daimler corporate presentation fy 2016

FY 2016

Corporate Presentation

Daimler AG

CONTENTS

Key figures Divisional information Group financials Daimler Group Strategy China Outlook Appendix

Daimler AG Daimler Corporate Presentation / FY 2016 / Page 2

Daimler AG

Key figures

2015 2016

Unit sales (in thousands of units) 2,853 2,998

Revenue 149.5 153.3

EBIT

as reported 13.2 12.9

adjusted for special items 13.8 14.2

Net profit 8.7 8.8

Free cash flow of the industrial business 4.0 3.9

Earnings per share (in euros) 7.87 7.97

Dividend per share (in euros) 3.25 3.25

in billions of euros

Daimler Corporate Presentation / FY 2016 / Page 3

Daimler AG

Continued high level of net industrial liquidity

Free cash flow industrial business

FY 2016: €3.9bn

Net industrial

liquidity

12/31/2015

Earnings and

other cash flow

impact

Working capital

impact

Other Net industrial

liquidity

12/31/2016

-1.5

19.7 +0.7 18.6

+6.4

- in billions of euros -

Dividend payment

Daimler AG

-1.0 -3.5

Cartel fine imposed

by European

Commission


Daimler AG

CONTENTS

Key figures

Divisional information Group financials Daimler Group Strategy China Outlook Appendix


Daimler AG

Mercedes-Benz Cars: continued business growth based on

strong product portfolio

EBIT adjusted for special items – in millions of euros –

2015 2016

8,343 8,927

+7%

Revenue – in billions of euros –

2015 2016

83.8 89.3

+7%

Unit sales – in thousands of units –

2015 2016

2,001 2,198

+10%

Annual Press Conference / February 2, 2017 / Draft 19.01.2017 18:00 Page 6 Daimler Corporate Presentation / FY 2016 / Page 6

