OK
Fixed Income Presentation FY 2020 Daimler AG Daimler AG Fixed Income Presentation | FY 2020 1 OK AGENDA
I. DAIMLER AG REVIEW FY 2020 II. DIVISIONAL REVIEW FY 2020 III. OUTLOOK 2021 IV. PROJECT FOCUS V. FUNDING VI. SUSTAINABILITY
Daimler AG Fixed Income Presentation | FY 2020 2 Daimler: Key messages
Financial targets achieved
Restructuring measures increased
Strategy in all divisions refocused
Future corporate structure planned
Significant earnings progress expected in 2021
Daimler AG Fixed Income Presentation | FY 2020 3 Daimler: Key figures
Free Cash Net Industrial Sales Revenue EBIT EBIT adj. in million units in billion euros in billion euros in billion euros Flow (IB) Liquidity in billion euros in billion euros
3.35 10.3 172.7 8.3 154.3 17.9 2.84 8.6 6.6
11.0 4.3
-15% -11% 53% -16% 504% 62%
1.4
2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
For more details on financials please see Daimler Capital Market Presentation FY 2020
Daimler AG Fixed Income Presentation | FY 2020 4 Daimler 2020 Group EBIT
in million euros +651 -1,994 +5,963 10,276 -232 -60 8,641 -2,038
6,603
Mercedes-Benz Cars & Vans: • Legal proceedings -154 • Restructuring measures -1,476 4,313 Daimler Trucks & Buses: • Restructuring measures -153 • Legal Daimler Mobility: proceedings+5,448 • Restructuring measures -159 • Restructuring measures +1,233 Reconciliation: -96 • M&A - 718
EBIT Adjustments EBIT Mercedes-Benz Daimler Daimler Reconciliation EBIT Adjustments EBIT 2019 adjusted Cars & Vans Trucks & Buses Mobility adjusted 2020 2019 2020
Daimler AG Fixed Income Presentation | FY 2020 5 Daimler 2020 Reconciliation from CFBIT to Free Cash Flow: improved cash flow steering
+2,513 -806 in million euros +21 -517 +896 9,155 8,259
7,048 • Legal proceedings +896
CFBIT CFBIT Income Interest Other Free cash flow Adjustments Free cash flow Mercedes-Benz Daimler taxes paid reconciling (industrial business) (industrial business) Cars & Vans Trucks & Buses paid* items adjusted
* includes internal tax prepayments from Daimler Mobility to the industrial business
Daimler AG Fixed Income Presentation | FY 2020 6 Daimler Net Industrial Liquidity: achieving a comfortable level of net cash
in billion euros +8.7 -8.5
+2.6 -0.4 -1.0 -0.4 +5.9 17.9 Free cash flow industrial business 11.0 FY 2020: € 8,259 million
Net industrial Earnings and Working Depreciation and Additions to Investments in Dividend Other Net industrial liquidity other cash capital impact amortization/ property, plant, and disposals of Payment (mainly liquidity 12/30/2019 flow impact impairments equipment and shareholdings Daimler AG FX effects) 12/30/2020 intangible assets
Daimler AG Fixed Income Presentation | FY 2020 7 Daimler YTD Q4 2020 development of gross industrial liquidity
Financial Services in billion euros Industrial Business 5.2 -6.6 11.3 -17.7 8.3 -8.6 11.1 0.2 29.4 27.5 -1.2 3.6 3.9
23.7 25.8
Gross Dividend FCF FCF Other ABS New Bond New FX & Gross Liquidity Payment IB DMO Debt Maturities ABS Maturities Bonds Other Liquidity 31.12.2019 31.12.2020
Note: Figures may not be additive due to rounding.
