daimler corporate presentation q1 2017

Q1 2017Corporate Presentation

Daimler AG

CONTENTS

Key figuresDivisional information

Group financials

Daimler Group Strategy

China

Outlook

Appendix

Daimler AG Daimler Corporate Presentation / Q1 2017 / Page 2

Daimler AG

Highlights of Q1 2017

Daimler Corporate Presentation / Q1 2017 / Page 3

Completion of the E-Class model family with the new E-Class Coupé and E-Class Cabriolet

Start of production of the newly redesigned Mercedes-Benz GLA compact SUV

Launch of Truck Data Center and the new digital services Mercedes-Benz Uptime and FleetBoard Manager

Strategic investment in charging solution provider ChargePoint

Presentation of the new pickup Mercedes-Benz Concept X-CLASS study at the Geneva Motor Show

Unit sales– in thousands of units –

Q1 2016 Q1 2017

684754

+10%

Net profit– in billions of euros –

Q1 2016 Q1 2017

1.4

2.8

+100%

Revenue– in billions of euros –

Q1 2016 Q1 2017

35.038.8

+11%

EBIT– in billions of euros –

Q1 2016 Q1 2017

2.1

4.0

+87%

Investments in PayCash Europe for electronic payment services and launch of services of AutoGravity for digital vehicle financing

Strengthening of the digital mapping business of HERE by involvement of new investors (Intel, Chinese investor consortium)

Daimler AG

Continued high level of net industrial liquidity


* dividend of €3.5 billion not paid out until April

Free cash flow industrial businessQ1 2017: €1.9 billion

Net industrialliquidity

12/31/2016

Earnings and other cash flow

impact

Working capital impact

Other(mainly capital

increase to DFS)

Net industrialliquidity

3/31/2017*

+0.9 21.1-0.5

19.7+0.7

- in billions of euros -

+0.3

Sale of real estate in Japan

Daimler AG

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 Page 6Daimler Corporate Presentation / Q1 2017 / Page 6

Unit sales – in thousands of units –

Q1 2016 Q1 2017


EBIT– in millions of euros –

497568

Q1 2016 Q1 2017

20.022.7

Q1 2016 Q1 2017

1,395

2,234

+14% +14% +60%

Daimler AG

Mercedes-Benz Cars: sales increase by 14% reflecting our strong product line-up- in thousands of units -


Q1 2016

497

568

Q1 2017

102

125

95

18

6

107

108

6121

7

smart

E-Class

C-Class

A-/B-Class

S-Class

Sports Cars34

35

SUVs

158

188

Daimler AG

Mercedes-Benz Cars: globally balanced sales structure with strong development in all major regions- unit sales in thousands -

Page 8Daimler Corporate Presentation / Q1 2017 / Page 8

Q1 2016

497

568

Q1 2017

155

78

74

167

108

77

70

153

Rest of world

Germany

United States

China

Europeexcl. Germany

89

94

Daimler AG

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

Annual Press Conference / February 2, 2017 / Draft 19.01.2017 18:00 Page 9Daimler Corporate Presentation / Q1 2017 / Page 9

* Return on sales

EBITQ1 2016

EBITQ1 2017

1,395

2,234

+ 839

7.0%*

9.8%*

Higher unit sales

Foreign exchange rates

Remeasurement of the equity investment in THERE Holding B.V.

Higher expenses for new technologies and future products

Daimler AG

Daimler Trucks: increase in EBIT driven by sale of real estate in Japan



Q1 2016 Q1 2017



10694

Q1 2016 Q1 2017

8.2 7.9

Q1 2016 Q1 2017

516

668

-11% -3% +29%

Daimler AG

Daimler Trucks: sales decrease by 11% mainly driven by NAFTA region- in thousands of units -


