Daimler AG "Q1 2013 Corporate Presentation"


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Daimler AG "Q1 2013 Corporate Presentation"

  1. 1. Corporate PresentationApril/May 2013
  2. 2. 2ContentsActuals Q1 2013DivisionsOutlook 2013AppendixDaimler Group
  3. 3. Development in Q1 2013Very weak European markets at the beginning of 2013Demand for passenger cars, trucks and vans in Europe lower than expectedIn China, sales of Mercedes-Benz passenger cars not yet back on a sustainable growth pathGreat acceptance of the new A- and CLA-ClassProduct offensive of Daimler Trucks largely completed by new Arocs and new AtegoVery positive response to the new E-ClassIn USA, high demand for passenger cars and early signs of recovery of the truck marketIncrease in market share in core marketsWeak demand for trucks in North America and Japan3Actuals Q1 2013
  4. 4. Key financialsQ1 2012 Q1 2013Revenue 27.0 26.1EBIT*as reported 2.1 0.9from ongoing business 2.1 0.9Net profit* 1.4 0.6Earnings per share (in euros)* 1.26 0.50Net liquidity industrial business (2012: year-end) 11.5 10.0Free cash flow industrial business -2.0 -1.2- in billions of euros -* 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.4Actuals Q1 2013
  5. 5. Key balance-sheet figures- in billions of euros -Daimler Group Dec. 31, 2012 March 31, 2013Equity ratio 22.7%* 22.5%Gross liquidity 16.6 17.7Industrial businessEquity ratio 39.8%* 38.3%Net liquidity 11.5 10.0* 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.5Actuals Q1 2013
  6. 6. Net industrial liquidity: Development in Q1 2013- in billions of euros -Net liquidityindustrial12/31/2012Earnings andother cash flowimpactWorkingcapitalimpactOther Net liquidityindustrial3/31/2013-0.3 10.011.5-0.4-0.7*Free cash flow industrial businessQ1 2013: minus €1.2 billionM&A-0.1* Including investments in property, plant and equipment and capitalized development cost of €1.4 billion6Actuals Q1 2013
  7. 7. Unit sales- in thousand units-Q1 2012 Q1 2013 % ChangeDaimler Group 502.1 501.6 -0.1of whichMercedes-Benz Cars 338.3 341.5 +0.9Daimler Trucks 107.7 101.4 -5.8Mercedes-Benz Vans 51.2 52.6 +2.7Daimler Buses 4.9 6.0 +23.27Actuals Q1 2013
  8. 8. Product highlightsNew E-ClassA-Class A 45 AMG New CLA-Class8Actuals Q1 2013
  9. 9. Product highlightsMercedes-Benz Arocs Freightliner CascadiaFuso Canter Eco HybridAuman truckMercedes-Benz AntosBharatBenz trucks9Actuals Q1 2013
  10. 10. Product highlightsMercedes-Benz Sprinter, Vito and Citan10Actuals Q1 2013
  11. 11. Product highlights11Mercedes-Benz Citaro Euro VIMercedes-Benz Travego Euro VISetra ComfortClass 500Actuals Q1 2013
  12. 12. Revenue by segment- in billions of euros -Q1 2012 Q1 2013 % ChangeDaimler Group 27.0 26.1 -3.4of whichMercedes-Benz Cars 14.9 14.1 -5.5Daimler Trucks 7.4 7.0 -4.9Mercedes-Benz Vans 2.1 2.0 -4.9Daimler Buses 0.7 0.8 +2.9Daimler Financial Services 3.1 3.6 +13.9Contract volume ofDaimler Financial Services*80.0 81.7 +2.1* Figures as of December 31, 2012 and March 31, 2013.12Actuals Q1 2013
  13. 13. EBIT by division- EBIT in millions of euros; RoS in % -Q1 2012 Q1 2013EBIT RoS* EBIT RoS*Daimler Group 2,098 6.6 917 2.6of whichMercedes-Benz Cars 1,230 8.2 460 3.3Daimler Trucks 376 5.1 116 1.7Mercedes-Benz Vans 167 8.0 81 4.1Daimler Buses -105 -14.4 -31 -4.1Daimler Financial Services 344 – 314 –Reconciliation 86 – -23 –* Return on sales; Daimler Group excluding Daimler Financial Services13Actuals Q1 2013
  14. 14. 14ContentsActuals Q1 2013DivisionsOutlook 2013AppendixDaimler Group
  15. 15. 15Daimler’s identity: a unique combination of leadingtechnologies, strong brands and market leverageDaimler Group
  16. 16. 16Daimler strategy:Combining growth and efficiency across the entiregroupDaimler Group
