daimler financial service at a glance. company overview 2013

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Daimler Financial Services at a Glance. Company Overview 2013.

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Daimler Financial Services at a Glance.Company Overview 2013.

Company Overview 2013 | 3

Foreword

Customers all over the world rely on products from Daimler Financial Services — and with good reason, our financing offers make people’s dreams of owning a Mercedes come true. Thanks to our leasing packages, customers always look forward to checking out the latest model. Moreover, our insurance solutions guarantee that our customers receive especially favorable insurance premiums if they drive safe cars such as those from Mercedes-Benz.

As different as our products may be, they clearly have one thing in common: outstanding service quality. For this reason, we had more leasing and financing contracts last year than ever before. In fact, more than 2.8 million cars and trucks were on the road thanks to our financial services. On average, we finance or lease four out of ten Daimler vehicles worldwide.

All of this exemplifies the growing demand for leasing and financing solutions. At the same time, the rapid spread of smartphones is creating totally new channels to organize personal mobility, especially in large cities. We also want to play a major role in shaping this trend. Our car2go mobility concept makes us the global market leader for flexible carsharing services. However, our plans go much further than that. Our moovel smartphone app enables customers to compare various transportation systems with just a tap on the screen in order to find a personalized route that takes them from point A to point B.

We help people to get ahead, no matter whether you want us to finance your dream car or truck fleet, provide you with an all-inclusive care-free leasing package that includes insurance and maintenance, manage your commercial fleet, enable you to re-equip your dealership, or simply drive a car2go vehicle to your next appointment. And, we have lots more planned for the future.

Pleasant reading! We invite you to learn more about us and our plans.

“We aim to become the leading provider for financial and mobilityservices.”Klaus Entenmann, Chairman of the Board of Management of Daimler Financial Services AG

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Outstanding financial services

Daimler Financial Services offers a comprehensive range of automotive financial services. The products range from leasing and financing offers to financial services for dealerships, commercial fleet management, insurance solutions and banking services. All of these offers help customers make their automotive dreams come true, support the Daimler Group’s vehicle sales and promote customer and dealer loyalty. Studies show that customers who lease or finance their vehicles remain loyal to their brands much longer than those who purchase their cars outright. They also more frequently invest in new vehicles and high-end equipment packages.

FinancingWe are helping people fulfill their dreams of owning a car – by offering them competitive loans and the possibility of influencing their monthly payments by selecting the size of the down payment and the duration of the contract. This allows them to remain financially flexible and still own a Mercedes in the end. Option financing provides customers with even more leeway, as they can decide whether to keep their vehicles by paying the residual value or concluding a follow-on financing agreement until the contract expires. Alternatively, customers can return the vehicle and switch to the latest model. Moreover, Daimler Financial Services offers balloon-payment financing in many countries so that customers can enjoy especially favorable monthly installments.

LeasingWe provide customers with maximum flexibility. Thanks to our attractive leasing offers, customers benefit from low monthly payments. The payment is determined individually for each customer, depending on the duration of the contract and the total distance traveled. At the expiration of the contract, customers can decide whether they want to switch to a new vehicle. This ensures that customers can regularly look forward to driving the latest model and it also allows them to obtain tax breaks in many countries. Another attractive product is service leasing, in which the monthly payment also covers the cost of a comprehensive range of individually selectable services such as maintenance, insurance products and the repair of damage caused by wear and tear.

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InsuranceWe offer reliable protection – not only through our safe vehicles, but also by means of attractive insurance products. Our motor insurance provides comprehensive coverage and guarantees that damaged vehicles are always repaired by specialists who use genuine spare parts in accordance with the manufacturer’s instructions. Customers can drive with even more peace of mind with our warranty insurance, legal expenses insurance, payment protection insurance and purchase price protection. If an automobile is totaled, the last of these products covers the gap between the price of a new vehicle and the resale value paid by a full automotive coverage policy. And because we are convinced of the high quality of our work, we also provide our own insurance coverage. Among other things, our Corporate Insurance unit insures all of Daimler’s production facilities, as well as its shipments and product liability risks.

Fleet managementWe ensure smooth and efficient fleet operations, thanks to fleet management concepts that provide commercial customers with tailored packages for the procurement, use and maintenance of vehicles. Our specialists not only create appropriate financing and leasing solutions, but also take care of all fleet-related services such as repairs, tire replacement and fuel card management. We take a holistic approach to mobility in order to provide our customers with economical, state-of-the-art fleet solutions. We can also incorporate electric vehicles into customers’ fleets if they desire or enable employees to share cars within companies. A central contact person who knows the customer’s precise goals and requirements provides top-quality personal advice. Offering efficient mobility solutions to our customers is our approach to cutting fleet costs and improving employee motivation.

