Q2 and Half-Year 2018 Results. July 26, Q2 and Half-Year 2018 Results / July 26, 2018 /

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1 Q2 and Half-Year 2018 Results July 26, 2018 Q2 and Half-Year 2018 Results / July 26, 2018 /

2 Contents Results for Q Outlook for 2018 Development at the divisions Q2 and Half-Year 2018 Results / July 26, 2018 / Page 2

3 Highlights of Q Unit sales in thousands of units Revenue in billions of euros Market launch of the new Mercedes-Benz A-Class % Q Q EBIT in billions of euros 3.7* -30% * 40.8 Q Q Net profit in billions of euros 2.5* -1% -27% 1.8 World premiere of the new A-Class L Sedan and C-Class L Sedan for the Chinese market Market launch of the new Mercedes-Benz Sprinter Daimler and Bosch intensify the development of fully-automated and driverless driving New research and development center for automated trucks and buses in Portland, Oregon Formation of the new global E-Mobility Group for electric driven commercial vehicles Q Q Q Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Settlement of the Toll Collect arbitration proceedings Q2 and Half-Year 2018 Results / July 26, 2018 / Page 3

4 High level of net liquidity 50% of dividend payment recovered in H1 - in billions of euros - Free cash flow industrial business H1 2018: 1.8 billion Net industrial liquidity 12/31/2017 Earnings and other cash flow impact Working capital impact M&A effects Dividend payment Other Net industrial liquidity 6/30/2018 Q2 and Half-Year 2018 Results / July 26, 2018 / Page 4

5 Key balance sheet and financial figures Daimler Group Dec. 31, 2017 June 30, 2018 Equity ratio 24.0% 23.8% Gross liquidity Funded status of pension obligations Funding ratio 86% 84% Industrial business Equity ratio 46.4% 45.6% Net liquidity Free cash flow (January-June) in billions of euros Q2 and Half-Year 2018 Results / July 26, 2018 / Page 5

6 Financial flexibility over a 12-month period - in billions of euros ABS potential Credit facility Liquidity Financial Services 45.4 Other Commercial paper Bank loans The financial flexibility provides support to mitigate risk and volatility through a balanced mix of funding instruments and clear principles Daimler follows a financial management to safeguard our A-rating and thus our attractive refinancing conditions A high financial flexibility is a key support to our A-Rating Liquidity industrial business Bonds Available or short-term accessible liquidity is higher than the total maturities over the next 12 months Available or accessible liquidity Maturities over next 12 months Account deposits The current liquidity position reflects the volatile market environment, the currently required high investments for our future business model and the required financial flexibility for our business Q2 and Half-Year 2018 Results / July 26, 2018 / Page 6

7 Daimler renewed and increased its syndicated credit facility Renewal of syndicated 9 billion credit facility (maturing in September 2020) Increase to 11 billion Tenor of 5 years , i. e. until years Syndicate of international banks mostly unchanged together with excellent support by relationship banks No covenants, rating triggers, etc. It is not intended to draw the credit facility Secure significant long-term liquidity reserve at favorable cost Q2 and Half-Year 2018 Results / July 26, 2018 / Page 7

8 Units sales by division Q Q % change Daimler Group of which Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses in thousands of units Q2 and Half-Year 2018 Results / July 26, 2018 / Page 8

9 Mercedes-Benz Cars: product highlights World premiere of the Mercedes-Benz A-Class L Sedan for the Chinese market Q2 and Half-Year 2018 Results / July 26, 2018 / Page 9

10 Mercedes-Benz Cars: product highlights The new long-wheelbase version of the Mercedes-Benz C-Class Sedan celebrated its world premiere at Auto China 2018 Q2 and Half-Year 2018 Results / July 26, 2018 / Page 10

11 Mercedes-Benz Cars: product highlights Market launch of the new Mercedes-AMG GT S Roadster Q2 and Half-Year 2018 Results / July 26, 2018 / Page 11

12 Mercedes-Benz Cars: product highlights Market launch of the new Mercedes-Benz G-Class Q2 and Half-Year 2018 Results / July 26, 2018 / Page 12

