Daimler Investor Relations Corporate Presentation-Q2 2017

Q2 2017

Corporate Presentation

Daimler AG

Contents

CONTENTS

Key figuresDivisional information

Group financials

Daimler Group Strategy

China

Outlook

Appendix

Daimler AG Daimler Corporate Presentation / Q2 2017 /

Daimler AG

Highlights of Q2 2017

Daimler Corporate Presentation / Q2 2017 /

Launch of the new S-Class sedan and start of production of the

E-Class Cabriolet

World premiere of the Concept A Sedan at Auto Shanghai

The Mercedes-Benz Untertürkheim plant will be further developed

into a high-tech location for electric components

Acquisition of 15% of LSH Auto International Limited to foster the

long-lasting cooperation with the Mercedes-Benz dealer group

Laying the foundation stone for the second battery plant in

Kamenz

Unit sales– in thousands of units –

Q2 2016 Q2 2017

761823

+8%

Net profit– in billions of euros –

Q2 2016 Q2 2017

2.5 2.5

+2%

Revenue– in billions of euros –

Q2 2016 Q2 2017

38.641.2

+7%

EBIT– in billions of euros –

Q2 2016 Q2 2017

3.33.7

+15%

Expansion of the ride-hailing business by investments in Clever

Taxi (Romania) and Careem (Dubai)

Presentation of the all-new heavy-duty truck FUSO Super Great

Daimler AG

Divisional Information

CONTENTS

Key figures

Divisional informationGroup financials


China

Outlook

Appendix


Daimler AG

Mercedes-Benz Cars: continued business growth based on

strong product portfolio

Annual Press Conference / February 2, 2017 / Draft 19.01.2017 18:00 Daimler Corporate Presentation / Q2 2017 /

Unit sales – in thousands of units –

Q2 2016 Q2 2017


EBIT– in millions of euros –

547595

Q2 2016 Q2 2017

22.123.6

Q2 2016 Q2 2017

1,410

2,404

+9% +7% +70%

Page 5

Daimler AG

Mercedes-Benz Cars: sales increase by 9% reflecting our

strong product line-up


- in thousands of units -

Q2 2016

547

595

Q2 2017

112

122

100

18

6

113

128

58

23

6

smart

E-Class

C-Class

A-/B-Class

S-Class

Sports Cars37

40

SUVs180

201

Daimler AG

Mercedes-Benz Cars: globally balanced sales structure



Q2 2016

547

595

Q2 2017

150

78

85

185

117

87

84

172

Rest of world

Germany

United States

China

Europeexcl. Germany

87

97

Page 7

Daimler AG

Mercedes-Benz Cars: EBIT- in millions of euros -

Annual Press Conference / February 2, 2017 / Draft 19.01.2017 18:00 Daimler Corporate Presentation / Q2 2017 /