  17. 17. 17Combining growth and efficiency in every divisionExamples for Mercedes-Benz Cars and Daimler TrucksDaimler Group
  18. 18. 18Our growth targetsDaimler Group
  19. 19. 19Our financial targetsDaimler Group
  20. 20. 20ContentsActuals Q1 2013DivisionsOutlook 2013AppendixDaimler Group
  21. 21. 21On our way to leadership in the premium segmentDivisions – Mercedes-Benz Cars
  22. 22. Balanced sales structure- Unit sales in thousands -Q1 2012Rest of worldGermanyUSAChina338Western Europeexcl. Germany342Q1 20134668618978436965926922Divisions – Mercedes-Benz Cars
  23. 23. - Unit sales in thousands -Increase in unit sales mainly of A-/B-Class and SUVsQ1 2012338 342Q1 2013165989797222761005261smartC-ClassE-ClassS-ClassA-/B-ClassSUV segment262723Divisions – Mercedes-Benz Cars
  24. 24. 24Four levers of Mercedes-Benz 2020Brand ProductSales ProfitBrand ProductSales ProfitDivisions – Mercedes-Benz Cars
  25. 25. 25Brand: Development of brand value and perceptionProduct reliability – AMS Survey60657075808590201120122013%20102009200820072006200520042003Safety – AMS Survey65707580859095100200920082007200620052004200320102011%20122013Perception of advertisement – AMS Survey4045505560657075%20062005200420032007200820092010201120122013Good aftersales – AMS Survey55606570758085%20032004200820092010201120122013200520062007Competitor A Competitor BDivisions – Mercedes-Benz Cars
  26. 26. 26Adding 13 new models to our existing portfolio by 2020Divisions – Mercedes-Benz Cars
  27. 27. 27Products: Our new E-Class FamilyDivisions – Mercedes-Benz Cars
  28. 28. 28Products: Our new A-ClassDivisions – Mercedes-Benz Cars
  29. 29. 29Products: Our new CLA-ClassDivisions – Mercedes-Benz Cars
  30. 30. 30Products: Our new CLS Shooting BrakeDivisions – Mercedes-Benz Cars
  31. 31. 31Products: Our new SL-ClassDivisions – Mercedes-Benz Cars
  32. 32. 32Products: SUV Offensive – Our new GLK-, G- and GL-ClassDivisions – Mercedes-Benz Cars
  33. 33. 33Products: Three essential drive systemsDivisions – Mercedes-Benz Cars
  34. 34. 34Reducing CO2 emissionsAverage CO2 emissions per kilometer of our Mercedes-Benz Car fleet in EuropeDivisions – Mercedes-Benz Cars
  35. 35. 35Connecting growth and efficiencyDivisions – Mercedes-Benz Cars
  36. 36. Mercedes-Benz Cars: Fit for LeadershipFlight path towards benefits Key levers• 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 model12/2012 12/2013 12/2014Additional top-line effectsWe aim to achievea significantportion of costreduction by theend of 2013Cost reduction€2.0bn36Divisions – Mercedes-Benz Cars
  37. 37. 37Accelerated achievement of “Net Zero”Divisions – Mercedes-Benz Cars
  38. 38. 38Module strategy on trackRollout of module strategy within all passenger car models,schematic representationDivisions – Mercedes-Benz Cars
  39. 39. 39Increasing productivity even furtherMercedes-Benz passenger cars: reduction of hours per vehicleDivisions – Mercedes-Benz Cars
  40. 40. 40Structural improvement in our China businessDivisions – Mercedes-Benz Cars
  41. 41. 41Strategic investment in BAIC motorDivisions – Mercedes-Benz Cars
  42. 42. 42Financial Outlook and Targets▸ Strategic Return Target10% RoS on average▸ Capital and cost disciplineMilestones: CapEx Ratio ~7% / R&D Ratio ~6%▸ Flexible footprint and productivity improvementMilestone: HPV 30h in 2015▸ Sales leadershipMilestones: >1.5 in 2014 / >1.6 in 2015▸ Technology leadershipMilestone: 125 g CO2 / km fleet average in 2016Divisions – Mercedes-Benz Cars
  43. 43. 43DT#1 with right structure to strengthen leadershipposition: “As global as possible, as local as necessary"Divisions – Daimler Trucks
  44. 44. Sales decrease especially in Asia- in thousands of units -Q1 2012Rest of world108Asia101Q1 201312311335101333104012Western EuropeNAFTA regionLatin America44Divisions – Daimler Trucks
