Transcript of "Daimler Financial Service at a Glance. Company Overview 2013."
Daimler Financial Services at a Glance.Company Overview 2013.
Foreword Customers all over the world rely on products from Daimler Financial Services — and with good reason, our financing offers make people’s dreams of owning a Mercedes come true. Thanks to our leasing packages, customers always look forward to checking out the latest model. Moreover, our insurance solutions guarantee that our customers receive especially favorable insurance premiums if they drive safe cars such as those from Mercedes-Benz. As different as our products may be, they clearly have one thing in common: outstanding service quality. For this reason, we had more leasing and financing contracts last year than ever before. In fact, more than 2.8 million cars and trucks were on the road thanks to our financial services. On average, we finance or lease four out of ten Daimler vehicles worldwide. All of this exemplifies the growing demand for leasing and financing solutions. At the same time, the rapid spread of smartphones is creating totally new channels to organize personal mobility, especially in large cities. We also want to play a major role in shaping this trend. Our car2go mobility concept makes us the global market leader for flexible carsharing services. However, our plans go much further than that. Our moovel smartphone app enables customers to compare various transportation systems with just a tap on the screen in order to find a personalized route that takes them from point A to point B. We help people to get ahead, no matter whether you want us to finance your dream car or truck fleet, provide you with an all-inclusive care-free leasing“We aim to become the leading package that includes insurance and maintenance, manage your commercial fleet, enable you to re-equip your dealership, or simply drive a car2go vehicleprovider for financial and mobility to your next appointment. And, we have lots more planned for the future.services.” Pleasant reading! We invite you to learn more about us and our plans.Klaus Entenmann,Chairman of the Board of Management of Daimler Financial Services AG Company Overview 2013 | 3
Outstanding financial servicesDaimler Financial Services offers a comprehensive range of automotive financialservices. The products range from leasing and financing offers to financialservices for dealerships, commercial fleet management, insurance solutionsand banking services. All of these offers help customers make their automotivedreams come true, support the Daimler Group’s vehicle sales and promotecustomer and dealer loyalty. Studies show that customers who lease or financetheir vehicles remain loyal to their brands much longer than those whopurchase their cars outright. They also more frequently invest in new vehiclesand high-end equipment packages.FinancingWe are helping people fulfill their dreams of owning a car – by offeringthem competitive loans and the possibility of influencing their monthlypayments by selecting the size of the down payment and the duration of thecontract. This allows them to remain financially flexible and still own aMercedes in the end. Option financing provides customers with even moreleeway, as they can decide whether to keep their vehicles by paying theresidual value or concluding a follow-on financing agreement until thecontract expires. Alternatively, customers can return the vehicle and switchto the latest model. Moreover, Daimler Financial Services offers balloon-payment financing in many countries so that customers can enjoy especiallyfavorable monthly installments.LeasingWe provide customers with maximum flexibility. Thanks to our attractiveleasing offers, customers benefit from low monthly payments. The paymentis determined individually for each customer, depending on the duration ofthe contract and the total distance traveled. At the expiration of the contract,customers can decide whether they want to switch to a new vehicle. Thisensures that customers can regularly look forward to driving the latest modeland it also allows them to obtain tax breaks in many countries. Anotherattractive product is service leasing, in which the monthly payment alsocovers the cost of a comprehensive range of individually selectable servicessuch as maintenance, insurance products and the repair of damage causedby wear and tear.4 | Daimler Financial Services at a Glance Company Overview 2013 | 5
InsuranceWe offer reliable protection – not only through our safe vehicles, but alsoby means of attractive insurance products. Our motor insurance providescomprehensive coverage and guarantees that damaged vehicles are alwaysrepaired by specialists who use genuine spare parts in accordance with themanufacturer’s instructions. Customers can drive with even more peaceof mind with our warranty insurance, legal expenses insurance, paymentprotection insurance and purchase price protection. If an automobile istotaled, the last of these products covers the gap between the price of a newvehicle and the resale value paid by a full automotive coverage policy. Andbecause we are convinced of the high quality of our work, we also provideour own insurance coverage. Among other things, our Corporate Insuranceunit insures all of Daimler’s production