Automotive   |   Mercedes-Benz Group AG
DAIMLER AG  
CORPORATE  
PRESENTATION  
February 2020  
DAIMLER AG  
KEY MESSAGES  
Mercedes-Benz safeguarded No.1 position in luxury  
segment, sales recovery in second half of year accomplished  
Underlying performance in line with 2019 Capital Market Day  
outlook; material adjustments booked  
Net Industrial Liquidity: target of >10 bn. eur
Strategy set for carbon-neutral mobility & tra
Measures initiated to reduce cost and increa
focus on Free Cash Flow and capital allocati
2020 outlook confirmed  
2
DAIMLER AG  
KEY FIGURES  
2
019  
172.7  
2
019  
018  
3.34  
REVENUE  
SALES  
in billion euros  
2018  
167.4  
in million units  
2
3.35  
EBIT  
2
019 4.3  
EBIT  
2
019  
10.3  
2.7  
adjusted  
in billion euros  
2018  
11.1  
2.9  
in billion euros  
FREE  
CASH FLOW  
FREE  
1.4  
2
019  
019  
2
2
019  
018  
2
CASH FLOW  
2
018  
adjusted  
in billion euros  
in billion euros  
3
I.  
Review 2019  
4
MERCEDES-BENZ CARS  
HIGHLIGHTS 2019  
Mercedes-Benz leading luxury car brand;  
first time ever No.1 in premium segment in C
Ramping-up supply of high-demand vehicles;  
significantly reduced inventories in Q4  
Committed to carbon-neutral mobility: “Ambi
all-new EQC introduced to the market, batter
smart: all-electric; new business model for next-  
generation products - cooperation with Geely  
Cash generation and performance improvement:  
program in place, targets identified, measures  
initiated, plan established to cap funding  
Mercedes-Benz EQC 400 4MATIC: combined power consumption:  
0.8 - 19.7 kWh/100 km; combined CO emissions: 0 g/km  
2
5
2
MERCEDES-BENZ CARS  
FINANCIALS  
2
2
019  
018  
2.39  
2.38  
SALES  
in million units  
2
2
019  
018  
93.9  
REVENUE  
93.1  
in billion euros  
2
2018  
019  
3.4  
EBIT  
in billion euros  
7.2  
EBIT  
2
019  
5.8  
adjusted  
in billion euros  
6
Net pricing  
MERCEDES-BENZ CARS  
EBIT & RoS  
Foreign exchange rates  
Higher expenses for new technologies and product costs  
Valuation Aston Martin  
Governmental and legal proceedings and measures relating to diesel vehicles  
Expenses in connection with Takata airbags  
in million euros  
+318  
-667  
7
,216  
-1,002  
RoS:  
.8%  
-2,506  
2,482  
5,841  
7
RoS:  
6
.2%  
3,359  
RoS:  
.6%  
3
EBIT 2018  
Volume/  
Structure/  
Net pricing  
Foreign  
exchange  
rates  
Other cost  
changes  
Disclosed  
items  
EBIT 2019  
Adjustments  
EBIT 2019  
adjusted  
7
MERCEDES-BENZ VANS  
HIGHLIGHTS 2019  
Continued sales growth to new record level  
New V-Class introduced and all-new EQV presented;  
series production of eSprinter started; development  
of new electric product in small-van segment  
Industrial situation stabilized  
Efficiency measures initiated  
Streamlining product portfolio: End of production X-Class  
Financial performance impacted by material adjustments  
Mercedes-Benz EQV 300: combined power consumption: 27.0 kWh/100 km;  
8
combined CO emissions: 0 g/km, provisional figures  
2
MERCEDES-BENZ VANS  
FINANCIALS  
2
2
019  
018  
438  
421  
SALES  
in thousand units  
2
019  
018  
14.8  
13.6  
REVENUE  
in billion euros  
2
-
3.1  
2019  
2018  
EBIT  
in billion euros  
0.3  
EBIT  
2
019 0.3  
adjusted  
in billion euros  
9
Higher unit sales  
Model mix  
MERCEDES-BENZ VANS  
EBIT & RoS  
Foreign exchange rates  
Higher expenses for new products and product-related cost  
Governmental and legal proceedings and measures relating to diesel vehicles  
Product portfolio review and prioritization  
Expenses in connection with Takata airbags  
in million euros  
+82  
-122  
312  
3,369  
284  
-33  
-3,324  
RoS:  
.3%  
RoS:  
1.9%  
2
RoS:  
-
20.8%  
-3,085  
EBIT 2018  
Volume/  
Structure/  
Net pricing  
Foreign  
exchange  
rates  
Other cost  
changes  
Disclosed  
items  
EBIT 2019  
Adjustments  
EBIT 2019  
adjusted  
10  
DAIMLER TRUCKS  
HIGHLIGHTS 2019  
Daimler Trucks world’s leading truck manufacturer  
Strong performance in NAFTA despite softening  
market in Q4/2019  
Launch of new Actros,“Truck of the year”  
EU market weakened faster than expected in Q4/2019;  
first effects from efficiency programs at MB Trucks EU  
Goal of carbon-neutral transport set;  
electric trucks of all classes are tested in customer use  
Start of development and testing of fully  
autonomous trucks on public roads in the U.S.  