* European Union, Switzerland and Norway

Q1 2016

106

94

Q1 2017

17

33

6

30

15

40

6

35

Rest of world

Latin America

NAFTA region

EU30*

Asia

10

8

Daimler AG

Daimler Trucks: EBIT- in millions of euros -


* Return on sales

EBITQ1 2016

EBITQ1 2017

516

668

+ 152

6.3%*

8.4%*

Efficiency enhancements


Sale of real estate at the Kawasaki site in Japan

Lower unit sales in the NAFTA region

Daimler AG

Mercedes-Benz Vans: strong development based on very successful products



Q1 2016 Q1 2017



76.686.8

Q1 2016 Q1 2017

2.8 3.0

Q1 2016 Q1 2017

301357

+13% +6% +19%

Daimler AG

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


* Return on sales

EBITQ1 2016

EBITQ1 2017

301357

+ 56

10.7%*

11.9%*

Higher unit sales


Higher expenses for new technologies and future products

Daimler AG

Daimler Buses: positive development driven by strong European business and higher unit sales in Latin America



Q1 2016 Q1 2017



4.85.4

Q1 2016 Q1 2017

0.80.9

Q1 2016 Q1 2017

39

65

+12% +8% +67%

Daimler AG

Daimler Buses: EBIT- in millions of euros -


* Return on sales

EBITQ1 2016

EBITQ1 2017

39

65

+ 26

4.7%*

7.2%*

Better mix in Europe


Lower unit sales in Turkey

Daimler AG

Daimler Financial Services: further business growth

Daimler Corporate Presentation / Q1 2017 /

New business – in billions of euros –

Q1 2016 Q1 2017

Contract volume– in billions of euros –


13.7

16.8

12/31/2016 3/31/2017

132.6 135.0

Q1 2016 Q1 2017

432

524

+23% +2% +21%

Daimler AG

Daimler Financial Services: EBIT- in millions of euros -


* Return on equity

EBITQ1 2016

EBITQ1 2017

432

524

+ 92

17.4%*

19.3%*

Higher contract volume

Daimler AG

CONTENTS

Key figures

Divisional information

Group financialsDaimler Group Strategy

China

Outlook

Appendix


Daimler AG

Development of EBIT and RoS adjusted for special items*- EBIT in billions of euros; RoS in % -

6,8%6,5%

7,7%

9,4% 9,4%8.2

10.1

8.0

14.2

2012 2013 20162014

* EBIT adjusted for special items of Daimler Group; return on sales adjusted for special items of Daimler Group excluding Daimler Financial Services

13.8

2015


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

Actual2012

Actual2013

Actual2014

Research and development expenditure

Investment inproperty, plantand equipment

Plan2017/18

(average p.a.)

15.2

13.5

Actual2016

6.6

5.1

7.6

5.9

8.1

7.111.6

Actual2015


Daimler AG

CONTENTS

Key figures


Group financials

Daimler Group StrategyChina

Outlook

Appendix


Daimler AG

Clear aspiration for all our divisions

23

Daimler BusesDaimler Trucks Mercedes-Benz Vans

Daimler Financial Services

“Most successful premium

manufacturer”

Mercedes-Benz Cars

“No 1 in the global truck

business”

“Best financial and mobility

services provider”

“No 1 in the global bus business”

“Most successful player in

worldwide van business”


Daimler AG

The four strategic focus areas of Daimler


Strengthening core business

Leading in technology Pushing digitalization

Growing globally

Daimler AG

Profit targets

Return on sales-target for the automotive business : 9 percent

9 6 1710Mercedes-Benz

Cars

8 DaimlerTrucks

Mercedes-BenzVans

DaimlerBuses


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

1) Daimler Financial Services


Daimler AG Daimler Corporate Presentation / Q1 2017 /

Mercedes-Benz Cars

Daimler AG

Mercedes-Benz Cars: product highlightsThe new GLA compact SUV celebrated its world premiere


Daimler AG

Mercedes-Benz Cars: product highlightsThe new E-Class Coupé and Cabriolet complete the E-Class family


Daimler AG

Mercedes-Benz Cars: product highlightsPresentation of the Mercedes-AMG GT Concept hybrid show car



