Cookie Consent by Free Privacy Policy website Daimler Truck is ready for stock market listing on December 10th – unlocking its full potential
november 11, 2021 - Daimler

Daimler Truck is ready for stock market listing on December 10th – unlocking its full potential

  • Daimler #truck hosts Capital Market Day for investors and analysts, laying out ambition to lift performance and enhance profitability for each segment
  • Targeting double digit margins (Return on Sales Industrial Business, adjusted) by 2025 in favorable market conditions
  • Profitability improvement already under way: 2021 Return on Sales (Industrial Business, adjusted) expected to be 6% - 8% despite semi-conductor shortages, further profitability improvement targeted for 2022
  • Robust balance sheet, strong investment grade credit rating and strict discipline on capex and R&D underpin commitment to cash generation
  • Favorable shareholder return policy with 40% dividend payout ratio
  • Preparation for stock market listing on December 10th on track; DAX qualification expected in Q1 2022

Stuttgart – Prior to the intended stock market listing in December 2021, #daimler #truck hosts its Capital Market Day, revealing profitability ambitions for each segment and laser-focused financial discipline. In addition #daimler Truck’s management board led by CEO Martin Daum presents further strategic and technological objectives.

Daimler #truck is gaining momentum on its way to its intended stock market listing on December 10th. The world's largest commercial vehicle manufacturer with global reach specified its financial ambitions aiming at lifting performance and enhancing profitability for each segment. #daimler #truck is strictly and constantly focusing on improving profitability. Based on its proven cash generation credentials and solid balance sheet, the Group has received solid investment grade credit ratings. Following the overwhelmingly supportive general meeting, the company is planning its listing on the Frankfurt stock exchange for December 10th. Subsequently, #daimler #truck expects to qualify for the DAX – the group of Germany’s most valuable listed companies – in the first quarter of 2022.

“We have a clear ambition for #daimler #truck: We’re committed to achieving higher profitability and to going full speed to win the race to zero emissions. We can’t wait to make our company even stronger. Ahead of the planned public listing we are ready for independence and for unlocking our full value potential”, stated Martin Daum, CEO of #daimler #truck AG.

Daimler #truck details financial ambitions for each segment

At the Capital Markets Day, #daimler #truck CFO Jochen Goetz reiterated the Group’s commitment to improve profitability and create value for shareholders. #daimler Truck’s ambition is to achieve more than 10% Return on Sales (Industrial Business, adjusted) by 2025, assuming strong market conditions. Based on its “every segment must deliver” approach, #daimler Truck’s top management today announced margin range ambitions for its individual segments reflecting different macroeconomic conditions. In a 2025 scenario with strong market conditions, #daimler Trucks North America (DTNA) is aiming for a 12% adjusted Return on Sales, Mercedes-Benz for 10%, #truck Asia (TA) aims for an adjusted 9% Return on Sales and #daimler Buses for 7.5%. With #daimler Truck’s new Financial Services business the company is aiming for 14% adjusted Return on Equity. The company is working to improve resilience by significantly lowering the break-even point, thus to be able to achieve at least an adjusted 6% to 7% Return on Sales in the Industrial Business in 2025, even in adverse market conditions.

Daimler Truck’s focus on resetting profitability is already gaining momentum. Consequently, 2021 adjusted Return on Sales is expected to be between 6% and 8%, despite semi-conductor shortages and rising raw material prices. In the course of the Capital Markets Day, the company also announced that given the progress already made, #daimler #truck aims to achieve its target to reduce fixed cost by 15% compared to 2019 as early as 2023 - two years earlier than announced in May at the Strategy Day. For 2022 the Group assumes an adjusted Return on Sales of the Industrial Business between 7% and 9%.

“By maintaining discipline on capital expenditures, optimizing our capital allocation and improving our profitability we aim to continue generating strong free cash flows,” said Jochen Goetz. “This will be a strong basis for investments in new technologies and strengthening our balance sheet even further. At the same time we are targeting for a dividend payout ratio policy of 40%.”

New partnerships for Technology and Sustainability

Andreas Gorbach, CTO and Head of the #truck Technology Group, further elaborated on #daimler Truck's technology strategy which is based on three pillars. Firstly, investments for the conventional ICE combustion engine in the powertrain will be further reduced. Besides the successful partnering with Cummins for medium duty engines, #daimler #truck Group also seeks partnerships for heavy duty engines to share the required investments to implement the upcoming emission regulations. Secondly, the majority of R&D spending is to be redirected to zero-emission vehicle (ZEV) technologies by 2025. Here, the company is focusing on both battery electric vehicles (BEV) and hydrogen-based fuel cell electric vehicles (FCEV). Regarding #daimler Truck’s goal to establish a network of 150 hydrogen refueling stations and 5,000 heavy-duty hydrogen trucks by 2030, in addition to the recently announced collaboration with Shell, the company announced two additional partnerships: Together with BP, #daimler #truck strives to accelerate the H2 infrastructure development in the UK. In another partnership with Total Energies, the company is likewise aiming to enhance the H2 infrastructure in the major transport markets of France and Benelux. Thirdly, #daimler #truck will push software development with the next evolution of the mechatronic architecture and a truck-dedicated Operating System.

Further information in the press release to download