Banking ServicesWe open up new opportunities with credit cards that provide our customers with financial leeway and all-round protection all over the world and with flexible investments in which they benefit from favorable terms. In Germany, for example, the Mercedes Card provides customers with accident and breakdown coverage, foreign travel health insurance, travel cancellation insurance, rental car liability insurance and a range of interesting rewards programs. In Germany, Mercedes-Benz Bank offers customers attractive investment opportunities. Our call money accounts, fixed-interest rate accounts and savings plans are just as reliable as the vehicles from Daimler.

Our vision is simple but ambitious: Working closely with our automotive colleagues, we want to be the first-choice provider of financial and mobility services for our customers and dealers. We want to attain this goal by contributing to Daimler’s sales and financial success; creating added value for our customers, dealers and vehicle brands; offering our employees attractive possibilities for professional development; and fulfilling our social responsibilities.

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Innovative mobility services

Besides offering financial services, Daimler Financial Services is a pioneer in the development of innovative mobility services. With our state-of-the-art smartphone-based services, we open up a new dimension of mobility for our customers and raise flexibility to a new level. Through its car2go brand, Daimler Financial Services is already one of the world’s leading providers of carsharing services. The mobility platform moovel enables customers to find the best way to get from point A to point B even if they aren’t traveling by car. Besides offering these services, we are working on additional intelligent mobility solutions for the future. We have consolidated all of these services at the Daimler Financial Services subsidiary Daimler Mobility Services GmbH.

car2go We are enabling our customers to get ahead with our flexible mobility service car2go. Customers can rent smart brand vehicles at any time and on the spur of the moment and leave the car anywhere within the area covered by the service when the trip is over. Customers can find the vehicles on their smartphones or computers and only have to pay for the actual rental period, which is charged by the minute. The rental fee also covers the cost of parking, fuel, taxes and insurance. Besides allowing customers to save money, the service helps to protect the environment, since the smart is an extremely environmentally friendly automobile — and car2go even utilizes electric vehicles in selected cities. In this way, the pioneer for flexible mobility concepts gives people the opportunity to experience electric mobility at first hand.

moovel Finding the best way to get from point A to point B is easy with the smartphone app moovel. The system allows customers to compare the costs and travel times of various mobility options such as car2go, taxis, ridesharing services and local public transportation. At the beginning of 2013, the app was already available for Stuttgart and Berlin.

Intelligent parking solutionsWe’re making it easier for drivers to find a parking space, thanks to new technologies that simplify the process of finding, booking and paying for parking spaces. Customers can already book and pay for parking spaces online in the U.S. and Canada through our strategic partner GottaPark and plans are being made for additional cooperation projects for intelligent parking in urban areas.

Strong partnershipsWe are shaping the future of mobility through strategic partnerships that increase flexibility and the range of options for our customers. For example, the Group has a financial interest in the company that provides the myTaxi smartphone app, as well as in carpooling.com, whose mitfahrgelegenheit.de portal is the market leader in Germany’s carpooling segment. Daimler also has an interest in the tiramizoo platform for arranging inner-city courier services. Within the framework of car2go, the Group also cooperates with the Europcar rental company, local governments and numerous public transport companies.

Flexibly mobile with car2go: The market leader for flexible carsharing is already represented in the following cities: Ulm, Austin, Hamburg, Vancouver, Amsterdam, San Diego, Vienna, Düsseldorf, Washington D.C., Portland, Berlin, Toronto, Calgary, Miami, Cologne, Stuttgart, London and Seattle.