* Return on sales

EBIT

Q2 2016

EBIT

Q2 2017

1,410

2,404

+ 994

6.4%*

10.2%*Higher unit sales

Foreign exchange rates

Negative one-time effects in Q2 2016, mainly

driven by Takata airbags and remeasurement

of inventories

Higher expenses for new technologies and

future products

Page 8

Daimler AG

Daimler Trucks: unit sales and revenue above, EBIT below

prior year



Q2 2016 Q2 2017



108116

Q2 2016 Q2 2017

8.7 9.0

Q2 2016 Q2 2017

621543

+8% +4% -13%

Page 9

Daimler AG

Daimler Trucks: sales increase by 8% mainly driven by

Indonesia and Middle East- in thousands of units -


* European Union, Switzerland and Norway

Q2 2016

108116

Q2 2017

20

42

7

36

20

41

7

30

Rest of world

Latin America

NAFTA region

EU30*

Asia

10

11

Page 10

Daimler AG

Daimler Trucks: EBIT- in millions of euros -


* Return on sales

EBIT

Q2 2016

EBIT

Q2 2017

621543

- 78

7.2%*

6.0%*

Efficiency enhancements

Customer service measures at

Mercedes-Benz Trucks

Page 11

Daimler AG

Mercedes-Benz Vans: strong development based on very

successful products



Q2 2016 Q2 2017



99.6 103.4

Q2 2016 Q2 2017

3.4 3.3

Q2 2016 Q2 2017

401358

+4% -11%-3%

Page 12

Daimler AG

Mercedes-Benz Vans: EBIT- in millions of euros -

Page 13Daimler Corporate Presentation / Q2 2017 /

* Return on sales

EBIT

Q2 2016

EBIT

Q2 2017

401358

- 43

11.7%*

10.8%*

Lower warranty costs

Higher expenses for new technologies and

future products

End of contract manufacturing

Page 13

Daimler AG

Daimler Buses: positive development driven by strong

European business and higher unit sales in Latin America



Q2 2016 Q2 2017



7.07.5

Q2 2016 Q2 2017

1.1 1.2

Q2 2016 Q2 2017

88

64

+8% +3% -27%

Page 14

Daimler AG

Daimler Buses: EBIT- in millions of euros -


* Return on sales

EBIT

Q2 2016

EBIT

Q2 2017

88

64

- 24

7.8%*

5.5%*Efficiency enhancements

Lower unit sales in Turkey

Cost inflation in Latin America

Page 15

Daimler AG

Daimler Financial Services: further business growth


New business – in billions of euros –

Q2 2016 Q2 2017

Contract volume– in billions of euros –


15.4

17.9

12/31/2016 6/30/2017

132.6 134.2

Q2 2016 Q2 2017

479522

+16% +1% +9%

Daimler AG

Daimler Financial Services: EBIT- in millions of euros -


* Return on equity

EBIT

Q2 2016

EBIT

Q2 2017

479522

+ 43

19.3%*18.8%*

Higher contract volume

Cost of risk

Higher interest-rate level

Page 17

Daimler AG

Group Financials

CONTENTS

Key figures

Divisional information

Group financialsDaimler Group Strategy

China

Outlook

Appendix


Daimler AG

Strong free cash flow in line with good business development


Free cash flow industrial business

H1 2017: €3.0 billion

Net industrial

liquidity

12/31/2016

Earnings and

other cash flow

impact

Working capital

impact

Other(mainly capital

increase to DFS)

Net industrial

liquidity

6/30/2017

+1.0

18.4-0.819.7

+1.9

- in billions of euros -

+0.1

Sale of real

estate in Japan

and M&A effects

-3.5

Dividend payment

Daimler AG

Daimler AG

Further investment growth as a basis for profitable growth

and development of future mobility- in billions of euros -

10.5 10.510.5

Actual

2012

Actual

2013

Actual

2014

Research and development expenditure

Investment inproperty, plantand equipment

Plan

2017/18

(average p.a.)

15.2

13.5

Actual

2016

6.6

5.1

7.6

5.9

8.1

7.111.6

Actual

2015


Daimler AG


CONTENTS

Key figures


Group financials

Daimler Group StrategyChina

Outlook

Appendix


Daimler AG

Clear aspiration for all our divisions


Daimler AG

Profit targets

1) Daimler Financial Services


Leadership 2020

Daimler AG

Mercedes-Benz Cars


Daimler Group StrategyGlobal Core Business

Mercedes-Benz Cars


Mercedes-Benz Cars: product highlightsSales launch of the new S-Class sedan

Daimler AG

Mercedes-Benz Cars: product highlightsSeries production of the new E-Class Cabriolet has started at the plant in Bremen


Daimler AG

Mercedes-Benz Cars: product highlightsThe Concept A Sedan celebrated its world premiere at Auto Shanghai


Daimler AG

Mercedes-Benz Cars and Vans: continued product offensive


E-Class All Terrain

E-Class Coupé

GLA facelift

AMG GTRoadster

S-Class facelift

E-Class Cabriolet

X-Class

2017 2018

smart fortwo/forfourelectric drive

smart cabrioelectric drive

C-Class facelift

CLS Coupé

AMG 4-door Coupé

S-Class Coupé/Cabriolet facelift

A-Class sedan

G-Class facelift

GLC long wheelbase

GLC fuel cell

A-Class sedanlong wheelbase

New Sprinter

Daimler AG

Our roadmap for sustainable mobility

30

Mercedes-AMG GT S: Fuel consumption urban/extra-urban/combined: 12,5-12,2/7,9-7,8/9,6-9,4 l/100 km,

CO2 emissions combined: 224-219 g/km.High-tech

combustion engines

Plug-in

hybrids

Electric vehicles

with battery or fuel-cell


Daimler AG

Significant reduction in CO2-emissions


Average CO2-emissions in g/km Mercedes-Benz Cars fleet in Europe

Daimler AG

24% friction reduction

11% faster acceleration

13% CO₂ reduction

-80% NOx emissions

17% weight reduction

18 kW more power

The new diesel engine OM654 …

… the first member of a complete new engine family


Daimler AG

High degree of modularity of the entire drive train…


Daimler AG

… all the way to fully electric drive trains


Legend: HEV = Hybrid Electric Vehicle; PHEV = Plug-in Hybrid Electric Vehicle; BEV = Battery Electric Vehicle; F-Cell = Fuel Cell Drive; HV = High-Voltage System; CE =

Combustion Engine; BC = Battery Cell

Daimler AG

With vehicle architecture and modular strategy, we will be more cost efficient, faster and more flexible


Powertrain E/E Chassis Exterior Interior

Daimler AG

We globally expand our production network

Additional: production service provider Valmet (Uusikaupunki, Finland for GLC-/A-Class), MagnaSteyr (Graz, Austria for G-Class) and AM General (USA for R-Class)


Daimler AG

Our target: remain No.1 premium car manufacturerachieved already in 2016!