  45. 45. Truck industry offers positive mid-term dynamics3.6% p.a. global growth, increasing relevance of RICConvergence of emission regulationsTCO increasingly relevant for customersVehicle upgrading – "Modern Domestic" becomingbiggest segmentStructural growth of high margin aftersales business12345Divisions – Daimler Trucks
  46. 46. Mid-term industry dynamics give DT a clear advantageover its regional competitors in the futureTriad recovery andBRIC growthIncreasing TCOrelevanceConvergence ofemission regulationsProfit potentialGrowth potentialLow HighMediumLowMediumHigh Global winnersKey PeersVehicle upgrading –new "Modern Domestic"Profit growth inaftersales ConsolidationtargetsAsiachallengersIndustry trendsDaimler TrucksDivisions – Daimler Trucks
  47. 47. The foundation for profitable growth has been laid witha strong product pipeline with new global platformsProduct offensive to continue over next yearsBharat BenzMDEG/HDEPSFTP Super Great HDEP Actros Brazil AntosAumanCanter HybridCascadiaSevere Duty LineDivisions – Daimler Trucks
  48. 48. 48Achieving global scale effectsDivisions – Daimler Trucks
  49. 49. TCO increasingly relevant as key driver for customerdecisionsDT benchmark in fuel efficiency- example Europe -Typical operator cost structure (triad)Truck influencedSource: Bundesverband Güterkraftverkehr, Logistik und Entsorgung; Truckers Report3x%-1-2-627.1l/100 km25,1l/100 km-7.6 %25.1l/100 km-4.5 %25.9l/100 kmNew Actros1845(Euro V)New Actros1845(Euro VI)Actros 1844(Euro V)New global engine generation ensures benchmark position in all regionsBenchmarkLabor9%29%Vehicle purchaseServiceFuelTax, insurance,overhead, toll fee2007 201110%26%Divisions – Daimler Trucks
  50. 50. 50Accelerating Global Excellence: “Daimler Trucks #1“Divisions – Daimler Trucks
  51. 51. Daimler Trucks #1Top-lineCostreduction 70%30%€1.6bn12/2012 12/2013 12/2014We aim to achievea significant portionof cost reduction bythe end of 2013• Sales and aftersales push• Module strategy to realize global scale• Future Asia Business Model• Strong efficiency push in all OperatingUnits: Fixed costs Material costs Production costs Warranty and quality costsFlight path towards benefits Key levers51Divisions – Daimler Trucks
  52. 52. 4 OU Excellence Initiatives covering our global business• Sales and Aftersales push• Cost optimization• Quality push• People and high performance culture8 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 ModelGlobalPowertrainGET FullPower 2Operating Unit Excellence ProgramsTrucks NAFTARoad toLeadershipTrucks AsiaFuso 2015Trucks EU/LAMB TRUCKS#1Cross-business excellence initiativesDT#1 with right structure to strengthen leadershipposition: “As global as possible, as local as necessary"Divisions – Daimler Trucks
  53. 53. Eight cross-business work-packages to achieve ourvisionLean DTWP 7Asia businessmodelWP 8Sales push(white spots)WP 2Aftersales/downstreampushWP 4DT businessportfolioWP 1NewTP setupWP 6DT productstrategy andmanagementWP 5Truck S&MdedicationWP 3•Optimize fundingallocation andportfolio:– Businesses– Products– Projects– Cooperations•Developuntapped or notyet fully coveredmarkets andproductsegments•Optimizeinternationalmarketmanagementmodel•Optimize truckdedication andcustomer orien-tation for MBEurope•Further improveintegratedservices for ourcustomers•Enhance globalaftersales andremanufactur-ingbusiness•Realize globalscale andsourcingadvantagesthroughenhancedplatform/modulestrategy andoptimizedmaterial costs•Develop futureTP setup•Improve R&Dallocation andefficiency•Focus onplatform, moduleand commonality•Optimize indirectfunctions•Establish leanprocesses andmindset•Developintegratedbusiness modelfor Asia toincrease AsiamarketexploitationOur Vision:We are No. 1 in the global Truck business, create superior value for ourcustomers and are benchmark for quality and profitability, Wave 1Divisions – Daimler Trucks