Daimler AG Fixed Income Presentation | FY 2020 8 Daimler Q4 2020 Financial flexibility over a 12-month period
in billion euros 70.0 Bridge loan facility
Other incl. Net industrial liquidity at €17.9 billion improved significantly 50.5 ABS potential Fin. Lease Commercial Gross industrial liquidity at €25.8 billion paper Bank loans Financial flexibility supported by €11 billion revolving credit facility, Credit facility which is unutilized Liquidity Daimler Mobility As of April 1, an additional €12 billion credit facility has been arranged; available on December 31: €8.8 billion (reduction due to Bonds Liquidity various bond issuances in Q2, Q3 and Q4) industrial business Account deposits Available or Maturities accessible over next liquidity 12 months
Daimler AG Fixed Income Presentation | FY 2020 9 Daimler 2020 Dividend: Proposal in line with our dividend policy
Earnings Net profit Dividend in billion euros per share proposed in euros in euros
4.0 1.35
2.7 3.39 0.9
2.22
48% 53% 50%
2019 2020 2019 2020 2019 2020
Daimler AG Fixed Income Presentation | FY 2020 10 OK AGENDA
I. DAIMLER AG REVIEW FY 2020 II. DIVISIONAL REVIEW FY 2020 III. OUTLOOK 2021 IV. PROJECT FOCUS V. FUNDING VI. SUSTAINABILITY
Fixed Income Presentation | FY 2020 11 Mercedes-Benz Cars: Highlights
Mercedes-Benz: The world’s leading luxury car brand; new sales record in China
Tripled worldwide xEV sales; met European CO2 targets for passenger cars in 2020; next steps towards “Ambition 2039”
New Mercedes-Benz strategy targeting a leading position in electric drive and car software
New S-Class introduced; Factory 56 accelerating to full capacity
Successful implementation of cost efficiency measures, rightsizing of industrial footprint
Daimler AG Fixed Income Presentation | FY 2020 12 Mercedes-Benz Cars: Business recovery faster than expected in H2-2020
Group sales of Mercedes-Benz passenger cars per month in thousand units 2019 China Europe United States 80 90 40
70 80 35
60 70 30 60 50 25 50 40 20 40 30 15 30 20 20 10 10 10 5 0 0 0 Jan 20 Dec 20 Jan 20 Dec 20 Jan 20 Dec 20
Daimler AG Fixed Income Presentation | FY 2020 13 Mercedes-Benz Cars: CO2 compliance Europe
NEDC WLTP2)
Target: 125g3) WLTP
Target: 107g NEDC1)
1) Incl. UK and Phase-In, Super Credits & Eco Innovation Credits 2) Excl. UK and Phase-In, Super Credits & Eco Innovation Credits 2019 2020 20212) 3) Target depends on fleet emission value 2020 (NEDC/WLTP) & Prognosis Prognosis fleet mix 2021
Daimler AG Fixed Income Presentation | FY 2020 14 Mercedes-Benz Cars & Vans: Indicators of change
Headcount Fixed Costs R&D Investment in pp&e in thousand employees in billion euros in billion euros in billion euros
177.2 Further improve profitability until 2025** 8.1 7.2 170.5 5.9 Fixed Cost reduction > 20% 4.9
-4% -14% -11% -17% CapEx and R&D reduction > 20%
Variable costs reduction 1% p.a.
2019* 2020 2019 2020 2019 2020 2019 2020
* adjusted figure: includes 3.8k from internal shifting from headquarter to Mercedes-Benz Cars & Vans ** compared vs. 2019 actuals
Daimler AG Fixed Income Presentation | FY 2020 15 Mercedes-Benz Cars & Vans financials: CFBIT more than tripled, demonstrating focus on cash flow
Sales Revenue EBIT adj. CFBIT adj. in million units in billion euros in billion euros in billion euros
2.82 106.9 7.9 98.6 6.8 2.46 6.2
-13% -8% 11% 308% 1.9
2019 2020 2019 2020 2019 2020 2019 2020
For more details on financials please see Daimler Capital Market Presentation FY 2020
Daimler AG Fixed Income Presentation | FY 2020 16 Mercedes-Benz Cars & Vans EBIT FY & RoS: Lower unit sales, model mix and pricing continued to develop favorably
Lower unit sales Favorable Net pricing in million euros Efficiency measures overcompensate expenses for enhanced vehicle equipment Gross profit -1.700 and higher level of depreciation Significant fixed cost reduction in all areas +381 +219 6,802 -1,630 +6,260 6,151 -1,796 +1,611 +140 5,172 +316 RoS: -220 6.9% • Restructuring -1,476 RoS: • Legal proceedings +5,432 • Legal 5.2% RoS: Proceedings -154 • Restructuring +828 RoS: 5.8% -0.1% -109
EBIT Adjustments EBIT Volume/ Foreign Industrial Selling General Research & non- Others EBIT Adjustments EBIT 2019 adjusted Structure/ exchange performance expenses administrative capitalized adjusted 2020 2019 Net pricing rates expenses developm. costs 2020
Daimler AG Fixed Income Presentation | FY 2020 17 Mercedes-Benz Cars & Vans Reconciliation from EBIT to CFBIT: continued cost and cash preservation measures
in million euros +869 7,917 +881 7,048 +1,560 -301 -7,567 +7,303 • Restructuring +301 5,172 • Legal Proceedings +568
