Automotive   |   Mercedes-Benz Group AG
Fixed Income Presentation FY 2020  
Daimler AG  
Fixed Income Presentation | FY 2020  
1
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  
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  
Flow (IB)  
in billion euros  
Net Industrial  
Sales  
in million units  
Revenue  
in billion euros  
EBIT  
in billion euros  
EBIT adj.  
in billion euros  
Liquidity  
in billion euros  
10.3  
3.35  
172.7  
8.3  
17.9  
154.3  
8.6  
2.84  
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  
-
1,994  
+
651  
1
0,276  
+
5,963  
-
232  
-
60  
8
,641  
-
2,038  
6
,603  
Mercedes-Benz Cars & Vans:  
Legal proceedings  
Restructuring measures  
-154  
-1,476  
4
,313  
Daimler Trucks & Buses:  
Restructuring measures  
Daimler Mobility:  
Restructuring measures  
Reconciliation:  
-153  
Legal  
proceedings+5,448  
Restructuring  
measures +1,233  
-159  
-96  
M&A  
- 718  
EBIT  
Adjustments  
EBIT  
Mercedes-Benz  
Cars & Vans  
Daimler  
Trucks & Buses  
Daimler  
Mobility  
Reconciliation  
EBIT  
adjusted  
2020  
Adjustments  
EBIT  
2020  
2019  
adjusted  
019  
2
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  
+896  
9,155  
+21  
-517  
8,259  
7,048  
Legal  
proceedings +896  
CFBIT  
Mercedes-Benz  
Cars & Vans  
CFBIT  
Daimler  
Trucks & Buses  
Income  
taxes  
paid*  
Interest  
paid  
Other  
reconciling  
items  
Free cash flow  
(industrial business)  
Adjustments  
Free cash flow  
(industrial business)  
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  
-8.5  
+8.7  
-0.4  
+2.6  
-1.0  
-0.4  
17.9  
+5.9  
Free cash flow industrial business  
11.0  
FY 2020: € 8,259 million  
Net industrial  
liquidity  
Earnings and  
other cash  
flow impact  
Working  
capital impact  
Depreciation and  
amortization/  
impairments  
Additions to  
property, plant,  
equipment and  
intangible assets  
Investments in  
and disposals of  
shareholdings  
Dividend  
Payment  
Daimler AG  
Other  
(mainly  
FX effects)  
Net industrial  
liquidity  
12/30/2020  
12/30/2019  
Daimler AG  
Fixed Income Presentation | FY 2020  
7
Daimler YTD Q4 2020 development of gross industrial liquidity  
Financial Services  
Industrial Business  
in billion euros  
5.2  
-6.6  
11.3  
-17.7  
8.3  
-8.6  
11.1  
0.2  
29.4  
2
3
7.5  
.9  
-1.2  
3
.6  
2
5.8  
2
3.7  
Gross  
Liquidity  
1.12.2019  
Dividend  
Payment  
FCF  
IB  
FCF  
DMO  
Other  
Debt  
ABS  
Maturities  
New  
ABS  
Bond  
Maturities  
New  
Bonds  
FX &  
Other  
Gross  
Liquidity  
31.12.2020  
3
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  
7
0.0  
Bridge loan  
facility  
Net industrial liquidity at €17.9 billion improved significantly  
Gross industrial liquidity at €25.8 billion  
Other incl.  