Daimler AG

Mercedes-Benz Cars: significant sales increase reflecting our

strong product line-up - in thousands of units -

* incl. GLA

2015

2,001

2,198

2016

435

490

304

84

27

425

470

306

106

29

smart

E-Class

C-Class

A-/B-Class

S-Class

Sports Cars 144

121

SUVs* 543

712


Daimler AG

Mercedes-Benz Cars: globally balanced sales structure with

strong development in all major regions - unit sales in thousands -

2015

2,001

2,198

2016

488

347

314

666

400

359

296

578

Rest of world

Germany

United States

China

Europe

excl. Germany

368

383

Page 8 Daimler Corporate Presentation / FY 2016 / Page 8

Daimler AG

Mercedes-Benz Cars: EBIT adjusted for special items - in millions of euros -

+ 584

Annual Press Conference / February 2, 2017 / Draft 19.01.2017 18:00

* Return on sales

EBIT

2015

EBIT

2016

8,343 8,927

10.0%* 10.0%*

Higher unit sales

Net pricing

Efficiency enhancements

Higher expenses for new technologies and

future products


Daimler AG

Daimler Trucks: financials significantly impacted by

headwinds in many of our truck markets


2015 2016

502

415

-17%


2015 2016

37.6

33.2

-12%


2015 2016

2,742

2,053

-25%


Daimler AG

Daimler Trucks: sales decrease mainly driven by NAFTA

region, Turkey and Middle East - in thousands of units -

* European Union, Switzerland and Norway

2015

502

415

2016

80

146

27

125

76

192

31

148 Rest of world

Latin America

NAFTA region

EU30*

Asia

55

37


Daimler AG

Daimler Trucks: EBIT adjusted for special items - in millions of euros -

- 689

* Return on sales

EBIT

2015

EBIT

2016

2,742

2,053

7.3%*

6.2%*

Efficiency enhancements and material costs

Foreign exchange rates

Significantly lower unit sales in the NAFTA

region, Turkey, Middle East, Latin America and

Indonesia

Intense competition in Europe


Daimler AG

Mercedes-Benz Vans: strong development based on very

successful products


2015 2016

952

1,302

+37%


2015 2016

11.5 12.8

+12%


2015 2016

321 359

+12%


Daimler AG

Mercedes-Benz Vans: EBIT adjusted for special items - in millions of euros -

+ 350

Page 14

* Return on sales

EBIT

2015

EBIT

2016

952

1,302 8.3%*

10.1%*

Higher unit sales


Higher expenses for new technologies and future

products


Daimler AG

Daimler Buses: strong EBIT improvement despite difficult

situation in Brazil and Turkey


2015 2016

28.1 26.2

-7%


2015 2016

202

258

+28%


2015 2016

4.1 4.2

+2%


Daimler AG

Daimler Buses: EBIT adjusted for special items - in millions of euros -

+ 56

* Return on sales

EBIT

2015

EBIT

2016

202

258 4.9%*

6.2%*

Higher unit sales and better model mix in EU30



Lower unit sales in Latin America and Turkey

Inflation-related cost increases

Higher expenses for new products and technologies


Daimler AG

Daimler Financial Services: further business growth

EBIT – in millions of euros –

2015 2016

1,619 1,739

+7%

Contract volume – in billions of euros –

12/31/2015 12/31/2016

116.7

132.6

+14%

New business – in billions of euros –

2015 2016

57.9 61.8

+7%

Daimler Corporate Presentation / FY 2016 /

Daimler AG

Daimler Financial Services: EBIT - in millions of euros -

+ 120

* Return on equity

EBIT

2015

EBIT

2016

1,619 1,739

18.3%* 17.4%*

Higher contract volume



Daimler AG

CONTENTS

Key figures Divisional information

Group financials Daimler Group Strategy China Outlook Appendix


Daimler AG

CONTENTS - in billions of euros -

Industrial free

cash flow

Dividend

payment

in 2016

3.5

3.9

FY 2016 (actuals)

3.5

FY 2017 (expectation)

Industrial free

cash flow

Dividend

payment

in 2017

(proposed)

Free cash flow of industrial business for 2017 expected to be

in the magnitude of 2016 and above dividend payment


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 2016 2014

* 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

Dividend at high level based on strong net profit

* attributable to shareholders of Daimler AG

2015 2016

8.4 8.5

Net profit* – in billions of euros –

2016

(proposed)

2015

3.25 3.25

Dividend per share – in euros –


Daimler AG

Further investment growth as a basis for profitable growth

and development of future mobility - in billions of euros -

10.5 10.5 10.5

Actual

2012

Actual

2013

Actual

2014

Research and development expenditure

Investment in property, plant and equipment

Plan

2017/18

(average p.a.)

15.2

13.5

Actual

2016

6.6

5.1

7.6

5.9

8.1

7.1 11.6

Actual

2015


Daimler AG

Attractive employer

* related to extraordinary contributions to the German pension fund assets in 2011, 2014, 2015 and 2016

** paid out to each eligible employee of Daimler AG for the respective financial year

12/31/2010

11.2

23.4

12/31/2016

6.8*

Fair value of pension plan assets – in billions of euros –

+109%

2010

3,041

5,400

2016

Profit sharing** – in euros –

+78%


Daimler AG

CONTENTS

Key figures Divisional information Group financials

Daimler Group Strategy China Outlook Appendix


Daimler AG

Clear aspiration for all our divisions

26

Daimler Buses Daimler 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


Daimler AG

Profit targets

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

9 6 17 10

Mercedes-Benz

Cars

8 Daimler

Trucks

Mercedes-Benz

Vans

Daimler

Buses

Daimler

Financial Services

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

1) Daimler Financial Services


Daimler AG Daimler Corporate Presentation / FY 2016 /

Mercedes-Benz Cars


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 Concept X-CLASS


Daimler AG

Mercedes-Benz Cars and Vans: continued product offensive

S-Class Cabriolet

SLC facelift SL facelift

CLA facelift

E-Class station wagon

smart cabrio

GLS facelift E-Class sedan

C-Class Cabriolet

GLC Coupé

E-Class (long wheelbase)

