Corporate Presentation Spring 2015

1

Contents HIGHLIGHTS AND RESULTS FOR Q1 2015 DAIMLER GROUP STRATEGY

DIVISIONAL INFORMATION OUTLOOK FOR 2015 APPENDIX 2

Mercedes-Benz Cars: product highlights

New Mercedes-Benz GLE Coupé

New Mercedes-Benz CLA Shooting Brake

New Mercedes-Maybach S 600 Pullman

Research vehicle F 015 Luxury in Motion

3

Daimler Trucks: product highlights

Mercedes-Benz Actros wins the “Fuel Duel”

Mercedes-Benz Econic NGT with natural-gas engine

Western Star 5700XE

BharatBenz tractor trailers

4

Mercedes-Benz Vans: product highlights

Mercedes-Benz Vito Tourer

Mercedes-Benz Marco Polo compact camper van of the year

Mercedes-Benz Vito 4x4 Panel Van

Mercedes-Benz Metris for the North American market

5

Daimler Buses: product highlights

Mercedes-Benz CapaCity L

Mercedes-Benz and Setra buses in annual winter tests

Setra ComfortClass 500 and TopClass 500

Setra TopClass 400 double-decker bus

6

Highlights of Q1 2015 Group unit sales

641,600

+13%

Highest unit sales ever at Mercedes-Benz Cars

459,700

+18%

€2.9bn

+41%

Increase in EBIT from ongoing business

Premiere of the new Mercedes-Benz GLE Coupé Start of production of the new Mercedes-Benz CLA Shooting Brake World debut of the new Mercedes-Maybach S 600 Pullman World premiere of the new research vehicle F 015 Luxury in Motion Premiere of the new Mercedes-Benz Metris mid-size van for North America 7

Key financials – in billions of euros –

Q1 2014

Q1 2015

29.5

34.2

as reported

1.8

2.9

from ongoing business

2.1

2.9

Net profit

1.1

2.1

Earnings per share (in euros)

0.96

1.83

Revenue EBIT

Net liquidity industrial business (2014: year-end) Free cash flow industrial business

8

17.0

20.5

0.7

2.3

Key balance sheet figures – in billions of euros –

Daimler Group

Dec. 31, 2014

March 31, 2015

Equity ratio

22.1%

21.0%

Gross liquidity

16.3

19.0

Equity ratio

40.8%

37.7%

Net liquidity

17.0

20.5

Industrial business

9

Net industrial liquidity: development in Q1 2015 – in billions of euros – Free cash flow industrial business Q1 2015: €2.3bn +2.8

-0.4

-0.1

Earnings and other cash flow impact

Working capital impact

Pension/ healthcare

+1.2

20.5

Other

Net industrial liquidity 3/31/2015*

17.0

Net industrial liquidity 12/31/2014* * Dividend not paid out until April

10

(mainly FX effect)

Unit sales – in thousands of units –

Q1 2014 Daimler Group

Q1 2015

% change

565.8

641.6

+13

Mercedes-Benz Cars

389.5

459.7

+18

Daimler Trucks

108.5

112.4

+4

Mercedes-Benz Vans

61.1

63.8

+4

Daimler Buses

6.7

5.7

-15

of which

11

Revenue by division – in billions of euros – Q1 2014

Daimler Group

Q1 2015

% change

29.5

34.2

+16

17.0

19.5

+15

Daimler Trucks

7.1

8.4

+18

Mercedes-Benz Vans

2.2

2.4

+9

Daimler Buses

0.9

0.9

+2

Daimler Financial Services

3.8

4.5

+19

99.0

108.7

+10

of which Mercedes-Benz Cars

Contract volume of Daimler Financial Services* * Figures as of December 31, 2014 and March 31, 2015.

12

EBIT by division – EBIT in millions of euros; RoS in % – Q1 2014 EBIT Daimler Group

Q1 2015 RoS*

EBIT

RoS*

1,787

5.4

2,906

8.4

1,183

7.0

1,841

9.4

Daimler Trucks

341

4.8

472

5.6

Mercedes-Benz Vans

123

5.6

215

8.9

53

6.2

34

3.9

Daimler Financial Services

397



409



Reconciliation

-310



-65



of which Mercedes-Benz Cars

Daimler Buses

* Return on sales; Daimler Group excluding Daimler Financial Services

13

Contents HIGHLIGHTS AND RESULTS FOR Q1 2015 DAIMLER GROUP STRATEGY

DIVISIONAL INFORMATION OUTLOOK FOR 2015 APPENDIX 14

Clear aspiration for all our divisions

Mercedes-Benz Cars

Daimler Trucks

“Most successful premium manufacturer”

