Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

Sign up Log in

Mercedes-Benz AG Call Transcript 2009

May 8, 2009

89_ip_2009-05-08_832fcad4-d003-46ad-92a3-4e212cfd3694.pdf

Call Transcript

Open in viewer

Opens in your device viewer

Conference Call Q1 2009 Results

Bodo Uebber

Member of the Board of Management Finance & Controlling and Daimler Financial Services

Final separation from all Chrysler issues signed

  • Daimler, Chrysler, Cerberus and US-Pension Benefit Guaranty Corporation (PBGC) achieved agreement on Daimler's final separation from Chrysler, independently from Chrysler's future
  • Redemption of Daimler's 19.9% share in Chrysler Holding
  • Waiver of 2nd Lien Note and Subordinated Loan by Daimler
  • Daimler released from all possible legal litigations by Chrysler and Cerberus
  • Daimler safeguards pension payments for former DaimlerChrysler employees of total USD 0.6 bn in three equal installments in the upcoming three years
  • PBGC guarantee reduced from USD 1.0 bn to USD 0.2 bn
  • Daimler remains supplier to Chrysler of components and services (i. e. dealer financing until end of September 2009) and warrantor for certain guarantees
  • Maximum negative EBIT effect in Q2 2009 of up to USD 0.7 bn
  • Total cash burden of USD 0.6 bn in 2009 2011

Summary Q1 2009

  • Financial and economic crisis worsened
  • Weak markets led to lower unit sales in all automotive divisions
  • Revenue decreased in line with lower unit sales to €18.7 billion
  • EBIT fell to minus €1.4 billion
  • Net profit decreased from €1.3 billion to minus €1.3 billion
  • Net liquidity of industrial business at €3.7 billion
  • Group-wide measures initiated in order to reduce or avoid expenses and cash outflows by €4 billion
  • Investment of Aabar (Abu Dhabi) strengthened financial position

Key financials

i
b
i
l
l
i
f
€
n
o
n
s
o
–
–		 Q
1
2
0
0
8		 Q
1
2
0
0
9
E
B
I
T		 2
0		 (
)
1.
4
N
f
i
t
t
e
p
r
o		 3
1.		 (
3
)
1.
E
i
h
(
i
€
)
a
r
n
n
g
s
p
e
r
s
a
r
e
n		 2
9
1.		 (
0
)
1.
4
F
h
f
l
i
d
i
l
b
i
t
r
e
e
c
a
s
o
n
s
r
a
s
n
e
s
s
w
u
u		 1.
0		 (
)
1.
1
l
i
i
d
i
i
d
i
l
b
i
(
d
)
N
2
0
0
8
t
t
t
e
q
n
s
r
a
s
n
e
s
s
e
a
r-
e
n
u
y
u
u
:
y		 3
1		 3
7

Group EBIT decreased in Q1 2009 due to financial and economic crisis

in millions of € -

Unit sales and revenue declined due to weak worldwide demand and model change of E-Class

Decrease in EBIT results primarily from lower unit sales

Product highlights

Lower unit sales reflect weak demand in all major regions

Lower EBIT primarily due to tough market environment almost worldwide

Product highlights

Van markets were especially weak in Europe and the U.S.

Lower EBIT due to sharp decline in sales

Product highlights

Overall stable bus business in Europe and NAFTA; weak chassis demand in Latin America

Decrease in EBIT due to overall sales decline

Daimler Buses

Product highlights

Decrease in contract volume compared to year-end 2008

Daimler Financial Services affected by higher cost of risk

Net profit and earnings per share

Key balance-sheet and financial figures

i
i
i
f
b
l
l
€
n
o
n
s
o
–
–		 D
3
2
0
0
8
1
e
c
,		 M
3
2
0
0
9
1
a
r.
,
i
l
G
D
a
m
e
r
r
o
p
u
1
)
i
i
E
t
t
q
r
a
o
u
y		 %
2
4
3		 2
3
8
%
G
l
i
i
d
i
t
r
o
s
s
q
u
y		 8
0		 1
6
7
I
d
i
l
b
i
t
n
u
s
r
a
u
s
n
e
s
s
)
1
E
i
i
t
t
q
r
a
o
u
y		 %
4
2
7		 %
4
2
1
N
l
i
i
d
i
t
t
e
q
u
y		 3
1		 3
7
f
F
h
l
(
J
M
h
)
t
r
e
e
c
a
s
o
w
a
n
u
a
r
y
o
a
r
c		 1
0		 (
)
1
1