13 Mercedes-Benz Cars: product highlights World premiere of the Vision Mercedes-Maybach Ultimate Luxury Q2 and Half-Year 2018 Results / July 26, 2018 / Page 13

14 Daimler Trucks: product highlights Introduction of Freightliner EconicSD in the North American market Q2 and Half-Year 2018 Results / July 26, 2018 / Page 14

15 Daimler Trucks: product highlights Presentation of fully electric Freightliner ecascadia and Freightliner em2 in the U.S. Q2 and Half-Year 2018 Results / July 26, 2018 / Page 15

16 Mercedes-Benz Vans: product highlights Range of the new Mercedes-Benz Sprinter Q2 and Half-Year 2018 Results / July 26, 2018 / Page 16

17 Daimler Buses: product highlights First orders for fully electrically powered Mercedes-Benz Citaro received already before celebrating world premiere Q2 and Half-Year 2018 Results / July 26, 2018 / Page 17

18 Daimler Buses: product highlights World premiere of the Mercedes Benz minibus based on the new Sprinter Q2 and Half-Year 2018 Results / July 26, 2018 / Page 18

19 Daimler Financial Services: product highlights Launch of the new mobility service SSB Flex in Stuttgart Q2 and Half-Year 2018 Results / July 26, 2018 / Page 19

20 Daimler Financial Services: highlights Mobility Services Ongoing business expansion YTD 06/18 Ride-Hailing Group Combined change* % Interactions in millions 24 17** >80 +18% Cities % Customers in millions * car2go, moovel and Ride-Hailing Group (incl. mytaxi, Beat since 02/17, Clever Taxi since 06/17 and Chauffeur Privé since 03/18) combined, 06/18 (YTD) vs. 06/17 (YTD) ** Number of cities with ticketing capability of public transit Q2 and Half-Year 2018 Results / July 26, 2018 / Page 20

21 Cooperation Daimler and Bosch: Californian metropolis will become first pilot testing city for automated driving in 2019 Q2 and Half-Year 2018 Results / July 26, 2018 / Page 21

22 Revenue by division Q2 2017* Q % change Daimler Group of which Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services Contract volume of Daimler Financial Services** * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** figures as of December 31, 2017 and June 30, 2018 in billions of euros Q2 and Half-Year 2018 Results / July 26, 2018 / Page 22

23 Revenue by region Q2 2017* Q % change Daimler Group of which Europe of which Germany NAFTA of which United States Asia of which China** Other markets * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** excluding revenue of not fully consolidated companies in billions of euros Q2 and Half-Year 2018 Results / July 26, 2018 / Page 23

24 EBIT by division Q2 2017* Q EBIT in millions of euros; RoS/RoE in % - EBIT RoS/RoE** EBIT RoS/RoE** Daimler Group 3, , of which Mercedes-Benz Cars 2, , Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services Reconciliation * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** Return on sales for automotive business, return on equity for Daimler Financial Services; Daimler Group excluding Daimler Financial Services Q2 and Half-Year 2018 Results / July 26, 2018 / Page 24

25 Group EBIT in Q in millions of euros - 3,747* -257 Cars -399 Trucks +113 Vans +30 Buses Cars -177 Trucks -109 Vans -3 Buses Cars +111 Trucks -31 Vans -223 Buses DFS: Toll Collect arbitration -418 Trucks: Fixed cost optimization** +24 2,640 Actual Q Volume/ Structure/ Net pricing Foreign exchange rates Other cost changes Financial Services Reconciliation Disclosed items Actual Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** in Q Q2 and Half-Year 2018 Results / July 26, 2018 / Page 25

26 Contents Results for Q Outlook for 2018 Development at the divisions Q2 and Half-Year 2018 Results / July 26, 2018 / Page 26