“No 1 in the global truck business”

Mercedes-Benz Vans “Most successful player in worldwide van business”

Daimler Buses “No 1 in the global bus business”

Daimler Financial Services “Best financial and mobility services provider” 15

15

Profit targets Profit targets [Return on Sales / Return on Equity1) in %]

10 8 Mercedes-Benz Cars

Daimler Trucks

9 Mercedes-Benz Vans

6 17 Daimler Buses

Daimler Financial Services

Return on sales-target for the automotive business : 9 percent 1) Daimler Financial Services 16

The four strategic growth areas of Daimler Core business

New growth markets

Clean, safe, connected

Mobility concepts & DigitalLife

17

Contents HIGHLIGHTS AND RESULTS FOR Q1 2015 DAIMLER GROUP STRATEGY DIVISIONAL INFORMATION OUTLOOK FOR 2015 APPENDIX 18

Mercedes-Benz Cars

19

Mercedes-Benz GLE Coupe

4

new high-margin Mercedes-Benz SUVs in 2015

20

Mercedes-Benz CLA Shooting Brake

1,354 L

21

maximum load capacity

Mercedes-AMG GT

3.8 s

from zero to 100 km/h

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. 22

By significantly expanding our portfolio we create the basis for further profitable growth



+

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. 23

Plug-In vehicles:

CO2-emissions (g/km)

- Huge lever to improve MBC fleet consumption 230 220 210 200 190 180 170 160 150 140 130 120 110 100 0 24 24

230

-40% 183 173

160

158

-7%

150

140

134

129

125

EU Legislation 95

9.2 l

7.3 l

6.9 l

6.4 l

1995

2007

2008

2009

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, 6.3 l 6.0 l 5.6 l 5.4 l 5.2 l 5.0 lCO2 emissions combined: 224-219 g/km.

500 over the cycle

2015

2020

Daimler Financial Services

43 43

Strong business growth – Contract volume [€ billion]–

99

44

56

59

2006

2007

63

2008

58

2009

64

2010

72

2011

80

2012

84

2013

2014

Services become an ever-more important part of our business model Financing Insurance Leasing Mobility Services Fleet Management Banking Services Mercedes-Benz Rent

* Global average penetration rate with regard to passenger cars and commercial vehicles 45

Nearly every second vehicle delivered to customers worldwide is being financed or leased*

Mobility services on growth path

>1,000,000

46

people use our mobility services

Contents HIGHLIGHTS AND RESULTS FOR Q1 2015 DAIMLER GROUP STRATEGY

DIVISIONAL INFORMATION OUTLOOK FOR 2015 APPENDIX 47

Our product offensive continues 2015 • 2015 Mercedes-Benz Cars MercedesMaybach

MercedesAMG GT

CLA Shooting Brake

GLE Coupé

GLE

Mercedes-Benz Vans Vito panel van / Vito Tourer (Europe)

Metris (Vito NAFTA)

Vito (Latin America)

Daimler Trucks Western Star 5700XE

MB Unimog off-road

Econic NGT

BharatBenz 3413

Arocs HAD

Daimler Buses Mercedes-Benz CapaCity

48

MB Citaro NGT

Setra MultiClass Low Entry 3-Axle

BharatBenz Buses

Assumptions for automotive markets in 2015 Car markets

Global

around +3%

Western Europe

slight growth

USA

slight growth

China

Medium- and heavy-duty truck markets

Van markets Bus markets * including light-duty trucks

49

significant growth

NAFTA region

+10 to 15%

Europe

+5 to 10%

Japan*

around the prior year level

Brazil

around -30%

Indonesia*

around -20%

Europe

slight growth

Europe

slight growth

Brazil

at least -20%

2015 sales outlook • Significantly higher unit sales based on young and attractive product portfolio • Strong momentum from full availability of new C-Class and smart models • Launch of all-new Mercedes-Maybach, Mercedes-AMG GT, CLA Shooting Brake and GLE Coupé • Significantly higher unit sales due to strong product portfolio • Strong order backlog, especially in NAFTA region • Growth potential due to new Asia Business Model • Significantly higher unit sales • Strong momentum from full availability of new Vito and V-Class • Product expansion to North and South America