Sales targetIn thousand units

Profitability targetReturn on Sales in %

on a sustainable basis

2,001

2015 2016

No. 1

2020


2,198

Daimler AG

Daimler Trucks



Daimler Trucks

Daimler AG

Daimler Trucks: product highlightsPresentation of the all-new heavy-duty truck FUSO Super Great


Daimler AG

Daimler Trucks: product highlightsFleetboard – the leading supplier of digital services for connected trucks


Daimler AG

Our strategy works. We keep executing it.

Technology Leadership in efficiency, safety and

connectivity

Global Market Presencein traditional and

emerging markets

Intelligent Platform Managementfor tailored products and

decisive economies of scale


Daimler AG

Selected milestones 2017

New Heavy-Duty

Truck for Japan

Daimler Trucks

@ North American

Commercial

Vehicles Show

Indonesia:

Market Introduction

MB Heavy-Duty

Truck

MB Active Brake

Assist 4 &

Sideguard

Assist

FleetBoard

SpaceMapping App

Pro

duct

New coach

for Japan

Truck Data

Center &

Mercedes-Benz

Uptime

Detroit Analytics &

Remote updates

Truckonnect

Asia

FleetBoard

Store for Apps

Serv

ice

SoP New

Cascadia

Connected

Fuso eCanter

Small series

Fuso eCanter

@ Tokyo Motor

Show


Daimler AG

The most efficient trucks are Daimler Trucks

Fuel reductions compared to previous model


Daimler AG

Safety: new industry firsts, now available in every new Actros

Industry’s first system with pedestrians detection

Next generation radar: Warning, initiates braking

Functions independently of weather conditions

Detects moving objects (pedestrians and cyclists)

Visual and audible warning (also while manoevring)

Covers entire length of vehicle (up to 18.75m)

Sideguard Assist

Active Brake Assist 4 (ABA 4)



Daimler Trucks further strengthens its global footprint

Daimler AG

Penetration rate integrated powertrain in %

Heavy-Duty

Engines HDEP

Automated Manual

Transmission DT12

Captive component strategy to strengthen undisputed

market leadership in NAFTA


95 95

As of June 2017Year End 2016

6476

As of June 2017Year End 2016

Daimler AG

Global Platform Roll-out will secure pass-car-like volumes in

next decade for Daimler Trucks

Today 20252020

Chassis Electrics/Electronics

Today 2020 2025 Today 2020 2025

Europe

Brazil

Russia

ChinaEurope

NAFTA

Brazil

China

Europe

Brazil

China JapanNAFTA

Cabin


Daimler AG

Sticking to our target: undisputed leader in the truck industry




496

2014 2015 2020

>500

over the cycle

Daimler AG

Mercedes-Benz Vans



Mercedes-Benz Vans

Daimler AG

Mercedes-Benz Vans: product highlightsMercedes-Benz Vito and Sprinter: “CEP* Vans of the Year 2017”


* courier, express and postal sectors

*Courier, Express and Parcel

Daimler AG

Mercedes-Benz Concept X-CLASS


Daimler AG

Our target: Most successful company in global Van business

321

2015 2016

>500

2020


over the cycle


359


Daimler AG

Daimler Buses



Daimler Buses

Daimler AG

Daimler Buses: product highlightsWorld premiere of the new touring coach Mercedes-Benz Tourismo RHD


Daimler AG

28

2015 2016

~45

2020


over the cycle


26


Our target: Undisputed leader in the bus industry

Daimler AG

Daimler Financial Services




Daimler AG

Daimler Financial Services offers a broad range of financial

and mobility services


Daimler AG

We finance nearly every second vehicle sold by DaimlerWE FINANCE NEARLY

EVERY SECOND VEHICLESOLD BY DAIMLER


54%

27%

Penetration rates per vehicle segment

44%29%

Global penetration rate DFS in Q2 2017

~50%

Daimler AG

Managing a portfolio of 134 billion € in 40 countries[Portfolio by region in % as of June 30, 2017]

38%

42%

12%

8% China

Africa &Asia Pacific

EuropeAmericas


Daimler AG

We offer a broad variety of financial and mobility services –serving approximately 20 million customers as of June 30, 2017

car2go customers

vehicles in fleet management

moovel customers

banking customers

financed orleased vehicles

insurance policies mytaxi customers


Daimler AG

Web App

puts car financing in the palm of your hand


Available in:

Web App

all makes,

models, and trims

Search for

Financing

license scan;

LinkedIn integration

Find a

Dealer

all brands and

dealers nationwide

Select

Your

Lender

instant credit

decision

Choose

Your Car

Integrated partners [as of July 2017]