facilities, as well as its shipments andproduct liability risks.Fleet managementWe ensure smooth and efficient fleet operations, thanks to fleet managementconcepts that provide commercial customers with tailored packages for theprocurement, use and maintenance of vehicles. Our specialists not only createappropriate financing and leasing solutions, but also take care of all fleet-related services such as repairs, tire replacement and fuel card management.We take a holistic approach to mobility in order to provide our customers witheconomical, state-of-the-art fleet solutions. We can also incorporate electricvehicles into customers’ fleets if they desire or enable employees to share carswithin companies. A central contact person who knows the customer’s precisegoals and requirements provides top-quality personal advice. Offering efficientmobility solutions to our customers is our approach to cutting fleet costs andimproving employee motivation.Banking ServicesWe open up new opportunities with credit cards that provide our customerswith financial leeway and all-round protection all over the world and with flexibleinvestments in which they benefit from favorable terms. In Germany, for example,the Mercedes Card provides customers with accident and breakdown coverage, Our vision is simple but ambitious: Working closely with our automotiveforeign travel health insurance, travel cancellation insurance, rental car liability colleagues, we want to be the first-choice provider of financial and mobilityinsurance and a range of interesting rewards programs. In Germany, Mercedes- services for our customers and dealers. We want to attain this goal byBenz Bank offers customers attractive investment opportunities. Our call money contributing to Daimler’s sales and financial success; creating added valueaccounts, fixed-interest rate accounts and savings plans are just as reliable as for our customers, dealers and vehicle brands; offering our employeesthe vehicles from Daimler. attractive possibilities for professional development; and fulfilling our social responsibilities.6 | Daimler Financial Services at a Glance Company Overview 2013 | 7
Innovative mobility servicesBesides offering financial services, Daimler Financial Services is a pioneer Strong partnershipsin the development of innovative mobility services. With our state-of-the-art We are shaping the future of mobility through strategic partnerships thatsmartphone-based services, we open up a new dimension of mobility for increase flexibility and the range of options for our customers. For example,our customers and raise flexibility to a new level. Through its car2go brand, the Group has a financial interest in the company that provides the myTaxiDaimler Financial Services is already one of the world’s leading providers of smartphone app, as well as in carpooling.com, whose mitfahrgelegenheit.decarsharing services. The mobility platform moovel enables customers to find portal is the market leader in Germany’s carpooling segment. Daimler also hasthe best way to get from point A to point B even if they aren’t traveling by car. an interest in the tiramizoo platform for arranging inner-city courier services.Besides offering these services, we are working on additional intelligent Within the framework of car2go, the Group also cooperates with the Europcarmobility solutions for the future. We have consolidated all of these services rental company, local governments and numerous public transport companies.at the Daimler Financial Services subsidiary Daimler Mobility Services GmbH.car2goWe are enabling our customers to get ahead with our flexible mobilityservice car2go. Customers can rent smart brand vehicles at any time and onthe spur of the moment and leave the car anywhere within the area coveredby the service when the trip is over. Customers can find the vehicles on theirsmartphones or computers and only have to pay for the actual rental period,which is charged by the minute. The rental fee also covers the cost of parking,fuel, taxes and insurance. Besides allowing customers to save money, theservice helps to protect the environment, since the smart is an extremelyenvironmentally friendly automobile — and car2go even utilizes electric vehiclesin selected cities. In this way, the pioneer for flexible mobility concepts givespeople the opportunity to experience electric mobility at first hand.moovelFinding the best way to get from point A to point B is easy with thesmartphone app moovel. The system allows customers to compare the costsand travel times of various mobility options such as car2go, taxis, ridesharingservices and local public transportation. At the beginning of 2013, the appwas already available for Stuttgart and Berlin.Intelligent parking solutionsWe’re making it easier for drivers to find a parking space, thanks to new Flexibly mobile with car2go: The market leader for flexible carsharing istechnologies that simplify the process of finding, booking and paying for parking already represented in the following cities: Ulm, Austin, Hamburg, Vancouver,spaces. Customers can already book and pay for parking spaces online in the Amsterdam, San Diego, Vienna, Düsseldorf, Washington D.C., Portland, Berlin,U.S. and Canada through our strategic partner GottaPark and plans are being Toronto, Calgary, Miami, Cologne, Stuttgart, London and Seattle.made for additional cooperation projects for intelligent parking in urban areas. State 20128 | Daimler Financial Services at a Glance Company Overview 2013 | 9