World premier in Paris: The first star of our product offensive under the product brand EQ

Daimler AG

EQ concept vehicle with battery-electric drive


Daimler AG

Mercedes-Benz Cars and Vans: continued product offensive


E-Class Coupé

E-Class All Terrain E-Class CabrioletS-Class facelift

AMG GT Roadster Premium PickupX-Class

smart forfourelectric drive

smart cabrioelectric drive

GLA facelift smart fortwoelectric drive

20182017

Jan. Feb. March May June July August Sept. Oct. Nov. Dec.April

Daimler AG

We are on our way to emission-free drivingExample: MBC fleet consumption in Europe

230220210200190180170160150140

2009

173

2008

183

02007

158

1995

120

20112010

130

160

CO

2-em

issi

ons

(g/k

m)

9.2 l 7.3 l 6.9 l 6.3 l6.4 l

150

6.0 l2012

123

2015

100110

140

5.6 l

230

-44%

until 2020

95

<4.0 l

EU regulation

2013

134

5.4 l

-6g129

5.2 l2014

5.0 l


123

Actual2016

5.0 l

125

Target2016

Daimler AG

Our roadmap for sustainable mobility

35

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-techcombustion engines

Plug-inhybrids

Electric vehicleswith battery or fuel-cell


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

„Mercedes me“ – Connecting all services around the car


Daimler AG

We want to become digital champion of the automotive industry with the help of Mercedes me and the Mercedes-Benz Store

Digital Car Key Online Service Appointment

IntegrationMobility Offers

in Mercedes me (App)

Contract- & DocumentManagement

Remote Park Pilot

Lifestyle Configurator

• Launch of the Mercedes-Benz Store for all Mercedes me connect markets

• Customer can purchase services directly online(Starting with Remote Park Pilot)


Daimler AG

But Mercedes me is more than just digital......it’s an innovative sales approach

Opening of the world-wide 6th Mercedes me store in Beijing.


Daimler AG

Connectivity – Pushing new services and products


Daimler AG

Autonomous driving goes far beyond technology: A game changer in the automotive industry


Daimler AG

Beltbag

PRE-SAFE®

Impulse Side

Active Blind Spot Assist

Active Lane Keeping Assist

Evasive Steering AssistMULTIBEAM LED Headlightswith Adaptive High Beam Assist

Remote Park-Pilot

Active Braking Assistwith Pedestrian Detection, Cross-Traffic Function and Congestion Emergency Braking Function

DRIVE PILOTwith Distance Pilot DISTRONIC, Steering Pilot, Active Lane Change Assist,Active Emergency Stop Assist, Speed Limit Pilot

PRE-SAFE®

Car-to-X-Communication PRE-SAFE® PLUS

The new E-Class takes autonomous and accident-free driving to the next level



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

Today: one car for different mobility cases.Tomorrow: possibly the most suitable car „on-demand“.

The fitting solution for each use case One car for all use cases

CommutingLeisure

Vacation Shopping

Work

Leisure

Vacation Shopping

Work

Tomorrow

Commuting


Today

Source: McKinsey&Company “Automotive revolution – perspective towards 2030”

Daimler AG

Croove – expansion of our car sharing business


Daimler AG

Introduction of 9 plug-in-hybrid vehicles

C-Class

Estate

S-Class GLE

C-Class E-Class

GLC

C-Class

LWB

GLC COUPE

2014 2015 2016 2017


Daimler AG

Electric Line Up extended into the Future

B 250 eSLS AMG Coupé Electric Drive

smart fortwoelectric drive

smart electric drive -fortwo and forfour

Mercedes-Benz GLC F-CELL

Battery-electric vehiclewith up to 500 km range

Intelligent EV-Architecture


Daimler AG

Foundation of new Mercedes-Benz electric vehicle strategy


Daimler AG

Modular set up of next generation drive train technologieswill allow a variety of derivatives