EBIT Change in Net financial Net investments Depreciation and Other CFBIT Adjustments CFBIT 2020 working capital investments in pp&e and amortization/ 2020 adjusted intangible assets impairments 2020
Daimler AG Fixed Income Presentation | FY 2020 18 MD Daimler Trucks & Buses: Highlights
Challenging first half of the year with significant sales decrease due to Covid-19; strong comeback in second half
Incoming orders recovering fast; order backlog significantly above 2019 level
Focus on cash preservation measures incl. strict inventory management
Tight cost control and progressive execution of restructuring activities with resulting fixed cost reduction
Acceleration of electrification and autonomous driving by extending technology partnerships
Daimler AG Fixed Income Presentation | FY 2020 19 Daimler Trucks & Buses Financials: sales decline from high levels in 2019
Sales Revenue EBIT adj. CFBIT adj. in thousand units in billion euros in million euros in billion euros
521 44.4
34.7 379 2,672 2.7 2.5
-27% -22% -75% -5% 678
2019 2020 2019 2020 2019 2020 2019 2020
For more details on financials please see Daimler Capital Market Presentation FY 2020
Daimler AG Fixed Income Presentation | FY 2020 20 Daimler Trucks & Buses EBIT & RoS: Market decrease in our core regions, pricing at the level of the previous year
Gross profit -2,875 Significantly lower unit sales in all regions due to market downturns in million euros Significantly lower contribution from aftermarket due to lower demand Negative industrial performance mainly due to adjustment of warranty provisions 2,672 -2,775 Significant fixed cost reduction achieved by strict cost control and progressive execution of restructuring activities
RoS: 6.0 %
+74 678 -153 +255 525 +143 RoS: +409 RoS: 2.0 % • Restructuring -5 -95 measures -153 1.5%
EBIT Volume/ Foreign Industrial Selling General Research & non- Others EBIT Adjustments EBIT 2019 Structure/ exchange perform- expenses administrative capitalized adjusted 2020 Net pricing rates ance expenses developm. costs 2020
Daimler AG Fixed Income Presentation | FY 2020 21 Daimler Trucks & Buses: Reconciliation from EBIT to CFBIT: positive impact from a stricter working capital management
in million euros +624 2,513
+1,349 +980 -77 -888
525
EBIT Change in Net financial Net investments Depreciation and Provisions, other CFBIT 2020 working capital investments in pp&e and amortization/ 2020 intangible assets impairments
Daimler AG Fixed Income Presentation | FY 2020 22 Daimler Mobility: Highlights
Continuous high customer support during pandemic driving loyalty & retention
Positive effects from cost saving measures
Ongoing conservative risk management with strong focus on credit quality
Flattening of credit risk reserves in second half of year
Mobility services continuing progress toward profitability due to quick response to pandemic
Daimler AG Fixed Income Presentation | FY 2020 23 Daimler Mobility Financials: Decrease in new business in a challenging market environment
New Contract EBIT adj. business volume in billion euros in billion euros in billion euros
162.8 74.4 150.6 67.8 1.8 1.6
-9% -8% -13%
2019 2020 2019 2020 2019 2020
For more details on financials please see Daimler Capital Market Presentation FY 2020
Daimler AG Fixed Income Presentation | FY 2020 24 Daimler Mobility EBIT & RoE: Main impact from higher cost of credit risk
Increase of cost of credit risk due to Covid-19 in million euros Impairment of software in context of streamlining IT-architecture Fixed cost reductions in all areas
Gross profit* -490 2,140 -313 1,827 -54 --398 +61 1,595 -159 RoE: +184 1,436 15.3% RoE: -92 +67 13.1% • Your Now +405 RoE: • Restructuring RoE: • KITT -718 10.9% Measures -67 • Your Now -92 9.8%
EBIT Adjustments EBIT Foreign Cost * Volume/* Selling General Others* EBIT Adjustments EBIT 2019 adjusted exchange of Risk Margin expenses administrative adjusted 2020 2019 rates expenses 2020
* excluding FX effects
Daimler AG Fixed Income Presentation | FY 2020 25 OK AGENDA
I. DAIMLER AG REVIEW FY 2020 II. DIVISIONAL REVIEW FY 2020 III. OUTLOOK 2021 IV. PROJECT FOCUS V. FUNDING VI. SUSTAINABILITY
Daimler AG Fixed Income Presentation | FY 2020 26 Performance: Market Guidance 2021
ASSUMPTION Daimler assumes that the economic conditions in our most important markets continue to normalize and in particular that no further setbacks occur as a result of the Covid-19 pandemic. Although bottlenecks in the semiconductor industry will impact sales mainly in the first quarter it is currently anticipated that lost production volume can be compensated for by the end of the year.