• Significant decrease in unit sales • Maintain market leadership in Western Europe and Brazil • Stable sales development in Europe, significant sales decrease in Latin America 50

2015 outlook for EBIT from ongoing business We expect Group EBIT for FY 2015 to increase significantly based on the following expectations for divisional EBIT: Significantly above the prior-year level Significantly above the prior-year level Significantly above the prior-year level Significantly below the prior-year level

Slightly above the prior-year level Daimler Financial Services

This guidance is based on current outlined market expectations and current exchange-rate expectations. 51

Contents HIGHLIGHTS AND RESULTS FOR Q1 2015 DAIMLER GROUP STRATEGY

DIVISIONAL INFORMATION OUTLOOK FOR 2015 APPENDIX 52

EBIT from ongoing business – EBIT in millions of euros; RoS in % – Q1 2014 EBIT Daimler Group

Q1 2015 RoS*

EBIT

RoS*

2,072

6.5

2,930

8.5

1,183

7.0

1,794

9.2

Daimler Trucks

346

4.9

536

6.4

Mercedes-Benz Vans

123

5.6

221

9.2

54

6.3

35

4.0

Daimler Financial Services

397



409



Reconciliation

-31



-65



of which Mercedes-Benz Cars

Daimler Buses

* Return on sales; Daimler Group excluding Daimler Financial Services

53

Group EBIT in Q1 2015 – in millions of euros –

+261

• • • •

Cars Trucks Vans Buses

-43 +130 -37 +26

+12

+34

+76

+770

• • • •

Cars Trucks Vans Buses

-34 of which: • Sale of property in USA +87 • Sale of Atlantis Foundries -55 • Hedge of Tesla share price* +161 • Put option for RRPSH* +118

+90 -67 +38 -27

1,787 • • • •

Actual Q1 2014 * in Q1 2014

54

Cars Trucks Vans Buses

+563 +127 +97 -17

Volume/ Structure/ Net pricing

Foreign exchange rates

Other cost changes

2,906

Financial Services

Reconciliation

Special items affecting EBIT

Actual Q1 2015

Special items affecting EBIT – in millions of euros – 1st quarter Mercedes-Benz Cars Restructuring of sales organization in Germany*

2014 –

-20

Relocation of MBUSA headquarters



-20

Sale of property in USA



+87

Daimler Trucks Workforce adjustments**

-5

-5

Restructuring of sales organization in Germany*



-4

Sale of Atlantis Foundries



-55



-4



-2

-1





-1

-118



-161



Mercedes-Benz Vans Restructuring of sales organization in Germany*

Relocation of MBUSA headquarters Daimler Buses Business repositioning Restructuring of sales organization in Germany* Reconciliation Measurement of put option for Rolls-Royce Power Systems Holding Hedge of Tesla share price

* We expect expenses for the restructuring of the sales organization in Germany in a total of up to €500 million in 2015 and 2016. ** Daimler Trucks expects expenses of up to €50 million in 2015.

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2015

Mercedes-Benz Cars: further growth through success of attractive models Unit sales

Revenue

EBIT from ongoing business

– in thousands of units –

– in billions of euros –

– in millions of euros –

460 389

17.0

19.5

1,794 1,183

Q1 2014 56

Q1 2015

Q1 2014

Q1 2015

Q1 2014

Q1 2015

Mercedes-Benz Cars: EBIT from ongoing business – in millions of euros –

+ 611

Higher unit sales

9.2%*

Net pricing

1,794

7.0%*

Efficiency enhancements

1,183

Regional structure Higher expenses for new technologies, future products and additional capacity Foreign exchange rates

EBIT Q1 2014 * Return on sales

57

EBIT Q1 2015

Mercedes-Benz Cars: sales volume at new record level – in thousands of units –

389 23

460 30

smart

86

SUV segment

129

Compact cars

75

113

C-Class

81

71

E-Class

29

32

S-Class

Q1 2014

Q1 2015

81 100

58

Mercedes-Benz Cars: balanced sales structure – Unit sales in thousands –

460 389

109

Rest of world

111

Western Europe excl. Germany

65

Germany

88

United States

70

87

China

Q1 2014

Q1 2015

90 93 59 77

59

Daimler Trucks: successful development in heterogeneous market environment Unit sales