  54. 54. Financial Outlook and Targets▸ TargetWe continue to target a RoS of 8% on average over the cycle, supported byDT#1, however, from a later starting point.▸ Outlook 2013Increase in unit sales and EBIT in the magnitude of the prior year expected▸ Our visionNo. 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▸ Sales leadershipMilestones: over 500k in 2015 / 700k in 2020▸ Technology leadershipWe offer the best products in terms of TCO and fuel efficiency, globally.Divisions – Daimler Trucks
  55. 55. 55ContentsActuals Q1 2013DivisionsOutlook 2013AppendixDaimler Group
  56. 56. Launch of new vehiclesCompact carsSedans2012 2013 2014New E-classcoupe and cabrioletNew A-classNew E-classNew GLA-classNew C-classNew CLA-classTrucksVansNew mid-size vanBusesNew Setra TopClass 500New Antos New Arocs New GenerationFuso Super GreatNew Generation SprinterSprinter Classic RussiaNew AtegoNew CitanNew CascadiaEvolutionNew UnimogNew CitaroEuro VITravegoEuro VINew Comfort-Class 50056New S-classOutlook 2013
  57. 57. Assumptions for automotive markets in 2013Car marketsGlobalWestern EuropeTruck marketsNAFTAEuropeJapanBrazilEuropeBus marketsWestern EuropeBrazil+2% to +4%declineup to -5%around -5%up to -5%up to +10%around -5%at prior year’s levelmoderate growthU.S./Asia growth in China and USAVan markets57Outlook 2013
  58. 58. Sales outlook FY 2013• Higher unit sales• Growth supported by new Mercedes-Benz Citaro and Setra 500• Maintain market leadership in core markets• Increase in unit sales• Support from new city van Citan and new generation of Sprinter• Launch of Sprinter Classic in Russia• 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 regions58Outlook 2013
  59. 59. 2013 expectations for EBIT from ongoing businessSecond half of 2013:Earnings improvement expected compared with the level of the first half, due to theplanned new models, the assumptions made for the development of markets important toDaimler 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 thecourse of the year as well as lowered market expectations and the weaker than expected EBITin the first quarter, Group EBIT from the ongoing business is expected to be below the previousyear’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 magnitudeof the prior year.Daimler Buses: Earnings are expected to be higher than in the prior year.2014 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.59Outlook 2013
  60. 60. 60ContentsActuals Q1 2013DivisionsOutlook 2013AppendixDaimler Group
  61. 61. EBIT Mercedes-Benz CarsForeign exchange ratesRegional and model mixEnhancement of product attractivenessHigher expenses, among others for newtechnologies, new products and additional capacityEBITQ1 2012EBITQ1 20131,230460- 7708.2%*3.3%** Return on sales- in millions of euros -61Appendix
  62. 62. EBIT Daimler TrucksEBITQ1 2012EBITQ1 2013376116- 2605.1%*1.7%** Return on salesIncreased sales in BrazilMarket-related sales decrease in NAFTA, Europeand AsiaExpenses related to the expansion of business inIndia and ChinaProduction adjustments especially in NAFTA andEuropeHigher warranty costs- in millions of euros -62Appendix
  63. 63. EBIT Mercedes-Benz Vans- in millions of euros -EBITQ1 2012EBITQ1 201316781- 868.0%*4.1%** Return on salesProduct mix and regional sales structurePreparation for new products includinglaunch costs for Sprinter Classic in Russia63Appendix
  64. 64. EBIT Daimler BusesEBITQ1 2012EBITQ1 2013-105-31+ 74-14.4%*-4.1%** Return on salesIncrease in unit sales especially in Latin AmericaForeign exchange ratesEfficiency enhancementsLower costs for business repositioning in Europe- in millions of euros -64Appendix