Fin. Lease  
Commercial  
paper  
5
0.5  
ABS potential  
Bank loans  
Financial flexibility supported by €11 billion revolving credit facility,  
which is unutilized  
Credit facility  
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  
various bond issuances in Q2, Q3 and Q4)  
Bonds  
Liquidity  
industrial  
business  
Account  
deposits  
Maturities  
over next  
12 months  
Available or  
accessible  
liquidity  
Daimler AG  
Fixed Income Presentation | FY 2020  
9
Daimler 2020 Dividend: Proposal in line with our  
dividend policy  
Earnings  
Net profit  
in billion euros  
Dividend  
proposed in euros  
per share  
in euros  
4.0  
1.35  
2.7  
3.39  
0.9  
2.22  
53
50%  
48%  
2019  
2020  
2019  
2020  
2019  
2020  
Daimler AG  
Fixed Income Presentation | FY 2020  
10  
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 CO targets for  
2
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  
70  
60  
50  
40  
30  
20  
10  
0
90  
40  
35  
30  
25  
20  
15  
10  
5
80  
70  
60  
50  
40  
30  
20  
10  
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: CO compliance Europe  
2
NEDC  
WLTP2)  
Target:  
3)  
25g  
1
WLTP  
Target:  
07g  
1
NEDC1)  
1
)
)
Incl. UK and Phase-In, Super Credits & Eco Innovation Credits  
Excl. UK and Phase-In, Super Credits & Eco Innovation Credits  
Target depends on fleet emission value 2020 (NEDC/WLTP) &  
2
3)  
2019  
2020  
Prognosis  
20212)  
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 billion euros  
in thousand employees  
in billion euros  
in billion euros  
177.2  
Further improve profitability until 2025**  
Fixed Cost reduction > 20%  
8.1  
7.2  
170.5  
5.9  
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  
in million units  
Revenue  
in billion euros  
EBIT adj.  
in billion euros  
CFBIT adj.  
in billion euros  
106.9  
7.9  
2.82  
98.6  
6.8  
2.46  
6.2  
-13%  
-8%  
11%  
308%  
.9  
1
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  
Efficiency measures overcompensate expenses for enhanced vehicle equipment  
in million euros  
and higher level of depreciation  
Significant fixed cost reduction in all areas  
Gross profit -1.700  
+
381  
+219  
6,802 -1,630  
+
6,260 6,151  
+140  
-
1,796  
+1,611  
5
,172  
RoS:  
+
316  
-
220  
6
.9%  
Restructuring -1,476 RoS:  
Legal  
proceedings +5,432  
Restructuring +828  
Legal  
5.2%  
RoS:  
5.8%  
Proceedings  
-154  
RoS:  
-0.1%  
-
109  
EBIT  
Adjustments  
EBIT  
adjusted  
Volume/  
Structure/  
Net pricing  
Foreign  
exchange performance  
rates  
Industrial  
Selling  
General Research & non- Others  
EBIT  
adjusted  
2020  
Adjustments  
EBIT  
2020  
2019  
expenses administrative capitalized  
expenses developm. costs  
2019  
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  
7,917  
+
869  
+881  
7,048  
+1,560  
-301  
-7,567  
+7,303  
Restructuring  
Legal Proceedings  
+301  
+568  
5,172  
EBIT  
Change in  
working capital  
Net financial  
investments  
Net investments  
in pp&e and  
intangible assets  
Depreciation and  
amortization/  
impairments  
Other  
CFBIT  
2020  
Adjustments  
CFBIT  
adjusted  
2020  
2020  
Daimler AG  
Fixed Income Presentation | FY 2020  
18  
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  
in thousand units  
Revenue  
in billion euros  
EBIT adj.  
in million euros  
CFBIT adj.  
in billion euros  
44.4  
521  
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  
Significantly lower unit sales in all regions due to market downturns  
Gross profit -2,875  
Significantly lower contribution from aftermarket due to lower demand  
in million euros  
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  
5
25  
+
143  
RoS:  
+
409  
RoS:  
.5%  
2
.0 %  
Restructuring  
measures -153  
1
-
5
-95  
EBIT  
Volume/  
Structure/  
Net pricing  
Foreign  
exchange  
rates  
Industrial  
perform-  
ance  
Selling  
expenses  
General  
administrative  
expenses  
Research & non-  
capitalized  
developm. costs  
Others  
EBIT  
adjusted  
2020  
Adjustments  
EBIT  
2020  
2019  
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  
working capital  
Net financial  
investments  
Net investments  
in pp&e and  
intangible assets  
Depreciation and  
amortization/  
impairments  
Provisions, other  
CFBIT  
2020  
2020  
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  
business  
in billion euros  
Contract  
volume  
in billion euros  
EBIT adj.  