27 Mercedes-Benz Cars and Vans: continued product offensive AMG 4-door Coupe G-Class (upgraded) GLC F-CELL Mercedes-Maybach S-Class Pullman (upgraded) S-Class Coupe (upgraded) S-Class Cabriolet (upgraded) 2018 CLS A-Class Nov. Dec. Jan. Feb. Mar. Apr. May C-Class Sedan (upgraded) C-Class Wagon (upgraded) C-Class Coupe (upgraded) C-Class Cabriolet (upgraded) C-Class Sedan (long wheelbase, upgraded) A-Class Sedan Jun. Jul. Aug. Sep. Oct. Nov. A-Class Sedan (long wheelbase) and more X-Class Sprinter evito Q2 and Half-Year 2018 Results / July 26, 2018 / Page 27

28 Assumptions for automotive markets in 2018 Car markets Medium- and heavy-duty truck markets Van markets Bus markets Global Europe USA China NAFTA region EU30 Japan* Brazil Indonesia* EU30 USA EU30 Brazil around +2% slight growth around the prior-year level slight growth significant growth around the prior-year level slight decrease significant growth from low level positive development slight growth slight growth slight growth significant growth * including light-duty trucks Q2 and Half-Year 2018 Results / July 26, 2018 / Page 28

29 2018 sales outlook Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Slightly Unit sales higher around unit the sales prior-year level Further Supported growth by wide particularly range of attractive in China and innovative vehicles Strong Further momentum growth in China from the wide range of attractive and innovative vehicles Significantly higher unit sales Significant growth in NAFTA region, Brazil, Indonesia and India; slight growth in Japan Slight Unit sales decrease around in the EU30 prior-year region level in EU30 region and Japan Significantly higher unit sales Significant Slight growth growth in EU30 in EU30 region, region, significant China growth and the in United China States and the United States Additional momentum from new X-Class and new Sprinter Significantly higher unit sales Maintain market leadership in core markets Significant sales increase in EU30 region and further growth in Latin America Q2 and Half-Year 2018 Results / July 26, 2018 / Page 29

30 2018 outlook for EBIT We expect Group EBIT for FY 2018 to be slightly below the prior-year level* based on the following expectations for divisional EBIT: Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services Slightly below the prior-year level Significantly above the prior-year level Significantly below the prior-year level In the prior-year magnitude In the prior-year magnitude* * subject to the completion of the mobility services transaction of Daimler and BMW Group in 2018 Q2 and Half-Year 2018 Results / July 26, 2018 / Page 30

31 Contents Results for Q Outlook for 2018 Development at the divisions Q2 and Half-Year 2018 Results / July 26, 2018 / Page 31

32 Mercedes-Benz Cars Unit sales in thousands of units Revenue in billions of euros EBIT in millions of euros * ,365* 1,901-1% -4% -20% Q Q Q Q Q Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Q2 and Half-Year 2018 Results / July 26, 2018 / Page 32

33 Mercedes-Benz Cars: EBIT - in millions of euros %** 2,365* Warranty costs Temporarily weaker net pricing Foreign exchange rates Higher expenses for new technologies and future products Initiated service activities for diesel vehicles Production shortfall due to a fire at a supplier s facility 8.4%** 1,901 * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** Return on sales EBIT Q EBIT Q Q2 and Half-Year 2018 Results / July 26, 2018 / Page 33

34 Mercedes-Benz Cars: slight sales decrease due to model change of A- and C-Class - in thousands of units smart Sports Cars SUVs S-Class E-Class C-Class 112 Q Q A-/B-Class Q2 and Half-Year 2018 Results / July 26, 2018 / Page 34

35 Mercedes-Benz Cars: globally balanced sales structure with strong development especially in China - in thousands of units Rest of world Europe excl. Germany Germany United States China Q Q Q2 and Half-Year 2018 Results / July 26, 2018 / Page 35

36 Mercedes-Benz Cars in China: continued strong sales growth with higher share of locally produced vehicles - in thousands of units - imported locally produced YTD 06 Q2 and Half-Year 2018 Results / July 26, 2018 / Page 36

37 Daimler Trucks Unit sales in thousands of units Revenue in billions of euros EBIT in millions of euros * * % +2% -0% Q Q Q Q Q Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Q2 and Half-Year 2018 Results / July 26, 2018 / Page 37