Modular Battery Concept

Modular eDrive ConceptEntry Mid High

Small

Medium

Large

Front Axle Rear Axle


Daimler AG

Investment of 500 million euros in our second battery plant in Germany

Extension

2nd plant start of operations: summer 2017

Production space stocked upfrom 20,000 to 60,000 m2

Production of Li-Ion batteriesfor hybrid as well as electricvehicles and energy storagesystems

Deutsche ACCUMOTIVE GmbH & Co. KG, Kamenz, Germany


Daimler AG

E-Mobility thought to the endWorld's largest 2nd-use battery storage is starting up


Daimler AG

Leadership in Future Mobility will be determined by thecombination of the four dimensions

Mobility of theFuture

Shared Mobility

DigitalizedEco System

AutonomousDriving

E-Mobility


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 basis2,001

2015 2016

No. 1

2020


2,198

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 Trucks


Daimler AG

Our strategy works. We keep executing it.

Technology Leadership in efficiency, safety and connectivity

Global Market Presencein traditional andemerging markets

Intelligent Platform Managementfor tailored products anddecisive 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

Prod

uct

New coach for Japan

Truck Data Center &

Mercedes-Benz Uptime

Detroit Analytics & Remote updates

TruckonnectAsia

FleetBoard Store for Apps

Serv

ice

SoP New Cascadia

Connected Fuso eCanter

Small series Fuso eCanter

@ Tokyo Motor Show


Daimler AG

Efficiency: the most efficient trucks are Daimler Trucks

Europe: TCO leaderMercedes-Benz Actros

Fuel reduction up to -8%Next efficiency step by 2019

Fuel reduction up to -15%Next efficiency step by 2018

NAFTA: TCO leaderFreightliner New Cascadia

Japan: TCO leaderFuso Super Great V

Fuel reduction up to -5%Next efficiency step Q2/2017

Fuel reductions compared to previous model


Daimler AG

Technology leadership: the all-new Cascadia. A perfect ten in every respect.

8% less fuel

Advancedpowertrain &

improvedaerodynamics

Detroit Connect Analytics

Fuel efficiency analysis on fleet level

Efficiency Safety Connectivity

Detroit Assurance 4.0

Active Break Assist


Daimler AG

Efficiency: First to market with electric distribution trucks

Mercedes-Benz Urban eTruck

Range: up to 200km (212 kWh battery)

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

Market: introduction by the end of 2020

FUSO eCanter

Range: up to 100km, modular battery system (4-5)

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

Market: introduction by the end of 2017


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 18.75 m)

Sideguard Assist

Active Brake Assist 4 (ABA 4)


Daimler AG

Safety: semi-autonomous trucks customer-ready by 2020

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


Daimler AG

Connectivity: boosting logistics performance

Detroit Connect Analytics

Improves fuel and safety performance by- detecting changes in fuel consumption & recommending - safety event reporting (hard braking, lane departures)

Analysis on trip, vehicle and fleet basis

Available mid 2017

“Flash Over the Air” service for engine, transmission &aftertreatment firmware

Remote access on the truck (max vehicle speed, idle shut down) from customer office

Available mid 2017

Detroit Connect Remote Updates


Daimler AG

Connectivity: boosting logistics performance

Mercedes-Benz Uptime FleetBoard Store

Improves uptime by analyzing real-time dataDetects potential breakdown situationsOrganizes “pit-stop” in case of emergency Optimizes regular workshop stops

„One-stop-shop“ for apps on transport & logisticsOpen to all industry partnersLaunch in Q3 2017


Daimler AG

Making our strong global footprint even stronger

NAFTA:all new heavy-duty truckNew Cascadia

CaptivePowertrain

New medium-duty engine Brazil:

new Atego & Actros Brazil

2015 – 2018: 240 mn. €investment

Japan: new heavy-duty truck

Europe:MB uptime & FleetBoard App Store

MB SideguardAssist & ActiveBrake Assist 4

Russia: ramp-up cabin productionwith Joint Venture partner Kamaz

India: addinganother 10 exportmarkets for Fusotrucks ex Chennai

China: setting uplocal productionof MB heavy-dutytruck by 2020 with Joint Venture Partner Foton