State 2012

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(in millions of euros) 2012 2011 12/11

% change

EBIT 1,292 1,312 -2

Revenues 13,550 12,080 +12

New business 38,076 33,521 +14

Total portfolio 79,986 71,730 +12

Europe 34,536 31,173 +11

Americas 34,060 30,605 +11

Africa & Asia Pacific 11,337 9,936 +14

Portfolio (in units) 2,837,267 2,612,000 +9

Employees (Dec. 31) 7,779 7,065 +10

Contract volume in 2012 by market (in millions of euros)

Contract volume in 2012 by vehicle segment (in units)

Key figures

Daimler Financial Services

UK 5,205

Canada 3,792

Brazil 3,394

Japan 2,825

Australia 2,347

France 2,237

China 2,187

Italy 1,772

Daimler Financial Services contract volume (in millions of euros)

Daimler Trucks 337,196

Mercedes-Benz Vans 321,223

Daimler Buses 46,271

Other Brands 208,331

20092007 2008 2010

63,35358,35059,143

63,725

20122011

79,986

71,730

All segments 2,837,267

United States 25,661

Germany 17,761

Other 12,805

Mercedes-Benz Cars 1,924,246

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Close to customers in 40 countries

7,065

7,779

Americas 1,588 1,794

Africa & Asia Pacific 1,152 1,471

Europe 4,325 4,514

2011 2012Employees (Dec. 31, 2012)

· Taiwan· Hongkong

· China

· Germany· UK· France· Italy· Netherlands· Belgium· Luxembourg· Switzerland· Austria· Spain· Portugal

· Denmark· Sweden· Hungary· Poland· Czech Republic· Slovakia· Slovenia· Croatia· Greece· Turkey· Romania

· Russia

· Singapore

· Canada

· United States

· Mexico

· South Africa

· South Korea· Japan

· Thailand

New Zealand ·

· Australia

· Brazil

· Argentinia

· India

· Malaysia

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The world behind the numbers

For Daimler Financial Services, social responsibility and high employer appeal are two sides of the same coin. That’s because we want to fulfill our corporate social responsibilities as well as being the employer of choice for employees and job applicants. We strive to achieve both of these goals every day, and we do so with commitment and enthusiasm.

Corporate social responsibility Daimler Financial Services is involved in social and cultural projects all over the world. This involvement is an integral element of our corporate culture. In the last year alone, individual employees and even entire departments and units implemented over 250 projects. In this way, we are giving something back to society and ensuring that working at Daimler Financial Services will remain a special experience.

Corporate volunteering. Daimler Financial Services offers its employees a broad range of corporate volunteering opportunities. On the Day of Caring, for example, Daimler Financial Services gives its employees one day off from work so that they can jointly assist social institutions or get involved in community projects. In 2012, for instance, employees renovated an inner-city playground and park in Germany, cleared a nature preserve in New Zealand of an imported noxious weed and built houses for needy families in Nepal. Our strategic partners for these and many other projects include SOS Children’s Villages and Habitat for Humanity. In addition, our “Moved by Ideas” program supports the private volunteering activities of our colleagues. Whenever three or more employees are involved in the same nonprofit activity, Daimler Financial Services pays for the project’s materials up to a certain limit.

Education. Our partnership with the Beyond Basics program is helping public school children in the Detroit metropolitan area to discover their strengths and talents. Through special courses that promote academic excellence and expand the participants’ horizons, the program provides at-risk children and teenagers with assistance and additional educational opportunities. Through their work in various volunteer programs, hundreds of colleagues have contributed to Beyond Basics since the partnership was formed. Another education program that opens up new opportunities for needy children is Rally to Read, in which employees from Mercedes-Benz Financial Services have been involved for

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the past 12 years. For this South African project, colleagues visit remote and needy rural schools, where they distribute books and other instructional materials.

Sponsorship of art and culture. Because cultural activities encourage innovative thinking and promote social and economic progress, Daimler Financial Services sponsors art and culture projects and institutions worldwide. These partnerships benefit not only the recipients but also our employees. In Berlin, for example, our employees are granted free admission to 25 cultural institutions, including the Pergamon Museum and the Old and New National Galleries. In Stuttgart, Mercedes-Benz Bank is the main partner of the Kulturfabrik Theaterhaus, which offers our employees discounted tickets for many of its events. In the U.S. and Canada, Daimler Financial Services cultivates partnerships with several renowned art academies, including the Cranbrook Academy of Arts in Michigan, the Ontario College of Art & Design, the Southern Methodist University and the Christian University in Texas. In this way, art students and employees from Daimler Financial Services can enter into a dialogue about art and innovation.

Daimler Financial Services: An attractive employer Transforming one person’s idea into a globally leading service: Our successful car2go mobility concept demonstrates that a company’s greatness depends on its employees’ enthusiasm and ideas. At Daimler Financial Services, this insight isn’t just a theory; it’s everyday reality. We want to be the best employer for our staff members and one of the first companies that job-seekers consider. To enable us to continuously enhance our corporate culture, we promote direct discussions throughout the company and focus on partnerships that are characterized by trust, quick implementation and a customer-oriented approach. Even more importantly, we are always open to employee feedback. One example of this is the global employee survey that is regularly conducted by the independent Great Place to Work Institute. The results of the most recent survey are encouraging, as eight out of ten respondents consider Daimler Financial Services a very attractive employer overall. In the U.S., Canada and Portugal, jobs at our company are among the most sought-after positions in the country.

