Daimler Confident for 2021

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Daimler AG today reported its results for the fiscal year 2020 ended December 31, 2020. In a challenging environment due to the COVID-19 pandemic, the Group’s total unit sales of passenger cars and commercial vehicles decreased by 15%, to 2.84 million (2019: 3.34 million).

Revenue was €154.3 billion (2019: €172.7 billion), a reduction of 11%. Due to extensive cost and cash preservation measures and strong performances across all divisions, EBIT of the Daimler Group increased by 53% to €6.6 billion (2019: €4.3 billion). Adjusted EBIT, reflecting the underlying business, was €8.6 billion (2019: €10.3 billion).

Daimler Confident for 2021
Daimler AG – Annual Results Conference 2020, Stuttgart
Daimler AG – Annual Results Conference 2020, Stuttgart

The figures are based on audited financial statements. The reporting structure and previous year’s figures have been adjusted to reflect the newly formed Group divisions.

“The year 2020 was a stress test for just about every company in almost every industry. The Daimler team mastered this test very well. Our products continue to be in great demand across all major markets and divisions.

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With the rapid growth in our xEV sales and the introduction of new products and technologies, we have also taken important steps in terms of electrification and digitalization. Our financial results are significantly above market expectations reflecting substantial progress on cost-efficiencies.

In addition, we have achieved a significant margin improvement based on strong product mix and pricing – especially in the second half of the year.

Daimler Confident for 2021
Daimler AG – Annual Results Conference 2020, Stuttgart, (v.l.n.r.) Ola Källenius, Vorstandsvorsitzender der Daimler AG und Mercedes-Benz AG, Harald Wilhelm, Vorstandsmitglied der Daimler AG verantwortlich für Finanzen & Controlling und Daimler Mobility und Mercdes-Benz AG sowie Martin Daum, Vorstandsmitglied der Daimler AG & Vorstandsvorsitzender der Daimler Truck AG
(f.l.t.r.) Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG, Harald Wilhelm, Member of the Board of Management of Daimler AG responsible for Finance & Controlling and Daimler Mobility and Mercedes-Benz AG as well as Martin Daum, Member of the Board of Management of Daimler AG and Chairman of the Board of Management of Daimler Truck AG

We proved our ability to generate substantial cash flow and to drive the ongoing transformation on our own – even under the adverse circumstances of a pandemic,” said Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG.

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In 2020, net profit improved to €4.0 billion (2019: €2.7 billion). Net profit attributable to the shareholders of Daimler AG amounted to €3.6 billion (2019: €2.4 billion), leading to an increase in earnings per share to €3.39 (2019: €2.22).

At the Annual General Meeting on March 31, 2021, the Board of Management and the Supervisory Board will propose a dividend of €1.35 per share (2019: €0.90). The total payout will therefore amount to €1.4 billion (2019: €1.0 billion).

“We are confident that we can maintain positive momentum if current market conditions prevail, accelerating our strategic plans and further enhancing our financial robustness.

The intended separation of our industrial businesses is designed to unlock the full potential for Mercedes-Benz as the world’s pre-eminent luxury car business, committed to leading in electric drive and car software, and Daimler Truck as the world’s largest truck and bus producer and technology leader,” said Källenius.

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Daimler plans to spin-off and list Daimler Truck. It is intended that a significant majority stake in Daimler Truck will be distributed to Daimler shareholders.

Daimler Truck will have fully independent management, stand-alone corporate governance including an independent Chairman of the Supervisory Board, and is targeted to qualify for listing on Germany’s blue-chip DAX index.

The transaction and the listing of Daimler Truck on the Frankfurt stock exchange are expected to be completed before year-end 2021. In addition, it is also Daimler’s intention to rename itself as Mercedes-Benz at the appropriate time.

All further details about the intended spin-off will be presented to shareholders at an extraordinary shareholder meeting in Q3 2021 in order to obtain their mandatory approval for the plan.

Investments, free cash flow and liquidity

In 2020, at the Group, investments in property, plant and equipment decreased by 20% to €5.7 billion (2019: €7.2 billion). Research and development expenditure was €8.6 billion (2019: €9.7 billion) – a reduction of 11%.