Indonesia: localproduction of MB heavy-duty truckstarting HY1

Entering new markets in LatAm, Africa, Asia, Australia with Regional Centers


Daimler AG

Platform rollout in triad completed by 2017; global rollout done by 2020

Transmissions

Electrics/Electronics

Chassis

Medium-dutyengines

Heavy-duty engines

EU LA

Cabarchitecture

China

To be rolled out by 2020

Implementationdecided

Establishedplatform

Recentlyimplemented


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

8695

Year End 2016Year End 2015

39

64

Year End 2016Year End 2015


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

ChinaEurope

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

28

2015 2016

~45

2020


over the cycle


26


Our target: Undisputed leader in the bus industry

Daimler AG



Daimler AG

Mobility Customer

“Somebody needs to offer the individual mobility service

to customers”

Service Platform

“Somebody needs to 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 needsto take care ofthe vehicles”

Fleet Operator

“Somebody needsto pay for and

own the vehicle”

Asset Provider

“Somebody needs to 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

We offer a broad variety of financial and mobility services –serving approximately 20 million customers as of March 31, 2017

car2go customers

vehicles in fleet management

moovel customers

banking customers

financed orleased vehicles

insurance policies mytaxi customers


Daimler AG

We are among the world’s leading captive finance providers


Buses

Vans

Trucks

Passenger Cars

Wholesale

Lease

Loan

Others

Portfolio

Acquisitions

133 bn €

62 bn €

Financing & leasing portfolio 4,3 mn units

76%

12%

11%

1%

Passenger carsTrucksVansBuses

Drive vehiclesales

Foster customerloyalty

Contribute to thegroup’s EBIT

STRATEGIC BENEFITS

Full Year 2016

Daimler AG

WE FINANCE NEARLY EVERY SECOND VEHICLE

SOLD BY DAIMLER


52%

28%

Penetration rates per vehicle segment

40%36%

Global penetration rate DFS in 2016

48%

Daimler AG

Managing a portfolio of 135 billion € in 40 countries[Portfolio by region in % as of March 31, 2017]

40%40%

13%

7% China

Africa &Asia Pacific

EuropeAmericas


Daimler AG

We mitigate risk and volatility through a balanced mixof funding instruments and clear principles

2016

Capital Markets

Maintain well controllable liquidity reserve

Bank Loans

ABS

Deposit

Strengthen our global footprint and use market opportunities

Deepen our excellentbank relationships

Globally expand our highly competitive ABS issuances

STRINGENT FUNDINGPOLICY WORLDWIDE

Liquidity matched funding Interest rate matched funding Currency matched funding Country matched funding

Bank loans

Deposits

ABS Cap Market

Deposits

Bank loans

ABS

RATING INDEPENDENT

2020 Cap Market


Daimler AG

We will create a holistic and customer-centric ecosystem for connected mobility solutions


Daimler AG

is the world‘s market leader in flexible car sharing

1.6

2.2

2015 2016

Number of customers[in mn]

+43%

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

Drive Simply open your car2go with your smartphoneand 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


Daimler AG

has become Europe’s largest taxi-hailing provider

2.0

6.2

2015 2016

Number of customers[in mn]

+210%

Step 1 Order your cab viayour smartphone

Step 3 Get real-time informationabout estimated arrival

Step 2 Directly get in touch with your driver

Step 4 Pay your ride with just one swipe


Daimler AG

Available in:

Web App

puts car financing in the palm of your hand

Integrated partners [as of February 2016]

all makes,models, and trims

Apply for Financing

license scan;LinkedIn integration

Find a Dealer

all brands and dealers nationwide

Select Your Offer

instant credit decision

Choose Your Car



Our target: first-choice provider of financial and mobility servicesPortfolio targetIn EUR bn