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  
Impairment of software in context of streamlining IT-architecture  
Fixed cost reductions in all areas  
in million euros  
Gross profit* -490  
2
,140  
-313  
1
,827  
-
54  
-
-398  
1
,595  
-159  
+
61  
RoE:  
5.3%  
+184  
1
,436  
-
92  
+67  
RoE:  
1
1
3.1%  
Your Now  
KITT  
+405  
-718  
RoE:  
Restructuring  
Measures  
Your Now  
RoE:  
-67  
-92  
1
0.9%  
9
.8%  
EBIT  
Adjustments  
EBIT  
Foreign  
exchange  
rates  
Cost *  
of Risk  
Volume/*  
Margin  
Selling  
expenses  
General  
administrative  
expenses  
Others*  
EBIT  
adjusted  
2020  
Adjustments  
EBIT  
2020  
2019  
adjusted  
019  
2
*
excluding FX effects  
Daimler AG  
Fixed Income Presentation | FY 2020  
25  
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  
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  
Europe  
USA  
significant increase  
significant increase  
significant increase  
slight increase  
Car Markets  
China  
EU30  
significant increase  
significant increase  
significant increase  
significant increase  
at prior-year level  
slight increase  
Van Markets  
USA  
North America  
EU30  
Heavy-Duty Truck Markets  
Japan  
Brazil  
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  
Daimler Group EBIT  
significantly above  
significantly above  
significantly below  
at prior-year level  
slightly above  
Free Cash Flow (industrial business)  
Investment in PP&E  
R&D expenditure  
CO emission (g/km)*  
significantly below  
2
*
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  
slightly above  
significantly above  
8 to 10%  
Unit Sales  
Vans  
Trucks & Buses  
Mercedes-Benz Cars & Vans  
Daimler Trucks & Buses  
Daimler Mobility (RoE)  
Cars & Vans  
Return on Sales  
6 to 7%  
(
adjusted*)  
12 to 13%  
0.7 to 0.9x  
Cash Conversion  
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  
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  
30  
Project Focus: We want to create two independent businesses with  
maximum focus  
Tomorrow  
Today  
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  
Project Focus: Fixed Income key messages  
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  
luxury brand  
“Ambition 2039” amplifying clear commitment to Sustainability as strat
Attractive captive financial services business supporting sales  
Leading player in electric drive, car software (MBUX, MBOS)  
Automated driving: Dedicated partnership with NVIDIA  
Leaner and faster to pursue dedicated car strategy  
More agile to embrace change and partners  
Win in a  
transforming  
environment  
Focus on  
profitable  
growth  
Focus on luxury experience and key regions  
Focus on efficiency measures to improve industrial footprint and fixed c
Strong balance sheet, robust liquidity  
Daimler AG  
33  
Project Focus: Daimler Truck unlocking the full potential  
Daimler Truck  
Global  
Global market presence with market-leading brands in triad markets  
Ready to seize opportunities in emerging markets  
Leverage existing global platforms to turn scale into profit  
#1  
CV player  
Lead in  
industry  
transformation  
Powertrain: technological lead (TCO) and strong partnerships (Fuel Cell)  
Automated driving: Dual track strategy with Torc Robotics & Waymo  
Optimize product and service portfolio, streamline industrial footprint  
Realize  
profit  
potential  
Europe: Execution of the initiated restructuring  
DTNA: Expansion of the leading market position and profitability  
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 o
but intends to retain a minority shar
No additional investment needed fro
shareholders, no proceeds for Daim
