Preliminary second quarter 2021 results above market expectations despite semiconductor shortage

Stuttgart, Germany - Mercedes-Benz Cars & Vans achieved strong results in the second quarter thanks to convincing products, favorable product mix, pricing and ongoing cost discipline. This was despite negative effects from the very limited availability of semiconductor components. Daimler Trucks & Buses sales increased in almost all regions due to improved market conditions, which translated into higher profitability in the second quarter. In addition, the Daimler Trucks & Buses EBIT benefitted from strong pricing, higher aftersales business and positive, non-recurring valuation effects of around €100 million. EBIT at Daimler Mobility benefitted from low cost of credit risk, a credit provision release of €120 million and improved funding costs.

In addition to the underlying operating performance, a strong cash conversion delivered a reported industrial free cash flow of €2,586 million in the second quarter, totaling an industrial free cash flow of €4,396 million in the first half of 2021.

Daimler Group EBIT, Mercedes-Benz Cars & Vans adjusted EBIT, Daimler Trucks & Buses Return on Sales (RoS) adjusted, Daimler Trucks & Buses adjusted EBIT, Daimler Mobility adjusted EBIT and Daimler's Industrial Free Cash Flow for the second quarter of 2021 are all significantly above market expectations.

The following stated figures for the second quarter 2021 are preliminary and unaudited:

- Industrial Free Cash Flow: €2,586 million (consensus: €1,790 million)
Industrial Free Cash Flow adjusted: €2,950 million (consensus: n.a.)

- Net Industrial Liquidity: €20.9 billion (Q1 2021: €20.1 billion)

- Daimler Group EBIT: €5,185 million (consensus: €4,117 million);
adjusted EBIT: €5,418 million (consensus: €4,285 million)

- Mercedes-Benz Cars & Vans EBIT: €3,437 million (consensus: €2,923 million);
adjusted EBIT: €3,603 million (consensus: €3,073 million)

Return on Sales (RoS) adjusted: 12.8 % (consensus: 11.5 %)

- Daimler Trucks & Buses EBIT: €820 million (consensus: €680 million);
adjusted EBIT: €831 million (consensus: €680 million)

Return on Sales (RoS) adjusted: 8.3 % (consensus: 6.9 %)

- Daimler Mobility EBIT: €924 million (consensus: €653 million);
adjusted EBIT: €930 million (consensus: €653 million)

Return on Equity (RoE) adjusted: 24.0 % (consensus: n.a.)

The preliminary results include the following adjustments affecting EBIT:

Mercedes-Benz Cars & Vans

- Expenses of €107 million for legal proceedings

- Expenses of €59 million for restructuring

Daimler Trucks & Buses

- Expenses of €11 million for restructuring

Daimler Mobility

- Expenses of €6 million for restructuring

The full quarterly results and interim report will be published on July 21^st, 2021.

EBIT, adjusted EBIT, Return on Sales (RoS) adjusted, Return on Equity (RoE) adjusted, Industrial Free Cash Flow and Industrial Free Cash Flow adjusted are defined on pp. 43 and 44 of the Daimler Annual Report 2020.

Forward-looking statements:

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, pandemics, 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, customs and foreign trade provisions; 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 governmental investigations or of investigations requested by governments and the outcome of pending or threatened future legal proceedings; and other risks and uncertainties, some of which are described under the heading "Risk and Opportunity Report" in the current Annual Report or in the current Interim 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.