smart fortwo EV

GT R Coupé

E-Class All Terrain

E-Class Coupé

GLA facelift

GT C Roadster

S-Class facelift

E-Class Cabriolet

GT C Coupé

Pickup

2016 2017

V-Class China

smart cabrio EV

smart forfour EV

Vito China


Daimler AG

We are on our way to emission-free driving

Example: MBC fleet consumption in Europe

230

220

210

200

190

180

170

160

150

140

2009

173

2008

183

0 2007

158

1995

120

2011 2010

130

160

CO

2-e

mis

sio

ns

(g/

km

)

9.2 l 7.3 l 6.9 l 6.3 l 6.4 l

150

6.0 l

2012

123

2015

100

110

140

5.6 l

230

-44%

until 2020

95

<4.0 l

EU Legislation

2013

134

5.4 l

-6g 129

5.2 l

2014

5.0 l


123

Actual

2016

5.0 l

125

Target

2016

Daimler AG

Our roadmap for sustainable mobility

37

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

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

Integration

Mobility Offers

in Mercedes me (App)

Contract- & Document

Management

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 Assist MULTIBEAM LED Headlights with Adaptive High Beam Assist

Remote

Park-Pilot

Active Braking Assist with Pedestrian Detection, Cross-Traffic

Function and Congestion Emergency Braking

Function

DRIVE PILOT with 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 1 Driver

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 2 Partial

Automation

Level 3 ConditionalAutomation

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

Commuting Leisure

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 10 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 e SLS AMG Coupé

Electric Drive

smart fortwo

electric drive

smart electric drive -

fortwo and forfour

Mercedes-Benz GLC F-CELL

Battery-electric vehicle

with 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 technologies

will allow a variety of derivatives

Modular Battery Concept

Modular eDrive Concept Entry 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 up

from 20,000 to 60,000 m2

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

E-Mobility thought to the end

World's largest 2nd-use battery storage is starting up


Daimler AG

Leadership in Future Mobility will be determined by the

combination of the four dimensions

Mobility

of the

Future Shared

Mobility

Digitalized

Eco System

Autonomous

Driving

E-Mobility


Daimler AG

Our target: No.1 premium car manufacturer

Sales target In thousand units

Profitability target Return on Sales in %

on a sustainable basis

2,001

2015 2016

No. 1

2020


2,198

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 Presence in traditional and

emerging markets

Intelligent Platform Management for 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

Efficiency: the most efficient trucks are Daimler Trucks

Europe: TCO leader

Mercedes-Benz Actros

Fuel reduction up to -8%

Next efficiency step by 2019


Next efficiency step by 2018

NAFTA: TCO leader

Freightliner New Cascadia

Japan: TCO leader

Fuso Super Great V


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

Advanced

powertrain &

improved

aerodynamics

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 data

Detects potential breakdown situations

Organizes “pit-stop” in case of emergency

Optimizes regular workshop stops

„One-stop-shop“ for apps on transport & logistics

Open to all industry partners

Launch in Q3 2017


Daimler AG

Making our strong global footprint even stronger

NAFTA:

all new heavy-

duty truck

New Cascadia

Captive

Powertrain

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 Sideguard

Assist & Active

Brake Assist 4

Russia: ramp-up cabin production

with Joint Venture partner Kamaz

India: adding

another 10 export

markets for Fuso

trucks ex Chennai

China: setting up

local production

of MB heavy-duty

truck by 2020

with Joint Venture

Partner Foton

Indonesia: local

production of MB

heavy-duty truck

starting 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-duty engines

Heavy-duty engines

EU LA

Cab architecture

China

To be rolled out

by 2020

Implementation

decided

Established

platform

Recently

implemented


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

86 95

Year End 2016 Year End 2015

39

64

Year End 2016 Year End 2015


Daimler AG

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

next decade for Daimler Trucks

Today 2025 2020

Chassis Electrics/Electronics

Today 2020 2025 Today 2020 2025

Europe

Brazil

Russia

China Europe

NAFTA

Brazil

China

Europe

Brazil

China Japan NAFTA

Cabin


Daimler AG

Sticking to our target: undisputed leader in the truck industry




496

2014 2015

~700

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 Financial Services


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“

Meta Platform

“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”