Transaction relatively independent  
of capital market conditions  
Fixed Inco
Daimler Truck AG majority spin-off: Intended transaction structure and  
details  
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  
be listed in Frankfurt  
Daimler with minority/  
financial stake and  
de-consolidating  
Daimler Truck  
Both Daimler Truck and  
Mercedes-Benz with strong  
net liquidity position  
Spin-off of  
Significant  
Majority Stake  
Strong  
Capital  
Structures  
DAX  
Company  
Company expected to  
qualify for the DAX  
Independent chairman  
Ambitious  
financial  
targets  
Separation will enable  
realization of full profit  
potential  
Independent  
Governance  
Listing  
Timing  
Listing targeted  
before year-end 2021  
Daimler supervisory board  
representation in line with  
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 &  
Announcement of  
Project Focus  
Extraordinary  
Shareholder Meetin
planned  
February 3, 2021  
May 2021  
Fall 2021  
Introductory  
Capital Market  
Truck Event  
planned  
Capital Market Day  
for Spin-off  
planned  
Daimler AG  
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  
Independence  
Diversification of funding sources and instruments:  
Bank Loans, Bonds, ABS, CP, Deposits  
No Covenants, no MAC, no asset pledges, no CSAs  
Keeping prudent amount of Cash and Committed Credit Facility  
New markets funded via global and local banks first  
Maximizing  
Financial  
Flexibility  
Early capital market funding to save credit capacity in growth regions  
Liquidity matched funding  
Interest rate matched funding  
Currency matched funding  
Country matched funding  
Stringent Global  
Funding Policy  
Daimler AG  
Fixed Income Presentation | FY 2020  
39  
Portfolio of Daimler Mobility on a high level  
Wholesale  
163  
Loan  
154  
150  
140  
Lease  
133  
117  
9
9
Trucks & Buses  
about 20% of  
portfolio  
Trucks  
8
4
Others  
8
0
72  
74  
72  
71  
6
8
Portfolio  
in bn €)  
6
2
Buses  
Vans  
(
5
8
4
8
41  
3
8
Acquisitions  
34  
(
in bn €)  
Passengers Cars  
2011  
2012 2013 2014  
2015  
2016  
2017  
2018 2019  
2020  
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  
1
7.8  
0.5  
1
4.5  
1.4  
1
1.2  
3.1  
17.3  
7.4  
0.2  
5
.9  
13.1  
4
1.3  
.3  
2.3  
3.5  
8.1  
3
.1  
3.0  
7.2  
0.1  
2
.3  
2
.0  
1
.3  
2.2  
.9  
3.6  
3.4  
3.0  
0
.5  
0
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)  
Other (ex Fin. Lease)  
Com. Paper  
Acc. Deposits  
Bank Loans  
Bonds  
ABS  
1
61.8  
4.2  
1.8  
3.3  
0
2
2.8  
.0  
.0  
145.8  
3.7  
.3  
0.7  
1
45.0  
1
3.9  
1
0
2.0  
1.0  
.0  
1
27.4  
12.5  
13.1  
16.6  
14.5  
0.0  
1.0  
1.7  
1
17.6  
1
1.8  
1
1.0  
1
0.6  
11.5  
39.8  
1
1.6  
39.4  
32.4  
3
4.6  
7.3  
2
9.7  
3.0  
85.6  
76.6  
76.7  
6
6
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 relationships  
Bank Loans  
ABS  
Bank loans  
2
0%  
Bank loans  
Globally expand our highly  
competitive ABS issuances  
2
2%  
Q4  
020  
Maintain well controllable  
liquidity reserve  
0%  
Cap Market  
5
Target  
Cap Market  
5
3%  
Deposit  
2
10%  
Deposits  
3
0%  
ABS &  
11%  
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  
ABS  
CP  
Euro Market  
Korea  
EMTN Program  
Italian domestic  
Hungarian domestic  
EUR CP Program  
ABS  
Domestic Bond Prog.  
China  
Domestic Bonds  
ABS  
USA  
44a / RegS PP  
CP  
ABS  
Japan  
Turkey  
Domestic Bonds  
1
Domestic CP  
EMTN  
Thailand  
Domestic Bond Prog.  
India  
Mexico  
Domestic Issuance Prog.  
Domestic Bonds  
Domestic CP  
Malaysia  
Domestic Bond Prog.  
Brazil  
Letras Financeiras  
Australia  
EMTN  
Domestic CP Prog.  
