Daimler Trucks

Daimler Trucks Division Day

Mannheim, June 28th 2012

Hubertus Troska, Head of Mercedes-Benz Trucks

Daimler Trucks 2

Market Update

Foundation Laid / Next Level of OU optimization

Global Scale Realization

Best Products / Best TCO

Aftersales and Services Push

Agenda

11

22

33

44

55

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Truck market EU 25

251

196183

332346

323

302

280

247264

290306

Ø 274

0 to -10%

12e111009080706050403020100

- ‘000 units -

Truck Market Europe (MDT/HDT)*

* Truck Market EU25 (MDT/HDT ) > 6t

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Truck market Turkey

4242

37

12

30

16

27

32

12e11

44

1009080706050403020100

Ø 30

0 to - 10%

8

23

34

*Truck Market Turkey (MDT/HDT) > 6t

- ‘000 units -

Truck Market Turkey (MDT/HDT)*

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Truck market Brazil

165

150

107

68

78

6359

6359

Ø 95

-10 to -20%

12e11100908

117

07

91

0605

73

0403020100

*Truck Market Brazil (MDT/HDT) > 6t, since 01/2010 based on vehicle registrations

- ‘000 units -

Truck Market Brazil (MDT/HDT)*

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Mercedes-Benz Trucks is market leader in Europe

251

196183

332

2011201020092008

1,6

9,3

10,4

10,5

12,6

13,4

19,2

23,120,3

Others

Iveco

Renault

Scania

DAF

Volvo

MAN

MB

23,8%

22,2%

24,2%

22,6%

EU25Truck Market Europe* Market Share Europe*

- ‘000 units -

SoM

YTD 04/11

YTD 04/12

* Truck Market EU25 (MDT/HDT ) > 6t

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Mercedes-Benz Trucks is market leader in Germany

83

69

57

93

2011201020092008

1,5

2,5

6,3

6,3

6,9

7,8

30,5

38,433,6MB

Renault

Volvo

Iveco

Others

Scania

MAN

DAF

41,6%

39,6%

40,5%

37,4%

Truck Market Germany* Market Share Germany*

- ‘000 units -

YTD 04/11

YTD 04/12

GER

SoM

*Truck Market Germany (MDT/HDT) > 6t

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Mercedes-Benz Trucks also clear market leader in Turkey

44

30

16

27

201020092008 2011

12,0

4,0

5,1

5,8

6,0

7,2

17,6

42,332,1

BMC

Iveco

Others

Renault

Scania

MAN

Ford

MB

Truck Market Turkey* Market Share Turkey*

- ‘000 units -TUR

33,5%32,4%

38,0%37,3%

YTD 04/11

YTD 04/12

SoM

*Truck Market Turkey (MDT/HDT) > 6t

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Mercedes-Benz Trucks Brazil with increasing market share

165

150

107117

201020092008 2011

1,2

0,4

6,7

7,3

10,2

15,4

32,0

26,725,6

Agrale

Scania

Others

Iveco

Volvo

Ford

VW

MB

Truck Market Brazil* Market Share Brazil*

- ‘000 units -BRA

YTD 04/11

YTD 04/12

29,5%28,5%

26,3%25,2%

SoM

*Truck Market Brazil (MDT/HDT) > 6t, since 01/2010 based on vehicle registrations

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Macro-economics

2013-20142012Situation/Trend

Market & Aspiration

Governmen-tal Policies

2015-2022

• Import Tax Regulations

• Financing Subsidy Policy

• New Automotive Policy

• Bilateral Trade Agreements

Promising fundamentals

Increasing positiveEuro V

Increasing protectionismSupportive

GDP Brazil(CAGR %)

22

228

2018

196

1614

170

1210

150

00 20151005

3,5%

Truck market(CAGR %)

4,5%

4%

Promising macroeconomic and positive market outlook are accompanied by protectionist trends

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Measures to sustainably recover and strenghten our Brazil Truck operation

First immediate measureFirst immediate measure Midterm strategyMidterm strategy

• 1.500 workers put on leave for 5 months

• 300 hours of training

• Compensation shared between DT and workers' fund

• Analysis of situation Trucks @ MBBras

• Baselining and derivation of levers

• Recommendation for improving and

sustainably safeguarding profitability

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159

135

96

170

160

142

117

148

137

111102

108

0200 12e11100908070605040301

2011 was a strong year for MB Trucks, but it has become clear that economic conditions remain volatile.