Portfolio targetIn EUR bn

116.7

2015 2016 2020

Profitability targetReturn on Equity in %

Annual growth

≥ 5.5%

132.6

Our target: first-choice provider of financial and mobility

services

Daimler AG

CASE


Daimler Group StrategyCASE


Structural trends with strong impact on automotive industry


…leading to profound changes in the automotive industry

towards CASE

Daimler AG

Examples

For all CASE dimensions customer-focused products and

services developed


Electric trucks

Daimler AG

Connected



Connected


Digitalized ecosystems for cars and trucks

Daimler AG

„Mercedes me“ – Connecting all services around the car



Connectivity@Daimler Trucks: boosting logistics

performance (I)


Connectivity@Daimler Trucks: boosting logistics

performance (II)

Daimler AG

Turning the van into a data center on wheels


The future of logistics:• range of up to 270km

• fully automated cargo space

• integrated drones

World premiere

of the Vision Van

https://www.youtube.com/watch?v=ve63xdzc3hg

Daimler AG

Autonomous



Autonomous

Daimler AG

Autonomous driving goes far beyond technology:

A game changer in the automotive industry


Daimler AG

Examples


In all divisions leading in autonomous driving

Daimler AG

The new S-Class - On the way to autonomous and

accident-free driving



Development steps towards fully autonomous driving

Singe control functions

such as speed selection,

braking or lane keeping

are automated.

Driver in charge.

Level 1Driver

Assistance

Vehicle can perform the

dynamic driving task in

certain modes.

Driver expected to

respond to requests to

take control.

Vehicle can perform

the dynamic driving

task in all modes that

can also be managed

by a human driver.

No driver needed.

Vehicle can perform

the dynamic driving

task in certain

modes.

Driver not expected to

respond to requests to

take control.

Autonomous Driving

Level 2Partial

Automation

Level 3ConditionalAutomation

Level 4 High

Automation

Level 5 Full

Automation

+ enabler for new & complementary mobility services

More than one control

function is automated.

Driver expected to take

care of all remaining

aspects of the dynamic

driving task.

- Currently offered by MB

& legally permissible -

Daimler AG

map content, format, accuracy, coverage,

quality assurance, maintenance and

update concept


HD MAP for highly automated driving and HERE cooperation- illustrative examples -

• The HD Live Map is a mandatory part for the HAD*

system for planning and positioning

• The HD Map is the only sensor that delivers context

information and a long road horizon

• Close strategic cooperation with HERE for

HD MAP for highly automated driving and HERE cooperation

* Highly Automated Driving

Daimler AG

Intelligent Drive Components


Intelligent Drive Controller

Localization, signal processing, sensor

data fusion, planning, and control

Long Range Radar

Forward Object Sensing

Navigation System

Road Type, Speed, and Curvature

Multi Mode Radar

Side and Rear Object Sensing

Stereo Multipurpose Camera

Object, Lane, Light Source, Traffic Signs

Sensing Sensor fusion and decision making Sensing

Daimler AG

Sensors for Driver Assistance Package


Daimler AG

Bundling of our forces with Bosch


+

System

Sensor Algorithms

Motion Control

Environment Fusion

Behavior Generation

Embed. SW Infrastr.

Testing

IT & Process Support

Vehicle Control Center

• Vehicles

• Integration of systems

in vehicle line

• Hardware (Sensors,

Actors, ECUs)

• Software for HW

components

Our Intention: developing robotaxis – Launch date: beginning of next decade

Daimler AG

Highway Pilot

Proof of concept 2014

Serial tests in 9 European countries and USA,

over 100,000km on the road

Market introduction by the end of 2020

Highway Pilot Connect:

Proof of concept for Europe in 2015;

checking out new opportunities in other regions


Safety: semi-autonomous trucks customer-ready by 2020

Daimler AG

The future of public transport


Mercedes-Benz

Future Bus

https://www.youtube.com/watch?v=oBjFT9WAQxU

Daimler AG

Shared & Services



Shared & Services

Daimler AG

Within a digital ecosystem Daimler Financial Services caters

to a broad range of mobility demands


Daimler AG

Mobility Customer

“Somebody needs to

offer the individual

mobility service

to customers”

Service Platform


turn various mobility

options into one-stop-

shopping solutions”

“Customers will expect

mobility options to be

seamlessly integrated

into their digital life

sphere“

MetaPlatform

“Somebody needs

to take care of

the vehicles”

Fleet Operator

“Somebody needs

to pay for and

own the vehicle”

Asset Provider


develop, produce and

sell the vehicle”

VehicleManufacturer

Consuming „mobility-

as-a-service/

robo car services“

AggregatorPlatform

We are preparing for themobility value chain of tomorrow


Daimler AG

is the world‘s market leader in flexible car sharing

2.0

2.6

06/2016 06/2017

Number of customers[in mn]

+30%

Find Find a car2go next to you – with or without reservation.

Whenever you need it. Available in 26 cities as of June 30,

2017.

Drive Simply open your car2go with your smartphone

and start driving – as long as you want.

Park After having arrived, park your car2go on any

parking lot within the business area. That‘s it!

