitious: Working closely with our We have a clear strategic objective: to become the world’s leading providerautomotive colleagues, we want to be the first-choice provider of financial and of automobile-related financial services. We will therefore continue to pursue amobility services for our customers and dealers. profitable growth strategy in the years ahead. The global demand for automobiles will continue to rise in both the medium and the long terms. ForecastersWe want to achieve this goal by pursuing our mission — in other words, by predict that annual sales of cars and commercial vehicles will be much higher· supporting Daimler sales and contributing to the Group’s financial at the end of the decade than they are now. To exploit this trend, Daimler success, Financial Services’ has developed a growth strategy that is based on several· creating added value for our customers, dealers, and vehicle brands, key developments. First, we will support Daimler’s current product campaigns· offering our employees attractive possibilities for professional with customized financing and leasing offers that will enable us to reach new, development and fulfilling our overall social responsibility. younger groups of customers, particularly in the car segment. Second, we see considerable growth potential for the financial services business in the BRICAt the same time, we are committed — without any ifs or buts — to the values countries. In fact, these countries’ share of our new business is expected toof Passion, Respect, Integrity, and Discipline. These values are shared by increase from ten percent today to 25 percent by mid-decade. In India, forDaimler employees all over the world — no matter whether they work in the example, we will be launching our financial services business for the new truckcar, commercial vehicle, or financial services business. Integrity-related issues brand BharatBenz this year, and we will also expand our leasing business inreceive special attention at our company. For us, “doing decent business” and China. The third step involves enhancing our business system through innovative“doing business decently” are two sides of the same coin. What’s more, our mobility services such as car2go. Key success factors in this regard includeunderstanding of integrity is expressly not limited to merely adhering to formal the use of cutting-edge information technology and the ability to network carslaws and regulations. The focus is instead on maintaining an ethical attitude, with their surroundings.or “moral compass,” which guides us — even in complex business situations.
16 | Daimler Financial Services at a Glance Fiscal Year 2011 | 17Corporate social responsibilityA good corporate citizenDaimler Financial Services is involved in humanitarian, social, and culturalprojects all over the world. This commitment to social concerns is part of ourcorporate culture. It is not only embedded in individual units and departmentsbut is also reflected in the dedication of all of our employees.Day of CaringDuring a Day of Caring, our employees get a day off work in order to supportselected charitable organizations and projects in their communities. Examplesinclude renovating a youth center in Germany, planting rice fields in Thailand,and cleaning beaches in New Zealand.Moved by IdeasMany of our employees volunteer to work in neighborhood projects during their Menschen für Menschenleisure time. Our Moved by Ideas initiative supports these efforts. Whenever Since 2003, Mercedes-Benz Bank Deutschland has been assisting Karlheinzthree or more employees work in clubs, charitable organizations or other non- Böhm’s Menschen für Menschen (People for People) aid program for Ethiopia.profit institutions, Daimler Financial Services pays for the project’s materials. In 200, the bank financed the construction of the Degem Higher Secondary School, the only secondary school in a region with more than 100,000 inhabitants.Plus/Minus The latest project helps women in the Midda region by providing themOur Plus/Minus seminars aim to increase young people’s financial literacy. with microloans to set up their own businesses and teaching them basicWe are ideally equipped to provide know-how in this area. After all, successful entrepreneurial skills.money management is one of our core areas of expertise. The seminars helpyoung people reconcile their (consumer) wishes and lifestyles with the financial SEEDresources they have available so that they do not fall deeply into debt. In India, we not only set up a new national subsidiary in 2011 but also launched a long-term empowerment initiative known as “SEED.” As part of this initiative,Youth Entrepreneurship Program we are cooperating with Habitat for Humanity Deutschland, one of our partners,In South Africa, we have supported more than 1,000 up-and-coming business- to improve the prospects of disadvantaged families in all walks of life. Thepeople through our Youth Entrepreneurship Program. In this initiative, young assistance we offer ranges from constructing shelters and providing educationmen and women who have good business ideas are given basic training in to giving advice on healthcare. The DFS company in India also organized itscompany management. The participants with the best business ideas are first Day of Caring within the framework of the SEED project.provided with start-up capital and further advice.TeensThe Teens project of the C/O Berlin photography forum teaches young peopleabout various types of visual media, ranging from photography to film. Theparticipants, who are between 14 and 17 years old, work in teams, where theydiscover their creative potential and jointly develop ideas. The team membersthen implement these ideas themselves under the supervision of experiencededucators and renowned experts.