Vehicle Manufacturer

Consuming „mobility-

as-a-service/

robo car services“

Aggregator Platform

We are preparing for the mobility value chain of tomorrow


Daimler AG

We offer a broad variety of financial and mobility services – serving approximately 20 million customers

car2go customers

vehicles in fleet management

moovel customers

banking customers

financed or leased vehicles

insurance policies mytaxi customers


Daimler AG

63 58

64 72

80 84

99

117

133

29 25

29 34

38 41 48

58 62

2008 2016 2015 2014 2013 2012

Our portfolio is growing considerably year over year

2009 2011 2010

Wholesale

Lease

Loan

Buses

Vans

Trucks

Passenger Cars

Others

Portfolio (in bn €)

Acquisitions (in bn €)

15.9% CAGR


Daimler AG

2.5 2.6 2.8

3.1 3.3

3.7

4.3

Financing & leasing portfolio [in mn units]

2010 2016 2015 2014 2013 2012 2011

PERFORMANCE

STRATEGIC BENEFITS

76%

12%

11%

1%

Passenger cars

Trucks

Vans

Buses

Share of vehicle types in 2016 [in %; based on units]

Drive vehicle sales

Foster customer loyalty

Contribute to the group’s EBIT

We are among the world’s leading captive finance providers


Daimler AG

WE FINANCE NEARLY EVERY SECOND VEHICLE

SOLD BY DAIMLER

52%

28%

Penetration rates per vehicle segment

40% 36%

20

10

20

16

20

15

20

14

20

13

20

12

20

11

20

09

20

08

20

07

20

06

20

05

35% 35% 39% 39%

43% 40% 41%

43% 43% 45% 47% 48%

Global penetration rate DFS


Daimler AG

Managing a portfolio of 133 billion € in 40 countries [Portfolio by region in %]

41%

40%

12%

7% China

Africa & Asia Pacific

Europe Americas


Daimler AG

We mitigate risk and volatility through a balanced mix

of 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 excellent bank relationships

Globally expand our highly competitive ABS issuances

STRINGENT FUNDING

POLICY 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 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


Daimler AG

has become Europe’s largest taxi-hailing provider

2.0

6.2

2015 2016


+210%

Step 1 Order your cab via

your smartphone

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


Daimler AG

is an urban mobility company, making cities smarter

1.1

2.2

2015 2016


moovel transit moovel app

+100%

B2C app

for urban locals

B2B white-label solutions

for public transportation authorities

„One-stop shop“ for mobility

Look, book & pay functionality

Car sharing, taxi, railway, etc.

Feinstaub Stuttgart ticket record

Mobile ticketing for public transit

White label solution

16 transit operators integrated

Market leader in mobile ticketing in the U.S.


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

services

Portfolio target In EUR bn

116,7

2015 2016 2020

Profitability target Return on Equity in %

Annual growth

≥ 5.5%

132,6

Daimler AG

CONTENTS

Key figures Divisional information Group financials Daimler Group Strategy

China Outlook 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 start to pay off

