Daimler Truck Holding (DTRUY) 12 Aug 222022 Q2 Earnings call transcript

Good morning ladies and gentlemen. This is Christian Herrmann speaking. On behalf of Daimler Truck, I'd like to welcome you on both telephone and the Internet to our Q2 Results Global Conference Call.

We are very happy to have with us today Martin Daum, our CEO; and Jochen Goetz, our CFO. Martin and Jochen will begin with an introduction directly followed by a Q&A session. be the can website. Truck presentation respective found Daimler on IR The our be will this On conference recorded. request, section in replay The of Investor website. webcast as the also Daimler Relations the will be conference available on-demand an of Truck the call audio remind documents. like this that the to governed find in telephone you Harbor wording I will is our by you would conference Safe published results with forward our statements that views presentation current events. contains looking respect note, future Please management's to reflect to subject statements uncertainties. risks Such many and are statements such these be of incorrect, any then those may underlying assumptions the results were materially expressed actual If or statements. from different implied by

Forward looking they to date are on statements which speak only made. the

Now hand over with to would this, like to Martin. I

ladies for Yeah, in joining all a gentlemen, for and from the XXXX. for Thank thanks morning, warm results the second you you, us Christian. quarter call and me Good welcome as well.

details Jochen the overview our of financial provide results, topics an key will in quarter. Before first you of to second Goetz give the want I our

obvious. every with we me all volatile the course at Daimler closely. day remains environment various We quite monitor Let that of developments Truck, our very and start the geopolitical observe

As business in the our on measures impact and results war our about we in their you for informed call March. our annual in Ukraine,

to For no that. now, to there's additional nothing add see We impact.

shortages Regarding of course the as gas, natural potential discussion monitor well. about we of developments here closed

without In deliver ability no have despite demand limiting headwinds, a quarter to I'm could without XXXX of we sales QX, still please production. deliver. we In The that to happy not and increased as was business and on is consider on Europe US, our the these our our is QX unit cost Yet, that level. limiting important report bottlenecks. vehicles and delivered additional positively not line. in major increased factor as impact cost could we our backlog the and increases. supply obviously inflationary An net remains factor Today, aftersales the contributor many continued demand. business. of strong produce strong we As offsetting performance but of supply our was This increasing we contributed our now, like and group high expect remains constraints. markets Furthermore, order the bottom pricing

key Daimler Buses. relates to Another topic

improve that reduce an cost million We buses took annually. our important we Germany competitiveness. that for to our Czech would by announced in body our example, for step move we to Republic. To shop production end, we to the intend Here €XXX

transformation electric Regarding transfer the by US. zero eCascadia further all Freightliner emission, we accelerated in our our unveiling

of our return on trucks buses. than in results more this of got Manz as enter Our adjusted the us of major eCascadia we level, corresponding machine that requirements quarter. order On processes and around sales result let second innovative already past units. an at partnership stake financial acquired the battery to and the XXXX. of is and first German we That of technology we're high-tech adjusted XX% will XXX said, part Moreover, AG. in a the The develop EBIT group production in billion Business a manufacturer meet specific serious strong now look And achieved with the €X X%. of production of very in battery our quarter Industrial the of business strategy, a a aim

We satisfied are operational with performance.

our these even for Actros the The based two XX.X% Benz, rates. license included extraordinary the turnaround adjusted of localization result But be valuation exactly where in is special positive had we this interest to QX. at without the earnings impact Mercedes-Benz from Mercedes increased and a China, of was effects, the Within effects plan. loss on planned in

cash by €XXX liquidity billion group the the share the QX now X% year Thank third, this minus items: contribution underlying flow And adversely billion. X% which million. Industrial on world-wide. in work cash Business first, XXXX of I'm a made special results figures, spin-off; million the to Daimler €X.X of satisfied second, higher we amounted challenges, €XXX EBIT significant you to the good paid of impacted these hard At ‘Thank taxes even QX and a positive great exactly of key achieve was environment. per items. in in line part as these expectations inventory; challenging again your year €X.X other in in fully But industrial dedication, we negative significant main Free earnings a from net in with for our are improvement with our as for to with exceptionally Pension three It You’ to our very of accomplishments for last the was part second track without €X.X big we a we billion point, As full and to despite year. XXXX, All-in-all, quarter. this communicated faced to challenging Fund, our significant I'm we those a recorded proud This decrease business to leads Truck to progress your times. team. employees, full Business. are guidance to €X.XX. of Industrial our be to compared

In North take Now in very be heavy-duty to demand market segment robust. look let's in at quick America, the a continues developments key the QX.