Global significant increase Europe significant increase Car Markets USA significant increase China slight increase EU30 significant increase Van Markets USA significant increase North America significant increase EU30 significant increase Heavy-Duty Truck Markets Japan at prior-year level Brazil slight increase
Daimler AG Fixed Income Presentation | FY 2020 27 Performance: Daimler Group Guidance 2021
ASSUMPTION Daimler assumes that the economic conditions in our most important markets continue to normalize and in particular that no further setbacks occur as a result of the Covid-19 pandemic. Although bottlenecks in the semiconductor industry will impact sales mainly in the first quarter it is currently anticipated that lost production volume can be compensated for by the end of the year.
Daimler Group Revenue significantly above
Daimler Group EBIT significantly above
Free Cash Flow (industrial business) significantly below
Investment in PP&E at prior-year level
R&D expenditure slightly above
CO2 emission (g/km)* significantly below
* vs. the comparable figures for the previous year calculated according to WLTP (probably between 130 to 140 g/km, based on preliminary figures for fuel consumption in 2020 taking into account the statutory regulations of 2021). The Daimler Business Plan covers the full year 2021 and is based on the existing Group structure, including Daimler Trucks & Buses. The spin-off of Daimler Trucks & Buses, including significant parts of the related financial services business, will be examined before the end of 2021. Before the spin-off, we will reclassify Daimler Truck as discontinued operations. We expect this to have considerable positive effects in the second half of the year, which cannot be reliably determined at present.
Daimler AG Fixed Income Presentation | FY 2020 28 Performance: Divisional Guidance 2021
ASSUMPTION Daimler assumes that the economic conditions in our most important markets continue to normalize and in particular that no further setbacks occur as a result of the Covid-19 pandemic. Although bottlenecks in the semiconductor industry will impact sales mainly in the first quarter it is currently anticipated that lost production volume can be compensated for by the end of the year.
Cars significantly above Unit Sales Vans slightly above Trucks & Buses significantly above Mercedes-Benz Cars & Vans 8 to 10% Return on Sales Daimler Trucks & Buses 6 to 7% (adjusted*) Daimler Mobility (RoE) 12 to 13% Cash Conversion Cars & Vans 0.7 to 0.9x Rate** (adjusted) Trucks & Buses 0.8 to 1.0x
* The adjustments include material adjustments if they lead to significant effects in a reporting period. These material adjustments relate in particular to legal proceedings and related measures, restructuring measures and M&A matters. ** Adjusted Cash Flow before Interest and Taxes (CFBIT) divided by adjusted EBIT.
Daimler AG Fixed Income Presentation | FY 2020 29 OK AGENDA
I. DAIMLER AG REVIEW FY 2020 II. DIVISIONAL REVIEW FY 2020 III. OUTLOOK 2021 IV. PROJECT FOCUS V. FUNDING VI. SUSTAINABILITY
Daimler AG Fixed Income Presentation | FY 2020 30 Project Focus: We want to create two independent businesses with maximum focus Today Tomorrow
One face to the market Two separate credits
Separate ▸ Capital Structure and Rating ▸ Capital Market Access ▸ Group Funding and Liquidity Management for both groups after spin-off Schematic representation
Daimler AG Fixed Income Presentation | FY 2020 31 ProjectDaimler Focus: Truck Fixed AG majority Income skeypin -messagesoff: Intended transaction structure and details
Strong balance sheet: 18bn Euro Net Industrial liquidity end of 2020
Solid financial position for both entities at Day 1: net industrial liquidity exceeding pensions deficit
Daimler Truck with own credit ratings and own funding in the capital markets after spinoff
We expect that the Daimler Trucks capital structure will support a solid investment grade rating, target BBB+
Target rating category for Mercedes Benz remains single A
Existing bonds issued by Daimler AG or guaranteed by Daimler AG will not be transferred but remain with Daimler AG and its majority controlled subsidiaries *
Our prudent funding strategy and refinancing principles remain in place
Mercedes-Benz and Daimler Truck will be supported by their own dedicated captive financial and mobility services entities
* with the exception of local issuances in Argentina and Brazil
Daimler AG Fixed Income Presentation | FY 2020 32 Project Focus: Mercedes-Benz, the pre-eminent luxury car business
Mercedes-Benz
Leading Global “pure play” OEM with unique brand recognition automotive “Ambition 2039” amplifying clear commitment to Sustainability as strategic priority luxury brand Attractive captive financial services business supporting sales
Leading player in electric drive, car software (MBUX, MBOS) Win in a Automated driving: Dedicated partnership with NVIDIA transforming Leaner and faster to pursue dedicated car strategy environment More agile to embrace change and partners
