Fixed Income Presentation Q1 2021 Daimler AG
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Fixed Income Presentation Q1 2021
Daimler AG
Daimler AG Fixed Income Presentation | Q1 2021 1
AGENDA I. DAIMLER AG REVIEW Q1 2021 II. DIVISIONAL REVIEW Q1 2021 III. OUTLOOK 2021 IV. PROJECT FOCUS V. FUNDING VI. SUSTAINABILITY Daimler AG Fixed Income Presentation | Q1 2021 2
Daimler: Key messages ▸ Q1 margin at Mercedes-Benz Cars & Vans demonstrates strength of portfolio and ability to lower break-even point ▸ Excellent Net Industrial Liquidity & effective Working Capital management ▸ Project Focus: spin-off and listing of Daimler Truck in preparation ▸ World premieres of EQS, EQA and EQB underline ambition to lead in electric drive and car software with high-tech luxury EVs Daimler AG Fixed Income Presentation | Q1 2021 3
Daimler: Key figures
Free Cash Net Industrial
Sales Revenue EBIT EBIT adj.
in thousand units in billion euros in billion euros in billion euros
Flow (IB) Liquidity
in billion euros in billion euros
729
41.0 20.1
644 5.7
37.2
1.8
5.0
+13% +10% +832% +591% +4.1 9.3 117%
0.6 0.7
-2.3
Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 3/31/2020 3/31/2021
For more details on financials please see Daimler Capital Market Presentation Q1 2021
Daimler AG Fixed Income Presentation | Q1 2021 4
Daimler Q1 2021 reconciliation from CFBIT to Free Cash Flow: On our way
towards a cash flow oriented culture
in million euros
+1,022 2,832
+621 -355
-100 -126
1,968 -198
1,810
• Legal proceedings +1,063
• Restructuring measures +550
• M&A transactions -591
CFBIT CFBIT Income Interest Effects from Other Free cash flow Adjustments Free cash flow
Mercedes-Benz Daimler taxes paid Pensions 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 | Q1 2021 5
Daimler Net Industrial Liquidity: Healthy Net Cash position leaves us with
significant financial flexibility
in billion euros
+1.8 -1.9 20.1
+0.6 +0.5 +0.4
17.9 +0.8
Free cash flow industrial business
Q1 2021: € 1,810 million
Net industrial Earnings and Working Depreciation and Additions to Investments in Other Net industrial
liquidity other cash capital impact amortization/ property, plant, and disposals of (mainly liquidity
12/31/2020 flow impact impairments equipment and shareholdings FX effects) 3/31/2021
intangible assets
Daimler AG Fixed Income Presentation | Q1 2021 6
Daimler YTD Q1 2021 development of gross industrial liquidity
Financial Services
in billion euros Industrial Business
1.9 -0.7 -1.9 2.7 -5.4 4.5 -0.3
1.8 32.0
29.4 -0.1 4.2
3.6
25.8 27.9
Gross Dividend FCF FCF Other ABS New Bond New FX & Gross
Liquidity Payment IB DMO Debt Maturities ABS Maturities Bonds Other Liquidity
31.12.2020 31.3.2021
Note: Figures may not be additive due to rounding.
Daimler AG Fixed Income Presentation | Q1 2021 7
Daimler Q1 2021 financial flexibility over a 12-month period
in billion euros
65.5
Other incl.
ABS potential 52.0 Fin. Lease Net industrial liquidity at €20.1 billion improved significantly
Commercial
paper
Gross industrial liquidity at €27.9 billion
Bank loans
Credit facility
Financial flexibility supported by €11 billion revolving credit facility,
Liquidity which is unutilized
Daimler Mobility
Bonds
Liquidity
industrial
business
Account
deposits
Available or Maturities
accessible over next
liquidity 12 months
Daimler AG Fixed Income Presentation | Q1 2021 8
AGENDA
I. DAIMLER AG REVIEW Q1 2021
II. DIVISIONAL REVIEW Q1 2021
III. OUTLOOK 2021
IV. PROJECT FOCUS
V. FUNDING
VI. SUSTAINABILITY
Fixed Income Presentation | Q1 2021 9
Mercedes-Benz Cars: Highlights ▸ Positive trend from H2 2020 continued ▸ Favourable sales momentum with record sales in China ▸ Fascinating products and favourable mix drive pricing ▸ Global EV share of Mercedes-Benz Cars at about 10%, in Europe above 25% ▸ Improved industrial performance; significant fixed cost reduction ▸ Mercedes-Benz Drive System Campus gearing up for “Electric First” future Daimler AG Fixed Income Presentation | Q1 2021 10
Mercedes-Benz Cars: Business recovery in all core regions
Group sales of Mercedes-Benz passenger cars per month
in thousand units
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 Mar 21 Jan 20 Mar 21 Jan 20 Mar 21
Daimler AG Fixed Income Presentation | Q1 2021 11Mercedes-Benz Cars & Vans financials: CFBIT adj.