ABS  
South Africa  
Domestic Debt  
Issuance Prog.  
Argentina  
Domestic Debt  
Issuance Prog.  
Daimler AG  
Fixed Income Presentation | FY 2020  
45  
Funding base further diversified to a true global set-up  
in billions of €  
1
45.8  
3%  
1%  
0%  
1
1%  
0%  
Currency  
EUR  
USD  
Volume  
39,4  
22,1  
3,3  
%
52%  
29%  
4%  
1
CNY  
GBP  
CAD  
2,8  
2,1  
4%  
3%  
22%  
Currency  
Volume  
19,5  
7,8  
%
66%  
27%  
3%  
2%  
1%  
ZAR  
JPY  
AUD  
KRW  
NOK  
MXN  
1,4  
0,6  
0,6  
0,6  
0,6  
0,5  
2%  
1%  
1%  
1%  
1%  
1%  
EUR  
USD  
ZAR  
JPY  
Fin. Lease (IFRS 16)  
Other  
0
2
%
%
0,8  
0,6  
0,3  
5
7.3  
Com. Paper  
ABS  
0%  
2%  
2
2%  
GBP  
Other (BRL, CHF  
THB, MYR, HKD,  
HUF, INR, SEK, TRY)  
Total  
1,7  
2%  
CHF  
0,2  
0,2  
1%  
1%  
Acc. Deposits  
Bank Loans  
53%  
23%  
Other (AUD,  
MXN, ARS)  
Total  
77  
20  
29  
9
Bonds  
51%  
Currencies  
Currencies  
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  
Negative  
Stable  
Stable  
Stable  
A-2  
Moody’s:  
Fitch:  
A3  
P-2  
BBB+  
BBB (high)  
A
F1  
Current Ratings:  
DBRS:  
R-2 (high)  
S-1  
Scope:  
Daimler AG  
Fixed Income Presentation | FY 2020  
47  
In low interest rate environment high contributions stabilized funded ratio  
1
1
1
4
2
0
8
6
4
2
0
1
1.5  
1
1.0  
9
.8  
8.6  
8
.4  
7
.8  
7
.4  
6
.2  
4
.5  
Significant contributions of EUR  
17.3bn since 2010 support the  
solid capital structure  
3
.7  
3
.4  
3.1  
2.4  
2
.2  
2
.0  
1.9  
1.1  
0.8  
2020  
0.5  
0.7  
2018  
0.7  
2019  
0
.3  
2010  
2011  
2012  
2013  
2014  
2015  
2016  
2017  
Pension Provision Daimler Group  
Contributions  
+
9%  
1
00  
9
8
7
6
5
4
3
2
1
0
90  
80  
70  
60  
50  
40  
30  
20  
10  
0
86%  
8
0%  
7
7%  
75%  
Even though German Discount  
Rate decreased significantly since  
2010, Funded Ratio is at a solid  
level of 72%  
7
3%  
72%  
6
6%  
6
3%  
63%  
62%  
5
9%  
5.00%  
4.70%  
3.40%  
3.10%  
2.60%  
1.80%  
2018  
1.90%  
1.90%  
2016  
1.80%  
1.02%  
0.43%  
2010  
2011  
2012  
2013  
2014  
2015  
2017  
2019  
2020  
Discount Rate Germany (in %, rhs)  
Funded Ratio Daimler Group (in %, lhs)  
Daimler AG  
Fixed Income Presentation | FY 2020  
48  
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  
49  
Daimler Group  
6
+ 3 sustainability topics as an integral part  
Climate protection  
air quality  
Resource  
conservation  
Livable  
cities  
&
Traffic safety  
Data responsibility  
Human rights  
Partnerships  
Integrity  
People  
Daimler AG  
Fixed Income Presentation | FY 2020  
50  
CO neutrality at Mercedes-Benz Cars  
2
2
039  
We aim to achieve CO2  
neutrality for our new  
passenger car fleet by  
2039.  