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August 1: Daimler Financial Services becomes the first captive automobile financing company in China to enable private and commercial customers to lease vehicles.

August 16: Mercedes-Benz Bank goes on Facebook to intensify its direct dialogue with customers.

September 1: In Canada, Daimler Financial Services ranks ninth on the list of the most popular national employers, as ascertained by the independent Great Place To Work survey. The rankings also show that the subsidiaries in the U.S. and Portugal are among the most popular companies in their respective countries.

October 2: The new call center of Daimler Financial Services’ national subsidiary in China takes first place in the Industry Promising Star of the Year category of the Best Customer Contact Center & CRM Awards 2012.

November 7: Daimler Financial Services establishes a new subsidiary in Malaysia. The new company, which is called Mercedes-Benz Services Malaysia, offers customers many attractive automotive financial services. Following the establishment of the new subsidiary, Daimler Financial Services is represented in 40 countries.

November 21: In Argentina, Daimler Financial Services achieves an impressive index value of 95 percent in a customer satisfaction study. In Mexico, the local national subsidiary ranks first in a dealer satisfaction survey.

November 23: MoneyWeek magazine presents Daimler Financial Services in China with its Best Auto Finance Product Award 2012 in recognition of the company’s finance-leasing product. The Daimler Financial Services national subsidiaries in Taiwan and Australia take first place in dealer satisfaction surveys.

November 29: car2go is launched in Daimler’s home town of Stuttgart. In the city, the market leader for flexible carsharing operates Germany’s largest fleet of electric vehicles, encompassing 300 battery-electric smart brand cars.

November 29: For the first time ever, the company manages financing and leasing contracts worth over $30 billion in the U.S. No other country in the world accounts for such a large contract volume at Daimler Financial Services. The Americas region has a combined portfolio of over $40 billion.

December 10: Mercedes-Benz Bank celebrates its 25th anniversary. Over the past quarter of a century, the company has become one of Germany’s top three automotive banks with an associated direct banking business.

Milestones in 2012

February 20: The new BharatBenz brand is launched in India. To accompany the launch, Daimler Financial Services begins to offer financing and insurance products for trucks from this locally manufactured Daimler brand. At the end of the year 2012, the Indian Daimler Financial Services subsidiary already had a contract volume of over €100 million.

April 19: Mercedes-Benz Bank becomes the new main sponsor of the German premier league soccer team VfB Stuttgart. In the 2012-2013 season, the VfB players wear the bank’s name on their jerseys.

May 15: Mercedes-Benz Bank launches a mobile rate calculator. It enables customers to use their smartphones or tablet PCs to calculate the financing and leasing rates of a Mercedes-Benz car from anywhere and at any time.

May 31: In Canada, Daimler Financial Services captures first place in two of the three main categories of the dealer satisfaction survey conducted by the renowned J.D. Power market research institute.

June 1: Stephan Unger is appointed to the Daimler Financial Services Board of Management, where he becomes Head of Finance & Controlling.

June 15: Daimler Financial Services’ new sale&care program makes electric mobility affordable for everyone, as customers don’t have to buy the battery, which is the most expensive component in an electric vehicle, but only rent it. The offer also includes regular maintenance, servicing and — if necessary — fast replacement of the battery.

July 11: The new smartphone app moovel brings together information about the transport services offered by a wide range of mobility providers so that users can find out how to get from point A to point B most conveniently. Following an initial pilot project in Stuttgart, the app is launched in Berlin in the fall of 2012.

July 18: For the fourth time in a row, Mercedes-Benz Bank comes out on top in Autohaus Bankenmonitor’s Premium Vehicle category. The bank’s financial services for the smart brand win the Niche Vehicle category for the second time.