116,7

2015 2016 2020

Profitability targetReturn on Equity in %

Annual growth≥ 5.5%

132,6

Daimler AG

CONTENTS

Key figures


Group financials


ChinaOutlook

Appendix


Daimler AG

Daimler in China

Beijing

Fuzhou

Shenzhen

Trucks & BusesProduction & Distribution

Mercedes-Benz Vans Production & Distribution

NEV Development Production & Distribution

Mercedes-Benz Cars

Distribution

Auto Finance

R&D

Production


Daimler AG

The 6 key initiatives start to pay off

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 -

208239

293

400

488

locally produced

imported

2016201420132012 2015

108

100

123

116

147

146

150

250

171

317


155

Q1 2017

45

110

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

Rearwheeldrive

Engine

Frontwheel drive


Daimler AG

The superlative new E-Class Long Wheelbase: the most intelligent executive sedan in the market


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


Daimler AG

Mercedes-Benz Network Development in China

Number of Outlets

502

447

341

262

207166

+55

+55

+106

+79

+41

2016

>500

201520142013201220112010



31,000 47,00070,000

99,000

139,000

230,000

360,000

11% 14% 15% 16% 25% 32% 37%

2010 201620152014201320122011

Automotive financing is taking off –but minimal risk due to high down payment ratesPortfolio [in units]Penetration rate [in %]

Daimler AG

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%

around -5%, with Class 8 weaker than Class 6-8

USA

Van markets

Indonesia*

China slight growth

USA

around the prior-year level



slight decrease

slight increase

slight growth


slight growth

significant growth from low level

slight growth

Daimler AG

2017 sales outlook


Significantly higher unit salesFurther growth particularly in China and EuropeStrong momentum especially from new E-Class models and SUV portfolio

Unit sales around the prior-year levelUnit sales around the prior-year level in Europe, North America and JapanSales in Brazil around the low level of prior year; sales increase in India

Significantly higher unit sales Significant growth in core market EU30Continued momentum from “Mercedes-Benz Vans goes global” strategy

Significantly higher unit salesMaintain market leadership in core marketsModerate growth in EU30 region, significant sales increase in Brazil

Mercedes-Benz Cars

Daimler Trucks

Mercedes-Benz Vans

Daimler Buses

Daimler AG

2017 outlook for EBIT


Significantly above the prior-year level

Slightly below the prior-year level

Slightly above the prior-year level

Slightly below the prior-year level

Slightly above the prior-year level

We expect Group EBIT for FY 2017 to increase significantlybased on the following expectations for divisional EBIT:

Mercedes-Benz Cars

Daimler Trucks

Mercedes-Benz Vans

Daimler Buses


Daimler AG

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 March 31, 2017

Equity ratio 22.9% 23.6%

Gross liquidity 21.7 21.6

Funded status of pension obligations -7.8 -7.7

Industrial business

Equity ratio 44.7% 45.3%

Net liquidity 19.7 21.1

Free cash flow (January-March) 0.3 1.9

in billions of euros

Daimler AG

Double-digit growth in units sales of passenger cars, vans and buses


Q1 2016 Q1 2017 % change

Daimler Group 683.9 754.3 +10

of which

Mercedes-Benz Cars 496.8 568.1 +14

Daimler Trucks 105.7 94.0 -11

Mercedes-Benz Vans 76.6 86.8 +13

Daimler Buses 4.8 5.4 +12

in thousands of units

Daimler AG

Revenue by division


* figures as of December 31, 2015 and December 31, 2016

Q1 2016 Q1 2017 % change


of which

Mercedes-Benz Cars 20.0 22.7 +14

Daimler Trucks 8.2 7.9 -3

Mercedes-Benz Vans 2.8 3.0 +6

Daimler Buses 0.8 0.9 +8

Daimler Financial Services 4.9 5.9 +22

Contract volume of Daimler Financial Services* 132.6 135.0 +2


Daimler AG

Revenue by region


* excluding revenue of not fully consolidated companies

Q1 2016 Q1 2017 % change


of which

Europe 14.2 16.2 +14

of which Germany 5.3 5.7 +9

NAFTA 10.6 11.1 +4

of which United States 9.4 9.7 +3

Asia 8.2 9.1 +10

of which China* 3.7 4.2 +15

Other markets 2.0 2.4 +19


Daimler AG

Group EBIT in Q1 2017


- in millions of euros -

-431

4,008

-11

2,148

+539

+449

• Cars +668• Trucks -255• Vans +25• Buses +11

• Cars +417• Trucks +55• Vans +57• Buses +10

• Cars -458• Trucks +83• Vans -61• Buses +5

+532

ActualQ1 2016

Volume/Structure/Net pricing

Foreignexchange

rates

Other costchanges

Discloseditems

Q1 2017

ActualQ1 2017

ReconciliationFinancial Services

+92• Cars:

RemeasurementTHERE Holding +183

• Trucks:Sale of real estate in Japan +267

• Reconciliation:Impairment reversal BAIC Motor +240

+690

Discloseditems

Q1 2016

of which:• Reconciliation:

Impairment BAIC Motor +244Currency transactions +222

Daimler AG

EBIT by division


* Return on sales; Daimler Group excluding Daimler Financial Services

Q1 2016 Q1 2017- EBIT in millions of euros; RoS in % - EBIT RoS* EBIT RoS*

Daimler Group 2,148 5.7 4,008 10.6

of which

Mercedes-Benz Cars 1,395 7.0 2,234 9.8

Daimler Trucks 516 6.3 668 8.4

Mercedes-Benz Vans 301 10.7 357 11.9

Daimler Buses 39 4.7 65 7.2

Daimler Financial Services 432 – 524 –

Reconciliation -535 – 160 –

Daimler AG

Development of dividend per share


2.202.45

2.25

- in euros -

+ 48%

3.25

2012 2013 20162014 2015

3.25

Daimler AG

Capital expenditure / Research and development



Actual2015

Actual2016

5.1

Plan2017/2018

(average p.a.)

5.9

7.1

Actual2015

Actual2016

6.67.6

8.1

Plan2017/2018

(average p.a.)

Investment in property, plant and equipment


Daimler AG

Capital expenditure / Research and development


Investment in property, plant and equipment


Actual2015

Actual2016

Plan*2017-2018

Actual2015

Actual2016

Plan*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 – – –

in billions of euros* average p.a.

Daimler AG

Daimler Trucks: incoming orders increase significantly driven by NAFTA region, Indonesia and Middle East


- in thousands of units -


Q1 2016

99

124

Q1 2017

21

46

5

40

21

29

6

33

Rest of world

Latin America

NAFTA region

EU30*

Asia10

12

Daimler AG

Mercedes-Benz Vans: sales increase by 13% due to market success of attractive product portfolio



Q1 2016

76.6

86.8

Q1 2017

5.4

13.2

23.2

45.0

5.09.3

21.3

41.0

Vito

V-Class

Citan

Sprinter

Daimler AG

Daimler Buses: sales increase by 12% mainly due to higher demand in emerging markets



Q1 2016

4.8

5.4

Q1 2017

1.4

0.7

1.4

1.0

1.6

0.5

1.5

0.7

Rest of world

Brazil

Mexico

EU30*

Latin America(excl. Brazil and Mexico)

0.50.9


Daimler AG

Daimler Financial Services: further increase in contract volume to 135.0 billion euros (+2%)