18 | Daimler Financial Services at a Glance Fiscal Year 2011 | 19A review of 2011MilestonesJanuary Daimler Financial Services begins the year in a strong position. Thecompany finances or leases almost 2.5 million vehicles worldwide. At thebeginning of the year its contract volume is about €64 billion.February To commemorate the 125th anniversary of the invention of the auto- August Coinciding with the launch of the new Actros, Mercedes-Benz Bankmobile, Mercedes-Benz Bank introduces a special offer that enables buyers to presents its first use-dependent insurance for trucks. The insurance’s premiumfinance a new A-, B-, C-, or E-Class vehicle or a Viano van at just 1.25 percent is based on the challenges the truck will face and the driver’s driving style. Ininterest. the U.S., Mercedes-Benz Financial Services teams up with Mercedes-Benz USA and American Express to launch a co-branded credit card program.March Mercedes-Benz Financial Services USA announces it has achieved anew mobile payment milestone: Customers have used smartphones to make September For the third time in a row, Mercedes-Benz Financial Servicesaround $20 million in loan and leasing payments since an app was introduced Australia achieves the highest dealer satisfaction ratings in an AC Nielsenfor this purpose. study. At no other company do dealers “down under” feel themselves in such good hands.April Daimler Financial Services holds its second Day of Caring in Croatia.With the help of their families, employees from the Croatian national subsidiary October The new Mercedes-Benz Bank service center commences operationsprovide assistance to an SOS Children’s Village in Lekenik. in Berlin. From its offices in downtown Berlin, the center processes and man- ages the leasing, financing, and insurance business of commercial customers.May Mercedes-Benz Bank expands its range of insurance products by offering Up to 700 jobs are to be created at the new service center.traffic-related legal expenses insurance for the first time. The insurance coversup to €1.5 million of the legal costs per traffic-related damage claim. November Daimler Fleet Management offers a new environmental reporting service. The service enables fleet customers to determine changes in individualJune The Daimler Financial Services Board of Management is restructured. vehicles’ fuel consumption so that they can identify areas with potential forFranz Reiner takes on responsibility for the Europe region and also becomes major savings. Mercedes-Benz Auto Finance Company China is named China’sChairman of Mercedes-Benz Bank. Peter Zieringer is appointed to the Board of best automobile finance company at the China Auto Golden Engine AwardsManagement, where he is responsible for the Americas region. ceremony. In Germany, Mercedes-Benz Bank once again takes first place in the Autohaus trade magazine’s insurance study.July The new national subsidiary Daimler Financial Services India PrivateLimited begins operations at its headquarters in Chennai. In Germany, Autohaus December In the U.S., Mercedes-Benz Financial Services achieves anBankenmonitor names Mercedes-Benz Bank the best financial services unprecedented result: For the first time in an individual month, businessprovider in the German automotive trade for the third time in a row. In the U.S., surpasses the $1.1 billion mark. This result represents an increase ofMercedes-Benz Financial finishes first in all of the categories of the J.D. Power over 30 percent compared with the previous year.dealer satisfaction study. Daimler Truck Financial begins offering retail anddealer credit for the Fuso brand in the U.S.
20 | Daimler Financial Services at a Glance Fiscal Year 2011 | 21Feel free to contact usYour media contacts Martin Geers Director Corporate & Marketing Communications Financial Services Phone +49 30 25 54-11 00 Fax +49 30 25 54-11 03 email@example.com Harald Bertsch James Ryan Head of Media Relations Financial Services and Head of Communications and Communications Mercedes-Benz Bank Corporate Marketing Americas Phone +49 711 25 74-40 10 Phone +1 248 991-6600 Fax +49 711 25 74-9 40 10 Fax +1 248 991-6609 firstname.lastname@example.org email@example.com Oliver Wihofszki Jack Ferry Media Relations Mercedes-Benz Bank and Europe Media Relations, Mercedes-Benz Financial Services and Phone +49 711 25 74-40 39 Daimler Truck Financial Americas Fax +49 711 25 74-9 40 39 Phone +1 248 991-6610 firstname.lastname@example.org Fax +1 248 991-6609 email@example.com Andreas Spannbauer Michael Braun Media Relations Daimler Financial Services Media Relations Daimler Financial Services Phone +49 711 25 74 40 78 Africa and Asia-Pacific Fax +49 711 17 79 01 94 77 Phone +65 6849 5632 firstname.lastname@example.org Fax +65 6849 8485 E-Mail: email@example.com