The free cash flow of the industrial business amounted to €8.3 billion (2019: €1.4 billion). The adjusted free cash flow of the industrial business was €9.2 billion (2019: €2.7 billion). The net liquidity of the industrial business improved to €17.9 billion (end of Q3 2020: €13.1 billion/end of 2019: €11.0 billion).

Divisional results

Sales by the Mercedes-Benz Cars & Vans division decreased by 13% to 2,461,800 vehicles (2019: 2,823,800). Revenue was €98.6 billion (2019: €106.9 billion). EBIT amounted to €5,172 million (2019: minus €109 million) and return on sales was 5.2% (2019: minus 0.1%).

Adjusted EBIT was €6,802 million (2019: €6,151 million) and adjusted return on sales was 6.9% (2019: 5.8%). Cash flow before interest and taxes (CFBIT) was €7,048 million (2019: €598 million). Adjusted CFBIT amounted to €7,917 million (2019: €1,939 million). The adjusted cash conversion rate (CCR) was 1.2 (2019: 0.3).

Read Also:  Unit Sales By Daimler Trucks In 2019 Slightly Down On Previous Year, As Expected

Sales by Mercedes-Benz Cars slipped by 13% to 2,087,200 vehicles (2019: 2,385,400). Mercedes-Benz Vans’ sales were down 15% to 374,600 (2019: 438,300).

In 2020, the average CO2 emissions of the new car fleet in Europe (EU28 – European Union, United Kingdom, Norway and Iceland) are expected to reach 104 g/km (2019: 137 g/km NEFZ, including vans registered as passenger cars). With this, the 2020 CO2 targets in the European Union have been met.

Daimler Trucks & Buses division showed a decrease in unit sales of 27% to 378,500 vehicles (2019: 521,100).

Revenue was €34.7 billion (2019: €44.4 billion). EBIT amounted to €525 million (2019: €2,672 million) and return on sales was 1.5% (2019: 6.0%). Adjusted EBIT was €678 million (2019: €2,672 million) and adjusted return on sales was 2.0% (2019: 6.0%). Cash flow before interest and taxes (CFBIT) was €2,513 million (2019: €2,654 million).

Adjusted CFBIT came in at €2,513 million (2019: €2,654 million). The adjusted cash conversion rate (CCR) was 3.7 (2019: 1.0). Sales by Daimler Trucks fell by 27% to 358,300 vehicles (2019: 488,500). Daimler Buses sold 20,100 vehicles (2019: 32,600) – a decrease of 38%.

At Daimler Mobility, new business decreased by 9% to €67.8 billion (2019: €74.4 billion). Contract volume was €150.6 billion (end of 2019: €162.8 billion). Revenue was €27.7 billion (2019: €28.6 billion).

The division’s EBIT amounted to €1,436 million (2019: €2,140 million). At 9.8%, return on equity was lower than the figure of 15.3% in the prior year. Adjusted EBIT was €1,595 million (2019: €1,827 million) and adjusted return on equity was 10.9% (2019: 13.1%).

Outlook for Daimler and divisions

With the expected rise in availability of effective vaccines to combat the COVID-19 virus and in the absence of further unexpected pandemic-related setbacks, Daimler assumes that the global economy will recover strongly in 2021.

Based on the expected market development and the current assessments of the divisions, Daimler anticipates Group sales, revenues and EBIT in 2021 to be significantly above the prior-year’s level.

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.

The divisions expect the following adjusted returns in the year 2021:

  • Mercedes-Benz Cars & Vans: adjusted return on sales of 8 – 10%
  • Daimler Trucks & Buses: adjusted return on sales of 6 – 7%
  • Daimler Mobility: adjusted return on equity of 12 – 13%.

The business plan of Daimler covers the full year 2021 and is based on the existing Group structure, including Daimler Trucks & Buses. The spin-off of Daimler Truck, including significant parts of the related financial services business, will be examined before the end of 2021.

Before the spin-off, Daimler will reclassify Daimler Truck as discontinued operations. The expected considerable positive effects in the second half of the year cannot be reliably determined at present.