Extension Product Portfolio Expansion Dealer Network

Extension Local Production Leverage Financial Services Extension Local R&D

Integrated Sales Organization


Daimler AG

Mercedes-Benz Cars retail sales in China: huge sales growth

with increasing share of locally produced vehicles - in thousands of units -

212 236

299

387

494

locally produced

imported

2016 2014 2013 2012 2015

104

109

121

114

148

151

146

240

172

322


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


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-Class Launched in March 16

All new Vito Launched in September 16


Daimler AG

Mercedes-Benz Network Development in China

Number of Outlets

502

447

341

262

207

166

+55

+55

+106

+79

+41

2016

>500

2015 2014 2013 2012 2011 2010


Daimler AG

We are managing our network for the future: hardware

Optimizing and digitalizing our sales space

Upgrading and relocations to enhance capacities


Daimler AG

We are managing the network for the future: software

Consistency in sales quality

Profitable growth of franchise business


Daimler AG

http://www.thinkstockphotos.de/image/stoc

k-foto-cityscape-of-guiyang-at-

night/497572532/popup?sq=china/f=CPIHV

X/s=DynamicRank


31,000 47,000 70,000

99,000

139,000

230,000

360,000

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

2010 2016 2015 2014 2013 2012 2011

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

http://www.thinkstockphotos.de/image/stock-foto-cityscape-of-guiyang-at-night/497572532

Daimler AG

CONTENTS

Key figures Divisional information Group financials Daimler Group Strategy China

Outlook Appendix


Daimler AG

Assumptions for automotive markets in 2017

Car markets

Global

Europe

Medium- and

heavy-duty truck

markets

NAFTA region

EU30

Japan*

Brazil

EU30

Bus markets EU30

Brazil

+1 to 2%

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

USA

Van markets

Indonesia*

China slight growth

* including light-duty trucks

USA

around the prior-year level

slight decrease

around -5%

slight growth from low level


slight growth


slight growth

significant growth from low level

slight growth


Daimler AG

2017 sales outlook

Slightly higher unit sales

Further growth particularly in China and Europe

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

Unit sales around the prior-year level

In total, unit sales around the prior-year level in Europe, North America and Japan

Increases from low level in Brazil and India

Slightly higher unit sales

Slight growth in core market EU30

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

Significantly higher unit sales

Maintain market leadership in core markets

Moderate growth in EU30 region, significant sales increase in Brazil and Mexico

Mercedes-Benz Cars

Daimler Trucks

Mercedes-Benz Vans

Daimler Buses


Daimler AG

2017 outlook for EBIT

Significantly above the prior-year level

Significantly below the prior-year level

Slightly above the prior-year level

Slightly below the prior-year level

In the magnitude of the prior year

We expect Group EBIT for FY 2017 to increase slightly

based on the following expectations for divisional EBIT:

Mercedes-Benz Cars

Daimler Trucks

Mercedes-Benz Vans

Daimler Buses

Daimler Financial Services


Daimler AG

CONTENTS

Key figures Divisional information Group financials Daimler Group Strategy China Outlook