Key figuresDaimler Financial Services Contract volume in 2012 by vehicle segment (in units) (in millions of euros) 2012 2011 12/11 % change All segments 2,837,267 EBIT 1,292 1,312 -2 Revenues 13,550 12,080 +12 Mercedes-Benz Cars Daimler Trucks 337,196 New business 38,076 33,521 +14 1,924,246 Total portfolio 79,986 71,730 +12 Mercedes-Benz Vans Europe 34,536 31,173 +11 321,223 Americas 34,060 30,605 +11 Daimler Buses 46,271 Africa & Asia Pacific 11,337 9,936 +14 Portfolio (in units) 2,837,267 2,612,000 +9 Other Brands 208,331 Employees (Dec. 31) 7,779 7,065 +10Daimler Financial Services contract volume (in millions of euros) Contract volume in 2012 by market (in millions of euros) 79,986 71,730 63,353 63,725 59,143 58,350 United States 25,661 UK 5,205 Canada 3,792 Brazil 3,394 Germany 17,761 Japan 2,825 Australia 2,347 France 2,237 China 2,187 Italy 1,772 2007 2008 2009 2010 2011 2012 Other 12,80510 | Daimler Financial Services at a Glance Company Overview 2013 | 11
Close to customers in 40 countries · Germany · Denmark · Russia · UK · Sweden · France · Hungary · Canada · Italy · Poland · Netherlands · Czech Republic · Belgium · Slovakia · United States · Luxembourg · Slovenia · South Korea · Switzerland · Croatia · China · Japan · Austria · Greece · Spain · Turkey · Taiwan · Mexico · India · Portugal · Romania · Hongkong · Thailand · Malaysia · Singapore · Brazil · Australia · South Africa · Argentinia New Zealand · 7,779 7,065 1,794 Americas 1,588 Africa & Asia Pacific 1,152 1,471 Europe 4,325 4,514 Employees (Dec. 31, 2012) 2011 201212 | Daimler Financial Services at a Glance Company Overview 2013 | 13
The world behind the numbersFor Daimler Financial Services, social responsibility and high employer appealare two sides of the same coin. That’s because we want to fulfill our corporatesocial responsibilities as well as being the employer of choice for employeesand job applicants. We strive to achieve both of these goals every day, and wedo so with commitment and enthusiasm.Corporate social responsibilityDaimler Financial Services is involved in social and cultural projects all overthe world. This involvement is an integral element of our corporate culture.In the last year alone, individual employees and even entire departments andunits implemented over 250 projects. In this way, we are giving somethingback to society and ensuring that working at Daimler Financial Services willremain a special experience.Corporate volunteering. Daimler Financial Services offers its employees abroad range of corporate volunteering opportunities. On the Day of Caring,for example, Daimler Financial Services gives its employees one day off fromwork so that they can jointly assist social institutions or get involved incommunity projects. In 2012, for instance, employees renovated an inner-cityplayground and park in Germany, cleared a nature preserve in New Zealandof an imported noxious weed and built houses for needy families in Nepal.Our strategic partners for these and many other projects include SOSChildren’s Villages and Habitat for Humanity. In addition, our “Moved byIdeas” program supports the private volunteering activities of our colleagues.Whenever three or more employees are involved in the same nonprofitactivity, Daimler Financial Services pays for the project’s materials up to acertain limit.Education. Our partnership with the Beyond Basics program is helping publicschool children in the Detroit metropolitan area to discover their strengths andtalents. Through special courses that promote academic excellence and expandthe participants’ horizons, the program provides at-risk children and teenagerswith assistance and additional educational opportunities. Through their workin various volunteer programs, hundreds of colleagues have contributed toBeyond Basics since the partnership was formed. Another education programthat opens up new opportunities for needy children is Rally to Read, in whichemployees from Mercedes-Benz Financial Services have been involved for14 | Daimler Financial Services at a Glance Company Overview 2013 | 15
the past 12 years. For this South African project, colleagues visit remoteand needy rural schools, where they distribute books and other instructionalmaterials.Sponsorship of art and culture. Because cultural activities encourageinnovative thinking and promote social and economic progress, DaimlerFinancial Services sponsors art and culture projects and institutionsworldwide. These partnerships benefit not only the recipients but also ouremployees. In Berlin, for example, our employees are granted free admissionto 25 cultural institutions, including the Pergamon Museum and the Oldand New National Galleries. In Stuttgart, Mercedes-Benz Bank is the mainpartner of the Kulturfabrik Theaterhaus, which offers our employeesdiscounted tickets for many of its events. In the U.S. and Canada, DaimlerFinancial Services cultivates partnerships with several renowned artacademies, including the Cranbrook Academy of Arts in Michigan, theOntario College of Art & Design, the