Focus on Focus on luxury experience and key regions profitable Focus on efficiency measures to improve industrial footprint and fixed costs growth Strong balance sheet, robust liquidity
Daimler AG Fixed Income Presentation | FY 2020 33 Project Focus: Daimler Truck unlocking the full potential
Daimler Truck
Global Global market presence with market-leading brands in triad markets #1 Ready to seize opportunities in emerging markets CV player Leverage existing global platforms to turn scale into profit
Lead in Powertrain: technological lead (TCO) and strong partnerships (Fuel Cell) industry Automated driving: Dual track strategy with Torc Robotics & Waymo transformation Optimize product and service portfolio, streamline industrial footprint
Realize Europe: Execution of the initiated restructuring profit DTNA: Expansion of the leading market position and profitability potential Benefit from scale and strong partners to amortize tech investment
Daimler AG Fixed Income Presentation | FY 2020 34 Structure of the planned transaction
Separate listing of Daimler Truck
Distribution of Daimler Truck shares held by Daimler to existing Daimler shareholders
Majority in free-float, Daimler ceases control over DT but intends to retain a minority shareholding
No additional investment needed from shareholders, no proceeds for Daimler
Transaction relatively independent of capital market conditions
Daimler AG Fixed Income Presentation | FY 2020 35 DaimlerDaimler Truck Truck AG AG majority majority spin spin-off:-off Intended: Intended transaction transaction structure structure and and detailsdetails
Transfer of the majority of Daimler Truck to Daimler shareholders
True independent governance of Attractive financial profiles Prime listing for Daimler Truck Daimler Truck for both companies
Daimler Truck AG to Daimler with minority/ Spin-off of Strong Both Daimler Truck and be listed in Frankfurt Significant financial stake and Capital Mercedes-Benz with strong DAX de-consolidating Majority Stake Structures net liquidity position Company Company expected to Daimler Truck qualify for the DAX
Independent chairman Ambitious Separation will enable Independent realization of full profit Listing Listing targeted Daimler supervisory board financial Governance potential Timing before year-end 2021 representation in line with targets intended deconsolidation
Daimler AG Fixed Income Presentation | FY 2020 36 The listing of Daimler Truck is planned to be complete by year-end 2021
Decision & Extraordinary Listing of Announcement of Shareholder Meeting Daimler Truck Project Focus planned targeted
February 3, 2021 May 2021 Fall 2021 End of 2021
Introductory Capital Market Capital Market Day Truck Event for Spin-off planned planned
Daimler AG Fixed Income Presentation | FY 2020 37 OK AGENDA
I. DAIMLER AG REVIEW FY 2020 II. DIVISIONAL REVIEW FY 2020 III. OUTLOOK 2021 IV. PROJECT FOCUS V. FUNDING VI. SUSTAINABILITY
Fixed Income Presentation | FY 2020 38 Our funding strategy is built on strict principles
No dependence from single markets, instruments, banks or investors Targeting Financial Diversification of funding sources and instruments: Bank Loans, Bonds, ABS, CP, Deposits Independence No Covenants, no MAC, no asset pledges, no CSAs
Maximizing Keeping prudent amount of Cash and Committed Credit Facility Financial New markets funded via global and local banks first Flexibility Early capital market funding to save credit capacity in growth regions
Liquidity matched funding Stringent Global Interest rate matched funding Funding Policy Currency matched funding Country matched funding
Daimler AG Fixed Income Presentation | FY 2020 39 Portfolio of Daimler Mobility on a high level
Wholesale
163 Loan 154 150 140 133 Lease 117
99 Trucks & Buses about 20% of portfolio Trucks 84 Others 80 74 72 71 72 68 Portfolio 62 (in bn €) 58 Buses 48 38 41 Vans Acquisitions 34 (in bn €)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Passengers Cars
Daimler AG Fixed Income Presentation | FY 2020 40 Daimler Mobility business model based on stringent credit management and solid refinancing
Net credit losses as a percentage of portfolio, subject to credit risk Net credit losses still on a very favorable level, not showing any severe CoViD-19 impact
Based on the potential macroeconomic cool-down, we expect that delinquencies and in the mid-term credit losses might increase
External Liabilities IB (Target duration 5y) Internal IC-loans to FS (Duration ~2y) The matched-funded approach ensures that liquidity risks are managed properly
External liabilities of Daimler Group have a longer duration due to capital market refinancing than internal allocation to FS via IC-loans
Daimler AG Fixed Income Presentation | FY 2020 41 Maturity profile further lengthened in billions of € as of 31 December 2020
Issued in 2020 Maturities 17.8 0.5
14.5 1.4 11.2
3.1 17.3 7.4 0.2 13.1 5.9 2.3 4.3 3.5 8.1 7.2 1.3 0.1 3.1 3.0 2.0 2.3 3.6 2.2 1.3 3.0 3.4 0.5 0.9 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2034 2037
Note: Figures may not be additive due to rounding.
