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Daimler in China 2012
Daimler in China 2012
Daimler in China 2012
Daimler in China 2012
Daimler in China 2012
Daimler in China 2012
Daimler in China 2012
Daimler in China 2012
Daimler in China 2012
Daimler in China 2012
Daimler in China 2012
Daimler in China 2012
Daimler in China 2012
Daimler in China 2012
Daimler in China 2012
Daimler in China 2012
Daimler in China 2012
Daimler in China 2012
Daimler in China 2012
Daimler in China 2012
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Daimler in China 2012

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  • 1. Daimler in ChinaSignificance of China Market to DaimlerChina is Upgrading its Growth QualityDaimler Getting Prepared for Future in ChinaUlrich Walker / Daimler Northeast Asia Morgan Stanley Investor Field Trip / June 18, 2012
  • 2. 1 Significance of China Market to DaimlerSignificant growth of Daimler business in China 233  Wholesale Volume CAGR PV / Trucks / Van 31 +50% [in thousand units] 2006 2008 2010 2011 11,093  Group Revenue CAGR PV / Trucks / Van [in million EUR] 1,637 +47% 2006 2008 2010 2011 ~2,000 590 CAGR  Headcount China +28% 2006 2008 2010 2011Morgan Stanley China Industrials Summit Daimler NEA / Corporate Office 2
  • 3. 1 Significance of China Market to DaimlerDaimler China performance YTD May 2012 88,000 4th Mercedes-Benz Trucks Mercedes-Benz Cars units sold in China in YTD May market for Daimler in 2011 13% 65% More than 65% of market share YoY growth in YTD May 2012 in WEU segment in China 3rd 2,500 LOI with Zoomlion for delivery market for Daimler worldwide of 2500 units MB trucks Mercedes-Benz Auto Finance 3,000 Mercedes-Benz Vans units sold in China in YTD May 63 dealers planned for 2012 5th 2.1 14.9% 6th market for Daimler in 2011 billion EUR portfolio in China YTD penetration rate for MBPC market for Daimler in 2011Morgan Stanley China Industrials Summit Daimler NEA / Corporate Office 3
  • 4. 2 China is Upgrading its Growth QualityEconomic Growth: Soft Landing achievedWith Structural Changes Taking Place GDP 35 Investment - Urban YTD Quarterly Growth: % GDP Growth driven factors, real, YTD in % 31 27 Net Export Final Consumption 23 11.9 Investment GDP Growth 19 15 05 06 07 08 09 10 11 12 10.3 9.6 9.8 9.7 9.5 9.1 8.9 25 Comsumption - Total Retail YTD Quarterly 8.1 22 Growth: % 19 16 13 10 05 06 07 08 09 10 11 12 60 Foreign Trade YTD Quarterly Growth: % 45 30 15 0 -15 Q1 10 Q2 Q3 Q4 Q111 Q2 Q3 Q4 Q112 -30 05 06 07 08 09 10 11 12Morgan Stanley China Industrials Summit Daimler NEA / Corporate Office 4
  • 5. 2 China is Upgrading its Growth QualityShifting from “Curbing Inflation” to “Stabilizing Growth”New Stimulus to Address Economic Slowdown Governmental Expenditure Governmental Expenditure Industrial Policy Industrial Policy > 36.3 Billion to Subsidize Energy-efficient Product > Speeding More Investment in Fixed Assets Energy-efficient Home Appliance 100+ Clean Energy Newly Approved 3 Major Steel Mills Projects FAI… in 130 bil. RMB Energy-saving Vehicles 26.5 bil. Energy-efficient Lighting Rail Projects 4 Airport Construction in 500 bil. RMB Subsidized Urban Housing 6 bil. High-performance Motors Project 2.2 bil. 1.6 bil. Monetary Policy Monetary Policy Fiscal Policy Fiscal Policy > RRR Cut for monetary easing > Tax cut to encourage mid/small enterprises 22 The “Experimental Structural Tax Cut” in Shanghai, which 20 allowed companies in service industry to pay value-added taxed instead of business tax, is expected to expand to 10 provinces 18 and municipalities. 16 In the meantime, the government promised that the existing Reserve Ratio 14 50% tax cut for small and low-profit enterprises would be Large Depository Institution extended to the end of 2015. 12 10 11 12Morgan Stanley China Industrials Summit Daimler NEA / Corporate Office 5
  • 6. 2 China is Upgrading its Growth QualityChina Automotive MarketContinued to top world sales in both PV and CV segments World Top PV Markets World Top PV Markets World Top Truck Markets World Top Truck Markets 20 4 Mil. Units) Mil. Units) 15 3 China China US 10 2 5 Japan 1 US Germany Japan Germany 0 0 00 01 02 03 04 05 06 07 08 09 10 11 00 01 02 03 04 05 06 07 08 09 10 11  China surpassed the United States to become the world’s  Despite a negative growth in total sales due to weakened No. 1 PV market in 2010. Despite a slowdown in growth macro economic growth, China market continued to rate, China PV sales continued to lead world major markets dominate world truck sales, accounting for more than 50% for the second year in the row in 2011. of the world’s total truck sales for the year 2011.Morgan Stanley China Industrials Summit Daimler NEA / Corporate Office 6