38 Daimler Trucks: EBIT - in millions of euros %** Higher unit sales especially in the NAFTA region 5.9%** Efficiency enhancements 548* 546 Customer service measures at Mercedes-Benz Trucks in Q Higher expenses for raw material Foreign exchange rates Higher costs, mainly related to supply chain constraints EBIT Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** Return on sales EBIT Q Q2 and Half-Year 2018 Results / July 26, 2018 / Page 38

39 Daimler Trucks: sales increase by 6% mainly driven by Asia and NAFTA region - in thousands of units Rest of world Asia Latin America NAFTA region 20 Q * European Union, Switzerland and Norway 21 Q EU30* Q2 and Half-Year 2018 Results / July 26, 2018 / Page 39

40 Daimler Trucks: significant increase in incoming orders mainly driven by NAFTA region - in thousands of units Rest of world Asia Latin America NAFTA region 20 Q * European Union, Switzerland and Norway 21 Q EU30* Q2 and Half-Year 2018 Results / July 26, 2018 / Page 40

41 Mercedes-Benz Vans Unit sales in thousands of units Revenue in billions of euros EBIT in millions of euros * * +7% +6% -56% 152 Q Q Q Q Q Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Q2 and Half-Year 2018 Results / July 26, 2018 / Page 41

42 Mercedes-Benz Vans: EBIT - in millions of euros %** 349* Higher unit sales Higher expenses for new technologies and new products Impacts from the Sprinter model change Initiated service activities for diesel vehicles and delivery delays 4.3%** 152 EBIT Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** Return on sales EBIT Q Q2 and Half-Year 2018 Results / July 26, 2018 / Page 42

43 Mercedes-Benz Vans: sales increase by 7% due to market success of attractive product portfolio - in thousands of units Sprinter Q Q Vito V-Class X-Class Citan Q2 and Half-Year 2018 Results / July 26, 2018 / Page 43

44 Daimler Buses Unit sales Revenue EBIT in thousands of units in billions of euros in millions of euros * * 66 +0% -12% -15% Q Q Q Q Q Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) Q2 and Half-Year 2018 Results / July 26, 2018 / Page 44

45 Daimler Buses: EBIT - in millions of euros %** 78* Efficiency enhancements Foreign exchange rates Product mix Inflation-related cost increases 6.1%** 66 EBIT Q * adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9) ** Return on sales EBIT Q Q2 and Half-Year 2018 Results / July 26, 2018 / Page 45

46 Daimler Buses: higher unit sales in Brazil and India - in thousands of units Rest of world Latin America (excl. Brazil and Mexico) Brazil Mexico EU30* Q * European Union, Switzerland and Norway Q Q2 and Half-Year 2018 Results / July 26, 2018 / Page 46

47 Daimler Financial Services New business in billions of euros Contract volume in billions of euros EBIT in millions of euros % +5% -87% 66 Q Q /31/2017 6/30/2018 Q Q Q2 and Half-Year 2018 Results / July 26, 2018 / Page 47

48 Daimler Financial Services: EBIT - in millions of euros %* 522 Higher contract volume Settlement of the Toll Collect arbitration proceedings Higher interest-rate level Foreign exchange rates 2.1%* 66 EBIT Q EBIT Q * Return on equity Q2 and Half-Year 2018 Results / July 26, 2018 / Page 48

49 Daimler Financial Services: further increase in contract volume to billion euros - in billions of euros Africa & Asia-Pacific Americas Europe (excl. Germany) /31/ /30/2018 Germany Q2 and Half-Year 2018 Results / July 26, 2018 / Page 49

50 Daimler Financial Services: net credit losses* at low level due to disciplined risk approach 0.89% 0.83% 0.69% 0.68% 0.61% 0.50% 0.51% 0.36% 0.43% 0.34% 0.37% 0.31% 0.24% 0.31% 0.26% 0.21% YTD * as a percentage of portfolio, subject to credit risk Q2 and Half-Year 2018 Results / July 26, 2018 / Page 50

51 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 and tariff regulations; 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. Q2 and Half-Year 2018 Results / July 26, 2018 / Page 51