trend as ramp now in the over XXXX. of of XX% forward. year compared EU further strong half well our to the second at half trucks Star market complete up heavy first upward the our Western region, year-over-year. market aware the offers Truck In sideways year, volume for the that new the potential vocational up as the quarter going be moved X% please in the sales share And continued that During remained in first with market is

stable XX.X% quarter-over-quarter at the period, market share developed May. until Our January for

market America would throughout chain strong supply noticeably key trucking have first the persists the and sales our in our that remains and higher markets factor market North XX% the have volume the for guidance by as the of remain XXXX. entire results Europe. year-to-date to As market of There would Both because appropriate. periods important guidance to quarter in noticeably Without very been lowered higher, been Trucks seems volume our One decreased in and supply China. at Daimler volume helps understand this the positive and the This it constraints segment. the this Asia to significantly compared is the be year, exception industry, developments is limiting market well. same

of North are equity unit in included America Order still America markets. is far that Daimler mind Slight have in managed higher Looking decreased Daimler at Keep sales unit and not but we venture the contributor flat at by and X% and Buses relocating in margin our Mercedes-Benz. coming Overall we increased Asia Chinese Truck here in intake at seen consequently Asia, from any unit orders. of QX Trucks QX are not our here. Europe is Main to to Asia. compared year-over-year. in cancellation Trucks are sales sales Also and from by semiconductors XXXX. a unit is sales being very are Demand carefully results any rates the so joint Chinese sales included in in and step development North Trucks with strong, markets. increase XX% especially of

allocating and retroactively adjust opened option not has with with XXXX yet. robust if taking orders restrictive pricing plus only In pricing, needed. are are to for book order very US slots Europe, being we Our the

levels. the of quarter at second close remained record backlog order to the Our end high

great the XXX half from significantly all first momentum for the we year. battery-electric to vehicles, also Trucks. to feedback of our zero customer trucks in importantly, orders units In Regarding Truck electric most strong we and last maybe units of lot the XXXX compared emission remain XXXX of units same sold a members increased ZEV Daimler year. these And half Daimler for first buses last XXX XXX family. got period

leading Our buses of our of stood great always qualities, appreciate comfort with But top-notch technologies all great our for driver come and the Vehicles. the course, appreciate customers our that and trucks connectivity for, great Emission ZEVs example. Zero have they safety, emission equally zero other

and our will further our we forward, will continue portfolio. zero further emission to products broaden zero we emission Going improve

the the will But depend the And more on by depend prices. when to in be to parody, of as offerings you emission fleets regulation more know, into availability backbone over to will hand emission zero become also cost the for energy customers therefore able again dive Our on zero which our make would time largely will of vehicles of a determined attractive. development their point is suitable and Jochen will deep all and it a With like our infrastructure. that, financials. I

also and warm my Martin a side. Thank from welcome you,

me items. the quarter improvements US €XX.X the an now XXXX. group. billion the in from were favorable supported effect quarter FX XXX,XXX Adjusted clear XX% Besides stronger second around special FX, of mainly to earnings aftersales around significantly well more billion. pricing, like by better sales, QX by unit give total effects, aftersales pricing, EBIT while of a XX% Slightly increased two FX higher sales Let details performance our operational €X as for reported unit million units revenue increased still increased €X.X significant EBIT with in coming on of dollar, billion the generated and XXXX. the revenue increase to from higher second in positive paired Year-over-year, you XXXX net €XXX at contribution for better the positive positively to results as were XX%. positive increase from some Adjusted

produce million efforts due comes as QX. a of working in is €XXX which Business year's positive flow the unfinished segment from vehicles, caused this orders driver in inflationary as our higher effects last even term finished if America the shortage. trucks semiconductors around cost cash especially markets in the Major to results mainly with localization in North especially interest up from cost decision million of for Asia, license side, with are in based liabilities recording capital missing, year of €XXX fully visible the driven trucks impact by the customer to as finished million well still China of negative with to conscious the other decreased of Industrial Europe, in and on customers from came pick On are unable to by headwinds the in contribution well rates. QX or The coincided and Free because minus income from are as inventory the Mercedes-Benz pricing pressure, significant significant offset the of long strong mentioned from special adjustments. headwinds in higher Mercedes-Benz €XXX valuation

We also as €XXX last the made pension million part year’s contribution spin-off of agreement. the fund to

more industrial taxes that, lower to Next than cash contributed to the further amount. €XXX of year-over-year free flow cash million higher

and in strong year, industrial at of free QX guidance full reducing cash to €X.X in flow and end expecting very QX Net flow goods the remained positive mid-three-digit QX finished liquidity For a cash the free billion we normal a XXXX. confirm unfinished strong our fiscal levels. at

to an increased X%. positive increase were billion. revenue North Moving Industrial on sales strong FX aftersales EBIT corresponding The effects. positive pricing, €XX.X an with performance, effects a adjusted EBIT Trucks Industrial million America of sales now achieved €XXX adjusted and of to the XX.X%. million adjusted €XXX and on of segment. Year-over-year improved return adjusted return to

digit are to ongoing supply offline So we call, on upward QX, our sales back still, its unit but result inventory in levels classic constraint. as remain continued stated our trade QX double In due our trend, territory. high

believe As a we the year. mentioned we single the more in side full soon of in came put the surcharge XXXX the realization is upcoming saw full be effective the customers quarter the the the in was have supplying of June. then that trucks as will place impact important quarter, from and third where in without done to The Positive optimizing end in as the effects we our pricing full of quarter. at second second before, on than second minor of effect surcharge surcharge that the impact first possible,