1) Excluding dividend payment

Changes in net liquidity industrial business

– in billions of € –

Financing liabilities (nominal)

f
i
i
h
t
t
e
r
e
o
m
a
u
r
n
g
n
i
b
i
l
l
i
f
€
n
o
n
s
o
–
–		 M
3
1,
a
r
2
0
0
9		 Q
2
2
0
0
9		 Q
3
2
0
0
9		 Q
4
2
0
0
9
B
d
o
n
s		 3
2
9		 0
8		 4
5		 1.
3
B
k
l
a
n
o
a
n
s		 6
1
4		 3
1		 1.
3		 2
0
A
B
S		 1
4		 0
5		 0
1		 0
1
C
i
l
o
m
m
e
r
c
a
p
a
p
e
r		 1
5		 1.
2		 0
2		 0
1
A
d
i
t
t
c
c
o
n
e
p
o
s
s
u		 1
1
7		 6
5		 0
8		 0
6
O
h
t
e
r		 0
9		 0
1		 0
1		 0
1
T
l
t
o
a		 6
3
1		 1
1.
3		 6
9		 4
2

Increase of share capital by 10%

Aabar Investments of Abu Dhabi new major shareholder

  • Cash inflow of €1.95 billion will further improve Daimler's sound financial position
  • Cash inflow gives greater flexibility to invest in innovative automotive technologies during a period of economic uncertainty and macroeconomic instability
  • The investment complements a broad range of initiatives already undertaken by Daimler to react to the changing market environment

Countermeasures 2009 vs. actual 2008 totaling €4 bn

N
d
t
e
p
r
o
c
e
e
s		 S
f
a
e
g
•
S
l
t
e
e
c
•
h
l
d
o
a
2
0
%
i
E
l
a
r
e
•
O
i
t
p
m
•
f
t
e
a
u		 d
f
i
i
i
i
d
i
h
d
i
d
f
k
t
t
t
t
u
a
r
o
p
o
s
v
e
n
e
p
r
c
n
g
e
s
p
e
s
e
v
e
r
e
e
a
w
n
r
o
m
m
a
r
e
s
i
i
i
f
i
i
d
k
h
D
l
d
t
t
t
v
e
p
r
c
e
n
c
r
e
a
s
e
s
o
n
e
w
p
r
o
u
c
s
n
m
a
r
e
s
w
e
r
e
a
m
e
r
p
r
o
u
c
s
d
i
i
b
d
t
t
t
t
n
o
u
s
a
n
n
g
p
r
e
m
u
m
r
a
n
s
a
u
s
f
C
i
S.
k
l
h
E-
l
d
h
U
t
t
r
m
a
r
e
a
u
n
c
o
n
e
w
a
s
s
s
e
a
n
n
e
i
i
f
i
i
i
l
f
/
k
d
f
l
f
f
i
i
t
t
t
t
z
a
o
n
o
p
r
c
n
g
p
o
e
n
a
o
e
x
r
a
s
p
a
c
a
g
e
s
a
n
u
e
e
c
e
n
c
y
r
e
s
P
l
t
e
r
s
o
n
n
e
c
o
s
s		 S
h
t-
o
r
•
P
k
a
c
a
•
i
D
l
4
0
%
a
m
N
(
o
p
•
S
i
i
f
i
g
n
•		 i
k
i
d
i
d
h
f
i
t
t
t
t
m
e
w
o
r
n
p
r
o
u
c
o
n
a
n
o
e
r
u
n
c
o
n
s
f
d
i
h
E
l
C
i
l
d
l
b
f
t
t
t
g
e
o
m
e
a
s
u
r
e
s
a
g
r
e
e
w
m
p
o
y
e
e
o
u
n
c
o
r
e
u
c
e
a
o
r
c
o
s
s
o
A
G
e
r
i
d
)
i
i
d
h
i
i
d
l
t
t
t
t
t
a
o
v
e
r
m
e,
r
e
s
r
c
e
r
n
g
a
n
n
o
e
x
e
r
n
a
e
m
p
s
i
f
d
b
t
t
c
a
n
r
e
u
c
o
n
o
o
n
u
s
M
i
l
t
t
a
e
r
a
c
o
s
s		 A
h
i
c
e
•
(
e.
g.
%
A
l
1
5
c
c
e
•
A
l
l
k
t
a
•
f
i
n
a
n
c		 i
l
i
b
d
d
l
i
i
i
l
l
d-
k
i
t
t
n
g
o
e
r
p
r
c
e
s
a
s
e
o
n
e
c
n
n
g
r
a
m
a
e
r
a
o
r
m
a
r
e
p
r
c
e
s
v
w
w
w
l
)
t
s
e
e
d
i
l
i
f
d
l
t
t
t
t
t
e
e
m
p
e
m
e
n
a
o
n
o
m
o
e
s
r
a
e
r
a
u
g
y
i
l
d
i
h
d
h
l
i
'
t
t
t
t
t
t
e
n
m
e
a
s
r
e
s
m
p
e
m
e
n
e
n
a
a
a
o
e
s
n
o
o
e
r
s
r
e
c
s
p
p
e
r
s
u
w
y
v
u
i
l
b
i
l
i
i
t
a
c
a
p
a
e
s
F
h
h
d
t
u
r
e
r
o
v
e
r
e
a
s		 I
m
m
e
•
d
r
e
c
u
P
i
i
2
%
5
r
o
r
•
F
o
c
u
•
O
i
t
p
m
•		 d
i
d
d
i
(
l
i
l
t
t
t
t
t
t
a
e
e
p
e
n
s
e
c
a
n
s
p
e
n
n
g
s
o
p
e.
e
e
r
n
a
s
e
r
c
e
s,
c
o
n
s
a
n
s,
x
u
g.
x
v
u
i
f
l
)
t
t
t
o
n
o
r
a
e
c
o
s
s
v
i
i
f
i
j
(
i
j
)
t
t
t
t
t
t
t
s
s
z
a
o
n
o
n
v
e
m
e
n
p
r
o
e
c
e.
g.
m
a
n
e
n
a
n
c
e
p
r
o
e
c
s
i
f
i
f
f
f
k
b
d
(
d
i
i
i
)
t
t
t
t
t
s
n
g
o
m
a
r
e
n
g
g
e
e.
g.
r
e
c
o
n
o
e
p
e
n
s
e
s
o
r
a
o
m
o
e
a
r
s
u
u
x
u
v
i
i
f
d
i
i
l
(
b
b
d
l
i
i
i
)
t
t
t
t
t
t
t
z
a
o
n
o
n
o
n-
p
r
o
u
c
v
e
m
a
e
r
a
e.
g.
e
e
r
u
n
n
g,
r
e-
n
e
g
o
a
o
n
s