Daimler AG Fixed Income Presentation | FY 2020 42 Financing liabilities show a diversified funding mix
in billions of € Fin. Lease (IFRS 16) Acc. Deposits Other (ex Fin. Lease) Bank Loans Com. Paper Bonds ABS
161.8 4.2 145.0 0.0 145.8 3.7 1.8 2.0 13.9 1.3 0.0 3.3 127.4 12.5 2.8 13.1 16.6 0.7 0.0 117.6 2.0 11.8 1.0 11.0 1.0 14.5 10.6 1.7 11.5 39.8 11.6 39.4 32.4 34.6 29.7
85.6 76.6 76.7 63.0 67.3
2016 2017 2018 2019 Q4 2020
Note: Figures may not be additive due to rounding.
Daimler AG Fixed Income Presentation | FY 2020 43 To ensure sustainable portfolio growth, we mitigate risk and volatility through a balanced mix of funding instruments
Strengthen our global footprint Capital Markets and use market opportunities Other Fin. Lease (IFRS 16) 1% 3% Deepen our excellent Bank Loans bank relationships Bank loans Bank loans 20% 22% Globally expand our highly ABS competitive ABS issuances Q4 Maintain well controllable Target 50% Cap Market 2020 53% Cap Market Deposit liquidity reserve Deposits 10% 30% 11% ABS & Deposits ABS RATING INDEPENDENT Total: EUR 146 bn
Daimler AG Fixed Income Presentation | FY 2020 44 Consequent development to global capital market funding - diversification will continue
Canada EMTN Domestic Bonds Euro Market ABS EMTN Program Korea CP Italian domestic Domestic Bond Prog. Hungarian domestic EUR CP Program ABS China USA Japan Domestic Bonds 144a / RegS PP Turkey ABS Domestic CP CP Domestic Bonds EMTN ABS Thailand Mexico India Domestic Bond Prog. Domestic Issuance Prog. Domestic Bonds Domestic CP Malaysia Domestic Bond Prog. Brazil Letras Financeiras
Australia South Africa EMTN Argentina Domestic Debt Issuance Prog. Domestic CP Prog. Domestic Debt ABS Issuance Prog.