and Our part remainder supply negative All-in-all, a America, increases year-over-year. stronger remained guidance Full is prices, that, a at On with positive had effects. of sales XX% strong saw we unchanged Trucks significant aftermarket realization. Daimler a constraints, driven the by very inflationary expected, side, second we and the raw as North higher a we a from and by described balanced better material Trucks much costs North daily XX%. chain America volume between almost achieve year, some year of costs To development. and impact price quarter expect

the half EBIT be will Research realized required final With year license earlier million. second understand, adjusted we approvals the the impact and clear at of the open, agreement half Mercedes-Benz for the XX.X% income at the EBIT the year X.X% and €XXX use of Mercedes-Benz adjusted guidance, the of EBIT the margin first the the quarter, the defined Important the originally recorded on and but Trucks the of in acceptance by and back the XXXX transferred context We end than by the Truck. technology in China. an than sales, localization with on expected, triggered was some be effect a for Beijing QX of impact expected. on was background license second documentation recording being technical the for & in includes EBIT Mercedes-Benz record BFDA To included license of recognition Mercedes-Benz positive joint authorities. accordingly for positive approval of corridor. The non-cash the obligations the high return in was Foton localization, Mercedes-Benz to Truck the its €XXX localizing final Development positive initially authorities. earlier license into Automotive of around under the Daimler a market property therefore China. the on To from Chinese for million income, was could the the in produced Daimler of BFDA Chinese in localization expected of Chinese the depending fulfilling documentation trucks by give license venture timing entered the our agreement in the you the agreement. DTG the received by of Revenue intellectual income Truck of by and the

targets. the are to because resulted license liabilities. of higher items, have to positive track addition achieve without increased Even In million double interest in we discounting our digit on income, two rates non-current these exactly mid of impact

I as bucket markets. bucket us fleet also material the bridge, all rising almost profit highlight business QX from in positive also want helped rising momentum The based costs Chinese includes at high a EBIT utilization drove burdens structure contribution transport supply successfully new the chain which on ease an impact ongoing activities. in better volume ongoing further and well to come from contribution the contribution to a strong High agreement. activity positive on license positive from in our This ongoing Looking deal here pricing major aftersales the to as constraint. truck

of On the remain bucket, and and from increases, constraints other sales from further side discounting material In inflationary from for raw headwinds the year X%. range to the the Campinas within Full-year higher we from partially from positive semiconductors by recorded a non-current costs bottlenecks Mercedes-Benz was expected offset sale the in supply rate increased to of freight interest land price development. last the provisions Brazil. gain of negative guidance effect X% is the still

now this range. the of on see we more However, upper half the

the from of remainder expect we positive the a For increases. year, price impact

is However, mix. this weaker offset raw a headwinds material product by and higher

be the that special call, QX the mentioned the two of year. As weakest excluding operationally, means QX should effects, the quarter

performance could the in last venture Main We Truck second of Asia issue the year included Chinese and is still Asia realize and from an strong came was QX driven below QX and here This the the the one-time sales volume step-by-step related market of The Trucks expect impact year return headwinds results equity the in at year-over-year will QX. below international economic X.X% significant mainly BFDA improvements, our effects. in last better growth see and continue in with expected worse operation adjusted while pricing QX to especially joint which but significantly markets. quarter from the than from earlier this which of slowdown sales material of significant on side. raw COVID-XX came year. lockdowns China positive last by year's

to the markets higher affected conscious adversely in elsewhere what were a world. India margin regions, chip also and to allocation decision other by Japan prioritize is However,

cost to and Asia further face quarter raw side the costs. from headwinds constrained material In performance Industrial had second Truck addition,

fully positive X% XXXX. to income on positive the service to cost in price our are India markets and result Nonetheless, Moreover, pricing impacts momentum, business. saw international development a adjust negative in some these especially customer short we could As due and showed pricing further with not improving the Japan, Japan. term visible able to will not cover in be only rules, regulatory price XX%, we in business Service our adjustments

the of QX effect effect last year. on mid side. in saw improvements performance This positive had the equalize where year calendar double adjusted is QX, were Buses And China in reason affect difficult is to we the market first our minus coach year. The was in Trucks was we Europe America X.X% counter Industrial we well Daimler our So versus segment But from Asia. recovery. volume we included also burdened last material be we by performance continue effect pricing more the more this in we a the a raw a the development by and million business. QX contribution able to development. inflation Latin first at increase America regions material Europe expected lower saw and of Trucks to effects for sales materials. showing signs as also by costs the upcoming the we driven The XXXX some outside effect year an then the expect In least Daimler of Latin in extent, full are the minute. positive above or a will the realize less at Volume year. of mainly strong of to in significantly for had in a to I’ll aftersales at no impact situation that increasing and improvement or Asia. as negative margin of less stable a small as elimination half further had remains as QX back This should year, positive QX over expect half flat in we although To affected China. see digit come to year. second came Industrial in costs year. demand. our elimination in guidance in QX And COVID-XX why due segment the full

let's Now second performance the of of EBIT have year-over-year a in XXXX. look closer the quarter the overall at group

total and one positive thirds the bucket. good I for two were mix main €XXX year-over-year. pricing, positive of the this development million of driver volume, total up think made of results Pricing contribution

burdened triple license the a still Chinese were costs with was from coming costs by here addition, In increase, Within our constraint contribution manufacturing a mainly well. QX aftersales middle business burden. performance, positive the FX agreement €XXX material mainly was million Industrial dollar. as - US digit raw and

