Digital Life

-Digital Transformation of a traditional Manufacturer-Harald Rudolph

Munich, February 07th, 2017

Daimler AG

2016: Another record year and back on #1

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• Record unit sales with around

3 million vehicles sold (+5%)

• Group revenue: up by 3% to

€153.3 billion

(2015: 149.5 billion)

• Group EBIT adjusted for

special items increased to

€14.2 billion

(2015: €13.8 billion)

• Net profit at highest level with

€8.8 billion

(2015: €8.7 billion)Mercedes-Benz: #1 in the Premium Segment

Daimler AG

Over130 years ago we fundamentally changed mobility

Daimler AG

Now is the time to transform Mobility – again

Connected Autonomous Shared/Services Electrified

Daimler AG 5

Example China

Fleet consumption [l/100 km]

2020 2025

portfolio adjustments

(amongst others: xEV)

conventional

optimization

2015

6,9 l (166g/km)

till 2020 STAGE IV post 2020 STAGE V

Regulation drives electrification

Tax Advantage:

25,751 €

Bonus:

5,644 €

Cost Advantage

E350e PHEV vs. E350d*

, 3 years ownership)

Daimler AG

Foto: AP

Attractive products, innovation leader,

efficiency & safety

Lack of drivers and profitability

Safety, information and

attractive new business models

Head to head race for autonomous driving

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Attractive, innovative new business

models

Daimler AG

Successful Eco Systems own the customer interface

Quelle: Unternehmen, mm-Recherche

Go dutchFor example splitting of a

restaurant bill with friends

Quick PayPayment based on a QR-

Code without cash

TransferMoney transfer to other users

of a We-Chat- Wallet accounts.

Mobile top upAdminisitration of your own mobile phone

account, including re-charging of pre-paid

cards

UtilitiesPayment of utility bills (electricity, gas,

water) as well as fines

SpecialsShopping of special offers by JD.com, an e-

commerce company, in which Tencent holds

shares

Group buyOffers for group buys in

restaurants, hotels or karaoke bars

Air ticketsOrdern von Flugtickets, aber auch von Fahrkarten für den

öffentlichen Nah- und Fernverkehr.

Order TaxiOrdering of a taxi @ Didi Chuxing,

(Tencent is share holder).

Movie TicketsBuying of cinema tickets, but

also of tickets for cultural and

sports events

Lucky moneyMonetary gifts, especially red

envelopes for chinese new year

Daimler AG

Mercedes-Benz Uptime

E-Klasse mit

Intelligent Drivesmart ready to drop

crooveB250 e

EVA2

Future Bus

F015

Future Bus mit

City Pilot

Urban eTruck

Truck mit Highway Pilot

“Connected, Autonomous, Shared/Services & Electrified“

drives customer focused products and services

Seite 21

Daimler AG 9

CASE means dealing with ambiguity

100%

EV Share

Mercedes-Benz Cars

Sales 2025

Greater

China

NAFTA

WEU

Highest Potential EV Share

Mercedes-Benz Cars 2025

Ready for the market

50%

15%

25%

Daimler AG

Modular set up of next generation drive train technologies

will allow a variety of derivatives

10

Modular Battery Concept

Modular eDrive ConceptEntry

Large +

Mid

small

Large

small

Large

Large +

High

Front Axle Rear Axle

Daimler AG

Flexible integration of e-mobility in global production network

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NAFTA Europe Asia

MFA

MRA

MHA

Existing architecture

orientation

Existing regional

orientation

Integration

across

architectures

Integration

across regions

Existing MBC

production locations

Daimler AG

CASE means understanding heterogenous customer

requirements

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Direct and indirect impact on customer perception

13

Big Data

Operate /

Customer

Interface

Indirect customer perception Prerequisites !

Development Procurement Production Sales After Sales

Direct customer perceptionRequirements !

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Digitalized Eco System

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Digitalization along the value chain mandatory to align

customer expectation and our capabilities

Seite 15- Mercedes Benz Cars -

Cross-functional initiatives

Fleetboard

Detroit Virtual

Technician

Flashen Over The

Air

Big Data @ GSP

Mercedes me

Mercedes Online

Store

Daimler

Commerce

Platform

Mercedes City

Store

Moovel

Car2Go

MyTaxi

Mercedes-Benz

Rent

360° Connectivity

Digital Process

Chain

Agile Production

Systems

Big Data @ Smart

Factory

Sales Service New BusinessProcurement Prod./Supply Chain

Smart Procurement Smart Sales Smart ServiceSmart Operations Smart Business

New Purchasing

System

Transform Quality

Mngmnt

Data- and

Process-Backbone

MBC

MP Reporting 360

Digital Testing

Platform

ARENA2036

R&D

SMART Development(Smart Product)

Digital Prototype

Digital

Development

Smart Supply

Chain

Individuali-

zation

Information on product status

Changes

short term

Quick

updates

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Virtual product planning

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Early support of production planning without real parts & products

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DigitalLife Day

Open Space

Hackathon

Peninsula

Examples:

Digitalization – changing our cultureHackathon Stuttgart

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Daimler AG Page 18

The Mobility of the Future is

Connected. Autonomous. Shared. Electric.

And driven by Daimler!