Mercedes-Benz Truck sales worldwide

- ‘000 units -

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Market Update

Foundation Laid / Next Level of OU optimization

Global Scale Realization

Best Products / Best TCO

Aftersales and Services Push

Agenda

11

22

33

44

55

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Global Excellence has brought Daimler Trucks to a new level – foundation laid

Future Product

Generations

Growth and Market

Exploitation

Management

of Cycles

Operational

Excellence

Global Excellence Pillars Achievements so far

Flexibility Measures

BRIC Expansion

Efficiency Programs

Global Platform Roll-out

Next phase

Global Excellence

Strengthen global

industry leadership

�

�

�

�

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� Workforce flexibility

Flexible working hours

Flexible shift models

Time account system

� Flexible cycle time

430 300 units/day

� Facility flexibility

Flexible network

Wörth Aksaray

* e.g. Wörth, Aksaray and Brazil

+30% units/year

-30% units/year

Management of Cycles – Flexible Global Production

Network allows to quickly adjust to down cycles.

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▸50+ years – “home market” in LA

Brazil

▸ Strengthen top market

position

▸ Integration into inter-

national product and

component network

▸ Mercedes-Benz Actros

production at new Juiz

de Fora plant

▸Strategic partner-ship with Kamaz

Russia

▸ Cooperation with

Russian HDT market

leader

▸ Partnership for

technology transfer

and joint projects

▸JV with Foton

China

▸Daimler subsidiary: Daimler India CV Ltd.

India

Focus on BRIC for growth and market exploitation

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Global platform roll-out: Foundations laid to reap benefits of global scale

New Actros

Global platform for

cab-over-engine trucks

Global HDEP HDEP

Global HD engine

platform 2008

Nafta

2011

Europe

2010

Japan

2011

Europe

Roll-out of global product platforms has just begun

• Further global platform roll-out

• Launch of additional platforms

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We have defined a clear roadmap for Global Excellence to

strengthen our global leadership position: DT#1

Future Product

Generations

Growth and Market

Exploitation

Management

of Cycles

Operational

Excellence

Global Excellence Pillars Achievements so far

Flexibility Measures

BRIC Expansion

Efficiency Programs

Global Platform Roll-out

Next phase

Global Excellence

�

�

�

�

Cross-business Initiatives

Excellence Programs

+

Underlining the Daimler Trucks target of 8% RoS across the cycle

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MB Trucks #1 - Good strategic foundation laid for the next

wave of OU optimization …

Pictures by © ioannis kounadeas & fotomek & coramax - Fotolia

.. with significant contribution to the Daimler Trucks success in the next years!

Sales

Growth of Sales

After-Sales

Retail

Excellence

Operations &

Logistics

Optimization of

production &

logistics cost

Funding R&D

Prioritization

of projects

Material

optimization

Reduction of

direct material

cost

Fixed cost/

portfolio

Fixed cost reduction

for central and support

functions

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Market Update

Foundation Laid / Next Level of OU optimization

Global Scale Realization

Best Products / Best TCO

Aftersales and Services Push

Agenda

11

22

33

44

55

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Global scale realization to be continued with the new Mercedes-Benz Antos

New Actros/ Antos

Global platform for

cab-over-engine trucks

Global HDEP HDEP

Global HD engine

platform 2008

Nafta

2011

Europe

2010

Japan

2011

Europe

(Actros)

Roll-out of global product platforms has just begun

2012

Europe

(Antos)

• Further global platform roll-out

• Launch of additional platforms

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Future Product Generations: Global Product Offensive

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Future Product Generations: Global Product Offensive

Distribution >18t “More to come”Long-distance

Loader

Volumer

The new Actros The new Antos The new “…”

!…to be continued…

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Market Update

Foundation Laid / Next Level of OU optimization

Global Scale Realization

Best Products / Best TCO

Aftersales and Services Push

Agenda

11

22

33

44

55

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* Source "Lastauto Omnibus" test report 1966-2009, (all Brands)

Actual situation: Euro standards and fuel effects* for the truck industry

-25%-25%

-10%

EuroI EuroII EuroIII EuroIV EuroV

L/100 km

Euro VI:

+ 4-6%

EuroVI

Euro standards have clearly slowed down the fuel savings. Euro VI causes additional consumption of 4 to 6%!