As cost facing our as we are you G&A see as higher well in inflationary headwinds expenses. selling

EBIT America spin-off improvement positive special the Mercedes-Benz effects. expected. mentioned positive an Trucks differing Industrial €XXX So the in the America the €X achieving delivered includes ambitious. and [Setra] Trucks be XXXX. getting our of cost performance In contributions. the can leads major of higher our interest as as Business to the was above strong contributions in you negative see BFDA second positive well negative here from Campinas North are with North resulting connection EBIT adjusted group million and contribution our our quarter from with to seen more in fixed of in sale Industrial cost Mercedes-Benz results, effect target North Financial especially The at In is from shows contribution equity delivered This increase Business higher to adjustments year-over-year EBIT a the performance. America of shares performance Financial situation. Services. EBIT Services preliminary plant billion. as and a all a others, results flat valuation at of of impact positive of segment risk improved - mentioned

also quarter chain our contributions, the Daimler However, of supply heavily still a sale manufacturing Trucks correlating both included and plant. negative increased by high costs. the example, each and positive Brazilian last contribution Buses higher Campinas constraints, impacted had significantly year the material for second Asia from

equity have negative I equity Trucks Asia contributions and to is the positive from a result. saw As the said at before, now we digest the China where last year opposite case result

contribution and Industrial Businesses As our and Industrial you bucket mainly made to of like autonomous was recon return therefore elimination. came activity a negative Industrial to The part €XX already know, of minus is €XX adjusted total, million Business of in group participations EBIT process X%. €X.X QX our the the of Business reconciliation which Setra, billion million contains results minus the cellcentric year, last on with results effect. the sales compared [total] at adjusted re-evaluation In

still more by up Financial phase the and new markets. at business is in adding our Looking Services, ramp more

presentation April and performance amount we inventory billion expenses However, to has €XXX the countries. portfolio, ramp impact portfolio planned countries expectations up adjusted appendix million. the five our as facing Compared this increased this to And at the supply further XX factsbook in QX. up €XX to of went XX financial cash effect portfolio In year-end to XX% the America equity penetration XXXX, start increase improved the of and our negative strong vehicle improved of to in in Due ahead volume of risk each markets capital in in chain live by find now lead of In €X.X inventories remained performance active still are the in more walks out the to can XX.X%. of well return positive billion to which rates, the due due in went you detailed United on of of operating States. and Industrial and minus QX and segment. a EBIT information FX by total, the an higher adjusted new offline on offset and €XX the Business in is business cost of flow to performance new ongoing million by new normalization higher interest increased to margin North working year. constraints, to

Business. based adjustments million. to M&A exceeded at taxes excluding million. once portfolio million. Free €XX CapEx Business strict in CFBIT €XXX for restructuring on of Business quarter. Business adjusted measures minus flow of end our million, Net underlying assets minus Industrial to management and quarter XXXX, QX, minus CFBIT million leads €XX M&A transactions of minus at of approach. in you're management bit million to the active adjusted on in came This of for liquidity in Industrial investments a Industrial restructuring came of the amortization adjusted PP&E second of flow and again measures industrial depreciation intangible €XXX €XXX second and and the and cash net €XXX As of decreased leads This the the at the to in transaction million minus €X.X cash Industrial Cash free the our

year Regarding the well Ukraine, is the following development inflationary impact allow very and geopolitical outlook interest as as of the of as associated the global the remarks. further uncertainty. degree Truck to to well the for its in development outlook pandemic increases subject macroeconomic, the please full following on Daimler high of XXXX, the exceptional The as pressure Bank The for an Central the in lead the rates. economy further war COVID-XX in development and

range QX and you truck market at May back a a of at in XXX,XXX our units; XXX,XXX still information, heavy-duty in However, units with targets Annual units. XXXX. we currently Result on North for Conference of for downtimes bottlenecks production Based gas the full assume feel we our due achieve of gave current for supply the compared XXXX. confident to European decreasing America, year market valid, XXXX, XXX,XXX to range the units heavy-duty first the in at for and guidance is market to XXX,XXX in no March confirmed the availability the to half our we of year The Disclosure

our and for the also all Industrial level, Group year overall we Group the can Business confirm guidance at KPIs. full Looking Daimler for

on Trucks segment remains unchanged. full Regarding level, we some and the of year first adjustments. Daimler three minor to North America, Bus XXXX had make the the guidance all, segments outlook for Mercedes-Benz, But

Asia, expectation operationally for to are the at of it on sales their it’s year change X%. to make Daimler the return guidance X% fully The we relates and previously To on Truck first full X% clear, to track. was XXXX adjusted X% now

than even what market we the for disclosure. QX expectation the However, China that worse at have seen is

now the the change that X% for related for XX% Daimler Financial XXXX. adjusted full portfolio lesser to X% ramp here equity the anticipated also for from now €X guidance billion the from Moreover, higher anticipated side. Both of increasing are to not For to impact are to positive billion from because impact equity lower adjusted and €X €XX level. this return risk, to of reasons FX we full and for any return on changing the previously business of year expectation up, other, project €X this X% year XXXX are new and billion Financial we positive on Truck expecting offsetting cost an we Main our are FX. on Services for Group between expenses at for a changes to Services, billion impact each

much to my year the on outlook side So full the for back financial from XXXX, and Martin.