Appendix


Daimler AG

Strong financial and balance sheet figures support our

financial strength and A-rating


Daimler Group Dec. 31, 2015 Dec. 31, 2016

Equity ratio 23.6% 22.9%

Gross liquidity 18.2 21.7

Funded status of pension obligations -7.4 -7.8

Industrial business

Equity ratio 44.2% 44.7%

Net liquidity 18.6 19.7

Free cash flow 4.0 3.9


Daimler AG

Continuing dynamic sales development of passenger cars

and vans


2015 2016 % change

Daimler Group 2,853.0 2,998.4 +5

of which

Mercedes-Benz Cars 2,001.4 2,198.0 +10

Daimler Trucks 502.5 415.1 -17

Mercedes-Benz Vans 321.0 359.1 +12

Daimler Buses 28.1 26.2 -7

in thousands of units

Daimler AG

Revenue by division


2015 2016 % change

Daimler Group 149.5 153.3 +3

of which

Mercedes-Benz Cars 83.8 89.3 +7

Daimler Trucks 37.6 33.2 -12

Mercedes-Benz Vans 11.5 12.8 +12

Daimler Buses 4.1 4.2 +2

Daimler Financial Services 19.0 20.7 +9

Contract volume of Daimler Financial Services* 116.7 132.6 +14


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

Daimler AG

Revenue by region


2015 2016 % change

Daimler Group 149.5 153.3 +3

of which

Europe 58.2 63.4 +9

of which Germany 22.0 23.5 +7

NAFTA 47.7 45.0 -6

of which United States 41.9 39.2 -7

Asia 33.7 35.6 +5

of which China* 14.7 16.0 +9

Other markets 9.8 9.3 -5


* excluding revenue of not fully consolidated companies

Daimler AG

Group EBIT in 2016


- in millions of euros -

-6 -698

12,902

+120

13,186 +246

+61

• Cars +1,377 • Trucks -1,638 • Vans +273 • Buses +49

• Cars -98 • Trucks +249 • Vans +3 • Buses +92

• Cars -696 • Trucks +700 • Vans +74 • Buses -84

of which: • Contribution

to pension plan +605 • Legal

proceedings -400 • Impairment

BAIC Motor -244 • Currency

transactions -241 • Measurement of

inventories MBC -238 • Expenses due to

Takata airbags -223 • Own dealer

network +86 • Workforce

adjustments -80 • Patent dispute -64 • Public-sector

levies* +121

-7

Actual

2015

Volume/

Structure/

Net pricing

Foreign

exchange

rates

Other cost

changes

Reconciliation Actual

2016

Financial

Services

Special items

affecting

EBIT

* in 2015

Daimler AG

Group EBIT in Q4 2016


- in millions of euros -

+450

+456 3,459

+3 2,901

+141

-484

• Cars +214 • Trucks -651 • Vans -77 • Buses +30

• Cars -34 • Trucks +114 • Vans +10 • Buses +51

• Cars +299 • Trucks +217 • Vans -44 • Buses -22

of which:

• Expenses due to Takata airbags +307

• Own dealer network +22

• Workforce adjustments +6

• Public-sector levies related to prior periods* +121

-8

Actual

Q4 2015

Volume/

Structure/

Net pricing

Foreign

exchange

rates

Other cost

changes

Reconciliation Actual

Q4 2016

Financial

Services

Special items

affecting

EBIT

* in Q4 2015

Daimler AG

EBIT by division


2015 2016

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

Daimler Group 13,186 8.9 12,902 8.4

of which

Mercedes-Benz Cars 7,926 9.5 8,112 9.1

Daimler Trucks 2,576 6.9 1,948 5.9

Mercedes-Benz Vans 880 7.7 1,170 9.1

Daimler Buses 214 5.2 249 6.0

Daimler Financial Services 1,619 – 1,739 –

Reconciliation -29 – -316 –

* Return on sales; Daimler Group excluding Daimler Financial Services

Daimler AG

Special items affecting EBIT (I)


Q4 Full year

Mercedes-Benz Cars 2015 2016 2015 2016

Restructuring of own dealer network -49 -53 -64 +33

Relocation of headquarters of MBUSA -9 – -19 –

Sale of real estate in the United States – – +87 –

Expenses in connection with Takata airbags -300 -20 -300 -480

Public-sector levies related to prior periods -121 – -121 –

Profit/loss in connection with remeasurement of inventories – – – -238

Settlement in connection with patent dispute – – – -64

Daimler Trucks

Workforce adjustments -23 -8 -58 -91

Restructuring of own dealer network -24 -10 -47 -14

Sale of Atlantis Foundries -6 – -61 –

in millions of euros

Daimler AG

Special items affecting EBIT (II)


Q4 Full year

Mercedes-Benz Vans 2015 2016 2015 2016

Restructuring of own dealer network -18 -8 -29 -11

Relocation of headquarters of MBUSA -1 – -3 –

Expenses in connection with Takata airbags -40 -13 -40 -83

Workforce adjustments in Germany – -8 – -38

Daimler Buses

Restructuring of own dealer network -2 – -4 0

Sale of investment in New MCI Holdings Inc. +16 – +16 –

Workforce adjustments – -1 – -9

Reconciliation

Expenses related to legal proceedings – – – -400

Impairment of investment in BAIC Motor – – – -244

Losses from currency transactions (not allocated to business operations) – – – -241

