– First trading day for Daimler Truck Holding AG (“Daimler Truck”) on the Frankfurt Stock Exchange, stock exchange symbol DTG, WKN number DTR0CK
– Daimler Truck takes the path of unrestricted entrepreneurial independence
– Investors can now invest in one of the world’s largest commercial vehicle manufacturers
– Daimler Truck’s ambition is to increase the performance and profitability of its business segments and to master the transformation towards CO2-neutral transport
– DAX qualification expected for Q1 2022
Trading on the Frankfurt Stock Exchange marks the start of a new era for Daimler Truck. Following the spin-off from Daimler AG, first day of listing symbolizes Daimler Truck’s embarkment into unrestricted entrepreneurial independence. This is probably the most important milestone in the company’s history. In the future, investors will have the opportunity to invest directly in the shares of one of the world’s largest commercial vehicle manufacturers. Daimler Truck considers itself well positioned for the new era of independence. In preparation for the spin-off, the company has specified its financial ambitions to increase the performance and profitability of its segments. Daimler Truck is consistently and continuously focusing on improving profitability in order to lead the industry on the road to CO2-neutral transport. Based on its proven cash generation and strong balance sheet, Daimler Truck has received solid investment grade credit ratings. Daimler Truck expects its shares to be listed in the Regulated Market of the Frankfurt Stock Exchange in the DAX index, which has been expanded to 40 members, at the next possible date – probably in the first quarter of 2022.
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“Today is a historic day for Daimler Truck: For 125 years, our truck and bus business was part of the Daimler Group – now we are becoming an independent, listed company. Making this possible organizationally was a tour de force. My thanks therefore go to our entire team for their unparalleled commitment over the past weeks and months. So in this respect, today is a finish line for us. We have worked hard to get there. However, this 10th of December 2021 is above all the exact opposite, namely a starting line. Because now things are really getting started for Daimler Truck. Now we are looking ahead with courage and confidence. Now we are looking forward to use the creative opportunities as an independent company with our great
global team – for even more entrepreneurial success in the future. Everyone should benefit from this – our workforce, our customers and, of course, our shareholders,” said Martin Daum, Chairman of the Board of Management of Daimler Truck Holding AG in the stock exchange hall in Frankfurt.
Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG, said: “Today marks the beginning of a new era for us. We are fully focused on building the world’s most desirable cars and leading the way in electromobility and vehicle software. At the same time, the listing of Daimler Truck turns one success story into two. The historic reorganization to two “pure-play” companies is intended to unleash the full potential of both companies and create decisive added value for all sides. We wish Daimler Truck a successful future and look forward to the beginning of a new era with confidence.”
Jochen Goetz, CFO of Daimler Truck Holding AG, said: “Daimler Truck is also financially in a very good starting position for our entrepreneurial independence. Our balance sheet is rock solid and we have already proven in the past how reliably we can generate an attractive cash flow. We are now putting all our energy into fully exploiting our earnings potential and driving forward the transformation to emission-free transport in a focused manner. We want to create sustainable value for our investors as well.”
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Leading company in the transport industry – for 125 years
The founders of Daimler Truck started the modern transportation industry with their trucks and buses 125 years ago. Today, the company is one of the largest commercial vehicle manufacturers with a global reach, with over 40 production facilities worldwide and more than 100,000 employees. Daimler Truck unites seven brands under its umbrella: BharatBenz, Freightliner, FUSO, Mercedes-Benz, Setra, Thomas Built Buses and Western Star. The company aims to make sustainable transport a success, with strong technological expertise and a view to the needs of its customers.
To this end, Daimler Truck aims to achieve a double-digit return on sales in its industrial business by 2025, assuming strong market conditions. Daimler Truck’s business activities are structured into five reporting segments for which the company has formulated concrete return targets for strong market conditions. For example, Daimler Truck is specifically targeting an adjusted return on sales of 12% for the Trucks North America (TN) segment in the event of strong market conditions. For the Mercedes-Benz (MB) segment, the target is 10% adjusted return on sales, for the Trucks Asia (TA) segment 9% and for the Daimler Buses (DB) segment 7.5%. With the new Financial Services business of Daimler Truck (DTFS) as a fifth segment, the company is targeting an adjusted return on equity of 14%.
As Daimler Truck announced at its Capital Market Day in November, the focus on increasing profitability is having an incremental effect already. In line with this, the company expects an adjusted return on sales (RoS) in the industrial business of between 6% and 8% for 2021 – despite semiconductor shortages and rising raw material prices. Based on the progress already made, Daimler Truck expects to achieve the 15% reduction in fixed costs in its industrial business (compared to 2019) as early as 2023, two years earlier than announced at the Strategy Day in May 2021. For 2022, the company expects an adjusted return on sales of the industrial business between 7% and 9%. The investment grade ratings of the rating agencies in October were correspondingly positive. S&P Global Ratings awarded a first issuer rating of BBB+ (outlook stable), Moody’s a first issuer rating of A3 (outlook stable).
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