Daimler AG Fixed Income Presentation | FY 2020 45 Funding base further diversified to a true global set-up
in billions of €
145.8 3% 1% 11% 0% Currency Volume % 10% EUR 39,4 52% USD 22,1 29% CNY 3,3 4% GBP 2,8 4% 22% CAD 2,1 3% Currency Volume % ZAR 1,4 2% EUR 19,5 66% JPY 0,6 1% USD 7,8 27% AUD 0,6 1% Fin. Lease (IFRS 16) 0% ZAR 0,8 3% KRW 0,6 1% Other 57.3 2% JPY 0,6 2% NOK 0,6 1% Com. Paper 0% 22% GBP 0,3 1% MXN 0,5 1% ABS 2% CHF 0,2 1% Other (BRL, CHF 1,7 2% Acc. Deposits 53% 23% Other (AUD, 0,2 1% THB, MYR, HKD, Bank Loans MXN, ARS) HUF, INR, SEK, TRY) Total 29 Total 77 Bonds 51% Currencies 9 Currencies 20
Q4 2009 Q4 2020
Note: Figures may not be additive due to rounding
Daimler AG Fixed Income Presentation | FY 2020 46 Daimler‘s financial KPIs set to support a strong rating
Agency Long-term Outlook Short-term
Standard & Poor's: BBB+ Stable A-2
Moody’s: A3 Negative P-2
Current Ratings: Fitch: BBB+ Stable F1
DBRS: BBB (high) Stable R-2 (high)
Scope: A Stable S-1
Daimler AG Fixed Income Presentation | FY 2020 47 In low interest rate environment high contributions stabilized funded ratio
14 11.5 12 11.0 9.8 10 8.6 8.4 7.8
bn 7.4 8 6.2 6 4.5 Significant contributions of EUR in EURin 3.4 3.7 4 3.1 2.4 2.2 2.0 1.9 1.1 17.3bn since 2010 support the 2 0.3 0.5 0.7 0.7 0.8 0 solid capital structure 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Pension Provision Daimler Group Contributions
+9% 100 9 90 86% 80% 8 77% 80 73% 75% 72% 7 Even though German Discount 66% 70 63% 63% 59% 62% 6 Rate decreased significantly since 60 5 50 2010, Funded Ratio is at a solid
Ratio Ratio % in 5.00% 4.70% 3.40% 4 40 3.10% 2.60% 3 level of 72% 30 1.90% 1.90% 1.80% Funded 1.80% 2 Discount Rate % in 20 1.02% 10 0.43% 1 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Discount Rate Germany (in %, rhs) Funded Ratio Daimler Group (in %, lhs)
Daimler AG Fixed Income Presentation | FY 2020 48 OK AGENDA
I. DAIMLER AG REVIEW FY 2020 II. DIVISIONAL REVIEW FY 2020 III. OUTLOOK 2021 IV. PROJECT FOCUS V. FUNDING VI. SUSTAINABILITY
Daimler AG Fixed Income Presentation | FY 2020 49 Daimler Group 6 + 3 sustainability topics as an integral part
Climate protection Resource Livable & air quality conservation cities
Traffic safety Data responsibility Human rights
Integrity People Partnerships
Daimler AG Fixed Income Presentation | FY 2020 50 CO2 neutrality at Mercedes-Benz Cars 2039 We aim to achieve CO2 2030 neutrality for our new Our goal is to have plug-in passenger car fleet by 2025 hybrids or all-electric vehicles 2039. Depending on how conditions account for more than 50 2022 develop, we plan to have all- percent of our car sales by 2030. We intend to offer several electric vehicles account for up electric model variants in all to 25 percent of unit sales by segments of Mercedes-Benz 2025. Cars by 2022.
Scientifically verified by SBTI:
CO2 goals in line with the Paris Agreement
Daimler AG Fixed Income Presentation | FY 2020 51 Daimler Trucks & Buses: Making CO2-neutral transport a reality
2039 Ambition: By 2039, new vehicles in Europe,
Japan and North America will be CO2 Second half neutral in operation (tank-to-wheel). of 2020s Hydrogen-based series- production vehicles in the second half of the decade. 2022 Battery-electric series- production vehicles in all core regions by 2022.
Daimler AG Fixed Income Presentation | FY 2020 52 Daimler Mobility und Mercedes-Benz Bank: CO2-neutral locations and administration
2022
Globally CO2-neutral locations and administration. 2020 Sustainability – firmly anchored in our corporate values.
Daimler AG Fixed Income Presentation | FY 2020 53 CO2 neutrality at Mercedes-Benz Cars 2019 2020 2021 2022 Stay tuned for more EQC EQV Compacts EV Purpose World‘s first fully-electric e.g. EQA, EQB SUVs Frontrunner. premium MVP by Mercedes. EV Purpose eVito Tourer Next generation eVito mid-size van launched Limousines in 2018. smart from China e.g. EQS eSprintersmart EQ fortwo/forfour eActros eEconic Start of series production. All-electric options since 2007. Start of series production. Start of series production. eCitaro With next generation of batteries. First launched in 2018. By 2022 with Fuel Cell as Range Extender.