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Our leadership team

Bodo Uebber

Chairman of the Supervisory Board ofDaimler Financial Services AG,Member of the Board of Managementof Daimler AG, with responsibility for Finance andControlling/Financial Services

Klaus Entenmann

Chairman of the Board of Management of Daimler Financial Services AG

Richard Howard

Member of the Board of Management, responsible for the region Africa & Asia Pacific

Franz Reiner

Member of the Board of Management, responsible for the region Europe and Chairman of Mercedes-Benz Bank AG

Stephan Unger

Member of the Board of Management, responsible for Finance, Controlling and Risk Management

Dr. Dieter Buhl

Member of the Board of Management, responsible for Human Resources

Peter Zieringer

Member of the Board of Management, responsible for the region Americas, President and CEO of Mercedes-Benz Financial Services USA LLC

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Daimler at a Glance

Daimler AG is one of the world’s most successful automotive companies. With its divisions Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services, the Daimler Group is one of the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles with a global reach. Daimler Financial Services provides financing, leasing, fleet management, insurance and innovative mobility services.

The company’s founders, Gottlieb Daimler and Carl Benz, made history with the invention of the automobile in the year 1886. As a pioneer of automotive engineering, Daimler continues to shape the future of mobility today: The Group’s focus is on innovative and green technologies as well as on safe and superior automobiles that appeal to and fascinate. For many years now, Daimler has been investing continually in the development of alternative drive systems with the goal of making emission-free driving possible in the long term. So in addition to vehicles with hybrid drive, Daimler now has the broadest range of locally emissionfree electric vehicles powered by batteries and fuel cells. This is just one example of how Daimler willingly accepts the challenge of meeting its responsibility towards society and the environment.

Daimler sells its vehicles and services in nearly all the countries of the world and has production facilities on five continents. Its current brand portfolio includes, in addition to the world’s most valuable premium automotive brand, Mercedes-Benz, the brands smart, Freightliner, Western Star, BharatBenz, Fuso, Setra and Thomas Built Buses. The company is listed on the stock exchanges of Frankfurt and Stuttgart, Germany (stock exchange symbol DAI). In 2012, the Group sold 2.2 million vehicles and employed a workforce of 275,000 people; revenue totaled €114.3 billion and EBIT amounted to € 8.6 billion.

Daimler Group

(in millions of euros) 2012 2011

Revenue 114,297 106,540

Western Europe 39,377 39,387

thereof Germany 19,722 19,753

NAFTA 31,914 26,026

thereof United States 27,233 22,222

Asia 25,126 22,643

thereof China 10,782 11,093

Other markets 17,880 18,484

Employees (December 31) 275,087 271,370

Investment in property, plant and equipment 4,827 4,158

Research and development expenditure 5,644 5,634

EBIT 8,615 8,755

Value added 4,185 3,726

(including discontinued operations)

Net profit (loss) 6,495 6,029

Earnings (loss) per share (in €) 5.71 5.32

EBIT by division

(in millions of euros) 2012 2011

Mercedes-Benz Cars 4,389 5,192

Daimler Trucks 1,714 1,876

Mercedes-Benz Vans 541 835

Daimler Buses -232 162

Daimler Financial Services 1,292 1,312

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Harald BertschSenior Manager Communications Mercedes-Benz Bank and Daimler Financial Services EuropePhone +49 711 2574 [email protected]

Oliver WihofszkiManager Media Relations Mercedes-Benz Bank and Daimler Financial Services EuropePhone +49 711 2574 [email protected]

Andreas SpannbauerManager Global Corporate Communications Daimler Financial Services Phone +49 711 2574 [email protected]

Jelena Jelich Senior Manager Corporate and Marketing Communications Daimler Financial Services AmericasPhone +1 248 [email protected]

Jack FerryManager Media Relations Mercedes-Benz Financial Services and Daimler Truck Financial ServicesPhone +1 248 [email protected]

Michael BraunManager Corporate Communications Daimler Financial Services Africa & Asia Pacific Phone: +65 6849 [email protected]

Michael KuhnSenior Manager Communications and Social MediaDaimler Mobility Services GmbHPhone +49 711 17 [email protected]

Andreas LeoManager Communications car2goPhone +49 731 [email protected]

Katie StaffordManager Communications car2go North AmericaPhone +1 512 [email protected]

Katrin SaternusManager Communications moovel and Parking ServicesPhone +49 711 17 83497 [email protected]

Your media contacts James RyanDirector Corporate and Marketing CommunicationsPhone +49 711 2574 4050 [email protected]

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Mercedes-Benz Cars

Daimler Trucks

Mercedes-Benz Vans

Daimler Buses

Daimler Financial Services

Daimler Brand Portfolio

Daimler Financial Services AG, Global Corporate CommunicationStuttgart, Germanywww.daimler-financialservices.com