Contribution of shares of Renault and Nissan to pension plan assets – – – +605

in millions of euros

Daimler AG

EBIT adjusted for special items in FY 2016


2015 2016


Daimler Group 13,829 9.4 14,243 9.4

of which


Daimler Trucks 2,742 7.3 2,053 6.2

Mercedes-Benz Vans 952 8.3 1,302 10.1


Daimler Financial Services 1,619 – 1,739 –



Daimler AG

EBIT adjusted for special items in Q4 2016


Q4 2015 Q4 2016


Daimler Group 3,478 8.7 3,580 9.0

of which


Daimler Trucks 684 6.8 365 4.3

Mercedes-Benz Vans 297 8.5 185 5.3


Daimler Financial Services 387 – 390 –



Daimler AG

Development of dividend per share


2.20

2.45 2.25

- in euros -

+ 48%

3.25

2012 2013 2016

(proposed)

2014 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

7.6 8.1

Plan

2017/2018

(average p.a.)



Daimler AG

Capital expenditure / Research and development




Actual 2015

Actual 2016

Plan* 2017-2018

Actual 2015

Actual 2016

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 – – –


* average p.a.

Daimler AG

Mercedes-Benz Cars: sales increase to 2,198,000 units

(+10%) reflecting our strong product line-up


* incl. GLA

- in thousands of units -

425 435 470 490

306 304

106 84

543

712

29 27

121 144

2016

2015

smart E-Class C-Class A-/B-Class S-Class Sports Cars SUVs*

Daimler AG

Mercedes-Benz Cars: globally balanced sales structure with

strong development in all major regions



578

666

296 314 359 347

400

488

368 383

2016

2015

Rest of world United States Germany Europe

(excl. Germany)

China

Daimler AG

Mercedes-Benz Cars in China: huge sales growth with

increasing share of locally produced vehicles - in thousands of units -

208 239

293

400

488

locally produced

imported

2016 2014 2013 2012 2015

108

100

123

116

147

146

150

250

171

317


Daimler AG

Daimler Trucks: sales decrease to 415,000 units (-17%)

mainly driven by NAFTA region, Turkey and Middle East



76 80

192

146

31 27

148

125

55

37

Rest of world Latin America NAFTA region EU 30* Asia


2016

2015

Daimler AG

Daimler Trucks: incoming orders below prior-year level due to

weak demand in NAFTA region, Turkey and Middle East


78 80

168

119

29 26

146

125

61

36

Rest of world Latin America NAFTA region EU 30* Asia



2016

2015

Daimler AG

Mercedes-Benz Vans: sales increase to 359,100 units (+12%)

due to market success of mid-size vans



21.7 24.9 30.7

48.7

74.4

92.1

194.2 193.4

Sprinter V-Class

(incl. Viano)

Citan Vito

2016

2015

Daimler AG

Daimler Buses: sales decrease to 26,200 units (-7%) mainly

due to difficult economic situation in Brazil



8.6 8.8

4.0 3.8

7.2

4.9 4.7 4.9

3.6 3.8

Rest of world Brazil Mexico Latin America**

2016

2015


** excluding Brazil and Mexico

EU 30*

Daimler AG

Daimler Financial Services: further increase in contract

volume to 132.6 billion euros (+14%)



19.8 21.8

25.8

31.6

50.8 54.2

20.2

24.9

12/31/2016

12/31/2015

Africa &

Asia-Pacific

Europe

(excl. Germany)

Germany Americas

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%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2016 2015