Daimler AG Fixed Income Presentation | FY 2020 54 Customers may decide for electric or hydrogen based on their specific needs:
GenH2 Truck • Based on fuel cell and hydrogen • Range up to1000km • First customer testing in 2023 • Series production in second half of 2020s
Battery Electric Truck: Hydrogen Truck: - Lower Weight, - Heavy Weight, - Shorter Distances - Long Distance
Daimler AG Fixed Income Presentation | FY 2020 55 … and our aim to achieve CO2-neutral production
By 2022: CO2-neutral production at our Mercedes-Benz Car and Van plants worldwide*
By 2022: CO2-neutral production at our European plants of Daimler Trucks & Buses*
By 2030: Fifty percent CO2 emissions reductions from production operations SBTI
By 2039: CO2-neutral production at all of our plants and in all of our business units worldwide
“Factory 56” in Sindelfingen
* In Germany, the green power supply is ensured not only for the production sites: starting in 2022, all German locations of Daimler AG, Mercedes-Benz AG, Daimler Trucks AG and Daimler Mobility AG will obtain green power generated entirely from renewable energy sources, making it free of CO2.
Daimler AG Fixed Income Presentation | FY 2020 56 Committed investments as part of our electrification strategy
About €10 billion to expand our €10 bn fleet of electric vehicles.
More than €1 billion to expand our €1 bn battery production.
Buying battery cells for more than €20 billion in order to systematically promote our Group’s entry €20 bn into an electrically driven future.
Daimler AG Fixed Income Presentation | FY 2020 57 Our strategy is guided by international framework agreements,…
The ten principles of the UN Global Compact provide a fundamental guide for our business operations.
Our internal principles and policies are founded on this international frame of reference and other international principles.
Our goal in this process is to support the UN Sustainable Development Goals with our work processes and to cooperatively develop approaches to solutions.
Daimler AG Fixed Income Presentation | FY 2020 58 … our corporate principles and integrity Doing the right thing by living our values
We adhere to internal and external rules, we act according to our corporate principles and we listen to our inner compass.
We have incorporated integrity-related issues in our culture and our compliance management system. Our performance is measured by the integrity indicator which is part of the non-financial management compensation.
Our five We are profitable and are We act responsibly We address issues Our web-based training corporate committed to people and the and respect the rules openly and stand for modules on integrity & environment transparency principles: compliance are mandatory the foundation of and have to be performed all our actions successfully on a regular basis.
Fairness and respect are the We practice diversity foundation of our collaboration
Daimler AG Fixed Income Presentation | FY 2020 59 Daimler’s green finance framework is part of our sustainable business strategy
Project Management of Use of proceeds evaluation and Reporting External review proceeds selection
Daimler’s green finance framework is developed to be in line with both the ICMA Green Bond Principles, as well as LMA and APLMA Green Loan Principles. It is Daimler’s intention to follow best practises as market standards develop and as the EU Taxonomy and the EU Green Bond Standard enter into force.
Daimler AG Fixed Income Presentation | FY 2020 60 Second Opinion by leading provider of independent reviews of green bonds
SHADES OF GREEN CICERO Green Daimler’s green finance framework was rated by CICERO provides second as Dark Green. Dark Green is allocated to projects and opinions on institutions’ solutions that correspond to the long-term vision of a low frameworks and guidance for carbon and climate resilient future. assessing and selecting eligible projects for green finance investments. GOVERNANCE PROCEDURES CICERO Shades of Green is internationally CICERO Shades of Green finds the governance procedures recognized as a leading provider of in Daimler’s framework to be Excellent. independent reviews of green bonds, since the market’s GREEN BOND and GREEN LOAN PRINCIPLES inception in 2008. CICERO confirms that Daimler’s green finance framework is found in alignment with the green bond and green loans principles.
Daimler AG Fixed Income Presentation | FY 2020 61 DAIMLER FY 2020 DISCLAIMER
This document contains forward-looking statements that reflect our current views about future events. The words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” “may,” ”can,” “could,” “plan,” “project,” “should” and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a decline of demand in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, pandemics, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activities; changes in currency exchange rates, customs and foreign trade provisions; a shift in consumer preferences towards smaller, lower-margin vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; price increases for fuel or raw materials; disruption of production due to shortages of materials, labor strikes or supplier insolvencies; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization measures; the business outlook for companies in which we hold a significant equity interest; 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 government investigations or of investigations requested by governments and the conclusion of pending or threatened future legal proceedings; and other risks and uncertainties, some of which are described under the heading “Risk and Opportunity Report” in the current Annual Report. If any of these risks and uncertainties materializes or if the assumptions underlying any of our forward-looking statements prove to be incorrect, the actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication.
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