  • 7. 2 China is Upgrading its Growth QualityRegional difference, low car density, urbanization andrising individual income provide potential for growth Regional Differences Low Car Density Italy 562 West Region Growth: +12% Germany 522 Japan 452 East Region USA 417 Growth: +0.7% Russia 251 Middle Region Brazil 137 Growth: +10% China 41 41 Car per 1000 people India 11 (in units, as of 2011) *Growth rate based on 2011 New Car Registration Urban Households by Annual Income Annual Income (in thousand RMB), Household (in thousand) >240,000 47.5%  51.5%  55.0% <=50 (50,90] (90,150] >150 End of 2010 End of 2015 End of 2020 10 cities Population > 10 million 100 cities Population > 5 million 270 cities Population > 1 million 08 09 10 11 12 13 14 15 16 17 18 19 20 Urbanization Rising Individual IncomeMorgan Stanley China Industrials Summit Daimler NEA / Corporate Office 7
  • 8. 3 Daimler Getting Prepared for Future in China Daimler is the ONLY premium manufacturer in China that covers all automotive segments 2008 2001 2005 Daimler Northeast Asia Parts Daimler Northeast Asia Ltd. Mercedes-Benz Auto Finance Ltd. Trading & Services Co., Ltd. Equity: DAI 100% Equity: DAI 100% Equity: DAI 100% Business: Spare Parts Trading & Services Business: Investment Holding Business: Financial Services 2005 2012 Beijing Benz Automotive Co., Ltd. Mercedes-Benz Leasing Co., Ltd. Equity: DAI 50% / BAIC 50% Equity: DAI 100% Product: MB C-Class, E-Class, GLK-Class Business: Finance Lease, Operating Lease NEW! 2011 First in the market Beijing Foton Daimler BeijingNEW! Automotive Co., Ltd. 2005Feb.18 Equity: DAI 50% / Foton 50% Mercedes-Benz (China) Ltd. GrandOpening Product: MHDT Auman Truck, OM457 Engine Equity: DAI 51% / LSH 49% 2007 Product: MB PV wholesale Fujian Benz Automotive Fuzhou Co., Ltd. Taiwan Shenzhen Equity: FJMG 50% / DAI 34% / CMC 16% Product: MB Vito/Viano, Sprinter Hong Kong 2011 2005 2001 Shenzhen BYD Daimler New Technology Co., Ltd. Mercedes-Benz Hong Kong Ltd. Mercedes-Benz Taiwan Ltd. NEW! Brand Equity: DAI 50% / BYD 50% Equity: DAI 100% Equity: DAI 51% / LSH 49% DENZA Product: DENZA (2013) Product: MB PV & CV wholesale Product: MB PV & CV wholesale Morgan Stanley China Industrials Summit Daimler NEA / Corporate Office 8
  • 9. 3 Daimler Getting Prepared for Future in ChinaMercedes-Benz 2020: Ambition to leadLeading Globally Requires Leadership Position in China Best BRAND – Best PRODUCTS – Best SALES – Best PROFITABILITYMorgan Stanley China Industrials Summit Daimler NEA / Corporate Office 9
  • 10. 3 Daimler Getting Prepared for Future in ChinaIn China, Mercedes-Benz is not only a car brand, butTHE car brand Mercedes-Benz has outperformed all the competitors in terms of overall brand leadership in China in 2011Morgan Stanley China Industrials Summit Daimler NEA / Corporate Office 10
  • 11. 3 Daimler Getting Prepared for Future in ChinaChina with promising perspective and tendency tobecome the 2nd Home market for Daimler 2006 2007 2008 2009 2010 2011 2012 ~2020 …… …… #9 #11Morgan Stanley China Industrials Summit Daimler NEA / Corporate Office 11
  • 12. 3 Daimler Getting Prepared for Future in ChinaNetwork development to support sales growth MB Segment Network Development 2006 – 2012 (Estimation) No. of Outlets 207 166 141 121 96 76 2006 2007 2008 2009 2010 2011 2012Morgan Stanley China Industrials Summit Daimler NEA / Corporate Office 12
  • 13. 3 Daimler Getting Prepared for Future in ChinaDaimler addressing the China market in a morematured and customer-oriented way Certified Used Car a. Age ≤ 4 years b. Mileage ≤ 100,000 km c. No structural damage d. 158 points inspection • Warranty: 1 year/20 TKM • Road Side Assistance • Worldwide ranking from No. 11 in • Next service > 5 TKM 2009 to No. 3 in 2011 • Original Mercedes-Benz parts • 68 smart sales outlets are in • Mercedes-Benz trained technicians operation, covering 57 cities StarElite Pre-Owned Sales smart retail development in China +179% 10,800 +74% 1,334 767 3,877 1,769 2009 2010 2011 2012 2009 2010 2011 2012Morgan Stanley China Industrials Summit Daimler NEA / Corporate Office 13
  • 14. 3 Daimler Getting Prepared for Future in ChinaDeeper cooperation with Strategic Partner BBAC Industrialization Future Products Line-up Daimler and BAIC Plant Expansion (Beijing Automotive Group Co., Ltd) agree C-Class to extend their wide- Engine Plant ranging strategic partnership LWB E-Class 30 R&D Center 70 GLK-Class CBU 70 NGCC PbP 30 2010 … 2015Morgan Stanley China Industrials Summit Daimler NEA / Corporate Office 14