11  
DAIMLER TRUCKS  
FINANCIALS  
2
019  
018  
489  
517  
SALES  
in thousand units  
2
2
019  
40.2  
38.3  
REVENUE  
in billion euros  
2018  
2
019  
2.5  
EBIT  
in billion euros  
2018  
2.8  
12  
Higher unit sales in NAFTA region supported by positive foreign exchange rates  
DAIMLER TRUCKS  
EBIT & RoS  
Lower unit sales especially in the EU30 and Asia region  
Valuation adjustments for used trucks  
Higher expenses for new technologies and capacity adjustments  
in million euros  
+192  
-434  
2,753  
-48  
2
,463  
RoS:  
.2%  
7
RoS:  
.1%  
6
EBIT 2018  
Volume/  
Structure/  
Net pricing  
Foreign  
exchange  
rates  
Other cost  
changes  
EBIT 2019  
13  
DAIMLER BUSES  
HIGHLIGHTS 2019  
Daimler Buses continues to be  
industry benchmark in profitability  
Maintained leading position  
in our core markets  
Serving high demand for  
our electric city bus eCitaro  
Delivered on target margin;  
continued efficiency effort  
14  
DAIMLER BUSES  
FINANCIALS  
2
019  
018  
33  
31  
SALES  
in thousand units  
2
2
019  
4.7  
4.5  
REVENUE  
in billion euros  
2018  
2
019  
283  
265  
EBIT  
in million euros  
2018  
15  
DAIMLER BUSES  
EBIT & RoS  
Higher unit sales  
in million euros  
Foreign exchange rates  
Lower capitalization of development costs  
+41  
-81  
+58  
2
83  
2
65  
RoS:  
.0%  
RoS:  
.9%  
6
5
EBIT 2018  
Volume/  
Structure/  
Net pricing  
Foreign  
exchange  
rates  
Other cost  
changes  
EBIT 2019  
16  
DAIMLER MOBILITY  
HIGHLIGHTS 2019  
Continued strong support of industrial business:  
Financing about half of new vehicle sales  
Prudent risk management  
Maintained attractive returns despite higher  
equity demands due to regulatory requirements  
Start of YOUR NOW joint ventures  
and prioritization of mobility services  
Driving efficiency and digitalization  
17  
DAIMLER MOBILITY  
FINANCIALS  
NEW  
2
019  
74.4  
BUSINESS  
2018  
71.9  
in billion euros  
CONTRACT  
2
2
019  
018  
162.8  
154.1  
VOLUME  
in billion euros  
2
019  
2.1  
EBIT  
in billion euros  
2018  
1.4  
EBIT  
2
019  
1.8  
adjusted  
in billion euros  
18  
Higher contract volume  
Settlement of the Toll Collect arbitration proceedings in 2018  
DAIMLER MOBILITY  
EBIT & RoE  
Normalization of cost of risk  
Merger of mobility services of Daimler and BMW  
Realignment of the YOUR NOW group  
in million euros  
+731  
2,140  
313  
RoE:  
15.3%  
1
,827  
+301  
-150  
+50  
-176  
RoE:  
13.1%  
1,384  
RoE:  
1
1.1%  
EBIT 2018  
Volume/  
Margin  
Cost of  
risk  
Foreign  
exchange  
rates  
Other  
changes  
Disclosed  
items  
EBIT 2019  
Adjustments  
EBIT 2019  
adjusted  
19  
DAIMLER ParentCo.  