  65. 65. EBIT Daimler Financial Services- in millions of euros -EBITQ1 2012EBITQ1 2013- 30344314Higher contract volumeHigher cost of riskLower interest margins65Appendix
  66. 66. Group EBIT in Q1 2013- in millions of euros -ActualQ1 2012Volume/Structure/Net pricingForeignexchangeratesOther costchangesOther ActualQ1 2013FinancialServices-816-89917-302,098+91-337• Cars -297• Trucks -19• Vans -52• Buses +30• Cars +55• Trucks +19• Vans +2• Buses +15• Cars -528• Trucks -248• Vans -36• Buses -4thereof:Discounting ofprovisions +123• Cars +72• Trucks +23thereof:WorkforceadjustmentsDaimler Trucks -13BusinessrepositioningDaimler Buses +3266Appendix
  67. 67. Special items affecting EBIT- in millions of euros -1st quarterDaimler Trucks 2012 2013Workforce adjustments* – -13Daimler BusesBusiness repositioning** -36 -4* 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 2013.67Appendix
  68. 68. EBIT from ongoing business- EBIT in millions of euros; RoS in % -Q1 2012 Q1 2013EBIT RoS* EBIT RoS*Daimler Group 2,134 6.8 934 2.7of whichMercedes-Benz Cars 1,230 8.2 460 3.3Daimler Trucks 376 5.1 129 1.8Mercedes-Benz Vans 167 8.0 81 4.1Daimler Buses -69 -9.5 -27 -3.6Daimler Financial Services 344 – 314 –Reconciliation 86 – -23 –* Return on sales; Daimler Group excluding Daimler Financial Services68Appendix
  69. 69. 69Capital expenditure / Research and development- in billions of euros -Appendix
  70. 70. Higher level of order intake in most regions- in thousands of units -* Due to the business model, incoming orders in Brazil correspond with unit sales.Q1 2012107127Q1 201315361445171528104014AsiaWestern EuropeNAFTARest of worldLatin America*70Appendix
  71. 71. - Unit sales in thousands -Higher unit sales due to increase outside WesternEuropeQ1 201251.2 52.6Q1 20134.
  72. 72. Increase in unit sales especially due to higher demandin BrazilQ1 2012 Q1 2013EuropeNAFTA regionRest of worldBrazilLatin America(excl. Brazil) Unit sales in thousands -72Appendix
  73. 73. Increase in contract volume driven by growth in theAmericas regions- in billions of euros -12/31/2012 3/31/2013Europe (excl. Germany)AmericasAfrica & Asia/PacificGermany80.017.816.734.111.381.717.616.835.611.673Appendix
  74. 74. Net credit losses*0,69% 0,68%0,50%0,61%0,36%0,51%0,89%0,83%0,43%0,30%* as a percentage of portfolio, subject to credit risk** annualized rate0.30%**2003 2004 2005 2006 2007 2008 2009 2010 2011 2013YTD201274Appendix
  75. 75. Effects of the application of the revised accountingstandard IAS 19Total equity (in billions of euros) Net profit (in millions of euros)12/2012reported12/2012adjustedPensionsObligations for part-time early retirementAdjustments45.539.3-8.3 +1.8+0.3Mainly deferred taxesQ1 2013IAS 19 oldQ1 2013reportedAdjustments538 564+29 -20+17-6.2Direct effect of actuarial gains and losses on equityPro-rata addition to part-time early retirement provisionEBIT:Effects of part-time early retirement provisionInterest result:No amortization of actuarial gains and lossesNet interest approach: expected rate of return of planassets equals discount rate of defined benefit obligationEBITInterest resultTaxes+2675Appendix
  76. 76. Effects of the application of IAS 19 on the majorpositions of the consolidated financial statements- in millions of euros -Effects on the consolidated statement of financial position Dec. 31, 2011 Dec. 31, 2012Investments accounted for using the equity method -357 -342Other assets -37 -33Total equity -4,045 -6,139Provisions for pensions and similar obligations 4,682 8,264Provisions for other risks -334 -347Balance of deferred tax assets and deferred tax liabilities -697 -2,153Effects on the consolidated statement of income Q1 2012 FY 2012EBIT -30 -7Interest result 46 193Income taxes -6 -63Net profit 10 12376Appendix
  77. 77. 77Disclaimer
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