P


YTD 06/17

Transactions in millions

12.5

Daimler AG

has become Europe’s largest taxi-hailing provider

3.0

8.2*

06/2016 06/2017

Number of customers[in mn]

+177%

Step 1 Order your cab via

your smartphone.

Available in more than 65

cities as of June 30, 2017.

Step 3 Get real-time information

about estimated arrival

Step 2 Directly get in touch

with your driver

Step 4 Pay your ride with

just one swipe


* Including:

YTD 06/17

Transactions in millions

26.0

customers of Hailo merger

and Taxibeat acquisition

Excluding:

Clever Taxi

Daimler AG

Electrified



Electrified

Daimler AG

Resource allocation aligned to e-mobility ramp-up

Daimler Corporate Presentation / Q2 2017 / 90Page

Daimler AG

Rollout of plug-in-hybrids as important step:

Already 8 models on the market and more to come soon…


Daimler AG

Ambitious Re-Definition of our EV market targets


Daimler AG

New brand EQ – Electric mobility@Mercedes-Benz Cars


Daimler AG

EQ concept vehicle with battery-electric drive


Daimler AG

Foundation of new Mercedes-Benz electric vehicle strategy


Daimler AG

New e-mobility platform: modular set up of drive train

technologies will allow a variety of derivatives


Illustrative

96Page

Daimler AG

Flexible integration of e-mobility in global production network

• Incl. Planned locations/wo smart, AMG and production service provider


* Incl. planned locations w/o smart, AMG and production service provider

Daimler AG

Investment of 500 million euros in our second battery plant

in Germany


2nd plant start of operations:

summer 2018

Production space stocked up

from 20,000 to 80,000sqm

Production of Li-Ion batteries

for hybrid as well as electric

vehicles and energy storage

systems

Deutsche ACCUMOTIVE GmbH & Co. KG, Kamenz, Germany

Daimler AG

Investment of 655 million euros by Daimler and BAIC Motor

in our battery plant at BBAC in China


The factory of BBAC in Beijing with included battery production, China

55,000sqm Production space

new constructed

Start of operations:

summer 2019

Production of Li-Ion batteries

for electrical vehicles

Supply of local production of

battery-powered vehicles in

plant compound of BBAC

Daimler AG

Cumulated Sales of EV/Hybrids

0

40,000

80,000

120,000

160,000

200,000

2009 2010 2011 2012 2013 2014 2015 2016 1HY 2017

Smart Electric Vehicles

Mercedes Benz Electric Vehicles

Mercedes Benz Hybrids

S-Class

Hybrid

smart

fortwo ed

E-Class

Hybrid

B-Class

S-Class

C-Class GLE

C-Class Estate

GLC

C-Class

Long wheel-base

GLC Coupe

smart forfour

smart fortwo

smart cabrio


Daimler AG

Our eTrucks for light and heavy distribution hit the road as

low-volume series in 2017


Mercedes-Benz Electric Truck

Range: up to 200km

Cost: ca. –40% for electricity vs. Diesel

Market: innovation fleet in 2017;

market introduction in 2020

FUSO eCanter

Range: up to 100km, modular battery system

Cost: 1,000€/10,000km lower running costs vs. fuel

Market: 150 trucks on the road in EU, Japan, USA in 2017;

market introduction in 2019

Daimler AG

China

CONTENTS

Key figures


Group financials


ChinaOutlook

Appendix


Daimler AG

Daimler in China

Beijing

Fuzhou

Shenzhen

Trucks & Buses

Production & Distribution

Mercedes-Benz Vans


NEV Development


Mercedes-Benz Cars

Distribution

Auto Finance

R&D

Production


Daimler AG

The 6 key initiatives for China

Extension Product PortfolioExpansion Dealer Network

Extension Local Production Leverage Financial ServicesExtension Local R&D

Integrated Sales Organization


Daimler AG

Mercedes-Benz Cars in China: huge sales growth with higher

share of locally produced vehicles- in thousands of units -

locally produced

imported


208239

293

400

305

2017

YTD 06

201420132012 2015

108

100

123

116

147

146

150

250

94

211

488

2016

171

317

Daimler AG

+…

Made in China for China: we’re producing four car models

and three engine models at BBAC

GLC (X253)

E-Class (V/W 213)

C-Class (V/W 205)

GLA (X156)

M270

M274

M276

Rear

wheel

drive

Engine

Front

wheel drive


As annouced in July

2017, a localized

BEV model under

EQ brand will be

produced in BBAC

Daimler AG

The superlative new E-Class Long Wheelbase: the most

intelligent executive sedan in the market


Sales growth YTD H1-17:

+106%

Daimler AG

The locally produced V-Class and Vito: tailored to Chinese

customer requirements

All new V-ClassLaunched in March 16

All new VitoLaunched in September 16


Sales growth YTD H1-17:

+ 90%

Daimler AG

Mercedes-Benz Network Development in China

Number of Outlets

502

447

341

262

207

166

539

2010 2011 2013 20152014

+55

529

+79

2016

+41

+106

+55

YTD 20172012


+27 +10

Daimler AG

Outlook

CONTENTS

Key figures


Group financials


China

OutlookAppendix


Daimler AG

Assumptions for automotive markets in 2017


* including light-duty trucks

Car markets

Global

Europe

Medium- and

heavy-duty truck

markets

NAFTA region

EU30

Japan*

Brazil

EU30

Bus marketsEU30

Brazil

+1 to 2%

slight decrease, with Class 8 weaker than Class 6-8

USA

Van markets

Indonesia*

China slight growth

USA

around the prior-year level


slight decrease


slight growth

significant growth from low level

slight growth

slight decrease

significant growth

slight growth

Daimler AG

2017 sales outlook


Significantly higher unit sales

Further growth particularly in China and Europe

Strong momentum especially from new E-Class models and SUV portfolio


Significant growth in core market EU30

Continued momentum from “Mercedes-Benz Vans goes global” strategy


Maintain market leadership in core markets

Moderate growth in EU30 region, significant sales increase in Brazil

Mercedes-Benz Cars

Daimler Trucks

Mercedes-Benz Vans

Daimler Buses

Slightly higher unit sales

Unit sales around the prior-year level in Europe and Japan; slight growth in North America

Sales in Brazil around the low level of prior year; sales increase in Indonesia and India

Daimler AG

2017 outlook for EBIT


Significantly above the prior-year level

Around the prior-year level

Slightly above the prior-year level

Around the prior-year level

Slightly above the prior-year level

We expect Group EBIT for FY 2017 to increase significantly

based on the following expectations for divisional EBIT:

Mercedes-Benz Cars

Daimler Trucks

Mercedes-Benz Vans

Daimler Buses


Daimler AG

Appendix

CONTENTS

Key figures


Group financials


China

Outlook

Appendix


Daimler AG

Strong financial and balance sheet figures support our

financial strength and A-rating


Daimler Group Dec. 31, 2016 June 30, 2017

Equity ratio 22.9% 24.6%

Gross liquidity 21.7 21.8

Funded status of pension obligations -7.8 -8.1

Funding ratio 75% 74%

Industrial business

Equity ratio 44.7% 47.9%

Net liquidity 19.7 18.4

Free cash flow (January-June) 2.1 3.0

in billions of euros

Daimler AG

Higher units sales in all divisions


Q2 2016 Q2 2017 % change

Daimler Group 761.3 822.5 +8

of which

Mercedes-Benz Cars 546.5 595.2 +9

Daimler Trucks 108.3 116.4 +8

Mercedes-Benz Vans 99.6 103.4 +4

Daimler Buses 7.0 7.5 +8

in thousands of units

Daimler AG

Revenue by division


Q2 2016 Q2 2017 % change


of which

Mercedes-Benz Cars 22.1 23.6 +7

Daimler Trucks 8.7 9.0 +4

Mercedes-Benz Vans 3.4 3.3 -3

Daimler Buses 1.1 1.2 +3

Daimler Financial Services 5.0 5.9 +18

Contract volume of Daimler Financial Services* 132.6 134.2 +1


* figures as of December 31, 2016 and June 30, 2017

Daimler AG

Revenue by region


* excluding revenue of not fully consolidated companies

Q2 2016 Q2 2017 % change


of which

Europe 16.4 17.2 +4

of which Germany 6.2 6.0 -2

NAFTA 11.5 11.8 +3

of which United States 10.0 10.2 +2

Asia 8.4 9.6 +14

of which China* 3.9 4.7 +18

Other markets 2.3 2.6 +13


Daimler AG

Group EBIT in Q2 2017


- in millions of euros -

-465 3,746

-2183,258

+135+278

• Cars +368• Trucks -14• Vans -57• Buses -19

• Cars +83• Trucks +23• Vans +22• Buses +7

• Cars -256• Trucks -127• Vans -68• Buses -14

+715

Actual

Q2 2016

Volume/

Structure/

Net pricing

Foreign

exchange

rates

Other cost

changes

Actual

Q2 2017

ReconciliationFinancial

Services

+43

Disclosed

items

Q2 2016

of which:

• Cars:Remeasurementof inventories +284

Patent dispute +64

• Cars and Vans:Takata airbags +499

• Reconciliation:Pension plan assets -605

Legal proceedings +400

Daimler AG

EBIT by division


Q2 2016 Q2 2017

- EBIT in millions of euros; RoS/RoE in % - EBIT RoS/RoE* EBIT RoS/RoE*

Daimler Group 3,258 8.3 3,746 9.2

of which

Mercedes-Benz Cars 1,410 6.4 2,404 10.2

Daimler Trucks 621 7.2 543 6.0

Mercedes-Benz Vans 401 11.7 358 10.8

Daimler Buses 88 7.8 64 5.5

Daimler Financial Services 479 19.3 522 18.8

Reconciliation 259 – -145 –

* Return on sales for automotive business, return on equity for Daimler Financial Services; Daimler Group excluding Daimler Financial Services

Daimler AG

Development of dividend per share


2.20

2.452.25

- in euros -

+ 48%

3.25

2012 2013 20162014 2015

3.25

Daimler AG

Capital expenditure / Research and development



Actual

2015

Actual

2016

5.1

Plan

2017/2018

(average p.a.)