HIGHLIGHTS & ACTIONS 2019  
New group structure established  
Role of ParentCo. redefined: focus on governance,  
capital allocation & access to financial market  
Streamlining initiated, reduction of administrative  
cost and staff in 2019 vs. 2018  
20  
DAIMLER 2019  
GROUP FINANCIALS  
NET  
2
2
019 4.3  
2019 2.7  
EBIT  
PROFIT  
in billion euros  
11.1  
2018  
7.6  
018  
in billion euros  
NET  
INDUSTRIAL  
FREE  
2
2
019  
018  
1.4  
2
019  
11.0*  
CASH FLOW  
2.9  
2018  
16.3  
LIQUIDITY  
in billion euros  
in billion euros  
*
-3.2 bn. € resulting from initial application of IFRS 16  
21  
DAIMLER 2019  
GROUP EBIT  
in million euros  
+
410  
-556  
11,132  
-
1,550  
5,963  
10,292  
Cars  
Vans  
Trucks  
Buses  
+318  
+82  
-48  
Cars  
Vans  
-667  
-122  
+130  
-5,262  
+25  
Trucks +192  
Buses +41  
+58  
Cars -1,002  
Vans -33  
Trucks -434  
Buses -81  
4,329  
EBIT 2018  
Volume/  
Structure/  
Net pricing  
Foreign  
exchange  
rates  
Other cost  
changes  
Daimler  
Mobility  
Reconciliation Disclosed  
items  
EBIT 2019 Adjustments EBIT 2019  
adjusted  
22  
DAIMLER 2019  
ADJUSTMENTS IN GROUP EBIT  
in million euros  
23  
DAIMLER 2019  
NET INDUSTRIAL LIQUIDITY  
Free Cash Flow industrial business  
FY 2019: €1.4 billion  
in billion euros  
+7.6  
-10.6  
+7.1  
-2.1  
16.3  
-3.2  
-0.6  
-3.5  
13.1  
11.0  
Net industrial  
liquidity  
Effects from  
initial application  
of IFRS 16  
Net industrial  
liquidity  
1/1/2019  
Earnings and  
other cash  
flow impact  
Working  
capital impact  
Depreciation and  
amortization/  
impairments  
Additions to  
property, plant, and disposals of  
equipment and  
Investments in  
Dividend  
payment  
Daimler AG  
Net industrial  
liquidity  
12/31/2019  
12/31/2018  
shareholdings  
intangible assets  
24  
NET PROFIT  
2019 2.7  
2018  
in billion euros  
7.6  
EARNINGS  
2
2
019  
018  
2.22  
PER SHARE  
6.78  
3.25  
in euros  
2
018  
2
019  
0.90  
DIVIDEND  
proposed in euros  
2018  
25  
26  
Key assumptions  
FX headwinds; no additional tariffs, no impact from Brexit;  
moderate GDP growth; no major political and economic crisis;  
No major Corona virus impact, stable penetration rate, interest  
rate & regulatory environment; sales in line with luxury  
segment; significant truck market slowdown US/EMEA  
2
020 OUTLOOK  
DIVISIONS  
Sales  
Cars  
Slight decrease  
Slight decrease  
Slight decrease  
Slight increase  
Vans  
Trucks  
Buses  
Return on Sales (adjusted*)  
Mercedes-Benz Cars & Vans  
Daimler Trucks & Buses  
Daimler Mobility (RoE)  
Cash Conversion Rate** (adjusted)  
Cars & Vans  
4 to 5%  
5%  
12%  
0.7 to 0.9x  
0.8 to 1.0x  
Trucks & Buses  
*
*
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.  