turned positive, demonstrating focus on cash flow
Sales Revenue EBIT adj. CFBIT adj.
in thousand units in billion euros in billion euros in billion euros
26.9
627 3.8
23.2
547 3.1
+15% +16% +537% +4.4
0.6
-1.3
Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021
For more details on financials please see Daimler Capital Market Presentation Q1 2021
Daimler AG Fixed Income Presentation | Q1 2021 12Mercedes-Benz Cars & Vans EBIT FY & RoS: Favourable sales momentum
translated in a significant increase in volume, structure and pricing
Higher unit sales (mainly in China), favourable mix
Favourable net pricing
in million euros Improved industrial performance; significant fixed cost reduction
Higher at-equity contribution from Beijing Benz Automotive Co., Ltd. (BBAC)
Gross profit +2,537 One-offs (IPO Chargepoint, Sale of property Ulm)
Foreign exchange rates
3,841 +237 4,078
+423
+302 +97 -121
+2,311 -129 +355
RoS: • Legal RoS:
Proceedings -75
14.3% 15.2%
RoS: • Restructuring -292
RoS: • M&A transaction+604
2.2% 2.6%
510 +93 603
• Legal
proceedings +93
EBIT Adjustments EBIT Volume/ Foreign Industrial Selling General Research & non- Others EBIT Adjustments EBIT
Q1 2020 adjusted Structure/ exchange performance expenses administrative capitalized adjusted Q1 2021
Q1 2020 Net pricing rates expenses developm. costs Q1 2021
Daimler AG Fixed Income Presentation | Q1 2021 13Mercedes-Benz Cars & Vans Reconciliation from EBIT to CFBIT: Controlled
inventory management given the increased sales volume and richer
model-mix
in million euros
+844 +186 -1,586 +1,498 -3,052
4,078
+1,161 3,129
1,968
t/o
• US penalty payments -912 • Legal Proceedings +1,062
• Cellcentric -604 • Restructuring +409
• Result at-equity BBAC -483 • M&A transaction -310
• ChargePoint -179
EBIT Change in Net financial Net investments Depreciation and Other CFBIT Adjustments CFBIT
Q1 2021 working capital investments in pp&e and amortization/ Q1 2021 adjusted
intangible assets impairments Q1 2021
Daimler AG Fixed Income Presentation | Q1 2021 14MD Daimler Trucks & Buses: Highlights ▸ Increase in truck sales, mainly in Europe and North America due to improved market conditions and SoM gains ▸ Incoming truck orders in all regions significantly above prior-year’s quarter ▸ Further reduction of used vehicles stocks and favourable net pricing ▸ Global strategic partnership for medium-duty engine systems with Cummins Inc. signed ▸ Fuel-cell joint venture “cellcentric” with Volvo Group closing completed Daimler AG Fixed Income Presentation | Q1 2021 15
Daimler Trucks & Buses Financials: Strong
improvement of EBIT adj. and CFBIT adj.
Sales Revenue EBIT adj. CFBIT adj.
