Fixed Income Presentation Q2 2019 07.08.2019 Financial performance - PowerPoint PPT Presentation

Fixed Income Presentation Q2 2019 07.08.2019

Financial performance in Q2 2019 affected by model changeovers and restraint availability of vehicles Unit sales Revenue Free cash flow (ind. business) in thousands of units in billions of euros in billions of euros 1.8 42.7 833 822 40.8 -1% +5% -3.3 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q1-Q2 2018 Q1-Q2 2019 EBIT Net profit Earnings per share in billions of euros in billions of euros in euros 2.6 1.8 1.61 -1.6 -1.2 -1.24 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Daimler Fixed Income Presentation / Q2 2019 / Page 2 Daimler AG

Net industrial liquidity affected by implementation of IFRS 16, dividend payment and industrial free cash flow development Free cash flow industrial business H 1 2019: minus €3.3 billion 16.3 -3.2 +3.6 -5.0 +1.9 -3.5 13.1 -0.3 -3.5 +0.3 6.6 Net industrial Effects from Net industrial Earnings and Working Depreciation and Additions to Investments in Dividend Other Net industrial liquidity initial application liquidity other cash capital impact amortization/ property, plant, and disposals of payment liquidity 12/31/2018 of IFRS 16 1/1/2019 flow impact impairments equipment and shareholdings Daimler AG 6/30/2019 intangible assets Daimler Fixed Income Presentation / Q2 2019 / Page 3 Daimler AG

Daimler committed to keep a prudent level of Gross Liquidity Gross Group Liquidity (in bn EUR) Net Industrial Liquidity (in bn EUR) Financial Services Industrial Business 25.4 19.7 22.1 4.3 21.7 21.5 18.6 16.6 3.7 3.5 16.3 3.1 18.2 2.8 21.2 18.4 18.4 18.2 6.6 15.4 2015 2016 2017 2018 Q2 2019 2015 2016 2017 2018 Q2 2019 Note: Figures may not be additive due to rounding. Daimler Fixed Income Presentation / Q2 2019 / Page 4 Daimler AG Daimler AG

Financial flexibility over a 12-month period in billions of euros 58,5 Other incl. Fin. Lease 1,8 3,7 Commercial 50,6 paper The financial flexibility provides support to mitigate risk and volatility through a balanced mix of funding instruments and clear principles Bank loans ABS 20,5 18,1 potential Daimler follows a financial management to safeguard our A-rating and thus our attractive refinancing conditions Credit 11,0 facility Liquidity A high financial flexibility is a key support to our A-Rating Bonds 23,1 3,1 Financial Services The current liquidity position reflects the volatile market Liquidity industrial 18,4 environment, the currently required high investments for our future business Account 9,3 business model and the required financial flexibility for our business deposits Available or Maturities accessible over next liquidity 12 months Daimler Fixed Income Presentation / Q2 2019 / Page 5 Daimler AG

Daimler follows a prudent Financial Policy Clear commitment to a single A rating Balanced approach between shareholder interest and credit providers Dividend policy of 40% target pay-out ratio* depending on supporting cash flows No share buybacks planned Pensions: current funded ratio at 76% *Based on net profit attributable to shareholders of Daimler AG. Daimler AG Daimler Fixed Income Presentation / Q2 2019 / Page 6 Daimler AG

Funding is the base to ensure sustainable portfolio growth at Daimler Mobility Wholesale 11.7 % CAGR 156 154 140 Loan 133 Lease 117 99 Others 84 80 Trucks 72 71 72 62 Portfolio 64 58 Buses (in bn €) 48 41 Vans 38 34 Acquisitions 29 (in bn €) Passengers Cars 1 st HY 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Daimler Fixed Income Presentation / Q2 2019 / Page 7 Daimler AG

Our portfolio continues to perform on an excellent level, based on our outstanding acquisition quality 0.89% 0.83% 0.69% 0.68% 0.61% 0.50% 0.51% 0.43% 0.36% 0.37% 0.34% 0.31% 0.31% 0.26% 0.24% 0.21% 0.20% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD Net credit losses as a percentage of portfolio, subject to credit risk Daimler Fixed Income Presentation / Q2 2019 / Page 8 Daimler AG

Our Funding Strategy is built on prudent Principles No dependence from single markets, instruments, banks or investors Targeting Diversification of funding sources and instruments: Financial Bank Loans, Bonds, ABS, CP, Deposits Independence No Covenants, no MAC, no asset pledges, no CSAs Keeping prudent amount of Cash and Committed Credit Facility Maximizing Financial New markets funded via global and local banks first Flexibility Early capital market funding to save credit capacity in growth regions Liquidity matched funding Interest rate matched funding Stringent Global Funding Policy Currency matched funding Country matched funding Daimler Fixed Income Presentation / Q2 2019 / Page 9 Daimler AG Daimler AG

