Annual Report 2017

Daimler Financial Services

The number of cars and commercial vehicles financed or leased by Daimler Financial Services reached a new all-time high of more than 4.8 million at the end of financial year 2017. Record figures were also posted for new business and contract volume, and EBIT set a new benchmark as well. The combination of sales financing with brokered automotive insurance policies continued to gain importance. The division’s range of innovative mobility services was further expanded. Today, services such as car2go, moovel and mytaxi are used by 17.8 million customers all over the world. In 2017, the digitization of financial services was also successfully expanded with the Mercedes Pay electronic payment system and the AutoGravity financing app.

Half of all Daimler vehicles delivered to customers are financed or leased

Daimler Financial Services concluded 1.9 million new financing and leasing contracts worth a total of €70.7 billion in 2017. The total value of all new contracts rose by 14 % compared with the prior year. About half of all new-vehicle sales by our automotive divisions in 2017 were supported by sales financing from Daimler Financial Services. A total of more than 4.8 million financed or leased vehicles were on the books at the end of 2017 with a total contract volume of €139.9 billion; this represents a 6 % increase compared with the end of 2016. Adjusted for exchange-rate effects, contract volume increased by 12 %. EBIT rose to a new high of €1,970 million (2016: €1,739 million). (See table C.09)

C.09 Daimler Financial Services

  2017 2016 17/16
€ amounts in millions     % change
       
Revenue 23,775 20,660 +15
EBIT 1,970 1,739 +13
New business 70,721 61,810 +14
Contract volume 139,907 132,565 +6
Investment in property, plant and equipment 43 37 +16
Employees (December 31) 13,012 12,062 +8

Significant increase in new business in Europe

During the year under review, Daimler Financial Services concluded 967,600 new financing and leasing contracts worth €31.1 billion in the Europe region (+15 %). Especially high rates of growth were recorded in Russia (+51 %), Italy (+29 %) and Spain (+28 %). In Germany, Mercedes-Benz Bank’s new business increased by 9 % to €12.9 billion. Daimler Financial Services’ total contract volume in Europe rose by 12 % to €59.7 billion.

The Americas: new business at prior-year level

Daimler Financial Services brokered 444,600 new financing and leasing contracts worth €21.8 billion in the Americas region in 2017 (+1 %). The volume of new business developed very well in Brazil (+28 %) and Canada (+8 %). Contract volume in the Americas region of €50.7 billion at December 31, 2017 was lower than at the end of 2016 (-6 %). Adjusted for exchange-rate effects, contract volume increased by 6 %.

Strong growth in Africa & Asia-Pacific region and China

New business in the Africa & Asia-Pacific region (excluding China) increased sharply once again compared with the prior year, by 16 % to €8.4 billion. Business growth was especially strong in South Korea (+30 %) and Japan (+19 %). At the end of 2017, contract volume in the Africa & Asia-Pacific region (excluding China) totaled €17.2 billion, representing a 7 % increase over the previous year. New business also increased significantly in China: 300,300 new leasing and financing contracts worth €9.5 billion were concluded in 2017 (+56 %). At the end of 2017, contract volume in China amounted to €12.2 billion – an increase of 39 % compared with the end of 2016.

Further growth in the insurance business

Daimler Financial Services brokered approximately 2.1 million insurance policies in 2017 — an increase of 20 % compared with the prior year. A new telematics-based insurance rate was developed in 2017 and successfully launched in France, Belgium and Germany. Since it started operations in 2016 the warranty insurer Mercedes-Benz Versicherung AG, has established itself in the German market very successfully and continued to grow in financial year 2017.

Mobility services on the right track

Daimler Financial Services once again expanded its range of innovative mobility services in 2017. The number of registered users of the car2go car-sharing service increased to more than 3.0 million, enabling car2go to maintain its position as the world’s leading flexible car-sharing company.

Using Your Smartphone to Begin a Rental

In 2017, car2go upgraded its worldwide fleets with new vehicle models. In Europe and North America, it added more Mercedes-Benz vehicles to its fleets; in Stuttgart, the fleet was supplemented with B-Class electric drive vehicles; and in Italy, the fleets were augmented for the first time with smart forfour cars. At the same time, the car2go services were technically refined and simplified for the customers. Thanks to the introduction of online validation of driver’s licenses, customers in all markets can now register online from start to finish and use car2go services immediately. In addition, with the option of hourly packages, car2go is offering its customers affordable and stress-free long-term rental conditions.