Consequent reduction of working capital to free up invested capital

F
i
i
h
d
d
i
t
n
s
e
g
o
o
s
n
e
n
o
r
v
y		 i
d
i
f
d
i
l
R
t
t
t
o
r
o
s
o
o
o
o
c
o
o
o
s
a
e
s
g
u
a
p
n
p
r
u
n
p
r
g
r
a
m
•
p
r
o
r
a
m
g
U
d
i
t
s
e
c
a
r
s
n
e
n
o
r
v
y		 S
i
i
f
i
i
f
i
i
Q
d
d
1
t
t
t
g
n
c
a
n
r
e
u
c
o
n
o
u
s
e
c
a
r
s
n
v
e
n
o
r
y
n
•
2
0
0
9
f
i
i
M
l
/
t
a
n
u
a
c
u
r
n
g
s
u
p
p
e
s
d
i
/
g
o
o
s
n
p
r
o
g
r
e
s
s
t
s
p
a
r
e
p
a
r
s		 f
M
b
b
h
k
b
d
d
t
a
n
a
g
e
m
e
n
e
n
c
m
a
r
a
s
e
a
y
s-
o
y
•
i
(
D
I
O
)
f
d
i
f
f
i
i
t
t
t
t
t
n
e
n
o
r
a
r
g
e
s
o
r
e
r
e
n
n
e
n
o
r
e
s
v
y
v
O
i
i
i
f
l
i
i
h
i
d
d
i
t
t
t
t
p
m
a
o
n
o
o
g
s
c
s
c
a
n
a
n
p
r
o
c
o
n
z
u
•
t
s
s
e
m
y
T
d
b
l
/
r
a
e
p
a
a
e
s
y
i
b
l
r
e
c
e
a
e
s
v		 f
j
"P
"
R
l
l
P
t
t
t
t-
t
o
o
u
o
c
o
r
p
o
r
a
e
p
r
o
e
c
r
o
c
u
r
e
m
e
n
o
a
y
•
-
C
i
i
f
h
t
t
t
t
s
o
n
s
e
q
u
e
n
a
r
m
o
n
z
a
o
n
o
p
a
y
m
e
n
e
r
m
•