To ensure sustainable portfolio growth, we mitigate risk and volatility through a balanced mix of funding instruments Capital Markets Strengthen our global footprint and use market opportunities Other Fin. Lease (IFRS 16) 1% 3% Deepen our excellent Bank Loans bank relationships Bank loans 20% Globally expand our highly Bank loans ABS 25% competitive ABS issuances Q2 Target Maintain well controllable 10% 50% Deposits Cap Market Deposit 2019 54% Cap Market liquidity reserve 8% Deposits 20% 8% ABS ABS RATING INDEPENDENT Daimler Fixed Income Presentation / Q2 2019 / Page 10 Daimler AG

Financing Liabilities with a balanced mix in billions of EUR Fin. Lease (IFRS 16) Acc. Deposits Other (ex Fin. Lease) Bank Loans Com. Paper Bonds ABS 154.1 145.0 0.0 4.1 2.0 1.8 12.7 0.0 127.4 12.5 2.8 3.7 0.0 2.0 12.2 117.6 11.8 11.0 1.0 1.0 10.6 100.6 0.0 11.5 1.7 39.3 1.5 11.6 39.4 7.4 3.0 34.6 10.5 29.7 27.3 80.2 76.6 67.3 63.0 50.8 2015 2016 2017 2018 Q2 2019 Note: Figures may not be additive due to rounding. Daimler Fixed Income Presentation / Q2 2019 / Page 11 Daimler AG Daimler AG

Consequent Development to Global Capital Market Funding Diversification will continue Canada EMTN Euro Market Domestic Bonds Korea ABS EMTN Program CP Domestic Bond Prog. Italian domestic EUR CP Program ABS China Japan USA Domestic Bonds Turkey 144a / RegS PP Domestic Bonds ABS CP Domestic Bonds EMTN ABS EMTN Thailand India Domestic Bond Prog. Mexico Domestic Issuance Prog. Domestic Bonds Malaysia Domestic CP Domestic Bond Prog. Brazil Letras Financeiras Australia South Africa EMTN Domestic Debt Argentina Domestic CP Prog. Issuance Prog. ABS Domestic Debt Issuance Prog. Daimler Fixed Income Presentation / Q2 2019 / Page 12 Daimler AG

Funding base further diversified to a true global set-up in billions of EUR 154,1 3% 1% 8% 2% 8% 25% Currency Volume % EUR 34,5 43% USD 29,4 37% CNY 3,6 5% CAD 3,1 4% Fin. Lease (IFRS 16) 0% 57,3 GBP 3,1 4% Other 2% Currency Volume % ZAR 1,7 2% Com. Paper 0% EUR 19,5 66% 22% KRW 0,8 1% 2% ABS USD 7,8 27% 52% AUD 0,6 1% Acc. Deposits ZAR 0,8 3% 23% JPY 0,6 1% Bank Loans JPY 0,6 2% MXN 0,5 1% GBP 0,3 1% CHF 0,4 0% 51% Bonds CHF 0,2 1% Other (THB, NOK 1,1 1% Other (AUD, 0,2 1% INR, BRL, MYR, MXN, ARS) HKD) Q4 2009 Q2 2019 Total 29 Total 80 Currencies 9 18 Currencies Note: Figures may not be additive due to rounding. Daimler Fixed Income Presentation / Q2 2019 / Page 13 Daimler AG Daimler AG

Maturity profile further lengthened in billions of EUR as of 30 June 2019 17.5 17.1 0.2 0.5 Issued in 2019 Maturities 9.8 8.6 17.3 16.6 2.5 5.9 5.1 1.5 0.9 3.7 2.2 2.1 6.1 2.0 2.1 1.9 4.4 4.2 1.3 0.4 0.8 1.0 0.2 1.5 1.3 1.0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2037 Daimler Fixed Income Presentation / Q2 2019 / Page 14 Daimler AG Daimler AG

Project Future – Continuation of the “One Credit” Approach 1  DPLTAs between Daimler AG and new entities as centerpiece of the new structure from a financing perspective DPLTA*  Maintains access to all operating cash flows (contingent on up-stream dividend payments to Parent Co’s ) 2  Centralized steering of group funding supported by written guarantees will remain in place Group Funding  Operational and Financial Guarantees to be provided by Daimler AG (vs. contractual guarantees, i.e. buyback) 3 Liquidity  Direct and unrestricted access to group liquidity by Daimler AG Management 4 Management of  Continued centralized management of the impact of market fluctuations (FX, interest rates, commodities) of the Market Price divisions and the Group Risks 5  Strong commitment to maintain Daimler’s strong credit profile Rating * DPLTA: Domination and Profit & Loss Transfer Agreement Daimler Fixed Income Presentation / Q2 2019 / Page 15 Daimler AG Daimler AG

Solid Rating supports Daimler‘s Funding Current ratings: S&P: A negative A-1 Moody’s: A2 negative P-1 Fitch: A- stable F1 DBRS: A stable R-1 (low) Scope: A stable S-1 Daimler target: Sustaining the A rating at all rating agencies Daimler Fixed Income Presentation / Q2 2019 / Page 16 Daimler AG Daimler AG