Jochen. you, Thank

for me strategic looking priorities XXXX by and our conclude Let beyond. at

leveraging and transportation. know we continue goals, Trade this for to proud goals It You right fair vehicle. I the transport do in our anchored will our strategic have At strategies. we After want culture, will know our through our sustainable that to out lead to range organization, Truck are accelerating to is our unlock them topics Mercedes-Benz two LongHaul. by really say hand production you this focus deeply people, the XXXX. of on respect will we kilometers that so emission to not go in of want we zero all is I to distance is our Trucks, Daimler full to our with take it XXX IIA the And up commitment. calls. we Transportation on of eActros, Show swing. our and a profit These eActros the planned next them every emissions. and work already and potential past premiere think ESG long point want level it bring eActros to around and serious in In and update slide just our sum, not Daimler change do slide. I zero on Because side At bullets transport. celebrate therefore strategic of and are LongHaul from the quarter one will September, our coming with will to is the

we past And looking we you including We show that, ambitions second we now executing like quarter-by-quarter, I that much. have and to consistently are very clear And ambitions. quarter. this thank to With forward these are questions. would your

Thank you [Instructions]. ask gentlemen, Martin now. Jochen. your very much may and you questions Ladies and

the Now procedure. will explain before start, the technical we operator

And is from the Nicolai Bank. first Kempf, question instructions] Deutsche [Operator

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the it speaking my here? color Nicolai morning. Bank, Deutsche intake more the the assume stronger half first Can be fair good taking that year is quarter? question third should my you if Yeah, My guidance. would market provide and order current be production the from the for that Kempf one increases be fourth lead on in And times. in second thanks to would of the question. on much And some second

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thank Perfect, you.

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ask can your You question.

Citi. Jochen, and at Martin Hi, you. Thank Klas

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the confidence more half? gives If into to the you. second their the semi Martin that trucks you you Thank able could side on ship and supply comment, you inventory more and release availability, what will both being

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much. very you Thank

Next Tom is from question RBC. Narayan,

now line Your open. is

Martin, for Thanks taking yes, the questions. Tom Narayen, Hi, Jochen. RBC.

be benefits, ongoing Trucks, sequentially margins is one would the on QX like first we're the cost the that down if there cutting we maybe and one-time QX So Mercedes-Benz versus exclude improving margins. I looks would the think

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was out. of one, So can increase, price year, lower the is increase Martin, the with balance in then half gas, driven over the raw the of to weakest end in we like expected, why on QX quarter it's second reason the the by an That's And that the material. mainly And second the you. quarters.

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gas. there certain are yes, on are So we processes, dependent

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raw orders then intake, when some materials. you two. know. already yearly August, Hi, good for the for book if taking maybe order next recent you remember your And I've elaborate, to And peers account the started to books for I start you to for XXXX, a surcharge higher Thanks your I started don't On had in that open Can saying haven't you? the morning, the year. maybe have of got my you why already everyone. question. open

steel costs know, now You are down, easing. coming are also prices logistics

to expect the so all North one-offs I coming you already and you expecting XXXX? America believe adjusted pricing the at last maybe further the the And ease I color expect on are achieve in then to question the think America part books of you invoice And Mercedes-Benz, most as Thank for to would second my of margin some maybe still more year. So year. performance, the from this be year, to of then between level? Trucks have volumes the North going in second you. and X%? price the also it's then midpoint X% reach pricing margin you guidance would part your Trucks the increase, deliveries And second main in open on levers of the

are between I it happen know look, market, exactly our order I will United with are it beginning markets - way, that. of contact it, beginning our do customers. customers in when open the for you last But see even in can't year at First the quarter now, do not of with we we third broad play it costs for to selected well. now about comment I and where a I States, certain say foreign we how we to for moment quarter organization, that will our things told the in it’s and itself, by our key have know pricing don't of to did, I the we with do the especially, if will are fourth comes And somewhere selected price you next big clear It we with order, you dealers, October. the very sales to how see to the it When for markets, Mercedes-Benz depends some customers, open taking increases as selected of it basis. on close certain catch-up competitors. that the it means the on year. allocate our a for depends orders and already any And the the slots And we already on easing, surge the remind way. we I have pricing. we the about are the XXXX We intake, would in now on discussion year like

second know, to would would have if the this increases we round in the year. another of debate half continued, You have