  • 15. 3 Daimler Getting Prepared for Future in ChinaDENZA – EV the Future!BDNT* Project well on track with record speed DENZA World Premier Signing of Signing of Beijing Motor Show MoU JVC Official Registration Brand Release Start of Production 2010 2011 Prototype phase 2012 Series Phase 2013 "Denza will be at the forefront in leading Chinas adoption of the vehicles.“ ChinaDaily "Two years ago, Daimler and BYD partnered up to DENZA Concept Car create an electric vehicle for the Chinese market, and now the first fruit of that relationship has debuted.“ Product Potential CarAndDriver.com Top Speed (km/h) 150 Max. 250-300 "The model is designed to showcase the partners Driving Range (km, Eco Mode) (Chinese driving cycle) technological prowess, blending BYDs EV know-howQuick / Standard Charging time ~1 hr / ~5 hr with Daimlers automotive design pedigree.“ Product Concept Standard mid-size sedan Yahoo.com* Shenzhen BYD Daimler New Technology Co., Ltd.Morgan Stanley China Industrials Summit Daimler NEA / Corporate Office 15
  • 16. 3 Daimler Getting Prepared for Future in ChinaLocal R&D capability has been set up across BusinessUnits in China Beijing Foton Daimler Automotive Co., Ltd Beijing Benz Automotive Co., Ltd. R&D Center for local produced commercial vehicles R&D Center for local produced passenger cars Daimler Northeast Asia Ltd. Mercedes-Benz Advanced Design Center Daimler Northeast Asia Ltd. Mercedes-Benz Research & Development China Beijing Shanghai Daimler Northeast Asia Ltd. Mercedes-Benz Engineering Supporting Office Fuzhou Shenzhen Mercedes-Benz SIM Technology Co., Ltd. Fujian Benz Automotive Co., Ltd. Shenzhen BYD Daimler New Technology Co., Ltd. R&D Center for local produced VansMorgan Stanley China Industrials Summit Daimler NEA / Corporate Office 16
  • 17. 3 Daimler Getting Prepared for Future in ChinaSustainable and seamless Talent Pipeline enablesbusiness growth Headcount Development Business Growth 2000 1500 1200 1000 770 2007 2008 2009 2010 2011 2012 Voluntary Turnover Rate 12.4% Business Growth 6.7% 6.6% supported by 5.3% 3.8% Talented People 2007 2008 2009 2010 2011 2012 2020Morgan Stanley China Industrials Summit Daimler NEA / Corporate Office 17
  • 18. 3 Daimler Getting Prepared for Future in ChinaSustainable and Profitable Growth in China Sustainability Management Integrity Business Operation Product Responsibility Operations-related environmental protection Our employees Social commitmentMorgan Stanley China Industrials Summit Daimler NEA / Corporate Office 18
  • 19. Q&ASignificance of China Market to DaimlerChina is Upgrading its Growth QualityDaimler Getting Prepared for Future in ChinaUlrich Walker / Daimler Northeast Asia Morgan Stanley Investor Field Trip / June 18, 2012
  • 20. DisclaimerThis document contains forward-looking statements that reflect our current views about future events. The words “anticipate,”“assume,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “should” and similar expressions are used to identifyforward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development ofglobal economic conditions, in particular a decline of demand in our most important markets; a worsening of the sovereign-debtcrisis in the eurozone; a deterioration of our funding possibilities on the credit and financial markets; events of force majeureincluding 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 preference towards smaller,lower margin vehicles; or a possible lack of acceptance of our products or services which limits our ability to achieve prices as wellas to adequately utilize our production capacities; price increases in fuel or raw materials; disruption of production due toshortages of materials, labor strikes, or supplier insolvencies; a decline in resale prices of used vehicles; the effectiveimplementation of cost-reduction and efficiency-optimization measures; the business outlook of companies in which we hold asignificant equity interest, most notably EADS; 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 governmental investigations and the conclusion of pending or threatened future legal proceedings; andother risks and uncertainties, some of which we describe under the heading “Risk Report” in Daimler’s most recent Annual Report.If any of these risks and uncertainties materialize, or if the assumptions underlying any of our forward-looking statements proveincorrect, then our actual results may be materially different from those we express or imply by such statements. We do not intendor assume any obligation to update these forward looking statements. Any forward-looking statement speaks only as of the dateon which it is made.Morgan Stanley China Industrials Summit Daimler NEA / Corporate Office 20

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