Southern Methodist University andthe Christian University in Texas. In this way, art students and employeesfrom Daimler Financial Services can enter into a dialogue about art andinnovation.Daimler Financial Services: An attractive employerTransforming one person’s idea into a globally leading service: Our successfulcar2go mobility concept demonstrates that a company’s greatness dependson its employees’ enthusiasm and ideas. At Daimler Financial Services, thisinsight isn’t just a theory; it’s everyday reality. We want to be the best employerfor our staff members and one of the first companies that job-seekers consider.To enable us to continuously enhance our corporate culture, we promotedirect discussions throughout the company and focus on partnerships thatare characterized by trust, quick implementation and a customer-orientedapproach. Even more importantly, we are always open to employee feedback.One example of this is the global employee survey that is regularly conductedby the independent Great Place to Work Institute. The results of the mostrecent survey are encouraging, as eight out of ten respondents considerDaimler Financial Services a very attractive employer overall. In the U.S.,Canada and Portugal, jobs at our company are among the most sought-afterpositions in the country.16 | Daimler Financial Services at a Glance Company Overview 2013 | 17
Milestones in 2012 August 1: Daimler Financial Services becomes the first captive automobile financing company in China to enable private and commercial customers to lease vehicles. August 16: Mercedes-Benz Bank goes on Facebook to intensify its direct dialogue with customers.February 20: The new BharatBenz brand is launched in India. To accompany September 1: In Canada, Daimler Financial Services ranks ninth on the list of thethe launch, Daimler Financial Services begins to offer financing and insurance most popular national employers, as ascertained by the independent Great Placeproducts for trucks from this locally manufactured Daimler brand. At the end of To Work survey. The rankings also show that the subsidiaries in the U.S. andthe year 2012, the Indian Daimler Financial Services subsidiary already had a Portugal are among the most popular companies in their respective countries.contract volume of over €100 million. October 2: The new call center of Daimler Financial Services’ nationalApril 19: Mercedes-Benz Bank becomes the new main sponsor of the German subsidiary in China takes first place in the Industry Promising Star of the Yearpremier league soccer team VfB Stuttgart. In the 2012-2013 season, the VfB category of the Best Customer Contact Center & CRM Awards 2012.players wear the bank’s name on their jerseys. November 7: Daimler Financial Services establishes a new subsidiary inMay 15: Mercedes-Benz Bank launches a mobile rate calculator. It enables Malaysia. The new company, which is called Mercedes-Benz Services Malaysia,customers to use their smartphones or tablet PCs to calculate the financing offers customers many attractive automotive financial services. Following theand leasing rates of a Mercedes-Benz car from anywhere and at any time. establishment of the new subsidiary, Daimler Financial Services is represented in 40 countries.May 31: In Canada, Daimler Financial Services captures first place in two ofthe three main categories of the dealer satisfaction survey conducted by the November 21: In Argentina, Daimler Financial Services achieves an impressiverenowned J.D. Power market research institute. index value of 95 percent in a customer satisfaction study. In Mexico, the local national subsidiary ranks first in a dealer satisfaction survey.June 1: Stephan Unger is appointed to the Daimler Financial Services Boardof Management, where he becomes Head of Finance & Controlling. November 23: MoneyWeek magazine presents Daimler Financial Services in China with its Best Auto Finance Product Award 2012 in recognition of theJune 15: Daimler Financial Services’ new sale&care program makes electric company’s finance-leasing product. The Daimler Financial Services nationalmobility affordable for everyone, as customers don’t have to buy the battery, subsidiaries in Taiwan and Australia take first place in dealer satisfactionwhich is the most expensive component in an electric vehicle, but only rent surveys.it. The offer also includes regular maintenance, servicing and — if necessary —fast replacement of the battery. November 29: car2go is launched in Daimler’s home town of Stuttgart. In the city, the market leader for flexible carsharing operates Germany’s largest fleetJuly 11: The new smartphone app moovel brings together information about of electric vehicles, encompassing 300 battery-electric smart brand cars.the transport services offered by a wide range of mobility providers so thatusers can find out how to get from point A to point B most conveniently. November 29: For the first time ever, the company manages financing andFollowing an initial pilot project in Stuttgart, the app is launched in Berlin in leasing contracts worth over $30 billion in the U.S. No other country in thethe fall of 2012. world accounts for such a large contract volume at Daimler Financial Services. The Americas region has a combined portfolio of over $40 billion.July 18: For the fourth time in a row, Mercedes-Benz Bank comes out on top inAutohaus Bankenmonitor’s Premium Vehicle category. The bank’s financial December 10: Mercedes-Benz Bank celebrates its 25th anniversary. Overservices for the smart brand win the Niche Vehicle category for the second time. the past quarter of a century, the company has become one of Germany’s top three automotive banks with an associated direct banking business.18 | Daimler Financial Services at a Glance Company Overview 2013 | 19