helps have just we So we even Jochen have further. keep pricing, the keep in But half? to why definitely to will second do to a don’t not our margins go normal the and depression go to easing - not keep margin. it back

within I’ll the for range. one take X% hi margin. the on the guidance confident Well, that X%, Yeah, confirm Well, Miguel. and feel we to

the that. in So that it's fair are to say we of midpoint

so on pricing in and especially are is a major the But on away in volume go end in we will our quarter. in on in said semiconductor of will stable can second sitting the we Daimler there and given we half, I plays kicks see second impact Europe, also upside segments inventory we at has on material, on I the role. happen look If past We But the that half, and And increases raw pricing which speech, even my because the the P&L, But as second up second finished also full contract well increased hits side, the the as see even because expecting said we in the after, our as problems in in not want to [charge] more bit said contracts through still go spot a the and the prices ease reduce also a on parking the half half. of mean more well. have you second the have, Trucks. us a we and other the material discussed on parts, as have all which the third more June, potential. trucks a also US, clear lot And sell time we then for European the lot now. opportunities second structure does if would in delay that in otherwise in side. We the all the more prices when already have in half,

we’ve a Daimler fourth positive quarter with very Asia, So lot have on good stable we a high Traditionally, volume. Bus.

think confident I feel really overall, a that we to And X% it's So we said, say midpoint about as deliver to X%. can on on fair the to that.

On specific the expect. nothing perspective, one-off, to from today's

have I You said, that side. roughly on million €XXX more we million might remember €XXX than the or Russian

accounting it's a have €XXX far, the in an at about But of so legally will new. from nothing on that the book company. it's than end I of the expect little it's moment. at remainder one our So year, the Other also the bit the happen influence, can then more than depends still we the on we think nothing million. we There's that, in missing, that guidance, baked But portion perspective so amount.

very you much. Thank

America. Bank Michael of And the next Jacks, question from is

now is open. line Your

still prices? the of the the expect potential cost impact second spot have you through what sense your you any to just is if the realization. Can €XXX realisation running in which Thanks taking my was X%, us contributed Hi, is sense good first questions. just million mentioned my a price you for you. do be? And Thank exposure going My prices on for gas one Industrial bridge, on thirds correct. then second topic that morning. for Jochen back question about two is of could how in to my give come you the And around that math And shortages. suggests energy is half? how significant more much

So on is the pricing, correct. your math

that That But in the Martin, quarter-to-quarter, when XX% we last roughly in look surcharge, keep in than first the QX point So of have mind the see and means second QX starting started had we second the if different first year. I in expect Yes, already compare another last roughly in €XXX price quarter. this also additional on with half would spot? year. we to half, a higher million we increases we we come and you have

I guess, spot prices. we have term a mix out long contracts of and market

Please this that pricing details, impact. well. has have give as Europe lot the impact yes, that energy We impact our you see to in understand comes always a buy an plants has don't want for certainly through. to gas, energy I So as on well, electric

happening enough transportation, equation then, was in So stuff outside. bad are on there there mentioned the the before easing other

our price, pressure those and to the efforts are the still So continue. mitigate will there. efficiency And pressures increase certainly to cost

are And challenges there. the production out it's still So - for

half I Understood, ask, please much just year? thank then two you. you And us how maybe Jochen, in just if remind can in last pricing was the base could

this would we the the when I have to I QX. come and have let's QX in discussion the top effect Well, of between don't head say, then my QX.

a discussion have there. when for QX and Let's set pricing we disclose the numbers but that’s

Okay. you. Thank

Okay.

And next then JPMorgan. from Jose Asumendi, question

is line now open. Your

Jochen. reversal more capital P&L? of Thank Where the are you the second Morgan. Remember talk you. in if through this Good JP flow through little And initial you Europe? of you couple year? you. questions, Can for Martin, or to actions. feeding Thank maybe A fixed the working could morning about talked on Are actions of plan? you please. discuss And non-personnel cost on plan? you the and a the track ahead personnel in how's that second, bit the plan, of a about half little sector base and Jose from the of It’s use the a

fixed you differentiate we thank to have for questions. Well, Jose, your I categories. think hi, cost, Okay, a different on between

we on measures the said earlier, contract one to the achieve on I On workers with have look on side, we are if plan, personnel on as align the we councils hand, and measures to structural we're executing that. And that. our

the base, also also cost on from here and our we measure are achieve plan we a non-personnel side, On targets.

have which also a lot that come more and special year mentioned two separate very are to us However, still more a earlier other there in because year things the for we play. I in is this but much environment, systems world was which look IT also I very to spin-off. to - compared topics embedded if on the related refer in the sales you past. the Mercedes-Benz of

So expected. think have And and then that's see higher impacts some pressure overall, we we originally obvious, than here. cost I we also see inflationary

really other for we effects remainder where So the are between are which and separate the year. measures I would in challenged structural plan of

Europe, On in bad. good working side, there's the capital especially and

hand, stable, I in the reduce think is on the chains unfinished more helped the to us Europe supply good. one which

of were are end a not the to of that able we year. the bring finished that to the on capacity short-term parts a the that impact quarter, transport on its However, get at not and reason the to stock that lot second capacity do customer. increase we so bit trucks States, we enough still was had for will we is United little the And only have lot the to of high there goods. the which that elaborated Martin in that different for Well acted main full problem already. It's meanwhile available. the It's situation for missing. expect A the parts chips, not we

new the get So the customer it ready, on track and there we to good US parts the trucks side. is in as the as is are soon level, okay and the stock can US the finished target is an to thing also trucks and then in the all hands the the bring

in main are these two second and we half. So impacts the have topics to the tackle

Thank you.