Mercedes-AMG GT 63 S 4MATIC+: combined fuel consumption 11.3 l/100 km,  
27  
combined CO emissions 257 g/km  
2
2
020 OUTLOOK  
GROUP  
Daimler Group EBIT  
Free Cash Flow (industrial business)  
Investment in PP&E and R&D expenditure  
Significant increase  
Significant increase*  
At prior-year level  
*
excluding possible expenses relating to legal and governmental proceedings  
28  
III. 2020 Agenda  
1
2
3
4
. Business performance  
. Electrification  
. Digitalization  
. Leadership  
29  
1
. BUSINESS PERFORMANCE  
CASH & COST MEASURES  
Total investment in 2020 capped at 2019 level  
Aggressive material cost savings targets,  
e.g. cumulative RoS effect of 3% at Cars by 2022;  
2020 target on track  
Streamline product portfolio,  
e.g. end of production X-Class in May  
Variable cost reduction, e.g. 250 million euros at MB  
Trucks Europe by 2022; significant progress in 2020  
30  
1
. BUSINESS PERFORMANCE  
PERSONNEL COST REDUCTION  
1.4 billion euros savings by 2022; headcount  
targets have been defined in each division;  
management positions to be reduced by 10%  
Measures agreed upon with social partners:  
termination offers, early retirement offers, more  
appealing part-time, reduction of working hours  
Additional measures: restrictive re-staffing for  
fluctuation, reduction of temporary work  
and 40-hour contracts  
31  
2. ELECTRIFICATION  
ROADMAP EU CO COMPLIANCE  
2
CO g/km, M1 fleet (Cars & Vans), NEDC  
2
~
137  
2019  
xEV, 48V  
&
portfolio  
Technical  
prognosis  
2020  
Super  
Credits  
Phase-In  
Outlook  
2020  
Target  
2020  
Mercedes-Benz EQC 400 4MATIC: combined power consumption:  
0.8 - 19.7 kWh/100 km; combined CO emissions: 0 g/km  
32  
2
2
2. ELECTRIFICATION  
EXPANDING xEV PORTFOLIO  
Ramp-up of EQC production to meet high demand;  
smart from now on EV only; market launch EQV  
this summer; world premiere EQA later this year.  
More than 20 Plug-In hybrid variants by 2020;  
comprehensive roll-out of 48V technology  
Ramping-up battery production on track:  
9
factories in 7 locations on 3 continents  
xEV share more than quadrupling in 2020 (2 to 9%);  
sales of 48V vehicles more than doubling  
33  
3. DIGITALIZATION  
WE MAKE OUR CLAIM IN  
THE DIGITAL REALM  
Rollout of latest MBUX system across entire  
fleet. New S-Class will raise the bar also in  
connectivity  
Thinking the car inside out:  
Concept defined for software-driven architecture  
Development of comprehensive operating  
system underway  
Growing importance of software and electronics  
supporting scale at Daimler Trucks  
34  
4. LEADERSHIP  
DRIVING TRANSFORMATION  
We continue to drive cultural change across  
Daimler with Leadership 20X  
In line with new group structure we push  
empowerment, transparency & accountability  
Stronger focus on performance culture  
also reflected in cash flow component in  
management compensation  
35  
36  
IV.  
Appendix  
37  
DAIMLER 2019  
UNIT SALES BY DIVISION  
in thousand units  
2
018  
2019  
% change  
-0  
Daimler Group  
of which  
3,352.4  
3,345.0  
Mercedes-Benz Cars  
2,382.8  
421.4  
517.3  
30.9  
2,385.4  
438.4  
488.5  
32.6  
+0  
+4  
-6  
Mercedes-Benz Vans  