The adjusted cash conversion rate (ratio of cash flow to EBIT) for the Mercedes-Benz Cars & Vans division in 2021 is expected to be between 0.7 and 0.9 and for Daimler Trucks & Buses between 0.8 and 1.0.

After exceptionally strong free cash flow in 2020 triggered by various successful measures to reduce costs and safeguard liquidity in the wake of the COVID-19 pandemic, Daimler for 2021 anticipates a healthy free cash flow of the industrial business on a normalized level. CFBIT adjusted from the industrial divisions is expected to be on the prior-year-level.

However, free cash flow adjusted includes higher tax payments and therefore will be below last year’s figure. Additionally, the reported free cash flow includes the payments agreed in September 2020 in the context of the settlement with the US regulators in civil law proceedings relating to diesel emissions.

Therefore, Daimler expects reported free cash flow to be significantly below the 2020’s figure.

In 2021, Mercedes-Benz Cars will push the xEV strategy forward and introduce four all-new EV models with the EQS, EQA, EQB and EQE as well as increase the proportion of PHEVs. Therefore, the division expects European passenger car COemissions to be significantly below the previous year’s number.

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Latest News

Kinaxis Named a Leader in the 2021 Gartner Magic Quadrant for Supply Chain Planning Solutions Report

Kinaxis evaluated on both execution and vision with furthest placement for completeness of vision in the Leaders quadrant

 

OTTAWA, CANADA - Media OutReach - 4 March 2021 - Kinaxis® Inc. (TSX:KXS), the authority in driving agility for fast, confident decision-making in an unpredictable world, today announced it has been named a Leader in the 2021 Gartner Magic Quadrant for Supply Chain Planning Solutions. The company is recognized for both the ability to execute and its completeness of vision. Kinaxis is positioned furthest on the Completeness of Vision axis amongst those in the Leaders quadrant 1.

A complimentary copy of the report can be downloaded from Kinaxis. This is the seventh consecutive time Kinaxis has been named a Leader in a Gartner Magic Quadrant related to supply chain planning 1 .

"In the face of the unprecedented level of disruption over the past year, corporate supply chains have never been more relevant and doing nothing to improve planning has become the biggest risk. Supply chain leaders at companies of all sizes have recognized a need for a transformational shift to agility and resiliency based on a new planning technique -- concurrent planning, that only Kinaxis can provide," said John Sicard, CEO of Kinaxis. "Kinaxis uniquely combines AI, analytics and human intelligence to empower innovative manufacturers to eliminate functional silos and cost-effectively optimize the potential of their supply chains in just a few weeks."

Continued Sicard, "We believe we are the leading innovator based on vision in the market and are thrilled with our positioning for our current, proven RapidResponse platform. Kinaxis takes pride in our talented team, the collaborative relationships we have with our customer and partner community and helping advance the craft of supply chain planning for the benefit of the planet."

Top-tier manufacturers around the world use Kinaxis in the aerospace and defense, automotive, consumer products, high-tech and electronics, industrial, life sciences and retail industries, including Unilever, Schneider Electric, Flex, Merck, Technicolor, Alstom and Honda, and many others.

"Schneider Electric's supply chain digitalization journey, including our work with Kinaxis, has allowed us to function as a truly global enterprise," said Mourad Tamoud, Chief Supply Chain Officer at Schneider Electric. "Through our engagement with Kinaxis, we have found them to be industry-leading, and the partnership has enabled us to have greater transparency, wider collaboration and increasingly autonomous high-quality decision-making throughout the organization."

Kinaxis RapidResponse® is a cloud-based software-as-a-service (SaaS) platform purpose-built for planning, leveraging patented in-memory database technology and always-on algorithms. Combined with Kinaxis' unique concurrent planning technique and AI, RapidResponse helps global manufacturers gain agile and resilient supply chains. The Kinaxis suite of ready-to-deploy planning applications (S&OP / IBP, Demand, Supply, Command & Control Center, Inventory, Live Lens Insights) is optimized with industry best practice processes and robust analytics that are synchronized across long and short-term planning and across the end-to-end network from customers to suppliers. The RapidResponse platform is uniquely extensible to build, access or connect to custom applications, algorithms and external systems across the supply network ecosystem.