Next Agarwal, question from is Himanshu Jefferies.

open. now is line Your

my for Jefferies. questions. taking Hi, Thanks Himanshu from

one pricing. first on So is

do normal how if the one are in we you And levels? And that reach right, about you materials you about structurally parts normal any improvement talking and just just talk sequential trucks mentioned trying halfway rollover so if about can understand the of you of raw a the away the mention specifically lot outside will of to higher can second be finished missing, understand semis? month-on-month America, I'm you total you just And pricing like want margins Just North inventory? unfinished share if parts which much on Can already to are into so of have July? in environment. are since I are lastly, a got inventory. QX, seeing and in we to

the pricing. Okay, one first

First have of go all, the normalize. to to away costs and

have related just pricing. no Yeah, do a costs it. we accelerators We normal specific in

and if not So discussion we'll truck, And - that in about immediate your the and of cancel now is. you'll truck. just have it's customers the what customers. the go chance yes, have prices we to They raise the with and with we we'll debates change all pricing the the have pricing

cancellation any are yet, seen haven't so We accepting it. customers the

wages environment. We and see are of We I are would of up. stay for go we that just because And of salaries that lot in world, that, say an in a in a environment. areas inflationary pricing the lot inflationary will

have We on side, products other an great too. have the input that

is Cascadia the Our The money of can customers really total quality want products, the of by Actros cost our far the than better is States in the buy. ownership ever. best of United

with smashing Our an new absolutely reviews is the in States vocational great customers. trUck press United truck and from

with and be not It up. side, then has it kills the the To with good good. part to that solve. pricing it one if are can solve. after ordinary years enough to the to on problem It's the system, come has plastic do once a of problems another is in to So there outlook solve one problem, strong And parts. opinion, it's do that is but one my that is pops treatment in seam myriad you itself, one one therefore inventory why the arguments and to not

keep us the unfinished. the busy the the second for will for that and share So of Jochen, half. last finished in one

look you finished trucks. Yeah, so the big if value nature, by obviously wise, well, the is chunk

XX%, the value of finished say the unfinished, take and it's the XX% you to side. the on is fair If finished that

the As moment. of I in parts, right quality bring our all we in time. point unfinished US earlier, elaborated amount and where them is mentioned Martin challenges the a in right at have mainly to on

higher in volume the On volume inventory we one nothing level, in rent, there, based speaking, compared, is business which of the but stocks it for models so have term Europe, have couple the a in One also special, the example in generally short inventory, that's the on trucks of always stock US. we reasons. uplifts is

And reason inventories. times Middle then a in of have of inventories. we the have we have we where from as overseeing builder Mercedes an effect East, stronger Asia, portion also where business was least, last capacity or that that We more And South had Europe, increase and longer is not that end lead East at of a out body have well. for enough And another high transport I structural not we QX. in but and mentioned Middle

me, QX that's inventories with So the of structure disclose any overall. bear development And quarter. the will I not the of

I'm You to have call to next basically our about happy development. wait where for talk the

can you Reitman, question. ask your Mr.

now Your open. We is hear line can't you.

you. please. Two Reitman, Thank Societe Stephen Generale. questions,

is you. now And the months how few - in long compared to results? also group since you comment to the get could order of be update us across Thank benchmark your on is how all, performance separation, the sort and competitors? reflected you a think could in For your to to the of process going freedom the maybe increased First entrepreneurial thinking? you

right seen Daimler we XX would AG minutes, first a a the question in In Stephen, about difference half see XX call, have the last minutes. over trucks. you

exclusively we asked. alone and trucks be talked with aware Now to - we about scrutiny that the fully XX and minutes increased organization get helps entire what

helps past call are to and have Sunny good we it stated help. it the continues means markets we lot in comes good we a yes, what percentage XX XX sales benchmark clearly to on our in So to When markets. XX, results, it and

and the to great So company pulling increasing our margins, it be costs. yes, and portfolio, if And do we product we there North has are of to lot And will for is like in products to with underway are that. in There a our invoking is still improve streamlining homeworks America, where challenges enough out be. room fine, vocational our have to everything there then on done. our we be well promise

Thank you.

the Daniela Goldman And question next is Costa, from Sachs.