in thousand units in billion euros in million euros in million euros
101
8.7 8.7
98
518
435
+4% -1% 247 +110% +520
-85
Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021
For more details on financials please see Daimler Capital Market Presentation Q1 2021
Daimler AG Fixed Income Presentation | Q1 2021 16Daimler Trucks & Buses EBIT & RoS: Positive volume, structure and net
pricing
Higher truck unit sales mainly in EU30 and North America
Positive contribution from used vehicle business and favourable development of
net pricing
Higher costs, mainly related to raw material, supply chain constraints and
in million euros preventive health measures to avoid effects of COVID-19
+523 1,041
Gross profit +193
+280 -15 -72 +48 518
+9 -23 +44
247
RoS: RoS: • Restructuring RoS:
measures -88
2.8 % 6.0 % • Fuel Cell JV +611 12.0%
EBIT Volume/ Foreign Industrial Selling General Research & non- Others EBIT Adjustments EBIT
Q1 2020 Structure/ exchange performance expenses administrative capitalized adjusted Q1 2021
Net pricing rates expenses developm. costs Q1 2021
Daimler AG Fixed Income Presentation | Q1 2021 17Daimler Trucks & Buses reconciliation from EBIT to CFBIT: Underlining our
focused investment approach
in million euros
+287 -664
1,041 +314 -198
-159
621 -186
435
t/o • Restructuring
• cellcentric -622 measures +95
• Fuel Cell JV -281
EBIT Change in Net financial Net investments Depreciation and Other CFBIT Adjustments CFBIT
Q1 2021 working capital investments in pp&e and amortization/ Q1 2021 Q1 2021
intangible assets impairments adjusted
Daimler AG Fixed Income Presentation | Q1 2021 18Daimler Mobility: Highlights
▸ Strong loyalty and retention driving new business above Q1
2020, especially in China
▸ Stable credit reserve level with continuously low net credit
losses
▸ Further improvements at mobility services:
▸ Ongoing optimization of its holdings
▸ PARK NOW - Announcement of intended acquisition by EasyPark
▸ CHARGE NOW - new additional partner and investor with bp
▸ YOUR NOW - continuous extension of business activities
(e.g. Multi Mobility Services, SHARE NOW rewards)
Daimler AG Fixed Income Presentation | Q1 2021 19Daimler Mobility Financials: Significant
increase in EBIT adj.
New Contract
EBIT adj.
business volume in million euros
in billion euros in billion euros
16.2 16.8 150.6 152.7 691
+4% +1% +633
58
Q1 2020 Q1 2021 12/31/2020 3/31/2021 Q1 2020 Q1 2021
For more details on financials please see Daimler Capital Market Presentation Q1 2021
Daimler AG Fixed Income Presentation | Q1 2021 20Daimler Mobility EBIT & RoE: Main impact from lower credit risk provisions
and higher interest margins
Lower addition to credit risk reserve
Favourable margin development
in million euros
OPEX improvement
Gross profit* 638
+53 744
+102 +3 +25 0 691
+536
RoE: RoE: RoE: • Restructuring RoE:
1.6% 1.6% 18.7% measures -36
20.2%
• VIA
-33 +89
58 0 58
EBIT Adjustments EBIT Foreign Cost of risk Volume/* Selling* General* Others* EBIT Adjustments EBIT
Q1 2020 adjusted exchange Margin expenses administrative adjusted Q1 2021
Q1 2020 rates expenses Q1 2021
* excluding FX effects
Daimler AG Fixed Income Presentation | Q1 2021 21AGENDA I. DAIMLER AG REVIEW Q1 2021 II. DIVISIONAL REVIEW Q1 2021 III. OUTLOOK 2021 IV. PROJECT FOCUS V. FUNDING VI. SUSTAINABILITY Daimler AG Fixed Income Presentation | Q1 2021 22
Performance: Market Guidance 2021
ASSUMPTION
Our expectations for the development of business in 2021 are based on the assumption of a gradual
normalization of economic conditions in the markets that are important to us. In particular, we assume
that the world economy will be able to recover from the pandemic-related weakness of the
year 2020, aided by, among other things, the increasing availability of effective vaccines.
Global significant increase
Europe significant increase
Car Markets
USA significant increase
China significant 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 | Q1 2021 23Performance: Daimler Group Guidance 2021 ASSUMPTION Our expectations for the development of business in 2021 are based on the assumption of a gradual normalization of economic conditions in the markets that are important to us. In particular, we assume that the world economy will be able to recover from the pandemic-related weakness of the year 2020, aided by, among other things, the increasing availability of effective vaccines. 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 | Q1 2021 24
Performance: Divisional Guidance 2021
ASSUMPTION
Our expectations for the development of business in 2021 are based on the assumption of a gradual
normalization of economic conditions in the markets that are important to us. In particular, we assume
that the world economy will be able to recover from the pandemic-related weakness of the
year 2020, aided by, among other things, the increasing availability of effective vaccines.