5.9

7.1

Actual

2015

Actual

2016

6.6

7.68.1

Plan

2017/2018

(average p.a.)

Investment in property, plant and equipment


Daimler AG

Capital expenditure / Research and development


Investment in property, plant and equipment


Actual2015

Actual

2016Plan*

2017-2018Actual2015

Actual

2016Plan*

2017-2018

Daimler Group 5.1 5.9 7.1 6.6 7.6 8.1

of which

Mercedes-Benz Cars 3.6 4.1 5.2 4.7 5.7 6.1

Daimler Trucks 1.1 1.2 1.2 1.3 1.3 1.3

Mercedes-Benz Vans 0.2 0.4 0.6 0.4 0.4 0.5

Daimler Buses 0.1 0.1 0.1 0.2 0.2 0.2

Daimler Financial Services 0.03 0.04 0.03 – – –


* average p.a.

Daimler AG

Daimler Trucks: incoming orders increase, primarily driven by

NAFTA region and Indonesia




Q2 2016

94

114

Q2 2017

21

36

7

39

20

25

7

32

Rest of world

Latin America

NAFTA region

EU30*

Asia10

11

Daimler AG

Mercedes-Benz Vans: sales increase by 4% due to market

success of attractive product portfolio



Q2 2016

99.6103.4

Q2 2017

7.1

15.7

29.3

51.2

6.9

13.9

24.7

54.1

Vito

V-Class

Citan

Sprinter

Daimler AG

Daimler Buses: sales increase by 8% mainly due to higher

demand in emerging markets




Q2 2016

7.0

7.5

Q2 2017

2.2

1.0

2.1

1.3

2.2

0.6

1.8

1.2

Rest of world

Brazil

Mexico

EU30*

Latin America(excl. Brazil and Mexico)

1.2

0.9

Daimler AG

Daimler Financial Services: further increase in contract

volume to 134.2 billion euros (+1%)



12/31/2016

132.6 134.2

6/30/2017

23.0

33.1

51.3

26.7

21.8

31.6

54.2

24.9

Americas

Europe (excl. Germany)