Assumptions for automotive markets in 2009

Passenger vehicle markets

•Worldwide market decrease of 10% to 20% vs. 2008 expected

Truck markets

  • •Significant decreases of medium and heavy duty truck markets expected globally
  • •Western Europe -40% to -50%
  • •NAFTA -20% to -30%
  • •Japan -40% to -50%
  • •Market recovery not before end of 2009/beginning of 2010 expected

Van markets

•No significant improvement compared to the market decline in Q1 expected

Bus markets

  • •City bus market expected stable in 2009
  • •Continuous difficult coach market

Outlook 2009 for Daimler sales

Mercedes-Benz Cars

  • •Momentum from new E-Class and new GLK
  • •Overall sales reduction vs. 2008
  • •Market shares at least on prior year's level

Daimler Trucks

  • •Significantly lower unit sales expected
  • •Market shares should be maintained in the core markets

Mercedes-Benz Vans

•Significantly lower unit sales expected

Daimler Buses

•Unit sales expected to be below 2008, but on a solid level

Outlook 2009 for EBIT

Mercedes-Benz Cars

  • •Low point reached in Q1
  • •Positive earnings in H2 2009 expected due to cost measures and start of new E-Class

Daimler Trucks

•Further burdens on earnings expected for Q2 caused by sharp decline of demand worldwide

Mercedes-Benz Vans

•Further burdens on earnings expected for Q2 caused by sharp decline of demand worldwide

Daimler Buses

•Positive EBIT expected

Daimler Financial Services

  • •Significantly lower earnings expected due to substantially higher cost of risk
  • •Low point reached in Q1

Daimler Group

  • • Group-wide measures initiated in order to reduce or avoid expenses and cash outflows by €4 bn
  • • Gradual improvement of operational earnings during the course of the year, but EBIT in Q2 2009 expected to be significantly negative

Conference Call Q1 2009 Results

Questions & Answers

Special items affecting EBIT

i
i
i
f
l
l
€
n
m
o
n
s
o
–
–		 Q
1
t
t
s
u
a
r
e
r
2
0
0
8		 2
0
0
9
D
i
l
T
k
a
m
e
r
r
c
s
u
R
i
i
i
f
D
i
l
T
k
N
h
A
i
t
t
e
p
o
s
o
n
n
o
a
m
e
r
r
c
s
o
r
m
e
r
c
a
g
u		 – (
)
4
5
i
l
i
i
R
t
e
c
o
n
c
a
o
n
S
l
f
l
(
P
d
P
l
)
t
t
t
t
a
e
o
r
e
a
e
s
a
e
o
s
a
m
e
r
a
z		 4
4
9		 –
T
f
f
h
i
E
A
D
S
r
a
n
s
e
r
o
s
a
r
e
s
n		 1
0
2		 –
E
i
l
C
h
l
t
t
q
r
e
s
r
s
e
r
u
y
u
y		 (
)
3
4
0		 –
G
i
(
)
f
C
/
L
h
l
l
d
t
t
a
n
s
o
s
s
e
s
r
o
m
r
y
s
e
r-
r
e
a
e
a
s
s
e
s		 (
)
1
5
1		 4
0
N
d
l
t
e
w
m
a
n
a
g
e
m
e
n
m
o
e		 (
)
4
5		 –