Cars significantly above
Unit Sales Vans significantly above
Trucks & Buses significantly above
Mercedes-Benz Cars & Vans 10 to 12%
Return on Sales
Daimler Trucks & Buses 6 to 7%
(adjusted*)
Daimler Mobility (RoE) 14 to 15%
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 | Q1 2021 25Strategic priorities in 2021
Raising Accelerating Preparing
Performance Technology Project Focus
MBC&V RoS Q1 14.3% FYe 10-12% World Premiers of Capital Market Update Daimler
DT&B RoS Q1 6.0% FYe 6-7% EQS, EQB, EQA Truck on May 20
DMO RoE Q1 18.7% FYe 14-15%
Daimler AG Fixed Income Presentation | Q1 2021 26AGENDA I. DAIMLER AG REVIEW Q1 2021 II. DIVISIONAL REVIEW Q1 2021 III. OUTLOOK 2021 IV. PROJECT FOCUS V. FUNDING VI. SUSTAINABILITY Daimler AG Fixed Income Presentation | Q1 2021 27
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
Schematic representation
for both groups after spin-off
Daimler AG Fixed Income Presentation | Q1 2021 28Daimler
Project TruckFixed
Focus: AG majority
Income spin-off: Intended transaction structure and
key messages
details
Strong balance sheet: 20 bn Euro Net Industrial liquidity end of Q1 2021
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, Brazil and Mexico
Daimler AG Fixed Income Presentation | Q1 2021 29Project 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 | Q1 2021 30Project 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 | Q1 2021 31Structure 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 | Q1 2021 32Daimler
Daimler Truck
Truck AGAG majority
majority spin-off:
spin-off: Intended
Intended transaction
transaction structure
structure and
and
details
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
Spin-off of Daimler with minority/ Strong Both Daimler Truck and be listed in Frankfurt
Significant financial stake and Capital Mercedes-Benz with strong DAX
de-consolidating net liquidity position Company
Majority Stake Structures Company expected to
Daimler Truck qualify for the DAX
Independent chairman
Ambitious Separation will enable
Independent financial realization of full profit Listing Listing targeted
Daimler supervisory board before year-end 2021
Governance targets potential Timing
representation in line with
intended deconsolidation
Daimler AG Fixed Income Presentation | Q1 2021 33The 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 20, 2021 Fall 2021 End of 2021
Capital Market Update
Daimler Truck Capital Market Day
for Spin-off
planned
Daimler AG Fixed Income Presentation | Q1 2021 34AGENDA
I. DAIMLER AG REVIEW Q1 2021
II. DIVISIONAL REVIEW Q1 2021
III. OUTLOOK 2021
IV. PROJECT FOCUS
V. FUNDING
VI. SUSTAINABILITY
Fixed Income Presentation | Q1 2021 35Our funding strategy is built on strict principles
No dependence from single markets, instruments, banks or investors
Targeting
Diversification of funding sources and instruments:
Financial 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 | Q1 2021 36Portfolio of Daimler Mobility on a high level
Wholesale
163 Loan
150 150 153
140 Lease
133
117
99 Trucks & Buses
about 20% of
80 84 portfolio Trucks
Others
71 72 74
Portfolio 68
62 Buses
(in bn €) 58
48
38 41 Vans
Acquisitions
(in bn €)
17
2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1-2021 Passengers Cars
Daimler AG Fixed Income Presentation | Q1 2021 37Daimler 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 low level, not showing any
severe CoViD-19 impact
Despite expected macroeconomic recovery, net credit
losses might rise in 2021 as a result of expiring
governmental liquidity support programs
External Liabilities IB (Target duration 5y) Internal IC-loans to DMO (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
DMO via IC-loans
Daimler AG Fixed Income Presentation | Q1 2021 38Well balanced Bond Maturity Profile
in billions of € as of 31 March 2021
Issued in 2021
Maturities
18.2
14.8
0.1
11.6
0.3
9.2
1.8
14.7 6.0
11.3 5.1
0.9 3.5 3.5
7.4 3.1
2.0 2.4 0.4
4.2 1.0 1.3
3.0 0.5
1.0
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2033 2034 2037
Duration of Bondmaturities: 3.7y
Note: Figures may not be additive due to rounding.