Our 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 Stephan Unger Chairman of the Board of Management of Member of the Board of Management, responsible for Daimler Financial Services AG Finance, Controlling and Risk Management 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 and 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 LLC20 | Daimler Financial Services at a Glance Company Overview 2013 | 21
Daimler at a GlanceDaimler AG is one of the world’s most successful automotive companies. Daimler GroupWith its divisions Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans,Daimler Buses and Daimler Financial Services, the Daimler Group is one of the (in millions of euros) 2012 2011biggest producers of premium cars and the world’s biggest manufacturer ofcommercial vehicles with a global reach. Daimler Financial Services providesfinancing, leasing, fleet management, insurance and innovative mobility services. Revenue 114,297 106,540 Western Europe 39,377 39,387The company’s founders, Gottlieb Daimler and Carl Benz, made history with thereof Germany 19,722 19,753the invention of the automobile in the year 1886. As a pioneer of automotive NAFTA 31,914 26,026engineering, Daimler continues to shape the future of mobility today: The thereof United States 27,233 22,222Group’s focus is on innovative and green technologies as well as on safe and Asia 25,126 22,643superior automobiles that appeal to and fascinate. For many years now, thereof China 10,782 11,093Daimler has been investing continually in the development of alternative drive Other markets 17,880 18,484systems with the goal of making emission-free driving possible in the long Employees (December 31) 275,087 271,370term. So in addition to vehicles with hybrid drive, Daimler now has the broadest Investment in property, plant and equipment 4,827 4,158range of locally emissionfree electric vehicles powered by batteries and fuel Research and development expenditure 5,644 5,634cells. This is just one example of how Daimler willingly accepts the challenge EBIT 8,615 8,755of meeting its responsibility towards society and the environment. Value added 4,185 3,726 (including discontinued operations)Daimler sells its vehicles and services in nearly all the countries of the world Net profit (loss) 6,495 6,029and has production facilities on five continents. Its current brand portfolio Earnings (loss) per share (in €) 5.71 5.32includes, in addition to the world’s most valuable premium automotive brand,Mercedes-Benz, the brands smart, Freightliner, Western Star, BharatBenz,Fuso, Setra and Thomas Built Buses. The company is listed on the stockexchanges of Frankfurt and Stuttgart, Germany (stock exchange symbol DAI). EBIT by divisionIn 2012, the Group sold 2.2 million vehicles and employed a workforceof 275,000 people; revenue totaled €114.3 billion and EBIT amounted to (in millions of euros) 2012 2011€ 8.6 billion. Mercedes-Benz Cars 4,389 5,192 Daimler Trucks 1,714 1,876 Mercedes-Benz Vans 541 835 Daimler Buses -232 162 Daimler Financial Services 1,292 1,31222 | Daimler Financial Services at a Glance Company Overview 2013 | 23
Your media contacts James Ryan Director Corporate and Marketing Communications Phone +49 711 2574 4050 email@example.com Harald Bertsch Michael Braun Senior Manager Communications Mercedes-Benz Bank Manager Corporate Communications and Daimler Financial Services Europe Daimler Financial Services Africa & Asia Pacific Phone +49 711 2574 4010 Phone: +65 6849 5632 firstname.lastname@example.org email@example.com Oliver Wihofszki Michael Kuhn Manager Media Relations Mercedes-Benz Bank Senior Manager Communications and Social Media and Daimler Financial Services Europe Daimler Mobility Services GmbH Phone +49 711 2574 4039 Phone +49 711 17 24855 firstname.lastname@example.org email@example.com Andreas Spannbauer Andreas Leo Manager Global Corporate Communications Manager Communications car2go Daimler Financial Services Phone +49 731 5056821 Phone +49 711 2574 4078 firstname.lastname@example.org email@example.com Jelena Jelich Katie Stafford Senior Manager Corporate and Marketing Manager Communications car2go North America Communications Daimler Financial Services Americas Phone +1 512 4286233 Phone +1 248 9916600 firstname.lastname@example.org email@example.com Jack Ferry Katrin Saternus Manager Media Relations Mercedes-Benz Financial Manager Communications moovel and Parking Services Services and Daimler Truck Financial Services Phone +49 711 17 83497 Phone +1 248 9916610 firstname.lastname@example.org email@example.com | Daimler Financial Services at a Glance Company Overview 2013 | 25
Daimler Brand Portfolio Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services26 | Daimler Financial Services at a Glance Company Overview 2013 | 27