Daimler AG Corporate Overview

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Corporate Presentation

Analysis of Financial Position

By:Ayesha Majid & Marrium Bano

Intermediate Accounting

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1 Introduction2 Equity Composition

3 Investments by Daimler

4 Taxes

Agenda

Introduction


Daimler consists of five divisions

Note: 2014: Revenue Group € 129.872 Bn; Employees: 279,972, Corporate/Others 26,832

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Revenues € 73.5 Bn € 32.3 Bn € 9.9 Bn € 4.2 Bn € 15,9 Bn

2014

Employees 129,106 82,743 15,782 16,6318,878


202.400

Daimler has close to 279,972 employees worldwideWith its 6,951*employees, ITM is also „truly global“

28,300

5,142

Asia

6,500

562

152Daimler ITM

NAFTA

Europe

Rest of Europe

35,000Germany 167,400

Latin America16,500

AfricaAustralia

/ Pacific

19,700

1.172 28

271,200

3,275Germany

Rest of Europe 738

Status as of: 31 December, 2014 * including IT Employees in subsidiary companies

Rest of Asia: 239

1040

China: 165India: 15MBRDI*: 458

Japan: 163

Subsidiarycompanies*:

1,129



Key balance sheet and financial figures

Daimler Group

Dec. 31, 2015 June 30, 2016

Equity ratio 23.6% 22.7%

Gross liquidity 18.2 22.9

Industrial business

Equity ratio 44.2% 41.2%

Net liquidity 18.6 17.4

in billions of euros

Key balance sheet figures

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Daimler Group

Dec. 31, 2014

June 30, 2015

Industrial business

– in billions of euros –

Equity ratio 22.1%

16.3

23.9%

16.1Gross liquidity

Equity ratio 40.8%

17.0

45.3%

18.4Net liquidity

Key financials

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Q2 2014

Q2 2015Revenue 31.5 37.5

EBIT 3.1 3.7as reportedfrom ongoing business 2.5 3.8

Net profit 2.2 2.4Earnings per share (in euros) 1.97 2.12

Net liquidity industrial business (2014: year-end) 17.01.4

18.43.4Free cash flow industrial business (January-June)

Net industrial liquidity: development in H1 2015

12 /31 /2014

impact

dividend payments to minority shareholders)

6 /30/ 2015


Free cash flow industrial business

H1 2015: €3.4bn

+4.8

-1.3

10

18.4

+0.617.

0

-0.1

-2.6

Net industrial

Earnings and Working capital

Pension/ Dividend payment

Other Net industrial

liquidity other cash flow

impact healthcare; M&A

Daimler AG (mainly FX effects and

liquidity

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Intermediate Accounting Intermediate Accounting

Equity

Ordinary Shares

• As of December 31, 2015, the members of the Board of Management held a total of 0.25 million shares or options on shares of Daimler AG (0.024% of the shares issued).

• On the same date, the members of the Supervisory Board held a total of 0.02 million shares or options on shares of Daimler AG (0.002% of the shares issued)

• The share capital (authorized capital) is divided into no-par-value shares. All shares are fully paid up.

• Each share represents a proportionate amount of approximately €2.87 of the share capital.

Ordinary Shares

• The Annual Shareholders’ Meeting held on April 9, 2014, authorized the Board of Management, with the consent of the Supervisory Board, to increase the share capital of Daimler AG in the period until April 8, 2019 by a total of €1.0 billion in one lump sum or by separate partial amounts at different times by issuing new, registered no-par-value shares in exchange for cash and/or non-cash contributions

Ordinary Shares Holders

• The Kuwait Investment Authority (KIA) currently owns 6.8% of the company’s stock, making it Daimler AG’s largest single shareholder.

• The Renault-Nissan Alliance continues to hold 3.1% of Daimler’s shares.

• BlackRock Inc., New York, still holds a stake above the 5% reporting limit as defined by Germany’s Securities Trading Act (WpHG). In December 2015, BlackRock notified us that its proportion of the voting rights was 6.12% on November 26.

• on October 26, 2015, the shares held by Norges Bank, Oslo, dropped below the reporting limit of 3%. As of that date, the bank held 2.99% of the voting rights in Daimler.

Dividends

• When the dividend pay-out of €2.45 per share is included, shareholders saw the value of their investment rise by 16%.

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Investment

Equity Investment

• In 2015, their share of profit from equity-method investments decreased to €0.5 billion (2014: €0.9 billion).

• In 2014, Daimler lost its significant influence on Tesla, which was previously accounted for using the equity method; the subsequent re-measurement of their Tesla shares

• Profit from equity method investments decreased by 48% and is $464 million

• Cash used for investing activities amounted to €9.7 billion (2014: €2.7 billion).

• The change compared with the prior-year period resulted primarily from acquisitions and disposals of shares in companies.

Equity Investment

• The prior-year period included proceeds of €2.4 billion from the sale of RRPSH shares.

• Furthermore, the sale of shares in Tesla and the termination of the related share-price hedge led to a cash inflow of €0.6 billion.

Acquisitions and disposals of equity-method investments• Acquisitions in 2015 There Holding B. V. (THBV) was founded in

2015; Daimler, Audi and BMW each hold 33.3% of the shares of the company. Each of the shareholders provided a capital contribution of €668 million.

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Tax

• The tax expense of €4.0 billion stated under income tax expense is €1.1 billion higher than in 2014, mainly due to the improved pretax income.

• The effective tax rate for 2015 was 31.6% (2014: 28.3%). • In 2014, a gain was recognized on the sale of the RRPSH shares that

was largely tax free.• But also expenses arose that Daimler AG are not tax deductible in

connection with the ongoing antitrust investigations of European manufacturers of commercial vehicles by the EU Commission.

• The income tax expense amounts to €0.9 billion (2014: €1.2 billion). • In 2015, the figure includes high tax benefits of €0.7 billion

connected with the tax assessment of previous years.

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Thank You

Daimler AG Corporate Overview

Business