Revenue

EBIT from ongoing business

– in thousands of units –

– in billions of euros –

– in millions of euros –

109

112

8.4

536

7.1 346

Q1 2014 60

Q1 2015

Q1 2014

Q1 2015

Q1 2014

Q1 2015

Daimler Trucks: EBIT from ongoing business – in millions of euros –

+ 190

6.4%* Higher unit sales in NAFTA region

4.9%*

Foreign exchange rates

346

Efficiency enhancements

536

Lower unit sales in Latin America and Indonesia Higher warranty costs and expenses for additional capacity

EBIT Q1 2014 * Return on sales

61

EBIT Q1 2015

Daimler Trucks: higher unit sales in NAFTA region – in thousands of units –

109

112

11

16

Rest of world

41

37

Asia

7

Latin America

41

NAFTA region

12

11

Western Europe

Q1 2014

Q1 2015

10 35

62

Daimler Trucks: incoming orders at a high level – in thousands of units –

134

130

15 44 10

63

21

Rest of world

37

Asia Latin America

3

52

52

NAFTA region

13

17

Western Europe

Q1 2014

Q1 2015

Mercedes-Benz Vans: success in volatile markets

Unit sales

Revenue

EBIT from ongoing business

– in thousands of units –

– in billions of euros –

– in millions of euros –

61.1

63.8

2.2

2.4

221

123

Q1 2014 64

Q1 2015

Q1 2014

Q1 2015

Q1 2014

Q1 2015

Mercedes-Benz Vans: EBIT from ongoing business – in millions of euros –

+ 98 9.2%* 221 5.6%* 123

EBIT Q1 2014 * Return on sales

65

Higher unit sales in Europe and NAFTA region Model mix

Foreign exchange rates

EBIT Q1 2015

Mercedes-Benz Vans: higher unit sales – in thousands of units –

61.1

Vario 0.2

37.3

40.9

Sprinter

13.5

13.2

Vito

5.5 4.7

5.9 3.8 Q1 2015

Q1 2014 66

63.8

V-Class Citan

Daimler Buses: EBIT at a high level despite significant market contraction in Latin America Unit sales

Revenue

EBIT from ongoing business

– in thousands of units –

– in billions of euros –

– in millions of euros –

6.7

0.9

0.9 54

5.7

35

Q1 2014 67

Q1 2015

Q1 2014

Q1 2015

Q1 2014

Q1 2015

Daimler Buses: EBIT from ongoing business – in millions of euros –

- 19

6.3%* 54

Higher unit sales and model mix in Western Europe Foreign exchange rates Significantly lower unit sales in Latin America

EBIT Q1 2014 * Return on sales

68

4.0%* 35

EBIT Q1 2015

Daimler Buses: lower demand for bus chassis – in thousands of units –

6.7 0.5 0.5

5.7 0.5 0.7

Rest of world Latin America (excl. Brazil and Mexico)

2.2

Brazil

0.7

0.6

Mexico

1.5

1.7

Europe

Q1 2014

Q1 2015

3.5

69

Daimler Financial Services: further business growth

New business

Contract volume

EBIT from ongoing business

– in billions of euros –

– in billions of euros –

– in millions of euros –

13.2

99.0

108.7

9.8

Q1 2014 70

Q1 2015

12/31/2014

3/31/2015

397

409

Q1 2014

Q1 2015

Daimler Financial Services: EBIT from ongoing business – in millions of euros –

+ 12

20.4%*

23.7%* 397

Higher contract volume

409

Foreign exchange rates Higher expenses due to business growth

EBIT Q1 2014 * Return on equity

71

EBIT Q1 2015

Daimler Financial Services: higher contract volume – in billions of euros –

108.7 99.0

18.4

Africa & Asia/Pacific

48.4

Americas

21.7

23.0

Europe (excl. Germany)

18.7

18.8

Germany

12/31/2014

3/31/2015

15.4

43.1

72

Daimler Financial Services: net credit losses* at low level

0,89% 0,69%

0,68% 0,50%

0,83%

0,61%

0,51% 0,36%

0,43%

0,34% 0,37%

0,31% 0.20%

2003

2004

2005

2006

* as a percentage of portfolio, subject to credit risk

73

2007

2008

2009

2010

2011

2012

2013

2014

2015 YTD

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 worsening of the sovereign-debt crisis in the euro zone; an increase in political tension in Eastern Europe; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, epidemics, acts of terrorism, political unrest, 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 official investigations 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.

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