Kinaxis helps customers accelerate value realization with multiple deployment options to go-live in as little as six weeks. These seamlessly expandable options allow companies to start now and focus on the most important initiatives. All based on RapidResponse, these options can grow over time to meet budget, team and change management needs along the digital transformation journey.

"Gartner defines a supply chain planning (SCP) solution as a platform that provides technology support which allows a company to manage, link, align, collaborate and share its planning data across an extended supply chain. It supports demand creation through to the detailed supply-side response and from strategic planning through tactical-level planning. An SCP solution is the planning decision repository for a defined end-to-end supply chain and is the environment in which end-to-end integrated supply chains are managed. It establishes a single version of the truth for the plan data and decisions, regardless of the underlying execution technology environment." 1

The SCP market was worth $5.2 billion in 2019 and is projected to grow at a five-year compound annual growth rate (CAGR) of 7.5% according to the Gartner Forecast: Enterprise Application Software, Worldwide, 2018-2024, 4Q20 Update. 2

According to Gartner, "Leaders demonstrate strong SCP solution vision and execution capabilities. They have a broad, deep and differentiated functionality that addresses a broad range of user requirements. Their coverage across the three categories of planning capability -- configure, optimize and respond -- is good enough, with a good balance across the categories now and/or planned for the future. They have a reasonable range of features to support a user's maturity journey. Their visions for supporting the three paradigms of SCP -- algorithmic SCP, digital supply chain planning and resilient planning -- align with Gartner's vision. When these three paradigms are blended together, they build the foundation to support a Level 5 SCP environment. Leaders anticipate where customer demands and markets are moving and identify how innovative technologies can be applied to planning applications. They have strategies to support these emerging requirements to build a future-proof SCP solution. Because leaders are well-established in leading-edge complex user environments, they benefit from a user community that helps them remain in the forefront of emerging needs." 1

For further information, you can access a complimentary copy of the full Magic Quadrant for Supply Chain Planning Solutions report here.

1 Gartner, Magic Quadrant for Supply Chain Planning Solutions, A. Salley, T. Payne, P. Orup Lund, Feb. 22, 2021

Gartner, Magic Quadrant for Sales and Operations Planning System of Differentiation, T. Payne et al, May 7, 2019; Gartner, Magic Quadrant for Supply Chain Planning System of Record, Payne, Tim, Pradhan, Alex, & Salley, Amber, 21 August 2018

2 Gartner, Forecast: Enterprise Application Software, Worldwide, 2018-2024, 4Q20 Update, Amarendra, N. Gupta, B. Abbabatulla, A. Woodward, C. Pang, C. Roth, E. Hunter, J. Hare, K. Quinn, J. Poulter, Y. Dharmasthira, J. Kostoulas, December 22, 2020

Gartner Disclaimer:

Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.


About Kinaxis Inc.

Everyday volatility and uncertainty demand quick action. Kinaxis® delivers the agility to make fast, confident decisions across integrated business planning and the digital supply chain. People can plan better, live better and change the world. Trusted by innovative brands, we combine human intelligence with AI and concurrent planning to help companies plan for any future, monitor risks and opportunities and respond at the pace of change. Powered by an extensible, cloud-based platform, Kinaxis delivers industry-proven applications so everyone can know sooner, act faster and remove waste. For more Kinaxis news, visit Kinaxis.com or follow us on LinkedIn or Twitter.

Forward-Looking Statements

Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include statements as to Kinaxis' growth opportunities and the potential benefits of, and demand for, Kinaxis' products and services. These statements are subject to certain assumptions, risks and uncertainties, including our view of the relative position of Kinaxis' products and services compared to competitive offerings in the industry. Readers are cautioned not to place undue reliance on such statements. Kinaxis' actual results, performance, achievements and developments may differ materially from the results, performance, achievements or developments expressed or implied by such statements. Risk factors that may cause the actual results, performance, achievements or developments of Kinaxis to differ materially from the results, performance, achievements or developments expressed or implied by such statements can be found in the public documents filed by Kinaxis with Canadian securities regulatory authorities. Kinaxis assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.

Daimler Confident for 2021 - Brand Spur
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