Daimler AG Fixed Income Presentation | Q1 2021 39Financing 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
3% 146.9
145.0 0% 145.8 3% 2%
1% 9% 1% 1%
1%
127.4 0% 9% 2% 2% 1%
8% 11% 0% 12%
2%
9% 8%
1% 10% 10%
9% 25%
27% 22% 22%
27%
53%
53% 53% 52%
53%
2017 2018 2019 2020 Q1 2021
Daimler AG Fixed Income Presentation | Q1 2021 40To ensure sustainable portfolio growth, we mitigate risk and volatility through a
balanced mix of funding instruments
Capital Markets Strengthen our global footprint
and use market opportunities
Other Fin. Lease (IFRS 16)
1% 2% Deepen our excellent
Bank Loans bank relationships
Bank loans
Bank loans 20%
22% Globally expand our highly
ABS competitive ABS issuances
Q1 Cap Market
Cap Market
53% (Bonds & CPs) Deposit Maintain well controllable Target 50% (Bonds & CPs)
2021 liquidity reserve
Deposits 10%
30%
12% ABS &
Deposits
ABS
RATING
INDEPENDENT
Total: EUR 147 bn
Daimler AG Fixed Income Presentation | Q1 2021 41Diversified global funding base: continuously matched with DMO
requirements
Canada
EMTN
Domestic Bonds
ABS Euro Market Japan
CP EMTN Program Domestic CP
EUR CP Program EMTN
USA ABS
China ABS
144a / RegS PP Italian domestic Turkey Domestic Bonds
CP Hungarian domestic
Domestic Bonds ABS
ABS Korea
Domestic Bond Prog.
India
Mexico Domestic Bonds Thailand
Domestic Issuance Prog. Domestic CP Domestic Bond Prog.
Malaysia
Brazil Domestic Bond Prog.
Letras Financeiras
South Africa Australia
Argentina Domestic Debt EMTN
Domestic Debt Issuance Prog. Domestic CP Prog.
Issuance Prog. ABS
Debt Capital Market ABS Bank Loans
Currency Volume % Currency Volume % Currency Volume % Currency Volume %
EUR 39,1 51% AUD 0,6 1% USD 10,0 57% AUD 0,9 5% 180 banks providing funding of EUR 32 bn
USD 22,4 29% KRW 0,5 1% CNY 2,4 14% GBP 0,8 4% in 35 countries
CNY 3,6 5% NOK 0,5 1% EUR 1,7 10% JPY 0,7 4%
GBP 2,9 4% JPY 0,5 1% CAD 1,0 6% KRW 0,1 1%
CAD 2,2 3% BRL 0,5 1%
ZAR 1,4 2% Other 1,7 2%
Total (EUR bn) 77 Currencies 20 Total (EUR bn) 18 Currencies 8
Daimler AG Fixed Income Presentation | Q1 2021 42Daimler‘s financial KPIs set to support a strong rating
Agency Long-term Outlook Short-term
Standard & Poor's: BBB+ Positive A-2
Moody’s: A3 Stable P-2
Current Ratings: Fitch: BBB+ Positive F1
DBRS: BBB (high) Stable R-2 (high)
Scope: A Stable S-1
Daimler AG Fixed Income Presentation | Q1 2021 43In low interest rate environment high contributions stabilized funded ratio
14
11.5 11.0
12
9.8
10 8.6 8.4 8.4
7.4 7.8
in EUR bn
8
6
6.2 Significant contributions of
4.5
4
3.4
2.2 2.0
3.1 2.4
3.7 EUR 17.4bn since 2010
1.9
2 0.3
1.1 0.5 0.7 0.7 0.8
0.1 support the solid capital
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 03/2021
structure
Pension Provision Daimler Group Contributions
100% 14% 86%
80% 8.0%
75% 77% 77%
80% 73% 72%
63% 66%
59%
63% 62% 6.0% Even though German Discount
Funded Ratio
Discount Rate
60%
5.00%
Rate decreased significantly
4.70% 4.0%
40% since 2010, Funded Ratio is at
3.10% 3.40%
20% 2.60% 1.02% 0.89%
2.0% a solid level of 77%
1.90% 1.90% 1.80% 1.80% 0.43%
0% 0.0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 03/2021
Funded Ratio Daimler Group (in %, lhs) Discount Rate Germany (in %, rhs)
Daimler AG Fixed Income Presentation | Q1 2021 44AGENDA I. DAIMLER AG REVIEW Q1 2021 II. DIVISIONAL REVIEW Q1 2021 III. OUTLOOK 2021 IV. PROJECT FOCUS V. FUNDING VI. SUSTAINABILITY Daimler AG Fixed Income Presentation | Q1 2021 45
SUSTAINABILITY - integral part of divisional business strategies
We aim to achieve New vehicles in Europe, We intend to have
CO2 neutrality Japan and North globally CO2-neutral
•
for our new passenger America are planned to locations and
car fleet by be CO2 neutral in administration by
• operation (tank-to-
wheel) by
2039
•
2039 2039 2022
