Record year 2017: Daimler Financial Services increases its operating results to around two billion euros
- Contract portfolio grows by 12% to 4.8 million vehicles to 140 billion euros
- Further contract growth expected for 2018
- New Board seat created for Customer Experience Officer
- Bodo Uebber, responsible for Finance & Controlling and Daimler Financial Services on the Board of Daimler AG: "We are using the best results in our company's history to systematically drive forward the extension of our digital divisions."
2017 was the most successful financial year in the company’s history for the provider of financial and mobility services, Daimler Financial Services. With worldwide growth of 14% in new business volume compared to the previous year, the company was able to substantially better 2016 results. EBIT stood at €1.97 billion, corresponding to an increase in profit of around 13% compared to 2016.
Bodo Uebber, responsible for Finance & Controlling and Daimler Financial Services on the Board of Daimler AG, says: "The very good results were driven by customized services and a premium portfolio, which were decisive in the most successful year in the history of Daimler Financial Services. We are using furthermore our financial might to systematically drive forward the extension of our digital divisions for mobility and financial services."
4.8 million units: portfolio increased by 12%
The portfolio of vehicles financed and leased worldwide increased by 12% to 4.8 million units (2016: 4.3 million), which equals a volume of around €140 billion. In the course of 2017, Daimler Financial Services concluded 1.9 million new financing and leasing contracts to a total value of €70.7 billion, an increase of 14% over the previous year. "More than half of all vehicle sales by Daimler were supported by Daimler Financial Services in 2017," says Klaus Entenmann, Chairman of the Board of Management of Daimler Financial Services AG. "We are expecting further growth in contract volume for 2018."
Significant increase in new business in Europe and Asia
In the European region, Daimler Financial Services concluded 968,000 new financing and leasing contracts to a value of €31 billion (+15%). In the Africa & Asia-Pacific region (without China), new business once again increased considerably by 16% compared to the previous year, amounting to €8.4 billion. China is posting by far the highest growth rate: in 2017, more than 300,000 new contracts with a value of €9.5 billion were completed, an increase of 56%. New business in North and South America was at the previous year's level.
Strong growth in mobility services and the insurance business
A total of 17.8 million customers are registered to use Daimler Financial Services in more than 100 cities across Europe, China and the Americas. In 2017, over 100 million transactions were carried out with customers—more than twice as many as in the preceding year. Beyond car2go, moovel and mytaxi, Daimler Mobility Services has shareholdings in innovative mobility services around the world, including Blacklane and Flixbus, among others.
In 2017, Daimler Insurance Services also issued around 2.1 million insurance policies—an increase of 20%. A telematics-based insurance program, named "Inscore," was newly developed and successfully introduced in the French, Belgian and German markets.
Key topics: digitization of financial and mobility services
With the appointment of Benedikt Schell as Chief Experience Officer (CXO), Daimler Financial Services AG expanded its Board of Management with a new business area. In this role, Schell is responsible for the expansion of digital business models in the area of financial and mobility services, as well as for the global customer and digital strategy. Jörg Lamparter is the Head of Mobility Services and responsible for the offerings (i.e. car2go, moovel and mytaxi) pooled under the umbrella of Daimler Financial Services, and stakes in Blacklane, Careem, Chauffeur Privé, FlixBus and Turo.
Gülnaz Önes, the new Chief Technology Officer (CTO) in the IT unit of Daimler Financial Services, will be strategically responsible for the transformation into a fully integrated, digital provider of mobile services globally.
Klaus Entenmann: "The organizational changes now made with the addition of the CXO and CTO, and the consolidation of our mobility services, are investments in our areas of future strategic importance. The aim is to offer convenient, safe, intuitive and mobile services for our private and business customers in future."