Daimler Trucks  
Daimler Buses  
+6  
38  
DAIMLER 2019  
Rin bEillioVn euErosNUE BY DIVISION  
2
018  
2019  
% change  
+3  
Daimler Group  
of which  
167.4  
172.7  
Mercedes-Benz Cars  
93.1  
13.6  
38.3  
4.5  
93.9  
14.8  
40.2  
4.7  
+1  
+9  
+5  
+5  
+9  
Mercedes-Benz Vans  
Daimler Trucks  
Daimler Buses  
Daimler Mobility  
26.3  
28.6  
39  
DAIMLER 2019  
REVENUE BY REGION  
in billion euros  
2
018  
2019  
% change  
+3  
Daimler Group  
of which  
167.4  
172.7  
Europe  
68.5  
24.8  
48.0  
41.2  
40.6  
19.8  
10.3  
69.5  
26.3  
52.2  
45.4  
40.7  
19.0  
10.4  
+2  
+6  
of which Germany  
NAFTA  
+9  
+10  
+0  
-4  
of which United States  
Asia  
of which China*  
Other markets  
+1  
*
excluding revenue of not fully consolidated companies  
40  
DAIMLER 2019  
EBIT BY DIVISION  
EBIT in million euros; RoS/RoE in %  
2
018  
2019  
EBIT  
RoS/RoE*  
6.9  
EBIT  
RoS/RoE*  
Daimler Group  
of which  
11,132  
4,329  
1.5  
Mercedes-Benz Cars  
7,216  
312  
7.8  
2.3  
7.2  
5.9  
11.1  
3,359  
-3,085  
2,463  
283  
3.6  
-20.8  
6.1  
Mercedes-Benz Vans  
Daimler Trucks  
Daimler Buses  
2,753  
265  
6.0  
Daimler Mobility  
Reconciliation  
1,384  
-798  
2,140  
-831  
15.3  
*
Return on sales for automotive business, return on equity for Daimler Mobility; Daimler Group excluding Daimler Mobility  
41  
DAIMLER 2019  
EBIT BY DIVISION  
EBIT in million euros; RoS/RoE in %  
Q4 2018  
RoS/RoE*  
Q4 2019  
RoS/RoE*  
EBIT  
EBIT  
388  
Daimler Group  
of which  
2,669  
5.8  
0.8  
Mercedes-Benz Cars  
1,883  
81  
7.3  
2.0  
6.8  
8.6  
12.0  
1,310  
-1,050  
382  
4.9  
-24.5  
3.9  
8.2  
2.4  
Mercedes-Benz Vans  
Daimler Trucks  
Daimler Buses  
710  
132  
378  
-515  
119  
Daimler Mobility  
Reconciliation  
87  
-460  
*
Return on sales for automotive business, return on equity for Daimler Mobility; Daimler Group excluding Daimler Mobility  
42  
DAIMLER 2019  
Rin mEillioCn eOurosNCILIATION OF EBIT REPORTED TO EBIT ADJUSTED  
Mercedes- Mercedes-  
Benz Cars Benz Vans  
Daimler  
Trucks  
Daimler  
Buses  
Daimler  
Mobility  
Reconcil-  
iation  
Daimler  
Group  
EBIT as reported 2019  
3,359  
-3,085  
2,541  
2,463  
283  
2,140  
-831  
425  
4,329  
5,448  
Legal proceedings and related  
measures, as well as Takata  
2,482  
Restructuring measures  
M&A transactions  
828  
405  
1,233  
-718  
-718  
EBIT adjusted 2019  
5,841  
284  
2,463  
283  
1,827  
-406  
10,292  
43  
DAIMLER 2019  
Kin biEllionYeurBos ALANCE SHEET AND FINANCIAL FIGURES  
Dec. 31, 2018  
Dec. 31, 2019  
Daimler Group  
Equity ratio  
22.2%  
25.4  
-6.2  
20.5%  
27.5  
-8.4  
Gross liquidity  
Funded status of pension obligations  
Funding ratio  
80%  
77%*  
Industrial business  
Equity ratio  
42.8%  
16.3  
2.9  
36.7%  
11.0  
1.4  
Net liquidity  
Free cash flow (January-December)  
*
mainly driven by a reduction of discount rates  
44  
DAIMLER 2019  
Fin bIillNion eAuroNs CIAL FLEXIBILITY OVER A 12-MONTH PERIOD  
6
0.9  
5
5.7  
The financial flexibility provides support to mitigate risk  
and volatility through a balanced mix of funding  
instruments and clear principles  
Other, incl.  