12/31/2016

132.6 135.0

3/31/2017

22.3

32.2

53.7

26.8

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%0.25%

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

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 Q1 2017

* incl. Derivatives** incl. GLA

Retail sales Q1 2017 Q1 2016 Change in %

Mercedes-Benz 560,625 483,487 +16.0

of which*: A-/B-Class 105,068 107,927 -2.6

C-Class 130,484 108,283 +20.5

E-Class 97,884 66,196 +47.9

S-Class 19,594 22,559 -13.1

SUVs** 188,138 162,237 +16.0

Sports Cars 6,890 6,884 +0.1

V-Class 12,567 9,401 +33.7

smart 34,156 35,453 -3.7

Mercedes-Benz Cars 594,781 518,940 +14.6

- in units -


Daimler AG

Mercedes-Benz Cars retail sales by model FY 2016

* incl. Derivatives** incl. GLA

Retail sales FY 2016 FY 2015 Change in %

Mercedes-Benz 2,083,888 1,871,599 +11.3

of which*: A-/B-Class 438,575 414,365 +5.8

C-Class 480,537 460,497 +4.4

E-Class 296,324 301,566 -1.7

S-Class 88,520 107,335 -17.5

SUVs** 706,170 525,894 +34.3

Sports Cars 27,067 30,441 -11.1

V-Class 46,695 31,501 +48.2

smart 144,479 119,382 +21.0

Mercedes-Benz Cars 2,228,367 1,990,981 +11.9

- in units -


Daimler AG

- in units -

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


Mercedes-Benz Cars retail sales in major markets Q1 2017

Retail sales Q1 2017 Q1 2016 Change in %China* 151,878 110,870 +37.0

of which locally produced vehicles 102,944 71,723 +43.5

USA 80,155 77,045 +4.0Germany 77,837 72,806 6.9UK 57,217 49,837 14.8BRIKT** 37,026 35,211 5.2Italy 24,328 24,131 0.8Japan 18,810 18,950 -0.7France 14,401 14,127 1.9South Korea 18,907 13,944 35.6Spain 14,586 12,837 13.6Russia 8,291 9,823 -15.6Canada 10,852 9,687 12.0Turkey 3,914 5,288 -26.0Rest of World 107,691 93,439 15.3Mercedes-Benz Cars 594,781 518,940 14.6

Daimler AG

Mercedes-Benz Cars retail sales in major markets FY 2016

- in units -

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


Retail sales FY 2016 FY 2015 Change in %China* 493,929 386,635 +27.8

of which locally produced vehicles 321,716 240,140 +34.0

USA 346,451 350,526 -1.2Germany 330,846 309,989 +6.7UK 180,434 152,929 +18.0BRIKT** 152,199 149,357 +1.9Italy 89,511 76,064 +17.7France 73,150 62,971 +16.2Japan 71,741 65,983 +8.7South Korea 57,060 45,638 +25.0Spain 53,908 45,132 +19.4Canada 42,401 39,696 +6.8Russia 37,577 42,179 -10.9Turkey 32,886 30,433 +8.1Rest of World 393,797 351,699 +12.0Mercedes-Benz Cars 2,228,367 1,990,981 +11.9

Daimler AG

Daimler follows a conservative 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 Q1 2017

0-1 Y 1-2 Y 2-3 Y 3-4 Y 4-5 Y 5-6 Y >6 Y

Bonds long term 64,5 -13,6 -11,3 -14,5 -7,1 -6,7 -1,4 -9,9

Total Q1 2017

Q2 2017 Q3 2017 Q4 2017 Q1 2018Next 12 months

Bonds short term 64,5 -3,0 -3,4 -2,3 -4,9 -13,6

Bonds total outstanding as of Q1 2017: 64,5

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 deals10,2

10,263,0

20,9

50,8

16,9

42,9

2015 Actual2014 Actual 2016 Actual

6,4

5,8

10,67,9

7,46,26,0

2015 Actual 2016 Actual2014 Actual



Daimler AG

Financial Flexibility is Key Liquidity Management Tool

~ 100%

General approach:

Maturities of next 12 months need to be covered by financial flexibility*

* Financial flexibility= Cash + Committed Credit Facilities + Receivables available for sale (RAFS)

available Liquidity

Maturity

Bonds

Acc. Dep.

Bank Loans

CPOther

Liqui FS

Liqui IB

Credit Facility

ABS Potential

Ensures repayment of maturing debt in case of stress scenarios


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 FinancialFlexibility Early capital market funding to save credit capacity in growth regions

New markets funded via global and local banks first

Stringent GlobalFunding 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.