Germany

Africa & Asia-Pacific

Daimler AG

Daimler Financial Services: net credit losses* at low level

due to disciplined risk approach


* as a percentage of portfolio, subject to credit risk

0.69% 0.68%

0.50%

0.61%

0.36%

0.51%

0.89%0.83%

0.43%

0.34% 0.37%0.31%

0.24%0.31%

0.24%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2017

YTD

2015 2016

Daimler AG

Capital expenditure Mercedes-Benz Cars

3.3

1,6982,457

2009

1,618

4.6

2010

2,724

3.9

4.74.7

2,246

2006 2007

1,910

3.6

2008

5.7

2011

3,710 3,621

5.8

2013

3,495

2012

4.9

20162015

4.6

2014

4,147

4.3

3,629

CapEx ratio for pp&e** in % CapEx for pp&e* in millions of euros

* Capital expenditure for property, plant and equipment (pp&e) MBC

** Capital expenditure for property, plant and equipment (pp&e) MBC in % of revenues MBC

Target CapEx ratio for pp&e: around 5%


Daimler AG

Research and development expenditure Mercedes-Benz Cars

3,733

2016

6.4

2015

5.6

2014

3,863

5.5

2013

3,809

5.9

2012

4,025

6.3

2011

4,711

6.5

2010

5,671

5.9

2009

6.5

2008

2,274

6.3

2007

5.2

2006

4.4

3,1302,6962,9942,733

R&D expediture* in millions of eurosR&D ratio** in %

* Expensed R&D costs and capitalized development costs MBC

** Expensed R&D costs and capitalized development costs MBC in % of revenues MBC

Target R&D ratio: around 6–7%


Daimler AG

Mercedes-Benz Cars retail sales by model Q2 2017

* incl. Derivatives

** incl. GLA

- in units -


Q2 2017 Q2 2016 Change in %

583,649 523,132 +11.6

of which*: A-/B-Class 108,839 112,629 -3.4

C-Class 132,539 121,589 +9.0

E-Class 103,874 69,036 +50.5

S-Class 18,683 22,740 -17.8

SUVs** 196,906 177,304 +11.1

Sports Cars 6,845 6,955 -1.6

V-Class 15,963 12,879 +23.9

35,718 38,057 -6.1

619,367 561,189 +10.4

Mercedes-Benz

Mercedes-Benz Cars

smart

Retail sales

Daimler AG

- in units -

*Incl. Hong Kong **BRIKT: Brazil, Russia, India, South Korea and Turkey


Mercedes-Benz Cars retail sales in major markets Q2 2017

Retail sales Q2 2017 Q2 2016 Change in %

China* 154,792 118,267 +30.9

of which locally produced vehicles 107,783 78,538 +37.2

USA 83,733 88,338 -5.2

Germany 90,605 88,465 +2.4

UK 45,988 43,908 +4.7

BRIKT** 41,545 35,720 +16.3

Italy 26,693 25,597 +4.3

France 20,309 18,834 +7.8

Japan 15,955 15,338 +4.0

South Korea 18,214 11,264 +61.7

Spain 15,430 14,182 +8.8

Canada 12,399 11,462 +8.2

Russia 9,771 9,448 +3.4

Turkey 6,687 9,221 -27.5

Rest of World 111,918 101,078 +10.7

Mercedes-Benz Cars 619,367 561,189 +10.4

Daimler AG

Financial Policy

Clear commitment to a single A rating

Dividend policy on a sustainable basis (40% target pay-out ratio)

No share buybacks planned, further pension contributions will be evaluated

Balanced approach between shareholder interest and credit providers


Daimler AG

Bond Maturities- in billions of euros -


Total

Q2 20170-1 Y 1-2 Y 2-3 Y 3-4 Y 4-5 Y 5-6 Y >6 Y

Bonds long term 63,3 -13,6 -10,9 -17,4 -4,0 -6,8 -2,0 -8,7

Total

Q2 2017Q3 2017 Q4 2017 Q1 2018 Q2 2018

Next 12

months

Bonds short term 63,3 -3,3 -2,2 -4,7 -3,4 -13,6

Bonds total outstanding as of Q2 2017: 63,3

Daimler AG

Bonds and ABS Development 2014 - 2016

Note: Figures may not be additive due to fx effects and rounding.



Bond development

ABS development

Maturities

New deals

10,2

10,2

63,0

20,9

50,8

16,9

42,9

2016 Actual2015 Actual2014 Actual

5,8

6,410,6

7,9

7,46,26,0

2016 Actual2015 Actual2014 Actual

Daimler AG

Financial Flexibility over a 12-month period


The financial flexibility provides support to mitigate risk and volatility

through a balanced mix of funding instruments and clear principles

Daimler follows a financial management to safeguard our A-rating

and thus our attractive refinancing conditions

Available or short-term accessible liquidity is higher than the total

maturities over the next 12 months

A high financial flexibility is a key support to our A-Rating

The current liquidity position reflects the volatile market

environment, the currently required high investments for our future

business model and the required financial flexibility for our businessAvailable oraccessible

liquidity

42.2

39.5

Maturitiesover next

12 months

Other

Bank loans

Bonds

Accountdeposits

Commercialpaper


Creditfacility

LiquidityFinancialServices

Liquidityindustrialbusiness

ABSpotential

Daimler AG

Our funding strategy is built on prudent principles

Targeting

Financial

Independence

No dependence from single markets, instruments, banks or investors

Diversification of funding sources and instruments:

Bank Loans, Bonds, ABS, CP, Deposits

No Covenants, no MAC, no asset pledges, no CSAs

Maximizing

Financial

FlexibilityEarly capital market funding to save credit capacity in growth regions

New markets funded via global and local banks first

Stringent Global

Funding Policy

Liquidity matched funding

Interest rate matched funding

Currency matched funding

Country matched funding

Keeping prudent amount of Cash and Committed Credit Facility


Daimler AG

Disclaimer


This document contains forward-looking statements that reflect our current views about future events. The words “anticipate,” “assume,” “believe,”

“estimate,” “expect,” “intend,” “may,” ”can,” “could,” “plan,” “project,” “should” and similar expressions are used to identify forward-looking

statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in

particular a decline of demand in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets;

events of force majeure including natural disasters, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our

sales, purchasing, production or financial services activities; changes in currency exchange rates; a shift in consumer preferences towards smaller,

lower-margin vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our

production capacities; price increases for fuel or raw materials; disruption of production due to shortages of materials, labor strikes or supplier

insolvencies; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization measures; the

business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic cooperations and joint

ventures; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety; the

resolution of pending government investigations or of investigations requested by governments and the conclusion of pending or threatened future

legal proceedings; and other risks and uncertainties, some of which we describe under the heading “Risk and Opportunity Report” in the current

Annual Report. If any of these risks and uncertainties materializes or if the assumptions underlying any of our forward-looking statements prove to be

incorrect, the actual results may be materially different from those we express or imply by such statements. We do not intend or assume any

obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication.

Daimler Investor Relations Corporate Presentation-Q2 2017

Automotive

Transcript of Daimler Investor Relations Corporate Presentation-Q2 2017