finance lease  
ABS  
potential  
Commercial  
paper  
Daimler follows a financial management to safeguard our  
A-rating and thus our attractive refinancing conditions  
Bank loans  
Bonds  
Credit  
facility  
Liquidity  
Daimler  
Mobility  
A high financial flexibility is a key support to our A-Rating  
Liquidity  
industrial  
business  
The current liquidity position reflects the volatile market  
environment, the currently required high investments for  
our future business model and the required financial  
flexibility for our business  
Account  
deposits  
Available or Maturities  
accessible  
liquidity  
over next  
12 months  
45  
MERCEDES-BENZ CARS  
Uin thNousaInTd uniSts ALES BY SEGMENTS  
2
1
,383  
2,385  
smart  
Sports Cars  
1
07  
30  
2
8
1
9
7
90  
SUVs  
8
29  
7
5
S-Class  
E-Class  
8
4
4
18  
4
4
4
34  
4
40  
27  
C-Class  
78  
09  
5
A-/B-Class  
2
018  
2019  
46  
MERCEDES-BENZ CARS  
UNIT SALES BY REGIONS  
in thousand units  
2,383  
2,385  
3
95  
386  
Rest of world  
6
59  
657  
335  
Europe  
excl. Germany  
3
24  
27  
Germany  
3
13  
United States  
3
6
78  
694  
China  
2
018  
2019  
47  
MERCEDES-BENZ CARS  
UNIT SALES IN CHINA  
in thousand units  
imported  
locally produced  
6
94  
6
78  
6
19  
127  
1
93  
85  
4
88  
1
96  
23  
4
00  
1
71  
2
93  
150  
567  
4
4
1
47  
46  
317  
250  
1
2
014  
2015  
2016  
2017  
2018  
2019  
48  
MERCEDES-BENZ VANS  
Uin thNousaInTd uniSts ALES BY SEGMENTS  
438.4  
421.4  
2
31.5  
09.3  
Sprinter  
2
1
06.3  
08.3  
1
Vito  
6
3.9  
6
3.1  
3.8  
V-Class  
1
6.7  
1
X-Class  
2
6.3  
20.7  
Citan  
2
018  
2019  
49  
DAIMLER TRUCKS  
UNIT SALES BY REGIONS  
in thousand units  
5
17  
4
89  
3
9
3
0
Rest of world  
Asia  
1
65  
1
35  
4
3
Latin America  
NAFTA region  
3
8
1
90  
201  
8
5
80  
EU30*  
2
018  
2019  
*
European Union, Switzerland and Norway  
50  
DAIMLER TRUCKS  
INCOMING ORDERS*  
in thousand units  
589  
4
3
1
63  
399  
2
6
Rest of world  
Asia  
3
5
1
39  
256  
4
2
Latin America  
NAFTA region  
1
22  
9
2
7
0
EU30**  
2
018  
2019  
*
net order intake, adjusted for cancellations ** European Union, Switzerland and Norway  
51  
DAIMLER BUSES  
UNIT SALES BY REGIONS  
in thousand units  
32.6  
30.9  
5
.1  
.2  
Rest of world  
Latin America  
4
.7  
.9  
4
4
(
excl. Brazil and Mexico)  
1
1.4  
Brazil  
8
3
.8  
.2  
2
.6  
.3  
Mexico  
EU30*  
9
9
.3  
2
018  
2019  
*
European Union, Switzerland and Norway  
52  
DAIMLER MOBILITY  
CONTRACT VOLUME  
in billion euros  
162.8  
154.1  
3
6.0  
9.6  
Africa & Asia-Pacific  
Americas  
3
3.7  
5
5
6.1  
4
1.3  
Europe (excl. Germany)  
Germany  
3
2
8.0  
6.2  
25.9  
1
2/31/2018  
12/31/2019  
53  
DAIMLER MOBILITY  
NET CREDIT LOSSES*  
0
,89%  
0,83%  
0
,69% 0,68%  
0
,61%  
0
,50%  
0,51%  
,36%  
0
0,43%  
,34%  
0
,37%  
0,31%  
0
0,31%  
0,26%  
,24%  
0.26%  
,21%  
0
0
*
as a percentage of portfolio, subject to credit risk  
54  
DAIMLER MOBILITY  
YOUR NOW JOINT VENTURES  
1. FREE NOW & REACH NOW  
2. SHARE NOW  
3. PARK NOW & CHARGE NOW  
12/2019  
YTD  
Interactions  
5
88  
286  
41.4  
151  
33.5  
7.5  
34.4  
>4  
234*  
37.9*  
0.30  
0.04  
n/a  
in millions  
Customers**  
>
90  
in millions  
Cities**  
>
1,300  
20  
