Outlook

July 21, 2021 - Based on the expected market development and the current assessments of the divisions, Daimler anticipates revenue and EBIT in 2021 to be significantly above the prior year’s level.

Daimler expects a gradual normalization of economic conditions in the important markets. The company assumes that the world economy will be able to recover from the pandemic-related weakness of the year 2020, aided by the increasing availability of effective vaccines, among other things.

Furthermore, the company assumes that the worldwide shortage of supply of semiconductor components will affect the business also in the second half of the year. The company also recognizes that the visibility how the supply situation will actually develop further is currently low. Based on the expected market development and the current assessments of the divisions, Daimler anticipates revenue and EBIT in 2021 to be significantly above the prior year’s level.

The company assumes that the current worldwide supply shortage of semiconductor components will affect Mercedes-Benz Cars unit sales also in the third quarter. Mercedes-Benz Cars unit sales could be in the magnitude of the second quarter or below. Full year unit sales are expected to be at prior year level (previously: significantly above).

Based on the performance in the first half of the year and the above mentioned assumptions, the divisions expect the following adjusted returns in the year 2021:

- Mercedes-Benz Cars & Vans: adjusted return on sales of 10 - 12% (unchanged)

- Daimler Trucks & Buses: adjusted return on sales of 6 - 8% (previously: 6 – 7%)

- Daimler Mobility: adjusted return on equity of 17 - 19% (previously: 14 - 15%).

Daimler’s business plan covers the full year 2021 and is based on the existing Group structure, including Daimler Trucks & Buses. The spin-off of Daimler Truck, including significant parts of the related financial services business, will be examined before

the end of 2021. Before the spin-off, Daimler will reclassify Daimler Truck as discontinued operations. The expected considerable positive effects in the second half of the year cannot be reliably determined at present.

The adjusted cash conversion rate (ratio of cash flow to EBIT) for the Mercedes-Benz Cars & Vans division in 2021 is expected to be between 0.7 and 0.9 and for Daimler Trucks & Buses between 0.8 and 1.0.

Investments in property, plant and equipment in 2021 on a group level are expected to be in the magnitude of the previous year; research and development investments on a group level are now expected to be significantly (previously: slightly) above the prior year’s level.

Daimler now expects the free cash flow of the industrial business for 2021 to be slightly (previously: significantly) below 2020's figure. This includes payments in the context of the settlement with the US-regulators and plaintiff representatives of the consumer class actions relating to diesel emissions, cash-outs due to the restructuring program, higher cash taxes than in 2020, as well as costs related to the planned spin-off of Daimler Truck. The adjusted free cash flow of the industrial business is now expected to be in the magnitude of the prior-year level or slightly above (previously: in the magnitude of the prior-year level).

This page was revised based on the Q2 Interim Report 2021 and contains forward-looking statements.

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