2
030  
Our goal is to have plug-in  
2
025  
hybrids or all-electric vehicles  
account for more than 50  
Depending on how conditions  
develop, we plan to have all-  
electric vehicles account for up  
to 25 percent of unit sales by  
2025.  
2
022  
percent of our car sales by 2030.  
We intend to offer several  
electric model variants in all  
segments of Mercedes-Benz  
Cars by 2022.  
Scientifically verified  
by SBTI:  
CO goals in line with the  
2
Paris Agreement  
Daimler AG  
Fixed Income Presentation | FY 2020  
51  
Daimler Trucks & Buses: Making CO2-neutral transport a reality  
2
039  
Ambition: By 2039, new vehicles in Europe,  
Japan and North America will be CO2  
neutral in operation (tank-to-wheel).  
Second half  
of 2020s  
Hydrogen-based series-  
production vehicles in the  
second half of the decade.  
2
022  
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: CO -neutral locations and  
2
administration  
2
022  
Globally CO -neutral locations  
2
and administration.  
2
020  
Sustainability firmly  
anchored in our corporate  
values.  
Daimler AG  
Fixed Income Presentation | FY 2020  
53  
CO neutrality at Mercedes-Benz Cars  
2
2
019 2020 2021 2022  
Stay tuned for more  
EV Purpose  
SUVs  
EQV  
Compacts  
EQC  
e.g. EQA, EQB  
World‘s first fully-electric  
premium MVP by Mercedes.  
Frontrunner.  
EV Purpose  
eVito Tourer  
Next generation  
smart from China  
eVito mid-size van launched  
in 2018.  
Limousines  
e.g. EQS  
smart EQ  
fortwo/forfour  
All-electric options since 2007.  
eEconic  
eActros  
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  
2
020s  
ttery Electric Truck:  
Hydrogen Truck:  
ower Weight,  
horter Distances  
- Heavy Weight,  
- Long Distance  
Daimler AG  
Fixed Income Presentation | FY 2020  
55  
and our aim to achieve CO2-neutral production  
By 2022:CO -neutral production at our Mercedes-Benz Car and Van plants worldwide*  
2
By 2022:CO -neutral production at our European plants of Daimler Trucks & Buses*  
2
By 2030:Fifty percent CO emissions reductions from production operations SBTI  
2
By 2039:CO -neutral production at all of our plants and in all of our business units worldwide  
2
“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  
fleet of electric vehicles.  
10 bn  
More than €1 billion to expand our  
battery production.  
1 bn  
Buying battery cells for more than €20 billion in  
order to systematically promote our Group’s entry  
into an electrically driven future.  
20 bn  
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  
committed to people and the  
environment  
We act responsibly  
and respect the rules  
We address issues  
openly and stand for  
transparency  
Our web-based training  
modules on integrity &  
compliance are mandatory  
and have to be performed  
successfully on a regular  
basis.  
corporate  
principles:  
the foundation of  
all our actions  
Fairness and respect are the  
foundation of our collaboration  
We practice diversity  
Daimler AG  
Fixed Income Presentation | FY 2020  
59  
Daimler’s green finance framework is part of our  
sustainable business strategy  
Project  
evaluation and  
selection  
Management of  
Use of proceeds  
Reporting  
External review  
proceeds  
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  
provides second  
opinions on  
institutions’  
frameworks and  
guidance for  
Daimler’s green finance framework was rated by CICERO  
as Dark Green. Dark Green is allocated to projects and  
solutions that correspond to the long-term vision of a low  
carbon and climate resilient future.  
assessing and  
selecting eligible  
projects for green  
finance investments.  
CICERO Shades of  
Green is  
internationally  
recognized as a  
leading provider of  
independent reviews  
of green bonds, since  
the market’s  
GOVERNANCE PROCEDURES  
CICERO Shades of Green finds the governance procedures  
in Daimler’s framework to be Excellent.  
inception in 2008.  
GREEN BOND and GREEN LOAN PRINCIPLES  
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.  
Fixed Income Presentation | FY 2020  
62  


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