Outlook

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Outlook: Annual Press Conference as of February 18, 2010

The world economy is still in a period of transition at the beginning of 2010. On the one hand, the worst of the most severe economic crisis of the post-war period has now been passed; on the other hand, there is very little hard evidence that a self-sustaining, lasting upswing has actually started. Although there are some signs of global economic recovery, there is no reason to assume that the crisis is over. However, the ongoing solid growth of emerging markets such as China and India is exerting a positive influence.

According to current estimates, worldwide demand for automobiles will grow this year in a bandwidth of between 3% and 4% compared with crisis year 2009. Growth in the upper premium automobile segments is likely to be stronger than in the market as a whole because these segments hardly profited from governments’ incentive programs last year, so no significant related effects are to be expected in 2010.

Worldwide demand for commercial vehicles should also grow again moderately after the severe crisis of last year. In the NAFTA region, a market recovery of 10% to 15% is anticipated for medium and heavy-duty trucks after three consecutive years of significant decline. In Europe, the development of demand for light-duty trucks could be slightly better than in 2009, but demand for commercial vehicles above 6 tons will probably remain similar to the prior-year level.

On the basis of its attractive and competitive range of automobiles, Mercedes-Benz Cars assumes it will be able to defend its market position even with the continuation of difficult economic conditions. We therefore aim to continue the positive development of the second half of 2009 and to increase unit sales in 2010.

Daimler Trucks and Mercedes-Benz Vans also anticipate rising unit sales. The expected growth in unit sales by Daimler Buses is likely to be driven by the South American markets. Daimler Financial Services anticipates stable development of its worldwide contract volume in the automotive business.

On the basis of assumptions concerning the development of automotive markets and the divisions’ planning, the Daimler Group therefore expects to increase its total unit sales in 2010.

Following a significant decrease in 2009, the Daimler Group assumes that its revenue will rise again this year, but will still be significantly lower than in 2008. The growth will probably be driven by all the automotive divisions.

In a very challenging economic environment in 2010, Daimler expects to post Group EBIT of more than €2.3 billion from its ongoing business. This will be the result of the market success of new products, a moderate upward development of the most important markets, and intensified efforts to increase efficiency.

The divisions’ EBIT expectations for 2010:

• Mercedes-Benz Cars anticipates EBIT of more than €1.5 billion.
• Daimler Trucks expects to post EBIT of approximately €200 million.
• Mercedes-Benz Vans anticipates EBIT in the region of €250 million.
• Daimler Buses expects EBIT of €180 million.
• Daimler Financial Services assumes it will be able to improve its EBIT to at least €350 million.
• In the reconciliation of the total for the divisions to Group EBIT, Daimler anticipates a charge of approximately €200 million.

 

Forward-looking statements in this Interim Report:

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 a lack of further improvement or a renewed deterioration of global economic conditions, in particular a renewed decline of consumer demand and investment activity in Western Europe or the United States, or a downturn in major Asian economies; a continuation or worsening of the tense situation in the credit and financial markets, which could result in a renewed increase in borrowing costs or limit our funding flexibility; changes in currency exchange rates or interest rates; the ability to continue to offer fuel-efficient and environmentally friendly products; a permanent shift in consumer preference towards smaller, lower margin vehicles; the introduction of competing, fuel-efficient products and the possible lack of acceptance of our products or services, which may limit our ability to adequately utilize our production capacities or raise prices; price increases in fuel, raw materials and precious metals; disruption of production due to shortages of materials, labor strikes, or supplier insolvencies; a further decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization programs at all of our segments, including the repositioning of our truck activities in the NAFTA region and in Asia; the business outlook of companies in which we hold an equity interest, most notably EADS; 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 outcome 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 and under the headings “Risk Factors” and “Legal Proceedings” in Daimler’s most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission. 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.

 

More detailed information can be found in the extensive Annual and Interim Reports as well as in additional data files and reporting formats more