Liquidity

i
i
l
l
i
f
€
n
m
o
n
s
o
–
–		 D
3
1,
2
0
0
8
e
c.		 M
a		 h
3
1,
2
0
r
c		 0
9
G
r
o
u
p		 I
B		 S
F		 G
r
o
u
p		 I
B		 S
F
C
h
d
h
a
s
a
n
c
a
s
i
l
t
e
q
u
v
a
e
n
s		 6,
9
1
2		 4,
6
6
4		 2,
2
4
8		 1
3,
3
0
5		 7,
2
4
1		 6,
0
6
4
M
k
b
l
i
i
t
t
a
r
e
a
e
s
e
c
u
r
e
s
d
d
i
t
t
a
n
e
r
m
e
p
o
s
s		 1,
0
9
1		 9
9
5		 1
3
2		 3,
3
6
3		 2,
8
0
5		 8
5
5
G
i
i
i
l
d
t
r
o
s
s
q
u
y		 8,
0
0
3		 5,
6
2
3		 2,
3
8
0		 1
6,
6
6
8		 1
0,
0
4
6		 6,
6
2
2
F
i
i
l
i
b
i
l
i
i
t
n
a
n
c
n
g
a
e
s
(
i
l
)
n
o
m
n
a		 (
6,
0
6
)
5
7		 (
2,
)
5
1
7		 (
8
9
)
5
4,
1		 (
6
3,
0
6
6
)		 (
6,
3
0
3
)		 (
6,
6
3
)
5
7
----------------------------------------------------------------------------------------------------------------------------------------------- ---------------------------------- ----------------------------- ---------------------------------- ---------------------------------- ----------------------------- ----------------------------------
N
l
i
i
d
i
t
t
e
q
u
y		 (
)
4
8,
7
0
3		 3,
1
0
6		 (
)
5
1,
8
0
9		 (
)
4
6,
3
9
8		 3,
7
4
3		 (
)
5
0,
1
4
1
---------------------------------------------------------- ---------------------------------- ------------------- ---------------------------------- ---------------------------------- ------------------- ----------------------------------

Funding status of pension and healthcare benefits

– continuing operations –

i
i
i
f
b
l
l
€
n
o
n
s
o
–
–		 D
3
2
0
0
8
1
e
c
,		 M
3
2
0
0
9
1
a
r.
,
i
f
i
P
b
t
e
n
s
o
n
e
n
e
s
B
f
i
b
l
i
i
t
t
e
n
e
o
g
a
o
n
s		 (
)
1
5
0		 (
)
1
5
1
P
l
t
a
n
a
s
s
e
s		 0
1
1		 9
6
F
d
d
t
t
u
n
e
s
a
u
s		 (
4
9
)		 (
)
5
5
f
i
H
l
h
b
t
t
s
e
a
c
a
r
e
e
n
e
f
i
b
l
i
i
B
t
t
e
n
e
o
a
o
n
s
g		 (
0
)
1		 (
1
1
)
P
l
t
a
n
a
s
s
e
s		 0
0		 0
1
i
b
d
i
A
R
M
t
t
e
m
r
s
e
m
e
n
e
c
a
r
e
c
u		 0
1		 0
1
F
d
d
t
t
u
n
e
s
a
u
s		 (
0
9
)		 (
0
9
)

Research & development costs

Disclaimer

This document contains forward-looking statements that reflect our current views about future events. The words "anticipate," "assume," "believe," "estimate," "expect," "intend," "may," "plan," "project," "should" and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including a lack of improvement or a further deterioration of global economic conditions; a continuation or worsening of the turmoil in the credit and financial markets, which could result in ongoing high borrowing costs or limit our funding flexibility; changes in currency exchange rates and interest rates; the introduction of competing, fuel efficient products and the possible lack of acceptance of our products or services which may limit our ability to adequately utilize our production capacities or raise prices; price increases in fuel, raw materials, and precious metals; disruption of production due to shortages of materials, labor strikes, or supplier insolvencies; a further decline in resale prices of used vehicles; the effective implementation of cost reduction and efficiency optimization programs at all of our segments, including the repositioning of our truck activities in the NAFTA region; the business outlook of companies in which we hold an equity interest, most notably EADS; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety, the resolution of pending governmental investigations and the outcome of pending or threatened future legal proceedings; and other risks and uncertainties, some of which we describe under the heading "Risk Report" in Daimler's most recent Annual Report and under the headings "Risk Factors" and "Legal Proceedings" in Daimler's most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission. If any of these risks and uncertainties materialize, or if the assumptions underlying any of our forward-looking statements prove incorrect, then our 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. Any forward-looking statement speaks only as of the date on which it is made.

More from Mercedes-Benz AG

Transaction in Own Shares 2026
May 26
Major Shareholding Notification 2026
May 21
Major Shareholding Notification 2026
May 19
Transaction in Own Shares 2026
May 18
Transaction in Own Shares 2026
May 11
Interim / Quarterly Report 2026
May 5
Transaction in Own Shares 2026
May 4
Annual Report 2026
Apr 28
Transaction in Own Shares 2026
Apr 27
Transaction in Own Shares 2026
Apr 20
View all filings →