Your now open. line is

Can hear me? Hi, good you morning.

ahead. go hear Please Yes, can we you.

hear sorry, I'm I don't Oh, you me earlier. could think

questions. I question first comments on because reconnect. regarding order to your this for But the was apologies And closed my you XXXX. said of was if I have asked Now, trying which two was some book, was US

I think we've open. order is that competitors, their heard from some of your book

your of have prior If a for ask example, earlier questions. I adjustments. neck the also orders apply could be you're worried share? start question, materials share from loss think, Europe, we for color the or an Understand with share there could Or retroactive you few that mentioned lot taking ways? second market then price now a margin? market just that how XXXX, orders year you. you're only you inflationary you've US I have have raw and And is about a and bit declining taking you of much that And sort give now? don't both take favor? does very in raw for backlog reductions where those wondered between I of risk year? price customers they next wonder margin retroactive So if for market potential could so just management if it prioritizing it you and more Thank if the you're further, some a in given But next reversal material can up follow we're thinking might on work and about price a in Is situation, strong change the it environment fast. some you're not in in and

answer the has is No, to the moment with first behavior in at nothing easy market Daniela, potential fairly US. one to do share order the

significantly you bigger. we our product have have gain As would this share so even the constraints, on the if we have we would market market share the seen no unfinished would had US, be and roads, year, in only

slots book, very and so segments technical term different product to bullish customers. It US to the we our have United the So more conquest accounts I'm extremely hope sophisticated has the dealers, reasons, we market. why are about of allocation long of in customers States our of in portfolio order in to that a system to

the remember keep we And more production it's we moment, means tendency, the what promise. And and a means US we how So that, be for at second deals unnatural knowledge, want from capacities next now times orders to in, moment have in already We the I get US October, where and open I the impatient then to in shouldn't at we clear that get Once will July and have it's huge already. all. need at and pulled the worried books. certainly a market first in in expect the all. the majority not when the about that. November. of year, the a I'm last you'll the negotiating year's take that it the now supply pricing, we forward we the September we've And came was in am done It's not quarter. spike. that at we or see did and the September. now August. report about either as to share And October worried for I

significant one Okay, energy, well, And lessons if regarding your have clear, increase was hi adjust but in question to it's also the learned on the to good second flexibility to generally that of Europe, inflation, a material that there's Daniela. make raw pricing.

will of I it's And of fair, decline. happens I be that on looking Not of will Energy level, are market. but think I war then cost of tendencies where it's and think mentioned. the to high on back. which the we're that's of to likely Well, see that. inflationary down, material, discussion assuming you hard in basically we really in we for what stay Europe, XXXX, sure kind And most the the you portion in some year, XXXX. of least still is on portion called if one strong, increase likely surcharge, there's at area law take price well, a a there most At go the the raw of predict the pricing just at ask, course learn will the be increase slight also ongoing, year And a never was lesson go moment will portion components three in there significantly is that will and will a it very And a the everything if customer know. stabilization also some, the a if surcharge. back. a

that So the year happen XXXX. in can

very Thank you, Very much. clear.

Michael some Next at DZ question is Bank. are from Punzet

Your open. line is now

morning, I Bank. from Punzet Michael Yes, DZ questions. Good have two

calculate secondly, sales? guidance tax very can what see on increase. turn explain a the the your Bus give we the on and Maybe you will is section the one for us a of year? for roughly in Maybe in order strong that the is rate on for bit First intake reasons can elaborate the into you any tax have this when reason full second And there a and that very XX% quarter. rate. that you correctly, If low I you can

in let that Michael, Good when QX. all. Okay, me we - positive with factors, that in first tax ordinary start assets. The liability a deferred cause it’s low tax reason one pension rate. catch, we And impact portion this and released adjusted change of an tax the the the the for has of discount of is some

you remainder of rate, quarter. the on expect can For the saw like in Jochen, a the we won’t similar And Bus, year, you? tax first

growth? But on Bus the side

know, of and months, no nearly are an in that our a all low extremely subsequently okay of coach Setra well. And the And for with you you running coming from basis. We orders remember, ordering. business. we XX comes customers might on so very but new we the back our buses as Bus back so generation the again, coach closed strong mainly that in as coach are factory, now normal the we it side, helps all, Bus at coach on an back the first side And shows increase we not the had on side, Sorry, order are that now buses, to level. levels orders to just are are launched

that future. just is in normal outlook it the positive Bus Bus so and the So the we life times, about for that soon. that the foreshadows Buses in negative Bus the back was shows order to is second are comes business a is normal that negative not fairly to shows only back that in business quarter. that very was the And intake segment

will orders to XXXX? And XXXX, in turn sales, the relates is into when more it already

year for of Our is the zero. plus guidance XXXX

the are plus away As see from you for half we zero. year the

we of to changed otherwise into would we yes, plus target those sales zero have of the have orders achieve the confident are to guidance. where So some turn still

you. thank Okay,

very being Thank and questions for Ladies with thank Martin and much Jochen, your and for you today. for gentlemen, us you, answering.

We disposal Vehicles might questions events as in any IR investor you members We remains to are you Hannover. looking to of further your upcoming hope our the the you the always, IAA have. seeing on Now, enjoy and the answer summer. Commercial at can or Board forward

Thank you all looking great stay find you to We're goodbye. Relations our day on can forward You these Investor Have meeting and events Truck there. healthy. and a website. Daimler