We are striving for a CO2-neutral production in all our
plants and business divisions by 2039
Daimler AG Fixed Income Presentation | Q1 2021 46Sustainable value for all stakeholder groups
Climate protection Resource Livable
& air quality conservation cities
Traffic safety Data responsibility Human rights
Integrity People Partnerships
Daimler AG Fixed Income Presentation | Q1 2021 47CO2 neutrality at Mercedes-Benz Cars
2039
2030 We aim to achieve CO2
neutrality for our new
Our goal is to have plug-in
2025 hybrids or all-electric vehicles
car and van fleet by
2039.
account for more than 50
2022 Depending on how conditions
develop, we at Mercedes-Benz percent of our car and van sales
We intend to offer several Cars plan to have all-electric by 2030.
electric model variants in all vehicles account for up to 25
segments from Mercedes-Benz percent of unit sales by 2025.
Cars & Vans by 2022.
Scientifically verified
by SBTI:
CO2 goals in line with the
Paris Agreement
Daimler AG Fixed Income Presentation | Q1 2021 48“ELECTRIC FIRST” at Mercedes-Benz Cars – we are fully committed to
dedicated electric architectures
Powertrain flexible architecture
EQC EQA EQB
Dedicated large electric platform (EVA)
EQS EQE EQS-SUV EQE-SUV
Dedicated compact and mid-size
*
electric platform (MMA)
Stay tuned!
Daimler AG * “Electric First“ skateboard, intelligent modular strategy with body variants for electrified ICE Fixed Income Presentation | Q1 2021 49Daimler Trucks & Buses: Making CO2-neutral transport a reality
2050
2ndhalf of 2039 We intend to enable the
2022 2020s Daimler Truck AG has set itself use of CO2-neutral
transportation on all
the goal of offering only new
We intend to offer series-produced vehicles that are CO2-neutral streets and roads.
We intend to put series-
vehicles with battery-electric drive in driving operation ( tank-to-
produced vehicles powered by
systems in the main sales regions wheel) in Europe, Japan, and
hydrogen-based fuel cells on
Europe, the United States, and North America by 2039.
the road.
Japan by 2022.
Daimler AG Fixed Income Presentation | Q1 2021 50Customers may decide for electric or hydrogen trucks 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
eActros
Battery Electric Truck: Hydrogen Truck: • Locally CO2-neutral heavy-duty
truck for sustainable transport
- Lower Weight, - Heavy Weight,
• Series production in 2021
- Shorter Distances - Long Distance • 200 km range has proven to be
perfectly realistic – regardless of
load, route or topography
Daimler AG Fixed Income Presentation | Q1 2021 51On the road to 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
2 SBTI
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 | Q1 2021 52Committed investments as part of our
electrification strategy
€10 bn About €10 billion to expand our
fleet of electric vehicles.
€1 bn More than €1 billion to expand our
battery production.
Buying battery cells for more than €20 billion in
€20 bn order to systematically promote our Group’s entry
into an electrically driven future.
Daimler AG Fixed Income Presentation | Q1 2021 53Our 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 | Q1 2021 54… 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 | Q1 2021 55Daimler’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 | Q1 2021 56Second Opinion by leading provider of independent reviews
of green bonds
SHADES OF GREEN
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.
GOVERNANCE PROCEDURES
CICERO Shades of Green finds the governance procedures in Daimler’s
framework to be Excellent.
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 | Q1 2021 57Daimler Q1 2021 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. Daimler AG Fixed Income Presentation | Q1 2021 58
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