Target

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Purchase costs

Miscellaneous

Insurance and tax

Administration

Personnel Costs

Fuel29%

Repair and Maintenance

Toll fare

Total Cost of Ownership (TCO)*

* Example: Actros 1844 LS (150 tkm/a, 48 Months, Germany)

Major profitability leverage is fuel consumption…

1 litre diesel = 2,64 kg CO2

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The new Actros.

Comfort

Driving dynamics

Profitability

Positioning on 3 core elements.

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Payday for our customers' wallet

Fuel consumption / CO2 of the new Actros

-6-7% -4-5%

“New Actros”vs. Actros

EuroV EuroVI

Strengthening of benchmark position! Lowest TCO - proven benchmark!

Actros

Euro V

The new

Euro V

(-6-7%)

The new

Euro VI

(-4-5%)

l/100 km 33 l 31 l 32 l

€/year 66,800 € 62,800 € 64,800 €

∆ €/year 4,050 € 2,020 €

∆ €/5

years20,250 € 10,100 €

Calculation example:

General cargo: Germany → ItalyMileage: 150.000 km/yearDiesel price: 1,35 €/liters

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Record Run 2011: The new Actros is world champion

27,1

l/100km

Actros 1844

(Euro V)

25,9

l/100km

New Actros

1845 (Euro V)

New Actros

1845 (Euro VI)

- 2 %

- 4 %

- 6 %

- 8 %

RECORD RUNRECORD RUN

2009

Stettin

Rotterdam

10.000 Kilometer in 7 Tagen - 6 x Rotterdam - Stettin10.000 Kilometers in 7 Days - 6 x Rotterdam - Stettin

20

11

20

11

- 4,5 %

25,1

l/100km

- 7,6 %

Daimler Trucks 30

Truck of the year 2012

Daimler Trucks 31

Market Update

Foundation Laid / Next Level of OU optimization

Global Scale Realization

Best Products / Best TCO

Aftersales and Services Push

Agenda

11

22

33

44

55

Daimler Trucks 32

FleetBoard

Used Trucks

Service &Service &MaintenanceMaintenance

Contract Hire

Benchmark Services important part of product success

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Truck dedicated After-Sales Retailers for our Customers

… opened• Aachen 2009

• Berlin 2009

• Milano 2009

• Moscow 2010

• Valencia/Gandia 2011

• Augsburg 2011

• Hamburg 2011

AachenAachen

Augsburg

Berlin Berlin Berlin

Milano Moskau Valencia/Gandia

Augsburg

Daimler Trucks 3434

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Disclaimer

This document contains forward-looking statements that reflect our current views about future events. The words

“anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” “may,” “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 worsening of the sovereign-debt crisis in the eurozone; a deterioration of our funding

possibilities on the credit and financial markets; events of force majeure including natural disasters, acts of

terrorism, political unrest, industrial accidents and their effects on our sales, purchasing, production or financial

services activities; changes in currency exchange rates; a shift in consumer preference towards smaller, lower

margin vehicles; or a possible lack of acceptance of our products or services which limits our ability to achieve

prices as well as to adequately utilize our production capacities; price increases in 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

of companies in which we hold a significant equity interest, most notably EADS; 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 governmental investigations and

the conclusion of pending or threatened future legal proceedings; and other risks and uncertainties, some of which

we describe under the heading “Risk Report” in Daimler’s most recent Annual Report. If any of these risks and

uncertainties materialize, or if the assumptions underlying any of our forward-looking statements prove incorrect,

then our 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. Any forward-looking statement speaks

only as of the date on which it is made.