The moovel app also underwent further development in 2017. moovel enables customers in Germany to compare various mobility and transport-system options and then choose the best way to get from point A to point B.

moovel Group company movie EN B2C (2018)

The app can also be used to book and directly pay for services provided by companies such as car2go, mytaxi and Deutsche Bahn.

Introducing mytaxi match

With the introduction of the moovel transit product portfolio, the moovel Group is offering “white label” solutions for transportation companies all over the world. In the United States, mobile ticketing applications from moovel are now used by 16 transportation companies. That makes moovel North America the leading provider of mobile ticketing technology for US local public transportation apps. In May 2017, moovel teamed up with the public transportation provider in Karlsruhe (KVV) to launch the joint mobility app “KVV.mobil powered by moovel.” KVV tickets can be booked and paid for directly via the app. In addition, the app shows users available rental bicycles and vehicles from the car-sharing company Stadtmobil. The number of registered app users in Germany and the United States had risen to 3.7 million by the end of 2017 (2016: 2.2 million). In August 2017, moovel also acquired the Hamburg-based company Familonet GmbH, the provider of the location-messenger app Familonet. The acquisition of this startup, which has received numerous awards, enables moovel to apply the company’s expertise in the areas of geofencing and localization.

In 2017, mytaxi further expanded and consolidated its position as Europe’s biggest taxi app through its successful merger with Hailo and its acquisition of Taxibeat and Clever Taxi. mytaxi’s geographic coverage was expanded to the United Kingdom, Ireland, Greece and Romania, which means that it now operates in 11 European countries. It has also entered two rapidly growing markets in South America (Peru and Chile). mytaxi now has 120,000 registered taxi drivers in 70 cities. The number of registered mytaxi users increased compared with the end of 2016 by 85 % to 11.1 million.

A total of 17.8 million customers are registered for Daimler mobility services, which are offered in more than 100 cities in Europe, China and the Americas. In addition to car2go, moovel and mytaxi, Daimler Mobility Services also has holdings in innovative mobility services companies all over the world, including Blacklane and Flixbus. In 2017, Daimler Mobility Services acquired an interest in Turo, which is the US market leader in peer-to-peer car sharing, and in the ride-sharing service Via, as well as in Careem, a ride-sharing service based in Dubai. It also completely took over flinc, the first ride-sharing platform for short trips, which was founded in Darmstadt.

Growth of fleet business in Europe

In 2017, Daimler Financial Services was active in the fleet-management business with Daimler Fleet Management and Athlon. In Europe, a total of 383,300 contracts with fleet customers were on the books at the end of 2017, representing an increase of 6 % compared with a year earlier. Contract volume amounted to €6.4 billion. Mercedes-Benz Connectivity Services GmbH has been offering fleets and business customers connectivity services for telematics-based fleet management under the brand “connect business” since April 2017.

Focus on customer and employee satisfaction

Customer and employee satisfaction is a top priority at Daimler Financial Services. In 2017, independent surveys once again showed that we are a leader in numerous countries around the world with regard to customers’ and dealers’ assessments of our service quality. In the United States, Mercedes-Benz Financial Services once again finished at the top of three categories in a J.D. Power study of dealer satisfaction. The foundation of these and many other successes is formed by our highly motivated employees. In the independent worldwide Great Place to Work Institute survey to determine the world’s best employers, Daimler Financial Services was listed  – in 2016 for example  – among the top ranks in many countries.

Toll4Europe collects truck tolls all over Europe

The Toll Collect automatic system for truck-toll collection on German autobahns and selected federal highways continued to operate smoothly and reliably in 2017. The system recorded a total of 33.6 billion kilometers driven in the year under review. Daimler Financial Services holds a 45 % interest in the Toll Collect consortium. The Federal Republic of Germany has collected a total of more than €53 billion in tolls since Toll Collect went into operation at the beginning of 2005. Toll Collect is also preparing to extend toll collection to all federal highways, which, as planned by the German government, is to start on July 1, 2018. In addition, Daimler has held a 30 % share in the European Electronic Toll Service (EETS) since April 2017 and has founded the joint venture Toll4Europe together with T-Systems (55 %) and DKV (15 %). The new service is scheduled to begin in the second half of 2018. The objective is to offer a one-stop shop for truck-toll payment, with tolls charged by means of an onboard unit and Europe-wide invoicing.

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