27  
>1,300*  
GMV RR***  
3.8  
in bn €  
*
For U.S. entity of PARK NOW, December 2019 figure preliminary ** Partially, data summation w/o consideration of possible redundancies *** Gross merchandise value run rate based on figures of December 2019  
55  
2020 OUTLOOK  
ASSUMPTIONS FOR AUTOMOTIVE MARKETS  
CAR MARKETS  
VAN MARKETS  
Global  
Europe  
USA  
around the prior-year level  
around the prior-year level  
slight decrease  
China  
around the prior-year level  
EU30  
USA  
around the prior-year level  
slight growth  
NAFTA region  
EU30  
significant decrease  
significant decrease  
significant decrease  
around the prior-year level  
HEAVY-DUTY  
TRUCK MARKETS  
Japan  
Brazil  
slight decrease  
slight decrease  
BUS MARKETS  
EU30  
Brazil  
56  
2020 OUTLOOK  
UNIT SALES  
Mercedes-Benz Cars  
SLIGHTLY LOWER UNIT SALES  
More than half a dozen new and upgraded vehicles  
Continuation of the electric mobility offensive  
Mercedes-Benz Vans  
SLIGHTLY LOWER UNIT SALES  
Daimler Trucks  
Daimler Buses  
SLIGHTLY LOWER UNIT SALES  
Normalization of major truck markets  
SLIGHTLY HIGHER UNIT SALES  
Maintain leadership in most important core markets  
57  
2020 OUTLOOK  
REVENUE  
REVENUE AT THE PRIOR-YEAR LEVEL  
REVENUE AT THE PRIOR-YEAR LEVEL  
Mercedes-Benz  
Cars & Vans  
Daimler  
Trucks & Buses  
SIGNIFICANT DECREASE IN REVENUE  
REVENUE AT THE PRIOR-YEAR LEVEL  
Daimler Mobility  
58  
2020 OUTLOOK  
GROUP EBIT AND DIVISIONAL ROS/ROE  
WE EXPECT GROUP EBIT FOR FY 2020 TO BE  
SIGNIFICANTLY ABOVE THE PRIOR-YEAR LEVEL  
Mercedes-Benz  
Cars & Vans  
RETURN ON SALES ADJUSTED: 4 TO 5%  
Daimler  
Trucks & Buses  
RETURN ON SALES ADJUSTED: 5%  
RETURN ON EQUITY ADJUSTED: 12%  
Daimler Mobility  
59  
2020 OUTLOOK  
CAPITAL ALLOCATION  
INVESTMENT IN PP&E  
Daimler Group  
At the prior-year level  
AND R&D EXPENDITURE  
FREE CASH FLOW  
Industrial business Significantly above prior-year level*  
CASH CONVERSION RATE  
ADJUSTED  
Cars & Vans  
0.7x to 0.9x  
0.8x to 1.0x  
Trucks & Buses  
*
excluding possible expenses relating to legal and governmental proceedings  
60  
DAIMLER 2019  
Cin bAillionPeuIroTs AL EXPENDITURE / RESEARCH AND DEVELOPMENT  
Investment in property, plant  
and equipment  
Research and development  
expenditure  
9.7  
7.5  
9.4  
7.2  
9.1  
6.9  
Actual  
018  
Actual  
2019  
Plan  
2020/2021  
average p.a.)  
Actual  
2018  
Actual  
2019  
Plan  
2020/2021  
(average p.a.)  
2
(
61  
DAIMLER 2019  
Cin bAillionPeuIroTs AL EXPENDITURE / RESEARCH AND DEVELOPMENT  
Investment in property, plant  
and equipment  
Research and development  
expenditure  
Actual  
Actual  
2019  
Plan*  
2020-2021  
Actual  
2018  
Actual  
2019  
Plan*  
2020-2021  
2
018  
Daimler Group  
7.5  
7.2  
6.9  
9.1  
9.7  
9.4  
of which  
Mercedes-Benz Cars & Vans  
6.2  
5.9  
5.7  
7.6  
1.5  
8.1  
1.7  
7.7  
1.7  
Daimler Trucks & Buses  
Daimler Mobility  
1.2  
1.1  
1.1  
0.06  
0.09  
0.07  
*
average p.a.  
62  
DAIMLER 2019  
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 and tariff regulations; 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 we describe 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.  
63  


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