Daimler AG

Capital expenditure Mercedes-Benz Cars

3.3

1,698 2,457

2009

1,618

4.6

2010

2,724

3.9

4.7 4.7

2,246

2006 2007

1,910

3.6

2008

5.7

2011

3,710 3,621

5.8

2013

3,495

2012

4.9

2016 2015

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

3,130 2,696 2,994 2,733

R&D expediture* in millions of euros R&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 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

Mercedes-Benz Cars retail sales by model FY 2015

* incl. Derivatives

** incl. GLA


Mercedes-Benz 1,871,599 1,650,007 +13.4

of which*: A-/B-Class 414,365 389,577 +6.4

C-Class 460,497 343,195 +34.2

E-Class 301,566 338,205 -10.9

S-Class 107,335 107,277 +0.1

SUVs** 525,894 415,363 +26.6

Sports Cars 30,441 31,440 -3.2

V-Class 31,501 24,950 +26.2

smart 119,382 89,844 +32.9


- in units -


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



China* 493,929 386,635 +27.8

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

USA 346,451 350,526 -1.2

Germany 330,846 309,989 +6.7

UK 180,434 152,929 +18.0

BRIKT** 152,199 149,357 +1.9

Italy 89,511 76,064 +17.7

France 73,150 62,971 +16.2

Japan 71,741 65,983 +8.7

South Korea 57,060 45,638 +25.0

Spain 53,908 45,132 +19.4

Canada 42,401 39,696 +6.8

Russia 37,577 42,179 -10.9

Turkey 32,886 30,433 +8.1

Rest of World 393,797 351,699 +12.0


Daimler AG

- in units -

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


Mercedes-Benz Cars retail sales in major markets FY 2015


China* 386,635 299,416 +29.1

of which locally produced vehicles 240,140 151,234 +58.8

USA 350,548 340,623 +2.9

Germany 309,989 282,347 +9.8

UK 152,929 127,823 +19.6

BRIKT** 149,357 131,364 +13.7

Italy 76,064 61,596 +23.5

Japan 65,983 61,768 +6.8

France 62,971 55,436 +13.6

South Korea 45,638 35,985 +26.8

Spain 45,132 34,001 +32.7

Russia 42,179 50,131 -15.9

Canada 39,696 36,474 +8.8

Turkey 30,433 23,263 +30.8

Rest of World 351,677 309,003 +13.8


Daimler AG

MBC regional retail sales mix FY 2016

Japan

3,3%

3,2%

Italy 4,0%

BRIKT**

6,8%

UK

Rest of World

Canada

17,7%

1,9%

2,4% Spain

France

14,8%

15,5%

22,2%

8,1%

Germany

USA

China*

**BRIKT: Brazil, Russia, India, South Korea and Turkey

*Incl. Hong Kong


Daimler AG

MBC regional retail sales mix FY 2015

17,7%

Rest of World

Canada 2,0%

2,3% Spain

3,2% France

3,3% Japan

3,8% Italy

7,5%

BRIKT**

UK Germany

7,7% 15,6%

USA 17,6%

China*

19,4%

**BRIKT: Brazil, Russia, India, South Korea and Turkey

*Incl. Hong Kong


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

Q4 20160-1 Y 1-2 Y 2-3 Y 3-4 Y 4-5 Y 5-6 Y >6 Y

Bonds long term 63,0 -13,6 -13,3 -11,5 -8,3 -6,4 -2,0 -8,0

Total

Q4 2016Q1 2017 Q2 2017 Q3 2017 Q4 2017

Next 12

months

Bonds short term 63,0 -4,8 -3,0 -3,5 -2,3 -13,6

Bonds total outstanding as of Q4 2016: 63,0

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

2015 Actual 2014 Actual 2016 Actual

6,4

5,8

10,67,9

7,46,26,0

2015 Actual 2016 Actual 2014 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

CP

Other

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

Financial

Flexibility Early 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.

The figures in this document are preliminary and have neither been approved yet by the Supervisory Board nor audited by the

external auditor.